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Record Production in 2022 to Curb Corn Price Growth

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Archives, Global Trade Daily, Imports/Exports

Record Production in 2022 to Curb Corn Price Growth

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

In 2022, corn prices are projected to drop by approximately 10% y/y due to an expected all-time record high global production, which is to reach 1.2B tonnes. This forecast is subject to a number of risks, such as volatile fertilizer and energy prices, high freight rates, biofuel policies and weather conditions.

Corn prices are forecast to ease in 2022 due to a sharp increase in global production. The world’s corn output is to soar by 7% y/y to a record 1.2B tonnes with higher crops in the U.S. and South America. Production in Brazil is expected to rise by 31% y/y to 114M tonnes, fully recovering from the last year’s 15%-drop caused by a drought. Argentine farmers are to harvest 54M tonnes of corn, 5% more than a year earlier. U.S. production will grow by 7% y/y to 384M tonnes.

Crop increases are also forecast in China, the E.U., Indonesia, Mexico, Nigeria, South Africa. Significant output growth is projected in Russia and Ukraine, where corn production is to rise by 8% y/y to 15M tonnes and by 39% y/y to 42M tonnes, respectively.

According to World Bank data, the average annual price for U.S. corn (no. 2, yellow, FOB, U.S. Gulf ports) grew by 57% y-o-y to $260 per tonne in 2021. This year, the price is projected to drop by approx. 10% y/y with sufficient supply, but rising fertilizer and energy prices, logistic tensions, changing biofuel policies and weather conditions still pose risks on price stability.

World’s Largest Corn Importers

In 2020, approx. 146M tonnes of maize were imported worldwide, remaining relatively unchanged against the previous year. In value terms, maize imports stood at $35.9B (IndexBox estimates).

Japan (16M tonnes), Viet Nam (12M tonnes), South Korea (12M tonnes), China (11M tonnes), Egypt (8.5M tonnes), Spain (8.1M tonnes), Colombia (6.2M tonnes), Italy (6.1M tonnes), the Netherlands (5.9M tonnes), Taiwan (Chinese) (4.4M tonnes), Malaysia (3.8M tonnes) and Germany (3.8M tonnes) represented the major importer of maize in the world, generating 67% of total volume. Peru (3.8M tonnes) followed a long way behind the leaders.

The most notable growth rate of purchases, amongst the leading importing countries, was attained by China. Its volume of imports grew twofold in 2020.

In value terms, Japan ($3.3B), China ($2.5B) and Viet Nam ($2.4B) appeared to be the countries with the highest levels of purchases in 2020, together comprising 23% of global imports.

In 2020, the average maize import price amounted to $246 per tonne, stabilizing at the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in Germany ($265 per tonne) and the Netherlands ($224 per tonne), while Colombia ($198 per tonne) and Viet Nam ($198 per tonne) were amongst the lowest. The most notable rate of growth in terms of prices was attained by Germany, while the other global leaders experienced more modest paces of growth in 2020.

Source: IndexBox Platform

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Corn Prices to Lose 10% in 2022, U.S. Exports Double to $16.5B

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

In 2022, the average annual maize price is forecast to drop by 10% y-o-y due to higher global production and lower demand from Asia, after growing by 57% y-o-y to $260 per tonne last year. Thanks to rising corn prices and increased demand for feed grains in Canada, U.S. maize export sales reached $16.5B in January-October 2021, doubling compared to the same period a year earlier.

According to World Bank’s data, the average annual corn price grew by 57% y-o-y to $260 per tonne in 2021. This year, it is expected to decrease by 10% y-o-y with higher output and lower demand for feed use in Asia. At the same time, this forecast is subject to several risks, including explosive energy and fertilizer prices, high freight rates, biofuel policies and weather conditions.

Rising corn prices and high demand for feed grains in Canada stimulated the growth of export value from the U.S. Throughout January-October 2021, total U.S. maize supplies reached 60M tonnes, expanding by 30% compared to the same previous year. In value terms, American corn exports grew twofold, reaching a record $16.5B. USDA predicts that U.S. maize sales to Canada will rise ninefold, surpassing 3M tonnes in 2022. High prices for feed barley in Canada are set to propel the growth of demand for substitutes, including corn.

World’s Largest Corn Suppliers

In 2020, the volume of maize exported worldwide rose notably to 169M tonnes, picking up by 6.4% compared with the previous year’s figure. In value terms, supplies stood at $36.4B.

The shipments of the four significant maize exporters, namely the U.S., Brazil, Argentina and Ukraine, represented more than two-thirds of global volume. Romania (5.7M tonnes), France (4.5M tonnes), Hungary (4M tonnes) and Bulgaria (2.6M tonnes) held a minor share of total exports.

In value terms, the U.S. ($9.6B), Argentina ($6.4B) and Brazil ($5.9B) constituted the countries with the highest levels of supplies in 2020, with a combined 60% share of global exports. These countries were followed by Ukraine, France, Romania, Hungary and Bulgaria, which accounted for 24%.

U.S. Corn Exports in 2020

Maize exports from the U.S. soared to 52M tonnes in 2020, increasing 25% against 2019 figures. In value terms, supplies skyrocketed to $9.6B (IndexBox estimates).

Mexico (15M tonnes), Japan (10M tonnes) and China (6.9M tonnes) were the main destinations of maize exports from the U.S., with a combined 62% share of total volume.

In value terms, the largest markets for maize supplied from the U.S. were Mexico ($2.7B), Japan ($1.9B) and China ($1.2B), together accounting for 61% of total exports.

Source: IndexBox Platform

food supply chain
Archives, Global Logistics, Global Trade Daily, International Trade

The Effect of Supply Chain Crisis on the Food Industry

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March 2020 marked the beginning of unprecedented times for businesses across the world. The COVID-19 pandemic has had deep socio-economic implications for the food industry. It has imposed sudden shocks across the food supply chain, affecting farm production, logistics, food processing, and market demand for food items.

US Food Supply Chain: Disruptions and Implications from COVID-19

The COVID-19 pandemic has brought a new set of challenges that have affected all industries globally. Similarly, the US food supply chain has been deeply impacted due to physical distancing and strict lockdowns. Here is a list of the major stakeholders affected by the pandemic:

Farmers

Since the beginning of the COVID-19 pandemic, farmers have faced distinct challenges like drop-in grain prices, unavailability of skilled labor, and an uncertain future. Farmers are also facing difficulties in managing excess produce, which is creating an imbalance in the supply chain.

Foodservice Distributors

The foodservice industry relies on foodservice distributors for a steady supply of food items. Due to COVID-19, foodservice distributors have been severely affected by supply chain issues and a decrease in demand from restaurants. COVID-19 restrictions and shutdowns led to a decrease in outbound orders. Even though there has been a steady supply of inventory from farmers or manufacturers, distributors still find it difficult to adjust to the sudden change in market dynamics. Foodservice distributors face challenges in storing excess inventory and making physical deliveries. Some distributors have been able to switch to online ordering and delivery services, but these methods are yet to be universally accepted by outlets.

Foodservice Producers

Foodservice producers have faced similar issues as distributors. The global supply chain crisis effect has led to some significant changes for the food industry. Plant utilization has been significantly lower for foodservice producers due to a decrease in demand from the foodservice industry. Most producers have equipment that is configured for delivering goods for the foodservice sector. Reconfiguring or recalibrating the equipment and changing the business model for the retail industry can be highly inefficient.

Consumer and Packaged-goods Companies

Retail manufacturers or packaged goods food businesses face huge challenges due to COVID-19. Even though demand has been steady for retail manufacturers, they have been facing unprecedented challenges. In the retail food manufacturing sector, employees work in close proximity with each other, leading to a spike in COVID-19 cases among workers. The recent surge in COVID-19 infections in meat-processing plants and other retail manufacturing factories has increased the chances of the mass closure of manufacturing plants.

Grocery Retailers

Among all types of food businesses, grocery retailers have witnessed the highest surge in demand. The primary challenge for grocery retailers has been to serve their customers in these challenging times. Grocery retailers and their employees have been overwhelmed with an increase in demand for food items. Additionally, retailers have been cleaning their stores throughout the day, paying hazard pay and huge incentives to adequately compensate staff for their efforts during the pandemic. Many grocery retailers have introduced online ordering and delivery solutions, which has led to a surge in revenue. This has also resulted in consumer complaints about delivery-related issues.

Effects of Pandemic on Food Supply Chain

The restrictions imposed on the foodservice industry due to the pandemic have hurt the food supply chain. Restrictions related to travel between cities, provinces, and countries have led to some significant challenges, affecting producers, consumers, distributors, farmers, and other stakeholders. Food processing units have become hotbeds for the pandemic. Due to the rapid rise in COVID-19 cases among employees, many manufacturing units had to shut their processing plants.

Effects of Pandemic on Consumer Behavior

The COVID-19 pandemic has affected the financial health of the average household as well. Due to financial issues, the food buying behavior of customers has changed drastically. Consumers currently prefer natural food items like vegetables, pulses, whole grains, and olive oil over different types of processed food items.

Effects of Pandemic on Global Food Trade

Food trade policies have also changed across the world. Many countries now restrict exports of essential food items for uninterrupted supply in the domestic market. Export restrictions have also led to a significant drop in prices, leading to losses for farmers or manufacturers.

Strategies for Food Supply Chain

A decentralized approach can be adopted by food manufacturers to avoid drawbacks and risks. Small-scale storage facilities near consumers can reduce storage and transportation costs significantly.

Recommendations to Minimize the Effect of COVID-19

The pandemic has seriously affected food safety, supply, nutrition, and financial health across the supply chain. Strict lockdowns and impositions have threatened the sustainability and growth of food businesses. Here is a list of recommendations that can minimize the effect of COVID-19 on food-related stakeholders:

Recommendations for Small Farmers

Countries can take measures to safeguard the health and finances of agricultural workers. Agri-produce collection centers near major locations can help small-scale farmers to minimize the loss of goods.

Suggestions for Government and Business

Governments can form a pandemic-handling committee to minimize the effects of the COVID-19 pandemic in the food supply chain. Business bodies can also develop advanced solutions and generate funds to help small suppliers, distributors, and retail outlets.

Businesses and individuals with a clear understanding of the challenges are better prepared in the current scenario. The current shifts in consumer spending habits have deeply affected economies across the world. These ripple effects of the pandemic have affected all stakeholders in the food supply chain, including distributors, producers, farmers, manufacturers, and retailers. Protecting their financial well-being and the general economic activity of the foodservice industry is integral to the economy’s recovery as the pandemic nears its end.

__________________________________________________________________

 Author Bio: Damon Shrauner, Senior Sales Consultant and VP on B2B Sales at CKitchen, working in the food service equipment sector since 1994. With his expertise in market analysis, product placement, sales and project management, he will always tell you what to do for the best of your business.

lentils
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Global Lentil Imports Soar to $1.7B

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

Global lentil imports picked up by +25% y-o-y to $1.7B in 2020. India, Turkey and Pakistan remain the largest lentil importers worldwide, accounting for 37% of global import volume. Last year, Egypt, Turkey, Pakistan, Italy, Germany, India, Canada and the U.S. recorded the highest increases in the import volume of lentils. The average lentil import price rose by +19% y-o-y in 2020. Canada and Australia keep leading positions in global lentil exports. 

Global Lentil Imports by Country

In 2020, global imports of lentils stood at 2.9M tonnes, increasing by +4.9% against the previous year’s figure. In value terms, lentil imports skyrocketed +25.1% y-o-y to $1.7B (IndexBox estimates) in 2020.

India represented the major importing country with an import of about 1.1M tonnes, which resulted in 37% of total imports. Turkey (630K tonnes) held the second position in the ranking, distantly followed by Pakistan (194K tonnes) and Sri Lanka (178K tonnes). All these countries together held approx. 35% share of total imports. Canada (103K tonnes), Egypt (86K tonnes), the U.S. (72K tonnes), Italy (62K tonnes), Spain (59K tonnes) and Germany (43K tonnes) followed a long way behind the leaders.

In 2020, lentil imports in Egypt grew nearly twofold, while in Turkey, Pakistan, and Italy, the annual growth rate overcame the 50% figure; Germany and India also posted tangible double-digit growth.

In value terms, the largest lentil importers worldwide were India ($581M), Turkey ($312M) and Pakistan ($104M), with a combined 59% share of global imports.

In 2020, the average lentil import price amounted to $591 per tonne, growing by +19% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was Germany, while Turkey was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Canada, while the other global leaders experienced more modest paces of growth.

Major Suppliers of Lentils

Canada was the key exporter of lentils in the world, with the volume of exports resulting at 3.1M tonnes, which was near 67% of total exports in 2020. It was distantly followed by Australia (661K tonnes), Turkey (406K tonnes) and the U.S. (329K tonnes), together making up a 30% share of total exports.

In value terms, Canada ($1.7B) remains the largest lentil supplier worldwide, comprising 63% of global exports. The second position in the ranking was occupied by Australia ($349M), with a 13% share of global exports. It was followed by Turkey, with a 12% share.

Source: IndexBox Platform

broccoli
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Spanish Cauliflower and Broccoli Exports Rocket to Record Highs

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

Cauliflower and broccoli exports from Spain peaked at $546M, surging by +14% over the last year. Shipments to the UK, Germany and the Netherlands constituted more than half of the total Spanish exports. Norway, Poland and Belgium feature the highest increases in purchases from Spain, while supplies to Italy dramatically dropped.

Cauliflower and Broccoli Exports from Spain

In 2020, approx. 395K tonnes of cauliflower and broccoli were exported from Spain; picking up by 2.5% compared with 2019. In value terms, cauliflower and broccoli exports expanded remarkably to $546M (IndexBox estimates) in 2020.

The UK (99K tonnes), Germany (67K tonnes) and the Netherlands (53K tonnes) were the main destinations of cauliflower and broccoli exports from Spain, with a combined 55% share of total exports. France, Portugal, Poland, Belgium, Denmark, Sweden, Norway, Switzerland and Italy lagged somewhat behind, together comprising a further 34%. In 2020, the biggest increases were in Norway, while shipments for the other leaders experienced more modest paces of growth.

Among the prime countries of destination, Norway (+22.7%), Poland (+17.2%), and Belgium (+12.6%) recorded the highest rates of growth regarding the volume of exports over the last year. France (+8.9%), Portugal (+8.8%), Switzerland (+6.8%) and Germany (+3.5%) featured moderate growth of purchases from Spain, while supplies to Italy (-21.8%), the UK (-0.3%), Denmark (-7.6%) and Sweden (-2.4%) dropped in 2020. Exports to the Netherlands remained relatively stable last year.

In value terms, the UK ($162M), Germany ($86M) and the Netherlands ($74M) constituted the largest markets for cauliflower and broccoli exported from Spain worldwide, with a combined 59% share of total exports. France, Poland, Belgium, Portugal, Norway, Switzerland, Sweden, Denmark and Italy lagged somewhat behind, together comprising a further 31%.

In 2020, the average cauliflower and broccoli export price amounted to $1,382 per tonne, surging by 11% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was Switzerland ($1,726 per tonne), while the average price for exports to Portugal ($664 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Denmark, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Platform

sweet corn
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Thailand, Hungary and France Lead Canned Sweet Corn Exports

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

In 2020, global preserved sweet corn exports rose by +4.1% y-o-y to $1B. Thailand, Hungary and France head the list of the largest exporters worldwide. The average export price for preserved sweet corn remained relatively unchanged in 2020. Germany, the UK, Japan were the prime destinations for imported last year. 

Preserved Sweet Corn Exports by Country

In 2020, the amount of sweet corn prepared or preserved exported worldwide rose modestly to 799K tonnes, increasing by +3.1% against the previous year. In value terms, exports expanded by +4.1% y-o-y to $1B (IndexBox estimates) in 2020.

Thailand (213K tonnes), Hungary (193K tonnes) and France (130K tonnes) represented roughly 67% of total exports of sweet corn prepared or preserved in 2020. The U.S. (70K tonnes) occupied the next position in the ranking, followed by China (57K tonnes). All these countries together occupied near 16% share of total exports. The following exporters – Spain (25K tonnes) and Belgium (22K tonnes) – each amounted to a 5.8% share of total exports.

In value terms, Hungary ($228M), Thailand ($216M) and France ($193M) were the countries with the highest levels of exports in 2020, together accounting for 61% of global exports. France recorded the highest rates of growth regarding the value of exports.

The average export price stood at $1,307 per tonne in 2020, approximately mirroring the previous year. Prices varied noticeably by the country of origin; the country with the highest price was China ($2,244 per tonne), while Thailand ($1,013 per tonne) was amongst the lowest. In, the most notable rate of growth in terms of prices was attained by Thailand, while the other global leaders experienced more modest paces of growth.

Major Importers of Preserved Sweet Corn

In 2020, Germany (85K tonnes), the UK (75K tonnes), Japan (59K tonnes) were the largest importers of preserved sweet corn. They were followed by Russia, South Korea, Spain, Belgium, France, the U.S., Italy, Poland and the Philippines. These twelve countries accounted for 60% of the total global import.

In value terms, the largest preserved sweet corn importing markets worldwide were Germany ($117M), the UK ($107M) and Japan ($97M), with a combined 31% share of global imports. Spain, Belgium, South Korea, Russia, France, Italy, Sweden, Poland, the U.S. and the Philippines lagged somewhat behind, together accounting for a further 32%.

Source: IndexBox Platform

lettuce
Archives, Global Trade Daily, News

Robust Demand for Salad Kits and Organic Food Drives the U.S. Lettuce Market

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

During the pandemic, demand for lettuce in the HoReCa sector fell but was offset by growth in sales to the retail segment. The balance between supply and demand on the market was maintained due to a large lettuce harvest in 2020, an increase in imported supply, and a decline in exports. This enabled prices to remain stable. For the past five years, the share of organic lettuce on the market doubled, reaching 7% and will continue to grow. 

Key Trends and Insights

In the U.S., 2020 was the year of the harvest for leaf lettuce and Romaine lettuce. According to the USDA, production grew by 25% and 11% y-o-y, respectively, while iceberg lettuce production decreased by 8% due to hot weather conditions.

During the pandemic, demand for leaf lettuce in the HoReCa sector fell but was completely balanced out by increased sales in the retail segment. Pre-packaged lettuce was in high demand from households amid lockdowns and the related trend towards increased home cooking. Salad kits with various flavors, herbal aromas and seasonings have been strengthening as a promising trend in the food industry.

Imported lettuce also enjoyed high demand. In 2020, the amount of lettuce and chicory imported into the country rose by 3.1% y-o-y to 376K tonnes. Mexico remains the dominant supplier of lettuce to the U.S., fulfilling 91% of deliveries. Canada provides 8.5% of the total supply, and these two countries nearly cover the entire demand for imported lettuce.

For the past five years, the share of organic lettuce on the American market doubled, reaching approximately 7%. The heightened attention to healthy eating habits is to keep the increase in organic food consumption buoyant throughout the mid-term.

The average retail price for lettuce in 2020 was $0.72 per kg for non-organic and $1.08 per kg for organic. It is forecast that as of yearend 2021, the average price for non-organic lettuce will not surpass 2020 levels, while the price for organic lettuce will slightly increase due to high demand and growing popularity of organic food.

The main driver for market expansion will be due to increased consumption from the growing U.S. population. Further increases in demand for lettuce will be boosted by the HoReCa segment returning to work upon lifting COVID restrictions. Rapidly developing home food-delivery services on the backdrop of the suburb construction boom should also contribute to the market growth.

U.S. Lettuce and Chicory Production

Lettuce and chicory production in the U.S. amounted to 3.6M tonnes (IndexBox estimates) in 2020, standing approx. at the previous year. In value terms, lettuce and chicory production totaled $6B in 2020. The total output value increased at an average annual rate of +1.4% from 2012 to 2020; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period.

U.S. Lettuce and Chicory Imports

In 2020, lettuce and chicory imports amounted to $424M in 2020.

Mexico ($369M) constituted the largest supplier of lettuce and chicory to the U.S., comprising 87% of total imports. The second position in the ranking was occupied by Canada ($50M), with a 12% share of total imports.

In 2020, the average lettuce and chicory import price amounted to $1,128 per tonne, with an increase of 5.6% against the previous year. Average prices varied somewhat amongst the major supplying countries. In 2020, the country with the highest price was Canada ($1,545 per tonne), while the price for Mexico stood at $1,079 per tonne.

Source: IndexBox Platform

Asia-Pacific
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The Vegetable Market in Asia-Pacific to Continue Robust Growth

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

For the seventh consecutive year, the Asia-Pacific vegetable market recorded growth in sales value, which increased by 2.9% to $785.6B in 2019. The market value increased at an average annual rate of +2.7% from 2013 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations in certain years. Over the period under review, the market hit record highs in 2019 and is likely to see gradual growth in the near future.

Consumption by Country

China (622M tonnes) constituted the country with the largest volume of vegetable consumption, comprising approx. 68% of total volume. Moreover, vegetable consumption in China exceeded the figures recorded by the second-largest consumer, India (170M tonnes), fourfold. The third position in this ranking was occupied by Viet Nam (18M tonnes), with a 2% share.

From 2013 to 2019, the average annual rate of growth in terms of volume in China totaled +2.1%. The remaining consuming countries recorded the following average annual rates of consumption growth: India (+2.0% per year) and Viet Nam (+4.4% per year).

In value terms, China ($536.6B) led the market, alone. The second position in the ranking was occupied by India ($92.9B). It was followed by Viet Nam.

In 2019, the highest levels of vegetable per capita consumption was registered in China (427 kg per person), followed by Viet Nam (187 kg per person), India (124 kg per person) and Bangladesh (95 kg per person), while the world average per capita consumption of vegetable was estimated at 216 kg per person.

Market Forecast to 2030

Vegetables constitute one of the world’s basic food items; their production and consumption are widespread almost everywhere in the world. Vegetables are consumed in both fresh and processed form, as ingredients, canned food, etc. The demand for vegetables, therefore, mainly depends on the population growth and its dietary requirements; it is also determined to a certain extent by local household income, as vegetables constitute a staple dietary component. However, as incomes rise from the average figure and above, vegetable consumption is likely to increase at a slower rate than the consumption of more expensive food items (e.g. meat).

Since vegetables constitute staple food items, the impact of the COVID-19 crisis on the demand should not lead to a sharp fall in consumption. Moreover, since most of the common vegetables are grown locally, the risk of the disruption of established supply chains including foreign growers, food handling and packaging intermediaries, as well as the distributor sector, due to asynchronous quarantine measures in different countries, will be less relevant. However, for imported vegetables, this could be a factor that hampers the market growth.

Over 2020-2021, accordingly, the market is set to grow slowly, driven by population growth and the demand for food. In the medium term, the market is expected to continue an upward consumption trend driven by increasing demand for vegetables. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +2.2% for the period from 2019 to 2030, which is projected to bring the market volume to 1,162M tonnes by the end of 2030.

Imports in Asia-Pacific

In 2019, after four years of growth, there was a decline in supplies from abroad of vegetables, when their volume decreased by -0.5% to 7.5M tonnes. The total import volume increased at an average annual rate of +1.9% from 2013 to 2019; the trend pattern remained relatively stable, with only minor fluctuations in certain years. Over the period under review, imports attained the maximum at 7.5M tonnes in 2018 and then dropped modestly in the following year. In value terms, vegetable imports shrank modestly to $4.4B (IndexBox estimates) in 2019.

Imports by Country

Malaysia (1,270K tonnes), Hong Kong SAR (856K tonnes), Japan (775K tonnes) and Indonesia (756K tonnes) represented roughly 49% of total imports of vegetables in 2019. Singapore (476K tonnes) held a 6.4% share (based on tonnes) of total imports, which put it in second place, followed by Thailand (5.7%), Sri Lanka (5.4%) and Bangladesh (4.7%). Nepal (304K tonnes), Taiwan (Chinese) (269K tonnes), Pakistan (261K tonnes), South Korea (261K tonnes) and Afghanistan (208K tonnes) followed a long way behind the leaders.

From 2013 to 2019, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by Bangladesh, while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest vegetable importing markets in Asia-Pacific were Japan ($742M), Indonesia ($609M) and Malaysia ($584M), together accounting for 44% of total imports. These countries were followed by Hong Kong SAR, Singapore, Thailand, Taiwan (Chinese), South Korea, Bangladesh, Pakistan, Sri Lanka, Afghanistan and Nepal, which together accounted for a further 46%.

Source: IndexBox AI Platform

Strawberries
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USTR Requests That ITC Conduct Section 332 Investigation to “Monitor and Investigate” Imports of Strawberries and Bell Peppers

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In a November 3, 2020 letter, U.S. Trade Representative (“USTR”) Robert E. Lighthizer requested that the International Trade Commission (“ITC”) “monitor and investigate imports of strawberries and bell peppers” pursuant to section 332(g) of the Tariff Act of 1930. Section 332 is a provision that allows USTR to ask for a fact-finding investigation by the ITC, but does not result directly in any trade relief. USTR’s request follows the September 1, 2020 announcement of an interagency plan to address the threat of increased imports of perishable fruits and vegetables to American producers.

USTR’s request to monitor and investigate imports of strawberries and bell peppers is likely a precursor to further trade actions. Such actions could include a government self-initiated section 201 case initially brought at the ITC, asking for additional quotas or tariffs, or other actions, which must then be ultimately decided by the President. This type of case is now ongoing regarding imports of blueberries.

Whether a new Biden Administration would be interested in taking up a self-initiated case like this one is unknown. However, even if a Biden Administration does not self-initiate a case, the U.S. producers also could bring various types of actions, relying in large part on the information developed by the ITC as part of this section 332 study. According to USTR itself, the ITC’s collection and analysis of information would expedite the initiation of investigations.

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

-Fresh or chilled strawberries: 0810.10;

-Fresh or chilled bell peppers:

-60.4015,

-60.4025,

-60.4065,

-and 0709.60.4085

_________________________________________________________

Jeffrey Neeley is a Washington-based partner with the law firm Husch Blackwell LLP. He leads the firm’s International Trade Remedies team.

Julia Banegas is an attorney in Husch Blackwell LLP’s Washington, D.C. office.

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

green bean
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Global Green Bean Market Grows Robustly to $31B

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

The global green bean market was estimated at $31.1B in 2019, surging by 4.7% 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 +1.3% from 2013 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations throughout the analyzed period.

Taking into account the closure of the HoReCa sector worldwide due to the pandemic, a decrease in consumer incomes and possible disruptions in the work of international supply chains, global green bean consumption is expected to stagnate in 2020. Afterward, the start of gradual market growth is expected as the global economy recovers from the effects of the pandemic. The market is forecast to expand with an anticipated CAGR of +1.3% for the period from 2019 to 2030, which is projected to bring the market volume to 31M tonnes by the end of 2030.

Consumption by Country

China (21M tonnes) remains the largest green bean consuming country worldwide, comprising approx. 75% of total volume. Moreover, green bean consumption in China exceeded the figures recorded by the second-largest consumer, Indonesia (946K tonnes), more than tenfold. The U.S. (862K tonnes) ranked third in terms of total consumption with a 3.1% share.

From 2013 to 2019, the average annual rate of growth in terms of volume in China amounted to +3.6%. The remaining consuming countries recorded the following average annual rates of consumption growth: Indonesia (+1.2% per year) and the U.S. (-0.3% per year).

In value terms, China ($19.1B) led the market, alone. The second position in the ranking was occupied by Indonesia ($2.1B). It was followed by the U.S.

The countries with the highest levels of green bean per capita consumption in 2019 were China (14 kg per person), Turkey (8.18 kg per person) and Indonesia (3.49 kg per person).

Production

In 2019, approx. 27M tonnes of green beans were produced worldwide; rising by 2.8% compared with the previous year’s figure. The total output volume increased at an average annual rate of +2.8% over the period from 2013 to 2019. Over the period under review, global production attained the maximum volume in 2019 and is likely to continue growing in years to come. The generally positive trend in terms output was largely conditioned by a moderate increase of the harvested area and a pronounced expansion in yield figures.

Production By Country

China (21M tonnes) constituted the country with the largest volume of green bean production, comprising approx. 75% of total volume. Moreover, green bean production in China exceeded the figures recorded by the second-largest producer, Indonesia (946K tonnes), more than tenfold. The third position in this ranking was occupied by the U.S. (813K tonnes), with a 3% share.

In China, green bean production increased at an average annual rate of +3.6% over the period from 2013-2019. In the other countries, the average annual rates were as follows: Indonesia (+1.2% per year) and the U.S. (-0.6% per year).

Harvested Area and Yield

The global green bean harvested area was estimated at 1.8M ha in 2019, approximately mirroring the previous year’s figure. In 2019, the global average yield of green beans reached 15 tonnes per ha, growing by 2.1% compared with the year before. The yield figure increased at an average annual rate of +2.1% from 2013 to 2019; the trend pattern remained consistent, with only minor fluctuations being observed in certain years.

Imports

In 2019, the amount of green beans imported worldwide fell modestly to 597K tonnes, waning by -3.6% against 2018. Over the period under review, imports, however, showed a relatively flat trend pattern. Global imports peaked at 620K tonnes in 2018, and then fell slightly in the following year. In value terms, green bean imports shrank to $998M (IndexBox estimates) in 2019.

Imports by Country

The countries with the highest levels of green bean imports in 2019 were Spain (110K tonnes), Belgium (88K tonnes), the U.S. (78K tonnes), the Netherlands (66K tonnes), France (49K tonnes), the UK (37K tonnes), Germany (25K tonnes), Canada (21K tonnes) and Italy (21K tonnes), together reaching 83% of total import. Madagascar (12K tonnes) followed a long way behind the leaders.

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

In value terms, Spain ($164M), the U.S. ($127M) and the Netherlands ($125M) constituted the countries with the highest levels of imports in 2019, with a combined 42% share of global imports. These countries were followed by the UK, France, Canada, Belgium, Germany, Italy and Madagascar, which together accounted for a further 46%.

Import Prices by Country

In 2019, the average green bean import price amounted to $1,671 per tonne, rising by 1.8% against the previous year. Over the period under review, the import price continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2014 an increase of 3.6% y-o-y. As a result, import price reached the peak level of $1,705 per tonne; afterward, it flattened through to 2019.

There were significant differences in the average prices amongst the major importing countries. In 2019, the country with the highest price was Canada ($3,283 per tonne), while Madagascar ($241 per tonne) was amongst the lowest.

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

Source: IndexBox AI Platform