Growth Driven by Investment in Cold Chain Equipment, Storage and Transport Coupled with Significant Demand for - GlobeNewswire

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Growth Driven by Investment in Cold Chain Equipment, Storage and Transport Coupled with Significant Demand for – GlobeNewswire

Published

3 years ago

October 11, 2021

Harry Miller

Gurugram, India, Oct. 11, 2021 (GLOBE NEWSWIRE) — Indonesia News

Key Findings

The manufacturers intend to use small packaging, notably for the single-serving, due to the rising popularity of the dairy products among households. Indonesians consumers prefer single size products as they can be consumed on the go.
Investment opportunities lie in scaling up production, introducing modern technology and improving farming methods. Greater capacity in cold storage and transportation is also needed to transport dairy products across the archipelago.
Collaboration with the local Indonesia dairy cooperatives that have already established sourcing and distribution networks will prove to be a convenient way for foreign companies to enter the market and get access to farmers.

Efficiency in Manufacturing and Procurement to provide a Competitive Advantage: Domestic demand for fresh milk and its by-products (such as butter, cheese and cream) has not always been fully met in Indonesia by local companies. As a result, numerous international players such as Nestle and Royal Friesland entered the market. Increased awareness of quality products and flavor variants, higher personal disposable incomes and adoption of a healthy lifestyle has forced manufacturers and retailers to intensify their efforts to improve accessibility towards natural, organic healthy friendly dairy based products in future thus, believing it to be more nutritious and lower levels of fat.

Growth in Dairy Derivatives over Long Term Supported by Population Growth and Consumer Shift towards Modern Retail Channels: According to the Inside Story News Article, Indonesia’s per capita milk consumption was evaluated at 11.7 liters per annum during 2018 (which is quite compared to other Southeast Asian countries such as the Philippines and Vietnam) and it is anticipated to grow in the near future. Along with rising internet penetration in the country, dairy food manufacturers have been adopting to sell their products on several online portals. In order to further diversify the demand, international standard players over the long term are planning to improve production and distribution standards by respective investment and tie-ups in transport and cold chain infrastructure within Indonesia.

Dairy products such as Milk powder, cheese, butter and coffee whiteners are 80-85% imported in Indonesia from major countries and a small portion of 15-20% is produced domestically. Most of the raw materials were imported from Netherlands, Philippines, Germany, China and other neighboring Countries. The market is greatly affected by the trade halts from China due to pandemic situation caused in the year 2020. Due to Corona Virus infection, dairy consumption pattern changed to a great extent. All the major players shifted their product distribution either through internet retailing or via home delivery. All sectors except the ice cream market have been showcasing a major depression in their growth curve.

The report titled “Indonesia Dairy Food Market Outlook to 2025 – Rise in Demand and Use of New Distribution Channels to Drive Market“ by Ken Research suggested that Indonesia Dairy Food Market is further expected to grow in future majorly due to changing Urban Lifestyle of the Indonesia and alteration in the preferences of the purchasing platform. Indonesia dairy food market is expected to register a positive six year CAGR of 6.1% and 3.7% in terms of revenue and sales volume respectively during the forecast period 2019P-2025F.

Key Segments Covered:-

Product Type
- Drinking Milk Product
  - Flavoured Milk Drinks
    - Dairy only Flavored Milk Drinks
    - Flavored Milk Drinks with Fruit Juices
  - Powdered Milk
  - UHT/Fresh/Liquid Milk
    - Shelf Stable Milk
      - Full Fat Shelf Stable Milk
      - Semi Skimmed Shelf Stable Milk
    - Fresh Milk
      - Full Fat Fresh Milk
      - Fat Free Fresh Milk
      - Semi Skimmed Fresh Milk
  - Milk Alternatives
    - Soy Drinks
    - Other Milk Alternatives (Almond Milk, Cashew Milk and Rest)
- Condensed Milk Products
  - Plain Condensed Milk
  - Flavoured Condensed Milk
- Yoghurt and Sour Milk Products
  - Yoghurt
    - Drinking Yoghurt
    - Plain Yoghurt
    - Flavoured Yoghurt
  - Sour Milk
- Ice Cream and Frozen Desserts
  - Impulse Ice Cream by Type
    - Single Portion Dairy Ice-Cream
    - Single Portion Water Ice-Cream
  - Impulse Ice Cream by Format
    - Sticks
    - Cones
    - Others (Single Serving Cups, Family Pack Tubs, Ice-Cream Cakes and Rest)
  - Take Home Ice Cream
    - Bulk Dairy Ice Cream
    - Multi-Pack Dairy Ice Cream
    - Take-Home Water Ice Cream
- Cheese
  - Processed Cheese
    - Spreadable Processed Cheese
      - Reconstituted Cheese
      - Cream Cheese
    - Other Processed Cheese
  - Unprocessed / Packaged Hard Cheese
    - Cheddar Cheese
    - Others (Mozzarella, Provolone, Parmesan, Emmental, Romano, Ricotta and Rest)
- Cream
  - Fresh Whipped Cream
  - Fresh Half/ Single Cream
  - Long Life/ UHT Whipped Cream
- Butter and Spreads
  - Butter
  - Margarine and Spreads
- Coffee Whiteners
  - Product Form
    - Concentrated/ Thick liquid non dairy creamer
    - Powdered non dairy creamer
    - Liquid non dairy creamer
  - Fat Type
    - Medium Fat
    - Low / No Fat
    - High Fat
  - Application
    - Coffee
    - Tea
    - Baking Items
    - Other Applications (Drinks, Candy and Remaining Concentrated Beverages)

Distribution Channel
- Hypermarkets
- Supermarkets
- Independent Small Grocers
- Convenience stores
- Other grocery retailers
- Non store retailing
- Health and beauty specialist retailers

Key Target Audience:-

Dairy food manufacturers
Milk Processors
Dairy Association
Milk Importers, Distributors and Manufacturers
Condensed Milk Manufacturers and Distributors
Ice-Cream Manufacturers
Frozen Dessert Manufacturers
Yoghurt Manufacturers
Sour Milk Manufacturers
Butter and Spreads Manufacturers
Cheese Manufacturers and Distributors
Dairy Cream Manufacturers
Coffee Whiteners Producers

Time Period Captured in the Report:-

Historical Period: 2013-2019P
Forecast Period: 2019P–2025F

Companies Covered:

Drinking Milk Products –
- Nestlé SA
- Royal FrieslandCampina NV
- Ultrajaya Milk Industry & Trading Co Tbk PT
- Indofood Sukses Makmur Tbk PT
- Greenfields Indonesia PT
- Diamond Cold Storage PT
- Cisarua Mountain Dairy PT
- Fonterra Cooperative Group Ltd

Condensed Milk Products –
- Royal FrieslandCampina NV – Frisian Flag Indonesia PT
- Indofood Sukses Makmur Tbk PT
- Indofood Sukses Makmur Tbk PT

Yoghurt and Sour Milk Products –
- Yakult Honsha Co Ltd
- Cisarua Mountain Dairy PT
- Asahi Group Holdings Ltd
- Royal FrieslandCampina NV
- Salim Group
- Yummy Food Utama PT
- Diamond Cold Storage PT
- Heavenly Nutrition Indonesia PT

Ice-Cream and Frozen Desserts –
- Unilever Group
- Campina Ice Cream Industry PT
- Alpen Food Industry PT
- Diamond Cold Storage PT
- Indofood Sukses Makmur Tbk P

Cheese –
- Kraft Heinz Co
- Mulia Boga Raya PT
- Rokko Butter Co Ltd
- Megsnow Milk Brand Co Ltd
- Mondelez International Inc
- Bel, Groupe

Cream –
- Sukanda Djaya – Roselle Whipped Cream
- Fonterra Brands Indonesia PT – UHT Anchor
- Greenfields Indonesia PT – Whipping Cream
- Haan Indonesia – Wippy Cream
- Savencia Fromage & Dairy – Elle and Vire – Crème Liquid – Whipping Cream
- Pondan Food Creations – Whip Cream
- BrookFarm – Whipping Cream
- ConAgra Brands – Reddi Wip
- Kraft Foods – Cool Whip
- Organic Valley – Heavy Whipping Cream

Butter and Spreads –
- Upfield Holdings BV / Unilever Group
- Indofood Sukses Makmur Tbk PT
- Fonterra Cooperative Group Ltd
- Golden Agri-Resources Ltd
- Wysman & Zonen BV, HJ

Coffee Whiteners –
- Sari Incofood Corp PT – Max Creamer
- Nestle Indonesia – Coffee Mate
- PT. Santos Premium Krimer / Kapal Api – Fire Boat Kream Café
- PT Lautan Natural Krimerindo – Fiber Crème

Key Topics Covered in the Report:-

Executive Summary – Indonesia Dairy Food Market
Need, Opportunity and Industry Size of Dairy Food Market
Demand & Supply Side Ecosystem, Preferences & Trends across End Users Market
Dairy Food Market Segment by Product Type, 2013-2019P
Ecosystem for Dairy Food Industry in Indonesia
Value Chain Analysis
Indonesia Drinking Milk Products Market
Indonesia Condensed Milk Market
Indonesia Yoghurt and Sour Milk Products Market
Indonesia Ice-Cream and Frozen Desserts Market
Indonesia Cream Market
Indonesia Butter and Spreads Market
Indonesia Coffee Whiteners Market
Trade Scenario in Indonesia Dairy Food Market, 2014-2018
Comparative Landscape in Indonesia Dairy Food Market
Regulatory Landscape in Indonesia Dairy Food Market
SWOT Analysis
Indonesia Dairy Food Market Future Outlook and Projections, 2019P-2025F
Online Portals Dairy Product Indonesia
Dairy products Demand Indonesia
Dairy Product Preference Indonesia
Hypermarket Chains Indonesia
Dairy Product Specialist Retailers Indonesia
Dairy Product Business Outlets Indonesia
Indonesia Dairy Product Market Growth
Consumer Shift Produk Susu Indonesia
Consumer Shift Dairy Products Indonesia
Drink Milk Product Sales Indonesia
Indonesia Milk Consumption per Capita
Indonesia Health Awareness
Powdered Milk Sales Indonesia
Prospective of UHT Milk Indonesia
Major Distribution Centers in Indonesia
Grocery Retailers in Indonesia
Hypermarket and Supermarket Chains
Indonesia Milk Market Supply Demand Gap
Penjualan Es Krim Indonesia
Condensed Milk Product Sales Indonesia
Penjualan Produk Minuman Susu Indonesia
Indonesia Flavored Condensed Milk Market
Major Entities Involved in SCM Market
Brand Share in Condensed Milk Market
Limited Milk Production in Indonesia
Technological Innovation in Indonesia
Tie-Ups of Dairy Cooperatives Indonesia
Flavored Yoghurt Sales in Indonesia
Growing Trend of Yoghurt
Butter Sales Indonesia
Ice-Cream Sales Indonesia
Single Service Ice-Cream Indonesia
Popular Take-Away Ice-Cream Indonesia
Margarine Sales Indonesia
Coffee Whiteners Sales Indonesia
Cream Sales in Indonesia
Cheese Sales in Indonesia
Processed Cheese Sales Indonesia
Popular Dairy Product Brands Indonesia
Major Dairy Product Categories Indonesia
Dairy Product Innovations Indonesia
Online Distribution Future Indonesia

For more information on the research report, refer to below link:-

Indonesia Dairy Food Market Outlook to 2025

Related Reports:-

Vietnam Nutraceutical Market Outlook to 2025 – By Dietary Supplements (Herbal Supplements, Vitamin and Minerals, Probiotics, Protein and Amino Acid Supplements, Omega 3 Fatty Acids, Others), By Functional Beverages (Energy Drinks, Plant based and Malt based Hot Drinks Hot Drinks, and Sports Drinks), By Functional Foods (Dairy, Baby Food, Breakfast Cereals, Confectionery, Hi-Fiber Biscuits, Snack Bars and Fruit Snacks)

Vietnam Nutraceutical market grew at a higher single digit growth rate over the review period 2014-2019. The market growth was supported by the increasing health awareness, government initiatives, growth in the personal disposable income of the people, rise in ageing population, and preventive nature of the age group (25-45 years). The market was observed in the growth stage and will continue to remain so in the forecasted period, 2019-2025. A change in consumption trend has been observed in the Vietnam health and wellness industry, wherein the consumers are focusing more on the preventive healthcare from taking health supplements in the old age to a shift in increasing consumption of supplements in the earlier ages in order to prevent them from permanently depending on pharmaceutical drugs. Nutraceutical are positioning itself as natural and healthy alternative to traditional medicine in the country.

UAE Nutritional Supplements Market Outlook to 2023 – by Vitamins & Dietary Supplements (Protein Supplements, Non-Herbal Dietary Supplements Composites, Fish Oils/Omega Fatty Acids, Glucosamine, Co-Enzyme Q 10, Herbal Dietary Supplements Composites, Yeast, Garlic, Ginko Biloba), Functional Foods (Dairy, Baby Food, Breakfast Cereals, Cooking Oil Confectionary, Sweet Biscuits, Snack Bars and Fruit Snacks) and Functional Beverages (Energy Drink, FF Concentrates, Sports Drink, and Bottled Water)

UAE Nutritional Supplements market grew at a higher single digit growth rate over the review period 2013-2018. The market growth was supported by the increasing health awareness, government initiatives, growth in the personal disposable income of the people, rise in ageing population, and preventive nature of the age group (25-45 years). The market was observed in the late growth stage and will continue to remain so in the forecasted period, 2018-2023. A change in consumption trend has been observed in the UAE health and wellness industry, wherein the consumers are focusing more on the preventive healthcare from taking health supplements in the old age to a shift in increasing consumption of supplements in the earlier ages in order to prevent them from permanently depending on pharmaceutical drugs. Nutritional Supplements are positioning itself as natural and healthy alternative to traditional medicine in the country.

Saudi Arabia Nutraceuticals Market Outlook to 2023 – By Vitamins and Dietary Supplements, Functional Foods (Dairy, Baby Food, Breakfast Cereals, Edible Oil, and Confectionary) and Functional Beverages (Energy Drinks, Concentrates, Fruit/Vegetable Juices, and Sports Drinks)

Saudi Arabia’s nutraceuticals market grew at a slower single-digit growth rate over the review period 2013-2018. The KSA market was evaluated at a growing varying from one product to another. Also, the market has attained maturity for prescription based vitamins and dietary supplements but the potential exists for many functional food and beverage players which can easily make their entry in the FMCG sector. Nutraceutical ingredients have positioned as a natural and healthy alternative to traditional medicine. Baby food remains the most dominant segment of the market and demand for energy drinks was negatively impacted by the imposition of sin tax (100%) and ban of sales in schools and government institutions and a complete ban on advertising.

More Dairy Food Market Research Reports:- https://www.kenresearch.com/productsearch.php?searchKey=Dairy+Food

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
support@kenresearch.com
+91-9015378249

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Want to Outperform 88% of Professional Fund Managers? Buy This 1 Investment and Hold It Forever. – The Motley Fool

Published

5 hours ago

April 19, 2024

You don’t have to be a stock market genius to outperform most pros.

You might not think it’s possible to outperform the average Wall Street professional with just a single investment. Fund managers are highly educated and steeped in market data. They get paid a lot of money to make smart investments.

But the truth is, most of them may not be worth the money. With the right steps, individual investors can outperform the majority of active large-cap mutual fund managers over the long run. You don’t need a doctorate or MBA, and you certainly don’t need to follow the everyday goings-on in the stock market. You just need to buy a single investment and hold it forever.

That’s because 88% of active large-cap fund managers have underperformed the S&P 500 index over the last 15 years thru Dec. 31, 2023, according to S&P Global’s most recent SPIVA (S&P Indices Versus Active) scorecard. So if you buy a simple S&P 500 index fund like the Vanguard S&P 500 ETF (VOO -0.23%), chances are that your investment will outperform the average active mutual fund in the long run.

Image source: Getty Images.

Why is it so hard for fund managers to outperform the S&P 500?

It’s a good bet that the average fund manager is hardworking and well-trained. But there are at least two big factors working against active fund managers.

The first is that institutional investors make up roughly 80% of all trading in the U.S. stock market — far higher than it was years ago when retail investors dominated the market. That means a professional investor is mostly trading shares with another manager who is also very knowledgeable, making it much harder to gain an edge and outperform the benchmark index.

The more basic problem, though, is that fund managers don’t just need to outperform their benchmark index. They need to beat the index by a wide enough margin to justify the fees they charge. And that reduces the odds that any given large-cap fund manager will be able to outperform an S&P 500 index fund by a significant amount.

The SPIVA scorecard found that just 40% of large-cap fund managers outperformed the S&P 500 in 2023 once you factor in fees. So if the odds of outperforming fall to 40-60 for a single year, you can see how the odds of beating the index consistently over the long run could go way down.

What Warren Buffett recommends over any other single investment

Warren Buffett is one of the smartest investors around, and he can’t think of a single better investment than an S&P 500 index fund. He recommends it even above his own company, Berkshire Hathaway.

In his 2016 letter to shareholders, Buffett shared a rough calculation that the search for superior investment advice had cost investors, in aggregate, $100 billion over the previous decade relative to investing in a simple index fund.

Even Berkshire Hathaway holds two small positions in S&P 500 index funds. You’ll find shares of the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) in Berkshire’s quarterly disclosures. Both are great options for index investors, offering low expense ratios and low tracking errors (a measure of how closely an ETF price follows the underlying index). There are plenty of other solid index funds you could buy, but either of the above is an excellent option as a starting point.

Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

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Index Funds or Stocks: Which is the Better Investment? – The Motley Fool Canada

Published

9 hours ago

April 18, 2024

Canadian investors might come across a lot of arguments out there for or against index funds and stocks. When it comes to investing, some might believe clicking once and getting an entire index is the way to go. Others might believe that stocks provide far more growth.

So let’s settle it once and for all. Which is the better investment: index funds or stocks?

Case for Index funds

Index funds can be considered a great investment for a number of reasons. These funds typically track a broad market index, such as the S&P 500. By investing in them you gain exposure to a diverse range of assets within that index, and that helps to spread out your risk.

These funds also tend to have lower expense ratios compared to an actively managed fund. They merely passively track an index rather than a team of analysts constantly changing the fund’s mix of investments. This means lower expenses, and lower fees for investors.

Funds also tend to have more consistent returns compared to individual stocks, which can see significant fluctuations in value. You therefore may enjoy an overall market trending upwards over the long term. This long-term focus can then benefit investors from the power of compounding returns, growing wealth significantly over time.

Case for stocks

That doesn’t mean that stocks can’t be a great investment as well. Stocks have historically provided higher returns compared to other asset classes over the long run. When you invest in stocks, you’re buying ownership of stakes in a company. This ownership then entitles you to a share of the company’s profits through returns or dividends.

Investing in a diverse range of stocks can then help spread out risk. Whereas an index fund is making the choice for you, Canadian investors can choose the stocks they invest in, creating the perfect diversified portfolio for them.

What’s more, stocks are quite liquid. This means you can buy and sell them easily on the stock market, providing you with cash whenever you need it. What’s more, this can be helpful during periods of volatility in the economy, providing a hedge against inflation and the ability to sell to make up income.

In some jurisdictions as well, even if you lose out on stocks you can apply capital losses, reducing overall tax liability in the process. And while it can be challenging, capital gains can also allow you to even beat the market!

So which is best?

I’m sure some people won’t like this answer, but investing in both is definitely the best route to take. If you’re set in your ways, that can mean you’re losing out on the potential returns which you could achieve by investing in both of these investment strategies.

A great option that would provide diversification is to invest in strong Canadian companies, while also investing in diversified, global index funds. For instance, consider the Vanguard FTSE Global All Cap Ex Canada Index ETF Unit (TSX:VXC), which provides investors with a mix of global equities, all with different market caps. This provides you with a diversified range of investments that over time have seen immense growth.

This index does not invest in Canada, so you can then couple that with Canadian investments. Think of the most boring areas of the market, and these can provide the safest investments! For instance, we always need utilities. So investing in a company such as Hydro One (TSX:H) can provide long-term growth. What’s more, it’s a younger stock compared to its utility peers, providing a longer runway for growth. And with a 3.15% dividend yield, you can gain extra passive income as well.

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Former Bay Street executive leads push to require firms to account for inflation in investment reports – The Globe and Mail

Published

12 hours ago

April 18, 2024

Former chief executive officer of RBC Dominion Securities Tony Fell is campaigning to require the Canadian financial industry to account for inflation in how it reports investment returns.Neville Elder/Handout

While the average Canadian is fixated on the price of gasoline and groceries, inflation may be quietly killing their investment returns.

Compounded across many years, even modest inflation can deal a powerful blow to a standard investment portfolio. And investors commonly underappreciate the threat.

But a legend of the Canadian investment banking industry is trying to change that.

Tony Fell, the former chief executive officer of RBC Dominion Securities, is campaigning to require the Canadian financial industry to account for inflation in how it reports investment returns.

“I think they will find this very hard to argue against,” he said in an interview. “It’s a matter of transparency and reporting integrity. But that doesn’t mean it will happen.”

Mr. Fell made his case in a recent letter to the Ontario Securities Commission, arguing that Canadian investors are being misled. He has not yet received a response from the regulator.

Canadians with an investment account receive a statement at least once a year detailing how their investments have performed. For the most part, rates of return are calculated on a nominal basis, meaning they have no inflation component factored in.

A real return, on the other hand, accounts for the hit to purchasing power from rising consumer prices.

These figures, Mr. Fell argues, would give investors a clearer picture of how much they have gained from a given investment.

And since Statistics Canada calculates inflation on a monthly basis, the investment industry would already have access to the data it needs to make the switch to real returns. It would be very little trouble and no extra cost, Mr. Fell said.

Still, he said he expects the investment industry will resist his proposal. “The mutual-fund lobby is so strong, and nobody wants to rock the boat too much.”

He points to the battle to inform Canadians of the investment fees they pay. For 30 years, investor advocates have been pushing for improvements to disclosure.

One major set of regulatory changes, which took effect in 2016, required financial companies to disclose how much clients paid for financial advice.

But the reforms left out one major component of mutual-fund fees. The cost of advice is there, but many investors still don’t see how much they pay in fund-management fees, which amount to billions of dollars paid by Canadians each year.

Total cost reporting, which should finally close the fee-disclosure gap, is set to come into effect in 2026. “It’s outrageous,” Mr. Fell said. “That should have been done years ago.”

So, it’s hard to imagine the industry warmly receiving his proposal, or the regulators enthusiastically pushing for its consideration.

The OSC said it agrees that retail investors need to be attuned to the effects of inflation, which is where investment advisers come in. “Professional advice requires an assessment of risk tolerance and risk appetite in order for an adviser to know their client, including the effect of the cost of living on achieving their financial objectives,” OSC spokesman Andy McNair-West said in an e-mail.

And yet, Mr. Fell said, the need exists for more formal reporting of inflation-adjusted performance.

Inflation often goes overlooked by the industry and investors alike. It can be seen in the celebration of stock indexes at all-time nominal highs, which wouldn’t look so great if inflation were factored in.

The inflationary extremes of the 1970s provide a stark illustration. In 1979, the S&P 500 index posted a total return of 18.5 per cent – a blockbuster year until you consider that inflation was 13.3 per cent.

That took the index’s real return down to a lacklustre 5.2 per cent.

More recently, investors in Canada and the United States piled into savings instruments promising 5-per-cent nominal rates of return. But the rate of inflation in Canada averaged 6.8 per cent in 2022, more than wiping out the return on things such as guaranteed investment certificates, in most cases.

“A lot of people don’t connect those dots,” said Dan Hallett, head of research at HighView Financial Group. “Over 10 years, even 2-per-cent inflation really eats away at purchasing power.”

He worries, however, that reporting after-inflation returns may confuse average investors, many of whom still fail to understand the basic investment fees they’re paying.

All the more reason to get Canadian investors thinking more about inflation, Mr. Fell argues.

“The impact of inflation on investing is sort of forgotten about,” he said. “The only way I can think of turning that around is to highlight it in investors’ statements.”

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