Cargill logged adjusted operating earnings of USD 3.2 billion in 2017/18 – a record high – as the global demand for beef and animal feed boosted its revenue by 7% to USD 30.4 billion. The animal nutrition and protein unit remained the top earner for the second year on the trot. The finance director said, meanwhile, that Cargill is being more nimble-footed in moving grains because of the tariff wars between the US and its trading partners such as China, Mexico and the EU. The trade disputes may force the company to delay investments or redo its functioning, he added.
The World Bank estimates that global demand for aquaculture feed production will increase from the current 77 million mt to 94 million mt in 2030. Cargill, which currently produces 3.5% of the world’s output, is convinced it can play a key role in boosting aquaculture production whilst meeting sustainability goals. The group is working in reducing greenhouse gas emissions and sourcing most of its ingredients (such as soy and palm oil) so that it will only be using Marine Stewardship Council (MSC) certified marine ingredients by 2025. Cargill also launched a new technology application centre in Vietnam to provide the latest innovations to aquaculture farmers.
Danone, Mars, Nestle and Unilever got together to form the Sustainable Food Policy Alliance. Commentators say this is another sign that the food industry is responding to changing demand from consumers and that the new alliance is expected to be more aggressive than the Grocery Manufacturers Association which several of the main food companies left last year. As a start, the alliance has asked the Environmental Protection Agency to keep the Clean Power Plan, it also wants the Obama-era Nutrition Facts panels, a reduction of salt in processed foods and clearer GMO labeling.
The Roundtable on Sustainable Palm Oil (RSPO) reinstated Nestle’s membership, which was suspended on June 27 after Nestle did not submit a report stating its action plan to produce 100% RSPO-certified sustainable palm oil by 2023. In New Zealand, meanwhile, the company announced it had arrived at a conditional agreement to sell six of its confectionery brands as it intends to concentrate on its chocolate, baking and other businesses.
In the UK, Nestle and Unilever joined the likes of Tesco and Ocado as users of the data management service ProductDNA. Created by the UK Retail Grocery Advisory Board, the application creates a transparent catalogue of product data between suppliers and retailers verified by a third party.
Coca-Cola European Partners (CCEP) said their large PET bottles will use 40% recyclable PET (rPET) in 2018 as the company wants 50% of its PET portfolio to be recyclable. The sustainability head said the company is changing the branding on its bottle closures by imprinting messages urging consumers to recycle. Such closures are currently on 500ml bottles of Coca-Cola and Coca-Cola Zero sugar and the company aims to include them across its entire portfolio on about 900 million bottles. It plans to expand the deposit return scheme currently available in Scotland to England.
In Mexico’s Chiapas, however, Coca-Cola has been blamed both for the rise in diabetes as well as for the water shortage. Soft drinks are more easily available than water in the province and the local plant consumes over 300,000 gal/day of water. As a result, there is a local movement asking to shut down the plant.
The world’s food import bill reached USD 1.43 billion in 2017, three times what it was in 2000, according to the latest UN Food and Agriculture Organisation (FAO) report. The situation is worse in the poorest countries whose import bills have increased on average five times as they depend increasingly on the world market. The FAO argues that such countries could help improve their trade deficit by exporting more of the so-called “minor tropical fruits” like jackfruit and mangosteen. Only 10% of their global production is exported but demand is rising as a result of increasing health concerns. Jackfruit is even being used to replace meat.
This summary was produced by ECRUU
