Industry News - wk ending 20 May '22
Potato News - North America
U.S. potato exports show continued signs of recovery
With many countries around the globe relaxing restrictions and showing signs of recovery from the pandemic, demand for U.S. potato exports is strong in many markets. Potatoes USA says in a news release that during the first three quarters of the marketing year (July 2021-March 2022), overall U.S. potato and potato product exports increased from the same period one year earlier.
Potato News - Overseas
World Bank: Fertilizer prices expected to remain higher for longer
In the third in a series of 11 blogs on commodity market developments, elaborating on themes discussed in the April 2022 edition of the World Bank’s Commodity Markets Outlook, John Baffes and Wee Chian write that fertilizer prices have risen nearly 30% since the start of 2022, following last year’s 80% surge.
Food crisis in Ukraine... South Korean domestic potato prices soar
Potato prices continue to rise. At the Garak Market in Seoul on the 4th, a box of 20 kg of potatoes was sold at KRW 75,367 (about USD 58.48). Compared to the average value (48,105 won) from 2019 to 2021, it rose by 57%. As of the 4th, the average price for a box of 20 kg of potatoes per week was KRW 71,747 (about USD 55.67).
Another frozen Potato Supply Chain hickup: NO Fries for KFC customers in Singapore
In another hickup of the global supply chain for frozen potato products / french fries, KFC Singapore said on Thursday April 28 that it is not offering French fries for now but assured customers that the item ‘will be back soon’.
West-Australian Potato farmers ‘doing it for nothing’ warn of mass exodus amid stagnant prices
Potato farmers are warning that growers will walk away from the industry as cost pressures make the staple crop unviable in Australia.
Logistics News
Truckers hit by record diesel prices: How it impacts you
Diesel prices have skyrocketed to record highs in recent weeks, squeezing margins at logistics companies that are already stretched thin and further complicating the nation’s supply chain issues.
Hydrogen Likely to Be Next Fuel for Trucking, Panelists Say
Hydrogen fuel cells are being adopted in transit fleets, and motor carriers are poised to be next — and ultimately see a price at production comparable with diesel, experts said.
The climbing price of diesel is raising the risk of a recession
With diesel prices remaining elevated — forcing significant costs onto shippers and trucking companies — the impact of fuel costs on inflation could put a dent in consumer spending, according to experts.
Food Industry News
India bans the export of most wheat
India’s Directorate General of Foreign Trade announced a ban on most wheat exports from the country on May 14. The announcement was expected to push global prices higher.
Walmart CEO: ‘Price gaps matter’
Price gaps matter, and Walmart Inc. knows where to put its price gap to achieve profitable growth. That was the message delivered by C. Douglas McMillon, president and chief executive officer of Walmart, when asked by an analyst how aggressive the retailer needs to be on food pricing and private label in the current environment.
Higher prices expected for wheat and corn
The US Department of Agriculture in its May 12 World Agricultural Supply and Demand Estimates report supported a bullish outlook for 2022-23 wheat and corn with reduced supplies for wheat, lower production for corn, and higher prices for both. But the outlook for soybeans was somewhat less bullish with projected increases in supplies, crush, exports, and carryover, although prices were forecast sharply higher.
USDA reveals outlook on wheat, corn
The US Department of Agriculture in its World Agricultural Supply and Demand Estimates report supported a bullish outlook for 2022-23 wheat and corn with reduced supplies for wheat, lower production for corn, and higher prices for both. But the outlook for soybeans was somewhat less bullish with projected increases in supplies, crush, exports, and carryover, although prices were forecast sharply higher.
Navigating supply chain challenges in the fats and oils market
Fats and oils play an important role in delivering the sensory and quality attributes for snack and bakery products. Consumers’ interest in sustainability, health and wellbeing, and clean label are influencing the fats and oils category. Cargill conducts proprietary research to track consumers’ attitudes and trends regarding fats and oils (i.e. its Fatitudes study). Jamie Mavec, senior marketing manager, Global Edible Oils Solutions, Cargill shares key insights from the study.