{"id":450,"date":"2018-03-22T07:07:02","date_gmt":"2018-03-22T07:07:02","guid":{"rendered":"http:\/\/commodityconversations.com\/wordpress2\/?p=450"},"modified":"2018-10-31T09:51:14","modified_gmt":"2018-10-31T09:51:14","slug":"commodity-conversations-weekly-press-summary-12","status":"publish","type":"post","link":"https:\/\/commodityconversations.com\/wordpress2\/2018\/03\/22\/commodity-conversations-weekly-press-summary-12\/","title":{"rendered":"Commodity Conversations Weekly Press Summary"},"content":{"rendered":"<p class=\"p1\">\n<p class=\"p1\"><span class=\"s1\">At this week\u2019s <a href=\"https:\/\/www.ft.com\/content\/695648a0-2c8c-11e8-9b4b-bc4b9f08f381\"><span class=\"s2\">Financial Times Commodities Global Summit<\/span><\/a>\u00a0leaders of agricultural trade houses warned that their traditional business model is over. The head of Cargill&#8217;s agricultural supply chain said that the margins in trading grains have disappeared with the markets becoming more transparent and farmers more powerful and aware. ADM\u2019s head of global trade agreed, saying the group was now focusing on adding value through \u201cdestination marketing\u201d while other companies, like Cargill, work on offering more services to farmers. <\/span><\/p>\n<p class=\"p1\"><span class=\"s2\"><a href=\"https:\/\/www.reuters.com\/article\/us-archer-daniels-restructuring\/adm-restructures-business-groups-as-grain-margins-falter-idUSKBN1GV276\">ADM<\/a><\/span><span class=\"s1\"> announced it was restructuring into four units: carbohydrate solutions, nutrition, oilseeds and origination, in a bid to separate its grain-trading segment from the other businesses. The trading will be part of the origination segment while the wheat milling and corn processing units will go under the carbohydrates solutions segment. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The CEO of <a href=\"https:\/\/www.agrimoney.com\/companies\/millennials-drive-louis-dreyfus-campaign-to-become-more-than-a-merchant-56142\"><span class=\"s2\">Louis Dreyfus<\/span><\/a> said the company was adapting to the demands of the millennial generation, a generation which, he said, drives consumption trends and which wants environmental friendly food. The organic market has a huge potential, with an annual growth expected at 14% by 2021, he added. The group is also looking to improve its supply chain as well as to focus on areas of strong demand, such as China. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Louis Dreyfus reported a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-03-21\/louis-dreyfus-full-year-profit-rises-4-as-challenges-remain\"><span class=\"s2\">net income<\/span><\/a> of USD 317 million in 2017, up 4% on year mainly thanks to the sale of the metals unit, while its agriculture business\u2019 s profit dropped 16% to USD 224 million.\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s2\"><a href=\"http:\/\/www.estrategiaynegocios.net\/empresasymanagement\/1160689-330\/cargill-se-expande-en-centroam%C3%A9rica-y-aterriza-en-colombia\">Cargill<\/a><\/span><span class=\"s1\"> has acquired the Colombian company Pollos El Bucaneroas as a part of its plan to double its Central American poultry business. The group said it aims to invest USD 300-500 million up to 2022 to increase its market presence.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">In Canada, the company announced that its pilot project on <a href=\"http:\/\/internationalleathermaker.com\/news\/fullstory.php\/aid\/5272\/Good_Q1_results_for_Cargill_92s_beef_sustainability_pilot_project.html\"><span class=\"s2\">beet sustainability<\/span><\/a> was a success and could be scaled up to produce higher volumes of sustainable certified beef. Cargill explained that the three-month project showed it was possible to trace sustainability across the entire supply chain, as required by the Certified Sustainable Beef Framework established by the Canadian Roundtable for Sustainable Beef (CRSB). <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Separately, Cargill said it was looking to <a href=\"http:\/\/www.hegnar.no\/Nyheter\/Boers-finans\/2018\/03\/Cargill-selger-tre-skip\"><span class=\"s2\">sell its three cargo ships<\/span><\/a> and work only as a charterer. It owns three capsesizers in partnership with Mitsui.<\/span><\/p>\n<p class=\"p1\"><span class=\"s2\"><a href=\"https:\/\/www.businesstimes.com.sg\/companies-markets\/olam-disposes-its-50-equity-interest-of-joint-venture-company-to-wilmar\">Olam<\/a><\/span><span class=\"s1\"> sold its 50% stake in the investment holding company Nauvu to Wilmar, which already owned the other 50%. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">As part of its effort to produce locally, <a href=\"https:\/\/www.newsday.co.zw\/2018\/03\/nestle-commissions-cremora-line\/\"><span class=\"s2\">Nestle<\/span><\/a> has commissioned a new Cremora (coffee creamer) line in Zimbabwe, a move which should help the country save USD 2 million in imports. The company will also continue to expand production capacity to export in regional markets. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The US State Department has launched a project to <a href=\"https:\/\/www.reuters.com\/article\/us-blockchain-coca-cola-labor\/coca-cola-u-s-state-dept-to-use-blockchain-to-combat-forced-labor-idUSKCN1GS2PY\"><span class=\"s2\">fight forced labour<\/span><\/a> across the world by creating a registry for workers using blockchain technology. Coca Cola will be partnering in the venture, following increasing pressure to improve standards, especially in sugarcane producing countries. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The UK government is planning to introduce a bill this year which aims to <a href=\"https:\/\/www.theguardian.com\/environment\/2018\/mar\/13\/uk-farmers-to-be-given-first-ever-targets-on-soil-health\"><span class=\"s2\">restore the soil\u2019s fertility<\/span><\/a> levels throughout the country by 2030 &#8211; the first bill of its kind. Data suggests that the country\u2019s soil fertility could be close to gone within the next 30-40 years because of industrial farming. The farm minister argued the focus should be on designing <a href=\"https:\/\/www.farminguk.com\/news\/New-bill-will-mandate-measures-to-improve-UK-s-soil-health-amid-fertility-crisis_48839.html\"><span class=\"s2\">local solutions<\/span><\/a> as large scale compliance programs don\u2019t work. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">In a recent report, the <a href=\"https:\/\/www.theguardian.com\/environment\/2018\/mar\/20\/fish-and-chips-to-curry-uks-favourite-dishes-at-risk-from-climate-change-research-shows\"><span class=\"s2\">WWF<\/span><\/a> warned that unless people make a conscious effort to eat more sustainably, climate change would have a drastic impact on what we will be able to eat. In 30 years, the quintessential British \u2018fish &amp; chips\u2019 may have to use anchovies instead of cod, whose population is dropping due to warming oceans. The taste of meat may change too as traditional feed will become less available. Cutting back on meat, fish and dairy all contribute towards eating more sustainably, the WWF said. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Along the same lines, a <a href=\"https:\/\/phys.org\/news\/2018-03-percent-americans-responsible-food-related-greenhouse.html%20phys.org\"><span class=\"s2\">study<\/span><\/a> found that the 20% of Americans who have diets with the highest calorie intake and animal based food consumption were responsible for almost half of the country\u2019s diet-related greenhouse emissions. If that 20% group changed their eating habits in line with the average US diet US emissions\u00a0 would drop significantly &#8211; almost 10% of the reductions needed to meet the Paris accord targets. <\/span><\/p>\n<p class=\"p1\"><span class=\"s2\"><a href=\"https:\/\/www.reuters.com\/article\/us-mcdonalds-environment\/mcdonalds-sets-greenhouse-gas-reduction-targets-idUSKBN1GW1XT\">McDonald\u2019s<\/a><\/span><span class=\"s1\">\u00a0franchises and suppliers are planning to cut greenhouse emissions by over a third by 2030, the first restaurant company to do so. The CEO explained that beef production was among its biggest source of greenhouse emissions but that some of its suppliers were also working on reducing their carbon footprint. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">When <a href=\"https:\/\/storage.googleapis.com\/p4-production-content\/international\/wp-content\/uploads\/2018\/03\/db5ec2fd-gp_mot_v4.6_pages.pdf\"><span class=\"s2\">asked by Greenpeace<\/span><\/a> to list the name of their palm oil providers, a few food and beverage manufacturers<a href=\"https:\/\/www.bakeryandsnacks.com\/Article\/2018\/03\/20\/Kellogg-and-PepsiCo-failing-in-environment-commitment-Greenpeace\"><span class=\"s2\"> failed to provide an answer<\/span><\/a>. The firms, part of the Consumer Goods Forum (CGF), pledged to reach \u2018no deforestation, no peat, no exploitation\u2019 (NDPE) by 2020, but Greenpeace argued it was impossible to assess the success without the proper information. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">In the UK, a <a href=\"https:\/\/feedbackglobal.org\/wp\/wp-content\/uploads\/2018\/02\/Farm_waste_report_.pdf\"><span class=\"s2\">farmer survey<\/span><\/a>, conducted by Feeback, found that pressure from supermarkets was a major drive in farm waste. <a href=\"https:\/\/www.independent.co.uk\/environment\/fruit-vegetables-food-waste-farms-uk-birmingham-manchester-feedback-a8220171.html\"><span class=\"s2\">Farmers reported<\/span><\/a> that they wasted about 16% of their crop because of the strict cosmetic requirements which they say have effectively normalised overproduction. The report noticed some encouraging actions, such as Tesco\u2019s \u201cwonky fruit and veg\u201d isle. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Still in the UK, the<a href=\"https:\/\/www.theguardian.com\/environment\/2018\/mar\/13\/plastic-tax-uk-government-packaging-levy-phllip-hammond\"><span class=\"s2\"> government has invited suggestion<\/span><\/a>s on ways to reduce plastic waste, and it mentioned a GBP 0.25 (USD 0.35) tax on disposable coffee cups, as well as a landfill tax. And with Easter approaching, a s<a href=\"https:\/\/www.theguardian.com\/environment\/2018\/mar\/20\/survey-reveals-which-easter-eggs-use-the-most-packaging\"><span class=\"s2\">urvey by Which?<\/span><\/a> found that packaging, on an average, accounts for 25% of the weight of Easter eggs, hitting a high of 36.4% in the worst case. <\/span><\/p>\n<p>This report has been produced by <a href=\"http:\/\/ecruu.com\">ECRUU &#8211; Commodity Media Monitoring<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-104\" src=\"https:\/\/i0.wp.com\/commodityconversations.com\/wordpress2\/wp-content\/uploads\/2017\/10\/Screen-Shot-2017-10-25-at-13.29.14.png?resize=525%2C149&#038;ssl=1\" alt=\"\" width=\"525\" height=\"149\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At this week\u2019s Financial Times Commodities Global Summit\u00a0leaders of agricultural trade houses warned that their traditional business model is over. The head of Cargill&#8217;s agricultural supply chain said that the margins in trading grains have disappeared with the markets becoming more transparent and farmers more powerful and aware. ADM\u2019s head of global trade agreed, saying &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/commodityconversations.com\/wordpress2\/2018\/03\/22\/commodity-conversations-weekly-press-summary-12\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Commodity Conversations Weekly Press Summary&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[],"class_list":["post-450","post","type-post","status-publish","format-standard","hentry","category-news-summary"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9fIT3-7g","jetpack_likes_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/posts\/450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/comments?post=450"}],"version-history":[{"count":4,"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/posts\/450\/revisions"}],"predecessor-version":[{"id":511,"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/posts\/450\/revisions\/511"}],"wp:attachment":[{"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/media?parent=450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/categories?post=450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commodityconversations.com\/wordpress2\/wp-json\/wp\/v2\/tags?post=450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}