Container Shipping’s Latest Billion Dollar Problem

Shipping Industry Braces for Billion-Dollar Impact of EU Emissions Trading Scheme (ETS)

The International Transport Intermediaries Club (ITIC) is warning of a potentially massive financial impact on the shipping industry, possibly reaching billions of dollars, due to the European Union’s (EU) forthcoming Emissions Trading Scheme (ETS). Starting on January 1, 2024, the expanded EU ETS will set annual limits on greenhouse gas (GHG) emissions for large ships visiting EU ports.

However, this implementation is causing disputes between shipowners and charterers, particularly regarding the language in charter agreements aimed at fairly dividing costs and managing legal risks.

Robert Hodge, the General Manager at ITIC, is stressing the importance of ship managers doing thorough research to effectively handle these risks.

ITIC’s warning comes after a recent meeting of BIMCO’s documentary committee, which includes ITIC and other major players in the shipping industry. During this meeting, BIMCO made a significant move by adding an ETS allowances clause to its ship management agreement, SHIPMAN.

Additionally, they introduced three tailored ETS clauses for voyage charter parties. These clauses are designed to make compliance with changing regulations easier and to address the evolving issue of carbon emissions in the maritime sector.

As an advisor on the BIMCO document committee, ITIC is gearing up to host a webinar to guide its members through potential challenges and provide comprehensive advice to ship managers.

According to a statement, the EU ETS is a response to the growing regulatory demands set by the International Maritime Organization (IMO) and the European Union to reduce GHG emissions from ships traveling in European waters and docking at European ports.

Source: Container News

FrieslandCampina Cuts 1,800 Jobs for Profitability

FrieslandCampina, a prominent Dutch dairy cooperative, has unveiled a comprehensive cost-saving strategy that includes cutting 1,800 jobs across its global operations over the next two years. This strategic move, geared towards improving profitability, is projected to yield savings of up to €200 million ($215 million) and forms a pivotal component of the company’s ambitious plan to slash annual expenses by €400 million to €500 million by 2026.

Global Dairy Powerhouse

With a formidable presence in more than 100 countries, FrieslandCampina ranks as one of the world’s leading dairy cooperatives. Its product portfolio spans a wide spectrum, encompassing dairy staples such as milk and cheese, as well as vital components for the food and pharmaceutical sectors. The cooperative’s workforce currently spans 30 countries and comprises roughly 22,000 employees, underscoring its global significance.

Streamlining Operations for Efficiency

The decision to cut 1,800 jobs underscores FrieslandCampina’s commitment to operational efficiency and cost control. This ambitious workforce reduction initiative will require careful planning and execution to ensure that the company continues to meet the demands of its diverse international customer base while remaining competitive in an ever-evolving industry.

Financial Performance

In its financial report for 2022, FrieslandCampina reported a substantial turnover of €14 billion, a testament to its market dominance. Nonetheless, the dairy industry is not without its challenges, including fluctuating milk prices, shifting consumer preferences, and mounting environmental concerns. In response, FrieslandCampina is proactively adapting its operations to navigate these challenges while sustaining profitability. FrieslandCampina plans to cut 1,800 jobs worldwide in 2 years, aiming for €200 million savings to boost profitability and reduce annual costs by up to €500 million by 2026.

Navigating Industry Challenges

This strategic workforce reduction by FrieslandCampina reflects a proactive response to the multifaceted challenges confronting the dairy industry. By focusing on cost efficiency and profitability, the cooperative aims to maintain its position as a competitive and sustainable player in the global dairy market.

As FrieslandCampina embarks on this transformative journey, its actions are poised to shape not only its future but also the broader landscape of the dairy industry. Stakeholders, employees, competitors, and industry observers will closely monitor the cooperative’s progress as it strives to adapt to changing market dynamics while ensuring long-term sustainability.

Source: Amsterdam, December 12, 2023 (Reuters)

How McDonald’s Made OSI a Super Power in The Food Industry

OSI Group’s Rise: From McDonald’s First Burger Supplier to Food Giant

Back in 1955, a small company called Otto & Sons shook hands with Ray Kroc, the man behind McDonald’s. That handshake turned them into the first supplier of fresh burgers for McDonald’s in Des Plaines, Illinois. Fast forward, and now they’re known as OSI Group. They don’t just make burgers; they cook all sorts of meat – like bacon, sausages, and even pepperoni. And it’s not just meat; they also make loads of pizza crusts, breads, snacks like taquitos, and even big pots of mac and cheese, soups, and beans.

OSI Group, a major player in the food manufacturing industry, possesses the capability to cook various meats to the desired finish, whether it’s browning, searing, or charring. Their range includes items like bacon, sausage patties and links, riblets, deli meats, meatballs, meatloaf, pepperoni, and salami. Beyond meat products, OSI can produce vast quantities of pizza crusts, flatbreads, paninis, taquitos, mac and cheese, and even soups, chili, and beans.

The company began its journey as the first supplier of fresh hamburger meat to the original McDonald’s franchise in Des Plaines, Illinois. This partnership, formed with a handshake agreement with Ray Kroc in 1955, marked the beginning of OSI’s expansion. Initially known as Otto & Sons, the company was offered the opportunity to become one of five national suppliers of frozen hamburger patties for McDonald’s, propelling its growth.

Recently, OSI, now one of the world’s largest contract food manufacturers, has seen a change in leadership. The company’s new Chairman, Steven Lavin, is steering it into a new era, a transition that I explore in my latest feature.

Read Profile: Who is Steven Lavin, the Chair of OSI Group?

Who is Steven Lavin, the Chair of OSI Group?

Steven Lavin, as the chair of OSI Group, has played a significant role in the growth and success of the company. OSI Group is a major player in the food industry, known for preparing and providing food products to large brands like McDonald’s and Chipotle. However, detailed information on Steven Lavin’s specific achievements and career highlights at OSI Group is not readily available in the public domain.

From the available information, it’s clear that Lavin observed the growth and expansion of OSI Group under his late father’s leadership before taking over the reins. This experience likely provided him with valuable insights and understanding of the company’s operations, contributing to his capability to lead the organization effectively.

In general, leading a company like OSI Group requires a blend of strategic vision, operational expertise, and the ability to navigate complex global supply chains and client relationships. Given OSI Group’s prominence in the food industry and its role as a supplier to major global brands, Lavin’s leadership would involve maintaining high standards of quality, innovation in food processing technologies, and responding to the dynamic needs of the global market.

Why Is Tyson Foods Collaborating With Protix?

Tyson Foods and Protix Buzz into Future: Revolutionizing Protein with Insect-Powered Superfoods!

Tyson Foods, a global food industry giant, has recently teamed up with Protix, a leading company in insect-based ingredients. This exciting partnership is set to revolutionize the way we think about sustainable protein production.

Here’s the scoop: Protix is not your average company. They specialize in turning insects into ingredients for things like pet food, fish feed, and even organic fertilizer. Sounds quirky, right? But it’s seriously smart. They use food waste to feed these insects, making the whole process like a green loop.

On the other side of this partnership is Tyson Foods. These guys are big in the food world, known for their protein-packed products. They’re all about finding new, earth-friendly ways to feed the planet.

Tyson Foods and Protix Launch Mega-Insect Protein Facility, Aiming to Feed the World Sustainably

So, what’s the plan? Together, they’re building a new facility in the U.S. just for making insect ingredients. We’re talking a whopping 70,000 tons of live larvae every year! Plus, Tyson Foods is investing a cool €55 million to help Protix grow even bigger globally.

This isn’t just about making bugs into food. It’s a big step towards feeding our growing population without hurting the planet. The big brains at Protix and Tyson Foods think this could be a game-changer in how we make food for pets, fish, and farm animals.

And get this: the demand for protein is shooting up. By 2050, we’ll need 70% more of it! Insect protein could be the answer, and this partnership might just be the push it needs to go mainstream.

Protix has big dreams. They’re aiming to open 13 plants by 2035 and rake in about €1 billion in sales. With Tyson Foods in their corner, they might just do it.

But can bugs really replace the protein we’re used to? Protix says, “Why not?” With a bit more research, some new rules, and more people getting on board, insects could be the next big thing on our plates and in our pet’s bowls.

So, there you have it: a partnership that’s all about bugs, big ideas, and a better planet. Stay tuned to see how this bug story unfolds!

Fonterra’s Huge Profit Jump as Milk Prices Surge!

Discover how New Zealand’s Fonterra Co-operative is thriving, raising its 2024 earnings forecast amid strong dairy demand. Learn about the significant increase in farmgate milk prices to NZ$7.00-NZ$8.00/kg and a boosted earnings outlook, with a first-quarter profit surge of 61.7% reaching NZ$346 million.

Fonterra Boosts 2024 Earnings and Milk Price Forecasts Amid Surging Demand, Reports 61.7% Profit Jump

New Zealand’s Fonterra Co-operative has raised its fiscal 2024 earnings and farmgate milk price forecasts due to increased demand for dairy products, particularly from significant importers. The new farmgate milk price range is NZ$7.00 to NZ$8.00 per kilogram of milk solids, up from the previous NZ$6.50 to NZ$8.00. This change follows a rise in Global Dairy Trade prices. The company also boosted its 2024 earnings per share projection to between 50 and 65 NZ cents, anticipating a robust interim dividend.

Fonterra’s first-quarter profit soared by 61.7% to NZ$346 million, driven by higher margins in its main sales channels: ingredients, food service, and consumer products. CEO Miles Hurrell expects these margins to remain high in the first half of the year, with a tightening anticipated in the second half.

About Fonterra Dairy

Fonterra Co-operative Group, a leading player in the global dairy industry based in New Zealand, is renowned for its financial achievements and strategic initiatives. Originating from a merger in the early 2000s, Fonterra has grown into one of the world’s largest dairy exporters. Central to its ethos are quality and sustainability, supported by a network of over 10,000 farmers who are not just suppliers but shareholders. Despite its global presence in over 140 countries, Fonterra maintains a keen understanding of local market nuances.

Innovation is key to its operations, with significant investments in research and development to stay ahead in the competitive dairy industry. While facing challenges such as market fluctuations and environmental concerns, Fonterra’s adaptability has been its strength.

Looking forward, the company aims to bolster sustainability, improve efficiency, and expand its global reach, continuing to be a leader in the dairy industry and a symbol of innovation, quality, and resilience.

Top Dairy Producers In The World

Explore the top dairy producers of 2023 in this comprehensive report, featuring a detailed analysis of leading dairy-producing countries and companies. Gain insights into the global dairy industry with key data on production volumes and revenue, highlighting major players like Nestlé, Lactalis, and Dairy Farmers of America. Essential reading for industry professionals and those interested in global dairy market dynamics.

As of 2023, the top dairy producers in the world can be categorized into two main groups: countries and companies.

Top Dairy Producing Countries

European Union
United States
India
China
Brazil

These rankings are based on the overall production of cow milk.

Top Dairy Companies by Revenue

Nestlé (Switzerland)
Lactalis (France)
Dairy Farmers of America (United States)
Danone (France)
Yili Group (China)
Fonterra (New Zealand)
FrieslandCampina (Netherlands)
Mengniu Dairy (China)
Arla Foods (Denmark)
Saputo Inc. (Canada)

Dairy production is crucial globally, providing essential nutrition, economic livelihoods, cultural value, and contributing to food security. Despite sustainability challenges, it remains a key sector, driven by continuous innovation and research.

Smithfield Foods cuts farmers contracts

Explore the latest developments as Smithfield Foods significantly reduces contracts with farmers. Understand the implications for the pork industry, local communities, and the broader market. Stay informed on how these strategic shifts by a key industry player reflect wider economic trends and affect various stakeholders. Get in-depth analysis and expert insights in our comprehensive coverage.

Smithfield Foods to Cut Utah Contracts Amid Market Challenges, Initiates Workforce Transition

Smithfield Foods’ decision to end contracts with Utah farms is part of a larger industry trend. Many food companies are facing similar challenges. High feed costs and changing consumer habits are big factors.

The company’s Utah operations have been significant. But now, Smithfield is focusing on other areas. They want to make their operations more cost-effective. This involves tough choices like contract cuts.

Shane Smith emphasizes the need for these changes. He says it’s vital for staying competitive. The company is committed to supporting its employees during this transition. They are offering help like job relocation and transition assistance.

Go to: Top 10 Largest Pork Producers in the USA – A Comprehensive Ranking

Smithfield’s Strategic Shift: A Ripple Effect Across the Pork Industry and Beyond

The impact of these changes goes beyond Smithfield. It affects the wider community and other businesses. Local farmers and suppliers might feel the effects too. Smithfield’s moves could influence the whole pork industry.

Smithfield Foods is a key player in the U.S. food sector. Its decisions often set trends in the industry. The company’s actions reflect wider economic and market pressures. They also show how big companies adapt to stay ahead.

In summary, Smithfield’s Utah contract ends are a sign of changing times. They show how companies respond to market challenges. They also highlight the impact on workers and local economies. Smithfield is adapting to stay strong in a tough market.

Check out: Top 10 Leading Pork Brands in the World

JBS Commitment to First Mover Coalition for Food

Explore JBS’s commitment to sustainable agriculture through its recent inclusion in the First Movers Coalition for Food. Led by the World Economic Forum and supported by global entities, this initiative aims to revolutionize farming methods to reduce carbon emissions and support the Paris Agreement goals. CEO Jason Weller emphasizes the crucial role of sustainable practices in meeting global food demands while protecting the environment. Discover how leading companies and governments are collaborating to create a more sustainable future in agriculture, with expected outcomes by the second half of 2024.

JBS Joins Global Initiative to Advance Low-Carbon Livestock and Sustainable Agriculture

JBS is now part of the First Movers Coalition for Food. This is a big step for them. They want to help develop livestock that creates less carbon. The World Economic Forum leads this project. The UAE government and 19 companies also help. Their goal is to make farming better and more sustainable. They want to use new methods and technologies. This will help the planet by reducing carbon from agriculture. The members of the coalition have a plan. They want to work together to buy $20 billion worth of eco-friendly products.

Also, this coalition is an extension of another project. The First Movers Coalition for Industry started at a big meeting called COP26. This was in Glasgow, Scotland. US President Joe Biden and the World Economic Forum started it in 2021.

Related: JBS explores Saudi investments

JBS CEO Stresses Crucial Sustainable Agriculture

Jason Weller, who is the CEO of JBS Global, talked about this. He said that how we make food is very important. It helps us meet the goals of the Paris Agreement. These goals are about reducing global warming. At the same time, we need to feed more people in the world. He thinks that farming in a sustainable way is key. It can help us move to a world where agriculture doesn’t harm the environment as much.

Many different groups are part of this coalition. There are big agriculture businesses and other important partners. These include groups of farmers and researchers. Governments are also joining in. Together, they want to improve how we produce food. They aim to use new, sustainable ways of farming. By 2030, they hope to have a big demand for products made this way.

Global Coalition Unites for Sustainable Farming Practices

The World Economic Forum shares more information. The companies in the coalition are very big. Together, they make $2.1 trillion. They work all over the world. These companies know that we need to farm in a way that’s better for the planet.

Starting in December 2023, they will begin working together. The World Economic Forum, the companies, and the governments will join forces. They will figure out how to support and grow this new way of farming. We can expect to see their first results in the second half of 2024.

Read: Top 10 Largest Meat Exporting Country Volumes

JBS Joins First Mover Coalition for Food

Tyson Foods Employees Class Action

Explore the details of the Tyson Foods 401(k) lawsuit where employees allege high fees and mismanagement. Understand the impact on retirement savings and the implications for corporate 401(k) plans.

Tyson Foods 401(k) Lawsuit: Employees Challenge High Fees

Employees of Tyson Foods have taken legal action against the company. They claim its 401(k) plan charges excessive fees. This class action lawsuit was filed in the Western District of Arkansas. It targets Tyson’s retirement plan committee for overcharging. The plan serves 67,276 participants and holds $3.2 billion.

Two major complaints are in the lawsuit. First, the fees are much higher than in similar plans. Second, Tyson did not properly oversee these fees. Compared to lower fees by Fidelity and Vanguard, Tyson’s fees stand out. The lawsuit suggests Tyson could have negotiated better rates.

More company news: Tyson Foods News State of The Art Facility

Tyson Foods and Northwest Plan Services

The goal of the lawsuit is to get back the lost money for all plan members. So far, Tyson Foods and Northwest Plan Services have not responded. Legal experts have noticed more lawsuits like this. They often involve high fees and bad investment choices. This case is important for fair management of 401(k) plans.

The lawsuit reflects a growing concern about retirement plan fees. High fees can greatly reduce retirement savings over time. This case could set a precedent for how large companies manage their retirement plans. It could lead to more transparency and fairness in 401(k) fees. The outcome of this lawsuit could impact many employees and their retirement savings.

https://www.planadviser.com/tyson-foods-employees-allege-excessive-plan-fees/Tyson Foods lawsuit: Employees claim high 401(k) fees, mismanagement. Impact on retirement savings & corporate plans.

In Major Salmon Case, Big Payout Agreed by Firms

Discover the latest update in the salmon farming industry as seven major companies, including Mowi and Grieg, settle a class-action lawsuit over global price-fixing allegations. Learn about the over $5 million settlement, its impact on the industry, and what it means for large salmon buyers in Canada. Get insights into the legal implications and find out who is eligible for compensation in this significant development.

Salmon Farming Companies Settle Price-Fixing Lawsuit for Over $5 Million

In a significant development, seven salmon farming companies have decided to settle a lawsuit. This lawsuit accused them of working together to fix salmon prices worldwide. The firms, including Newfoundland and Labrador’s Mowi and Grieg, will pay more than $5 million.

The case involved big names in the industry, such as Cermaq Canada and Lerøy Seafood. They were said to have influenced salmon prices by controlling the Norwegian market. This action would have affected prices globally. However, this was never proven in court. By settling, the companies do not admit they did anything wrong.

Eligible Buyers to Claim Part of Multi-Million Dollar Salmon Lawsuit Settlement

Linda Visser, a lawyer, says settling can save companies time and money. This settlement is important for those who bought a lot of salmon in Canada between April 10, 2013, and February 20, 2019. They can now claim part of the settlement money.

The firms have also decided to donate $250,000 to Food Banks Canada. This settlement still needs the Federal Court’s approval. This case is a big deal in the salmon industry and for those who buy salmon.

Thai Unions 11.4bn Incredible Finance Deal

Explore Thai Union Group’s groundbreaking journey in sustainable finance with its recent 11.4 billion baht sustainability-linked loan. Delve into the company’s ambitious Blue Finance strategy aiming to revolutionize its long-term financing with a focus on ocean conservation. Discover how leading global banks are supporting Thai Union’s commitment to a sustainable future, marking a significant milestone in the seafood industry.

Thai Union Group Announces Major Sustainable Finance Achievement

In a significant move towards sustainability, Thai Union Group, a leading global seafood powerhouse, has proudly announced the successful acquisition of a monumental 11.4 billion baht sustainability-linked loan (SLL). This strategic financial milestone was unveiled at the much-anticipated Sustainability Expo in October 2023, held at the prestigious Queen Sirikit National Convention Center.

Thai Union’s Blue Finance Strategy: A Leap Toward Sustainable Future

Marking a new era in its financial strategy, this SLL package is a pivotal part of Thai Union’s innovative Blue Finance agenda. With a forward-looking vision, the company is steadfast in its commitment to enhance its sustainability-linked finance. The target is ambitious yet achievable: to amplify this to 75% of the company’s long-term financing by 2025.

Reflecting on its sustainable finance journey, Thai Union has already achieved commendable progress. Between 2020 and 2022, the company triumphed in the first phase of its Blue Finance initiative. This phase saw a significant increase in its long-term SLL, reaching 50% of its long-term financing. This initiative underscores the company’s dedication to promoting sustainability, particularly in ocean conservation, which is crucial for the future of our planet.

Leading Global Banks Back Thai Union’s Sustainability-Linked Loan

The newly secured SLL, unique in its structure, is denominated in both Thai baht and US dollars. It spans across various tenors, including three and five-year periods. This robust financial package is backed by a consortium of leading global banks. These include HSBC, Bank of Ayudhya, MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation. These financial giants have played a pivotal role, acting as the mandated lead arranger, bookrunner, and sustainability coordinators for this trailblazing financing.

Thai Union’s successful venture into sustainable financing has garnered immense support from these top-tier banks. This collaboration not only highlights Thai Union’s commitment to sustainable practices but also reflects the confidence of the global financial community in the company’s vision and long-term goals. This milestone is a testament to Thai Union’s leadership in the seafood industry and its unwavering commitment to a sustainable future.

US Govt vs. Poultry Industry: Cracking Down on Unfair Practices

Explore the impact of antitrust enforcement on the poultry industry in this insightful article. Discover how recent legal actions by the US government are transforming chicken farming practices, addressing price-fixing and wage issues. Learn about the challenges and significance of these changes for fairer market competition and their potential influence on future policies.

US Antitrust Rules Change Chicken Farming

Recently, the government’s legal steps have made big changes in chicken farming. For a long time, chicken companies paid farmers in a way that often wasn’t fair. Farmers couldn’t control much about their pay. But now, new agreements are changing this system.

The Biden government’s strong actions against unfair business practices have helped a lot. The Department of Justice got involved and made real improvements. In a big move, companies in a legal case about low wages agreed to stop using the old pay system. Now, all chicken farmers will get at least a basic pay. This is a big step towards fairer work in chicken farming.

Legal Battles Show Tough Antitrust Rules

These changes didn’t come easy. Big legal cases against chicken companies, about fixing prices and low wages, ran into many problems. Some trials didn’t end with clear results, making people wonder if the government’s plan was working. The defense said the higher prices were just normal market changes, not secret deals. This idea seemed to make sense to the juries.

The trouble in court made people think about whether our laws are strong enough to control big companies. Trying to solve these problems in court is good, but it’s hard to prove when companies are breaking the rules. Now, people are talking about whether we need new laws for today’s big companies.

Poultry Industry’s Legal Issues with Prices and Wages

Despite these problems, the government’s work is getting attention. They’re focusing on how a few big companies control the market, which affects prices and wages. These legal cases haven’t all been won in court, but they’ve started important talks about stronger rules against unfair business practices.

Also, these changes in the chicken industry remind us that the government should support fair competition and look after both customers and workers. As the government keeps working on these issues, the results of these cases will be important. They could change how the chicken industry works and lead to new policies in the future.

Source: New York Times.

World’s Largest Fishing Companies

Explore the leading giants of the global fishing industry in 2023. Dive into our comprehensive overview of the top fishing companies, including Iceland’s Sildarvinnslan HF, China’s versatile Cgn Nuclear Technology Development, and more. Discover how these major players, with their impressive market caps and diverse operations, are shaping the worldwide fishing sector. Stay informed about the industry’s key contributors and their global impact.

In a vibrant display of global industry diversity, the fishing sector’s giants of 2023 stand out for their impressive market capitalizations and international presence.

A List of The World’s Largest Fishing Companies:

1. Sildarvinnslan HF – Iceland’s Fishing Titan

Dominating Iceland’s fishing landscape, Sildarvinnslan HF is not just a local hero but a global force. Boasting a market cap of $1.627 billion as of July 2023, this company is a leading name in fishmeal and fish oil production, cementing Iceland’s status in the global fishing industry.

2. Cgn Nuclear Technology Development – China’s Multi-Faceted Player

Cgn Nuclear Technology Development, primarily known for its involvement in various industries like plastics and real estate, also makes a significant splash in fishing. With a July 2023 market cap of $1.067 billion, it’s a testament to China’s diverse industrial prowess.

3. PJSC Russian Aquaculture – Russia’s Aquatic Pride

Rooted in Russia, PJSC Russian Aquaculture merges the worlds of fishing, poultry, and farming. The company’s market cap stood at $0.621 billion as of late 2022, showcasing Russia’s robust presence in the global fishing scene.

4. Aker Biomarine AS – Norway’s Biotech and Fishing Fusion

Norway’s Aker Biomarine AS, blending biotechnology with fishing, marked a market cap of $0.334 billion by July 2023. This innovative approach highlights Norway’s cutting-edge contributions to the fishing sector.

5. Shanghai Kaichuang Marine International: China’s Versatile Contender

Shanghai Kaichuang Marine International, a diverse player in fishing, poultry, and farming, showcased a market cap of $0.333 billion as of July 2023. This highlights China’s versatile and dynamic approach in the global market.

6. Compania Pesquera Camanchaca – Chile’s Coastal Champion

Chile’s Compania Pesquera Camanchaca, active in fishing, poultry, and farming, had a market cap of $0.255 billion by mid-2023. This underlines Chile’s significant role in the global fishing industry.

7. Yonkyu – Japan’s Seafood Specialist

Japan’s Yonkyu, focusing on fishing, meat, poultry, and farming, recorded a market cap of $0.201 billion as of July 2023. It’s a reflection of Japan’s deep-rooted expertise in the seafood sector.

8. Saudi Arabia’s Jazan Energy and Development: A Diverse Powerhouse

With operations in agriculture, fishing, poultry, and farming, Saudi Arabia’s Jazan Energy and Development held a market cap of $0.198 billion in July 2023, showcasing the kingdom’s diverse industrial landscape.

9. Sea Harvest Group – South Africa’s Ocean Harvest

The Sea Harvest Group from South Africa, involved in fishing, poultry, food products, and farming, had a market cap of $0.161 billion as of mid-2023. This positions South Africa as a key player in the global fishing market.

These companies, with their vast and varied operations, not only shape the global fishing industry but also reflect the economic and cultural diversity within this sector. They stand as pillars of an industry that’s as dynamic as the oceans they harvest.

On of the world’s largest fishing “super-trawlers” in action

European Pork Industry 2023 Review: Challenging Times

A comprehensive overview of Europe’s pork production landscape in 2023. This article delves into the latest trends, highlighting the top pork producing countries within the EU, with a special focus on Spain’s rise as the leading pork producer. We explore the challenges and changes faced by major European pork producers, including the impact of African Swine Fever on Germany’s market and adjustments made by key companies like Tönnies. Stay informed about the industry’s dynamics, key players, and future outlook in this detailed analysis.

The European pork industry has experienced significant changes in 2023. Here’s a comprehensive overview:

European Pork Industry Overview in 2023

Production Decline: European pork production witnessed an 8% reduction in the first seven months of 2023 compared to the previous year. This decrease is mainly attributed to the liquidation of 1 million sows following substantial financial losses.
Price Trends: Despite the lower production levels, hog prices in Spain declined for 14 consecutive weeks. The price dropped from 2.025 Euro/kg to 1.658 Euro/kg. However, these prices are still higher compared to the same period in other years.
Challenges: The industry faces numerous challenges, including environmental and animal welfare regulations, older facilities, generational issues in family farms, high feed costs, and diseases like ASF and PRRS. These factors contribute to the continued decline in pork production.

Production by Major European Countries

Spain: Remains the largest producer of pig meat in Europe, though it has seen the largest year-on-year decline, with production levels in Q1 2023 dropping by 7% compared to Q1 2022.
Germany and Denmark: Also reported significant production falls of 8% and 20%, respectively, from 2022 levels.
Other Key Countries: The Netherlands, France, and Belgium saw production drops ranging between 5-10% compared to the previous year. Poland recorded the smallest decline among the major producers, with a 3% reduction in the first quarter.

Overall, the European pork industry in 2023 has been marked by a reduction in production, influenced by various challenges and shifts in market dynamics. The overall pork production in Europe has been declining. In the first seven months of 2023, the EU-27 countries produced 11.9 million tonnes of pork, which is an 8% decrease from the same period in the previous year. This decline is consistent across major pork-producing countries, including Germany, the Netherlands, and Denmark. Despite these challenges, major players continue to operate and adapt to the evolving market conditions.

Top Players in the European Pork Industry

Major European Pork Producers: Some of the known large pork producers in Europe include Vion Food Group in the Netherlands and Tönnies in Germany. Vion Food Group has adjusted its production capacities in Germany, and Tönnies has also made changes to its production capacity.

These companies are key competitors in the industry, contributing significantly to the market dynamics.

Global Perspective: In 2022, the world’s MEGA pork producers (operations with 100,000 sows or more) were mainly headquartered in China, the USA, Brazil, Spain, and Russia. Notably, Spain and Germany are the leading pork producers in the European Union.

BRF’s Innovative Grain Purchasing Approach

Discover BRF’s sustainable transformation in this insightful article. Learn how the Brazilian food giant plans to increase direct grain purchases to 40%, enhance supply chain control, and achieve 100% traceability with suppliers by 2025. Explore their commitment to environmental responsibility, including ceasing purchases from deforested areas, setting a new standard in the industry.

BRF, Leading Brazilian Food Processor, to Enhance Grain Purchase Strategy for Improved Traceability

In a significant move towards sustainable sourcing, BRF BRFS3.SA, a top-tier food processor in Brazil, has announced its ambitious plan to intensify direct grain purchases from local farmers. This strategic shift aims to elevate the company’s traceability standards, a vital step in ensuring a sustainable and transparent supply chain.

BRF Targets 40% Direct Grain Purchases in Sustainability Push

The company, renowned as one of Brazil’s largest purchasers of corn and soybeans, has set a target to procure 40% of its grain directly from farmers by the upcoming year. This initiative marks a considerable increase from the 17% direct purchases recorded last year and 32% in 2023. Such an expansion in direct procurement underscores BRF’s commitment to enhancing control over its production chain and achieving its traceability objectives.

In an effort to facilitate this transition, BRF has undertaken significant organizational changes. These include redeploying staff from corporate sectors to rural units and bolstering grain purchasing teams in key agricultural states like Mato Grosso and Minas Gerais. These moves demonstrate the company’s dedication to strengthening relationships with local farming communities and enhancing the efficiency of its supply chain.

BRF Sets Ambitious Goal for 100% Supplier Traceability by 2025

Further amplifying its commitment to sustainability, BRF has updated its goal to achieve 100% traceability from both direct and indirect suppliers by 2025, as articulated by Raquel Ogando, the company’s Director of Reputation and Sustainability. Currently, BRF boasts complete traceability of direct grain suppliers in critical biomes such as the Amazon and Cerrado. Additionally, the company is on track to increase traceability from its indirect suppliers to 75% this year, a notable rise from the previous 45%.

In a bold stance towards environmental conservation, BRF has also declared its intention to discontinue grain purchases from legally deforested areas in the Brazilian Cerrado biome by the end of 2025. This decision aligns with the company’s long-standing policy of not sourcing grains from deforested areas in the Amazon since 2008. Ogando highlighted that from 2026, BRF will completely cease working with grains from any legally deforested areas, aligning with the science-based targets initiative (SBTi) principles.

BRF to Halt Grain Purchases from Legally Deforested Areas in Cerrado by 2025

This series of strategic decisions by BRF not only fortifies its position as a leader in sustainable food processing but also sets a benchmark in the industry for responsible and environmentally conscious business practices. The company’s efforts reflect a growing trend among global corporations to prioritize sustainability and traceability in their supply chains, ensuring a better future for the planet and its inhabitants.

South America Set to Lead 50% of World Beef Exports

Discover how South America, led by Minerva Foods, is poised to dominate 50% of global beef exports in the next five years.

South America Eyes Half of Global Beef Exports by 2028, Says Minerva CEO

In a bold forecast that highlights the shifting dynamics of the global beef industry, Minerva Foods’ CEO Fernando Queiroz has announced that South America is set to account for a staggering 50% of the world’s beef exports within the next five years. This marks a significant rise from the current 40%, signaling a potential reshaping of global beef trade patterns.

The CEO’s remarks came during a recent event hosted by Minerva, a major player in the beef processing sector. This prediction is underpinned by a series of strategic expansions and acquisitions by Minerva, notably the purchase of facilities from their competitor Marfrig. This move not only strengthens Minerva’s presence in South American markets but also reflects the region’s growing influence in the beef industry.

South America’s ascendancy in the global beef market is not just a matter of increased capacity. The region’s predominance in grass-fed cattle farming, seen as a key competitive advantage, and its comparatively lower labor costs, especially against the backdrop of the U.S., the current world leader in beef production, play crucial roles. These factors contribute to a more cost-effective and potentially more sustainable beef production model.

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Strategic Acquisitions Propel South America to Beef Export Dominance

Over the past 15 years, Minerva has been on a significant acquisition spree, with 20 takeovers aimed at cementing its position in top beef-exporting nations like Brazil, Argentina, Uruguay, and Paraguay. This aggressive expansion strategy reflects the company’s ambition to become a central figure in the global beef market.

A recent landmark deal in August further underscores this ambition. Minerva announced an agreement to acquire cattle and sheep slaughtering units from Marfrig for R$ 7.5 billion real ($1.54 billion). This acquisition is expected to boost Minerva’s slaughtering capacity by about 44%, allowing it to process over 42,000 heads per day across its units in Brazil, Uruguay, Argentina, and Chile.

Backing this expansion is a robust financial commitment from JP Morgan Bank, ensuring that Minerva has the necessary resources to complete these ambitious plans.

The Future of Beef: South America’s Growing Global Influence

As the global beef market continues to evolve, South America’s emerging dominance, led by companies like Minerva, is a development that industry watchers and stakeholders around the world will be keenly observing. This shift could herald a new era in beef production and trade, with far-reaching implications for producers, consumers, and the global economy.

Read: Top 10 Argentina beef producers

Brazil’s Top 10 Largest Meat Supplier Powerhouses

Brazil’s Meat Industry Powerhouses: A Look at the Top 10 Suppliers

São Paulo, Brazil – Brazil’s meat industry is a global powerhouse, boasting a roster of top suppliers that drive not just the national economy but also play a crucial role in the world’s food supply chain. This report delves into the top 10 meat suppliers in Brazil, highlighting their financial muscle and market presence.

JBS S/A Leads the Pack

Topping the list is JBS S/A, headquartered in Osasco. With a staggering revenue of $18.7 billion in the third quarter of 2023, JBS S/A isn’t just a national leader; it’s a global titan in the meat industry. Its extensive operations and market reach set the benchmark in the sector.

Marfrig: A Strong Contender

Close on the heels of JBS is Marfrig, based in Barretos. Though the data from the first quarter of 2022 places its revenue at 22.3 billion reais, this figure underlines the company’s significant position in the market. Marfrig’s financial results reflect its robust presence both in Brazil and internationally.

Minerva S/A: Robust and Growing

Minerva S/A, another Barretos-based giant, reported a commendable 7.56 billion reais in revenue in the third quarter of 2023. This performance cements Minerva’s status as a key competitor and a robust player in the meat supply landscape.

MAIS FRANGO MIRAGUAI: Small but Mighty

Showing that size isn’t everything, MAIS FRANGO MIRAGUAI from Miraguaí makes its mark with a revenue of $122.26 million. This figure is a testament to the company’s significant contribution to Brazil’s meat industry, despite its smaller scale compared to industry leaders.

Brazil’s Top 10 Largest Meat Supplier Powerhouses

The Unsung Heroes

Rounding out the top 10 are Frigorifico Better Beef (São Paulo), Frigorifico Silva Industria e Comercio (Santa Maria), Vale Grande Industria e Comercio de Alimentos (Sinop), PLUSVAL AGROAVICOLA (Umuarama), Frigorífico Redentor S/A (Guarantã do Norte), and Notaro Alimentos (Belo Jardim). While specific revenue data for these companies are not available, their inclusion in this list underscores their importance in Brazil’s meat supply chain.

The Brazilian Meat Industry: A Global Force

This report not only highlights the financial prowess of these companies but also underscores Brazil’s significant role as a leading meat exporter and producer on the global stage. The industry’s dynamic nature, marked by these top players, reflects Brazil’s evolving and influential position in the global meat market.

Author: Essa Eshat

Relevant organisations: ABIEC

JBS explores Saudi investments

Explore the latest strategic business expansion of JBS SA’s parent company J&F into Saudi Arabia, highlighting significant investment plans, the impact on global meat industry, and strengthening Brazil-Saudi economic relations. Stay informed about this pivotal development in international trade.

JBS SA’s Parent Company J&F Explores Significant Investment Opportunities in Saudi Arabia

Introduction

In a recent development that underscores the growing business ties between Brazil and Saudi Arabia, J&F, the parent company of JBS SA (JBSS3.SA), has expressed its intention to expand its investments in Saudi Arabia. This move aligns with the ongoing efforts of the Brazilian government, led by President Luiz Inacio Lula da Silva, to strengthen international business relations.

Growing Interest in Investments

During a high-profile meeting involving President Luiz Inacio Lula da Silva in Riyadh, Wesley Batista, a prominent figure from JBS’ founding family, announced the company’s increased interest in making substantial investments in Saudi Arabia. This statement marks a significant shift in JBS’ investment strategy, indicating a deeper commitment to expanding its global presence, particularly in the Middle East.

JBS’ Expanding Operations in Saudi Arabia

J&F, a conglomerate with diverse interests in food, mining, pulp, paper, and energy sectors, currently operates a plant in Damman and is in the process of constructing another in Jeddah. The completion of the Jeddah facility is set to quadruple JBS’ capacity in Saudi Arabia, allowing the company to produce 40,000 metric tons of processed chicken products annually.

Strategic Economic Relations

Saudi Arabia, noted as the Middle East’s largest economy, is a key trading partner for Brazil, with bilateral trade exceeding $8 billion in 2022. Brazil’s prominence as the world’s top exporter of halal meats aligns well with the demands of the Middle Eastern market. However, JBS faces intense competition from other Brazilian giants such as BRF, Minerva, and Marfrig, who are also active in the Gulf region.

Related: JBS NY Listing Struggle

Saudi Arabia’s Vision for the Food Sector

Khalid Al-Falih, Saudi Arabia’s Minister of Investment, highlighted the food sector as a primary area of cooperation between Brazil and Saudi Arabia. He articulated Saudi Arabia’s ambitions to achieve food security and become a global hub in the meat sector, signaling potential for increased collaboration and investment in the future.

Conclusion

The announcement by J&F about considering further investments in Saudi Arabia is a significant development in the global meat industry. It not only reinforces the strategic economic ties between Brazil and Saudi Arabia but also highlights the evolving landscape of international trade and investment. As JBS SA expands its operations, it contributes to a broader narrative of global business growth and intercontinental partnerships.

Why Marel Rejected JBT Acquisition Bid

Marel Declines JBT’s Acquisition Offer, Prioritizing Shareholder Value and Strategic Goals

Marel, a leading Icelandic food equipment company, recently made headlines by declining a significant acquisition offer from Chicago-based John Bean Technologies (JBT) Corp.

This key decision, announced on November 28, showcases Marel’s commitment to its shareholders and strategic business objectives. JBT’s non-binding proposal, made on November 24, valued Marel at 3.15 euros per share, including all shares and existing debts.

However, after a comprehensive review, Marel’s board unanimously determined that the offer did not reflect the company’s true market value and involved substantial transaction risks. This move by Marel underscores its dedication to evaluating any future mergers or acquisitions that more accurately represent its worth and align with its long-term industry consolidation strategy.

Marel’s focus on securing the best interests of its stakeholders and maintaining its position as a key player in the food equipment industry is evident in this decision, signaling its openness to strategic growth opportunities that meet its stringent criteria.

Dive into the top 10 meat processing giants transforming the industry. Discover key players like Marel & JBT in our dynamic article.

Marel Company Overview

Founded in 1983 in Iceland, Marel has grown into a multinational food processing company, specializing in advanced equipment and solutions for the poultry, meat, fish, and alternative protein sectors. With strategic acquisitions and innovation, it employs around 8,000 people and operates in over 30 countries.

John Bean Technologies (JBT) Company Overview

Founded in 2008, John Bean Technologies (JBT) is a global leader in technology solutions for the food, beverage, and aviation industries. Based in Chicago, it employs about 7,200 people and operates two main segments: FoodTech and AeroTech, offering comprehensive products and services across these high-value industries.