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Updated on 23/09/2003
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STOP PRESS  StarPack 2003 Award winners  

 
HEADLINE NEWS 30 June 2003

Food industry gives cautious welcome to CAP deal
US bulk rigid packs to grow 4%/y
Sharp to open R&D centre in China
E-working e-novation in the EU…
…As US seeks better access to R&D results 
US dairymen hail child food act…
…As lawyers queue to sue food processors
Charity begins at home

CAP

Food industry gives cautious welcome to CAP deal

The European food industry gave qualified support to the agriculture ministers’ deal over reform of the Common Agricultural Policy (CAP), which costs taxpayers $50 billion a year, half the European Commission’s annual budget.

Industry spokesman CIAA (Confederation of the food and drink industries of the EU) said the agreement as “a major breakthrough for the agri-food sector”. But it added that its complexity would make its effects hard to judge.

It said the agreement will improve the EU’s position in WTO negotiations. It wants EU negotiators to get equivalent concessions from WTO partners.

“The agreement reached yesterday is in line with the long term objective of the EU food and drink industry to promote a competitive, efficient and more sustainable agriculture in Europe”, said CIAA president Jean Martin.

“However, the relatively complex outcome is unlikely to bring the expected simplification of agricultural policy instruments. CIAA also regrets the considerable possibilities of adjustment of the measures at national level which might ultimately distort competition.”

Packaging

US bulk rigid packs to grow 4%/y

Demand for rigid bulk packaging in the US will climb 4%/y to $5.5 billion in 2007, says a new report from Freedonia, a market research firm.

Freedonia expects an uptick in manufacturing activity and a shift in the product mix toward higher-value containers to drive growth. Tougher regulations for carrying and handling hazardous chemicals and waste will also stimulate demand.

Highest value gains are expected for rigid intermediate bulk containers (RIBCs) and materials handling containers. Plastic drums and plastic pails will show above-average growth, largely at the expense of fibre and steel drums and steel pails. RIBCs will grow fastest at 7% to 2007. This is due to cost and performance advantages over smaller, single-trip or shorter life containers. Materials handling containers will post 5.7% annual gains through 2007, driven by more use of returnable and reusable containers to save costs and produce efficiently.

Nondurable goods represented over 75% of rigid bulk packaging demand in 2002. Food uses will present the best opportunities, increasing 4.9% annually as users swap from corrugated boxes and wooden crates to reusable materials handling crates, especially for shipping and handling fresh produce from growers and processors to retailers.

Chemical product markets, which accounted for over half of nondurable uses in 2002, will expand slightly slower. Durable goods uses will grow fastest in major markets, climbing 5.3%/y. These will track durable goods production gains, with support from a recovering US economy and upgrades to more efficient materials handling systems.

US Rigid Bulk Packaging Demand

Item

1997

2002

2007

02/97

07/02

 

$m

$m

$m

%

%

Rigid bulk packaging demand

3862

4500

5470

3.1

4.0

Drums

1320

1280

1365

-0.6

1.3

Pails

850

1110

1380

5.5

4.5

Materials handling containers

683

870

1150

5.0

5.7

Bulk boxes

665

745

880

2.3

3.4

RIBCs

344

495

695

7.5

7.0

© 2003 by The Freedonia Group, Inc.

R&D

Sharp to open R&D centre in China

Japan’s Sharp Electronics will open its first consumer electronics R&D lab in Shanghai, China in July at a cost of $3 million. The lab will target appliances like air conditioning equipment and washing machines aiming to become Sharp’s main home appliances development shop in Asia.

This is Sharp’s first stab at moving R&D outside Osaka, Japan, and comes as it beefs up its push into China. Sharp aims to raise the expertise level of Chinese researchers and technical staff and quickly develop one-of-a-kind products best suited to Chinese consumers, it says. Starting with a staff of 12, it expects to have 50 by 2005.

E-working e-novation in the EU…

Electronically mediated communications will provide essential support to large scale research and development in Europe, say researchers.

Speaking after a workshop into new working practices last week, Isidro Laso, scientific officer with the European Commission’s Information Society directorate general.

“We believe that technologies and applications that allow for new and effective forms of collaboration will not only foster creativity and harness European diversity, but will also boost levels of innovation in Europe.”

But collaborative e-working is new to most. Delegates heard results from Europe’s first “hot city” project. In September 2002 Madrid-based Wireless & Satellite Networks (WSN) launched its Afitel WiFi network in Zamora, Spain. This gave users unlimited high speed wireless Internet access from their PC, laptop or other mobile device anywhere in the city for 9.90 euros/month, a quarter of the monthly cost of ADSL rates.

WSN chief executive Ignacio Ozcariz said networks like Afitel could make always-on Internet connections affordable for far more Europeans. This could enable new forms of collaboration and e-working practices.

Ozcariz believes wireless networks such as Afitel should be deployed across Europe with public assistance, as part of the basic communication infrastructure. He adds that rather than focus on current leading edge technology, funding for EU research projects should go on future technologies and foresight exercises.

Jonathan Sage of IBM’s business consulting services department said it is more important to discover what collaborations emerge before throwing technology at them. He prefers to see the EC promote open standards to lower the cost of access, especially for small and medium companies.

The EC plans to summarise opinions expressed at the workshop and to set up an advisory group on e-working and collaboration.

…As US seeks better access to R&D results

The US House of Representatives is to debate a bill that will curb publishers’ control over academic papers produced with taxpayers’ money. The move is part of a larger campaign by the open-access Public Library of Science (PLoS), to raise a national debate on access to scientific literature.

The PLoS says that while government money supports research, access to the results is limited to scientists whose libraries can afford high subscription fees and to those lay people who live near a public institutional library.

The Public Access to Science Bill seeks to void copyright protection for any results that depend mainly on taxpayers’ money. Most academic journals require authors to transfer copyright to the journal as a condition of publication. This would stop if the bill becomes law. Without copyright, journals would still be able to publish articles, but they would not be able to control distribution or republishing. They would be unable to hold readers to ransom over subscription fees.

Publishers say they need copyright in order to control a publication's quality. But others say that the effort required from the publishers does not justify ownership.

PLoS plans to launch its first open-access, peer-reviewed journal this October, and each paper will be accompanied by a plain-English summary.

Nutrition

US dairymen hail child food act…

The US National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA) welcomed the Child Nutrition Improvement Act (S.1367), which may see more schools offering milk products as part of school meals.

The act is a response to concerns about children’s nutritional needs, ranging from low calcium consumption to obesity. Nearly 90% of teenage girls and 70% of teenage boys don't get the calcium they need, and obesity is now a national epidemic.

…As lawyers queue to sue food processors

Last year’s $90 billion bill to treat obesity-related diseases was more than the bill for smokers, drinkers and even the poor. Now the lawyers who troubled the tobacco companies have their sights on food processors, and the fast food sector in particular.

Fast food maker McDonald’s, which was sued privately last year for alleged misleading advertising, has already added healthier options to its menu, changed recipes to reduce trans fats, and started telling customers about the energy and fat content of its products. But this is unlikely to deter lawyers who scent fat payouts for their overweight clients.

Lawyers for the food industry say the lawsuits may infringe peoples’ right to choose. But the estimated $12 billion obesity bill born by employers is nudging corporate America to ditch doughnuts and Danishes for bananas and broccoli. NBC reports that nearly 200 companies including Ford and PepsiCo have joined a programme to try to cut obesity-related health costs.

That spells bad news for fast food and snack makers. Industry analysts say that a 3% drop in cash growth means an 18% drop in market value. Expect some urgent innovation in the corporate kitchens.

Investment

Charity begins at home

Foreign direct investment in the European Union dropped 35% to EUR76 billion in 2002 as European investment in the rest of the world shrank 48% to EUR140 billion, according to new data from Eurostat.

This was the second year in a row that flows of EU foreign direct investment (FDI) with the rest of the world contracted. In 2001 outflows fell by 34% and inflows by 22% compared to 2000, Eurostat said.

The US was still the EU's main investment partner in 2002, receiving 33% of investment from the EU, and supplying 42% of investment into the EU. Proportionally these were well down on 2001, 58% and 72% for outflows and inflows respectively. Excluding the US, extra-EU outflows in 2002 only fell by 17%, while inflows rose by 37%.

 
Tuesday, 01 February 2005
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