The digital food management market is set to grow nearly 15% year-over-year by 2022, with the food safety segment being the largest contributor to market growth, according to a new report from global technology research and consulting firm Technavio.
NEW YORK — According to the “Digital Food Management Solutions Market by Application and Geography — Forecast and Analysis 2022-2026” report from global technology research and consulting firm Technavio, the digital food management market is expected to experience a year-over-year growth rate of 14.98. % in 2022, with a compound annual growth rate of 15.55%, or $2.39 billion, over the forecast period. The food safety segment will be the largest contributor to market growth during the forecast period, according to the report.
The report is segmented by application (food safety, marketing, and others) and geography (North America, Europe, APAC, South America, and Middle East & Africa).
Digital food safety (DFS) is the concept of converting and converging manual food safety practices into a centralized software solution. The growth of the food safety market segment is attributed to factors such as the growing importance and strictness of food safety standards, an increase in government agency involvement in food safety through regulation, and the rising demand for analytical tools in the food and beverage industry.
GEOGRAPHICAL MARKET ANALYSIS. North America will provide maximum growth opportunities in the digital food management solutions market during the forecast period, the report said. According to Technavio’s research, the region will contribute 46% of the global market growth.
SELLER INSIGHT. According to the report, the market for digital food management solutions is fragmented. Suppliers adopt growth strategies such as acquiring regional or local suppliers to compete in the market. The report analyzes the competitive landscape of the market and provides information on various market vendors.
KEY MARKET DRIVERS AND CHALLENGES. The growth of the food service industry is driving the growth of the market. Rapid urbanization has led to an increase in the disposable income of people worldwide, the report said. Hence, the demand for convenient and easy-to-prepare food products has increased.
Food service companies focus on maximizing profits, improving customer service and reducing costs. Using digital food management solutions helps improve efficiency and reduce food delivery mismanagement, Technavio says.
According to the report, rising operational costs will challenge the digital food management solutions market during the forecast period. Customers prefer online food vendors that offer higher discounts, Technavio reports. However, the rising costs of foodstuffs and ingredients are pushing up food prices. Thus, the unpredictability of food product pricing will negatively impact the profit margins of online on-demand food delivery service providers, the report said.
The September 15 virtual conference provided insight into how to build a resilient food future in Africa in the midst of a crisis.
BONN, Germany — Humanity is facing a climate emergency that is hitting Africa harder than anywhere else, even though the continent contributes just 4% of global greenhouse gas emissions. The war in Ukraine is causing food and fuel prices to rise dramatically, making it more difficult than ever for African countries to feed their citizens with food imports. But the crisis could also present an opportunity for Africa to radically transform its food systems, experts said at the GLF Africa 2022 Digital Conference.
The continent has a multitude of solutions to reclaim its food sovereignty, but these solutions need to be scaled up. More than 200 speakers called for investment in climate and biodiversity, equal access to land and shorter, greener value chains. This transformation can not only increase the resilience of communities and ecosystems, but can also mitigate the effects of climate change.
“Never before have we experienced so many global crises at once as we do now,” said Jochen Flasbarth, State Secretary at the German Federal Ministry for Economic Cooperation and Development (BMZ). “Today we not only need to take action against one of the worst global food crises ever, but we also need to make our food systems resilient to future crises. Let’s see this as an opportunity.”
Ineza Grace, coordinator of the Loss and Damage Youth Coalition, added: “The African youth generation has awakened and we are determined to do everything possible to build a prosperous Africa. To do this, we need African leaders who actively encourage investment in the agricultural sector. After all, farming is the coolest profession in the world. African agribusiness will be worth $1 trillion by 2030, and everyone needs to eat.”
Organized by the Global Landscapes Forum in conjunction with BMZ and several partners, the online event on September 15 brought together more than 8,300 registered participants from 122 countries, including entrepreneurs, scientists, youth activists, recovery practitioners and the highest levels of government. It reached more than 26 million people through social media.
With 31 sessions, the publication of five white papers, launches, a virtual tour, a job fair and creative exhibitions and performances, the conference provided insight into how to build a resilient food future in Africa ahead of the UN Climate Change Conference COP27 in Sharm El Sheik, Egypt.
Key recommendations from experts from across Africa included:
The support will help food banks and school meal programs overcome supply chain challenges and high food costs as they provide food to children and families in need.
WASHINGTON, D.C. — The United States Department of Agriculture (USDA) has announced it will provide nearly $2 billion in additional funding to food banks and school meal programs to purchase U.S.-grown foods. The support will help these organizations overcome supply chain challenges and high food costs while continuing to fulfill their mission of providing nutritious food to children and families in need.
The funds, provided through USDA’s Commodity Credit Corporation (CCC), will be used in three ways:
“Financing these initiatives is paramount in the fight against hunger and further demonstrates the Biden-Harris administration and USDA’s commitment to strengthening food and nutrition security,” said Agriculture Secretary Tom Vilsack. “We must ensure that Americans have access to safe, wholesome and affordable food for longevity and optimal health.”
The investment is part of the department’s wider commitment to strengthen the supply chain and make nutritious food more accessible to families.
“Food banks and schools are the backbone of our nutritional safety net, serving tens of millions of children and families,” said Stacy Dean, Deputy Undersecretary for Food, Nutrition and Consumer Services. “The Biden administration understands that supply chain disruptions and high food costs have created uncertainties for these critical partners, and we are committed to equipping them with the resources they need to keep communities nourished, strong and healthy.”
“These programs connect U.S. producers directly to food banks and schools, bolster our rural economies and help those most in need,” said Under Secretary of Marketing and Regulatory Programs Jenny Lester Moffitt. “As part of the Biden administration’s commitment to transform our nation’s food system, the USDA is committed to fostering partnerships between producers and food aid programs. By working together, farmers, food banks and schools can improve the food and nutrition security of our country.”
EMERGENCY SUPPLIERS. USDA will use $943 million to purchase USDA Foods for use by emergency food organizations in greater need.
USDA’s Agricultural Marketing Service and Food and Nutrition Service will work together to identify products most likely to be available for purchase and formulate those products to state agencies of the Emergency Food Assistance Program (TEFAP) for onward distribution to local agencies , mainly food banks.
USDA will open orders in 2023, with deliveries continuing through 2023 and 2024.
A percentage of the $943 million will support incidental costs incurred by local agencies for the storage and transportation of the USDA Foods. Funds will be allocated to government agencies in proportion to the amount of food ordered for local distribution, with all funds passed on to the local agencies.
USDA’s Agricultural Marketing Service and its Commodity Procurement Program annually purchase more than $3 billion in domestically produced and processed meats, poultry, fruits, vegetables, dairy, grains and oilseeds. These purchases of products, collectively referred to as USDA Foods, support U.S. agriculture by encouraging the consumption of household foods and provide safe, nutritious food for a variety of federal, state, and international nutritional aid programs. They are delivered to schools, food banks and households in communities across the country.
LFPA. LFPA supports states, territories and tribes to source food from historically disadvantaged producers, as well as local and regional producers to support emergency food aid. A $471.5 million allocation will be used for partnership agreements with states, tribes and territories to purchase locally available food grown in each state or within 400 miles of the delivery destination and distributed to meet the unique local needs of meet every community through emergency food programs, including food banks, schools and organizations that reach underprivileged communities.
SCHOOL MEAL PROGRAMS. An additional $471.5 million investment will be used for the third round of Supply Chain Assistance funds provided to states to support the purchase of U.S. food for their meal programs.
Supply Chain Assistance funding can be used by school districts to purchase unprocessed and minimally processed household foods, such as fresh fruit, milk, cheese, frozen vegetables, and ground beef. Each state will allocate the funds to schools based on student enrollment, with a minimum amount per district to ensure small schools are not left behind.
This assistance builds on the two rounds of Supply Chain Assistance funds totaling nearly $2 billion previously allocated by USDA in December 2021 and June 2022. These funds provide relief from lingering supply chain problems and improve quality and consistency. of school meals for children in communities experience disruptions.
According to Oghma Partners, from May to August, the market activity of the UK Food and Beverage M&A market declined compared to the same period last year.
Market activity in the UK Food and Beverage M&A market from May to August saw a 29% drop in deal volume compared to the same period last year, according to a report by corporate finance house Oghma Partners.
Oghma’s analysis recorded 22 deals for the period, with a corresponding total estimated deal value of approximately £270 million ($3.1 million) compared to £3.9 billion ($4.5 billion) in the prior year period, a decrease of more than 90%.
About 60% of the deals had an estimated value of £20 million ($22.8 million) or less.
Overseas buyers accounted for 36.4% of deal volume, which is in line with the five-year average of 33%, according to the report. Notable deals included the acquisition of Zafron Foods by Solina and the acquisition of Peter’s Yard by Lotus Bakeries.
Financial buyer activity declined significantly, accounting for 9.1% of total deal volume for the period.
Grocery/Confectionery was the most active category for the period, with the most notable deal being Premier Foods’ acquisition of The Spice Tailor, the company’s first acquisition since 2016.
Mark Lynch, partner at Oghma Partners, said: “To date, August 2022, we estimate the number of F&B deals in the UK in the period was 50 compared to 62 in the previous year, an overall 20% decrease in volume, a decline that accelerated in the second tertial.The more dramatic story is the 90% YTD deal value decline with a similar decline in Q1 and Q2.The decline in activity is similar to that seen in 2020, when the full impact of COVID on the deal activity was noted, however that year saw a strong recovery in the last four months of the year as the COVID challenges were overcome and business activity returned to normal.
“There were no major transactions, particularly in the first eight months of the current year. For example, in 2021 there were six deals with values ranging from £200m to £2bn, with an average deal size of this group at £1.1bn. We believe the decline in deal activity is due to a number of factors.”
The first of those factors is business uncertainty, Lynch said.
“The trading environment is difficult,” he said. “All food and beverage companies have experienced sharp price increases with more to follow in the coming months. Profitability is under pressure and the outlook is uncertain, deterring buyers and sellers alike.”
Debt availability and cost are another factor.
“It appears that liquidity is tightening, banks are less willing to lend, and the cost of debt is rising as governments seek to both fight inflation and fund expansive fiscal budgets,” Lynch said.
Finally, a changing risk appetite played a role in the decline.
“Declining risk appetite is seen in public markets through rising bond yields, a declining bond market and lower debt availability,” he said. “Buyers’ changing risk appetite is being noticed by rising thresholds and resulting lower valuations.”
The grants, awarded by the Washington State Department of Agriculture, will help small farms and food companies recover from the lingering economic impact of the COVID-19 pandemic.
OLYMPIA, Washington — The Washington State Department of Agriculture (WSDA) has awarded more than $16 million in grants to help small farms and food companies recover from the lingering economic impact of the COVID-19 pandemic. Legislators designed the Local Food System Infrastructure Grants to improve the strength and resilience of Washington’s food systems.
Applicants submitted proposals in record numbers, with applications totaling more than $148 million dollars — more than nine times the funding available.
“The remarkable interest in these grants demonstrates the clear need for investment in Washington’s local food system infrastructure,” said Laura Raymond, manager of the WSDA Regional Markets Program. “Each application presented an opportunity to build capacity and resilience into our food system; we really wish we could fund many more of these valuable activities.”
Applications were accepted from farmers, ranchers, food processors, food distributors and other small businesses and organizations that collect, process, manufacture, transport, store or sell foods grown, captured or farmed in Washington State for consumers in Washington.
Grant amounts ranged from $10,000 to $750,000. Beneficiaries of the award can use grant funds for costs to improve the local food system’s infrastructure after harvest and market access, such as equipment, facility improvements, supply chain coordination and market access, food safety improvements, human resources development and related operating costs .
The Washington State Legislature has committed funds from the federal U.S. Recovery Plan Act to improve local food system infrastructure, supply chains and market access for farms, food processors and food distributors. Legislators prioritized support for small businesses, including those of women and minorities.
“The COVID-19 pandemic is impacting small farms and food companies,” said Derek Sandison, WSDA director. “Rehabilitating and supporting small businesses involved in the local food supply system is essential to increase resilience and ensure adequate food availability to protect public health.”
For future grant opportunities, visit agr.wa.gov/grants. This grant program is part of WSDA’s Focus on Food Initiative, which ensures that safe, nutritious food is effectively produced and distributed throughout Washington.