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Accelerated Demand for Healthy Food Emerges As a New Driver for the Global Oats Market

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Archives, Global Trade Daily, Imports/Exports

Accelerated Demand for Healthy Food Emerges As a New Driver for the Global Oats Market

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

The oat market indicated steady growth in 2020. The production and export of oats increased against heightened demand, not only from livestock farmers and producers of animal feed but also from a nascent trend emerging in the food sector: the use of oats as an ingredient in the manufacture of healthy food products.

Key Trends and Insights

IndexBox estimates indicate that oat output reached 23.6M tonnes in 2020. The demand for this cereal crop is currently rising, due to the prominent use of oats in the form of animal feed and the nascent trend emerging in the food sector for oat milk, convenient cereal products and oat-based protein. The demand for oat milk in 2020 was explosive. In the near-term outlook, it is forecast that oat milk should take a firm place on the market among its traditional competitors, such as cow, soya and almond milk.

Despite the logistics difficulties caused by the COVID-19 crisis, global oat exports surged by 7% in 2020 against 2019 figures, reaching 3.3M tonnes. Canada assumed the leading position in terms of global oat exports in 2020, supplying a record 2M tonnes to the global market; approx. half of the Canadian oat yield is sent abroad. Since 2019, exports to Latin America, particularly to Chile, have been increasing. Chile has significantly expanded its oat processing capacity in recent years even though Chilean oat crop yield remained low amid dry weather. In 2020, therefore, Chile was forced to secure an oat import volume that was six times larger than the amount recorded in 2019. Imports to Asian countries have also seen a 50% increase, particularly to China.

The established healthy-eating trend and the latest tendency to position oats as a premium food product should provide an additional incentive for the further development of this market, while the processing of oats for animal feed is set to remain a key driver in terms of demand. Forecasts indicate that the global oat market may reach $8В by 2030.

Global Oat Consumption

The global oat market rose to $7.4B in 2020, increasing by 4% 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). In general, consumption recorded a relatively flat trend pattern.

The countries with the highest volumes of oat consumption in 2020 were Russia (4.3M tonnes), the U.S. (2.3M tonnes) and Canada (2.2M tonnes), together comprising 37% of global consumption. These countries were followed by China, Australia, Finland, the UK, Germany, Poland, Brazil, Spain, Argentina and Sweden, which together accounted for a further 40%.

In value terms, the largest oat markets worldwide were China ($1B), Russia ($912M) and the U.S. ($535M), with a combined 33% share of the global market. These countries were followed by Canada, Argentina, Australia, the UK, Brazil, Germany, Finland, Poland, Spain and Sweden, which together accounted for a further 40%.

In 2020, the highest levels of oat per capita consumption were registered in Finland (192 kg per person), followed by Canada (58 kg per person), Australia (45 kg per person) and Sweden (42 kg per person), while the world average per capita consumption of oat was estimated at 3 kg per person.

Oat Exports by Country

Canada prevails in oat export structure, reaching 2M tonnes, which was approx. 62% of total exports in 2020. Sweden (234K tonnes) took a 7.2% share (based on tonnes) of total exports, which put it in second place, followed by Poland (4.5%). Finland (111K tonnes), Estonia (75K tonnes), Lithuania (69K tonnes), the UK (66K tonnes), France (65K tonnes) and Latvia (58K tonnes) followed a long way behind the leaders.

Exports from Canada increased at an average annual rate of +2.6% from 2012 to 2020. At the same time, Latvia (+34.4%), Lithuania (+22.1%), the UK (+16.4%), Poland (+15.4%), Estonia (+13.1%), France (+12.3%) and Sweden (+1.4%) displayed positive paces of growth. Moreover, Latvia emerged as the fastest-growing exporter exported in the world, with a CAGR of +34.4% from 2012-2020. By contrast, Finland (-13.9%) illustrated a downward trend over the same period.

In value terms, Canada ($467M) remains the largest oat supplier worldwide, comprising 54% of global exports. The second position in the ranking was occupied by Finland ($92M), with an 11% share of global exports. It was followed by Sweden, with a 6% share.

Source: IndexBox AI Platform

food
3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

Top Three Lessons from the Food Transformation Industry

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The food industry has learned more from the pandemic than it bargained for. The pandemic taught us some important lessons about improving quality, paying attention to employee and partner safety, and working regularly and consistently with suppliers. The past 12 months have been focused on response and short-term solutions. Many companies found that their operations and supply chains were not prepared to handle unpredictable peaks, and supplier pools lacked flexibility and diversity. Manual logistics processes similarly did not show the flexibility and speed of results needed, and it was difficult to make the quick decisions needed to keep businesses, customers and employees safe. With uncertainties in the safety of food imports and the functioning of restaurants in 2020, food and beverage companies were suddenly faced with new challenges.

Prevention is better than the cure

As the Covid-19 crisis set, a crisis in the supply chain followed, triggered by people’s responses to the spread of the virus, such as panic buying, which submitted the supply chain to an unusual stress, and eventual disruption. As the situation evolved, it became clear that digital transformation and technology upgrades were actions that could not be delayed if you wanted to make decisions based on actual live data.

In preparing for the future, we shift from “responding to challenges” to proactive action. First and foremost, you need a selection of technology solutions that support scalable and transparent processes. There’s a lot of talk about predictive analytics and supply chain modeling solutions these days, but the first step in this process is always the implementation of operational management systems and data exchange systems.

By standardizing your processes and transforming your technology, you can create a system that lays the groundwork for staying ahead of the competition, improving efficiency and preparing for long-term growth. Here are a few ways to get started:

First: Think about continuous quality control.

Food-related industries need to rely on a dynamic system that shows how your business is performing every day. It’s time to set goals for maintaining continuous quality control with your suppliers, within your own walls and in every part of the supply chain.

The first step is to look at all the software or technology you’re using now to see if you can consolidate or eliminate point solutions or irrelevant applications. Once you have a clear picture, you can ask if your systems can “talk” to each other and connect all decision data into a single source of truth. This helps eliminate siloed data and improves communication.

To give examples based on our company’s portfolio of solutions, the WMS system features automatic tracking of expiration dates, including residual expiration dates based on customer requirements. And personal customer accounts based on Generix Supply Chain Visibility provide data on availability products at various points in the supply chain, both in warehouses and in transit.

Second: Move away from manual processes.

How many times has a document or other data been “lost” in email or file-sharing folders? How many times have you worked extra hours to put together a report manually from multiple spreadsheets?

It’s time to let technology take over most of your administrative and routine work. It’s time for the food industry to stop relying on paper, spreadsheets and other manual tools. Chapman’s Ice Cream was enabled to effectively track their ingredients throughout the supply chain thanks to automation, and thus had the data required to react quickly to changes in consumer preferences and protect food safety. During the early days of the pandemic, John Fleming reports in a recent webinar that Chapman’s used the real-time data provided by their WMS to anticipate the supply of their ingredients and manage their customers’ expectations accordingly.

It’s important to remember that modernization doesn’t exclude people from processes. It is the use of human-centered technology that reduces human error, reduces administrative work and improves results. Certainly, you will have to invest in innovation, but technology creates efficiency and transparency that will ultimately save you time and money. Chapman’s for example, were able to reduce losses by gaining real-time visibility over their inventory.

Generix offers its customers an end-to-end process implementation based on the Generix Supply Chain Hub solution. All modules of the solution are interconnected by an integration bus to which you can connect your accounting system (ERP) and other applications in use.

Third: Upgrade your supplier management practices.

Integrating new suppliers and working with existing ones comes with many challenges. Emails go unanswered, contract renewal dates are often missed. Updating certificates, documents and audit results is a chore, to say the least. In addition, supply disruptions during the pandemic may have prompted you to diversify your supply chain. To summarize, working with suppliers is a lot of communication, paperwork and dates to keep track of. In addition, you are responsible for making sure your suppliers meet government and industry standards.

Using vendor relationship management software makes it easier for all parties, allowing everyone to work faster and more collaboratively. Supplier contacts, certification submittals and audit results are all centralized in one place, allowing you to work quickly and accurately to develop and renew contracts. Automated renewal reminders eliminate routine monitoring or worrying about updating a common Excel file on time.

Our company’s portfolio includes different level solutions to standardize work with suppliers: SCV based supplier accounts for goods and services, EDI based supplier portal solution, Generix Collaborative Replenishment for VMI based work. Our company methodology allows us to develop onboarding packages for fast integration of new vendors.

To Summarize

Modernization of systems makes sense both competitively and financially. However, in my opinion, the most compelling reason to upgrade is the well-being of your employees. In these volatile times, they are doing more with the same or even fewer resources, taking on more workload, which can lead to faster and harder burnout. If you can do more to support your employees and their effectiveness, you will achieve better results in the long run.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This article originally appeared on GenerixGroup.com. Republished with permission.

pig lift
Archives, Global Trade Daily, News

Intradco Global Debuts their Innovative Pig Lift

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This week Intradco Global introduced their brand new innovative Pig Lift, proving that not only can pigs fly, but they can get to their aircraft in style too!

The innovative Intradco Global Pig Lift comprises a custom-converted van that has been modified to enable pigs to transfer from their lorry transport to their crates, at varying heights, without having to navigate any ramps.

Both the front and the back of the Pig Lift can be powered with the touch of the button to ascend and descend, to accurately meet the pigs at the level they are at on their lorry and the level of crate they are walking onto. Without such technology, pigs must walk up and down sometimes steep ramps, which is not only potentially dangerous but can also be stressful for them.

Intradco Global’s Pig Lift puts the pigs’ safety and happiness at the forefront of the process.

The Pig Lift’s debut was on April 27th 2021 at Stansted Airport (STN), where 1,030 purebred registered breeding pigs were its first passengers. They were transferred from multi-storey lorries, that had travelled from Northamptonshire, onto two and three storey crates without the need to use any ramps or any moving parts that had to be manually adjusted.

The pigs then travelled on a Boeing 747-8F aircraft to Chengdu Shuangliu International Airport (CTU) in China, with a short stopover in Kazakhstan to freshen their food and water supplies.

Intradco Global’s Pig Lift is just one example of the company’s commitment to cutting-edge charter equipment with a focus on safety, comfort and animal welfare. Their livestock stalls, equine loading ramp and even their bespoke giraffe crates are just some of the equipment that is widely regarded as ‘best-in-class’, and now the Pig Lift can join that list too.

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Archives, Global Trade Daily, News

Citrus Market Emerges Relatively Unscathed from the Covid Crisis

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

Except for lemons and limes, the production of major types of citrus fruits grew in 2020 thanks to good weather conditions in most producing regions. Citrus fruit exports and demand indicated gains in all the categories considered.

Key Trends and Insights

According to USDA data, global orange production in 2020 increased to 49.4Ðœ tonnes (+3.6Ðœ tonnes y-o-y). As a result of the favourable weather conditions, crop yield figures remained robust in Brazil (16.9Ðœ tonnes, +14% y-o-y) and Mexico (4.0Ðœ tonnes, +58% y-o-y), thereby offsetting the decline in production in Turkey (1.4Ðœ tonnes, -20% y-o-y) and the USA (4Ðœ tonnes, -13% y-o-y).

Mandarine output increased to 33.1М tonnes (+3.7% y-o-y). China, boasting a production volume of 23.1М tonnes (0.5% y-o-y) currently leads the mandarine market.

The grapefruit harvest surged to 6.9М tonnes (+1.4 y-o-y), following the expansion of plantations in China (4.9М tonnes, +2% y-o-y) and Mexico (0.5М tonnes, +7.6% y-o-y).

The global output of lemons and limes fell slightly against the previous year figures, to 8.3М tonnes (-1.6% y-o-y). Declining production in the USA (0.9М tonnes, -5.8% y-o-y) and Argentina (1.0М tonnes, -30%) was partially offset by the strong crop yield in the EU (1.6М, +10.8% y-o-y) and (Mexico 2.9М, +5.6%).

Producers now digitally track the transportation of their goods, to ensure that the supply chain remains transparent and stable. This also improves the delivery process and allows trade disputes to be resolved efficiently, such as identifying which party is responsible for a possible delay in supplies.

In Europe, the Sustainability Initiative Fruit & Vegetables (SIFAV) was launched to ensure that the fruit trade remained sustainable and transparent, intending to make the product 100% safe. The initiative requires fruit suppliers to adhere to environmental and social standards, in terms of potential environmental impact and respecting individual employment rights.

During the pandemic, the demand for fruit juice soared: it is a rich source of Vitamin C, which is believed proved to keep immunity strong. The growth of the fruit juice market represents an additional driver in terms of increasing demand for citrus fruit.

In the period to 2030, the citrus market is forecast to expand to 200Ðœ tonnes (IndexBox estimates), as a result of population growth and increased levels of income. Strong output in 2020 to support producers in terms of revenues, making it feasible to invest in new plantations and improved agricultural techniques.

China to Consume the Most while Russia to Remain the Number One Importer

China (48M tonnes) constituted the country with the largest volume of citrus fruit consumption, comprising approx. 30% of total volume. Moreover, citrus fruit consumption in China exceeded the figures recorded by the second-largest consumer, Brazil (20M tonnes), twofold. The third position in this ranking was occupied by India (14M tonnes), with an 8.8% share.

In value terms, China ($52.7B) led the market, alone. The second position in the ranking was occupied by Brazil ($10B). It was followed by the U.S..

The countries with the highest levels of citrus fruit per capita consumption in 2019 were Brazil (92 kg per person), Argentina (73 kg per person) and Mexico (59 kg per person).

In 2019, the volume of citrus fruits imported worldwide contracted slightly to 17M tonnes, waning by -2.3% against the previous year’s figure. The total import volume increased at an average annual rate of +1.9% from 2012 to 2019.

In value terms, citrus fruit imports dropped slightly to $14.6B in 2019. The total import value increased at an average annual rate of +2.6% from 2012 to 2019.

In 2019, Russia (1,738K tonnes), the U.S. (1,305K tonnes), Germany (1,181K tonnes), the Netherlands (1,104K tonnes), France (1,068K tonnes), the UK (749K tonnes), China (619K tonnes), Saudi Arabia (594K tonnes), Canada (480K tonnes), Poland (475K tonnes), Italy (460K tonnes) and Iraq (445K tonnes) was the main importer of citrus fruits in the world, generating 61% of total import. Ukraine (359K tonnes) followed a long way behind the leaders.

In value terms, Russia ($1.3B), Germany ($1.2B) and the U.S. ($1.2B) appeared to be the countries with the highest levels of imports in 2019, together comprising 25% of global imports. France, the Netherlands, the UK, China, Canada, Poland, Italy, Saudi Arabia, Ukraine and Iraq lagged somewhat behind, together comprising a further 38%.

Source: IndexBox AI Platform

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Archives, Global Trade Daily, Special Reports

5 Industries Worth Investing In

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Starting a new business or investing in a start-up is a hot topic. Everyone gives thought to starting their own firm at some point in time. However, not everyone can give a meaningful reality to this idea.

Finding the right industry to invest in isn’t a walk in the park. Many variables are included in this equation, including your interests and the amount you’re willing to invest. But the biggest deciding factor is, of course, the profitability of the industry you’re planning to select.

Selecting the right industry can make or break your success, and could even change the financial conditions for a long period of your life. A well-put investment in an ideal industry can lead to high profits and a stable financial future.

To get you started, here are 5 profitable industries worth investing in in 2021.

Food industry

No COVID-19 outbreak can disrupt the food industry as food is essential for life. The outbreak indeed negatively affected the on-table service of restaurants, but many of them are still operational for takeaway. Moreover, food manufacturing firms like cereals, grains, and beverages are also operational. Furthermore, services associated with food, like food packing, are also still going strong despite the circumstances.

Needless to say, the food industry is one of the safest industries to invest in in the 21st century. As people have gone more health-conscious since the virus outbreak, it’d be a great idea to invest in food products revolving around providing a healthy lifestyle.

Textile industry

Just like food, clothing is a basic essential for human life that can’t be neglected in any circumstance. Fashion trends come and go, but everyone needs some type of clothing to cover themselves up.

The textile industry is huge. Some might say it’s over-saturated, but unlike many other industries which follow the if-it-ain’t-broke-don’t-fix-it rule, the textile industry sees alterations every once in a while due to various trends.

FMCG industry

FMCG (fast-moving consumer goods) industry includes all the daily-use products people need to keep their lives going. A few examples of such products are detergents, soaps, cosmetics, dental care, paper, and batteries. Just like the case with food and textile, human life can’t go on normally without the FMCG industry.

Investing in this industry is a safe bet today. It must be noted that the businesses in this industry fight through very tough competition, that’s why the profit margin is low. However, as these products are consumed in massive amounts regularly, it kind of makes up for the small profit margins.

Technology industry

For more than two decades, computers and IT have shaped the future of the world’s economy and given new meaning to business operations. Today, almost everyone is dependent on some piece of technology for their life activities.

Consumers, as well as businesses, are looking for new and improved technological advancements to be more productive. IT services and computer support are in high demand. If you have a techy background and are aware of the know-how of this sector, the technology industry could be the best industry for you to invest in.

This industry is massive and has tons of options for you to explore. No matter how advanced today’s technology is, there’s always room to improve and expand. Explore the options and look for bright ideas that could be the next innovative solution to a daily problem.

Marijuana industry

Gone are the days when marijuana was only a means of illegal recreational activities. Today, marijuana is creeping out of the shadows to become a major legal pharmaceutical giant. It’s developed into a billion-dollar industry that keeps getting more and more legal authorizations from governments around the globe and is constantly growing.

If you’re eager to learn more about this industry,  getting in touch with a marijuana consulting firm would be your best bet. Moreover, marijuana financing companies provide loans and financial support to new businesses stepping into this industry,

Final word

Researching and choosing the right industry is crucial to make your investment worthwhile. While many smaller industries keep ascending and descending in the priority list for new investors, the above-mentioned industries are arguably the safest options today.

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Archives, Global Trade Daily, News

Global Corn Market Maintains Steady Growth Despite Lower Bioethanol Demand

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Driven by rising demand from the food industry and favorable weather, global corn production increased significantly in 2020. The rise in prices made the raw corn-based production of bioethanol unprofitable amid the low cost of traditional fuels due to the pandemic, resulting in the closure of some distilleries. In the future, the growing demand for alternative fuels is expected to offset this shift and promote the corn market.

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.

Key Trends and Insights

Driven by rising demand from the food industry and favorable weather, global corn production grew by 2% to 1,435М tonnes in 2020 (IndexBox estimates). Brazil (+7M tonnes), South Africa (+1.2M tonnes) and India (+1.2M) tonnes indicated the most substantial increase in output.

Global corn exports saw a 6% rise, to 168.2Ðœ tonnes. In 2020, global corn prices increased substantially, from $170 per tonne in March 2020 to $240-280 per tonne in March 2021. Argentina retained the lowest competitive export prices in 2020 ($239 per tonne, FOB).

High corn prices resulted in lower competitiveness of corn bioethanol, which aggravated the pandemic-related drop in demand for biofuels. This led to bioethanol plants being forced out of production: according to the Renewable Fuels Association (RFA), approx. 20 out of the 200 ethanol production facilities in the U.S. remain idle; a further 20 have cut production. The volumes of corn intended for biofuel production were redirected to growing exports.

In the period to 2030, the global corn market is set to expand to 1.978M tonnes. Increasing corn consumption in the food sector driven by steady population growth remains the key development factor in terms of market expansion. The market for alternative fuels may yet see significant development, thereby increasing the demand for corn, should environmental standards become more stringent and a carbon tax on greenhouse emissions be imposed.

China, the U.S. and Brazil Consume more than Half of Global Corn Production

The countries with the highest volumes of maize consumption in 2019 were China (523M tonnes), the U.S. (322M tonnes) and Brazil (60M tonnes), with a combined 64% share of global consumption. Mexico, Indonesia, Argentina and India lagged somewhat behind, together accounting for a further 9.2%.

In value terms, the largest maize markets worldwide were China ($170.8B), the U.S. ($106B) and Mexico ($22.5B), with a combined 60% share of the global market. Indonesia, Brazil, India and Argentina lagged somewhat behind, together comprising a further 8.2%.

The countries with the highest levels of maize per capita consumption in 2019 were the U.S. (978 kg per person), Argentina (619 kg per person) and China (359 kg per person).

Brazil Leads in Exports

Brazil (43M tonnes), Argentina (29M tonnes), Ukraine (27M tonnes) and the U.S. (26M tonnes) represented roughly 79% of total exports of maize in 2019. The following exporters – Romania (4.6M tonnes), France (3.7M tonnes), Russia (3.1M tonnes), Hungary (3M tonnes), Paraguay (2.7M tonnes) and Bulgaria (2.6M tonnes) – together made up 12% of total exports.

In value terms, the U.S. ($8.9B), Brazil ($7.3B) and Argentina ($6B) were the countries with the highest levels of exports in 2019, together comprising 62% of global exports. These countries were followed by Ukraine, France, Romania, Hungary, Russia, Bulgaria and Paraguay, which together accounted for a further 28%.

In 2019, the average maize export price amounted to $229 per tonne, approximately reflecting the previous year. Overall, the export price, however, showed a pronounced contraction. The pace of growth was the most pronounced in 2017 an increase of 13% year-to-year. The global export price peaked at $301 per tonne in 2013; however, from 2014 to 2019, export prices stood at a somewhat lower figure.

Source: IndexBox AI Platform

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Archives, Global Trade Daily, Imports/Exports

Robust Increase in Chinese Exports Buoys Global Grape Market

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

Increased grape production in China buoyed the global market against a fall in the grape crop in India, the EU and Russia, which enables the global production in 2020 to remain consistent with 2019 data. The export potential of Chinese and Australian grapes has improved due to the progress achieved in cultivation methods and the use of particularly fertile varieties of grape. 

Key Trends and Insights

Global grape production stood at 76.6М tonnes (IndexBox estimates) in 2020, remaining consistent with 2019 figures. According to USDA data, poor weather conditions caused a decline in production in India (125К tonnes), Turkey (-50К tonnes), the EU (-170К tonnes), and Russia (-23К tonnes). The fall in production seen in these countries was offset by increased grape output in China (+400К tonnes), enabling a further surge in exports. The hot summer of 2020 also secured a stable grape harvest in the USA (+114К tonnes), Egypt (+35К tonnes) and Peru (+12К tonnes). Production remained unchanged against 2019 in Brazil, Uzbekistan and Chili.

China has indicated a pronounced growth in grape exports in recent years, largely as a result of the advances in cultivation technology and improvements in product quality. From 2014 to 2020, Chinese grape exports surged threefold: from 126К tonnes to 420К tonnes . Australian exports almost doubled over the same period: from 86.4К tonnes to 163К tonnes.

Expanding demand from the EU and Asian markets, against enhanced incomes and a rise in population, are set to drive the further growth of the global grape market. EU imports continued to increase to 1654К tonnes in 2020, despite the pandemic.

The second half of 2020 signaled a recovery in demand from the wine industry, as the quarantine measures were more or less lifted. The wine market expansion, driven by e-commerce development and high investments, promises strong demand for grapes in the coming years.

China to Lead in the Grape Consumption while the U.S. to Remain the Key Exporter

The countries with the highest volumes of grape consumption in 2019 were China (14M tonnes), Italy (7.5M tonnes) and the U.S. (6.5M tonnes), together comprising 37% of global consumption.

From 2012 to 2019, the biggest increases were in China, while grape consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest grape markets worldwide were China ($22.1B), the U.S. ($14.8B) and France ($13B), with a combined 37% share of the global market.

The countries with the highest levels of grape per capita consumption in 2019 were Italy (126 kg per person), Spain (120 kg per person) and Chile (104 kg per person).

In 2019, the U.S. (660K tonnes), followed by the Netherlands (376K tonnes), Germany (322K tonnes), the UK (275K tonnes), Russia (272K tonnes), Hong Kong SAR (240K tonnes) and China (239K tonnes) represented the key importers of grapes, together committing 53% of total imports. The following importers – Canada (187K tonnes), Thailand (130K tonnes), Poland (117K tonnes), France (116K tonnes), Indonesia (114K tonnes) and Pakistan (98K tonnes) – together made up 17% of total imports.

In value terms, the largest grape importing markets worldwide were the U.S. ($1.3B), Germany ($682M) and the Netherlands ($643M), together accounting for 30% of global imports. China, the UK, Hong Kong SAR, Canada, Thailand, Indonesia, Russia, France, Poland and Pakistan lagged somewhat behind, together accounting for a further 40%.

The average grape import price stood at $1,911 per tonne in 2019, standing approx. at the previous year. In general, the import price, however, recorded a relatively flat trend pattern. The growth pace was the most rapid in 2017 an increase of 4.3% against the previous year. Over the period under review, average import prices hit record highs at $2,048 per tonne in 2013; however, from 2014 to 2019, import prices remained at a lower figure.

Source: IndexBox AI Platform

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Archives, Global Trade Daily, News

The Global Cocoa Market Struggles for Restoring Plummeted Demand

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

The closure of the HoReCa segment caused the demand for cocoa beans to collapse in 2020, while global production declined only slightly. This led to a surge in unsold cocoa bean stocks in exporter-countries. EU chocolate producers are now trying to enlist a range of measures to ensure stable demand and secure supply chains on the cocoa bean market. 

Key Trends and Insights

The pandemic weakened demand for chocolate and cocoa beans. Despite this, global cocoa bean output experienced only a marginal decline. Data from The International Cocoa Organization (ICCO) indicates that cocoa bean production in Africa fell by 2.4%, in Asia and Australasia, by 7.3%, but in America, production saw an increase of 2.7%. The global cocoa bean grindings production fell by 4,784 thousand tonnes in 2019 to 4,631 thousand tonnes in 2020.

As of May 2020, global cocoa bean imports slumped sharply and import figures remained low until the end of the 2020 period (IndexBox estimates). In Europe, over the period from March to December 2020, cocoa, chocolate and sugar confectionery production featured a decline against the figures of 2019. The biggest drop was in April 2020 when production fell by 13.9% as compared to the same period in the previous year. American confectionery market, however, remained relatively stable. Côte d’Ivoire, a key exporter, was particularly affected by the slump in demand: huge cocoa bean stocks have been accumulating in farm warehousing facilities and export terminals since December 2020.

The overproduction resulted in a slump in prices. The ICCO daily price for cocoa beans (the average of the quotations of the nearest three active futures trading months on ICE Futures Europe (London) and ICE Futures US (New York) at the time of London close) peaked at $2,716 per tonne in February 2020; by March 2021, the price had fallen to $2,462 per tonne. The price hike seriously affected the cocoa bean growers in Côte d’Ivoire and other major cocoa bean producing countries, threatening their income and the potential to invest in expanding production.

The re-opening of the HoReCa segment following the lifting of the coronavirus restrictions and a recovery in the demand are both set to be key drivers of the cocoa bean market recovery. The EU investment (25 million Euros) into cocoa bean production in Côte d’Ivoire, Ghana and Cameroon, which together assume 70% of global output, should improve supply chain stability, at least for particular involved companies.

The Netherlands, Germany, Switzerland and Belgium have all signed a Memorandum of Understanding (MOU) in a bid to ensure stable cocoa bean demand to 2025; through cooperation under the Memorandum (MOU), the objective remains improved market transparency, involvement in multinational companies, sustainable communication, improved working conditions for farmers and measures to protect the environment near the farms.

Cote d’Ivoire to Remain the Key Manufacture and Exporter of Cocoa Beans

In 2019, after two years of growth, there was a decline in the production of cocoa beans, when its volume decreased by -3.8% to 5.7M tonnes. The total output volume increased at an average annual rate of +2.6% over the period from 2012 to 2019 (IndexBox estimates).

In value terms, cocoa bean production contracted slightly to $14.2B in 2019 estimated at export prices. The total output value increased at an average annual rate of +1.9% from 2012 to 2019.

Cote d’Ivoire (2.2M tonnes) remains the largest cocoa bean producing country worldwide, accounting for 38% of the total volume. Moreover, cocoa bean production in Cote d’Ivoire exceeded the figures recorded by the second-largest producer, Ghana (812K tonnes), threefold. The third position in this ranking was occupied by Indonesia (784K tonnes), with a 14% share.

In Cote d’Ivoire, cocoa bean production expanded at an average annual rate of +5.6% over the period from 2012-2019. The remaining producing countries recorded the following average annual rates of production growth: Ghana (-1.1% per year) and Indonesia (+0.8% per year).

Cote d’Ivoire was the major exporter of cocoa beans in the world, with the volume of exports reaching 1.6M tonnes, which was near 40% of total exports in 2019. Ghana (668K tonnes) occupied a 16% share (based on tonnes) of total exports, which put it in second place, followed by Nigeria (7.8%), Cameroon (7.7%), Ecuador (6.6%) and Belgium (4.9%). The Netherlands (168K tonnes) followed a long way behind the leaders.

Exports from Cote d’Ivoire increased at an average annual rate of +7.0% from 2012 to 2019. At the same time, Ecuador (+9.1%), Cameroon (+8.8%), Belgium (+8.2%), Nigeria (+6.3%), the Netherlands (+2.4%) and Ghana (+1.9%) displayed positive paces of growth. Moreover, Ecuador emerged as the fastest-growing exporter exported in the world, with a CAGR of +9.1% from 2012-2019. Cote d’Ivoire (+5.8 p.p.), Cameroon (+1.9 p.p.) and Ecuador (+1.7 p.p.) significantly strengthened its position in terms of the global exports, while Ghana saw its share reduced by -3.3% from 2012 to 2019, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Cote d’Ivoire ($3.6B), Ghana ($1.9B) and Nigeria ($730M) were the countries with the highest levels of exports in 2019, with a combined 63% share of global exports. These countries were followed by Cameroon, Ecuador, Belgium and the Netherlands, which together accounted for a further 23% (IndexBox estimates).

Source: IndexBox AI Platform

crab meat
Archives, Global Trade Daily, News

The Frozen Crab and Crab Meat Market Survives Pandemic Losses, With E-Commerce Promising a Recovery

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

In 2020, the production and export of frozen crab and crab meat declined worldwide; the fall in sales incurred by the closure of the HoReCa segment, however, was offset by the surge in demand from retail consumers. Global imports fell against previous year figures, but demand from the USA, a major importer, remained robust.

Key Trends and Insights

Global imports of crab meat (including frozen) fell by 14.7% in the first half of 2020 against the same period of 2019 (IndexBox estimates), illustrating a decrease in demand during the pandemic. The growth in e-commerce in the retail sector, combined with home delivery, helped to partly offset the slump in HoReCa.

The USA remains a key importing market. In 2020, crab imports (live and frozen) to the country fell marginally by -1.4% against previous year indices to 76 thousand tonnes, buoyed by a sharp increase in supplies from Canada.

In 2020, Russia, a major global exporter, supplied crabs and crab meat abroad for approx. 70 thousand tonnes, which was 12% less than in 2019. The Republic of Korea remains a key export destination for Russian crab products, absorbing over 60% (in physical terms) of Russian frozen crab exports.

In the future term to 2030, the global crab meat market is projected to expand to 483 thousand tonnes (IndexBox estimates). Key market drivers include a rising population and higher levels of income, rapid urbanization, and increasing demand from retail consumers. The product’s extensive storage life, should Covid restrictions and the ensuing disruption to delivery times return, also remains a key factor.

China to Remain the Largest Consumer of Crabs while Russia to Dominate the Export Market

The country with the largest volume of crab and crab meat consumption was China (1.8M tonnes), accounting for 61% of the total volume. Moreover, crab and crab meat consumption in China exceeded the figures recorded by the second-largest consumer, Indonesia (255K tonnes), sevenfold. The third position in this ranking was occupied by the U.S. (176K tonnes), with a 6% share (IndexBox estimates).

In China, crab and crab meat consumption increased at an average annual rate of +1.5% over the period from 2012-2019. In the other countries, the average annual rates were as follows: Indonesia (+19.5% per year) and the U.S. (-1.3% per year).

In value terms, China ($15.4B) led the market, alone. The second position in the ranking was occupied by the U.S. ($2.1B). It was followed by Indonesia.

The countries with the highest levels of crab and crab meat per capita consumption in 2019 were South Korea (1,904 kg per 1000 persons), China (1,230 kg per 1000 persons) and Indonesia (943 kg per 1000 persons).

In 2019, Russia (82K tonnes) and Canada (63K tonnes) represented the key exporters of crabs and crab meat around the world, together resulting at approx. 39% of total exports. China (40K tonnes) occupied the next position in the ranking, followed by the UK (20K tonnes) and Indonesia (18K tonnes). All these countries together occupied near 21% share of total exports. The U.S. (17K tonnes), Myanmar (16K tonnes), Bangladesh (13K tonnes), India (11K tonnes), Ireland (9.9K tonnes), Bahrain (9.4K tonnes), Norway (7.7K tonnes) and Pakistan (7.1K tonnes) followed a long way behind the leaders.

From 2012 to 2019, the biggest increases were in Norway, while shipments for the other global leaders experienced more modest paces of growth.

In value terms, Russia ($1.5B), Canada ($1.1B) and China ($337M) were the countries with the highest levels of exports in 2019, with a combined 65% share of global exports.

The average crab and crab meat export price stood at $12,003 per tonne in 2019, growing by 2.5% against the previous year. Over the last seven years, it increased at an average annual rate of +4.7%. The pace of growth appeared the most rapid in 2017 when the average export price increased by 12% y-o-y. The global export price peaked in 2019 and is expected to retain growth in years to come.

Source: IndexBox AI Platform

food and beverage
Archives, Global Logistics, Global Trade Daily, Warehousing

What’s Keeping Food and Beverage Companies Up at Night in 2021?

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Here are the top issues that most food and beverage companies are trying to solve right now and some tips on how to work through these pressing problems. 

 

Climbing mountains is nothing new for food and beverage companies that, like most organizations, face a steady stream of new challenges in the course of business. Whether they’re complying with new regulations, adapting to changing consumer demands, or strengthening their supply chains against disruption, food and beverage companies have to stay on their toes or risk falling behind the curve.

 

Right now, some of the key issues that these organizations are facing include:

 

-Changes in consumer demand, both in terms of the volume and variety of manufactured goods consumed.

 

-A higher volume of direct-to-consumer (DTC) transactions. With more consumers shopping from home, setting up and fulfilling these distribution networks have become full-time jobs for food and foodservice organizations.

 

-Disruption of transportation networks needed to be able to deliver these DTC orders (e.g., truck driver shortages, ocean container shortages, transportation capacity constraints, etc.).

 

-Workforce presence, composition, and location. Despite the current economic situation, available labor is still difficult to find in certain areas.

 

-The uncertainties of virus transmission have led many countries to adopt food protectionist policies, DHL points out in a recent report, which has disrupted end-to-end supply chain continuity.

 

-This, in turn, has increased the global price of food and beverage products and has made the global food supply more inaccessible.

 

-Reductions in passenger air travel have impacted air freight considerably, the method by which most perishable products are transported. (According to DHL, air freight capacity declined over 80% on routes between Europe and Latin America in 2020.)

 

-Workforce health and safety—an issue that was exacerbated by the global pandemic. For example, companies have had to rethink their plant floor design in order to accommodate social distancing guidelines. Doug Mefford, our product manager has recently explained why using a WMS can result in an enhanced work environment for the warehouse employees all while reducing risks and potential errors in an interview with Food Logistics.

 

-Raw material and component inventory shortages affecting production. As supply chain shortages persist, everything from steel to resin to electrical components remain difficult to source in the current market.

 

-Inventory shortages that impact manufacturing and distribution companies’ sales.

 

The list of challenges doesn’t end there, but these points paint a picture of an industry that’s still shaking off the impacts of the global pandemic while also looking for ways to work smarter, better, and faster in 2021 (and beyond).

 

Long-Term Resiliency Wanted

 

As the coronavirus outbreak spread, unprecedented challenges have surfaced for food and beverage companies all over the world. Extraordinary measures have been taken to keep the food supply chain safe, efficient, and moving. Industry leaders with agile solutions in place have been able to mitigate some of the fallout from the pandemic, while others are still learning how to cope with the new realities of the crisis.

 

Regardless of where they land on the technology adoption curve, companies need to be able to quickly identify, configure/develop and adopt new capabilities that ensure long-term organizational resiliency.

 

“COVID-19 has impacted the entire food and beverage (F&B) supply chain, from farm field to consumer,” DHL writes in Food Logistics. “It has upended the sector’s operational capacity in its entirety, including production, processing, packaging, and distribution.” COVID also caused a shift toward a greater need for efficiency in production amid the long-term realities of staff capacity shortages and an unpredictable regulatory environment, the freight provider points out.

 

Three Steps to Take Now

 

The good news is that the global food supply chain nearly always shows resilience in the face of unanticipated challenges. Here are three steps that all food sector companies can take now to make their supply chains more resilient and responsible:

 

Focus on go-to-market versatility. Existing go-to-market channels like bars and restaurants could take months to fully recover from COVID-19. “Companies, therefore, need to invest in omnichannel capabilities, especially focusing on online/digital solutions,” Deloitte explains. “This should also include product [interchangeability] across channels.”

 

Step up end-to-end supply chain management. Work with a wider pool of suppliers, including regional ones, and keep larger strategic stocks. A broad product range is more expensive to maintain, but spreads risks, Deloitte acknowledges. “An alternative is to simplify recipes and/or remove problem products from the portfolio, resulting in a leaner, more manageable product range, less risk, and lower costs.”

 

Leverage technology ecosystems. Good supply chain visibility starts with a robust technology hub that includes a warehouse management system (WMS), transportation management system (TMS), yard management system (YMS), and order management system (OMS). It also includes Industry 4.0 technologies that provide advanced capabilities. “Digital supply networks are going to make businesses less vulnerable in the longer term,” Deloitte says. “Robots, for instance, reduce dependence on migrant labor, while track-and-trace solutions help businesses zoom in on supply chain bottlenecks.”

 

With the global pandemic still in full effect, companies across the food supply chain must plan for the continuing effects of the outbreak on different areas of supply, demand, and the overall economy. Using the strategies outlined above, companies can work to improve their supply chain resilience and visibility in a way that addresses the rigors of the current operating environment while also helping organizations prepare for the future. Generix Group North America has recently hosted a webinar Post Pandemic Impacts on the Food & Beverage Business featuring a guest speaker from Chapman’s Ice Cream, John Fleming. You can listen to the recording here and plan how to address supply chain resilience within your own organization.

 

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. We invite you to contact us to learn more.

 

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This article originally appeared on GenerixGroup.com. Republished with permission.