FoodNews Market Report 23-07

JULY 2023 issue

"You can't think negatively and expect positivity."

- Unknown -

We love summer: Sunshine, vacations, and happy moods on mild evenings with dear people. But as beautiful as summer is, it can also be oppressive and stressful. In particular extreme temperatures and drought are a danger to people, the environment, and also agricultural production. The mood of many people can be described as clouded and burdened. No one can look to the future with a light-hearted outlook: There is still war in Europe, discussions about political decisions to increase tolls are doing the rounds, and the economic sky just doesn't seem to be getting any brighter... No wonder we are asking ourselves more and more frequently: What will happen next? How will purchasing and consumer behavior develop?

We at Paul M. Müller are also currently dealing with many questions. Against the background of rising prices, however, we are discussing something totally different: Are prices really TOO HIGH at the moment? Or have they been TOO LOW for years? “Cheap is cool" was the advertising slogan of an electronics store years ago. A slogan that ignored everything it takes to produce high-quality goods: Great knowledge and expertise, excellent production conditions and the best factors outside. All of which, of course, also apply to the production of food. The sad fact is, however, that this year we are once again dealing with extreme weather events. You can read how these are specifically affecting various product categories in this market report.

And then there's the other side: "Crises make you strong" is how Erwin Erb, Managing Director of Miesbacher Gastroservice, appropriately sums it up. On the occasion of the company's 50th anniversary, we asked him about the company's greatest successes, challenges, values, and future goals. His credo: Yes, crises bring change but they can also bring positive and lasting change.

You can also look forward to good news from our quality assurance department and a mini-interview with our new employee Christiane Abel. Yes, you read that right: We continue to grow and look positively into the future. Because you can't think negative and expect positive. This is true in business as well as in private life. Maybe there is even a nice vacation coming up for you soon? I wish you a wonderful time with good thoughts, delicious food, and lots of relaxation. Because as you now know: We love summer.

Yours, Thomas Schneidawind

Tomatoes:

Harvest starts in Europe

The tomato harvest in Europe is about to start. The good news beforehand: The fruits are of high quality. The bad news: Prices for industrial goods remain high because the warehouses are empty.

One man's joy is another man's sorrow: While the processing and trading industry eagerly awaits the fresh raw material, it has to accept the more expensive raw material prices. This year the price is around 150 Euros per ton of round tomatoes in all Western European growing regions.

One man's joy is another man's sorrow: the processing and trading side eagerly awaits the fresh raw material, but has to accept the more expensive raw material prices - these are around 150 euros per ton of round tomatoes in all Western European growing regions.

Tomato products for wholesale are sold out from the past harvest. But there are surpluses of small cans for retail. This combination is motivating producers (if it is possible for them due to production) to increasingly rely on bulk containers. Whether they are successful in this market remains to be seen as it can lead to oversupply. In addition, demand from wholesalers and out-of-home caterers is volatile and cannot be predicted due to the negative economic outlook. Connoisseurs therefore expect prices to remain at or slightly above the previous year's level in the short term. However, this can also change quickly - as always - due to the weather.

Tuna:

Worldwide fishing areas

Tuna is a real perennial favorite in our Food News. It is one of our top products and there is always news. In the past weeks we have been talking about price developments and the reported suspension of production in a tuna factory. Now, from July up to and including September, a "FAD-ban" applies in the Western Pacific (fishing area 71). It suspends tuna fishing with so-called "fish aggregation devices" (FADs). We will keep an eye on price developments for you and keep you informed.

According to German law, fresh and packaged fish must contain some important information: The specific trade name of the fish species (also applies to crabs and seafood) and the area where the marine animals were caught or the aquaculture in which they were farmed. Information about the origin and the specific approval number of the production facility are necessary.

In our tuna products you will find information on the packaging about the type of tuna (skipjack or Yellowfin tuna) and a number. This code provides information about where the fish was caught. The Food and Agriculture Organization of the United Nations (FAO) has defined these so-called "fishing areas" and divided the world's oceans into 19 different zones for this purpose. Fishing zones 34 and 71 are the most important in terms of ADRIA tuna. You can find out exactly where they are located on a href="https://transfer.paulmmueller.fantomas-staging.de/wp-content/uploads/2019/09/PMM-Fanggebiete_DE.pdf" target="_self">our map .

Legumes:

Healthy and precious

Beans and chickpeas are real stars when it comes to a plant-based (read: vegan, vegetarian or flexitarian) diet. Their biggest plus point is their high protein content. This means that the daily protein requirement can be met without fish, meat and dairy products. Our vegan chickpea salad shows how delicious this can be. Would you like a taste? This way.

But it's not just in terms of protein that pulses can compete with meat and the like. In terms of price, they even beat most animal products - even though prices for plant-based foods are currently rising. The reason here, as in many other cases... is the weather. Droughts in Spain and Argentina have caused major damage. In Spain, experts estimate the yield of the harvest currently taking place to be at least 65 percent lower than usual. And although the chickpea harvest in Argentina does not begin until November, adverse effects from heat and lack of water are already expected here as well, leading to higher prices. The same applies to Canada, where the price is rising mainly due to high demand from India, South America and North Africa.

So beans after all? No. The harvest of the popular Bianchi di spagna (giant white beans) is also lower than usual this year. Experts report a harvest of 100,000 tons in Argentina instead of the usual 180,000-200,000 tons. How the upcoming harvest in Poland (the most important growing country of white giant beans for us) will turn out, we cannot estimate at the moment. We will keep you up-to-date in our following Food News.

Since the best is known to come to the end, another nice info: Our stocks with chickpeas as well as Bianchi di spagna are well filled. So how about our Chickpea salad?

Fruit cocktail:

Soon without cherries?

Our ADRIA fruit cocktail consists of five different types of fruit: Pineapples, peaches, grapes, pears, and cherries. This could soon be a thing of the past... While peach harvest in China is currently proceeding as planned, the supply of pears and pineapples cannot yet be accurately estimated. Producers are focusing more on large pears for direct consumption this year, and pineapple prices are currently on the rise. In addition: The greatest uncertainty steems from the cherry industry. The warehouses with imported goods from Europe are empty. There are no supplies from overseas in sight. Although cherries are also available in China, they are less suitable for use in fruit cocktails compared to European produce, as they quickly discolor themselves and color the other fruit components. It is uncertain whether this situation will lead to a trend toward 4-fruit-cocktails. What is clear, however, is that a tasty alternative is also offered by our tropical fruit cocktail - please do not hesitate to contact us.

Fruit from Greece:

Bad harvests

Nature cannot be controlled. This has an impact on harvests and prices like it can be currently seen in Greece: Local experts speak of "the worst apricot harvest in the past 20 years." As a result, raw material prices have risen by more than 30 percent. In the case of peaches, a quarter of the harvest was destroyed by the weather. That means price increases of up to 16 percent. And the raw material price for pears is also rising. According to estimates, it will rise by at least 33 percent compared to 2022. The corresponding canned fruit is thus becoming more expensive overall.

Pineapples:

Poor summer harvest

Strong heat, little rain: Consequences of this unfavorable combination are clearly evident in the recently completed summer pineapple harvest in Asia. According to initial projections by industry experts, the total harvest volume in 2023 will be lower than 900,000 tons. Overall the harvest volume is 29 percent lower compared to 2022. This would be even lower than the already gloomy outlook we reported in the past Food News reported in May . This has consequences above all at the price level. Starting at 8.00-8.30 Thai Baht/kg in March, raw material prices are now up to 9.90 Thai Baht/kg. At the same time, demand for canned pineapple and pineapple juice concentrate remains moderate, and export volumes for canned fruit from January to April this year were about 26 percent lower than last year. What does the winter harvest in November have in store for pineapple fans? We are curious.

"We are doing very well. We are growing incredibly and holding our own very strongly against our biggest competitor. If you take a look at the past few years, of course there have been challenges for us as well. Most recently the Corona crisis and the economic crisis of 2008/2009. But crises make you strong, and we're seeing that very clearly at the moment."

- Erwin Erb

Miesbacher Gastroservice GmbH turns half a century - 50 years old. We met Managing Director Erwin Erb for an interview, who talks about the company's developments, but also about the partnership with Paul M. Müller.

PMM: Mr. Erb, Miesbacher Gastroservice is celebrating its 50th anniversary these days. Congratulations! What was the greatest success?

To prevail as a medium-sized company against the big competitors and to keep on prevailing. Looking back, this was not only the greatest success but also the greatest challenge.

Were there other challenges as well?

If you take a look at the past few years, there have certainly been crises. Most recently, there was the Corona crisis, but also the economic crisis of 2008/2009. But crises also make you strong, and we're seeing that very clearly at the moment. We're doing very well, we are incredibly growing and holding our own very strongly against our biggest competitor.

How do you manage that?

Service, service, service. Be closer to the customer – that is our motto we live by day after day. At the end of the day, we as a company sell not only the product but the gastro service. That is our strength.

Service as a wish of the management is one thing - how do you transport this idea to your team?

I spend 60, 70 percent of my day at work. As a boss, you have to talk a lot with your employees, motivate them, say good things to them, even when things aren't going so well.

Miesbacher Gastroservice and Paul M. Müller have enjoyed a close partnership for many years. What makes this partnership particularly strong?

A partnership is strong when you stick together in good and bad times. Remaining true to one another, being loyal, even turning a blind eye sometimes. It's important to be able to rely on each other. It's also important for partners to tell each other when things aren't great and are going badly. It's just as important to be able to quickly put disagreements behind you.

How can strong partners - like Miesbacher Gastroservice and Paul M. Müller are - grow together?

You grow from the positive moments - and from the negative ones. The Corona crisis was the best proof of this.

What common values do partners need to cultivate?

Quality, reliability, loyalty. For me, this is the most important. It is almost above the price. Those values are an absolute MUST.

If you were to look into a crystal ball: Where is Miesbacher Gastroservice headed?

I think and believe and know how much potential there is in Miesbach Gastroservice. If we keep on working the way we are currently, we will grow extremely strongly. But we also have to manage to recruit reasonable staff.

What is the biggest challenge facing the industry in the future?

To survive. To be a modern company - just like Paul M. Müller. And: To recruit and retain good personnel.

What are Miesbacher's next major milestones in the coming years?

We want and need to expand - by 5,000 square meters. As early as 2016/2017, the first request went to the town hall - without success. Although there was movement on the matter again in the middle of last year, the topic fell asleep again. Since 30,000 square meters are available for construction in the water conservation area adjacent to our company premises. Currently we are exerting massive pressure here. We need space and the expansion area so that the company can continue to grow. We are at the end of our capacity otherwise.

Thank you for the interview.

For reasons of space, we have shortened some parts of the interview for the Market Report. You can find the entire interview with Erwin Erb, as well as many others with other exciting interviewees, at our Website.

IFS certification:

passed successfully

With letter and seal: Paul M. Müller recently successfully passed its audit for IFS certification at Higher Level. It is clear that the two managing directors Thomas Schneidawind and Helmut Fabian Kretschmer are proud of their team - and especially Sonja Urban and Oliver Munz from Quality Assurance (QA). Because: The IFS-Broker certificate officially confirms that all appropriate measures have been taken to raise the requirements for product safety and quality to the highest level. We talked to Sonja about the audit.

Sonja, congratulations on the IFS certificate. What are the biggest challenges to get the IFS certificate?

The topic is very complex because all activities of a company are considered. From company management and policy, to customers, suppliers and quality management.

What does that mean in concrete terms?

We in QA could not handle the issue alone. We need the support of the management and every single department to fulfill all the points. Everyone has to work side by side - there's no point in recommending and specifying certain suppliers if our colleagues in the other departments don't follow suit.

How does such an audit work?

Once you are certified for the first time, the audit takes place every year - otherwise you would lose the certification again. There is an audit period - in cooperation with TÜV Süd. A date is set for us with the auditor. The audit lasts a whole day, during which things are queried and documents are checked, etc. By the way, it is not easy to get an auditor to come to the company, because many companies are very interested in being certified - or even have to be certified if they want to supply to the retail trade.

So now it's time to take a deep breath?

No, you have to work very well 365 days a year to maintain the level. Every year there are new requirements that you have to meet. We get help from an external consulting firm that tells us where we need to develop, where we need to lend a hand, and what we need to improve. It's constant work, we can't let gaps get in the way.

New all-rounder in quality management

Christiane Abel has been part of the team since May 1, 2023. As a restaurant specialist and certified ecotrophologist (read: home economist and nutritionist), she has already worked in nutrition therapy and product development. Now she contributes her know-how to the quality assurance department and to sustainability issues.

Christiane, what are your tasks in terms of sustainability?

In short: Diverse. For example, I check all steps along our supply chains for sustainability. This includes social, ecological and economic factors. So I check that our partners and suppliers produce food in the most environmentally friendly way possible.That there is no child labor, and that the collaboration is economically viable for everyone. This also means we are well prepared for the Supply Chain Act.

... so a super interface to quality management (QM)?

That's how it is. Here, too, I take care of various test reports and inspections together with my colleagues. As recently as June 2023, for example, we were again awarded the IFS certificate. For us in QM, however, this also means that we must constantly develop further in order to continue to maintain all requirements for future certifications.

Sounds challenging. And why did you choose PMM?

Honestly: I was super taken with the Tomato videos and the entire outward appearance. This self-irony coupled with great professionalism appealed to me straight away. Now, after my first two months, I am very happy that my feelings were not wrong. I feel very comfortable in the team and with my job.

We're glad to hear that - great to have you!

Anuga:

The countdown is on

Our personal trade show highlight in 2023 is approaching: the Anuga trade show in Cologne. To be able to welcome you there from October 7 to 11 at our stand, we have come up with something completely new. We won't tell you what it looks like yet - just this much: it will be big, creative and different. You will find us at the trade show in Hall 2.1, Aisle C, Booth 019. We look forward to seeing you.

Our personal trade show highlight in 2023 is approaching: The Anuga trade fair in Cologne. To be able to welcome you there from October 7 to 11 at our trade fair stand, we have come up with something completely new. We won't tell you what it looks like yet - just this much: it will be big, creative and different. You will find us at the fair in hall 2.1, aisle C, booth 019. We are looking forward to meeting you!

Higher tolls soon in Germany?

The Ministry of Justice is currently examining a draft bill from the Bundestag that affects the level of tolls in Germany and could come into force as early as December 1, 2023. If it becomes reality, the toll will rise by 15.8 cents per kilometer. Paul M. Müller's Managing Director Thomas Schneidawind explained what additional costs will mean in the past tuesday talk by describing the route from Hamburg to Munich as an example.

Although we rate the sources we use as being reliable, we cannot accept any liability
for the information provided here being complete or correct.

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JULY 2023 issue

Tomatoes:

Harvest starts in Europe

Tuna:

Worldwide fishing areas

Legumes:

Healthy and precious

Fruit cocktail:

Soon without cherries?

Fruit from Greece:

Bad harvests

Pineapples:

Poor summer harvest

IFS certification:

passed successfully

New all-rounder in quality management

Anuga:

The countdown is on

Higher tolls soon in Germany?

PMM Community

Market report by mail

Contact

In Person

Contact form

THOMAS SCHNEIDAWIND

JULY 2023 issue

Tomatoes:

Harvest starts in Europe

Tuna:

Worldwide fishing areas

Legumes:

Healthy and precious

Fruit cocktail:

Soon without cherries?

Fruit from Greece:

Bad harvests

Pineapples:

Poor summer harvest

IFS certification:

passed successfully

New all-rounder in quality management

Anuga:

The countdown is on

Higher tolls soon in Germany?

PMM Community

Market report by mail

Here you can find the PMM FoodNews

Contact

In Person

Contact form

THOMAS SCHNEIDAWIND