Tag Archives: Food Market (TRBC level 5)

Analysis: Less for more in Turkey: expensive food hunger rebounds the economy | Instant News

ISTANBUL (Reuters) – Food has become so expensive in Turkey that some people are spending what they have on rice and pasta supplies to avoid swallowing higher prices in the coming months.

Women shopping at a local market in Istanbul, Turkey January 12, 2021. REUTERS / Murad Sezer

Parents have turned to discounts on baby biscuits, the cost of eggs nearly doubling in a year, and a mock photo circulating on Twitter where a man on his knees offers a woman a can of cooking oil instead of an engagement ring.

“We only buy the absolute necessary and cheapest brands out there. All food prices went up but especially infant formula, ”said Huseyin Duran, 43, a father of three from Istanbul and a security guard who received part of the state salary for losing his job.

“I’m worried about my children,” he said. “We can only cover our rent, groceries and loan payments.”

In a world with near-zero inflation and the economic collapse due to the coronavirus, Turkey stands out with annual consumer prices up 15%, second only to Argentina among emerging markets and the highest by far in the OECD.

Rising oil and fertilizer prices and dry weather are part of the reason food inflation soars by more than 20% a year. But economists also pointed to a government policy decision that saw the lira plunge to a record low last year, driving up import costs by about $ 9 billion for food.

Turkish President Tayyip Erdogan reluctantly accepts a sharp interest rate hike that will slow economic recovery right when the COVID-19 vaccine is launched.

With a survey showing kitchens running low, Erdogan may need to do more about the basic cost of living even after lifting the head of a new central bank that in November pledged to tame inflation.

A policymaker told Reuters the government expects inflation to be tough in 2021 and must be monitored.

Turkey is “mired in painful stagflation” even amid the curfew due to the coronavirus and high borrowing costs, said Yesenn El-Radhi, senior analyst at Capital Intelligence Ratings.

“Inflationary pressure continues to be high due to the recent increase in global commodity prices and the effects of the sharp depreciation of the lira,” he said.


The trip to the market – where prices for eggplant, oranges and sunflower oil rose more than 50% last year – has become a serious burden for Turks besides the pandemic, which has stressed workers and incomes.

“Every time I fill the kitchen, the shopping bag gets lighter but the bill gets higher,” said Pinar, 31, who declined to give her last name. “I buy in bulk so I don’t have to shop again for three or four months.”

As a chef on leave, Pinar gets part of his salary under a temporary layoff ban which he says only covers rent and utilities. “I had many sleepless nights (and) in the end I thought I was going to be unemployed.”

Hyperinflation swept through Turkey in the 1990s and only ended with an International Monetary Fund program that tamed prices right when Erdogan came to power in 2003.

Inflation, led by food, surged again in the 2018 currency crisis and has remained mostly in double digits since. Economists blame chronic trade imbalances and the country’s costly FX interventions depleting reserves.


A Metropoll survey last month showed 80% believed inflation was higher than the official tally. A separate survey by the Deep Poverty Network showed more than half of respondents in Istanbul rely on food aid from the city government.

Kemal Kilicdaroglu, leader of the main opposition Republican People’s Party, said the situation was getting worse. “There has never been a hunger in Turkey before. But hunger is a reality now. “

In a turnaround, Erdogan said in November that a “bitter pill” of such high prices was needed to cool prices. Lutfi Elvan, his new finance minister, said he would take structural steps to fight inflation, which is expected to rise until April.

The government has several levers it can pull out to relieve pressure on the public. Ankara has cut tobacco taxes, which weigh heavily on the consumer price index (CPI), even as it raised alcohol and toll duties with less impact on headline numbers.

State agencies also set prices for utilities such as natural gas and electricity. Last month the government raised the net minimum wage by 16% for 2021, to 2,825 liras ($ 377) per month, to encourage workers but also to the overall CPI.

“You can’t solve the food problem with interest rates,” Gizem Oztok Altinsac, chief economist at Turkey’s top business organization TUSIAD, told a conference last week.

“Our problem with inflation is too big, so we have to take more appropriate steps to solve it.”

Additional reporting by Nevzat Devranoglu, Orhan Coskun and Murad Sezer; Edited by Toby Chopra


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British minister warns supermarkets to stockpile on food because of fears of a no-deal Brexit – Sunday Times | Instant News

FILE PHOTOS: People seen in fruit and vegetable aisles at Sainsbury supermarkets as the coronavirus disease (COVID-19) outbreak continues, in Fulham, London, England March 18, 2020. REUTERS / Kevin Coombs

(Reuters) – British ministers have warned supermarkets to stockpile on food amid a possible no-deal Brexit, with shortages feared as talks with the European Union remain deadlocked, The Sunday Times newspaper reported. bit.ly/2W9lP3J.

British Prime Minister Boris Johnson will take control of planning if Britain chooses no deal and will lead an exit operations committee to prepare a response, the newspaper reported.

Ministers have alerted suppliers of medicines, medical equipment and vaccines to stock up on supplies for six weeks in safe locations in Britain, the report added.

Reporting by Kanishka Singh in Bengaluru; Edited by Daniel Wallis


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Socially conscious investors rated JBS Brasil, ‘medium’ risk BRF, Minerva ‘high’ | Instant News

SAO PAULO, Nov 10 (Reuters) – Brazilian meat packers such as JBS SA and BRF SA have not yet addressed the major sustainability issues affecting investors’ perceptions of their industries, according to Coller’s FAIRR Protein Producers Index released on Tuesday.

One smaller Brazilian meat packer, Minerva SA, is rated “high risk” by the FAIRR Initiative, a network of investors that monitors environmental, social and governance (ESG) issues in the dairy, meat and aquaculture sectors.

JBS, BRF and Marfrig are rated “medium risk” in the index, which ranks 60 global issuers against 10 ESG risk factors.

Of the 60 companies covered, 38 companies valued at $ 165 billion on average were ranked as “high risk”, across all 10 risk and opportunity categories measured by the FAIRR Initiative, whose members own $ 25 trillion in assets under management.

In Brazil, Marfrig got the highest score of 59 out of 100 possible points. The rivals JBS and BRF scored 51 and 49 points, respectively. Minerva scored 20 points.

The top performer overall was Mowi from Norway, the world’s largest supplier of farmed salmon. The two worst performers are based in China and India.

This year, climate change and the COVID-19 pandemic are weighing on an industry “which has emerged from the fundamental constraints surrounding land, water and antibiotic use,” FAIRR said. The health crisis exposed “governance failures” with respect to working conditions in meat packing factories, he added.

In Brazil, companies including JBS, Marfrig and Minerva are also under increasing scrutiny for their alleged links to Amazon deforestation.

FAIRR acknowledges their commitment to avoid buying cattle from areas where deforestation is potential, saying that tracing the origin of livestock only from direct suppliers is not sufficient.

Marfrig said in a statement it could trace the origins of 42% of the cattle supplied by direct breeders, and by 2030 it aims to be able to trace 100%.

Minerva, BRF and JBS were not immediately available for comment. (Reporting by Ana Mano; Editing by Richard Chang)


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Lyft is seeking its share of food deliveries amid a slow hail recovery, stocks rising | Instant News

(Reuters) – Lyft Inc. LYFT.O said on Tuesday that it is working on a new service to take part of the burgeoning food delivery market as it seeks to offset a 48% drop in quarterly revenue and a slow recovery from volatile demand.

FILE PHOTO: People mingle following Lyft’s list on the Nasdaq at an IPO in Los Angeles, California, USA, March 29, 2019. REUTERS / Mike Blake / File Photo

Lyft shares were up 6% in after-hours trading.

Unlike its larger hail rival, Uber Technologies Inc. UBER.N, Lyft has no food delivery business to support amid the pandemic. This means that, while largely unable to keep up with the drop in travel, Lyft is also avoiding the extra costs of Uber in boosting its Eats business.

But Lyft President John Zimmer on Tuesday said the company was looking to tap into what it saw as an untapped market by offering delivery services for restaurants without launching a consumer-facing platform for food delivery.

“What we hear from restaurants is they are looking for a partner who won’t charge a 30% commission, but still offers delivery services,” Zimmer told Reuters in an interview, adding the service would offer new income opportunities for drivers.

While the details are still unclear, the offer aims to lower Uber’s GrubHub Inc. price tag. GRUB.N and other food delivery services charge a fee to the restaurant for each order – a method that has been challenged by some restaurants and lawmakers.

Lyft in October announced a partnership with GrubHub that will allow members of the Lyft loyalty program to send free restaurants from GrubHub restaurants.

Lyft’s third-quarter revenue fell to $ 499.7 million (£ 377 million), beating the average analyst’s expectations of $ 486.5 million, according to Refinitiv data.

Although Lyft’s stock has surged this week on hopes of a coronavirus vaccine, the stock as a whole has lost more than 15% this year and is now trading more than 50% below the company’s public debut price in 2019.

Lyft on Tuesday said ride demand continued to increase in the months from July to September, but active passengers remained down 44% annually.

In addition to its main business, Lyft offers bicycle, electric scooter and car rental in several cities, but did not specify the financial details of the unit. Lyft on Tuesday said performance was improving in these units.

Third-quarter active riders totaled 12.5 million – a significant increase from 8.69 million in the second quarter but far short of the 22.3 million riders who used Lyft during the third quarter of last year.

Lyft reiterated its goal of achieving profitability based on income before interest, taxes, depreciation and amortization by the end of 2021. The company has implemented drastic cost cuts this year, including extensive layoffs.

Lyft reported a third-quarter adjusted EBITDA loss of $ 239.7 million, less than the $ 254.1 million analysts estimated loss.

The company said its quarterly adjusted EBITDA loss was $ 25 million less than Lyft’s recent estimate, reflecting progress in reducing costs.

Unlike Uber, Lyft only operates in a few cities in Canada and the United States, where Uber last week said demand for airplane travel was recovering at the slowest compared to other regions around the world.

Uber last week reported $ 3.13 billion in third-quarter revenue, nearly half of which came from its food delivery unit. Uber said it could be profitable on an adjusted EBITDA base by the end of 2021 even though travel continues to remain 10% to 20% below pre-pandemic levels.

Uber and Lyft recently scored a significant win in their California home market, where voters certified company-sponsored ballots reinforcing app-based food delivery status and online taxi drivers as independent contractors, not employees eligible for unemployment pay , health insurance and other expensive benefits.

Show workers in California will now receive limited benefits, including a minimum wage rate and accident insurance and the company hopes to turn California’s decision into a model for the nation.

Lyft’s president, Zimmer, on Tuesday said the company was talking to lawmakers in other states and at the federal level and added he was optimistic that the model would be implemented more broadly.

“Politicians in other states are surprised how successful this move is in very progressive circumstances,” said Zimmer, referring to California.

Reporting by Tina Bellon in New York and Akanksha Rana in Bangaluru; Edited by Peter Henderson and Matthew Lewis


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