Two giants of the FMCG sphere, having sales markets in most countries of the modern world, Coca-Cola and PepsiCo appeared not in the most pleasant situation. Bulk foods experts say that this case may undermine their reputation in the food business.
The world wheat market has fully entered the “weather market” phase when the weather conditions in the main grain-producing countries begin to exert a decisive influence on prices.
Onions, garlic, carrots, peppers: a review of the world market
Great Britain is a country of traditions. But although cosmopolitan London and Manchester have long absorbed a hundred foreign customs, there are things that will remain unchanged. At the same time, conservatism manifests itself not only in veneration of the royal family and high level of education. We see it in the original humor of the British, the style of clothing, and also the products and dishes that are preferred here. And what are the prices for food in the markets and catering? Let's consider in more detail.
Cheese produced in the highland region of Georgia Tusheti was sent for export to the United States. Interested in products and Israel, but so far farmers cannot meet the full demand for cheese made from the milk of sheep grazing in the meadows of alpine and subalpine zones of Georgia.
The growing demand for walnuts revived the California market. The current harvest of 670 thousand tons against 600 thousand tons last year led to a drop in prices. Thanks to the huge demand from India, Turkey and the Middle East, the California industry quickly returned to a comfortable position - in recent weeks, prices have risen by at least 10%. Walnuts In shell and 80% of LHP are becoming scarce.
“There are few negative reports on new crops, and this is a good sign. Night frosts during the flowering of vineyards and fruit trees are dangerous, but not the only negative factor. Rains during harvesting and drying the harvest will cause considerable damage,” experts note.
Coffee is known to mankind for a long time. The first to pay attention to coffee beans Indians of South America - the aborigines of the small homeland of the drink. After the conquest of the New World by Europeans, coffee began to gradually migrate to the other side of the Atlantic. As a result, an invigorating drink from South American berries has become one of the most popular on the planet, taking a worthy place in the same row with the production of tea, wine, and milk.
By 2050, the world's population will increase to 9.7 billion people. Will they have enough food for everyone to eat? Scientists say that enough. In all likelihood, in the future, mankind will consume less meat. The transition will be smooth and painless due to the appearance of quality substitutes. Already today, under the influence of fashion on a healthy lifestyle and for ethical reasons, residents of developed countries are actively switching to “green” food. For example, in the US, more than 30% of consumers call themselves "flexitarians". They are not against meat, but, if possible, choose “green” dishes.
For many of us, certain countries cause clear gastronomic associations. For example, Italy is associated with the production of pasta and red wine. In France, they produce and sell in bulk champagne and croissants and connoisseurs from around the world are happy to buy wholesale fragrant sangria and jamón from Spain. Meanwhile, each of the listed countries is famous for its wine-making and it is definitely not worth stopping for one drink!
In Europe, despite the seasonal increase in the supply of milk, manufacturers prefer not to direct it for drying, if possible. Demand for products is weak. In addition, the problem of intervention stocks remains topical. And there are no prerequisites for their decrease.
The market of almond is stable today. Demand and prices have decreased. Perhaps competitive prices and a strong euro inspire buyers from the EU to buy nuts. From August 2016 to February 2017, India became the largest importer of Californian almonds. Shipments to India increased by 59% and amounted to 54 431 tons.
Prices for cocoa beans collapsed to a nine-year low during the March trading on commodity exchanges in London and New York. The fault to all is the excess of raw materials in the countries of Africa - the main suppliers of this product. However, the situation on the market will not affect the cost of the final product. RT understood why in the medium term, prices for chocolate can decrease by only 2-3%.
Legumes are an important source of edible protein and a valuable crop in the crop rotation. The main volumes of consumption of legumes are in the countries with a rapidly growing population, which creates the prerequisites for growth in world trade.
Owners of coffee plantations in Brazil, affected by last year's drought, switch to growing pepper. In search of alternative sources of income, more and more farmers in the Brazilian state of Espírito Santo (a key supplier to the world market of robusta coffee beans) are beginning to plant black pepper, the price of the spice has increased by more than three times in 2009-2015.
Vietnamese shrimp exports, which showed recovery in 2016, began this year with a noticeable decline. In January this year, sales of shrimp from Vietnam to foreign markets in value terms decreased by 12.7 percent compared to January last year and amounted to $199 million.
High indicators of the global peanut market of the past season will continue this year.
Germans - butter, and Czechs and Poles - palm. European producers and exporters of food products were at the center of the scandal. The same products - one brand, one manufacturer - are very different in Western Europe and in the East. Authorities of Eastern European countries found that in their stores, food is worse - meat is less, instead of animal fats, vegetable, and in the same packages, under the same brands.
The drop in prices in the world dairy market was due primarily to a sharp increase in milk production in the main export regions. Dedicates have increased significantly in New Zealand. Since April 2015, the quota for milk production has been abolished in the EU, and farmers have taken full advantage of this opportunity.
Beef steaks can be of premium class and alternative. The latter significantly differ in price, but to taste some inexpensive steaks are not inferior to premium ones. Therefore, you can always buy a steak at a low price and cook a plush dish. It is necessary to know only a few subtleties, which we will tell you today.
Prices for cereals in world markets continued to fall, continuing to win back USDA forecasts for a growing crop. The weakening of the dollar, new auctions for the purchase of grain and the restoration of oil allowed restraining the decline. At the Chicago Commodity Exchange, May wheat contracts fell by 1% from 440.5 to 436.25 USD/100 bush, for corn rose 0.8% from 364.25 to 367.25 USD/100 bush, on soybean declined - On 0,6% from 1006,5 to 1000 USD/100 dollars.
Natural olive oil - a product not cheap, but many of you for certain noticed, that the prices for different grades of it can strongly differ. What determines the cost of olive oil and how to purchase a quality product for a reasonable price?
World meat production has grown by an average of 2.1% annually over the past 20 years, exceeding 310 million tons in 2015. Poultry produce grew at the highest rates - by 3.6% per year. If in 1995, the share of it was at the level of 27%, then in 2015 it reached 36%. Slower production of beef (together with buffalo meat) grew by an average of 1% per year during 1995-2015. However, the share of beef, like pork, declined and amounted to 22% and 38% in 2015, respectively. It is interesting that all this time in the world pork was more largely produced, but now the poultry almost caught up with it and, apparently, will be number 1 in the coming years.
The conditions on the planet are constantly changing, and not always for the better. This leads not only to climate change, extinction of some species but also to the problems with the reduction of food resources. It is possible that in the future some traditional products can disappear. It is likely that price for foods from the list below will grow, and many manufacturers and distributors of food products will have to find something new instead.
Trade and foreign economic relations, piercing the globe along and across, enabled the modern man to use products from almost every corner of the world. The most revealing in this regard is the path of spices that over the centuries have overcome the journey from incredibly expensive exotics commensurate with the price of gold to the usual kitchens of houses, cafes and restaurants, bakeries and confectioneries, food shops, store shelves and market areas.
The world market of nuts and seeds as of today: an overview
The dried fruit market finished the winter as a whole on an optimistic note. First, a new crop from the Southern Hemisphere began to arrive, in addition, buyers became more active. Optimism reinforces the forecasts of a significant growth of the world economy, which contributes to the growth of incomes and, as a result, the increase in the consumption of a share of healthy products, which include nuts and dried fruits. Of course, one should not forget about other significant factors, such as the policy and the exchange rate, whose behavior is not always easily predictable.
The company Mintel presented the main trends of the global food market of the year 2017. The world's top-level analytical company presented six basic trends that are going affect the FMCG business. The experts predict some surprises in the global food market while maintaining this segment of the global economy. As before, the development of the direction of functional and healthy products remains the main trends.
As it is known, China controls about 80% of the world export of garlic. Bad harvest of this year and enterprising Chinese speculators have caused the present boom: the wholesale price of garlic in the country increased by almost three times, and so provoked the sharp rise in the world market.
In the tea market, there is a decline in demand for a drink, the summer season is approaching, which means that the demand will move towards soft drinks. The current trends in the industry do not give positive predictions for tea producers to increase demand and sales. Is there a way out in modern conditions to keep the profitability of the tea business?
Marbled meat, the price of which depends on many factors, is loved by many gourmets for its rich taste and aroma. Buy marble beef is very simple; just find a specialized butcher shop.
Warming has provoked quite a sharp fall in prices for vegetables in Europe. Recall that until the last decade of February, most types of vegetable products in European markets were offered at fairly high prices due to abnormally cold weather conditions. However, the growth in supply volumes became palpable at the end of last month, and as of the beginning of March, prices for fresh vegetables fell below last year's level.
The paradoxical situation is in poor developing countries:, they are forced to import food from the rich countries in the form of grain, suffering from a lack of it. Each year, these imports are around three million tons, while those same poor countries annually export about four million tons of oilseeds and fishmeal, which have a higher protein value than corn, and in the western countries are used for animal feed.
One-third of African crops of peanuts enter the stomach of cattle and poultry in Western Europe.
The representatives of the International Organization of a Healthy Meal, called the manufacturers and suppliers of food products in the world more closely relate to the composition of the products they produce.
The American Institute of Beer Industry Group (Beer Institute) reported that, according to its estimates, total beer wholesale sales in the US rose by 0.3% last year, partly due to higher sales of crafting and imported beers.
Where and how to find a reliable supplier foodstuff for the cafe? Supplier selection is an important and serious, and even more so when it comes to children's cafe, where the quality of the dishes, and hence the products from which they are made, special attention is paid.
In the past period, the price of cocoa beans continued to move in a falling trend as a result of the active supply to the market of the new season and growth stocks. In addition, the global cocoa market balance in the season 2016-2017 was revised upwards due to an excess of declining processing of cocoa beans in the world. Additional pressure on prices exerted fluctuations of the currency pair USD - Pound Sterling.
World processing in Q4 2016 decreased in Europe by 0.9% in Q4 2015 due to a sharp decline of 10.1% in Germany due to the cessation of production and the Euromar bankruptcy. Processing in North America also showed a decline of 1.1%, only in Asia it increased by 16.9% due to the growth in Malaysia.
Everyone knows that corn is the main crop in the United States. However, this year, farmers in many states are going to plant most of their fields with soy. This is due to the fact that soybean prices rose by almost 10% since 2016, and its crop expenses decreased. US farmers can boast of a special technology that enables the production of maximum yield at each acre.
Denmark, which is one of the world leaders in the consumption, distribution, and wholesale of organic products in 2020, is going to be the "100% organic country."
Import of lobsters in the US is still superior to their export from the country both in volume and in value. Last year, the United States exported 55,553 tons worth $749.8 million, increasing sales by less than 1% in volume and 4% in value terms. In turn, in the US import of lobsters with a decrease of 7% and 5% in volume and cost, respectively, it was 61,367 tons in 2016, at the amount of $1.35 billion. 90% of the total amount of the US exports accounted for live lobsters. 50,195 tons worth $640.3 million of which were sold abroad, which is higher by 8% in volume and 12% in value than in 2015. Exports of these products in China and South Korea have increased, while deliveries in Italy, Spain, and Vietnam dropped.
Beef manufacturing from cows continues to grow in France, which, in its turn shows a decline in demand for imports, which affects the wholesale prices for meat in important countries-suppliers. France is a key market for beef from cows in the EU and, therefore, the growth of domestic farms inevitably has an impact on the European Union market. France is also a major producer of veal from the bulls. Recent projections show that meat production will grow, i.e. this year, the growth will continue the fourth year in a row. Nevertheless, it is worth noting that anyway it would be only slightly higher than in 2012. But then, it should be considered on the basis of the reduction of consumption of veal in France that is marked since then.
A huge range of products and brands on the shelves of shops and supermarkets create the illusion of a wide selection. In fact, there are 9 major companies, which control the entire FMCG business at the global level.
Reduction in soybean oil export in December
According to experts of Oil World, on the results of December 2016 shipments of soybean oil from four key exporting countries (United States, Argentina, Brazil, and Paraguay) increased to 758 compared to 672 kt in the same period a year earlier.
In two years, the price for pods of vanilla grew more than three times due to the deficit. Businesses are looking for its natural replacement
The pace of growth in the value of contracts for sugar reached a maximum of seven years that is since 2009, leading to a rise in sugar prices worldwide. So, for the 2016 sugar futures price rose by 28%, this was the best indicator in the index among agricultural commodities in the Bloomberg Commodity Index. The reason for price rise at the world sugar market was the drought in India, provoked by the natural phenomenon El Niño (fluctuation in temperature of the water surface of the Pacific Ocean near the equator)
Proceeds of milk for processing in the EU in the first half of 2017 will be reduced by 2.4 million tons. In assessing the prospects for the short and medium term of the dairy market, it becomes clear that the income will be reduced to the middle of the year. Even taking into account the seasonal increase in dairy production in January-May, the volume will be 2 million tons less than in the corresponding period in 2016th. The total volume of milk entering the processing is estimated at 150.5 million tons.
The January price index for meat is "stopped" at the level of 156.7. That remained almost unchanged relative to December adjusted index. Thus, the rise in prices for beef lamb balances the reduction in prices for lamb and a slight weakening of quotations of poultry and pork. Restoration of cattle livestock in Australia limited the beef offer from exporters and led to the rise in prices. In the case of lamb, Oceania export prices fell a third consecutive month, reflecting seasonal peak slaughter and supply of this type of meat. Global quotation pork and poultry are also reduced for three months because of brisk supply and stable moderate demand.
Association of Southeast Asian Nations, currently the 4th largest importer of tuna in the world, is increasing the purchase of the product. In the first decade of last year, ASEAN countries delivered tunny-fish products worth $1.3 billion, up 25% exceeds the same period of 2015.
Contrary weather in Spain caused a lack of market gardening in shopping malls in some EU countries; export prices for vegetables are rising. The situation in the vegetable market in Europe remains quite tense.
The global coffee market for the third year in a row recorded a deficit of raw materials offers. Moreover, the production of Robusta is the lowest since 2012. Leading positions among exporters hold both producers of coffee and tea (Brazil, Vietnam, India) and processors (Germany, Switzerland, Italy). It is important that countries-processors derive a significant margin of their competencies and market position.