- Potato product prices are rising sharply due to a significant shortage of potato seed across Europe, affecting both consumers and companies.
- An oversupply of agricultural equipment in the USA, caused by falling crop prices and high interest rates, is leading to significant price reductions.
- China has approved its first genetically modified wheat, marking a significant advance in agricultural biotechnology to increase crop yields and improve food security.
Welcome to our plant-based newsletter!
This week we report on the latest trends in the agricultural markets, including the rising prices of potato products and dextrose and the continued interest in corn gluten meal. We also report on important developments such as the surplus of farm equipment in the US leading to significant price reductions, the emergency situation in Russia’s grain growing regions and the groundbreaking approval of genetically modified wheat in China. Stay up to date with these important insights into the agricultural industry.
Let’s take a look at what else is happening on the market!
Products of the Week
Potato products
Prices for all potato products, including Potato Protein, Potato Flakes and Potato Starch, continue to rise due to low supply. Manufacturers of potato protein are already sold out and are looking for the product themselves. Companies and consumers can expect a new potato crop in August and September, which should have an impact on availability and prices, but there is a huge shortage of potato seed for sowing across Europe, which is exacerbating the trend. Accepting such high prices in the market could be difficult, but over time, companies and consumers may have to adjust.
Dextrose
Dextrose, a simple sugar derived from processed corn starch, is widely used in the food and medical industries. We are currently experiencing an increase in the price of dextrose due to its increasing use as a natural sweetener and preservative. These developments are impacting the production costs of many companies that use dextrose in their manufacturing processes, increasing their expenses and potentially affecting the prices of end products.
Corn Gluten Meal
Corn Gluten Meal is an important ingredient in animal feed production, which is particularly valued in pig and cattle farming, but is also increasingly used in aquaculture. Although there are no significant price fluctuations on the market for this product, its value in the animal feed industry is increasing and we are seeing more and more inquiries for this product. The growing interest in livestock and fish farming is leading to an increasing demand for corn feed gluten.
NEWS
U.S. Farm Equipment Surplus Triggers Major Price Cuts
Falling crop prices and high interest rates are leading to a considerable oversupply of agricultural machinery in the USA, resulting in price slumps and a freeze on orders from dealers. Machine manufacturers such as Deere and CNH Industrial are faced with declining sales figures, prompting them to cut back on production, while unsold inventories, particularly of high-performance tractors and combine harvesters, have risen sharply. Dealers are responding to this with substantial discounts and auctions to reduce their stocks, which is having a significant impact on their financial margins.
Russia’s Prime Grain Areas Declare Emergency After Damaging Frosts
Three major grain-producing regions in Russia’s fertile black soil region — Lipetsk, Voronezh and Tambov —have declared a state of emergency due to severe frosts in early May that have severely damaged crops. It is expected that these adverse weather conditions will significantly limit this year’s grain harvest. According to preliminary estimates, over 265,000 hectares of crops are affected. The frost, which caused temperatures to drop to as low as -5°C, follows a period of dry weather that had already prompted analysts to lower their forecasts for the 2024 grain harvest from 144.9 million tons last year to 132 million tons.
China Approves First Gene-Edited Wheat Amid Push for GM Crop Adoption
China has approved the safety of its first genetically modified wheat, taking an important step towards the commercial cultivation of genetically modified food. The approval, which includes disease-resistant wheat used mainly for human consumption, is a milestone in Chinese agricultural policy. It is also part of a broader initiative by China, the world’s leading wheat producer and consumer, to improve food security by introducing more productive and resilient crop varieties. This initiative also includes the approval of a new genetically modified maize variety that is resistant to herbicides and insects. These changes are part of Beijing’s strategy to reduce its dependence on grain imports, which amount to more than 100 million tons per year.
