The market is expecting ADM<\/span><\/a> will have to issue equity if it wants to buy Bunge. Fitch Ratings argued that a debt-only deal would likely affect the company\u2019s access to cheap credit. Moody\u2019s on the other hand said that – at an estimated USD 16 billion – Bunge is too expensive.<\/span><\/p>\n Unilever<\/a><\/span> announced it would make public its entire palm oil supply chain – which includes 1,400 mills and 300 direct suppliers. This is part of their effort to become more transparent, and to help the palm oil industry become more sustainable. <\/span><\/p>\n Palm oil producer Sime Darby<\/span><\/a> said it had put its expansion plans in Liberia on hold as it waits to see whether the Roundtable on Sustainable Palm Oil (RSPO) adopts new rules on deforestation. A company official explained that greenfield expansion in Southeast Asia has become difficult as governments don\u2019t want to be seen allowing deforestation. Producers have been looking to expand production in West Africa to feed fast growing global demand but an ambitious ruling by the RSPO could also make expansion in Africa difficult. <\/span><\/p>\n Olam<\/a><\/span>, which received last month the Roundtable on Sustainable Palm Oil (RSPO) certification for its palm oil mill and concessions in Gabon, is planning<\/span><\/a> to use 50,000ha to expand its palm oil plantations (as well as rubber). However, it is only developing on grasslands<\/span><\/a> at the moment because of the uncertainty over the deforestation rules. <\/span><\/p>\n After reporting disappointing<\/span><\/a> quarterly results last week, Kraft Heinz recognised that changing consumer tastes and a shift from processed food to more natural options are a challenge. A piece in the Wall Street Journal<\/span><\/a> argues that the group\u2019s strategy to drive profits through acquisitions and cost cutting may not be enough, and that the company needs to generate more sales. A branding expert explained that consumers seek out products that \u201clook handmade.\u201d <\/span><\/p>\n This could explain why Kraft Heinz\u2019 meat business is losing market share, while sales of processed meats in the US dropped from USD 21.9 billion in 2015 to USD 21.3 billion last year.\u00a0\u00a0<\/span>In a bid to tackle the problem, one of the plants has started repackaging in a way that highlights the natural ingredients, and has launched an antibiotic-free meat. The CEO also said<\/span><\/a> the group was open to acquisitions. <\/span><\/p>\n Kraft Heinz are not the only facing this issue. More and more investors<\/span><\/a> are calling on to companies such as Amazon’s Whole Foods and Costco to respond to shifting consumer demand. A report supported by some 57 investors representing USD 2.4 trillion in investment forecast that the plant-based protein diet is expected to reach USD 5.2 billion within the next 2 years. \u00a0<\/span><\/p>\n Similarly, a survey<\/span><\/a> conducted by Cargill in December showed that consumers want to eat meat that has been fed with natural additives and supplements, the same kind of supplements that they themselves consume. The head of the group\u2019s premix and nutrition explained animal health, sustainability and well being were increasingly important for consumers. <\/span><\/p>\n As a result, meat producers want labels to become clearer. The US Cattlemen\u2019s Association has written<\/span><\/a> to the USDA to spell out the difference between cell-cultured meat, or clean meat, and traditional beef. <\/span><\/p>\n Nestle<\/a><\/span> announced a USD 14 million investment at one of its factories in Thailand so that it can produce a higher quality coffee with less sugar. Nescafe Gold Crema, as it is called, was launched at the same time in Thailand and Western Europe. Although Thais tend to have a sweet tooth, health concerns are driving the shift to black coffee. <\/span><\/p>\n Rabobank expects the wine industry<\/span><\/a> will see further consolidation, especially in light of the difficult year many producers are going through. Growing regions in California, France, Italy, Spain and Argentina have all seen bad weather which has, in some areas, badly affected the grapes. The price of bulk wine on the VinEx exchange is already up 17% from 6 months ago. <\/span><\/p>\n The wine market will also have to adjust to changing consumer concerns. A recent report<\/span><\/a> forecast that the growth in wine consumption in the US is expected to slow, in part because millennials are more \u201cfrugal.\u201d<\/span><\/p>\n Amazon\u2019s Whole Foods<\/span><\/a> business is helping premium food producers reach consumers. The head of natural organic food company Hain Celestial<\/span><\/a> said its sales have increased significantly in the last quarter, while its costs have dropped, thanks to sales via Amazon. He explained that consumers are moving away from shops and sourcing most of their needs online. In a bid to compete, one of the US\u2019 biggest grocery chains, Albertsons<\/span><\/a>, is planning to buy Rite Aid which would widen its reach to 4,900 locations in the country. <\/span><\/p>\n On the other hand, Amazon<\/span><\/a> was told it had to pay a penalty USD 1.2 million for\u00a0 unlicensed imported pesticide in the US. Although the selling was done by third parties, the Environment Protection Agency argued the products were going through Amazon\u2019s warehouses. The company committed to crackdown on illegal pesticides. \u00a0<\/span><\/p>\n Finally, NPR started a video series<\/span><\/a> called \u201cPlanet Money Shorts\u201d and the first episode tells the surprising tale of how Germany\u2019s duty on frozen US chicken imports led to the boom of the US auto industry. Watch it here<\/span><\/a>. <\/span><\/p>\n Powered by ECRUU<\/a><\/p>\n
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