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Chicken Egg Market in Eastern Europe – Russia’s Production Is Growing Rapidly, Driven by Strong Domestic Demand and Expanding Exports

chicken egg

Chicken Egg Market in Eastern Europe – Russia’s Production Is Growing Rapidly, Driven by Strong Domestic Demand and Expanding Exports

IndexBox has just published a new report: ‘Eastern Europe – Hen Eggs – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the chicken egg market in Eastern Europe amounted to $9.7B in 2018, surging by 6.6% 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). Over the period under review, chicken egg consumption continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 when the market value increased by 13% against the previous year. The level of chicken egg consumption peaked at $10.8B in 2014; however, from 2015 to 2018, consumption stood at a somewhat lower figure.

Consumption By Country in Eastern Europe

The country with the largest volume of chicken egg consumption was Russia (2.6M tonnes), accounting for 54% of total consumption. Moreover, chicken egg consumption in Russia exceeded the figures recorded by the region’s second-largest consumer, Ukraine (898K tonnes), threefold. The third position in this ranking was occupied by Poland (345K tonnes), with a 7.2% share.

In Russia, chicken egg consumption expanded at an average annual rate of +1.6% over the period from 2007-2018. In the other countries, the average annual rates were as follows: Ukraine (+1.0% per year) and Poland (-3.8% per year).

In value terms, the largest chicken egg markets in Eastern Europe were Ukraine ($4.5B), Russia ($2.8B) and Hungary ($673M), together accounting for 82% of the total market.

The countries with the highest levels of chicken egg per capita consumption in 2018 were Ukraine (20 kg per person), Belarus (18 kg per person) and Russia (18 kg per person).

From 2007 to 2018, the most notable rate of growth in terms of chicken egg per capita consumption, amongst the main consuming countries, was attained by Russia, while the other leaders experienced more modest paces of growth.

Market Forecast 2019-2025 in Eastern Europe

Driven by increasing demand for chicken egg in Eastern Europe, the market is expected to continue an upward consumption trend over the next seven years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +0.8% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 5.1M tonnes by the end of 2025.

Production in Eastern Europe

The chicken egg production amounted to 5.1M tonnes in 2018, therefore, remained relatively stable against the previous year. Overall, chicken egg production continues to indicate mild growth. The most prominent rate of growth was recorded in 2010 when production volume increased by 3.2% against the previous year. The volume of chicken egg production peaked in 2018 and is expected to retain its growth in the near future. The general positive trend in terms of chicken egg output was largely conditioned by slight growth of the number of producing animals and a relatively flat trend pattern in yield figures.

In value terms, chicken egg production stood at $11.3B in 2018 estimated in export prices. The total output value increased at an average annual rate of +1.4% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2013 with an increase of 39% against the previous year. The level of chicken egg production peaked at $12B in 2014; however, from 2015 to 2018, production stood at a somewhat lower figure.

Production By Country in Eastern Europe

Russia (2.5M tonnes) constituted the country with the largest volume of chicken egg production, comprising approx. 50% of total production. Moreover, chicken egg production in Russia exceeded the figures recorded by the region’s second-largest producer, Ukraine (895K tonnes), threefold. The third position in this ranking was occupied by Poland (600K tonnes), with a 12% share.

From 2007 to 2018, the average annual rate of growth in terms of volume in Russia totaled +1.6%. In the other countries, the average annual rates were as follows: Ukraine (+0.9% per year) and Poland (+0.8% per year).

Producing Animals in Eastern Europe

In 2018, approx. 444M heads of producing animals were grown in Eastern Europe; approximately reflecting the previous year. This number increased at an average annual rate of +1.1% over the period from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed over the period under review. The growth pace was the most rapid in 2012 with an increase of 5.3% y-o-y. Over the period under review, this number attained its peak figure level in 2018 and is likely to continue its growth in the near future.

Yield in Eastern Europe

In 2018, the average chicken egg yield in Eastern Europe totaled 11 kg per head, remaining stable against the previous year. Over the period under review, the chicken egg yield continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2009 when yield increased by 7% year-to-year. In that year, the chicken egg yield attained its peak level of 12 kg per head. From 2010 to 2018, the growth of the chicken egg yield remained at a lower figure.

Exports in Eastern Europe

In 2018, approx. 437K tonnes of chicken eggs were exported in Eastern Europe; rising by 6.8% against the previous year. Over the period under review, chicken egg exports continue to indicate resilient growth. The most prominent rate of growth was recorded in 2013 when exports increased by 91% year-to-year. The volume of exports peaked in 2018 and are likely to see steady growth in the immediate term.

In value terms, chicken egg exports amounted to $657M (IndexBox estimates) in 2018. In general, chicken egg exports continue to indicate a buoyant expansion. The most prominent rate of growth was recorded in 2013 when exports increased by 53% against the previous year. The level of exports peaked in 2018 and are expected to retain its growth in the immediate term.

Exports by Country

Poland prevails in chicken egg exports structure, finishing at 267K tonnes, which was near 61% of total exports in 2018. Belarus (40K tonnes) took the second position in the ranking, followed by Russia (33K tonnes), Latvia (23K tonnes) and the Czech Republic (20K tonnes). All these countries together occupied approx. 27% share of total exports. Bulgaria (15K tonnes) and Romania (12K tonnes) followed a long way behind the leaders.

Poland was also the fastest-growing in terms of the chicken eggs exports, with a CAGR of +21.8% from 2007 to 2018. At the same time, Russia (+19.2%), Bulgaria (+15.5%), the Czech Republic (+6.4%), Latvia (+5.8%), Romania (+5.6%) and Belarus (+2.5%) displayed positive paces of growth. From 2007 to 2018, the share of Poland, Russia, Bulgaria, Latvia, the Czech Republic and Belarus increased by +54%, +6.5%, +2.8%, +2.4%, +2.3% and +2.2% percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Poland ($402M) remains the largest chicken egg supplier in Eastern Europe, comprising 61% of total chicken egg exports. The second position in the ranking was occupied by the Czech Republic ($43M), with a 6.5% share of total exports. It was followed by Bulgaria, with a 5.2% share.

From 2007 to 2018, the average annual growth rate of value in Poland amounted to +19.0%. The remaining exporting countries recorded the following average annual rates of exports growth: the Czech Republic (+2.1% per year) and Bulgaria (+11.2% per year).

Export Prices by Country

In 2018, the chicken egg export price in Eastern Europe amounted to $1,504 per tonne, picking up by 3.6% against the previous year. Over the period under review, the chicken egg export price, however, continues to indicate a noticeable slump. The growth pace was the most rapid in 2017 when the export price increased by 24% against the previous year. Over the period under review, the export prices for chicken eggs attained their peak figure at $2,301 per tonne in 2007; however, from 2008 to 2018, export prices stood at a somewhat lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was Bulgaria ($2,219 per tonne), while Belarus ($733 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Poland, while the other leaders experienced a decline in the export price figures.

Imports in Eastern Europe

In 2018, the imports of chicken eggs in Eastern Europe stood at 182K tonnes, jumping by 6.4% against the previous year. The total imports indicated strong growth from 2007 to 2018: its volume increased at an average annual rate of +4.6% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, chicken egg imports decreased by -6.8% against 2015 indices. The most prominent rate of growth was recorded in 2013 with an increase of 20% y-o-y. The volume of imports peaked at 196K tonnes in 2015; however, from 2016 to 2018, imports stood at a somewhat lower figure.

In value terms, chicken egg imports amounted to $383M (IndexBox estimates) in 2018. Over the period under review, chicken egg imports continue to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2014 when imports increased by 20% y-o-y. In that year, chicken egg imports attained their peak of $489M. From 2015 to 2018, the growth of chicken egg imports remained at a lower figure.

Imports by Country

Russia represented the main importing country with an import of around 84K tonnes, which amounted to 46% of total imports. It was distantly followed by the Czech Republic (20K tonnes), Hungary (17K tonnes), Poland (12K tonnes), Lithuania (11K tonnes), Latvia (8.7K tonnes) and Romania (8.5K tonnes), together creating a 42% share of total imports.

Imports into Russia increased at an average annual rate of +6.5% from 2007 to 2018. At the same time, Hungary (+15.5%), Lithuania (+15.4%), Romania (+7.6%), Latvia (+3.7%) and Poland (+2.7%) displayed positive paces of growth. Moreover, Hungary emerged as the fastest-growing importer in Eastern Europe, with a CAGR of +15.5% from 2007-2018. The Czech Republic experienced a relatively flat trend pattern. While the share of Russia (+23 p.p.), Hungary (+7.3 p.p.), Lithuania (+4.6 p.p.), Romania (+2.6 p.p.), Poland (+1.6 p.p.) and Latvia (+1.6 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Russia ($208M) constitutes the largest market for imported chicken eggs in Eastern Europe, comprising 54% of total chicken egg imports. The second position in the ranking was occupied by the Czech Republic ($35M), with a 9% share of total imports. It was followed by Hungary, with a 7.2% share.

From 2007 to 2018, the average annual growth rate of value in Russia amounted to +3.3%. In the other countries, the average annual rates were as follows: the Czech Republic (-4.1% per year) and Hungary (+10.6% per year).

Import Prices by Country

The chicken egg import price in Eastern Europe stood at $2,099 per tonne in 2018, picking up by 3.7% against the previous year. Overall, the chicken egg import price, however, continues to indicate a noticeable slump. The pace of growth was the most pronounced in 2017 an increase of 11% y-o-y. Over the period under review, the import prices for chicken eggs attained their maximum at $3,152 per tonne in 2007; however, from 2008 to 2018, import prices failed to regain their momentum.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Russia ($2,490 per tonne), while Latvia ($1,300 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Russia, while the other leaders experienced a decline in the import price figures.

Source: IndexBox AI Platform

fabric

U.S. Broadwoven Fabric Imports Bounced Back in 2018 Due to Rising Supply from India

IndexBox has just published a new report: ‘U.S. Broadwoven Fabric Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

The revenue of the broadwoven fabric market in the U.S. amounted to $3.6B in 2018, remaining constant 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). Over the period under review, broadwoven fabric consumption continues to indicate a measured drop. The growth pace was the most rapid in 2014 with an increase of 3.7% y-o-y. In that year, the broadwoven fabric market attained its peak level of $4.3B. From 2015 to 2018, the growth of the broadwoven fabric market remained at a somewhat lower figure.

Broadwoven Fabric Production in the U.S.

In value terms, broadwoven fabric production amounted to $3.5B in 2018. In general, broadwoven fabric production continues to indicate a measured downturn. The most prominent rate of growth was recorded in 2014 with an increase of 3.9% against the previous year. In that year, broadwoven fabric production reached its peak level of $4.1B. From 2015 to 2018, broadwoven fabric production growth failed to regain its momentum.

Exports from the U.S.

In 2018, the amount of broadwoven fabric exported from the U.S. stood at 251 tonnes, shrinking by -56.1% against the previous year. Over the period under review, broadwoven fabric exports continue to indicate a drastic contraction. The most prominent rate of growth was recorded in 2017 with an increase of 191% year-to-year. In that year, broadwoven fabric exports reached their peak of 571 tonnes, and then declined slightly in the following year.

In value terms, broadwoven fabric exports amounted to $2.8M (IndexBox estimates) in 2018. Over the period under review, broadwoven fabric exports continue to indicate a drastic shrinkage. The pace of growth was the most pronounced in 2017 with an increase of 100% year-to-year. In that year, broadwoven fabric exports attained their peak of $5.2M, and then declined slightly in the following year.

Exports by Country

Viet Nam (212 tonnes) was the main destination for broadwoven fabric exports from the U.S., accounting for a 85% share of total exports. Moreover, broadwoven fabric exports to Viet Nam exceeded the volume sent to the second major destination, China (13 tonnes), more than tenfold. The third position in this ranking was occupied by Chile (5 tonnes), with a 2% share.

From 2013 to 2018, the average annual rate of growth in terms of volume to Viet Nam totaled +255.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+17.8% per year) and Chile (+186.0% per year).

In value terms, Viet Nam ($2.1M) remains the key foreign market for broadwoven fabric exports from the U.S., comprising 74% of total broadwoven fabric exports. The second position in the ranking was occupied by China ($238K), with a 8.6% share of total exports. It was followed by Colombia, with a 3.5% share.

From 2013 to 2018, the average annual growth rate of value to Viet Nam totaled +157.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+20.4% per year) and Colombia (+63.4% per year).

Export Prices by Country

The average broadwoven fabric export price stood at $11 per kg in 2018, surging by 21% against the previous year. Over the period under review, the broadwoven fabric export price, however, continues to indicate a moderate shrinkage. The most prominent rate of growth was recorded in 2018 when the average export price increased by 21% against the previous year. The export price peaked at $13 per kg in 2016; however, from 2017 to 2018, export prices remained at a lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Colombia ($22 per kg), while the average price for exports to Chile ($7.5 per kg) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to China, while the prices for the other major destinations experienced a decline.

Imports into the U.S.

Broadwoven fabric imports into the U.S. amounted to 9.2K tonnes in 2018, surging by 2.9% against the previous year. Overall, broadwoven fabric imports, however, continue to indicate a drastic reduction. The most prominent rate of growth was recorded in 2015 when imports increased by 7.1% year-to-year. In that year, broadwoven fabric imports attained their peak of 13K tonnes. From 2016 to 2018, the growth of broadwoven fabric imports failed to regain its momentum.

In value terms, broadwoven fabric imports totaled $69M (IndexBox estimates) in 2018. In general, broadwoven fabric imports, however, continue to indicate a deep contraction. The growth pace was the most rapid in 2018 when imports increased by 3.7% y-o-y. Over the period under review, broadwoven fabric imports attained their peak figure at $97M in 2014; however, from 2015 to 2018, imports remained at a lower figure.

Imports by Country

China (3.3K tonnes), Pakistan (2.6K tonnes) and India (2.6K tonnes) were the main suppliers of broadwoven fabric imports to the U.S., together accounting for 93% of total imports.

From 2013 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by India, while the other leaders experienced more modest paces of growth.

In value terms, the largest broadwoven fabric suppliers to the U.S. were China ($22M), Italy ($17M) and India ($12M), together comprising 73% of total imports.

In terms of the main suppliers, Italy recorded the highest rates of growth with regard to imports, over the last five-year period, while the other leaders experienced a decline.

Import Prices by Country

The average broadwoven fabric import price stood at $7,535 per tonne in 2018, remaining constant against the previous year. Over the period under review, the broadwoven fabric import price, however, continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when the average import price increased by 17% y-o-y. The import price peaked at $8,246 per tonne in 2014; however, from 2015 to 2018, import prices failed to regain their momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2018, the country with the highest price was Italy ($61,521 per tonne), while the price for Pakistan ($4,146 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 prices for the other major suppliers experienced a decline.

Companies Mentioned in the Report

Milliken & Company, Tk Holdings, BGF Industries, BP Amoco Chemical Company, Glen Raven, Albany International, Polartec, Astenjohnson, National Presto Industries, Culp, Burlington Industries, Xerium Technologies, Propex Operating Company, Westpoint Home, Jay Franco & Sons, Cone Denim, The Hallwood Group Incorporated, Galey & Lord, Hyosung Usa, R B Pamplin, Westpoint International, Collins & Aikman Products Co., Nvh, Nouveau Verre Holdings, Itg Holdings

Source: IndexBox AI Platform

logistics professionals

5 Tips for Supply Chain & Logistics Professionals

How can supply chain and logistics professionals continue to survive in the business now and in the future?

As technology continues to evolve, the business environment is also changing. To stay in business, supply chain and logistics professionals need to adapt fast, invent, and solve problems in order to survive in today’s competitive business world.

In this article, uk.superiorpapers.com shares five tips to help supply chain and logistics professionals survive in business now and in the days to come.

Let’s get started.

 

Get a Serious Partner

It is said that no man is an island and that no man can stand alone. Similarly, in business, a company that works with a serious logistics partner will have high odds of withstanding lows and taking up opportunities when they arise.

According to Nerdywriters, these days’ customer needs are not easy to predict, and companies need to find a great logistics partner who can offer solutions to customer problems.

Working with a great logistics partner, companies will be able to get guidance when joining new global markets, predict any business dangers before they can hurt the business, and find solutions to problems before they get out of hands.

It is, therefore, important for businesses to find logistics partners who are friendly, guarantee the quality of service, easy to partner with, and can provide extensive solutions to problems.

Be Proactive, Not Reactive

With the competitiveness in the business environment, it’s not enough to take on challenges as they occur. As a supply chain and logistics professional, you need to understand that change must happen before it is triggered.

As you will see in velvetjobs, changes in the logistics have happened and are going to be happening every day even in the future. Therefore, companies need a strong partner who can guarantee sustainability today and in the future no matter what challenges occur.

As James Longman, the author of academized reviews and papers owl reviews puts it, working collaboratively and innovatively can help companies develop new and more efficient approaches to lower costs and add value. In addition, a strong partner will help their clients to stay ready for future changes in the sector.

Create a Strong Relationship with Colleagues outside Your Industry

It doesn’t matter whether you’re in supplier quality, logistics, procurement or whichever field you are; supply chain is aimed at making a product accessible by customers.

For that reason, creating and sustaining a strong personal and professional relationship with colleagues in other sectors such as manufacturing, product development, finance, and engineering will boost the effectiveness of a supply chain team.

Find time to build a close relationship even if it means having short discussions once a week.

Mentor Others

As aussiessay.com puts it no one can master a skill by learning and reading but you can become an expert by teaching others. Identify your exceptional supply chain, knowledge, abilities, and tools you have that can be helpful to others in your team and start mentoring them. 

They say if you want to go fast, go alone if you want to go far, go together. Unless you want to go alone, the best thing to raise your team’s collective performance is to train and encourage them in something you know.

Don’t Stop Reading

Learning never stops, it stops when we die and who knows there could be learning after death but this is something that cannot be established. However, if you want to continue to survive in business today and days to come, you must read and expand your knowledge.

According to best paper writing services when it comes to reading, don’t limit yourself to books only, there are plenty of audio materials out there you can listen to even when on the go. Just make sure you read every day even if just for 10 minutes.

Get Certified

Attaining an industry certification is also a great way to invest in your professional education. Getting certified does not only open you to greater opportunities in the workplace but also helps to drive value to companies.

Besides being industry certified, keep learning. Explore every possible avenue that puts you and your company up for success.

Write down Your Goals and Revisit Them Every time

Supply chain and logistics professionals at Assignment helper, a firm that offers assignment help to students argue that to make sure you are working toward achieving your goals, write them and keep them in a visible place (your desk is the best place to write down your goals so that you can see them every time you are working).

Life is busy and for supply chain professionals, it can’t be better and accomplishing sizable strategic initiatives that aren’t laid down can be tricky.

Set goals for the first 60 to 90 days of the year and revisit them regularly. This way, you will not wander when working on achieving your goals and in the end, you will celebrate the results.

Final Thoughts

There you have it. And the list is not comprehensive. These are just a few of the effective tips for supply chain and logistics professionals. Since the industry is extremely dynamic and evolving fast, every key player needs to stay updated on the latest trends and development.

foreign trade zones

FOREIGN TRADE ZONES, PORTS AND ECONOMIC DEVELOPMENT FORCES CREATE AMERICAN SUCCESS STORIES

The U.S. Foreign Trade Zones Board’s Annual Report to Congress is bullish on FTZs, finding that after several years of decline in zone activity largely related to a downturn in the petroleum sector, strong increases in all major categories were logged in 2017, the last year for which data are available.

Foreign trade zones provide economic incentives to companies importing or exporting international goods. Duty-free treatment is accorded to items that are re-exported, and duty payment is deferred on items sold in the U.S. market, thus offsetting customs advantages available to overseas producers who compete with producers on American soil.

Businesses can use FTZ space a variety of ways, including warehousing and distribution of non-ferrous metals for sale on the London Metal Exchange, warehousing spirits and alcohol and storing vehicles before they are sold in the domestic marketplace.

The value of merchandise received at America’s FTZs increased by 9.6 percent in 2017, to $669.2 billion, according to the report that was presented to Congress this past December. Merchandise received at warehouse/distribution operations increased by 15.5 percent, to $259.1 billion, while that received at production operations increased by 6.2 percent, to $410.1 billion.

Foreign-status inputs to FTZs increased by 11.2 percent, to $250.6 billion, and the value of FTZ imports accounted for 10.6 percent of all goods imported into the U.S. in 2017. The majority of merchandise admitted to FTZs (63 percent) is of domestic origin. The value of exports from America’s FTZs increased by 15.1 percent in 2017, to $87.1 billion, which represents 5.6 percent of the value of all goods exported from the U.S. Exports from FTZ production facilities accounted for two-thirds of all exports from FTZs. Employment at America’s 191 active FTZs increased by approximately 7 percent in 2017, to a new record of 450,000 workers at 3,200 firms that used FTZs during the year.

“The FTZ Board’s latest report confirms that the program continues to be a vital component of America’s trade policy,” says Erik O. Autor, president of the National Association of Foreign-Trade Zones (NAFTZ), which boasts 650+ members. “The competitive advantage for companies operating in an FTZ has enabled them to boost exports and employment, continuing their strong recovery from the recession.”

The Trade Partnership, a Washington, D.C.-based trade research firm, in February provided case studies on the success of FTZs as part of an NAFTZ-commissioned report. “This study measures, both quantitatively and qualitatively, the economic effects of FTZs on the communities in which the zones operate, which we refer to as Zone Economic Communities (ZECs),” states The Trade Partnership introduction to the research, which examined the economic impacts of FTZs in community employment, wages and value added. 

The study concluded the economic impacts of the U.S. FTZ program on communities in which FTZs are located are positive,” The Trade Partnership President Laura M. Baughman said during NAFTZ’s annual Legislative Summit in Washington on Feb. 12. “Many companies have the option to operate inside or outside the United States,” she noted. “They will make that decision based in part on the relative costs of doing business in the United States or abroad. To the extent the Foreign-Trade Zones program can provide positive financial reasons for a U.S. location, it should merit the support of U.S. policymakers.”

“We are very pleased that The Trade Partnership’s analysis has concluded that the U.S. Foreign-Trade Zones program has demonstrable positive economic impacts on the communities in which FTZs are located,” says NAFTZ Board of Directors Chairwoman Eva Tomlinson, who is also director of FTZ Solutions for UPS Trade Management Services Inc. “These real community impacts are in addition to the value that U.S. firms realize from using the FTZ program.” 

The survey included some individual success stories that follow:

FTZ-38 

(Spartanburg, South Carolina; Inland Port Greer; Port of Charleston) 

BMW broke ground on its first American automobile factory in 1992 in Greer, South Carolina, and the first cars rolled off the line in 1994. Before the German automaker’s arrival, Spartanburg was a ghost town of former textile plants and roughly 60,000 lost manufacturing jobs. BMW’s investment in South Carolina changed all that. Today, BMW employs more than 10,000 workers and produces around 400,000 vehicles annually, more than 70 percent for export to 140 global markets (with China the largest foreign destination, followed by Germany). Inputs imported by BMW duty-free under the FTZ program supplement inputs from 235 U.S. suppliers, 40 of whom are in South Carolina.

“As a consequence of this investment, BMW directly and indirectly adds $6.3 billion annually to South Carolina’s economy and leads to the employment of 36,285 people there,” says the German automaker. “The overall footprint in the U.S. is even larger, with value added by BMW of $15.77 billion and employment of 120,855. In each case, this includes both the direct contribution of BMW and the contribution via purchases of BMW and its employees that would not exist if BMW were not established in the United States.”

Earlier this year, BMW Manufacturing, citing Commerce Department data, said it led the U.S. in automotive exports by value for the fifth consecutive year. More than $8.4 billion in cars and SUVs were assembled in Spartanburg before passing through the Port of Charleston in 2018.

FTZ-154

(Baton Rouge, Louisiana; Greater Baton Rouge Port; Port of South Louisiana)

ExxonMobil is a leading example of a company making use of FTZs to import crude petroleum and process it into downstream products, mainly for domestic use in the U.S. but also for export. The oil company has three FTZ subzones in operation, two in Texas (Baytown and Beaumont) and one in Louisiana, where within FTZ-154, ExxonMobil operates a main refinery complex, a petrochemical plant, a tank farm storage facility and a plastics plant in East Baton Rouge Parish, a lubricants plant and a tank farm in West Baton Rouge Parish and the Sorrento Salt Dome in Ascension Parish. The company employs more than 6,600 employees and contractors in the Baton Rouge area, with payroll totaling $491 million.

Despite the exemptions from state and local ad valorem taxes made possible by the FTZ, ExxonMobil’s activities in the Baton Rouge generate millions in annual state and local tax revenue, from property taxes ($33.2 million in East Baton Rouge alone in 2015), to direct sales taxes ($26.3 million in East Baton Rouge), to other state and local taxes (more than $100 million, after credits and rebates). According to a 2017 study, one out of every eight jobs in the Baton Rouge area can be traced back to ExxonMobil. 

FTZ-26

(Newnan, Georgia; Georgia Ports Authority; Port of Savannah)

Yamaha Motor Manufacturing Corp. of America (YMMC), which has corporate offices in Cypress, California, and Kennesaw and Marietta, Georgia, decided in 2011 to take advantage of more efficient production that would result from a centralized location, including one that benefits from the efficiencies offered by the FTZprogram. Thus began the transfer of nearly all YMMC mid- and large-engine ATV production from overseas facilities to Newnan, Georgia. Yamaha directly employs about 3,400 workers in the U.S., but more than 2,000 of them are in Georgia alone, with approximately 1,600 within FTZ-26.

Newnan’s factories spend over $170 million annually at more than 100 U.S. parts suppliers, 30 percent of which are located in Georgia. By 2018, Yamaha had invested more than $354 million in its Newnan facility, with that spending rippling through the local community and beyond. Meanwhile, savings YMMC reaps within FTZ-26 have been fed back into the local community, including Yamaha-sponsored environmental projects for schools, youth character-building initiatives, scholarships for high school students and support for local teachers. 

FTZ-86

(Tacoma, Washington; Northwest Seaport Alliance; Port of Tacoma)

Helly Hansen imports from Asia specialty water-resistant cold weather apparel and footwear for professionals working in extreme environments. The Helly Hansen brand had a strong presence in Canada when its Norwegian owners looked to expand beyond the Great White North to all of North America. Savings afforded by the U.S. Foreign-Trade Zone program tipped the scales in favor of making Auburn, Washington, which is within the Port of Seattle’s FTZ-5, the location for Helly Hansen’s U.S. warehouse in 2011.

Four years later, growth spurred the need to open a bigger warehouse and a location was found within the Port of Tacoma’s FTZ-86, where all operations consolidated. About 55 percent of Helly Hansen’s imports into Tacoma are re-exported to Canada, and the company pays no duties on those products. It does pay U.S. import duties on products destined for the U.S. market, when they exit the FTZ for U.S. sale, but while products wait at the warehouse, the company saves money from deferred duty (the value of tighter cash flow and reduced interest costs) and reduced processing fees. The Canadian Tire Corp. purchased Helly Hansen in 2018, and the company now employs 103 people in Tacoma, up from about 50 in Auburn in 2011. Indirectly, the company supports jobs at the port processing 400-500 containers a year, containers that would otherwise go directly to Canada. 

FTZ-18 and FTZ-45

(San Jose, California; Port of Oakland; Portland, Oregon; Port of Portland)

Fremont, California-based Lam Research Corp., a global supplier of innovative wafer fabrication equipment and services to semiconductor manufacturers around the world, creates, assembles, repairs and distributes equipment within San Jose’s FTZ-18 (since 2010) and Portland’s FTZ-45 (since 2016). Around 6,000 employees work in zone-based activities. Components and materials sourced from abroad are admitted free of duty under the FTZ program; those duties would otherwise range from zero to 10.7 percent. Lam estimates that program benefit alone saves the company a significant amount of its import costs. But the FTZ has also helped Lam manage fluctuations in supply chain and international trade. The company has poured zone savings into research and development throughout the U.S.

FTZ-25

(Oakland Park, Florida; Port Everglades)

ProdecoTech, which makes electric bicycles that retail for $1,000 to $5,000 each, was founded in 2008. It would not now employ about 100 people in Oakland Park, Florida, were it not for the FTZ program. ProdecoTech bikes used to be finished abroad, but that changed in 2015, when the company began taking components imported from China, Japan, Taiwan, Korea, Vietnam and elsewhere in the U.S. to assemble the rides in Oakland Park.

Thank the benefits from being within FTZ-25, which allowed ProdecoTech to avoid paying import duties that can range up to 10 percent. Keeping final assembly stateside as opposed to overseas is now saving the company about 4 percent per bike. And that has allowed ProdecoTech to sell goods 30 percent below what its competition charges. Because American workers are doing the assembly, ProdecoTech has a tighter rein on quality control. 

FTZ-272

(Bethlehem, Pennsylvania; Port of Philadelphia)

Piramal Critical Care Inc. was a U.S. pharmaceutical manufacturer that could no longer compete paying tariffs on imported inputs while its foreign competitors shipped finished products here duty free. That put a target on the jobs of 95 employees in Bethlehem, Pennsylvania, where they manufactured and distributed inhalation anesthetics from chemicals and other materials sourced from abroad, primarily India.

After toying with eliminating 70 high-skilled positions and moving production abroad, Piramal launched a Hail Mary by applying for FTZ benefits in 2012. The application was approved, and it has saved Piramal hundreds of thousands of dollars annually in duties. Not only was the company able to stay in Bethlehem, it went on to add even more jobs, modernize its facility and increase capacity three-fold. Piramal today employs about 120 workers and exports to more than 100 countries. 

FTZ-176

(Rockford, Illinois; Port of Rockford)

UniCarriers Americas, which was previously known as Nissan Forklift Corp., sought approval to manufacture rider-type forklift trucks in Rockford, Illinois’ FTZ-176 in 2005. Imported components, which accounted for about 48 percent of the finished forklift truck’s value, were charged duties as high as 9 percent. After contending FTZ benefits would improve UniCarriers’ competitiveness in export markets, the company won approval in 2006. That has gone on to save UniCarriers about $2 million a year, according to the company, which adds employee time spent on handling and filing documents daily for U.S. Customs and Border Protection was eliminated. That’s a win-win when you consider a booming U.S. economy and e-commerce have created strong demand for forklift trucks.

Fortunately, UniCarriers has redirected some duty savings into adding space and employees as well as funding training for a workforce operating ever more sophisticated new equipment. Whereas many manufacturers are replacing workers with robots, UniCarriers is retraining and redeploying employees to work and train alongside automation, according to CEO and President James J. Radous III. He cites figures that show UniCarriers has increased its automation capabilities by 50 percent while doubling its number of employees from about 300 to 600 over the past five years. 

The preceding were the success stories cited in The Trade Partnership report, but there are also other foreign trade zone success stories out there that include the following:

FTZ-84

(Houston, Texas; Port Houston)

FTZ-84 was on a roll in 2017, adding 13 companies, which is no surprise when you consider the Houston region’s rapid growth. As a result, more large importers and exporters are taking the advantage of the financial benefits of using FTZ-84.

One company reaping such benefits is Houston-based Dixie Cullen Interests, which specializes in steel, machinery and other industrial materials. “We are excited about the opportunity that it has opened up for us,” says Dixie Cullen’s President Catherine James. “And we know that Port Houston is where we need to be.” That’s especially true when you consider Port Houston, which owns or operates eight terminals, has committed to invest $1 billion-plus during the next several years in expansion and improvement projects. About two-thirds of all containers in the U.S. Gulf move through Houston, whose port is one of the world’s largest.

FTZ-87

(Lake Charles, Louisiana; Southwest Louisiana Economic Development Alliance; Port of Lake Charles)

The five parish area bordered by Southeast Texas and the Gulf of Mexico is anchored by Sulphur and Lake Charles, where companies from the U.S., Europe, Africa and Asia have staked claims in industrial growth expansion totaling $97 billion.

An extensive rail network makes its way through Southwest Louisiana with Union Pacific and Kansas City Southern servicing the area. Interstates 10 and 210 service a combined 100,000 motorists a day and complete routes between America’s Pacific and Atlantic Coast. And Lake Charles Regional Airport is served by United Airlines, whose hub is in Houston, and American Airlines with its Dallas/Fort Worth hub. But the region has more going for it than simply location, according to George Swift, CEO and president of the Southwest Louisiana Economic Development Alliance. “Our people and companies are making history,” he says. “Each day that passes, companies from across the globe are calling to learn about development and expansion possibilities while others call about the tens of thousands of temporary and permanent jobs that are going to be generated by industrial expansion.”

FTZ-74

(Baltimore, Maryland; Baltimore Development Corp.; Port of Baltimore)

FTZ-74 is one of the most active and largest zones in the United States, which is fitting considering the Port of Baltimore is among America’s 10 busiest ports. With merchandise such as cars, paper and steel, total FTZ-74 international revenue rose from $44 million in 2016 to more than $396 million in 2017, a whopping 800 percent increase! The total value of shipments through Baltimore’s FTZ was more than $19.9 billion in ’17. That only figures to rise as Maryland recently approved a contract to complete the fill-in of a wet basin at the Helen Delich Bentley Port of Baltimore’s Fairfield Marine Terminal.

That project will create more land to help handle the port’s surging auto and roll on/roll off (farm and construction machinery) cargo. Among those as pleased as a Baltimore Bang cocktail over this development is Maryland Governor Larry Hogan. “The Port of Baltimore is the number one auto port in the nation and continues to break cargo records every month,” Hogan says. “Our administration is committed to furthering this growth and strongly supports our great port and its thousands of hardworking men and women handling the millions of tons of cargo coming in throughout the year.”

FTZ-196

(Fort Worth, Texas; AllianceTexas; Dallas/Fort Worth International Airport)

Known as the Alliance Foreign-Trade Zone, FTZ-196 in North Fort Worth sees more action than any other general purpose FTZ in the country. AllianceTexas is a 17,000-acre, master-planned community anchored by the world’s first industrial airport. Also within its boundaries are the Alliance Global Logistics Hub, Circle T Ranch, Heritage, Alliance Town Center, Saratoga and Monterra Village projects. A total of 265 companies that have created more than 30,000 jobs. Among them are Cinram, Hyundai, LEGO, Motorola, GENCO ATC, Callaway Golf and Alliance Operating Services.

Since its inception, AllianceTexas has generated a $40.65 billion economic impact for the North Texas region. Steve Boecking, vice president of Hillwood Properties, the Perot company that developed the Alliance brand, says of the $4 billion in annual FTZ-196 imports: “Regional efforts to strengthen international relationships and to build new global trade partnerships have also resulted in an increased volume of foreign goods being shipped through North Texas.” 

THE POWER OF POSITIVITY

The National Association of Foreign Trade Zones study found the following positive economic measures when examining each of 251 Zone Economic Communities (ZECs) to determine the impact of foreign trade zones:

-Employment, wages and value-added increased in the broader zone community following the establishment of an FTZ. Those gains are the greatest in the early years for employment and wages, and throughout the period for value added. This increased economic activity is also evident once a decision is made to form an FTZ.

-The establishment of an FTZ caused a positive increase in employment growth in the surrounding ZEC (up 0.2 percentage points), wage growth (up 0.4 percentage points), and value-added growth (up 0.3 percentage points), typically eight years and later, after establishment of the FTZ. The impacts begin sooner, in years six and later, for wages and value added in small- and medium sized ZECs.

-Company access to FTZ benefits had a substantial ripple effects through the companies’ supply chains, which are typically located nearby. 

Downloaded the complete report at www.naftz.org.

meat

Global Duck And Goose Meat Market to Keep Growing, Driven by Strong Demand in Asia

IndexBox has just published a new report: ‘World – Duck And Goose Meat – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The global duck and goose meat market revenue amounted to $19B in 2018. 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 +2.1% over the period from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period.

The most prominent rate of growth was recorded in 2011 when the market value increased by 13% y-o-y. The global duck and goose meat consumption peaked at $21.9B in 2014; however, from 2015 to 2018, consumption stood at a somewhat lower figure.

Consumption By Country

China (5.5M tonnes) remains the largest duck and goose meat consuming country worldwide, accounting for 76% of total consumption. Moreover, duck and goose meat consumption in China exceeded the figures recorded by the world’s second-largest consumer, France (203K tonnes), more than tenfold. The third position in this ranking was occupied by Myanmar (174K tonnes), with a 2.4% share.

In China, duck and goose meat consumption increased at an average annual rate of +2.2% over the period from 2007-2018. The remaining consuming countries recorded the following average annual rates of consumption growth: France (-2.4% per year) and Myanmar (+7.4% per year).

In value terms, China ($10.5B) led the market, alone. The second position in the ranking was occupied by France ($1.3B). It was followed by Myanmar.

The countries with the highest levels of duck and goose meat per capita consumption in 2018 were Taiwan, Chinese (6,116 kg per 1000 persons), China (3,771 kg per 1000 persons) and Myanmar (3,231 kg per 1000 persons).

From 2007 to 2018, the most notable rate of growth in terms of duck and goose meat per capita consumption, amongst the main consuming countries, was attained by Myanmar, while the other global leaders experienced more modest paces of growth.

Market Forecast 2019-2025

Driven by increasing demand for duck and goose meat worldwide, the market is expected to continue an upward consumption trend over the next seven years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.6% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 8M tonnes by the end of 2025.

Production 2007-2018

In 2018, the global duck and goose meat production amounted to 7.2M tonnes, surging by 3.3% against the previous year. The total output volume increased at an average annual rate of +1.8% over the period from 2007 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations throughout the analyzed period. The most prominent rate of growth was recorded in 2012 with an increase of 4.1% y-o-y.

Over the period under review, global duck and goose meat production attained its maximum volume in 2018 and is expected to retain its growth in the immediate term. The general positive trend in terms of duck and goose meat output was largely conditioned by a slight increase of the number of producing animals and a relatively flat trend pattern in yield figures.

Production By Country

The country with the largest volume of duck and goose meat production was China (5.5M tonnes), accounting for 76% of total production. Moreover, duck and goose meat production in China exceeded the figures recorded by the world’s second-largest producer, France (233K tonnes), more than tenfold. Myanmar (174K tonnes) ranked third in terms of total production with a 2.4% share.

From 2007 to 2018, the average annual growth rate of volume in China stood at +2.2%. The remaining producing countries recorded the following average annual rates of production growth: France (-2.1% per year) and Myanmar (+7.4% per year).

Producing Animals 2007-2018

In 2018, approx. 3.8M heads of ducks and gooses were slaughtered worldwide; jumping by 2.3% against the previous year. This number increased at an average annual rate of +2.0% from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2008 when the number of producing animals increased by 5% year-to-year.

Yield 2007-2018

In 2018, the global average yield of duck and goose meat production amounted to 1.9 tonne per head, therefore, remained relatively stable against the previous year. Over the period under review, the yield, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2013 with an increase of 2.3% y-o-y. In that year, the average duck and goose meat yield attained its peak level of 2 tonne per head. From 2014 to 2018, the growth of the average yield remained at a somewhat lower figure.

Exports 2007-2018

In 2018, the amount of duck and goose meat exported worldwide stood at 306K tonnes. The total export volume increased at an average annual rate of +2.0% over the period from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations throughout the analyzed period. The most prominent rate of growth was recorded in 2018 with an increase of 18% year-to-year. In that year, global duck and goose meat exports reached their peak and are likely to continue its growth in the immediate term.

In value terms, duck and goose meat exports totaled $1.3B (IndexBox estimates) in 2018. The total export value increased at an average annual rate of +1.3% over the period from 2007 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded over the period under review. The pace of growth appeared the most rapid in 2011 with an increase of 21% y-o-y. In that year, global duck and goose meat exports reached their peak of $1.3B. From 2012 to 2018, the growth of global duck and goose meat exports remained at a somewhat lower figure.

Exports by Country

In 2018, Hungary (60K tonnes), China, Hong Kong SAR (55K tonnes), France (48K tonnes), Poland (40K tonnes) and China (35K tonnes) represented the key exporters of duck and goose meat in the world, generating 78% of total export. Bulgaria (13K tonnes), the Netherlands (10K tonnes), Germany (8.5K tonnes), the UK (5.8K tonnes) and Thailand (5.1K tonnes) followed a long way behind the leaders.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by China, Hong Kong SAR, while the other global leaders experienced more modest paces of growth.

In value terms, the largest duck and goose meat markets worldwide were Hungary ($309M), France ($307M) and Poland ($161M), together accounting for 61% of global exports. China, Hong Kong SAR, Bulgaria, China, the Netherlands, Germany, Thailand and the UK lagged somewhat behind, together comprising a further 30%.

China, Hong Kong SAR recorded the highest rates of growth with regard to exports, in terms of the main exporting countries over the last eleven-year period, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average duck and goose meat export price amounted to $4,173 per tonne, waning by -4.1% against the previous year. Over the period under review, the duck and goose meat export price continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2011 when the average export price increased by 19% against the previous year. In that year, the average export prices for duck and goose meat attained their peak level of $4,972 per tonne. From 2012 to 2018, the growth in terms of the average export prices for duck and goose meat remained at a lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was Bulgaria ($8,089 per tonne), while China ($1,886 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Thailand, while the other global leaders experienced more modest paces of growth.

Imports 2007-2018

In 2018, approx. 269K tonnes of duck and goose meat were imported worldwide. In general, duck and goose meat imports, however, continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 with an increase of 12% y-o-y. Over the period under review, global duck and goose meat imports reached their peak figure at 295K tonnes in 2017, and then declined slightly in the following year.

In value terms, duck and goose meat imports totaled $1.1B (IndexBox estimates) in 2018. In general, duck and goose meat imports, however, continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2011 with an increase of 21% year-to-year. In that year, global duck and goose meat imports attained their peak of $1.4B. From 2012 to 2018, the growth of global duck and goose meat imports failed to regain its momentum.

Imports by Country

Germany (64K tonnes) and Taiwan, Chinese (53K tonnes) represented roughly 43% of total imports of duck and goose meat in 2018. France (19K tonnes) occupied the next position in the ranking, followed by the UK (14K tonnes). All these countries together held approx. 12% share of total imports. The following importers – Spain (9.6K tonnes), China, Hong Kong SAR (9.4K tonnes), Denmark (7.1K tonnes), the Netherlands (7.1K tonnes), Belgium (7.1K tonnes), Japan (5.8K tonnes), Viet Nam (5.3K tonnes) and the Czech Republic (4.7K tonnes) – together made up 21% of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Taiwan, Chinese (+84.5% per year), while the other global leaders experienced more modest paces of growth.

In value terms, Germany ($302M) constitutes the largest market for imported duck and goose meat worldwide, comprising 27% of global imports. The second position in the ranking was occupied by France ($127M), with a 11% share of global imports. It was followed by Taiwan, Chinese, with a 8.6% share.

In Germany, duck and goose meat imports plunged by an average annual rate of -1.1% over the period from 2007-2018. The remaining importing countries recorded the following average annual rates of imports growth: France (-0.1% per year) and Taiwan, Chinese (+66.1% per year).

Import Prices by Country

In 2018, the average duck and goose meat import price amounted to $4,185 per tonne, increasing by 2.1% against the previous year. Over the period under review, the duck and goose meat import price, however, continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2011 an increase of 14% against the previous year. In that year, the average import prices for duck and goose meat reached their peak level of $4,803 per tonne. From 2012 to 2018, the growth in terms of the average import prices for duck and goose meat remained at a lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Belgium ($8,398 per tonne), while Taiwan, Chinese ($1,839 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by China, Hong Kong SAR, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

top states

TOP 10 STATES FOR MANUFACTURING 2019

It’s safe to say that most of the products we use daily were manufactured somewhere. From the clothes we wear to the cars we drive, a long line of wheels must be set in motion before the things we own end up in our hands. That’s why manufacturing and the people who manufacture are so important. 

Whether you have a product that needs manufacturing or need a manufacturer to make that product, finding the best team for the job is paramount to your product’s success and your businesses survival. These 10 states have an edge over the rest when it comes to manufacturing. From incentives to low tax rates to education programs that encourage students to consider manufacturing careers, these states are leading the country in manufacturing. Here’s why.

OHIO

With manufacturers in Ohio accounting for 12.56 percent of the state workforce, this Rust Belt state remains a manufacturing powerhouse despite recent shifts in the manufacturing landscape. Though smaller in size than many other states, Ohio is still the third largest in American when it comes to manufacturing, with a total output of $107.95 billion in 2017, and $50.40 billion in exports in 2018. To date, Ohio is home to more than 12,000 manufacturing firms, with 89 percent of those exporters being small businesses. 

MICHIGAN

Boasting total manufacturing output of $96.22 billion in 2017, Michigan has seen a significant resurgence in manufacturing in the past decade. Still king in the motor vehicle and vehicle parts manufacturing marketplace, the Wolverine State has also begun to earn a reputation for manufacturing quality machine parts, chemicals and pharmaceuticals. A small business friendly state, nearly 90 percent of all exporters in Michigan in 2018 were from that sector. Manufactured goods exports in 2018 alone totaled $55.35 billion.

CALIFORNIA

Consistently ranked among the top 10 states for manufacturing in the U.S., the Golden State workforce has nearly 8 percent of its employees working in that sector. California’s total manufacturing output was more than $300 billion in 2017, and 2018 saw nearly $155 billion in exported manufactured goods. With over 25,000 manufacturing firms (of which 93 percent are considered small to medium-sized businesses), California boasts a skilled workforce that is in it for the long haul, with many workers considering manufacturing a career, not just another job. California manufacturing jobs pay an average of over $100,000 in salary and benefits, compared to the U.S. average of $54,329.

TEXAS

Home to its own power grid and no personal or corporate income taxes, Texas is about as business friendly as you can get among the states. With $247.46 billion in manufactured goods exported from the Lone Star State in 2018, manufacturing accounts for 13.33 percent of the total Texas output while employing 7.04 percent of the state’s workforce. They say everything’s bigger in Texas, and the incentive programs in the state are no exception. Between the ample Texas Enterprise Fund, which has invested more than half a billion dollars since 2004, and major cuts to the state’s franchise tax, Texas is poised to remain one of the top manufacturing states in the nation.

NORTH CAROLINA

The second-largest food and beverage manufacturing state and the overall fifth-largest manufacturing state in America, North Carolina is home to the largest manufacturing workforce in the Southeast. The manufacturing industry employs 460,000 skilled workers in North Carolina–nearly 11 percent of the state’s workforce. North Carolina manufacturing makes up about 20 percent of the state’s gross state product, to the tune of $102.48 billion in 2017 and $31.06 billion in exports in 2018. North Carolina has experienced tremendous growth in manufacturing goods in recent years, with a nearly 35 percent increase in exports from 2010 to 2018. North Carolina’s pro-business climate and expert workforce make it an ideal state for manufacturers.

INDIANA

Manufacturing accounts for nearly 30 percent of the output in Indiana, where $102.59 billion was generated in 2017. Manufacturing accounts for almost 20 percent of the state’s workforce, with 516,900 workers employed in the sector statewide–an estimated one in five workers. In fact, Indiana has the highest concentration of manufacturing jobs in America. With more than 8,500 manufacturing firms already in the state, Indiana is the second-largest automobile manufacturing state in the nation. Along major truck routes and freight lines, goods manufactured in Indiana can reach 75 percent of the U.S. and Canada’s populations within a day’s drive.

FLORIDA

With more than 12,000 manufacturing firms in Florida, the state has made a big push in recent years to encourage more manufacturing. With the fifth-lowest corporate income tax in the country, the Sunshine State employs more than 331,000 workers in the manufacturing sector. Your manufactured goods can get to their destination with ease, because Florida’s multi-modal transportation system offers everything from air and rail to deep-water shipping and highways, all at a low cost of living and a low cost of doing business.

GEORGIA

Another  Southeast state that’s blazing trails in the manufacturing industry, Georgia boasts more 480,000 manufacturing jobs, ensuring that the future remains bright for the industry. That’s why the Peach State developed the Quick Start program and partnered with many in-state universities to teach rising students the skills they need for careers in manufacturing. Industry employs nearly nine percent of Georgia’s workforce across 6,600 firms. In 2018, manufacturers in the state generated $36.81 billion in exports, with a total manufacturing output of $61.06 billion in 2017.

TENNESSEE

According to the Tennessee Department of Economic and Community Development, the state’s growth in advanced manufacturing is higher than anywhere else in the nation; in fact, it’s 42 percent higher than the U.S. average. Manufacturing accounts for 16.13 percent of the state’s total output, which was $55.70 billion in 2017. Tennessee has numerous initiatives to help train its manufacturing workforce, including the NIST Manufacturing Extension Partnership, which provides small to medium-sized manufacturers with training and consulting, all with the goal of helping Tennessee-based manufacturers increase competitiveness in the marketplace via workplace initiatives to increase productivity and lower costs.

SOUTH CAROLINA

Over the past decade, South Carolina has seen manufacturing growth of 18 percent, the second largest jump in the Southeast. Manufacturers in the Palmetto State account for a total of nearly 17 percent of the state’s total output and 11.55 percent of South Carolina workers are employed in the manufacturing industry. In 2018, South Carolina’s exported goods totaled $33.89 billion. In 2018, South Carolina earned an A grade in the Manufacturing and Logistics Report Card by Ball State University’s Center for Business and Economic Research and Conexus Indiana. The report rated each state on criteria such as how desirable it is to site selectors, and the share of Income earned by manufacturing workers within the state.

FedEx

FEDEX, UPS, & AMAZON SCRAMBLING IN THE AIR FOR FAST, FREE SHIPPING

Christmas came in May for Amazon Prime subscribers, who were informed the platform’s tens of millions of items would be available for free same-day delivery and two-day shipping. 

“Prime Free One-Day is possible because we’ve been building our network for over 20 years,” reads a company statement. “This allows Amazon to work smarter based on decades of process improvement and innovation, and to deliver orders faster and more efficiently.” 

Customers reap the benefits as Rakuten Intelligence research shows that over the past two years, the time from purchase to delivery has been slashed from 5.2 days to 4.3 days on average. And yet, Amazon is faster still, at 3.2 days.

Other retailers took the Amazon news like a lump of coal, with Walmart scrambling to unveil free one-day shipping without a membership fee. Target already had such a program for card-carrying loyalty shoppers. FedEx revealed it was parting ways with Amazon for “strategic reasons.”

Meanwhile, industry watchers caution about the hidden baggage that comes with rapidly delivered packages.

Competition is Fierce

Despite the cheery one-day news, Amazon still faces competition from Walmart, which boasts more than 4,700 store locations and an extensive network of warehouses from which it can deliver packages. Another worthy contender is XPO Logistics, which is among the largest third-party logistics providers with 90 facilities across the country. 

During his December earnings call, FedEx CEO and founder Fred Smith said his company views Amazon “as a wonderful company and service and they’re a good customer of ours. We don’t see them as a peer competitor at this point in time.” 

Mere months later, FedEx severed ties with Amazon and partnered with Dollar General on package delivery services, with expectations to offer the service in more than 1,500 stores by late in the summer, building to over 8,000 stores by 2020. 

“We believe this move is an attempt to increase delivery density in lower population areas,” states the Morgan Stanley Research on the move. “… The Dollar General partnership follows a series of headlines including FDX’s AMZN customer loss, move to seven-day ground delivery, and incentive compensation modification ahead of their June 25th fourth quarter earnings release.

So much for not seeing Amazon as competition. FedEx’s annual report, which was released on July 16, mentioned Amazon six times and included this context: “We face intense competition.”

“[I]f customers, such as Amazon.com, further develop or expand internal capabilities for the services we provide, it will reduce our revenue and could negatively impact our financial condition and results of operations,” the FedEx report states. “News regarding such developments or expansions could also negatively impact the price of our common stock.”

And how is this for sounding completely opposite to what Smith had said just seven months prior? “[S]ome high volume package shippers, such as Amazon.com, are developing and implementing in-house delivery capabilities and utilizing independent contractors for deliveries, and may be considered competitors.”

Look! Up in the Sky!!

“Amazon.com is investing significant capital to establish a network of hubs, aircraft and vehicles,” the FedEx annual report notes.

That’s striking when you consider the far fewer times FedEx rival UPS is mentioned in the same report. Keep in mind that UPS currently has 564 cargo jets and thousands of facilities and fulfillment centers around the world, while Amazon has one air hub and options on 100 planes—by 2021, according to a June announcement. 

Ditching Amazon as an air customer led to FedEx slashing prices to fill its planes, according to numerous reports.

As the shipping giants fight for the skies, benefits are being reaped on the ground. Hillwood, developer of the 26,000-acre master-planned AllianceTexas development near Fort Worth, announced in June it has acquired control of 600 acres of additional contiguous land. Strategically located between Fort Worth Alliance Airport and the BNSF Railway Alliance Intermodal Facility, the new Alliance Westport property increases Hillwood’s potential for more manufacturing, large-scale logistics facilities and aviation sites adjacent to the airport’s recently expanded runways.

Alliance Westport is already home to more than 8 million square feet of industrial and aviation development, including key logistics facilities for UPS, FedEx and Amazon Air. When combined with BNSF Railway’s intermodal facility volumes, these three hubs will offer Alliance Westport customers unparalleled access to rail, highway and air shipping options, all within a one-mile radius. The railway and roads have direct routes to Mexico and expedited transit times to the West Coast ports of Los Angeles and Long Beach.

“This is one of the most significant land acquisitions in the history of AllianceTexas,” says Tony Creme, senior vice president of Hillwood. “As Alliance Airport and the BNSF Railway Alliance Intermodal Facility continue to expand and strengthen the foundation for AllianceTexas’ commercial growth, this new property in Alliance Westport will serve as a strategic link between these two pieces of critical logistics infrastructure and offer unparalleled connectivity to our customers.”

 But What About the Planet?

As efforts intensify to move products faster, speedy deliveries are taking a toll on the environment, according to Patrick Browne, director of Global Sustainability at UPS

“The time in transit has a direct relationship to the environmental impact,” Browne told CNN Business on July 15. “I don’t think the average consumer understands the environmental impact of having something tomorrow versus two days from now. The more time you give me, the more efficient I can be.”

A van schlepping goods to e-commerce customer doors does remove from the road the vehicles of those who would otherwise be driving to brick and mortar stores, but a 2012 University of Washington story found that advantage is erased if the delivery route begins far away and items are coming immediately, because the ability to lump orders together is diminished. 

Last-mile services such as Amazon Flex and Walmart’s Spark Delivery often deliver only a few items at once in personal vehicles or small vans. A new option called Amazon Day, which offers discounts and rewards to customers who choose “no-rush shipping,” does allow for the consolidation of orders, however.

Amazon’s competition can take solace in the fact that Amazon was already absorbing added costs for fast deliveries before the Prime one-day announcement, which included news of an additional $800 million investment in logistics infrastructure.

cabbage

Global Cabbage Market to Reach 80M Tonnes by 2025

IndexBox has just published a new report: ‘World – Cabbage And Other Brassicas – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The global cabbage market revenue amounted to $39.4B in 2018, dropping by -3% 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). The market value increased at an average annual rate of +3.1% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2010 when the market value increased by 14% year-to-year. Global cabbage consumption peaked at $43.7B in 2016; however, from 2017 to 2018, consumption failed to regain its momentum.

Consumption By Country

The country with the largest volume of cabbage consumption was China (33M tonnes), comprising approx. 45% of total consumption. Moreover, cabbage consumption in China exceeded the figures recorded by the world’s second-largest consumer, India (9.2M tonnes), fourfold. The third position in this ranking was occupied by Russia (3.7M tonnes), with a 5.2% share.

From 2007 to 2018, the average annual growth rate of volume in China was relatively modest. The remaining consuming countries recorded the following average annual rates of consumption growth: India (+4.7% per year) and Russia (+2.6% per year).

In value terms, China ($13.9B) led the market, alone. The second position in the ranking was occupied by India ($5.7B). It was followed by Japan.

The countries with the highest levels of cabbage per capita consumption in 2018 were Romania (57 kg per person), South Korea (46 kg per person) and Ukraine (39 kg per person).

From 2007 to 2018, the most notable rate of growth in terms of cabbage per capita consumption, amongst the main consuming countries, was attained by India, while the other global leaders experienced more modest paces of growth.

Market Forecast 2019-2025

Driven by increasing demand for cabbage worldwide, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.4% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 80M tonnes by the end of 2025.

Production 2007-2018

In 2018, the amount of cabbage and other brassicas produced worldwide stood at 73M tonnes, picking up by 1.7% against the previous year. The total output volume increased at an average annual rate of +1.4% over the period from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years. The pace of growth was the most pronounced in 2011 with an increase of 6.8% against the previous year. Global cabbage production peaked in 2018 and is expected to retain its growth in the near future. The general positive trend in terms of cabbage output was largely conditioned by slight growth of the harvested area and a relatively flat trend pattern in yield figures.

In value terms, cabbage production totaled $40.5B in 2018 estimated in export prices. In general, the total output indicated prominent growth from 2007 to 2018: its value increased at an average annual rate of +1.4% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, cabbage production decreased by -11.0% against 2016 indices. The pace of growth appeared the most rapid in 2010 when production volume increased by 26% year-to-year. Global cabbage production peaked at $45.5B in 2016; however, from 2017 to 2018, production failed to regain its momentum.

Production By Country

China (34M tonnes) constituted the country with the largest volume of cabbage production, accounting for 47% of total production. Moreover, cabbage production in China exceeded the figures recorded by the world’s second-largest producer, India (9.2M tonnes), fourfold. The third position in this ranking was occupied by Russia (3.6M tonnes), with a 5% share.

In China, cabbage production expanded at an average annual rate of +1.1% over the period from 2007-2018. The remaining producing countries recorded the following average annual rates of production growth: India (+4.7% per year) and Russia (+2.9% per year).

Harvested Area 2007-2018

In 2018, approx. 2.5M ha of cabbage and other brassicas were harvested worldwide; therefore, remained relatively stable against the previous year. The harvested area increased at an average annual rate of +1.3% over the period from 2007 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded over the period under review. The pace of growth was the most pronounced in 2011 when harvested area increased by 5.6% against the previous year. Over the period under review, the harvested area dedicated to cabbage production reached its peak figure in 2018 and is likely to see steady growth in the near future.

Yield 2007-2018

In 2018, the global average cabbage yield totaled 29 tonne per ha, approximately reflecting the previous year. Overall, the cabbage yield continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2008 with an increase of 2.2% y-o-y. The global cabbage yield peaked at 29 tonne per ha in 2014; however, from 2015 to 2018, yield stood at a somewhat lower figure.

Exports 2007-2018

In 2018, the global exports of cabbage and other brassicas totaled 2.5M tonnes, surging by 7.2% against the previous year. The total export volume increased at an average annual rate of +3.4% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The most prominent rate of growth was recorded in 2011 when Exports increased by 16% y-o-y. Over the period under review, global cabbage exports reached their maximum in 2018 and are likely to see steady growth in the near future.

In value terms, cabbage exports amounted to $1.7B in 2018. Over the period under review, the total exports indicated a resilient expansion from 2007 to 2018: its value increased at an average annual rate of +3.4% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, cabbage exports increased by +85.8% against 2007 indices. The most prominent rate of growth was recorded in 2011 when Exports increased by 18% against the previous year. Over the period under review, global cabbage exports attained their peak figure in 2018 and are expected to retain its growth in the near future.

Exports by Country

China was the largest exporter of cabbage and other brassicas in the world, with the volume of exports reaching 990K tonnes, which was near 39% of total exports in 2018. The U.S. (220K tonnes) ranks second in terms of the total exports with a 8.7% share, followed by the Netherlands (8.3%), Spain (6.2%) and Mexico (5.7%). Canada (85K tonnes), Poland (84K tonnes), Italy (72K tonnes), Germany (66K tonnes) and Macedonia (57K tonnes) followed a long way behind the leaders.

Exports from China increased at an average annual rate of +7.0% from 2007 to 2018. At the same time, Macedonia (+11.5%), Spain (+9.3%), Mexico (+6.1%), Canada (+5.6%) and the Netherlands (+3.1%) displayed positive paces of growth. Moreover, Macedonia emerged as the fastest growing exporter in the world, with a CAGR of +11.5% from 2007-2018. The U.S. and Italy experienced a relatively flat trend pattern. By contrast, Germany (-2.2%) and Poland (-3.7%) illustrated a downward trend over the same period. While the share of China (+21 p.p.), Spain (+3.9 p.p.), Mexico (+2.7 p.p.), the Netherlands (+2.4 p.p.), Macedonia (+1.6 p.p.) and Canada (+1.5 p.p.) increased significantly in terms of the global exports from 2007-2018, the share of Poland (-1.7 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest cabbage markets worldwide were China ($398M), the U.S. ($344M) and the Netherlands ($194M), with a combined 54% share of global exports. Spain, Mexico, Italy, Canada, Poland, Germany and Macedonia lagged somewhat behind, together accounting for a further 32%.

Macedonia recorded the highest growth rate of exports, in terms of the main exporting countries over the last eleven years, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average cabbage export price amounted to $682 per tonne, coming down by -5.4% against the previous year. Over the last eleven-year period, it increased at an average annual rate of +2.3%. The pace of growth was the most pronounced in 2008 when the average export price increased by 10% against the previous year. The global export price peaked at $722 per tonne in 2016; however, from 2017 to 2018, export prices remained at a lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was the U.S. ($1,567 per tonne), while Macedonia ($391 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the U.S., while the other global leaders experienced more modest paces of growth.

Imports 2007-2018

In 2018, approx. 2.3M tonnes of cabbage and other brassicas were imported worldwide; dropping by -10.3% against the previous year. The total import volume increased at an average annual rate of +2.4% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The pace of growth appeared the most rapid in 2015 with an increase of 24% y-o-y. Over the period under review, global cabbage imports reached their peak figure at 2.6M tonnes in 2016; however, from 2017 to 2018, imports stood at a somewhat lower figure.

In value terms, cabbage imports totaled $1.5B in 2018. Overall, the total imports indicated a conspicuous increase from 2007 to 2018: its value increased at an average annual rate of +2.4% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, cabbage imports decreased by -12.2% against 2016 indices. The most prominent rate of growth was recorded in 2011 with an increase of 16% against the previous year. Global imports peaked at $1.7B in 2016; however, from 2017 to 2018, imports failed to regain their momentum.

Imports by Country

In 2018, China, Hong Kong SAR (546K tonnes), distantly followed by the U.S. (225K tonnes), Canada (189K tonnes), Malaysia (176K tonnes), Russia (113K tonnes), Germany (112K tonnes) and Thailand (105K tonnes) represented the main importers of cabbage and other brassicas, together mixing up 64% of total imports. Singapore (64K tonnes), Japan (60K tonnes), the Czech Republic (53K tonnes), France (50K tonnes) and the UK (42K tonnes) occupied a minor share of total imports.

Imports into China, Hong Kong SAR increased at an average annual rate of +6.3% from 2007 to 2018. At the same time, Thailand (+32.5%), Malaysia (+9.8%), France (+2.5%), the U.S. (+2.2%), Canada (+2.0%) and the Czech Republic (+1.2%) displayed positive paces of growth. Moreover, Thailand emerged as the fastest growing importer in the world, with a CAGR of +32.5% from 2007-2018. Singapore experienced a relatively flat trend pattern. By contrast, Japan (-1.2%), Germany (-1.3%), Russia (-3.5%) and the UK (-5.5%) illustrated a downward trend over the same period. From 2007 to 2018, the share of China, Hong Kong SAR, Malaysia, Thailand, the U.S. and Canada increased by +12%, +4.9%, +4.3%, +2.1% and +1.6% percentage points, while the UK (-1.6 p.p.) and Russia (-2.3 p.p.) saw their share reduced. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Canada ($302M), China, Hong Kong SAR ($223M) and the U.S. ($167M) were the countries with the highest levels of imports in 2018, with a combined 47% share of global imports. These countries were followed by Germany, Malaysia, France, Thailand, Singapore, the UK, Japan, Russia and the Czech Republic, which together accounted for a further 30%.

Among the main importing countries, Thailand experienced the highest rates of growth with regard to imports, over the last eleven-year period, while the other global leaders experienced more modest paces of growth.

Import Prices by Country

The average cabbage import price stood at $641 per tonne in 2018, approximately reflecting the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +1.1%. The growth pace was the most rapid in 2013 when the average import price increased by 18% y-o-y. Over the period under review, the average import prices for cabbage and other brassicas attained their maximum at $692 per tonne in 2014; however, from 2015 to 2018, import prices failed to regain their momentum.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Canada ($1,597 per tonne), while Russia ($315 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Canada, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

whey

Whey Market in Asia-Pacific – China to Remain the Largest Import Market, Despite a Softer Economy

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

The revenue of the whey market in Asia-Pacific amounted to $1.5B in 2018, waning by -4.3% 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). The total market indicated buoyant growth from 2007 to 2018: its value increased at an average annual rate of +6.4% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, whey consumption increased by +9.0% against 2016 indices. The most prominent rate of growth was recorded in 2011 with an increase of 27% y-o-y. Over the period under review, the whey market reached its maximum level at $1.7B in 2013; however, from 2014 to 2018, consumption failed to regain its momentum.

Consumption By Country in Asia-Pacific

China (526K tonnes) constituted the country with the largest volume of whey consumption, accounting for a 42% share. Moreover, whey consumption in China exceeded the figures recorded by the region’s second-largest consumer, Indonesia (128K tonnes), fourfold. Australia (91K tonnes) ranked third in terms of total consumption with a 7.3% share.

From 2007 to 2018, the average annual growth rate of volume in China amounted to +9.3%. The remaining consuming countries recorded the following average annual rates of consumption growth: Indonesia (+8.1% per year) and Australia (+6.3% per year).

In value terms, China ($555M) led the market, alone. The second position in the ranking was occupied by New Zealand ($159M). It was followed by Indonesia.

In 2018, the highest levels of whey per capita consumption was registered in New Zealand (15 kg per person), followed by Australia (3,674 kg per 1000 persons), Malaysia (2,644 kg per 1000 persons) and Thailand (853 kg per 1000 persons), while the world average per capita consumption of whey was estimated at 299 kg per 1000 persons.

From 2007 to 2018, the average annual growth rate of the whey per capita consumption in New Zealand totaled +23.5%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Australia (+4.7% per year) and Malaysia (+3.7% per year).

Market Forecast 2019-2025 in Asia-Pacific

Driven by increasing demand for whey in Asia-Pacific, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +3.7% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 1.6M tonnes by the end of 2025.

Production in Asia-Pacific

The whey production amounted to 151K tonnes in 2018, approximately mirroring the previous year. In general, whey production, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2010 when production volume increased by 1.9% year-to-year. Over the period under review, whey production attained its peak figure volume at 155K tonnes in 2008; however, from 2009 to 2018, production stood at a somewhat lower figure.

In value terms, whey production totaled $160M in 2018 estimated in export prices. In general, whey production, however, continues to indicate a drastic curtailment. The growth pace was the most rapid in 2010 with an increase of 70% year-to-year. The level of whey production peaked at $433M in 2012; however, from 2013 to 2018, production failed to regain its momentum.

Production By Country in Asia-Pacific

Australia (99K tonnes) remains the largest whey producing country in Asia-Pacific, comprising approx. 65% of total production. Moreover, whey production in Australia exceeded the figures recorded by the region’s second-largest producer, New Zealand (26K tonnes), fourfold. The third position in this ranking was occupied by China (20K tonnes), with a 13% share.

In Australia, whey production remained relatively stable over the period from 2007-2018. In the other countries, the average annual rates were as follows: New Zealand (+1.5% per year) and China (-1.1% per year).

Exports in Asia-Pacific

In 2018, the amount of whey exported in Asia-Pacific stood at 78K tonnes, jumping by 28% against the previous year. In general, whey exports, however, continue to indicate a measured decrease. The most prominent rate of growth was recorded in 2016 when Exports increased by 45% year-to-year. Over the period under review, whey exports attained their maximum at 99K tonnes in 2009; however, from 2010 to 2018, exports remained at a lower figure.

In value terms, whey exports amounted to $95M in 2018. Over the period under review, whey exports, however, continue to indicate a drastic setback. The most prominent rate of growth was recorded in 2011 with an increase of 30% y-o-y. Over the period under review, whey exports attained their maximum at $209M in 2012; however, from 2013 to 2018, exports stood at a somewhat lower figure.

Exports by Country

Australia was the major exporting country with an export of around 52K tonnes, which recorded 67% of total exports. New Zealand (15K tonnes) took a 20% share (based on tonnes) of total exports, which put it in second place, followed by Thailand (6.4%). The following exporters – Singapore (1.3K tonnes) and South Korea (1.3K tonnes) – each reached a 3.4% share of total exports.

Australia experienced a relatively flat trend pattern of wheyexports. At the same time, South Korea (+36.0%) displayed positive paces of growth. Moreover, South Korea emerged as the fastest growing exporter in Asia-Pacific, with a CAGR of +36.0% from 2007-2018. By contrast, New Zealand (-2.9%), Thailand (-6.4%) and Singapore (-9.6%) illustrated a downward trend over the same period. From 2007 to 2018, the share of South Korea increased by +1.6% percentage points, while Australia (-1.8 p.p.), Singapore (-3.4 p.p.), Thailand (-6.9 p.p.) and New Zealand (-7.7 p.p.) saw their share reduced.

In value terms, the largest whey markets in Asia-Pacific were Australia ($50M), New Zealand ($27M) and Thailand ($6.3M), together accounting for 88% of total exports. South Korea and Singapore lagged somewhat behind, together accounting for a further 5.8%.

Among the main exporting countries, South Korea (+59.4% per year) experienced the highest growth rate of exports, over the last eleven-year period, while the other leaders experienced a decline in the exports figures.

Export Prices by Country

The whey export price in Asia-Pacific stood at $1,217 per tonne in 2018, going down by -28.9% against the previous year. Overall, the whey export price continues to indicate a pronounced descent. The most prominent rate of growth was recorded in 2011 an increase of 49% year-to-year. Over the period under review, the export prices for whey attained their peak figure at $2,774 per tonne in 2012; however, from 2013 to 2018, export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was South Korea ($2,989 per tonne), while Australia ($957 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by South Korea, while the other leaders experienced mixed trends in the export price figures.

Imports in Asia-Pacific

In 2018, the amount of whey imported in Asia-Pacific totaled 1.2M tonnes, jumping by 10% against the previous year. The total imports indicated prominent growth from 2007 to 2018: its volume increased at an average annual rate of +6.7% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, whey imports increased by +35.0% against 2014 indices. The growth pace was the most rapid in 2009 with an increase of 22% y-o-y. The volume of imports peaked in 2018 and are likely to see steady growth in the immediate term.

In value terms, whey imports amounted to $1.2B in 2018. In general, whey imports continue to indicate a moderate increase. The most prominent rate of growth was recorded in 2011 when Imports increased by 48% against the previous year. The level of imports peaked at $1.8B in 2013; however, from 2014 to 2018, imports failed to regain their momentum.

Imports by Country

China was the key importing country with an import of about 506K tonnes, which amounted to 43% of total imports. Indonesia (128K tonnes) ranks second in terms of the total imports with a 11% share, followed by Malaysia (7.3%), the Philippines (5.6%), Thailand (5%), New Zealand (5%) and Japan (4.8%). Viet Nam (45K tonnes) followed a long way behind the leaders.

Imports into China increased at an average annual rate of +10.1% from 2007 to 2018. At the same time, New Zealand (+24.1%), Indonesia (+8.0%), Malaysia (+5.3%), Viet Nam (+5.1%), the Philippines (+4.0%) and Thailand (+3.6%) displayed positive paces of growth. Moreover, New Zealand emerged as the fastest growing importer in Asia-Pacific, with a CAGR of +24.1% from 2007-2018. By contrast, Japan (-1.6%) illustrated a downward trend over the same period. China (+28 p.p.), Indonesia (+6.2 p.p.), New Zealand (+4.5 p.p.), Malaysia (+3.2 p.p.), the Philippines (+2 p.p.), Thailand (+1.6 p.p.) and Viet Nam (+1.6 p.p.) significantly strengthened its position in terms of the total imports, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($510M) constitutes the largest market for imported whey in Asia-Pacific, comprising 41% of total whey imports. The second position in the ranking was occupied by Indonesia ($129M), with a 10% share of total imports. It was followed by Malaysia, with a 7% share.

From 2007 to 2018, the average annual rate of growth in terms of value in China stood at +4.8%. In the other countries, the average annual rates were as follows: Indonesia (+3.1% per year) and Malaysia (+1.6% per year).

Import Prices by Country

The whey import price in Asia-Pacific stood at $1,047 per tonne in 2018, going down by -14% against the previous year. In general, the whey import price continues to indicate a perceptible reduction. The pace of growth was the most pronounced in 2010 when the import price increased by 29% against the previous year. Over the period under review, the import prices for whey reached their maximum at $1,852 per tonne in 2013; however, from 2014 to 2018, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Japan ($1,315 per tonne), while Viet Nam ($787 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Viet Nam, while the other leaders experienced a decline in the import price figures.

Source: IndexBox AI Platform

plum

Global Plum And Sloe Market Reached $15.7B in 2018

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

The global plum and sloe market revenue amounted to $15.7B in 2018, going up by 12% 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).

The market value increased at an average annual rate of +4.7% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2011 with an increase of 13% y-o-y. Global plum and sloe consumption peaked in 2018 and is expected to retain its growth in the near future.

Consumption By Country

China (7.1M tonnes) constituted the country with the largest volume of plum and sloe consumption, accounting for 59% of total consumption. Moreover, plum and sloe consumption in China exceeded the figures recorded by the world’s second largest consumer, Romania (453K tonnes), more than tenfold. The U.S. (420K tonnes) ranked third in terms of total consumption with a 3.5% share.

In China, plum and sloe consumption expanded at an average annual rate of +3.6% over the period from 2007-2018. In the other countries, the average annual rates were as follows: Romania (+1.8% per year) and the U.S. (+1.7% per year).

In value terms, China ($10B) led the market, alone. The second position in the ranking was occupied by the U.S. ($757M). It was followed by Iran.

The countries with the highest levels of plum and sloe per capita consumption in 2018 were Serbia (33 kg per person), Romania (23 kg per person) and Morocco (5,363 kg per 1000 persons).

From 2007 to 2018, the most notable rate of growth in terms of plum and sloe per capita consumption, amongst the main consuming countries, was attained by Morocco, while the other global leaders experienced more modest paces of growth.

Market Forecast 2019-2025

Driven by increasing demand for plum and sloe worldwide, the market is expected to continue an upward consumption trend over the next seven year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.8% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 14M tonnes by the end of 2025.

Production 2007-2018

Global plum and sloe production amounted to 12M tonnes in 2018, going up by 2.9% against the previous year. The total output volume increased at an average annual rate of +2.3% over the period from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations over the period under review. The growth pace was the most rapid in 2009 when production volume increased by 6.3% y-o-y. Global plum and sloe production peaked in 2018 and is expected to retain its growth in the near future. The general positive trend in terms of plum and sloe output was largely conditioned by a measured expansion of the harvested area and a slight increase in yield figures.

In value terms, plum and sloe production totaled $16.3B in 2018 estimated in export prices. In general, the total output indicated a strong expansion from 2007 to 2018: its value increased at an average annual rate of +2.3% over the last eleven year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the plum and sloe production increased by +25.6% against 2016 indices. The pace of growth appeared the most rapid in 2018 with an increase of 16% year-to-year. In that year, global plum and sloe production reached its peak level and is likely to continue its growth in the immediate term.

Production By Country

China (7M tonnes) constituted the country with the largest volume of plum and sloe production, comprising approx. 58% of total production. Moreover, plum and sloe production in China exceeded the figures recorded by the world’s second largest producer, Romania (441K tonnes), more than tenfold. The U.S. (430K tonnes) ranked third in terms of total production with a 3.5% share.

From 2007 to 2018, the average annual rate of growth in terms of volume in China stood at +3.5%. In the other countries, the average annual rates were as follows: Romania (+1.5% per year) and the U.S. (+1.6% per year).

Harvested Area 2007-2018

In 2018, approx. 2.7M ha of plums and sloes were harvested worldwide; increasing by 1.6% against the previous year. The harvested area increased at an average annual rate of +1.2% from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2013 with an increase of 4.8% year-to-year. In that year, the global plum and sloe harvested area reached its peak figure of 2.7M ha. From 2014 to 2018, the growth of the global plum and sloe harvested area remained at a somewhat lower figure.

Yield 2007-2018

Global average plum and sloe yield totaled 4.6 tonne per ha in 2018, therefore, remained relatively stable against the previous year. The yield figure increased at an average annual rate of +1.1% from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2009 when Yield increased by 4.8% year-to-year. Over the period under review, the average plum and sloe yield attained its maximum level in 2018 and is expected to retain its growth in the near future.

Exports 2007-2018

In 2018, the global exports of plums and sloes stood at 615K tonnes, leveling off at the previous year. The total export volume increased at an average annual rate of +1.2% from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations throughout the analyzed period. The pace of growth appeared the most rapid in 2011 when exports increased by 12% against the previous year. Over the period under review, global plum and sloe exports attained their maximum at 689K tonnes in 2013; however, from 2014 to 2018, exports stood at a somewhat lower figure.

In value terms, plum and sloe exports totaled $776M in 2018. The total export value increased at an average annual rate of +1.9% from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed throughout the analyzed period. The pace of growth was the most pronounced in 2008 with an increase of 16% against the previous year. Over the period under review, global plum and sloe exports reached their peak figure at $838M in 2013; however, from 2014 to 2018, exports remained at a lower figure.

Exports by Country

In 2018, Chile (121K tonnes), distantly followed by Spain (73K tonnes), South Africa (58K tonnes), Moldova (53K tonnes), Italy (45K tonnes), China, Hong Kong SAR (43K tonnes), the U.S. (33K tonnes) and Uzbekistan (28K tonnes) represented the largest exporters of plums and sloes, together making up 74% of total exports. Serbia (16K tonnes), Turkey (14K tonnes), France (13K tonnes) and the Netherlands (11K tonnes) occupied a minor share of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Moldova, while the other global leaders experienced more modest paces of growth.

In value terms, Chile ($174M), Spain ($113M) and South Africa ($78M) appeared to be the countries with the highest levels of exports in 2018, with a combined 47% share of global exports. These countries were followed by China, Hong Kong SAR, the U.S., Italy, Moldova, the Netherlands, Uzbekistan, France, Turkey and Serbia, which together accounted for a further 39%.

Moldova experienced the highest rates of growth with regard to exports, among the main exporting countries over the last eleven year period, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average plum and sloe export price amounted to $1,262 per tonne, surging by 3.7% against the previous year. In general, the plum and sloe export price continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2008 an increase of 11% against the previous year. Over the period under review, the average export prices for plums and sloes attained their maximum at $1,317 per tonne in 2014; however, from 2015 to 2018, export prices failed to regain their momentum.

Prices varied noticeably by the country of origin; the country with the highest price was the Netherlands ($1,862 per tonne), while Moldova ($528 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by China, Hong Kong SAR, while the other global leaders experienced more modest paces of growth.

Imports 2007-2018

In 2018, approx. 575K tonnes of plums and sloes were imported worldwide; dropping by -6.6% against the previous year. The total import volume increased at an average annual rate of +1.1% from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. The most prominent rate of growth was recorded in 2016 with an increase of 12% y-o-y. Over the period under review, global plum and sloe imports reached their peak figure at 659K tonnes in 2013; however, from 2014 to 2018, imports remained at a lower figure.

In value terms, plum and sloe imports totaled $721M in 2018. The total import value increased at an average annual rate of +1.0% over the period from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years. The pace of growth was the most pronounced in 2016 when Imports increased by 16% y-o-y. Over the period under review, global plum and sloe imports attained their maximum at $849M in 2013; however, from 2014 to 2018, imports remained at a lower figure.

Imports by Country

China (93K tonnes) and Russia (77K tonnes) represented roughly 30% of total imports of plums and sloes in 2018. It was distantly followed by the Netherlands (38K tonnes), Germany (32K tonnes) and the UK (30K tonnes), together committing a 17% share of total imports. The U.S. (23K tonnes), Kazakhstan (19K tonnes), Brazil (16K tonnes), Canada (15K tonnes), China, Hong Kong SAR (13K tonnes), Egypt (13K tonnes) and Saudi Arabia (12K tonnes) occupied a relatively small share of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Kazakhstan (+59.5% per year), while the other global leaders experienced more modest paces of growth.

In value terms, China ($155M) constitutes the largest market for imported plums and sloes worldwide, comprising 21% of global imports. The second position in the ranking was occupied by Russia ($56M), with a 7.8% share of global imports. It was followed by the Netherlands, with a 7% share.

In China, plum and sloe imports increased at an average annual rate of +24.0% over the period from 2007-2018. In the other countries, the average annual rates were as follows: Russia (+3.9% per year) and the Netherlands (-3.2% per year).

Import Prices by Country

In 2018, the average plum and sloe import price amounted to $1,255 per tonne, standing approx. at the previous year. Over the period under review, the plum and sloe import price continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2008 when the average import price increased by 3.5% year-to-year. Over the period under review, the average import prices for plums and sloes reached their maximum at $1,328 per tonne in 2014; however, from 2015 to 2018, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Canada ($1,901 per tonne), while Kazakhstan ($722 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Canada, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform