World Agriculture
Developments, trade, data, and topics in world agriculture
-
Global Soybean Supply EasingGlobal Soybean Supply Easing august 11, 2013 22:20 Source: china securities journal the expected increase in production is the core factor causing the recent downturn in the soybean market, especially soybean meal prices. At the same time, China's soybean meal mainly depends on the import of the United States, South America and other countries soybean crushing income, so the trend of Dalian soybean meal and soybean is more closely linked. U.S. soybean yield prospects are optimistic, no doubt negative in the domestic soybean meal trend. Whether it is American or South American soybean, its yield and yield are mainly affected by weather, planting area and other factors. Currently, the U.S. crop belt has relatively good weather and still maintains high yield expectations. With the passage of time, spring sowing soybeans in the United States in August gradually entered the key growth period of podding and filling, which was particularly sensitive to weather conditions. The latest climate forecast released by the US Oceanic and Atmospheric Administration shows that the weather in the main producing areas of American beans will remain in good condition until autumn. As of August 4, the excellent rate of American beans was 64%, 63% last week, 29% last year, the flowering rate was 79%, 93% last year, the five-year average was 85%, the pod setting rate was 39%, 69% last year, and the five-year average was 51%. However, the current weather in the U.S. bean producing area is good, which is conducive to crop growth. A meteorologist said on the 7th of this month that the temperature in the U.S. crop planting belt in the next two weeks is suitable and the soil moisture is generally good, which will boost the growth of soybean crops. The prospect of high yield of U.S. beans continues to improve and the prospect of high yield is optimistic. According to the latest monthly report of the US Department of Agriculture, the soybean yield in 2013/2014 was 44.5 pu/acre, much higher than last year's 39.6 pu/acre. Last year's yield was mainly due to dry weather. At the same time, the U.S. Department of Agriculture raised the total U.S. soybean output in 2013/2014 to 3.42 billion bushels, and the U.S. soybean carry-over inventory in 2013/2014 to 0.295 billion bushels. In South America, the U.S. Department of Agriculture estimated Brazil's 2013/2014 soybean production at 85 million tons, and Argentina's 2013/2014 soybean production at 53.5 million tons, both of which are at historically high levels. In addition, the U.S. Department of Agriculture also announced that the global soybean carry-over inventory for 2013/2014 was 74.12 million tons, an increase of 430000 tons from the 73.69 million tons reported last month, indicating that global soybean supply is developing in a loose direction. There are also demand factors that affect the trend of soybean meal, such as the benefits of pig farming. According to the traditional "pig cycle" theory, summer was originally the season with the lowest demand for pork consumption of the year, but according to the monitoring data of the Ministry of Agriculture and the Ministry of Commerce, pork prices have risen nationwide for seven consecutive weeks. The "pig cycle" did not play a substantial role in this round of meat price increase. This is mainly due to the loss of pig breeding in the previous period. According to the "pig cycle" theory, the number of breeding sows should decrease, and statistics It shows that the number of breeding sows has been maintained above 50 million for 10 consecutive months, and the number of breeding sows in June was 50.08 million. The traditional "pig cycle" theory does have some influence on free-range breeding, but now the state has strengthened the regulation and control of the pig breeding market, and the trend of large-scale development of breeding is obvious, and the traditional theoretical law is not very obvious. The current round of meat price increase is mainly due to: the current high temperature, on the one hand, it affects the slaughter rate of live pigs, and farmers are pressing down on the slaughter due to low consumption, which directly leads to a decrease in the circulation of live pigs in the market, thereby pushing up the price of live pigs; on the other hand, the temperature High is also not conducive to the growth of live pigs, and it also increases the cost and transportation cost and risk of live pig prices. However, this situation is less sustainable and is a phased rise. The strong demand for pork may not be until after the Mid-Autumn Festival and National Day, mainly because the temperature is gradually cooler and there are more holidays. At the same time, the canteens of colleges and universities are also one of the main groups of pork consumption, and their consumption power cannot be underestimated. But as far as the third quarter is concerned, meat prices may hardly continue to be optimistic, and it is expected that the fourth quarter will show a steady upward trend. http://futures.hexun.com/2013-08-11/156989924.html man of Feeding
-
Learn about agricultural cooperatives in JapanUnderstanding the Japan Agricultural Cooperatives Yamashita Kazuhito [Profile][2013.07.30] Read in: japanese| simplified Chinese characters| traditional Chinese characters| ????????| The Japan Agricultural Cooperatives group, or the JA, continues to command power and influence despite the decline of Japanese agriculture. Yamashita Kazuhito explains how this has come to pass and looks at the implications of JA opposition to Japan's participation in the Trans-Pacific Partnership. There is a great mystery surrounding the Japan Agricultural Cooperatives group, known as the JA. It is commonly phrased in questions like: “If Japanese agriculture is in decline, why is the JA developing, and even flourishing?" and “If the number of farmers is decreasing, why does the JA have such a large political influence ?" A Japanese Financial Giant It appears that nothing can check the steady fall of Japanese agriculture. Gross agricultural production peaked at ¥11.7 trillion in 1984 and declined to ¥8.2 trillion in 2011. In 1960 there were over 6 million farming households, representing 14.5 million people; the number of households fell by more than half, to 2.5 million, in 2010, and the agricultural workforce dropped to 2.5 million people by 2012-one-sixth of the former level. Despite all this, the JA continues to grow. In 1960 it had 6.5 million members; by 2010, that number had grown by 50% to 9.7 million. The organization's banking businesses commanded ¥88 trillion in funds in 2012-making JA a megabank competing for the number-two spot in the country. The total assets of its insurance arm amount to ¥47 trillion, the same level as Japan's biggest life insurance company, Nissay, which has ¥51 trillion in assets. On the political scene, the JA has developed the largest political movement opposing Japan's participation in the Trans-Pacific Partnership, gathering over 10 million signatures. In the House of Representatives election at the end of 2012, many Liberal Democratic Party candidates were elected after promising that they would oppose the TPP. Over half of the LDP's Diet members belong to the parliamentary group opposing the trade agreement. How has the JA managed to increase its economic and political clout when agriculture has been in steady decline for so long? To answer this question, we must look at some of the peculiar characteristics of this organization. Wide-Ranging Powers Due to food scarcity following World War II, the government needed to take action to prevent rice from being sold on the black market for high prices. To do so, the government formed the JA by reorganizing an entity that used to regulate all aspects of farming villages during the war, from agriculture to finance. The JA is the only body in Japan with a license from the government to operate banking, life insurance, and damage insurance businesses. In contrast to North American and European associations that have licenses for discrete activities-for example, buying agricultural materials or selling produce-the JA is an almighty organization with wide-ranging powers. Agricultural reform after the war gave tenant farmers ownership of farmland. The socialist movement among the farmers thus retreated, with conservativism taking its place, and the JA was the organization that represented this change. While giving support to stable, conservative governments, it became the largest lobbying group in politics. Through its activities, the JA generated votes for the LDP and in return was rewarded with various subsidies and higher prices for government rice purchases. Each time the price increased with a government purchase, the JA accrued more revenue from its fees on grain sales. Furthermore, small-scale farmers, who by all rights should have been put out of business by high production costs, found it cheaper to produce their own rice instead of buying it. As a result, they continued to farm, and the more efficient farming households did not accumulate farmland. A lot of small-scale farmers worked full-time in factories and other jobs, engaging in farming activities only on weekends, and much farmland was sold for residential purposes, generating enormous amounts of money. Whenever farmers earned a salary or sold land, the proceeds invariably ended up in JA savings accounts. The continued existence of small-scale farmers worked to the JA's advantage because the banking business was part of its operations. Agriculture may have declined, but the JA has prospered. High Rice Prices and Attractive Financial Products All citizens can join the local JA branch as “associate” members ( jun kumiai-in). They will not be able to take part in decision-making but they can make use of the JA's businesses. The JA is the only cooperative in Japan with a system that allows this. The JA actively recruited associate members by offering mortgages, car loans, and insurance with attractive terms. The reason that the JA's membership has increased despite declining numbers of farmers is because of the burgeoning associate membership. The JA supported a large number of small-scale farmers, not a small number of large-scale ones. It has secured funds by expanding the associate membership program, and through the weight of numbers thus amassed it now commands considerable political influence. It was high rice prices that allowed the cogs in this machine to keep turning. When electoral reforms created a system of single-seat constituencies for lower house elections in 1994, this also worked in the JA's favor. Compared with the multiseat constituency contests that had been the norm until then, this new system enabled more effective vote leverage: when two candidates compete for a single seat, shifting just 1% of the vote to the other candidate creates a difference of 2% between them. It is difficult to defend against this. As the farming population dwindles, the JA may lose the power to put its preferred candidates in office, but it retains the ability to keep the candidates it dislikes down and out. A Crumbling Foundation? Participation in the TPP will remove rice import tariffs-which currently stand at 778%-and lower prices, causing the JA's revenues from fees on rice sales to decrease. This represents a serious threat to one of the foundations for the organization's success. Abolishing import taxes on other produce will also cause the JA losses. The JA exerted pressure on the LDP's TPP committee, demanding that the government take rice, wheat, beef, pork, dairy products, and various crops used to make sugar and other sweeteners off of the table for any discussion of removal of import taxes. The TPP committee has stated that the government should be prepared to withdraw from negotiations if these conditions cannot be met. The Diet committees on agriculture, forestry, and fisheries of both the upper and lower houses have also adopted this stance. But the countries participating in the TPP negotiations are searching for a serious, high-level free trade agreement and cannot accept Japan's demands for exceptions. Naturally, the aim of the Trans-Pacific Partnership is to encourage free trade and investment. Japan cannot participate if it chooses to press ahead with these demands. Inviting Backlash Consider what continuing to implement import taxes would entail. Larger businesses would be able to move their factories to different parts of the TPP region and export to countries participating in the TPP without encountering import taxes. Small and medium-sized businesses, on the other hand, which cannot afford to move operations overseas, would need to keep paying tariffs when they exported their products. Such businesses would therefore suffer disadvantageous competitive conditions effectively excluding them from trade in the enormous Asia-Pacific region. We could expect to lose jobs in Japan. In January this year the advisory committee on deregulation in the government began to consider reform that might separate the JA's banking and insurance businesses and abolish its exemption from antitrust laws. The JA is being driven into a corner. If the JA's opposition to the TPP succeeds and Japan does not take part, the organization could invite the wrath of ordinary citizens, including those who work at smaller firms. This in turn could signal the beginning of the JA's demise. If that happens, agricultural businesses and policies will probably be set free from the shackles that have bound them for so long. (Originally written in Japanese on May 14, 2013.) Understanding the Japan Agricultural Cooperatives Yamashita Kazuhito [Profile] [2013.07.30] Read in: japanese| simplified Chinese characters| traditional Chinese characters| ????????| The Japan Agricultural Cooperatives group, or the JA, continues to command power and influence despite the decline of Japanese agriculture. Yamashita Kazuhito explains how this has come to pass and looks at the implications of JA opposition to Japan's participation in the Trans-Pacific Partnership. Simple view / Print There is a great mystery surrounding the Japan Agricultural Cooperatives group, known as the JA. It is commonly phrased in questions like: “If Japanese agriculture is in decline, why is the JA developing, and even flourishing?" and “If the number of farmers is decreasing, why does the JA have such a large political influence ?" A Japanese Financial Giant It appears that nothing can check the steady fall of Japanese agriculture. Gross agricultural production peaked at ¥11.7 trillion in 1984 and declined to ¥8.2 trillion in 2011. In 1960 there were over 6 million farming households, representing 14.5 million people; the number of households fell by more than half, to 2.5 million, in 2010, and the agricultural workforce dropped to 2.5 million people by 2012-one-sixth of the former level. Despite all this, the JA continues to grow. In 1960 it had 6.5 million members; by 2010, that number had grown by 50% to 9.7 million. The organization's banking businesses commanded ¥88 trillion in funds in 2012-making JA a megabank competing for the number-two spot in the country. The total assets of its insurance arm amount to ¥47 trillion, the same level as Japan's biggest life insurance company, Nissay, which has ¥51 trillion in assets. On the political scene, the JA has developed the largest political movement opposing Japan's participation in the Trans-Pacific Partnership, gathering over 10 million signatures. In the House of Representatives election at the end of 2012, many Liberal Democratic Party candidates were elected after promising that they would oppose the TPP. Over half of the LDP's Diet members belong to the parliamentary group opposing the trade agreement. How has the JA managed to increase its economic and political clout when agriculture has been in steady decline for so long? To answer this question, we must look at some of the peculiar characteristics of this organization. Wide-Ranging Powers Due to food scarcity following World War II, the government needed to take action to prevent rice from being sold on the black market for high prices. To do so, the government formed the JA by reorganizing an entity that used to regulate all aspects of farming villages during the war, from agriculture to finance. The JA is the only body in Japan with a license from the government to operate banking, life insurance, and damage insurance businesses. In contrast to North American and European associations that have licenses for discrete activities-for example, buying agricultural materials or selling produce-the JA is an almighty organization with wide-ranging powers. Agricultural reform after the war gave tenant farmers ownership of farmland. The socialist movement among the farmers thus retreated, with conservativism taking its place, and the JA was the organization that represented this change. While giving support to stable, conservative governments, it became the largest lobbying group in politics. Through its activities, the JA generated votes for the LDP and in return was rewarded with various subsidies and higher prices for government rice purchases. Each time the price increased with a government purchase, the JA accrued more revenue from its fees on grain sales. Furthermore, small-scale farmers, who by all rights should have been put out of business by high production costs, found it cheaper to produce their own rice instead of buying it. As a result, they continued to farm, and the more efficient farming households did not accumulate farmland. A lot of small-scale farmers worked full-time in factories and other jobs, engaging in farming activities only on weekends, and much farmland was sold for residential purposes, generating enormous amounts of money. Whenever farmers earned a salary or sold land, the proceeds invariably ended up in JA savings accounts. The continued existence of small-scale farmers worked to the JA's advantage because the banking business was part of its operations. Agriculture may have declined, but the JA has prospered. High Rice Prices and Attractive Financial Products All citizens can join the local JA branch as “associate” members ( jun kumiai-in). They will not be able to take part in decision-making but they can make use of the JA's businesses. The JA is the only cooperative in Japan with a system that allows this. The JA actively recruited associate members by offering mortgages, car loans, and insurance with attractive terms. The reason that the JA's membership has increased despite declining numbers of farmers is because of the burgeoning associate membership. The JA supported a large number of small-scale farmers, not a small number of large-scale ones. It has secured funds by expanding the associate membership program, and through the weight of numbers thus amassed it now commands considerable political influence. It was high rice prices that allowed the cogs in this machine to keep turning. When electoral reforms created a system of single-seat constituencies for lower house elections in 1994, this also worked in the JA's favor. Compared with the multiseat constituency contests that had been the norm until then, this new system enabled more effective vote leverage: when two candidates compete for a single seat, shifting just 1% of the vote to the other candidate creates a difference of 2% between them. It is difficult to defend against this. As the farming population dwindles, the JA may lose the power to put its preferred candidates in office, but it retains the ability to keep the candidates it dislikes down and out. A Crumbling Foundation? Participation in the TPP will remove rice import tariffs-which currently stand at 778%-and lower prices, causing the JA's revenues from fees on rice sales to decrease. This represents a serious threat to one of the foundations for the organization's success. Abolishing import taxes on other produce will also cause the JA losses. The JA exerted pressure on the LDP's TPP committee, demanding that the government take rice, wheat, beef, pork, dairy products, and various crops used to make sugar and other sweeteners off of the table for any discussion of removal of import taxes. The TPP committee has stated that the government should be prepared to withdraw from negotiations if these conditions cannot be met. The Diet committees on agriculture, forestry, and fisheries of both the upper and lower houses have also adopted this stance. But the countries participating in the TPP negotiations are searching for a serious, high-level free trade agreement and cannot accept Japan's demands for exceptions. Naturally, the aim of the Trans-Pacific Partnership is to encourage free trade and investment. Japan cannot participate if it chooses to press ahead with these demands. Inviting Backlash Consider what continuing to implement import taxes would entail. Larger businesses would be able to move their factories to different parts of the TPP region and export to countries participating in the TPP without encountering import taxes. Small and medium-sized businesses, on the other hand, which cannot afford to move operations overseas, would need to keep paying tariffs when they exported their products. Such businesses would therefore suffer disadvantageous competitive conditions effectively excluding them from trade in the enormous Asia-Pacific region. We could expect to lose jobs in Japan. In January this year the advisory committee on deregulation in the government began to consider reform that might separate the JA's banking and insurance businesses and abolish its exemption from antitrust laws. The JA is being driven into a corner. If the JA's opposition to the TPP succeeds and Japan does not take part, the organization could invite the wrath of ordinary citizens, including those who work at smaller firms. This in turn could signal the beginning of the JA's demise. If that happens, agricultural businesses and policies will probably be set free from the shackles that have bound them for so long. (Originally written in Japanese on May 14, 2013.) http://www.nippon.com/en/currents/d00082/ contributions by Zhang Hongzhou
-
USDA Provides Financial Support to Rural Business OwnersUSDA Seeks Applicants for Funds to Assist Rural Microentrepreneurs WASHINGTON, Aug. 15, 2013 - Agriculture Secretary Tom Vilsack announced today the availability of loan and grant funds to support rural microentrepreneurs and microenterprises. "By supporting very small business enterprises through the Rural Microentrepreneur Assistance Program, USDA has been able to direct assistance to small firms that otherwise might not be able to obtain credit," said Vilsack. "This program has shown that even a modest investment of federal dollars can have a huge impact for the local economy in small towns across rural America ." Despite budget uncertainties, USDA remains focused on strengthening the rural economy. USDA's Rural Microentrepreneur Assistance Program (RMAP) was established under the 2008 Farm Bill to support the development and ongoing success of rural microentrepreneurs and microenterprises, which are defined as rural businesses with 10 or fewer employees. About $12.2 million will be provided to eligible applicants this year. Under the program, USDA may provide loans of up to $500,000 to Microenterprise Development Organizations (MDOs). They, in turn, make microloans for business start-up or development to eligible microentrepreneurs who are unable to obtain conventional credit elsewhere. Grants of up to $30,000 are available for MDOs to provide technical assistance and training, particularly in rural areas that have experienced significant outmigration. USDA does not directly provide funds to the ultimate recipients. RMAP applications are due by September 13, 2013. More information about how to apply is available in the August 14, 2013 Federal Register. View it here: www.gpo.gov/fdsys/pkg/FR-2013-08-14/pdf/2013-19765.pdf, or by contacting any USDA Rural Development state office. RMAP funds have helped a number of small businesses since the program began. In 2010, USDA provided the Southern Illinois Coal Belt Champion Community, Inc., a $500,000 loan and $187,000 grant to capitalize a revolving loan fund and provide technical assistance for microbusinesses in rural southern Illinois. In the first three years of the project, this organization has helped 16 microenterprises with direct loans totaling $650,000 that have created or saved 67 jobs. The businesses supported include medical offices, and retail, restaurant and manufacturing operations. Since the program began, USDA has provided 97 loans totaling more than $37 million and 124 grants totaling more than $9.5 million to 110 MDOs. These organizations used the USDA funding to make more than 760 microloans to 712 rural microenterprises. This assistance to individual businesses has created or saved an estimated 2,700 jobs. Secretary Vilsack said that today's announcement is another reminder of the importance of USDA programs, such as RMAP, for rural America. A comprehensive new Food, Farm and Jobs Bill would further expand the rural economy, Vilsack added, saying that's just one reason why Congress must get a comprehensive Bill done as soon as possible. President Obama's plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way - strengthening America's economy, small towns and rural communities. USDA's investments in rural communities support the rural way of life that stands as the backbone of our American values. President Obama and Agriculture Secretary Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities. USDA, through its Rural Development mission area, has a portfolio of programs designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. USDA has made a concerted effort to deliver results for the American people, even as the Department implements sequestration - the across-the-board budget reductions mandated under terms of the Budget Control Act. USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible. USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users) Last Date Modified: 08/15/2013 man of Feeding
-
Without joining the TPP, Japan's agriculture must be reformed.Without joining the TPP, Japan's agriculture must be reformed. TPP Or No TPP Japanese Agriculture Must Be Reformed 8/19/2013 @ 9:24PM| From this Thursday the 11 countries negotiating the Trans Pacific Partnership (TPP) trade agreement-the United States and Japan most important among them-will meet again in Brunei. This session, lasting through the 31st, will be first in which Japan will participate as a full negotiating member. Indications are it will be a particularly arduous negotiation. The TPP Committee of the Japan's ruling Liberal Democratic Party (LDP) adopted a resolution that, if five products-rice, wheat, beef and pork, dairy products, and sweetening resources (e.g. sugar cane and beets)-cannot be exempted from tariff elimination, Japan should withdraw from the talks. How really vulnerable to free trade is Japanese agriculture, and why is Japanese agriculture so presumably uncompetitive? One of the most authoritative analysts of these issues is Yamashita Kazuhito, research director specializing in agricultural policy at the Canon Institute for Global Studies. Recently Yamashita published a report entitled: “The Road to Japan's Becoming an Agriculture Based Country ." This may sound like Japan reverting to a pre-industrial agrarian economy, but it is not. Yamashita is talking about arresting and reversing a precipitous decline in much of Japanese agriculture, especially cultivation of rice. Part of Yamashita's solution involves TPP. But his sine qua non for saving Japan's agriculture is abolishing government anti-competitive, anti-market policies and structures imposed over decades that have zombified this industry. How deep is the crisis of Japanese agriculture? Yamashita provides some data: The total value of Japan's agricultural output, after peaking at JPY 11.7 trillion (USD 120 billion) in 1984, had declined by one-third to JPY 8.2 trillion (USD 85 billion) in 2011. Income from farming that had reached JPY 6.1 trillion (USD USD 63 billion) in 1990, by 2007 had declined by almost half, to JPY 3.3 trillion (USD 34 billion). The most severe decline has been in paddy rice production. In 1960 rice still accounted for about 50% of total agricultural output value. In 2010 the share dropped below 20%. In 1960 farmers over 65 and older made up the total. Today they make up 60%. Agricultural land-the most indispensable factor in farming-totaled some 6 million hectares (one hectare is 2.471 acres) in 1961. Since, public works have added over 1 million hectares. Adding these figures, we would expect agricultural to aggregate today to over 7 million hectares. In fact, it has declined to some 4.6 million hectares. Irrigated paddy acreage of 2.5 million hectares has been abandoned or converted to other uses. In 2010 arable land abandoned or taken out of production totaled 400,000 hectares, an area the size of Saitama and Shiga prefectures combined. The explanation given by Japan's Ministry of Agriculture, Forestry, and Fisheries for abandonment of so much agricultural land is the aging of Japan's farmers. Yamashita says this is wrong. The reason that land is being abandoned and that farmers' average age keeps rising is that profits from farming keep declining. Because profits from farming have declined, children have declined to succeed their parents in farming. This leaves aging couples no choice but to continue farming themselves. Also, they realize little improvement in income from expanding the acreage they cultivate, so they allow it to go fallow. And this is before considering the effects of Japan's “genhan” system (below). Are Japanese agricultural products-particular the “sacred five” of rice, wheat, beef and pork, dairy products, and sweetening resources (e.g. sugar cane and beets)-really so uncompetitive that protection is the only option? Yamashita strongly differs. Quality and effective marketing trump prices in almost all product markets-think BMWs. The quality of Japanese rice, beef, and dairy products ensures ready and profitable markets-both at home and, especially, in neighboring countries, especially China. Japan should not be afraid to import lower quality rice for catering and restaurants, as this will free up premium quality domestic rice for export. The greatest obstacle to Japanese rice competitiveness is Japan's protectionist policies. In Japan the price of rice is supported by an 800% tariff, direct price supports and-most egregiously-the “genhan” system of mandated reduction in cultivated acreage. Government policy has focused on keeping prices high and keeping out imports-resulting in a great burden on consumers-rather than deregulating to lower costs that would also raise profits and strengthen competitiveness against imports while stimulating exports. According to Yamashita, the “genhan” system has killed the competitiveness of Japan's fabled rice because it acts directly to keep costs high. Cost per unit of quantity is derived by dividing cost of the cultivating specific area by the quantity yield of the area; as yield increases the unit cost decreases. The cost curve for cultivating rice slopes steeply downward as the area under cultivation increases. The key to reducing costs of rice production is increasing the size of cultivated paddy fields. The “genhan” system-like its American counterpart-pays farmers not to farm. In the case of Japan, direct payments to farmers for keeping land out of rice cultivation keeps old couples with very small land holdings in production on a small scale (harvesting enough for their own needs, rather than buying high priced rice at the store) on the one hand, while, on the other hand, and more seriously for overall efficiency and industry rationalization, motivating them not to sell or lease their small holdings to others who might consolidate land into more efficient, lower cost rice production. Of the 3.5 million hectares of available paddy land in Japan, 1 million hectares is being lost through the “genhan” system. Yamashita estimates that average production costs could be halved by land consolidation and other benefits from abolishing the “genhan” system. A U.S. TPP delegation led by USTR Michael Fromer stopped in Tokyo on the way to Brunei for one-on-one negotiations with Japanese counterparts. Major pressure is being put on the Abe government to commit to reaching a final TPP agreement by year end. This will mean bending by Japan on a number of sector opening issues that are more important to the U.S. than agriculture, including autos and insurance. But for Japan the TPP deal breaker will be agriculture. Ironically, perhaps, what Yamashita and other analysts are saying is TPP or no TPP, Japanese agriculture must reform or perish. This article is available online: http://www.forbes.com/sites/stephenharner/2013/08/19/tpp-or-no-tpp-japanese-agriculture-must-be-reformed/ contributions by Zhang Hongzhou
-
Members of the European Parliament, the Council and the Commission agree on an EU agricultural policy for 2014EU farm policy after 2014: MEPs, Council and Commission strike a political deal OTHERS Agriculture − 28-06-2013 - 16:25 More emphasis on environmental protection, mandatory top-ups for young farmers in all member states, stronger farmers' organisations and less red tape when spending EU funds. These are the main lines of the agreement on farm policy struck on Wednesday by Parliament, Council and the Commission. Decisions still need to be taken on capping direct payments to bigger farms and distributing funds between farmers. The political agreement on the Common Agricultural Policy (CAP) reforms comes after three months of intensive negotiations but still depends on a final agreement on the EU's long-term budget for 2014-2020. "The political agreement we reached today is a victory both for EU farmers and consumers. This is the first time Parliament has been involved in the reform of EU farm policy as a full co-legislator and we proved that we are fully capable of doing the job. We managed to improve the proposals while defending Parliament's mandate," said Agriculture Committee chair and head of Parliament's negotiating team Paolo De Castro (S&D, IT). "The CAP of the future will be fundamentally different and the dependency culture of the past is now a thing of the past. We have managed to ensure better environmental protection and avoid double funding. The MFF-related issues are still open, as Council did not have a mandate to negotiate on them, but these will be finalised once the EU's new long-term budget is approved," said Luis Manuel Capoulas Santos (S&D, PT), rapporteur for direct payments and rural development. EU funds only for active farmers To ensure that direct payments go only to active farmers, MEPs persuaded Council to draw up a blacklist of entities, such as airports or sports clubs, to be automatically excluded from EU funding unless they prove that farming contributes to a substantial share of their income. Greener farm policy for everyone Under the agreement, 30% of member states' budgets for direct payments may be spent only if mandatory greening measures are carried out. However, the measures will be implemented gradually and linked to farm size. The three key measures are crop diversification, maintaining permanent grassland and creating "ecologically-focused areas ". To give an extra boost to greening efforts, Parliament's negotiators won an agreement to earmark 30% of total rural development spending for environment-related measures. No double funding Under the deal, "double funding", I .e. paying farmers twice for delivering the same set of environmental benefits, is scrapped. In addition, farmers who fail to apply mandatory greening measures will face additional sanctions on top of losing their greening subsidies. "We must allow farmers to familiarise themselves with the new rules before we start applying any sanctions. It is not fair to penalize them from the start. Therefore, no sanctions will be levied in the first two years after the new CAP enters into force. During the third year, the penalty of 20% will apply and one year afterwards it will be raised to 25%," said Giovanni La Via (EPP, IT), rapporteur for the financing, management and monitoring regulation. Young and small farmers To attract more young people into farming, Parliament insisted on a mandatory EU-wide scheme to give farmers under 41 years old an extra 25% in additional top-up payments for their first 25 to 90 hectares. Small farmers could also get more money if member states decide to set up a specific scheme for them. Stronger farmers to better cope with crises MEPs insisted throughout the negotiations that farmers' organisations should be given new tools to help farmers cope with market volatility and strengthen their price bargaining position. EU competition rules applicable to the agricultural sector should be made clearer and applied uniformly across the EU. "Additional tools to strengthen farmers' bargaining positions, but also to anticipate and manage crises, are necessary given the weaker role public authorities play on the EU agricultural market. This was a crucial objective of Parliament and has been largely met," said Michel Dantin (EPP, FR), rapporteur for the common market organisation regulation. Parliament secured an option for member states to establish a legal framework for the contractual relations governing delivery of farm produce from farmers or processors. They could also choose to establish a supply management system for ham and cheese products registered under a protected designation of origin (PDO) or protected geographical indication (PGI) to improve their quality. Farmers' organisations in sectors including olive oil, beef, milk, cereals and protein crops should be allowed to negotiate supply contracts on behalf of their members. Sugar quotas, vine planting and milk Sugar quotas will be extended to September 2017 rather than expire in 2015, as originally proposed. Parliament also succeeded in maintaining the current vine-planting regime until 2030. "I welcome the agreement on sugar and wine but I regret that the other institutions were not able to come on board for further measures to help the dairy sector after the current quota system expires in 2015. Nevertheless, I am looking forward to continuing this debate during the conference organised by the Commission in September to this end," Mr Dantin said. Outstanding issues Remaining issues, upon which the Irish presidency was not willing to negotiate, will be addressed once the EU's long-term budget for 2014-2020 is agreed. They include caps on direct payments to big farms, distributing EU funds more fairly among farmers in different member states and transferring money to and from national budgets for direct payments to rural development programmes. Next steps The Agriculture Committee will vote on the full package of new CAP regulations once EU's long-term budget negotiations are completed. The package has to be approved by both the committee and the full House before it can be submitted to the Council, which must also approve the agreed texts before they can enter into force. Wednesday, 26 June 2013 Committee on Agriculture and Rural Development In the chair: Paolo De Castro (S&D, IT) source: http://www.europarl.europa.eu/news/en/pressroom/content/20130624IPR14341/html/EU-farm-policy-after-2014-MEPs-Council-and-Commission-strike-a-political-deal (Contributed by Zhang Lixia, Special Editor)
-
U.S. Farm, Food Organizations Ask U.S. Department of Agriculture to Better Oversee Field Trials of Genetically Modified CropsU.S. Farm, Food Organizations Ask U.S. Department of Agriculture to Better Oversee Field Trials of Genetically Modified Crops AGRICULTURE U.S. farm, food groups want better oversight of GMO field trials CAREY GILLAM Reuters Last updated Wednesday, Aug. 21 2013, 6:45 PM EDT More than 150 U.S. farm and food businesses and organizations on Wednesday called for the U.S. Department of Agriculture to strengthen its oversight of field trials of experimental, genetically modified crops. The group includes organic and natural food industry representatives as well as family farm and trade policy players. It said the disarray in international markets after an unapproved genetically modified wheat developed by Monsanto Co. was discovered growing unchecked in Oregon this spring is the latest example of the need to change GMO field trial regulations. “There are major weaknesses in USDA's oversight of experimental field trials, including how unauthorized crops are contained," the group said in a statement issued in its behalf by the Organic Seed Alliance and the Rural Advancement Foundation International. “Current U.S. policy includes neither mandatory contamination prevention measures nor an adequate system for monitoring the success of containment following trials," the group said. The group sent a letter to USDA Secretary Tom Vilsack in late July and met with him last week in Washington to discuss its concerns. In its letter it asked that USDA “fix its rubber-stamp approach to GE crops” and said that “improvements in regulations and oversight must start at the field trial stage ." USDA spokeswoman Courtney Rowe said the meeting between Mr. Vilsack and the group was productive. “We are currently carefully reviewing the concerns and information shared with us and will be responding in full in the near future," Ms. Rowe said. USDA told Reuters earlier this month that it has strengthened oversight of biotech crop field trials in recent years. The agency said it conducts about 700 inspections annually, up from about 500 in 2007, and has improved training for monitoring compliance with test protocols. Field trial controls are of special interest to U.S. wheat growers because the April discovery of Monsanto's unapproved wheat prompted some foreign buyers to temporarily refuse certain varieties. Many foreign buyers have said for years that they do not want genetically modified wheat, and there was concern that the experimental wheat may have contaminated commercial wheat supplies. No genetically altered wheat is offered for commercial sale, though several companies continue to experiment with biotech strains. Monsanto said it stopped its experiments with the wheat in question in 2004 and 2005 and has no idea how the biotech wheat came to be growing in Oregon this year. USDA has said it believes the incident was isolated and it reassured wheat buyers there is no sign of contamination in commercial supplies. But several growers have sued Monsanto for negligence, and USDA has said it is still investigating the incident. The group seeking tighter controls said it wants the government to halt any new approvals of GMO wheat field trials until the investigation into the Oregon contamination issue is completed. There have been other episodes in which experimental biotech crops have eluded efforts to keep them contained. A type of biotech rice developed by Bayer AG to resist herbicide was not approved for consumption but still showed up in the food supply in 2006. Its presence in the U.S. crop led Japan and the European Union to restrict U.S. rice from crossing their borders, triggering a plunge in rice prices. More than 7,000 long-grain rice producers claimed damages. Traces of an unapproved genetically modified trait for corn were found in U.S. corn planted in 2006 and 2007.
-
U.S. Agriculture May Face Supply ShortsThe United States may soon face a food crisis triggered by a significant reduction in food production. U.S. agriculture industry fears food supply shortage Sat Aug 24, 2013 6:43AM GMT The U-S agricultural industry is bracing for a possible disaster in food production. Harsher immigration laws are forcing more farms to make sure workers are in the country legally. But experts say eliminating undocumented workers would cost billions of dollars in losses and devastate the nation's food supply. America could soon be facing a food crisis because of a significant drop-off in agriculture. Throughout the recession, the country's agricultural industry has remained one of the few economic bright spots. American agriculture brought in 115 billion dollars last year, up from 85 billion dollars five years ago. And the majority of that money comes from farms in California. California is considered America's fruit and vegetable basket. In fact, the state provides nearly 50 percent of all the fruits, vegetables and nuts grown in the United States. But producers are fearing that California could soon see a severe cutback in production. Labor experts say harsher immigration policies would leave no one to work the fields. Farm workers from across the state are fighting to protect their way of life. They say rampant deportations have made them afraid to come to work. Labor experts say the climate of fear is the result of America's broken immigration system. A report from the U.S. Congressional Budget Office shows that losing the immigrant workforce would cost more than 3 billion dollars in production losses. The loss would make finding food more difficult for low-income and minority populations. This would add to the more than 29 million Americans who already have no immediate access to food. Experts say the best hope to stop an agricultural catastrophe is to overhaul U.S. immigration policies. They say qualified farm workers should be given an expedited path to citizenship to keep production levels rising. Workers say they want U.S. lawmakers to take immediate action on immigration reform. They say it would help stabilize the industry and provide a fair system for producers and workers. http://www.presstv.ir/detail/2013/08/24/320217/us-agriculture-industry-fears-food-supply-shortage/
-
FAO helps countries reduce greenhouse gas emissions from agricultureHelping countries reduce agricultural greenhouse gas emissions New FAO guidance on how agricultural development planning can help tackle causes of global warming Farmers should be involved in national efforts to mitigate greenhouse gas emissions by agriculture. 6 August 2013, Rome-With the consequences of climate change for the world's food production systems becoming increasingly clear, more needs to be done to capitalize on agriculture's potential to mitigate global warming, says a new FAO guidance document published today. Agriculture is directly responsible for over 10 percent of all human-caused greenhouse gas (GHG) emissions, FAO figures show. But improved farming practices offer the possibility of reducing those emissions and sequestering atmospheric carbon, while at the same time increasing the resilience of production systems, says the document National planning for GHG mitigation in agriculture published by FAO's Mitigation of Climate Change in Agriculture Programme (MICCA). Yet progress in drawing up agricultural GHG mitigation plans - as well as in allocating financing to climate change projects in the agriculture sector - is falling short of what is needed, cautions FAO. The Organization's new guidance document aims to help address these shortfalls by providing step-wise advice and examples of national planning for GHG mitigation in food production systems, as well as highlighting opportunities for developing countries to secure climate financing for agriculture. Examples from existing mitigation planning processes in developing countries illustrate options for addressing key planning elements in country-specific ways, and approaches to involving smallholder farmers in the planning process are highlighted as well. Key steps, guiding principles Although opportunities and planning processes will vary from country to country based on local circumstances, a number of general principals hold true, FAO says. First, mitigation actions in agriculture should be pursued within the context supporting agricultural development and food security, with planners clarifying from the start how mitigation can contribute to national development goals. Participatory planning and cross-sectoral cooperation will be important to the success of mitigation plans, the report adds. Farmers and other stakeholders should be involved in setting objectives, actions and targets, both to generate support for and to improve the effectiveness of planned policies. To access international and domestic financing, plans should be very specific regarding how to assess the mitigation potential of proposed policies and measures. Sound systems for measuring the impacts of policies and reporting other performance metrics are also necessary when seeking financing for projects. Another key step is to identify the barriers that impede adoption of mitigation practices by farmers. Many agricultural practices that can mitigate climate change are already widely known - effective policies need to identify why farmers may not be adapting them, work to remove barriers, and facilitate their wider use. Also crucial: determining how mitigation policies and measures will be financed. Some countries are supporting agricultural mitigation activities primarily through domestic fiscal budget lines and policies that leverage private investment, the report notes. For many countries, however, an important goal of mitigation planning is to attract international financial support, in order to match the priorities of international climate finance institutions to specific parts of domestic mitigation plans. Source: FAO Website: http://www.fao.org/news/story/en/item/180351/icode/ (Contributed by Zhang Lixia, Special Editor)
-
FAO Food Price Index falls for third consecutive monthFAO Food Price Index falls for the third consecutive month Release date: 08/08/2013 The FAO Food Price Index averaged 205.9 points in July 2013, 4 points (nearly 2 percent) below its revised value for June and 7 points (or 3.3 percent) lower than in July 2012. The decline in July, which marked the third consecutive monthly drop, was largely driven by lower international prices for grains, soy and palm oil while sugar, meat and dairy quotations were also down from the previous month. » FAO Cereal Price Index averaged 227.7 points in July, down 8.8 points (3.7 percent) from June and as much as 33 points (or nearly 13 percent) below July last year. The sharp decline mostly reflected falling maize prices as favourable weather boosted hopes of a significant production increase in several leading maize producing countries. Wheat prices also fell but the strong pace of exports limited the decline. Rice price changes varied according to origins, with a decrease in Thai prices contrasting with higher Vietnamese quotations. » FAO Oils/Fats Price Index averaged 191 points in July, down by 7 points (or 3.3 percent) from June and the lowest level in three years. The slide in the index mainly reflects easing quotations for both soy and palm oil. Soy oil values have fallen in response to ample export availabilities, especially in Argentina, combined with weak demand (including from the biodiesel sector), as well as good soybean crop prospects in the United States. The palm oil price weakness mainly resulted from the combination of ample production and lower than expected import demand, most notably by China. Prices for rape and sunflowerseed oil also fell, reflecting improved 2013/14 crop prospects. » FAO Dairy Price Index averaged 236.3 points in July, a fall of 2.6 points (1.1 percent). While prices fell overall, the decline was by a smaller margin than in the previous two months as a result of tightening availabilities in Oceania and stagnating milk production amongst other exporters, principally in Europe, South America and the United States. Milk powder prices were underpinned by limited supplies but the increase was more than offset by a fall in cheese prices due to reduced import demand. » FAO Meat Price Index averaged 173.3 points in July, more or less unchanged from the revised June level. Prices for poultry and pig meat were lower, while those of bovine and ovine meat rose. Overall, there are signs that international prices for meat are weakening in the face of reduced import demand - especially from Asian countries - reflecting production growth and, in some cases, a build-up of domestically produced meat inventories. » FAO Sugar Price Index averaged 239 points in July, down 3.6 points (1.5 percent) from June. Sugar prices declined for the fourth consecutive month in July, on the back of anticipated large surplus production in major producing areas, notably in Brazil, the world's largest sugar producer and exporter. Declining ethanol prices in Brazil also provided an incentive to convert more sugarcane into sugar instead of ethanol, which put additional downward pressure on international sugar prices. Source: FAO website: http://www.fao.org/worldfoodsituation/foodpricesindex/en/ (Contributed by Zhang Lixia, Special Editor)
-
U.S. farm law debate highlights declining political influence of U.S. farmersU.S. farm bill debate illustrates the declining influence of the ag lobby Posted Aug. 8th, 2013 by Barry Wilson Not so long ago, Canadian farmers who thought governments have an obligation to support the industry in hard times cast their lonely, envious eyes south .? Their gaze often rested on the U.S. farm bill. Now there was a safety net from a farmer-friendly government. ? Grain farmers were guaranteed a price that reflected cost-of-production, government doled out enormous amounts of money for set-aside and weather calamities and the support was largely predictable .? With an over-represented farm and rural presence in Congress and a legislative system that functions on trade-offs between regions and sectors, the farm community had clout on Capitol Hill. It generally was regarded as one of the most effective lobbies in Washington .? Of course, that generous government support gave American producers an advantage, kept their debt levels far lower than in Canada and drove U.S. competitor country governments crazy, including Canada's .? And of course, Canadian producer organizations generally agreed with the condemnation of rich U.S. subsidies, but their members also saw them as leverage to pressure Ottawa for more .? The mantra was that Canadian farmers are competitive, but Canadian farm policies and supports are not. Pony up, Ottawa .? What a difference a decade can make to rural entitlement programs: a political shift, a growing urbanization trend and an essentially bankrupt U.S. government with a debt of more than $16 trillion US .? Last week, there was some irony and envy from Americans in the room when agriculture minister Gerry Ritz told a meeting of the U.S. Grains Council in Ottawa that the five-year Growing Forward 2 program was essentially Canada's farm bill .? Many Canadian farm leaders are critical of support cuts in the GF2 program, but at least there is a five-year program .? The U.S. Congress has been unable to come up with a new farm bill, so the old one has been extended for a year as political wrangling continues. ? And the fight isn't about how rich farm supports should be because the days of guaranteed prices and billion dollar payouts are over. The pot is empty .? The battle is over what share of the limited (but still large) farm bill budget should be devoted to what the Americans call “nutrition” - really government school lunch and food programs for the poor .? Washington lobbyist Scott Shearer, who attended the U.S. Grains Council meeting to dissect the farm bill impasse, said in an interview the farm lobby carries less weight these days than it once did .? Congress increasingly is populated by urban and suburban representatives with little knowledge of or innate sympathy for farmers, which their often poor constituents consider an asset-rich and taxpayer-subsidized privileged class .? He said the farm lobby has been slow to pick up on the significance of the change .? “They often see their role as lobbying politicians from rural and agriculture areas, but really, what they have to be doing is talking to urban and suburban representatives and convincing them there are benefits to their constituents to have a strong rural economy and a farm bill," he said .? As well, House and Senate agriculture committees should no longer be the primary lobby focus. Health, energy, trade and many other committees now touch on their file. (Contributed by Zhang Hongzhou, Special Editor)
-
Book Review: The Fibers That Shaped the Modern WorldFinancial Times, James. Crabtree looking around, a stately neo-Gothic building outlines the skyline of south Mumbai. These buildings, with ornate towers and oddly shaped water jets, are perhaps more in tune with Manchester or London and are somewhat out of step with the financial capital of modern India. At first glance, these buildings, which are out of step with their surroundings, are probably nothing more than the product of the colonists' ambition (some might say the product of extravagance). But in fact, these buildings arose from a rather surprising commercial motive: the global cotton trade. The outbreak of the American Civil War in 1861 cut off one of the most important cotton supply lines in the British Empire, which in turn led to a surge in cotton exports from its second largest supplier, India. India's economy began to prosper, and the income from it funded the construction of large railway stations and civil buildings in Mumbai (the English name of Mumbai was Bombay at that time). Nearly two hundred years later, the Mumbai skyline provides only a small example of the profound impact of cotton. George? Riello (Giorgio Riello)'s book Cotton: The Fabric that Made the Modern World (Cotton) reveals more such examples for us. The author of the book admits that, unlike some other popular history books that try to interpret the road to globalization through individual commodities such as tea, coffee, cod and salt, "Cotton" is not particularly oriented towards leisure books. As an economic historian at the University of Warwick (Warwick University), he looks at a more comprehensive goal: to describe in detail the impact of cotton, including its role in the rise of India and China at the beginning of the last millennium, and its early role in the rise of the global textile industry. Today, the industry's annual business size has reached $425 billion. But the author also makes an important argument in the introduction, refuting what he calls a "primary school" textbook view on cotton. From the beginning of the 17th century, the northwest region of England, with Richard? Arkwright (Richard Arkwright) of the worsted machine and other inventions, for the first time overtook India to become the world's number one cotton fabric producer. Referring to that period, Leiro writes: "It has become an unspoken truth that cotton was the driving force of the industrial revolution.... Large factories appeared, employing (and exploiting) millions of workers. This is the beginning of what we call the modern industrial society." the author does not dispute the importance of cotton in the formation of industrial society, nor does he want to question the importance of cotton to other fields, such as its role in the emergence and development of slavery in the United States. Instead, he aims to add context and depth to the rough description, explaining why these events often hinge on hundreds of years of technological and business innovation, almost all of which takes place in Asia. This book therefore devotes a great deal of space to explaining how cotton spinning technology first spread from India to China and only then to Europe. This narrative explains the importance of the two ancient powers of China and India to the eventual industrialization of Europe. The author points out, with slight complacence, that when Arkwright improved his cotton spinning machine "in the north of England in the 1870 s", "India was still the world leader in the cotton spinning industry". This method of discussion makes him not mention contemporary society too much, but in his careful and rigorous research, he still makes some enlightening comparisons between that time and our current era of globalization. First, a sudden change in the trading landscape for raw materials such as cotton could have far-reaching social and political implications. This insight applies both to the factories in Lancashire and to the plantations in the pre-war South of the United States, as well as to the recent end of the commodity "super cycle" or China's search for natural resources in Africa. Second, the interaction between Western and Eastern economies is enduring, and this relationship will have a decisive impact on the next century. According to Lillo, the rise of cotton relies on technology that has long been developed in Asia. Now, given that China and India are likely to return to the top two seats of the world economy, it can be said that this process is going in the opposite direction. Cotton itself confirms the fact that, with the help of technology imported from industrialized countries, today's India is destined to become the world's number one cotton producer again in the next decade or so. In this sense, the story of cotton offers a relatively simple perspective. Globalization is often seen as a contemporary phenomenon, but that is not the case at all. The writer is the FT's Mumbai correspondent cotton: The Fiber That Shaped the Modern World george. Translator of Liello/Liu Xin Cambridge University Press (Cambridge University Press), RRP: £ 25/$35 http://www.ftchinese.com/story/001051785
-
Is precision agriculture the future?New agricultural technologies in rural America (satellite-guided planting, smartphone milking programs, etc.) are likely to replace the old standards soon. Is Precision Agriculture the Future? New technologies come to American farms New agricultural technologies could soon be replacing old standards on American farms Jul 30, 2013 @ 11:03 AM Satellite-directed planting, a smartphone app for milking: These may seem like strange devices out of rural dystopian science fiction, but they are in fact much-anticipated technological developments in the field of agriculture. Leading the way on a new technological front, this so-called “precision agriculture” blends together the most modern technologies and tailors them to meet traditional farming needs. As old farm equipment nears the end of its usefulness, more and more farmers are looking towards newer, more high-tech replacements. From global positioning software that can tell growers precisely where to plant, to a cloud-based computer system that manages the health of a herd of cattle, these new developments have it covered. The only thing stopping these technologies from becoming ubiquitous on American farms is the price tag. State of the art computers may save farmers a bundle on time, but they are still big-ticket items that smaller farms don't have the budget. While new tools such as robotic milking have already become quite popular in Europe, in the United States, where wage controls are looser, it has yet to be seen whether automated agriculture will be worth the investment. http://www.thedailymeal.com/precision-agriculture-future (Contributed by Zhang Hongzhou, Special Editor)
-
Scotland leads efficient farmingScotland at forefront of efficient agriculture by IAIN GORDON Published on the 30 July 2013 IT DOESN'T seem too long ago that we were hearing about European wine lakes and grain mountains. Too much food was being produced and people either didn't want it or it was too expensive. In the 1990s, as part of the Common Agricultural Policy, European farmers were being paid to take 10-15 per cent of their land out of production. Those days are gone. There are now seven billion people sharing this planet, and according to United Nations, this number is expected to rise above eight billion by 2030. That is a lot of mouths to feed. With growing wealth, particularly in China and South East Asia, people's consumption patterns are also changing. Not only are people eating more, they are also increasing their demand for meat, particularly red meat. The UN's Food and Agriculture Organisation predicts that during the next 20 years, meat production will have to increase by more than 125 per cent, and crop production by 50 per cent - with much of those crops destined to feed cattle, sheep, pigs and chickens. Food security being given a high priority Growing demand is expected to result in escalating food prices as transport and storage costs increase, potentially reducing access to food among the world's poor. Given the past relationship between lack of access to affordable food and political instability, food security is now being given a high priority on global and national political agendas. In technical terms, food security is defined as providing the world's population with a sustainable and secure supply of safe, nutritious, affordable and high-quality food. However, this must be achieved without depleting environmental resources - but the predictions are that to meet demand for food there will be a 30 per cent increase in the use of the planet's fresh water resources and 120 million hectares of additional land will be converted into crop-producing farmland in developing countries. This is all happening in the face of loss of soils through erosion and climate change creating droughts or floods on previously fertile land. We cannot rely on what we have done in the past; new technology and agricultural practices will be needed. We also have to help reduce the food waste that happens throughout the supply chain. In 2011 more than one billion tonnes of food was lost or wasted - around one-third of global food production. Scotland global leader in agricultural science It all sounds very scary, but Scotland is well prepared to help meet food security challenges. Not only are we a producer of quality food products but the Scottish Government has also continued to invest in agricultural science when many other developed countries let agricultural research wither on the vine. That investment has helped place Scotland as the global leader in agricultural science. But science needs to work with farmers, industry, retailers and broader society to ensure the best information is used to grow more food in a sustainable way. There are a lot of initiatives happening at the moment to join up science and industry. For example, the Food & Health Innovation Service, funded by Scottish Enterprise and delivered by Scotland Food & Drink, brings together business and scientists to provide practical support to help Scottish companies fully realise their growth potential in the global marketplace. Scientists across universities and institutes also need to work together more closely, to bring the best basic science through what is called the “translational pipeline” to create valued products and services. That is why we launched a key partnership, the Scottish Food Security Alliance - Crops, at the Royal Highland Show in June. The Alliance draws expertise from three leading Scottish research organisations - the universities of Aberdeen and Dundee and the James Hutton Institute - to create a critical mass of internationally-recognised excellence in crop and soil sciences, environmental modelling and human nutrition. Our vision is to build an alliance of excellence which links researchers from different disciplines to tackle the challenges of sustainable food production, the depletion of natural resources including productive land, water and nutrients, and the impact of climate change on society. Although the Alliance currently has only three partners, we are confident that other institutes and universities from across Scotland will join us. More broadly, there are moves afoot to create similar alliances for livestock, aquaculture and marine fisheries. The Scottish Food Security Alliance - Crops is an exciting initiative that will set Scotland at the centre of working to tackle one of the biggest challenges of our time. http://www.scotsman.com/news/scotland-at-forefront-of-efficient-agriculture-1-3020429 (Contributed by Zhang Hongzhou, Special Editor)
-
World Food and Agriculture Report 2013"The State of Food and Agriculture 2013 Source: United Nations Food and Agriculture Organization From Executive Summary: Malnutrition in all its forms - undernutrition, micronutrient deficiencies, and overweight and obesity - imposes unacceptably high economic and social costs on countries at all income levels. The State of Food and Agriculture 2013: Food systems for better nutrition argues that improving nutrition and reducing these costs must begin with food and agriculture. The traditional role of agriculture in producing food and generating income is fundamental, but agriculture and the entire food system - from inputs and production, through processing, storage, transport and retailing, to consumption - can contribute much more to the eradication of malnutrition. http://www.fao.org/docrep/018/i3300e/i3300e.pdf (Contributed by Zhang Hongzhou, Special Editor)
-
China considers investing in Venezuelan agriculture to ensure domestic food securityChina eyes food security options in Venezuela China is considering investment in Venezuela's agriculture industries as part of a global strategy to secures diverse sources of food supplies for its burgeoning population. Published: July 26, 2013 at 1:23 AM CARACAS, Venezuela, July 26 (UPI) -- China is considering investment in Venezuela's agriculture industries as part of a global strategy to secure diverse sources of food supplies for its burgeoning population. Senior Venezuelan officials announced after recent talks in Beijing Chinese investment could cover 30 million hectares of land in the Latin American country. Venezuelan agriculture has suffered under frequent state interventions -- from outright nationalization to implementation of agricultural policies criticized as being removed from reality. Oil-rich Venezuela is recovering slowly from a recession the government blames on weather vagaries, including frequent drought conditions. Opposition critics say state mismanagement of agriculture is partly to blame. Venezuelan Vice President Jorge Arreaza indicates his talks in Beijing gave him hope joint ventures involving China could bring great benefit to a sector seen to be performing well before capacity. Beiing has been touting its agricultural prowess and optimum exploitation of land resources. Critics cite China's environmental problems as an indication that progress has been patchy. Venezuela under former President Hugo Chavez pursued close collaboration with China in energy, defense and security, and technology. Chavez died of cancer in March, soon after handing over power to hand-picked successor Nicolas Maduro. President Maduro's inner circle includes Arreaza, husband to the late Chavez' eldest daughter Rosa Virgina. Before he was appointed vice president under Maduro, Arreaza was minister of science and technology. Arreaza indicated that bilateral talks on agricultural collaboration advanced after Chinese Vice President Li Yuanchao visited the country in May. "Venezuela has 30 million hectares of prime land and great agricultural potential ." Arreaza said Venezuela's agriculture suffered from lack of inaction by its absentee landowners. He blamed "bourgeois" landowners for the problem. Both Chinese and Venezuelan officials say China has every reason to be driven by the need to build agriculture-based alliances worldwide. China's own soil has limited potential, which has been further diminished by recent urbanization in rural areas. Arreaza discounted criticism of Chinese interest in Venezuela's land, blaming it on opponents inspired by "U.S. imperialism" and past U.S. policies in the region. Both Chavez and Maduro have blown hot and cold on normalizing ties with Washington. One of the ideas being pursued in Venezuela will be modeled after a Chinese model for establishing special economic zones to stimulate the economy, he said. Maduro's government aims to continue Chavez's ideal of reversing a prolonged neglect of Venezuelan agricultural sector that began with the discovery of oil in the 1950s. Right up to the start of the oil boom, agriculture, fishing and forestry earned more than half of the national income. By 1988 that ratio dropped to 5.9 percent of Venezuela's gross domestic product, the rest supported by industrialization and oil exports, both of which declined in later years due to a spate of nationalizations by Chavez. Topics: Hugo Chavez, Nicolas Maduro Read more: http://www.upi.com/Science_News/Technology/2013/07/26/China-eyes-food-security-options-in-Venezuela/UPI-29031374816180/#ixzz2aK6y4XvW (Contributed by Zhang Hongzhou, Special Editor)
-
World Food and Agriculture Organization: Global food production will hit a record high in 2013World cereal production set to reach historic high in 2013 11 July 2013, Rome-World total cereal production is forecast to increase by about 7 percent in 2013 compared to last year, helping to replenish global inventories and raise expectations for more stable markets in 2013/14, according to the latest issue of FAO's quarterly Crop Prospects and Food Situation report. The increase would bring world cereal production to 2 479 million tonnes, a new record level. FAO now puts world wheat output in 2013 at 704 million tonnes, an increase of 6.8 percent, which more than recoups the previous year's reduction and represents the highest level in history. World production of coarse grains in 2013 is now forecast by FAO at about 1 275 million tonnes, up sharply (9.7 percent) from 2012. World rice production in 2013 is forecast to expand by 1.9 percent to 500 million tonnes (milled equivalent) although prospects are still very provisional. Import forecasts, cereal prices Cereal imports of Low-Income Food-Deficit Countries for 2013/14 are estimated to rise by some 5 percent, compared to 2012/13, to meet growing demand. Egypt, Indonesia and Nigeria, in particular, are forecast to import larger volumes. International prices of wheat declined slightly in June with the onset of the 2013 harvests in the Northern Hemisphere. By contrast, maize prices increased, supported by continued tight supplies. Export prices of rice were generally stable. Food insecurity situations The report focuses on developments affecting the food security situation of developing countries. In its review of food insecurity hotspots, the report highlights the following countries, among others: In Syria, 2013 wheat production dropped significantly below average due to the escalating civil conflict leading to disruptions in farming activities. Livestock sector has been severely affected. About 4 million people are estimated to be facing severe food insecurity. In Egypt, civil unrest and dwindling foreign exchange reserves raise serious food security concerns. In Central Africa, serious food insecurity conditions prevail due to escalating conflict affecting about 8.4 million people in Central African Republic and Democratic Republic of the Congo. In West Africa, the overall food situation is favourable in most parts of the Sahel following an above-average 2012 cereal harvest. However, a large number of people are still affected by conflict and the lingering effects of the 2011/12 food crisis. In East Africa, although household food security has improved in most countries, serious concerns remain in conflict areas in Somalia, the Sudan, and South Sudan, with 1 million, 4.3 million and 1.2 million food insecure people, respectively. In Madagascar, damage caused by locusts and a cyclone is expected to reduce crop production in 2013, causing increased hunger, especially in the southern and western regions of the country. In Democratic People's Republic of Korea, despite improved cereal harvest of the 2012 main season and the near normal outcome of the ongoing harvest of the 2013 early season, chronic food insecurity exists. An estimated 2.8 million vulnerable people require food assistance until the next harvest in October. In total, there are 34 countries requiring external food assistance, of which 27 countries are in Africa. (Contributed by Zhang Hongzhou, Special Editor)