China-Canada Trade War Shook Global Food Markets

China-Canada Trade War Shook Global Food Markets

China imposed a 100% tariff on Canadian rapeseed oil and meal, causing a sharp price drop and increasing global food trade uncertainty. The move retaliated against Canada's tariffs on Chinese EVs, steel, and aluminum. China also placed smaller tariffs on Canadian pork and seafood. With rapeseed exports to China at 6.39 mn tons in 2024, Canadian farmers faced trade uncertainty weeks before planting. Canola futures in New York fell over 6%, while China's rapeseed meal and oil prices surged. The tariffs take effect on 20 Mar-25. (Bloomberg)

 

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SIDO FY24 Analyst Call – KTA
- Robust FY24 performance:
o 10% topline growth, driven by vol. increases across all business segments, both domestically & internationally. Int'l business contributed 7% with 36% YoY growth.
o Net profit grew 23%: due to higher sales growth & reduced raw material cost & overall efficiencies.
- FY25 Strategies:
o Targeting >10% growth, export contribution to increase to 9-10%.
o To expand distribution channels and launch new products tailored for Gen Z & Millennials.
o Tapping into collaboration with IDI.
o ASP increase will be very selective and targeted. First ASP increase in Jan-25 for herbals and milk & coffee.
o Margin expansion with lower raw material prices .
o A&P ratio to be maintained at 10-12% level.
o CAPEX spending will be on maintenance, marketing budget and technology improvement (IDR115-175bn budget).
o Maintain 90% DPR.