World Agriculture
Developments, trade, data, and topics in world agriculture
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US: Pork Exports Decline in January, Lost to EU in China and Other Export MarketsAccording to data issued by the U.S. Department of Agriculture (USDA) and compiled by the U.S. Meat Export Association (USMEF), U.S. beef, pork and lamb exports fell sharply in January 2015 compared with the previous year. Shipment delays caused by labor disputes on the U.S. West Coast and a combination of economic factors caused U.S. beef and pork exports in January to fall to the lowest level in four years. However, Philip Seng, president and CEO of the American Meat Export Association, pointed out that the situation facing beef exports and pork exports is very different. In 2015, global beef supplies became extremely tight again, while pork supplies were on the rise; competition in major pork export markets continued to intensify. Philip Seng pointed out that the congestion of the port is naturally a major reason, and some other negative factors also play a role. The currencies of the main export markets of the United States have weakened against the dollar, but the currencies of the main competitors of the United States-Australia, the European Union, Brazil and Canada-are also in a weak trend. The price disadvantage is becoming more and more difficult to overcome. January was the first month that beef tariff cuts under the Japan-Australia Economic Partnership Agreement (JAEPA) went into effect, with further tariff cuts coming in April. Although Japan and the European Union have not yet reached an agreement, the two sides have recently completed the ninth round of economic partnership negotiations. It is expected that the two sides will finally sign an agreement on EU pork tariff reduction. South Korea and Australia's new trade agreements with Canada also narrow the tariff rate advantage that the United States has over these two countries. U.S. Pork Exports to South Korea Increase, Mexico Steady pork exports fell 16 per cent to 161165 tonnes in January, while exports fell 15 per cent to $0.4553 billion. The export volume of cut meat (119455 tons) decreased by 20%, and the export value ($0.3745 billion) decreased by 18%. The decline in United States exports to Mexico, the leading export market, was not significant (59306 tons, down 1 per cent), while exports stabilized at $0.1128 billion. U.S. exports to South Korea increased strongly (15262 tons, up 34%) and exports ($51.4 million, up 54%). US pork exports to Taiwan doubled in January compared with sluggish levels in 2014, with total exports rising 28 per cent to 1007 tonnes. U.S. Pork Exports to Other Major Markets Decline Overall the United States exported 26493 tons of frozen meat to Japan in January, down 25% year-on-year. In the China/Hong Kong region, European pork exports dominated, while US exports of 17681 tons fell 49%, the lowest level in the past five years, mainly due to market access issues and the weak situation of domestic pork prices in China. Following a deceleration in exports in the second half of 2014, US exports to Australia (2598 tonnes, down 59%) remained sluggish in January, while the EU and Canada increased their respective market shares. Source: International Animal Husbandry Network Exclusive Compilation http://www.guojixumu.com/newsall.aspx?cid=22&id=4136 on March 12, 2015 lixia
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Global pork prices return to normalGlobal pork prices rose to record highs in mid -2014 and returned to more normal levels by the end of the year. The surge in prices is the impact of porcine epidemic diarrhea virus on global pork supply, which has affected major pork exporting countries (the United States) and some key importing countries (Japan, South Korea and Mexico, etc.). This brought the average export price of pork in the summer (based on data from the four major global exporters-the European Union, the United States, Canada and Brazil) to US $3.50/kg, 13% higher than the previous record of US $3.12/kg. However, as the epidemic of porcine epidemic diarrhea virus subsided and signs of increased pork production in 2015 appeared, pork prices fell again. The average value of exports fell to $2.95 in December 2014, in line with the levels of 2012 and 2013. Prices in the EU have been largely unaffected by price increases elsewhere, mainly because of the import ban imposed by Russia, so pork in the EU was the cheapest in 2014, contrary to its usual level. After Canada also entered Russia's embargo list in August, its pork prices also fell sharply, and its export situation was close to that of EU exporters. At the end of 2014, due to the devaluation of the ruble, Russian importers were reluctant to use the US dollar to buy large quantities of pork. As a result, U.S. pork prices were the most expensive among major exporters in December. But prices in the United States fell further to their lowest level in five years in the new year of 2015, which finally brought the United States and other exporting countries to the same level. Coupled with the strong US dollar against the euro, Canadian dollar, Brazilian real, etc., this means that the global average price in US dollars will fall further in early 2015, and may reach the lowest level in more than four years. China Livestock Network2015-3-12http://www.chinafarming.com/shengzhu/2015/3/12/20153129345449568.html editor: lixia
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Prices are falling, but concerns about global food security persist.The Food and Agriculture Organization of the United Nations (FAO) released the "Cereal Supply and Demand Briefing" on February 5, which raised the 2014 world cereal production valuation to 2.532 billion tons, an increase of 7 million tons from 2013. This is the second consecutive year of food production valuation. New historical records. Due to the increasing global grain supply, international food prices have fallen to the lowest level since 2010. Theoretically speaking, the overall supply of food in the world exceeds demand, which will bring about lower food prices, which will benefit food importing countries and help ensure world food security. However, taking into account factors such as the strength of the US dollar, the financial constraints of food-deficit countries and regional imbalances, the decline in food prices cannot simply be equated with food security. In particular, it is necessary to guard against the risk of future food and agriculture production reductions that may be caused by lower food prices. International food prices fell from the beginning of 2014 the International Grains Council recently raised its forecast for global maize production in 2014. Statistics from the U.S. Department of Agriculture also show that the global wheat harvest in 2014 set a record, and the global rice production was close to the record of the previous year. At the same time, the demand for wheat from the United States, such as Brazil and Nigeria, is declining and is the weakest in nearly 20 years. Affected by this, the international food prices from the beginning of 2014 all the way down. The FAO Food Price Index averaged 202.1 points in 2014, down 3.7 percent from 2013 and nearly 28 points from its 2011 peak, with the Cereals Price Index alone down 12.5 percent from 2013. In 2015, this trend continues. In the United States, wheat futures suffered their worst start in 40 years, rice futures prices in Chicago hit $10.525 per 100 pounds, the lowest since August 2010, cocoa prices also fell to their lowest point in a year, and futures in New York entered a bear market. Some analysts pointed out that after the food crisis caused by the soaring food prices in 2007-2008, with the increase of production inputs and the improvement of production efficiency in recent years, the world's food supply as a whole has shown a trend of oversupply. Theoretically speaking, the decline in international food prices will bring benefits to food importing countries to a certain extent and will help ensure world food security. However, considering the current real factors such as the continued strength of the US dollar and the uneven regional development, the world food security situation cannot be overly optimistic. Abdolreza Abbashian, a senior grain economist at FAO, said in an interview with our reporter that by observing the total number of hungry people in the world, it is not difficult to find that no matter when international food prices have reached their peak in recent years, or when they have been hovering at a low point in the past, the total number of hungry people in the world has not fluctuated significantly. Food security goes beyond agriculture. According to FAO statistics, corn stocks in the European Union, the United States and China are still increasing, wheat stocks in the European Union, China, India and Russia are also increasing, and rice stocks in India, Indonesia and Thailand are also at the highest level. However, in sharp contrast, at least 38 countries in the world are still in a situation of food shortage, including 29 African countries. In countries such as Zambia, Senegal, Guinea-Bissau and Central Africa, there is currently a serious food supply crisis. It can be said that international food prices continue to fall, but the food security situation in Africa has not improved, and food prices have fallen. From the perspective of supply and demand, food production may be suppressed in the future, resulting in a decline in food production. What is the reason for this contrast? Abbastian analyzed that, in fact, the increase in world grain production means more sufficient raw materials for food processing, and the final price of food is not only reflected in the price of raw materials, but also compared with the cost of processing, transportation, sales and other links. The impact of grain cost price on consumers is not so significant. "For example, the price of wheat has dropped by 10% in the international grain market, the reduction in the price of bread on the market may not even reach 1%". Since the international food market is mainly denominated in U.S. dollars, "the U.S. dollar has continued to strengthen in the past two years, which is also one of the factors that have lowered international food prices." Abbashian said that for many countries, although international food prices are falling, they are The cost of food imports is still high in the currency of the country. Moreover, for many countries with weak financial resources, even if the international food price falls to US $1/ton, hunger is still a problem that cannot be solved. This is a practical problem faced by many underdeveloped countries. "In fact, from this perspective, the world The issue of food security has gone beyond the scope of agriculture, and the different macroeconomic conditions of various countries must also be considered." on the other hand, the continued decline in international food prices has objectively weakened the competitiveness of African countries' food production in the international market, "resulting in African food production not making money in the market, and food production has been suppressed". Abbashian believes that food production in African countries is also constrained by factors such as weather, disease and war, "which also makes only a few African countries have the conditions to expand production." low international food prices have frustrated the enthusiasm of African countries, which is not conducive to food self-reliance in these countries in the long run." be alert to the risks that may arise from oversupply in the market. Experts pointed out that the current global economy is facing the risk of deflation, and consumers are more inclined to hold their wallets tightly, which may have a negative impact on world food production in the future. What may follow is that agricultural producers will reduce production because they cannot make money. At the same time, the government may also increase storage costs due to excess inventory, and then take the initiative to control the scale of agricultural production. If this happens, small and medium-sized enterprises and individual producers will suffer a fatal blow. "Falling international food prices will put large agricultural companies in a good position." Abbastian said that the decline in profits will make it difficult for small and medium-sized enterprises and individual producers to continue, while large enterprises will rely on abundant funds to take advantage of this opportunity to occupy more market share, leading to the narrowing of food supply channels. "The government must play a more important role," Abbastian believes, and policymakers must recognize the immediate reality. "The current international food prices are only relatively low, but they have fallen a bit at a very high position". The FAO Food Price Index clearly shows that although it has experienced three consecutive years of decline, the index is still more than twice that of 2003. "compared with the trend of international food prices, how to maintain the diversity of production channels and ensure the stable operation of the food market is the primary issue that the government needs to pay attention to in order to ensure food security". (Source: People's Daily Author: Han Bingchen) editor: lixia
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US rice farmers eyeing Chinese market~ ~ US. rice farmers see opportunity in China U.S. rice farmers look to export to China Josh Sheppard, a fourth-generation rice grower in Biggs, Calif., about 60 miles north of Sacramento, said he would welcome Chinese buyers because they probably would pay more for his grains than U.S. customers. (Carl Costas / For The Times) By David Pierson contact the reporter This article is related to: Business, China, Agriculture, Imports, U.S. Department of Agriculture, Smithfield Food Greg Yielding was given a quixotic task: travel to China and determine if consumers there would be willing to eat American rice .. So he set up tables at some of the most popular supermarkets in southern China, hung American flags and began dishing out steamy samples of rice from Arkansas and California. "At first they'd say, 'There's rice in the U.S.?" said Yielding, head of emerging markets for the U.S. Rice Producers Assn., a Houston-based trade group. "And we'd have to show them a map to explain that it's grown in California and the South. Then they'd try it, and they would really like it ." Rice imports to China lin ------------ FOR THE RECORD: Rice exports: An article in the Aug. 24 Section A about U.S. rice farmers hoping to enter the China market described the USA Rice Federation as a trade association that largely represents millers. The group said it also represents merchants and 90% of the nation's rice growers. - ------------ Chinese importers, distributors and grocery chains lined up. Selling U.S. rice to China seemed like a slam-dunk. But eight years after Yielding's first venture on behalf of the U.S. industry, not a single shipment of American rice has officially made it into Chinese hands. That won't happen until the two countries agree on a so-called phytosanitary protocol, which determines the necessary steps U.S. rice exporters must take to mitigate pests such as insects. The disagreement highlights the growing pressure on U.S. agricultural producers to either accommodate China or risk being shut out of the world's largest emerging consumer market. That might not have mattered a decade ago when U.S. farmers could rely on domestic buyers or traditional foreign markets such as Mexico and Canada. Today, China's swelling appetite for food is touching agribusiness everywhere and forcing companies to choose whether to adapt. l Related Shorter fruit trees bred to cut farm labor costsBusinessShorter fruit trees bred to cut farm labor costsSee all relatedí 8 ADVERTISEMENT Those that comply are seeing dividends. American agricultural exports to China rose to a record $25.8 billion last year from $5 billion a decade earlier. Until a few years ago, no one would have considered exporting much rice to China, the world's largest producer and consumer of the grain. Tim Johnson, president and chief executive of the California Rice Commission, called it "the ultimate example of selling ice to the Eskimos ." But starting in 2012, China went on a spree, scooping up millions of tons of the grain from countries such as Vietnam, Pakistan and India. China is now on pace to import a record 3.4 million tons of rice this year - six times more than it did in 2011, according to the U.S. Department of Agriculture. “At first they'd say, 'There's rice in the U.S.?' ... Then they'd try it, and they would really like it ." -Greg Yielding, head of emerging markets for the U.S. Rice Producers Assn. t▼ SHARE THIS QUOTE Chinese regulators want the U.S. rice industry to expand the use of insect traps down the supply chain and keep records of their findings. The USA Rice Federation, a trade association in Washington, D.C., that largely represents millers, called the Chinese demands "unrealistic and onerous ." The U.S. Department of Agriculture's Animal and Plant Health Inspection Service declined to provide details about the negotiations. A spokeswoman said the agency was currently reviewing the latest Chinese response, received Aug. 1. Other food exporters have overcome challenges gaining access to the China market. Before Chinese buyers purchased Smithfield Foods last year, the Virginia pork giant began ramping up production of meat free of ractopamine, a feed additive used to promote lean muscle that's banned in China. Dairy farmers in Nevada also built a first-of-its-kind milk powder plant to meet China's preference for whole milk powder rather than the skim milk powder standard in the U.S. c Comments Rice takes lots of water (subsidized by the American taxpayer) which should be prioritized for AMERICAN USE. Why are we giving our water for wasteful subsidized Corporate "farmers" to make a profit feeding the Chinese Communists! I think there are rice fields and silos in Northern... Webster Maximus at 2:15 PM August 27, 2014 Add a commentí See all commentsí 20 ADVERTISEMENT Other industries remain shut out. The U.S. beef industry is still trying to overturn a 2003 ban on American cattle over mad cow disease. Starting late last year, nearly a million tons of U.S. corn have been rejected at Chinese ports because of inclusion of an unapproved genetically modified strain. And some American pork imports were halted this month over fears they contained traces of ractopamine. "Demand is growing so quickly in China for so many food products - and with so many places to get them from - China can pick and choose," said Jim Harkness, a senior advisor on China for the Institute of Agriculture and Trade Policy in Minneapolis. "From a U.S. perspective, it looks like the Chinese are being picky and erecting non-tariff barriers for political reasons. But I think from the Chinese perspective, the U.S. is an outlier in some cases. Ractopamine is banned in over 100 countries ." U.S. rice farmers see export market in China Lin Fourth-generation rice grower Josh Sheppard is accompanied by his dog, Tonka, on his farm in Biggs, Calif. (Carl Costas / For The Times) In addition to China, the European Union and Russia also ban the additive. It's deemed a risk to people with cardiovascular problems. While other products struggle to win access, the U.S. rice growers are hopeful that officials in Washington and Beijing can come to terms as early as next year. If they do, analysts estimate, U.S. rice exports to China could reach several hundred million dollars a year. That would make China a top buyer of the American grain, on par with Mexico and Japan. Though it produces only 2% of the world's rice, the U.S. accounts for nearly 10% of the rice traded globally - enough to make it the fifth-biggest exporter. About half the rice grown in the U.S. ends up abroad. Still, rice consumption in China is so high the country could eat through America's annual production in 17 days. ADVERTISEMENT California's Sacramento Valley produces about one-fifth of America's rice, generally a stickier medium grain that's popular in north Asia and often is used in sushi. The rest is mostly long grain grown in the southern U.S. in states such as Arkansas, Louisiana, Mississippi and Texas. The growing Chinese appetite for imported rice may partly reflect surging food demand, analysts said. But it's mostly driven by arbitrage, as government policies have kept domestic rice prices high to protect Chinese farmers. Rice mills in China decided it was cheaper to buy foreign supplies. American rice producers can't meet that sort of mass demand - nor do they want to. Their interest is in selling packaged rice to China to fill a high-end niche. The rice producers association's survey of Chinese consumers buttressed that idea. Despite the concerns of Chinese regulators, shoppers in China overwhelmingly perceived U.S. rice as a safe alternative in a country hit by myriad food safety scandals. Josh Sheppard, a fourth-generation rice grower in Biggs, Calif., about 60 miles north of Sacramento, said he'd welcome Chinese buyers because they probably would pay more for his grains than U.S. customers - much the way Japanese buyers currently do. That's especially important now when drought has cut rice acreage in the state by 25%. ADVERTISEMENT "We don't want to compete down in the gutter. We consider ourselves a premium product, like a fine wine," said Sheppard, who heads a rice farming cooperative in Butte County that's already made plans to export to China. The cooperative is managed by Stuart Hoetger, co-founder of Stogan Group, an agricultural consulting firm in Chico, Calif. Hoetger has arranged a partnership between the rice growers and Chinese food and agriculture conglomerate Wufeng. U.S. rice farmers see China as an export market California grower Josh Sheppard heads a rice farming cooperative in Butte County that has made plans to export to China. (Carl Costas / For The Times) Medium grain rice known as Calrose grown by the cooperative is being shipped in limited quantities to Chinese ports, where Wufeng is redirecting it to customers in small markets such as the Solomon Islands, the idea being Hoetger and his growers will be ready to ship to China shortly after a trade agreement is finalized. "If China asks for something, you do it," Hoetger said. "You ask any farmer that's sold to China in the last few years and they'll tell you they've made a lot of money ."
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A bumper grain harvest triggers a capital exit~~Record Crops Spur Exits From Agriculture Investment Funds By Megan Durisin Sep 3, 2014 4:30 AM G The investment binge in U.S. agriculture funds has ended as record crops and the promise of improving meat supplies send prices plunging. After taking in more money than precious metals or energy funds during the first five months of 2014, exchange-traded products backed by agriculture had a net outflow for the year of $57.7 million as of Aug. 29, down 2.9 percent, data compiled by Bloomberg show. Energy, precious-metal, industrial-metal and broad-based funds saw net inflows over the period, boosting total raw-material investment by $341 million, or 0.5 percent. While coffee, cattle and hogs posted gains that beat most commodities this year, prices for cotton, soybeans, corn and wheat fell into bear markets. Speculator bets on an agriculture rally are down 78 percent since early April as farmers in the U.S., the world's largest grain grower, prepare to collect what the government predicts will be record harvests. Global food costs fell for four straight months through July. “We're coming up on what could be one of the biggest crop years ever," Kurt Nelson, a founder and partner at SummerHaven Investment Management in Stamford, Connecticut, said in an Aug. 28 telephone interview. The SummerHaven Dynamic Commodity Index holds about $850 million. “There's more certainty now about the success of the crop," Nelson said. “It looks like we're not going to have any surprises ." Record Crops As recently as the end of May, after rains caused planting delays that sparked a crop-price rally, U.S. agriculture ETPs tracked by Bloomberg had a net in-flow of $45.8 million for 2014. At that point, precious-metals funds had a net outflow of $380.5 million and energy funds had lost $12.7 million, while industrial metals were up $48.6 million. Near-ideal weather followed, and farmers now are expected to reap a record 14.032 billion bushels of corn and 3.816 billion bushels of soybeans, the U.S. Department of Agriculture said Aug. 12. Crop conditions on Aug. 24 were the best for that time of year in at least two decades, the USDA said. Futures for both commodities touched four-year lows on the Chicago Board of Trade since the end of June and are down more than 30 percent from this year's highs. Prospects for cheap feed grain has pared gains for cattle and hog futures. While prices are still up, ETPs linked to livestock have a net outflow of $10.2 million as of Aug. 29, down 19 percent for the year, compared with a net inflow on May 30 of $3.2 million, data compiled by Bloomberg show. Less Bullish Money managers whose net-long positions across 11 different agricultural commodities surged to 1.1 million futures and options contracts in early April, the most since 2010, had cut their bullish holdings to 248,335 contracts by Aug. 26, according to U.S. Commodity Futures Trading Commission data going back to 2006. The speculators were bearish on soybeans, cotton and sugar. The Bloomberg Agriculture Index of seven farm products, excluding livestock, has tumbled 21 percent since the end of April, as all prices fell. The Bloomberg Commodity Index of 22 raw materials slid 9.1 percent over the same period, while the MSCI All-World Index of equities gained 4.1 percent. The Bloomberg Treasury Bond Index rose 2.1 percent. As most crop futures dropped, some metals rose. Copper futures posted four straight months of gains through July, the longest rally for a most-active contract since 2011, as global stockpiles fell to the lowest since 2008. Aluminum is up 17 percent, off to its best start to a year since 2009. Gold futures gained 5.2 percent this year to $1,265 an ounce, as conflicts from Ukraine to Gaza to Iraq spur demand for a haven. ETP Rebound U.S. ETPs backed by precious metals have seen a rebound since May, with a net inflow this year of $123.3 million as of Aug. 29, data compiled by Bloomberg show. Industrial-metals funds are up $105.5 million, energy funds have a net inflow of $154.7 million, and broad-based funds are up $25.3 million. Agriculture may still rebound. Corn and soybean harvests won't start for another few weeks in the U.S., so there's still the risk of weather damage from rain or frost for the nation's two largest crops. The Pro Farmer Midwest Crop Tour pegged the soybean crop at 3.812 billion bushels, less than the USDA estimate, noting crops in Minnesota and South Dakota looked “average," the group said Aug. 22. Wheat futures rose 0.2 percent last week, the first gain in three, as fighting expanded between Ukraine and Russia. The two countries will account for a fifth of global exports this year, the USDA estimates. “We're at the low end of the grain-value range," said Ashmead Pringle, president of Atlanta-based GreenHaven Commodity Services, whose Greenhaven Continuous Commodity Index Fund oversees about $350 million. “The grains are going to see some strength going forward ." Texas Drought More than a third of Texas, the largest cotton and cattle producing state, remains in severe drought as of Aug. 26, according to U.S. Drought Monitor. Cattle futures are up 13 percent this year, feeder cattle have rallied 31 percent, and hogs have gained 17 percent as producers were slow to rebuild herds, even as cheaper grain reduces the cost of animal feed. Coffee production in Brazil, the world's top grower, may drop as much as 18 percent as a prolonged drought plagues growing areas, the National Coffee Council said. Arabica-coffee futures have surged 89 percent this year. Bumper Crop For now, the weather is primed to promote crop growth, and the USDA on Aug. 12 raised its estimates for U.S. beef and pork production this year, citing cheaper feed. Through August, the Bloomberg Commodity Agriculture and Livestock Index posted four straight months of losses, reversing four consecutive advances at the start of the year that marked the longest rally since 2010. “In the agriculture space, the more you produce, the lower the price will be," Darwei Kung, who helps manage $710 million for the Deutsche Enhanced Commodity Strategy Fund in New York, said in an Aug. 28 interview. “We do see people's interest in ETFs move exactly the same way. This year is going to turn out to be a very strong production year for all of the grains and a lot of agricultural products ." To contact the reporter on this story: Megan Durisin in Chicago at mdurisin1@bloomberg.net To contact the editors responsible for this story: Millie Munshi at mmunshi@bloomberg.net Joe Richter
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Russia bans imports of U.S. agricultural products~ ~ Russia to ban all U.S. agricultural imports Michael Winter, USA TODAY 8:44 p.m. EDT August 6, 2014 Retaliating for U.S. sanctions over Ukraine, Russia will ban or limit all American agricultural products for up to a year, a Kremlin official said Wednesday. All fruits and vegetables from the European Union will also be locked out, the country's agricultural and veterinary watchdog told RIA Novosti. Produce from Canada and Japan will also be blocked. The complete list of banned products, to be announced Thursday, will be "very substantial," said Alexey Alekseenko, an assistant to the head of the Federal Service for Veterinary and Phytosanitary Surveillance. The White House said the move would further harm Russia and its economy. "Retaliating against Western companies or countries will deepen Russia's international isolation, causing further damage to its own economy," a spokeswoman told RIA Novosti. USATODAY Russian war games raise fear of Ukraine invasion Food prices in Russia would likely rise in the short term because of the import ban but not cause long-term damage, the country's agricultural watchdog predicted. The ban is not likely to have a major impact on U.S. farmers and ranchers, said U.S. farm groups. "It is unfortunate that the biggest losers in this will be Russian consumers, who will pay more for their food now as well as in the long run," Bob Stallman, president of the American Farm Bureau Federation, told The Des Moines Register. STORY: US farm groups urge Russia to rescind ban on agricultural imports Still, farm groups urged Russian President Vladimir Putin to rescind the decree he signed earlier Wednesday authorizing the year-long ban on all agricultural imports from countries that imposed sanctions on Russian companies, banks, politicians and oligarchs because of the conflict in Ukraine. Last year, U.S. data show, Russia imported about $1.3 billion in U.S. food and agricultural products. That accounted for just over 10% of all U.S. exports to the country. Poultry was the top U.S. import, worth $310 million, followed by tree nuts ($172 million), soybeans ($157 million), and live animals ($149 million). Russia is also the 5th largest export market for U.S. pork and the 8th largest export market worldwide for U.S. beef, according to the U.S. International Trade Commission. Globally, Russia is now the second-largest agricultural importer after China among so-called emerging markets. Imports rose from $7 billion in 2000 to $33 billion in 2008, a U.S. Agriculture Department study reported. Contributing: The Des Moines Register
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2014 EU finished rice imports will decrease, exports will increase2014 EU finished rice imports will decrease, exports will increase 2014-09-02 14:11 | source: China Grain Network | according to the latest Counsellor's report released by the US Department of Agriculture's Overseas Agriculture Bureau, EU imports of finished rice in 2014 are expected to be 1.5 million tons, a decrease of about 9% from 1.37 million tons the previous year. Rice imports will be reduced to 1.4 million tons in 2015. Counsellor expects EU finished rice exports to be 300000 tons in 2014, an increase of 48% over the previous year. In 2015, the export volume of finished rice may decrease by about 33% to 200000 tons. Counsellor expects EU finished rice output to be 1.94 million tons in 2013/14, down 7% year on year. Finished rice production in 2014/15 is expected to be 1.97 million tons, up 1.5 percent.
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The dangers of cheap cornThe downsides of cheap corn By Roberto A. Ferdman August 13? The price is wrong. (Dean Hutton/Bloomberg News) This year hasn't been kind to the U.S. agricultural sector. Just ask John Deere, the world's largest manufacturer of farming machinery. The company reported a 15 percent plunge in profit for its fiscal third quarter compared with the previous quarter on Wednesday. After years of sustained growth, the company has now seen its sales fall in each of the first three fiscal quarters of 2014-and each time significantly. Tractor sales, which are often used as a barometer of agricultural sector health, have been especially weak in the United States. Deere's equipment sales fell by 6 percent in the third quarter, and are expected to tumble by another 8 percent in the fourth quarter. And next year isn't likely to prove any more promising. Deere is already forecasting an even tougher 2015-the company expects to sell even fewer tractors than it will by the end of 2014. The struggles of one of the country's largest farming equipment suppliers isn't so much an isolated business dip as it is an ailment emblematic of the farming industry at large. America's entire agricultural sector, as it happens, is having a pretty mediocre 2014 (and equally mediocre feeling about 2015, for that matter). Industry-wide sales are slated to fall by more than 6 percent this year. And U.S. farmer profits are expected to plummet by nearly 27 percent in 2014 after several years of historic highs, according to USDA estimates from earlier this year. The dip is almost entirely due to pinched crop sales, which are expected to fall by more than 12 percent this year, after falling by just over 3 percent in 2013. If that holds, U.S. crops will generate just under $190 billion in 2014, or almost $35 billion less than in 2012. But American corn and soybean farmers aren't suffering because they're struggling to grow corn and soybeans; rather, they're seeing the repercussions inherent in producing too much of them. "If you look around the country, it's pretty hard to find a bad corn crop right now," Gregory Ibendahl, associate professor of agricultural economics, said in an interview. This year's corn crop, as it turns out, is going to be the largest in history, according to USDA estimates. The same is likely to be true of 2014's soybean output (paywall). "The problem is actually corn and other crop prices," Ibendahl said. "They're too low right now ." Healthy American harvests are driving prices down significantly. Corn, wheat, and soybean prices have fallen by 35 percent, 12 percent, and 13 percent, respectively, this year, and are forecast to fall even further in 2015. That's too cheap for American farmers' liking. In some cases, the weak prices are even causing farmers to sit on their produce until prices improve. "Either through permanent or temporary storage, you're going to see huge quantities going into storage," Scott Irwin, professor of agricultural and consumer economics at University of Illinois, told the Associated Press on Wednesday. In others, farmers are selling their crop, but at severely discounted rates that border on being unprofitable. Broadly speaking, record harvests are rarely bad news. "As a farmer, you can't do anything about prices," Ibendahl said. "All you can do is try to produce as much as you can in any given year." Large stockpiles of corn today should give way to commensurately large cash piles of profit down the road, even if it means storing much of it until prices recover. But low prices can be devastating, especially if they sustain themselves over long periods of time. "If you're a farmer facing continual low prices, you might have to take some land out of production." Ibendahl said. "Somewhere along the line you might even reach a point where you have to go out of production ." The U.S. farming sector is not quite there yet-the point at which those farms that are most affected can no longer afford to stay in business-but that doesn't mean there isn't potential for such a scenario. "I think it [low prices] will continue for a lot longer than most people think it will," Ibendahl said. American farmers certainly hope that doesn't prove to be the case; nor do tractor manufacturers like Deere.
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Japan's Agricultural Dilemma~~Japan's Agriculture Dilemma Achieving large-scale agriculture is an imperative, yet political opposition is formidable. clint By Clint Richards September 02, 2014 An article in the Yomiuri Shimbun highlighting several new joint ventures between agricultural cooperatives and Japanese businesses directly points at several problems with, and possible solutions to, Japan's agricultural industry. More than any other sector in Japan, farmers and fishers will feel the effects of Japan's eventual population decline first, as most people who work in these industries are already advanced in age. Additionally, Japanese agricultural is notoriously inefficient, lacking economies of scale due to the small size of mostly family-run holdings. In the prefecture of Chiba just next to Tokyo, farming is in decline as farmers age and the number of abandoned plots increases. A new subsidiary of Sojitz Corp. called My Vegetable Corp, has begun large-scale cultivation of greenhouse vegetables, operating on 10,000 square meters of land that is expected to grow to 30,000 meters in three years. Once My Vegetable is able to develop its sales, it expects to have 200,000 square meters of “convenience store-style farms” across Japan in 10 years. Aside from achieving scale production that would reduce the number of farmers needed, the cultivation beds are raised 80cm off the ground, enabling older farmers to work without extensive bending and lifting. In the fishing industry, meanwhile, a Mitsubishi Corp. affiliate called Toyo Reizo Co., is farming blue fin tuna. With three farms producing 300 tons of fish in fiscal 2014, it has already increase production by a factor of ten since fiscal 2013. Toyo is also working with Nagasaki Takashima Fisheries Center, jointly funded by the public and private sectors, which incubates eggs that Toyo later raises. The farm on Goto Island also employs fisherman from the local cooperative, who feed the tuna the smaller fish from their catches. The adult tuna are raised for three years and reach 30kg or more. Enterprises like this between large Japanese companies and agricultural cooperatives are what Prime Minister Shinzo Abe is trying to establish on a much larger scale, as both the area of land cultivated in Japan and the number of workers has declined significantly, with the ratio of those over 65 reaching 57.4 percent in 2005. Large-scale production would make the sector more competitive in general, and thus less vulnerable to competition in trade deals like the proposed TPP. In June the LDP announced it wanted non-food companies to be able to increase their share in agricultural companies from 25 to 50 percent. However, JA-Zenchu, which represents most agricultural cooperatives, largely opposes such reform. Although the government has proposed removing JA's ability to manage regional cooperatives, this is likely to be a difficult, long-term process, as JA and its cooperatives form a significant portion of the LDP's political base. Interestingly, many of these ventures are looking to market their products not only domestically but also overseas, anticipating potential demand for Japan's food products, which are perceived as healthier and safer (particularly in China). Significant agricultural reform is unlikely as Japan's participation in TPP negotiations flounders. Nonetheless, continued progress on partnerships between cooperatives and Japan's large corporations will eventually make the agricultural sector more efficient, an imperative for the nation as its farming population shrinks.
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IGC expects global rice production of 0.4782 billion tonnes in 2014/15IGC expects global rice production of 0.4782 billion tonnes in 2014/15 2014-09-03 09:22 | source: China Grain Network | according to the latest report released by the International Grains Council (IGC), the global rice production in 2014/15 is expected to be 0.4782 billion tons, slightly higher than the previous year's 0.4763 billion tons. Global rice imports are expected to be 40.4 million tons, up from 39.9 million tons the previous year. The global ending stock of rice in 2014/15 is expected to be 0.1054 billion tons, down from 0.1095 billion tons in the previous year. (Source: Master Boyi)
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GM cultivation in Europe: A decade of legal battle~~GMO cultivation in Europe: A decade of legal battles Published: 08/08/2014 - 09:58 The European Union has agreed on a new approach to the cultivation of Genetically Modified Organisms (GMO) which allows member states to ban or restrict GMOs in their territory. The agreement should mark the end of a decade of legal problems, but in the context of ongoing EU-US free trade negotiations, vocal GMO opposition from member states and civil society is unlikely to subside. The European Union has the strictest rules on Genetically Modified Organisms (GMOs) in the world. After a decade of legal battles, the European Union reached an agreement in June 2014, allowing its member states to restrict or ban GMO crops in their territory. The new president of the Commission, Jean-Claude Juncker, has backed the new comprehensive legal framework which will give EU member states a legal basis they have been wanting for years. The EU regulatory system is based on tight safety standards and freedom of choice for consumers and farmers. The tools used to ensure freedom of choice are effective labelling and traceability. There are two key rules which govern GMOs in the EU (link to overview): a directive used for the authorisation of GMO products in EU and regulation used on food and feed made from GMO products that have been authorised.
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Pakistan's finished rice output to exceed 7 million tons~ ~ pakistan's finished rice output to exceed 7 million tons 2014-08-29 10:05 | source: China Grain Network | pakistan's National Reserve Bureau (SUPARCO) said that Pakistan's finished rice output is expected to exceed 7 million tons in 2013/14 (July to June of the following year). The planting of rice in Pakistan was completed in early July and the rice crop has entered the heading stage. Rice planting in Basmati will be completed by mid-August. Based on data from the Pakistan Rice Exporters Association, Pakistan's Basmati rice export output value reached US $0.846 billion in fiscal year 2013/14. The USDA expects Pakistan to produce 6.6 million tons of rice in 2013/14 and 6.7 million tons in 2014/15. (Source: Master Boyi)
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German minister calls on Europeans to spend more to weaken impact of Russian import ban~ ~ German Minister Urges Europeans to "Eat! "to Offset Russian Import Ban Reuters Sep. 02 2014 16:22 Michael Morrow / Flickr Germany's agriculture minister urged Europeans to eat fruit "every morning, five times a day, full stop ." . Europeans should eat more fruit and vegetables to remedy the impact of Russian restrictions on food imports from the West, Germany's agriculture minister said on Tuesday. "Eat! You should eat, I should eat, we should eat," the minister, Christian Schmidt, told German radio. Europe faces disruption to food markets from import restrictions imposed by President Vladimir Putin, although Schmidt said the situation was manageable. The one-year Russian embargo, in retaliation for Western economic sanctions over Moscow's actions in Ukraine, affects meat, fish, dairy, fruit and vegetables from the United States, European Union and others. "You cannot lament the fact that there is lots of fruit and then not eat fruit, that much is obvious. I need to get rid of it," Schmidt said in the interview with Deutschlandfunk. He was due to meet the French and Polish farm ministers in Bonn later on Tuesday to prepare for an EU meeting on Friday to address the impact of the Russian import ban. Schmidt said he was looking for alternative markets for produce like German apples in areas like South America and China, saying: "Russia is not the only country in the world that needs apples ." In the meantime, he urged Europeans to eat fruit "every morning, five times a day, full stop ." See also: Russian Food Watchdog Stops Imports of Banned EU Fruit Via Belarus
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Farmers switching to soybeans puts pressure on DuPont~ ~ Soybean Shift Pressures DuPont Chemical and Agricultural Company's Net Rose 3.9%, Though Operating Earnings Fell Updated July 22, 2014 4:23 p.m. ET Farmers' preference for planting soybeans over corn will continue to challenge DuPont Co. DD +0.60% , one of the world's largest sellers of high-tech seeds, executives said Tuesday. Plunging corn prices, weighed down by last year's record U.S. corn harvest and expectations for another bumper crop this year, are encouraging farmers in North and South America to reduce their corn acreage, cutting into DuPont's main line of seeds. DuPont's second quarter was hurt by lower-than-expected sales of corn seed. Bloomberg "If the current market environment persists, the shift in acres toward soybeans, that can temper our volume in the short term for the seed business," said James Borel, DuPont's executive vice president in charge of its agriculture business, on a conference call Tuesday discussing the company's second-quarter earnings. Profits at the Wilmington, Del., chemical and agricultural company climbed 3.9% over the period, though operating earnings fell due to lower profits from the seed business. DuPont shares fell 0.9% to $64.95 on Tuesday. The stock is up 0.6% this year. The company last month lowered its earnings guidance for the year, primarily because of softer corn-seed and herbicide sales, and seed inventory write-downs. Corn makes up about half of DuPont's seed business, according to analyst estimates. DuPont said its second-quarter agriculture sales were $3.62 billion, roughly flat with the year-earlier period. Operating earnings in the segment were $836 million, an 11% decline from the year-ago quarter. The company also reported a $263 million restructuring charge partly tied to planned layoffs as DuPont realigns the company to focus more closely on agriculture and nutrition. DuPont anticipates global staff reductions "in the low single digits, on a percentage basis, across our businesses and functions," a spokesman said Tuesday. DuPont employed about 64,000 people at the end of 2013. U.S. agricultural companies are weighing their prospects as North American farmers raise another bountiful corn crop. The U.S. Department of Agriculture this week reported that the domestic corn crop was in its best condition in a decade for this point in the growing season. Benevolent weather also boosts the odds of a huge soybean harvest. The USDA estimated recently that growers would plant a record 84.8 million acres with the oilseeds this year, while dialing back acres planted with corn. Farmers in Latin America are expected to continue a similar shift in the Southern Hemisphere over the coming months, Mr. Borel told analysts Tuesday. The abundance of grain and oilseeds expected to hit the market this autumn has pushed corn futures prices 25% lower over the past 12 months, while soybean prices have declined 17%. For seed and chemical companies, big crops have a mixed effect. While the cost of producing seeds to sell in upcoming seasons typically declines, lower crop prices leave farmers with less money to spend on farm supplies like seeds, chemicals and fertilizer. Farmers, for example, may be less willing to buy the newest versions of genetically engineered seeds. "Another strong harvest in North America, if realized, will continue to pressure overall economics for corn and soybean farmers," Mr. Borel said. The crop shift comes as DuPont is pivoting away from lower-growth commodity businesses toward higher-growth areas, such as nutritional products and agriculture. As part of the effort, DuPont last year said it plans to spin off its performance-chemicals segment, which makes materials for nonstick frying pans and house paints. DuPont reported a profit of $1.07 billion, or $1.15 a share, up from $1.03 billion, or $1.11 a share, a year earlier. Excluding certain items, operating earnings fell to $1.17 from $1.28 a share. Net sales slipped 1.4% to $9.71 billion. The company in June had projected second-quarter operating earnings moderately below the $1.28 a share posted for the year-earlier period. Analysts polled by Thomson Reuters expected per-share profit of $1.17 and revenue of $9.79 billion. The company reiterated its full-year outlook for operating earnings of $4.00 to $4.10 a share, and said its board has approved a 4% increase for its quarterly dividend to 47 cents a share, the third dividend increase in a little over two years. Write to Jacob Bunge at jacob.bunge@wsj.com and Anna Prior at anna.prior@wsj.com
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US to start $10 billion rural investment fund~ ~ White House to Begin $10 Billion Rural Investment Fund By ALEXANDRA STEVENSON July 24, 2014 12:01 amJuly 24, 2014 1:25 pm 3 Comments Photo Tom Vilsack, the agriculture secretary, greeting Carlen Overby, left, whose well in Farmersville, Calif., went dry. California would be an area of investment. Tom Vilsack, the agriculture secretary, greeting Carlen Overby, left, whose well in Farmersville, Calif., went dry. California would be an area of investment.Credit Juan Villa/Visalia Times Delta, via Associated Press Wall Street is looking for ways to invest in America's heartland, and the government is ready to play matchmaker. The White House Rural Council will announce plans on Thursday to start a $10 billion investment fund that will give pension funds and large investors the opportunity to invest in agricultural projects. Those include wastewater systems, energy projects and infrastructure development in rural America. “We're the eHarmony.com of infrastructure and business investment," the agriculture secretary, Tom Vilsack, said, referring to the online dating service. “We're going to be a connector," he added. “This is a new role for the U.S. Department of Agriculture ." The fund, called the Rural Infrastructure Opportunity Fund, will be backed by CoBank, a cooperative bank and a member of the Farm Credit System, a government-sponsored network of banks that lend to the agriculture industry. CoBank has committed the first $10 billion to the fund. Capitol Peak Asset Management, an investment firm, will manage the fund's investments and the Agriculture Department will help find projects for the fund. Investors will be able to make debt and equity investments in individual and bundled projects. They will earn returns on their principal investments along with interest. The move comes as pension funds and institutional investors, faced with few investment opportunities that yield high returns in the face of low interest rates, have begun to shift large amounts of money into less traditional investments that promise bigger returns like hedge funds and private equity firms. Flows into the hedge fund industry from institutional investors are at all-time highs. Faced with what he described as “extraordinary” demand from local communities in rural America for capital, Mr. Vilsack last year enlisted the help of Matthew McKenna, a former executive at PepsiCo, to help find a way to attract Wall Street and large institutional investors. Through the process, Mr. McKenna discovered that investors with big war chests were interested in making investments in more than just one or two individual projects at a time. As a result, the fund will offer investors the opportunity to put money into bundled projects. One specific area where investment is needed is in California, Mr. Vilsack said, where the state is facing one of its most severe droughts on record. “There is a business opportunity there because people will pay for water," he added. Since the 2008 financial crisis, large pools of pension money have flowed directly into farmland and agricultural investments. Some Wall Street investors are trying their hand at creating different ways to tap demand from both large pensions funds and individual investors. One group of investors has begun to buy farmland through real estate investment trusts - including the American Farmland Company, Farmland Partners and the Gladstone Land Corporation - that combine crops and land into an asset class for ordinary investors to buy. So strong is the demand from some corners of the financial world that agricultural conferences once attended mostly by farmers and others in related fields are now crowded with institutional investors, venture capitalists and hedge fund managers. Mr. Vilsack will announce the new Rural Infrastructure fund on Thursday at a conference in Washington. Nearly 600 financial executives, investors and government officials have convened for the White House's Rural Opportunity Investment Conference. The list of speakers for the event includes Treasury Secretary Jacob J. Lew and Ken Wilson, vice chairman of BlackRock, the world's largest asset manager.
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Japan and the United States to restart agricultural tariffs and auto negotiations~ ~ Japan, U.S. resume series of talks on farm tariffs, autos Kyodo Jul 15, 2014 WASHINGTON - Officials from Japan and the United States resumed a series of meetings Monday to discuss tariffs on agriculture produce under the Trans-Pacific Partnership trade pact, as well as the bilateral trade of cars. The Japanese and U.S. officials followed up a meeting of chief negotiators with the 12-country TPP initiative, which ended Saturday in Ottawa without any breakthroughs on the current impasse. Hiroshi Oe, Japan's deputy chief TPP negotiator, and Wendy Cutler, acting deputy U.S. trade representative, began a two-day meeting Monday on the long-standing issue of Japan's demands to maintain exceptional tariffs on some of its farm products under the deal. One of the sticking points in the Japan-U.S. negotiations is Tokyo's tariffs on beef and pork. Japan has been considering lowering tariffs on beef and pork, and demanded the United States allow Tokyo to introduce safeguard measures to protect domestic producers. The measures would limit imports of the products should they surge under the TPP. Japan has also called for exceptional tariffs on rice, wheat, dairy products and sugar. Japan and the United States are among the 12 nations working to strike a TPP deal that would cover some 40 percent of global economic output. The others are Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Following the talks on farm products, the Japanese and U.S. governments will begin three days of meetings Wednesday on the bilateral trade of automobiles in connection with the TPP. Takeo Mori, deputy director general of the Economic Affairs Bureau of the Foreign Ministry, and Cutler will discuss Washington's call for Tokyo to lift nontariff barriers such as regulatory standards in the hope that U.S. automakers can boost sales in Japan. The existing U.S. tariffs on Japanese cars and trucks are also expected to be on the agenda for that meeting. Meanwhile, the minister in charge of the TPP discussions, Akira Amari, said at a Tuesday news conference in Tokyo that the 12 TPP countries should aim to strike an deal before the end of this year, and that an agreement needs to be something “more detailed” than a broad pact. “We need to have an agreement that can be put before the Diet," Amari said. “Leaders of the 12 nations should share the notion that we will put as much effort as we can to seal a pact by the year's end. It is not desirable to let the negotiations go on for a long time ."
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U.S. Experiences GMO Labeling Storm~ ~ US storm over GM labelling GREGOR HEARD 29 Jul, 2014 02:00 AM All European countries and over 40 others require GM labels and so should the United States. A STORM has erupted in the small north-eastern US state of Vermont over a new law that will require food for human consumption to be labelled if it contains genetically modified (GM) material. The US Grocery Manufacturers Association (GMA) has filed a complaint in the US Federal District Court to overturn the law. The GMA claims the law is excessively costly, and that by doing the work on a state level, sets the precedent for multiple laws across different states, making it difficult for national grocery businesses. Within its submission to the court, the GMA said Vermont was acting out of its authority within the US constitution. However, Vermont's decision has won plaudits from Australian anti-GM campaigners. "We applaud Vermont's law to require the labelling of foods made using GM techniques and encourage other US states to follow suit," said Bob Phelps, Gene Ethics director. “All European countries and over 40 others require GM labels and so should the United States ." He said labelling information was an aside to debate over the safety of GM food, but allowed shoppers to make informed decisions Mr Phelps said labelling compliance would not be expensive for the food manufacturing sector.
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Vietnam exports 3.345 million tons of rice from January to July~ ~ vietnam exports 3.345 million tons of rice from January to July 2014-07-29 09:36 | source: China Grain Network | according to data released by the Vietnam Food Association, Vietnam's rice exports from January 1 to July 22, 2014 were 3.345 million tons, a decrease of about 18% from 4.1 million tons in the same period last year. So far this year, the average export price of rice is US $432 per ton, FOB price, up about 1% from US $429 in the same period last year. Vietnam exported 355,543 tons of rice from July 1 to 22, down about 38% from July last year and 47% from June this year. The average export price of rice so far in July is US $435 per ton, up 5% from the same period last year and about 3% from the previous month.
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Global corn and wheat may move higher on demand boost~ ~ global corn and wheat may move higher on demand boost 2014-07-28 10:05 | source: China Grain Network | according to an article written by Reuters columnist Gavin Maguier, the general increase in global agricultural product inventories is the main cause of the significant decline in agricultural product prices in recent months. Among them, the prices of corn, wheat and soybeans in the new season are all close to the lowest level since 2010. Corn and wheat prices, if they continue to fall in the coming weeks and months, could spur improved demand and lay the groundwork for a price rebound. But the rebound in soybean futures prices may face pressure from exporters to sell stocks at rallies. The article points out that the harvest of winter wheat in the United States is coming to an end, and the pollination period of corn crops is in good condition. More and more traders and market participants believe that the supply situation of corn and wheat is basically a foregone conclusion, and the supply situation of corn and wheat will not change much from now to the autumn harvest. The U.S. Department of Agriculture predicts that the global ending inventory of corn in 2014/15 is slightly higher than 0.188 billion tons, and the global ending inventory of wheat is slightly lower than 0.19 billion tons, totaling more than 0.375 billion tons, which is the highest level since 2000. Ample stocks have prompted traders to turn their attention to the demand side, looking for signs of demand and guessing how large demand could help corn and wheat prices rebound. According to Ma Guier, livestock stocks, ethanol production and exports are the three pillars of corn demand, while domestic and global demand for wheat flour processing is the main consumption of wheat. By all accounts, the recent sharp fall in grain prices has boosted end-user profits. If prices continue to decline, corn and wheat demand is likely to show strong growth in the coming weeks and months. At the same time, American farmers are flush with cash, so they are not eager to sell corn or wheat at such low prices. Instead, it seems that farmers intend to take advantage of the rich storage network across the country so that they do not have to sell large-scale grain to the market. The sluggish pace of farmers' sales, coupled with improved end-user profits, will provide potential support to the corn and wheat markets and set the tone for a steady rebound in corn and wheat prices in the second half of 2014. In the case of soybeans, stocks held by major exporters are more important for price trends. With the U.S. soybean crop still not entering the critical bulging period, the selling pressure on the soybean market is much less than that on the corn and wheat markets. Although the price of corn in the new season has fallen by nearly 18% since the beginning of the year, the price of wheat in December has fallen by nearly 13%, and the price of soybean in November has fallen by less than 6% in the same period, because the market is still worried about the bad weather after the U.S. soybean crop enters the grain-bulging period in August. This means that exporters are the key to the future direction of soybean prices, as exporters will sell stocks when prices strengthen, which may limit the rebound momentum of soybean prices in the near to medium term.