Port congestion hampers Brazil’s exports

Brazil is harvesting a record soybean crop, but its exports of new crop soybeans are being hampered by severe port congestion in the South American nation.

Reuters reports that China’s leading soybean trader, the Sunrise Group, has cancelled almost two million tons of Brazilian soybean cargoes because of shipping delays.  Reportedly, some ships are waiting 40 to 50 days to load at Brazilian ports.

Iowa Soybean Association CEO Kirk Leeds, who is traveling with a trade delegation in China this week, says timely and reliable delivery gives the U.S. a leg up in the world market.

“Not wanting to take advantage of our friends in South America, but the continued difficulties they’re having—not only with infrastructure, but with government unrest and labor unrest—is certainly beneficial to the U.S. soybean industry,” says Leeds, “because when you buy soybeans from the U.S., they’re shipped on time and you get what you pay for—that’s certainly a huge advantage to have in this market.”

Iowa Secretary of Agriculture Bill Northey, who is also part of that Chinese trade mission, says it’s also a good reminder that the U.S. needs to maintain its infrastructure.

“We need to be able to be very dependable—very predictable,” Northey says. “You know, we are—but we need to continue to invest in that infrastructure in the U.S.”

ISA director of development Grant Kimberley says Brazil’s shipping issues may force China to purchase more soybeans from other sources.  “So I think they are having to come back to the U.S.—and also Argentina and other areas—to continue to purchase soybeans longer into the marketing year than maybe they would have planned to do.”

AUDIO: Comments from Kimberley, Leeds and Northey (3:31 MP3)

Ag groups welcome U.S.-EU trade talks

A coalition of U.S. food and agricultural organizations led by the National Pork Producers Council is praising the Obama administration for launching negotiations with the European Union (EU) on a transatlantic free trade agreement (FTA)—and for its insistence that the agreement be comprehensive and ambitious.

In a letter signed by 64 organizations sent Monday to the Office of the U.S. Trade Representative, the coalition said any FTA with the EU “must fit the excellent model established with the Trans-Pacific Partnership”, meaning all significant trade barriers should be covered in a single comprehensive agreement.

The coalition expressed concern with a trade working group report that suggested an initial U.S.-EU FTA be designed to “evolve over time,” eliminating most barriers to trade and investment but setting up a mechanism to address other barriers.

Recent statements from EU officials, for example, have raised doubts about the EU’s commitment to dealing with sanitary and phytosanitary (SPS) issues as part of the negotiations.

SPS issues must be addressed as part of the negotiations, the coalition wrote, not simply left to some future consultative mechanism.  It also stressed that SPS provisions must be enforceable.

Smithfield responding to ‘ractopamine-free pork’ demands

Smithfield Foods, Inc, the nation’s largest hog producer and pork processor, says it is well positioned to meet the rising demand for ractopamine-free pork.

Smithfield’s announcement comes in the wake of recent announcements from China and Russia that they will require third party certification that pork exports are ractopamine-free.

Smithfield says it has been leveraging its integrated platform to supply ractopamine-free pork to export customers for some time. The company said that its Clinton, North Carolina plant has been 100 percent ractopamine-free since last year. In addition, the company says its Tar Heel, North Carolina plant, the world’s largest pork processing facility, will be fully ractopamine-free by March 1st, in time to comply with the new regulatory requirements from China.

Combined, those two plants will handle more than 43-thousand ractopamine-free hogs per day. They are sourced from company-owned farms, as well as contract producers, and will be fed from feed mills that are entirely ractopamine-free.

Smithfield president and CEO C. Larry Pope is also calling on the U.S. government to work quickly and decisively to resolve the issue of third party verification. He says the company is encouraging the U.S., Chinese and Russian governments to develop certification protocols.

Pope emphasizes that Smithfield still considers ractopamine to be a safe and effective feed supplement for producing leaner pork. He says the company will continue to produce pork with and without ractopamine, according to customer specifications.

NCBA applauds TPP invites to Canada, Mexico

The National Cattlemen’s Beef Association (NCBA) is applauding the decision to invite Canada and Mexico to join the Trans Pacific Partnership (TPP) trade negotiations.

NCBA associate director of legislative affairs Kent Bacus says Canada’s participation in the TPP negotiations is especially important to creating a trade environment in Asia that is free from protectionist trade barriers.

“One of the things we want to see in that negotiation is a strong SPS title that will hopefully eliminate a lot of the political barriers and the non-tariff barriers that U.S. beef has been subject to for so long,” Bacus says.

The “SPS title” Bacus refers to is the sanitary and phytosanitary title.

Colombia FTA “finally” in place says AFBF

With the Colombia Free Trade Agreement with the U.S. now in effect, the potential for new U.S. ag sales is skyrocketing, says the American Farm Bureau Federation.

“We projected this will mean over $350 to $370-Million a year of new sales in the not too distant future of ag products now that we’re competitive,” says American Farm Bureau Trade Specialist Dave Salmonsen.  He adds – it took a long time in coming. The negotiations began with Colombia eight years ago and the deal was essentially completed six years ago. In that time span, Argentina – and, just last year Canada – reached tariff agreements with the South American country.

“You know, the U.S. paved the way and showed that this could be done and what potential benefits would be, but, our process bogged down and moved so slowly that other countries took advantage of it.”

Total US exports under the Colombia FTA will grow by more than one-Billion dollars, according to government estimates.

More than half of U.S. ag products going to Columbia are now tariff-free and in the next few years tariffs will be phased out completely.

~AFBF contributed to this report~

U.S. and China sign new ag cooperation pact

At the U.S.-China ag symposium in Des Moines Thursday, officials signed what they call “a historic Plan of Strategic Cooperation” that will guide the two countries’ agricultural relationship for the next five years.

Ag Secretary Tom Vilsack says, among other things, the plan will strengthen coordination in priority areas like animal and plant health disease, food security, sustainable agriculture and biotechnology.

Corn Growers grade presidential candidates

The National Corn Growers Association (NCGA) project to grade the leading 2012 presidential candidates on their ag policy positions is complete and the results were revealed today by the Iowa Corn Growers Association.

The highest grade on six ag issues: energy, farm programs, trade, EPA and transportation went to Newt Gingrich, who got an A; followed by Rick Santorum, A-minus; President Obama and Mitt Romney, each got a B; Michelle Bachman, D Plus; and, Ron Paul and Herman Cain, both had Ds.

Mindy Larsen Poldberg, director of government relations for Iowa Corn Growers, says the results are not meant to be an endorsement of any of the eight candidates but to inform farmers, Iowans and all voting Americans.

“Agriculture issues are often not the top-line issues for the campaigns and may not make the headlines. So, we think it’s important to be able to provide a tool where in one place a farmer can evaluate (candidates) only based on ag policy, ” Poldberg says.

Iowa Corn Growers President Kevin Ross of Minden, Iowa, says it’s important for the ag industry to take notice, “It’s not an endorsement but this is something I think that everybody in agriculture should look it. Not only farmers but agribusiness in Iowa because ag is such a huge part – in my opinion, this thing should be used and looked at pretty seriously,” says Ross.

A bipartisan committee of growers and Iowa Corn staff determined the grades based on survey responses from the candidates and – in the case of no responses – the public record. The results are being shared with growers nationwide.

While Iowa Corn Growers carried out the Corn Caucus Project Presidential Report Card, they were assisted by the Nebraska, Illinois, Minnesota and Kentucky Corn Growers Associations.

 AUDIO: Mindy Larsen Poldberg, Kevin Ross, Amanda Taylor (35:00 mp3)

Iowa beef and pork producers are in Japan

Iowa secretary of agriculture Bill Northey is participating in an agricultural trade mission to Japan this week.  He’s part of a delegation made up of Iowa beef and pork producers.

“We just have a really good market there,” Northey says. “They are the number one pork buyer—and they’re a big beef buyer again with it, it sounds like, some real possibilities that they’ll change their rule from a 20-month and younger requirement to a 30-month and younger requirement—maybe in the next few weeks.

“If that happens, I think there’s some opportunity to be able to grow that beef business as well.”

Northey says the group will be meeting with larger buyers, processors and sellers of meat and conducting some promotions for Iowa beef and pork in Japanese supermarkets.

EU farm numbers off 20% since ’03

The latest census of agriculture in the European Union shows a twenty percent drop in the number of farms in the EU in just the past seven years.

The 2010 census puts the number of farms in the 27 EU countries at just over 12 million.

The average size of an EU farm in 2010 was 14 hectares—about 35 acres—compared with 12 hectares per farm in 2003.  The total amount of land devoted to farming in the EU last year was down two percent from seven years earlier.

USMEF chair: Make FTAs top priority

Congress faces a busy agenda as it returns from its August recess—but U.S. Meat Export Federation (USMEF) chairman Keith Miller says ratification of the three pending free trade agreements should be at the top of the priority list.

Miller says ratification of the FTAs would bring immediate benefits to the struggling U.S. economy.

“The jobs it can create across the U.S. is no small amount,” Miller says. “We need to get those products moving overseas and the one way we can do it is to sign those free trade agreements.”

Miller–a farmer-stockman from Great Bend, Kansas–says the U.S. is in danger of falling behind competitors in key export markets for U.S. beef and pork.

“I know Australia is really pushing hard to get a free trade agreement with Korea—and they are our largest competitor in the Korean market,” Miller says. “So we need to get that thing signed and get it in force because we see that it could be up to a billion dollars per year increase in exports if we can get this thing going.”

While the volume of meat trade with Panama and Colombia is not as high as Korea, Miller says those agreements are also very important because they represent potential future opportunities for U.S. beef and pork.

“We need to be moving them just as fast as we move the Korean FTA, because they’re getting a better lifestyle and they’re asking for better quality foods,” he says, “and we have that product that we can sell them if we can just get through these free trade agreements.”

At last week’s Farm Progress Show in Decatur, Illinois, American Soybean Association President Alan Kemper of Indiana told Brownfield’s Dave Russell that if Congress doesn’t pass the FTA’s before December, he’s not sure it will even happen next year.