Industry Reports

Saudi Arabia embraces European cheese as imports from the EU increase

France is the second-largest dairy producer in the EU with 23.8 billion litres produced in 53,800 dairy farms in 2019 and continues to command the attention of Saudi Arabian cheese aficionados with well-known cheese such as Camembert and Brie remaining popular choices for all culinary occasions.

Other French cheese varieties increasing in popularity in Saudi Arabian cooking includes blue cheese, like Fourme d’Ambert or Bleu d’Auvergne, slightly salty cheese made of cow’s milk; Comte, which has the highest production volume with approximately 64,000 tonnes annually; and fresh cheese, which is made from whole or skimmed milk and cream and can be used as an appetizer, a snack or creamy desert.

Marie-Laure Martin, International Project Manager from CNIEL, said: “Both hotels and consumers in Saudi Arabia are continuing to choose French cheese for their cooking and baking, signalling a real awareness from the Saudi consumer in using only the finest produce that is known for safety, superior quality and traceability.

“French dairy farms adhere to a national charter of good cattle breeding practices with 250 analyses per farm per year for milk pricing in accordance with its composition and quality. Also, traceability is provided between the farms and the collection tanker, and then along the entire processing chain right to the end-user to ensure world-class food safety. Technology has made it possible to make our food chains completely transparent – something we know our Saudi consumers welcome.”

In 2020, the French Dairy Board launched France, Land of Milk, which was created to highlight the need for sustainable development within the French dairy sector.

France Terre de lait covers the entire dairy supply chain by focusing on four key areas of sustainability performance, including economic and social, food safety, food nutrition, and responsible production (animal welfare and the environment). Eight specific goals have been set for 2025 to align French sustainable dairy farming with the goals and targets set out by the UN’s 2030 Agenda.

French cheese is also gaining popularity in the wider Gulf Cooperation Council (GCC). Kuwait has seen imports up 9% from 5,328 tonnes in 2019 to 5,788 tonnes in 2020. Despite restrictions on the tourism and hospitality market, the UAE imported 15,710 tonnes in 2020, further underscoring the demand for French cheese in the UAE.

“In recent years we’ve become acutely aware of the evolving tastes of Middle East residents and tourists as they gravitate towards high quality and flavourful French dairy products. We are undertaking several campaigns to highlight the unique characteristics of French dairy as this region continues to be an important export market for many leading producers from France,” added Martin.

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Transforming Africa's Cocoa Industry

Cocoa is essential to the livelihoods of up to 50 million people around the world, including around five million smallholder farmers. West Africa, mainly Ghana and Ivory Coast, produces about 70% of the world’s cocoa on 1.5 million farms, with the majority of the crop coming from small farms (3-5 hectares of land). Recent studies criticising the global chocolate industry for exploitative practices have concerned ethical consumers. Cocoa farmers only earn about 6% of the chocolate industry’s total revenues. Leading chocolate companies have since 2001 made pledges to end widespread abusive labour practices, but continue to fall short. In Ghana, local firm Federated Commodities has shown it is only by improving the cocoa supply chain, with experienced local oversight, that ethical, sustainable and profitable cocoa and chocolate industries can exist. CEO Hajia Maria Adamu-Zibo is ready to form international partnerships to take the Ghanian cocoa sector forwards. Cocoa farmers only earn about 6% of the chocolate industry’s total revenues Cocoa farmers work very hard, often under strenuous conditions, yet don’t earn enough to cover their basic needs. Although the worldwide chocolate market is valued at USD 103 billion, on average, farmers earn only about 6% of the chocolate industry’s total revenues. Many cocoa farming communities in West Africa lack access to education, potable water, and basic social amenities. Cocoa is essential to the livelihoods of up to 50 million people around the world, including around five million smallholder farmers Furthermore, labour practices on cocoa farms are problematic. In a bid to reduce production costs, farmers are inclined towards child labour. An estimated 1.56 million children work on cocoa farms in Ghana and Ivory Coast. About 43% of children aged 5-17 in these two countries are engaged in hazardous work, including exposure to agrochemicals without protective equipment, the use of dangerous tools and working at night. Despite years of pledges from chocolate manufacturers to end abusive employment practices in their supply chains, there has been a 14% increase in the number of children working in cocoa farms over the past 10 years, accompanied by a 62% rise in production. Child Labour in the Cocoa Industry The Director of Impact at the Fairtrade Foundation (www.Fairtrade.org.uk), Louisa Cox, cited in a Guardian article suggested that ‘long-term finance, training and technical services, and helping farmers diversify beyond cocoa’ is needed to help address child labour in the cocoa industry. These are all measures that Federated Commodities (FedCo) – an indigenous licensed buying company (LBC) founded in 1996 in Ghana – has a sustained track record of taking. “As an affiliate company of Global Haulage, FedCo engages in the supply of traceable and certified cocoa beans to help promote sustainability in cocoa production through community development and capacity building of farmers. Under this programme, farmers are trained on adult literacy and good agricultural, business and social practices, which empowers them economically,” says Hajia Maria Adamu-Zibo, the Managing Director of Federated Commodities, in an interview with AfricaLive.net. “The wellbeing of the farmer is of high priority to us. We strive to have a relationship beyond just transactions with the over 50,000 farmers who make up our supply base. We were amongst the first indigenous privately owned firms to go into sustainability. FedCo has achieved several milestones since then. We have 300 employees, 1,700 purchasing clerks, a larger fleet of vehicles, as well as an affiliate company that does not only cocoa haulage but also other endeavours related to the industry.” “We have also touched the lives of countless farmers and communities across Ghana through social interventions. The FedCo Cocoa Farmers Association consisting of about 15,000 farmers provides social benefits, including funeral benefits, and loan facilities to set up farms, to buy agricultural inputs, and to send their children to school. A total of 3,000 farmers have benefited from various forms of financial support in excess of USD 500,000 towards their farming activities. Together with our partners, FedCo has since 2012 supplied over 44,000MT of sustainable cocoa beans and invested about USD 7 million in sustainability, through training, cash premium payments, and various projects.” “Access to financing has always been a problem for the farmers. Farmers’ lives are improved when we facilitate access to inputs and credit facilities so that they effectively carry out their pre-and post-harvest work. We are big on helping farmers by assisting them add value their livelihoods. Going forward, we intend to help more farmers improve their living income by helping them get sustainability programs that will see them get paid more.” On diversification beyond cocoa, Hajia Adamu-Zibo says, “We have diversified into the cashew market which gives us a great alternative during the lean period of the cocoa season. Part of our community engagement drive is getting into farm service agreements with individual farmers. Deals like that will see us take care of their yield in exchange for the commodity after harvest. Diversification helps farmers earn more because they are not banking their livelihoods on just one crop. Processing is part of our long term plan as well.” Empowering Farmers in Africa Federated Commodities has big dreams for farmers in Ghana. “We go beyond just buying. We really try to do more for the farmers and communities,” says Hajia Adamu-Zibo. The LBC believes that partnering with academic institutions to impart technical skills holds promise for improving farmers’ lives and the cocoa industry. “We have put in place programmes to help improve the quality of life of our farmers. For instance, we have worked with local educational authorities to build schools that will help give youth relevant skills to work in the industry. So far, we have constructed seven schools and intend to build more,” she says. “Training programmes for farmers are also part of our agenda so that they can learn how to diversify crops and make use of crop by-products. We are also teaching them financial literacy skills to empower them to better manage their finances. Since October 2018, about 2,032 farmers have enrolled in FedCo’s Village Savings and Loan Programme, run in partnership with Solidaridad West Africa, which is enabling farmers to save for their futures and fund their ventures. We have had interactions with the Kumasi Technical School about the possibility of their students making tools that can help farmers break the cocoa. Discussions are also ongoing on how we can mechanise more processes.” With more partnerships and funding, Federated Commodities aims to be able to do more, for more communities. “Our activities have really enhanced communities. We have also built libraries, computer centres, community halls and over 100 boreholes. It makes me so happy to see FedCo’s impact in the lives of farmers and in communities, and how appreciative they are,” says Hajia Adamu-Zibo. Case Studies Valrhona Working with Valrhona to improve educational facilities in Ghana’s Western Region. FedCo has a long-term agreement with Valrhona, a French premium chocolate manufacturer that sources and transforms the finest cocoa to make high-quality chocolate. The agreement allows Valrhona to source cocoa directly from 1001 producers in eight communities in Ghana’s Western region. Community leaders stressed the importance of improving educational facilities. A subsequent assessment of schools revealed 30% of students were learning in unsafe conditions, while a third of children were out of school. In 2017, Valrhona launched a five-year project to improve access to education and learning conditions for the communities’ 4882 children. https://www.youtube.com/watch?v=L8de58PVmtE FedCo-sponsored Asamankese Cocoa Pilot Project Cocoa farming is the economic base of Asamankese town, in Ghana’s Eastern Region, but the farmers have struggled with skilled labour and agricultural inputs—which has contributed to limited yields and little to no profit. FedCo has been working with farmers in Asamankese to improve production and yield by providing skilled labour and inputs such as fertilizer. However, the project is currently on hold due to funding challenges. Hajia believes that this project has lots of potential and that many more similar ones can be done; “in spite of these initial challenges we are determined to pursue this and similar projects because we believe that they offer significant benefit to our farmers”. FedCo is open to new partnerships that will allow the project to recommence. https://www.youtube.com/watch?v=hWtxL77J5xs Revamping West Africa’s Cocoa Industry As one of the top foreign exchange earners for Ghana, cocoa is central to the country’s economic development. The ‘cash crop’ has sustained lives over generations and successive governments have explored interventions to revamp the sector. Interventions taken by the Ghana Cocoa Board (Cocobod) under President Nana Akufo-Addo’s administration, have since 2017 included increasing volumes of cocoa production through improved agronomic practices and increasing producer prices. In September 2020, the government announced a 28% increase in the guaranteed producer price it pays to farmers for the 2020/21 growing season. The price rise is due to the implementation of a price floor of USD 2,600 per tonne and a living income differential of USD 400 per tonne, to put more money into the hands of farmers. Ivory Coast is taking similar steps. “Indeed, cocoa has been an important commodity for our country. Cocoa is not just a cash crop for us; it has also become part of our politics. The cocoa sector feeds about 800,000 people in the country and issues that affect the industry can be quite emotive. Unfortunately, our industry has suffered a dip in production in recent times occasioned by climatic changes as well as factors such as disease. The impact of the measures the government has put in place will start being felt in a few years, with the expected rise in volumes of production,” says Hajia Adamu-Zibo. “Adding value to our cocoa is also part of our national strategy. Value addition will help increase the value of our product, boost our standing in the global cocoa industry, and lead to job creation.” “The government is focusing on increasing production while also encouraging diversification in the overall agriculture sector to improve the sector and boost our national revenue. Cocoa and cashew processing will help add value and put even more people to work. It will also help more companies like us benefit from the industrialisation drive of the Ghanaian economy. Other commodities the government is looking at include coconut and rice production, to ensure the agricultural industry reduces its reliance on cocoa. This will give Cocobod room to better strategise and add value to cocoa.” “In the future, cocoa will not be the dominant crop in Ghana if our diversification plans come to fruition. Cocoa will still be an important and relevant crop but it won’t be as prominent as it is now.” Partnership: The Path To International Growth With the African Continental Free Trade Area (AfCFTA) agreement set to commence in January 2021, Hajia Adamu-Zibo believes that Ghana stands to gain greatly as long as the country improves its skill base and makes production funding more accessible. “We are well endowed with natural resources and qualified hardworking personnel. The relevant bodies are doing their best, but we are still not as sophisticated as we need to be for the international market. The majority of items we import can be produced locally, but we lack the finesse required to make our products more attractive. A lack of focus on perfecting our products opens the door to a high import rate. Our country must improve its skill base,” she says. “The other obstacle in the way of our production capacity is funding. The cost of funding in Ghana is very high compared to other countries. If the interest rates eat so much into your margins, then you can barely run a profitable venture. If we work on the rate and make funds more accessible, we will create room for more innovation and production in our country.” Federated Commodities is exploring global partnerships to tap more into the global cocoa industry. “We are looking to seal important contacts in Europe and America as we seek sustainability partnerships that will be of mutual benefit. In Africa, we are looking at maybe getting partners in Cote D’Ivoire as well as South Africa because these are two strong cocoa markets. We possess the knowledge as far as cocoa is concerned and an ideal partner would be someone who has the technical expertise to process on a large scale,” says Hajia Adamu-Zibo. “Ghana can be the hub when it comes to business in all spheres if we adjust our tariffs. That way, we will favourably compete with Togo and Cote D’Ivoire. Maybe we also need to diversify our languages and get proficient in French. Ghana is surrounded by francophone countries and that should push us to learn French to properly transact.” Skills Development: Optimising for Greater Heights As Ghana seeks to grow its economy and compete more on a global scale, Hajiya Adamu-Zibo calls on the government to, “place more emphasis on skill development.” “We must cultivate a culture of perfectionism so that we develop the right disciplines and products that serve our people and beyond. If we have the right skills, we will have the right mindsets and ultimately the right products. Of course, we have to tackle issues of cost and infrastructure but I believe skills should be our priority,” she says. On Federated Commodities’ ambitions to make greater contributions to the global sustainable cocoa industry, as well as Ghana’s agricultural sector, Hajia Adamu-Zibo, says, “There are a lot of challenges in the cocoa industry, and the competition is very keen, yet we have a loyal customer base. I believe Federated Commodities must be doing something right and that is why our farmers are happy with us.” “We need good partnerships to help our farmers so that we can keep them motivated. We are looking at skill development, education sponsorships, loans and savings programmes and host of other programmes. Our consistency has made us very trustworthy and reliable in a very competitive environment. In a decade, I foresee a company full of diversified professionals that can thrive in many fields and make this company a huge name in Ghana and beyond.”

Industry Reports

Saudi Arabia embraces European cheese as imports from the EU increase

The European Union’s (EU) imports of European cheese to Saudi Arabia increased to 42,476 tonnes in 2020, an annual increase of 15% on the 36,888 tonnes imported in 2019, according to the latest research from CNIEL, the French Dairy Board. France is the second-largest dairy producer in the EU with 23.8 billion litres produced in 53,800 dairy farms in 2019 and continues to command the attention of Saudi Arabian cheese aficionados with well-known cheese such as Camembert and Brie remaining popular choices for all culinary occasions. Other French cheese varieties increasing in popularity in Saudi Arabian cooking includes blue cheese, like Fourme d’Ambert or Bleu d’Auvergne, slightly salty cheese made of cow’s milk; Comte, which has the highest production volume with approximately 64,000 tonnes annually; and fresh cheese, which is made from whole or skimmed milk and cream and can be used as an appetizer, a snack or creamy desert. Marie-Laure Martin, International Project Manager from CNIEL, said: “Both hotels and consumers in Saudi Arabia are continuing to choose French cheese for their cooking and baking, signalling a real awareness from the Saudi consumer in using only the finest produce that is known for safety, superior quality and traceability. “French dairy farms adhere to a national charter of good cattle breeding practices with 250 analyses per farm per year for milk pricing in accordance with its composition and quality. Also, traceability is provided between the farms and the collection tanker, and then along the entire processing chain right to the end-user to ensure world-class food safety. Technology has made it possible to make our food chains completely transparent – something we know our Saudi consumers welcome.” In 2020, the French Dairy Board launched France, Land of Milk, which was created to highlight the need for sustainable development within the French dairy sector. France Terre de lait covers the entire dairy supply chain by focusing on four key areas of sustainability performance, including economic and social, food safety, food nutrition, and responsible production (animal welfare and the environment). Eight specific goals have been set for 2025 to align French sustainable dairy farming with the goals and targets set out by the UN’s 2030 Agenda. French cheese is also gaining popularity in the wider Gulf Cooperation Council (GCC). Kuwait has seen imports up 9% from 5,328 tonnes in 2019 to 5,788 tonnes in 2020. Despite restrictions on the tourism and hospitality market, the UAE imported 15,710 tonnes in 2020, further underscoring the demand for French cheese in the UAE. “In recent years we’ve become acutely aware of the evolving tastes of Middle East residents and tourists as they gravitate towards high quality and flavourful French dairy products. We are undertaking several campaigns to highlight the unique characteristics of French dairy as this region continues to be an important export market for many leading producers from France,” added Martin.

Foodstuff Market

Healthier Food Choices Becoming A Norm

According to a recent Mintel study entitled “Free-from Food Trends,” 43 percent of consumers agree that free-from foods are healthier than foods without a free-from claim. Additionally, another 59 percent agree with the statement that the fewer ingredients a product has, the healthier it is. For example, the gluten-free food and beverage market has steadily been cementing its position as more than a mere dietary fad. According to market research publisher Packaged Facts, sales of gluten-free foods in the US recorded an annual growth rate of 34% over the five-year period ending in 2014, when market sales reached $973 million. In addition, almond milk sales have been growing at a rate of 70 – 80% year-on-year in the UK, as consumers look for a dairy-free alternative to their traditional pint of milk.

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Cannabis Cultivation in Zimbabwe Attracts Investments

Zimbabwe has legalised cannabis cultivation and has withdrawn laws requiring sole state ownership for cannabis farming in an effort to encourage investment in cannabis cultivation for industrial and medicinal uses. Demand for cannabis is projected to grow worldwide while tobacco output is expected to decline 15% by 2030, according to Meanwell Gudu, the CEO of Zimbabwe’s Tobacco Industry and Marketing Board. “One of the alternative crops we are looking at is industrial hemp,” he said. “We want to be part of the entire industrial hemp chain.” Tobacco earned Zimbabwe $819 million in revenue in 2021. Farming cannabis for medical use in Zimbabwe was first legalised in 2018. The board has 145,000 registered tobacco growers, who started selling 2022’s crop at international auctions recently. According to recent government initiatives, farmers in Zimbabwe will be encouraged to plant cannabis so that a quarter of their income comes from the plant by 2025. Sales of cannabis worldwide is forecast to reach $1.25 billion this year. Cannabis Exports from Zimbabwe Zimbabwe exported 30 tonnes of industrial hemp to Switzerland in 2022, its first foray into the European market, said Zorodzai Maroveke, the founder of the Zimbabwe Industrial Hemp Trust. The group is partnering with the tobacco board to facilitate the “smooth transition” to cannabis for commercial purposes. As of now, the government of Zimbabwe has licensed 57 foreign and local entities to grow medicinal cannabis in the country according to a recent statement by the Zimbabwe Investment and Development Agency. As a result, production has already begun at some of the licensed farms which are spread across the country. Cannabis, also called mbanje in Zimbabwe, is no unknown word to people today. It has many health benefits like fighting cancer, and 22 countries around the world legalised it for medicinal use. South Africa, Malawi, Zambia, and Lesotho have also legalised medicinal cannabis.

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YugOpt: Wholesaler of FMCG, Grocery Items, Canned Food in Russia

YugOpt is based in Russia and is a renowned stockist, wholesaler, exporter as well as retailer of global FMCG brands as well as FMCG products of Russian origin. With 24 years of experience in the FMCG line, we supply a wide range of internationally renowned brands like: Nescafe (And other Nestle products) Red Bull Heinz Skittles Pringles Nestle Gillete Proctor & Gamble Heineken Kit Kat Ariel Tide Mars Coca Cola Nesquick Twix Tchibo Orbit Unilever Ferrero Lipton Alkozay Starbucks… to name a few. YugOpt procures its products directly from manufacturers as it is the Authorised Distributors for many leading multinational brands in Russia. Over the last 10 years, we have been exporting huge quantities of high quality FMCG products to many countries such as United Arab Emirates, Israel, India, Saudi Arabia, Egypt, Turkey, Australia, Malaysia, Singapore, Uzbekistan, Kazakhstan, Armenia etc. YugOpt: Leading Distributor of Consumer in Russia YugOpt is one of the largest trading companies in Southern Russia engaged in importation, sale and distribution of consumer goods through all trade channels – local and international. The comprehensive range of products offered by YugOpt includes foodstuffs, alcoholic beverages, mass market consumer goods we well as supermarket equipment and gadgets. Today YugOpt is recognised as one of the leading suppliers of a wide range of products in Russia and is trusted by the largest multinational companies in the world to handle their brands in the Russian market. The company has been the agent of many multinational brands in Russia for many years. YugOpt has been supplying goods to to local retail and wholesale chains in Russia as well as to our international buyers. YugOpt has its own branches across Russia in Sochi, Armavir, Krasnodar, Maykop, Novorossiysk, Rostov-on-don, Simferopol and Staroderevyankovskaya. Currently, the company works with over 13,500 partners across the world. As one of the largest stockists in Russia of multinational brands of world renowned products, YugOpt offers its clients competitive prices as well as fast deliveries directly from its state-of-the-art warehouses in Russia. YugOpt has dedicated Distribution Centres and Warehouses equipped with the latest technologies and systems combined with excellent logistics procedures that deliver the best service for warehousing and distribution. Golden Harvest: Popular Brand of Russian FMCG Products We also produce the high quality FMGC products under our own brand ‘Golden Harvest’ that is exported to various countries around the world. Under the Golden Harvest brand we produce a wide variety of FMCG products like: Tomato paste Jams Canned mushrooms Sweet corn Meat Fish Potato Chips Macaroni Pasta… to name a few. ‘Golden Harvest’ range products can be supplied on private labeling also. We are looking for agents and distributors in Africa for our Golden Harvest brand of products in key African markets.

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