By 2029, the world population is expected to reach 8.4 billion people according to the Food and Agriculture Organization of the United Nations (FAO). Further, a robust per capita income growth is expected to continue especially in the emerging markets. Two main factors are fundamental to drive the demand for agricultural commodities, which is buttressed by continued growth in productivity and greater availability of resources. Also, agricultural commodities find their application as food, feed, and raw materials for industrial applications that include biofuels. The aforementioned is expected to comprehensively drive the demand for farm equipment across the world along with technological advancements such as automation, among others. Before we delve further into the market for farm equipment, a panoptic view of the current market condition for the key commodities is deemed pertinent.
In 2019, an increase inworld production of cereals was registered driven by larger wheat and other coarse grains harvests, after two years with stable world production. On the contrary, the output of rice was similar to the levels of 2018, and the maize crop was lower. Further global cereal stocks dropped as a result of reduction measures of stock held by China. Above all the growth of production surpassed that of consumption. The production and consumption of cotton also increased during 2019. 2019 also witnessed an increase in world milk production by 1.3% along with the increase in the production of Biofuels, which utilizes cereals and sugar crops in its production and was augmented by government policies of certain countries along with subsidies. Further despite the negative impact on meat production during 2019 due to the African Swine Fever (ASF) resulting in lower meat production in China, the situation was offset by higher production of meat in the United States, Argentina, the European Union, and Turkey. The global demand for oilseed was low during 2019 due to reduced feed demand by China in China and uncertainties stemming from bilateral trade disputes. With regards to Sugar growth in consumption remained strong in many developing countries, during 2019.
While the aforementioned is mainly a production outlook, the global demand for agricultural products will be determined by aspects like consumer preferences, disposable income, policies, population dynamics, prices, urbanization, and various social factors. From the perspective of individual consumption patterns of population, as result of global economic development, per-capita-food expenditures across all income groups are expected to increase in absolute terms with an increasing proportion devoted to higher value items such as vegetable oils, livestock products, and fish, underscoring how high-income availability influences the respective consumption preferences which in turn influences the agriculture industry. Further FAO also predicts that the proportion of household income spent on food is projected to remain on average at 43% in 2029. Other driving factors are the shift in consumer preferences driven by social-cultural changes, as well as rising female participation in the workforce especially in high-income and emerging economies, forming the basis of sugar and vegetable oils. Nevertheless, the advent of COVID 19, has reportedly led to shortages of seasonal labor due to lockdown as well as has necessitated force adjustment of consumer demand leading to disruption of trade logistics, to a certain extent. Further with trade restrictions and extreme weather, 2019 also posed challenges effectuating a slight downward-draft in the farm equipment market growth For instance, LEMKEN GmbH & Co. KG globally known for manufacturing agricultural machinery which had reportedly launched compact disc harrows in 2018 called Rubin 10, had experienced a steep decline in sales.
Nevertheless, as the world is expected to normalize without experiencing a total stop in the agricultural commodities market, the farm equipment market is expected to witness healthy growth. This has been evidence by a myriad of market development in recent years. Some of them are being elucidated below:
May 2020 – Product Launch
A family business that is essentially a global agricultural machinery manufacturer founded in 1913 known as CLASS, had reportedly launched the JAGUAR 960 TERRA TRAC model reaching a milestone becoming the first organization to manufacture a forage harvester with a factory-integrated crawler track assembly. Earlier in March, the organization also reportedly inaugurated a new facility in Memari of the district of Burdwan the reported rice bowl of state of West Bengal, India to make the latest agricultural machinery commercially available to local consumers.
March 2020 – Investment
The KUBOTA Corporation headquartered in Osaka, Japan has reportedly announced its plans to invest in leading Indian tractor manufacturers, Escorts Limited with the rationale to increase its presence in India – the world’s largest tractor market, which succeeds the establishment of a joint-venture tractor manufacturing company with Escorts Limited. Building upon this partnership, this investment facilitates, product development through the indigenization of global R&D for emerging and global markets, manufacturing, sales, distribution as well as parts procurement with a guaranteed supply of economically viable products in and for India.
August 2019 – Fundraising
It was reportedly announced by the strategic business development and investment arm of Yamaha Motor Co., Ltd. (Tokyo: 7272) Yamaha Motor Ventures & Laboratory Silicon Valley (YMVSV), that it had led a Series A funding round for Advanced Farm Technologies (AFT), a developer of robotic farming equipment that includes the T-6 robotic strawberry harvester. By capitalizing on $100 million Yamaha Motor Exploratory Fund, this investment reportedly depicts YMSV’s focus on disruptive technology solutions that meet the challenges of the global food supply chain. With additional investments from Catapult Ventures, Impact Venture Capital, and Kubota Corporation a total of $7.5 million was raised.
June 14, 2019 – Strategic Alliance
A part of the $20.7 billion Mahindra Group, Mahindra & Mahindra’s Farm Equipment Sector (FES), had reportedly announced an investment of CHF 4.3 million (US$ 4.3 million) for an 11.25% stake in Gamaya SA., which is a Switzerland based agri-technology firm. By this strategic decision, Mahindra & Mahindra enables itself to extend complete solutions to the global farming community so that they can adapt to this increasing technology-intensive industry. With the ability to develop and deployprecision agriculture and digital farming technologies the organization expects to set a new yardstick in farming and its related services.
Therefore, form the snapshot of current market conditions of agricultural commodities and the recent market developments, it discernible that the farm equipment market trend is poised to witness a healthy growth trajectory during the coming few years.
Tea Extract Market – An Overview
BlogBesides an increasing rate of application of tea extracts in the food and beverage products due to their antioxidative capacity, their nutraceutical properties of polyphenols have driven the application in the food and beverage as well as supplement industries facilitating new products innovations in the personal care and healthcare markets in the form of capsules, tablets and blurred category of health drinks. Further increasing health awareness, high rate of R&D investments and growing integration in nutricosmetic products are expected to drive the demand for the tea extract market. Nevertheless, the availability of cost-effective substitutes is expected to hinder the growth of the tea extract market to a certain extend.
During the past few years, there has been a rising inclination towards augmenting the health benefits derived out of daily food consumption with nutraceuticals which offers more targeted delivery of the nutritional aspects which fail to be absorbed via the former. Further with the increasing cognizance of naturally derived ingredients, the inclusion of tea extract has emerged as one of the growing trends in the same. Based on the beauty-from-within philosophy, both players in the food and beverage market and personal care market are increasingly investing in the new product development with tea extract and its variety as key the ingredient. The purchasing propensities of consumers are being increasingly influenced by the perception of food as medicine whereby the rationale is to derive health benefits for a variety of food and beverage products.
The beverage category, especially that of the ready-to-drink (RTD) category is dominating the market due to its acknowledgment by various sections of consumers. Another aspect that is determinative of tea extract market growth is the increasing tendency to monitor the intake of sugar. Particularly, due to increased consumption of processed food which paves the way for consuming free sugars, among others deters the adherence to a balanced diet leading to non-communicable diseases (NCDs). To this end, quite a few countries across the world have implemented taxes on sugar-sweetened beverages, among others which have driven an increased rate of product development as far as RTDs are concerned. Above all, certain key market developments pertaining to the tea extract market to convey the forecasted upward trajectory are being mentioned below:
January 2018 Beverage based application – Product Launch
The launch of a new sparkling drink was announced among others by UK juice maker The Berry Company, among which the goji berry drink was reported to constitute green tea extract among others which was designed to deliver a fully authentic Far Eastern experience.
March 2018 Nutraceutical based application – Product Launch
The Launch of a unique nutraceutical that is a plant-based nootropic, was announced. Designed to be administered orally, Percepta™ has been developed to target the accumulation of tangles and plaques in the brain that directly contribute to memory loss that is related to the normal rate of aging. It reportedly constitutes of a specific oolong tea extract known as MemorTeaTM harvested from the Guan Yin mountain in China
May 2018 Cosmetics based application – Product Launch
Hawaiian Tropic® the organization that is renowned for making personal care products with high-quality ingredients had reportedly launched a product called intended for providing total-body sun care by making Hawaiian Tropic® Antioxidant Plus which is formulated with green tea extract in addition to broad-spectrum protection, available in SPF 30 and SPF 5, commercially available.
May 2018 Beverage based application – Product Launch
Nestle Waters had reportedly launched a range of organic sparkling flavored teas with the rationale to foray into trends for low- and no-sugar offerings. Sanpellegrino + Tea, which is made commercially available in flavors like Limone + Tea and Pesca + Tea reportedly contain 50 calories per 25cl can and is made from organic tea extract, among others.
September 2018 Cosmetic based application – Product Launch
The designer and developer of distinct hair care products that had reportedly launched a line of hair care products called Theorie Sage hair debuted in Canada with a benefit-drivencollection of eight aromatic shampoos and conditioners with reportedly highly concentrated blends that merge the best of lab-formulated and natural ingredients. Among the aforesaid a product is known for invigorating and strengthening damaged, dull hair has green tea extract as one of the key botanicals.
October 2018 Cosmetic based application – Product Launch
NIVEA is a German personal care brand that specializes in body-care had reportedly launched a complete cleanse skin named MicellAIR Skin Breathe Professional intended to be used for effectively removing long-lasting waterproof makeup, has been formulated with a combination of Black Tea extract, MicellAIR Complex, and dry oil among others.
The aspect of COVID 19 with substantial emergence of new cases in many countries as well as the looming threat of the second wave, at best the current condition can be termed as a mixed scenario for the tea extracts market. The aforesaid is also substantiated by the fact that despite governments of several countries are gradually relaxing the lockdown measures in their respective countries, consumers are adhering to extra precaution measures. Further, based on the mixed scenarios, the consumers who are protected form a plausible loss of income or health is expected to sustain the market growth through a purchase made over various online distribution channels, however those affected with furloughing or in some case unemployment have to reconsider their costs. Even though the aforesaid has impacted the growth of the market, the emerging trend of in-home consumption is expected to offset the downward-draft of RTDs and other FMCG products with tea extract as their ingredient.
The sales performance of tea extract infused products is expected to vary, should another wave of lockdown measures arise. It will be more geared towards the necessity than luxury where the cost-effective alternatives have high chances of supplanting certain products with tea extracts, which will impact the overall performance of the tea extract market. COVID 19 restrictions also provide opportunities for producers where they can leverage the altered consumer perception of value sensitivity. Thereafter expandable categories like that of soft drinks and other edibles will be subjected to promotions thereby invigorating in-home consumption.
Dairy Ingredients Market Growth – Reinforcing Dairy Protein Consumption
Thought ArticlesDairy is present in all kinds of edibles and drinkables either as an end product or as an ingredient. Dairy ingredients have been integral to the formulation of a variety of food products. The factor that is at the core that is expected to drive the dairy ingredient market during the next few years is the fact that it is naturally derived and the communication of the same on packaged food. It extends a myriad of functionalities and attributes to end product food which includes delivery of key nutrients, emulsification capability, fat-holding capacity, foam generation, gel formation, viscosity creation, water management, enhancement of flavors and textures, among others.
Consumption trends that are evidenced by the growing preference for functional food and beverage as well as fast food and convenience snacking are expected to partly drive the dairy ingredient market, in the next few years. Further, the growing market opportunities for nutraceutical beverages which are driven by the growing awareness of a healthy lifestyle are expected to augment the market growth. An additional factor of an expanding pool of geriatric population has driven the demand for a range of nutritionally enriched dietetic drinks that employs the use of dairy ingredients. Further, the increasing birthrate and growing pool of working mothers are jointly responsible for increasing the market share of infant milk formula supported by various strategies adhered by the players operating in that space which is inclusive of but not limited to intelligent packaging, among others. However, the increased preference for consuming protein from plant sources, plant-based meat, and dairy alternatives and strict adherence to specific diet patterns will hinder the growth of the market to a certain extend.
The Expanding Dairy Production and Trade Have Been One of the Prime Factors Sustaining the Dairy Ingredient Market
According to FAO, the global milk production registered a growth of 1.3% in 2019 to about 852 Mt. Production in India increased by 4.2% to 192 Mt with an unremarkable impact on the global trade because the country has always engaged in marginal quantities of milk and dairy products trade. The three main exporters of dairy which are the European Union, New Zealand, and the United States experienced a slight increase in dairy production. Further with an unfluctuating domestic demand in these regions, there was a reported increase in exports of dairy products and processed products the same year. Moreover, the world’s largest dairy product importer China reportedly registered an increased milk production that grew by 3.6% the very same year. Further, due to an increased demand registered in 2019, the import of dairy products, especially those of skim milk powder (SMP) and whole milk powder (WMP) increased. Moreover, by FAO estimates the world milk production is projected to grow at 1.6% per annum which is forecasted to reach 997 Mt by 2029. The projected growth of cowherds is 0.8% per annum with India and Pakistan reportedly expected to contribute more than half of the growth in world milk production over the next ten years and will account for more than 30% of world production in 2029. From a trade perspective, import demand for dairy products is expected to increase in many Asia countries due to economic and population growth, and a shift toward higher-value foods and livestock products.
ASIA, Total Population at Mid-Year Estimates
Total population (thousands)
Source: UN
By Geography, the Apac Is Expected to Hold a Major Share of the Market During the Forecast Period
The APAC region is more diverse when compared to other regions constituting more than half of the world’s population that numbers to 4.1 billion. Moreover, the region is experiencing rapid urbanization with an estimated rise to 54% by 2029 by FAO. The region’s rapidly growing areas are the developing countries with average per capita incomes in the region anticipated to grow at almost 5% p.a. over the next decade, China, India, and Viet Nam are projected to grow 5-6% p.a., and Thailand and Indonesia at around 3% p.a. Rapid economic growth has also reduced the share of food in household expenditures to around 15% in 2017-19, implying an increased proclivity towards consumption of RTD beverages and RTE food products which is expected to hold a significant share due to rising health awareness.
Key market developments:
March 2020 – Product Launch
NZMP, the global ingredients business of Fonterra, reportedly introduced three new protein bar ingredients as an addition to its sports and active lifestyle category. They are namely: SureProtein Optibar 892 whey protein isolate, SureProtein ShortBar 825 lactalbumin, and SureProtein SoftBar 1000 milk protein. These new additions are intended to facilitate energy, healthy indulgence, muscle recovery, and weight loss.
August 2020 Product Launch
An organic micellar casein isolate, which is essentially a new ingredient with native milk proteins was reportedly launched by Arla Foods Ingredients. The protein is derived from milk using processing without the addition of acids. With the ability to retain its chemical properties, the protein can maintain its chemical structure that enables the creation of products that are derived naturally. Named, MicelPure, it is appropriate for food applications such as cooking-stable cheeses, ice cream, puddings, yogurts, among others as well as for health and performance applications, like ready-to-drink high protein beverages and powder shakes.
COVID-19
Restriction on movement and disruption of trade led to a downward-draft of the market. Further due to the reduced processing capacity brought about by lockdown measures hindered the labor-intensive dairy industry. However, the reorientation of retailing towards online platforms led to an increased process of packaged product consumption, which occupies a healthy share of the dairy ingredients market. Nevertheless, as the global market readjusts to the new normal the trend of the dairy ingredient market is expected to be reinvigorated by higher demands.
Gas Turbine Market: Today and Tomorrow
BlogGas Turbines utilize natural gas for generating electric power. They are complex high technology engines, with the growing demand for energy and power, the market is projected to grow at a significant pace. Gas turbines usually range from a size less than 1 MW to close to 400 MW. Today, gas turbines are highly efficient with an efficiency of around 40-45%. Normally, these systems are designed as stand-alone engines that are capable of burning a fuel for driving a generator. The most common fuel used is natural gas, however, liquid fuels and a range of gases derived from biomass can also be used for power generation.
Beyond Power Generation
Apart from generating power, gas turbines are used for other applications as well. These include their utilization in aeronautics, to power ships, trucks, and military tanks. For moving an aircraft, there is a requirement of some propulsion system for generating thrust. All gas turbine engines contain a combustion section, a compressor, a turbine, and inlet and a nozzle. The compressor, burner, and turbine are known as the core of the engine. The core is also known as the gas generator, this is due to the fact that output of the core is hot exhaust gas. The gas is passed through a nozzle for producing thrust for the jet engine and is used to drive the turbine. Significant investments in aeronautics sector will provide an opportunity for the global gas turbine market to thrive. For example, the aeronautics and defense industry of Europe is mainly driven by research and development activities and significant investments. R&D is referred to as the activities that companies and public stakeholders take up for the improvement or development of novel products and services. In 2018, the aeronautics and defense research and development expenditure through industry and government was estimated to be around €19bn. The R&D expenditure was divided equally for military and civil applications. The R&D investment for the United States, on the other hand is much more than the European region. In 2018, the research and development investment of the US was over four times more than that of the European region. For the European industry to stay ahead in the rapidly-changing innovation race, the support of the national government and the European Union holds importance.
In February 2020, it was announced that aerospace industry in Singapore will receive an investment of around USD360 million over the time period 2020-2025. The announcement was made as the global companies in the city state bolstered their position by establishment of new bases or expansion of facilities. An agreement was signed between the firms GE Aviation, Rolls-Royce, and Safran Aircraft Engines and JTC, Singapore Government Agency for novel or expanded facilities. JTC is a land developer that is involved in managing the Stelar Aerospace Park in Northeastern Singapore among other industrial sites. The park is poised to be expanded to incorporate nine ready-built standard factories for aerospace manufacturing and maintenance, repair, overhaul (MRO) activity. The new standard factories are set to include industry requirements in order to accommodate industry 4.0 technologies and utilize heavier and larger equipment.
Natural Gas Consumption
Increasing natural gas consumption in the world is contributing to augmenting the market growth. As natural gas is the most commonly used gas for driving gas turbines, the increasing consumption will put a positive effect on the market growth as well. As per the U.S. Energy Information Administration (EIA), the global consumption of natural gas is projected to grow over 40% between the time period 2018 to 2050. The total natural gas consumption is estimated to achieve close to 200 quadrillion Btu by the end of 2050. It is analyzed that the consumption of natural gas is more in the non-OECD regions in comparison to the OECD countries. This is due to the rising demand from enhanced industrial activity, natural gas-fired electricity generation, and demand from the transportation sector using liquified natural gas as fuel. In the non-OECD countries, the consumption of natural gas grew from around 70 quadrillion Btu to achieve 120 quadrillion Btu from 2018 to 2050. An increase by 70%. The natural gas consumption for electricity generation in the non-OECD regions is predicted to increase by over 60%, with 1.5% y-o-y growth during the same time period. This accounted for part of 2.2% y-o-y growth in electricity demand in these regions. While in the OECD countries, demand for natural gas in the power sector is estimated to grow at 0.3% y-o-y, in addition, electricity demand is growing at 0.9% every year. In these regions, the total natural gas consumption is projected to increase by 17% from 2018 to 2050. During the same time period, the non-OECD share of the global natural gas consumption is projected to rise from around 51% to 61%.
Source: EIA.Gov, Increasing Natural Gas Consumption in Non-OECD Countries, 2018-2050
Source: EIA.Gov, Increasing Non-OECD Share of Global Natural Gas Consumption, 2018-2050
Available Gas Turbine Products
The presence of companies manufacturing gas turbines that are industry-specific are further contributing to enhancing global gas turbine market growth.
Siemens diverse gas turbine portfolio is designed according to the specific market needs. The products include reliable gas turbines containing aeroderivative, industrial, and heavy-duty gas turbine products up to 593 megawatt. The benefits include low lifecycle costs and an exceptional return on investment. Some of the gas turbine applications include oil and gas applications, industrial power generation, and power production. Innovations have led to the development of turbines for seafloat power plants, products include gas turbine series like SGT 800, A-65, and 8000H. Seafloat power plants are capable of providing electrification to remote areas, further helping in enhancing development in these regions and contributing to economic growth in the remote areas. This shift from land-based power plants will further provide support to countries that constantly face problems of destroyed infrastructure resulting from hurricanes and earthquakes.
GE, a leader in gas turbine technology manufactures gas turbines that are efficient and reliable along with being versatile with an individual output that ranges from 34 MW to 571 MW. They perform in simple and combined cycle operation for power generation, co-generation, mechanical drive, and waste-to-power. Products include H-class gas turbines, F-class gas turbines, E and B-class gas turbines, and aeroderivative gas turbines.
Seed Coating Market Growth – Ensuring Global Food Security
BlogThe process of applying exogenous materials to the surface of the seed is known as a seed coating. This process enables the delivery and retention of active ingredients to protect from soil-borne threats and diseases as well as to promote germination. It also facilitates the modification of physical properties of seeds leading to standardization of seed volume and enabling enhanced seed handling.
Projection of Total Population at Mid-Year, World
Source: United Nations, Department of Economic and Social Affairs, Population Division
2020-2060: MEDIUM VARIANT
Increasing population, diminishing resources and stressed agricultural supply chains have led to, among others, growing demand for coated seeds due to technological breakthroughs in agriculture, increasing awareness among farmers about the advantages of coated seeds for commercial utilization of the same, as well as the benefits of seed treatment and the resultant germination enhancement, increase higher crop yield and protection from spoilage. The aforesaid was exemplified in March 2018 by a reported announcement of a demonstrated a gain of 14% in the average yield of cotton on the commercial fields in water-stressed Texas by Indigo Ag, Inc. a company that is globally renowned for harnessing the aspects of nature sustainably and empowering farmers to ensure global food security. Besides coating technologies are also being increasingly used in horticultural applications. Therefore, the aforesaid factors are anticipated to propel the seed coating market to stratospheric heights during the next few years. Nevertheless, there have been certain observations made like that of bee mortality due to Thiamethoxam, a neonic product that has been identified as toxic to bees when translocated as dust residues that are derived from exhausted planters’ dust. Further with corn being planted within 165 feet of woody pollen sources to which bees are attracted can become vulnerable due to exhausted planter dust. This has raised concerns about bee health and sustainability of pollination-dependent crops and is poised to restrain the growth of the seed coating market.
Projection of Wheat Consumption, World
Source: OECD-FAO
In Mt
Albeit population along with disposable income are the core driver s for agricultural commodities. Individual consumption patterns of the population that are determined by the consumption presences and the availability of income to realize them. Further socio-cultural and income-driven changes in consumer preferences, continuing urbanization, and rising female participation in the workforce especially in high-income and emerging economies are expected to contribute to higher consumption of healthy processed food, preference of gluten-free wheat for example increasingly proclivity to eat outside of the home. From the perspective administration policies that are intended to promote healthy dietary choices and dissuade the consumption of food products that may lead to diet-related non-communicable diseases such as diabetes. Further consumer preferences will be increasingly governed by responsible product labeling strategies that will disseminate the nutrient information. Further, the increasing awareness of environmental stress that stems from consuming livestock product, especially in developed economies as well as the consumption of purchase of a product that is derived from non-organic crops (viz. cotton).
Moreover, the growing pool of vegan consumers is effectuating changes at an unprecedented level which is leading to product innovations that are 100& plant-based. Additionally, an increasingly aging population will also drive more heath centric food consumption. On the other hand, due to the economic development in newly industrialized countries and developing nations, the per capita food expenditure is expected to increase where un and a healthy portion will be intended for purchasing fish and livestock products. Therefore, to sustain the demand for livestock products the use of cereals, among others is inseverable leading to increasing demand for the same in the coming years. Thus, the aforementioned necessitates investments in R&D, bringing about seed coating product innovations and various other strategies among the players of in agriculture technology space to make certain that farmers are adequately empowered to ensure food security of our world. In view of the above, the agriculture industry is anticipated to witness a meteoric growth of the seed coating market during the next few years, which is evident from a select few developments in 2018, that have been elucidated below.
January 2018 – Product Launch
It was reported that Monsanto Company (NYSE: MON) had announced a variety of R&D advancements that have been achieved across its research and development plans during the previous year over. It also reportedly emphasized the importance of continuous innovations facilitating the use of seed coatings as evidenced by its Corn BioYield 2 project that was announced to be branded as Acceleron® B-300 SAT after it received the correct regulatory approvals. Meant for ex-factory corn seed treatment it is the world’s first microbial seed coating agent (SCA). This project reportedly uses soil coatings to increase the ability of a plant to take up nutrients and is a product of BioAg Alliance which is a collaboration between Monsanto and Novozyme. Later in August the same year, it received approval from the U.S. Environmental Protection Agency.
May 2018 – Product Launch
It was reported that the former AkzoNobel Specialty Chemicals ( Euronext Amsterdam: AKZA ) as part of their widening of product offering announced the introduction of a new seed coating, Adsee™ ST4 that reportedly offered the best dust reduction, the best flowability that ensures unhindered logistics, being a non-ionic polymer and with adhesion derived form hydrogen bounding it will reportedly not have any adverse effect on active ingredients. It has Maltodextrin/VP copolymer with a high binding capacity for FS formulation to the seeds, among others.
April 2018 – Strategic Expansion
The Midwest Seed Coating, LLC an America independent contract independent, contract, high volume forage, and turf seed coating company had announced the commencement of its production at its new seed coating facility in New Albany, Indiana, USA. This strategic expansion of the company will enable it to easily serve Midwest, Atlantic, and Southern markets form the seed-growing regions of the western United States without t requirement of paying for the shipping of heavy coatings.
April 2018 – Strategic Partnership
A collaboration was announced between a global organization that is purpose-driven and based on science which actively engages in Health, Nutrition, and Sustainable Living, Royal DSM (Euronext: DSM) and Amulix which is a part of the Dynaplak group and develops solution based on starch that has industrial and agricultural applications enabling them to develop bio-based coating solutions for agricultural starter material under the brand name Amulix and company name DSM-Amulix that will be located in Zwolle, the Netherlands and through DSM will maintain a global presence. The other objectives of these new solutions are:
Global Dumper Truck Market: Carrying the Load of Development
BlogThe economic growth engines running across all countries worldwide have been changing the face of landscapes across them. The economic growth of a country, in a way, determines the ability of the respective government to spend on infrastructure and on other fronts. Since individual income taxes, corporate taxes, and payroll taxes among other taxes and duties make up a government’s earnings, to increase its spending on infrastructure and other sectors, governments need to increase the collection of revenue from any or all of these sources. While the economic growth of a country can be mapped by looking closely at the growth of various sub-sectors, physical infrastructure in a country is also a key indicator. Infrastructure developments drive with them the growth of many markets, both small and large, which are aligned or tied closely to their growth. An instance of this is the growth of dumper truck market, which is tied closely to the development of infrastructure across countries. A dumper truck, which is also referred to as a tipper truck or dump truck in many parts of the world, is a heavy commercial vehicle, which usually includes a big and flat bed, and a hydraulic system under it. The big-box-like bed carries the weight of the dumps like gravel, sand and others, and the hydraulic system underneath lifts up the bed from one side in a way that dump is deposited at the designated spot behind the truck.
The dumper truck market growth is majorly attributed to increasing spending by many countries into infrastructure development. Since many developed economies already have a mature road and highway infrastructure, the spending by governments on infrastructure development across them is limited. A major chunk of the market growth comes from spending into infrastructure across many developing countries. India, for instance, has been witnessing the pouring of huge investments by the government into infrastructure over the past two decades. The figure below shows the inflow of investments into road infrastructure in India from 2004 to 2015.
India Infrastructure Investments, Road, 2004 to 2015, Euro Billion
Source: Organisation for Economic Co-operation and Development
The sector has managed to retain a healthy growth and the flow of investments into construction of new roads and highways still continues to increase. According to a data from Invest India, an investment promotion and facilitation agency under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India., 10, 800 km of highways was constructed in the country during 2018-19 and the government has plans to expand the network of national highways to over 200,000 km. Under its Bharatmala Pariyojana, the government plans on constructing 66,100 km of expressways, economic corridors, and border and coastal roads, the first phase of which is poised to bring in investments worth $82 billion by 2022 and add 34,800 km to the total highway network. China is another economy which has been pumping huge investments into infrastructure development. A significant share of these investments is attributed to the China’s Belt and Road Initiative (BRI) which includes, but is not confined to, construction of an economic belt which connects the country with Southeast Asia, South Asia, Central Asia, Russia and Europe by land. As many other countries across regions like Asia Pacific, South America and Middle East and Africa continue to witness an increase in spending into infrastructure, the demand for construction machinery will also increase. While these regions will continue to witness a fairly heavy flow of investments into infrastructure, this does not mean that the countries in Europe and North America do not contribute to the total spending globally. Ageing infrastructure in the United States and in many countries across regions has been attracting investments by governments into renovation and repair. Since ageing infrastructure poses a significantly high risk to life and property, governments tend to ensure that the renovation work for such infrastructure begins before any severe damage is done. These developments are driving with them the demand for heavy construction machinery. Since dumper trucks play a key role in this sector, these developments are driving their demand, thus augmenting the market growth. The market growth is being further driven by high consumption of coal, for various applications, worldwide. He figure given below shows the global consumption volume of coal:
Global Coal Consumption, in MTOE
Source: International Energy Agency (IEA)
Although many countries across the globe are moving continuously towards cleaner sources of energy, the demand for coal is expected to witness some impact. For instance, rapidly growing popularity of solar energy worldwide is driving the growth of the renewable and clean energy sector. According to Knowledge Sourcing Intelligence estimates, the global solar PV glass market is expected to witness an impressive growth over the next five years. The estimates show that the market is anticipated to grow at CAGR of 24.60% between 2020 and 2025, and is expected to reach a total size of US$26.848 billion in 2025 from US$7.175 billion in 2019. Although demand for energy is also witnessing a continuous increase, the demand for coal will still remain significant but it is expected to witness some erosion due to the shift towards cleaner sources of energy. Stringent regulations in place regarding preventing environmental pollution, and their strict enforcement in many countries will also continue to steer some end users away from coal to other sources of energy. Yet, the global demand for coal is expected to remain significant over the next five years, and better cost-efficiency offered by a wide range of dumper trucks in the market will continue tom drive their adoption among customers, thus propelling the market growth.
About the Author:
Dhiraj Kumar Sharma is a Market Research Analyst at Knowledge Sourcing Intelligence. He combines his outright understanding of technologies with years of experience working in the industry to deliver actionable information to clients who span across industries and geographies. Dhiraj often works closely with clients in order to better understand their requirements and is known for the quality of market insights he delivers to them.
Pea Protein Market Trend – Reinforcing the Alternative Protein Market Growth
Thought ArticlesGlobally there is a growing interest in plant-based protein, particularly in economically advanced countries where there is a growing consumer awareness about plant-based ingredients and the interest thereof. Partly due to a marked shift in consumer preference and concerns about the negative externalities of animal husbandry on the environment as well as concerns about animal welfare. Leveraging this trend there has been a profusion of market players who have been able to strengthen their presence in the market by successfully mimicking the sensorial experience of eating meat. Additional reinforcements are being provided by social media marketing campaigns ultimately facilitating players to gain traction for their products.
Final Consumption Expenditure of Households – Food and Non-Alcoholic Beverage (Current Prices, Million Euro)
Source: EUROSTAT
A glaring example is that of Beyond Meat (NASDAQ: BYND), whose CEO Ethan Brown earlier in an interview had confirmed the use of pea protein due to its availability in significant quantity and consumer preferences of avoiding soy in their diet (not necessarily in that order), in May 2019, reportedly experienced its stock almost triple by 163% from its original IPO price and was reportedly the best since 2000 for a U.S. company with a minimum of $200 million in market cap. Additional developments, which reflects the degree of acknowledgment of pea protein, among others, and conformity to the prospects building upon the existing brand loyalty is the inhouse formulation of the Plantiful™, a plant-based burger which was introduced by Wendy's® during the first quarter of 2020. The Plantiful patty is reportedly made with pea-based protein. Thus, ushering in a new era in the food and beverage industry, the pea protein market is expected to augment the share of alternative protein in the next few years.
While consumers are gravitating on factors like superior nutritional benefits, the possibility to reduce consumption of meat, assist in weight management, factors like the employment of ecofriendly farming methods and low-price points are factors that are expected to drive the demand for pea protein. The yellow and green peas are also reported to offer meat like retexture enabling food processors to mimic the texture of meat. Further, the preference of pea proteins also stems from the fact that it has nitrogen fixation properties akin to other legumes, which minimizes the cost of fertilizers to a certain extent. Further, the new common agricultural policy (CAP) greening measures of the EU which had introduced the green direct payment scheme nitrogen-fixing crops (such as dry pulses) have also in part driven the cultivation of peas. Further, in November 2018, the EU adopted its report on the development of plant proteins in the European Union, wherein the growth potential for EU plant proteins in premium feed and food sectors, driven by consumer demand finds its mention. Such cognizance of the importance of plant protein is in part expected to lead to an unhindered upwards pea protein market trend during the next few years. Also, the innate characteristics of pea protein which encompasses all the essential amino acids enabling enhanced blood circulation, calcium absorption, stimulate metabolism, maintain muscle health, and regulate blood sugar levels are expected to reinforce the demand for the pea protein market.
Another aspect that doesn’t fall within the purview of human consumption yet is expected to drive the market for pea protein is the increasing need for humans to make that extra effort for their companion animals. The increasing realization of a variety of benefits that arise from the bond which develops between companion animals and human beings is partly responsible. Advantages like stress reduction and an enhanced degree of fitness leading to reduced triglyceride levels minimized blood pressure levels and diminished cholesterol levels, are the key aspects. Pet adoption also leads to increased frequency of outdoor activities that further leads to the increment of social capital. Thus, supported by the above pet parents today seek humanized feed offering for their pets as opposed to products with merely superior quality for their companion animals. This implies that pet food offerings should constitute ingredients that respond to the degree of wellbeing influencing consumer choice that is generally determinative of purchase decisions pertaining to products intended for human consumption.
Number of Pets in Europe, by Type of Animal
Source: FEDIAF
Also, the inclination of pet parents for products with better functionalities has transitioned the preference for a portion of healthy pet food than a portion of indulgent pet food. Hence such demand has raised the bar for pet food manufacturers who have started integrating naturally derived protein, like that of the pea protein in their pet food products. For instance, in April 2019, Ingredion Incorporated (NYSE: INGR), which is a globally renowned provider of ingredient solutions to diversified industries had announced the launch of VITESSENCE® Pulse 1550 pea protein concentrate, among others as an addition to growing pet food ingredients portfolio for the U.S. and Canada. Further with regards to the product, it was developed with the rationale to enables pet food companies to enhance the protein content of their products. It also facilitates the reformulation of current products, development of new products as well as the creation of protein combinations in addition to other protein sources thereby leading to pet food products with a more complete profile.
Certain market developments related to pea protein during the past few years which reaffirms the upward trajectory of the pea protein market are as follows:
May 2020 – Transitioning to Pea Protein
The Meatless Farm reportedly replaced soy ingredient with pea protein in its vegan burgers and sausages, as it acknowledges a meatier taste than its previous recipes. The sausages and burgers with new recipes were to be made commercially available to the consumers before it commenced its advertising campaign.
July 2020 – Fundraising
An organization called Verdino that offers a variety of pea-protein based products and that is based out of Romani had reportedly received funding worth 3 million euros Salconserv Food which is reportedly the first and only Romanian producer to offer a plant-based alternative to minced meat based on pea protein.
July 2020 – Investment
Laying the foundation for enabling pea-based dairy products to enter Asia, Hong Kong-based Multizen Holdings has invested in Ripple Foods, a Californian vegan pea-based dairy brand, which is known to produce plant-based frozen desserts, milk and yogurts which reportedly offers 8g of plant-based protein per serving. A protein blend called Ripptein that is extracted from peas which are isolated to leave out the pea-flavor is the sources of protein.
Food Encapsulation Market Growth – Better Fortification Greater Sensorial Experience
BlogThe technologies related to controlled releases of substances and encapsulation have already been at the forefront due to technology advancements that have been pioneered by pharmaceutical organizations which stemmed from increasing incidences of patient noncompliance and concern thereof; the need to prolong and reinforce the market monopoly of new drugs as provisioned by international patent laws among others and the requirement of swift improvement in strategies pertaining to drug development that targets specific organs and cells. Nevertheless, the integration of this technology in the food and beverage industry is of recent phenomenon thus paving the way for presently pharmaceutical companies thriving food encapsulation market.
Food encapsulation technologies have been primarily designed to prevent the actives from undergoing unwanted interaction concomitantly enhancing their functionality and bioavailability as well as their functionality. The additional rationale for the integration of encapsulation technology is ensuring adequate administration of heat- or oxidation-labile health actives, as well as ensuring their delivery at a predetermined rate to a target site. Bakery, beverages, breakfast cereals, confections, dairy products, packaging, among others are few of the areas of application of food encapsulation systems. The main objective is to incorporate high levels of nutrients in food and beverage products Viz. calcium, vitamins, or polyunsaturated fatty acids which otherwise would result in an undesirable sensorial experience such as oxidized or medicinal taste as well as grittiness, simultaneously retaining the desired taste and flavor and sometimes enhancing the same as well. Factors like innovations in microencapsulation technologies for protecting or delaying the release of antimicrobials, enzymes, health ingredients, leavening agents, as well as sweeteners have led to a healthy market share of bakery applications of the food encapsulations market.
Additional demand-side factors are inclusive of increased demand for functional food and beverage whereby the new generation of consumers can have their share of fill concomitantly addressing their need for adhering to a healthy diet. Urbanization too has resulted in a shift in traditional dietary trend s leading to an upswing in convenience snacking, and ready-to-eat food which saves a lot of time when compared to cooking, among others. Besides the government regulations like that of banning of the use of antibiotics as animal growth promoters in the European Union; increased public concern about the use of chemicals in livestock feed which has led to the adoption of essential oils as effective growth promoters in cattle are slated to reinforce upward food encapsulations market trend. This is mainly because essential oils are sensitive materials that can easily degrade under the action of light, moderate temperatures, and oxygen. Another area of application is that of functional beverages that are expected to reach stratospheric heights due to growing health consciousness which is being substantiated by the hydration and nutrition claims by sports nutrient beverages. At the same time, appealing sensorial appeal ensures brand loyalty. For example, in November 2019, it was reported that Glanbia plc had reportedlyintroduced a new beverage solution CreaBev™ which features then patent-pending encapsulation technology, facilitating enhanced solubility and stable creatine monohydrate. Certain additional market developments related to food encapsulation during the past few years which reaffirm the upward trajectory of the Food Encapsulation Market are as follows:
January 2018 – Product incorporating nanoencapsulation technology launched
A Vancouver based premium functional food and beverage company called Phivida (CNSX: VIDA) that engages in the integration of plant nutrition and natural ingredients, in the form of organic active hemp extract into a variety of clinical products and food and beverage products for everyday health, had reportedly launched its flagship line of beverages infused with high-performance Nano-CBD which is nanoencapsulated-cannabidiol targeted for the U.S. athletic and sports medicine market. This rage of product is designed to enhance the physical, mental performance of athletes, fitness professionals as well as health-conscious consumers.
May 2018 – Product incorporating microencapsulation technology launched
The Australian based Bega Cheese’s (ASX: BGA) health and ingredient arm Bega Bionutrients, had reputedly launched a novel form of microencapsulated infant formula ingredient lactoferrin – Inferrin that was developed in collaboration with the University of Queensland and the Australian encapsulation firm Progel by utilizing the latter’s patented microencapsulation technology to produce lactoferrin encapsulated in common food-grade materials. It was also reported that the format was designed with the rationale of delivering lactoferrin's benefits to the small intestine where most of the absorption activity occurs by extending its protection through microencapsulation technology to prevent premature degradation.
May 2018 – Partnership for delivery format development
Algatech LTD which is based out of Israel and is known for manufacturing astaxanthin had reportedly partnered with Sphera Encapsulation that is headquartered in Italy which is known for its encapsulation technology to facilitate the development of innovative delivery formats for ingredients derived from microalgae through the combination of both firm’s knowledge and expertise. It was also reported that the first product that was slated to launch within a few months of this partnership agreement was Algatech’s all-natural astaxanthin brand called AstaPure that has a neutral taste and is colorless and odorless as well as easily water-soluble.
October 2018 – Launch of new microencapsulation technology for flavoring and sweetening applications
the UK based company that is at the forefront of microencapsulation technology, and is known for the manufacturing of controlled release flavorings and ingredients called TasteTech Ltd had reportedly launched a Gum Kit with the rationale for aiding chewing gum manufacturers to create longer-lasting chewing gum. This innovative microencapsulation technology for chewing gum demonstrates the benefits of using TasteTech matrix particle technology within sugar-free chewing gum formulations.
November 2019 – Fat encapsulationtechnology launch announcement
The world’s leading flavor and fragrance company Givaudan (SIX: GIVN) had been reported to unveil what it had described as a breakthrough fat encapsulation technology that reportedly helps minimize up to 75% of the fat content and 30% of the calories in meat substitutes in comparison with market products contemporary during the time of the announcement. Moreover, according to the organization, the technology would not only extend to the advantage of enhanced authenticity along with an impression derived from flavor stabilization but also would improve a product’s nutritional value.
Automotive Rear Seat Infotainment Market: Redefine Affordable Luxury
BlogIn-Vehicle Infotainment (IVI) is an emerging technology in the field of automobile manufacturing industry. IVI integrates entertainment, multimedia and driver assisting technologies in a single module. As the technology across the automotive sector is getting advanced, more and more new technologies and devices are getting integrated into the overall in-vehicle infotainment system with all the infotainment electronic control units (ECUs) networked in the automotive platform.
There has been a growing need for an in-vehicle infotainment system in vehicles owing to the advantages it offers over other similar technologies like stereo systems, LCD televisions, Global Positioning System (GPS), etc. The modules that are integrated into an in-vehicle infotainment system- rear seat entertainment, external connectivity, connectivity to mobile devices, advanced driver assistance systems, and security systems have been in great demand among automotive manufacturers. Rear seat infotainment can be divided into two sub modules- the audio system and the video system. The basic components of an audio system includes speakers, subwoofers, and amplifiers. The car is also equipped with an exclusive multimedia system with TV screens.
As the disposable income of people is rising, they are becoming more and more interested to purchase cars with advanced features already being installed or upgrading their cars by adding these features on their own. As such, the demand for rear-seat infotainment systems in the global automotive sector is rising which is fueling the market growth of automotive rear seat infotainment. Some of the global auto giants like Audi, BMW, and Land Rover among others provide these rear-seat infotainment systems in their higher-end models pre-fitted for people who are interested to buy these vehicles.
Initially, automotive devices were integrated using the Controller Area Network (CAN) technology. However, due to the slow speed of data transfer in Controller Area Network (CAN), a new technology named as MOST (Media Oriented System Transport) was introduced in which the data is transferred optically. With advancement in technologies, more and more applications including multi-media player, navigation system, iPOD, USB Memory, SD Card, and instrument cluster have been integrated into the MOST system. The MOST technology allows automobile manufacturers to connect the rear seat infotainment system to the front seat infotainment system such that the rear-seat display is able to command the head unit in the front seat via buttons or touchscreens MOST also reduces the need for individual processors, thereby boosting the system’s flexibility while also reducing the overall cost. Leading auto brands such as BMW, Audi, Jaguar, Mercedes-Benz, and Volkswagen have already adopted MOST technology in their premium cars.
However, in-vehicle entertainment is no longer limited to these premium or luxury cars. As the demand for telematics and built-in connectivity in automobiles is booming, auto manufacturers are introducing infotainment systems in mass-produced mid-segment vehicles as well. Automakers like Volkswagen, Ford, and General Motors are collaborating with software providers and in-vehicle entertainment and information systems manufacturers to provide infotainment solutions in their mid-range vehicles. Moreover, rear seat infotainment system as well as software providers are also expanding their reach in this growing market. For instance, in October 2019, South Korean electronics giant LG Electronics and U.S. chipmaker, Qualcomm announced their strategic partnership to develop an in-vehicle infotainment platform called webOS Auto for connected cars, delivering entertainment and information to both driver and passengers. This platform is designed for connected cars with internet access for vehicle management and other safety features. Vizualogic has recently announced to expand its award-winning rear seat infotainment system by introducing OMNI 8 Rear Seat Infotainment system to the aftermarket and expeditor market.
Rising investments in connected and autonomous cars will continue to drive the growth of automotive rear seat infotainment market. From DENSO to Daimler, automakers and suppliers alike are constantly engaged in tapping startups to ramp up their capabilities in the connected car space. The relevance of connected cars is only bound to increase with the expected wide-scale adoption of electric vehicles (EVs) where connectivity is one of the major focus points of automakers. The figure below shows the global electric car stock for the period 2010-2019:
Global Electric Car Stock, From 2010 to 2019, in Million Units
Source: IEA (International Energy Agency)Top of FormBottom of Form
Declining Global Automotive Sector
The global automotive industry has been facing a sharp decline, both in production and sales volume, in the past few years. The figure given below shows the trends in worldwide passenger car sales from 2017 to 2019:
Global Passenger Car Sales Volume, in Million Units, 2015 to 2019
Source: OICA (International Organization of Motor Vehicle Manufacturers)
As shown in the above figure, the sales volume of passenger car globally has been witnessing a continuous decline since 2017. This shrinking of sales numbers is attributed to certain factors such as poor quality roads, heavy traffic congestion, limited parking lot availability, continuous decline in resale value of cars, and expensive vehicle ownership. Growing trend towards ride-hailing services is considered to be one of the prime factors for this decline in the passenger car sales volume. The recent pandemic outbreak caused by the spread of coronavirus have also severely impacted the overall health of the automotive sector. On one hand, the demand for automobiles become flat due to the decline in global economic activities while on the other hand, the temporary shutdown of automobile factories due to mandatory lockdown and social distancing measures along with global supply chain disruption has further affected this industry. With automotive production as well as sales being flattened, these factors will also inhibit the market growth of automotive rear seat infotainment in the short and medium term.
ABOUT THE AUTHOR:
Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.
Farm Equipment Market Trend – Adept at Adapting to the Evolving Agricultural Landscape
BlogBy 2029, the world population is expected to reach 8.4 billion people according to the Food and Agriculture Organization of the United Nations (FAO). Further, a robust per capita income growth is expected to continue especially in the emerging markets. Two main factors are fundamental to drive the demand for agricultural commodities, which is buttressed by continued growth in productivity and greater availability of resources. Also, agricultural commodities find their application as food, feed, and raw materials for industrial applications that include biofuels. The aforementioned is expected to comprehensively drive the demand for farm equipment across the world along with technological advancements such as automation, among others. Before we delve further into the market for farm equipment, a panoptic view of the current market condition for the key commodities is deemed pertinent.
In 2019, an increase inworld production of cereals was registered driven by larger wheat and other coarse grains harvests, after two years with stable world production. On the contrary, the output of rice was similar to the levels of 2018, and the maize crop was lower. Further global cereal stocks dropped as a result of reduction measures of stock held by China. Above all the growth of production surpassed that of consumption. The production and consumption of cotton also increased during 2019. 2019 also witnessed an increase in world milk production by 1.3% along with the increase in the production of Biofuels, which utilizes cereals and sugar crops in its production and was augmented by government policies of certain countries along with subsidies. Further despite the negative impact on meat production during 2019 due to the African Swine Fever (ASF) resulting in lower meat production in China, the situation was offset by higher production of meat in the United States, Argentina, the European Union, and Turkey. The global demand for oilseed was low during 2019 due to reduced feed demand by China in China and uncertainties stemming from bilateral trade disputes. With regards to Sugar growth in consumption remained strong in many developing countries, during 2019.
While the aforementioned is mainly a production outlook, the global demand for agricultural products will be determined by aspects like consumer preferences, disposable income, policies, population dynamics, prices, urbanization, and various social factors. From the perspective of individual consumption patterns of population, as result of global economic development, per-capita-food expenditures across all income groups are expected to increase in absolute terms with an increasing proportion devoted to higher value items such as vegetable oils, livestock products, and fish, underscoring how high-income availability influences the respective consumption preferences which in turn influences the agriculture industry. Further FAO also predicts that the proportion of household income spent on food is projected to remain on average at 43% in 2029. Other driving factors are the shift in consumer preferences driven by social-cultural changes, as well as rising female participation in the workforce especially in high-income and emerging economies, forming the basis of sugar and vegetable oils. Nevertheless, the advent of COVID 19, has reportedly led to shortages of seasonal labor due to lockdown as well as has necessitated force adjustment of consumer demand leading to disruption of trade logistics, to a certain extent. Further with trade restrictions and extreme weather, 2019 also posed challenges effectuating a slight downward-draft in the farm equipment market growth For instance, LEMKEN GmbH & Co. KG globally known for manufacturing agricultural machinery which had reportedly launched compact disc harrows in 2018 called Rubin 10, had experienced a steep decline in sales.
Nevertheless, as the world is expected to normalize without experiencing a total stop in the agricultural commodities market, the farm equipment market is expected to witness healthy growth. This has been evidence by a myriad of market development in recent years. Some of them are being elucidated below:
May 2020 – Product Launch
A family business that is essentially a global agricultural machinery manufacturer founded in 1913 known as CLASS, had reportedly launched the JAGUAR 960 TERRA TRAC model reaching a milestone becoming the first organization to manufacture a forage harvester with a factory-integrated crawler track assembly. Earlier in March, the organization also reportedly inaugurated a new facility in Memari of the district of Burdwan the reported rice bowl of state of West Bengal, India to make the latest agricultural machinery commercially available to local consumers.
March 2020 – Investment
The KUBOTA Corporation headquartered in Osaka, Japan has reportedly announced its plans to invest in leading Indian tractor manufacturers, Escorts Limited with the rationale to increase its presence in India – the world’s largest tractor market, which succeeds the establishment of a joint-venture tractor manufacturing company with Escorts Limited. Building upon this partnership, this investment facilitates, product development through the indigenization of global R&D for emerging and global markets, manufacturing, sales, distribution as well as parts procurement with a guaranteed supply of economically viable products in and for India.
August 2019 – Fundraising
It was reportedly announced by the strategic business development and investment arm of Yamaha Motor Co., Ltd. (Tokyo: 7272) Yamaha Motor Ventures & Laboratory Silicon Valley (YMVSV), that it had led a Series A funding round for Advanced Farm Technologies (AFT), a developer of robotic farming equipment that includes the T-6 robotic strawberry harvester. By capitalizing on $100 million Yamaha Motor Exploratory Fund, this investment reportedly depicts YMSV’s focus on disruptive technology solutions that meet the challenges of the global food supply chain. With additional investments from Catapult Ventures, Impact Venture Capital, and Kubota Corporation a total of $7.5 million was raised.
June 14, 2019 – Strategic Alliance
A part of the $20.7 billion Mahindra Group, Mahindra & Mahindra’s Farm Equipment Sector (FES), had reportedly announced an investment of CHF 4.3 million (US$ 4.3 million) for an 11.25% stake in Gamaya SA., which is a Switzerland based agri-technology firm. By this strategic decision, Mahindra & Mahindra enables itself to extend complete solutions to the global farming community so that they can adapt to this increasing technology-intensive industry. With the ability to develop and deployprecision agriculture and digital farming technologies the organization expects to set a new yardstick in farming and its related services.
Therefore, form the snapshot of current market conditions of agricultural commodities and the recent market developments, it discernible that the farm equipment market trend is poised to witness a healthy growth trajectory during the coming few years.
Global Milk Powder Trend – Promoting Global Nourishment
Thought ArticlesThe exports of skimmed milk powder (SMP) from the USA grew at an annual pace of 7 % from 2014 through 2018 as per USDA reports in July 2019. With regards to the EU, the shipment for the same throttled as of July 2019 moving up by 1/3rd over last year. The EU has reportedly forayed into important markets like China and Indonesia which had ranked 2nd and 3rd largest global markets respectively in 2018 for SMP, with Algeria retaining its position as the principal destination of the EU. While the Philippines, Malaysia, and Vietnam depicted major gains, which are also the important destinations for U.S. SMP in 2018 In 2018, about one-third of the EU’s SMP was exported to these markets. The 2019 export forecast was increased by 15 % to 950,000 tons. The major factor contributing to the growth of SMP, which was estimated at 1 % in 2019 are intervention stocks that have been available at the end of 2018. It was to the tune of 175,000 tons. In 2018, U.S. shipments of SMP to China totaled 21,100 tons, with annual imports that were forecasted to grow by 2%. In 2018, the U.S. supplied nearly 97 % of the total SMP imported by Mexico. Nevertheless, with respect to the aforesaid, resulting from the modernization of the EU-Mexico FTA in 2018, a provision for a duty-free quota of EU milk powder starting at 30,000 tons and growing to 50,000 tons after a 5-year phase-in period, have been made.
Another development reported in July 2019, was that of shipments from New Zealand to China accelerated by 14%, with an export forecast that has been revised at 8% higher to 410,000 tons. Further, the milk powder market also witnessed competition among importers who sought to get whole milk powder (WMP) from New Zealand for the Chinese market under the New Zealand-China FTA duty-free Tariff Rate Quotas of 162,500 tons. Further, according to USDA estimates of July 2019, New Zealand’s share of global WMP was expected to expand during the same year as exports through May have been reportedly high by 25% compared to last year. In 2018, New Zealand reportedly accounted for ¾ of total WMP traded among major exporters of WMP. The same period forecasted a growth estimation of over 80%. It was reported that WMP production had been the priority of milk producers in New Zealand in 2019. Moreover, the market reportedly witnessed a rise in SMP prices which resulted from growth in global import demand for SMP since year-on-year (YOY) imports through September 2019 increased from 15 % to 30 % stemming from markets of China, Indonesia, and the Philippines. Also, the quantum production of milk among major was registered less than the earlier forecasted volume. Above all the stocks of SMP have been low in both the United States and the EU. Moreover, it should be noted that Chinese imports of WMP between 2015 through 2018 have been growing at an annual average rate of 15 %. In 2019, imports through October are up 23 % YOY.
Whole Milk Powder Trade (Global Imports)
In 1,000 Metric Tons
Source: USDA
These estimates have been deemed favorable for the powder milk market growth, nevertheless, the advent of COVID 19 has led to severe market disruptions, which has resulted in cross-industrial ramifications across the world. As communicated by USDA in July 2020, the EU exports of skimmed milk powder (SMP) have been remarkably slow with cumulative shipments through May till June 2020 have been down by 18 % over the comparable period in 2019. Skimmed milk powder sales also plummeted in key markets such as China which reduced by -21 %, Indonesia that reduced by – 57 &, and the Philippines that reduced by -70 %. Nevertheless, the EU has been exporting substantial volumes of fat-filled milk powder which encompasses dried skimmed milk combined with a vegetable fat such as palm oil, which results in essentially a cheaper alternative for WMP. Also, exports of fat-filled milk powder through May totaled about 146,000 tons; if the current rate of sales is maintained it is anticipated to reach a total of 356,000 tons for the year. So far this year, the major markets have been Senegal, Nigeria, and the United Arab Emirates. However, the USDA had reported that exports through May 2020 reached $2.7 billion, which is an increase of 12 % over the same period in 2019. This was partly aided by the strong competitive position of the U.S. versus EU SMP prices with a differential that was at times over $250 per metric ton (11 cents/lb). Further, from the perspective of market players, the lower sales of milk during the COVID-19 lockdown, and higher milk procurement, the milk and dairy cooperatives in India have reportedly engaged in large scale conversion of into high shelf-life products like milk powder, among others that are anticipated to have partly contributed to a growth of milk powder market. Moreover, WMP purchases by China have been reportedly robust with imports through May 2020 increasing by 2% YOY. Further, an import growth rate of 1 % over 2019 imports has been forecasted by the USDA. Moreover, the Brazilian stocks of powdered milk have been reported to gain increments during the 2nd week of August 2020.
Additional factors that are expected to influence the food and beverage industry, consequently impacting the milk powder market are surmised under the multifaceted issues pertaining to the degree of nourishment of the global population. To this end, it is important to note that according to the Food and Agriculture Organization of the United Nations (FAO) estimates of 2019, almost 8.9 % of the global population, were undernourished. These factors have led the government of certain nations to initiate various kind of investments and policy incentives which are expected to positively influence the milk powder market. The State Government of Bihar and Rajasthan issued an order to provide milk powder to children of Anganwadi centers under the Integrated Child Development Services (ICDS) Scheme, as communicated by the annual reports of 2018-2019 of Department of Animal Husbandry, Dairying and Fisheries of the Government of India. Besides, the Department of Commerce, Government of India through a Public Notice 23/2015-2020 dated 13.07.2018 had announced an incentive of 10% for exports of all milk and milk products under the Merchandise Exports from India (MEIS scheme). To this end, the State Governments of Gujarat and Maharashtra have announced to provide a subsidy of Rs 50/Kg for SMP, further facilitating the growth of the national milk powder market.