Layoffs and Algae Oil

Food inflation really can’t catch a break. And with recessions hitting some countries hard, it’s looking like a rough February. Let’s dig in.

This week: 

🍫 Hot weather causes global chocolate prices to soar.

🚜 American farming becomes more consolidated.

🐷 Pork is losing its lustre in the US.

🛵 Food delivery is streamlining in Europe and the US.

🍽️ Algae is now being used in restaurants…

CLIMATE
COCOA PRICES SKYROCKET

The price of cocoa has surged to an all-time high, surpassing a 46-year-old record, while New York cocoa futures increased to $5,880 per ton.

Crippling droughts, pests and disease in Ghana and the Ivory Coast - the world’s largest producers of cocoa - are mostly responsible for the chocolate crisis that has persisted even past Valentine’s Day.

El Niño - a weather phenomenon responsible for irregular rain patterns - has also worsened the situation.

ZOOMING OUT: While you shouldn’t worry about your Easter chocolate bunnies (as they’re already packed), many producers have warned that higher costs - especially for dark chocolate - will be passed on to the consumer in the long term.

POLICY
SMALL VS. BIG FARMING

A new census report has shown that the number of farms in the US has declined by 6.9% over the past decade.

On top of that, the largest food producers in the US made up 42% of all farmed-goods sales despite owning fewer than 1% of all farms. 

So, while the bigger companies don’t have as many farms as independent landowners, the sizes of their farms are far greater.

In fact, as the report noted, they’re buying land from smaller producers who are less financially equipped to weather recent economic challenges associated with climate change.

ZOOMING OUT: To policymakers, this should be a wake up call to provide opportunities for small farmers looking to adopt sustainable agricultural practices amidst more unpredictable weather.

But until that happens, the big players will likely continue to eat up American land.

SUPPLY CHAIN
PORK FALLS SHORT

A report has shown that demand for pork has hit its lowest levels since 1998. Suppliers, both large and small, are starting to feel the pain.

Last year, farmers lost $30 on every hog. And if young consumers don’t buy into the pork hype, annual consumption could fall by 2.2 pounds per person over the next 10 years.

Tyson Foods - America’s largest pork producer - is doing everything to attract more consumers, from producing ready-made pork steaks to investing $355 million into a bacon factory.

ZOOMING OUT: Pig farmers are hoping that inflated beef prices will create more pork eaters. But, given ethical and environmental concerns over pig slaughter, critics question the need to increase demand for the $50 billion industry.

BUSINESS
FOOD DELIVERY’S ROUGH PATCH

Rising costs and aggressive competition in the food delivery space has pushed some food delivery companies to lay off hundreds of employees. Here’s the list so far:

• Grocery delivery service - Instacart - has let go of 250 employees since the start of 2024.

• Alcohol delivery platform - Drizly - will be cutting 150 people.

• Restaurant software company - Toast - will be firing 550 people by the end of this year.

Of course, many companies have also utilised HUGE advancements in AI to ruthlessly cut costs and increase efficiency before a potential recession.

ZOOMING OUT: Food companies everywhere have done very well this past financial quarter, in part, due to raising prices. But you can only raise prices so much. And if the option is to protect either the bottom line or employees, you know which is more likely.

THE BRIGHT SIDE
ALGAE OIL IS THE “IT” GIRL

When we think of algae, we usually picture vast swathes of green floating on water and suffocating sea life. Little did I know, though, that microalgae are INCREDIBLY healthy for you.

The team at Algae Cooking Club (“the ACC”) has known this for quite some time and has started making a cooking oil out of it.

They add microalgae to a special tank - together with yeast and sugar - and let it ferment for three days. Then, the algae are taken out of the tank and squeezed like olive pulp for olive oil!

The result? A cooking oil that is packed with vitamins and anti-inflammatory omega-9 fatty acids AND that is even being used by three-Michelin-star chefs in NYC.

What’s even better is that algae oil production uses a 10th of the land and water that vegetable oil does and has half the carbon footprint of olive oil. Food Jungle approved ✅ 

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…Just kidding. I love you anyway 😍 

BEFORE YOU GO…

• Uber cuts “inappropriate” joke about peanut allergies in its most recent super bowl commercial.

• UN report finds that, of the 700,000 hungriest people in the world, four in five inhabit the Gaza strip.

• U.S. restaurant sales could surpass the 13-digit threshold for the first time in 2024.

• Kraft Heinz records net sales decrease of 7.1%, compared to the same time last year.

• A coalition of North American labour unions, has nominated three candidates for board seats at Starbucks.

• After years of requests, Google now lists “Palestinian” as a restaurant category, instead of just “Middle Eastern”.

• Oatly reports a 4.6% revenue increase in the fourth financial quarter.

TAKE A BREAK

If you’re interested in some quality ORIGINAL journalism on what’s been going on in the food industry, look no further than Green Queen.

Founded in 2011, by Sonalie Figueiras, the team looks to analyse and discuss the latest news in food, from cultivated meat to food waste. Thoroughly recommend! 🤩