Compost and Corruption

Welcome back, Food Junglers. As one of the largest potential supermarket mergers in the US remains uncertain, corruption plagues humanitarian organisations around the world. Let’s dig in.

This week:

🚱 Drought in Sicily goes from bad to worse.

🤑 A corruption probe is opened in Sudan. 

🛒 US supermarket drama continues in federal court.

🌾 Crop prices are worrying farmers in the US.

🐷 A Japanese veterinarian has found a way to re-use food waste…

CLIMATE
YET ANOTHER DROUGHT STORY

This summer, drought in Sicily has gotten so extreme that some residents of the city of Caltanissetta have been without running water for two months, according to a new Reuters report.

Thousands of Sicilians are now relying on water from privately-owned tanker trucks, with owners selling water at highly inflated prices.

Water is rationed in dozens of central Sicilian towns, leaving some families and restaurants paying around €300 per month, on average.

ZOOMING OUT: After four years of rainfall significantly below the historical average, the Italian government declared a state of emergency in May to manage resources until the autumn rainy season. Worryingly, though, things are much worse than initially expected.

POLICY
CORRUPTION PROBE IN SUDAN

The UN World Food Programme (“WFP”) has opened an investigation into two of its top officials in Sudan over allegations, including fraud and concealing information from donors about its ability to deliver food aid to civilians.

On top of that, the WFP is investigating whether some of its staff sought to hide the alleged role of Sudan’s army in obstructing aid amidst a 16-month war with a rival paramilitary group for control of the country.

At the moment, the WFP, 2020 Nobel peace prize winner, is in crisis management and assures that it is doing everything possible to resolve the matter.

ZOOMING OUT: For the Sudanese, however, the crisis is worsening. Since the war started in April 2023, more than 10 million people have been driven from their homes, worsening hunger among children and accelerating the spread of cholera.

BUSINESS
A MERGER IN HISTORY

Supermarket giants, Kroger and Albertsons, face off against the Federal Trade Commission (“FTC”) in an Oregon court to decide whether what could be the largest supermarket merger in US history will go through.

The Kroger-Albertsons team defended the $24.6 billion deal, arguing that it would bolster their leverage with suppliers and improve competition against major retailers like Costco, Amazon, and Walmart.

On the other hand, the FTC argues that the merger would lead to more price inflation and would erode the bargaining power of trade unions. 

ZOOMING OUT: Although we won’t get a decision on the merger until later this month, some new information, harmful to the Kroger-Albertsons case, could give us a glimpse into the future.

For example, a Kroger executive has already testified that the grocery chain hiked the prices of milk and eggs beyond the added costs of inflation.

SUPPLY CHAIN
CROP PRICES WORRY FARMERS

After years of drought, abundant rainfall in the US has led to a recovery in soy and corn supplies, causing grain prices to plummet and placing added pressure on American farmers.

While crops are becoming cheaper, the prices of farm essentials, like seeds and fertiliser, have continued to soar in the wake of the Russia-Ukraine war.

As a result, some farmers are using less fungicide and fertiliser - accepting more issues with pests and lower crop yields - or delaying capital investments in hopes of increasing grain prices in the short term.

ZOOMING OUT: With lower commodity prices no longer offsetting higher production expenses, farmers will have to come up with some radical solutions to get back on track with their finances.

And it also doesn’t seem as though the federal government is doing much to help smaller, independent farmers stay afloat either.

THE BRIGHT SIDE
FERMENTED PIG FOOD

Having come across this exciting fermentation project from Japan, I really wanted to share it with you all!

Koichi Takahashi was a veterinarian when, in 1998, he decided to start his own company that would transform food waste into high-quality pig feed.

His company, the Japan Food Ecology Centre, ferments any leftover human food and slowly creates a liquified product perfect for pigs. The process, Takahashi says, generates 70% less greenhouse gas emissions than normal pig-feed production.

Takahashi’s facility processes about 40 tonnes of food waste per day for fermentation, the byproduct of which is even used to make a nutrient-rich agricultural fertiliser. So, considering that Japan throws away 28.4 million tonnes of food every year, I think this is a fantastic idea.

The most important thing is that he is dispelling the notion that environmental efforts aren’t profitable or that recycling is too expensive. Food Jungle approved ✅ 

BEFORE YOU GO…

• Red Lobster has tapped former chief executive of Asian restaurant chain - P.F. Chang's - to run the struggling seafood restaurant brand.

• John R. Tyson is out as Chief Financial Officer at Tyson Foods.

• U.S. labour board prosecutors have determined that Chipotle may have refused to give raises to Michigan-based workers after they unionised.

• Salmon will soon have free passage along the Klamath River in California as the largest dam removal project in US history nears completion.

• The number of violent incidents linked to water resources has increased dramatically in recent years, according to a new report.

• The UK government will invest £15 million to accelerate the commercialisation of cultivated, plant-based, and fermentation-made foods.

• A listeria outbreak linked to Boar's Head deli meat products has become America's largest since 2011.

•  The USDA will now be urging companies to back up environment-related marketing claims with data and academic studies.

TAKE A BREAK

Hi there everyone! It’s our pleasure to introduce another newsletter in the food space - BETTER BIOECONOMY - from a food technology enthusiast, Eshan Samaranayake.  

Like the team at Food Jungle, Eshan is doing his absolute best to advertise those who are making food healthier, cleaner, more sustainable, more animal-friendly AND accessible to all.

So, if you are interested in reading more on food tech, go check it out! Food Jungle approved ✅