CSIRO research, underway in Central Queensland’s cattle country, is investigating whether the integration of trees, pasture and livestock into a single agricultural system will produce greater net returns for producers and the environment. The ’silvopastoralism’ system is gaining worldwide attention as a potentially profitable land-use practice, particularly following the emergence of new market opportunities such as carbon trading. CSIRO Livestock Industries’ (CLI) project... ...Read more »

World Bank Group President, Robert Zoellick, has called on leaders of the G8 as well as the major oil producers to act now to deal with surging food and energy prices, warning that the world is now “entering a danger zone”. Mr Zoellick outlined his fears in a letter to the head of the imminent G8 summit in Japan, in which the World Bank, World Food Program (WFP) and International Monetary Fund estimate that about $10 billion is needed to meet short term needs of people hit hardest by... ...Read more »

The high cost of fuel is wreaking havoc with some food and beverage industries worldwide, with demands for government aid increasing by the day. Winemakers in the south of France have vandalized supermarkets and burned two police cars in the southern city of Montpellier. The protest by vintners last week was in response to skyrocketing fuel costs and falling prices for regional wines. The thousands of protesters were seeking to draw the government’s attention to the plight of winemakers in... ...Read more »

The agricultural sector in China’s Sichuan province has suffered enormous damage estimated at around $6 billion caused by last month’s devastating earthquake, the FAO (UN Food and Agriculture Organisation) said overnight.According to an FAO assessment mission that recently visited Sichuan province, over 30 million people in rural communities have been severely hit, losing most of their assets. Thousands of hectares of farmland were destroyed, millions of farm animals died, houses and... ...Read more »

Hedging has long been a tool used by companies to counter the impact of potential changes in market conditions, but rarely have restaurants engaged in the practice. With skyrocketing food costs and fears that price hikes may continue it now appears, however, that restaurants and other foodservice organisations are embracing the concept, particularly overseas. In the past restaurateurs have discounted the thought of hedging due to the complications of the process, a lack of market size and the rationalisation... ...Read more »

Major legislation changes are likely to be recommended when the ACCC release their report into the competitiveness of the grocery industry, based on comments made by ACCC Chairman Graeme Samuel yesterday. Speaking at a lunch hosted by the Australian Institute of Company Directors, Mr Samuel indicated that he thought certain companies may have provided them with information that they would have preferred to keep secret.”The public hearings enabled us to put some people under the pump to find... ...Read more »

The mounting cost of food has led to members of the food industry seeking new approaches to deal with the issue. For some it has been hedging on financial markets, many are looking to tighten their budgets and reduce other expenses, while others are simply stockpiling to level out the price of food. Buying in bulk is becoming more prevalent as foodservice managers are trying to avoid a crisis and franchises, in particular, have benefitted from the practice. Providers of food tend to guarantee... ...Read more »

ICM, Inc., a US leader in the ethanol industry, has announced that ethanol biorefineries will be capable of commercially producing both food and fuel in 2010. “We are talking about the ‘ethanol biorefinery of the future’…and very near future at that,” proclaimed Dave Vander Griend, founder, president and CEO of ICM. “Fifty years ago, the U.S. fed the world. We will be able to do that again with a food supply brought about by the evolution of ethanol production.” The... ...Read more »

While conditions across the Australian grains belt have been variable, a forecast increase in the area planted provides optimism regarding winter grains production in 2008-09, according to the Australian Bureau of Agricultural and Resource Economics (ABARE). ABARE’s June issue of the Australian Crop Report indicates a good season could be possible - vital given the recent difficult years and current skyrocketing food prices. “Although substantial areas have been dry sown, the... ...Read more »

As higher commodity prices become ‘the new normal’ rather than a temporary peak, we may see a greater impact on consumer behaviour and retailer and supplier strategies than has been apparent so far, according to a new report from Deloitte Touche Tohmatsu, “Food and Beverage 2012 - a taste of things to come”. While current food commodity prices may come down from their current peaks, the rises already seen in the real cost of food represent a permanent shift. With consumers also... ...Read more »