Durian and Chinese Pork

24th June, 2024

Welcome back Food Junglers. I’m in Texas right now and it’s safe to say the heat is deadly. But that won’t stop me from telling you what’s been happening in our world of food. Let’s dig in.

This week:

🌊 California has to balance its water supplies.

🐖 China gets angry at the European Union for dumping pork.

🍎 A particular Southeast Asian fruit is turning a profit.

🤖 McDonald’s stops its A.I. experiment in the US.

🍫 I found another type of chocolate that’s made in Chicago

CLIMATE
CALIFORNIA’S BALANCING ACT

After a decade of drought, water has finally returned to California’s Central Valley, the area of the United States that produces the vast majority of the country’s fruits and vegetables.

But unfortunately, farmers from the region will only get 40% of the stored water they were supposed to receive because of a federal initiative to protect the migrating, and almost extinct, smelt fish populations. 

As much of California’s water is located in the north of the valley, it has to be pumped down south manually, threatening the smelts’ migration. So, limiting the amount of water being pumped should, theoretically, protect them.

ZOOMING OUT: Many Central Valley famers are furious, especially as drought-related farm losses totalled $7 billion and cost 40,000 jobs in 2014, 2015, and 2022 combined. It’s clear that a tough question will have to be answered: satisfy the environmentalists or the farmers?

POLICY
CHINESE DUMPING DRAMA

As international tensions continue to rise, China has launched an “anti-dumping” probe on pork imports from the European Union (“EU”), accusing European nations of large-scale protectionism.

Currently, China imports over 50% of its pork from the EU. But with export volumes having fallen off in recent years due to oversupply and lower prices, the trade is no longer as profitable for big producers, like Spain, Denmark, and the Netherlands.

The European Commission will investigate further to ensure that these moves comply with World Trade Organisation rules. But, as the EU maintains, exporting pork is becoming increasingly less lucrative.

ZOOMING OUT: Whether it is European tariffs on Chinese electric vehicles, or Chinese levies on US soybeans and Australian beef, this is one sign, of many, that the world seems to be fragmenting. For now, though, we’ll just have to wait for the results.

SUPPLY CHAIN
THE DURIAN CRAZE HEATS UP

New UN research has shown that the value of durian exports from Southeast Asia to China reached $6.7 billion in 2023, a twelvefold increase from $550 million in 2017.

Famous for being banned from hotels due to its peculiar odour, durian has become an extravagant delicacy in China. In fact, pound for pound, the fruit is one of the most expensive on the planet. 

Many durian producers - like Vietnam and Malaysia, for instance - are reshaping their landscapes for it, razing jungles and cutting down coffee plantations to make space. 

ZOOMING OUT: With Chinese clients being the main target, it goes to show just how much a region’s economy can benefit when 1.4 billion people get a taste for something. Let’s just hope that concerns for biodiversity are also not ignored when maximising durian production.

BUSINESS
MCDONALD’S PAUSES AI EXPERIMENT

After three years of experimenting with an automated drive-through order taker McDonald’s will now be temporarily shutting down this IBM-powered A.I. venture.

Numerous complaints from customers - from mistaking ice cream for extra bacon to accidentally ordering 240 extra chicken nuggets - have tarnished McDonald’s reputation for efficiency and speed. 

Some commentators have pointed out that McDonald’s has not fully abandoned artificial intelligence, though, but will watch from the sidelines to see what works best.

ZOOMING OUT: While A.I. is being used more often in the fast food space, it has become clear that more work needs to be done to iron out the kinks. Especially when it comes to drive-throughs, human workers are still needed to deal with customer indecision.

THE BRIGHT SIDE
CHOCOLATE, BUT NOT CHOCOLATE

I’ve spoken at length about the cocoa problem on Food Jungle. And, while I have advocated for sustainable chocolate brands, I haven’t really addressed brands that are trying to make cool alternatives to chocolate altogether.

Mez Foods is located in Chicago and prioritises the production of a “chocolate” bar, using a naturally sweet plant, Mesquite, that is usually chopped down and burnt to make barbecue.

The founders of Mez Foods - two brothers - found that Mesquite cannot only be made into something that really resembles cocoa-based chocolate, but is also packed with iron, amino acids, calcium, fibre and a bunch of other healthy things.

Crucially, because of Mesquite’s natural sweetness, you don’t have to add nearly as much sugar as you do with cocoa-based chocolate. So, for the health nuts, this is a winner.

Mesquite also thrives in dry regions, meaning that it doesn’t need much fertiliser or water to grow. So, if you’re looking to find what the future of sweet treats may be, I would look at Mez Foods first. Food Jungle approved  

SHARE FOOD JUNGLE

In keeping with the Texan theme, I would tip my cowboy hat to all of you if you could share Food Jungle with all your nearest and dearest. 🤠 

BEFORE YOU GO…

  • French food company, Danone, plans to double down on health and nutrition in the coming years to tackle the effects of weight-loss drugs on eating habits.

  • McDonald’s will launch a $5 Meal Deal for a limited time to participate in the ongoing “value wars” at major fast food chains.

  • Primo Water – owner of Mountain Valley Water – and Alhambra brands – owner of Blue Triton Water – have agreed to merge in an all-stock transaction.

  • McDonald’s is trialling a new line of dairy-free ice creams in select UK restaurants, with a potential nationwide launch slated for 2025.

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! 🤩 

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