Beyond The Headlines: FAO Food Price Index edges up, Regenerative coffee highlights

03 May 2024 --- The benchmark for world food commodity prices edged higher in April, as rising meat prices and slight increase for vegetable oils and cereals more than offset decreases for sugar and dairy products. General Mills expanded its pet food portfolio with the acquisition of Edgard & Cooper and Walmart launched a new private label brand.

Market dynamics
The benchmark for world food commodity prices edged higher in April, as rising meat prices and modest upticks for vegetable oils and cereals more than offset decreases for sugar and dairy products. The FAO Food Price Index averaged 119.1 points last month, an increase of 0.3% from its revised March level, while down 9.6% from its year-earlier level. The FAO Cereal Price Index rose 0.3% from March. Global wheat export prices stabilized in April as strong competition among major exporters offset concerns about unfavorable crop conditions in the EU, Russia and the US. Maize export prices increased, influenced by high demand. The FAO Vegetable Oil Price Index also increased by 0.3%, while the FAO Meat Price Index increased by 1.6% in April as international poultry, bovine and ovine meat prices increased. The FAO Sugar Price Index declined 4.4% and the FAO Dairy Price Index decreased marginally, by 0.3%.

UK sheep meat, dairy and beef exports to the EU are holding firm as the bloc’s trade deal with New Zealand comes into force, says the UKs Agriculture and Horticulture Development Board. Improved access for New Zealand sheep meat, beef and dairy to the EU as part of the new NZ/EU Free Trade Agreement (FTA) is unlikely to pose a threat to UK exports.

Analysis from the Agriculture and Horticulture Development Board (AHDB) has revealed that while the NZ/EU FTA, which came into force this week, will allow for increased volume of New Zealand sheep meat to the EU it is unlikely to displace UK exports to the region.

Sustainability highlights
Ten Cargill facilities across the Netherlands are powered by green energy as its partnership with Vattenfall began this week. The partnership sees 78 megawatts of capacity supplied by Windpark Hanze, which is expected to reduce CO2 emissions by approximately 1.3 million metric tons over the ten-year project. 

Walmart launched its latest private brand innovation branded bettergoods.The Cerrado Coffee Growers' Cooperative (Expocacer) published a report that predicts a 92% increase in regenerative coffee by 2027. The expectation is to raise the bar for the years ahead, such as reaching 25,000 hectares of regenerative coffee over the next three years, an increase from around 13,000 hectares currently. The reports noted how the cooperative reached a milestone through the generation of photovoltaic solar energy and obtained results of 143,346.71 kWh, enough to supply the entire energy demand of the administrative building and also part of other sectors. The energy generated by the solar panels avoided the emission of 77.45 tons of CO2. 

Business moves
Walmart launched its latest private brand innovation, bettergoods, which is pegged as “a new elevated experience that delivers quality, unique, chef-inspired food at an incredible value.” The US retail giant adds that the range has been curated by Walmart’s experienced product development team that collaborated with global suppliers to source quality, trend-forward ingredients and flavors.

General Mills expanded its pet food portfolio with the acquisition of Edgard & Cooper, a fast-growing independent pet food companies in Europe, with estimated 2023 retail sales of more than €100 million. The deal advances General Mills strategy to prioritize its core markets, global platforms and local gem brands to drive sustainable and profitable growth. General Mills acquired pet food company Edgard & Cooper.

Rite Aid expanded its delivery partnership with Uber Eats to include alcohol in new markets. Nearly 1,000 select Rite Aid stores across California, Idaho, Michigan, New York, Ohio, Oregon, Virginia and Washington, in the US, are taking part in the expanded delivery.

Other highlights
Givaudan has achieved Fair-On-Pay certification in multiple sites covering a significant number of employees, as part of the company’s strategy to be a leader on employee inclusion. Givaudan achieved certification across Switzerland, Spain, Mexico, Singapore, Argentina, France, Hungary, the Netherlands and the US. This certification is in line with the requirements set by the Equal Pay International Coalition (EPIC), a global organization that works to reduce the gender pay gap.

Shiru launched the “world’s first” marketplace and discovery platform for proteins. ProteinDiscovery.ai lets anyone search, discover, pilot, and buy molecules for food, agriculture, personal care, and advanced material applications. Shiru’s marketplace and discovery model allows large incumbents, start-ups and researchers to unlock the power of proprietary, trained AI models, an extensive database of natural protein sequences, and automated biochemistry workflows via a simple web interface.

By Gaynor Selby