Coffee Prices soar to a seven-year high as supply tightens and production falls

GLOBAL – Coffee prices have hit a seven-year high due to a shortfall in the global supply of the commodity and worsening climate conditions in South America where most of the crop is grown.  Arabica futures for March delivery rose as much as 2.6% to $2.189 a pound in New York, the highest rise for a most-active contract since October 2014.  In the previous year, prices almost doubled, which raised the cost outlook for companies like – Starbucks Corp. and Peet’s Coffee & Tea Inc. which favor the high-end variety of…

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Brazil farmers plant more soybean incentivized by high domestic prices

BRAZIL – Brazil is expected to produce a record amount of soybeans as more farmers are incentiviced to grow the crop due to its attractive domestic price, according to the Foreign Agricultural Service of the US Department of Agriculture (USDA).  Area under soybean farming is estimated to grow to 40.5 million hectares for 2021/22, up from 39 million hectares in 2020/21.  As more acreage comes under the crop, USDA estimates production at 145 million tonnes, based on a yield of 3.58 MT per hectare.    This represents a six percent production increase compared to 137…

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AmBev steps closer to 2025 sustainability goal with launch of first carbon neutral brewery in Brazil

BRAZIL – AmBev, Brazil’s largest brewing company and part of global brewer AB InBev, has unveiled its first brewing and malting facility in Brazil.  Located in the South region of Brazil, the brewery and malting site achieved the carbon-neutral status after reducing 90% of their CO emissions and offsetting the remaining 10%.  The maker of Brahma, Bohemia, Stella Artois beer brands also plans to unveil another four carbon-neutral breweries before the end of 2021.   “This important step supports our efforts to achieve our ambitious 2025 Sustainability Goals, which aim to drive progress across our full, integrated supply chain,” says Rodrigo Figueiredo,…

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Kraft Heinz to expand presence in Brazil’s condiments and sauce market with acquisition of Hemmer

BRAZIL – American food company Kraft Heinz has signed an agreement to acquire Brazilian food producer Companhia Hemmer Indústria e Comércio (Hemmer) for an undisclosed sum.  Headquartered in Blumenau, Santa Catarina, Brazil, Hemmer has a reach history spanning over 106 years and primarily offers condiments and sauces.   The deal which is subject to regulatory approvals by CADE (Brazil’s Administrative Council for Economic Defense) will see Kraft Heinz acquire more than 250 “meal-enhancing” offerings.   According to Kraft, these offerings will support its strategy of accelerating its international ‘taste elevation’ product platform and growing its presence in…

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Booming citrus fibre market gains US$50m investment from CP Kelco to expand processing capacity

BRAZIL – Global ingredient solutions provider, CP Kelco has announced it will invest over US$50 million to expand production capacity for its Nutrava Citrus Fiber at its Brazilian facility, following strong customer demand and market potential. The project will add a second NUTRAVA Citrus Fiber production line to the company’s facility in Matão, increasing total capacity to approximately 5,000 metric tons. This is the second major move in the pectin space this month as Cargill inaugurated a US$150 million pectin production facility in Bebedouro – the heart of Brazil’s citrus-growing…

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Cargill opens US$150m pectin processing plant in Brazil to meet demand for clean label texturising ingredients

BRAZIL – American privately held global food corporation Cargill has opened a new US$150 million processing plant in Bebedouro, Brazil to enable it meet the increasing demand for clean label texturising ingredients.  Located in Brazil’s citrus growing region, the new site provides a large supply of fresh fruit peels – the raw material used in pectin production.   With an abundance of raw materials at its disposal, the new site will produce the full suite of Cargill’s pectin offerings, enabling the global food corporation to expand its presence in South America…

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Aryzta continues business simplication with sales of Brazil Unit as Harlan Bakeries acquires AmeriQual

BRAZIL – Switzerland-based international baking company Aryzta has agreed to divest its Brazil businesses to Grupo Bimbo in its latest move to simplify its operations.  “The successful sale of the Brazil businesses is a further positive step in the delivery of our strategy to rebuild Aryzta’s leadership in bakery in Europe and Asia,” said Aryzta chairman Urs Jordi, who has also been serving as the company’s interim CEO since the end of last year.    “Aryzta’s disposal programme since September has exceeded expectations in all regards and accelerates the group’s journey to financial stability.”  As part of…

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JBT to acquire food safety solutions provider Prevenio as Tate & Lyle expands presence in Brazil’s fruit preparations market

US – JBT Corporation, a leading American food processing machinery and airport equipment company, is set to acquire Prevenio, a US-based provider of food safety solutions in an effort to become the preferred provider of full-line solutions for poultry customers.  Prevenio, formerly known as CMS Technology, offers pathogen protection through its anti-microbial delivery solution that enhances food safety and integrity for its clients in the protein and produce markets.  Its solutions are primarily tailored for the poultry industry where it has expertise in providing breakthrough solutions to prevent foodborne illness from entering the supply chain.  The acquisition made at a…

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IFF launches new solution to support clean label baking in South America

BRAZIL- IFF, a leading food ingredient supplier, has unveiled a new, innovative bakery solution aimed at helping South American bakers produce clean label bread and pastries.  Known as GRINDSTED® POWERBake Clean, the new solution is a blend of soy lecithin, enzymes, and natural soluble fiber and is an alternative to the dough strengtheners currently used in bread formulations. Its use, therefore, makes it possible to avoid the use of oxidizing agents that are traditionally used in bakery, some of which have names that consumers are unfamiliar with.  Hopping on the clean label bandwagon  With IFFs new ingredients,…

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Beef processing giant Marfrig increases stake in Brazilian peer BRF to 31.66%

BRAZIL – Marfrig Global Foods, the world’s second-largest producer of beef after JBS, has increased its stake in BRF to 31.66% in an effort to diversify its holdings. BRF is one of the biggest food companies in the world, with over 30 brands in its portfolio, among them Sadia, Perdigão, Qualy, Paty, Dánica and Bocatti. The Brazilian company has a presence in more than 130 countries across the globe and reported revenues of US$7.82 billion in 2020. The acquisition of additional stake in BRF comes two weeks after Marfrig revealed…

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