|EMERGING MARKETS REVIEW||Connected Post-Harvest Logistics|
December 2019/January 2020 Issue
January 4th, 2020
Happy New Year and welcome to my monthly newsletter featuring emerging markets intelligence for forward-thinking executives.
As a courtesy to my reader community in the SMB cold food transport, storage, and tracking technology sectors, information is gathered monthly from news stories, leading opinions, and other sources potentially helpful to US firms considering data-connected post-harvest logistics business opportunities in emerging market countries. Each highlight includes a link to read the article in full.
This newsletter is inspired by my latest research analysis report on Connected Next Generation Post-Harvest Logistics in Emerging Countries.
Thank you for being part of my newsletter reader community.
TRENDS IN FOOD TECHNOLOGY IN THE INDIAN SCENARIO
December 7, 2019 - FNB News
According to FNB News, researchers from the India Institute of Food Processing Technology present a breakdown on a variety of technologies identified as being adopted in the agricultural food sector. According to the article, several trends such as areas of food safety, a growing population, and a need to produce more food fit to eat have created a need for novel technologies designed to answer the call. To this end, the authors present a descriptive list of technologies ranging from blockchain and the Internet of Things (IoT), to 3D food printing and nanoencapsulation technology.
STUDY FINDS CLIMATE CHANGE COULD REDUCE FRUIT AND VEG YIELDS BY A THIRD
December 24, 2019 - FreshPlaza
According to FreshPlaza, research from the London School of Hygiene and Tropical Medicine indicates that reduced rainfall and an increase in water salinity could have a drastic reduction in the yield of soft-type fruits as grapes and bananas. Considered along with higher temperatures as bi-products of climate change, the water salinity part is said to occur from activity as storm surges and rising sea levels. The range of production yield reduction is estimated to be around 21% to 28%. The article notes that in an increasingly global trade environment, import of foods grown in other countries facing drought conditions further adds to the complexities around ethical sourcing and of those surrounding a resilient food system.
ETHIOPIA INKS PACTS FOR ALIBABA-LED EWTP TO PROMOTE BARRIER-FREE TRADE
November 26, 2019 - Logistics Update Africa
Logistics Update Africa reports that the Ethiopian government has joined the Electronic World Trade Platform, or eWTP, as an eCommerce hub. The eWTP, an initiative of Alibaba founder Jack Ma and one recognized by the G20, has already been adopted by several countries on the premise that eCommerce, as conducted through the platform, will increase as the number of platform hubs increase. The Ethiopian eWTP hub is said to open markets to SMEs, and serve as a trade gateway between China and other markets.
POLICY & REGULATORY
EXPLAINING UGANDA REVENUE AUTHORITY DIGITAL TAX STAMPS (DTS)
November 1, 2019 - Sautitech
According to Sautitech, the Ugandan government has introduced a Digital Tax Stamps (DTS) initiative effective November 1, 2019. In form, DTSs are paper stamps affixed to a package or product, and contain security features as anti-tampering and Track and Trace capabilities. As well, a DTS also contains a QR code helpful to consumers and retailers to verify the authenticity of a product through use of a smartphone app. Sautitech reports that the initiative also helps the Uganda Revenue Authority (URA) counter concealment of revenue figures and to combat trade in counterfeit goods.
UAE’S TOP COMPANIES TO INVEST IN FOOD, LOGISTICS IN PUNJAB
December 3, 2019 - The Economic Times
The Economic Times reports that several UAE-based companies are poised to make investments in the Indian state of Punjab where the UAE is a partner country with the Progressive Punjab Investors Summit, 2019. Targeting several segments of the food supply chain, some UAE companies are planning new market entry, while others as the Lulu Group are expanding existing operations. To that effect, the article notes that real-estate company Emaar Group with already 630 acres in Mohali has plans to enter the fruits/vegetables and poultry sectors. And DP World is looking to enter the logistics arena in Pathankot, while Hind Terminals is developing a multi-modal logistics hub in Ludhiana.
CHINESE INVESTORS FUND $120 MILLION INTO OPERA’S FINTECH STARTUP OPAY
November 18, 2019 - SautiTech
According to SautiTech, the web browser Opera has secured a $120 million funding from Chinese investors for its African-focused OPay fintech startup. OPay support includes a number of investors, and this latest round is set to help it scale in Nigeria and expand its payment products to other African markets.
THE EFFECT OF BIGGER HUMAN BODIES ON THE FUTURE GLOBAL CALORIE REQUIREMENTS
December 4, 2019 - PLOS ONE
Research published in the journal PLOS ONE (by authors Lutz Depenbusch and Stephan Klasen) tells of the coming complexities surrounding the increase in global human weight, as measured by two central areas on future calorie needs: Body Mass Index (BMI), and height. In search of insight surrounding what likely happens when trying to maintain individual energy requirements under such scenario, the researchers' findings show that a massive increase in caloric intake would be needed, and that policy models should consider guidelines moving away from dense-calorie type foods that contribute to overweight and obesity. The authors caution that simply providing unhealthy foods at low prices alongside reduced physical activity has shown to lead to an obesity pandemic in low- and middle-income countries. As well, looking forward, such a reality will inevitably lead to an increase in demand for food, and ultimately an increase in food prices. Other areas playing a major role, the researchers note, include needed solutions on supply chain streamlining, reduction in food losses, and an increase in farm production to offset the food losses, among others discussed.
CHALLENGES AND BARRIERS IN MANAGEMENT OF COLD CHAIN
November 4, 2019 - FNB News
Professor Soumya Rathore writes in FNB News on the current status and future prospects for the food cold chain in India. According to the article, food losses remain a big part of the supply chain and are attributed mainly to the post-harvest segment. As much as 30% of fruits and vegetables are spoiled in India during storage and transportation, and incurred primarily via variations in standard temperature. The author adds that while there has been an increase in supply chain investments, the concept of Cold Chain Management is a relatively recent adoption. That said, the Indian cold chain industry remains highly fragmented, and many cold storage facilities use old technologies which then contribute to poor product quality and reduced shelf life. The article includes further detail on sector key growth challenges and future prospects.
About Sal Yazbeck, Ph.D.
This newsletter is published monthly by Sal Yazbeck. Based on his latest research, Sal 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 logistics type opportunities in emerging market regions. For more information and contact, please visit our website at www.salyazbeck.com.