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Challenges to Supply Chain in Grain Markets

grain market

Challenges to Supply Chain in Grain Markets

There is a growing concern among grain companies on the storage and transportation of huge harvests of grains. Australia, Canada, Ukraine, Russia, the United States, and Argentina are being very competitive in the grains market right now.

Oversupply tends to tighten the margins which reduce grain prices. It is a challenge for grain companies to cost-effectively store and move grains. You must maximize throughput at grain terminals which helps you to stay competitive in the global market. But there could be regional factors that affect the cost of grain production and logistics.

For instance, grain companies in Western Australia have traditionally suffered higher costs of grain production, as they must rely on imports of farm inputs and machinery. Similarly, companies in South Australia are also grappling with high (and often non-transparent) grain supply chain costs, which has prompted the local government to intervene and investigate. In fact, the Australian Export Grain Innovation Center estimates that supply chain costs make up almost 30% of the cost of grain production, storage, and transportation.

These regional factors are not exclusive to Australia. In Western Canada, for instance, bottlenecks in railway networks often delay grain deliveries by several months, and here too, the government has intervened with policy changes. In Ukraine, grain logistics costs are 40% to 50% higher as compared to other major grain-producing countries. Adding to the woes of grain handling companies are unforeseen events that can further choke the supply chain. For example, extended disputes between train drivers and their employers, disrupting supply chains in many countries.

Grain marketing companies have responded to these challenges by consolidating grain receival sites and trying to push more grain through a limited number of larger terminals. This helps them cut costs as they now must support fewer silos. However, costs saved here have not vanished from the supply chain. The cost pressures have merely shifted upstream as grain producers are now forced to transport stock over longer distances to reach those terminals and/or invest in on-farm storage. In fact, on-farm storage has increased steadily over the last few years in regions such as the USA, Australia, and Canada.

Investments in on-farm storage are enabling producers to hold on to their stocks instead of selling at lower prices in an oversupplied environment, thus shifting cost pressures right back down the supply chain towards the grain marketers. Some grain marketers are trying to break out of this vicious cycle by plowing back some of the money saved from consolidating grain terminals. For instance, GrainCorp started an initiative called “Project Regeneration” where they invested AUD 200mn into the grain supply chain to cut transportation costs for producers in the hopes of securing higher grain prices in the long run.

Steps to mitigate challenging times

In summary, it is evident that grain companies are staring at challenging times ahead, with regional factors outside their control expected to create more pressure in an already tough environment of low grain prices. Grain companies need to be ready to tackle these challenges and remove inefficiencies in their supply chains. However, the first step towards removing inefficiencies is to find potential areas of bottlenecks, and for that, one must have real-time visibility over grain supply chains.

Grain companies need to have software solutions that can record the origin of grains, store information about contracts, and track grain shipments – including quality parameters as the grain moves across the supply chain. Software should enable real-time visibility and help grain companies check the health of their supply chain in real-time, adjust/regrade stock levels as needed, optimize equipment paths within grain terminals, and increase efficiency and throughput.

Eka Software Solutions is a global leader in providing digital commodity management solutions for the agriculture industry, driven by cloud, blockchain, machine learning, and analytics.

To talk to Eka experts please write to info@eka1.com

freshwater fish

The European Frozen Freshwater Fish Market Decreased Slightly to $0.7 Billion

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

In 2019, after three years of growth, there was a decline in the EU frozen freshwater fish market, when its value decreased by -2.4% to $732M. In general, consumption saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 with an increase of 4.8% year-to-year. Over the period under review, the market hit record highs at $750M in 2018 and then declined slightly in the following year.

Consumption by Country

The countries with the highest volumes of frozen freshwater fish consumption in 2019 were Germany (49K tonnes), the UK (40K tonnes), and Spain (23K tonnes), together accounting for 48% of total consumption (IndexBox estimates). France, the Netherlands, Italy, Belgium, Poland, Romania, Portugal, the Czech Republic, and Greece lagged somewhat behind, together comprising a further 35%.

From 2013 to 2019, the most notable rate of growth in terms of frozen freshwater fish consumption, amongst the leading consuming countries, was attained by Poland, while frozen freshwater fish consumption for the other leaders experienced more modest paces of growth.

In value terms, the UK ($146M), Germany ($122M), and Spain ($84M) constituted the countries with the highest levels of market value in 2019, with a combined 48% share of the total market. These countries were followed by France, Italy, the Netherlands, Portugal, the Czech Republic, Belgium, Romania, Poland, and Greece, which together accounted for a further 36%.

The countries with the highest levels of frozen freshwater fish per capita consumption in 2019 were Belgium (755 kg per 1000 persons), the Netherlands (672 kg per 1000 persons), and Portugal (615 kg per 1000 persons).

Production in the EU

In 2019, frozen freshwater fish production in the European Union contracted to 164K tonnes, reducing by -11.4% on the previous year. The total output volume increased at an average annual rate of +1.3% from 2013 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2018 with an increase of 10% against the previous year. As a result, production reached a peak volume of 185K tonnes and then fell in the following year.

Production by Country

The country with the largest volume of frozen freshwater fish production was Germany (52K tonnes), comprising approx. 32% of the total volume. Moreover, frozen freshwater fish production in Germany exceeded the figures recorded by the second-largest producer, Spain (23K tonnes), twofold. The third position in this ranking was occupied by the UK (21K tonnes), with a 13% share.

In Germany, frozen freshwater fish production expanded at an average annual rate of +1.2% over the period from 2013-2019. The remaining producing countries recorded the following average annual rates of production growth: Spain (-2.6% per year) and the UK (+1.3% per year).

Exports in the EU

In 2019, the amount of frozen whole freshwater fish exported in the European Union declined to 101K tonnes, reducing by -13.1% compared with the year before. In general, exports recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 when exports increased by 8.1% y-o-y. Over the period under review, exports hit record highs at 117K tonnes in 2016; however, from 2017 to 2019, exports stood at a somewhat lower figure. In value terms, frozen freshwater fish exports reduced to $291M (IndexBox estimates) in 2019.

Exports by Country

The Netherlands (25K tonnes) and Spain (24K tonnes) represented roughly 49% of the total exports of frozen whole freshwater fish in 2019. Portugal (15K tonnes) took a 15% share (based on tonnes) of total exports, which put it in second place, followed by Germany (8.6%), Belgium (6.5%), and Estonia (5.1%). Latvia (3K tonnes) and Poland (2.4K tonnes) followed a long way behind the leaders.

From 2013 to 2019, the biggest increases were in Latvia, while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest frozen freshwater fish supplying countries in the European Union were the Netherlands ($89M), Spain ($65M), and Portugal ($48M), with a combined 69% share of total exports. Germany, Belgium, Estonia, Poland, and Latvia lagged somewhat behind, together comprising a further 17%.

Latvia recorded the highest growth rate of the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The frozen freshwater fish export price in the European Union stood at $2,893 per tonne in 2019, remaining constant against the previous year. Over the last six-year period, it increased at an average annual rate of +1.6%. The pace of growth was the most pronounced in 2018 when the export price increased by 17% y-o-y. As a result, export price attained the peak level of $2,916 per tonne, leveling off in the following year.

There were significant differences in the average prices amongst the major exporting countries. In 2019, the country with the highest price was the Netherlands ($3,578 per tonne), while Latvia ($916 per tonne) was amongst the lowest.

From 2013 to 2019, the most notable rate of growth in terms of prices was attained by the Netherlands, while the other leaders experienced mixed trends in the export price figures.

Source: IndexBox AI Platform

USITC

USITC To Begin Monitoring Imports of Strawberries and Bell Peppers at USTR’s Request

The U.S. International Trade Commission (“USITC”) announced on December 2, 2020, that it would begin monitoring imports of bell peppers and strawberries pursuant to Section 332 of the Tariff Act of 1930, following a request from the United States Trade Representative (“USTR”) Robert E. Lighthizer. The USITC will monitor imports of the subject products for a 90-day period and will have three weeks to prepare and submit a recommendation to the president with the appropriate trade remedies.

Interested parties may submit written submissions for the record no later than January 15, 2021. The USITC stated that at this time it is seeking submissions to enable its monitoring activities only. Specifically, the USITC is interested in information concerning imports, principal source countries, and the potential impact of the imports on the domestic industry.

Additionally, the USITC expressed its interest in information regarding the condition of the domestic industry, production, employment, profits and losses, and other factors outlined in section 202(c) of the Trade Act. To the extent practical, data and information submitted should include the period 2016-2020 and any subsequent period.

The products in question fall under the following categories of the Harmonized Tariff Schedule of the United States:

-Fresh or chilled strawberries: 0810.10;

-Fresh or chilled bell peppers:

-0709.60.4015,

-0709.60.4025,

-0709.60.4065,

-and 0709.60.4085

_________________________________________________________________

Nithya Nagarajan is a Washington-based partner with the law firm Husch Blackwell LLP. She practices in the International Trade & Supply Chain group of the firm’s Technology, Manufacturing & Transportation industry team.

Turner Kim is an Assistant Trade Analyst in Husch Blackwell LLP’s Washington, D.C. office.

Camron Greer is an Assistant Trade Analyst in Husch Blackwell LLP’s Washington D.C. office.

smoked salmon

The European Smoked Salmon Market to Retain Gradual Growth Despite the Pandemic

IndexBox has just published a new report: ‘EU – Smoked Pacific, Atlantic And Danube Salmon – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The size of the smoked salmon market in the European Union contracted slightly to $4.4B in 2019 (IndexBox estimates), approximately equating to the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

The countries with the highest volumes of smoked salmon consumption in 2019 were Germany (39K tonnes), France (26K tonnes) and the UK (24K tonnes), together comprising 38% of total consumption. Italy, the Netherlands, Spain, Poland, Belgium, Romania, Denmark, the Czech Republic, Greece, and Portugal lagged somewhat behind, together comprising a further 45%.

From 2012 to 2019, the most notable rate of growth in terms of smoked salmon consumption, amongst the leading consuming countries, was attained by the UK, while smoked salmon consumption in France showed a mild contraction.

Moreover, exports in France are also decreasing for the second consecutive year. This is likely to be connected with the rising prices which make the product less competitive. Moreover, the volume of production is also decreasing, but the imports are rising, enabling the consumption volume to remain relatively stable. This makes a sign that cheaper imports are currently pressuring domestic production in France. Producers from Poland, Belgium and the UK, which are the largest smoked salmon supplying countries to France with rapidly growing volumes of supplies, seem to benefit from this trend.

Smoked salmon constitutes one of the popular fish products widely used for direct consumption and the production of bakery, pizza, snacks, and Japanese dishes. Since the use of smoked salmon is widely established, no sharp shift in consumption is currently expected. Population growth and rising incomes, which, in a broader context, reflect the overall GDP growth, are to remain key fundamentals behind the demand for smoked salmon.

In early 2020, however, the global economy entered a period of crisis caused by the outbreak of the COVID-19 pandemic. In order to battle the spread of the virus, most countries in the world implemented quarantine measures that put on halt production and transport activity, which undermined economic growth heavily throughout the world. Large-scale quarantine measures constitute the key disruptive factor, due to which production dropped across almost every industry and entire economic sectors are closed, such as catering, non-food retail, and personal services.

The shutdown of the HoReCa sector led to a significant decrease in the production of bakery and Japanese fish dishes, which overall depresses the demand for smoked salmon. Moreover, in the context of falling incomes, consumers primarily tend to exclude non-staple goods from purchases, which include smoked salmon. Thus, a sharp drop in household incomes is a powerful factor that will restrain the smoked salmon market in the medium term.

On the other hand, given the reduction in the number of visits to shops and malls, consumers started to cook more at home. This promotes the demand for food home cooking ingredients, as well as for ready-to-eat products. Smoked salmon fits those requirements as it is typically sold ready for consumption and it could be stored for a certain period of time.

Accordingly, retail packaging adapted to different consumption situations becomes more popular: family packages, single person packages of various shapes and dimensions, snack packages, etc. People are less likely to visit stores, therefore the packaging with increased capacity may become more suitable. Given the limitations of the HoReCa sector and the reduced number of visits to traditional malls and shops, online retail is becoming a more important channel for the sale of food products. Moreover, contactless delivery becomes a ‘must-have’ option for retail services.

The high dependency of the smoked salmon market on international trade means that the lower transport activity and the possible disruption of smoked salmon supply chains are serious threats to the market. Thus, smoked salmon imports dropped to $1.7B in 2019 (IndexBox estimates). The total import value increased at an average annual rate of +6.9% over the period from 2012 to 2019.

In value terms, Germany ($752M) constitutes the largest market for imported smoked salmon in the European Union, comprising 44% of total imports. The second position in the ranking was occupied by Italy ($292M), with a 17% share of total imports. It was followed by France, with a 11% share.

The smoked salmon import price in the European Union stood at $16,662 per tonne in 2019, shrinking by -5.8% against the previous year. Over the last seven-year period, it increased at an average annual rate of +3.0%.

Prices varied noticeably by the country of destination; the country with the highest price was Austria ($19,632 per tonne), while Denmark ($12,596 per tonne) was amongst the lowest. From 2012 to 2019, the most notable rate of growth in terms of prices was attained by France, while the other leaders experienced more modest paces of growth.

Major supply chain risk comes from the disruption of established international supply chains including food handling and packaging intermediaries, as well as the distributor sector. Supply chains may be undermined by asynchronous quarantine measures taken in the involved countries as well as the restraints in deliveries.

Given the pandemic-related limitation of the HoReCa and retail sector, the smoked salmon market is not expected to post any tangible gains in 2020. Afterward, the market is forecast to resume gradual growth, driven by gradual population growth and the recovery of the HoReCa industry. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +0.5% for the period from 2019 to 2030, which is projected to bring the market volume to 246K  tonnes by the end of 2030.

Source: IndexBox AI Platform

niche

SMALL POWERHOUSES: NICHE SPECIALTIES MAKE THESE 20 COMMUNITIES STAND OUT

Niche cities are playing a key role in our nation’s economic development, according to the McKinsey Global Institute’s July 2019 report “The Future of Work in America.” Some of the cities, which the report’s authors call “small powerhouses,” are currently enjoying the fastest economic growth rates in the nation.

Inspired by this, we found 20 niche communities around the U.S. and outlined what it is that makes them special.

MATAGORDA COUNTY, TEXAS

Rice

For the past 120 years, rice has been a staple crop for Matagorda County, which is located in the coastal prairie region of Texas. So much so that the crop brings in $135 million every year to the county and surrounding area, according to the Matagorda County Economic Development Corporation. While drought in recent years has taken a toll on the farms, rice farmers have lately been diversifying with new enterprises and even niche marketing. Even with recent losses, the Texas Farm Bureau says Matagorda and nearby Colorado and Wharton counties account for 60 percent of the rice grown in the state.

TULARE, CALIFORNIA

Soil

Considered one of the most productive agricultural areas in the world, Tulare County sits atop old Tulare Lake, which accounts for the incredibly fertile soil. Farmers and agro-scientists have raved over the land for easily the last century. “The soil is known to contain in exact proportions the elements needed for the growth of citrus trees,” states the 1910 Report of the California State Agricultural Society. Today, the county grows a variety of citrus, stone fruits, nuts, berries and silage crops. Farm employment accounts for a quarter of all jobs in Tulare County, which has 45 crops worth more than $1 million in farm gate gross value, according to the Tulare County Farm Bureau.

CHESTER COUNTY, PENNSYLVANIA

Mushrooms

An astonishing half of all mushrooms grown in the U.S. comes from Chester County. Though mushrooms can grow anywhere (in fact, commercial mushrooms are typically grown indoors), since the late 1880s, farms started springing up in this part of Pennsylvania, according to a 2012 NPR report. Today, there are 60 farms here, producing a half-billion pounds of mushrooms every year. That’s about $400 million worth of Agaricus (also known as white button), Portobello, Cremini (also known as common), Shiitake and Oyster mushrooms every year. Agaricus mushrooms alone have 12.6 million square feet of growing space, according to the Chester County Agricultural Development Council.

ROCKFORD, ILLINOIS

Screws

Rockford calls itself the “Screw Capital of the World,” so you know it’s legit. Around the 1940s, when the city’s furniture-making industries began closing, the manufacturing of fasteners began to take off. By the 1960s, according to the Rockford Economic Development Council, the city was the fifth-largest fastener manufacturer in the nation. Though the city today is home to numerous automotive and aircraft manufacturing plants, it still produces many of the screws, bolts and fasteners we use.

ELKO, NEVADA

Gold

Nearly 80 percent of all the gold mined in the U.S. comes from mines in and around Elko, which is located in northeastern Nevada. The more than a dozen mines there produced about 5.6 million troy ounces of gold in 2018, all worth about $7 billion. Though gold production has historically followed a pretty harsh boom and bust cycle, the geologist John Muntean told Elko Daily Free Press in July 2018 that the area has been experiencing a gold rush “for close to 50 years.”

BROWNFIELD, TEXAS

Grapes

Located in West Texas, Brownfield and surrounding Terry County have very dry air, which while great for grape production, was for a long time hindered by the local government’s prohibition-dry politics. But that relaxed a few years ago, and now wine is booming there, thanks to 3,000 acres of grape production. In fact, Brownfield grows most of the grapes in the entire state of Texas. “I think Texas loves vineyards because it’s Jesus’ first miracle,” Katy Jane Seaton, co-owner of Farmhouse Vineyards, told KCBD in 2018.

PLANT CITY, FLORIDA

Strawberries

Considered the Winter Strawberry Capital of the World, Plant City (and surrounding Hillsborough County) has about 8,000 acres in production, according to the Florida Strawberry Growers Association. Given the area’s mild subtropical climate and extremely fertile soil, this is easy to understand. The fields add up to Florida being the nation’s second-highest strawberry producing state, behind California. The Florida growing season runs from around Thanksgiving to the end of March, which is when they’re typically the most affordable at the supermarket.

WICHITA, KANSAS

Aircraft

For the last century, manufacturers in Wichita have produced more than a quarter million aircraft—more than any other city on Earth. In fact, Wichita business leaders dubbed it “Air Capital City” way back in 1929. Today, more than half of the world’s light civilian airplanes came from plants in Wichita—Bombardier Learjet, Cessna, Hawker Beechcraft and so forth. The list of aircraft types includes trainers, biplanes, racing planes, crop dusters, seaplanes, personal aircraft and business jets. Plants in Wichita also supply huge quantities of parts for other aircraft manufacturers.

HATCH, NEW MEXICO

Chile peppers

Hatch is a tiny town (pop. 1,680) with a huge reputation. Chile peppers are a huge crop in New Mexico, and much of them are grown here. Hatch chiles are world famous, known for their earthy taste and slow-burning heat. When roasted, they’re almost buttery. Some say the soil in the Hatch Valley provides the key to the peppers, while others point to the area’s 4,000-foot altitude (the peppers need hot days and cool nights to grow). “Hatch is considered the Napa Valley of chile,” Chris Franzoy, owner of the Hatch Chile Factory, told The New York Times in December 2019.

MORTON, ILLINOIS

Pumpkins

Officials in the village of Morton, located just outside Peoria, consider their little hamlet the “Pumpkin Capital of the World” because an astonishing 85 percent of all canned pumpkin on the planet comes from the plant there constructed back in 1920. Nestle USA/Libby’s owns the plant now, and it covers 5,000 acres. “There are also pumpkin farms surrounding this whole area,” Village President Ronald Rainson told a CBS Chicago reporter back in 2014. Morton gets good sunlight, farmers say, and the soils are varied, allowing for both early and late planting.

ELKHART, INDIANA

Recreational vehicles

When you see a big RV rolling down the road, there’s a very good chance it came from Northern Indiana. That region—and the town of Elkhart, especially—manufactures about 80 percent of all RVs found in the world. According to author Al Hesselbart, who documented Indiana’s manufacturing history in his book The Dumb Thing Sold… Just Like That, it all started in the 1930s when three guys decided to start making trailers in their Northern Indiana backyards. The area made sense, given that it’s located in the heart of America, making it easy for plants to ship their trailers around the county.

SANDERSVILLE, GEORGIA

Kaolinite

Somewhere between 50 million and 100 million years ago, massive quantities of aluminum silicate began washing down from the Piedmont Hills in Georgia. Eventually, these particles settled in a prehistoric sea that covered what is now Sandersville, located about halfway between Augusta and Macon. Known as kaolinite, this mineral is a vital ingredient in more than 100 modern products, including paper, ceramics, cosmetics, paint and even rocket nosecones. Every year, about 2.5 million tons of kaolinite is shipped out of Georgia, much of it from in and around Sandersville, where officials say the mining is an $800 million business and the Peach State’s largest volume export.

SOUTHERN ILLINOIS

Horseradish

Three counties in Southern Illinois—Madison, Monroe and St. Clair—account for between 60 percent and 80 percent of all the horseradish grown in the nation. According to a 2018 article in St. Louis Magazine, there are three reasons for this. First, families that initially began farming horseradish back in the late 1880s have chosen to stay put. Second, much of the land is potash—extremely fertile soil that was once covered by the Mississippi River. And third (and most surprising): The sulfur pollutants released by the old steel mills in the area actually proved beneficial to the horseradish, actually giving the plant its characteristic heat, which is a product of its grating. In fact, the sulfur was so good to the horseradish that farmers today add it to the soil, making up for its loss from the closure of the steel mills.

DALTON, GEORGIA

Carpet

Dalton makes wall-to-wall carpet. Since the 1890s, mills there have produced so much carpet that today it’s said that 90 percent of all wall-to-wall carpet in the world was made within 65 miles of Dalton, which is located in the Blue Ridge Mountains. In 2015, Atlas Obscura reported that the mills in and around Dalton produced a whopping 12.2 billion square feet of carpet every year—“enough to cover the entirety of Hong Kong in a thick, rich shag.” Built atop a mammoth bedspread industry that dated to 1895 in Dalton, the carpet mills benefitted from close proximity to dyeing and finishing firms.

WENATCHEE, WASHINGTON

Apples

Since 1872, people have grown apples in Wenatchee, located in north-central Washington. According to the Wenatchee Valley Museum and Cultural Center, city boosters in the first decade of the 20th century pointed to the area’s volcanic soils, sunshine, abundant water, the absence of high winds and cold nighttime temperatures as reasons why apples thrived there. And they still do—today, there are more than 1,700 fruit growers in the area surrounding Wenatchee, producing more than half the fresh apples consumed in the country.

SACRAMENTO, CALIFORNIA

Caviar

Though caviar has been raised in the Sacramento area (specifically, the tiny nearby town of Elverta) since the 1970s, it was only recently that the area won the distinction of producing the best fish eggs in the nation. Today, sturgeon are commercially raised in the Sacramento area (they have long thrived in the Sacramento River), thanks in great part to the poaching, over-fishing and pollution that damaged other caviar spots in the United States. In fact, the Los Angeles Times reported in 2013 that Sacramento sturgeon produce 70 to 80 percent of all American caviar produced every year.

HIGH POINT, NORTH CAROLINA

Furniture

High Point, located between Greensboro and Winston-Salem in North Carolina, is the largest producer of furniture in the nation. The earlier furniture built there dates to the late 1700s, and access to nearby forests made it easy for furniture-makers to thrive. The industry really took off in the late 1800s, when the Southern Railway came to town, allowing for easy distribution. According to a May 2019 story in House Beautiful, the city today boasts 12 million square feet of showroom space, which is roughly the equivalent of 200 football fields, and it hosts the massive High Point Market showing off the industry’s latest designs every April and October.

BEND, OREGON

Microbreweries

According to the Bend Chamber of Commerce, there’s one brewery in Bend for every 4,500 residents in the state—the highest per capita rate in Oregon. There are breweries (and brew festivals) throughout Bend, which is located about three hours from Portland. Situated by the Deschutes River and the surrounding mountains and forests of Ponderosa Pine, Bend’s 20 or so breweries are legendary in the craft and microbrew scene. In fact, Deschutes Brewery is the eighth-largest craft brewery in the United States.

JAMESTOWN, NORTH DAKOTA

Honey

Bees are big business in this tiny North Dakota town, which is located near the middle of the state. Many of the state’s 350,000 hives are located in and around this town of 15,000 people, according to the American Bee Journal. Throughout the Peace Garden State, hives produce as much as 31 million pounds of honey, often leading the nation in production. The state’s wide-open prairies and low population make for a perfect habitat for bees, National Geographic reported in 2016, though many North Dakota farmers are increasingly converting their land to corn and soybean growing, diminishing the land available for bee production.

LEWISVILLE, TEXAS

Men’s shirts

Thanks to Hong Kong-based The Apparel Group opening a 250,000-square-foot distribution center in Lewisville, one in six men’s shirts in the U.S. came from this town, located just north of Dallas. While the shirts are made in Asia, they’re designed in Lewisville, according to a 2017 Dallas Morning News story. The warehouse itself can hold a quarter-million shirts on hangers. The center opened in Lewisville to be close to the buying and distribution centers of Dillard’s and J.C. Penney, which are located in nearby Fort Worth.

rabbit

Ranking Third in Terms of the Market Size, Czechs Consume the Most Rabbit Meat Per Capita in Europe

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

The EU rabbit meat market reduced to $1.1B in 2019, waning by -3.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). Over the period under review, consumption recorded a perceptible slump. The pace of growth appeared the most rapid in 2018 with an increase of 12% against the previous year. Over the period under review, the market attained the maximum level at $1.5B in 2013; however, from 2014 to 2019, consumption failed to regain the momentum.

Consumption by Country

The countries with the highest volumes of rabbit meat consumption in 2019 were Spain (51K tonnes), Italy (45K tonnes) and the Czech Republic (40K tonnes), together accounting for 57% of total consumption. France, Germany, Bulgaria and Slovakia lagged somewhat behind, together comprising a further 36%.

From 2013 to 2019, the most notable rate of growth in terms of rabbit meat consumption, amongst the key consuming countries, was attained by Slovakia, while rabbit meat consumption for the other leaders experienced mixed trends in the consumption figures.

In value terms, the largest rabbit meat markets in the European Union were Germany ($249M), Spain ($213M) and Italy ($193M), together accounting for 58% of the total market. These countries were followed by France, the Czech Republic, Slovakia and Bulgaria, which together accounted for a further 36%.

In 2019, the highest levels of rabbit meat per capita consumption was registered in the Czech Republic (3.72 kg per person), followed by Spain (1.09 kg per person), Slovakia (0.82 kg per person) and Italy (0.75 kg per person), while the world average per capita consumption of rabbit meat was estimated at 0.46 kg per person.

Production in the EU

In 2019, approx. 234K tonnes of rabbit or hare meat were produced in the European Union; falling by -1.8% against 2018. In general, production saw a noticeable curtailment. The general negative trend in terms output was largely conditioned by a pronounced descent of the number of producing animals and a relatively flat trend pattern in yield figures.

Production by Country

The countries with the highest volumes of rabbit meat production in 2019 were Spain (54K tonnes), Italy (43K tonnes) and France (42K tonnes), with a combined 60% share of total production. These countries were followed by the Czech Republic, Germany, Hungary and Bulgaria, which together accounted for a further 35%.

From 2013 to 2019, the biggest increases were in Bulgaria, while rabbit meat production for the other leaders experienced a decline in the production figures.

Producing Animals and Yield

In 2019, number of animals slaughtered for rabbit meat production in the European Union shrank modestly to 144M heads, declining by -2.4% against 2018 figures. Over the period under review, the number of producing animals saw a pronounced decrease. The level of producing animals peaked at 175M heads in 2013; however, from 2014 to 2019, producing animals stood at a somewhat lower figure.

The average rabbit meat yield reached 1,631 kg per 1000 heads in 2019, standing approx. at the year before. Overall, the yield recorded a relatively flat trend pattern.

Exports in the EU

In 2019, shipments abroad of rabbit or hare meat decreased by -0.3% to 25K tonnes, falling for the fifth consecutive year after two years of growth. Overall, exports recorded a slight shrinkage. The pace of growth appeared the most rapid in 2014 with an increase of 8.8% year-to-year. As a result, exports attained the peak of 31K tonnes. From 2015 to 2019, the growth exports remained at a lower figure. In value terms, rabbit meat exports reduced to $130M (IndexBox estimates) in 2019.

Exports by Country

In 2019, France (6K tonnes), Spain (5.5K tonnes), Hungary (4.7K tonnes) and Belgium (4.3K tonnes) was the major exporter of rabbit or hare meat in the European Union, committing 81% of total export. It was distantly followed by Italy (1.5K tonnes), making up a 6% share of total exports. The following exporters – the Netherlands (912 tonnes) and Portugal (648 tonnes) – together made up 6% of total exports.

From 2013 to 2019, the most notable rate of growth in terms of shipments, amongst the key exporting countries, was attained by Portugal, while exports for the other leaders experienced more modest paces of growth.

In value terms, Hungary ($29M), France ($28M) and Belgium ($25M) constituted the countries with the highest levels of exports in 2019, with a combined 62% share of total exports. Spain, the Netherlands, Italy and Portugal lagged somewhat behind, together comprising a further 30%.

Export Prices by Country

The rabbit meat export price in the European Union stood at $5,131 per tonne in 2019, dropping by -6% against the previous year. Overall, the export price showed a mild contraction. The growth pace was the most rapid in 2018 when the export price increased by 21% year-to-year. The level of export peaked at $5,638 per tonne in 2013; however, from 2014 to 2019, export prices failed to regain the momentum.

Prices varied noticeably by the country of origin; the country with the highest price was the Netherlands ($7,147 per tonne), while Italy ($3,744 per tonne) was amongst the lowest.

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

Source: IndexBox AI Platform

pastry

The American Frozen Cake And Pastry Market Posted Record Gains

IndexBox has just published a new report: ‘U.S. Frozen Cakes, Pies, And Other Pastries Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

For the seventh consecutive year, the U.S. frozen cake and pastry market recorded growth in sales value, which increased by 3.6% to $7.3B in 2019. This figure reflects the total revenue of producers and importers (excluding logistics costs, marketing costs, and retail margins, which will be included in the final consumer price).

The market value increased at an average annual rate of +4.3% over the period from 2013 to 2019; the trend pattern remained relatively stable, with only minor fluctuations throughout the analyzed period. The pace of growth was the most pronounced in 2018 with an increase of 6.1% y-o-y. Over the period under review, the market reached the maximum level in 2019 and is expected to retain growth in years to come.

Production of Frozen Cakes, Pies, And Other Pastries in the U.S.

The American frozen cake and pastry market is largely buoyed by domestic production – despite growing robustly over the last decade, imports occupy only 15% of the market. Frozen cake and pastry production rose modestly to $6.6B in 2019. The total output value increased at an average annual rate of +3.9% over the period from 2013 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations in certain years.

Exports from the U.S.

For the fourth consecutive year, the U.S. recorded growth in shipments abroad of frozen cakes, pies, and other pastries, which increased by 6.7% to 46K tonnes in 2019. The total export volume increased at an average annual rate of +6.5% from 2013 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. In value terms, frozen cake and pastry exports totaled $140M (IndexBox estimates) in 2019.

Imports into the U.S.

In 2019, the number of frozen cakes, pies, and other pastries imported into the U.S. stood at 239K tonnes, remaining constant against 2018. In general, total imports indicated a prominent expansion from 2013 to 2019: its volume increased at an average annual rate of +8.3% over the last six years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. In value terms, frozen cake and pastry imports stood at $1.1B (IndexBox estimates) in 2019.

Based on 2019 figures, imports increased by +66.7% against 2014 indices. Over the period under review, imports reached the peak figure in 2019 and are likely to continue growth in the immediate term.

Imports by Country

In 2019, Canada (196K tonnes) constituted the largest supplier of frozen cake and pastry to the U.S., accounting for an 82% share of total imports. Moreover, frozen cake and pastry imports from Canada exceeded the figures recorded by the second-largest supplier, France (9.5K tonnes), more than tenfold.

From 2013 to 2019, the average annual rate of growth in terms of volume from Canada amounted to +7.8%. The remaining supplying countries recorded the following average annual rates of imports growth: France (+18.8% per year) and Italy (+15.1% per year).

In value terms, Canada ($884M) constituted the largest supplier of frozen cake and pastry to the U.S., comprising 83% of total imports. The second position in the ranking was occupied by France ($49M), with a 4.6% share of total imports.

Import Prices by Country

The average frozen cake and pastry import price stood at $4,438 per tonne in 2019, growing by 4.9% against the previous year. Over the last six years, it increased at an average annual rate of +6.6%. The growth pace was the most rapid in 2014 an increase of 25% y-o-y. The import price peaked in 2019 and is expected to retain growth in the near future.

Average prices varied noticeably amongst the major supplying countries. In 2019, the country with the highest price was Italy ($5,202 per tonne), while the price for Canada ($4,509 per tonne) was amongst the lowest.

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

Companies Mentioned in the Report

Rich Products Corporation, J & J Snack Foods, The Bama Companies, Sweet Street Desserts, The Eli’s Cheesecake Company, Love & Quiches, Rhodes International, J. S. B. Industries, Bama Pie, Galaxy Desserts, Bonert’s Incorporated, Lone Star Bakery, The James Skinner, Nemo’s Bakery, Mel-O-Cream Donuts International, Culinary Arts Specialties, Coastal Foods, Labree’s, Main Street Gourmet, Ralcorp Frozen Bakery Products, Marie Minnie Bakers, Astrochef, Creative Occasions, Granny’s Kitchens, Circle Peak Capital Management, Steven-Robert Original’s, Orange Bakery, Dawn Foods, Cloverhill Pastry-Vend, Panarama Incorporated (delaware), Edwards Fine Foods, Keystone Bakery Holdings

Source: IndexBox AI Platform

sausage

Czechs, Germans, and Austrians Eat the Most Sausages Per Capita in Europe

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

For the sixth year in a row, the EU sausage market recorded a decline in sales value, which decreased by -1.5% to $22.5B in 2019. Over the period under review, the market reached the maximum level at $26.7B in 2013; however, from 2014 to 2019, consumption stood at a somewhat lower figure.

Consumption by Country

Germany (1.5M tonnes) constituted the country with the largest volume of sausage consumption, comprising approx. 27% of the total volume. Moreover, sausage consumption in Germany exceeded the figures recorded by the second-largest consumer, Poland (574K tonnes), threefold. France (495K tonnes) ranked third in terms of total consumption with an 8.8% share.

From 2013 to 2019, the average annual growth rate of volume in Germany was relatively modest. In other countries, the average annual rates were as follows: Poland (+2.1% per year) and France (+2.0% per year).

In value terms, Germany ($7.6B) led the market, alone. The second position in the ranking was occupied by France ($2.6B). It was followed by Spain.

The countries with the highest levels of sausage per capita consumption in 2019 were the Czech Republic (19 kg per person), Germany (19 kg per person) and Austria (16 kg per person).

From 2013 to 2019, the most notable rate of growth in terms of sausage per capita consumption, amongst the key consuming countries, was attained by Italy, while sausage per capita consumption for the other leaders experienced more modest paces of growth.

Production in the EU

For the fifth year in a row, the European Union recorded growth in the production of sausages and similar products of meat, which increased by 1% to 5.7M tonnes in 2019. The total output volume increased at an average annual rate of +1.2% over the period from 2013 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations throughout the analyzed period. The growth pace was the most rapid in 2017 when the production volume increased by 3% y-o-y. The volume of production peaked in 2019 and is likely to see steady growth in the immediate term.

Production by Country

The country with the largest volume of sausage production was Germany (1.6M tonnes), comprising approx. 28% of the total volume. Moreover, sausage production in Germany exceeded the figures recorded by the second-largest producer, Poland (676K tonnes), twofold. The third position in this ranking was occupied by Spain (525K tonnes), with a 9.2% share.

From 2013 to 2019, the average annual growth rate of volume in Germany amounted to +1.6%. In other countries, the average annual rates were as follows: Poland (+3.0% per year) and Spain (+4.7% per year).

Exports in the EU

In 2019, sausage exports in the European Union were estimated at 857K tonnes, picking up by 3.2% compared with 2018. The total export volume increased at an average annual rate of +1.4% over the period from 2013 to 2019; the trend pattern remained consistent, with only minor fluctuations throughout the analyzed period. In value terms, sausage exports stood at $3.9B (IndexBox estimates) in 2019.

Exports by Country

In 2019, Germany (165K tonnes), followed by Poland (109K tonnes), Italy (75K tonnes), Spain (75K tonnes), the Netherlands (56K tonnes), Belgium (55K tonnes), Austria (50K tonnes) and France (44K tonnes) represented the largest exporters of sausages and similar products of meat, together creating 73% of total exports. Denmark (36K tonnes), Slovakia (30K tonnes), the Czech Republic (27K tonnes) and Hungary (20K tonnes) followed a long way behind the leaders.

From 2013 to 2019, the most notable rate of growth in terms of shipments, amongst the key exporting countries, was attained by Slovakia, while exports for the other leaders experienced more modest paces of growth.

In value terms, Germany ($788M), Italy ($548M) and Spain ($475M) appeared to be the countries with the highest levels of exports in 2019, together comprising 47% of total exports. These countries were followed by Poland, Austria, France, Denmark, the Netherlands, Belgium, Hungary, the Czech Republic and Slovakia, which together accounted for a further 43%.

Slovakia saw the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The sausage export price in the European Union stood at $4,533 per tonne in 2019, with a decrease of -2% against the previous year. In general, the export price continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2018 when the export price increased by 7% year-to-year. As a result, the export price reached the peak level of $4,627 per tonne, and then contracted modestly in the following year.

Prices varied noticeably by the country of origin; the country with the highest price was Italy ($7,311 per tonne), while Slovakia ($2,824 per tonne) was amongst the lowest.

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

Source: IndexBox AI Platform

range hood market

Rising Application in Residential Sector to Foster Range Hood Market Size by 2026

Increasing concerns regarding food safety and hygiene around the world are driving the range hood market growth. The development of new restaurants and hotels in Europe and the Asia Pacific is fueling product demand. Several restaurant owners are using kitchen hoods in order to follow food safety and restaurant hygiene guidelines put forth by local governments.

Range hoods are generally installed in commercial and residential kitchens for the removal of fumes, heat, smoke, airborne grease, and combustion products. Although the recent COVID-19 pandemic induced lockdown has caused restaurants, hotels, and cafes to shut down operations temporarily, estimates suggest that the range hood industry could grow substantially owing to the revival of the economy after the pandemic.

Given rising significance and demand, firms operating in the range hood market are developing new products that are rigged with advanced features. For instance, in 2018, major electronic goods company, Panasonic Corporation launched its new and enhanced chimney type range hood having modern features including an electronic soft-touch glass panel and a smoke duct adaptor. With such advancements, Global Market Insights, Inc., estimates that the range hood market may record over USD 9.5 billion by 2026.

Based on the product, the range hood market is divided into ceiling mount, wall mount and under a cabinet. Of these, the ceiling mount range hood segment is experiencing significant growth owing to increasing consumer inclination towards modular kitchens. Ceiling kitchen hoods are mainly made for modular kitchens with the nob or stove positioned in the middle of the kitchen, allowing multiple users to cook simultaneously. These hoods are available in various colors, shapes, materials, and sizes, which is boosting their popularity in modern kitchens.

In terms of application, the range hood business is bifurcated into residential and commercial. Out of these, the residential segment is anticipated to register the highest market share over the forecast period on account of the shifting preferences of consumers towards modern, advanced kitchen cleaning appliances over traditional cleaning systems like fans.

From a regional standpoint, the North American range hood market is witnessing increasing demand owing to the implementation of stringent government regulations on food safety and hygiene in hotels and restaurants.

While the global range hood market consists of firms such as Asko Appliances, KOBE Range Hoods, Zephyr Ventilation, Faber S.p.A, Broan Inc., Vent-A-Hood, Viking Range, LLC, Panasonic Corporation, Windster Hoods, CaptiveAire Systems, Fotile Overseas Kitchen Appliance, BSH Group, Samsung Electronics, Elica S.p.A, Miele, Inc., and Whirlpool Corporation. These companies are adopting different business strategies such as new product development and geographical expansions in order to enhance their market position.

Source: Global Market Insights, Inc.

turkey

Poland Emerges as the Fastest-Growing Exporter at the Global Turkey Meat Market

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

In 2019, the global turkey meat market increased by 3.5% to $12.8B, rising for the second consecutive year after two years of decline. In general, consumption, however, recorded a relatively flat trend pattern. Global consumption peaked at $13B in 2015; however, from 2016 to 2019, consumption remained at a lower figure.

Consumption by Country

The country with the largest volume of turkey meat consumption was the U.S. (2.4M tonnes), accounting for 41% of total volume. Moreover, turkey meat consumption in the U.S. exceeded the figures recorded by the second-largest consumer, Brazil (560K tonnes), fourfold. Germany (475K tonnes) ranked third in terms of total consumption with a 8.1% share.

From 2013 to 2019, the average annual rate of growth in terms of volume in the U.S. was relatively modest. The remaining consuming countries recorded the following average annual rates of consumption growth: Brazil (+4.7% per year) and Germany (+1.5% per year).

In value terms, the U.S. ($4.8B) led the market, alone. The second position in the ranking was occupied by Germany ($1.3B). It was followed by Brazil.

The countries with the highest levels of turkey meat per capita consumption in 2019 were Israel (11 kg per person), the U.S. (7.36 kg per person) and Germany (5.79 kg per person).

Production

Global turkey meat production reached 6M tonnes in 2019, flattening at the previous year. In general, production showed a relatively flat trend pattern. The growth pace was the most rapid in 2016 with an increase of 5.7% against the previous year. As a result, production attained a peak volume of 6M tonnes; afterward, it flattened through to 2019.

Production by Country

The U.S. (2.7M tonnes) constituted the country with the largest volume of turkey meat production, comprising approx. 45% of total volume. Moreover, turkey meat production in the U.S. exceeded the figures recorded by the second-largest producer, Brazil (596K tonnes), fourfold. The third position in this ranking was occupied by Germany (477K tonnes), with a 8% share.

In the U.S., turkey meat production remained relatively stable over the period from 2013-2019. The remaining producing countries recorded the following average annual rates of production growth: Brazil (+2.3% per year) and Germany (+0.7% per year).

Producing Animals and Yield

In 2019, the number of animals slaughtered for turkey meat production worldwide reached 660M heads, standing approx. at the previous year’s figure. Overall, the number of producing animals continues to indicate a relatively flat trend pattern.

The global average turkey meat yield amounted to 9,033 kg per 1000 heads in 2019, stabilizing at 2018 figures. Over the period under review, the yield continues to indicate a relatively flat trend pattern.

Exports

In 2019, approx. 1M tonnes of turkey meat were exported worldwide; growing by 2% against 2018 figures. In general, exports, however, saw a mild slump. In value terms, turkey meat exports rose sharply to $2.6B (IndexBox estimates) in 2019. Overall, exports, however, continue to indicate a slight reduction. Global exports peaked at $3B in 2014; however, from 2015 to 2019, exports stood at a somewhat lower figure.

Exports by Country

The U.S. (242K tonnes) and Poland (212K tonnes) represented the largest exporters of turkey meat in 2019, resulting at approx. 24% and 21% of total exports, respectively. Germany (121K tonnes) ranks next in terms of the total exports with a 12% share, followed by France (7%), Italy (5.8%) and Spain (5.1%). The following exporters – Brazil (36K tonnes), Hungary (35K tonnes), the UK (28K tonnes), the Netherlands (26K tonnes), Chile (25K tonnes) and Canada (20K tonnes) – together made up 17% of total exports.

From 2013 to 2019, the most notable rate of growth in terms of shipments, amongst the key exporting countries, was attained by Poland, while exports for the other global leaders experienced more modest paces of growth.

In value terms, the largest turkey meat supplying countries worldwide were Poland ($691M), the U.S. ($483M) and Germany ($343M), together comprising 58% of global exports. Italy, France, Hungary, Spain, Chile, Brazil, the Netherlands, the UK and Canada lagged somewhat behind, together accounting for a further 33%.

Export Prices by Country

The average turkey meat export price stood at $2,528 per tonne in 2019, with an increase of 4.9% against the previous year. In general, the export price showed a relatively flat trend pattern. The pace of growth appeared the most rapid in 2014 when the average export price increased by 5.7% year-to-year. As a result, the export price reached the peak level of $2,664 per tonne. From 2015 to 2019, the growth in terms of the average export prices remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2019, the country with the highest price was Hungary ($3,483 per tonne), while Canada ($1,275 per tonne) was amongst the lowest.

From 2013 to 2019, the most notable rate of growth in terms of prices was attained by Chile, while the other global leaders experienced mixed trends in the export price figures.

Source: IndexBox AI Platform