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The Recipe for QSR Success: Why Optimized Order Allocation is the Secret Ingredient for Faster Fulfilled Deliveries


The Recipe for QSR Success: Why Optimized Order Allocation is the Secret Ingredient for Faster Fulfilled Deliveries

In the ever-competitive world of Quick Service Restaurants, delivery isn’t just an add-on, it’s a core component of the customer experience. Yet, many food chains struggle with the complexities of order allocation, resulting in inconsistent service, frustrated staff, and ultimately, lost revenue.  It’s time to rethink order allocation – not as a logistical hurdle, but as a strategic lever for operational excellence, powered by delivery automation.
Manual Allocation: When Every Shift is a Recipe for Disaster

Relying on  gut-feeling and outdated processes for assigning orders creates bottlenecks:

  • Drivers Disconnected: Lack of visibility into order volume and driver availability leads to overloaded drivers alongside those with downtime.
  • ETAs Become Guesstimates: Customers crave predictability, inaccurate delivery times erode trust and increase complaints.
  • Spiraling Costs: Inefficient routes mean wasted fuel, higher vehicle wear, and decreased capacity to fulfill orders profitably.
When “Quick Service” Gets Lost in the Delivery Shuffle
A stellar in-store experience means nothing if delivery falls flat. Common issues include:
  • The Cold Food Factor: Delays and disorganized routing lead to lukewarm arrivals, impacting food quality and customer satisfaction.
  • Reactive vs. Proactive: Teams spend too much time on firefighting complaints instead of strategizing for future growth
  • Lost in the Data Desert: Without centralized tracking and reporting, it’s difficult to identify inefficiencies and pinpoint areas for improvement.
The Transformative Power of Optimized Order Allocation

Intelligent order allocation, powered by AI-driven software, moves your QSR from chaos to control:

  • Algorithms as Your Advantage: Dynamic allocation analyzes orders, driver status, traffic, and more, finding the perfect match in real-time.
  • Building Brand Trust: Reliable ETAs and consistently on-time deliveries nurture loyalty in the competitive last mile delivery marketplace.
  • Protecting Your Bottom Line: Optimizing routes reduces costs while increasing the volume of orders fulfilled, boosting efficiency and revenue.
  • Data-Driven Insights: The right system tracks key metrics, aiding decisions on staffing, fleet needs, and strategic growth.

Beyond the Tech: Success Factors to Consider

  • Delivery Management: Train delivery drivers and gain buy-in, framing auto-allocation as a tool that empowers them, not replaces them.
  • Integration is Key: Ensure your solution seamlessly connects with your existing POS, order management, and customer communication systems.
  • Flexibility Matters: The best allocation engines allow for customization to your QSR’s unique needs, 3PL partners, and future adaptations.
Ultimately, streamlined order allocation means happier customers.  The race is on to meet expectations for speed AND consistency.  Algorithmic automation combined with a user-friendly delivery management software is the key to ensuring every order, whether it’s a single burger or a mega-party spread,  arrives on time and ready to delight.
fourkites Road improvements in Massachusetts will impact shipments of export cargo and import cargo in international trade.

The Food Supply Industry is being held back by Supply Chain Difficulties

The results of a survey of more than 115 industry leaders were released today by FourKites, a leading supply chain visibility company, and Food Shippers of America (FSA), an industry non-profit association that brings together a community of supply chain, transportation, and logistics professionals. The findings of the survey shed light on the most pressing logistics challenges in the Food & Beverage (F&B) industry, as well as the impact of ongoing economic, geopolitical, and supply chain disruptions.

According to the findings, the three most significant challenges confronting the food shipping industry are:

  • Management of labor and talent (49%)
  • Problems with transportation capacity (39%)
  • Disruptions in supply and demand planning (35%)

According to the survey results, supply and demand planning, product availability, and warehousing issues were more likely to plague enterprise companies with sales of $1 billion or more.

While these were also top concerns for smaller food and beverage shippers with less than $500 million in sales, those firms were more likely than their larger counterparts to cite store operations and transportation rates as the main challenges.

Shippers reported that COVID-19’s impact on labor (56%), over-the-road capacity constraints (44%), port delays and congestion (30%), and changes in consumer behavior or buying patterns (22%), among other things, have all disrupted operations and created or exacerbated today’s challenges. In fact, more than 30% of respondents have seen a drop in customer loyalty since the pandemic began, and 55% have seen a sales decline or miss due to product shortages. Enterprise companies were hit the hardest financially, with more than 65% reporting losses.

Looking ahead, a sizable majority of businesses (75%) are “concerned” or “very concerned” that rising inflation and geopolitical uncertainty will harm sales in the fourth quarter of 2022.

According to the most recent FourKites data, the 28-day average F&B shipping volume is down 1% year over year, while shipments in all other industries are down nearly 10%. Meanwhile, the 28-day average percentage of delayed F&B deliveries has remained stable this year, hovering around 27.5%.

“Food and beverage shippers have had a lot to contend with recently, as the industry has been more affected by product and material shortages than most, and for goods that are in demand all year,” Glenn Koepke, FourKites General Manager of Network Collaboration, said.”Companies that have relied heavily on technology and collaboration to identify and address issues before they snowball into major events have fared the best in navigating supply chain disruptions.”When asked how they plan to future-proof their supply chain, respondents frequently mentioned technology and automation. “We are continuing to invest in technology to help us manage fuel, assets, and drivers’ utility,” said one survey respondent.

“If we’ve learned anything over the past couple of years, it’s that disruption is going to be continuous, and we need to have visibility throughout our supply chain,” said Melissa Wreath, Senior Director of Account Management at ArrowStream, a foodservice supply chain technology that helps clients improve supply chain management efficiency, strategic sourcing programs,

Food quality and safety. “FourKites enables us to have a real-time understanding of where things are across the entire network.” Without it, you’re always playing catch-up.”

F&B executives continue to rely on FourKites for end-to-end supply chain visibility, with the company seeing a 25% increase in total food and beverage shipper customers over the last year. Over the same time period, the total number of F&B shipments tracked by FourKites increased by nearly 50%. The company now serves over 1,100 of the world’s most recognized brands, including 18 of the top-20 F&B companies, including Coca-Cola Consolidated, Conagra, Boston Beer Company, Organic Valley, Constellation Brands, Nestlé, General Mills, Tyson Foods, Kraft Heinz, US Foods, Smithfield, Land O’Lakes and Cargill.

FourKites has been recognized for its ability to solve the pain points of enterprise customers, with a well-known track record in the F&B space. Earlier this year, FourKites was named a Leader in Gartner’s Magic Quadrant for Real-time Transportation Visibility Platforms for its ability to execute, and with the highest completeness of vision. FourKites also scored the highest for Fortune 500 businesses with complex needs, according to Gartner’s Critical Capabilities for Real-Time Transportation Visibility Platforms report. The company was also named to the 2022 “Top Food Chain Technology” list, a program that recognizes standout technologies in food transportation, logistics, distribution and supply chain management, according to Food Chain Digest and was identified as a Top Green Provider by Food Logistics.




Five ways the war in Ukraine will change the world’s economy

The war in Ukraine is a tragedy that will continue to play out for months, with an uncertain ending as far as the sad cost in human life, new alignments in global geopolitics and the stunning damage that will be done to the economies in countries beyond just Russia and Ukraine. Even though the repercussions of this war will reverberate for decades, we can already identify some trends that will impact the global economy in the future.  As with any volatile trade and economic situation, there will be clear losers (the Russian economy), but there will also be potent secondary developments that arise as a result of this aggressive invasion of a democratic, Western-oriented Ukraine.


Energy Security / Renewable Energy

The U.S. and EU have spent decades wringing their hands over the Transatlantic joint dependence on oil and gas from ‘bad actors’, including Russia, Saudi Arabia, and Venezuela.  In the last few weeks, attempts to punish Russia economically have been hamstrung due to the fact that much of Europe still receives about half of its gas from Russia, an impossible dependency when it comes to confronting Russia for its illegal actions in Ukraine. While the ‘fracking revolution’ has assisted the U.S. to a certain level of energy independence, a sizeable portion of the nation’s oil still comes from unreliable external sources. The irony of Russia’s attack on a democratic Ukraine is that it might finally push the U.S. and EU to commit to a substantive, immediate and dedicated pursuit of renewable energy sources for which environmental activists and innovative business leaders have been lobbying for decades.  Renewable energy’s strongest proponent just became the national security crowd.

Defense Spending – Globally

The same national security concerns will also lead to a huge rise in defense spending from EU and other nations.  Germany’s proposed budget increase alone will be a critical shot in the arm for the European defense industry, but we can assume that other nations that have put off investments in this area were shaken by Russia’s willingness to break global norms and attack Ukraine and will respond with substantial budget increases.  Images of Turkish Bayraktar drones destroying Russian armor and video of the U.S.-made Javelin helping to stymie the 7th largest army in the world are going to change how smaller nations structure their arms inventory.  More importantly, Russia’s actions have disabused any remaining doubters of the notion that a country like Russia will ‘play by the rules’ of international law in the modern era.  If Russia can so brazenly violate their international agreements and obligations, then so can China – and that realization will have a substantive domino effect on the planning and defense expenditures of everyone from Finland to the Philippines.

Wheat and Foodstuffs – Even Greater Price Inflation

Russia and Ukraine accounted for 30% of the global wheat trade prior to this conflict. But that is not the only food product that will be taken off of the market as a result of the war – sunflower oil, corn and other key products will either be destroyed (or unplanted) as a result of the fighting or will be locked inside Russia’s domestic market due to sanctions and the inevitable tariffs.  The rest of the world will see massive price increases and shortages in certain foodstuffs.  Combined with the global surge in inflation and increasing transportation costs, many global food-producing companies will struggle to provide products that are affordable for their usual clients.  If there is a silver lining to this cloud, it is that locally-sourced products and wheat-alternatives (rice, corn, bulgur) should see a boom in demand.

Cybersecurity and Information Warfare

Russia and China have been fighting a shadow war with the U.S. and EU in the cyber realm for years, but this conflict has pushed that fight into the light of day.  U.S. and European struggles with Russian governmental and pseudo-governmental cyber strikes (from denial of service attacks to outright hacks for information and funds, as well as documented attempts to impact elections in both regions) should have the same impact on corporate and governmental cybersecurity spending as watching Russian tanks roll into Ukraine did for defense spending.  No one wants to be the easy target in this war and corporations that took some risk and saved money on cybersecurity will be scampering to close those gaps as quickly as they can.  Russian desperation to get at global fund sources in the next few months dramatically increases the risk of pseudo-governmental ransomware attacks, and the information warfare we are seeing between Russia/China and the rest of the world is astoundingly blunt (and for Ukraine, remarkably effective in generating global support).  The gloves are off.  Is your company ready to defend its business interests from cyber and information / reputational attacks?

A More Unified, Emboldened EU

The last month has been a litmus test for EU leadership, and they have come out looking much more poised and united than anyone would have believed.  Should they have taken this threat more seriously in the last decade?  Absolutely.  Have they tolerated Putin-loving populists in the EU club for years (Orban, Zeman, Le Pen, Salvini)?  Sadly, yes.  But all of that changed when Russia headed for Kyiv.  Member state leaders closed ranks and the EU turned from a reluctant bystander into ardent supporters of Ukrainian defense efforts in a few short weeks.  From an economic perspective, this more unified and confident EU will disrupt a number of patterns.  They’re likely going to be much more aggressive in nurturing and protecting their internal innovation in technology and defense.  They will redouble efforts to reduce their dependency on external energy sources (to the benefit of renewable technologies, electric vehicle innovations, the nuclear industry and even public transportation ventures).  Most importantly, they can be expected to be stronger proponents of democratic ideals in their foreign political and business affairs.  Countries (and companies) that interact with this new EU will likely find that they are much more insistent on ESG concerns and support for human rights, democratic principles and adherence to the rule of law.


Kirk Samson is a Director at the International Trade Association of Greater Chicago.  He is a former U.S. diplomat and spent ten years as an international law advisor for the Department of Defense.

U.S. Canned Vegetable Imports to Surpass Previous Year’s Record of $1.5B

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

In Q1-Q3 2021, the U.S. imported 576K tonnes of canned vegetables worth $1.3B, which was 23% more in physical terms and 17% more in monetary terms than in 2020. Over the full 2021, U.S. imports are estimated to hit the previous year’s record of $1.5B. China, Canada and Peru remain the leading suppliers of canned vegetables to America.


U.S. Canned Vegetable Imports by Country

Canned vegetable imports into the U.S. were estimated at 704K tonnes in 2020, increasing 14% against 2019 figures. In value terms, purchases amounted to $1.5B (IndexBox estimates).

China (165K tonnes) constituted the largest canned vegetable supplier to the U.S., accounting for 23% of total imports. Moreover, canned vegetable supplies from China exceeded the figures recorded by the second-largest supplier, Canada (82K tonnes), twofold. The third position in this ranking was occupied by Peru (73K tonnes), with a 10% share.

In value terms, Spain ($204M), China ($192M) and Canada ($183M) were the largest canned vegetable suppliers to the U.S., with a combined 37% share of total imports.

In 2020, the average canned vegetable import price amounted to $2,192 per tonne, declining by -4.9% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Greece ($4,441 per tonne), while the price for China ($1,162 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Thailand, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

apple juice

European Concentrated Apple Juice Imports Dropped Twofold over the Past Decade

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

In 2020, concentrated apple juice imports in the EU dropped twofold after peaking in 2007, from $1.2B to $0.6B. In physical terms, imports fell from 808K tonnes to 463K tonnes over this period. Germany represents the main European importer of concentrated apple juice, accounting for 34% of total import volume in the EU. Austria and the Netherlands, with a further combined 25%-share, follow Germany. From 2007 to 2020, Germany, Austria and the Netherlands recorded a slump in the value of imports.


Concentrated Apple Juice Imports in the EU

Concentrated apple juice imports dropped to 463K tonnes in 2020, reducing by -13.7% compared with 2019 figures. In value terms, concentrated apple juice imports estimated at $584M (IndexBox estimates) in 2020.

In value terms, European concentrated apple juice imports dropped twofold, from $1.2B in 2007 to $0.6B in 2020. In physical terms, imports reduced from 808K tonnes to 463K tonnes during this period.

Germany represented the major importer of concentrated apple juice in the EU, with the volume of imports reaching 158K tonnes, which was approx. 34% of total imports in 2020. Austria (58K tonnes) occupied a 13% share (based on tonnes) of total imports, which put it in second place, followed by the Netherlands (12%), France (11%) and Poland (11%). Ireland (20K tonnes) and Denmark (10K tonnes) followed a long way behind the leaders.

In value terms, Germany ($209M) constitutes the largest market for imported concentrated apple juice in the EU, comprising 36% of total imports. The second position in the ranking was occupied by the Netherlands ($73M), with a 12% share of total imports. It was followed by Austria, with a 12% share.

From 2007 to 2020, the average annual rate of growth in terms of value in Germany totaled -6.9%. The remaining importing countries recorded the following average annual rates of imports growth: the Netherlands (-3.6% per year) and Austria (-8.8% per year).

The concentrated apple juice import price in the EU stood at $1,262 per tonne in 2020, jumping by +19% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was Denmark ($1,397 per tonne), while Ireland ($572 per tonne) was amongst the lowest. From 2007 to 2020, the most notable rate of growth in terms of prices was attained by the Netherlands, while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform 

supply chain

Managing Crisis Within the Food and Beverage Supply Chain

If there’s one thing France hasn’t experienced a shortage of recently, it’s supply chain issues. The pandemic affected food and drink availability in a number of ways, from issues with growth and production to a shortage of delivery vehicles. This has caused a number of issues for food and beverage manufacturers, who are struggling to keep up with demand as a supplier while also experiencing issues in their own supply chains.

The wine shortage in 2021, caused by unseasonably cold weather in key wine-growing regions, has also had a serious impact given France is the second-largest wine producer in the world. The l’Association Nationale des Produits Alimentaires attributed current and future expected shortages to price rises throughout the supply chain.

It’s clear that we’re likely to experience more supply chain issues in the near future. But there are ways food and beverage manufacturers can mitigate these risks. Here, we’ll explore the options.

Protect your existing supplies and production

At a time when food production is affected by issues such as the weather, protecting existing resources is essential. Many food manufacturers have had to recall products because of avoidable issues in the factory. Food manufacturing powerhouse Kraft Heinz made global headlines when it had to recall over 1.2 million containers of cottage cheese because they weren’t stored at the correct temperature.

Equipment maintenance is essential to prevent unnecessary product spoilage and recalls. Many manufacturers will operate on a reactive maintenance model, only maintaining machinery when it fails. Instead, switching to proactive maintenance and checking equipment regularly can help to identify issues before they become a problem. Predictive maintenance technologies are now more commonplace too and will monitor the health of systems automatically.

Food contamination is also an issue that can result in recalls and even affect the health of end consumers. It was reported in 2021 that foodborne illnesses increased between 2018 and 2019, with salmonella topping the list of pathogens. There are a range of processes that can threaten the hygiene of food – from handlers not washing their hands to unsanitary cabling. Many manufacturers use stainless steel goulottes métalliques because they’re easy to clean and decontaminate.

Diversify your suppliers

Access to, and costs of, the raw materials needed to make foodstuff is a key issue right now. it’s essential for manufacturers to diversify their suppliers in the wake of supply chain disruptions. If you rely on one or two suppliers for one key ingredient and they experience issues, you’ll feel this more acutely.

In the wake of COVID-19’s dramatic impact on small businesses, while global behemoths like Amazon increased their profits, we’ve seen a shift towards prioritising local businesses. To encourage this, the government introduced click and collect services for small businesses that didn’t have the resource to set up an ecommerce presence.

The same should go for businesses looking for new suppliers. Small businesses need support, and local suppliers can offer more security to your business because they’re more easily accessible. What’s more, with a renewed focus on sustainability in France in 2022, going local can boost a business’ green credentials.

Support the elimination of food waste

Consumer food waste is a real problem worldwide, but especially in France. Despite a number of legislations in place to prevent food waste, research by Statista has shown that bread is one of the food items French consumers waste the most often. The survey found that 16% of consumers were throwing bread away at least once a week. Given that flour is an ingredient that has soared in price, throwing away its end product is costly.

At a time of food shortages and soaring prices, the nation should be focusing on reducing food waste. France is a global leader in the reduction of business food waste, as well as helping consumers to recycle applicable soiled food. The government and businesses can build on this platform with educational campaigns on reducing the amount of food that is thrown away or recycled.

Food manufacturers can play their part too. Packaging should include information on how best to store the food, as well as tips on making it last longer – such as storing unused bread in the freezer, transferring dried food to airtight glass containers, and putting fresh herbs in water.

France’s supply chain issues are set to continue into 2022. While it’ll be difficult to completely prevent shortages and price fluctuations, there are a number of steps that food manufacturers can take to mitigate these issues and ensure they can continue to provide essential resources for businesses and consumers alike.




Record Production in 2022 to Curb Corn Price Growth

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

In 2022, corn prices are projected to drop by approximately 10% y/y due to an expected all-time record high global production, which is to reach 1.2B tonnes. This forecast is subject to a number of risks, such as volatile fertilizer and energy prices, high freight rates, biofuel policies and weather conditions.

Corn prices are forecast to ease in 2022 due to a sharp increase in global production. The world’s corn output is to soar by 7% y/y to a record 1.2B tonnes with higher crops in the U.S. and South America. Production in Brazil is expected to rise by 31% y/y to 114M tonnes, fully recovering from the last year’s 15%-drop caused by a drought. Argentine farmers are to harvest 54M tonnes of corn, 5% more than a year earlier. U.S. production will grow by 7% y/y to 384M tonnes.

Crop increases are also forecast in China, the E.U., Indonesia, Mexico, Nigeria, South Africa. Significant output growth is projected in Russia and Ukraine, where corn production is to rise by 8% y/y to 15M tonnes and by 39% y/y to 42M tonnes, respectively.

According to World Bank data, the average annual price for U.S. corn (no. 2, yellow, FOB, U.S. Gulf ports) grew by 57% y-o-y to $260 per tonne in 2021. This year, the price is projected to drop by approx. 10% y/y with sufficient supply, but rising fertilizer and energy prices, logistic tensions, changing biofuel policies and weather conditions still pose risks on price stability.

World’s Largest Corn Importers

In 2020, approx. 146M tonnes of maize were imported worldwide, remaining relatively unchanged against the previous year. In value terms, maize imports stood at $35.9B (IndexBox estimates).

Japan (16M tonnes), Viet Nam (12M tonnes), South Korea (12M tonnes), China (11M tonnes), Egypt (8.5M tonnes), Spain (8.1M tonnes), Colombia (6.2M tonnes), Italy (6.1M tonnes), the Netherlands (5.9M tonnes), Taiwan (Chinese) (4.4M tonnes), Malaysia (3.8M tonnes) and Germany (3.8M tonnes) represented the major importer of maize in the world, generating 67% of total volume. Peru (3.8M tonnes) followed a long way behind the leaders.

The most notable growth rate of purchases, amongst the leading importing countries, was attained by China. Its volume of imports grew twofold in 2020.

In value terms, Japan ($3.3B), China ($2.5B) and Viet Nam ($2.4B) appeared to be the countries with the highest levels of purchases in 2020, together comprising 23% of global imports.

In 2020, the average maize import price amounted to $246 per tonne, stabilizing at the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in Germany ($265 per tonne) and the Netherlands ($224 per tonne), while Colombia ($198 per tonne) and Viet Nam ($198 per tonne) were amongst the lowest. The most notable rate of growth in terms of prices was attained by Germany, while the other global leaders experienced more modest paces of growth in 2020.

Source: IndexBox Platform


Surge in Production Costs May Put Pressure on U.S. Food Industry

The food and beverage industry has many growth drivers but also some constraints. As a non-cyclical industry, there is a constant demand for food, which helps drive some growth in the industry.  Profit margins in food production and processing, however, are becoming thinner and are facing some pressure due to the highly competitive nature of this industry. Companies are facing higher commodity price volatility, disease outbreaks and weather events, which may well affect profitability and growth.

While the U.S. food and beverage industry has fared well in comparison to worldwide industry performance during the pandemic, and insolvencies have been lower than expected, due to a surge in U.S. food production costs, companies are seeing tighter margins even as higher prices are being passed on to consumers. The U.S. food and beverage output is still forecast to grow by 1% in 2022 – much less growth than seen in the past several years, however.

The recent wave of the Omicron variant felt around the globe may affect plans for a smooth path in 2022. Many businesses, specifically those in hospitality and food service subsectors, are still struggling to absorb the shocks from the beginning of the pandemic, according to a recent food industry trends report from Atradius. The absence of tourism and travel at the height of the pandemic and new variants of COVID-19, are cause for a slow rebound to the economic recovery in that subsector.

The U.S. is currently seeing the highest food price inflation since 2008 and food prices are expected to continue to rise in 2022, at least until the supply chain issues are resolved. As government subsidies disappear, pressures will mount for the U.S. consumer.


-Beverages: A more positive prognosis this year, with solid growth and sufficient liquidity. Beverages have seen much innovation and product development, adding to its positive performance.

-Meat and Dairy: Remains neutral as higher operating and production costs remain high and impact profit margins.

-Food Services: This sector will be the slowest to rebound from the effects of the pandemic and is much more susceptible to future Covid-19 variants.

Trends for 2022

Food will always be a necessity and consumers enjoy cooking at home, as well as dining at restaurants. Demand will always be high in the food industry, however, it is also highly competitive. Healthy and innovative products are key for food companies and restaurants to remain competitive in this landscape.

During the pandemic, food delivery skyrocketed, and this trend will persist in 2022. Options for plant-based and health-focused alternatives continue to increase as consumers demand more choices in this area. Raw material costs and lack of skilled employees will continue to be an issue for the sector in the coming year.

The credit risk assessment remains fair over the next 12 months (for nonpayment and insolvencies). Businesses that are able to effectively pass on price increases while maintaining enough labor and production capacity to meet ongoing demand will find themselves better situated in the coming months.

Sharon Benfer is a Senior Risk Underwriter at Atradius

meat and poultry

U.S. Meat Prices: Broilers Gain Most, Inflation Accelerates on Rising Feed Costs

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

In January 2022, U.S. meat prices grew tangibly compared to January 2021: beef prices soared by 30%, pork by 11%, turkey gained 18%, and broiler prices skyrocketed by 62%. Prices are set to accelerate due to rising feed costs, spurred by low hay stocks.

According to IndexBox estimates based on USDA data, U.S. wholesale prices for boxed select beef cutouts reached $270 per cwt, rising by 6% from December 2021 to January 2022. Over the same period, pork cutouts prices grew by 3% to $89 per cwt, while broiler prices picked up 7% to $133 per lb. By contrast, turkey prices decreased by 1.5% to $128 per lb.

Compared to January 2021, wholesale beef prices grew by 30% in January 2022. Pork prices rose by 11%, while turkey prices increased by 17%, while broiler prices saw a massive jump over the last year, surging by 62%.

IndexBox forecasts that meat and poultry prices will moderately grow in the coming months due to the expected rise in feed cost. In particular, U.S. hay stocks hit a 10-year low in December 2021, as the production sharply reduced due to continuing drought in the U.S. Western regions.

U.S. Meat and Poultry Exports

Meat and poultry exports from the U.S. amounted to 7.1M tonnes in 2020, increasing by 7.5% on 2019 figures. In value terms, meat and poultry exports expanded slightly to $16.4B (IndexBox estimates).

Mexico (1.5M tonnes), China (1.3M tonnes) and Japan (625K tonnes) were the main destinations of meat and poultry exports from the U.S., together accounting for 49% of total exports.

In value terms, Japan ($3.1B), China ($2.7B) and Mexico ($2.4B) constituted the largest markets for meat and poultry exported from the U.S. worldwide, with a combined 50% share of total exports.

Source: IndexBox Platform


Lower Supply in South America to Raise Soybean Price Forecast in 2022

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

In 2021, the average annual soybean price soared by 43% y/y to $583 per tonne. This year, soybean prices were expected to remain relatively stable, but shortages in supply are likely to spur their growth.

Soybean prices are challenged with supply risks. According to World Bank and USDA data, the average annual soybean price (U.S Gulf Yellow Soybean #2, CIF Rotterdam) amounted to $583 per tonne in 2021, increasing by 43% compared to the previous year’s figure. Despite World Bank predicts the price to pick up 1% y/y to $588 per tonne this year, lower stocks due to poor weather in Brazil, Argentina and other countries may drive price growth.

Global soybean production is expected to reduce slightly by 0.6% y/y to 364M tonnes in 2022 due to expected lower outputs in Brazil, Argentina, Paraguay, China, Canada, Indonesia, Viet Nam and South Africa. Anticipated production increases in the U.S., the EU, Uruguay, India, Russia, Ukraine, and Mexico will not fully offset the drops in other countries.

Despite the harvested area in Brazil, the leading soybean producing country, expanded by 4% over the last year, drought reduced yields sharply. Brazil’s soybean production is expected to fall by 3% y/y to 134M tonnes.

Global Soybean Exports

In 2020, global soya bean exports rose significantly to 173M tonnes, picking up by 11% against 2019. In value terms, supplies soared to $64.1B (IndexBox estimates).

Brazil (83M tonnes) and the U.S. (65M tonnes) dominates the soya bean exports structure, together making up 85% of total exports. Paraguay (6.6M tonnes), Argentina (6.4M tonnes), and Canada (4.4M tonnes) followed a long way behind the leaders.

In value terms, the largest soya bean supplying countries worldwide were Brazil ($28.6B), the U.S. ($25.9B) and Argentina ($2.2B), with a combined 88% share of global exports.

In terms of the main exporting countries, the U.S. (+38% y/y) recorded the highest growth rate concerning the value of exports in 2020, while shipments for the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform