Recent news:
SAP-Visa initiative will streamline B2B payments for APAC - SAP and Visa have joined forces to enhance working capital levels in supply chains across the Asia-Pacific region. Their collaborative initiative aims to streamline and simplify business-to-business (B2B) payments. This will be achieved by embedding payments into the SAP ecosystem through SAP Business Technology Platform. This is especially significant for smaller businesses which face challenges in digitizing B2B payment acceptance and cannot accept commercial card payments. The solution will first be available to SAP customers in Australia, India, Japan, Malaysia, Singapore, Thailand, and Vietnam, with plans for further expansion into other markets in the region.
Kraft Heinz transitioning to all recycled packaging - Kraft Heinz revealed plans to switch its Kraft Real Mayo and Miracle Whip products in the U.S. to 100% recycled content packaging next year. This move aligns with the company's new objective of reducing virgin plastic use by 20% by 2030 by incorporating more recycled materials and plastic alternatives in its packaging. These initiatives complement Kraft Heinz's ongoing commitment to making all its packaging recyclable, reusable, or compostable by 2025, with an 84% achievement rate by 2021. If the packaging initiative by Kraft Heinz proves successful in the U.S., we can anticipate similar sustainable packaging practices being implemented in New Zealand distribution centers. This could set a precedent for other suppliers in New Zealand's supply chain and logistics industry to adopt similar packaging strategies.
Global sugar supply shortage – Extreme weather conditions are predicted to cause a significant 15% decrease in the global sugar supply by 2024. India, one of the world's top five sugar producers, has decided against increasing its exports in September despite the expected reduction. Similar challenges have impacted major producers like Brazil, as excessive rainfall has hindered their ability to amass large sugar stockpiles due to delayed harvests. Germany, France, and Poland experienced adverse effects on their sugar beet harvests in 2023, leading to a weakened supply in those regions. In Thailand, severe regional droughts are projected to cause a considerable 21% decline in its sugar supply during early 2024. These supply constraints have also significantly impacted sugar prices globally, which have surged by 42% year-on-year since June 2023.
Global factory activity - Global factory activity continued its downward trend in July 2023, with the J.P. Morgan Global Manufacturing Purchasing Managers’ Index (PMI) remaining at 48.7 for the second consecutive month, matching the lowest level recorded since June 2020. A PMI below 50 signifies a contraction in activity, signaling challenges across regions. Germany, as Europe's largest economy, faced notable weakness, mirrored by diminishing factory activities in France and Italy. In Asia, manufacturing contraction was evident in countries such as Japan, Taiwan, Vietnam, and South Korea. China's manufacturing PMI fell to 49.2 in July, missing estimates and marking its first decline since April. While North and South America exhibited comparatively more stability, the US experienced a stabilization in manufacturing but a decline in factory employment to a three-year low. In New Zealand, the BNZ-Business New Zealand Performance of Manufacturing Index recorded a flat reading of 47.5 for the month, reflecting declining manufacturing activity. BNZ Senior Economist Craig Ebert noted the sector's significant weakening, well below its long-term average.
New Zealand Vessel Movements
Vessel data sourced from: Marine Traffic - 7/08/23
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