AGP Executive Report

Agri-Food Diplomacy: Malaysia and Hungary are deepening agricultural and food-security cooperation, with Hungary’s participation in MAHA 2026 and plans for joint research between MARDI and Hungary’s University of Agriculture and Life Sciences. Dairy & Ingredients Earnings: Saputo reported Q1 FY2027 results, citing higher demand for high-protein ingredients, pricing actions to offset input inflation, and productivity gains from manufacturing and warehousing upgrades. Food Safety & Consumer Impact: A salad fast-food chain, Salad and Go, is closing after Chapter 11, pointing to weak demand during the Cyclospora outbreak and broader cost/strategy pressures. Retail & Local Food Systems: Connecticut’s DCP released 2025 licensing data showing cottage foods up sharply since 2020, signaling continued growth in home-based food businesses. Protein Supply Expansion: Alinova Canada opened a new Morrisburg soybean processing facility aimed at producing non-GMO soy for food ingredients, with production expected to start mid-August. Livestock Policy Pressure: Zimbabwean livestock stakeholders are urging farmers to set aside 10%–20% of arable land for pasture and fodder to curb feed costs and drought-driven livestock losses. Restaurant Performance: El Pollo Loco posted Q2 results with system-wide comparable restaurant sales up 3.9%, alongside improved operating income. Industry Leadership Moves: Convenience Industry Council of Canada named Amanda Gun-Munro as senior VP of public affairs and partnerships as it ramps advocacy on channel policy issues.

Online Grocery Shift: Korea’s online food sales overtook offline for the first time in H1 2026, with online at 50.5% vs offline at 49.5%, as “fresh must be bought in person” weakens. Food Policy: Japan approved a two-year cut to its food consumption tax to 1% from April 2027, with support to make it effectively zero for low- and middle-income earners. Regulation & Compliance: Malaysia’s Services Producer Price Index rose 2.9% y/y in Q2, with accommodation and food & beverage services up 6.4%, led by restaurants and mobile food service. Corporate Food Supply Chain: CJ Freshway’s Q2 operating profit fell 14.2% as it invested to expand its online food ingredient platform, but revenue rose 4.5% and online ingredient sales jumped 51% via Sikbom. Agriculture Inputs & Markets: Liberia’s EU-backed Seeds4Liberia initiative handed over improved seeds and farm support, while farmers’ groups urged cooperatives to take ownership to protect yields and strengthen food security. Hospitality & Foodservice: Hyatt Centric Sector 17 Chandigarh appointed Ajit Singh Gandhi as GM, with a stated focus on evolving culinary and nightlife offerings. Plant-Based Climate Angle: A new study says wider adoption of plant-rich diets could cut global food-system emissions by up to 76% by 2050.

Food Safety & Accountability: Taco Bell’s cyclospora recovery is under fresh scrutiny after a Bloomberg report says Michigan health officials contacted Yum about potentially contaminated lettuce two weeks before the public outbreak notice. Brand Building in QSR: First Watch posted 3.4% same-store sales growth and double-digit revenue gains, but it’s still pushing to close the awareness gap as it expands into more states. Menu Innovation: Cava rolled out Glazed Salmon nationwide, citing Mediterranean roots and sustainability/antibiotic-free sourcing while keeping prep complexity low for kitchens. Consumer Trends in Snacks: New research finds snacking is increasingly meal-like (89% snack as a meal weekly) with shoppers seeking “purpose & pleasure” and functional benefits without sacrificing taste or price. Regulation & Public Health: FDA authorized marketing for additional flavored nicotine pouches, while Maine’s lobster certification was suspended by MSC over whale entanglement concerns. Food Security Pressure: WFP warns El Niño could push nearly 49 million more people into acute hunger, as climate shocks and conflict-driven costs squeeze food systems. Policy & Payments for Farmers: Zambia’s president ordered faster mobile-money payments to maize farmers after delivery, aiming to reduce delays and boost productivity. Logistics Tech: DoorDash received FAA approval for its drone delivery program, DoorDash Air, signaling a new delivery channel for food and groceries.

Food Safety Crackdown: Maharashtra FDA suspended a dairy unit in Chhatrapati Sambhajinagar after a raid seized suspected adulterated dairy and edible oil worth Rs 13.42 lakh, underscoring tighter enforcement pressure on food processors. Regulatory Action on Dairy Substitutes: Maharashtra also imposed a one-year statewide ban on analogue (non-dairy) paneer, allowing only paneer made from pure milk—likely to raise costs for paneer-heavy menus. Outbreak Fallout: Salad and Go shut all 70 drive-thru locations after filing Chapter 11, blaming rising costs and a Cyclospora outbreak that wasn’t linked to the chain but damaged consumer confidence. Climate & Food Security: The UN’s WFP warns El Niño could push ~50 million people into acute hunger by year-end, with drought and rainfall disruptions hitting agriculture and water and power supplies. Transport Costs Hit Food: South Africa’s diesel price hike is expected to lift freight and food logistics costs soon, with diesel making up a large share of road freight operating costs. Monetary Policy Watch: India’s RBI held the repo rate at 5.25% and kept a neutral stance, while flagging food and fuel as near-term inflation drivers. Sustainable Finance Scrutiny: Global Witness says banks provided $31B in sustainability-linked palm oil loans despite deforestation allegations, raising questions about ESG claims.

Food Safety & Recalls: Liebel-Flarsheim recalled a single lot of Optiray 350 iodinated contrast agent after particulate contamination concerns, with FDA posting details as the product is used for vascular imaging. Retail & Consumer Demand: McDonald’s said its U.S. value push (McValue under $3) didn’t execute well enough, with slower comparable sales and weaker customer visits as affordability pressure persists. Industry Growth & Capital: GXO reported Q2 2026 results with $3.4B revenue (+4.3% YoY) and $410M in new business wins (+34% YoY), highlighting momentum in aerospace/defense, tech, industrial and life sciences. Food Manufacturing Jobs: A Trace One analysis put U.S. food manufacturing employment at a record 1.77M workers in 2025, mapping where the workforce is most concentrated. Agriculture & Sustainability: Bungoma County (Kenya) launched an agroecology strategy to scale organic production, restore ecosystems and cut synthetic chemical dependence, backed by FAO and EU funding. Food Policy & Prices: Punjab (Pakistan) set wheat release price at Rs3,800 per 40kg, directing district authorities to enforce the new rate. Food & Beverage Innovation: IFT First coverage flagged rising pushback against pea protein and growing interest in faba bean protein as a potential alternative.

Food Safety Crackdown (India): FSSAI clarified its liquor enforcement is aimed at specific manufacturers using “rum/whisky flavour” to mimic standard spirits and at misleading age-related label claims, after earlier reports sparked confusion. Advertising & Claims Enforcement (India): FSSAI also issued a prohibition order against Dabur for “100%” purity/natural claims on multiple food products and flagged alleged misuse of organic logos. Contaminated Supply (China): Regulators launched investigations after reports of excessive antibiotic residues in bullfrog products sold online, including samples exceeding limits and positives for a banned veterinary drug. Protein Market Watch: Whey protein prices have surged in 2026, pushing formulators to seek alternatives as egg prices swing with bird flu risk; fermented egg white protein is emerging as a hedge. Trade & Food Links (Bangladesh–South Korea): A CEPA signed by both countries grants preferential tariff access for most goods, including agricultural items, potentially reshaping regional food trade flows. Industry Events: Seafood Expo Asia (Sept 2–4, Singapore) brings in new national pavilions and first-time exhibitors across four continents. Agri Resilience (Asia): Indonesia set out a policy brief to manage strong El Niño risks, warning drought could hit rice, oil palm and coffee. Food Business Growth (PNG): Goodman Fielder PNG received HACCP certification for its Port Moresby bakery and flour mill operations.

US Food Labeling Modernization: Senators Blumenthal and Booker unveiled the Food Labeling Modernization Act of 2026, pushing for clearer, more transparent front-of-pack nutrition and ingredient rules after decades of stalled updates. Food Safety Oversight: Macau’s food safety checks found 98.9% of samples passing Q2 microbiological and chemical tests, with failures tied to pathogens and contaminants including Listeria and lead. Consumer Pressure & Retail: Woolworths’ food sales growth slowed in the first half of 2026, signaling even higher-income shoppers are tightening budgets. Fast-Food Earnings Watch: McDonald’s is set to report Q2 results as analysts point to low-income strain, traffic pressure, and lingering consumer worries. Food Security & Policy: At WOFEX Manila 2026, organizers and exhibitors kept circling back to food security—logistics, waste reduction, and climate resilience—not just rice output. Global Trade for Food Processing: India’s commerce minister urged doubling India-Uzbekistan trade, highlighting opportunities in agriculture, food processing, and pharmaceuticals. Regulation & Animal Welfare: Nepal published a draft Animal Service and Animal Welfare Bill to modernize livestock rules, including welfare standards and biosecurity. Industry Talent Pipeline: Abu Dhabi launched Agthia Academy to train Emirati talent for food manufacturing, with hands-on training planned with Bühler in Switzerland.

Food Safety Crackdown: India’s FSSAI has barred sale of specific liquor variants (including Old Monk, Antiquity Blue, Royal Challenge, Bagpiper Deluxe) after tests found artificial flavouring that doesn’t meet standards, raising questions about compliance across alcohol supply chains. Regulation & Consumer Protection: Liberia’s Food Authority destroyed 76,000+ expired energy drink cans and alleged an organized scheme to alter expiration dates and relabel unsafe products—an enforcement shift that could reshape oversight. Agrifood Tech & Water Security: Malaysia’s DOA launched a Smart Irrigation Monitoring System to help farmers use water more efficiently using real-time evapotranspiration data and 14-day forecasts, aiming to protect food output during El Niño. Trade & Exports: Egypt hit a record US$3.77bn in food export revenue in H1 2026, led by citrus, potatoes, strawberries and olives, with Arab markets and EU demand driving growth. Packaging & Sustainability Policy: A US judge blocked California’s recycling-symbol law, saying it likely violates the First Amendment—keeping the “chasing arrows” on products for now. Market Signals: Ghana’s GSE saw trading value jump 251% in the week to July 31, dominated by MTN Ghana.

Food Safety & Recalls: Taiwan’s camellia oil scandal is widening after authorities flagged eight batches with excessive carcinogen levels (BaP), with a suspected high-heat drying process and one Chiayi plant suspended. Regulatory Crackdowns: India’s FSSAI moved against liquor makers over external flavouring, misleading age claims and labelling, warning some products should be sold as “rum-flavoured spirit”/“whisky-flavoured spirit.” Supply Chain & Cost Pressure: Australia’s fuel excise discount ends, pushing petrol and diesel higher and raising the risk of another food-price shock via transport costs. Public Health & Nutrition: A UK study challenges “organic free-range” assumptions, finding higher environmental burdens and questionable animal-welfare outcomes tied to productivity and mortality. Food System Ethics: A Ghana cocoa investigation highlights child labour on farms producing beans that can end up in chocolate brands with sustainability claims. Market Watch: Philippine inflation is expected to hold around 6.4% in July, with food easing offset by sticky fuel and electricity costs, keeping rates elevated. Industry Moves: Morrisons expands convenience-store grocery delivery via Snappy Shopper, adding 100 Daily stores now and another 100 in 2027.

Energy Relief for Foodservice: India’s OMCs cut 19-kg commercial LPG cylinder prices by over Rs 200, easing costs for hotels, restaurants, bakeries and cloud kitchens while domestic LPG (14.2 kg) stays unchanged. Trade Pressure on Eggs: UK poultry groups warn cheaper imported eggs could undercut Scottish producers unless imports meet the same animal welfare and production standards. Import Duty Shield for Peanut Butter: South Africa’s ITAC backs a move to raise peanut butter import duty to 20% ad valorem to protect local manufacturers amid rising imports and higher input costs. Food Security Funding: Nigeria’s FG and IFAD delivered inputs to 476 Taraba farmers to boost rice and cassava output for the 2026 wet season. Climate Risk to Agriculture: Hungary faces drought-driven losses estimated at 470–500 billion forints, with knock-on effects for livestock, processing and food supply. Heat-Illness Controls in Japan: New workplace measures include cooling portable toilets and shorter construction hours during peak heat, with penalties for non-compliance. UPF/Health Law Fight: WHO says ultra-processed food giants are using lawsuits to block health rules. Food Prices Watch in the UK: The UK chancellor warns supermarkets to avoid price-gouging as Middle East tensions threaten grocery bills.

Food Security & Logistics (Africa): Nigeria’s BUA Group is investing $85m to expand its Port Harcourt terminal, adding 600m of quay frontage to boost imports of raw materials feeding its sugar, flour, pasta and edible oils business. Trade & Supply (Cuba/US): Cuba’s egg imports from the US have surged, with May sales jumping to $3.32m for fresh eggs as US exports fill gaps left by earlier supply disruptions. Food Safety & Public Health (US): A US food-safety story highlights the Cyclospora surge and how it’s shaking confidence in the system, with calls for stronger controls. Agriculture & Energy (South Asia): Kashmir’s SKUAST-K will run a 50-kW agrivoltaics pilot to test dual land use for crops and solar generation. Post-harvest Finance (Tanzania): Tanzania’s PM urged TADB to fund post-harvest storage to strengthen the Warehouse Receipt System and help farmers borrow against produce. Food & Policy (MENA): Egypt begins enforcing a ban on empty Iraqi trucks entering to load cargo, using reciprocity rules for road freight. Invasive Pest Alert (US): Spotted lanternflies are spreading across more communities, with residents urged to spot and act as they move toward adulthood. Hospitality & Operations: A longtime chef takes over as managing partner of Williamsburg’s 2nd Street American Bistro, shifting from kitchen leadership to full-day operations.

Food Safety Crackdown (India): FSSAI suspended Switz Foods’ licence after “serious non-compliances,” including unhygienic manufacturing and pest infestation, and ordered firms to recall unsafe products and halt sales of a health supplement. Regulatory Due Process (India): Hospitality groups in Maharashtra urged courts and regulators to apply enforcement under the FSS Act with graduated steps, warning against sudden licence suspensions without corrective opportunity. Dairy Expansion (Malaysia): Jemaluang Dairy Valley hit ~3 million litres of fresh milk by July 26 and targets 5.5 million litres by year-end, with a milk processing plant on track for completion before 2027 product launches. Food Security & Supply Chains (Canada): Canada’s push to process more food domestically gained traction via a soy protein isolate project, arguing the country ships most soy abroad and imports back value-added products. Agriculture & Nutrition Policy (India): The Cabinet approved PM-KISAN continuation through 2030-31 with Rs 3.15 lakh crore, aiming to support farmers’ crop-cycle spending. Edible Oil Push (India): Odisha’s governor backed faster edible oil production under the NMEO-OP to cut import dependence and strengthen food security. Drought/Heat Risk (Global): El Niño is intensifying, raising odds of hot, dry conditions and increasing drought and food-risk concerns in vulnerable regions. Market/Plant News (South Africa): Premier Foods’ Rhodes canned fruit unit is set to close, citing weaker demand, pricing pressure, and rising input costs. Food Industry & Compliance (India): Delhi-NCR industry faces a delayed deadline for particulate matter controls, with most units still non-compliant as costs and capacity constraints bite.

Food Safety & Outbreaks: Cyclospora remains in the spotlight as fresh-produce cases keep rising in the US, with new reporting also pushing back on fears that pets are a source of infection. Airline & Hospitality Dining: United Airlines is rolling out Chef’s Table–curated meals for Polaris business-class travelers, including Denver chef Penelope Wong, underscoring how food experiences are becoming a differentiator in travel. Ag Exports (Mangoes): APEDA helped ship Karnataka’s Neelam and Totapuri mangoes to the Maldives by air for the first time, aiming to expand late-season premium exports and lift farmer returns. Beef Supply Chain Pressure: JBS is closing a Pennsylvania beef packing plant, raising concerns about slaughter capacity and market access for Ontario producers, while broader debate continues over US herd growth amid reliance on imports. Policy & Chemicals: California lawmakers rejected a PFAS pesticide ban bill, opting instead for public listing—keeping the fight over “forever chemicals” in farm inputs alive. Retail/Franchise Footprint: IHOP closed two Massachusetts locations, a reminder that even big breakfast brands keep trimming underperforming sites. Regional Ag Trade: The Philippines and Cambodia are looking to deepen agricultural and fisheries trade ties to reduce supply-chain risk and attract investment.

Wage Fight: Philippines’ DOLE vowed to contest a Pasig RTC TRO that temporarily blocks Metro Manila’s P85 minimum wage hike, arguing the wage order followed due process. Food Safety Crackdown: China’s SAMR is rolling out digital license checks on food delivery platforms to shut down “ghost” outlets using false or mismatched credentials. Functional Ingredients Boom: India’s Arboreal Bioinnovations raised Rs 230 crore to scale next-gen functional ingredient R&D and manufacturing for food and nutraceutical brands. Decarbonizing Supply Chains: Envision delivered low-carbon ammonia environmental attribute certificates to PepsiCo APAC, aiming to cut fertilizer-related emissions in its value chain. Agri-Food & Trade: Malaysia’s economy grew 5.8% in Q2, but agriculture contracted as palm oil and fisheries output fell. Food Security & Fisheries: A UPV study in Iloilo links higher fuel costs to small-scale fishing decisions and household food security. Retail Moves: Sainsbury’s agreed a £120m deal to sell Argos to Swift Partners, reshaping the UK retail landscape. Regulatory & Enforcement: Nigeria’s NAFDAC reform push continues as it targets counterfeit medicines and unsafe foods.

Food Safety & Regulation: India’s Maharashtra hospitality groups (HRAWI, NRAI, AHAR) back tougher FDA food-safety hygiene pushes but want inspections handled fairly and with due process. Food Delivery & Labor: DoorDash received FAA Part 135 certification for its drone program “DoorDash Air,” but the FAA says it can’t start deliveries yet until aircraft and operations are reviewed and approved. Retail & Waste Rules: New Jersey’s “Skip the Stuff” takeout law starts Aug 1, 2026, making utensils/condiments opt-in by default to cut single-use waste. Food Industry Growth: Swiggy posted a narrower loss as Instamart hit contribution break-even, signaling resilience in India’s quick-commerce and delivery demand. Foodservice Operations: Hot-holding equipment maker Flexeserve named Lucky Spears head of culinary for the Americas to help operators improve grab-and-go standards and reduce waste. Climate-Resilient Agri-Food: Bangladesh’s PKSF launched the $211.7m GREEN project (2026-2031) to scale climate-resilient agriculture and safer, more nutritious food systems. Consumer Trends: Avocados From Peru and Chipotle expanded National Avocado Day to two days with app-only free chips and guac. Packaging & Color Shift: A new report finds “natural colors” are gaining while artificial-color sales are barely rising, as manufacturers face pressure to phase out synthetic dyes.

Food Policy & Regulation: India’s government told Parliament that FCI sold 6.35mn tonnes of rice to ethanol distilleries between June 2025 and June 2026 at about 40% below acquisition cost under OMSS(D), sparking questions over the pricing gap. Legal & Public Health: India’s Supreme Court ordered Delhi to provide medical treatment to Jantar Mantar protestors injured by pellet guns, after a plea sought limits on pellet use for crowd dispersal. Climate-Resilient Food Systems: ESCWA backed climate-resilient food systems in Yemen via a workshop focused on cross-sector coordination and aligning food-system plans with national climate action. Supply Chain & Packaging: A Singapore-based Kemin Industries broke ground on a US$35mn Kuriosity Centre to expand regional R&D and technical support for ingredients used across food and production. UK Hospitality Pressure: Tesco, Sainsbury’s, Aldi and Waitrose warned PM Andy Burnham about a looming UK “food shock,” while Burnham’s early moves include a business-rates discount for pubs and live venues. Farm Labor & Livelihoods: Bihar’s makhana boom is highlighted as workers earn very low wages despite retail prices far higher, underscoring inequality in food supply chains. Trade & Market Access: UFU urged the UK to restrict Brazilian meat imports after EU changes tied to antimicrobial and traceability concerns.