Raw Material Procurement Challenges

In Ghana, Nigeria, and Burkina Faso, women in rural cooperatives produce some of the world’s finest shea butter- by hand, in conditions many global consumers will never see. Locally, it’s sold raw for $1 to $2 per kilogram. That same shea butter, once exported, repackaged, and labeled “organic” or “artisanal,” can sell in the U.S. or Europe for $30 to $50 or more. The difference? Branding. Packaging. Storytelling. Access to global markets. It’s not just shea butter. It’s coffee, cocoa, hibiscus, moringa, baobab oil- Africa exports raw, and imports wealth back in the form of marked-up goods. Meanwhile, the women who do the hardest work in the value chain often remain in poverty. This isn’t just an economic issue. It’s about power and narrative. The current system rewards ownership of the story, not just the substance. So what needs to change? 🔹 Investing in African-owned brands that can go beyond raw exports 🔹 Building infrastructure for local manufacturing and distribution 🔹 Creating access to retail markets, both on the continent and abroad 🔹 Shifting from “supplier” to brand owner, from “producer” to value creator Africa doesn’t need saving. It needs more control over its own value chains, and support for the people, especially women, who are the backbone of its raw material economy. Let’s stop asking why global brands profit from African goods and start asking what it takes to build our own. Image cred: @tanziehq #Africa #RawEconomy #ValueChain #Entrepreneurship #OwnTheNarrative

We’re all watching oil in the Strait of Hormuz. But the bigger story for 2026 might be fertilizer. A roughly 21-mile-wide chokepoint handles about one-third of the world’s seaborne fertilizer trade, including close to half of global urea and around 30% of ammonia exports. With that corridor now blocked, nitrogen, sulfur, and other key inputs are already seeing prices spike. While oil prices get the most "airtime," the quiet 33% increase in global urea prices this month is a diagnostic warning for the global economy and our food bills. For farmers heading into Northern Hemisphere spring planting, this is not abstract. Higher and more volatile fertilizer prices force immediate trade-offs: cut application rates, shift into lower-input crops, or leave marginal acres unplanted. Those decisions can lock in lower yields months before any “food crisis” appears in the headlines. From a policy and supply chain perspective, there are only three short-term levers: 🔹 Keep the corridor at least partially open and insurable 🔹 Accelerate alternative sourcing and logistics from non-Gulf producers, where spare capacity exists 🔹 Support the most exposed importing regions, especially in Asia and Africa, before shortages turn into instability If you work in agriculture, logistics, finance, or policy, this is the time to pressure-test assumptions. Are you still modeling fertilizer as simply “available at market price,” or are you treating Hormuz as the single point of failure it is? If the conversation stays focused only on oil, we risk missing where the second-order damage may land: on our plates. This is bigger than oil. It is a fertilizer, food security, and supply chain risk.

Procurement focus on OpEx 5x more than CapEx. Or get involved so late in CapEx it’s like lipsticking a pig. This can be dangerous to a company’s bottom line. So, how do we fix that? Let’s look at the differences first: CapEx Procurement: ➟ Purchases are often one-offs ➟ Large Purchases & for long-term use ➟ Likely custom made purchases OpEx Procurement: ➟ Weekly / Monthly payments ➟ Everything from software, raw materials to packaging ➟ Repeatable purchases How should we approach CapEx more effectively? 1. Don’t apply processes based on repeatability to CapEx CapEx is a one-time purchase and often something unique. Procurement teams working on CapEx projects need to focus on specifics: e.g. that all requirements are met, the budget & delivery timeline are delivered. 2. Track costs associated with change orders long after the contract has been agreed. Change orders can be a big part of Capital Expenditure and often even the scope changes long after the deal has been agreed. Procurement should ally with finance to keep track of the longer term financial outcomes. 3. Don’t muddy the waters between recurring costs and the one-time investment Specifications for CapEx are rarely “off the shelf”. You’re sourcing a unique product or deliverable. But some CapEx projects may have OpEx applicable components. E.g. a new building may well have recurring expenditures (e.g. network, maintenance, security). Keep visibility of these by separating them out instead of having them rolled into a blanket invoice. --- And here’s how Procurement can really add value in the sourcing process: ✅ In one major CapEx investment I supported 6 years ago, we put the emphasis on multimedia (blueprints, drawings, schematics) and full days of workshops and tours with all the bidders together in one place. This better communicates the requirements, helps the bidders ask the right questions and streamlines your time (not having to contact each supplier individually) ✅ Leave room in your RFP for true flexibility. Suppliers who deal with CapEx projects are often highly specialised and may well be in a better position to advise on the best approach to take than anyone from within your organisation. ✅ Make sure you have a detailed breakdown of costs in the bid responses. This helps proper analysis and supplier comparison. It also enables you to focus on the most expensive components to reduce the overall project expense. ✅ Use predictive insights and client reference calls By asking the right questions you can get a good barometer of how often and how much the change requests might cost. ——- What do you think of this advice? What would you add? Let me know in the comments. Hope that helps! Feel free to tag someone in your team who could find this helpful or ♻️ repost it to your network.

Finance Explained: Coffee just got a lot more expensive! Coffee futures in New York have climbed to the highest since 1997 on worries about crops in top growers, threatening to further raise costs for roasters and consumers. So like all things commodities, the best place to start is where does coffee come from. Brazil is the largest, accounting for approx. 30-40% of global production, Vietnam ~15%-20% and perhaps surprisingly Colombia only accounts for ~10%. Of this there are two main types produced Arabica and Robusta. The former you’re probably more familiar with in your Starbucks and accounts for the majority of production. This brings us to the why? A long, dry, and hot period earlier this year stressed Brazil’s Arabica crops. While, Vietnam experienced its worst drought in nearly a decade earlier this year, particularly in the Central Highlands, a key coffee-producing region. Here’s the science part... While October rains in Brazil promoted flowering, there are concerns about whether these flowers will successfully fixate on the branches. If they don’t, the crop is at risk because the flowers are the precursors to the coffee cherries. Therefore, sustained rainfall in the coming months is crucial for fruit setting and development. Adding to pressure is the possibility that a strong pace of arabica exports this year might result in low stockpiles by the end of the current season. Amid this uncertainty, farmers are choosing to sell only what is necessary, thus limiting the coffee supply in the local market. The result, a 3% move on Monday and the highest Arabica coffee futures price in 27 years. That £5 watermark for your morning cappuccino could be hitting your wallet soon!

1 litre of ethanol needs ~10,000 litres of water, reports India Today   This is a classic example of a "solution" creating more problems because we refuse to acknowledge the limits of our finite Earth.   Using #agricultural products to generate energy has not been a great success. Biomass technology is one such example.   Why?   Because agriculture based fuel, in this case #Ethanol, directly competes with Food, Fodder, Fertilizer, Fuel and Fibre. This I have been teaching as professor of Indian Institute of Technology, Bombay.   Excessive water usage adds to another dimension of the problem, in water-stressed areas.   Cutting down (a) on over-use, (b) mis-use and (c) in-efficient use of resoruces is the first and simplest step. In my understanding and calculation, each of these has 10-15% potential. Finite earth, having finite resources can not provide us with more and more.   I hope we all realize some day that “you and I can afford more, but nature cannot afford to supply us more and more”. Nitin Gadkari #TheFiniteEarth Ajitabh Sharma, IAS Ministry of Agriculture & Farmers Welfare, Government of India

We fired the operator. But the bacteria stayed. This is the most dangerous trap in the dairy industry: confusing the "Who" with the "Why." 🕵️♂️ The Crime Scene Sudden Coliform spikes in 1L Chocolate Milk. It wasn't every bottle. It was sporadic. Maybe 1 in 500. 🩹 The "Lazy" Fix *We blamed the filler operator ("He must have touched the inside of the cap"). *We re-trained the team on GMPs. *We increased CIP concentration. Two weeks later, the spikes came back. Worse. ⚠️ The Reality The spikes came back immediately. We stopped looking for a person to blame and started using the 5 Whys. We took the filler apart, piece by piece. Here is where the rabbit hole led us: 1️⃣ Why the spike? The filler nozzles were harboring biofilm, even after a full CIP cycle. 2️⃣ Why the biofilm? The cleaning solution wasn't reaching the backside of the valve seal. 3️⃣ Why wasn't it reaching? The rubber gasket had swollen and developed micro-cracks, creating a "dead leg" for bacteria to hide. 4️⃣ Why did the gasket swell? (It was brand new!) Because it was EPDM rubber. EPDM swells when exposed to high oil content. We run Chocolate Milk (Cocoa Butter = Fat). 5️⃣ Why were we using EPDM on a high-fat line? THE ROOT CAUSE: Procurement had switched to a "universal" gasket supplier last month to save $0.15 per unit. They didn't know the chemical compatibility difference between EPDM and Viton. 🔄 The Twist The food safety risk wasn't created on the plant floor. It was created in an office spreadsheet. If your Root Cause Analysis stops at "Human Error," you haven't found the root cause. You have just found a scapegoat. True RCA is uncomfortable. It forces you to look at: ⚙️ Maintenance logs 🧾 Invoice codes 📝 Engineering specs If you stop asking "Why" at step 2, you are just waiting for the next recall. What is the craziest "Root Cause" you’ve ever discovered? #dairy #dairyindustry #foodafety #rootcauseanalysis #qualityassurance ---------------------------------------------------------------------------------------------------------------- I’m Lizzy Ogot, a Food Scientist with hands-on experience in the industry, and dairy specifically has my heart. That is why I share these tips: to help fellow professionals manage their dairies better and solve the real problems that occur across the dairy value chain. I am constantly reading, learning, and unlearning new ways to fix these issues. Stuck on a specific problem in your plant? Let's troubleshoot it. Ask away in the comments, send me a DM, or email me directly at lizogot@gmail.com.

In modern #defensetechnology—from F‑35 fighter jets and Arleigh Burke destroyers to Virginia‑class submarines—rare earth elements like #neodymium (Nd), #praseodymium (Pr), #samarium (Sm), #dysprosium (Dy), #terbium (Tb), #lanthanum (La), #gadolinium (Gd), and #yttrium (Y) are absolutely critical. These elements enable high-performance magnets, precision guidance systems, radar arrays, lasers, and more—components at the heart of U.S. military superiority. Yet today, China remains the dominant global producer, accounting for around 270,000 metric tons—nearly six times the U.S. output (~45,000 metric tons). Worse still, #China controls ~90% of processing and refining capacity—and continues to exert strategic leverage through export restrictions. Here’s what the U.S. is doing to change that: • Moutain Pass Mine (California) – Operated by MP Materials it’s the only rare earth mine in the U.S., supplying elements like neodymium, praseodymium, lanthanum, and cerium. • Brook Mine (Wyoming) – Developed by Ramaco Resources, Inc., this site holds a vast deposit—including Nd, Pr, Sm, Dy, Tb—and represents the first new rare earth mine in the U.S. in 70 years. • Round Top Project (Texas) – A heavy rare earth element (HREE) deposit with unprecedented scale—housing 16 of the 17 rare earths—including all of our spotlights. Though not yet operational, it’s a critical candidate for future supply. While the U.S. works to develop these domestic sources, China still leads the world in the mining, refining, and magnet manufacturing supply chain . That dominance poses a direct strategic vulnerability. What’s changing? • The Pentagon has invested hundreds of millions into MP Materials—including a $400M stake and support for a 10,000‑ton magnet manufacturing facility—to build domestic capacity and break China’s stranglehold. • The Brook Mine is primed to deliver a fresh U.S. source of critical rare earths, injecting resilience into our defense supply chain. ⸻ ** Why This Matters:** 1. National Security – Rare earths are foundational to modern defense systems. Without secure, reliable access, U.S. military readiness is at risk. 2. Supply Chain Resilience – Reducing reliance on a single foreign source—especially one that can weaponize its market dominance—is non-negotiable. 3. Strategic Sovereignty – Investment in Mountain Pass, Brook Mine, and Round Top empowers the U.S. to produce and refine what it needs, here at home. ⸻ #RareEarth #CriticalMinerals #DefenseIndustry #SupplyChainResilience #USMining #MPMaterials #BrookMine #RoundTop #NationalSecurity #Neodymium #Praseodymium #Samarium #Dysprosium #Terbium #Lanthanum #Gadolinium #Yttrium

I asked 25 contractors a simple question: If low‑carbon concrete costs the same, why aren’t we pouring it everywhere? Turns out… ...we can start today. Most projects tested switched to low‑carbon mixes with no cost increase, or a tiny 5% bump, while cutting tens of thousands of tonnes of emissions across 109 pilots. That’s not a moonshot. That’s procurement with a pulse. On big jobs, costs trended lower thanks to scale. Performance concerns were manageable. Access wasn’t the blocker. Old habits were. For leaders in the built environment and real estate, this is the rare win where sustainability, whole‑life carbon, and business performance align. We reduce embodied carbon now. We future‑proof assets against regulation. We open doors to sustainable finance. And we don’t blow the budget. This is not a PR exercise. It’s a margin play with a climate tailwind. Concrete with up to 32% less carbon is available at market rates or close to it. In one multimillion‑dollar project, the “green” premium was under $2,000. If that’s a deal‑breaker, the problem isn’t the concrete. What to do next: ↳ Tell your teams to spec below‑baseline mixes as the default. ↳ Bid with suppliers who provide EPDs and proven low‑carbon options. ↳ Track embodied carbon alongside cost and schedule—every job, every pour. ↳ Start with foundations, slabs, and parking structures, then scale. We’ve waited long enough for perfection. “Good, available, low‑carbon” just lapped “someday tech.” Pour the future now. 🔔 TL;DR: Low‑carbon concrete at no cost or ~5% is here. Cut emissions, meet codes, unlock capital, protect margins. If your projects aren’t using it, that’s a choice, not a constraint. Access the report here: https://lnkd.in/gd_NextA #LowCarbon #Concrete #Construction #RealEstate #BuiltEnvironment #Decarbonization #SustainableFinance #WholeLifeCarbon #CircularEconomy #ClimateAdaptation #CircularEconomy #Sustainability

🚂 CO₂ is CO₂ - until you try to capture it!! Everyone treats carbon capture like a single engineering problem. But in reality, what you’re capturing from completely changes the game. Let’s break it down: 🧪 Flue Gas (Industrial CO₂) • Higher concentration (4–15%) • Hot, dirty, full of SOx/NOx — needs serious pretreatment • Promising for retrofits, tough on materials 🌾 Biogenic CO₂ • Comes from fermentation, biomass, etc. • Fewer impurities, sometimes carbon-negative • Easier to capture, harder to scale economically 🌬️ Atmospheric CO₂ (Direct Air Capture) • Just 0.04% in the air • Requires massive airflow + smart chemistry • Technically heroic. Economically brutal “for now” Different sources need different tech stacks, energy inputs, and infrastructure. That’s why “plug and play” carbon capture barely works in the real world. The winners in this space? They’re not just great at chemistry. They’re great at matching the right approach to the right source. 🧠 What’s your take? Which CO₂ stream do you think is most scalable in the next decade—and why? 👇 Let’s hear it in the comments. #sustainability #netzero #climatechange #climateaction #carboncapture Deependra Singh Shekhawat Hardik Abusariya Kirti Raj Singh Shekhawat Kushal Rathore Monika Wadhawan, PhD www.tracexero.com

Why It’s Not That Simple: The Brutal Truth About Drilling 3,000m Below Sea Level Namibia is on the edge of a transformative moment with the Venus discovery—a deepwater oil field hailed as one of the biggest offshore finds globally in recent years. But why hasn’t TotalEnergies made a Final Investment Decision (FID) yet? Let’s break it down with one cold, hard fact: > At 3,000 meters below sea level, subsea infrastructure must endure external pressure of over 300 bar (or 4,400 psi)— That's the equivalent of stacking the weight of 3 SUVs on every square inch of a pipe. To bring it closer to home: Your car tyre? Typically 2.2–2.5 bar. Venus subsea gear? Over 120x more pressure—non-stop, 24/7. And that's just the water above it. Now add: Reservoir pressures exceeding 15,000 psi Need for specialised alloys and advanced sealing systems 24/7 operational uptime with no room for mechanical error Has It Ever Been Done Before? Yes—but only a handful of ultra-deepwater fields globally have pulled it off, including: Brazil’s Pre-Salt Fields (Lula, Búzios – depths of 2,000–3,000m) Gulf of Mexico (Jack, St. Malo, and Tiber – 2,500–3,100m) West Africa (Girassol and Dalia in Angola – ~1,400–1,800m) The Venus project pushes these boundaries further due to: Greater depth High gas content in the region Technical complexity of subsea infrastructure Logistical challenges from a greenfield base in Namibia Why the Delay to FID? Because you only get one shot at getting this right. TotalEnergies is meticulously: Finalizing ESIA consultations Engineering infrastructure for extreme pressures Securing the right supply chain and partners Balancing cost, risk, and local content obligations The Bottom Line This isn’t just oil drilling—it’s extreme engineering under crushing ocean forces. Getting to FID on Venus means building systems that don’t crack, corrode, or fail in one of Earth’s most hostile environments. When Namibia finally hits first oil, it won’t just be a success story. It’ll be a technological and geopolitical milestone. #NamibiaOilAndGas #VenusProject #TotalEnergies #DeepwaterEngineering #EnergyTransition #FID #OilExploration #OffshoreEnergy #TLCNamibia #DaronNamibia #ExtremeEngineering #LocalContent #SubseaTechnology #AfricanEnergyFuture