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U.S. Rape Seed Prices to Spike 74% to Over $320 per tonne in 2022

seed

U.S. Rape Seed Prices to Spike 74% to Over $320 per tonne in 2022

IndexBox has just published a new report: ‘U.S. – Rape Or Colza Seed – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

This year, the average rape seed price in the U.S. is forecast to pick up 74% y/y to a record $320 per tonne owing to reducing supply. Unfavourable weather in North Dakota adversely affected yields, decreasing the total rape seed output.

The average rape seed price in the U.S. is forecast to skyrocket from $184 per tonne in 2021 to a record $320 per tonne due to lower supply. Although the area under canola was expanded by 328K acres to 2.15M acres, poor weather in North Dakota led to yields reducing sharply last year. Dakota’s production accounts for 85% of total American rape output.

An expected decrease in rape imports to the U.S. will be another driver of the price growth. Much like in North Dakota, Canadian farmers saw poor yields and produced a record-low canola seed volume. This eventually will make Canada, which shapes 92% of U.S. rape seed imports, reduce exports to the country. Suppliers from Ukraine and the EU will likely expand their canola shipments to the U.S., filling the gap after reduced availability in North America.

U.S. Rape and Colza Seed Imports

In 2020, the amount of rape or colza seed imported into the U.S. expanded rapidly to 567K tonnes, with an increase of 12% compared with the year before. In value terms, supplies rose to $254M (IndexBox estimates).

Canada (524K tonnes) was the leading supplier of rape and colza seed to the U.S., with a 92% share of total imports. Moreover, rape and colza seed imports from Canada exceeded the figures recorded by the second-largest supplier, Argentina (25K tonnes), more than tenfold.

In value terms, Canada ($226M) constituted the most significant rape and colza seed supplier to the U.S., comprising 89% of total imports. The second position in the ranking was occupied by Argentina ($13M), with a 5.3% share of total imports.

Top Rape and Colza Seed Suppliers Worldwide

Global exports of rape or colza seeds amounted to 25M tonnes in 2020.In value terms, supplies totaled $11.1B.

Canada was the largest exporter of rape or colza seed globally, with the volume of supplies recording 12M tonnes, which was approx. 47% of total exports in 2020. Ukraine (2.4M tonnes) took a 9.5% share (based on tonnes) of total exports, which put it in second place, followed by the Netherlands (7.8%) and Australia (6.7%). France (1,060K tonnes), Belgium (946K tonnes), Hungary (714K tonnes), Lithuania (675K tonnes), Russia (647K tonnes), Romania (542K tonnes), Latvia (501K tonnes) and Poland (410K tonnes) took a little share of total exports.

In value terms, Canada ($4.7B) remains the most significant rape and colza seed supplier worldwide, comprising 42% of global supplies. The second position in the ranking was occupied by Ukraine ($1B), with a 9.1% share of total exports. It was followed by the Netherlands, with a 7.9% share.

Source: IndexBox Platform

lemon

U.S. Lemon Prices to Increase on Rising Fertilizer Costs, Global Production to Gain 4% y/y in 2022

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

Driven by growing logistics and fertilizer costs, lemon prices in the U.S. will rise despite expected increases in domestic and global production. In 2022, worldwide lemon and lime output is forecast to grow by 4% y/y to a record 22M tonnes due to increased acreages and favourable weather in Mexico, Turkey, South Africa and the U.S.

Lemon prices in the U.S. are projected to grow, despite expected increases in domestic and global production. Rising logistics and fertilizer costs are to push up fruit prices. In December 2021, the monthly average retail price for a pound of lemons in the U.S. was estimated at approximately $2.014, rising by 6% compared to December 2020. In 2022, it is forecast to pick up 3% to $2.074 per pound.

This year, global lemon and lime production is projected to increase by 4% y/y to 22M tonnes on the higher harvested areas and favourable weather in Mexico, Turkey and the U.S. Output in Mexico is to grow by 7% y/y to 3.2M tonnes, while Turkey production is set to soar by 27% y/y to a record 1.4M tonnes. Lemon production in South Africa is to rise by 4% y/y to 650K tonnes.

In 2022, U.S. output is expected to pick up 10% y/y to 885K tonnes with a larger crop in California. Imports into the U.S. are forecast to decrease by 2.3% y/y to 840K tonnes on rising domestic production.

Global Lemon and Lime Imports by Country

In 2020, approx. 3.7M tonnes of lemons and limes were imported worldwide, surging by 10% on the year before. In value terms, lemon and lime imports skyrocketed to $4.2B (IndexBox estimates).

In 2020, the U.S. (853K tonnes), distantly followed by the Netherlands (306K tonnes), Germany (260K tonnes), Russia (239K tonnes), France (174K tonnes) and the UK (168K tonnes) were the key importers of lemons and limes, together constituting 55% of total supplies. The following importers – Saudi Arabia (146K tonnes), Poland (141K tonnes), the United Arab Emirates (136K tonnes), Italy (119K tonnes), Canada (66K tonnes), Ukraine (65K tonnes) and Romania (62K tonnes) – together made up 20% of total purchases.

In value terms, the largest lemon and lime importing markets worldwide were the U.S. ($659M), Germany ($455M) and the Netherlands ($346M), together comprising 35% of global imports.

In 2020, the average lemon and lime import price amounted to $1,137 per tonne, surging by 4.8% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was Canada ($1,925 per tonne), while the United Arab Emirates ($714 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Poland, while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform

organic farming

U.S. States With the Most Organic Farms

As the force that feeds and nourishes the population, agriculture is one of the most vital industries in the U.S. economy. To accommodate the country’s growth over the years, agricultural practices have evolved to become more efficient, capable of reliably meeting the population’s daily needs. But these efficient practices also come with environmental costs, and many farmers and consumers are increasingly seeking out more sustainable alternatives.

Organic farming is an approach to agriculture that attempts to mimic nature and natural processes when raising crops and livestock. Rather than using techniques of larger-scale industrial agriculture, like genetic modifications, monoculture farming, and synthetic fertilizers and pesticides, organic farmers seek to conserve biodiversity and natural resources on their farmland.

Organic products have seen a boom in demand in recent years, and there are a number of reasons why consumers might be seeking out organic products. Organic techniques appeal to environmentalist consumers who value a more sustainable approach to agriculture that promotes biodiversity, limits pollution, and increases carbon capture. For meat and dairy consumers, livestock production on organic farms is considered to be a more ethical and humane way to raise animals because they are given more access to the outdoors, better feed, and fewer hormones and antibiotics. Health-conscious consumers can point to evidence that organic products have health benefits like greater nutrient density and lower levels of toxic metals and pesticide residue than conventional agricultural products.

Whatever the reasons, organic farming has increased substantially over the last decade or so. In 2008, the U.S. had 10,903 organic farms covering around 4 million acres of farmland. In 2019, there were nearly 16,500 organic farms on 5.5 million acres. And these farms have grown alongside consumer demand: the sales of organic products have more than tripled over the same span, rising from $3.1 billion to $9.9 billion.

Within the nearly $10 billion organic food market, milk, chicken, and eggs are the top-selling products. Organic milk leads all products with sales of more than $1.5 billion per year, while chicken sees $1.1 billion in sales annually and eggs generate $887 million. Apples are the top-selling form of organic produce, with $475 million in annual sales.

While the organic farming industry has seen tremendous growth, not all farmers are adopting organic practices. Many large-scale agricultural operations in the Midwest and South have relatively low numbers of organic farms and acreage devoted to such operations. But one location where organic agriculture has taken hold deeply is California. California is home to more than 3,000 organic farms—more than twice the next-highest state—and the total acreage of organic farms in the state totals nearly 1 million acres.

California is the nation’s top state for agricultural sales overall, so it is unsurprising that the state is also the leader in organic production. In relative terms, several other states devote a greater share of their farmland to organic farming than California, where organic farms represent only about 4% of the state’s agricultural acreage. Instead, the list of top states for organic farms on a relative basis is led by northeastern states including Maine, New York, and Vermont—the runaway leader, where organic acreage accounts for nearly 17% of its total.

The data used in this analysis is from the USDA. To identify the states with the most organic farms, researchers at Commodity.com calculated the total certified organic acres operated as a percentage of total farmland in each state. In the event of a tie, the state with the greater number of organic farms as a percentage of total farms was ranked higher. Only states with available data from the USDA were included in the analysis.

Here are the states with the most organic farms.

State Rank Organic acreage as a percentage of total Organic farms as a percentage of total Total organic acreage Total organic farms Total value of organic products sold
Vermont    1   16.92% 9.63% 203,002 655 $159,742,000
New York    2   4.68% 3.96% 323,081 1,321 $298,420,000
Maine    3   4.25% 6.00% 55,261 456 $63,820,000
California    4   3.97% 4.31% 965,257 3,012 $3,596,923,000
New Hampshire    5   2.72% 1.95% 11,708 80 $11,274,000
Wisconsin    6   1.75% 2.10% 250,940 1,364 $268,921,000
Massachusetts    7   1.63% 1.85% 8,170 133 $32,895,000
Nevada    8   1.60% 1.19% 97,868 40 $66,803,000
Idaho    9   1.57% 0.98% 180,732 240 $205,968,000
Pennsylvania    10   1.47% 1.79% 107,550 944 $741,764,000
Michigan    11   1.25% 1.15% 122,253 541 $230,955,000
Oregon    12   1.24% 1.22% 196,045 455 $454,406,000
Utah    13   0.88% 0.27% 94,591 48 $26,903,000
Maryland    14   0.86% 0.97% 17,196 120 $50,080,000
Ohio    15   0.82% 1.01% 111,920 785 $116,999,000
United States    –   0.61% 0.81% 5,495,274 16,476 $9,925,911,000

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/most-organic-farms/

grain

EU Grain Prices to Drop on Lower Feed Demand, but Rising Energy Costs Impugn Forecast

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

By 2024, EU grain prices are expected to decrease moderately due to falling demand for livestock feed. There’s a risk that if high prices for gas and a related fertilizer imbalance continue for several years, they may negate effects from the demand change. Expected increases in consumption of organic produce could also buoy the prices. By 2025, grain trade in the EU will decline by 8% to 84М tonnes due to diminished production and tough competition in global markets.

Key Trends and Insights

According to the latest EU Agricultural Outlook, there will be a decrease in the livestock herd in the EU in the next two years, causing lower demand for feed and a subsequent drop in grain prices. In 2024, wheat prices should decline from 206 to 178 euros per tonne, barley from 189 to 174 euros per tonne, and maize from 206 to 165 euros per tonne. This scenario is only possible if gas prices fall and the fertilizer imbalance is eliminated. However, high gas costs make fertilizer production in the EU less profitable and limit the possibility of a drop in prices in the next few years.

Demand for nitrogen fertilizers in the EU will remain stable, while consumption of phosphorus fertilizers will expand, driven by an increase in the input per hectare. As EU countries do not have enough phosphorus supply, a large share of the gains in consumption will be balanced by imports from the U.S., Morocco and China.

In 2025, grain prices will rise again due to higher energy resources and fertilizers costs. By 2031, costs per tonne for wheat are expected to reach 202 euros, barley – 183 euros and maize – 182 euros.

Demand for organic produce will continue to grow as Europeans place more and more preference on healthy products. This additionally will push prices up as the yield for organic produce is lower than with conventional crops due to the less aggressive use of fertilizers and pesticides.

The EU is forecast to remain competitive on the global grain market, although its share in the global exports will decrease due to tough competition from other key players, especially from the Black Sea region. Grain trade in the EU will reduce by 8% to 84М tonnes in 2025 (IndexBox estimates).

EU Grain Trade 

In 2020, the amount of grain exported in the EU stood at 91M tonnes, surging by 4.8% against the previous year. In value terms, exports rose significantly to $23.2B.

France was the major exporting country with about 32M tonnes, which accounted for 35% of total exports. Germany (12M tonnes) took the second position in the ranking, followed by Romania (11M tonnes), Poland (9M tonnes) and Lithuania (4.9M tonnes). All these countries together took approx. 41% share of exports in the EU. The Czech Republic (3.4M tonnes), Latvia (3.4M tonnes), Slovakia (2M tonnes), Croatia (1.9M tonnes), Sweden (1.8M tonnes) and Denmark (1.6M tonnes) occupied a minor share of the total supplies.

In value terms, France ($7.7B) remains the largest grain supplier in the EU, comprising 33% of total exports. The second position in the ranking was occupied by Germany ($2.8B), with a 12% share, followed by Romania (10% share).

In France, grain exports increased at an average annual rate of +5.1% in 2020. The remaining exporting countries recorded the following average annual rates of exports growth: Germany (+56.7% y-o-y) and Romania (-15.7% y-o-y).

The grain export price in the EU stood at $255 per tonne in 2020, picking up by 5% against the previous year. Major exporting countries recorded the following prices: France ($245 per tonne), Germany ($230 per tonne). In 2020, the most notable rate of growth in terms of prices was attained by Sweden, while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

wheat

Boosting Shipments to Saudi Arabia and South Africa Push Poland’s Wheat Exports to $1B

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

In 2020, Poland’s wheat exports skyrocketed to $1B, reaching the highest point ever. In physical terms, exports soared from 2.1M tonnes in 2019 to 4.7M tonnes in 2020. The leading importer of wheat from Poland, Saudi Arabia, increased its purchases more than twofold last year. South Africa became the second-largest importer, unprecedently boosting shipments to 773K tonnes. The average export price for wheat from Poland jumped by +7.5% y-o-y to $223 per tonne in 2020.

Poland’s Wheat Exports by Country

Wheat exports from Poland surged 2.1M tonnes in 2019 to 4.7M tonnes in 2020. In value terms, wheat exports surged from $432M to $1B (IndexBox estimates) in 2020. Over the past decade, Poland’s wheat exports rose from 984K tonnes to 4.7M tonnes in physical terms, or from $208M to $1B in value terms.

Saudi Arabia (1.7M tonnes) was the leading destination for wheat exports from Poland, with a 36% share of total exports. Moreover, wheat exports to Saudi Arabia exceeded the volume sent to the second major destination, South Africa (773K tonnes), twofold. Germany (675K tonnes) ranked third in terms of total exports with a 14% share.

Wheat supplies from Poland to Saudi Arabia grew from 0.7M tonnes in 2019 to 1.7M tonnes in 2020. Exports to South Africa rose from 51K tonnes to 773K tonnes over this period. Among other countries, Algeria (from 63K tonnes to 402K tonnes) and Germany (from 503K tonnes to 675K tonnes) also ramped up wheat imports from Poland.

In value terms, Saudi Arabia ($377M) remains the key foreign market for wheat exports from Poland, comprising 36% of total exports. The second position in the ranking was occupied by South Africa ($169M), with a 16% share of total exports, and it was followed by Germany, with a 14% share. In 2020, the average wheat export price amounted to $223 per tonne, rising by +7.5% against the previous year. Average prices varied noticeably for the major export markets.

In 2020, the highest prices were recorded for prices to Kenya ($233 per tonne) and Algeria ($230 per tonne), while the average prices for exports to Turkey ($215 per tonne) and Germany ($217 per tonne) were amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Tanzania, while the prices for the other significant destinations experienced more modest paces of growth.

 

Source: IndexBox Platform

female farmer

States With the Most Female Farmers

Agriculture has historically been one of the most important industries in the U.S., but the sector has become less prominent over time. Farms have become more productive thanks to improved technology, which has changed farms’ needs for labor. Simultaneously, economic opportunities in more urbanized areas have grown at a much greater rate and attracted workers away from agricultural life. As a result, the demographic profiles of U.S. farmers are changing.

Most notably, farm producers—a person who is involved in making decisions for the farm—have been getting older on average. According to the 2017 Census of Agriculture, nearly one-third of the 3.4 million producers in the U.S. are 65 or older, and an additional 950,000 are aged 55 to 64. And fewer young people are taking their place, with only 284,000 producers under the age of 34.

But one area where the ranks of farmers are growing is female farmers. From 2012 to 2017, the number of female farm producers in the U.S. grew by more than 250,000, while the number of male producers declined by about 40,000 over the same span. Collectively, females today farm 388 million acres of U.S. farmland and are responsible for a total of $148 billion in agricultural sales.

As with other sectors of the economy, however, there is a difference in the earning power of farmers by sex. Female-operated farms tend to be smaller in scale and therefore earn less than their male-operated counterparts. In 2017, the most recent year for which data was available, 50% of female-operated farms earned less than $5,000 in sales and government payments, compared to 43% of male-operated farms. At the other end of the spectrum, only 19% of female-operated farms earn more than $50,000, compared to 26% of male-operated establishments.

Part of the reason for this disparity is related to historical and cultural factors. Agricultural professions have historically been seen as men’s work, so opportunities for women to lead in farm operations have been more scarce. The data bears this out: male farmers are almost three times more likely than female farmers to manage a farm on which they are the only producer. Women, on the other hand, are more likely to share management roles with others, especially other male producers.

Male and female farmers also differ in where they are located. Female farmers and female-operated farms are most common in the West and Northeast-—but these locations tend to have lower agricultural productivity. These states and counties also have a lower number of farms overall. In contrast, major farming areas including the upper Midwest and the Southeast have much lower proportions of female farms and farmers, which likely contributes to the gap in earnings as well.

The data used in this analysis is from the U.S. Department of Agriculture. To determine the states with the most female farmers, researchers at Commodity.com calculated the percentage of producers that are female for each state. In the event of a tie, the state with the greater number of total female producers was ranked higher. Researchers also included statistics on the number of farms with at least one female producer and the total number of farms.

Here are the states with the most female farm producers.

State Rank Percentage of producers that are female  Total female producers Percentage of farms with at least one female producer Total farms with at least one female producer Total farms 
Arizona    1          48.7% 15,968 71.6% 13,670 19,086
Alaska    2          46.7% 802 72.2% 715 990
New Hampshire    3          45.5% 3,277 73.9% 3,048 4,123
Oregon    4          44.2% 29,868 73.4% 27,592 37,616
Maine    5          43.7% 5,859 70.1% 5,327 7,600
Massachusetts    6          43.6% 5,572 66.2% 4,793 7,241
Washington    7          42.4% 26,868 68.9% 24,663 35,793
Nevada    8          42.4% 2,524 68.2% 2,335 3,423
Colorado    9          41.8% 28,839 67.9% 26,406 38,893
Vermont    10          41.6% 5,120 68.9% 4,691 6,808
Hawaii    11          41.4% 5,044 62.5% 4,580 7,328
Rhode Island    12          41.4% 743 63.9% 666 1,043
Connecticut    13          40.9% 3,892 63.6% 3,510 5,521
Florida    14          40.7% 32,122 62.6% 29,779 47,590
Wyoming    15          40.7% 8,816 66.9% 7,990 11,938
United States    –          36.1% 1,227,461 55.8% 1,139,675 2,042,220

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/most-female-farmers/

wheat bran

Boosting Turkey’s and China’s Imports Keep Global Wheat Bran Trade Afloat

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

In 2020, total wheat bran imports stood at 6.6M tonnes or $1.1B in value terms, remaining stable against the previous year. Turkey is the largest wheat bran importer, accounting for 24% of global imports. Turkey, China, the Netherlands and Saudi Arabia increased their imports while supplies to Viet Nam, Germany, Canada, South Africa and Thailand declined in 2020. China emerged as the fastest-growing importer. The average wheat bran import price rose by +4.8% y-o-y to $174 per tonne last year. Russia, Indonesia and Germany constitute key wheat bran suppliers worldwide.

Global Wheat Bran Imports by Country

Global wheat bran imports estimated at 6.6M tonnes in 2020, approximately mirroring the previous year. In value terms, wheat bran imports amounted to +3.9% to $1.1B (IndexBox estimates) in 2020.

Turkey represented the major importer of wheat bran globally, with the volume of imports resulting at 1.6M tonnes, which was approx. 24% of total imports in 2020. Viet Nam (546K tonnes) held an 8.3% share (based on tonnes) of total imports, which put it in second place, followed by Germany (6.4%), China (5.5%), the Netherlands (5.2%) and Saudi Arabia (5%). Belgium (278K tonnes), Ireland (256K tonnes), Egypt (156K tonnes), the UK (147K tonnes), Canada (146K tonnes), South Africa (114K tonnes) and Thailand (103K tonnes) followed a long way behind the leaders.

Except for Viet Nam, Germany, Canada, South Africa and Thailand, all largest importers ramped up the purchases in 2020. China featured the most prominent spike in import volume, increasing the supplies twofold.

In value terms, Turkey ($277M) constitutes the largest market for imported wheat bran worldwide, comprising 24% of global imports. The second position in the ranking was occupied by Viet Nam ($92M), with an 8% share of global imports. It was followed by China, with a 6.2% share.

The average wheat bran import price stood at $174 per tonne in 2020, increasing by +4.8% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was Thailand ($215 per tonne), while South Africa ($102 per tonne) was amongst the lowest. In 2020, 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.

World’s Largest Wheat Bran Exporters

In value terms, the largest wheat bran supplying countries worldwide were Russia ($147M), Indonesia ($123M) and Germany ($85M), with a combined 31% share of global exports. Ukraine, Italy, France, the Netherlands, Poland, the U.S., Kazakhstan, Argentina, Austria and Kenya lagged somewhat behind, together comprising a further 33%.

The shipments of the twelve major exporters of wheat bran, namely Russia, Indonesia, Ukraine, Germany, France, Italy, Kazakhstan, the U.S., Argentina, the Netherlands, Poland and Kenya, represented more than half of total export in physical terms.

Source: IndexBox Platform

food supply chain

The Effect of Supply Chain Crisis on the Food Industry

March 2020 marked the beginning of unprecedented times for businesses across the world. The COVID-19 pandemic has had deep socio-economic implications for the food industry. It has imposed sudden shocks across the food supply chain, affecting farm production, logistics, food processing, and market demand for food items.

US Food Supply Chain: Disruptions and Implications from COVID-19

The COVID-19 pandemic has brought a new set of challenges that have affected all industries globally. Similarly, the US food supply chain has been deeply impacted due to physical distancing and strict lockdowns. Here is a list of the major stakeholders affected by the pandemic:

Farmers

Since the beginning of the COVID-19 pandemic, farmers have faced distinct challenges like drop-in grain prices, unavailability of skilled labor, and an uncertain future. Farmers are also facing difficulties in managing excess produce, which is creating an imbalance in the supply chain.

Foodservice Distributors

The foodservice industry relies on foodservice distributors for a steady supply of food items. Due to COVID-19, foodservice distributors have been severely affected by supply chain issues and a decrease in demand from restaurants. COVID-19 restrictions and shutdowns led to a decrease in outbound orders. Even though there has been a steady supply of inventory from farmers or manufacturers, distributors still find it difficult to adjust to the sudden change in market dynamics. Foodservice distributors face challenges in storing excess inventory and making physical deliveries. Some distributors have been able to switch to online ordering and delivery services, but these methods are yet to be universally accepted by outlets.

Foodservice Producers

Foodservice producers have faced similar issues as distributors. The global supply chain crisis effect has led to some significant changes for the food industry. Plant utilization has been significantly lower for foodservice producers due to a decrease in demand from the foodservice industry. Most producers have equipment that is configured for delivering goods for the foodservice sector. Reconfiguring or recalibrating the equipment and changing the business model for the retail industry can be highly inefficient.

Consumer and Packaged-goods Companies

Retail manufacturers or packaged goods food businesses face huge challenges due to COVID-19. Even though demand has been steady for retail manufacturers, they have been facing unprecedented challenges. In the retail food manufacturing sector, employees work in close proximity with each other, leading to a spike in COVID-19 cases among workers. The recent surge in COVID-19 infections in meat-processing plants and other retail manufacturing factories has increased the chances of the mass closure of manufacturing plants.

Grocery Retailers

Among all types of food businesses, grocery retailers have witnessed the highest surge in demand. The primary challenge for grocery retailers has been to serve their customers in these challenging times. Grocery retailers and their employees have been overwhelmed with an increase in demand for food items. Additionally, retailers have been cleaning their stores throughout the day, paying hazard pay and huge incentives to adequately compensate staff for their efforts during the pandemic. Many grocery retailers have introduced online ordering and delivery solutions, which has led to a surge in revenue. This has also resulted in consumer complaints about delivery-related issues.

Effects of Pandemic on Food Supply Chain

The restrictions imposed on the foodservice industry due to the pandemic have hurt the food supply chain. Restrictions related to travel between cities, provinces, and countries have led to some significant challenges, affecting producers, consumers, distributors, farmers, and other stakeholders. Food processing units have become hotbeds for the pandemic. Due to the rapid rise in COVID-19 cases among employees, many manufacturing units had to shut their processing plants.

Effects of Pandemic on Consumer Behavior

The COVID-19 pandemic has affected the financial health of the average household as well. Due to financial issues, the food buying behavior of customers has changed drastically. Consumers currently prefer natural food items like vegetables, pulses, whole grains, and olive oil over different types of processed food items.

Effects of Pandemic on Global Food Trade

Food trade policies have also changed across the world. Many countries now restrict exports of essential food items for uninterrupted supply in the domestic market. Export restrictions have also led to a significant drop in prices, leading to losses for farmers or manufacturers.

Strategies for Food Supply Chain

A decentralized approach can be adopted by food manufacturers to avoid drawbacks and risks. Small-scale storage facilities near consumers can reduce storage and transportation costs significantly.

Recommendations to Minimize the Effect of COVID-19

The pandemic has seriously affected food safety, supply, nutrition, and financial health across the supply chain. Strict lockdowns and impositions have threatened the sustainability and growth of food businesses. Here is a list of recommendations that can minimize the effect of COVID-19 on food-related stakeholders:

Recommendations for Small Farmers

Countries can take measures to safeguard the health and finances of agricultural workers. Agri-produce collection centers near major locations can help small-scale farmers to minimize the loss of goods.

Suggestions for Government and Business

Governments can form a pandemic-handling committee to minimize the effects of the COVID-19 pandemic in the food supply chain. Business bodies can also develop advanced solutions and generate funds to help small suppliers, distributors, and retail outlets.

Businesses and individuals with a clear understanding of the challenges are better prepared in the current scenario. The current shifts in consumer spending habits have deeply affected economies across the world. These ripple effects of the pandemic have affected all stakeholders in the food supply chain, including distributors, producers, farmers, manufacturers, and retailers. Protecting their financial well-being and the general economic activity of the foodservice industry is integral to the economy’s recovery as the pandemic nears its end.

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 Author Bio: Damon Shrauner, Senior Sales Consultant and VP on B2B Sales at CKitchen, working in the food service equipment sector since 1994. With his expertise in market analysis, product placement, sales and project management, he will always tell you what to do for the best of your business.

insecticides

Brazilian Insecticide Imports Shoot Up to $1.5B

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

Insecticide imports into Brazil increased by +25% y-o-y to 99K tonnes. In value terms, they reached nearly $1.5B. Brazil remains the world’s largest importer of insecticides, accounting for 9% of global import volume. Argentina, India and China supplied approximately 72% of the total insecticide volume imported into Brazil. China featured the highest increase in the volume of supplies to the country. In 2020, the average insecticide import price fell by -13.4% y-o-y to $15,161 per tonne. 

Insecticide Imports into Brazil

In 2020, insecticide imports into Brazil skyrocketed to 99K tonnes, rising by +25% against 2019. In value terms, insecticide imports expanded sharply by +8.1% y-o-y to $1.5B (IndexBox estimates) in 2020. Brazil remains the world’s largest importer of insecticides, accounting for 9% of global import volume.

Argentina (35K tonnes), India (21K tonnes) and China (15K tonnes) were the main suppliers of insecticide imports to Brazil, together comprising 72% of total imports.

In 2020, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by China (+37.5% y-o-y). Brazilian purchases from Argentina and India rose by +9.3% y-o-y and +11.3% y-o-y, respectively.

In value terms, the U.S. ($510M), India ($321M) and Israel ($184M) were the largest insecticide suppliers to Brazil, with a combined 68% share of total imports. China, Singapore and Argentina lagged somewhat behind, together accounting for a further 25%.

In 2020, the average insecticide import price in Brazil amounted to $15,161 per tonne, waning by -13.4% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was Singapore ($80,331 per tonne), while the price for Argentina ($2,582 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Argentina, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

agricultural

The Best-Paying Cities for Agricultural Workers

Agriculture has been and remains one of the most important industries for the U.S. economy. In addition to directly providing food for the population in the form of produce and livestock, the broader agricultural sector—which includes farming, fishing, and forestry—provides raw materials that form the foundation of other industries like food service, construction, and textile manufacturing. Further, the U.S. is the world’s leading exporter of food and other agricultural products, which contributes to its global economic and political influence.

While agriculture’s role in the U.S. economy remains significant, the industry’s future in the U.S. faces many challenges. Global climate change has produced warmer temperatures and more frequent severe weather events like droughts and fires, threatening an increasing number of crops, livestock, and forests. Agricultural exports have been negatively impacted by recent trade disputes with other countries, and imports on agricultural equipment have become more expensive. And on top of these more recent challenges, agriculture has been undergoing a long-term decline as a share of the economy: farms alone represented more than 3% of GDP in the early 1960s but only account for less than 1% of U.S. GDP today.

Another indicator of agriculture’s shifting role in the economy is its employment numbers. Since the end of World War II, the total number of workers in agriculture and related industries has been on a steady decline over time. In the late 1950s, the U.S. economy had more than 8 million workers supporting agriculture. That figure had been cut in half within two decades, and today, agricultural-related employment hovers around 2.3 million, according to data from the Bureau of Labor Statistics.

One of the major reasons for this decline is agricultural and mechanical innovations that have reduced the need for manual labor. Simultaneously, other sectors of the economy have grown, offering new and more appealing opportunities in different fields and professions. Working conditions for agricultural workers are also some of the most difficult and hazardous of any profession, and these workers face some of the lowest wages of any profession in the U.S. According to BLS data, the median pay for farming, fishing, and forestry occupations is less than $30,000 per year, or about 30% below the median of $41,950 across all occupations.

However, certain states offer far better pay than others, especially after adjusting for cost-of-living differences. Despite above-average living costs, Alaska stands out as the best-paying state for these workers, where the typical agricultural worker earns an adjusted wage of more than $43,000 annually. Outside of Alaska, states in the Central U.S. offer the most competitive wages. At the other end of the spectrum, the list of lowest-paying states includes Florida, California, and New Jersey, where workers earn an adjusted wage of approximately $25,000 or less.

At the metro level, the Central U.S. is also well-represented on the list of best-paying U.S. locations for agricultural workers. Among large metropolitan areas, these include Indianapolis, Oklahoma City, Columbus, and St. Louis.

To find the best-paying locations for agricultural workers, researchers at Commodity.com analyzed data from the U.S. Bureau of Labor Statistics and the U.S. Bureau of Economic Analysis. Researchers calculated the median annual earnings for farming, fishing, and forestry occupations, which were adjusted for cost-of-living differences. Only metropolitan areas with at least 100,000 residents were included.

Here are the best-paying large metros for agricultural workers.

Metro Rank        Median annual earnings   for agricultural workers (adjusted) Median annual earnings for agricultural workers (unadjusted) Number of agricultural workers Cost of living (compared to national average)

 

Indianapolis-Carmel-Anderson, IN 1 $42,854 $39,040 300 -8.9%
Oklahoma City, OK 2 $40,122 $36,030 680 -10.2%
New Orleans-Metairie, LA 3 $39,044 $36,350 500 -6.9%
Columbus, OH 4 $37,707 $34,540 940 -8.4%
Buffalo-Cheektowaga-Niagara Falls, NY 5 $37,598 $35,530 70 -5.5%
Pittsburgh, PA 6 $37,500 $34,650 550 -7.6%
Richmond, VA 7 $36,138 $34,620 690 -4.2%
Salt Lake City, UT 8 $35,507 $35,010 210 -1.4%
St. Louis, MO-IL 9 $34,573 $31,150 1,390 -9.9%
Virginia Beach-Norfolk-Newport News, VA-NC 10 $34,191 $32,960 760 -3.6%
Birmingham-Hoover, AL 11 $33,873 $29,910 630 -11.7%
Louisville/Jefferson County, KY-IN 12 $33,795 $30,280 520 -10.4%
Baltimore-Columbia-Towson, MD 13 $33,393 $35,330 1,700 +5.8%
Cleveland-Elyria, OH 14 $33,382 $30,010 270 -10.1%
Minneapolis-St. Paul-Bloomington, MN-WI 15 $33,294 $34,260 1,350 +2.9%
United States $29,670 $29,670 478,770 N/A

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/agricultural-wages/