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Food Market Data Analysis

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By Valery Forti


July 29, 2009



Recent data from the Organic Trade Association's 2009 Organic Industry Survey indicated that U.S. sales of organic products, including food and non-food, reached $24.6 billion by the end of 2008, growing an impressive 17.1 percent over 2007 sales despite tough economic times. According to the report, the organic beverage sector was the second fastest-growing sector of the organic market (behind breads and grains at 35 percent) with 31.5 percent growth, representing, at 14 percent, the third largest sector (behind produce and dairy).

Organic coffee is grown using methods and materials that have a low impact on the environment. Organic production systems replenish and maintain soil fertility, avoid the use of toxic and persistent pesticides and fertilizers, and build biologically diverse agriculture. Third-party certification organizations verify that organic farmers use only methods and materials allowed in organic production. Organic coffee is grown in approximately 40 countries, including the United States.

Source: Organic News Room

India is one of the fastest growing economies in the world. While we are moving towards becoming a services-led economy, agriculture still contributes 17% of the otal GDP and employs 60% of the population.

In the year 2006-07, the size of the Food Industry in India was estimated at around Rs 8,80,000 crores (USD 200 billion), of which the Food Processing Industry accounts for about Rs 3,74,000 crores (USD 85 billion). At present, Indian Food Processing Industry is growing at the rate of 13% per annum and it has higher potential to explore particulary in the sectors such as fruits and vegetables, packaged foods, beer and wine. There, it offers tremendous opportunities for all stakeholders in the areas of production, processing, marketing, supply chain, infrastructure development, technology up gradation and education.

The Indian Food Industry had not yet realized its potential and there is scope for further value creation by modernizing this sector.

Increased income levels, cheap credit facilities, higher disposable income have resulted in greater spending and consumption among consumers. Increased mobility, exposure, increased aspirations and availability of a wider range and products, have also contributed to shifts in spending orientation.

In the affluent and middle class, the percentage share of food expenditure vis-à-vis other products/categories has dropped, the total expenditure on foods has increased across all classes. Initially food expenditure was concentrated around basic food items like food grains, vegetable oils and sugar; there is now an inclusion of fruits & vegetables, eggs, meat, beverages and processed food in their repertoire - contributed both by increased availabilty and affordability. There is an increasing trend of a shift from food security to nutritional security and convenience shopping in the recent past.

Main sectors comprising of the Indian Food Processing Industry are fruits and vegetables, dairy products, marine and fish, meat and poultry, edible oils, staples, alcoholic and non alcoholic beverages, breads and bakery, confectionery and packaged foods, among others.

Source: World of Food India

Source: Chilled Food and Mediterranean diet food

According to the latest report of Outlook for U.S. Ag Trade recently released by USDA, it is expected that in fiscal year 2004 US agricultural exports will exceed the previous year, as worth US$ 57 billion, up US$ 1.5 billion from the revised estimate of US$ 55.5 billion for 2003. As for poultry, it is expected that total export value will rise up as a result of the Global economic growth and a weaker dollar lead to increased demand for US products. It is estimated that livestock, poultry and dairy exports will be a record $12.4 billion, up $800 million from fiscal 2003.

Indiana-based AgriStats and Ehrlich's Poultry Issues Action Team are looking at way to help stabilize the poultry industry on the eastern shore region of Delaware, Maryland and Virginia. In the past the Producing poultry costs in this region was more each year than producers in other regions of the country because of pricey grain, high chicken mortality rates and expensive electricity. The four big poultry companies on the Delmarva Peninsula have spent about 9 cents more to produce a chicken than the industry average. Furthermore the region's chicken mortality rate is high even though Delmarva companies spent about $1 million more a year on vaccinations than the industry average.

According to the Cold Storage report recently released by the National Agricultural Statistics Service (NASS), has showed that total frozen poultry supplies on July 31, 2003 were up 1 percent from last month but down 12 percent from last year's level. Total stocks of chicken were down 1 percent from last month and down 26 percent from last year's level.

Trading activity was steady to barely steady in the East, and mostly steady in the remaining areas. Retail demand was light to fair and food service was fair to fairly good, best into fast food. Supplies were more than sufficient for trade needs. In production area, live supplies were moderate at desirable to heavy, mostly desirable weights. In the parts structure, trading was light to moderate.

According to the latest report from the National Agricultural Statistics Service (NASS), chicks placements for meat production in the 19 key producing states (week ending August 23, 2003) decreased to 168 million chicks, down slightly from last week and also down slightly from the same week last year.

Cumulative chicks placements from December 29, 2002 through August 23, 2003 were 5.72 billion, down 1 percent from the same period a year earlier. Estimated chick placements in Georgia, Arizona and Alabama were 25,204 million, 24,485 million and 22,084 million, respectively.

Commercial hatcheries in the 19-state weekly program set 206 million eggs in incubators, up slightly from the last week and also up 1 percent from the corresponding week a year earlier. Average hatchability during the week was 83 percent (average hatchability is calculated by dividing chicks hatched during the week by eggs set three weeks earlier).

Source: Food Market Exchange


Comments?
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Posted by David Smania on 7/29/09 at 2:51 AM EST

Excellent info. Thanks for sharing. Note that this might be moved to our "Articles" section tomorrow. Not sure yet.


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