DAIRY PRODUCTS

AMERICAS: The US dairy trade deficit widens to more than $1 billion.

US dairy imports and exports rose to record levels in 2005 whilst the trade deficit widened to more than $1bn. The growth in exports was driven by strong global demand for skimmed milk products; the US was the only significant exporter with surplus stocks. The value of cheese imported increased 3.7% to $1,006m, more than three-quarters of which originated in Europe. The growth in artisanal cheese making, especially in key dairy states such as Wisconsin, is further evidence of growing demand for quality products in this sector.

JAPANESE RETAILING

ASIA: Ageing population will impact the structure of Japanese retailing.

The Nomura Research Institute recently reported that the Japanese retail industry was approaching its fifth significant 'turning point' since the Meiji restoration. This will be instigated, inter alia, by demographic factors ( ageing population, declining birthrate), polarising incomes and planning reform. It was found that the 'seniors' market is less inclined to travel to shop for specialist and luxury items and is more attracted to the concepts of leisure pursuits and safety. The neighbourhood shopping centre was identified as a key beneficiary.

MANAGEMENT CONSULTANTS

EUROPE: UK public sector expenditure on management consultants continues to grow.

The UK Management Consultancy Association has published figures showing that public sector expenditure on management consultants increased by 23% in 2005 to £2.2bn. The wider drive to contract out services by local and central government and their agencies has been estimated to lead to an outsourcing market that will be worth £64bn by 2009. This is, however, not a risk free environment; Accenture recently quit the controversial NHS IT modernisation project and, in the process, made a provision of £240m against potential losses.