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Competitors Link Arms and Embrace Technology’s Promise

technology

Competitors Link Arms and Embrace Technology’s Promise

Overcapacity. Low freight rates. Security problems. Data inadequacies. Stringent environmental regulations. When it comes to moving containerized freight around the globe, third-party logistics companies (3PLs) have a lot to deal with.

However, like a guardian angel, blockchain has arrived to solve all these issues and more for the 3PL industry, which stands to save billions of dollars annually through increased efficiency, improved processes and a digital transformation.

Blockchain technology, while still in its innovative infancy, has “a lot of potential” to facilitate trade, according to a report by Christine McDaniel, a senior research fellow at George Mason University’s Mercatus Center, Hanna C. Norberg, the founder of Trade Economista and the university that was released in May.

In “Can Blockchain Technology Facilitate International Trade?” McDaniel and Norberg explored blockchain technology’s usefulness in easing trade finance, improving customs procedures and tracking the provenance of goods. Their conclusion: “Adaptability, interoperability, and a policy environment that welcomes experimentation will be essential if the U.S. economy is to realize the potential benefits of blockchain technology across the international trade landscape.”

They also point out that numerous private- and public-sector efforts are underway to explore the benefits of blockchain technology. Financial institutions are experimenting with blockchain to increase access and decrease trade-finance costs.

The shipping industry is working with those along the supply chain and with customs officials to see how a distributed digital ledger can facilitate the transparent movement of goods across borders and seas. Companies and retailers are exploring ways to track their own supply chains so they can communicate tracking and origin information to consumers who increasingly demand such information.

Among those that are all-in with blockchain is Blockshipping, a Danish concern that was launched in May 2018 with a goal of developing the world’s first freight container registry. The startup claims its blockchain-based Global Shared Container Platform, which provides a real-time registry of 27 million containers, could save the industry $5.7 billion annually. For that to work, parties across the industry must apply sensors to all containers.

The same month that Blockshipping announced its arrival, global shipping giants CMA CGM and the Mediterranean Shipping Co. joined TradeLens, the blockchain-based digital shipping platform developed three years ago by A.P. Moller-Maersk and IBM. TradeLens is an open and neutral blockchain platform that promotes an efficient, transparent and secure exchange of information to improve collaboration between different stakeholders within the supply chain.

Ironically, CMA CGM and Hapag-Lloyd had criticized the workings of TradeLens in 2018, stating that for a blockchain-based platform to succeed within the industry, it would need to have a common standard. With CMA CGM and MSC now having joined TradeLens, the platform accounts for shipping data of over half the number of container lines that sail across international waters.

Surgere is a North Canton, Ohio-based digital supply chain and packaging specialist whose clients include Nissan and CEVA Logistics. In June, Surgere announced it had joined the Blockchain in Transport Alliance (Bita), a Chattanooga, Tennessee-based organization with nearly 500 members in more than 25 countries that collectively generate more than $1 trillion annually. The alliance helps develop industry standards, encourage the use of new solutions and educate its members who are mostly drawn from the freight, transportation and logistics sectors.

“Blockchain enables instant visibility of inventory transactions, captured by Surgere’s extremely accurate RFID solutions, which can be immediately and collectively processed throughout the supply chain,” said Rusty Coleman, Surgere’s vice-president of Digital Transformation, in the Bita announcement. “That visibility can remove artificially created demand patterns and make visible smooth and continuous demand for tier [suppliers] near real-time.”

Representatives from NBSF Railway, Daimler, Delta, J.B. Hunt, FedEx, Transplace and UPS are on the Bita board of directors, whose Standards Council chairman is Dale Chrystie, FedEx’s business strategist and blockchain fellow. “This is not a process improvement initiative; this is a breakthrough discussion,” Chrystie said from the stage of the Blockchain Revolution Global conference in Toronto on April 25. “This is a different way to think about how global clearance looks in the future.”

The notion that competitors are joining hands when it comes to the promise of blockchain was demonstrated by the fact that the FedEx executive was joined by Eugene Laney, head of international government affairs for DHL USA and Mahesh Sahasranaman, principal architect at UPS Supply Chain Solutions, in a discussion with Don Tapscott, executive chairman of the Blockchain Research Institute. Each agreed there is a common interest in embracing uniform standards for blockchain and getting governments on board with the technology.

“This is an issue that must be looked at with a global viewpoint,” Chrystie said. “These dots are going to connect. The question is how are you going to accelerate that process.”

Here is a deeper dive into ways blockchain can revolutionize the industry, according to the “Can Blockchain Technology Facilitate International Trade?” report from George Mason University’s Mercatus Center.

Trade and Finance

Blockchain could reduce the expense and time required to facilitate trade that depends on third-party lending or insurance. Such trade accounts for about 80 percent of global trade. This reduction of expense and time will be especially important for small and medium-sized enterprises that may face restrictions to accessing credit or for firms in countries with less developed finance markets.

Customs Procedures

The technology could reduce costs associated with obtaining import and export licenses, creating and verifying the accuracy of cargo and shipping documents, and making customs declarations. Blockchain could make a positive contribution to expediting customs procedures. The total impact of those procedures on global trade volumes and economic output is estimated to be greater than that of tariffs.

Tracking the Origin of Goods

Blockchain could improve how producers and retailers manage their supply chains by providing real-time information on the movement and origin of goods. Blockchain designed for trade should disallow anonymity. If such a design were to be widely adopted, it might improve detection of illicit trade flows and help deter illegitimate efforts to circumvent trade rules. A design without anonymity could aid customs and law enforcement while easing the flow of legitimate trade.

trade

How U.S. Trade Policies are Speeding the Development of a Multi-Polar Global Economy

Several years in to the multi-front trade conflict led by the current U.S. administration, the world economy teeters on the edge of a possible recession.  The International Monetary Fund (IMF) estimates that up to $700 billion in global trade could be wiped off the books by the end of next year due to the trade war.  Much of the direct loss, of course, is tied to reduced trade between the U.S. and China, but other trading regions, such as the rest of Asia and Europe, are impacted by this global slowdown.  How is this shaping future trade flows?

Of course, there are some immediate winners in this tussle between the two economic giants.  Countries such as Mexico and Vietnam have seen sharp increase in trade as businesses scramble to find new production sites that would allow them to duck tariffs. Hidden behind these headlines, however, is perhaps a more important story; the rapid development of a multi-polar global economy.

Observers wringing their hands over the U.S.-China trade dispute may have missed what else is going on in the world.  Europe has been negotiating trade agreements at a rapid clip, finalizing deals with Canada, Japan, Singapore, Vietnam, several African regions and South America (MERCOSUR) over the last three years.  Africa is launching the Africa Continental Free Trade Area (AfCFTA), a 54-nation trade block that is hoped will dramatically increase inter-African trade. After a snub from the U.S., the Trans-Pacific Partnership (TPP) was retitled the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and is now an active free trade area among 11 partner nations.  Asian countries are considering a 16-nation trade pact called the Regional Comprehensive Economic Partnership (RCEP).  In brief, world leaders are not sitting on their hands waiting for the U.S.-China dispute to get resolved.  They are seizing opportunities to trade elsewhere.

World demographics make this multi-polar trading system inevitable.  Despite the United States’ tremendous economic power, it represents less than five percent of the world population. Although it is a wealthy sliver of the overall market, that means that 95% of the world’s consumers still reside elsewhere.  Over the next few decades, rapid population growth in Asia and Africa will continue to change these market numbers, with 79% of the world’s consumers residing in Africa or Asia by 2050. The global middle class will continue to grow outside of ‘traditional markets’ and by 2030, over half of the world population will be considered middle class.  Some estimates suggesting that over 90% of future middle class growth will come in Asia and Africa. 

This dramatic surge in wealth and consumer spending power outside of Europe, the U.S. and Japan demands more infrastructure to support logistics.  China’s initiatives to help itself carve out a primary role in developing these new markets through the Belt and Road program are well known, but Europe has also jumped into the seize a piece of the action, especially in Africa, and programs to upgrade infrastructure at the state level are fueling building from South America to the Philippines. 

It’s my expectation global trade will become even more fragmented over the next decades,” notes European logistics expert Louis Coenders, owner of the Dutch advising firm De Transportheker, which has been consulting on transportation, warehousing, and global distribution since 2010 and has stressed to clients the growing importance of diversity in logistics as the world becomes multipolar.  “You cannot rely on one single source. From a risk management perspective, it’s never smart to put all your eggs into one basket. That also applies to international trade.”  Coenders further noted that the growing middle class in places like Eastern Europe, Asia and Africa will encourage infrastructure changes to bring products into these markets as consumer spending rises.  For the moment China has an edge into many of these areas, as illustrated by the first train shipments from Alibaba arriving into Liege, Belgium just last week as twice-a-week rail shipments are now sent directly from China to the EU courtesy of the improved rail system.

When the U.S. resolves its trade disputes with China (and potentially the EU, Turkey, Russia and other targets of the current administration), it will find that the unintended consequence of this long-term conflict is that the world has by necessity sped up economic exchanges, and adjusted trading systems and flows to accommodate this new multi-polar world.  While some of the trade may ‘come back’ to the United States, the changes in world population and fast-paced creation of new free trade blocks outside of North America means that other markets will seize this opportunity to deepen their trade relations and the U.S. will find itself in a more competitive and varied trading environment. This change was inevitable, but the recent trade war has sped up its development.  Agile, strategic companies will react to this market change by diversifying and partnering with colleagues in the growing markets of Africa and Asia. Those that are slow to change will find it hard to remain competitive in this brave new trade world.

_________________________________________________________________

Kirk Samson is the owner of Samson Atlantic LLC, a Chicago-based international business consulting company which offers market research, political risk assessment, and international expansion assistance.  Mr. Samson is a former U.S. diplomat and international law advisor who lived and worked in ten different countries.

production

The Countries Leading the Way in the Future of Production

The First Industrial Revolution dates back to the 18th century, with the manufacturing and production process evolving significantly to improve efficiency. Since then, the world has gone through a series of changes with the present-day seeing us in full swing of the world’s Fourth Industrial Revolution. 

Using data from the World Economic Forum’s ‘Readiness for the Future of Production’ report, RS Components have taken a look at the countries that are leading the way when it comes to driving production forward. The six main drivers are ‘Technology & Innovation’, ‘Human Capital’, ‘Global Trade & Investment’, ‘Institutional Framework’, ‘Sustainable Resources’, and ‘Demand Environment’. See how each country compares when it comes to being ready to produce more products, technologies, and goods here.

The 21st century is a truly digital age, with technology now intertwined and cemented into both our personal and professional lives. Over the last two decades, in particular, technology has become increasingly advanced and has seen the emergence of the Fourth Industrial Revolution. Complicated and impressive technologies such as artificial intelligence (AI), robotics, the Internet of Things (IoT), 3D printing, genetic engineering, and quantum computing have all emerged and are being used across the globe in a variety of industries, businesses and processes.

As a result of the new technological age, the speed, efficiency, and accuracy of production levels have improved astronomically, with less room for human error as machinery takes over, making production levels much faster and hassle-free.  

With the rise of these advancements, it is important for countries and businesses across all industries to be tapping into these changes to keep up with the future of production. But which countries are leading the way?

RS Components have produced a graphic analyzing data from the World Economic Forum’s Readiness for the Future of Production report, to reveal the countries leading the way when it comes to driving production forward. With each country analyzed by a series of metrics including global trade and investment, institutional framework, sustainable resources, demand environment, and emerging technologies, the top 10 countries leading production levels forward have been scored out of 10.

The top 10 countries driving the future of production include:

The US takes the crown as the leading country in the world driving the future of production forward. Scoring at the top of the leaderboard across all metrics excluding Sustainable Resources and Institutional Framework, the US holds an overall score of 8.16 out of 10. The US is renowned for its innovation and holds an advanced, connected and secure technological platform that allows production to drive forward in the most efficient way possible.

Singapore ranks as the second country driving the future of production and the UK sits at fourth place with a score of 7.84. Singapore sits as one of the world’s leading chemical manufacturing sites, with over 100 global petroleum, petrochemical and specialty chemical companies situated on 12 square miles of land. Singapore today sits as the world’s fifth-largest refinery export hub and amongst the top 10 global chemical hubs by export volume. Involved in these systems includes advancements in manufacturing from robots, to predictive analytics and artificial intelligence. Singapore, like the US, is a key driver in testing, experimenting and trialing the latest technologies. In addition, manufacturing continues to contribute around 20% to Singapore’s GDP.

The importance of having the right technological foundations 

In order for production levels to thrive, it is crucial that technological foundations are cemented in supply chains across the globe. For example, in a warehouse, the speed and availability of the internet is crucial when the Internet of Things is being adopted on the factory floor. In addition, it is also greatly important for businesses and industries to have strong, connected cybersecurity systems to ensure digital security is maintained to a high standard. Having the technological foundations of this, like the US, allows the nation to drive forward technologies to increase production levels.

In addition, in order to ensure these new innovations are implemented effectively, it is crucial that employees have a good understanding of the technology they are interacting with on a daily basis, as the skills required of workers will evolve with the new advancements.

Combined, industries and countries will be able to adapt rapidly emerging technologies into their production lives, which will have a global impact on both businesses and consumers across the world.

Global Cinnamon Market 2019 – Imports to India Grow Robustly

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

The global cinnamon market revenue amounted to $1.1B in 2018, dropping by -9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). In general, the total market indicated a remarkable expansion from 2007 to 2018: its value increased at an average annual rate of +2.0% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the cinnamon consumption decreased by -19.8% against 2014 indices. The pace of growth appeared the most rapid in 2010, when the market value increased by 36% y-o-y. Global cinnamon consumption peaked at $1.3B in 2014; however, from 2015 to 2018, consumption failed to regain its momentum.

Production 2007-2018

Global cinnamon production totaled 237K tonnes in 2018, going up by 4% against the previous year. The total output volume increased at an average annual rate of +1.7% from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being recorded throughout the analyzed period.

Exports 2007-2018

In 2018, approx. 145K tonnes of cinnamon (canella) were exported worldwide; declining by -18.1% against the previous year. In general, the total exports indicated a moderate increase from 2007 to 2018: its volume increased at an average annual rate of +2.2% over the last eleven year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. In value terms, cinnamon exports totaled $580M (IndexBox estimates) in 2018. Over the period under review, cinnamon exports, however, continue to indicate a remarkable expansion. The pace of growth was the most pronounced in 2011, when exports increased by 33% against the previous year. Over the period under review, global cinnamon exports reached their peak figure at $605M in 2017, and then declined slightly in the following year.

Exports by Country

In 2018, Viet Nam (44K tonnes) and Indonesia (41K tonnes) were the major exporters of cinnamon (canella) around the world, together accounting for near 59% of total exports. It was distantly followed by China (25K tonnes) and Sri Lanka (17K tonnes), together creating 29% share of total exports. The Netherlands (5.2K tonnes), Madagascar (2.7K tonnes) and the U.S. (2.3K 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 Madagascar, while the other global leaders experienced more modest paces of growth.

In value terms, the largest cinnamon markets worldwide were Sri Lanka ($191M), Indonesia ($141M) and Viet Nam ($118M), together accounting for 78% of global exports. These countries were followed by China, the Netherlands, the U.S. and Madagascar, which together accounted for a further 15%.

Export Prices by Country

The average cinnamon export price stood at $4,003 per tonne in 2018, surging by 17% against the previous year. Over the period under review, the export price indicated a remarkable increase from 2007 to 2018: its price increased at an average annual rate of +7.7% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the cinnamon export price increased by +104.6% against 2010 indices. There were significant differences in the average export prices amongst the major exporting countries. In 2018, the country with the highest export price was Sri Lanka ($11,358 per tonne), while China ($1,843 per tonne) was amongst the lowest.

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

Imports 2007-2018

In 2018, the global cinnamon imports stood at 167K tonnes, lowering by -4.7% against the previous year.In value terms, cinnamon imports stood at $587M (IndexBox estimates) in 2018.

Imports by Country

In 2018, India (39K tonnes), distantly followed by the U.S. (20K tonnes), Mexico (11K tonnes) and the Netherlands (7.7K tonnes) were the key importers of cinnamon (canella), together making up 47% of total imports. Bangladesh (7K tonnes), Saudi Arabia (5.5K tonnes), the United Arab Emirates (4.6K tonnes), Pakistan (4.4K tonnes), Iran (3.9K tonnes), Brazil (3.2K tonnes), Germany (3K tonnes) and Viet Nam (3K tonnes) held a relatively small share 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 Viet Nam, while the other global leaders experienced more modest paces of growth.

In value terms, the largest cinnamon importing markets worldwide were Mexico ($97M), India ($84M) and the U.S. ($72M), together accounting for 43% of global imports. The Netherlands, Bangladesh, Germany, Brazil, Saudi Arabia, the United Arab Emirates, Viet Nam, Pakistan and Iran lagged somewhat behind, together accounting for a further 17%.

Import Prices by Country

The average cinnamon import price stood at $3,510 per tonne in 2018, surging by 3.6% against the previous year. Over the period under review, the import price indicated a remarkable increase from 2007 to 2018: its price increased at an average annual rate of +6.8% 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 cinnamon import price increased by +39.1% against 2013 indices. Import prices varied noticeably by the country of destination; the country with the highest import price was Mexico ($8,610 per tonne), while Bangladesh ($1,717 per tonne) was amongst the lowest.

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

Source: IndexBox AI Platform

persimmon

Persimmon Market in the Middle East – Key Insights

IndexBox has just published a new report, the Middle East – Persimmons – Market Analysis, Forecast, Size, Trends and Insights. Here is a summary of the report’s key findings.

The revenue of the persimmon market in Middle East amounted to $75M in 2017, growing by 10% 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 total market indicated a remarkable expansion from 2012 to 2017: its value increased at an average annual rate of +9.4% over the last five years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period.

Based on 2017 figures, the persimmon consumption increased by +72.2% against 2012 indices. The most prominent rate of growth was recorded in 2013, when it surged by 32% year-to-year. Over the period under review, the persimmon market reached its peak figure level in 2017, and is likely to see steady growth in the immediate term.

Production in the Middle East

In 2017, the amount of persimmons produced in Middle East stood at 60K tonnes, growing by 2.4% against the previous year. The total output volume increased at an average annual rate of +4.4% from 2012 to 2017; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years.

Persimmon Exports

The exports totaled 7.6K tonnes in 2017, rising by 21% against the previous year. The persimmon exports continue to indicate a drastic decrease. In value terms, persimmon exports stood at $12M (IndexBox estimates) in 2017.

Exports by Country

Israel was the key exporting countries with an export of around 5.5K tonnes, which amounted to 72% of total exports. It was distantly followed by Iran (1.1K tonnes) and the United Arab Emirates (572 tonnes), together constituting 21% share of total exports. Lebanon (300 tonnes) held the minor share of total exports.

From 2012 to 2017, average annual rates of growth with regard to persimmon exports from Israel stood at -13.3%. At the same time, the United Arab Emirates (+285.1%) and Iran (+43.6%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest growing exporter in Middle East, with a CAGR of +285.1% from 2012-2017. By contrast, Lebanon (-30.0%) illustrated a downward trend over the same period. While the share of Israel (75%) and Lebanon (19%) increased significantly in terms of the global exports from 2012-2017, the share of the United Arab Emirates (-7.5%) and Iran (-11.7%) displayed negative dynamics.

In value terms, Israel ($11M) remains the largest persimmon supplier in Middle East, comprising 91% of global exports. The second position in the ranking was occupied by the United Arab Emirates ($406K), with a 3.5% share of global exports. It was followed by Iran, with a 3.2% share.

Export Prices by Country

In 2017, the persimmon export price in Middle East amounted to $1.5 per kg, increasing by 13% against the previous year. The the persimmon export price continues to indicate a relatively flat trend pattern.

Export prices varied noticeably by the country of destination; the country with the highest export price was Israel ($1.9 per kg), while Iran ($353 per tonne) was amongst the lowest.

From 2012 to 2017, the most notable rate of growth in terms of export prices was attained by Israel (+3.1% per year), while the other leaders experienced mixed trends in the export price figures.

Persimmon Imports

In 2017, persimmon imports in Middle East amounted to 9K tonnes, rising by 2.5% against the previous year. The persimmon imports continue to indicate a strong expansion. In value terms, persimmon imports stood at $13M (IndexBox estimates) in 2017.

Imports by Country

Saudi Arabia was the largest importer of persimmons in Middle East, with the volume of imports accounting for 3.9K tonnes, which was approx. 43% of total imports in 2017. Jordan (2.5K tonnes) held the second position in the ranking, followed by Palestine (1.9K tonnes). All these countries together occupied approx. 50% share of total imports. The following importers – the United Arab Emirates (255 tonnes) and Bahrain (193 tonnes) together made up 5% of total imports.

From 2012 to 2017, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Bahrain (+55.3% per year), while the other leaders experienced more modest paces of growth.

In value terms, Saudi Arabia ($5.1M), Jordan ($3.7M) and Palestine ($2.7M) constituted the countries with the highest levels of imports in 2017, together comprising 92% of total imports. These countries were followed by the United Arab Emirates and Bahrain, which together accounted for a further 6.2%.

Import Prices by Country

In 2017, the persimmon import price in Middle East amounted to $1.4 per kg, coming down by -2.1% against the previous year. The import price indicated a strong increase from 2012 to 2017: its price increased at an average annual rate of +12.9% over the last five year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2017 figures, the persimmon import price decreased by -3.8% against 2015 indices.

There were significant differences in the average import prices amongst the major importing countries. In 2017, the country with the highest import price was the United Arab Emirates ($2 per kg), while Saudi Arabia ($1.3 per kg) was amongst the lowest.

From 2012 to 2017, the most notable rate of growth in terms of import prices was attained by Saudi Arabia (+23.0% per year), while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Sausage Market in the USA – Key Insights

IndexBox has just published a new report, the U.S. Sausage, Canned Meat, And Meat By-Product Market. Analysis And Forecast to 2025. Here is a summary of the report’s key findings.

The revenue of the sausage market in the U.S. amounted to $4B in 2018, dropping by -7.9% 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).

Overall, sausage consumption continues to indicate an abrupt reduction. The pace of growth was the most pronounced in 2014, when the market value increased by -0.8% y-o-y. Over the period under review, the sausage market reached its peak figure level at $6B in 2013; however, from 2014 to 2018, consumption stood at a somewhat lower figure.

Sausage Exports

Exports from the USA

In 2018, the amount of sausage, canned meat, and meat by-product exported from the U.S. stood at 852K tonnes, growing by 15% against the previous year. Overall, the total exports indicated a prominent expansion from 2013 to 2018: its volume increased at an average annual rate of +4.4% over the last five year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, the sausage exports increased by +64.3% against 2015 indices.

In value terms, sausage exports totaled $527M (IndexBox estimates) in 2018.

Exports by Country

Indonesia (216K tonnes), Singapore (160K tonnes) and China (84K tonnes) were the main destinations of sausage exports from the U.S., with a combined 54% share of total exports.

From 2013 to 2018, the most notable rate of growth in terms of exports, amongst the main countries of destination, was attained by Singapore (+763.0% per year), while the other leaders experienced more modest paces of growth.

In value terms, Singapore ($111M), Indonesia ($105M) and China ($58M) appeared to be the largest markets for sausage exported from the U.S. worldwide, together comprising 52% of total exports.

Export Prices by Country

The average sausage export price stood at $618 per tonne in 2018, reducing by -8.2% against the previous year. In general, the sausage export price continues to indicate a moderate slump. The growth pace was the most rapid in 2017, an increase of 6.6% year-to-year. Over the period under review, the average export prices for sausage, canned meat, and meat by-product reached their peak figure at $697 per tonne in 2013; however, from 2014 to 2018, export prices remained at a lower figure.

There were significant differences in the average export prices for the major foreign markets. In 2018, the country with the highest export price was Honduras ($901 per tonne), while the average price for exports to the Philippines ($419 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of export prices was recorded for supplies to the UK (+13.3% per year), while the export prices for the other major destinations experienced more modest paces of growth.

Sausage Imports

Imports into the USA

Sausage imports into the U.S. stood at 258K tonnes in 2018, jumping by 26% against the previous year.

In value terms, sausage imports stood at $533M (IndexBox estimates) in 2018.

Imports by Country

In 2018, Australia (99K tonnes) constituted the largest supplier of sausage to the U.S., accounting for a 38% share of total imports. Moreover, sausage imports from Australia exceeded the figures recorded by the second largest supplier, New Zealand (46K tonnes), twofold. China (22K tonnes) ranked third in terms of total imports with a 8.6% share.

From 2013 to 2018, the average annual growth rate of volume from Australia amounted to +19.6%. The remaining supplying countries recorded the following average annual rates of imports growth: New Zealand (-5.7% per year) and China (+22.3% per year).

In value terms, China ($135M), Australia ($121M) and New Zealand ($99M) appeared to be the largest sausage suppliers to the U.S., with a combined 67% share of total imports. Brazil, France, Belgium, India, Canada, Denmark, Italy and Chile lagged somewhat behind, together accounting for a further 22%.

Import Prices by Country

In 2018, the average sausage import price amounted to $2.1 per kg, going up by 10% against the previous year. Over the last five year period, it increased at an average annual rate of +2.8%. The growth pace was the most rapid in 2018, an increase of 10% year-to-year. In that year, the average import prices for sausage, canned meat, and meat by-product reached their peak level, and is likely to continue its growth in the immediate term.

There were significant differences in the average import prices amongst the major supplying countries. In 2018, the country with the highest import price was China ($6.1 per kg), while the price for Canada ($506 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of import prices was attained by Belgium (+21.0% per year), while the import prices for the other major suppliers experienced more modest paces of growth.

Companies Mentioned in the Report

Darling Ingredients, Griffin Industries, Baker Commodities, R U K Ltd, Neatsfoot Oil Refineries Corp, Geo. Pfau’s Sons Company, Inland Products, Hrr Enterprises, Ace Grease Service, Texas By-Products Partnership, Park West Enterprises, Tallowmasters, Kruger Commodities, Mendota Agri-Products, Riegel By-Products Co, Valley By Products, Marine Polymer Technologies, Kane-Miller Corp, Sanimax Ato, Hahn & Phillips Grease Company, Nupro Industries Corporation, W B Riggins Tallow Co, H.T.C. Industries, North State Rendering, Co., Nevada Byproducts, Istamer, Simmons Feed Ingredients

Source: IndexBox AI Platform