Louis Dreyfus just launched its new Soy Sustainability Policy which will seek to limit the environmental impact of soy cultivation and guarantee a fair wage for farmers. The firm said that ensuring its supply chain was managed sustainably had become urgent amid strong growth in the soy industry. In Australia, Zoos Melbourne announced it would no longer sell Nestle products until the company gets its Roundtable on Sustainable Palm Oil (RSPO) certification back. The RSPO suspended Nestle’s membership at the end of June for lack of reporting.
Nestle has developed an infant formula made from potato protein for children who suffer from cow milk allergy. Most formulas are made from cow milk and a lot of the current alternatives, such as protein from soy or rice are inadequate. Meanwhile, Cargill launched Satiagel Seabrid, a carrageenan extract made from sustainably cultivated seaweed, which can be used to improve the texture of dairy products.
The CFTC found that block trading in the CME’s agricultural futures and options contracts – which was only allowed in January this year – occur mostly in the nearby contracts. This came as a surprise given that block trading was introduced with the aim of boosting the liquidity in the little-traded forward contracts and there is now a concern that it is in fact taking liquidity away from the nearby contracts. Many participants have welcomed block trading, saying it helps execute big trades without affecting prices. Others, however, argue it leads to a lack of transparency even though the CFTC found that these traded at a “fair and reasonable” price.
As the rhetoric around the US-China trade war escalates, many businesses are already facing a difficult choice following the imposition of tariffs on both sides: absorb the increase in cost, pass it on to consumers, or find other suppliers. A Chinese meat importer said only luxury restaurants would be willing to pay a higher price for American beef, while a natural fabric producer said he might move production to another Southeast Asian nation.
A potentially breakthrough experiment found that introducing seaweed to cow feed could lead to a significant drop in their methane emissions. The scientists at the University of California still need to find a way to make the taste of seaweed less disruptive, as cows reportedly ate less feed, but the good news is that their milk tastes just as good. In a report released earlier this year, the Environmental Protection Agency found that cows were responsible for around 25% of the methane emissions caused by human activities in the US.
More than half of all fish consumed by humans today are farmed, according to a new FAO report. But the amount of fish caught in the wild has not fallen, as the world’s growing population relies on fish for a good portion of its food intake. The report warned that farmed fish can negatively harm the environment as they are often fed with wild-caught sardines or anchovies. In the wild, over a third of all fish caught never makes it to the plate, mostly because of poor refrigeration and storage.
The war on sugar continues in the US. After California banned cities and counties from allowing sugar taxes on soda last week, the Yes! To Affordable Groceries campaign has submitted a petition to the state secretary’s office asking for a measure to stop local governments from introducing new taxes on sugary beverages or other grocery items during the November ballot. However, the petition, if approved, would not stop the legislature from introducing a statewide soda tax. Also, it would not scrap existing taxes like the soda tax in Seattle. In any case, people say that the Seattle initiative failed to curb sugar consumption as the tax raised USD 4.446 million, nearly USD 1 million more than predicted.
Still on sugar, food makers like Nestle and Hershey want labels to mention ingredients from genetically-modified (GM) sugar crops but farmers oppose it, saying that the sugar no longer has the modified gene when it is used to make processed food.
A London-based startup called Binkabi is setting up a decentralised agricultural commodity network which aims to use blockchain technology to link farmers and consumers in Nigeria and neighbouring countries directly via the use of tokens. The company hopes to boost agriculture commodity trading across borders which it says is currently undermined by the absence of trust and a lack of appropriate market infrastructure.
Talking of new technology, more and more people in Argentina are having to resort to barter clubs to find food amid high unemployment and inflation rates. Facebook groups have been set up to facilitate the barter system, with one such group setting a 1kg flour bag at a reference price of ARS 30 (USD 1.09) or the equivalent of 1 point. With 2 points you can get sunflower oil or a pair of jeans.
This summary was produced by ECRUU
