|EMERGING MARKETS REVIEW||Connected Post-Harvest Logistics|
July 3rd, 2019
Welcome to our monthly newsletter featuring emerging markets intelligence for forward-thinking executives in the SMB cold food transport, storage, and tracking technology sectors. Brought to you by Sal Yazbeck from our emerging markets research desk.
As a courtesy, information is gathered monthly from news stories, leading opinions, and other sources potentially helpful to US firms considering business opportunities in emerging market countries.Highlights of selected content focus on the post-harvest logistics ecosystem and may feature topics as technology, logistics, trade organizations, infrastructure, regulatory developments, investment activities, and more. Each highlight includes a link to read the article in full.
USING TECH TO IMPROVE AFRICA'S LOGISTICS INDUSTRY
June 9, 2019 - BBC News
BBC News reports that poor infrastructure in Africa is holding back its logistics markets, since without established road networks, getting products to customers quickly and safely can be struggle. According to the article, farmers in Nigeria can expect that about 50% of their produce reaches distributors or buyers in salable condition. However, the article reports that current market activity from foreign investments and local start-ups is set to change that. Such developments can potentially encourage farmers to build more capacity into their farms as food spoilage consistency is improved. But technology use alone is seen as one part of a logistics solution, the article notes, as access to business loans is also needed.
MSC TALKS SMART CONTAINERS AND BLOCKCHAIN AT SHANGHAI DIGITALIZATION SUMMIT
June 28, 2019 - FreshPlaza
FreshPlaza is reporting that Mediterranean Shipping Co (MSC) has partnered with Traxens as its preferred technology supplier to enable operation of smart containers. According to Traxens' website, its tracking devices are permanently attached to assets as reefer containers or trailers with collected data sent to their IoT platform. MSC is also noted to be piloting the use of blockchain technology in the maritime industry on its own, as well as with sponsored initiates from multiple carriers.
FACEBOOK’S DIGITAL CURRENCY MAY FLOURISH WHERE BANKS DON’T
June 28, 2019 - The Associated Press (AP News)
AP News reports that Facebook's new digital currently, dubbed Libra, is aimed at a huge financial services market - the entire developing world. In these regions, the article notes that many tens of millions of people live far away from banks or money transfer centers. For this population, Libra can provide a universal and stable currency. Over the past decade, the entire African continent is noted as having skipped over using cards and went straight to mobile for sending money via text messaging. However, AP News reports that these payment systems are often restrictive based on the type mobile carrier used. Libra, in this respect, is seen as solving this problem by creating as it seems a network neutral system, or as noted, a universal currency.
JVS SIGNS ON DHL SMARTRUCKING AS LOGISTICS PARTNER
June 25, 2019 - Supply Chain Management Professional (SCMPro)
The SCMPro website is reporting that JVS, an apple trading company based in Chandigarh, India, has appointed DHL SmarTrucking as its technology-enabled refrigerated trucking solution provider. The article notes that the family-owned JVS business has been working with farmers for over 28 years to supply apples across the country. With DHL SmarTrucking, JVS is able to reduce transit times from seven days to currently four to five days while maintaining optimal temperatures. DHL is reported to provide such solutions through application of Internet of Things (IoT) technology as well as use of route optimization software to reduce transport time.
REFRIGERATED WAREHOUSING AND STORAGE – REFRIGERANTS MATTER
June 26, 2019 - Cold Link Online
In this article, Cold Link Online reports on what it takes to set up refrigerated warehousing and storage facilities in South Africa. A detailed story, it features interviews with several professionals from this industry to provide background on areas as internal facility setup, selection of appropriate refrigeration systems, building storage facilities that adhere to various regulations, insurance company requirements, including a set of do's and don'ts for such potential projects.
POLICY & REGULATORY
FUTURE OF INDIA-JAPAN RELATIONSHIP IS AI, IOT, 5G
June 10, 2019 - Foreign Investors On India (FII News)
FII News is reporting that at a June 7, 2019 forum in New Delhi, the Japanese Ambassador to India has emphasized the India-Japan partnership with a particular focus on supporting India in its development growth, as well as interest in jointly undertaking projects in Africa. Interest is reported to be on areas of collaboration related to artificial intelligence (AI), Internet of Things (IoT), and 5G technologies. On infrastructure, FII News adds that Japanese companies are increasingly seen committed to India's progress, notably in the railways and energy sectors.
GOYAL REVIEWS DRAFT OF NATIONAL LOGISTICS POLICY
June 28, 2019 - Foreign Investors On India (FII News)
In this article, FII News is reporting that Piyush Goyal, Minister of Commerce and Industry & Railways in India has directed four logistics related ministries on the need to reduce the cost of logistics in the country to below 10% of GDP from current 14% by 2022. FII News reports that this development is based on a prepared draft National Logistics Policy which includes inputs from forty-six Partnering Government Agencies (PGAs). In a complex logistics sector, a key aim of the policy, among others, is reported to focus on all efforts being made to improve cold chain efficiencies, especially for fruits and vegetables, so that produce moves from farm to market with reduced losses of product and time.
MAERSK CEO WANTS TO EMPHASIZE INLAND LOGISTICS
June 28, 2019 - FreshPlaza
FreshPlaza is reporting that Soren Skou, CEO of Danish shipping giant, A.P. Moller-Maersk, wants to realign the company's revenues from a current 80% from container shipping, to one of a 50-50 scenario in two years with new investments in in-land capabilities. FreshPlaza reports Mr. Skou as noting that non-ocean investment interests are in areas as warehouses, container terminals, and customs brokerages. In a press release, Maersk also notes that it is investing capital in container monitoring and coordination solution provider, Traxen, which will also position it alongside other major shippers as SMA SGM and SMC as key Traxen shareholders and customers.
PRIVATE EQUITY FUNDS INJECT $1.1BN IN LOGISTICS & WAREHOUSING
June 20, 2019 - Foreign Investors On India (FII News)
FII News is reporting that a variety of India country-level activities (as strong economics, favorable government policies, and growth retail and e-commerce) have led private equity firms to invest in access of $1.1 billion in logistics and warehousing between 2017 and first-quarter 2019. These numbers are reported to contrast against $0 investments during the period of 2015 and 2016. The article notes that the rise in e-commerce activity has created a interest in demand logistics and warehouses within the Tier I and Tier II markets. Seen as fragmented logistics market, however, and to move the e-commerce industry forward, FII News reports that collaboration is seen as key for change from all industry stakeholders. These stakeholders include entities as infrastructure, logistics, e-commerce, and technology firms.
WILL AI KILL DEVELOPING WORLD GROWTH?
April 18, 2019 - BBC News
In this BBC News article, Ian Goldin, professor of globalization and development at Oxford University, writes about the potential effects of artificial intelligence (AI) on emerging market economies as few countries with concentrated companies drive global technological development -- a reality, he notes, contributing to a growth in inequality. In the article, Professor Goldin recognizes the notable views in favor of AI as it is seen potentially improving education, jobs, and income for the poor and rural populations. He, however, argues that for those new firms entering emerging markets, it is still early days for many and with no telling signs of success. He further adds that it remains unclear if a handful of positive company experiences in one country can be replicated in another. These issues and how to respond, he concludes, should be of great concern to policymakers everywhere.
About Sal Yazbeck, Ph.D.
This newsletter is published monthly by Sal Yazbeck, Ph.D. Based on his latest research, Dr. Yazbeck offers strategic research, advice, and consulting support to motivated US firms (as IoT device companies, reefer transport operators, and cold food storage operators) with an interest in post-harvest type expansion opportunities in emerging market regions. For more information and contact, please visit our website at www.salyazbeck.com.