Water Losses and Lobster

27th May, 2024

Welcome back Food Junglers! We’re leaning heavily into water and agriculture this time around, with upcoming elections setting the stage for massive, and controversial, reforms. Let’s dig in.

This week:

🚰 Mexico is next on the water crisis list.

🚜 A new farm bill draft is proposed in the United States.

🦞 Red Lobster officially files for bankruptcy.

🇪🇺 Consumers can’t trust the food industry in Europe.

🥑 Fruit pits can actually be useful in Austria

CLIMATE
A MEXICAN WATER CRISIS

In what seems to be a never ending saga for cities near the Equator, Mexico City is getting dangerously close to running out of drinkable water.

The Cutzamala water system - which supplies 27% of the Mexican capital’s water - is at a historically low 30% of its normal capacity, figures indicate.

Officials even say that 26th June will be “Day Zero”, when the Cutzamala system could drop to the 20% baseline. And, at that point, it would no longer be able to provide water to Mexico City.

ZOOMING OUT: The country is weeks away from a major election and the front runner, Claudia Sheinbaum, has made water her top priority. And, if she does follow through with investing $1.2 billion per year to update an outdated, water-guzzling agriculture industry, there may yet be a way out.

POLICY
A FARMING DEBATE IN THE US

House Republicans have released a somewhat controversial draft text for an upcoming Farm Bill that will decide how the US government should spend $1.5 TRILLION.

Among the edits was a plan to prevent future benefit increases under the Supplemental Nutrition Assistance Programme, which provides lower-income households with an opportunity to afford groceries.

Most controversially, however, the draft looked to roll back some of the Californian protections on animal welfare. Safe to say, many in California were not happy.

ZOOMING OUT: From increased financial aid during climate crises to more funding of avian flu detection systems, it’s not all doom and gloom for the Farm Bill. But, despite this, it is clear that further edits will have to be made.

BUSINESS
RED LOBSTER LOSSES

Casual dining seafood chain - Red Lobster - has officially filed for Chapter 11 bankruptcy, aiming to hand ownership to creditors as mounting debt and slow traffic have stifled the company.

Even though it was the biggest seafood restaurant chain in the US during the 1990s and 2000s, Red Lobster accumulated nearly $300 million in debt to its creditors by late 2023.

And, despite launching a tremendously popular $20 all-you-can-eat shrimp deal in June 2023, the company said the resulting increase in popularity of the restaurant couldn’t minimise its financial losses.

ZOOMING OUT: To many in the US, this is the end of an era as, up until its bankruptcy, Red Lobster served 64 million people every year. But even popularity is no match for bad management.

SUPPLY CHAIN
EUROPEAN CONFIDENCE PLUMMETS

According to a new report by the EIT Food Consumer Observatory, which included 19,642 people across 18 European countries, consumers are rapidly losing trust in the food industry.

For Europe’s consumers, the food industry is not providing enough sustainably produced or healthy products. Lack of transparency from food manufacturers is also a huge cause for concern.

The report showed that only 36% of consumers believe that the food they eat is sustainable with just under a third of consumers “actively distrusting food manufacturers”.

ZOOMING OUT: While recent farming protests throughout the continent and inflated prices could be the root of all this, much has to be said about the swathes of consumers that are prioritising health and sustainability. This could potentially be the next frontier for food manufacturing in Europe.

THE BRIGHT SIDE
NO PIT LEFT BEHIND

Around 500,000 metric tons of stone fruit pits are land-filled every year in Europe, adding to an already severe food waste problem that has been plaguing the world for quite some time.

But, in an effort to make this food waste problem a little less worrisome, an Austrian start-up - Kern Tec - has found a way to turn wasted fruit pits into healthy food products!

After rescuing the fruit pits from commercial fruit growers and washing them, the company uses patented technology to transform them into things, such as nougat spreads, milk alternatives, and oils.

The team has already raised a substantial amount of capital and has processed over 2,500 tons of pits. I’m definitely excited to see where they go next. Food Jungle approved  

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BEFORE YOU GO…

  • Alt-meat producer - Impossible Foods - has repurposed a 70-acre cattle ranch to grow crops for its plant-based meat products.

  • Pop icon - Dolly Parton - is teaming up with doughnut maker - Krispy Kreme - to introduce a new line of doughnuts.

  • Cultivated meat company – Good Meat – has announced that for the first time ever, cell-based meat will be sold at retail for shoppers to purchase and bring home to cook.

  • A farmworker in Michigan has been diagnosed with bird flu, making it the US’ second human case associated with the outbreak in cows.

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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