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The Global Chicken Meat Market Hit Record Highs

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The Global Chicken Meat Market Hit Record Highs

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IndexBox invites everyone interested in the relevant data and the actual trends regarding the global chicken meat market to join our webinar: ‘Global Chicken Meat Market – Statistics, Trends, and Outlook’. Here are some facts and figures from the webinar.

For the fourth year in a row, the global chicken meat market recorded growth in sales value, which increased by 3.8% to $192.3B in 2019. The market value increased at an average annual rate of +4.2% over the period from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2008 with an increase of 14% year-to-year. Global consumption peaked in 2019 and is likely to see further growth in years to come.

Consumption by Country

The countries with the highest volumes of chicken meat consumption in 2019 were the U.S. (17M tonnes), China (15M tonnes) and Brazil (12M tonnes), together accounting for 37% of global consumption. These countries were followed by Russia, Mexico, India, Japan, Indonesia, Iran, South Africa, Argentina and Malaysia, which together accounted for a further 23%.

From 2007 to 2019, the biggest increases were in India, while chicken meat consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($39.2B) led the market, alone. The second position in the ranking was occupied by Brazil ($19.1B). It was followed by the U.S..

The countries with the highest levels of chicken meat per capita consumption in 2019 were Malaysia (59 kg per person), Brazil (55 kg per person) and the U.S. (50 kg per person).

Production

In 2019, the global production of chicken meat amounted to 119M tonnes, increasing by 4% compared with 2018. The total output volume increased at an average annual rate of +3.7% from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The generally positive trend in terms output was largely conditioned by a measured increase in the number of producing animals and a relatively flat trend pattern in yield figures.

Production by Country

The countries with the highest volumes of chicken meat production in 2019 were the U.S. (20M tonnes), Brazil (16M tonnes) and China (14M tonnes), together comprising 42% of global production. These countries were followed by Russia, India, Mexico, Indonesia, Japan, Turkey, Iran, Argentina and Myanmar, which together accounted for a further 22%.

From 2007 to 2019, the biggest increases were in Russia, while chicken meat production for the other global leaders experienced more modest paces of growth.

Producing Animals and Yield

In 2019, approx. 71B heads of animals were slaughtered for chicken meat production worldwide; growing by 3.1% in 2018. This number increased at an average annual rate of +2.7% from 2007 to 2019; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period.

The global average chicken meat yield stood at 1,7 kg per head in 2019, remaining relatively stable against 2018. Over the period under review, the yield saw a relatively flat trend pattern.

Exports

For the fourth consecutive year, the global market recorded growth in overseas shipments of chicken meat, which increased by 3.7% to 16M tonnes in 2019. The total export volume increased at an average annual rate of +4.2% from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. In value terms, chicken meat exports rose modestly to $23.7B (IndexBox estimates) in 2019.

Exports by Country

Brazil (4M tonnes) and the U.S. (3.3M tonnes) represented roughly 47% of total exports of chicken meat in 2019. The Netherlands (1.5M tonnes) occupied a 9.8% share (based on tonnes) of total exports, which put it in second place, followed by Poland (7.7%). The following exporters – Thailand (510K tonnes), Belgium (489K tonnes), Turkey (478K tonnes), the UK (356K tonnes), Germany (350K tonnes), Ukraine (338K tonnes), Hong Kong SAR (311K tonnes) and France (251K tonnes) – together made up 20% of total exports.

From 2007 to 2019, the biggest increases were in Ukraine, while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest chicken meat supplying countries worldwide were Brazil ($6.4B), the U.S. ($3.3B) and the Netherlands ($2.7B), together accounting for 53% of global exports. Poland, Belgium, Thailand, Germany, Turkey, Ukraine, France, Hong Kong SAR and the UK lagged somewhat behind, together comprising a further 28%.

Export Prices by Country

The average chicken meat export price stood at $1,518 per tonne in 2019, waning by -2% against the previous year. Over the period under review, the export price, however, showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2008 an increase of 12% year-to-year. Global export price peaked at $1,792 per tonne in 2013; however, from 2014 to 2019, export prices remained at a lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was France ($1,853 per tonne), while the UK ($924 per tonne) was amongst the lowest.

From 2007 to 2019, the most notable rate of growth in terms of prices was attained by Turkey, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

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Archives, Features, Global Logistics, Global Trade Daily, Stories

7 Industry Experts Weigh In On Blockchain and the Fresh Food Supply Chain 

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Editor’s Note: While the writer filed this story before the magnitude of the global pandemic was known, the subject matter is even more vital now. Because if living with COVID-19 has brought to light anything, it is the importance of an unbroken fresh food supply chain. What follows are seven supply chain industry experts weighing in on blockchain, sharing their unique perspectives regarding challenges and adoption, with a focus on the fresh food supply chain.

On Jan. 4, 2011, President Barack Obama signed into law the Food and Drug Administration Food Safety Modernization Act (FSMA). One provision of the Act was that the “FDA will have access to records, including industry food safety plans and the records firms will be required to keep documenting implementation of their plans.” The intention of this mandate was clearly to safeguard the health and safety of the American public.

But there is a problem here. These records are stored all over the country on paper, in file cabinets located in thousands of places. So when there is a serious problem of contamination with, say romaine lettuce as there was in November 2018, and again in November 2019, this explains why it can take the FDA 45 to 60 days backtracking just to locate the records, with potentially thousands of farms under review for contamination. If these records were accessible through blockchain, the potential contaminated farms would be whittled down from thousands to less than 10, and identified within a matter of seconds.

Reasons like this make a strong use case for blockchain; it is why so many food supply chain industry leaders are focused on establishing a universally accepted blockchain platform, with particular focus on the fresh food supply chain.

Building a blockchain ecosystem for the fresh food supply chain, by bringing manufacturers, distributors, retailers and suppliers together is a seemingly insurmountable challenge to many of us involved in the industry. Let alone factoring the entire supply chain for food and beverage, and all consumer goods.

Luckily, there are those people who do have a keen perspective on blockchain, with not only an optimistic view of it, but solutions as well. I had the opportunity to interview seven key supply chain thought leaders on the subject of blockchain and the fresh food supply chain. These were: John Haggerty, vice president, Business Development, Burris Logistics; Steve Tracey, executive director, Center for Supply Chain Research at Penn State Smeal College of Business; Kevin Otto, senior director, Community Engagement, GS1 US; Rick Stein, vice president, Fresh Foods, Food Marketing Institute; Rick Blasgen, president and CEO, Council of Supply Chain Management Professionals; David Shillingford, CEO, Rising Tide Digital & Team Member, Resilience360; and Stephen Rogers, vice president, Blockchain Initiatives for Supply Chain, IBM.

Their viewpoints were diverse, reflecting their respective roles in the industry. And their responses were incisive and broad-reaching, with a very practical perspective on what is expected to realize a universal blockchain platform.

John Haggerty – Vice President, Business Development, Burris Logistics

Burris Logistics operates an expanding network of temperature-controlled warehousing and distribution centers from Florida to Massachusetts, also expanding west to Oklahoma. The company provides leading-edge logistics, transportation and supply chain solutions coast to coast through four distinct business units: Custom Distribution, PRW Plus (Public Refrigerated Warehousing), Trinity Logistics (transportation and freight management), and Honor Foods (a redistributor of frozen, refrigerated and dry food service products).

“There are systems of data exchange already in place in the fresh food supply chain that support blockchain. The GS1-128 barcode, for example, used in the meat industry, provides a global standard for exchanging data between different companies, enabling serialization and expiration to be encoded. Some seafood products, such as scallops fished in the North Atlantic, are tagged with GPS coordinates, recording location, date and time when harvested. Like the data acquired from the produce inspection capability and our customer portal, GS1-128 information is readymade for integration with the blockchain.

“We are constantly testing ourselves and readying ourselves to partner with those vendors and customers who want to integrate with blockchain. But as a solution provider, we are a participant in the process. We are blockchain ready, but those suppliers producing the products and those retailers receiving the products need to be the initiators of blockchain.”

“Utilizing blockchain to validate temperature-controlled services and product integrity is an extremely valid and attractive option. But only a small percentage of participants in the fresh produce supply chain, such as Dole and Driscoll’s, provide continuous tracking of products from producer to the retailer via blockchain.

“The challenge with blockchain in temperature-controlled foods, and indeed for the entire supply chain, is more fundamental than integrating blockchain-enabled companies, it is system standardization. Establishing a universal language with developed and managed standards from a recognized independent standards agency, which enables the openness like we enjoy with the Internet is where we need to focus our efforts. A uniform standard for blockchain is still a long ways away from being ready and effective across multiple channels.”

Steve Tracey – Executive Director, Center for Supply Chain Research, Penn State Smeal College of Business

The Center for Supply Chain Research connects researchers and professionals from leading organizations within a community that is shaping the future of the supply chain discipline. It is member strong and intellectually active in many facets of supply chain management and the enabling technologies used for collaboration, visibility and integration.

“The underlying technology of blockchain is a distributed ledger technology and encryption, which has been around for a while. It got popularized with bitcoin, and although it uses the same underlying technology, it is almost completely the obverse of how it is used for bitcoin. In a bitcoin use case, the trans-actors are anonymous, and the transactions are public, across a large network base. In a supply chain, the trans-actors are public, and the transactions are private, across a very small network base. You might have 50,000 or more network nodes around a bitcoin transaction, and in a supply chain use case you are talking about much smaller numbers, maybe 10s or 100s.

“Where I see blockchain being applicable in the long run are things like smart contracts. Blockchain could potentially speed up procure-to-pay systems, which would make the velocity of money and the speed of transactions go much faster, and significantly reduce administrative overhead.

“Another great use case is chain of custody in the food business. Being able to track and trace chain of custody from point of origin to point of use. This is another case where you could have big data streams managed with data integrity, creating a high trust value.

“From a data security perspective, one of the myths about blockchain is that it is perfectly accurate. It is not. If you put bad data into a blockchain, the only way to correct that bad data is to go back and append that block with the correct data. So blockchain doesn’t eliminate data quality issues. What it does do is encrypt data in a way you can trust the data. The combination of the encryption technology, the blockchain itself, and the distributed ledger system, where you are actually verifying the same data on multiple nodes in the network, creates a high level of data trust. As long as you put the right data in, and it is verified from the nodes in the network, you have a high level of trust that the data as input is trustworthy.

“The wide adoption of blockchain, in particular use cases, is going to come from pilots through networks of different organizations figuring out actual data sustainability models, and getting all the right players onto the network where they all have buy-in, and actually have a vested interest in having the data. To work, I believe it will need to be a win-win scenario, with the ability for everyone in the network to see value in both contributing and drawing data from the system.”

Kevin Otto – Senior Director, Community Engagement, GS1 US

GS1 US is a not-for-profit information standards organization. With more than 300,000 members, GS1 standards are the most widely used supply chain standards in the world. GS1 US administers the Universal Product Code (U.P.C.) barcode, as well as other information standards and data carriers.

“In our cross-industry blockchain discussions encompassing healthcare, food service, retail grocery, apparel and general merchandise, supply chain visibility is the first use case that companies are looking at to see how blockchain can fit into their operations. Because GS1 already has universally accepted standards in place for visibility that can be used in blockchain, and other data sharing mechanisms, we are in a unique position to foster interoperability between blockchain users. Essentially, GS1 Standards are fundamental to the evolution of blockchain.”

“Because of consumer demand to know more about the quality and origin of the foods they are purchasing, we are seeing a considerable increase in discussions around the ability to constantly monitor the quality of food products as they go through the supply chain, and then feed this information into a blockchain. This need is making it less practical to record and maintain this information paper-based, while at the same time it presents a barrier to getting participants onboard to record this data digitally, like at the farm level where they may not be electronically equipped.”

“In food, companies in the supply chain definitely have to know where a product came from and where it went, per FDA and USDA guidelines. Since GS1 Standards are broadly adopted in the food industry, these standards are being shared electronically, by and large. The challenge of getting smaller upstream suppliers (farmers and other producers) to use GS1 Standards for identifying, capturing and sharing information is therefore a first-step and prime concern, while the challenges of adopting blockchain are being discussed and evaluated. One-hundred percent supply chain visibility cannot be achieved without all participants in a blockchain ecosystem on-board with the same standards of capturing and reporting data. I think it is necessary to have bigger players come forward to push and facilitate smaller participant companies to come to the table.”

“Essentially, the food industry, as well as other supply chain sectors, is engaged in utilizing other systems to achieve supply chain visibility, until they figure out exactly the best way to leverage blockchain technology.”

Rick Stein- Vice President, Fresh Foods, Food Marketing Institute

The Food Marketing Institute (FMI) advocates on behalf of the food retail industry, which employs nearly 5 million workers and represents a combined annual sales volume of almost $800 billion. FMI member companies operate nearly 33,000 retail food stores and 12,000 pharmacies.

“FMI guidance to its members is to work with their supply chain partners and focus on prevention of contamination, increase communication with FDA and supply chain partners, and provide simple and agreed-upon data elements for traceability and flexibility in how those data elements are shared. Our members want to be able to make technology choices on their own, and we fully expect technology to advance as it has done so in the past.

“We firmly believe in the importance of the safety of products and the increased use of technology as a tool to share information among supply chain partners. Our members will choose which technologies they adopt but are moving toward the ability to trace their products back to its origins. Blockchain is among some of the technologies used, but it’s the data within that is critical to the success.”

Rick Blasgen – President and CEO, Council of Supply Chain Management Professionals (CSCMP)

CSCMP is a network of more than 6,000 global supply chain professional members worldwide. It is the preeminent worldwide professional association dedicated to the advancement and dissemination of research and knowledge on supply chain management.

“To me, blockchain is almost like RFID was some years ago. We have this technology that is probably ahead of business practice. People don’t know exactly what to do with it.

“There are a lot of pilots and use cases in progress, people trying to figure out how the technology and the business process will work. But at this point, who knows where it will go. It is a bit of a leap of faith, in a way. But, this is how new ways of doing business are accomplished.

“As a technology which is enabling movement of data between partners, if blockchain produces productivity and offers a more accurate and secure way of transacting business, it will lend toward being accepted by the supply chain. The question to be asked is: What do I get out of it that improves my business process?

“I think the track-and-trace capability will be the main draw for blockchain. Greater visibility into where the inventory has been, and where it is, at any time, in the supply chain will increase productivity. This will drive supply chain leaders to pilot it, and try to figure out how to best employ it in their supply chain.”

David Shillingford – CEO Rising Tide Digital, Team Member, Resilience360

Resilience360, was developed in DHL’s Global Innovation Center, and has since become an independent company receiving venture funding from Columbia Capital. The company is an innovative supply chain risk management software platform that helps businesses predict, assess, mitigate and react to supply chain disruptions and delays.

“There are a number of different ways that blockchain relates to supply chain risk. Ultimately, at the heart of it is having accurate supply chain visibility that you can trust, and sharing this data with all parties involved. This can be done with today’s technology, but in some cases, can be done better with blockchain, because it is data that can be trusted.

“This extends to the legality and paperwork associated with product movement. When a container is moving from point A to point B, specific financial transactions relate to what is in the container, who owns it at any particular point on the Earth and having location verification. This permits financial transactions to be initiated through smart contracts, which would be difficult to do without blockchain.

“Today, the state-of-the-art of supply chain risk management encompasses bringing together two sets of data. One relates to supply chain assets, which could be manufacturing locations or distribution centers, or the shipments that are made between them. This, of course, is being mapped or tracked in real-time in the system. But this is then overlaid with future risk indicators or information about an event that has happened that might be a disruption to the supply chain. These can include weather and geological disruptions, labor issues, political upheavals, anything that might disrupt the supply chain.

“This level of insight and analytics brings together what a company’s supply chain looks like in real-time, combined with what might happen to it given known data. Ultimately what a company wants to know is what it should be concerned about and the actions it should take to mitigate any disruptive events. At its core, a blockchain-enabled supply chain can outperform traditional supply chains because it is powered by accurate data, leading to better evaluation and decision making.”

Stephen Rogers – Vice President, Blockchain Initiatives for Supply Chain, IBM

Since 2016, IBM has worked with hundreds of clients across financial services, supply chain, government, retail, digital rights management and healthcare to implement blockchain applications, and operates a number of networks running live and in production. The cloud-based IBM Blockchain Platform delivers the end-to-end capabilities that clients need to quickly activate and successfully develop, operate, govern and secure their own business networks. IBM is an early member of Hyperledger, an open-source collaborative effort created to advance cross-industry blockchain technologies.

“The Internet of Things (IoT) and blockchain are going to be almost interchangeable because they will be working so closely together in the future. Right now they are viewed as two separate technologies, but they are going to come together. I would even describe blockchain as the most likely operating system for IoT networks because of its ability to provide security.”

“Food, and its supply chain, is one of those that you really want to make it an industry solution. Because having gaps in your information between the store that is selling it, and the farm that produced it, means you really don’t have a solution. You need to have information of where it was grown, where it was shipped to, and if there was any kind of an aggregation point, where that was shipped to for packaging, and where it was shipped for distribution and then shipped to the stores. You want to make sure you can capture all of that information.

“Walmart is starting out with a blockchain pilot with leafy greens, because of the past problems that have occurred with recalls. So IBM is out there with Food Trust, the first and biggest blockchain solution associated with food.” (Food Trust is an IBM blockchain-based solution that brought together a host of companies in the food industry into a network, including supply chain services companies.)

“The technology of blockchain still has a ways to grow. It still needs to be able to support higher levels of transactional throughput. There are a lot of people who describe blockchain as the golden hammer. It is not that. It is a technology. Just like robotic process automation or hybrid cars or AI, it addresses a specific set of problems. It’s just that these problems happen to be big intractable problems, so it is really important.”

___________________________________________________________

Jim McMahon is CEO of ZebraCom, Inc. He writes on industrial and technology solutions, and his features have appeared in more than 2,500 trade and business publications worldwide. You can reach him at jim.mcmahon@zebracom.net.

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Archives, Global Trade Daily, Imports/Exports

Spain and France Emerged as the Most Promising Markets for European Mango Importers

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IndexBox has just published a new report: ‘EU – Mangoes, Mangosteens And Guavas – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The EU mango and mangosteen market shrank slightly to $692M in 2019, standing approx. at the previous year’s level. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +7.1% from 2013 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years.

Consumption by Country

The countries with the highest volumes of mango and mangosteen consumption in 2019 were Germany (82K tonnes), the UK (77K tonnes) and France (52K tonnes), together comprising 63% of total consumption. Portugal, the Netherlands, Italy, Spain, Poland, Belgium, Austria and Sweden lagged somewhat behind, together accounting for a further 30%.

From 2013 to 2019, the most notable rate of growth in terms of mango and mangosteen consumption, amongst the leading consuming countries, was attained by Belgium (+52.0% per year), while mango and mangosteen consumption for the other leaders experienced more modest paces of growth.

In value terms, the largest mango and mangosteen markets in the European Union were Germany ($176M), the UK ($156M) and France ($108M), together accounting for 64% of the total market. Portugal, Italy, Poland, the Netherlands, Spain, Austria, Belgium and Sweden lagged somewhat behind, together accounting for a further 28%.

The countries with the highest levels of mango and mangosteen per capita consumption in 2019 were Portugal (2,107 kg per 1000 persons), the UK (1,150 kg per 1000 persons) and Germany (1,001 kg per 1000 persons).

Imports in the EU

After six years of growth, overseas purchases of mangoes, mangosteens and guavas decreased by -1% to 651K tonnes in 2019. Total imports indicated a prominent increase from 2013 to 2019: its volume increased at an average annual rate of +7.9% over the last six years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, imports increased by +58.1% against 2013 indices. In value terms, mango and mangosteen imports amounted to $1.3B (IndexBox estimates) in 2019.

Imports by Country

The Netherlands was the key importer of mangoes, mangosteens and guavas in the European Union, with the volume of imports amounting to 209K tonnes, which was approx. 32% of total imports in 2019. Germany (91K tonnes) held the second position in the ranking, followed by the UK (80K tonnes), France (70K tonnes), Spain (61K tonnes), Portugal (35K tonnes) and Belgium (33K tonnes). All these countries together occupied near 57% share of total imports.

Imports into the Netherlands increased at an average annual rate of +4.8% from 2013 to 2019. At the same time, Spain (+12.4%), France (+11.8%), Belgium (+9.1%), Portugal (+9.0%), Germany (+8.4%) and the UK (+6.0%) displayed positive paces of growth. Moreover, Spain emerged as the fastest-growing importer imported in the European Union, with a CAGR of +12.4% from 2013-2019.

In value terms, the largest mango and mangosteen importing markets in the European Union were the Netherlands ($335M), Germany ($198M) and the UK ($175M), with a combined 56% share of total imports. These countries were followed by France, Spain, Portugal and Belgium, which together accounted for a further 31%.

Import Prices by Country

The mango and mangosteen import price in the European Union stood at $1,936 per tonne in 2019, growing by 3.2% against the previous year. Over the period from 2013 to 2019, it increased at an average annual rate of +2.4%. The growth pace was the most rapid in 2017 when the import price increased by 9.9% against the previous year. The level of import peaked in 2019 and is likely to see gradual growth in years to come.

Average prices varied somewhat amongst the major importing countries. In 2019, major importing countries recorded the following prices: in the UK ($2,202 per tonne) and Germany ($2,164 per tonne), while the Netherlands ($1,600 per tonne) and Belgium ($1,702 per tonne) were amongst the lowest.

From 2013 to 2019, the most notable rate of growth in terms of prices was attained by Spain, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

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Archives, Global Trade Daily, Imports/Exports

Asia’s Eggplant Market Keeps Growing, Driven by Strong Demand in China

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IndexBox has just published a new report: ‘Asia – Eggplants (Aubergine) – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the eggplant market in Asia amounted to $68.4B in 2018, surging by 4.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

Consumption by Country in Asia

China (34M tonnes) constituted the country with the largest volume of eggplant consumption, accounting for 67% of total volume. Moreover, eggplant consumption in China exceeded the figures recorded by the second-largest consumer, India (13M tonnes), threefold.

From 2013 to 2018, the average annual growth rate of volume in China totaled +3.7%. The remaining consuming countries recorded the following average annual rates of consumption growth: India (-0.9% per year) and Turkey (+0.0% per year).

In value terms, China ($43.4B) led the market, alone. The second position in the ranking was occupied by India ($20B).

In China, eggplant per capita consumption increased at an average annual rate of +3.2% over the period from 2013-2018. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Turkey (-1.5% per year) and India (-2.1% per year).

Production in Asia

In 2018, approx. 51M tonnes of eggplants were produced in Asia; growing by 2.9% against the previous year. The total output volume increased at an average annual rate of +2.0% from 2013 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed in certain years. The general positive trend in terms of eggplant output was largely conditioned by a moderate increase of the harvested area and a mild expansion in yield figures.

In 2018, approx. 1.7M ha of eggplants were harvested in Asia, while the average yield stood at 29 tonne per ha, growing by 2.4% against the previous year.

Exports in Asia

In 2018, the amount of eggplants (aubergine) exported in Asia stood at 88K tonnes, growing by 26% against the previous year.

In value terms, eggplant exports amounted to $94M (IndexBox estimates) in 2018. The total exports indicated buoyant growth from 2013 to 2018: its value increased at an average annual rate of +1.4% over the last five-year period.

Exports by Country

In 2018, Turkey (23K tonnes), distantly followed by China (15K tonnes), Malaysia (9.5K tonnes), Saudi Arabia (8.1K tonnes), Uzbekistan (8K tonnes), Thailand (5.1K tonnes) and Jordan (4.5K tonnes) were the key exporters of eggplants (aubergine), together constituting 82% of total exports.

From 2013 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by China, while exports for the other leaders experienced more modest paces of growth.

In value terms, the largest eggplant supplying countries in Asia were Turkey ($24M), China ($23M) and Malaysia ($5.1M), with a combined 54% share of total exports.

Export Prices by Country

The eggplant export price in Asia stood at $1,067 per tonne in 2018, picking up by 9.1% against the previous year.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was China ($1,510 per tonne), while Saudi Arabia ($352 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by China, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

supplies
Archives, Global Trade Daily, International Trade

FREE TRADE IN MEDICINES AND SUPPLIES IS THE HEALTHIEST APPROACH

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What Does Trade Have to Do with the Pandemic?

A pandemic is a type of epidemic, wherein an outbreak of a disease not only affects a high proportion of the population at the same time, but also spreads quickly over a wide geographic area.

As the novel coronavirus jumped continents, governments in countries yet unaffected or with low incidence rates moved to prevent “importing” the virus through individual travel. Simultaneously, governments acted to create diagnostic kits and treatments for those with the virus – all praise our frontline healthcare workers.

Unfortunately, what could worsen the situation is a policy practice that seems to be infectious. More than 20 governments are banning the export of needed supplies, a prescription for shortages and higher prices. What the crisis also lays bare is that key countries and many important healthcare products remain outside a WTO agreement that would otherwise enable duty-free trade in the medicines and supplies we need on a regular basis.

Pandemic Proportions

In the history of pandemics, there has been none more deadly than the infamous Bubonic Plague which took 200 million lives in the mid-14th century, wiping out half the population on the European Continent. The pathogen spread through infected fleas carried by rodents, frequent travelers on trading ships. The practice of quarantine began in the seaport of Venice, which required any ships arriving from infected ports to sit at anchor for 40 days — quaranta giorni — before landing. Two centuries later, Small Pox took 56 million lives. In the modern era, some 40 to 50 million succumbed to the Spanish Flu of 1918 and HIV/AIDS has claimed 25-35 million lives since 1981.

For perspective, and not to minimize its severe toll, the number of fatalities from novel coronavirus will likely exceed 10,000 by the time of this writing. COVID-19, as it is currently known, is a reminder that we live with the ongoing threat from many types of both known infectious diseases like cholera, Zika and Avian flu, as well as diseases yet unknown to us. Although we can more rapidly detect, contain and treat epidemics, diseases now travel at the speed of a person on board an international flight. Our cities are bigger and denser, further enabling rapid transmission.

Pandemic Prepping Includes Trade

Because we are interconnected, we share the health risks, but we can also problem-solve as a global community. Scientists in international labs share insights to identify viruses, swap guidance on how to conduct confirmatory tests, and quickly communicate best practices for containment.

Outside times of crisis, global trade in health-related products and services has laid the foundation for faster medical breakthroughs through international research and development projects, and by diversifying the capability to produce medical supplies, devices, diagnostics and pharmaceuticals.

Innovation thrives in the United States like nowhere else. Yet, no single country, not even the United States, can discover, produce and distribute diagnostics, vaccines and cures for everything that ails us — or invent every medical intervention that improves the productivity and quality of our lives.

One Quarter of medicines have tariffs

A Dose of Foresight

As the Uruguay Round of multilateral trade negotiations were drawing to a close in 1994, a group of countries representing (at the time) 90 percent of total pharmaceutical production came to an agreement. Each government would eliminate customs duties on pharmaceutical products and avoid trade-restrictive or trade-distorting measures that would otherwise frustrate the objective of duty-free trade in medicines.

The WTO’s Pharmaceutical Tariff Elimination Agreement, which entered into force on January 1, 1995, is known as a “zero-for-zero initiative” to eliminate duties reciprocally in a particular industrial sector. Signed onto over subsequent years by the United States, Europe’s 28 member states, Japan, Canada, Norway, Switzerland, Australia and handful of others, the agreement initially covered approximately 7,000 items that included formulated or dosed medicines, medicines traded in bulk, active pharmaceutical ingredients (APIs) and other chemical intermediaries in finished pharmaceuticals.

Signatories agreed to expand the list in 1996, 1998, 2006 and 2010 so it now covers more than 10,000 products. Tariffs were eliminated on a most-favored-nation basis, meaning it was extended to imports from all WTO members, not just parties to the agreement.

Maintenance Drugs

Though an important start, the agreement has not been updated in a decade. Trade in products covered by the WTO agreement has risen from $1.3 trillion in 2009 to $1.9 trillion in 2018. Yet, some 1,000 finished products and 700 ingredients are not covered under the agreement, leaving pharmaceutical trade subject to hundreds of millions in customs duties. With China and India increasing manufacturing over the last decade, the value of global trade included in duty-free treatment decreased from 90 percent in 1995 to 81 percent in 2009 to 78 percent in 2018.

It is challenging to chart trade statistics and tariffs on health-related products, particularly since many chemical ingredients have both medical and non-medical uses. Here we have attempted to reproduce tables developed by the WTO in 2010, but we do not include a large number of chemicals that have general use whose tariff lines were not enumerated in the WTO’s analysis.

Health Product Import Shares

In 2010, the European Union and the United States together accounted for almost half of all world imports of health-related products. Europe has become a much larger importer while U.S. imports have decreased slightly as a percentage of global imports. Imports by many big emerging markets including Brazil, Mexico, China, India and Turkey, have increased along with their purchasing power. These countries benefit from zero duties when importing from countries that signed on to the WTO Pharmaceutical Trade Agreement.

Health Product Export Shares

On the export side, Europe dramatically increased its share of global exports while the United States dropped across the board compared to 2010, particularly in medical products and supplies. China shows significant growth in exports of inputs specific to the pharmaceutical industry – including antibiotics, hormones and vitamins – as well as medical equipment including diagnostic reagents, gloves, syringes and medical devices. India also increased its exports of all types of pharmaceuticals, particularly ingredients, but did not drive up its share across all types of exported health-related products. China and India would benefit from zero duties without having to reciprocate for exports from countries that signed on to the WTO agreement.

That said, according to the trade data, China and India still only account for 5.4 percent of global exports in health-related products covered by the agreement. Therefore, simply expanding membership to include these countries is not sufficient to enlarge duty-free trade – the number of tariff lines covered by the agreement would also need to expand to capture a significant portion of traded healthcare products.

Emerging Market Pharm Trade

Tariffs as a Symptom

The final price of a pharmaceutical is determined by many factors that differ by country. Costs and markups occur along the distribution chain from port charges to warehousing, to local government taxes, distribution charges, and hospital or retailer markups. Tariffs may seem a relatively small component of the final price, but the effect is compounded as all of these “internal” costs accumulate and they are symptomatic of complex regulatory systems.

A 2017 study by the European Centre for International Political Economy determined that tariffs on final prices add an annual burden of up to $6.2 billion in China. In Brazil and India, tariffs on medicines may increase the final price by up to 80 percent of the ex-factory sales price. Imported pharmaceuticals are at a clear disadvantage and patients bear the burden in cost and diminished availability.

Side Effects

According to the U.S. International Trade Commission, the U.S. pharmaceutical industry historically shipped bulk APIs from foreign production sites to the United States before formulating into dosed products. After the WTO agreement, it became viable to import more finished products duty-free. Over the years, a failure to add more APIs to the duty-free list reinforced this trend. The U.S. Food and Drug Administration also allows firms to import formulated products prior to receiving marketing approval to prepare for a new product launch but does not allow bulk API importation before market approval.

The urgency to accrue adequate supplies and treatments for COVID-19 has reignited a debate on U.S. over-reliance on China and India for antibiotics, among other medicines. What if factories must close? What if China and India withhold supplies? If raw materials and ingredients are derived in those countries, would the United States be able to ramp up domestic production? The White House is considering incentives and Buy America government procurement requirements to stimulate demand for U.S. production and in the meanwhile has temporarily reduced tariffs on medical supplies such as disposable gloves, face masks and other common hospital items from China.

20 Countries Ban Medical Exports

A Cure Worse Than the Disease

Removing barriers to trade in essential products is a healthier approach than imposing restrictions that could exacerbate potential shortages.

Nonetheless, some 20 countries have announced a ban on the export of medical gear – masks, gloves, and protective suits worn by medical professionals. They include Germany, France, Turkey, Russia, South Korea, India, Taiwan, Thailand and Kazakhstan.

Governments generally do maintain national stocks of critical items to enable manufacturers to ramp up production in cases of health emergencies or address unexpected gaps in their supply chains. But when major producers withhold global supply, importing countries face shortages and higher prices. Dangerously, India’s trade restrictions go beyond medical gear to restrict export of 26 pharmaceutical ingredients. India, however, relies heavily on APIs imported from China for their medicines, much of it originating from factories in Hubei province where the outbreak emerged.

Bans tend to beget more bans, potentially wreaking havoc on pharmaceutical and medical product supply chains, making it more difficult for healthcare workers to stem spread of the virus. Poorer countries with already fragile and underfunded healthcare systems are left in an even more vulnerable position.

A Test for Public-Private Collaboration

Instead of export restrictions, governments can expedite purchase orders and otherwise support industry efforts to ramp up production for domestic and global use. Most global manufacturers are operating at several times their usual capacity since the initial outbreak in China. Private labs are utilizing high-throughput platforms to conduct more tests faster but require trade in the chemical reagents needed to start up and run the tests.

Biopharmaceutical firms are applying their scientific expertise to accelerate the development of a vaccine and treatments for COVID-19. They are reviewing their research portfolios, investigating previously approved medicines that have potential to treat the virus, and donating approved investigational medicines to the global research effort. Internationally, scientists are collaborating through a Norway-based nonprofit called the Coalition for Epidemic Preparedness Innovations on COVID-19 vaccine development. They know that the more options, the better – most drug candidates will not get through all three phases of clinical trials.

Recovery

Epidemic diseases evolve and they do not respect borders. Treating them, as well as the myriad chronic diseases and other ailments that affect us more routinely, requires new and adapted medical technologies arising from innovation made widely available through trade.

While there’s nothing inherently wrong with providing incentives to encourage domestic production, it should not come at the expense of free trade in health-related products. Tariffs should be eliminated on life-saving medicines and their ingredients. Governments must impose restrictions on exports temporarily and only when absolutely necessary. In this way, openness in trade will help promote the recovery of both our health and our economies.

Many thanks to economist and contributor Alice Calder for running all the trade numbers in this article. Full data tables may be accessed here.

__________________________________________________________________

Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fifteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program.

Alice Calder

Alice Calder received her MA in Applied Economics at GMU. Originally from the UK, where she received her BA in Philosophy and Political Economy from the University of Exeter, living and working internationally sparked her interest in trade issues as well as the intersection of economics and culture.

This article originally appeared on TradeVistas.org. Republished with permission.

medical equipment
Archives, Global Shippers 101, Global Trade Daily

Guide to Preparing Medical Equipment for Shipping

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Shipping medical equipment is inseparable from diverse challenges shippers have to face and overcome to orchestrate and eventually conduct the process without any difficulties. The most common challenges refer to the efforts to provide these items with utmost security through each and every stage of the process. Should any of the items get damaged or destroyed, the party in charge will have to deal with costly repairs or, even worse, complete replacement of the item.

The most viable solution lies in preparing medical equipment for shipping properly so as to minimize the chances of an accident. Here is what you have to bear in mind before you start negotiating shipping terms.

Evaluation prior to packing

What inevitably precedes the process of packing and preparing medical equipment for shipping is a thorough evaluation. This step is necessary because these items vary considerably in terms of size, shape, fragility, and weight. Consequently, to be able to complete the task efficiently and successfully, one has to know precisely the type and amount of equipment that is to be shipped.

Medical equipment should be handled with the utmost care and by experts who possess the expertise, experience, and appropriate equipment to respond to the demands of the task accordingly. An amateur cannot understand the delicacy of the process, which further results in increasing the risks of damage or even destruction to some of the medical equipment during the shipping process.

Tailored packing is crucial

While ordinary packing supplies will undeniably be suitable for some medical equipment, there are those items that require using custom-built crates or specific packaging solutions for impeccable security. The above-mentioned evaluation, hence, proves to be crucial for this purpose. Once you know exactly the size of items and when you analyze those which are awkwardly-shaped or extremely heavy, you will be able to request engineering of the crates that guarantee protection from abrasion, shock, moisture, temperature change, and vibration.

What packing supplies are necessary?

When preparing medical equipment for shipping, using specialized packing materials is a must. Understandably, for some pieces of equipment, you can use standard cardboard or plastic boxes, but generally, the most sensitive pieces require the already mentioned custom-built crates for excellent protection. In addition, using premium-quality cushioning materials is the strategy you need when eliminating any chances of damage is what you strive for.

If you opt for maritime shipping after analyzing the pros and cons of this decision, looking for vapor barrier packaging solutions becomes inevitable. In these circumstances, it is of utmost importance to use moisture and vapor-proof packaging to prevent corrosion on metal surfaces that can seriously harm the functionality of the equipment.

Professional assistance is mandatory when preparing medical equipment for shipping

There are numerous, respectable companies in the shipping industry that offer their impeccable service to various clients. Regardless of the airfreight vs. sea freight dilemma you might be experiencing, there is no place for questioning your decision to hire professionals for this task. However, to be able to monitor the process and assess the quality of the service you get, it is critical to get an insight into the usual practice when preparing medical equipment for shipping is in question.

Conduct detailed research before you find the shipping company you can trust. You need one which employs genuine professionals who know how to pack diagnostic, surgical and lab equipment, CT scanners, lasers, X-ray devices, and MRI machines. They need to be reliable and competent to dismantle these pieces of equipment, secure all the parts, pack, and, finally, load these into a shipping container. Online reviews are a good starting point for your search. Requesting free no-obligation cost estimates can help you know what budget you will need for this endeavor.

Obtain insurance

An essential step in the process of preparing medical equipment for shipping is getting the proper insurance by all means. No matter how well the preparations have been conducted, there is always a risk of unforeseen accidents that might endanger the safety of equipment in the shipping process. Concerning the value of the items you want to ship, obtaining proper insurance must not be neglected. It is important to be entitled to a reasonable compensation should some of your pieces of equipment get damaged or destroyed on the way to their final destination. This is the only solution that guarantees you peace of mind and the knowledge that you have covered all the potential scenarios of the upcoming shipping process.

Preparing medical equipment for shipping requires time

Time is what you need to handle each task with utmost commitment and undivided attention and finally prepare medical equipment for shipping well enough. Starting well in advance means an opportunity to reconsider some decisions before you make them final. If you understand how delicate this process is, you will understand how important it is to bring all the potential difficulties to a minimum. Professional assistance is the core of this process because you need the expertise to complete the process successfully.

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Ian Miller has devoted his time to studying shipping industry challenges and he frequently writes articles on this subject for companies such as Four Winds Bahrain. Ian has cooperated with many shipping companies and is now writing a study on the effects of technology on the shipping industry.

Pharmaceutical
Air Cargo, Archives, Global Trade Daily

Global Air Cargo Trends Re-Shaping Pharmaceutical Transport

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As we welcome the new decade and the exciting advances it is expected to unleash, many of the forces that shaped the past decade for transporting pharmaceuticals will continue. Price pressures, alternatives to air freight and increasing automation are just a few. However, there are emerging trends that make 2020 unique.

As we look forward, these are the air cargo trends expected to shape the transport of pharmaceuticals in 2020 and beyond.

The Greta Thunberg Effect — Flying Shame

We can’t ignore the effect that climate change activist Greta Thunberg is having on air travel that runs on fossil fuels. Thunberg’s reliance on trains to travel from her home country of Sweden to other countries in Europe connected by rail has triggered a material effect on passenger numbers in Sweden. According to Bloomberg, Swedish air travel diminished in 2019 — while train travel jumped to a record level.1

What could this mean for shipping pharmaceuticals by air? As “extinction rebellion” shows no sign of slowing down, air freight carriers — like their passenger transporting counterparts — will feel more pressure to seek alternative fuel sources and replace older planes with more fuel-efficient models. To further address the Thunberg effect, carriers and their logistics partners will also need to elevate their brand image by demonstrating they are adopting eco-friendly practices such as reusable or waste-stream friendly shipping containers made from recyclable materials. Especially for shipping pharmaceuticals, these shipping containers must still maintain strict temperature control to ensure valuable payloads arrive intact.

Global Trade Pressures Drive Down Air Freight Demand

After years of wrangling over the details of Brexit, the UK is departing from the European Union (EU) — and entering a transition period through the end of 2020. The effects of Brexit and the fact that Germany only narrowly avoided an official recession at the end of the last decade have been driving down European air freight demand. Furthermore, US tariffs aimed at four counties in retaliation over subsidies to Airbus has hit Germany especially hard.

Meanwhile, the US-China trade war began to thaw with the signing of an initial trade deal. But trading data showed the climate would have to improve significantly to combat the year-on-year 8.1% decline in freight tonne kilometers experienced in 2019.2 Price is the crudest and quickest tool at air freight’s disposal to address diminishing demand. However, long-term price cutting is not sustainable and in the face of continued change, air freight companies will have no choice but to cut flights from their schedules and mothball aircraft — and cease to exercise purchasing options that did not factor in declining demand.

Diminished Air Freight Demand Means Reduced Capacity

Air freight remains the predominant mode of transportation for moving life-saving pharmaceuticals around the globe, especially for the most valuable and sensitive therapies that require strict temperature control. Sea transport, accounting for approximately 20% of pharmaceutical shipments3, made gains in recent years as an alternative transport mode for non-temperature sensitive products and the return of containers after payloads have reached their destination. However, for the foreseeable future, pharmaceutical companies will remain reliant on air freight for transportation of products that could succumb to temperature excursions.

Declining air freight and passenger demand combine to produce a double whammy for the pharmaceutical industry. As air freight capacity becomes an even more precious and dwindling resource, there are things that can be done to mitigate reduced capacity. For example, temperature-controlled packaging systems will need to step more into the foreground to reduce volumetric weight, providing higher performing insulation and phase change materials that can considerably improve volumetric efficiency.

However, packaging systems currently available to reduce volumetric weight are typically more expensive unless they are re-used, and re-use can’t always be achieved efficiently for both financial and environmental reasons. The pharmaceutical packaging industry will need to look more closely at the installed capabilities of aircraft to manage temperature, which could make lower-grade packaging materials more acceptable. The capabilities of the aircraft will also need to be matched to ground conditions and reliable sourcing can be difficult in less developed regions of the world.

 Pharmaceutical Packaging: No Longer Rickshaw Vs. Tank

When it comes to pharmaceutical packaging, one size does not fit all — nor should it. The days of choosing between a rickshaw or a tank are behind us. Pharmaceutical packaging manufacturers have broadened their product portfolios to enable the most efficient solutions to be selected, qualified and deployed on a lane-by-lane basis across truly global supply chains. Making the right selections and performing the necessary qualifications can be daunting compared to the old simplicity of “I’ll have a tank everywhere.” But this is the challenge we must face to deliver value and make responsible use of dwindling resources such as global air freight capacity.

The good news is that cold chain consultants have the tools and resources to streamline this new approach. Packaging products have been engineered and tested to incorporate operational consistency and simplicity that might otherwise make it too complex to deploy. Networks and services have also been developed and deployed to enable efficient and reliable outsourcing of operations.

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Dominic Hyde is the Vice President of Crēdo on Demand at Pelican BioThermal.

References:

1. As ‘Flying Shame’ Grips Sweden, SAS Ups Stakes in Climate Battle, Bloomberg, April 14, 2019.

2. Air Cargo Demand Continues Negative 2019 Trend, International Air Transport Association (IATA), May 29, 2019.

3. Will Ocean Freight Be the Dominant Mode of Transport for Pharma Payloads?, Pharma Logistics IQ, July 12, 2018

cold chain
Archives, Global Trade Daily, Stories

Benefits of Cold Chain Warehousing Solutions

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Not many people are familiar with cold chain warehouse solutions. However, if you are in any type of business dealing with perishable items, this is right up your alley. Cold chain warehousing is used to store items that need to be left in cool surroundings and that have a short shelf life. By using them you can prevent your items from spoiling, being attacked by insects and rotting. So, the goal is clear. Life of certain items needs to be prolonged and one of the most effective ways to accomplish this is by using cold-chain warehousing, also known as cold storage or refrigerated warehousing.

Types of products that are in need of cold chain warehousing 

First, you need to know which items are suitable to be stored in such a place. Not all items respond well to cool temperatures. The last thing you want is investing in something that you do not need, like cold storage. For example, after transporting fruits and vegetables it would be a great solution to store them in cold storage space. Hence, if your business involves some of these products you are on the right path of finding the best possible solution for your business load.

Supermarkets and other stores have a tendency to use cold storage for a lot of their goods that are not in store for sale. 

3 main groups of goods 

-Foods that are considered to be alive – fruits and vegetables

-Processed foods that are considered to be no longer alive – fish, meat and any other products that contain the fish and meat

-Items that do not necessarily need be stored in a cool or freezing atmosphere, but remain the freshest and of highest quality while in it (tobacco, beer, some oils, some types of flour, etc.)

There are two main options 

One of the great things about cold storage units is that there are many different variations. But, there are two main types of systems. First comes the vapor absorption system (VAS), followed by vapor compression system (VCS). These two systems are not cardinally different from one another. Yet, there are some important differences that need to be acknowledged. The main one being the technique in which energy input is fed to the system. To be sure you are making the right choice when making this large purchase, we strongly advise you to speak to an expert. Sooner or later you will have to learn the difference between the two systems.

Main benefits of cold chain warehouse solutions 

Still, you might not be persuaded and convinced that this type of storage will improve your business. Nonetheless, after reading these benefits, it is very likely that the next thing you do will be exploring your options in purchasing a cold storage unit. Cold chain warehousing solutions in combination with transport technologies for air cargo can be one of the best solutions for storing and moving perishable goods.

Fruits and vegetables are items that are very difficult to store because they are very sensitive to temperature and even humidity. 

The array of usage doesn’t limit you 

One great thing about cold storage is that the temperature within the unit can be easily adjusted. That isn’t all. In addition to temperature, humidity can also be controlled. Humidity, just like temperature, can be a huge factor in saving the freshness and quality of the items. These two benefits, with an airtight closing mechanism, make this a great storage option.

Customize to fit your needs 

More modern units can be customized so the temperature range and size of the unit specifically fit your storage needs. For instance, if you do not need freezing conditions, but dry and cool, your needs can be accommodated. This is a perfect option for those that import oils and fats. As a cherry on top, your unit can be fixed or portable. There is an abundance of options. All you have to do is choose the bests options for your business requirements.

Great backup and organizing option

This can be best described in an example. For argument’s sake, let’s say you are a restaurant owner. One day, out of the blue, the power shuts down and there is no electricity in your restaurant. If you are a fan of cold chain warehousing solutions, you might survive the electricity outage without any loses. If all goods are quickly moved and expedited to the cold storage space, it is very likely they will not lose their value and end up as garbage.

In the long run, you are saving money 

The initial investment is not small, but it will certainly save you money in the long run. Surely you know how much goods you’ve tossed in the past years. Imagine preserving and using or selling at least half of what you tossed. That can add up financially. Minimize waste and give yourself an option to purchase items in bigger bulks for a significantly lower price.

Investing in cold storage might initially turn out to be a financial hit, but it will pay off in the long run. Alt text: suitcase filled with dollar bills and with other bills around it.

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Danny Segno is a New York native, but currently, she lives in Boynton Beach Florida. For the past two years, she has been working for Authority Moving Group, a professional moving company. Danny enjoys her job because she likes working with people and helping them. Since she is a customer care specialist, she focuses on customer satisfaction. 

 

Archives, Global Trade Daily

Kerry Cold Chain & Zhizhen Logistics Expand Food-Related Cold Chain Efforts

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Kerry Logistics confirmed it will expand its current food-related cold chain efforts in mainland China through a joint venture formed between Kerry Cold Chain Solution Ltd. and Shanghai Zhizhen Logistics Co Ltd. The joint venture enables Kerry Logistics to fulfill its vision of tapping into niche food products growing in domestic markets while expanding its global footprint.

“The market for food-related cold chain logistics in mainland China is immense with enormous growth potential,” Edwardo Erni, Managing Director – China and North Asia of Kerry Logistics, said. “There is also ample room for technological growth to reach international standards.”

Currently operating 1 million sq ft of cold chain facilities in the region, Kerry Logistics will add the handling of food products such as raw ingredients and dairy product additives. Zhizhen Logistics brings an impressive domestic and international customer network throughout regions including Beijing, Tianjin, Wuhan, Guangzhou, and Shenzhen.

“Intending to fill a gap in the market, we welcome the collaboration with Zhizhen Logistics, which marks an important strategic step for Kerry Logistics to extend its footprint in the domestic cold chain logistics market, enhancing our service offerings and competitiveness,” Erni concluded.

Archives, Global Trade Daily, News

Softbox Steps Up Leadership for Increased Innovation

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Temperature-controlled packaging provider, Softbox, announces a new approach to leadership in an effort to support increased innovation within the company’s solutions portfolio.

“At Softbox, we focus on developing the best possible innovation for products and services for our clients. Clive’s 36-years’ cold chain logistics experience and extensive knowledge of our clients’ challenges and needs will ensure the appropriate products and services are introduced into the market based on what customers tell us they really need and prioritize.”

Clive Bryant was announced this week as the company’s Global Product and Marketing Director, overseeing global and regional-specific product and service solutions while ensuring products are aligned with a customer focus.

Filling the newly created role of Director of Connected Digital Technologies is Richard Wood, responsible for working with IoT innovaters and
cold chain digital technology partners to develop innovative products with a focus of “big-data” value creation for its customer base.

“Richard’s new role will focus on bringing true digital innovation to our industry. With emerging new connected digital technologies, we will create real end-to-end cold chain visibility to enable our customers to manage their quality and risk more scientifically and efficiently.”