In association with Dematic
Free Case Study: World’s First Indoor Vertical Farming Facility for Sustainable Protein
Aspire Food Group is a world leader in building ethical, automated food-grade protein production systems. With a focus on global food sustainability and making a low environmental footprint, Aspire builds the first fully automated food-grade insect protein manufacturing plant partnered with Dematic. Watch how it works!
Trending
1. Fukushima nuclear wastewater raises global concerns about Japanese seafood.
2. Meat, milk and plant base product prices surge in Germany.
3. The potential of aquaculture as a climate solution.
Meat, Dairy & Seafood News
Read: USDA data shows substantial Jan-Feb broiler export growth – We list the top nations.
BRF
BRF, one of the largest global food companies, has partnered with VTEX, an enterprise digital commerce platform, to digitalize its B2B sales. BRF has launched its B2B ecommerce in Chile, which is its largest market in Latin America, after Brazil. The new platform will enable BRF to double its presence in the region and offer a high level of market segmentation, contributing to the definition of niches. The B2B ecommerce project developed by VTEX will provide each client-company with a personalized virtual store, including access to a salesperson and all their offline purchase history integrated into the system. The platform combines the entire purchase history of each supermarket and butcher shop with numerous customization possibilities. BRF intends to leverage the work of sales professionals through this digital channel and evolve towards an even more strategic role in the company.
Cargill
Cargill, along with Viterra and Louis Dreyfus, has announced it will no longer buy grain for export from Russia, which could lead to obscure prices and less efficiency in the global grains market, according to Alex Sanfeliu, Cargill’s head trader. Russia is the world’s top wheat exporter, and government-funded traders have been increasingly dominant in the market. This development could put a strain on global wheat traders, as Russian wheat sets the price. Sanfeliu noted that there is potential for more deals between Russia and other governments, but such arrangements take a long time to execute.
Cooke Seafood & Nueva Pescanova
Canadian corporation Cooke Seafood Inc has acquired 80% of Nueva Pescanova, the fishing processing conglomerate, from the Galician banking corporation Abanca. Nueva Pescanova has subsidiaries in the South Atlantic, including Argentina, with 16 fishing vessels involved in catching shrimp, squid, and toothfish. Cooke Seafood Inc is a global marine protein industry major, with annual sales of $1.8bn, and operations in 12 countries, including aquaculture, high seas fishing, and fish farming nutrition. The company has recently made several acquisitions, including Seajoy, Morubel, Tassal, and Omega Protein, among others, to diversify its supply production. Cooke Seafood’s acquisition of Nueva Pescanova is expected to be worth between $600m and $800m.
Dairy Farmers of America
Dairy Farmers of America Piper Systems, an Irish agritech company, has signed a €1.8 million deal with Dairy Farmers of America (DFA) to provide bulk orders of its systems to farms in the central and southeast regions of the US. The deal, which includes a capital investment in the equipment, will improve milk collection, loading, and sampling through the use of advanced automation and data, ensuring farmers are paid fairly for their milk. The system is modular, making it relatively easy to repair if needed, and ensures traceability at all steps of the chain. The company will also target other large co-ops in the US and hopes to pursue further business opportunities with DFA. The technology could be repurposed for use with other industries in the future.
Impossible Foods
Patrick Brown, the founder of Impossible Foods, gave a lecture at the USC Health Sciences Campus, where he discussed the challenges facing the meat industry and the need to shift food production to address problems caused by animal agriculture, such as a significant drop in biodiversity and a changing climate. Brown emphasized the urgency of finding a drastic and dramatic solution and stated that developing plant-based meat alternatives can enable food producers to refine and evolve their products. Brown’s mission to replace animals in the global food system inspired the founding of Impossible Foods. The lecture was part of the Dean’s Transformative Lecture Series, which highlights individuals who have translated their research into practical applications.
International Dairy Products
International Dairy Products (IDP), a Vietnamese dairy manufacturer, has entered into a partnership with Growtheum Capital Partners (GCP), a Singapore-based firm. GCP has acquired a 15% stake in IDP for approximately $100 million, which will help it expand its reach in the growing dairy market in the region. The partnership will enable IDP to quickly expand its business in Vietnam and opportunistically across South East Asia. IDP reported sales of VND 6.1 trillion (around $259.49 million) for 2022, making it one of the fastest-growing consumer firms in Vietnam. GCP is looking forward to collaborating with IDP’s management team and shareholders to strengthen the company’s market position in Vietnam and extend its presence in regional markets. CEO of IDP, Dang Pham Minh Loan, expressed her belief that the partnership will benefit the company’s next phase of growth by leveraging Growtheum’s industry knowledge, regional reputation, and approach to supporting management teams in creating lasting businesses.
JBS
Brazilian meatpacking company JBS SA has agreed to pay $25m to settle a lawsuit accusing it of conspiring with industry rivals to restrict market supply to keep beef prices artificially high. The settlement, subject to a judge’s review and approval, requires JBS to cooperate in ongoing cases against corporate defendants that have not settled, including Cargill Inc and Tyson Foods Inc. This is the second settlement JBS has reached in the case, having agreed last year to pay $52.5m to grocers and other plaintiffs. JBS has denied liability as part of the settlement.
Mowi Seafood
Norwegian farmed salmon producer, Mowi, is launching a range of chilled ready-to-cook salmon products under the name Mowi Bistro Bakes. The range comprises of four different products, including Salmon Pastries, Salmon & Cheese Melts, Salmon & Spicy Tomato Bake, and a Zesty Salmon Roasting Joint, and will be available at Sainsbury’s and Asda stores across the UK from 20 April. The salmon is farmed in Scotland and processed at a Mowi facility in Fife, with all products accredited by the Aquaculture Stewardship Council. The move marks Mowi’s first foray into the ready-to-cook category, with the company seeking to build up its brand for retail markets.
Moy Park
Moy Park, Ireland’s chicken brand, is bringing back its BBQ range for summer, with the addition of four new products inspired by recent market trends including takeaways and flavours from around the globe. The new products include Texas BBQ Chicken Steaks, Chicken Burgers, Piri Piri Chicken Wings and Honey Chilli Chicken Breast Chunks. The range aims to take the hassle out of summer mealtimes while not compromising on taste and variety. Moy Park is also launching an on-pack promotion for its consumers to ‘Win their weekly shop’ as part of the brand’s 80th birthday celebrations.
Sysco
The recent lawsuit involving Sysco Corp. centers on the question of whether unionized workers can strike in solidarity with Sysco workers in other regions over wages and retirement benefits. Sysco argues that its Seattle operation is a separate entity from its operations in Indiana and Kentucky, and therefore the workers in Seattle cannot join the picket line. The case raises the question of whether large corporations are one employer or multiple employers under the law, and whether sympathy strikes are permitted. The answer is not immediately clear and will depend on the facts of the case. The Labor-Management Relations Act allows workers to strike against their employers, but not third parties, and the distinction between primary and secondary strikes has been the subject of litigation in federal court and before the National Labor Relations Board.
Food Services News
Aramark
Trinity University will not renew its contract with Aramark Campus, which will affect approximately 120 workers, including more than a dozen salaried employees. The company has stated that all of its employees assigned to that client account will be affected, and that the cessation of services will result in the permanent termination of its employees at Trinity University as of May 31, 2023. Aramark officials have also noted that some of the affected workers could potentially continue employment with the incoming provider. The company provides food services, facilities management, uniform services, and hospitality management globally.
Elior Group
Elior Group has acquired Derichebourg Multiservices, making it a new global leader in contract catering and multiservices, with around 134,000 employees. The acquisition has strengthened Elior Group’s strategic and financial position, resulting in debt deleveraging from 8.3x to 6.2x on a pro forma basis by the end of September 2022. Additionally, the company expects at least €30 million in annual recurring EBITDA synergies by 2026. The shareholder meeting also approved Elior Group’s new governance structure, appointing Daniel Derichebourg as Chairman and CEO, and Didier Grandpré as CFO and member of its Executive Committee. These changes reflect the enhanced position of Derichebourg SA as the reference shareholder, while independent directors have a strengthened role in approving decisions.
Sodexo
Sodexo has extended its contract for catering, retail and soft services FM at Queen’s Hospital, Romford for a further five years. The company has been providing soft FM services at the hospital since 2006 as part of the PFI contract with ProjectCo and Barking, Havering and Redbridge University Hospitals NHS Trust. As part of the new £140 million deal, Sodexo will implement new portering and cleaning technology. Protecta, an evidence-based infection prevention approach, has been launched at the hospital to promote and support the adoption of best practices in cleaning and decontamination in the hospital, helping them to fight against healthcare acquired infections (HCAIs) and meet the National Standards of Healthcare Cleanliness.
Feed, Nutrition & Ingredients News
ADM
The Green Bison Soy Processing plant is a joint venture between Archer Daniels Midland and Marathon Petroleum, with ADM owning 75% and Marathon Petroleum owning 25%. The plant will process 150,000 bushels of soybeans per day, employ 75 people, and is expected to be operational by this year’s harvest. The plant will provide a more consistent market for local farmers by purchasing soybeans year-round, increasing demand, and resulting in a firmer basis for farmers. The plant’s oil will be converted into biofuel for the California market, which remains relevant even as electric vehicles become more popular. The perception that growing crops for biofuels competes with growing food for human consumption is incorrect, as soybeans can be processed for both soybean oil for biofuels and animal feed for livestock raised for human consumption.
ADM, a company that spans the food and ag value chain, has led a $ 10.5 million fundraising round for Harpe Bioherbicide Solutions, Inc. The funds will support Harpe’s R&D efforts through 2024. Harpe is developing all-natural herbicide formulations that use extracts from a series of plants, including several in the mentha family, to control broadleaf and grass seeds or weeds. The products offer new opportunities for organic and regenerative agriculture for pre, post and desiccation use patterns. The funding round also included iSelect Fund Management, Alexandria Investment Ventures, and private agricultural industry investors. ADM plans to work with Harpe to accelerate the introduction of new, nature-based herbicide options.
Cargill
Cargill Inc.’s head trader has warned that Russia’s increasing control of its wheat exports may lead to more opaque prices and reduced efficiency in the global grains market. Three of the largest global traders, Cargill, Viterra, and Louis Dreyfus Co., have stopped buying grain for export, leaving Russian grain supplies mainly in the hands of domestic and government- funded companies. Russia is the world’s top wheat exporter, and government-funded traders have been gaining a larger share of the market. State-backed OZK, also known as United Grain Co., is one of the top five shippers. According to Cargill’s world trading head, Alex Sanfeliu, potential deals between Russia and other governments may emerge, but executing such arrangements can take a long time.
DSM
Royal DSM, Mara Renewables Corporation and Algal Omega-3 (AO3) are embroiled in a lawsuit, which has seen the two plaintiffs file a counterclaim against DSM. The companies have also challenged DSM’s microbial oil purification and fermentation patents with the European Patent Office (EPO). The patents in question relate to DSM’s algae-based docosahexaenoic acid (DHA) lipids, and the counterclaim states that the patents should not have been eligible for a patent in the first place. Mara Renewables claims that it has its own robust patent portfolio and has been developing sustainable and efficient algal lipids such as DHA since 2005. DSM initially filed a lawsuit against the two companies in January, asking for financial compensation for both past and ongoing infringements, and requesting that the court order the companies to cease production or sale of DHA oil produced using its patented technologies.
Cold Storage, Distribution & Shipping News
J B Hunt
J.B. Hunt Transport Services Inc., a trucking and transportation company, reported lower than expected earnings and revenue for the first quarter of 2023. President Shelley Simpson said that the company is facing a “freight recession” due to deflationary price pressure and inflationary cost pressures. However, the company’s stock rose 0.5% due to management’s optimistic outlook that pricing has bottomed out. Analysts have lowered their stock-price targets after the results, but some remain optimistic about the company’s future. Intermodal President Darren Field said that although demand for intermodal services has been low, he remains optimistic about the future as there will be a time when imports improve, and the company will gain from that.
Maersk
Maersk has released a video of its highly anticipated 2,000 TEU dual-fuel ship that runs on VLSFO or methanol. The ship, which is due for delivery in a couple of months, was ordered two years ago and has since paved the way for the construction of more methanol vessels across Asia. The vessel, which bears the slogan ‘All the way to zero’ on its hull, has successfully moved from the drydock into the water. Maersk has several other methanol dual-fuelled ships under construction in South Korea, while dry bulk, tanker, and cruise ship operators are also considering methanol as their preferred future fuel. According to DNV, methanol was the second most popular alternative fuel choice for newbuild orders last year, with 106 methanol-fuelled ships on order, 68 of which are container ships.
Free Case Study: World’s First Indoor Vertical Farming Facility for Sustainable Protein
Aspire Food Group is a world leader in building ethical, automated food-grade protein production systems. With a focus on global food sustainability and making a low environmental footprint, Aspire builds the first fully automated food-grade insect protein manufacturing plant partnered with Dematic. Watch how it works!
