Industry News - Wk ending 29 Apr '22
Potato News - North America
US Fries Consumer Demand to Remain Strong
“The fry attachment rate in the US, which is the rate at which consumers order fries when visiting a restaurant or other foodservice outlets, has been fairly consistent since the beginning of the pandemic and remains above pre-pandemic levels. Going forward, we expect restaurant traffic and consumer demand for fries in the US to remain strong. Although it may be more volatile in the near term as consumers face significant cost inflation,” Werner mentioned, cited by Food Business News.
Prince Edward Island Fry Contracts Up More Than 20 Per Cent for 2022
Processing contracts on Prince Edward Island have been settled with growers receiving a little more than 20 per cent increase, the April 21 issue of the North American Potato Market News (NAPM) says.
Govt of Canada announces new measures to support Prince Edward Island potato industry
Prince Edward Island (PEI) has a long history of producing the highest quality potatoes for Canadians and international consumers. The Government of Canada will continue to stand up for Prince Edward Island (PEI) potato farmers, who are vital to their communities and the Canadian economy, according to a press release issued by Agriculture and Agri-Food Canada (CFIA) yesterday.
Potato News - Overseas
The government will expand support for producers of potatoes and other vegetables
Financial assistance will be provided from federal funds, which are sent to the regions in the form of transfers. At the same time, Crimea, Sevastopol and the Far Eastern regions will receive a higher coefficient in the calculation and distribution of funding, which is due to their increased plans for the production of potatoes and other vegetables.
Mintec Benchmark Prices of Belgian processing potatoes up 264% year-on-year
The Mintec Benchmark Prices of processing potatoes in Belgium rose by 11% in the two weeks up to 20th April 2022, and up 264% year-on-year (y-o-y), according to a report by Alice Witchalls for Mintec. This is largely attributed to rising costs of inputs combined with firm demand for processing potatoes.
Logistics News
Diesel Prices Hit a New Record High: $5.16 a Gallon
Gasoline may be what powers most vehicles in the United States, but diesel is what fuels freight and logistics. You can see why it's big news, then, that prices are higher than they've ever been. According to Gas Buddy, diesel has reached a nationwide average of $5.16 per gallon. That's just a penny higher than the previous record from March, and prices could still go up.
Empty shipping containers stack up at U.S. port depots
Empty shipping containers are piling up in storage depots on the U.S. east and west coasts, causing a glut of capacity even as they are sorely needed overseas in Asia to ship exports back to the U.S., Container xChange said in an analysis.
Food Industry News
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.
Indonesia enacts ban on some palm oil exports
Indonesia President Joko Widodo announced April 22 he would ban exports of palm oil beginning April 28 in an effort to reduce his country’s soaring food costs. No timeline for the conclusion of the ban was given at the announcement. On April 25 the Indonesian government clarified that the ban pertained only to exports of refined, bleached, deodorized (RBD) palm oil; crude palm oil was still available for shipment at this time.
Inflationary Price Risk – Polyethylene
PE prices are expected to surge further in 2022 – Europe would see prices increase by 5–8% and Asia by 5–10% – due to the continued rise in cost of energy, raw material, and logistics. In contrast, the U.S. is anticipated to see marginal reduction in PE prices with new capacities coming online in 2022. PE production in the U.S. is likely to reach 9.3 million tons in 2022, around a million tons higher compared to 2020, as leading PE producers, such as Shell Chemicals, ExxonMobil, and Sabic, are planning to set up new plants in 2022.
DOJ suit against US Sugar moves forward
The trial in which the US Department of Justice is challenging the US Sugar Corp.’s purchase of Imperial Sugar Co. ended April 21 with the court ordering both parties to complete post-trial submissions by May 27.
Plant-based alternatives boosted by pandemic lockdowns and consumers’ desire for positive change
The population is becoming increasingly conscious of ingredients in the foods they consume, along with the environmental impact their dietary choices can have on the planet and its future.
Montana drought threatens organic wheat
Organic corn, wheat and soybean prices have moved higher in the past eight months, but whether those markets stay bullish in the next year hinges on the effects of drought conditions in Argentina, Canada and the United States, as well as developments in Russia’s war on Ukraine, according to an April 2022 organic commodity outlook from Mercaris, a data mining and trading platform for the organic industry.
The Pandemic’s Impact on the Food Industry
“COVID-19 was a real wake-up call to highlight vulnerabilities in our food supply chain,” says Jeffrey LeJeune, PhD, food safety officer at the Food and Agriculture Organization (FAO) of the United Nations. The organization has provided many guidance and policy briefs on COVID-19 and the food supply, and continues to monitor, update, and advise the industry.