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EU may increase non-hormone beef quota

January 30, 2012 By Leave a Comment

It looks like the European Union is going to increase its import quota on beef from animals not treated with hormones. Last Friday the European Parliament’s Committee on International Trade gave its blessing to raise the quota from 24,000 metric tons to 49,200 metric tons of beef per year effective in August. In exchange, the U.S. and Canada will suspend import duties on nearly $130 million of European agricultural products.

This is all part of the on-going dispute dating back to January 1, 1990 when the EU banned hormone treated beef. The U.S. and Canada filed a complaint with the WTO and won the suit in 1998. That is when retaliatory tariffs were put in place on the European products. The EU announced in 2009 they were preparing to present new evidence to the WTO which would justify the ban and the U.S. announced they were going to amend the list of retaliatory duties threatening to increase tariffs. That prompted the two sides to start negotiations resulting in the U.S. not raising tariffs in return for the EU raising the amount of non-hormone treated beef imports they will allow.

The European Parliament is scheduled to vote on the deal on March 13th.

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More thoughts on a U.S.-EU Free Trade Agreement

January 27, 2012 By Leave a Comment

Seems the hot-topic at the World Economic Forum in Switzerland this week is a U.S.-EU Free Trade Agreement. German Chancellor Angela Merkel floated the idea in her keynote address at the conference on Wednesday saying while the two are each-other’s most-important trading partner,” the potential of our cooperation has not yet been tapped.” British Prime Minister David Cameron says he supports the idea saying it would deliver a much-needed boost to global commerce.

The idea comes with growing sentiment that the Doha Round of World Trade Talks is dead. A year ago attendees at the forum launched and all-out effort to complete the Doha Round in 2011. It didn’t happen.

With the apparent demise of any type of new world trade deal, the focus has been on bilateral agreements between countries. Prime Minister Cameron says a U.S.-EU deal “Could have a bigger impact than all the other agreements put together.”

However, such a deal may be a pipe-dream because there are so many differences between the two on everything from technical specifications to genetically modified crops. The head of the WTO, Pascal Lamy told reporters the differences between Washington and Brussels would be difficult to bridge….especially in agriculture.

Earlier this week about 50 U.S. food and ag groups sent a letter to US Trade Representative Ron Kirk and EU Trade Commissioner Karel De Gucht saying they support the idea but the European Union would have to change the way they try to legitimize their non-science-based barriers.

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ASA supports FTA with European Union

January 26, 2012 By Leave a Comment

Last year President Obama and the President of the European Council established the Trans-Atlantic Council to look at ways to generate jobs and create growth.  Steve Wellman, president of the American Soybean Association says included within those discussions is the possibility of a free trade agreement between the United States and the European Union.  He says, “If carried out properly a free trade agreement between the US and the EU would generate growth and create jobs on both sides of the Atlantic.” 

Last year President Obama and the President of the European Council established the Trans-Atlantic Council to look at ways to generate jobs and create growth.  Steve Wellman, president of the American Soybean Association says included within those discussions is the possibility of a free trade agreement between the United States and the European Union.  He says, “If carried out properly a free trade agreement between the US and the EU would generate growth and create jobs on both sides of the Atlantic.” 

Wellman says some examples include “restrictive biotech approvals and labeling regulations that restrict the United States’ corn, soybean and refined corn product exports.” He says the Trans Pacific Partnership, currently being negotiated, should serve as an example of what a trade agreement between the US and EU should look like.

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Iowa agriculture will be high on Chinese V-P’s agenda

January 26, 2012 By Leave a Comment

Agriculture is expected to be high on the agenda when Chinese vice president Xi Jinping visits Iowa in mid-February.

Xi is considered the man most likely to be China’s next president and his U.S. visit is expected to garner considerable media coverage.

Iowa ag secretary Bill Northey says it should be another great opportunity to showcase Iowa agriculture.

“We got some chance to talk about a few of those issues when the caucus came through,” Northey says.  “This is a chance to be able to talk about what Iowa does here, and selling our products around the world, and the technology that’s here—and maybe even get some Americans to understand a little bit more what it takes to be able to produce food in this world at this time.”

Xi first visited Iowa in the mid-80’s when he was an official of a Chinese feed association.

AUDIO: Bill Northey (1:54 MP3)

 

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Ag doing what Obama wants for economy, says Vilsack

January 25, 2012 By Leave a Comment

U.S. Ag Secretary Tom Vilsack says the emphasis on building a stronger economy and middle class – outlined by President Obama in his State of the Union speech last night – is what’s happening in Rural America. Farmers make, create and innovate – says Vilsack – and that lends itself to increased exports, which helps the entire economy.

“Agriculture is doing that,” says Vilsack, “Agriculture is a proof point for the President’s formula. It’s probably the strongest proof point in the economy today. And, we at USDA are going to continue to work for the American public to make sure that agriculture continues to succeed.”

Vilsack says the president’s push for increased renewable fuels production and continued expansion of broadband, for example, will directly impact the economies of rural areas and the nation as a whole.

AUDIO: Secretary Tom Vilsack (18:00 mp3)

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Opportunites for Wisconsin in Vietnam

January 19, 2012 By Leave a Comment

Wisconsin Secretary of Agriculture, Trade and Consumer Protection Ben Brancel along with DATCP International Consultant Jennifer Lu traveled to Vietnam last week to seek out export opportunities for Wisconsin. “We learned they have a huge population, they

DATCP photo

don’t have a lot of land base, they are a fast-growing economy, they have increasing disposable income and 80 percent of that disposable income is spent on food.” Brancel says that presents export opportunities for Wisconsin.

When the reunification of Vietnam occurred in 1975 it was a very controlled economy but Brancel says about 12 to 14 years ago they realized it was not working so they privatized many of the government’s businesses and encouraged outside investment. Brancel says they visited a number of private businesses including a feed mill owned by Australians, a dairy farm owned by a Vietnamese woman but run by an Israeli and another public stock-owned dairy.

Wisconsin has sold some soybeans and hides to Vietnam and other states are doing business there as well but Brancel says there is a lot of room for growth. “They are looking for livestock, dairy livestock and they are looking for dairy genetics like embryos.” They are also looking for dairy byproducts like whey as well.

Currently the country produces enough to meet 22 percent of demand, they want to increase that to 38 percent. Per capita consumption has more than doubled in the last four years and they want to more than double that in the next five. Meanwhile the population is growing by about 900,000 per year “So even though they want to increase their dairy production, it won’t keep up with increasing demand.”

They were surprised when they were told the Vietnamese want 1,000 dairy heifers and 30 embryos from Wisconsin. Brancel says because of the limited land available, the country is not suitable for grazing so confinement-based cattle from the United States are much more conducive than grass-based cows from Oceania. They will also need to import grains to feed those cows including soybeans and DDGs.

The Secretary says his agency will work with USDA to identify individuals interested in doing business with the Asian country and then finding “the right kind of trading partner in Vietnam.” Brancel says it is going to take a few years to build those relationships.

AUDIO: Brancel talks about the trip 12:00 mp3

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BASF will move Plant Science HQ to U.S.

January 17, 2012 By Leave a Comment

Citing Europe’s lack of acceptance of genetically modified crops, BASF is moving its Plant Science headquarters from Limburgerhof, Germany to Raleigh, North Carolina. The company will also close sites in Gatersleben, Germany and Svalov, Sweden. In addition, BASF will halt development and commercialization of products targeted solely for the European market. Regulatory approval processes already underway will be continued.

BASF says their plant biotechnology work will focus on North and South America and the growth markets in Asia.

BASF’s Crop Protection division will remain in Limburgerhof.

Food Navigator.com says the announcement is drawing mixed reaction: Mario Contiero with Greenpeace says by making the move, “BASF admits Europeans don’t want GM crops”. But Professor Denis Murphy of the University of Glamorgan in the U.K. says with the loss of BASF comes a loss of researchers and students and the danger Europe will become “a scientific backwater unable to assist developing countries address food insecurity.”

Based in Germany, BASF has more than 109,000 employees around the globe with sales of 63.9 billion euro ($81.3 billion) in 2010.

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Another big month for meat exports

January 17, 2012 By Leave a Comment

November was another huge month for U.S. pork and beef exports.

U.S. pork exports set another monthly volume record in November—and for the first eleven months of 2011, pork export volume was up 18 percent and pork export value up 27 percent over 2010.

U.S. Meat Export Federation communications director Joe Schuele says one of the highlights on the pork export side is what he describes as “a continued remarkable performance by Japan, which has nearly matched its 2008 record for volume and set a new value record at 1.79 billion dollars.

“This sets the stage for a year-end (pork) export value to Japan that could threaten the two billion dollar mark,” Schuele says.

Schuele says November beef exports also performed well—up four percent in volume and 17 percent higher in value from very strong totals recorded in November of 2010. 

And Schuele says Japan was also a big factor in the beef market.

“Japan was the leading value destination for U.S. beef in November, at more than 85 million dollars,” he says. “That’s up nearly 40 percent from a year ago.

“For the year, (beef) exports to Japan were up 38 percent in value to 812 million dollars.”

For the first eleven months of the year, total U.S. beef exports were 22 percent higher in volume and 35 percent higher in value.

Schuele says when December results become available, beef export value will eclipse the five billion dollars mark for the first time ever.

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Record month and year for ethanol exports

January 13, 2012 By Leave a Comment

U.S. ethanol exports hit a record 152.5 million gallons in November, the most ever in a month. Almost half of the ethanol went to Brazil; Mexico, Canada and the Netherlands are leading customers as well.

For the first eleven months of 2011 exports totaled 1.02 billion gallons and were on pace to hit 1.11 billion gallons for the year. Geoff Cooper, Vice President of Research and Analysis at the Renewable Fuels Association says “American ethanol producers are the lowest cost provider of motor fuel today and have ample supplies available to help meet ethanol demand around the globe.”

While ethanol exports are up, sales of dried distillers grains with solubles (DDGS) are down about 14 percent from 2010’s record 9.03 million metric tons. The Renewable Fuels Association says DDGS exports are on pace to hit 7.72 million metric tons for 2011.

Wisconsin is getting in on the action, the Department of Agriculture, Trade and Consumer Protection says with nine large-scale ethanol plants in the Badger State, ethanol exports through the first nine months of 2011 totaled $217 million making it the state’s second-most valuable export. Canada is the best customer for Wisconsin ethanol.

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World food prices declining..but still high

January 12, 2012 By Leave a Comment

World food prices continued their decline in December. The United Nations Food and Agriculture Organization (FAO) says their December Food Price Index was down 2.4 percent from November and 11.3 percent below the all-time-high set in February.

FAO says cereal prices dropped 4.8 percent in December thanks to record crops, maize prices were 6 percent lower, wheat down 4 percent and rice was 3 percent cheaper than in November. The oils and fat index declined 3 percent thanks to increasing palm and sunflower oil stocks. Meat prices declined slightly for the month, lower hog and sheep prices were offset by higher beef and poultry prices. Dairy was unchanged, lower butter prices offset slightly higher prices for other dairy products. Sugar prices dropped for the fifth month in a row, down 4 percent in December

For the year, the FAO Food Price Index averaged 228 points, the highest yearly average since they started the index in 1990. The previous yearly record had been 200 points in 2008.

Cereals fell 35 percent last year, oils were 14 percent lower and after peaking in July, sugar prices have fallen 18 percent. However dairy prices increased 10 percent for the year while meat prices were 16 percent higher.

Looking ahead, FAO Senior Grains Economist Abdolreza Abbassian says it is difficult to make any firm predictions, “given the uncertainties over the global economy, currency and energy markets.”

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