September 2013 Edition
COFFEE
Farmers
in Brazil are upset by falling prices. Their beans now fetch around
US$106 a 60kg bag, a four-year low and less than half they got two years
ago. A reversal soon looks to be unlikely. A third of the world's
coffee is grown in Brazil. There are two problems. First, the
traditional markets for their wares are saturated. Growth in Europe,
America and Japan which between them drink over half the world's coffee
is flat. Second, in the parts of the world where demand is growing like
China, Indonesia and Brazil itself, drinkers are filling their pots with
cheaper beans.
BANKS
The Industrial and Commercial Bank of China (ICBC), with assets of US$160-trillion has now displaced the Bank of America to become the world's biggest bank. China now boasts four of the world's ten biggest banks, (the same number as the United States), whereas Europe and Japan have only one each.
SEAFOOD
Total retail sales of fish and seafood products in the U.S. exceeded US$14.7-billion in 2012, up from $13.3-billion in 2008. However, the industry is at a crossroads. As of 2011, the per capita consumption by Americans was about 15-pounds of fish and shellfish per year. That figure represents a decrease from 15.8-pounds per capita in 2010 which itself was a drop from 16-pounds per capita in 2009.
HEADPHONES
A Glasgow engineer has designed a prototype pair of headphones which can harness solar power to keep mobile devices charged. The headphone band is fitted with a flexible solar cell and the energy generated is stored in two small lithium batteries. The inventor is hoping to raise US$300,000 to get the headphones into production.
COMPOST
Over half of Canadian households (61%) participated in some form of composting activity in 2011, more than double the rate in 1994. Overall, 45% of all households reported composting kitchen waste and 68% of households with a lawn or garden reported composting yard waste. Households in Prince Edward Island (96%) and Nova Scotia (94%) were most likely to have composted.
CHOCOLATE
According to the latest research, just more than half (51%) of adult consumers say that their favourite type of plain chocolate is milk chocolate, followed by 35 per cent who favour dark chocolate and 8 per cent prefer white chocolate. In the last survey in 2011, 57% favoured milk and 33 per cent preferred the dark variety. The better understood health benefits of dark chocolate may be increasing its popularity as more consumers are looking for snack foods that can serve a nutritional function. The chocolate confectionary market has grown 19 per cent from 2007 to 2012 in the U.S.
RICHES
Last year, 12-million people in the world had $1-million or more in investible assets. This is a million more than in 2011. After falling in two of the last five years, their wealth increased by 10 per cent in 2012 to a record $46.2-trillion. America is home to 3.4-million of the rich, Japan (1.9-million), and Germany over one million and account for more than half of the world's wealthy. Canada has about 600,000 of the super rich.
SEEDS
The destruction of tropical rainforests is having an even greater impact on the environment than was previously thought. Scientists have found that deforestation in Brazil is causing trees to produce smaller, weaker seeds that are less likely to regenerate. It is believed that this has been triggered by the loss of large birds from the forests, which have beaks big enough to feed on and disperse the seeds. Brazil's Atlantic rainforest was once home to a vibrant array of plants and animals. With the arrival of sugar and coffee plantations, the forest has been reduced to just 12 per cent of its original size.
TAXES
Taxes on property go back a long way. Ancient civilizations from Greece to China had levies on land. In the U.S. local governments have raised money from property taxes since the colonial eraand in the States they still account for 17% of all government revenue: in Britain and Canada the figure is around 12%. Only 2% of revenue from property taxes is assessed in Germany and Italy and in Switzerland it is just 0.4%.
BEES
A higher than expected loss of honey bees over the winter is causing Canada to reassess whether to open the U.S. border to the importation of packaged bees. Meanwhile, in Ontario, there have been several cases reported of both bees and whole hives being stolen. The same occurred last year both in B.C. and Alberta. In Ontario, honey production contributes C$25-million to the provincial economy.
HOMES
Britons now live in the smallest homes in western Europe with the average one-bed new-build the same size as a Tube carriage. Developers bent on making more profit are now cramming a lounge, kitchen, bedroom and bathroom into just 46 square metres. Overall, the average UK house is 76 square metres, 10 per cent smaller than 30 years ago. The average house in the Netherlands is 115.5 square metres, 53 per cent bigger. British architects are claiming that the lack of space and light in new British homes is causing marriage break-ups, health problems and hold children back at school.
PLASTER
U.S. scientists have designed a super-grip plaster covered with microscopic needles to heal surgical wounds. The "bed-of-needles" patch was inspired by a parasitic worm that lives in the guts of fish and clings on using cactus-like spikes which fixes skin grafts firmly in place without the need for staples. The patch is three times stronger than the materials currently used for burns patients.
CARS
The Royal Automobile Club in the UK has launched a device that will warn motorists about faults in their cars before they break down. The match-box sized device transmits data about the car before and after every journey by slotting it into a cars' computer. The automated system means that drivers then get a phone call, text or email telling them there is a fault with their car.
BHUTAN
This small Himalayan country of 1.2-million people plans to become the first country in the world to turn its agriculture completely organic. It will ban the sales of pesticides and herbicides and rely on its own animals and farm waste for fertilisers. The government expects farmers to be able to grow more, and to export increasing amounts of high quality niche foods to neighbouring India, China and other countries.
GLASS
Murano is a small island near the centre of Venice that attracts five million visitors a year and has been home to glass factories for over 700 years. Recently there has been a shift in taste from elaborate, heavy glass to inexpensive, contemporary designs that go in the dishwasher which has hurt local artisans. More than a third have closed in the past decade. At the bottom end of the market, Chinese glass now does the job more cheaply.
SHRIMP
Thailand is fighting a new disease that has reduced its shrimp output as much as 40 per cent, driving prices as much as 20 per cent higher in major markets and pressuring Western restaurants and retailers. Early mortality syndrome appeared in Thailand, the world's largest shrimp exporter last year after ravaging stocks in China in 2009 and then in Vietnam.
CHERRIES
Okanagan cherry growers in B.C. are looking ahead with an anticipated extra C$20-million in sales annually to China. Some growers have been converting acres of apple tree land into cherry orchards. It costs $30,000 an acre to replant new apple varieties and as little as $15,000 per acre for cherry trees. It is predicted that sales of cherries will be worth $10-million in 2014, increasing to $20-million annually over the next five years. The fruit is considered a luxury item in China where ripe cherries with green stems represent good luck.
THEATRE
Broadway, America's theatre district had a record breaking 2011-12 season with takings of US$1.14-billion.. However, the boost was largely down to rising ticket prices as admissions were down from 12.53-million to 12.33-million. Tourists accounted for 63.4 per cent of tickets sold while international tourists made up 18.4 per cent of all admissions. 67 per cent of audiences were female. Musicals attracted the biggest audiences accounting for $933-million of overall takings. The average price for a musical was $94.85 and $79.54 for a play.
PENSIONS
A giant mountain of 20-million kilos of maturing cheddar is to be used in the UK as security for a pension fund. In the event of the fund running into financial trouble, the trustees will be able to sell blocks of cheddar to make up the shortfall.
WASTE
An American company has developed a technique that it says can make bread stay mould-free for 60 days. The company says it could significantly reduce the amount of wasted bread, in the UK, almost a third of the loaves purchased. Food waste is a massive problem in most developed countries. In the U.S., figures released this year suggest that the average American family throws away 40 per cent of the food they purchase, which adds up to US$165-billion annually.
TIN
Exports of tin by Indonesia, the world's biggest supplier, may exceed earlier estimates by as much as 33 per cent after the government eased a quality rule. Sales will probably total 100,000 metric tons as the amended regulation will allow smelters to boost shipments.
DELAYS
China's major airports have the worst flight delays in the world. According to figures from around the world, Beijing and Shanghai came bottom for on-time flights. Eight of the 10 worst-performing Asian airlines in terms of delays were Chinese carriers. A flight is considered on-time if it arrives or departs within 15 minutes of the scheduled take-off or landing time. Tokyo's Haneda airport topped the list with an on-time performance of 95.04 per cent.
JETS
Demand for bigger, longer-range business jets is increasing again after a fall from grace during the recession. As farflung destinations in Africa and Asia, such as Angola and Mongolia attract more business travellers, corporate jets become more fuel-efficient. As a result, companies are in the market for big-cabin, corporate aircraft for long, intercontinental trips. They also find it cheaper to send larger teams by private jets when so many commercial flights are fully booked and expensive. The industry delivered 129 business jets worldwide in the first quarter of this year.
WINE
A year ago, Canadian law was changed to permit individual purchases of wine across provincial borders. So far, just two provinces, British Columbia and Manitoba, have authorized interprovincial internet and phone sales to individuals.
PROFIT
Two men in Essex, England, were sent to jail for stealing a Henry Moore sculpture which they sold for scrap for US$90. The sculpture was valued at $750,000.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
BANKS
The Industrial and Commercial Bank of China (ICBC), with assets of US$160-trillion has now displaced the Bank of America to become the world's biggest bank. China now boasts four of the world's ten biggest banks, (the same number as the United States), whereas Europe and Japan have only one each.
SEAFOOD
Total retail sales of fish and seafood products in the U.S. exceeded US$14.7-billion in 2012, up from $13.3-billion in 2008. However, the industry is at a crossroads. As of 2011, the per capita consumption by Americans was about 15-pounds of fish and shellfish per year. That figure represents a decrease from 15.8-pounds per capita in 2010 which itself was a drop from 16-pounds per capita in 2009.
HEADPHONES
A Glasgow engineer has designed a prototype pair of headphones which can harness solar power to keep mobile devices charged. The headphone band is fitted with a flexible solar cell and the energy generated is stored in two small lithium batteries. The inventor is hoping to raise US$300,000 to get the headphones into production.
COMPOST
Over half of Canadian households (61%) participated in some form of composting activity in 2011, more than double the rate in 1994. Overall, 45% of all households reported composting kitchen waste and 68% of households with a lawn or garden reported composting yard waste. Households in Prince Edward Island (96%) and Nova Scotia (94%) were most likely to have composted.
CHOCOLATE
According to the latest research, just more than half (51%) of adult consumers say that their favourite type of plain chocolate is milk chocolate, followed by 35 per cent who favour dark chocolate and 8 per cent prefer white chocolate. In the last survey in 2011, 57% favoured milk and 33 per cent preferred the dark variety. The better understood health benefits of dark chocolate may be increasing its popularity as more consumers are looking for snack foods that can serve a nutritional function. The chocolate confectionary market has grown 19 per cent from 2007 to 2012 in the U.S.
RICHES
Last year, 12-million people in the world had $1-million or more in investible assets. This is a million more than in 2011. After falling in two of the last five years, their wealth increased by 10 per cent in 2012 to a record $46.2-trillion. America is home to 3.4-million of the rich, Japan (1.9-million), and Germany over one million and account for more than half of the world's wealthy. Canada has about 600,000 of the super rich.
SEEDS
The destruction of tropical rainforests is having an even greater impact on the environment than was previously thought. Scientists have found that deforestation in Brazil is causing trees to produce smaller, weaker seeds that are less likely to regenerate. It is believed that this has been triggered by the loss of large birds from the forests, which have beaks big enough to feed on and disperse the seeds. Brazil's Atlantic rainforest was once home to a vibrant array of plants and animals. With the arrival of sugar and coffee plantations, the forest has been reduced to just 12 per cent of its original size.
TAXES
Taxes on property go back a long way. Ancient civilizations from Greece to China had levies on land. In the U.S. local governments have raised money from property taxes since the colonial eraand in the States they still account for 17% of all government revenue: in Britain and Canada the figure is around 12%. Only 2% of revenue from property taxes is assessed in Germany and Italy and in Switzerland it is just 0.4%.
BEES
A higher than expected loss of honey bees over the winter is causing Canada to reassess whether to open the U.S. border to the importation of packaged bees. Meanwhile, in Ontario, there have been several cases reported of both bees and whole hives being stolen. The same occurred last year both in B.C. and Alberta. In Ontario, honey production contributes C$25-million to the provincial economy.
HOMES
Britons now live in the smallest homes in western Europe with the average one-bed new-build the same size as a Tube carriage. Developers bent on making more profit are now cramming a lounge, kitchen, bedroom and bathroom into just 46 square metres. Overall, the average UK house is 76 square metres, 10 per cent smaller than 30 years ago. The average house in the Netherlands is 115.5 square metres, 53 per cent bigger. British architects are claiming that the lack of space and light in new British homes is causing marriage break-ups, health problems and hold children back at school.
PLASTER
U.S. scientists have designed a super-grip plaster covered with microscopic needles to heal surgical wounds. The "bed-of-needles" patch was inspired by a parasitic worm that lives in the guts of fish and clings on using cactus-like spikes which fixes skin grafts firmly in place without the need for staples. The patch is three times stronger than the materials currently used for burns patients.
CARS
The Royal Automobile Club in the UK has launched a device that will warn motorists about faults in their cars before they break down. The match-box sized device transmits data about the car before and after every journey by slotting it into a cars' computer. The automated system means that drivers then get a phone call, text or email telling them there is a fault with their car.
BHUTAN
This small Himalayan country of 1.2-million people plans to become the first country in the world to turn its agriculture completely organic. It will ban the sales of pesticides and herbicides and rely on its own animals and farm waste for fertilisers. The government expects farmers to be able to grow more, and to export increasing amounts of high quality niche foods to neighbouring India, China and other countries.
GLASS
Murano is a small island near the centre of Venice that attracts five million visitors a year and has been home to glass factories for over 700 years. Recently there has been a shift in taste from elaborate, heavy glass to inexpensive, contemporary designs that go in the dishwasher which has hurt local artisans. More than a third have closed in the past decade. At the bottom end of the market, Chinese glass now does the job more cheaply.
SHRIMP
Thailand is fighting a new disease that has reduced its shrimp output as much as 40 per cent, driving prices as much as 20 per cent higher in major markets and pressuring Western restaurants and retailers. Early mortality syndrome appeared in Thailand, the world's largest shrimp exporter last year after ravaging stocks in China in 2009 and then in Vietnam.
CHERRIES
Okanagan cherry growers in B.C. are looking ahead with an anticipated extra C$20-million in sales annually to China. Some growers have been converting acres of apple tree land into cherry orchards. It costs $30,000 an acre to replant new apple varieties and as little as $15,000 per acre for cherry trees. It is predicted that sales of cherries will be worth $10-million in 2014, increasing to $20-million annually over the next five years. The fruit is considered a luxury item in China where ripe cherries with green stems represent good luck.
THEATRE
Broadway, America's theatre district had a record breaking 2011-12 season with takings of US$1.14-billion.. However, the boost was largely down to rising ticket prices as admissions were down from 12.53-million to 12.33-million. Tourists accounted for 63.4 per cent of tickets sold while international tourists made up 18.4 per cent of all admissions. 67 per cent of audiences were female. Musicals attracted the biggest audiences accounting for $933-million of overall takings. The average price for a musical was $94.85 and $79.54 for a play.
PENSIONS
A giant mountain of 20-million kilos of maturing cheddar is to be used in the UK as security for a pension fund. In the event of the fund running into financial trouble, the trustees will be able to sell blocks of cheddar to make up the shortfall.
WASTE
An American company has developed a technique that it says can make bread stay mould-free for 60 days. The company says it could significantly reduce the amount of wasted bread, in the UK, almost a third of the loaves purchased. Food waste is a massive problem in most developed countries. In the U.S., figures released this year suggest that the average American family throws away 40 per cent of the food they purchase, which adds up to US$165-billion annually.
TIN
Exports of tin by Indonesia, the world's biggest supplier, may exceed earlier estimates by as much as 33 per cent after the government eased a quality rule. Sales will probably total 100,000 metric tons as the amended regulation will allow smelters to boost shipments.
DELAYS
China's major airports have the worst flight delays in the world. According to figures from around the world, Beijing and Shanghai came bottom for on-time flights. Eight of the 10 worst-performing Asian airlines in terms of delays were Chinese carriers. A flight is considered on-time if it arrives or departs within 15 minutes of the scheduled take-off or landing time. Tokyo's Haneda airport topped the list with an on-time performance of 95.04 per cent.
JETS
Demand for bigger, longer-range business jets is increasing again after a fall from grace during the recession. As farflung destinations in Africa and Asia, such as Angola and Mongolia attract more business travellers, corporate jets become more fuel-efficient. As a result, companies are in the market for big-cabin, corporate aircraft for long, intercontinental trips. They also find it cheaper to send larger teams by private jets when so many commercial flights are fully booked and expensive. The industry delivered 129 business jets worldwide in the first quarter of this year.
WINE
A year ago, Canadian law was changed to permit individual purchases of wine across provincial borders. So far, just two provinces, British Columbia and Manitoba, have authorized interprovincial internet and phone sales to individuals.
PROFIT
Two men in Essex, England, were sent to jail for stealing a Henry Moore sculpture which they sold for scrap for US$90. The sculpture was valued at $750,000.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
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