Industry News - wk ending 15 Apr '22
Potato News - North America
Canadian farmers worry about seeding season as fertilizer costs soar
Farmers across the Atlantic region in Canada say their operating costs have increased significantly with fertilizer imports from Russia under sanction, and some are looking for alternatives, according to a recent CBC News report.
Thousands of Tons of Maine Potatoes Shipped to Other US States Short on Spuds
The spuds made their way more than 4,000 kilometers for processing, riding in climate-controlled rail cars, according to Huff Post. About 9,500 tons of potatoes, virtually all from growers in northern Maine, flowed through a rail-connected warehouse owned by LaJoie Growers LLC.
Lamb Weston sees ‘choppy’ demand in the near term
“Third, we began to see higher potato costs resulting from the poor crop that was harvested last fall in our primary growing regions. The increase in potato costs reflects the impact of purchasing potatoes in the open market at a significant premium to contracted prices. Higher transportation costs for shipping potatoes from the Midwest and Eastern North America to our plants in the Pacific Northwest, lower potato utilization rates and running production lines at lower speeds to accommodate low-quality potatoes.”
Potato News - Overseas
Ukrainian farmers wear bulletproof vests to sow spring crops
Despite the hostilities, the government hopes farmers will plant six million hectares of crops this year, which is equivalent to 80% of the area farmed last year.
Global food crisis: Potato chips and candy at risk over export freeze
Supplies of potato chips and various confectionaries are now under threat as a result of disrupted export of key ingredients caused by sanctions and the Ukraine War. As Peter Caddle reports for Breitbart, Russia’s ongoing war in Ukraine has led to significant disruptions in global supply chains, with the West losing access either partially or fully to some essential goods and resources from the two nations.
IFA: Huge increase in storage costs, North West European plantings could be ‘lowest for some time’
Again, IFA underscores the trend that growers storing potatoes are incurring huge increased costs due to soaring energy bills. These costs must be recognised at packer and retail level, the organisation says.
Miller panel pegs soft red winter wheat crop down 1% from 2021
If the forecast is realized, soft red winter wheat production would be the third largest in the nine years since the recent high production of 568 million bus in 2013.
USDA sees tighter sugar supplies this year
The US Department of Agriculture in its April 8 World Agricultural Supply and Demand Estimates report lowered from March its forecast for 2021-22 US sugar production, slightly raised imports and raised domestic deliveries, resulting in tighter supplies and an ending stocks-to-use ratio of 12.5% compared with 13.6% in March and with 13.8% in 2020-21.
NAMA attendees hear of trucking developments
“Anyone who is shipping anything in a truck and paying for it has been told about the driver shortage until they’re sick and tired of hearing about it, but it’s still here,” he said. “What we found particularly interesting was that even the people pushing the shopping carts down the aisles and the people trying to make those grocery purchases online trying to figure out ‘why can’t I get any vanilla syrup for my lattes?’ or ‘why aren’t the products on the shelf today?’ know there’s an issue with trucks. Certainly, that awareness has been boosted to a new level.”
Logistics News
Diesel Falls 7.1¢ to $5.073 a Gallon
The national average price of diesel shed 7.1 cents to $5.073 a gallon, according to Energy Information Administration data released April 11.
Shanghai’s lockdown is making the supply chain look like 2020 again
Logistics operators are worried that like 2020, today’s calm will be followed by chaos once lockdowns are lifted and the pent up-stock in factories and warehouses in China turns into a flood of goods bound for the US and Europe.
Transportation report: Rising fuel prices will drive higher costs
Fuel surcharges together with market forces will push parcel and LTL rates to record highs, while truckload growth rate will ease, Q2 outlook report shows.
Food Industry News
CPI continues to track at record highs
The Consumer Price Index for baked foods and cereal products rose 1.8% in March, according to the Bureau of Labor Statistics of the US Department of Labor. The index for all food at home, meanwhile, increased 1.5%.
The FAO Food Price Index makes a giant leap to another all-time high in March
The FAO Food Price Index* (FFPI) averaged 159.3 points in March 2022, up 17.9 points (12.6 percent) from February, making a giant leap to a new highest level since its inception in 1990. The latest increase reflects new all-time highs for vegetable oils, cereals and meat sub-indices, while those of sugar and dairy products also rose significantly.
New, on-trend flavors and colors for snacks sweet baked goods
Also growing in importance is consumer interest in health and wellness. Consumers are more mindful of their own health and well-being. In research shared by ADM, Chicago, 70% of consumers rank new and interesting flavors as important snack purchase criteria, with greater emphasis for health-forward snacks such as energy and nutrition bars. Additionally, 58% of consumers prioritize global flavors when selecting snacks, and are looking for new bold, spicy, and exciting flavor experiences.
War to have lasting impact on food inflation
As the war continues in Ukraine the impact on global agriculture will have prolonged affects, including food inflation, limited fertilizer supplies, a European recession and fundamental changes in supply chains.