FAO and Canada address Ukraine grain storage deficit, US$30M raised for Japanese food tech deal

FAO and Canada address Ukraine grain storage deficit, US$30M raised for Japanese food tech deal

05 Aug 2022 — This week in industry news, the Food and Agriculture Organization of the United Nations (FAO) launched a US$40 million Canada-funded project to address grain storage shortages in Ukraine. PepsiCo and Celsius announced a long-term distribution agreement, and vertical farming start-up Spread raised US$30 million to accelerate the Japanese food tech scene. Meanwhile, Darling Ingredients completed the acquisition of FASA Group. In brief: Food crop highlights 
The FAO initiative will allow storage of an additional 2.4 million metric tons of grain between 2022-2023, along with related technical support and equipment. This complements the support of US$17 million recently provided by the Government of Japan to cover 1 million metric tons of grain storage. This season, with the harvest of winter crops starting in July and spring crops beginning later in the year, Ukraine expects to harvest up to 51.1 million metric tons of cereal. Out of a total storage capacity of 75 million metric tons, 14% of storage facilities are damaged or destroyed, 10% are located in Russian-occupied territories, and around 30% remain filled with 22 million metric tons of last year’s harvest awaiting export – according to the Government of Ukraine.Aqua Carpatica’s premium sparkling natural mineral water is nitrate- and sodium-free and provides natural electrolytes.In brief: Business moves
PepsiCo and Celsius Holdings, the maker of global fitness energy drink Celsius, have revealed a long-term strategic distribution arrangement. PepsiCo will invest in Celsius to support its growth plan and nominate a director to serve on Celsius’ Board. The long-term US distribution agreement became effective at the start of this month and includes retail and foodservice channels. As part of the transaction, PepsiCo will make a net cash investment of US$550 million to Celsius in exchange for convertible preferred stock. PepsiCo has also entered into a strategic agreement with premium Romanian spring water Aqua Carpatica under which PepsiCo will own a 20% equity stake in Aqua Carpatica. Under the agreement, PepsiCo will have the right to distribute the spring water in Romania and Poland with opportunities to expand into other markets, including the US. In brief: Plant-based highlights 
Japan-based start-up Spread has secured approximately US$30 million in series A round from multiple business companies and angel investors in the largest-ever single fundraising in the Japanese food-tech scene. Starting from developing new technologies for the world’s largest automated vertical farm, Techno Farm Fukuroi *1, Spread will also invest in marketing its sustainable vegetable brand Vegetus, R&D in the new fields of strawberry and alternative meat, and global business development.Shanghai-based alternative protein start-up 70/30 Food Tech is set to launch its ready meal products using its in-house biomass fermented protein. This protein, the key component developed by the R&D team of the start-up, serves as a meat replacement that mimics the texture and nutrition profile of shredded chicken. The company will be the first to launch a mycelium protein product onto the Chinese market. MeaTech 3D became Steakholder Foods Ltd. Beginning in 2019, the company developed the technology and scientific processes to produce whole cuts of meat sustainably using animal cell cultivation and 3D bioprinting. In brief: Acquisitions70/30 Food Tech is set to launch its ready meal products using its in-house biomass fermented protein.
Darling Ingredients has completed the acquisition of Brazil’s largest independent rendering company, FASA Group. The company first announced the acquisition in May 2022 for a purchase price of approximately US$542.6 million, plus or minus various closing adjustments and a contingent payment based on future earnings growth. As part of the transaction, Darling Ingredients has acquired 14 plants that process more than 1.3 million metric tons annually, with an additional two plants under construction.   Dairy Farmers of America (DFA) has acquired two extended shelf life processing facilities from SmithFoods. The processing plants, located in Richmond, Ind., and Pacific, Mo., (US) produce a variety of extended shelf life dairy and non-dairy beverages, ice cream and shake mixes for retail and foodservice customers. The facilities will become part of the DFA Dairy Brands division and operate as Richmond Beverage Solutions and Pacific Dairy Solutions.Del Monte Foods has completed the acquisition of Kitchen Basics, a line of ready-to-use stocks and broths from McCormick & Company. Kitchen Basics will join Del Monte’s brand portfolio as the company expands its national retail presence in the category. The purchase of the brand supports the company’s overall growth strategy, as Del Monte Foods focuses on innovation, renovation and customization of its brand portfolio and expands the geographic reach of its stocks and broths business. In brief: Appointments & retirements
Defra has announced that John Shropshire will chair the Independent Review Into Labour Shortages in the Food Supply Chain. Shropshire is an industry veteran who stepped down from his role as CEO of major horticulture producer G’s Fresh Group last year. He will be supported by an expert panel that draws in expertise from the supply chain’s farming, fisheries, processing and manufacturing aspects.In brief: Other highlights
British pork is heading to Chile this month to fulfill the first commercial order since market access was granted earlier this year. The UK’s largest pork processor, Cranswick, is preparing the first shipments, which will leave its plant in Preston, Hull, early next week. It follows a new agreement announced in March, which granted market access to 27 pork processing sites in the UK, enabling the first-ever exports of pork products to this new and potentially lucrative market. The Agriculture and Horticulture Development Board estimates market access could be worth up to £20 million (US$24 million) over the first five years of trade. By Elizabeth Green

To contact our editorial team please email us at
[email protected]

If you found this article valuable, you may wish to receive our newsletters.
Subscribe now to receive the latest news directly into your inbox.
.

Explained: Why Russia and Japan never officially declared peace after WWII

Explained: Why Russia and Japan never officially declared peace after WWII

On September 2, 1945, the allied forces accepted Japan’s formal surrender, marking the end of the most destructive global conflict of all time — World War II. But nearly eight decades later, Japan and Russia technically remain at war.
The two countries are yet to formally sign a peace treaty to end World War II hostilities. At the heart of the conflict is a group of tiny islands located just off Japan’s northernmost island of Hokkaido.
🗞️ Subscribe Now: Get Express Premium to access the best Election reporting and analysis 🗞️
Now peace talks between the two countries have hit yet another stumbling block — Russia’s invasion of Ukraine. After Japan joined the West in imposing hefty sanctions on Moscow, the Russian foreign ministry announced that it was withdrawing from treaty discussions, accusing Japan of “consciously choosing an anti-Russian course”.
Moscow further announced that it was halting all joint-economic programs between the two countries.

Why has Moscow halted peace talks?
After Russia invaded Ukraine, Japan announced that it was revoking ‘most-favoured nation’ (MFN) trade status as part of its economic sanctions against the country. MFN status is a key principle of the World Trade Organisation (WTO). It ensures non-discriminatory trade between all partner countries of the WTO.
Japan Prime Minister Fumio Kishida’s decision came soon after similar announcements were made by the US, the EU, and the United Kingdom. But since Tokyo and Moscow aren’t major trading partners, the move is unlikely to have too much of an adverse impact on Russia, according to a report by Japan Times.

Kishida further announced that Japan was expanding the scope of asset freezes against Russia and banning the imports of certain products, Reuters reported. Apart from a wide range of luxury products, Japan has banned the export of about 300 semiconductors, computers and communications devices to Russia and Belarus, according to Japan Times.
Soon after Japan’s announcement, Russia asserted that it would not be continuing talks with Japan. “The Russian side, in the current conditions, does not intend to continue talks with Japan on the peace treaty,” the Russian Foreign Ministry said in a statement. It said this was “due to the impossibility of discussing the core document on bilateral relations with a country that has taken an openly hostile position and is striving to cause harm to the interests of our country”.
Russia called off several joint-economic programs and ended a visa-free regime that allowed Japanese people to visit the disputed Kuril islands that were claimed by the Soviet Union towards the fag end of World War II, AFP reported.
Why haven’t Japan and Russia declared peace yet?
Japan and Russia have had a complicated relationship for over a century. But one of the lowest points in Russia-Japan relations played out during the final days of the Second World War, right before Japan’s Emperor Hirohito announced his country’s surrender.

The Soviet Union declared war on Japan and seized a group of islands located near the coast of Hokkaido. All 17,000 Japanese residents were expelled at the time. The islands — known as the southern Kurils in Russia and the Northern Territories in Japan — are at the centre of an ongoing standoff between the two countries.
Since then, while Russia insists that the islands fall under its jurisdiction, Japan maintains that they are an inherent part of its territory and are presently under illegal occupation. The territorial dispute has caused deep rifts between the countries and has kept them from finalising a peace agreement.

After WWII, the Soviet Union refused to sign the formal Treaty of Peace with Japan. Instead, in 1956, the two countries signed a joint declaration “that would technically “end the state of war”. The declaration included an agreement to sign a peace treaty in the future. But this is yet to be achieved.
Why do these islands matter?
Apart from being home to rich fishing grounds, the islands are significant from a strategic perspective. It is here that a large chunk of Russia’s pacific fleet is docked. In fact, over the last few years, Russia has been increasing its military presence on the islands.
In 2016, Russian anti-ship and missile defence systems were stationed here, according to a report by ABC. It has also deployed fighter jets to the islands, much to the ire of Japan’s Foreign Affairs ministry.
 

Have Japan and Russia tried to negotiate?
Yes, several times. Between 2012 and 2020, leaders of the two countries have held 25 meetings, according to a report by Bloomberg.
Things were starting to look up for Japan in 2018 when Russian President Vladimir Putin and Japan’s former Prime Minister Shinzo Abe agreed that their negotiations should be based on the joint declaration of 1956, which called for the transfer of two of the four islands to Japan. But Russia said Tokyo would first have to acknowledge its sovereignty over the islands.
Then in 2020, Russia amended its constitution, making it illegal to hand over any of its territories.

!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘444470064056909’);
fbq(‘track’, ‘PageView’);
.

House panel reccos on aviation make sense; govt should adopt them

House panel reccos on aviation make sense; govt should adopt them

Implementation of the Parliamentary Standing Committee on Transport, Tourism and Culture’s recommendations that tabled its report in Parliament earlier this week could help solve the problem of rising domestic air ticket prices and offer seamless connectivity at airports across the country.

The report was tabled at a time when oil prices are heading northwards thanks to the Ukraine crisis and it is widely expected that domestic airlines will raise fares thus passing on some of the burden to domestic flyers to off-set some of the increase in their operational costs.

In fact, Ronojoy Dutta, whole time director and chief executive officer of IndiGo, issued a statement on Wednesday saying that over the past few weeks, crude oil prices have soared to a seven-year high nearing $140 per barrel due to the ongoing conflict in Europe. “This has resulted in over 50% aviation turbine fuel price hike from January 2022 till date, including the 18% hike on Wednesday,” he added.

Fortunately for flyers, no domestic airline has announced a hike in domestic fares, but Dutta’s statement gives enough of a hint about the cost pressures that the airlines are facing.

With the Ukraine war showing no signs of getting over in a hurry, implementing the Committee’s report will ensure that airlines do not use the pretext of rising oil prices to hike fares exorbitantly at a time when the domestic aviation market is bouncing back and is expected to reach its pre-covid daily passenger loads of about 400,000 fliers a day.

In a well thought out and argued report, the Committee maintains that while it is justifiable that the private airline operators should be given a free hand to fix the airfares as they are governed by the competition it also draws the attention of the ministry of civil aviation to the provision in the Aircraft Rules, 1937, which  specifically mention that “the fares should be reasonable and should maintain reasonable profit”.

Further, the Committee also adds that a balance must be maintained between airlines’ commercial interests and the flyers’ interests. It states in its report that passengers should not be fleeced in the garb of commercialization and therefore, recommends that the ministry should maintain a close watch on the fare pricing by airlines. It also recommends that at least for the same sector, route, and duration of the flight, the ministry should issue guidelines to all the private airlines to ensure fares that are similar or with the least variations.

The Committee also recommends that fixing of different fares for selection of seats in the same flight is “arbitrary and unjustifiable”. Hence, it adds that all the seats on a flight should have the same fare. Private airlines charge a premium for some seats like a passenger flying on the first row of IndiGo or SpiceJet has to pay extra over and above the cost of the air ticket.

However, it must be highlighted that these are recommendations by the Committee and the government is not bound to act on them and implement them. But these recommendations will act as a signpost for the government about developing a political consensus on policy because opposition members are also on parliamentary committees.

Moving away from airlines, the Committee also recommends that airports should have adequate connectivity with roads and railways to ensure the optimum utilization of airports. The Committee emphasizes the urgent need to ensure that proper coordination is achieved between the concerned ministries/departments, to connect airports with all other means of transport such as roads, metros and railways so that tourists/flyers reach their destinations from the airports in a smooth and safe manner. Further, the Committee is also of the opinion that the ministry should collaborate with the state governments and other stakeholders to ensure that land is allocated within a specific time frame for ensuring adequate road and rail connectivity to the airports.

 

Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!

Topics

.

Explained: Why Ukraine gave up its nuclear arsenal

Explained: Why Ukraine gave up its nuclear arsenal

On March 1, Russia’s foreign minister Sergey Lavrov told the Conference of Disarmament in Geneva (which he attended virtually due to restrictions on air space) that “the threat that the (Volodymyr) Zelenskyy regime (in Ukraine) poses to neighbouring countries and international security in general have increased significantly after the Kyiv authorities started dangerous games involving plans to obtain their own nuclear weapons”.
🗞️ Subscribe Now: Get Express Premium to access the best Election reporting and analysis 🗞️
From the beginning, Russia has sought to justify its invasion of Ukraine on grounds of the alleged nuclear threat from its smaller neighbour to the west. Lavrov said to the conference that the “irresponsible” statements had to be taken seriously because “Ukraine possesses Soviet nuclear technology and means of delivering these weapons”.
And as a “responsible member” of the international community, he said, Russia “is committed to its non-proliferation pledge, and is taking every necessary measure to prevent the emergence of nuclear weapons and related technology in Ukraine”.
In Ukraine, the nuclear question is playing out very differently. Under an international agreement, and supervised by Russia and the United States, Ukraine had de-nuclearised completely between 1996 and 2001. Now, with invading Russian forces inside its borders, many Ukrainians are wondering whether it had been a mistake to de-nuclearise, and whether having nuclear weapons could have worked to deter Russia’s aggression against their country.

This is based on the arguable underlying assumption that countries that possess nuclear weapons rarely go to war against each other, deterred by the prospect of mutually assured destruction. Ukraine’s decision to give up nuclear weapons followed three years of national deliberations and with the US and Russia, and hefty security assurances by the three original Non-proliferation Treaty (NPT) powers — the US, Russia, and UK — and by France and China, too. This was buttressed by promises of non-expansion by NATO to assuage Russian concerns.
For more than two decades, Ukraine was seen as a model of non-proliferation, and an example of an ideal NPT signatory, at a time when India and Pakistan went nuclear, and the A Q Khan proliferation network put Pakistan at the centre of the scandal.

At the end of the Cold War, Ukraine’s choices
After the fall of the Berlin Wall in 1989, Ukraine set out on the path to independence from the crumbling Soviet Union. Its 1990 Declaration of Sovereignty, passed a year before the USSR broke up, contained an explicit political declaration that it wanted to be a non-nuclear, nuclear weapons-free state.
The Ukrainian republic, one of the 15 in the erstwhile USSR, was at the time just emerging from the Chernobyl disaster (1986). The command and control of the nuclear weapons on Ukrainian soil was in Moscow. Ukrainian leaders of the time feared this could place restrictions on their freedom.
After the break-up of the Soviet Union, however, the mood changed in Ukraine. It now believed that giving up the nukes was no longer necessary for its freedom. At the time, Ukraine had 176 intercontinental ballistic missiles (ICBMs), of which 130 were liquid fuel SS-19s, and 46 were solid fuel SS-24s. In addition, it had 44 cruise missile-armed strategic bombers. Its warhead inventory was nearly 2,000 — in addition, it had 2,600 tactical nuclear weapons.

But the question then turned to who owned these weapons — Russia, as the main successor state of the Soviet Union, or Ukraine or Belarus or Kazakhstan, where this former Soviet arsenal was stationed. Their deterrence value was also in question, given the long range of the ICBMs, and the knowhow and the finances that would be needed to maintain and replace the arsenal at end of their life.
Retaining the weapons would additionally mean that Ukraine would be a nuclear state outside the NPT. (Other than the P5 countries, other signatories have to be non-nuclear states, or must give up nuclear weapons). Ukraine, which desired to be part of Europe, did not want to embark on its new journey with sanctions and isolation on the continent.
Russian President Vladimir Putin, right, and Ukrainian President Volodymyr Zelenskyy arrive for a working session at the Elysee Palace. (AP/File)
The assurance of 1994 in Budapest
The Budapest Memorandum on Security Assurance, signed on December 5, 1994, sealed Ukraine’s membership in the NPT and its status as a non-nuclear country in return for security assurances. The signatories were the presidents of Ukraine (Leonid Kuchma), the US (Bill Clinton), Russia (Boris Yeltsin), and the British Prime Minister (John Major). Later, China and France, who became NPT members in 1992, also became signatories.
The Budapest Memorandum came after the Lisbon Protocol of 1992, which made Ukraine, Belarus, and Kazakhstan parties to the first Strategic Arms Reduction Treaty (START I), a 1991 treaty signed by the US and the Soviet Union to reduce the number of nuclear weapons on each side.
The Budapest document committed the powers to “respect the independence and sovereignty and the existing borders of Ukraine” and the “obligation to refrain from the threat or use of force against the territorial integrity or political independence of Ukraine”. It also committed them to not using their weapons against Ukraine “except in self-defence or otherwise in accordance with the Charter of the United Nations”.
The powers also said they would “seek immediate UNSC action to provide assistance to Ukraine” if it was threatened or attacked with nuclear weapons, and would consult in the event such a situation arose. However, it has been pointed out that this was an assurance, but not a security guarantee.

Ukraine won a political victory by the implicit recognition that it was the owner of the nuclear weapons on its soil. In 1996, within two years of the signing of the Budapest Memorandum, Ukraine handed over all the nuclear weapons on its soil to Russia. Ukraine also managed to strike tough bargains — Russia compensated its neighbour with a payout of 1 billion dollars, and the US paid a massive sum to buy Ukraine’s stockpile of enriched uranium.
Although Ukraine continued to have concerns that Russia was not fully reconciled to the new international boundary, the agreement held for over two decades, even as Russia expressed concerns over NATO’s expansion. Vladimir Putin, who succeeded Boris Yeltsin as president at the end of 1999, first expressed this concern at the Munich Security Conference in 2007, accusing NATO of pushing the envelope to incorporate former states and satellites of the Soviet Union and lighting into the US, accusing it of considering itself above international law and triggering a new arms race through its unilateral actions.
Russian Army military vehicles drive along a street, after Russian President Vladimir Putin authorized a military operation in eastern Ukraine, in the town of Armyansk, Crimea. (Reuters)
From annexation of Crimea to invasion of Ukraine
Russia’s annexation of Crimea in 2014 was a clear violation of the Budapest Agreement, and the first big test of its security assurance to Ukraine. Despite being a signatory to the agreement, Moscow did not participate in the consultations, and vetoed a resolution against the annexation at the United Nations Security Council. The US imposed some sanctions on Russia, but Europe continued to do business with him.
In the US Congress, a discussion in the Senate Committee of Foreign Relations in 2016 reflected the escalatory nature of US and Russian responses to each other at the time. Victoria Nuland, Assistant Secretary in the State Department for Europe and Eurasian Affairs, described in detail the steps the US had taken in response to Russia:
“To help Ukraine better monitor and secure its borders, deploy its forces more safely and effectively, and defend its sovereignty and territorial integrity, the United States has committed over $600 million in security assistance. We have trained over 1,700 Ukrainian conventional forces and National Guard personnel and 120 Special Operations Forces (SOF). We have provided counter-artillery and counter-mortar radars, over 3000 secure radios, 130 Humvees, over 100 armoured civilian SUVs, and thousands of medical kits to help Ukrainian troops successfully resist advances and save lives.

“To counter the threat posed by Russian aggression and deter any military moves against NATO territory, over the past 2 years the United States and our NATO allies have maintained a persistent rotational military presence on land, sea, and air all along NATO’s eastern edge: the Baltic states, Poland, Romania, Bulgaria. As we look towards the NATO Summit in Warsaw this coming July, allies will institutionalize a more sustained approach to deterrence, including by enhancing forward presence in the East to reduce response times to any aggression. To support this commitment,the President has requested $3.4 billion to fund the European Reassurance Initiative. With your support, these funds will be used to deploy an additional rotational armored brigade combat team to Central and Eastern Europe, and for pre-positioning of combat equipment as well as additional trainers and exercises in Europe.”
To President Putin, each element of this response was geared towards an encirclement of Russia, and represented a threat to its security. President Zelenskyy’s statements on arming his country with nuclear weapons was “crossing a red line”, Senator Andrei A Klimov, head of the ruling United Russia party’s foreign affairs committee, told The Indian Express last week.
Now Putin has put Russia’s nuclear forces on “special alert”, the move justified as a response to “aggressive statements” by the West. On Tuesday, as Russia’s nuclear submarines participated in drills, even Russia would be hoping that Putin would not go as far to use any nuclear weapons.
Newsletter | Click to get the day’s best explainers in your inbox

!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘444470064056909’);
fbq(‘track’, ‘PageView’);
.