Leading food companies will line up to debate global competitiveness of Africa’s cold chains, convened this year under the headline theme Innovation, Investment and Efficiency: Delivering Africa’s cold chain potential.
The second Cool Logistics Africa event, taking place in Cape Town, South Africa, April 16-18, will bring together producers, exporters, importers and retailers from multiple perishable sectors with major shipping lines, third party logistics, ports, cold store operators and other perishable logistics stakeholders, for “360 degree debate” on Africa’s cold chain efficiency.
“The 2nd Cool Logistics Africa is designed to complement our established Cool Logistics Global event in Europe, and will connect African perishable producers, exporters, importers and retailers with global and regional logistics and transport expertise”, added Rachael White co-director at Cool Logistics Resources. “We’re delighted with the active industry encouragement we have received to return to Africa and are looking forward to growing and improving the event in 2013.”
Major companies join the debate
Hernan de Mezerville, Logistics Operations Manager at Mondelez International (formerly Kraft Foods) is the latest senior food industry figure to join the speaker line-up at the 2nd Cool Logistics Africa conference, taking place 16-18 April in Cape Town, South Africa. Formed last October when Kraft split its confectionary and grocery businesses, Mondelez is a global snack giant with annual revenues of USD36 billion and a strong focus on developing markets, which already make up 44% of its earnings. It is now Brazil’s 6th largest food company and a world-class chocolate producer, sourcing cocoa from Ghana and Cote d’Ivoire to produce chocolate in Brazil, Mexico, Argentina and Costa Rica.
As a leading transport user, Mondelez is constantly looking to develop new route-to-market options in countries such as China, India, Latin America and sub-Saharan Africa. Although primarily a user of dry freight boxes, reefer transport, cross-docking and cold storage are important for the company’s ability to maintain and develop a globally competitive business model. De Mezerville will give a critical BRICS perspective on how global perishables supply chain competitiveness can be achieved, with focus on landed cost calculations, trade impediments and what Southern Hemisphere shippers need from the maritime sector, including new services to connect emerging trading regions such as Africa, Latin America and India.
Another speaker announced by the organizers is Andy Connell, Business Unit Manager Shipping and Logistics at Dole Foods South Africa. He is a leading driver for change in supply chain business practices, with 20 years’ experience in logistics both as a shipper and ocean carrier. Connell will share his views on the likely impact of global transport infrastructure developments such as the widening of the Panama Canal on South-North and the emerging new West-East trade lanes. He will be joined by Deon Joubert, who leads logistics operations as General Manager Operation at Capespan Exports, with responsibility for all trades from South Africa. Joubert has been instrumental in the gradual yet momentous supply chain shift from shipping fruit in conventional vessels to containers and driving greater efficiencies such as dwell time reduction. “Shipping now represents around 30% of total landed cost for fruit exported from South Africa”, noted Joubert, who will be giving the fruit exporter’s view on the need for better supply chain integration.
Transport prices go up 30 per cent
In September last year, shipping giant Maersk Line announced a massive price increase of 30 per cent starting January 2013, a move which will most likely have serious repercussions for all companies involved in the frozen and perishable food chain, according to specialists. Following Maersk Line’s announcement, other companies decided to take a similar approach, increasing their transport tariffs, beginning with the first quarter of this year. World number-two line Mediterranean Shipping Co (MSC) told customers it planned to impose a US$1,500 per reefer box increase from the beginning of the year for cargo moving from Europe to Asia, according to Lloyd’s List.
“In the light of the recent global reefer container price hikes, which have hit many South African fruit exporters hard-especially on the northbound trade lanes-and are likely to notably affect citrus growers in the coming season, the onward march of the container may have to be reevaluated,” said Alex von Stempel, co-director at Cool Logistics Resources. This important topic will be discussed at the event held in South Africa by Cool Logistics, with the help of a carrier-shipper panel, on the second day will provide a chance to hear from all sides on the impact and fallout from the rate rises.
Among other topics to be discussed at the event in April there will be a review of global and Africa perishable trades, combining macro- and micro-economic trends in Sub-Saharan Africa, agricultural investment, a focus on first mile distribution in dairy, fruit shipments to the retail sector and distribution centers, food processing and the use of temperature technology in both transport and static environments, as well as extended sessions on air and ocean freight.
Other industry advisors so far confirmed for the 2013 conference include: Max Braun of Max Braun Consulting Services; Mitchell Brooke, logistics development manager of Citrus Growers’ Association of Southern Africa; Andy Connell, business unit manager, Shipping & Logistics at Dole Foods South Africa; Prof. Malcolm Dodd, managing director of Coldchain Solutions; Deon Joubert, general manager operations for Capespan Exports and Iain McIntosh, general manager sales, Mitsui OSK Lines (MOL).