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Dairy Spread Market in the EU – Key Insights

dairy

Dairy Spread Market in the EU – Key Insights

IndexBox has just published a new report, the EU – Dairy Spreads – Market Analysis, Forecast, Size, Trends And Insights. Here is a summary of the report’s key findings.

The revenue of the dairy spread market in the European Union amounted to $827M in 2017, surging by 18% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.9% from 2007 to 2017; the trend pattern remained relatively stable, with only minor fluctuations being recorded over the period under review. The pace of growth was the most pronounced in 2017, when it surged by 18% y-o-y. In that year, the dairy spread market attained its peak level, and is likely to continue its growth in the immediate term.

Production in the EU

In 2017, approx. 200K tonnes of dairy spreads were produced in the European Union; increasing by 9.1% against the previous year. The dairy spread production continues to indicate a relatively flat trend pattern.

Dairy Spread Exports

Exports in the EU

In 2017, exports of dairy spreads in the European Union stood at 31K tonnes, flattening at the previous year. The dairy spread exports continue to indicate a perceptible curtailment.

In value terms, dairy spread exports stood at $138M (IndexBox estimates) in 2017. The dairy spread exports continue to indicate a relatively flat trend pattern. In that year, dairy spread exports reached their peak of $204M. From 2009 to 2017, the growth of dairy spread exports remained at a somewhat lower figure.

Exports by Country

Belgium was the main exporting countries with an export of about 9.5K tonnes, which amounted to 31% of total exports. Poland (4.5K tonnes) ranks second in terms of the global exports with a 15% share, followed by the UK (9.2%), Germany (8.4%), France (8.2%), Ireland (8%), Croatia (6.7%) and the Netherlands (4.8%).

Exports from Belgium decreased at an average annual rate of -2.0% from 2007 to 2017. At the same time, Poland (+31.2%), Croatia (+13.1%), the Netherlands (+5.5%) and France (+5.1%) displayed positive paces of growth. Moreover, Poland emerged as the fastest growing exporter in the European Union, with a CAGR of +31.2% from 2007-2017. Germany experienced a relatively flat trend pattern. By contrast, Ireland (-4.7%) and the UK (-17.2%) illustrated a downward trend over the same period. From 2007 to 2017, the share of the UK, Belgium and Ireland increased by 52%, 7.1% and 5% percentage points, while the Netherlands (-2%), France (-3.2%), Croatia (-4.8%) and Poland (-13.7%) saw their share reduced. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Belgium ($47M) remains the largest dairy spread supplier in the European Union, comprising 34% of global exports. The second position in the ranking was occupied by Germany ($17M), with a 12% share of global exports. It was followed by Poland, with a 9.3% share.

Export Prices by Country

The dairy spread export price in the European Union stood at $4.5 per kg in 2017, going up by 26% against the previous year. Over the period from 2007 to 2017, it increased at an average annual rate of +3.7%.

There were significant differences in the average export prices amongst the major exporting countries. In 2017, the country with the highest export price was Germany ($6.5 per kg), while the UK ($2.6 per kg) was amongst the lowest.

From 2007 to 2017, the most notable rate of growth in terms of export prices was attained by the Netherlands (+4.9% per year), while the other leaders experienced more modest paces of growth.

Dairy Spread Imports

Imports in the EU

The imports totaled 31K tonnes in 2017, waning by -30.2% against the previous year. The dairy spread imports continue to indicate an abrupt decrease. The growth pace was the most rapid in 2015, when the imports increased by 18% against the previous year. In that year, dairy spread imports reached their peak of 54K tonnes. From 2016 to 2017, the growth of dairy spread imports failed to regain its momentum.

In value terms, dairy spread imports amounted to $120M (IndexBox estimates) in 2017. The dairy spread imports continue to indicate a slight contraction. Over the period under review, dairy spread imports attained their maximum at $167M in 2014; however, from 2015 to 2017, imports remained at a lower figure.

Imports by Country

In 2017, the UK (7.1K tonnes), distantly followed by Germany (4.6K tonnes), France (2.6K tonnes), Portugal (2.6K tonnes), Slovakia (2.1K tonnes), the Netherlands (1.7K tonnes), Spain (1.5K tonnes) and the Czech Republic (1.4K tonnes) represented the main importers of dairy spreads, together mixed up 77% of total imports. The following importers – Greece (1.3K tonnes), Belgium (1.1K tonnes), Austria (726 tonnes) and Romania (651 tonnes) together made up 12% of total imports.

From 2007 to 2017, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by the Netherlands (+43.7% per year), while the other leaders experienced more modest paces of growth.

In value terms, the UK ($28M), Germany ($17M) and France ($13M) constituted the countries with the highest levels of imports in 2017, with a combined 48% share of total imports. These countries were followed by Portugal, Spain, Belgium, Austria, Slovakia, Greece, the Czech Republic, the Netherlands and Romania, which together accounted for a further 41%.

Import Prices by Country

In 2017, the dairy spread import price in the European Union amounted to $3.9 per kg, picking up by 15% against the previous year. Over the last decade, it increased at an average annual rate of +3.6%.

Import prices varied noticeably by the country of destination; the country with the highest import price was Austria ($7.3 per kg), while the Netherlands ($2.2 per kg) was amongst the lowest.

From 2007 to 2017, the most notable rate of growth in terms of import prices was attained by France (+9.2% per year), while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

blockchain

German-Austrian Trade Transaction Successful on Marco Polo’s Blockchain Platform

The S-Servicepartner, Sparkasse Bielefeld and the Austrian Raiffeisen Bank International, together with Dr. August Wolff GmbH & Co. KG Arzneimittel and its business partner, the pharmaceutical company s.a.m. Pharma Handel GmbH successfully completed a digital trade transaction with a receivables-based financing component on the Marco Polo platform. A special feature: the S-Servicepartner, currently the only back-office service provider worldwide within the Marco Polo consortium, the largest and fastest-growing trade finance network, was able to process a blockchain-based trade transaction for the first time together with a savings bank and its customer. Another highlight: Raiffeisen Bank International was the first Austrian bank to carry out a pilot transaction on the Marco Polo platform.

The Marco Polo network connects banks, corporates and technology-partners to streamline their working capital and trade finance activities through direct data exchange. It provides digital solutions for international trade and supply chain as well as receivables-based financing using R3 Corda Blockchain technology. Companies will be able to access the platform’s offerings via web portals, local and cloud-based platforms, and ERP-integrated applications.

The settlement and financing of trade transactions via a Distributed Ledger Technology (DLT)-based platform is of equal interest to companies of all sizes active in foreign trade. The S-Servicepartner participates in the development of the Marco Polo platform, representing all savings banks in Germany, and pursues the goal of providing the savings banks with access to the Marco Polo product offering. The service provider is, therefore, testing the functionality and experience of the products on the Marco Polo platform together with selected savings banks and their medium-sized corporate customers. “This is the first transaction in a pilot series with savings banks with which we want to make an important contribution towards production maturity,” says Jürgen Nagel, a member of the Management Board of S-Servicepartner Berlin. “The insights gained by all participants will be directly incorporated into the further development of the modules”.

Ralf Hüpel, Head of International Business at Sparkasse Bielefeld, states: “We are very happy and satisfied to be able to contribute the view of a savings bank at such an early stage in the development of this platform. As the first savings bank in Germany, we were able, together with our customer, to give important impulses for the further development of this international project”.

“The Wolff Group, which is always interested in cutting edge innovations, sees an opportunity for the future to raise considerable efficiency potentials and significantly improve transparency in the entire process, from ordering to payment”, confirms Tanja Niedenführ, Head of Finance and Accounting Department at the pharmaceutical manufacturer.

Raiffeisen Bank International (RBI) began looking at the existing blockchain-based trade finance solutions in 2017. Of all the available platforms, RBI ultimately opted for Marco Polo. “Marco Polo best suited our strategy as the platform combines traditional trade finance products with new blockchain-based solutions such as Payment Commitment,” says Stefan Andjelic, RBI Blockchain Hub Lead. The cooperation with S-Servicepartner and the two companies gave a good impression of the marketability of the Marco Polo platform. “The transaction showed how Marco Polo can make trade finance more transparent and efficient through automation,” says Andreas Zietz, RBI Teamlead Trade Finance.

Also for Michael Stanzig, Managing Director of s.a.m. Pharma Handel GmbH, the pilot has shown that the Marco Polo platform provides transparency and security to all sides. “The usability of the platform is relatively easy for our part and operated without any problems,” Michael Stanzig continues.

“This pilot demonstrates the benefits of leveraging blockchain technology for open account trade finance transactions. By using the Marco Polo Platform, we create a safe and digital environment, which provides the foundation for a global trade finance marketplace,” said Rob Barnes, CEO of TradeIX.

The parties to the transaction agree that the cooperative partnership not only provided a deeper insight into the innovative technology but also brought the conviction that the underlying visions can be put into practice in the near future.

___________________________________________________________

The S-Servicepartner is the largest back office service provider for the savings banks in Germany. As a process industrialiser, the S-Servicepartner supports the savings banks with standardization and automation solutions using modern technologies such as Robotic Process Automation (RPA) and Business Intelligence (BI). Today, the corporate group employs more than 2,350 people at 11 locations throughout Germany and generates annual sales of around 200 million euros.

Sparkasse Bielefeld is the market leader in its area of business for medium-sized corporate customers and the most important financing partner for medium-sized companies in Bielefeld. The bank handles more than 20,000 commercial customer relationships in Bielefeld and has provided around 550 million Euros in new commercial loans in 2018.

The Dr. Wolff Group, with brands such as Alpecin, Plantur and Alcina, as well as Linola, Vagisan, Biorepair and Karex, is a family business from Bielefeld, now in its fourth generation, with 675 employees and expanding worldwide. Since its foundation in 1905, the company has focused on research and the scientifically proven benefits of its products in order to find a solution for hair and skin problems. With its own developments, the company achieved a turnover of 309 million Euros (2018). Dr. Wolff is operating in more than 60 countries.

RBI regards Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market. 13 markets of the region are covered by subsidiary banks. Additionally, the RBI Group comprises numerous other financial service providers, for instance in leasing, asset management or M&A. 

Around 47,000 employees service 16.5 million customers through approx. 2,100 business outlets, the by far largest part thereof in CEE. RBI’s shares are listed on the Vienna Stock Exchange. The Austrian Regional Raiffeisen Banks own around 58.8 percent of the shares, the remainder is in free float. Within the Austrian Raiffeisen Banking Group, RBI is the central institute of the Regional Raiffeisen Banks and other affiliated credit institutions.

s.a.m. Pharma Handel is a small successful company founded in 2003 in the OTC pharmaceutical sector with the aim of marketing European pharmaceutical companies that are not independently represented in Austria.

China market

Success in China: Market Opportunities & How to Get Started

Are you an ambitious entrepreneur from the west seeking to expand to China? Or are you interested in opening a new business in China? If yes, this article is for you. We will explain the 5 most viable business openings in China today and the 5 most reliable tips on how to get started in this highly-competitive market. Please be our guest.

Which Viable Market Opportunities Can You Pursue in China?

As the affluent middle class continues to expand in China, solid economic transformations in the country are being realized day by day. The biggest beneficiaries of these transformations are multinational companies who have set up or are planning to open a shop in China. There are now bigger and better market opportunities to pursue, more advanced industries to invest in, and more tech-intensive manufacturing opportunities to consider. As a matter of fact, China now boasts of a 50% bigger manufacturing economy as compared to the USA.

If you are looking to tap into the continued increase in high value-added production, increased globalization of the service sector, as well as the increased outbound investment in China, these 5 market opportunities would be lucrative enough for you:

Healthcare

Rising wealth often comes with an increase in lifestyle diseases. An increase in manufacturing, on the other hand, brings forth many environmental concerns. These two factors have made the healthcare industry very lucrative in China. You will create a reliable cash cow if you could invest in a business that deals with herbal supplements or small health products- or a mainstream pharmaceutical company, so to speak. Also, the use of skincare products is on the rise in China. It’s best to set up a wholly foreign-owned enterprise for such operations.

Import and export trade

China is currently the largest exporter of tech goods and importer of processed foods globally. That means you can build a profitable importing and exporting business here in a heartbeat. 

Supplementary education

Many middle-class Chinese are keen on improving their English and expanding their knowledge of different aspects of business and politics. If you can offer them after-school private tutoring services, you will be making impressive annual returns on a consistent basis. Moreover, online tutorage is on the rise in China, which enables you to tutor more people in a more cost-effective way.

Food production

This goes without saying: Everyone needs food, everyone loves good food. And now that the middle-class in China is welcoming new entrants in huge numbers, there is a significant supply gap within this class for as long as the food is concerned. A rise in class obviously comes with a change in lifestyle, and food is at the center of every lifestyle. 

Mobile phones and accessories

The whole world has in the recent past turned to China for all its tech needs. The nation is the largest producer and importer of affordable mobile phones and accessories, meaning that a business in this industry would be extremely profitable.

What kind of structure to choose when expanding to China

IF you are considering expanding your business to China, establishing the right business structure is crucial. There are several types of business structures:

-Representative Office – allows foreign companies to open their offices in China and hire staff under their own legal entity. However, the offices are not allowed to perform any business, rather it is done by the parent company which is abroad. 

-Sales Office- this business structure enables foreign businesses to rent an office with a Chinese address for conducting business, without the necessity to establish a separate legal entity. All the activities and costs incurred in this office, are paid by the parent company.

-Foreign Invested Partnership- For this business entity, there is no need for minimum capital requirements. Depending on agreements, two or more investors can be joined and form this type of structure. 

-Wholly Foreign-Owned Enterprise- Through a wholly foreign-owned enterprise, two or more foreign partners can come together and establish the company which has the same liability as domestic companies. Moreover, it provides the owner with autonomous control and ownership. 

How to Get Started In China

As lucrative as China could be, many investors from the west talk about it with fear. Some of these foreign entrants tried and failed, or struggled to find their footing in this Asian economic giant. But what would render you unable to compete and survive here? For starters, the business environment here is too unforgiving and the competition too stiff for the faint-hearted. Also, cases of language barriers, cultural differences, and bureaucratic government regulations have led to the peril of many. 

In the middle of all these, how do you defy the odds and succeed in China? Here are 5 actionable tips on how to get started in China:

Don’t just translate your content for China; ensure that everything about your business is localized for China. 

It is important to understand and comply with all business regulations in China. The hiring process can be tricky to a new entrant, which necessitates the services of a Chinese recruitment agency. Such an agency will help you with all employment laws, privileges, and remuneration. 

Ensure that you understand and respect the cultural differences that exist between the west and the east. 

Never underestimate the power of customer opinion in China. Let the customer tell what their experience with your product is, respect their opinion, learn from your mistakes, and ensure that you find lasting solutions to all their concerns. 

As much as possible, try to work with a local partner in order to benefit from the many favors local entrepreneurs get from the government.

trade

Trade and the Impact on Imports and Exports in 2020

Significant and sustained increases in the world trade index (an index measuring the number of times the word uncertainty or its variants are mentioned in Economist Intelligence Unit (EIU) reports at a country level) should be a worry for many as “the increase in trade uncertainty observed in the first quarter could be enough to reduce global growth by up to 0.75 percentage points in 2019”[1]

In August, the US Institute for supply management[2] latest report shows a contraction in production, purchasing, and employment indices.

Ahir, H, N Bloom, and D Furceri (2019), “The global economy hit by higher uncertainty”, VoxEU.org. https://voxeu.org/article/trade-uncertainty-rising-and-can-harm-global-economy

 

Uncertainty generated from Brexit, the US-China trade war, Japan – South Korea trade wars, and general discontentment with global trend towards widening income inequality is creating a toxic mix for politicians to deal with. The irony is the conventional approach of blaming your trading partners for your problems is only likely to exacerbate a general lack of confidence and increase further uncertainty.

The current round of the G7 summit in Biarritz concluded with support “to overhaul the WTO to improve effectiveness with regard to intellectual property protection, to settle disputes more swiftly and to eliminate unfair trade practices.” In essence, it’s signaling a need to strengthen the capabilities of the WTO to act faster and more decisively in resolving disputes that are even more political than structural in nature, requiring a more multi-faceted engagement approach. Whilst this may help in the long-run, in reality, companies will have to contend with uncertainty in global trade for some time to come as well as the impacts on the real economy from these disputes.

And all of this is happening as IMO 2020 approaches, the January 1, 2020, date by which the International Maritime Organization mandates a switch to lower sulfur fuels in order to achieve an 80% reduction in sulfur emissions leading to significant cost increases in the shipping goods via ocean freight (initial estimates between 180USD – 420 USD per TEU dependent on routing, base fuel costs, carrier).

So given the significant uncertainty around global trade agreements, the increasing use of trade as a political football, the increasing costs to trade and the shortening of product lifecycles as customers want faster, newer more differentiated offerings. Is it still worth it?

Of course this is very much dependent on what industry you are in. Whether you’re a global manufacturer or a wholesaler sourcing goods, your perspectives may be different based on investments made, sensitivity to current trade/tariff measures, customer demands, your markets, and the degree to which you are exposed to political debate and targeting.

However, I would offer that the benefits of specialization, economies of scale and unique factors of production that have underpinned global trade still exist as Adam Smith put it in 1776:

“By means of glasses, hotbeds, and hot walls, very good grapes can be raised in Scotland, and very good wine too can be made of them at about thirty times the expense for which at least equally good can be brought from foreign countries. Would it be a reasonable law to prohibit the importation of all foreign wines, merely to encourage the making of claret and burgundy in Scotland?”[1]

Today this simple analogy still holds true in skills, competences, capabilities, and access to markets and insights so that over time the expectation is that trade will prevail.

While the recent outlook has been gloomy, opportunities for 2020 include a resolution to a number of ongoing disputes and a final settlement on Brexit (we hope). Additionally, the maturation in technologies such as blockchain, process automation, forecasting and demand management solutions can also offset costs associated with IMO and support greater agility in the uncertain supply-chain world that we currently live in.

Indeed, if 2019 was the year of trade uncertainty, 2020 could be a restorative year in our ability to execute global trade.

Partnering with an experienced supply chain leader will be essential to minimizing cost increases while ensuring the efficient flow of your company’s goods and services.

_____________________________________________________

[1] World Economic Forum:https://www.weforum.org/agenda/2019/07/how-trade-uncertainty-is-impacting-the-global-economy/

[2]https://www.instituteforsupplymanagement.org/ismreport/mfgrob.cfm?SSO=1

[3]Adam Smith: Wealth of nations 1776

Neil Wheeldon is the Vice Presidents Solutions, BDP International.

turkey

Turkey Meat Market in the U.S. Remains Robust

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

The revenue of the turkey meat market in the U.S. amounted to $4.8B in 2018, growing by 6.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.0% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2015 with an increase of 14% against the previous year. In that year, the turkey meat market reached its peak level of $5.2B. From 2016 to 2018, the growth of the turkey meat market remained at a somewhat lower figure.

Production in the U.S.

In 2018, the production of turkey meat in the U.S. totaled 2.7M tonnes, stabilizing at the previous year. In general, turkey meat production continues to indicate a relatively flat trend pattern, which is largely conditioned by the stability in the demand for turkey meat in the U.S. In terms of supply, the stability of turkey meat output is feasible due to the number of producing animals which remains relatively stable, but the yield figures experiencing a modest growth.

Producing Animals in the U.S.

In 2018, the number of animals slaughtered for turkey meat production in the U.S. amounted to 239M heads, approximately mirroring the previous year. Overall, the number of animals slaughtered for turkey meat production continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2016 with an increase of 4.7% year-to-year.

Yield in the U.S.

In 2018, the average turkey meat yield in the U.S. stood at 11 kg per head, remaining relatively unchanged against the previous year. Over the period under review, the turkey meat yield continues to indicate a modest increase. The growth pace was the most rapid in 2008 with an increase of 2.5% y-o-y. Over the period under review, the average turkey meat yield reached its peak figure level in 2018 and is likely to see steady growth in the immediate term.

Exports from the U.S.

In 2018, approx. 219K tonnes of turkey meat were exported from the U.S.; waning by -5.2% against the previous year. In general, after contracting in 2015, turkey meat exports continue to indicate a relatively flat trend pattern over the last four years.

In value terms, turkey meat exports totaled $419M (IndexBox estimates) in 2018.

Exports by Country

Mexico (110K tonnes) was the main destination for turkey meat exports from the U.S., accounting for a 50% share of total exports. Moreover, turkey meat exports to Mexico exceeded the volume sent to the second major destination, China (26K tonnes), fourfold. China, Hong Kong SAR (13K tonnes) ranked third in terms of total exports with a 5.7% share.

From 2007 to 2018, the average annual rate of growth in terms of volume to Mexico totaled -1.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+2.2% per year) and China, Hong Kong SAR (+5.9% per year).

Export Prices by Country

The average turkey meat export price stood at $1,911 per tonne in 2018, growing by 6% against the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +2.0%. The growth pace was the most rapid in 2015 when the average export price increased by 11% against the previous year. In that year, the average export prices for turkey meat reached their peak level of $2,194 per tonne. From 2016 to 2018, the growth in terms of the average export prices for turkey meat remained at a somewhat lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was China ($2,572 per tonne), while the average price for exports to Haiti ($784 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to China, while the prices for the other major destinations experienced more modest paces of growth.

Imports into the U.S.

In 2018, the turkey meat imports into the U.S. totaled 8.5K tonnes, coming down by -21.4% against the previous year. In value terms, turkey meat imports totaled $27M (IndexBox estimates) in 2018. In general, turkey meat imports remain insignificant against the overall market size, thanks to the well established domestic turkey meat industry.

Imports by Country

Canada (4.2K tonnes), Chile (3.5K tonnes) and Israel (643 tonnes) were the main suppliers of turkey meat imports to the U.S., together comprising 99% of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Chile, while the other leaders experienced mixed trend patterns.

Import Prices by Country

In 2018, the average turkey meat import price amounted to $3,233 per tonne, increasing by 20% against the previous year. Over the period under review, the turkey meat import price continues to indicate a resilient increase.

Prices varied noticeably by the country of origin; the country with the highest price was Israel ($5,288 per tonne), while the price for Canada ($2,730 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Israel, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox AI Platform

international

International Diploma-cy

Higher education is one of the world’s leading “exports”

To compete in today’s knowledge-driven economy, college-bound students are increasingly going global in their pursuit of a top-notch degree. Since 2001, the number of students pursuing studies abroad has more than doubled, from 2.1 million to 5.0 million in 2018.

As one result, higher education is fast becoming one of the world’s leading “exports.” Many people may not think of education as an “export,” but when an international student comes to the United States, for example, the monies spent on tuition, fees and living expenses are considered “exports” of education services.

The current world leader in education exports is the United States, whose 7,021 two- and four-year colleges and universities attracted nearly a quarter of the world’s international students in 2018. According to the U.S. International Trade Commission (ITC), revenues from U.S. higher education accounted for about one-fourth of the $903 billion global education services industry in 2011.

Top host destinations for foreign students

International students are the consumers of higher education exports

On the other side of the equation, the world’s leading “consumers” of higher education are China and India, both of whom see enormous benefits in sending hundreds of thousands of their students abroad to take advantage of educational opportunities and to bring that knowledge home.

Chinese students, for example, make up 33 percent of all international students in the United States, according to a 2019 report by the Institute of International Education (IIE), while the share of students from India has also grown dramatically. In 2018, China sent 369,548 students to America, while India sent 202,014. For both groups of students, the most popular fields of study are science, technology, engineering and math (STEM), followed by business and management.

American schools also benefit from the presence of international students, which is one reason why their numbers are rising (although their share of total U.S. college enrollment is still only about five percent). In addition to the cultural and social diversity these students bring, they also pay “full freight” – out-of-state tuition in the case of public universities or sticker price in the case of private schools. At some schools, international students even pay extra. At the University of Illinois at Champaign-Urbana, for example, international students paid a $2,800 surcharge during the 2012-2013 school year.

These well-paying students have been a boon for schools facing rising costs or cash-strapped by cuts in state education budgets. But even elite institutions find these students attractive. For example, according to the ITC, foreign students made up at least 15 percent of the students entering Boston University, Columbia University and the University of Pennsylvania during the 2011-2012 school year and at least 10 percent of students at such flagship state schools as the University of California-Berkeley. Many schools also actively recruit foreign students and even hire “brokers” to find students abroad. The ITC also reports that a growing number of public colleges and universities are forming state-wide consortia, such as “Study New Jersey” and “Study Wisconsin,” to host recruiting fairs and conferences for foreign students.

US Colleges with Greatest Share of Foreign Students 2018

Global competition to provide higher education

American schools, however, are increasingly facing competition from other countries that see the same opportunities. India, for example, recently decided to raise by 10,000 the number of foreign students admitted to its engineering schools as a way to improve the prestige of its national universities. As a result, the U.S. share of the international student market is slipping. While the number of international students going to America continues to climb, its overall share of these students in 2016 was three percent lower than it was in 2001.

While the dominance of U.S. higher education will likely continue for quite some time, competition for the world’s “best and brightest” will only get more fierce.

___________________________________________________________

This article was updated as of November 20, 2019.

Anne Kim

 

Anne Kim is a contributing editor to Washington Monthly and the author of Abandoned: America’s Lost Youth and the Crisis of Disconnection, forthcoming in 2020 from the New Press. Her writings on economic opportunity, social policy, and higher education have appeared in numerous national outlets, including the Washington Monthly, the Washington Post, Governing and Atlantic.com, among others. She is a veteran of the think tanks the Progressive Policy Institute and Third Way as well as of Capitol Hill, where she worked for Rep. Jim Cooper (D-TN). Anne has a law degree from Duke University and a bachelor’s in journalism from the University of Missouri-Columbia.

This article originally appeared on TradeVistas.org. Republished with permission.

artificial

Artificial Guts Market in Poland Grows Tangibly for the Fourth Consecutive Year

IndexBox has just published a new report: ‘Poland – Artificial Guts (Sausage Skins) – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the artificial guts market in Poland amounted to $88M in 2018, increasing by 11% 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). Artificial guts consumption continues to increase noticeably over the last four years, accelerating by 2018.

Market Forecast 2019-2025 in Poland

Driven by increasing demand for artificial guts in Poland, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to expand with an anticipated CAGR of +1.8% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 6.8K tonnes by the end of 2025.

Production in Poland

In 2018, approx. 6.1K tonnes of artificial guts (sausage skins) were produced in Poland; picking up by 11% against the previous year. The total output volume increased at an average annual rate of +1.4% from 2007 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations in certain years. Artificial guts production peaked in 2018 and is likely to continue its growth in the near future. In value terms, artificial guts production totaled $77M in 2018 estimated in export prices.

Exports from Poland

In 2018, approx. 3.7K tonnes of artificial guts (sausage skins) were exported from Poland; approximately reflecting the previous year. The total export volume increased at an average annual rate of +1.6% from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being observed in certain years. Over the period under review, artificial guts exports attained their peak figure at 4K tonnes in 2012; however, from 2013 to 2018, exports failed to regain their momentum.

In value terms, artificial guts exports totaled $50M (IndexBox estimates) in 2018.

Exports by Country

Ukraine (992 tonnes), Germany (666 tonnes) and Russia (603 tonnes) were the main destinations of artificial guts exports from Poland, with a combined 60% share of total exports. Spain, Italy, France, Kazakhstan, Bulgaria, Belarus, Slovakia and Turkmenistan lagged somewhat behind, together comprising a further 25%.

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

Export Prices by Country

In 2018, the average artificial guts export price amounted to $13,453 per tonne, surging by 3.3% against the previous year. Over the period under review, the artificial guts export price continues to indicate a relatively flat trend pattern. Over the period under review, the average export prices for artificial guts (sausage skins) attained their maximum at $16,203 per tonne in 2014; however, from 2015 to 2018, export prices stood at a somewhat lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Turkmenistan ($17,525 per tonne), while the average price for exports to Bulgaria ($8,797 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to Italy, while the prices for the other major destinations experienced more modest paces of growth.

Imports into Poland

Artificial guts imports into Poland stood at 3.6K tonnes in 2018, lowering by -2.1% against the previous year. Over the period under review, the total imports indicated a remarkable expansion from 2007 to 2018: its volume increased at an average annual rate of +4.1% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, artificial guts imports reached their peak figure at 3.8K tonnes in 2015; however, from 2016 to 2018, imports stood at a somewhat lower figure. In value terms, artificial guts imports totaled $51M (IndexBox estimates) in 2018.

Imports by Country

The Czech Republic (1.1K tonnes), Germany (965 tonnes) and Spain (701 tonnes) were the main suppliers of artificial guts imports to Poland, with a combined 77% share of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Spain, while the other leaders experienced more modest paces of growth.

In value terms, the largest artificial guts suppliers to Poland were Germany ($16M), the Czech Republic ($16M) and Spain ($8.4M), together comprising 80% of total imports.

Import Prices by Country

The average artificial guts import price stood at $13,978 per tonne in 2018, flattening at the previous year. Over the period under review, the artificial guts import price, however, continues to indicate a moderate slump. The pace of growth appeared the most rapid in 2010 an increase of 12% year-to-year.

Average prices varied somewhat amongst the major supplying countries. In 2018, the countries with the highest prices were Germany ($16,676 per tonne) and the Czech Republic ($14,152 per tonne), while the price for France ($11,250 per tonne) and Spain ($12,036 per tonne) were amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Germany, while the prices for the other major suppliers experienced a decline.

Source: IndexBox AI Platform

European Chicken Meat Market Posted Solid Gains in 2018

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

The revenue of the chicken meat market in the European Union amounted to $19.5B in 2018, rising by 13% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.6% from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed throughout the analyzed period.

The most prominent rate of growth was recorded in 2018, with an increase of 13% against the previous year. Over the period under review, the chicken meat market reached its maximum level at $19.6B in 2013; however, from 2014 to 2018, consumption stood at a somewhat lower figure.

Production in the EU

In 2018, the amount of chicken meat produced in the European Union amounted to 13M tonnes, surging by 3.6% against the previous year. The total output volume increased at an average annual rate of +3.2% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2009, when the output figure increased by 8.3% y-o-y. Over the period under review, chicken meat production reached its maximum volume in 2018, and is likely to continue its growth in the near future. The general positive trend in terms of chicken meat output was largely conditioned by a noticeable increase of the number of producing animals and a relatively flat trend pattern in yield figures.

Exports in the EU

In 2018, chicken meat exports in the European Union stood at 4.9M tonnes, increasing by 4.7% against the previous year. The total exports indicated a strong growth from 2007 to 2018: its volume increased at an average annual rate of +6.4% over the last eleven year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the chicken meat exports increased by +25.5% against 2011 indices. The growth pace was the most rapid in 2011, when exports increased by 21% y-o-y. The volume of exports peaked in 2018, and are likely to see steady growth in the near future.

In value terms, chicken meat exports stood at $8.8B (IndexBox estimates) in 2018. The total exports indicated a remarkable growth from 2007 to 2018: its value increased at an average annual rate of +6.4% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the chicken meat exports increased by +20.0% against 2016 indices. The pace of growth appeared the most rapid in 2011, with an increase of 27% y-o-y. Over the period under review, chicken meat exports reached their maximum in 2018, and are likely to continue its growth in the near future.

Exports by Country

The Netherlands (1.4M tonnes) and Poland (1.1M tonnes) represented the largest exporters of chicken meat in 2018, amounting to approx. 29% and 22% of total exports, respectively. Belgium (586K tonnes) ranks next in terms of the total exports with a 12% share, followed by France (6.7%), the UK (6.7%) and Germany (6.6%). Spain (123K tonnes) followed a long way behind the leaders.

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

In value terms, the largest chicken meat markets in the European Union were the Netherlands ($2.6B), Poland ($2B) and Belgium ($947M), with a combined 64% share of total exports.

Export Prices by Country

The chicken meat export price in the European Union stood at $1,787 per tonne in 2018, increasing by 7.1% against the previous year. In general, the chicken meat export price, however, continues to indicate a mild descent.

There were significant differences in the average export prices amongst the major exporting countries. In 2018, the country with the highest export price was Germany ($2,042 per tonne), while the UK ($1,015 per tonne) was amongst the lowest.

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

Imports in the EU

In 2018, approx. 4.7M tonnes of chicken meat were imported in the European Union; growing by 8.3% against the previous year. The total import volume increased at an average annual rate of +3.1% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2011, with an increase of 15% against the previous year. Over the period under review, chicken meat imports reached their peak figure in 2018, and are likely to continue its growth in the immediate term.

In value terms, chicken meat imports stood at $7.6B (IndexBox estimates) in 2018. The total import value increased at an average annual rate of +4.3% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2011, when imports increased by 22% y-o-y. Over the period under review, chicken meat imports reached their maximum in 2018, and are likely to continue its growth in the immediate term.

Imports by Country

The UK (1M tonnes) and Germany (984K tonnes) represented the key importers of chicken meat in 2018, recording near 22% and 21% of total imports, respectively. The Netherlands (592K tonnes) ranks next in terms of the total imports with a 13% share, followed by France (9.6%) and Belgium (4.6%). The following importers – Ireland (176K tonnes), Sweden (172K tonnes), Spain (115K tonnes), the Czech Republic (100K tonnes), Bulgaria (96K tonnes), Romania (94K tonnes) and Greece (73K tonnes) – together made up 18% of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Bulgaria, while the other leaders experienced more modest paces of growth.

In value terms, the UK ($1.5B), Germany ($1.3B) and France ($1.1B) were the countries with the highest levels of imports in 2018, together comprising 51% of total imports. These countries were followed by the Netherlands, Belgium, Ireland, Spain, the Czech Republic, Sweden, Romania, Greece and Bulgaria, which together accounted for a further 34%.

Import Prices by Country

In 2018, the chicken meat import price in the European Union amounted to $1,633 per tonne, surging by 5.3% against the previous year. Over the last eleven years, it increased at an average annual rate of +1.2%.

Import prices varied noticeably by the country of destination; the country with the highest import price was France ($2,371 per tonne), while Sweden ($997 per tonne) was amongst the lowest.

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

Source: IndexBox AI Platform

Global Wine Market 2019 – Spain Retains Leadership in Exports Amid Buoyant Market Growth

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

The global wine market revenue amounted to $130.3B in 2018, going down by -3.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.4% from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2010, when the market value increased by 11% y-o-y. Global wine consumption peaked at $134.7B in 2017, and then declined slightly in the following year.

Production 2007-2018

Global wine production totaled 32B litres in 2018, surging by 2.3% against the previous year. The total output volume increased at an average annual rate of +1.4% over the period from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being observed in certain years.

Exports 2007-2018

In 2018, the global exports of wine totaled 11B litres, going down by -4.5% against the previous year. The total export volume increased at an average annual rate of +2.1% from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations in certain years. In value terms, wine exports amounted to $35.5B (IndexBox estimates) in 2018.

Exports by Country

In 2018, Italy (2B litres), France (1.9B litres) and Spain (1.7B litres) represented the main exporters of wine in the world, achieving 52% of total export. Australia (815M litres) held a 7.7% share (based on tonnes) of total exports, which put it in second place, followed by Chile (6.2%). South Africa (442M litres), Germany (383M litres), the U.S. (351M litres), New Zealand (319M litres), Portugal (303M litres), Argentina (271M litres) and China (244M litres) occupied a relatively small share of total exports.

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

In value terms, the largest wine markets worldwide were France ($11B), Italy ($7.3B) and Spain ($3.2B), with a combined 61% share of global exports. Australia, Chile, the U.S., New Zealand, Germany, Portugal, Argentina, South Africa and China lagged somewhat behind, together comprising a further 30%.

Export Prices by Country

In 2018, the average wine export price amounted to $3,332 per thousand litres, rising by 7.8% against the previous year. Overall, the wine export price continues to indicate a relatively flat trend pattern. There were significant differences in the average export prices amongst the major exporting countries. In 2018, the country with the highest export price was France ($5,740 per thousand litres), while China ($1,464 per thousand litres) was amongst the lowest.

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

Imports 2007-2018

In 2018, approx. 9.4B litres of wine were imported worldwide; going down by -20.1% against the previous year. The total import volume increased at an average annual rate of +1.2% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. In value terms, wine imports amounted to $33.7B (IndexBox estimates) in 2018.

Imports by Country

The countries with the highest levels of wine imports in 2018 were the UK (1.3B litres), the U.S. (1.2B litres), Germany (1B litres) and China (681M litres), together amounting to 44% of total import. Canada (409M litres), the Netherlands (382M litres), Belgium (327M litres), China, Hong Kong SAR (300M litres), Japan (290M litres), Russia (278M litres), France (244M litres) and Sweden (209M litres) followed a long way behind the leaders.

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

In value terms, the largest wine importing markets worldwide were the U.S. ($5.4B), the UK ($4B) and Germany ($2.7B), together accounting for 36% of global imports. These countries were followed by China, Canada, Japan, China, Hong Kong SAR, the Netherlands, Belgium, France, Russia and Sweden, which together accounted for a further 36%.

Import Prices by Country

In 2018, the average wine import price amounted to $3,589 per thousand litres, rising by 18% against the previous year. Over the period under review, the wine import price continues to indicate a relatively flat trend pattern. There were significant differences in the average import prices amongst the major importing countries. In 2018, the country with the highest import price was Japan ($5,777 per thousand litres), while Russia ($2,497 per thousand litres) was amongst the lowest.

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

Source: IndexBox AI Platform

USMCA

A Vote on USMCA is a Vote for Predictability

For all their legal nuance, trade agreements are written to make commerce more predictable. The rules are meant to increase business confidence, boost investment and spur job creation. It’s time for Congress to show bipartisan support for a more predictable North American market, and pass the United States-Mexico-Canada Agreement (USMCA).

USMCA is a much-needed upgrade of the North American Free Trade Agreement (NAFTA), a text that was largely copied over from the US-Canada bilateral trade agreement signed in 1988. To say that NAFTA is outdated is an understatement. Canada and Mexico have concluded trade deals with other countries that do things NAFTA could have never anticipated 25 years ago. USMCA is needed just to keep up.

Three chapters of USMCA deserve far more attention than they’ve received.

First, the chapter on health and safety standards is a must for US agriculture. The biggest threat to our ranchers and farmers is a lack of science-based import regimes abroad, not tariffs.

Tariffs are a tax on trade, whereas health and safety standards, applied in a non-scientific or in a discriminatory way, can act as a ban trade. US agricultural exporters have long demanded more science-based approaches to what are called sanitary and phytosanitary standards, and USMCA delivers on this. USMCA also puts forward a number of consultative mechanisms that will help prevent certain market access problems from arising in the first place.

US agriculture needs Chapter 9 of the USMCA.

Second, the chapter on technical barriers to trade is essential for US manufacturers. It covers the regulatory measures that impact over 90 percent of goods exports from the United States. This is fertile ground for protectionism. Governments can easily use regulatory measures, or ways of assessing conformity with them, that shield domestic producers from import competition. In fact, they can completely shut down trade with a few strokes of the legislative pen.

In USMCA, American manufacturers have more of a voice in the regulatory process in Canada and Mexico concerning their exports. Importantly, USMCA also calls on the three countries to recognize that, in setting technical specifications, performance, and not the provenance of the regulation, is what should matter. This is a longstanding US demand, and USMCA represents a tangible win for US exporters in this regard.

American manufacturing needs Chapter 10 of USMCA.

Third, the chapter on intellectual property is upgraded to reflect the needs of a building a creative economy. The list of international agreements that inform USMCA is striking; many didn’t exist in 1994, never mind in 1988. Copyright protections are modernized, as are those for biologics, a type of drug that could not have been imagined when NAFTA was negotiated. Whereas patents, alone, could help stimulate investment in small molecule drugs, they aren’t enough for the living systems that define biologics. USMCA brings Canada and Mexico closer to the US standard, and in this regard increases protection of American IP abroad.

Other IP provisions will assist a variety of America’s creative industries, from film to fashion to iPhones. These modernized rules, along with consultative mechanisms to ensure a level playing field, will provide the kind of protections that inventors need to bring their ideas to market. This is a win.

America’s creative industries need Chapter 20 of USMCA.

Still, there are some who, while recognizing the benefits of USMCA, worry that the deal cannot effectively enforce labor and environmental standards. They shouldn’t be. The provisions are as good as anything in the EU-Mexico trade agreement, for example, and Europe is renowned for having high expectations on both fronts, both domestically and internationally.

Polls show that, regardless of party, American voters are more supportive of free trade now than ever before. Democrats, Independents and Republicans converge around 80 percent in favor. Polls also show that USMCA has bipartisan backing.

The United States is part of a North American market that thrives on predictability. It’s time for Congress to unite behind USMCA and deliver predictability.

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Marc L. Busch is the Karl F. Landegger Professor of International Business Diplomacy at Georgetown University’s School of Foreign Service.