Tag Archives: green
Little Progress Made On Defined Benefit Pension Deficits
http://www.ft.com/cms/s/0/1efb8178-dbef-11e2-8853-00144feab7de.html#ixzz2XEbfdZZ1 By Josephine Cumbo The UK’s biggest companies have made little progress in cutting pension deficits, prompting calls for them to find new ways of reducing scheme liabilities. Research by PwC, the professional services group, found that FTSE 350 companies’ ability to support their defined benefit, or final salary, pension scheme promises remained far below that of 2007, before the recession. A PwC index, which tracks the overall level of support provided to defined benefit schemes out of a possible score of 100, now stood at 75, only a one-point improvement since June 2012. The current level of 75 was well below the 88 achieved pre-recession, said PwC. If a level of more than 90 is achieved over the longer term, this would indicate that companies’ legacy defined benefit pension issues were under more control. “Companies sponsoring DB pension schemes need to work harder to find returns in this new economic environment,” said Jeremy May, pensions partner at PwC. “This includes looking to non-traditional asset classes to achieve the required return, while meeting the schemes’ cash requirements over an appropriate timeframe. “Companies also need to be prepared to explore a wider range of ideas, such as longevity hedging, asset swapping and cash flow buy-ins to meet the schemes’ needs.” Pension scheme sponsors were not making the most of the flexibility in assessing funding status and setting recovery plans, “meaning that often too much money is tied up in overly prudent assessments of deficits”, added PwC. The analysis comes two months after the Pension Protection Fund gave its clearest signal yet to trustees to take a more lenient approach with companies struggling to plug their deficits. In its annual guidance, the PPF, which pays the pensions of defined benefit scheme members when their employer has gone bust, said that, where there are significant affordability issues, trustees may need to consider whether it is appropriate to agree lower contributions. This may also include a longer recovery plan, it said. The analysis comes as private sector schemes are starting to benefit from an upturn in the value of assets that underpin pension scheme funding. Last month, the combined deficit for 6,316 private sector schemes fell by £71bn to £185.5bn at the end of May 2013, largely due to a rise in gilt yields. Pension scheme deficits soared to record highs last year as a result of falling gilt yields, driven down by the Bank of England’s quantitative easing policy. Continue reading
Crop Crisis: Why Global Grain Demand Will Outstrip Supply
To meet global demand, grain production needs to double by 2050. It’s not going to make it. International Maize and Wheat Improvement Center Since the time of Malthus, humanity has worried whether there would be enough food to feed the growing population. Such fears were always overcome and doomsayers all proven wrong: there was always more land to grow our crops when existing croplands failed to deliver, and new ways to get more yield from old crops. Today our planet appears very finite, and the only places to expand agriculture are in our remnant natural grasslands and tropical forests. And the demand for more agricultural crops is relentless, due to not only our rising population, but more importantly, our rising prosperity. The expected 4 billion new members of the middle class who will join the rest of us by 2050 will likely demand more dairy and meat. These require an enormous amount of grains to produce. Add to these the demands biofuel places on agriculture, and we need to boost global agricultural production by 60% to 110% by 2050. To put this challenge in a time perspective, that kind of increase took our ancestors 10,000 years to achieve. So how are we doing? My research team recently published an analysis in PLOS ONE of the local to global scale performance of maize, rice, wheat and soybeans. These are the top four global crops, collectively responsible for nearly two-thirds of all agricultural calorie production. We found that current rates of productivity improvements are nowhere near the rates of productivity gains (2.4% per year) required for growing demand. Instead of the required doubling of crop production by 2050, at this rate the yield increase will be only 38% to 67%, with the problem more acute for rice and wheat. Australia, is the ninth largest global producer of wheat and a major exporter. Its wheat yields have declined at 0.7% per year. In fact, we observed negative yield trends in around 80% of Australia’s wheat cropland areas. Productivity was rising in only a few of the important wheat cropland areas: the South Eastern statistical division in New South Wales; Darling Downs in Queensland; Goulburn, Western district and Central Highlands in Victoria; south eastern region in Western Australia; and outer Adelaide, Murray Lands, and Eyre in South Australia. Even in these regions the rates of wheat productivity improvements were below the 2.4% rate required to double wheat production, except for south eastern region of New South Wales, where we estimated the rate to be 3.4% per year. Does this mean Australians won’t be able to feed themselves, much less feed others, with wheat? It seems very unlikely at only 0.7% per yearly declines. This decline however may worsen as Australian agriculture matures. Australian wheat yields are limited by lack of nutrients and of water, with the latter being a bigger factor as we reported in a paper published in Nature last year. In some areas of Australia wheat productivity was already at the maximum possible value. Looking beyond Australia, we found many countries where the gains in crop productivity are less than those required to keep pace with their population growth. In several countries – such as Guatemala and Kenya – productivity of maize, a significant source of daily dietary energy, is declining and population is growing. In Indonesia – the third largest rice-producing nation on Earth where rice provides about 49% of daily dietary energy – productivity gain is too low to keep pace with population growth. In India, China, Philippines and Nepal, productivity improvement rates in rice are just about enough to maintain per capita production at current levels. Although supply will not meet demand by 2050, all is not lost. We can close the demand–supply gap in one of many ways. We can invest more to boost crop productivity in the faltering regions that we identified. We can bring more of our remaining natural lands under production (but wheat alone would require 95 million additional hectares, more than the total area of New South Wales). We can reduce food waste, which already accounts for nearly half of global crop production (unfortunately, waste sometimes is difficult and expensive to reduce, as in developing nations where it occurs between farm and table due to lack of storage and transportation). Perhaps most controversially, we can change to more plant-based diets. Nobody really knows what members of the new middle class will choose to eat. History shows time and again that as people join the middle class, they look for more dairy and meat. But if they go against previous trends and decide to keep consumption of animal products low – if those of us already in the middle class reduce our meat consumption – we may all have enough to eat after all. 20 June 2013 Continue reading
Global Trade Of Wood Chips Has Soared Over Last Decade
18.06.2013 There has been a steady increase in the trade of wood chips globally over the last ten year, with imports reaching record-high levels in 2012. This is according to the Wood Resource Quarterly, which reveals that Japan, China, and Turkey were the countries with highest import levels, while Japan and China were responsible for 83 per cent of all hardwood chips traded last year. It has been suggested that this is as a result of significant investment in pulp capacity in the country. Over the last decade, traded volumes of wood chips have increased every year from 2000 to 2011, apart from in 2009 when demand for wood fibre was reduced and global production of pulp fell by around ten per cent. Between 2009 and 2012, the amount of chips traded increased by 6.5 million tonnes, taking the total to more than 31 million tonnes, with a value of more than $5 billion (£3.2 billion). This figure is slightly below the all-time high reached in 2011. In addition to the increased demand in China, Turkey has also contributed to the rise in chip imports as a result of the expansion of its production capacity for MDF. Although Japan remains the largest importer of wood chips in the world, the other nations making up the top ranking list have changed dramatically over the last five years. In 2011, Japan imported 11 million tonnes, down from a record high of 15 million tonnes in 2008. Whereas it was a net exporter a decade ago, China is now the second largest importer globally and is expected to continue to increase the volume of chips it brings into the country. Along with the expansion in pulp production, there is a distinct lack of domestic fibre sources in China and so its reliance on imports is increasing year after year. According to the report, China will overtake Japan and become the world’s largest importer of wood chips within the next two to three years. Japan and China are a long way clear at the top of the leaderboard for global wood chip trade, particularly in terms of hardwood chips, as the two countries were responsible for 83 per cent of the world’s total imports of the produce in 2012. Finland – the world’s third largest importer of wood chips – has been required to trade with Estonia, Latvia and Lithuania in order to meet its forestry-produce needs and this level of business has steadily increased in the last few years. According to the Wood Resource Quarterly, global trade of wood chips is expected to continue to increase in the coming years, largely because the main countries that are expanding their production capacity – particularly China and Turkey – have very limited natural resources domestically. Furthermore, a number of forestry companies are choosing to expand their sources for supply and import wood chips as an alternative to obtaining local fibre supplies. As a result, it can expected that those countries with expanding forestry industries will continue to experience solid trade growth in related produce. HD FestForest provides forest management in Estonia, Latvia and Lithuania and is a subsidiary company of HedeDanmark. Continue reading




