big data platform monthly news digest october 2020

1

Big Data Platform

MONTHLY NEWS DIGEST October 2020

SUMMARY

Food chain disruptions ......................................................................................................... 2

European hospitality industries and exporters face difficulties ..................................................................... 2

Agricultural producers struggling in South and Southeast Asia ..................................................................... 2

Reduced grains and soybeans production in the United States and Brazil .................................................... 3

Impact on commodities and food prices ................................................................................ 4

Most mentioned commodities in relation to developing countries ............................................................... 4

Most mentioned commodities in relation to developed countries ............................................................... 4

Countries’ response ............................................................................................................. 6

Improvements to technology and access to market in South Asia and Sub-Saharan Africa .......................... 6

Financial aid initiatives in North America, United Kingdom and Australia ..................................................... 6

Provision of training and agricultural inputs in West and East Africa ............................................................ 7

Regional focus ..................................................................................................................... 8

Africa .............................................................................................................................................................. 8

America .......................................................................................................................................................... 8

Asia and Oceania ............................................................................................................................................ 9

Europe ........................................................................................................................................................... 9

Appendix ........................................................................................................................... 10

Web References ................................................................................................................ 11

2

FOOD CHAIN DISRUPTIONS

European hospitality industries and exporters face difficulties

Both developing and developed countries faced issues related to agricultural exports during the month of

October, but the retail and hospitality sectors of the developed countries were the most affected. This was

confirmed by several newspaper articles mentioning reduced exports and shutdowns in the hospitality

industries of several European countries, such as the United Kingdom, Ireland, France and Germany. More in

particular, the adverse weather conditions affected wheat production in France towards the end of August

(as mentioned in the previous issue of this monthly news digest), which later had repercussions on the

country’s exports. Algeria is one of the largest customer of French wheat, but an increase in Russian supplies

undermined France’s position in October: Algeria relaxed its wheat tender specifications to accommodate

the Russian exporters and Russian shippers were invited to Algerian tenders (Devitt & Chikhi, 2020);

however, Algeria has yet to benefit from such decision, as Russian wheat export prices have increased in the

meantime, due to the dry weather (Devitt, 2020).

Germany, on the other hand, has seen its pork exports to China, Japan and South Korea decrease after an

outbreak of African swine fever in wild boars was confirmed at the beginning of last month, which also had

an effect on pork prices, that decreased by 14% in the country (Hogan & Hunt, 2020). Wine trade in Europe

also decreased during the first half of 2020: the value of Austrian wine sales in the United Kingdom

plummeted, and so did wine exports from Spain, France and Italy to Germany (Riley, 2020). Finally, the new

restrictions imposed by European governments to limit the growing number of Covid-19 cases in October

severely damaged Ireland’s, Scotland’s, Wales’ and England’s hospitality industries, and fuelled protests in

London.

Agricultural producers struggling in South and Southeast Asia

Last year, an oversupply of rice in the Philippines determined a collapse in rice prices that impacted on

farmers; in October, rice prices saw a sudden drop again (towards the beginning of the month, one kilogram

of rice was sold on average at PHP 12), which according to the president pro tempore of the country’s

Senate was an effect of the current rice tariffication law, that opened the market to cheap imported rice

from Vietnam and Thailand (where rice producers are backed by government subsidies) (Ramos-Araneta,

2020). Owing to the increasing competition with Ecuador, Cambodia and Vietnam, and to the damages

caused by the Panama disease and the fusarium wilt to banana plantations in the Philippines, the country’s

banana industry was also struggling at the beginning of October.

For what concerns India, the producers that were most affected in the country during the month were

poultry and vegetables producers: the poultry sector was still operating at half its capacity at the end of

September due to the pandemic-induced restrictions in the processing plants, which determined supply

constraints (production decreased by nearly 40%) and egg price increases (Berkhout, 2020); the heavy rains

in India started to pose difficulties to farmers during the second half of the month, when vegetable prices

increased in the markets of several cities (Das, 2020), and continued affecting producers until recently, when

the government of Maharashtra announced a new financial aid package (Tirodkar, 2020).

Indonesian and Malaysian palm oil and coffee producers were also affected by demand contraction and

adverse weather events. The coronavirus pandemic determined a contraction in household spending by

5.51% year-on-year in the country, which reflected negatively on coffee production: the low prices and the

scarcity of buyers in the export market led many farmers in the country to hold tons of coffee under a

warehouse receipt (Prasidya, 2020). More recently, torrential downpours have caused flooding in Vietnam’s

rice fields and in Indonesia’s and Malaysia’s palm oil plantations (Batista, et al., 2020), while Pakistan keeps

struggling with the wheat crisis described in the previous issues of this monthly news digest, with prices still

increasing throughout October (Suleri, 2020).

3

Reduced grains and soybeans production in the United States and Brazil

The dry weather affected the production of soybeans in Brazil, which found itself devoid of sufficient

supplies of this commodity after it exported large amounts of soybeans to China (whose demand increased

exponentially when the country’s pig herd recovered after the outbreaks of African swine fever): these

factors contributed to the increase in soybean prices, which the Brazilian government tried to limit by

cancelling import tariffs, in an attempt to increase the supplies of soybeans in the country. For what

concerns the United States, on the other hand, the generalized lack of rainfall raised concerns about the

prospects for wheat planting in the country at the beginning of October (Thukral, 2020), which were

confirmed towards the end of the month (Batista, et al., 2020). Large portions of land in Colorado, for

example, are now in an exceptional drought that prevents cattle from feeding on sufficient quantities of

pasture grass (Sakas, 2020).

0 5 10 15 20 25 30 35 40

Distribution

Consumer

Export

Harvest

Market

Post-Harvest

Processing

Producer

Restaurants

Retail

Storage

Transport

Whole supply chain

Developing Developed

4

IMPACT ON COMMODITIES AND FOOD PRICES

Most mentioned commodities in relation to developing countries

Wheat and rice have been by far the most mentioned commodities in relation to developing countries

during the month, totalling respectively 30 and 26 mentions. More in particular, wheat was mentioned

mainly in newspaper articles related to Russia, Ukraine, Pakistan and North African countries (such as Egypt,

Algeria and Morocco). The updates on wheat production and exports in Russia primarily highlighted the

country’s tendency to explore new markets (Pakistan and Algeria, for example) and the growing domestic

and export prices of this commodity throughout the month in the Black Sea Region (due to a strong

international demand for the Russian and Ukrainian wheat and the low productivity of these countries,

caused by a prolonged dry weather). Pakistan, on the other hand, has been struggling to contain the increase

in wheat prices by enhancing imports and by distributing wheat from the national reserves to flour mills.

For what concerns rice, the most mentioned countries in relation to this commodity during the month

were the Philippines, Bangladesh, Thailand, Vietnam and India. As mentioned in the previous section of this

monthly news digest, the Philippines has witnessed an oversupply of rice during the month (caused by the

increased imports) which translated into lower prices. This, together with the fact that traders prefer

importing cheap rice rather than purchasing from local suppliers, has impacted on Filipino rice farmers, who

are forced to sell their land to repay their debts (Cortez, 2020). Rice producers in the other South and

Southeast Asian countries were similarly impacted by heavy rains and floods, which delayed the harvests and

pushed up domestic and export prices (Mondal, 2020).

Most mentioned commodities in relation to developed countries

Wheat was frequently mentioned also in relation to developed countries, together with other commodities,

such as pork, beef and wine. More in particular, wheat was mentioned four times in relation to the United

States and to Australia: owing to the dry weather conditions in both countries at the beginning of October,

wheat production forecasts were pessimistic. As already stated in the previous section of the digest, the US

was also mentioned in relation to its exports of soybeans to China, which the country could improve thanks

to the low production of this commodity in Brazil, while the news that focused on Australia also mentioned a

lower sugarcane production towards the end of last month (Goodwin, 2020) and a shortage of slaughter

cattle that drove up heavy cow prices in Queensland (Condon, 2020).

Another frequent commodity in relation to developed countries was wine, which was mentioned 15 times

during the month, mainly in newspaper articles that focused on European countries and the United States.

More in particular, as pointed out earlier, one article at the beginning of October highlighted that the value

of Austrian wine exports to the United Kingdom plummeted by 26.9% during the first six months of 2020,

and that Spain’s, France’s and Italy’s wine sales to Germany all decreased (Riley, 2020). Furthermore, the

Distilled Spirits Council of the United States found out that the US whiskey exports to the European Union

decreased by 41% to USD 339 million between August 2019 and July 2020, due to the 25% tariff imposed by

the US on the imports of several alcoholic beverages from the United Kingdom, Germany, Italy, Spain, France

and Ireland (Carruthers, 2020). This had repercussions on the exports of these European countries: for

example, during the first half of 2020, the UK’s spirits exports recorded a 28% decrease year-on-year (Riley,

2020).

Finally, the American wine industry was affected by the devastating wildfires that hit California in the

summer: the smoke that was produced by the fires affected grapes (and cows, which were hit by respiratory

damages caused by smoke entering their lungs) and, in some cases, made wine unfit for consumption. Since

85% of the wine produced in the country comes from California, the fires may have long-term effects that

could represent a severe challenge for the US’ wine industry (Snider, 2020).

5

0 5 10 15 20 25 30 35

Fish and Seafood

Other vegetable

Other fruit

Banana

Rice

Beef

Pork

Dairy

Poultry

Coffee

Wheat

Maize

Barley

Other grain

Cassava

Nuts

Edible oils

Cocoa

Sugar

Potato

Fodder

Soybean

Wine and spirits


6

COUNTRIES’ RESPONSE

Improvements to technology and access to market in South Asia and Sub-Saharan Africa

Most of the newspaper articles related to countries’ measures selected for the Data Lab’s daily news digests

during the month made reference to technological improvements and initiatives that were aimed at

improving the farmers’ ability to access credit and markets in the developing regions of the world. Most of

the technological improvements focused on China, India and Pakistan (6 mentions out of 12 in developing

countries).

More in particular, China expanded the use of its traceability technologies to its local varieties of

watermelon and rice as a way to revitalize agriculture in the country’s rural communities and to provide

consumers with more precise information related to the food products they purchase (Neo, 2020), while

India improved the use of artificial intelligence to enhance the quality assessment processes for different

agricultural products (rice, for example) (Damodaran, 2020) and introduced the biofloc technology to

improve fish farming in Jammu and Kashmir. Pakistan, on the other hand, has taken measures to improve

agricultural data collection in order to strengthen planning and policymaking, and relied on the China-

Pakistan Economic Corridor to introduce technologies that could support the production of barley.

For what concerns the measures that improved market access for farmers in Sub-Saharan Africa, Ethiopia,

Liberia, Kenya, Zambia and Namibia collected 7 mentions out of a total of 13 mentions to this specific kind of

government measure in developing countries. Most of these measures were aimed at improving agricultural

productivity, and therefore the livelihoods of thousands of farmers in Africa, thanks to the investments of

governments and international organizations. More in particular, Liberia focused on the enhancement of its

rice and cocoa production through the support of several UN specialised agencies (including FAO, WFP and

ILO) and thanks to an agreement between the country’s government and the National Rice Federation of

Liberia (Kollie, 2020), while Ethiopia and Kenya respectively aimed at strengthening livestock productivity

and at supporting herbs and spices producers.

Financial aid initiatives in North America, United Kingdom and Australia

Most of the news related to financial support in developed countries during the month made reference to

English-speaking countries, such as the United States, Canada, the United Kingdom and Australia. Towards

the end of September, the US Department of Agriculture funded a new study whose objective is to

strengthen the resiliency of the meat, poultry and dairy production in the country against future external

shocks, such as the coronavirus pandemic. But most of the news describing financial aid initiatives in the US

and in Canada referred to farmers getting grant funding: for instance, several US state governments

unlocked new funds through the Coronavirus Aid, Relief and Economic Security Act (Minnesota used them to

support poultry producers (Ali, 2020), while Colorado assisted ranchers, farmers, food hubs and processors).

The United Kingdom and Australia, on the other hand, chose to financially support companies operating in

the hospitality and food manufacturing industries. More in particular, the UK government announced a set

of financial measures that will allow all businesses in the country’s hospitality sector that incurred economic

losses caused by the coronavirus restrictions to claim cash grants (after many people working in this sector

demonstrated in London against said restrictions) (McAllister, 2020), while the Australian government

launched the Modern Manufacturing Strategy, which provides for the investment of around AUD 1.5 billion

for the creation of employment opportunities in the country’s food and beverage manufacturing industry

(Neo, 2020).

7

Provision of training and agricultural inputs in West and East Africa

Half of the news referring to the supply of equipment, material and training in developing countries

mentioned either Ghana, Nigeria or Tanzania during the month. More specifically, the production of cassava

in Ghana was improved thanks to the provision of almost 50,000 seedlings to more than 1200 farmers in the

Savannah Region (Nongya, 2020) and to the commissioning of a new cassava production facility with funding

from the European Union in the Western Region, where 600 farmers and young processors will be trained to

produce cassava. In Tanzania, on the other hand, over 6000 farmers were trained on the use of solar dryers

and received quality common bean seeds to improve their yields thanks to the support of the Netherlands’

Ministry of Foreign Affairs. Finally, the government of Nigeria launched the Empowering African Youths

project, which aims at providing capacity development to young people wishing to become agriculture

entrepreneurs (Bauchi , 2020).

0 2 4 6 8 10 12 14

Physical / Virtual events

Policy support

Supply of equipment, material, training

Financial support

Adoption of standards / agreements

Humanitarian aid

Trade arrangements

Technological improvements

Improved access to market/financing

Infrastructure development

Research & Development

Food distribution


8

REGIONAL FOCUS

Africa

The most mentioned country in Africa during the month was Ghana

(12 mentions, out of 63 for African countries), followed by South

Africa, Uganda (6 each), Kenya (5) and Liberia (4). Most of the

newspaper articles mentioning Ghana focused on the production of

cocoa and cassava in West Africa, or on the measures taken by the

country’s government to support farmers (especially women

farmers, thanks to the Women’s Alternative Livelihood Through

Agriculture Project). Some of the news related to South Africa, on the

other hand, mentioned the country’s efforts to fight food loss and

waste (10 million tons of local agricultural produce go to waste every

year in the country), while those related to Uganda provided updates

on the prices of coffee in the country and on the exports of this

commodity. Finally, Kenya and Liberia were mentioned mainly in

relation to Kenyan post-harvest losses (that cause a total of KES 72

billion in economic losses annually) and to the initiatives to boost

Liberia’s rice production.

America

The most mentioned countries in North and Central America were the United States (31 mentions out of 56),

followed by Costa Rica and Guatemala (3 mentions each). The US were mostly mentioned in newspaper

articles that provided updates on the country’s production and exports of wheat and soybeans (especially to

China), while the news related to the two Central American countries focused on the effects of the supply

chain disruptions caused by the coronavirus pandemic on agricultural workers.

For what concerns South America, on the other hand, the most mentioned countries were Brazil (13

mentions out of 32), Argentina (5), Chile, Colombia and Paraguay (3 mentions each). Brazil was usually

mentioned in news related to the country’s coffee exports, and to the unfavourable weather conditions that

slowed down the production of soybeans, while Argentina, Chile and Paraguay were mentioned twice

towards the end of September, when several protests erupted in response to the new coronavirus

restrictions posed by local governments. Finally, the news that mentioned Colombia focused on digital

innovation in agriculture and on food loss and waste in Latin America.

9

Asia and Oceania

The Asian countries were definitely the ones that got mentioned the most in newspaper articles related to

food chain disruptions (118 mentions, against the 87 in America, 57 in Europe, 63 in Africa and 8 in Oceania).

Within these mentions, 23 went to China, 15 to Pakistan, 13 to India and 10 to the Philippines (other

countries that were usually mentioned are Indonesia, Malaysia, Thailand and Vietnam). Most of the

newspaper articles that focused on China mentioned the country’s increased imports of maize and soybeans

(which reached the highest levels in years), due to China’s food security concerns (after a series of extreme

weather events and other disruptions damaged the country’s food supply). On the other hand, Pakistan

continued to be mentioned in relation to the government’s difficulties in providing sufficient supplies of

wheat (whose prices kept increasing during the month) to flour mills around the country, while the news

related to India, the Philippines, Thailand and Vietnam detailed the changes undergone by rice production,

by the prices of this commodity and by its import and export trends. More in particular, the government of

the Philippines was urged to reduce rice imports in order to support the local farmers, who were damaged

by the low prices of the imported rice. Finally, Australia was mainly mentioned in relation to its grains

production and export trends.

Europe

The most mentioned countries in Europe were the United Kingdom (15 mentions), the European Union as a

whole (12), Russia (9), France and Ukraine (5 each). The UK was often mentioned in regard to the challenges

faced by the country’s hospitality industry after new pandemic-related restrictions were imposed by the

government, and to the estimated consequences of a hard Brexit on the activities of the country’s food and

beverages (spirits, for example) exporters. News mentioning the EU, on the other hand, mainly detailed the

union’s efforts to finance development projects in developing countries (such as Zambia, Ghana, and Kenya),

while those that mentioned Russia, France and Ukraine usually contained updates on the production and

export of grains (mainly wheat) from these countries. More in particular, wheat prices have been increasing

during the month, amid a high demand and a dry weather (especially in the Black Sea Region), which

curtailed production.

10

Topics mentioned in relation to news categorized under the “Regional focus” section of the daily news digests

0 1 2 3 4 5 6 7

Food losses and waste

Global fresh fruits and vegetables industry

Global banana industry

Global rice industry

Global meat industry

Modernisation of food industry / agriculture

Global coffee industry

Global grains industry

Seafarers and fishers

Food security issues

Global poultry industry

Global cassava industry

Trade relationships

Deforestation and climate change

Global wine and spirits industires

Global cocoa industry

Topics by region

AFRICA AMERICA ASIA EUROPE OCEANIA MENA

0 5 10 15 20 25 30 35

Food losses and wasteGlobal fresh fruits and vegetables industry

Global banana industryGlobal rice industry

Global meat industryModernisation of food industry / agriculture

Global coffee industryGlobal grains industrySeafarers and fishers

Global palm oil industryFood security issues

Global poultry industryGlobal cassava industry

Trade relationshipsDeforestation and climate change

Global dairy industry Global potato industry

Global wine and spirits industiresGlobal cocoa industry

Topics by time

September - Fourth week (24.9 - 30.9) October - First week (1.10 - 8.10)

October - Second week (9.10 - 15.10) October - Third week (16.10 - 24.10)

Progression of the main topics throughout the month

APPENDIX

11

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big data platform monthly news digest october 2020

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