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U.S. Almond Exports Hit Record $1.1B in Tandem with Rising Output

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Archives, Global Trade Daily, Imports/Exports

U.S. Almond Exports Hit Record $1.1B in Tandem with Rising Output

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

U.S. almond exports hit a record high of approx. $1.1B in 2020, which was equal to 296K tonnes. An increase in harvested area, especially in California, led to a higher almond output that enabled to propel exports. India became the main importer of American almonds, accounting for 74% of the total export volume.

U.S. Almond Exports

In 2020, U.S. shipments abroad of almonds increased by 38% to 296K tonnes (IndexBox estimates), rising for the second consecutive year after two years of decline. In value terms, almond exports totaled $1.1B in 2020.

India (218K tonnes) was the main destination for almond exports from the U.S., accounting for a 74% share of total exports. Moreover, almond exports to India exceeded the volume sent to the second major destination, China (32K tonnes), sevenfold. The third position in this ranking was occupied by Hong Kong SAR (12K tonnes), with a 4% share.

From 2007 to 2020, the average annual growth rate in terms of volume to India totaled +15.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+33.1% per year) and Hong Kong SAR (+3.0% per year).

In value terms, India ($808M) remains the key foreign market for almond exports from the U.S., comprising 74% of total exports. The second position in the ranking was occupied by China ($110M), with a 10% share of total exports. It was followed by Hong Kong SAR, with a 3.7% share.

The average almond export price stood at $3,676 per tonne in 2020, down by -24.3% against the previous year. Average prices varied noticeably for the major foreign markets. In 2020, the highest prices were recorded for prices to India ($3,708 per tonne) and the United Arab Emirates ($3,602 per tonne), while the average price for exports to Turkey ($3,248 per tonne) and Hong Kong SAR ($3,387 per tonne) was amongst the lowest.

Source: IndexBox Platform

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Archives, EU Trade, Global Trade Daily

Spain’s Peach Export Prices Surge on Lower Yields but Key Markets Still Remain Secure

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

Spain remains the largest peach and nectarine exporter worldwide, with a share of 34% in terms of the global volume. In 2020, the harvest was damaged by frosts, which led to a reduction of supplies. Export prices thus ramped up and are to remain high until yields stabilize. Despite this, Spain’s position on the key foreign markets in Germany and France remained secure. The year 2021 remains uneven in terms of future yield, which strengthens the risk that buyers will seek cheaper alternatives.

Exports from Spain

Peach and nectarine exports from Spain reduced rapidly to 654K tonnes in 2020, falling by -21.1% against 2019 figures. This was largely attributed to a harvest loss due to frosts in 2020. In value terms, peach and nectarine exports expanded remarkably to $971M (IndexBox estimates) in 2020.

Exports by Country

Germany (208K tonnes), France (112K tonnes) and Italy (96K tonnes) were the main destinations of peach and nectarine exports from Spain, with a combined 64% share of total exports. These countries were followed by the UK, Portugal, Poland, the Netherlands, Belgium and Switzerland, which together accounted for a further 25%.

In value terms, Germany ($332M) remains the key foreign market for peach and nectarine exports from Spain, comprising 34% of total exports. The second position in the ranking was occupied by France ($156M), with a 16% share of total exports. It was followed by Italy, with a 12% share.

From 2007 to 2020, the average annual growth rate of value to Germany amounted to +8.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: France (+1.5% per year) and Italy (+4.7% per year).

Despite rising prices, Spanish peaches and nectarines hold near 80% in terms of German imports and over 90% in French imports. In 2021, there is a risk that adverse weather conditions may continue, which could push buyers to seek new countries for sourcing the product.

Export Prices

In 2020, the average peach and nectarine export price amounted to $1,484 per tonne, growing by 43% against the previous year. This resulted from a shortage in supplies due to poor yields. As a result, export price attained the peak level and is may keep at this level if weather conditions remain adverse in 2021.

Prices varied noticeably by the country of destination; the country with the highest price was Switzerland ($2,086 per tonne), while the average price for exports to Portugal ($1,053 per tonne) was amongst the lowest.

Source: IndexBox Platform

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Archives, Global Trade Daily, Imports/Exports, Special Reports

In-Depth Look: What is a Container Freight Station?

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Shipping and trading have been evolving for as long as the industry existed. Companies from all over the world use them to deliver their products from one place of the world to a completely different one, and indeed, they are absolutely essential to business.

But if you are only getting started with trading and shipping, the terminology can be quite confusing. Hence, here’s everything you need to know about what a CFS or a container freight station is and how it is used.

What Is A Container Freight Station?

Contain freight station is one of the key shipping and transportation terms anyone working with delivery should know. To put it simply, a CFS or a container freight station is a facility for distribution, consolidation, and de-consolidation or import and export shipments. Such stations are an essential component of any supply chain with most of them being located in or around ports and inland distribution cities.

Freight forwarders are usually the ones using CFS companies. However, shippers and third-party logistics service providers do work with them too to handle customer freight. CFS are usually either owned privately or by terminals or shipping lines. Because CFS deals with import and export, such stations are usually categorized as either origin CFS or destination CFS which corresponds to the origin and destination points they work with.

So, why exactly are container freight stations important? Well, here are just some reasons to consider:

-CFS helps decongest ports and terminals.

-CFS helps clear them of multiple customs clearance procedures.

-CFS allows for easier tracking by assigning unique identification numbers to vessels.

-CFS helps maintain records of shipments, including such information as exporter names, importer and customs agents, origin and destination points, cargo details, etc.

-CFS helps provide better cargo security, efficient loading and unloading, stuffing and de-stuffing, etc.

It’s important to understand that CFS shipping is becoming increasingly popular as it is in demand nowadays thanks to so many companies opting for LCL shipments (also known as less-than-a-containerload. E-commerce business owners are also using CFS shipping more as it provides better security above all else.

What Is CFS Shipping?

As mentioned above, there is the so-called CFS shipping that container freight stations are involved in. Basically, CFS shipping is the kind of shipping that involves such stations, but it’s important to understand the differences between it and other types of shipping or trading to fully grasp what sets CFS shipping apart.

Container freight stations act as centralized locations for suppliers playing a crucial role both for importing and exporting. Consolidation and de-consolidation of cargo are involved and there are processes executed such as issuing shipping orders, stuffing, sealing, marking, storage, sorting, stacking, and further preparation.

What Is the Difference Between CFS, CY, ICD, and Bonded Warehouse?

As experts from the service where you can pay someone to write my paper say, “Knowing what container freight stations are is only part of the job. You need to know the differences between CFS and other elements of trading and shipping such as CY, ICD, and bonded warehouses that could be used instead of CFS.”

A container yard or CY is a special area in a port where full-container-load or FCL containers are stored prior to or after they are loaded from or onto a ship. For export CY/CY shipments, shippers usually deliver the container to a particular container yard at the port where control over it is handed to the shipping line. Then, the container is delivered to another CY at the port of discharge and the shipper picks it up from the shipping line.

Inland container depot or ICD is, much like other terms discussed here, a facility used for handling imported and exported containers. ICDs are found further inland rather than at the ports. Such depots are used by companies to handle shipments closer to the factories and warehouses. ICDs are automated and independent customs stations making it easier for companies to get through all the necessary processes.

Bonded warehouses are spaces authorized by customs to store imported and exported goods – either local or foreign – on which duty payment was already deferred. Bonded warehouses help traders avoid any cash flow issues by giving importers time to get the money for duty payment or, alternatively, find buyers for the goods in question.

What Are the Key Benefits & Functions of A CFS?

As mentioned earlier, container freight stations have a variety of reasons to be important, but it’s worth going over every key benefit and function they possess to fully understand their worth:

-They are used to receive and consolidate LCL shipments for export. LCL shipments are consolidated into larger containers with freight shipped to the same destination point, whether it is of one or multiple customers. Containers can also be de-consolidated and dispatched for final delivery.

-They are used to transload IPI containers (of the 20’s, 40’s, and 45’s variety) into 53’ intermodal containers. This allows for more control over the inventory as well as possible cost savings.

-They are used for a variety of other processes including container load plan preparation, stuffing and de-stuffing, container identification sealing, temporary storage, container movement from CY and laden containers to ports and terminals, stacking, sorting, tracking, tallying, container maintenance and repairment, transit operations customs clearance, etc.

What Are the CFS Export and Import Processes Are Like?

Last but not least, even though you need to remember to advance your delivery technology to get more efficient shipping and delivery processes when working with CFS, you also need to understand the basics such as export and import processes at CFS.

The export process involves exporters loading goods on trucks and delivering them to CFS (with a shipping bill). There, goods are unloaded, received by CFS custodians, and then undergo customs clearance. The customs authorities endorse the shipping bill and the CFS stuffs the goods into containers. The containers are then sealed and handed to the port or terminal for export.

The import process involves importer agents filing the import general manifest or IGM with details about the cargo, importer, etc. This is done at the port or terminal itself in order to move the cargo to CFS. The containers are then forwarded to CFS and the cargo is offloaded, stacked, and de-stuffed. The cargo owner (or clearing agent) files the bill of entry, aids in cargo clearances, and pays duties. Customs endorses the bill of entry and the CFS custodians issue a gate pass for releasing cargo to the importer.

Final Thoughts

To sum it all up, using container freight stations will definitely be instrumental in your trading and shipping strategy, so you should know everything you can about them before you start working with them.

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Melissa Mauro is a self-improvement author who is always interested in new projects. She wants to create her own writer brand, that’s why Melissa is looking for fresh platforms for the implementation of her ideas. Creativity and unique style make it possible to deliver valuable and engaging content to her ideal reader.

fleets management
Archives, Global Logistics, Global Trade Daily, Trucking

Not All Equipment Leases Are Created Equal: How Transportation Fleets Can Become More Flexible and Cost Effective with Proper Leasing Strategy

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The broader economy has rebounded quite well from the severe market turbulence of 2020. In fact, seven countries, including the U.S. and China, have already reached their per capita GDPs return to pre-pandemic standing, according to the latest report from the Organization for Economic Co-operation and Development (OECD). According to the group, global economic output will rise by 5.8% in 2021, up significantly from 20201. 

Key to this economic activity are companies with transportation fleets that provide the movement of goods across America. However, many of these firms must make strategic organizational decisions that can impact their bottom lines when determining the right procurement strategies to upgrade hundreds of aging trucks in their fleets. The costs involved can be significant depending on the type of investment structure (lease versus purchase), and even as more companies shorten their equipment life cycles through leasing, many firms are realizing that not all lease agreements are equal. 

Companies in a Full-Service Lease (FSL) already know it is not a flexible option. But it is also critical to understand the many variables and costs under an FSL program when compared to an Unbundled Lease (UBL) agreement. 

Businesses Need Flexibility for Market Changes 

2020 was a difficult year for virtually every business because of the drastic market changes felt across every industry. Businesses needed flexibility to adapt to the turbulent environment and scale their organizations accordingly. 

Entering 2021, Federal stimulus measures and pent-up consumer demand have resulted in the American economy now heating up, forcing many companies to look for an expansion of operations. Companies with transportation fleets also need to keep an eye on costs as inflationary pressures are increasingly resulting in profit erosion. 

A key inflation indicator rose a faster-than-expected 3.1% in April as price pressures built in the rapidly expanding U.S. economy, the Commerce Department reported recently. The core personal consumption expenditures index was forecast to increase 2.9% after rising 1.9% in March 2. Whether through market contraction or expansion, companies with transportation fleets today need to be as flexible as possible in running their fleet operations. 

Unfortunately, not all lease structures are created equal, and some fleet organizations have suffered from an inability to exercise this flexibility through a full-service lease structure, which binds them in a lease contract over a specified period of time. 

With flexibility at the forefront of the business strategy of operating a fleet, scrutinizing every detail of a fleet’s vehicle lease structure can mean the difference of millions gained or lost toward the bottom line, which can be detrimental when organizations need to preserve every penny for profits today.  

Full-Service Leasing Defined 

Full-Service Lease is a lease in which the lessor provides financing and other transportation services packaged in a single monthly payment. Full-Service transactions are often that, just transactions and the contracts are tenured and strategically designed to avoid high-impact deal breakers.  

In an FSL agreement, fleets essentially hand over all decisions affecting the fuel and maintenance costs to their lease provider and instead focus on a “bundled” monthly payment. 

While on the surface, this may sound like a marriage of convenience, Full-Service leasing eliminates flexibility since it locks the organization into a rigid contract and terms for a set long-term period, wherein the cost for maintenance and finance are combined along with general overhead costs. Unfortunately, limiting the operational flexibility can be disastrous when business conditions change, or industries experience severe shifts overnight. 

Unbundled Leasing: Flexibility & Competitive Costs 

In contrast, UBL agreements are designed for fleets to work with a provider that can help break out costs individually and identify the lowest-possible financial costs involved with operating a fleet, including fuel economy efficiency, and eliminating unnecessary maintenance and repair costs. 

A UBL offers flexible financing options based on actual costs; not what costs were projected at the onset of the decision process. UBL offers vehicle life cycle management for better cost and performance optimization. In a UBL agreement, companies have greater flexibility on these individual costs and the freedom to upgrade and scale the size of their fleet, guaranteeing the lowest-possible financial costs involved with truck acquisition. 

Significant Cost Savings Involved when Unbundling 

The monthly cost savings can be significant. After taking into account the lease payments, warranty and maintenance fees, an organization pays either an average of $1,816.11 per month (unbundled) compared with $2,792.00 per month (FSL). When calculated over a span of 100 trucks, that fleet would experience a first-year savings of approximately $1.2 million toward the bottom line3.   

These monthly costs are further exemplified when finance costs are also taken into account. Finance costs are a significant calculation in any equipment acquisition. Purchase or lease requires a cap cost number and a finance number. The most effective process to reduce the truck cost and finance cost is to have competitive equipment and finance options. Access to multiple Original Equipment Manufacturers (OEMs) and lenders is key to obtaining the lowest equipment and finance cost. These competitive options can be achieved when lease agreements are unbundled, allowing the freedom and flexibility to shop for the most competitive options available. The cumulative per-truck savings over a six-year life cycle amounts to $60,000, or roughly $6 million for a fleet with 100 trucks3.  

The need for organizations to adapt through flexibility is no longer just a buzzword, it’s a competitive strategy. According to McKinsey and Company, businesses that operate with agility in mind will enjoy a powerful impact on their bottom line, as well as other significant benefits to the organization. This level of agility will not only help companies navigate through today’s unpredictable market, but will help position for growth tomorrow.  

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About The Author: Katerina Jones is Vice President, Marketing and Business Development at Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing and life cycle cost management. For more information visit www.FleetAdvantage.com.  

1: https://www.oecd.org/economic-outlook/  

2: https://www.cnbc.com/2021/05/28/pce-price-index.html  

3: https://www.fleetadvantage.com/press-releases/latest-fleet-advantage-industry-report-illustrates-significant-advantages-of-unbundled-leases-versus-full-service-leases-for-heavy-duty-truck-equipment  

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Archives, Global Trade Daily, Imports/Exports, News

Kiwi Exports from New Zealand to Set New Records

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

New Zealand remains the largest kiwi exporting country, supplying near 572K tonnes in 2020, which accounted for 41% of the global shipments. Despite the Covid-related restrictions, 2020 saw an 8.3% y-o-y spike in kiwi export supplies from New Zealand. This year, the country is expected to beat its previous export record, due to the highest yield. 

Kiwi fruit Exports from New Zealand

New Zealand represented the largest exporting country with a 41% share of global exports (1.4M tonnes). Kiwi fruit exports from New Zealand stood at 572K tonnes in 2020, picking up by 8.3% compared with the year before. The total export volume increased at an average annual rate of +3.3% from 2007 to 2020; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, exports reached the peak figure in 2020 and are expected to retain growth in years to come.

In value terms, kiwi fruit exports surged to $1.7B in 2020. Overall, exports posted prominent growth. The pace of growth was the most pronounced in 2018 with an increase of 30% against the previous year. Exports peaked in 2020 and are likely to see steady growth in the immediate term.

Belgium (131K tonnes), Japan (104K tonnes) and China (96K tonnes) were the main destinations of kiwi fruit exports from New Zealand, with a combined 58% share of total exports. From 2007 to 2020, the biggest increases were in supplies to China, while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for kiwi fruit exported from New Zealand were Japan ($427M), China ($394M) and Belgium ($243M), together comprising 61% of total exports.

In 2020, the average kiwi fruit export price amounted to $3,026 per tonne, with an increase of 7.1% against the previous year. Over the period under review, export price indicated a prominent increase from 2007 to 2020: its price increased at an average annual rate of +5.4% over the last thirteen-year period.

There were significant differences in the average prices for the major export markets. In 2020, the country with the highest price was Japan ($4,111 per tonne), while the average price for exports to Belgium ($1,857 per tonne) was amongst the lowest.

According to the New Zealand Kiwifruit Growers Incorporated, kiwi exports from New Zealand in 2021 are forecast to break the last-year record. This will become feasible due to the rising production.

Source: IndexBox Platform

trade
Archives, Global Trade Daily, International Trade, News

DMCC Reports on the Future of Trade as Global Trade Defies Expectations in 2021

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DMCC’s latest feature, Defying Predictions and Driving Post Pandemic Economic Recovery, unravels global trade predictions for 2021 in a positive manner. The article explains the surprising resilience through the 2020 year despite challenged by the global pandemic.

The report highlighted two key global and regional takeaways, first, global trade will underpin strong global economic growth in 2021 with the US and Chinese economies leading the way. This growth has defied expectations of double-digit annual declines, which had been estimated between 13-32% by the World Trade Organization. Second, Dubai, a major trade hub, saw its foreign trade growth rebound significantly in 2020, despite the economic challenges posed by the COVID-19 pandemic. The second half of 2020 seeing a particularly strong jump in volumes of 6% year-on-year. Dubai’s overall export values jumped 8% in 2020, on an annual basis.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of DMCC, said, “In 2020, the outlook for global trade was bleak as the world sought to grapple with the impact of the pandemic. Today, the picture is much more positive, as evidenced by the findings of our latest Special Edition Future of Trade – 2021 report. But while global trade has shown its resilience, it is simultaneously in the midst of profound change. Technology, changing consumer behaviors, the drive to combat climate change, and geopolitics will all be key contributors to its reshaping in the years ahead. In this context, our research puts forward several tangible recommendations to governments and businesses seeking to navigate this new landscape and accelerate the recovery from the pandemic.”

According to the research, the most transformative element of the global trade outlook is technology. Blockchain, decentralized finance, DeFi, and other new and disruptive technologies will further accelerate growth. For example, DeFi protocols have seen a considerable amount of funds invested. Since the start of 2021 alone, the total value locked into DeFi has tripled from approximately USD 20bn to USD 60bn. As digital infrastructures grow, they will continue to accelerate a ground-breaking shift in trade from the national to the global.

Commenting on the release of the Special Edition report, Feryal Ahmadi, Chief Operating Officer, DMCC, said, “Following a challenging and uncertain period, the evidence presented in our Future of Trade report suggests an optimistic outlook. Global trade has defied all expectations and will underpin global economic growth. While geopolitics will continue to present challenges and impact the global trading system, the adoption of technology will continue to shape the future of trade. An important development over the last twelve months has also been the pivot of governments, companies, and investors towards sustainable practices in international trade – now high on the agenda. What the report ultimately reiterates, in line with our previous findings, is that international coordination and collaboration, and technology remain the key enablers and drivers of the recovery.”

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Archives, Global Trade Daily, News

Prices on the Global Tin Market Soar on Robust Demand Recovery

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

Tin prices rose to record levels in response to high demand from the electronics industry and a severe supply shortage on the market. The deficit has been driven on by pandemic-related decreases in mining output in 2020, the shipping container crisis and a drop in exports due to supply-chain disruptions. Prices are forecast to fall only in 2022 thanks to ramped-up mining output and supply and demand returning to equilibrium.

Key Trends and Insights

The year 2020 was marked by an 8.8% decline in global output for tin because of pandemic quarantine measures and a drop in demand from its primary consumer — the electronics industry. About half of tin produced in the world is used as a solder in electronics to assemble semiconductor microchips to printed circuit boards and other electronic devices.

All countries, except Russia, Congo and Nigeria, experienced a significant contraction in mining. In Indonesia, tin ore production fell by 15% y-o-y, in China by 4%, in Myanmar by 21% and in Peru by 9%.

In the first half of 2021, demand for tin used in electronics soared to record highs outpacing supply. In the U.S., Asia and the EU, a construction boom also bolstered growth in demand for the metal which is used in joining pipes. The use of tin-plated cans in the stabilizing food industry as well as in metal containers for petroleum products and lubricants contributed to the rise in demand.

The deficit in shipping containers caused delays in deliveries from Southeast Asia and Latin America while the pandemic spurred on a decline in unrefined tin exports from Indonesia. Both of these factors led to a shortage of tin on the global market. As a result, in just six months, prices for the metal grew 1.5 times on the London exchange from $20,540 per ton in December 2020 to $31,264 per ton in June 2021.

High prices for tin should incentivize mining activity to ramp up and gradually balance out supply and demand on the market. According to the World Bank, the average yearly price for tin in 2022 will decrease to $23,000 per ton and stabilize in the midterm.

Global Tin Production

In 2020, production of tin decreased by -6.4% to 359K tonnes, falling for the third year in a row after two years of growth. In value terms, tin production reduced to $5.2B in 2020 estimated in export prices.

The country with the largest volume of tin production was China (168K tonnes), comprising approx. 47% of total volume. Moreover, tin production in China exceeded the figures recorded by the second-largest producer, Indonesia (70K tonnes), twofold. The third position in this ranking was occupied by Peru (26K tonnes), with a 7.3% share.

Global Tin Imports

In 2020, overseas purchases of tin were finally on the rise to reach 198K tonnes (IndexBox estimates) after two years of decline. Overall, imports, however, showed a noticeable contraction. The growth pace was the most rapid in 2014 when imports increased by 5.7% y-o-y. Global imports peaked at 292K tonnes in 2007; however, from 2008 to 2020, imports failed to regain momentum.

In value terms, tin imports declined to $3.6B in 2020. In general, imports, however, recorded a slight decline. The pace of growth was the most pronounced in 2010 with an increase of 44% y-o-y. Global imports peaked at $7.1B in 2011; however, from 2012 to 2020, imports stood at a somewhat lower figure.

In 2020, the U.S. (31K tonnes), followed by Singapore (20K tonnes), Japan (19K tonnes), China (18K tonnes), Germany (16K tonnes), South Korea (14K tonnes), Taiwan (Chinese) (13K tonnes), India (9.8K tonnes) and Malaysia (9.5K tonnes) represented the largest importers of tin, together creating 76% of total imports. The Netherlands (6.3K tonnes), Spain (5.7K tonnes), Italy (4.4K tonnes) and France (4.4K tonnes) occupied a relatively small share of total imports.

In value terms, the U.S. ($540M), Singapore ($374M) and Malaysia ($368M) were the countries with the highest levels of imports in 2020, with a combined 36% share of global imports. These countries were followed by Japan, China, Germany, South Korea, India, Taiwan (Chinese), the Netherlands, Spain, Italy and France, which together accounted for a further 51%.

In 2020, the average tin import price amounted to $18,195 per tonne, with a decrease of -9.7% against the previous year. From 2007 to 2020, the most notable rate of growth in terms of prices was attained by Malaysia, while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform

milk market
Archives, Global Trade Daily, Imports/Exports, News

The U.S. Milk Production Rises on Strong Domestic and Export Demand for Processed Dairy Products

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

USDA forecasts that milk production in the U.S. will rise by 2.1% in 2021 thanks to gains in yield per cow as well as a slight increase in the number of milk cows. The average yearly price received by farmers for cow milk in 2021 is predicted to grow by 3.9% y-o-y amidst a rally in prices for animal feed. Rising consumer demand for cheese and butter continues to drive the market on the backdrop of lower demand for beverage milk. Demand in Asia for imported dairy products features as another factor boosting milk processing in the U.S.

Key Trends and Insights

According to IndexBox, in 2020, U.S. milk production increased by 1.3% y-o-y to 100M tonnes, and it is forecast to rise at the same pace for the next two years due to demand from the growing population.

The average number of milk cows in the U.S. rose from 9,337 heads in 2019 to 9,388 heads in 2020 but remains below the 2017-2018 figures. In the second half of 2021 and into 2022, farmers are expected to accelerate the pace of butchering and decrease the total head of cattle as they respond to higher costs of feed resulting from summer droughts. The expected decline in milk due to fewer cattle should be offset by increased milk production per cow.

The USDA estimates that as of year-end 2021, the average yearly farmer’s price will grow by 3.9% y-o-y to $0.43 per liter due to rallying feed prices. In 2022, the cost of milk should fall by 2.4% in comparison with 2021 to $0.42 per liter thanks to the expected increase in production but will remain higher than the 2020 figures ($0.41 per liter).

Over the last decade, the per capita milk consumption in the U.S., incl. both fresh milk of all kinds and milk used for processing, grew by 6.7% and in 2020 reached 354 kg/person, but the structure of the demand has been changing. Americans continue drinking less milk while consuming more cheese and butter. This long-term shift towards processed dairy products will drive market growth for milk in the mid-term. In Asia, imported produce is becoming highly sought after and this should expand exports of American cheese and other dairy products, while additionally driving demand for milk.

U.S. Milk Production

In 2020, approx. 118M tonnes of milk were produced in the U.S.; picking up by 1.6% compared with 2019 figures. The total output volume increased at an average annual rate of +1.3% from 2012 to 2020; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2014 when the production volume increased by 2.7% year-to-year. Milk production peaked in 2020 and is expected to retain growth in the immediate term.

In value terms, milk production expanded significantly to $127.8B in 2020. The total output value increased at an average annual rate of +4.4% over the period from 2012 to 2020; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Milk production peaked at $130.4B in 2017; however, from 2018 to 2020, production remained at a lower figure.

U.S. Milk Imports

For the third consecutive year, the U.S. recorded growth in purchases abroad of milk, which increased by 7.2% to 19K tonnes in 2020. Overall, imports recorded buoyant growth. The pace of growth appeared the most rapid in 2016 when imports increased by 51% against the previous year. Over the period under review, imports hit record highs in 2020 and are expected to retain growth in years to come (IndexBox estimates).

In value terms, milk imports dropped rapidly to $22M in 2020. Overall, imports posted a strong increase. The pace of growth appeared the most rapid in 2018 when imports increased by 24% year-to-year. As a result, imports reached a peak of $30M. from 2019 to 2020, the growth of imports remained at a lower figure.

In 2020, whole fresh milk (31K tonnes) constituted the largest type of milk supplied to the U.S., with a 68% share of total imports. Moreover, whole fresh milk exceeded the figures recorded for the second-largest type, skim milk of cows (14K tonnes), twofold.

Canada (25K tonnes), Mexico (16K tonnes) and New Zealand (818 tonnes) were the main suppliers of milk imports to the U.S. In value terms, Mexico ($35M), Canada ($25M) and New Zealand ($1.9M) appeared to be the largest milk suppliers to the U.S.

In 2020, the average milk import price amounted to $1,157 per tonne, waning by -21.3% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was New Zealand ($2,270 per tonne), while the price for Canada ($997 per tonne) was amongst the lowest.

Source: IndexBox Platform

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Archives, Global Trade Daily, Imports/Exports

The American Cable Market Will Shoot Up Thanks to Infrastructure Development for Electric Vehicles

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

Electric wires and cables may hit a record demand amid the infrastructure development for electric vehicles in the U.S., for which the Biden administration’s infrastructure bill will allocate $174B. The active deployment of 5G networks and the expansion in the construction sector due to the rush demand for dwellings will also continue driving the market in the medium term.

Key Trends and Insights

The insulated cable and wire market could begin a new era of growth due to the expected increase in demand for infrastructure for electric vehicles in the U.S. In March 2021, the Biden Administration unveiled a plan to stimulate the introduction of electric vehicles, providing for the installation of charging stations throughout the whole country. The plan outlines investing more than $174B in infrastructure creation and development.

The construction boom in the private low-rise building sector will further stimulate the wire market. In the context of an acute shortage of housing amid the rush demand, the intensive pace of new construction will ensure a stable need for cables for the next two years at least.

The intensive construction of a new 5G network for broadband access will be another important driver of the wire market. The development plan for this segment is described in the National Strategy for 5G Security in the U.S., adopted in 2020, which points to allocate $100B for its implementation.

Producer prices for copper wires and cables in the U.S. grew steadily over the last three quarters of last year and prices in April 2021 exceeded their April 2020 level by a rate of 1.3. In the short term, prices are expected to continue growing as demand outstrips the market supply. Production in 2020 fell by 2.7% y-o-y and has not yet fully recovered from market disruptions due to the Covid pandemic. The rise in prices for copper and PVC, raw materials for manufacturing wires and cables, also contributes to the rise in the cost for the final product.

Given the above-mentioned circumstances, the U.S. wire market is expected to post solid gains in the medium, term. Driven by strong demand in the electrocar industry, the construction and the growing telecommunications segment, the market could reach 1.8M tonnes by 2030 (IndexBox estimates).

Insulated Wire and Cable Production in the U.S.

In 2020, the amount of insulated wire and cable produced in the U.S. reduced to 731K tonnes, which is down by -2.7% compared with the year before. Overall, production recorded a perceptible downturn. The most prominent rate of growth was recorded in 2019 with an increase of 6.1% y-o-y. Wire and cable production peaked at 996K tonnes in 2012; however, from 2013 to 2020, production remained at a lower figure.

In value terms, wire and cable production dropped modestly to $9.6B in 2020. Over the period under review, production recorded a perceptible descent. The most prominent rate of growth was recorded in 2019 with an increase of 6.1% year-to-year. Wire and cable production peaked at $12.9B in 2014; however, from 2015 to 2020, production stood at a somewhat lower figure.

Insulated Wire and Cable Imports into the U.S.

In 2020, purchases abroad of insulated wire and cable decreased by -28.1% to 1M tonnes, falling for the second consecutive year after three years of growth. In value terms, wire and cable imports shrank to $18.4B in 2020. The total import value increased at an average annual rate of +2.7% over the period from 2012 to 2020.

In 2020, Mexico (417K tonnes) constituted the largest supplier of wire and cable to the U.S., accounting for a 41% share of total imports. Moreover, wire and cable imports from Mexico exceeded the figures recorded by the second-largest supplier, China (148K tonnes), threefold. Viet Nam (65K tonnes) ranked third in terms of total imports with a 6.3% share.

In value terms, Mexico ($9.4B) constituted the largest supplier of wire and cable to the U.S., comprising 51% of total imports. The second position in the ranking was occupied by China ($2.9B), with a 16% share of total imports. It was followed by Viet Nam, with a 6.1% share.

In 2020, the average wire and cable import price amounted to $17,883 per tonne, increasing by 23% against the previous year. Over the last eight years, it increased at an average annual rate of +3.0%.

Source: IndexBox Platform

strawberry exports
Archives, Global Trade Daily, Imports/Exports

Spain Remains the Export Leader in the Global Strawberry Market

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

Due to the Covid-related restrictions, there was a 2.3% drop in strawberry exports from Spain in 2020. Despite this, Spain keeps its position as an export leader in the global strawberry market. Most Spanish strawberries are marketed in Germany, the UK, France, and other European countries.

Exports from Spain

Strawberry exports from Spain declined to 287K tonnes in 2020, which is down by -2.3% against the year before. The total export volume increased at an average annual rate of +2.5% over the period from 2007 to 2020. Spain comprises near 33% of the global strawberry exports in physical terms.

In value terms, strawberry exports stood at $671M in 2020. The total export value increased at an average annual rate of +2.7% from 2007 to 2020. The most prominent rate of growth was recorded in 2008 when exports increased by 23% y-o-y. Exports peaked at $704M in 2018; however, from 2019 to 2020, exports failed to regain momentum.

Germany (100K tonnes) was the main destination for strawberry exports from Spain, with a 35% share of total exports. Moreover, strawberry exports to Germany exceeded the volume sent to the second major destination, the UK (41K tonnes), twofold. The third position in this ranking was occupied by France (40K tonnes), with a 14% share.

From 2007 to 2020, the average annual rate of growth in terms of volume to Germany totaled +4.8%. Exports to the other major destinations recorded the following average annual rates of export growth: the UK (+5.9% per year) and France (-4.3% per year).

In value terms, the largest markets for strawberry exported from Spain were Germany ($220M), the UK ($116M) and France ($82M), with a combined 62% share of total exports. Italy, the Netherlands, Portugal, Poland and Belgium lagged somewhat behind, together accounting for a further 23%.

The average strawberry export price stood at $2,339 per tonne in 2020 (IndexBox estimates), growing by 3% against the previous year. In general, the export price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2008 when the average export price increased by 17% y-o-y. The export price peaked at $2,678 per tonne in 2011; however, from 2012 to 2020, export prices remained at a lower figure.

Average prices varied somewhat for the major overseas markets. In 2020, the countries with the highest prices were the UK ($2,859 per tonne) and Poland ($2,507 per tonne), while the average price for exports to Italy ($2,005 per tonne) and Belgium ($2,028 per tonne) were amongst the lowest.

From 2007 to 2020, the most notable rate of growth in terms of prices was recorded for supplies to Poland, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Platform