Rabobank report: Reforms improve outlook for India's sugar industry

13 June — The recent removal of the levy sugar obligation and the abolition of the quarterly release mechanism will likely provide immediate relief to the Indian sugar sector, currently burdened with US$1.95 billion in sugarcane arrears. After months of deliberation, the Cabinet Committee on Economic Affairs (CCEA), headed by the Prime Minister, approved partial decontrol of the Indian sugar sector as of the current sugar season (Oct 2012 to September 2013).

June 2013

  1. Jun 07

    Rabobank: Global demand orange juice declines; Brazilian market hit with consequences for pricing

    Global demand for orange juice has been declining, particularly in the main consuming regions of Europe and North America, with global imports falling from 1.5 million tonnes in 2008/2009 to a forecasted 1.1 million tonnes by 2019/2020, affecting the long term prospects for the industry.
  2. Jun 06

    Rabobank Global Sugar Outlook: Asia and Africa to lead growth in global sugar consumption

    Asia and Africa will be the driving forces behind significant global growth in sugar consumption, according to a report from Rabobank. The report, Global Sugar to 2021, states that annual global sugar consumption is projected to grow from 166 million tonnes to 203 million tonnes, raw value, by 2020/2021. The leading driver of rising global consumption will be Asia, where consumption is expected to rise from 75 million tonnes to 97 million tonnes, raw value, over the same period.
  3. Jun 04

    Rabobank Report: Agribusiness logistics in Brazil – the road to ruin?

    2013 is likely to be a very difficult year for agribusiness logistics in Brazil, according to a report from Rabobank. Transport costs in the country have risen significantly due to three factors: new legislation impacting the working hours of truck drivers, a sharp increase in diesel prices and rising export volumes for major commodities.

May 2013

  1. May 30

    Rabobank Poultry Quarterly Q2: Positive global outlook threatened by bird flu in China

    A new report from Rabobank finds that the positive outlook for the global poultry industry is highly dependent on the continuation of several trends. These include a balance in local supply and demand, falling feed costs and ongoing high prices for competitive meats, such as pork and beef. Key wildcards for the rest of the year will be global trade developments (which were very weak in Q1 2013) and the impact of avian influenza virus H7N9 (bird flu) on the Chinese poultry industry.
  2. May 29

    Rabobank Report: Russian Meat Industry at a Turning Point

    Over the last ten years, the Russian meat industry has grown at an extremely fast rate. However, changes including lower projected domestic consumption growth and Russia’s World Trade Organisation (WTO) membership will drive the industry towards lower growth over the next ten years. These developments are likely to compel Russian and international companies with exposure in Russia to alter their strategies. In the coming decade, the industry’s market focus will shift from volume to value.
  3. May 23

    Rabobank: Rise of the 'Hybrid Consumer' to polarise the food sector

    The rise of the 'hybrid consumer' is an emerging trend with significant implications for food companies, food retailers and food service companies. According to a new report from Rabobank, consumers are becoming less interested in mid-market products and are instead trading down when it comes to everyday value-for-money items, such as basic groceries.
  4. May 21

    Rabobank: Breakfast Cereal Makers Need to ‘Think Beyond the Bowl’ to Remain Relevant

    Breakfast is probably the most important meal of the day, but in the US, the battle over what to eat and where has never been greater. According to a new report from Rabobank, consumers are increasingly overlooking the cereal bowl in favour of other options. Five key trends are behind this American breakfast revolution. Despite the challenge from alternative options, Rabobank believes there is still strong potential for the US cereal market.
  5. May 15

    Rabobank Fertiliser Quarterly

    Diverse weather across the Northern Hemisphere is bringing significant uncertainty to the 2013 Q2 fertiliser markets, according to a new report from Rabobank. The fast-approaching Northern Hemisphere planting season will be pivotal in driving short-term agri-commodity prices.
  6. May 08

    Rabo on Renewables Q2: Strong signals of support continue, but EU 2020 target unlikely to be met

    The continued slow pace of new investments in renewable energy around the world seen in Q1 this year, masks some strong signals of support according to the quarterly report from Rabobank. In the US, the role shale gas production will play in the energy mix may dominate the agenda of the new administration, but there remains a clear commitment to renewable projects.
  7. May 01

    Rabobank Report: Rising costs and overvalued Peso hampering Argentina’s bottled wine industry

    Increasing costs and an overvalued Argentine peso have been denting the competitiveness of bottled wine at the low-end segments. According to a report by Rabobank, if the recent economic developments persist, Argentine wine producers will likely see further margin contraction even for their mid-tier brands.

April 2013

  1. Apr 23

    Rabobank Wine Quarterly Q1: Impact on pricing mainly limited to Europe

    The impact of tighter global wine inventories has mainly been felt in Europe and in the lowest price segments to date, according to a report from Rabobank. Although bulk wine shipping has helped to globalise the world wine trade, the impact of tighter supply has been felt very differently across producer regions.
  2. Apr 18

    Rabobank Beef Quarterly Q1: Horsemeat scandal fails to impact short term EU Beef demand

    The Rabobank Global Cattle price Index has recovered slightly from Q4 but remains 8% down YOY. According to a report by Rabobank, the European horsemeat scandal has had hardly any impact on consumer demand and resulting beef prices. The outlook for the global beef industry is mixed, but overall global beef production is likely to remain constrained and demand is set to weaken in the face of growing inflation across the globe.
  3. Apr 12

    Rabobank Report: Emerging Markets embrace Olive Oil at a fast rate

    Demand for olive oil in emerging markets has grown at a rate of over 13% since 2007 and such double digit growth is expected to continue for at least the next five years. According to a new report from Rabobank, suppliers will have to differentiate their strategy change the way in which they source their produce if they hope to access the full potential of these new markets. The nascent Chinese market offers a considerable opportunity, with A-brands and cost leaders best positioned for success.
  4. Apr 11

    Rabobank Pork Quarterly: Promising outlook for the second half of 2013

    The global pork sector has experienced a stable first quarter in 2013, with supply and demand more or less in balance, resulting in stable prices for the Rabobank five-nation finished hog price index. This stabilisation, in combination with the slow downward pressure of feed prices and the adjustment of most sales contracts to the new price levels—and despite the relative lacklustre demand development—gave the industry momentum to regain part of the margins lost in the last couple of years.

March 2013

  1. Mar 21

    Rabobank Report: Bursting the Urea Bubble

    The global urea market is set to enter an era of oversupply post 2015, according to Rabobank. Unprecedented acceleration in urea capacity expansion by key importers (the US, Brazil and India) and low-cost producers in the Middle East and Africa (MEA) will drive structural changes. This capacity expansion is expected to improve the self-sufficiency of the top three importers and ensure that supply growth significantly outpaces demand growth, shifting the market into a buyers’ market towards 2020.
  2. Mar 20

    Rabobank Dairy Quarterly Q1 2013: Supply Contraction and Chinese Buying Tighten the Global Market

    The global dairy market tightened considerably in mid-March, and looks set to remain tight throughout the next six months, according to Rabobank’s latest dairy quarterly report. While demand remained weak in the EU and US, importers continued to search for increased quantities, led by a surge in Chinese buying.
  3. Mar 08

    Rabobank Report: Can China's poultry move out of pork's shadow?

    In China, poultry producers have long lived in the shadow of the pork industry, which remains the meat of choice throughout the nation. Whilst this trend is evident in the highly correlated prices between each market, a new report from Rabobank suggests that China's poultry industry is beginning to develop its own growth path.
  4. Mar 04

    Rabobank Report: China could dominate soymeal exports to South East Asia

    China has the potential to replace South America as the dominant exporter of soymeal to South East Asia, according to a report from Rabobank. By maximising its existing crushing industry capacity – utilisation is currently below 50 percent – China could ringfence regional demand, providing a significant growth opportunity for Chinese crushing businesses.

February 2013

  1. Feb 28

    Rabobank Poultry Quarterly: improving market conditions

    The global poultry industry continues to operate in a challenging market place, but conditions for 2013 are improving; a reduction in corn prices in recent months has been a welcome break for an industry that saw margins shrink in many parts of the world throughout 2012. According to Rabobank, the poultry industry’s pricing power should improve, with continuing high prices for competitor meats such as pork and beef leading consumers to choose the cheaper poultry option...
  2. Feb 22

    Rabobank Report: The Brazilian Ethanol Connection

    Rabobank expects cane production in Brazil´s Centre/South region to rebound strongly in the forthcoming 2013/14 harvest. As a result, the region´s production of both sugar and ethanol could rise significantly, which in turn would have consequences for the world sugar market, given Brazil´s status as the world´s pre-eminent sugar exporter.
  3. Feb 22

    Rabobank Report: Growth challenges for biodiesel in South America

    Argentina and Brazil are among the largest producers of biodiesel in the world. But they have their differences; while Argentina is mainly export focused, Brazil’s industry caters to the domestic market. According to a new report from Rabobank, both countries face future growth challenges, limited by policies relating to blending mandates, pricing and export incentives, as well as the dwindling support for first generation biofuels in the EU.
  4. Feb 14

    Rabobank Report: Transforming the Food & Agri Supply Chain

    Rabobank addresses the flaws in the current F&A supply chain structure that leave the sector ill equipped to respond to this new complexity. It calls for the industry to transform the way supply chains are organized, by adopting longer-term supply agreements and, cooperative relationships with upstream and downstream partners.
  5. Feb 13

    Rabobank Report: Keeping pace with Indian ‘quick service’ restaurant growth

    Rapid change in food consumption habits in India has spurred domestic and foreign quick service restaurant (QSR) chains to implement aggressive expansion plans. According to a new Rabobank report, this growth is set to accelerate.
  6. Feb 11

    Rabobank Report: Brazil is a seafood industry giant in the making

    Brazil has all the necessary ingredients to become the next seafood super power, rivalling established producers such as Thailand, Norway and even China, according to a report by Rabobank. However, in spite of its intrinsic natural resources and large availability of grains, the Brazilian seafood industry still has to overcome significant barriers to realise its potential.