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Mitsuko Takahashi on the global egg industry

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Since August 2021, Ms Takahashi has been actively supporting and leading Ise Foods to enter the Indian market. She was appointed Chief Operation Officer of Ise-Suzuki Egg India in January 2022. She has abundant management and marketing experiences at global companies such as America’s Boeing, UPS and India’s Jet Airways. Prior, she was an Indian government scholar and studied in Gujarat and New Delhi for over 3 years. She has done her MBA from Aoyama Gakuin University, Tokyo, and is currently pursuing PhD at Gujarat Technical University. 

What aspects of your journey led you to work in the eggs industry?

I was an Indian government scholar when I was young. And ever since India has been close to me and I have considered India as my second motherland. I was appointed to lead Indian market by Ise Foods Inc. because it is India, not the egg industry that took me to India.

Why did Ise Foods Inc. decide to launch in India?

Ise Foods Inc. has entered the United States since 1980s. It’s market share in the US west coast reached to more than 60%. Ever since Ise Foods Inc. has been active in China and ASEAN countries to expand its presence and produced quality eggs.

India has more than 1.3 billion population and its economy is growing rapidly. While a Japanese individual eats 330 eggs annually on average, the per capita consumption in India is around 60 eggs per year. But the Indian Council of Medical Research recommends at least 180 eggs per head per annum. It means India has a big growth potential in egg market. Furthermore, Indian middle class is growing, and the demand of quality foods is increasing in the post Covid. We understand India is a big market for Japanese standard quality eggs.

There has been a rise in veganism worldwide. How does marketing for the eggs sector shift with these shifting trends? 

Vegetarianism is usually a diet, while veganism is a lifestyle. Vegans may be motivated to eat vegan foods by health, environmental, or animal welfare perspective reasons. On the contrary, egg is a perfect food with a very versatile nutrition value. It has various health benefits: a lot of protein to build one’s body, Vitamin E, D and B that makes it better to take as egg than supplements. Eggs are stomach filling and good for weight loss. Eggs are also good for diabetic and high cholesterol patients. So, egg is effective and optimal food to keep us healthy. We market as “our hygienic, nutritious and safe eggs for your beloved ones.” Eggs are essential for healthy life of all ages.

What distribution channels is Ise Foods considering for the Indian market? 

Considering our target customers, we are aiming for modern trade, luxurious general trade, E-commerce, hotels, and restaurants, as our distribution channels.

As Ise Egg Premium are machine washed/ UV sanitized and transported in cold chain, we request those stores to sell the eggs in meat chillers. We recommend customers to keep our eggs in a refrigerator. This way, our hygienic and nutritious eggs are served fresh. Our eggs have also cleared a salmonella free lab test. For hotels and restaurants, our eggs can be a value added; for example, our egg yolk color is special and darker yellow, therefore the cooked food will be rich in taste.

What are the leading egg-consuming countries globally? How are consumption trends shifting? 

According to International Egg Commission, the consumption of eggs has been on the rise all over the world and even 2025~2030 forecasts look promising. The top consumers in the world rank are Mexico, Japan and the USA. Particularly, Japanese are fond of eggs and there have many recipes using eggs from the starters, main dishes to desserts.

The development in egg consumption in selected countries in the period 2015 – 2019 (Source: IEC)

Consumption trend post covid is food safety conscious, and more smart people start to choose high quality, chemical free, and more nutritious eggs.

Are you an avid consumer of eggs? How often do you include eggs in your diet? 

As an average Japanese, I eat egg quite regularly. I usually have breakfast with egg dish (such as sunny side up, omelet, soft boiled egg), salad, and café au lait. My favorite breakfast is French toast with honey and cinnamon. When we eat ramen noodle for lunch, there would always be a soft-boiled egg on top. As Japanese eggs are hygienic and safe, one of the Japanese feasts is raw egg over steaming rice. We consume a lot of fresh egg mayonnaise. Eggs are also used in cooking, too. So, eggs are a part of our daily diet. No wonder Japanese are 3rd largest egg consumers.

What are some other countries besides India Ise Foods wants to expand to? 

Probably, Middle east and east Africa would be interesting markets to expand next from India. But we are focusing on India market as a priority now.

Vidhi Bubna is a freelance journalist from Mumbai who covers international relations, defence, diplomacy and social issues. Her current focus is on India-China relations.

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Baltic reality: High inflation and declining of living standards

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The Baltic States’ economy is in bad condition. The latest estimate from the EU’s statistics body shows that Eurozone inflation is continuing to soar to record highs.

The Baltic countries continue to be the hardest hit. These states in particular are experiencing the highest levels of inflation in the Eurozone. Thus, inflation in Latvia and Lithuania hit 22.4 per cent and 22.5 per cent respectively. Estonia also has seen inflation rise year on year from 6.4 per cent in September 2021 to 24.2 per cent in September 2022. The more so, the Baltic States continue to see soaring energy and food prices which lead to declining standard of living.

The Bank of Lithuania has published its latest economic forecast and revised gross domestic product (GDP) growth projections for 2023 from 3.4% to 0.9%.

Statistics Lithuania also reports that in September 2022, the consumer confidence indicator stood at minus 16 and, compared to August, decreased by 5 percentage points. The decrease in the consumer confidence indicator in September was determined by negative changes in all of its components.

According to SEB bank economist Tadas Povilauskas, the number of poor people in Lithuania will increase. Living standards will be affected by rising food and energy prices. The current price of natural gas is too high and the economy cannot “go” with it. It is evidently that energy prices shocks have far-reaching effects on Lithuanian economy and population.

The main cause of such state of affairs is deteriorated relations with Russia. Russia has lately been the EU’s top supplier of oil, natural gas, and coal, accounting for around a quarter of its energy.

The conflict in Ukraine and political confrontation between Russia and the West has exacerbated the energy crisis by fuelling global worries it may lead to an interruption of oil or natural gas supplies from Russia. Moscow said in September it would not fully resume its gas supplies to Europe until the West lifts its sanctions.

It is obviously that the conflict in Ukraine dramatically worsened the situation on the markets, as Russia and Ukraine account for nearly a third of global wheat and barley, and two-thirds of the world’s exports of sunflower oil used for cooking. Ukraine is also the world’s fourth-biggest exporter of corn.

According to Euronews, the prices of many commodities – crucially including food – strained global supply chains, leaving crops to rot, caused panic in many European countries, including the Baltic States.

High inflation has become the direct consequence of sanctions imposed on Russia. As for the Baltic States, the lack of wisdom to find compromises and blindly following the European Union’s decisions have lead to declining standards of living. The desire to punish such huge state as Russia played a cruel joke on the Baltic States. It will be difficult to explain the population why they should turn down the heating in homes, schools and hospitals over the winter.

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Policy mistakes could trigger worse recession than 2007 crisis

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The world is headed towards a global recession and prolonged stagnation unless fiscal and monetary policies holding sway in some advanced economies are quickly changed, according to a new report released on Monday by the UN Conference on Trade and Development (UNCTAD).“There is still time to step back from the edge of recession,” said UNCTAD chief Rebeca Grynspan.

‘Political will’

“This is a matter of policy choices and political will,” she added, noting that the current course of action is hurting the most vulnerable.

UNCTAD is warning that the policy-induced global recession could be worse than the global financial crisis of 2007 to 2009.

Excessive monetary tightening and inadequate financial support could expose developing world economies further to cascading crises, the agency said.

The Development prospects in a fractured world report points out that supply-side shocks, waning consumer and investor confidence, and the war in Ukraine have provoked a global slowdown and triggered inflationary pressures.

And while all regions will be affected, alarm bells are ringing most for developing countries, many of which are edging closer to debt default.

As climate stress intensifies, so do losses and damage inside vulnerable economies that lack the fiscal space to deal with disasters.

Grim outlook

The report projects that world economic growth will slow to 2.5 per cent in 2022 and drop to 2.2 per cent in 2023 – a global slowdown that would leave GDP below its pre-COVID pandemic trend and cost the world more than $17 trillion in lost productivity.

Despite this, leading central banks are sharply raising interest rates, threatening to cut off growth and making life much harder for the heavily indebted.

The global slowdown will further expose developing countries to a cascade of debt, health, and climate crises.

Middle-income countries in Latin America and low-income countries in Africa could suffer some of the sharpest slowdowns this year, according to the report.

Debt crisis

With 60 per cent of low-income countries and 30 per cent of emerging market economies in or near debt distress, UNCTAD warns of a possible global debt crisis.

Countries that were showing signs of debt distress before the pandemic are being hit especially hard by the global slowdown.

And climate shocks are heightening the risk of economic instability in indebted developing countries, seemingly under-appreciated by the G20 major economies and other international financial bodies.

“Developing countries have already spent an estimated $379 billion of reserves to defend their currencies this year,” almost double the amount of the International Monetary Fund’s (IMF) recently allocated Special Drawing Rights to supplement their official reserves. 

The UN body is requesting that international financial institutions urgently provide increased liquidity and extend debt relief for developing countries. It’s calling on the IMF to allow fairer use of Special Drawing Rights; and for countries to prioritize a multilateral legal framework on debt restructuring.

Hiking interest rates

Meanwhile, interest rate hikes in advanced economies are hitting the most vulnerable hardest

Some 90 developing countries have seen their currencies weaken against the dollar this year – over a third of them by more than 10 per cent.

And as the prices of necessities like food and energy have soared in the wake of the Ukraine war, a stronger dollar worsens the situation by raising import prices in developing countries.

Moving forward, UNCTAD is calling for advanced economies to avoid austerity measures and international organizations to reform the multilateral architecture to give developing countries a fairer say.

Calm markets, dampen speculation

For much of the last two years, rising commodity prices – particularly food and energy – have posed significant challenges for households everywhere.

And while upward pressure on fertilizer prices threatens lasting damage to many small farmers around the world, commodity markets have been in a turbulent state for a decade.

Although the UN-brokered Black Sea Grain Initiative has significantly helped to lower global food prices, insufficient attention has been paid to the role of speculators and betting frenzies in futures contracts, commodity swaps and exchange traded funds (ETFs) the report said.

Also, large multinational corporations with considerable market power appear to have taken undue advantage of the current context to boost profits on the backs of some of the world’s poorest.

UNCTAD has asked governments to increase public spending and use price controls on energy, food and other vital areas; investors to channel more money into renewables; and called on the international community to extend more support to the UN-brokered Grain Initiative.

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‘Sanctions Storm’: Recovery After the Disaster

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After the start of the special operation in Ukraine, a “sanctions storm” hit Russia; more sanctions were imposed against Russia in a few months than against Iran in decades. But a catastrophe did not take place, and the stage of stabilization came.

Indeed, almost all the weapons in the sanctions arsenal were used one after another: commodities exchange was suspended in some sectors, export and import controls were put in place, restrictions on air and sea transportation were introduced. The sanctions have spread to the investment and financial sectors, paralyzing many transactions with the West and complicating them with the East. An image impact came from the mass withdrawal of foreign business from the Russian market—not directly caused by the sanctions, but demonstrating “over-compliance,” excessive submission to them.

In the public mind, the destabilizing wave created the impression of the end of the story of the market economy in Russia, an impending catastrophe. But the catastrophe did not happen. The stage of stabilization has come, and it is important to use it correctly.

What to do?

In the near future, the Russian authorities and business will have to solve three groups of interrelated tasks. First, they must provide the domestic market with necessary goods, and restore value chains by the use of alternative partners. Second, they need to establish reliable financial mechanisms for working with these partners. Third, it is necessary to look for new growth points for the future, industries in which dependence on the West was critical. It is important to work out the possibilities: for new partners entering the markets and for attracting investors from friendly countries, as well as trying to integrate into new value chains.

Partners, first of all, include China and India. The southern direction is also not unpromising—to begin with, this includes Iran and Turkey, as well as a search for investors in the Arab world and the development of logistics routes through the Middle East. Nevertheless, in all areas, the key obstacle is the threat of secondary sanctions by the United States and the EU—which means that the second task becomes the main one: building a safe infrastructure for financial cooperation.

China remains Russia’s first trading partner—but despite the strategic partnership on the political level, large Chinese companies and banks that are active in the international market are suspending cooperation with Russia, fearing secondary US sanctions. In these conditions, it is important to work on explaining the nuances of the sanctions policy for Chinese business, creating secure payment channels that do not depend on foreign banks or on the dollar and the euro, and developing profitable package offers. Beijing seeks to use the opportunities opening up in the Russian market to occupy the vacant niches and strengthen the yuan in international payments, which means that its interest in finding a common solution is high.

A similar situation is developing in the Indian market, with the difference that Indian business is more connected than Chinese business with America, and its awareness of doing business in Russia is lower. As a consequence, Indian companies and banks integrated into the global economy will comply even more closely with sanctions restrictions, despite their interest in developing ties with Russia. Accordingly, even more active informational work is needed to establish Russian-Indian business ties, as well as the creation of a secure settlement mechanism. India already has similar experience, from doing business with Iran. In particular, UCOBank was formed to trade with it in rupees. Similar structures can be created in the Russian direction.

If the necessary channels are laid, both China and India can not only replace some Western goods in Russian markets, and ensure purchases from the Russian energy, agricultural, and military-industrial sectors—preserving their prospects for business—but also become zones of qualitative economic growth. Chinese partners can become a support in the development of bilateral cooperation in the fields of electronics and digital technologies (including 5G), and Indian, in pharmacology and high-tech agriculture. It also makes sense for business to look at these countries from the point of view of the development of green technologies in energy and agriculture, and the introduction of ESG practices, since these countries are also interested in this.

From our partner RIAC

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