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Food Industry Sales Expansion and Improvement Alliance Symposium

Time: November 22, 2020 (Wednesday) 10:00~12:00 Venue : Taipei Import and Export Business

Association, 11th Floor, First Conference Room Moderator: Director Liao Qicheng (represented by Senior

Researcher Chen Liting) Agenda: 1. Chairman’s Speech

2. Topic Description

1. Important developments in the overall global economic and trade environment (China Academy of

Economics/Deputy Director Yang Shufei) 2. Global food industry trends and focus (Institute of Food Science/Senior Researcher Chen Liting)
(Using AI to generate images)

3. Topic Discussion

1. The possible impact and response to domestic and foreign economic and trade environment changes such as the Israeli-Palestinian conflict on the domestic food industry

and corporate operations. 2. Recent issues of concern to the domestic food industry and the need for policy coordination.

4. Temporary motion
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Food Industry Sales Expansion and Improvement Alliance Symposium

Global Food
Industry Trends and Focus Chen Liting
Food Industry Development Research
Institute 2023.11.22

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Briefing
Global food ÿPrice
industry trends and outline
focus in the second half of 2023 long

InflationÿOperation

short term

LayoutÿRegulatory ChangesÿIsrael -Food Inno

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price inflation

Pressure on international food prices eases, but uncertain risks remain

FAO, Food and Agriculture Organization of the United Nations annual data monthly data

2014-2016=100

200 Uncertainty exists, and the prices of most raw materials continue to be revised downwards, but the decrease is smaller.

Food Price Index Meat Price Index Dairy Price Index

180
Cereals Price Index Oils Price Index Sugar Price Index
160

140

120

100

80
(Continued slight downward revision)

60

40

20

Data source: FAO (2023/11/3), analysis and compilation by the Institute of Food Science and Technology (2023/11)

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price inflation

Price changes in different categories - differences but similarities

Food Prices ÿ The food different categories FAO, Food and Agriculture Organization of the United Nations

price index averaged 120.6 points in October 2023, a continued decrease of 0.7 points (0.5%); a decrease of 14.8 points (10.9%) compared with the same period last year. ÿThe slight decline is mainly related to lower

prices of sugar, cereals, vegetable oils and meat; only the dairy price index rebounded this month. grain prices

ÿ Cereal prices fell by 1.3 points (1.0%) in October, down 27.3 points (17.9%) from the same period last year. ÿ The U.S. supply of wheat in October was

higher than expected, coupled with fierce export competition, prices fell 1.9%. The supply of corn in Argentina has decreased, but seasonal supply growth in the United States and export competition from Brazil have limited overall price increases. ÿGlobal import demand is sluggish, and international rice prices fell by 2.0%

in October.

vegetable oil price

ÿ The decline in international palm oil prices offset increases in soybean oil, sunflower oil and rapeseed oil prices. ÿInternational palm oil prices have fallen

again, which is related to the increase in seasonal production in major producing countries and the long-term sluggish global import demand. Biodiesel demand is strong (especially in the US) and global soybean oil prices have fallen after two consecutive months of decline

There is a rebound. International sunflower seed oil prices rose slightly due to stable global import purchasing demand. Dairy

product prices ÿ International

milk powder prices averaged 111.3 points in October; they rebounded after falling for nine consecutive months, but were still down 28.0 points (20.1%) from the same period last year. ÿThe increase in global milk powder

prices is related to the recent and long-term surge in import demand, especially demand in Northeast Asia. Due to tight milk supply and climate factors in Western Europe, the production and price of dairy products are still uncertain. ÿ The slight decrease in international cheese prices is

related to the continued depreciation of the euro against the US dollar and the increase in export supply.

The average meat price

index in April was 114.5 points, an increase of 1.5 points (1.3%). The increase in international pork quotations in April is related to the increase in import purchases from Asian countries and the supply constraints of major exporting countries due to high production costs and animal health issues. ÿThe price of

poultry meat has rebounded after falling for nine consecutive months. This is related to the widespread outbreak of avian influenza in many regions, limited supply, and increased import demand from

Asia. ÿ The meat price index was 112.9 points in October, falling for four consecutive months; it fell 3.9 points (3.4%) from the same period last year. ÿPork prices have fallen

for three consecutive months, which is related to sufficient export supply but continued sluggish import demand (especially in parts of East Asia). Poultry meat prices rebounded slightly, mainly due to continued restrictions on supply from major suppliers due to avian influenza, coupled with consumer demand

Consumer demand for relatively affordable poultry meat is strong. Beef and mutton prices rose slightly, related to continued strong import

demand. sugar price

ÿ The sugar index in October was 159.2 points, which was not as high as the continuous rise in the previous two months, but still 50.6 points (46.6%) higher than the same period last year.

ÿBrazil ’s output has grown strongly, and factors such as Brazil’s exchange rate against the US dollar have inhibited the growth of sugar prices. However, the decline in sugar prices is still constrained by concerns about tightening global supply and logistics restrictions in Brazil.

Data source: FAO (2023/11/3), analysis and compilation by the Institute of Food Science and Technology (2023/11)
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Operation layout

retail channel
Raw material supply food manufacturing consumer market

(Domestic and foreign) (Consumer Market/Business Market) (need/want)

Catering Services

Facing the environment in 2023

Cost Operation demand

pressure layout strategy actions changes

(raw materials, labor...) (Changes in consumer behavior, weakening purchasing power...)

The pressure on international raw material prices has TYSON FOOD, Kellogg's, Coca-Cola, Pepsi... ÿ Product innovation, reaching

been alleviated and supply stability issues new consumers

have been disrupted by geopolitics and policy norms

Distributor’s own brand + affordable indulgence +
(Russian-Ukrainian war, Israeli-Palestinian conflict...) (Export restrictions...)

Data source: Analysis and compilation by the Food Institute (2023/11)

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Operation layout

retail channel
Raw material supply food manufacturing consumer market

(Domestic and foreign) (Consumer Market/Business Market) (need/want)

Catering Services

Facing the environment in 2023

Physical
Second half of 2023
cost , demand, pressure, changes , and restructuring
Operational Renovation. strengthen

layout of international food manufacturers

actions are accelerating
strategic action

(raw materials, manpower...) (Changes in consumer behavior, weakening purchasing power...)

The pressure on international raw material prices has TYSON FOOD, Kellogg's, Coca-Cola, Pepsi... ÿ Product innovation, reaching

been alleviated and supply stability issues new consumers

have been disrupted by geopolitics and policy norms

Distributor’s own brand + affordable indulgence +
(Russian-Ukrainian war, Israeli-Palestinian conflict...) (Export restrictions...)

Data source: Analysis and compilation by the Food Institute (2023/11)

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Operation layout

The restructuring and constitution

Case
Renovation. strengthen
consolidation of international food manufacturers is accelerating

Expand points closure mergers and acquisitions operations Efficient staff

…
Set up factory Factory building transfer Reorganize logistics cut

ÿTyson announced in November Hulk U.S. vegetable cans ÿKellogg’s spin-offÿB &G Foods to ÿWeihaomei increases ÿBeyond Meat continues
ÿNissin Foods plans to invest
that it would close two more Kellanova (snacks) and WK the layout and benefits to lay off employees
US$228 million in a new instant

chicken factories (due to old sells two production lines to Kellogg Co (North American cereal) of US logistics centers
noodle factory in the United States,

factories, supply and Seneca Foods ÿHershery a company and goes public
which will be put into operation in

August 2025 to expand its U.S. business. demand operating pressure, etc.) strengthens higher level of innovationÿADM
reconsiders
ÿPlant- based dairy manufacturer Miyoko's
US$300 million plant-based product
Creamery will close
layoutÿRitz International closes
processing plant in
January 2024
2 brands of SnackFutures VC

Data source: Food dive, Foodnavigator, etc., analyzed and compiled by the Food Institute (2023/11)
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regulatory changes

Changes in domestic and foreign policy norms

Food standards and additives in various countries are continuously revised

For details, please refer to [International Food Industry Export Sales Environment and Business Opportunities Analysis Bi-monthly Inform
Case: Policies and regulations have an impact on industrial development and operations

supply chain changes food safety Net zero carbon emissions

Taiwan Carbon Exchange was listed on 8/7

Japan’s Fukushima nuclear wastewater began to be discharged on 8/24 • Operating projects are divided into domestic carbon rights trading,
Russia Withdrew from the Black Sea Grain Agreement on 7/17 • Russia has Three major projects include foreign carbon rights trading and carbon

terminated its participation in the Black Sea Grain Agreement. The risk of war entering • Japan started discharging nuclear treated water on 8/24,
consulting. In the early stage, the Carbon Exchange will take the lead

As of November, 3 emissions have been carried out. Close to various countries

the Black Sea region has increased significantly. Most ships may be in carbon consultation and education and training. In the future, it will

and global marine ecosystems, there are varying degrees of hidden

unwilling to enter the war zone to carry goods, which will affect the connect the stock exchange and the Carbon Exchange to promote

concerns about aquatic products and food supply chains .

fluctuation of international grain prices. the sustainable development of the industry.

*India, a major rice exporter, restricted some rice exports in July

Data sources: Key comments, CTI, Green Queen and other websites, analysis and compilation by the Food Institute (2023/11) 9
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regulatory changes

Follow-up observations of international norms

In September 2023, the

food supervision and authority Comply California makes history

with food safety regulations
organizational structure will vs
Market supply and demand structure
be reorganized, integrated and simplified. single responsibility 4 food additives linked to disease
Food regulatory integration of multi-jurisdictional issues
FDA legal
but prohibited in California
(The California Food Safety Act)

The manufacture and sale of related foods is

prohibited (effective from January 1, 2027) ÿBrominated
vegetable oil (BVO) ÿPotassium bromate
(potassium bromate) ÿPropylparaben
(propylparaben) ÿRed Dye No. 3 3)

Related substances linked to health complications such as ADHD, neurological damage and increased risk of cancer

Data source: FDA, Food Dive, etc., analyzed and compiled by the Food Institute (2023/11)

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Israel-Food Innovation

Israeli-Palestinian

Conflict -Focus on the development and changes of global food innovation-

The direct impact of the Israeli-Palestinian conflict on the global food supply chain is relatively limited; however, indirect variables such as crude oil prices and transportation exist.

Israel - an important developing country in global food innovation

Food technology is a focus of the Israeli economy.

According to GFI research, global investment in alternative proteins ranks first in the United States and second in Israel.
ÿImported products: Import value of China’s food industry in 2022

NT$317.6 billion. Israel and Pakistan are not my country's important Quickly supply frontline meals, create new food products and mobilize funds to promote frontline projects...

food trade partners. Taiwan

In 2022, NT$180 million will be imported from Israel.

ÿExport products: China’s food industry export value in 2022

NT$112.7 billion. Taiwanese food is rarely exported to Israel and

Palestine. Israel passes amendments to public health protection law,

Simplify food import procedures; at the end of 2022, frozen grouper

steaks and fillets from Taiwan will be exported to Israel for the first time. same

Participated in the Bowan International Food Exhibition. Only religion and geography

Political, trade attractions may temporarily disappear.

Data source: Food Dive, etc., analyzed and compiled by the Food Institute (2023/11)
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AI influence

artificial intelligence

You told him before that you wanted him to learn how to do it

Artificial intelligence content

Content

is king generation whirlwind. Irreversible trend subversion. redefine

Generative AI
Thinking Now he tells you and lets you decide what to do

Low threshold for application - Convenient/easy for

bout positive

hug
everyone to use Wide range of applications - serial connection/routine daily ÿ high-end research

Opportunity
CEO

Rule anxiety
Take
to renovate
subversion

I
risks

Source: Food Institute ITIS Team (2023/11)

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AI influence

destructive
Generative AI
D disruptive I innovation

innovation

Existing model

Generative AI

Thinking Mainstream

market
niche
market
Dimensionality reduction + continuous innovation

bout
Generative text/image/video/recipe/flavor/data…

I Note: The solid line is the current market scale, and the dotted line is the

future market scale. Data source: meet.bnext et al. (2023/06), Food Institute ITIS Team (2023/11)
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AI influence

Generative pictures

Setup command

Buy a food combo for yourself on the

beautiful beach at the

supermarket (style: comic book)

Thinking
bout
change what

I Source: 1233rf, Food Institute ITIS Team (2023/11)

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AI influence

Generative pictures

Setup command

Eat some frozen fried rice when you’re hungry at the

office (style: comic book)

Thinking
bout
change what

I Source: 1233rf, Food Institute ITIS Team (2023/11)

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AI influence

AI’s disruptive innovation

and transformative power in the food industry

food

application

Let AI

be an intern
Not the boss

As long as you know how to ask

good questions, you can introduce generative AI at work

ÿGoodÿFastÿAccurateÿC
Providing creative ideas is not

just following instructions

AI is a Viable Solution
Source: wholefoodsmagazine, Foodnavigator, etc., Food Institute ITIS Team (2023/11)

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AI influence

+[Robot] +
AI technology has joined the global food ecosystem application
[Automatic
Equipment] +[Food Supply
Personalized Nutrition • Recommend personalized nutrition plans based on unique needs and preferences.

precision agriculture • Deep learning optimizes crop yields and improves soil quality.

Supply chain optimization • Machine learning analyzes supplier, logistics, inventory and demand data to optimize supply chain resilience.

Innovation and Product Development • Analyze market trends, consumer feedback and ingredient data.

Sustainable food production • Anticipate demand, use resources efficiently and find new ways to reduce food waste again.

Predictive Maintenance • Predict when equipment is likely to fail and proactively schedule maintenance and repairs.

Food Quality and Safety • Monitor food production lines to detect anomalies or defects that may pose a risk to consumers.

Yield optimization • Analyze large amounts of food production data, identify patterns, and optimize production processes.

Trend and Marketing Forecasting • Analyze large amounts of data from various sources to determine foot traffic, location demand, taste/flavor trends, etc.

Data source: EnterpriseAppsToday, MunchEm and other websites, compiled by the ITIS team of the Food Institute (2023/11)
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AI influence

Case: 4 major directions of AI application for Japanese food manufacturers

ÿBuilding a dedicated consulting system within the

Inherit and
company ÿInheriting key factory technologies
continue the digitization and inheritance
with AI ÿCooperation with automatic microbial culture
of key skills in important business within the company
control system ÿCriteria for judging carton damage

ÿFinding key inspirations corresponding to needs

Develop
ÿAutomatic correction of packaging that shortens Meiji establishes interactive website for image generation
assistants for product design
Japanese food manufacturers ÿHealth status as the theme. Generate AI model diagrams.
the process ÿAccelerating automatic generation
concepts, flavors, looks, labels
4 ÿYou can set characters, situations, and
of packaging design ÿIncreased cases of improved
situations. ÿShare funny daily resonances and promote maintaining health.
major packaging design with AI ÿUnimaginable flavor pairing to improve partial eclipse

Make early

ÿFood testing with continuously improved accuracyÿAI

and more accurate judgments to predict market conditions

assistant to assist store managers in business

and respond to various changes in real time

directions ofThe
AIpublicity
application
ÿTongtong Information Network trial chat service
and application of image- creating topics are
ÿThe increasingly popular use of AI in advertising marketing
automatically generated and chats are made daily.

New advertising formats and high online attention

Data source: Observation of dynamic information such as Meiji and other Japanese industry and corporate websites, ITIS team of the Food Institute (2023/11)

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international exhibition

2024 International time

Exhibition US International Consumer Electronics Show CES 2024/1/9-1/12
Philippines International Packaging and Food Processing Exhibition (Manila) 2024/1/31-2/2

FOODEX JAPAN (Tokyo) 2024/3/5-3/8

British International Food and Beverage Processing Equipment and Packaging Machinery Exhibition (London) 2024/3/25-3/27

2024 Vietnam Packaging and Food Processing Exhibition (Ho Chi Minh)

Singapore International Food Exhibition (Singapore)

2024/4/3-4/5
2024/4/23-4/26

Seoul International Food Exhibition (Seoul) 2024/6/11-6/14

Thailand International Packaging and Food Processing Exhibition 2024/6/12-6/15

(Bangkok) Taipei International Food Exhibition (Taipei) 2024/6/26-6/29

Data source: Food Institute (2023/11)

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FUN FOOD TAIWAN 2024

2024
Selection of new food trends

Wait for you

Create highlights together

Registration date 1/8-3/15

Welcome to follow the new food trend official website

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FUN FOOD TAIWAN 2024

Data source: Food Institute’s New Taste Food Trend Team (2023/11)
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20
23

20
22

Data source: Food Institute’s New Taste Food Trend Team (2023/11) twenty two
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Use selection to give the

stage, use cases to tell

Let's do it! stories, use highlights to market

Taiwan, and use coaching to enhance the ind

Data source: Food Institute’s New Taste Food Trend Team (2023/11) twenty three
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LEAN
Clean and high value

Definition and ÿFood additives: Re-examine the additives used in products, do not use them unless necessary or adjust the combination of food ingredients to make the product

spiritual products respond to consumers' The product is cleaner and safer.

demands for safe and healthy food and ÿProcessing process: By reducing or optimizing processing procedures, avoid damaging and reducing food-related quality factors such as nutrients. ÿRaw material ingredients: Improve raw

information transparency. Non-essential

material control through raw material inspection, quality certification, use of natural ingredients, etc. ÿPackage labeling: clearly convey product information and make it
ingredients are reviewed, removed and

the manufacturing process strengthened easy for consumers to read and understand. ÿProduct information: Product raw materials, manufacturing plants, product quality and

to increase the clean and safe value of the product .

other information are fully disclosed and can be queried.

twenty four

Data source: Food Institute’s New Taste Food Trend Team (2023/06)
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DESIGN
Design experience

The definition and ÿVisual aesthetics: Products and packaging have design aesthetics and unique concepts. ÿFive

spirit strengthen the sense of the times

-sense experience: Strengthen the visual/hearing/smell/taste/tactile sensations provided by the product to create consumers’ feelings of pleasure,
and visibility of the product , emphasizing
novelty, etc. ÿTexture structure: The taste of the product is layered, and the texture is quite different
consumer-centered thinking through

systematic design thinking to create from similar products. ÿCultural stories: The products have distinctive images of Taiwanese local ingredients, history and culture,

new values and attractions for the

art or modern coolness. ÿTarget customer group: The product positioning is clear, and the target customer group marketing strategy is precise and systematic.
product such as visual aesthetics,

culture and art, five senses and food experience.

Data source: Food Institute’s New Taste Food Trend Team (2023/06)
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SUSTAINABLE
Convenient and sustainable

The definition and ÿUniversal design: Meet the convenience features that different consumers need for products. ÿUse all food

spirit are in line with environmental needs ingredients: Reduce the amount of waste generated during product manufacturing. ÿCarbon footprint

such as the fast pace of life and ecological

reduction: Strengthen the diversified use of local ingredients and shorten food transportation miles. ÿProduct
sustainability. The products are more

convenient and more environmentally friendly, preservation and preservation: Use formula adjustment, process improvement, sterilization treatment, modified atmosphere packaging and other methods to extend

the shelf life of products compared with the

meeting consumer needs and expressing a love for the earth.

current same items. ÿUse of environmentally friendly packaging: Products are not over-packaged, packaging materials are incorporated into environmentally friendly alternative packagi

Data source: Food Institute’s New Taste Food Trend Team (2023/11) 26
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2.0

Data source: Food Institute’s New Taste Food Trend Team (2023/11) 27
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Fun Food Taiwan 2.0

Taiwanese food echoes and joins the future of tomorrow's health and cleanliness, good food, local characteristics, contentment for the

elderly, and a sustainable earth.

Strengthen 3 major values

1. Friendly food (clean label, nutritious and healthy, palatable texture, local supply, full utilization) 2. Beautiful

experience (visual appearance, universal design, life experience, interactive sharing, cultural addition) 3. Low

2.0 carbon realization ( Process carbon reduction, water and electricity saving, low-carbon packaging, carbon emission actuarial calculation, storage exte

(First edition. After multi-party industry discussions in 2024, the 2025-2029 selection indicators will be added)

Data source: Food Institute’s New Taste Food Trend Team (2023/11)

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Food Industry Sales Expansion and Improvement Alliance Symposium

Time: November 22, 2020 (Wednesday) 10:00~12:00 Venue : Taipei Import and Export Business

Association, 11th Floor, First Conference Room Moderator: Director Liao Qicheng (represented by Senior

Researcher Chen Liting) Agenda: 1. Chairman’s Speech

2. Topic Description

1. Important developments in the overall global economic and trade environment (China Academy of

Economics/Deputy Director Yang Shufei) 2. Global food industry trends and focus (Institute of Food Science/Senior Researcher Chen Liting)
(Using AI to generate images)

3. Topic Discussion

1. The possible impact and response to domestic and foreign economic and trade environment changes such as the Israeli-Palestinian conflict on the domestic food industry

and corporate operations. 2. Recent issues of concern to the domestic food industry and the need for policy coordination.

4. Temporary motion