March in review: EU AI Act, Red Sea shipping crisis and octopus farming ban
01 Apr 2024 --- Key developments in March included a plethora of changes across the food regulatory landscape and food tech innovation.
Notably, the EU AI Act was greenlighted by the European Parliament, the US state of Washington outlawed octopus farming and the National Confectionery Association warned patchwork food additive bans cropping up across the US are eroding food safety regulations. In addition, the EU backtracked on rules to tackle deforestation amid an international backlash.
Food tech innovation was plentiful in March, with highlights including two major players in cow-free cheese joining forces to propel vegan casein. There was also a significant merger in the alternative seafood space.
In business news, Unilever separated its ice cream unit as part of a cost-saving overhaul and the Red Sea shipping crisis continued to cause havoc, raising some food commodity prices and disrupting dairy trade.
Here, we recap the most significant stories of the month to ensure you stay informed about the key F&B industry developments.
March
Red Sea shipping crisis pushes up food commodity and plastic prices, disrupts dairy trade
The Red Sea shipping crisis continued to hinder trade between Europe and Asia and impact the price and availability of key commodities in the consumer goods sector, including wheat and plastic, according to research by the British Chambers of Commerce. Following the outbreak of the Israel-Hamas war last year, the Houthi group in Yemen has been attacking shipping vessels in the Red Sea, causing upheaval in one of the world’s most important trading routes.
Anti-deforestation delays: EU backtracks on stricter import rules amid international backlash
The EU will dilute its incoming deforestation regulation by temporarily designating all export countries with the same standard risk classification. The change came after governments in Asia, Latin America and Africa complained about a need for clearer guidance on compliance, but experts warn implementation delays could cause more confusion.
Umami will initially focus on Singapore and the US due to clear regulatory frameworks.
Alt-seafood mega-merger to propel cultivated crustacean research and develop eel substitutes
Umami Bioworks and Shiok Meats announced a proposed merger of the two “iconic” cultivated seafood pioneers, establishing the combined entity as a global player in the burgeoning cultivated seafood market. The deal was slated as the “first of its kind” in the cultivated seafood space and aims to expedite the journey toward scalable production of sustainable, cultivated seafood alternatives, such as eel and grouper.
EU Parliament approves AI Act: Food manufacturers face smooth transition but consumers left exposed
The European Parliament voted overwhelmingly in favor of the EU AI Act, with the groundbreaking regulation expected to enter into force early next year and apply in 2026. The impacts of this new law on food manufacturers will likely be relatively minimal as the industry’s current use of AI systems will mostly fall into the “limited risk” category. However, the European Consumer Organisation warned that consumers remain insufficiently protected by the AI Act.
Cocoa price surge: Biden attacks “shrinkflation,” Nestlé prioritizes flavor profiles
Record-high cocoa prices continue to push chocolate makers to increase consumer product prices and reduce product size, fueling the so-called “shrinkflation” trend. In his State of the Union Address, US President Joe Biden called out brands for using “shrinkflation” tactics amid a cost-of-living crisis, but market analysts said they expected cocoa prices to continue rising as demand for ever-popular chocolate treats remains strong.
The State of the Union Address is not the first time President Biden has attacked snack brands for “shrinkflation” tactics.
Cargill sets sail on journey to scale wind-assisted propulsion across shipping
Cargill pioneered wind-assisted propulsion technology on ocean vessels to cut fossil fuels and support decarbonization efforts with renewable energy. The global food corporation completed a six-month test using large solid wind sails on its Pyxis Ocean vessel, with the results suggesting scalability potential across the shipping industry, although integration challenges with marine systems remain.
US state bans octopus farming as European innovator launches vegan alternative
The US state of Washington outlawed octopus farming in what is the first law of its kind worldwide. Similar bills have been introduced in California and Hawaii. Meanwhile, Austrian start-up Revo Foods unveiled the world’s first plant-based alternative to octopus tentacles, which is made from fungi-protein — also known as mycoprotein.
Unilever says a demerger of its ice cream segment is the most likely separation route.
Unilever separates ice cream division amid cost-saving shake up and job losses
Unilever split off its ice cream division as a standalone business and announced 7,500 jobs.
The separation is part of an overhaul, which Unilever says will save around €800 million (US$867.8 million) in costs over the next three years. The British FMCG multinational said this “productivity program” will drive faster growth and higher margins while better positioning brands such as Ben & Jerry’s, Wall’s and Magnum.
Cow-free cheese collaboration: Precision fermentation producers partner to propel vegan casein
Those Vegan Cowboys, the initiators of Unilever-owned The Vegetarian Butcher and Germany-based Formo, joined forces in what they described as an “industry-defining partnership” that will see animal-free caseins brought to the mass market. They are both producers of precision fermentation-derived dairy and will work together rather than as rivals.
Patchwork food additive bans undermine US food safety regulation, warns NCA
A plethora of proposals calling to ban various food additives proliferated across the US as NGOs, advocacy groups, activists and some media attempted to push for prohibitions across a range of chemicals and individual states. But the National Confectionery Association pushed back amid the wave of prohibition proposals.
By Gaynor Selby
