School Lunches and Shoes

Welcome back Food Junglers! It’s earnings season and some companies have fared worse than others. In other news, the US is taking its health more seriously. Let’s dig in.

This week:

🥑 Farmers in Mexico take on avocado cartels.

🥛 The US is starting to take school lunches very seriously.

♻️ Nestlé gets confronted by activist shareholders.

🥩 American beef gets rejected in Colombia.

👟 A mayonnaise brand makes a shoe in Canada.

CLIMATE
MEXICAN FARMERS REBEL

As a result of frustration with commercial avocado farming in Mexico, last week several Mexican farmers banded together to rip out illegal water pumps and breach unlicensed irrigation holding ponds.

Climate change, combined with drug cartel-sponsored commercial avocado farms, has meant that the biodiverse state of Michoacan has been rapidly running out of water to support the crop yields of local farmers. 

Regions like Lake Cuitezo - one of the largest freshwater lakes in Mexico - or Lake Patzcuaro have almost completely disappeared from drought and overuse. As a result, police patrols have gotten involved to mitigate a potentially violent conflict.

ZOOMING OUT: While reservoirs have rebounded in the past, local Mexican farmers now express fear that this time might be fatal. Combined with the El Niño weather phenomenon, further conflict may be imminent.

POLICY
HEALTHY SCHOOLS IN THE US

The US Agriculture Department (“USDA”) has announced new nutritional guidelines, in which schools will have to include less sugar and salt in state-funded meals.

Coming into effect on July 1st, schools will need to follow the national recommendation that no more than 10% of daily calories come from added sugars.

Schools will also need to reduce sodium in lunches by 15% from current levels and in breakfast by 10% by the 2027-28 academic year.

ZOOMING OUT: Chocolate milk, though, will still be allowed in school meals as the dairy industry lobby’s efforts have paid off.

Understandably, many see this as a missed opportunity to regulate the dairy industry which, most assuredly, will use alternative sweeteners in the sweet milks they provide to American children.

BUSINESS
NESTLÉ GETS CONFRONTED

During the latest annual general meeting, shareholders of the world’s biggest food company - Nestlé - rejected a resolution to reduce reliance on selling unhealthy products.

Initially proposed by Nestlé’s largest activist shareholder, ShareAction, the resolution warned that reputational damage and regulatory backlash may occur if concerns for public health are not recognised.

With 87.88% of shareholders rejecting the resolution, the president of the company responded by saying that this was simply not in Nestlé’s “best interest”.

ZOOMING OUT: Last year, Nestlé pledged to increase “more nutritious” products sales by 50% by 2030. But, given a lacklustre financial performance recently, we can make an educated guess as to where the food giant’s loyalties really lie.

SUPPLY CHAIN
INTERNATIONAL FLU BACKLASH

Colombia has become the first country in the world to restrict the import of American beef and beef products in light of recent bird flu outbreaks amongst dairy cows in the US.

While no beef cattle have tested positive for bird flu, Colombian government officials are on high alert after bird flu was spotted in dairy cattle in eight states across the US.

And, although Colombia imports a relatively small amount of beef from the US, other trading partners from around the world are beginning to ask more questions and demand proof of safety.

ZOOMING OUT: Although the USDA announced that beef products are safe to consume, the fact the Biden administration is requiring all dairy cattle, moving between states, to be tested for bird flu does give reason to worry.

THE BRIGHT SIDE
MAYONNAISE SHOES

Now I don’t usually advertise products or initiatives made by huge brands, but in this case I think I’ll make a justifiable exception.

In an effort to shine the spotlight on food waste, the Canadian division of the world-renowned mayonnaise brand - Hellmann’s - has decided to create a limited-edition sports shoe made entirely from wasted food.

The “1352: Refreshed Sneakers” are made from used corn, mushrooms, apples, and grapes and were designed by the Italian brand ID.EIGHT, a company that focuses on sustainable fashion.

The name itself, 1352, actually represents the monetary value that the average Canadian household wastes in food each year - $1,352 - which I thought was a nice touch.

Anyway, with food inflation still struggling to be controlled and climate action becoming increasingly more relevant, this is a great way to bring awareness to the pressing issue of food waste. Food Jungle approved ✅ 

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BEFORE YOU GO…

• PepsiCo has reported quarterly earnings and revenue that beat analysts’ expectations, despite weaker U.S. demand.

• Chipotle has opened its first Middle East location in Kuwait City.

• Grocery giants, Kroger and Albertsons, have agreed to sell more than 160 additional stores in a divestiture package in a bid to appease competition regulators and close their long-pending merger.

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! 🤩