Inclement Weather Conditions Hit Seville Citrus Trees and Fruit Hard by JENNIFER WILLIS-JONES Precip % Normal 29/1/2012-27/2/2012 and Broccoli Showing Damage
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“Quote”“There is continued Name,investor title, company confidence See page XX in branded businesses” Geraint Rowe, partner, food & beverage, Gambit Corporate Finance LLC Fewer UK food industry M&As, p21 VOL.VOL. 00 40 No. No. 00 9 00 2 MARCHMONTH 20122011 Inclement weather conditions hit Seville citrus trees and fruit hard BY JENNIFER WILLIS-JONES PRECIP % NORMAL 29/1/2012-27/2/2012 and broccoli showing damage. In exposed northern areas tem- HARSH frosts and drought peratures fell to -5° celsius, have caused up to EUR100 affecting almond flowers. million (USD134.3 million) Kyle Tapley, operational mete- worth of damage to agricul- orologist at MDA Information tural crops in Seville, Spain Systems, confirmed to FOOD- ,with oranges and manda- NEWS that Spain has indeed seen rins thought to be the most inclement weather conditions of affected. Growers are still late with the drought getting assessing the damage to worse over the past few weeks. other fruits and vegetables. “Spain has seen the most To make matters worse, there severe dryness, but dryness has are serious concerns over the been increasing across much of sharp fall in farm-gate prices, western Europe, particularly in making the industry almost the UK, France, and northern unprofitable at the moment. Pro- CONTINUED ON PAGE 6 duction costs are now far superior to raw material prices. Data shows that December IN THIS ISSUE 2011 was the driest it has been for frost damage is only visible some frost and drought this year, with at least 15 years, with no end in days or weeks after the event. losses adding up to EUR38 Global wine supplies to sight for the drought, which is A contact at agricultural organ- million in the province. The trees reduce further 5 likely to continue in 2012. This isation Asaja Sevilla told were also hit by the severe was followed by a mass of cold FOODNEWS: “At the moment weather conditions, which could China produced more AJC air which hit all of Europe at the we are still putting together a affect output in the coming years. than first thought 7 start of February and tempera- report studying the damage across A loss of 30% was seen in the tures fell to -7.9°C in some parts the entire region and we have region’s stone fruits as tempera- EU-Mauritius deal will aid of Seville, seriously damaging mentioned the damage that we tures fell below -4°C and affected tuna sustainability 13 crops. noticed immediately in the flowering, especially of early It is difficult to get an accurate province. varieties. Damage has been esti- Strong cannery demand for picture of the damage, however, as “The citrus crop, including mated at EUR40 million. Thai sweet corn 14 late oranges and clementines, is Artichoke, which is grown the one that appears to be the across some 300ha in the region Cashew market steady ahead most affected. For the rest we can and is most sensitive to the cold, of new crops 16 confirm that damage is not wide- has also seen some damage but it spread, aside from a small delay is still too early to evaluate. SunOpta to cut staff in of a week in harvesting. Not all Meanwhile, FOODNEWS has company reorganisation 19 areas will see this delay, so we also received reports of crops hit understand that the region’s stone by frosts in Lorca, Murcia. The ABF sugar sales lead to fruit and potato producers will not area is reporting losses in arti- positive outlook 23 have problems adhering to export choke and early season almonds, agreements and will be able to although exact figures are still China outlines food safety give a date for fruit arriving in all unclear. improvement plan 28 markets.” The councillor for agriculture, FOODNEWS was informed Ángel Meca, confirmed that arti- Italian tomato sector talks that up to 70% of oranges were choke was the most affected with proceed slowly 28 Frozen artichokes in Seville damaged by the combination of losses around 90%, with lettuce Key Indicator China tomato paste China tomato paste China tomato paste Find more key data 28/30 brix -5% yoy 36/38 brix -1% yoy exp 2011 +10% in our on-line library at Snapshot USD700/t fob USD740/t fob 1.128 million tn www.agra-net.com Editorial Comment Notes on a scandal VOL. 40 No. 9 2 March 2012 ISRAEL’s Pri HaGalil The lesson to be learned here is “However much of a cannery is certainly making a that however much of a labyrin- stand in face of the govern- thine, bureaucratic minefield food labyrinthine, bureaucratic CONTENTS ment’s refusal to pay a grant safety regulations may appear to be, minefield food safety which the company may or they are there for a reason. Precisely regulations may appear to INDUSTRY NEWS may not be due, but in sud- this was the subject of China’s denly sending its workers on recent five-year food safety stan- be, they are there for Soft drinks industry looks to unpaid leave, it is unlikely to dard plan. Lives were lost in the a reason.” New World for growth 4 make any friends. At such an melamine contamination debacle, early stage, one can only guess and yet years after the fact, traces ways. Diamond Growers’ account- FRUIT JUICE where this might lead, but it were detected in domestic milk ing mishap and the ensuing collapse does prompt the onlooker to products. With import stamps dou- of the Pringles acquisition, reported Dutch juice firm announces speculate on the lot of other bling as safety stamps in the eyes of on last week, is not a move which organic Fairtrade products 8 organisations involved in many consumers, it is a wonder that will be forgotten in a hurry. scandals. the Chinese dairy industry was not Perhaps the closest analogy to FRESH PRODUCE After hitting the headlines in laid to rest before the scandal itself. that of Pri HaGalil, however, is that Ghana has potential to November for reprocessing mouldy Similarly, the traces of carben- of the many tuna companies excori- apple sauce without taking the rele- dazim recently detected in Brazilian ated by Greenpeace for their fishing increase pineapple vant measures to remove toxins orange juice rocked the industry methods. The food is not actively exports 11 – that reprocessing mouldy food is boat, not to mention the FCOJ harmful, but some consumers may not, in itself, illegal in the US, is futures market. If some companies object to some aspects of the pro- CANNED FOODS neither here nor there – Snokist fruit break the rules, many will feel the duction, be it laying off workers or effects. These things do not subside fishing unsustainably. Often, little Chinese mushroom canners processors filed a Chapter 11 a matter of weeks later. The USDA, quickly; the reputational and finan- of the uproar trickles down as far as must upgrade equipment 12 which had a contract with the cial damage to be had is the average consumer, although the company to use its apple sauce in significant. effects may be felt at the supermar- TOMATO PRODUCTS school lunches, was keen to cut all Of course, not all company ket buyer level. Whatever the California competes with ties with it. Since then, the facilities gaffes involve the content of their outcome for Pri HaGalil, the have been acquired, but Snokist as a products – but a firm can still be left onlooker is left with the fact that Chinese tomato paste in corporate identity is no more. with egg on its face in a plethora of rocking the boat makes waves. Middle East 15 DRIED FRUIT & NUTS Do you see FOODNEWS’ daily email alerts? MOST READ… See below the most clicked-on daily news stories this week: Argentine prune sector considers imports in low 1 Carbendazim fears send FCOJ 6 Bank report names five juice production year 16 futures soaring again “mega-trends” 2 Brazil temporarily halts FCOJ 7 Israeli cannery closes and sends FROZEN FOODS exports to US workers on leave 3 Thai pineapple industry faced with US buyers switching to new “mountains” of stock 8 Grape juice concentrator – correction blackberry suppliers 19 4 SA canners upbeat as fruit harvest 9 Greek peaches cheaper than SA due goes smoothly to good supply WINE & SPIRITS 5 Dutch supplier offers Fairtrade/ 10 Citrus company hopes organics deal Brazil considers measures organic AJC combo will open US market to protect domestic wine industry 20 Contact us for your on-line password today call +44 (0)20 7017 4161 or email [email protected] BUSINESS INTELLIGENCE COMPANY INDEX G Willi-Food 5 Premier Foods 21 Fewer UK food industry M&As in 2011 but outlook 2 Sisters 21 Heinz 15 Pri HaGalil 12 improving 21 Ariza 8 Hormel 22 Profood International 17 Associated British Foods 23 WEATHER WATCH Inventure Foods 7 Raisio 21 Barentz 21 Jidvei 20 Sumol & Compal 8 Rain showers in California, Ben & Jerry’s 19 Joint Fruit Company 22 Sunopta 19 snow in New York 24 Charles Saunders 22 Lisa’s Organics 19 Sunprod 9 MARKET DATA Coca-Cola 6, 7 Olam International 17 Welch’s 8 Latest soft drinks and Del Monte Fresh Produce 11 PepsiCo 7 Wild 9 mineral water import Embotelladora San Miguel 6 Pinnacle Foods Group 19 Yoki 4 data 25 Frutarom 21 PIP Organic 6 Zetar 21 2 www.agra-net.com © Informa UK Ltd 2012 - FOODNEWS® 2 March 2012 Contact: Sunny Patel Global Advertising Manager Email: [email protected] Tel: +44 (0)20 7017 4153 Mob: +44 (0)7826 871 137 Look out for FOODNEWS special features 2012 Special supplement Ad deadline Publication date Canned Foods 24 April 4 May Juices, Purees & 19 June 29 June Superfruits Dried Fruit & Nuts 10 July 20 July World Juice Programme 17 July 27 July Chile 28 August 7 September SIAL 2 October 12 October Soft Drinks/Just Juice 13 November 23 November Global Outlook 2012 18 December 28 December ADVERTISE NOW! house ad - full page.indd 1 21/02/2012 09:50:05 Industry News Soft drinks industry looks to New World for investment and growth BY JENNIFER WILLIS-JONES PepsiCo, this trend continued into A key trend in the sector has importantly, the refranchising of 2011.