World Agriculture
Developments, trade, data, and topics in world agriculture
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Brazil's rice production to grow by 4% in 2014~ ~ brazil's rice production to grow by 4% in 2014 2014-07-11 10:12 | source: China Grain Network | according to a report released by the Brazilian Institute of Geography and Statistics (IBGE), Brazil's rice production in 2014 is expected to be 12.3 million tons, an increase of about 4.23 percent over the previous year's output of 11.76 million tons. The average rice yield in 2014 is expected to be 5.3 tons per hectare, an increase of about 6% over the previous year's 5 tons. Improved planting and cultivation techniques have boosted Brazilian rice yields. IBGE also expects the area of rice harvested to grow by about 2 per cent this year. Brazil's General Administration of Commodity Supply (Conab) predicted in June that Brazil's rice production in 2013/14 would be 12.25 million tons, lower than the earlier forecast of 12.632 million tons, but up 4% from the previous year. USDA expects Brazil's finished rice output to be 8.6 million tons in 2013/14 (April to March of the following year), up 8% year on year. (Source: Master Boyi
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The sown area of corn in the United States may be lower than the forecast value in March.~ ~ the sown area of corn in the United States may be lower than the forecast value in March. 2014-06-20 09:59 | source: China Grain Network | the USDA will release its quarterly grain inventory report on June 30, along with a report on plantings. Darrell Goode, an agricultural economist at Illinois State University in the United States, said that these two important reports will set the tone for the corn market, because then the corn crop will enter a critical growth stage. Given that corn futures prices have fallen by more than 40 cents a bushel, or nearly 9 percent, in the past month, these two reports are of particular interest to the market this year, as unexpected data could lead to intense volatility in the corn market. In terms of the sown area report, the USDA's sowing intention survey report released in March showed that the sown area of corn in the United States will reach 91.691 million acres this year, 3.674 million acres less than in 2013. After the release of this report, the market speculated that the actual sown area would exceed the intended level, because the total crop sown area data in the report may be under-reported, that is, the actual total sown area is higher. However, due to the late planting of corn in the northern part of the United States this year and the stronger trend of soybean price than corn price in the late planting season, this means that the soybean planting area in the above areas may be higher than the US planting intention data in March, and the abandoned farmland area may also exceed the forecast level in March, which means that the corn planting area may be lower than the planting intention data in March. Although the June report will include intended data on unplanted areas, the reported area data should be close to the actual area data released at the end of this year. Unless there is a significant difference between the data reported in June and the planting intention data in March, the market's forecast for corn production will continue to change around factors such as weather and yield expectations. Considering that the crop progress weekly report released by the US Department of agriculture in the latest week shows that the excellent and good rate of corn has reached 76%, the best level in the same period in 20 years, the market expects that the corn yield per unit area this year will reach the historical average level or exceed the trend line level. (Source: Boyi Master)
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Informa raises global corn yield forecast~ ~ Informa raises global corn yield forecast 2014-07-11 09:56 | source: China Grain Network | according to a report released by the Informa Economic Corporation, a US analysis agency, the global corn production in 2014/15 (July to June of the following year) is expected to be 0.9743 billion tons, higher than the earlier forecast of 0.971 billion tons. However, the latest production forecast is still lower than the previous year's actual production of 0.9844 billion tons. Informa expects Brazil to produce 72 million tons of corn in 2014/15, up from an earlier forecast of 69.3 million tons and 76.5 million tons the previous year. Ukraine's corn production is expected to be 27 million tons, up from an earlier forecast of 26 million tons and 30.9 million tons the previous year. Informa expects U.S. corn production to be 0.3488 billion tons this year, down from an earlier forecast of 0.3493 billion tons and 0.3537 billion tons last year. China's corn production forecast for 2014/15 remains unchanged at 0.22 billion tons, compared with 0.2177 billion tons in the previous year. The forecast for corn production in the 28 EU countries remained unchanged at 66.4 million tons, compared with 64.6 million tons in the previous year. Argentina's corn production forecast remained unchanged at 26.2 million tons, compared with 26 million tons in the previous year. Mexico's production forecast remained unchanged at 22.5 million tons, compared with 21.9 million tons in the previous year. (Source: Boyi Master)
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U.S. and Global Soybean Supplies AdequateHuge US, global grain, soya supplies on tap July 13, 2014 RECORDER REPORT The US Department of Agriculture on Friday signalled abundant US and world grain and soyabean supplies in the coming year, a trend anticipated in futures markets for weeks by rapidly falling prices. Projected 2014/15 US corn carryout, at 1.801 billion bushels, was above the analysts' average forecast, and at almost 13.9 billion bushels, the crop is not much below the 2003 record high of 13.925 billion bushels. Old-crop US corn feed usage was lowered, but corn used to produce ethanol was projected 25 million bushels higher based on the blistering pace of production to date. US soyabean ending stocks for 2014/15 were pegged at 415 million bushels, close to trade expectations. If realised, that would be the highest since 2006/07. USDA will not survey the corn and soyabean crops until August, but suggested huge production could be at hand - if weather co-operates for several more weeks. "Favourable early July crop conditions and weather support an outlook for record yields across most of the Corn Belt, however, for much of the crop, the critical pollination period will be during middle and late July," USDA said. At the start of this week some 75 percent of corn was rated in good to excellent condition, and development was moving ahead at a normal pace. For soyabeans, 72 percent were in good or excellent condition this week. For now, most of the Corn Belt has ample moisture to support crop development. Ahead of harvest, though, soyabean supplies are razor-thin in many parts of the country, and record high imports have helped to plug the supply gap. USDA lowered its forecast for US winter wheat production to 1.367 billion bushels, below trade expectations, based on lower harvested yields. The projected yield for Kansas, the dominant hard red winter wheat-producing state, fell by 1 bushel per acre from June. "The HRW crop was damaged by drought and April freezes in the southern and central Plains," said USDA. USDA now sees the total US wheat crop at 1.992 billion bushels, down 6 percent on the year but up 50 million bushels on the month, bolstered by a big spring wheat crop. Projected season-average prices for wheat, corn and soyabeans were all lowered as USDA caught up with the sharp price drops seen in markets recently. World soyabean ending stocks will jump to 85.3 million tonnes in 2014/15 from 67.2 million in the current season. Projected imports by China were raised by 1 million tonnes, to 73 million, accounting for two-thirds of global demand. World corn and coarse grain ending stocks for 2013/14 and 2014/15 each hiked substantially. China's corn crop was lifted by 2 million tonnes to 222 million, keeping its imports for the 2014/15 season at a slim 3 million tonnes. Australia's wheat crop for 2014/15 was raised by 500,000 tonnes to 26.0 million, based on rising acreage forecasts. New-crop wheat consumption was also raised for the European Union and Ukraine and Serbia. Imports were lowered for Egypt and Mexico but raised for Sudan, Indonesia and Nigeria.
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As China's urbanization accelerates, who will feed the Chinese?~~As China becomes more urbanised, who will feed their people? By Contributor on 11 July 2014 Finola McCoy pictured bagging garlic with the locals in China. Nuffield scholar Finola McCoy reports from China on the latest leg of her global study tour. As the people move to cities, who will feed their people? Food safety or food security? While the former may be foremost in the mind of Chinese consumers, it is food security that is truly their biggest challenge. The increasing demand for food is constant, driven by a growing population and rising incomes. In fact, only 50% of the growing food demand worldwide will be due to population growth, with the rest due to improved diet and income. Securing enough food to meet this growing demand is no small feat. China wants to grow its agricultural production towards self-sufficiency, rather than being dependent on other countries. However there are some clear obstacles to get over first, some of which we can relate to in Ireland. Land availability for example. Chinese farmers don't "own" the land they farm - it belongs to "the people" or the chinese nation. Instead, farmers have the right to farm the land for their lifetime. Average farm size is 1Mu, which equates to two-thirds of a hectare, with minimal mechanisation and a high dependency on manual labour. As a farmer, the only way to increase your land base is to "sub-let" land from another farmer. This is one of the few opportunities right now, for land consolidation that will enable modernisation and the adoption of technology, to improve efficiencies. One such example that we visited was the business of Peter Yeung. A Hong Kong native, Peter is currently producing vegetables for the Hong Kong market from two farms in the Chinese mainland, which produce counter-seasonally. In order to secure the right to farm these blocks of land, Peter has had to individually negotiate and draw up contracts with about 10,000 farmers! The government has produced a strategy document, which includes a specific focus on agriculture, particularly land reform. This is an effort to look at changing the land management rights to enable more land leasing - create larger production units, modernise production and increase output. Even on these larger production units, there is currently a heavy reliance on manual labour. While labour may be freely available and reasonably affordable at the moment, it is expected that by 2050 only 30% of the population will be of working age. Another challenge is perception of farming. Unlike Ireland and many other countries, farmers in China are considered lower class citizens. It is not a way of life that parents want for their child. This is despite the fact that Chinese farmers are feeding 21% of the world's population (from 10% of the arable land). Urbanisation is rapid in China, with the government actively moving people into the cities. Almost every town and city that we drove through had clusters of developments - each one with 15-20, 20-storey apartment blocks under construction. It's estimated that by 2030, 200 million people (=10 x Australian population) will have left their farms in the country for a "better" life in the city. Without farmers, who will feed their people?
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OECD/FAO Food Production Growth to Meet Global Demand Over the Next Decade~~UPDATE 1-Rising food output to meet global needs over next 10 yrs - OECD/FAO Fri Jul 11, 2014 11:19am EDT By Isla Binnie ROME, July 11 (Reuters) - World food output is on track to meet the needs of a growing population after a decade punctuated by supply concerns, the OECD and U.N. food agency (FAO) said on Friday. Global agricultural production and consumption will rise in the next 10 years, as people in emerging countries become wealthier and eat more protein, but the increases will be slower than in the previous decade, the agencies said. Surplus stocks and rising production should keep commodity prices stable after the "roller coaster" of the last decade marked by a record high in 2008 and global recession in 2009. "We are recovering from a period of marked turbulence in the agricultural markets but there is no room for complacency," said OECD Secretary General Angel Gurria, presenting the OECD-FAO 2014-2023 agricultural outlook in Rome. "The world can grow enough food over the next 10 years and it can respond to the broader challenge of feeding 9 billion people by 2050," Gurria said. He added, however, that waste remained a threat to food security, saying around one third of crops produced in developing countries were lost post-harvest. Agricultural markets are still unstable, after near-record prices in 2012 prompted increased production which led to surpluses for wheat, rice, sugar and vegetable meal. Bad weather and concerns over export restrictions were blamed for the 2012 price surge, which stoked fears of a return to the conditions that led to violent protests in countries including Egypt, Cameroon and Haiti in 2007-2008. Global food price inflation now appears lower and more stable than it has since the 2008 crisis, the OECD and FAO said. Crop prices would drop for one or two more years before stabilising above pre-2008 levels, but below recent peaks. Wheat prices are projected to slide about 1 percent a year in real terms for the next 10 years, staying around 13 percent below the previous decade's average. Strong demand for meat from an expanding middle class in the Middle East and Asia will keep meat prices from falling as much as feed grain prices, and meat prices in real terms will average higher than the previous decade after general price inflation. CALL TO ACTION FAO director-general Jose Graziano Da Silva called on governments to invest in roads, transportation and storage, saying only a few countries had made progress. "India is one good case for that ... also China but I would not be able to add too many more," Da Silva said. Gurria also said governments needed to rethink their policies on biofuels, which opponents say contribute to price inflation by consuming feedstocks that could be used for food. "Part of the reason why we had the spikes and hikes in the prices was because we were burning food. Now I think we have gotten wiser about that," Gurria said. Biofuel output growth is expected to slow by 2023. In line with lower growth in production and consumption, trade will rise more slowly in the next decade. Grains and meat trade are set to advance 1.5 percent and 2.5 percent in volume terms each year, half the rates of the previous decade. While the Americas will remain the dominant export region globally, Ukraine will become Europe's biggest exporter of grains and oilseeds. Worries about conflict in Ukraine stopping shipments helped force prices higher this year, but Gurria said there had been no substantive effect on markets, prices, availability or stocks. The outlook is based on assumptions about government policies, markets, weather and macroeconomics, but some areas of uncertainty, including animal diseases, are not included. (Reporting by Isla Binnie, editing by David Evans)
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Philippines plans to produce 60 million tons of rice in three years~~Agriculture eyes 60 million MT of unmilled rice in three years By Anna Leah G. Estrada | Jul. 10, 2014 at 12:01am The Agriculture Department said Wednesday it aims to produce close to 60 million metric tons of unmilled rice in the next three years as part of the agency's commitment to attain rice self-sufficiency. Agriculture Assistant Secretary for Field Operations and National Rice Program director Edilberto de Luna said the DA would target a production of 59.7 million metric tons from 2014 to 2016. De Luna said the DA should expand the area harvested for rice and increase the yield per hectare to achieve the goal. Rice production in the first quarter of 2014 stood at 4.3 million metric tons, up 3.28 from 4.17 million MT in the same period last year. The DA this year is looking at producing 19. 07 million MT of rice, with an average output of 3.95 metric ton per hectare. For 2015, DA will pursue 20.09 million MT of rice from 4.9 million hectares at a rate of 4.08 MT per hectare. The DA aims to produce 20.5 million from 4.9 million hectares in 2016 at 4.15 MT per hectare ,. De Luna said Region 3, the country's rice granary, would continue to be the leading rice- producing region. The country's rice stocks continued to drop last month as it fell by 0.3 percent year-on-year, the Philippine Statistics Authority said Wednesday. PSA in a recent report said the rice stocks inventory as of June 1 this year stood at 2.306 million metric tons from 2.313 million MT in the same period last year. http://manilastandardtoday.com/2014/07/10/agriculture-eyes-60-million-mt-of-unmilled-rice-in-three-years/
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Ensuring the survival of family farms~~Ensuring the survival of the family farm NSW Country Hour By Laurissa Smith In this International Year of Family Farming, the United Nations is trying to increase the awareness of agriculture and food security. So, how is the family farm expected to survive in a globally competitive market? Answers will vary, depending on who you ask, but southern New South Wales farmer Linda Chalmers, says it helps to have an open mind. She moved from Kerang in northern Victoria, across the border, to an irrigation property about 50 kilometres north of Barham with her husband Rod, more than 40 years ago. "I think one of the main things we have to keep trying to do is to be positive, to be enthusiastic and believe in what you're doing and just find ways you can keep growing as a business ." During the drought, the pair decided to diversify their country and purchase a property in north-west Victoria at Sea Lake. They also moved into Dorper sheep, a breed which could thrive on native pastures and bush country. Audio: A farmer, food security advocate and food marketer discuss the future of the family farm (ABC Rural) Linda Chalmers says her children have been a big support. "We did say that if they wanted to join us in our farming business, that we would like them to try something else first ." Nick Rose, national co-ordinator of the Food Sovereignty Alliance, says if family farms are to thrive, they need to be valued more by the various levels of government. He says last year the province of Ontario in Canada passed a local Food Act, investing $30 million over three years, to support local food systems and the US has followed in their footsteps. "The US Department of Agriculture allocated $78 million to support local food systems across the United States, in April this year. "So we see there, evidence of institutionalisation and government support for local food systems, which are making a real difference to the viability of family farms ." The Alliance along with the Victorian Farmers Markets Association and Food Bank Victoria has been campaigning for a local Food Act during the Victorian state election. With NSW heading to the polls next year, he hopes to continue the campaign. Topics: agricultural-marketing, agricultural-crops, women-in-agriculture, barham-2732
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IGC expects global rice production to be 0.4756 billion tonnesIGC expects global rice production to be 0.4756 billion tonnes 2014-07-02 09:27 | source: China Grain Network | the latest report released by the International Grains Council (IGC) shows that the global rice production in 2013/14 is expected to be 0.4756 billion tons, compared with the earlier forecast of 0.4753 billion tons and 0.4716 billion tons in the previous year. According to the IGC, the total global rice supply in 2013/14 is expected to be 0.5853 billion tons, compared with an earlier forecast of 0.5856 billion tons and 0.5784 billion tons in the previous year. Global rice exports are expected to be 39.7 million tons, compared with an earlier forecast of 39.2 million tons and 37.9 million tons the previous year. Global ending stocks of rice for 2013/14 are expected to be 0.1091 billion tons, compared with an earlier forecast of 0.1102 billion tons and 0.1098 billion tons the previous year. (Source: Master Boyi)
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Vietnam exports 2.85 million tons of rice in first six monthsVietnam exports 2.85 million tons of rice in first six months 2014-07-02 09:29 | source: China Grain Network | according to the latest data released by the Vietnam Food Association, Vietnam exported 2.848 million tons of rice from January 1 to June 26, 2014, a year-on-year decrease of 19%. So far this year, the average export price of rice is US $432 per ton, FOB price, an increase of US $1 over the same period last year. Vietnam exported 512,904 tons of rice from June 1 to 26, down 12% from the previous month's export volume in June. So far in June, the average export price of rice is $423 per ton, up $13 from a year earlier and down about $2 from the previous month.
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Cargill invests $0.1 billion to expand Russian wheat flour processing plantCargill invests $0.1 billion to expand Russian wheat flour processing plant 2014-06-27 10:57 | source: China Grain Network | cargill, an international grain giant, announced that it has invested $0.1 billion million to expand its wheat flour processing plant in the Yevremov region of Tula, Russia. Cargill plans to double the annual wheat processing capacity of the Yevremov processing plant to 500000 tons/year. The processing plant employs more than 800 people and uses corn, barley, wheat and other grains to produce starch and sweeteners. Natalia Olova, manager of Cargill's Russian food industry company, said in a statement that the project reflects Cargill's investment commitment to Tula state. Cargill opened an office in Moscow in 1991. In 1995, the Yevremov processing plant was established, which was Cargill's first investment in Russia. Russia is expected to become the world's third largest wheat exporter this year, after the United States and Canada.
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South Africa or will soon export Chinese yellow cornSouth Africa or will soon export Chinese yellow corn 2014-07-02 09:25 | source: China Grain Network | the Republic of South Africa, Africa's top corn producer, may soon start exporting yellow corn to China, which will be the first time South Africa has exported such corn to China. According to Jenny Villiers, chief executive of South African Grain Company (Grain SA), negotiations between the governments of South Africa and China have reached the final stage. He expressed the full support of the South African government. At present, the exporter has completed the pest risk analysis and submitted all documents to the Chinese government for approval. According to a report by the South African Crop Evaluation Commission (CEC) on April 29, South Africa's yellow corn exports in 2013/14 (May to April) were 1.2 million tons, more than double the year-on-year increase. South Africa's corn exports hit a 14-year high in 2011, nearly four times higher than the previous year, as a bumper harvest prompted exporters to open up new markets, including Japan and Spain. South Africa's yellow and white maize production in 2013/14 totaled 13.9 million tons, the highest since 1981. Production in 1981 was 14.1 million tons. Villiers added that (exports to China) have been decided, and currently they are just waiting for the governments of both sides to sign, and then they can export corn to China. Markos Marlow, a spokeswoman for the South African Ministry of Agriculture, Fisheries and Forestry, also said that the technical consultations between the two sides have ended, but formal signatures are still needed. (Source: Boyi Master)
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2014 Brazil corn production forecast sharply higher2014 Brazil corn production forecast sharply higher 2014-06-20 09:19 | source: China Grain Network | according to a report released this week by renowned industry expert Dr. Cordonnier, U.S. corn yields will reach 165 bushels per acre in 2014, the same as his earlier forecast. Dr. Cordonez this week predicted that Brazil would produce 77 million tons of corn in 2013/14, much higher than his earlier forecast of 74.5 million tons; Argentina would produce 24 million tons of corn, the same as his earlier forecast.
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Indonesia's corn imports will exceed 3.6 million tons in 2014Indonesia's corn imports will exceed 3.6 million tons in 2014 2014-06-20 09:28 | source: China Grain Network | according to Xaverius Sudirman, chairman of the Indonesian Feed Processors Association, Indonesia's corn imports may increase by at least 22% in 2014, breaking the previous record of 3.6 million tons, because El Nino may occur this year and dry weather will damage domestic production. There may be an El Nino in the middle of this year. El Niño usually causes dry weather in Southeast Asia. Corn imports are likely to hit an all-time high of more than 3.6 million tonnes this year, the Sudirman said. Last year's corn imports were 2.95 million tonnes, he added. Corn is mainly used for feed production. Indonesia expects its corn output to grow 12 percent this year to 20.82 million tons. (Source: Master Boyi
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Import dynamics: China imports of soybeans this year or up to 69 million tonsImport dynamics: China's soybean imports this year or up to 69 million tons 2014-06-23 9:17 Source: Economic Observation Network according to the investigation and analysis by Zhang Xiaoping of the International Project Department of the American Soybean Association, it is estimated that China's soybean imports will reach about 69 million tons in 2014. In recent years, the number of soybean imports in China has been rising. According to the import data released by the General Administration of Customs of China, the cumulative import of soybeans in 2011 was 52.64 million tons, the cumulative import volume in 2012 was 58.38 million tons, and the cumulative import volume in 2013 was 63.38 million tons. The import of soybeans has increased significantly for three consecutive years. China's customs import data also showed that in the first five months of this year, China imported 27.82 million tons of soybeans, an increase of 35.3 percent over the same period last year and an increase of 30.4 percent over the same period last year. According to the forecast of Zhang Xiaoping and other industry insiders, the number of soybean imports in China this year will be as high as 69 million tons. In addition to soybeans, China has also imported a considerable amount of edible vegetable oil. In the first five months of this year, the cumulative amount of edible vegetable oil imported was 3.07 million tons. If the amount of imported soybeans and edible oil is combined, China's imports of soybeans and vegetable oil have exceeded 30 million tons in the first five months of this year.
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U.S. ethanol production hits record high to boost corn prices~ ~ u.S. ethanol production hits record high to boost corn prices 2014-06-20 09:24 | source: China Grain Network | u.S. ethanol production rose sharply to an all-time high as plants stepped up production in preparation for seasonal increases in demand. Weak corn prices and strong international crude oil prices have made ethanol production lucrative. According to the latest report released by the US Energy Information Administration (EIA), in the week ending June 13, the average daily output of ethanol in the United States was 972000 barrels, an increase of 28000 barrels from a week ago. That's the highest level since records began four years ago. Ethanol production growth was also expected, given the weak corn market and stronger gasoline prices. Corn is the main raw material for ethanol production. Gasoline prices have risen more than 6% in the past two weeks because of instability in the Middle East. But the increase in ethanol production has surprised many investors. On Wednesday, ethanol for August delivery fell about 3.7 percent to $1.991 a gallon. CBOT July corn futures rose about 1% to $4.43/bushel. Allendale says profits from ethanol production have fallen to about $0.50 a gallon from $0.73 a gallon two weeks ago. Profits from ethanol production peaked at about $1.55 a gallon at the end of March, when adverse weather restricted biofuel shipments, prompting buyers to raise prices and procure limited supplies. Dan Ross, an analyst at U.S. Commodities Corp. in Iowa, said China's restrictions on the import of U.S. corn dross have put pressure on the price of domestic corn dross due to concerns that the shipment is mixed with MIR 162 genetically modified corn that has not been approved by the Department of Agriculture. But on the other hand, the decline in corn prices is also conducive to the improvement of ethanol production profits. Rich Nelson, chief strategist at Allendale, said the increase in ethanol inventories remained a concern. Stocks have risen sharply since the end of March. Last week's data showed inventories were up 15 percent from a year earlier. Although ethanol stocks have been 572000 barrels lower in the past week than a week ago, this still requires close attention from the market. (Source: Boyi Master)
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Land Commodity M & A Options Food Replaces OilThe land commodity merger and acquisition option grain replaces oil. Press time: 2014/05/30 11:21 Latest update: 2014/05/30 11:21 (Central News Agency, Taipei, 30th) Bloomberg reported that mainland China has spent more than US $200 billion in the past 10 years after acquiring mines and oil fields in Argentina and Australia. The focus now turns to food. The mainland, the most populous country, is now facing a grim fact: for every extra pound of wheat or pound of beef produced in the world, the mainland needs almost half to feed its people. According to data compiled by Bloomberg, after recognizing that the country cannot produce enough grain and meat, companies listed in mainland China or Hong Kong spent a total of US $12.3 billion last year to launch overseas mergers and acquisitions in food, beverages or agriculture, rewriting the highest amount in at least 10 years. The deals include Continental's largest-ever U.S. acquisition, with Shuanghui International Holdings buying Smithfield Foods Inc. for $7 billion. According to the National Australia Bank Ltd., overseas acquisition targets for mainland companies are likely to be beef, lamb and grain assets. Cargill (Cargill Inc.) Vice Chairman Conway (Paul Conway) said, "these transactions are bound to happen, in fact, I'm a little surprised that these did not happen earlier. 」 "In agricultural products, the integration of the continental and global commodity systems will be closer than before. 」 Cargill is one of the four largest companies that currently control the global food trade. When the mainland's economy exploded in the past few decades, the Beijing government used state-owned enterprises to lead the way to accelerate strategic industries and became a model. In the past, this has happened in energy security, with China National Petroleum Corporation (HK-857) spending $40 billion on oil assets around the world over a 10-year period. The new champion is COFCO, which controls 90% of the mainland's wheat imports and has launched two acquisitions in the past year. COFCO has acquired Nidera HoldingsBV and Noble Group Ltd in the Netherlands within 2 months. controlling interest, paying a total of about $2.8 billion. Fitch Ratings Ltd. said in an April 3 report that COFCO will be a strong global agricultural trader, able to purchase directly around the world. (Translator: Liu Shuqin, Central News Agency) 1030530 . The text, pictures and audio and video ※ on this website shall not be reproduced, publicly broadcast or publicly transmitted and utilized without authorization.
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EU to limit the use of food as raw materials to process biofuels programThe EU has formulated a plan to restrict the use of food as raw materials for processing biofuels. Ministers of the 28 EU member states today broke the deadlock over the past year and agreed to reduce the use of "first generation" bioenergy processed from corn, beetroot or rape. According to the resolution, the upper limit of biofuels using food as raw materials for transportation energy is 7% by 2020, which is lower than the 10% target set in 2009. The EU has been a leader in pushing for so-called first-generation crop-based biofuels to replace some fossil fuels such as oil in order to reduce global carbon emissions. But Brussels is facing growing criticism that the use of such biofuels is crowding out the global food supply and raising food prices in some of the world's poorest countries. Critics also say that arable land is used to grow raw crops for biofuels, especially in mangrove reserves in Southeast Asia, which is contrary to the environmental concepts peddled by the European Union. Bioenergy experts say the agreement is not enough to reduce the impact of bioenergy on the world's increasingly tight food supplies. "In a starving world, a gradual reduction in the use of food for biofuels is the only sensible thing to do". The European Parliament will consider the resolution.
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Cambodia's rice exports to increase slightly in 2014~ ~ cambodia's rice exports to increase slightly in 2014 2014-06-04 09:59 | source: China Grain Network | the latest report released by the Food and Agriculture Organization of the United Nations (FAO) shows that Cambodia's rice exports will increase slightly to 1.2 million tons in 2014 due to increased production. The FAO said the rice export figures include unofficial exports of finished rice as well as rice exported through the border to Vietnam and Thailand. Cambodia exported about 120,291 tons of rice in the first four months of 2014, up 1.5 percent year-on-year. In 2013, Cambodia exported 378,856 tons of rice, up 84% year on year. FAO expects Cambodia to produce 9.5 million tons of rice in 2014, up 1% from the previous year.
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From Mexico to Brazil, climate change threatens coffee farming in Latin America~~From Mexico to Brazil, climate change threatens coffee growers in Latin America Written by By Diego Cupolo Tuesday, 03 June 2014 11:30 Coffee Grower In EcuadorCoffee, like gold, sugar and oil, has long been one of Latin America's major exports, sustaining everyone from independent farmers in mountain regions to corporate bankers in capital cities, all while keeping weary minds alert throughout the world. Image: Coffee Grower in Ecuador (Diego Cupolo). Yet over the last decade, changing climate patterns have intensified droughts and plagues in the region, creating conditions less suitable for coffee production and wreaking havoc on the industry that came to define, even shape, many hillsides in rural Central and South America. Today, as coffee growers struggle to recover from a string of weather-related events, some industry analysts have already foreseen a major shift in coffee production towards Asia and away from Latin America. The long series of problems came to a peak this spring, when coffee prices doubled after a severe drought stunted the growing season in Brazil, the world's top coffee exporter. The extent of the damage remains unknown, but the price hike arrived at the same time that many other Latin American nations underwent a record-breaking epidemic of coffee rust, or “roya” in Spanish, a fungus known to suffocate coffee trees and lower bean yields. The rust outbreak began in 2012 and has since affected nations spanning from Mexico to Peru, with countries in Central America experiencing the highest levels of crop loss, said Monika Firl, social projects manager at Cooperative Coffees, a Montreal-based sourcing co-op that imports specialty coffee. “In Nicaragua in particular, farmer groups have been really hit hard," Firl said. “Some groups that we are working with might have 20 percent of their total harvest. There are other farmers we are working with in El Salvador that will have 5 or 10 percent of their usual harvest, so for a farmer that's already living on the edge, this is disastrous ." The outbreak is just one of three major epidemics to hit Latin American coffee growers in the last six years. There was also a coffee rust outbreak in Colombia from 2008-2011, where nearly a third of the nation's harvest was lost to the fungus. Along with this year's drought in Brazil, the three events were caused by erratic climate patterns, said Peter Baker a senior scientist specializing in commodities and climate change at the Centre for Agricultural Bioscience International. Image: Coffee rust examples (Wikimedia Commons). “It's difficult to point the finger directly and say it's because of climate change, but it's consistent with more chaotic weather patterns which I think we're seeing globally," Baker said during a phone interview in May 2014. Aside from higher prices and lower quality brews for consumers worldwide, the wave of agricultural catastrophes threatens the economic foundation of coffee growing nations in Latin America, where total coffee production has dropped about 20 percent since 2011, an estimated loss of more than $1 billion. In Central America alone, about 5 million people get their livelihood, directly or indirectly, from the coffee and their future remains uncertain. The latest report from the Intergovernmental Panel on Climate Change (IPCC) states “the suitability for coffee crops in Costa Rica, Nicaragua and El Salvador will be reduced by 40 percent” with increasing of temperatures. Regarding Brazil, the report says warmer summers could make coffee crop unfeasible in Minas Gerais and São Paulo, the nation's major coffee growing states. Meanwhile, countries like Vietnam, Indonesia and China are stepping up their coffee production to fill global demand as many Latin American coffee growers face a 2-3 year recovery period before they can return to pre-plague harvest figures. Baker said mitigation efforts are often slowed and complicated by their costs, as they require significant investments and adaptations, which most independent farmers cannot afford without government assistance. If current trends continue, rural areas from Mexico to Brazil, many of which are already afflicted with poverty and malnutrition, are bound to experience higher unemployment rates, increasing hunger and, eventually, mass migration. “If the problem persists, employment and stability in the region could be compromised," Mark Feierstein, administrator of the United States Agency for International Development (USAID), told the International Business Times. “It could affect migration patterns and prompt an increase of immigration to the U.S ." Deep Roots of a Plague While speaking of the many causes behind the current rust outbreak, W. Alejandro Sanchez, a senior research fellow at the Council on Hemispheric Affairs (COHA), pointed out the fragility of commodity-based economies in Latin America. “Countries like Peru, Mexico and Colombia are regarded as the 'pumas of Latin America' just like the tiger economies in Asia," Sanchez said. “As much as some of our economies are thriving, we are still economies based on basic commodities: oil, gas, lithium, potatoes, rice, beans and coffee. That means we are at the mercy of the environment ." From the environment to farming practices, the recent outbreaks were created by a myriad of conditions, which scientists are still trying to define. While there hasn't been conclusive research on the subject, the main causes for rust seem to correlate with rising heat and humidity. “Warming temperatures at higher altitudes and the resulting shifts in moisture accumulation are likely allowing the rust to thrive in areas previously uninhabitable," wrote Emma Bladyka, coffee science manager for the Specialty Coffee Association of America (SCAA). “Disruptions in the typical dry season can create an environment more habitable for rust outbreaks. Smaller and more frequent rainfall in the region likely contributed to the perfect fungal habitat ." Many other factors are also exacerbating the rust outbreak, including land use methods, degradation of soil quality, use and misuse of fertilizers or fungicides and a general shift towards high-density monoculture farming that allows easier disease transmission between plants. Coffee Rust in Colombia“Roya is a fungus that is always present in coffee," said Firl of Cooperative Coffees. “When the fields become out of balance or the trees become very vulnerable and climatic spore infestations occur, that's when you get this epidemic proportion. Once it starts multiplying, it just takes over ." Image: Coffee rust in Colombia (Wikimedia Commons). In Colombia and Guatemala, governments have responded by assisting farmers in planting rust-resistant varieties of coffee, which have proven effective in some short-term case studies, but are not popular among specialty roasters who claim engineered coffees have inferior cup quality. The US government has also announced a $5 million partnership with Texas A&M University's World Coffee Research center to create stronger strains of coffee that will fight off future pests and plagues. Yet due to fast evolving and fluid outbreaks, “the science is always three years behind," Firl said. There are many varieties of coffee rust along with other coffee diseases and researchers often struggle to make hybrids resistant to multiple conditions. “Clever as we think we are, the natural cycles are much quicker” Firl said. “The insects, the illnesses, the plagues become much more resilient and then you're back at the laboratory, trying to come up with a more resistant new breed [of coffee] to combat the now more resistant strands of fungus. So it's great for the labs, but it's not good for farmers ." The Orphan Commodity Fungicides, insecticides, fertilizers and even pruning equipment all require significant investment. Even if governments were to provide subsidies to coffee farmers for such products, large-scale education programs would be needed to teach growers about rust-prevention techniques and planting methods, Baker said. Fighting region-wide epidemics requires massive, multi-national campaign efforts, which can be difficult to organize due to the fact that coffee is an “orphan commodity," or a crop without a global institution to direct and oversee development trends. “Unlike the CIMMYT international corn and wheat center in Mexico or the IRRI rice center in the Philippines, there is no equivalent organization for coffee," Baker said. Few crops are in the world are grown like coffee. The results create not only a decentralized, country-by-country response to disaster relief, but also a global deficit in research and development on coffee production. Speaking at the Let's Talk About Roya conference in El Salvador last fall, Baker said worldwide investment in R&D for coffee totaled about $100 million per year. Coffee beans in Nicaragua (Diego Cupolo)“The full value of the coffee industry is a $100 billion a year, so [research and development is] 0.1 or 0.2 percent the total value spent on production and that's crazy," Baker said. “It's completely crazy. Expenditure is completely inconsistent with the risk levels ." Image: Coffee in Nicaragua (Diego Cupolo). Normally, Baker said industries spend between 2 and 10 percent of their total production value on R&D. He also pointed out the research conducted on coffee is more often focused on its health effects for consumers than on improving growing conditions in the fields. For these reasons, even the root causes of coffee rust remain unclear to many scientists studying the epidemic. To obscure matters further, there are no official figures on how many crops are lost to disease or how much land is used to grow coffee worldwide. All we know is how much coffee reaches the market, Baker said, a method of commerce that disregards the supply chain and strictly values the end product. “Instead of developing technology to continue on the same footprint, globally the coffee industry continues, I think, to be a deeply exploitive and extractive industry," Baker said at the conference. “It moves on, it burns out land, moves on to other areas ." Other areas like Vietnam, Indonesia, Laos, Myanmar and China where much of the rising coffee production is driving deforestation. While sustainable and fair-trade coffee certifications have made significant impacts on the industry over the last decade, Baker said they haven't done enough to curb destructive land use practices. "That's a principle problem, that you have a lot of new coffee coming onto the market every year and most of that, I think, is coming from deforestation so this is something the coffee industry doesn't really want to talk about, but it's happening," Baker said, citing studies by David Gaveau of the Center for International Forestry Research, that link coffee price fluctuations to deforestation rates in Sumatra. The globalized production of coffee has kept crop prices relatively stable. New exports from Asia replace crop losses in Latin America and, until recently, consumers have remained unaffected. “What the last years have told us is we lose millions of sacks of coffees because of rust and yet the price goes down," Baker said. “So roya is a sort of earthquake that reminds us that we're sitting on top of a fault and the fault is that the global market doesn't work for agriculture in general ." Adding to the long list of sustainability problems, Baker said coffee production has become dangerously concentrated over the years, with just four countries exporting 2/3 of the world supply. If one nation undergoes a climate-related event and production is affected, such as the drought in Brazil, the impact that single event can be amplified through the industry worldwide. “Increasingly, in the future, I think we're going to get more climate shocks and it will be like playing one of those [slot] machines," Baker said. “One year, two or three climate shocks will come up together and we'll have a real shortage of coffee ." “Locally, on the farm level you've got some really nicely run farms, on a micro-level, but globally I think coffee is actually becoming less sustainable," Baker continued. “I think its carbon footprint must be going up, biodiversity is going down and you're getting this concentration [of production] and it's risky to have all your eggs in a few baskets ." The Future in the Past In 1870, Sri Lanka was the largest coffee producer in the world. At the time, it was a British colony known as Ceylon and the small island supplied Europe with much of its coffee until the first signs of a rust outbreak appeared in 1875. The fungus spread quickly and the colonizers failed to slow infection rates, resulting in the loss of 95 percent of the coffee harvest in less than 20 years. With a once thriving industry decimated, local coffee growers began planting tea. Today, many argue the Ceylon coffee rust outbreak of 1875 is the primary reason behind the British addiction to tea. They were forced to adapt to new circumstances. It's too early to tell whether the same fate awaits Central and South America, but the prospects are worrisome, Firl said. “The position rust puts farmers in is so challenging," Firl said. “Most of the support going out to farmers, I feel, is misguided. It's pushing them towards chemical solutions, it's a lot of talk and a lot of showcasing, grandstanding new policies, grandiose summits and very little is going to farmers to help them get through what's a very horrific plague ." Most efforts to combat the outbreak have been centered on developing new fungicides and fungus-resistant coffee trees, Firl said. Yet these remedies have proven to be problematic in Honduras, where 50 percent of coffee plants were rust-resistant varieties and the nation still suffered a 28 percent loss of coffee yields during the most recent outbreak. Firl said chemicals and laboratory solutions alone cannot stop the spread of rust. Organic fertilizers, soil quality and field management are all important components in combating the plague. Coffee field in Costa Rica (Diego Cupolo) “In Marcala, Honduras, we have one organic farmer who is using different kinds of compost, frequent applications, spraying, cultivating micro-organisms that are natural inoculants, adding that back into coffee fields, spraying the soil and spraying the foliage," Firl said. “He's doing all of that and this guy is getting 50 quintales of good quality, organic coffee while his neighbors will have scattered berries on their bushes ." Image: Coffee fields in Costa Rica (Diego Cupolo). “It takes a lot of work and investment," Firl continued. “He was already doing this before the plague. Out of conviction, not reaction. He had the resources available that a lot of farmers don't, to hire extra hands, to do the pruning and the composting, but not all coffee farmers are in that luxurious position of having profits [from their harvests.]" In response to the Ceylon rust outbreak, growers in Southeast Asia and Africa also replaced much of their Arabica coffee trees, the rich-flavored variety preferred by specialty brewers, with the more bland, but more resilient Robusta coffee trees. Today, Latin America still produces most of the world's Arabica coffee beans, but if the problems persist more coffee growers are bound switch to Robusta, Baker said. “Big coffee roasters, in their standard supermarket blends are putting in a bit more Robusta so, yes, the taste and quality, I think, will tend to slip," Baker said. “Whereas twenty years ago, 30 percent of coffee worldwide was Robusta, now it's up to about 40 percent and I think that's going to carry on ." Taste aside, larger coffee distributors will adapt to changing climate patterns by finding substitute suppliers, Firl said. Global demand for coffee is rising and consumers will likely remain largely unaffected as the production landscape is rearranged throughout the world. “A year ago, roya was in the news for two or three weeks, and my theory is that once the industry recognized that supply wouldn't be effected, that they'd just have to move production elsewhere, the issue just completely dropped of the map," Firl said. “For us, it's a little more difficult because we have a really long term relationship with a lot of coffee-growing organizations and we want them to be there three years in, once they recover from [coffee rust], so we're looking for different ways around this, as we speak," she continued. “The growers in El Salvador, for example, we won't be buying coffee from them in the next two years and I keep asking them 'What are you going to do?' The only concrete response I 've heard so far is 'plant corn .'" From infrastructure to popular culture, coffee has shaped much of Latin America's identity. Its importance is hard to overstate as we are constantly reminded of its status by songs like Juan Luis Guerra's “Ojalá que llueva café” or “Let us hope it rains coffee ." In times when there have been few alternatives, coffee has sustained families in rural regions throughout Latin America. The present epidemics have dealt significant blows to coffee growers in the region. While some farmers will continue to thrive, others may not, but all will be forced to adapt in the face of global climate change. Diego Cupolo is an independent journalist, photographer and author of Seven Syrians: War Accounts From Syrian Refugees, released January, 2014, by 8th House Publishing. He serves as Latin America regional editor for Global South Development Magazine. See more of his work at www.diegocupolo.com