{"id":351,"date":"2018-02-01T08:46:41","date_gmt":"2018-02-01T08:46:41","guid":{"rendered":"http:\/\/commodityconversations.com\/wordpress2\/?p=351"},"modified":"2018-10-31T09:51:16","modified_gmt":"2018-10-31T09:51:16","slug":"commodity-conversations-weekly-press-summary-5","status":"publish","type":"post","link":"https:\/\/commodityconversations.com\/wordpress2\/2018\/02\/01\/commodity-conversations-weekly-press-summary-5\/","title":{"rendered":"Commodity Conversations Weekly Press Summary"},"content":{"rendered":"

Coffee company <\/span><\/a>Keurig<\/span><\/a> Green Mountain, owned by JAB Holding, has purchased soft drinks manufacturer Dr Pepper Snapple for USD 21 billion. Analysts said the move came as a surprise, given that consumers seem to be moving away from sugary drinks. The group has made USD 58 billion worth of acquisitions<\/span><\/a> over the last six years.\u00a0 Bloomberg suggested that one of the reasons the coffee company is so successful is because it pays its suppliers\u00a0 almost one year after purchasing beans, a move that cuts out trade houses and improves cash flow.<\/p>\n

Bunge<\/span><\/a> has bought two US-based corn flour mills valued at USD 75 million from Mexican corn miller Grupo Minsa. An official said<\/span><\/a> the move would boost its Food & Ingredients business and help grow the company in other regions. However, market commentators argued the strategy behind the acquisition could be linked to the recent ADM takeover bid. <\/span><\/p>\n

In the\u00a0\u00a0soybean<\/span><\/a> market Brazil is taking an increasing share of the Chinese import market. Customs data showed that 57% of Chinese soybean imports came from Brazil last year, up from 35% 10 years ago while US origin dropped to 31% from 38% in the period. This is partly because US farmers prefer high-yielding varieties which have lower protein levels while Chinese buyers want protein to feed their livestock. US soybean exports to China are expected to struggle further after the Chinese government announced last week tougher sanctions<\/span><\/a> for importers who don\u2019t follow the rules on GMO crops. <\/span><\/p>\n

Canada has been exporting more barley<\/span><\/a> to China, taking market share from Australia. Australia\u2019s barley harvest was affected by a drought this year, but more farmers could switch to growing the crop instead of wheat. While demand for Australian wheat has been affected by competition from the Black Sea, world barley prices<\/span><\/a> are now on par with milling wheat prices, compared to a 10-12% discount just a year ago. China\u2019s barley needs should continue growing<\/span><\/a> fast to feed livestock, as the government is encouraging corn to be used for its ethanol. <\/span><\/p>\n

To become more competitive on the world market, Canada is accelerating the building of a grain terminal<\/span><\/a> at Port Metro Vancouver in the hope to have it opened in 2019. This is the port\u2019s first new grain terminal in 50 years. <\/span><\/p>\n

The Russian government, meanwhile, said it wants to develop flour production capacity<\/span><\/a> to help absorb the bumper wheat crop and create value addition. The agriculture minister wants the country to continue being a significant wheat producer as well as to encourage a shift in domestic consumption towards higher quality wheat. <\/span><\/p>\n

Cargill<\/span><\/a>\u00a0is looking to hire data scientists to build an artificial intelligence that can use the company\u2019s data to boost profits. An official said they hoped machine learning would help reduce human error and make better decisions. Cargill\u2019s decision to take a minority stake in Cainthus<\/span><\/a> is another sign that advanced technology is at the centre\u2019s of the group\u2019s strategy. The Irish startup has developed a facial recognition technology for cows to improve farm efficiency and help the animal\u2019s well being. <\/span><\/p>\n

This week, apart from announcing a new potato starch<\/span><\/a> production line in Denmark with its partner AKV Langholt, and unveiling its first fish feed plant<\/span><\/a> in India, Cargill has also said it is investing USD 25 million in Puris Proteins<\/span><\/a>, a plant-based food manufacturer and North America\u2019s biggest producer of pea protein. Cargill said Puris will help them meet the world\u2019s growing protein demand whilst keeping in mind shifting consumer concerns, or what it calls being \u2018label-friendly\u2019.<\/span><\/p>\n

Separately, Cargill is also working on reducing waste. The company said it will be giving<\/span><\/a> USD 1.5 million to Brazilian non-profit organisation Gastromotiva whose focus is to help the poor and marginalised while reducing food waste through things like vocational training. This is part of what has been called the Social Gastronomy Movement. \u00a0<\/span><\/p>\n

ADM, meanwhile, opened a state-of-the-art centre<\/span><\/a> in Singapore to develop new flavours and ingredients for the health-conscious Southeast Asian customers. Similarly, a bakery innovation centre<\/span><\/a> was opened in Kentucky, USA, in a bid to meet growing demand for vegetable-based, non-GMO and organic options in the fats and oils arena. <\/span><\/p>\n

With the aim of developing a more sustainable palm oil supply chain, <\/b>Unilever<\/span><\/a> has joined up with PT Perkebunan Nusantara (PTPN) to help Indonesian mills and farmers manufacture palm oil in line with zero deforestation norms. It will provide resources, funds, and technical assistance. Unilever also announced support for the Cerrado Manifesto which aims to stop deforestation of the Brazilian region. Efforts are paying off – a recent report by CDP and McKinsey found that Unilever was among the companies with the greenest supply chain<\/span><\/a>. <\/span><\/p>\n

In India, meanwhile, Unilever will invest USD 3 million in grocery delivery start-up Milkbasket<\/span><\/a>. <\/span><\/p>\n

It the UK, Nestle will launch a premium<\/span><\/a> chocolate bar which is already present in other European countries, moving into the gourmet market and rivalling Lindt. \u201cPremium chocolate is one of the fastest growing areas in confectionery,\u201d the company said. Separately, Nestle<\/span><\/a> Waters North America announced it was investing in its spring and sparkling water portfolio, adding ten new flavours, as well as new packaging designs. <\/span><\/p>\n

Coca-Cola<\/a><\/span> announced it would launch three new drink brands before the UK sugar tax is rolled out on April 1. The tax, combined with slow sales, have put pressure on the group which plans to close<\/span><\/a> a UK factory and distribution centre to reduce costs and boost efficiency. Britvic<\/span><\/a> is going through a similar process and will close its Norwich factory.<\/span><\/p>\n

Another unintended repercussion of the war on sugar has been a tequila<\/span><\/a> shortage. Demand for agave, which is also used as an alternative sweetener, has been growing. The price has skyrocketed as a result. This should boost planting, but Reuters reports it could take as long as 2020 for there to be sufficient supply. <\/span><\/p>\n

Sugar is not the only one to be struggling with bad press. Coffee<\/span><\/a> shops in California could be required by law to warn customers of the risks linking coffee and cancer. Some argue that exposure to acrylamide, which appears during the roasting process, could be a source of cancer. \u00a0<\/span><\/p>\n

While more brands are voicing their commitment to becoming healthier and more sustainable, a report by Kin&Co<\/span><\/a> warned that too many companies are\u00a0 announcing intentions before implementation, hurting the brand image. An example could be the public outcry that followed when a customer complained that a UK Tesco<\/span><\/a> store did not allow him to use his own container at the deli counter. In its defence, Tesco said it would work to reduce plastic packing, but not at the cost of hygiene.<\/span><\/p>\n

This news summary was powered by ECRUU<\/p>\n

\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Coffee company Keurig Green Mountain, owned by JAB Holding, has purchased soft drinks manufacturer Dr Pepper Snapple for USD 21 billion. Analysts said the move came as a surprise, given that consumers seem to be moving away from sugary drinks. The group has made USD 58 billion worth of acquisitions over the last six years.\u00a0 … <\/p>\n

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