WorldWatch:

[mikey]

East Asean aims to be food basket in Asia
[3 December 2010] The Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area has committed to becoming the food basket of Asean and Asia by strengthening collaboration in agriculture and fisheries. “The four countries are ready to become Asean and Asia’s food basket because they really do have a big potential in agriculture and fisheries,” Indonesian Maritime Affairs and Fisheries Minister Fadel Muhammad said. The exports of agricultural and fishery products of the four countries’ combined stand as high as USD50 billion yearly.

[mikey]

Meat importers assures safety of frozen meat
[6 December 2010] The Meat Importers and Traders Association (MITA) has disputed claims that all frozen meat sold in the local markets are unsafe. MITA President Jesus Cham said that all legally imported meat are sourced from HAACP-certified producers who export their products all over the world, and thus “it is unreasonable and unscientific to claim that the products that are deemed ‘safe’ in other countries are ‘unsafe’ in the Philippines.” He added that the sources of the meat, which come with international health certificates, have been accredited by the Bureau of Animal Industry (BAI) and the National Meat Inspection Service (NMIS). Once in the Philippines, the imported frozen meat is subject to BAI quarantine clearance and NMIS food safety inspection and stored in duly accredited cold storages under the supervision of NMIS.

[mikey]

Two new hatcheries for Eastern Visayas
[7 December 2010] With demand for fingerlings in mariculture zones on the rise, the Philippine Bureau of Fisheries and Aquatic Resources (BFAR) will spend PHP 28 million (USD 642,939) to build to multi-species hatcheries to supply the requirements of mariculture areas in Eastern Visayas. In a report by BusinessWorld, BFAR Regional Director Juan Albaladejo said the facilities, estimated to cost PHP 14 million (USD 321,450) each, will begin construction in the first quarter of 2011. Both facilities are scheduled for construction in the first quarter of next year. Eastern Visayas has 14 mariculture parks with 346 cages, which need several tonnes of fingerlings of various species every setting.

[mikey]

Global agricultural prices sky-rocketed during October 03 Dec 2010
Tightening fundamentals and exchange rate movements played a major role in the price gains across a range of agricultural commodities. Prices now need to ration demand and encourage increased production in 2011/12.

The Rabobank Agri Commodities Monthly for October looks at the effects of global fundamentals and prices, and gives an outlook for wheat, sugar, corn and soybeans.
 
Wheat
- Weaker US dollar makes exports cheaper
- High corn prices pushing wheat into backseat
- Ukraine imposes export quotas
 
The wheat market appears to be taking a backseat to the corn market and macroeconomic factors such as the dollar.
 
Recent currency recalibrations have made US wheat the cheapest available export wheat in the world.
In the Black Sea Region the Ukraine government imposed export quotas from 18 October. In Russia, rising grain prices are now rationing demand as millers are unable to pass on higher costs.
 
Corn
- US yield downgrades likely
- Need for prices to ration demand
- Risk of Chinese imports
 
The US Department of Agriculture (USDA) shocked the market on 8 October by slashing their expected US corn yield and production estimates.
 
Given the USDA’s historic tendency to make further downward revisions after reducing their yield estimates in October, corn prices will need to ration demand in coming months.
 
Uncertainty remains about official Chinese stock levels. But if China has to implement a corn import programme this would further impact the world and US corn balance sheets.
 
Soybeans
- Strong global export demand
- Need to maintain price relative to corn
- La Niña weather pattern still threatens South America
 
Global soybean demand remains extremely robust, especially from China. Even with prices at new highs, there is no real evidence of demand rationing, while soybean prices have lost ground relative to corn.
 
Supply prospects in South America will be key to prices going forward. Although production risks have declined over the last month, the La Niña weather system remains in a strong/moderate phase, and will be key in determining final South American production levels through to early 2011.
 
Source: Rabobank
 

[mikey]

World Agricultural Supply and Demand Estimates - December 2010
Forecasts for 2010 and 2011 pork production have been raised, according to the latest USDA World Agricultural Supply and Demand Estimates.

Livestock, Poultry and Dairy
The forecast of total US meat production is raised for 2010 and 2011. Forecasts for 2010 beef, pork, broilers and turkeys are raised reflecting high slaughter levels during the fourth quarter and higher weights for hogs and broilers. For 2011, production forecasts for beef, pork, and broilers are increased. The beef production increase largely reflects higher forecast placements of cattle during the fourth quarter of 2010 and early 2011. Pork production is raised from last month on slightly higher slaughter. Broiler production is forecast higher as hatchery data indicate continued large egg sets and poultry placements during the fourth quarter of 2010. The turkey production forecast for 2011 is unchanged from last month. The egg production forecast is lowered slightly in 2010 but is unchanged for 2011.

Trade forecasts for 2010 are adjusted, largely reflecting third quarter data. However, beef imports are lowered for both late 2010 and early 2011 as exportable supplies of beef for several U.S suppliers are expected to be relatively tight. Beef exports are raised for 2011 as improved economic growth in major export markets is expected to stimulate sales. Pork exports for 2010 are reduced as relatively high pork prices are likely constraining growth in exports. Forecasts for pork exports for 2011 are unchanged. Poultry forecasts for 2011 are unchanged.

The cattle price forecasts for 2010 and 2011 are raised to reflect continued strong demand for cattle. Hog prices for 2010 and 2011 are forecast lower than last month as pork supplies are large. The broiler price forecast is lowered on larger supplies. Egg prices for 2010 and 2011 are forecast higher.

Forecast milk production for 2010 and 2011 is little changed last month. Fat-basis imports for 2010 are lowered primarily due to lower imports of cheese but skim-solids imports are unchanged due to higher imports of expected imports of other products. Fat basis exports for 2010 are raised as sales of cheese and fluid milk and cream are strong and skim-solids exports are boosted by strong sales of cheese and nonfat dry milk (NDM). Exports for 2011 are forecast higher due to expected growth in butter and nonfat dry milk sales. Ending stocks for 2010 are raised to reflect higher-than expected stocks of cheese.

For 2010, cheese and whey prices are unchanged from last month. NDM prices are forecast higher but the butter price forecast is reduced reflecting recent sharp declines in butter prices. With no change in either the cheese or whey price, the Class III price forecast is unchanged. However, the Class IV price forecast is reduced, due to a lower butter price forecast which more than offsets a higher expected NDM price. For 2011, the range of the cheese price forecast narrowed but whey is forecast higher. The butter price is reduced as current price weakness spills into early 2011. NDM prices are forecast higher. The ranges of the Class III and Class IV price forecasts are narrowed from last month. The all milk price is forecast to average $16.25 to $16.35 per cwt for 2010 and $15.90 to $16.70 per cwt for 2011.

Wheat
US wheat ending stocks for 2010/11 are projected 10 million bushels higher this month reflecting lower domestic use. Projected food use is lowered 10 million bushels on the latest mill-grind data from the US Census Bureau which indicate flour extraction rates that are higher than the long-term average for a third straight year. With historically high wheat prices, millers continue to get more flour out of each bushel of wheat. Total exports are unchanged, but small shifts among classes result in higher projected exports of Hard Red Spring and White wheat and lower projected exports of Hard Red Winter wheat and durum. The projected marketing-year average price received by producers is narrowed 5 cents on each end of the range to $5.30 to $5.70 per bushel.

Global 2010/11 wheat supplies are projected 4.9 million tons higher this month reflecting an increase in EU-27 beginnings stocks with lower 2009/10 feed use and higher 2010/11 production in Australia, Pakistan, Canada, Brazil, and Ukraine. Production for Australia is raised 1.5 million tons as higher reported yields in eastern Australia continue to boost production prospects. Recent, heavy rains in many of these same areas, however, have dampened production prospects and reduced wheat quality. Official government statistics for Pakistan and Canada boost production 1.3 million tons and 1.0 million tons, respectively. Brazil production is raised 0.4 million tons as favorably dry harvest weather in southern growing areas add to output. Ukraine production is raised 0.2 million tons on the latest government data. Partly offsetting these increases is a 0.5-million-ton reduction for Russia.

World wheat trade for 2010/11 is projected lower this month as tighter supplies of high quality wheat raise world prices and slow demand in several smaller markets. Wheat imports are also reduced 0.5 million tons each for Brazil and EU-27. Larger production reduces the need for imports in Brazil. In EU-27, lower expected wheat feeding reduces demand for imported wheat. World wheat exports are lowered 1.7 million tons with reductions for Australia, China, Canada, and Mexico. Export prospects for Australia and Canada are reduced reflecting the lower quality of wheat in both countries this year. Partly offsetting are increases for Iran, Serbia and Croatia.

Global 2010/11 wheat consumption is raised with higher expected wheat feeding in China and higher expected feed and residual disappearance in Australia and Canada. Reduced government incentives to export wheat from China make more wheat available for domestic feeding. Larger supplies of lower quality wheat in Australia and Canada are expected to boost feeding and increase residual losses in both countries. Partly offsetting are 0.5-million-ton reductions in feed use for both EU-17 and Russia, and small declines in food use in several countries due to high prices. Ending stocks are raised 4.2 million tons with the largest increases for Pakistan, EU-27, Australia and Canada.

Coarse Grains
US feed grain supplies for 2010/11 are virtually unchanged as a small increase in corn imports is offset by a reduction in barley imports both reflecting feed grain production changes for Canada this month. US corn imports are raised five million bushels with record production reported for Canada. US corn ending stocks are raised accordingly. Barley imports are lowered 5 million bushels with lower production in Canada and the slow pace of imports to date. US barley food, seed, and industrial use is lowered the same amount as domestic beer consumption remains weak slowing demand for malting barley. The projected marketing-year average price received by US corn producers is unchanged this month at $4.80 to $5.60 per bushel. Farm prices for barley and oats are both projected slightly lower based on prices received by producers to date.

Global coarse grain production for 2010/11 is increased 3.4 million tons with corn production up 2.2 million tons, barley production up 0.6 million tons, and oats production up 0.4 million tons. India corn production is raised 1.0 million tons as the extended monsoon increased late-season soil moisture for the summer corn crop. The same conditions boosted harvested area for millet, adding 0.3 million tons to India production. Australia barley and oats production are raised 1.9 million tons and 0.5 million tons, respectively, both on higher reported yields. The latest official statistics from Canada indicated mostly offsetting production changes for coarse grains. Canada corn production is raised 0.7 million tons as favorable weather boosted corn yields in Ontario and Quebec. Canada barley production is lowered 0.6 million tons with lower area and yields in the western prairies. Corn production is raised 0.5 million tons for Ukraine and 0.4 million tons for EU-27. Small offsetting reductions are made this month for Paraguay corn, Ukraine barley and oats, and Russia barley and rye.

Global 2010/11 coarse grain trade is lowered slightly mostly reflecting reduced corn imports by Mexico as feeding there is projected lower. Corn exports are lowered 0.8 million tons for Serbia, but raised 0.5 million tons and 0.2 million tons, respectively, for India and Canada. Barley exports are lowered 0.4 million tons for Canada, but raised 0.3 million tons for Australia. Reduced corn feeding for Mexico and Serbia is mostly offset by increases for India, South Africa, and Canada. Global corn ending stocks are projected 0.8 million tons higher with larger stocks in EU-27 and Serbia partly offset by smaller stocks in South Africa and Mexico.

Oilseeds
Total US oilseed production for 2010/11 is projected at 101.7 million tons, down slightly due to a small reduction in cottonseed. Soybean exports are increased 20 million bushels to 1.59 billion reflecting record export commitments (shipments plus outstanding sales) through November. With projected crush unchanged, soybean ending stocks for 2010/11 are projected at 165 million bushels, down 20 million from last month.

The US season-average soybean price range for 2010/11 is projected at $10.70 to $12.20 per bushel, unchanged from last month. The soybean meal price projection is also unchanged at $310 to $350 per short ton. Soybean oil prices are projected at 45 to 49 cents per pound, up 2.5 cents on both ends of the range.

Global oilseed production for 2010/11 is projected at 442.6 million tons, up 1.9 million tons from last month. Foreign oilseed production accounts for most of the change with increases for soybeans, rapeseed, sunflowerseed, and cottonseed. Global soybean production is projected at a 257.8 million tons, up 0.4 million mainly due to an increase for Canada. Global rapeseed production is projected at 58.4 million tons, up 1.2 million due to gains for Canada and EU-27. Canadian rapeseed production is raised 0.9 million tons to 11.9 million based on the latest survey results from Statistics Canada. Higher-than-expected yields account for the change. EU-27 rapeseed production is increased due to higher yield estimates for Germany, United Kingdom, and Romania. Other changes this month include increased sunflowerseed production for EU-27, increased cottonseed production for Brazil and Australia, and reduced cottonseed production for Pakistan.

Global oilseed trade is projected at 112.2 million tons, up 0.9 million from last month. Increased soybean exports from the United States and Canada account for most of the change. Global oilseed ending stocks are projected at 70.3 million tons, down 1 million, as lower soybean stocks in Brazil and the United States are only partly offset by higher rapeseed stocks in Canada.

[mikey]

Philippine meat traders ask government to reconsider order
[16 December 2010]  Philippine meat traders and importers have asked the Department of Agriculture to reconsider an order that requires traders and importers to put up cold-chain systems for storing frozen and chilled meat. The Meat Importers and Traders Association (MITA) questioned what it considered were “serious loopholes” in DA Administrative Order 22, which is yet to take effect. In a letter to Agriculture Secretary Proceso Alcala, MITA President Jesus Cham said that there was no consultation with the industry before the order was made and that should the order be put into effect in its original form it could mean a 30% reduction in pork supply in Metro Manila.

[mikey]

Agribusiness to face market volatility next 3-5 years
[17 December 2010] Agribusiness companies are likely to face increased market volatility and higher prices over the next three to five years, findings of Rabobank Food and Agribusiness Research and Advisory said. This will present challenges as risk management and positioning become even more important yet it will also create opportunities for trading. Its Global Strategist David Nelson added that slow world economic growth and food demand shifting east will cause companies to rebalance their operating portfolios or bear the risk of having regional imbalances.

[mikey]

Deal raises Nobel’s sugar cane capacity to 17.5 million tonnes
[22 December 2010] Noble Group, Asia’s biggest commodities trader, said it would pay USD950 million for two Brazilian cane mills, raising its crushing capacity by 84% in the world’s largest sugar exporter. The acquisition of Catanduva and Potirendaba, fully operational mills in Sao Paulo State, will propel Nobel into the top tier of sugar cane milling companies globally, taking the combined annual potential crushing sugar cane capacity that it will control to 17.5 million tonnes.



 
Brands get healthy in Asia
[22 December 2010] Nestlé and PepsiCo plan to capitalize on growing health concerns among Asian consumers by using herbs and traditional medicines to create a new range of products. Nestlé will invest USD 500 million over the coming decade on health foods while PepsiCo will pump in USD 2.5 billion in Asia over the next three years. Nestlé will consider wolfberry plants, chrysanthemum leaves and tremella, a fungus commonly thought to help improve the skin, strengthen bones and control weight, while PepsiCo has already launched wolfberry and tremella-flavoured Quaker Herbal Oatmeal, and a range of herbal teas

[mikey]

Stricter rules on imported frozen meat stay in the Philippines
[23 December 2010] The Philippine Department of Agriculture is bent on implementing Administrative Order 22, which requires increased sanitary procedures on all frozen meat products, despite calls from meat importers and requests from the US and Canadian governments for its deferment. The order became effective December 12. Agriculture Secretary Proceso Alcala said the order would remain as it is beneficial to both consumers and producers. However, meat importers and traders have earlier said that the new order has deficiencies and was put in effect without consultation with stakeholders.
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Global food prices to reach record highs
[23 December 2010] Global food prices are expected to set new highs as by the year end, a UN official said. “The situation has deteriorated since September,” said Abdolreza Abbassian of the UN Food and Agriculture Organization. “In the last few weeks there have been signs we are heading the same way as in 2008.” The food crisis in 2008 left as much as 25 countries in riots. The Wall Street Journal reported that the UN’s food price index hit 205 in November,  only seven points less than the highest level in June, 2008. Abbassian said the rise of food prices indicates the beginning of a long-term wave of increased prices after as long as a century of deflation. 

[mikey]

Indonesian government urged to provide incentives for agribusiness
[29 December 2010] To achieve self-sufficiency in food production, the Indonesian Chamber of Commerce and Industry urged the government to provide incentives to agribusiness firms willing to set up plantations in the country. This is to attract investors to enter agribusiness so Indonesia would no longer need to import sugar, corns or soybeans or even rice to meet the domestic demand in the future. Apart from incentives, the Government should also develop roads, ports and power plants in areas such as Sumatra, Kalimantan, Sulawesi and Papua to attract investors to do business in these areas.

[Mustang Sally Farm]

The coming hunger: Record food prices put world 'in danger', says UN

Perfect storm of climate and oil puts world into 'danger territory'

By Sean O'Grady, Economics Editor


Thursday, 6 January 2011


Record food prices put world 'in danger', says UN

Food riots, geopolitical tensions, global inflation and increasing hunger among the planet's poorest people are the likely effects of a new surge in world food prices, which have hit an all-time high according to the United Nations.


The UN's index of food prices – an international basket comprising wheat, corn, dairy produce, meat and sugar – stands at its highest since the index started in 1990, surpassing even the peaks seen during the 2008 food crisis, which prompted civil disturbances from Mexico to Indonesia.

"We are entering danger territory," said the UN Food and Agriculture Organisation's chief economist, Abdolreza Abbassian.



The trends have already affected the UK where the jump in food prices in November was the highest since 1976. Meat and poultry were up 1 per cent and fruit by 7.5 per cent in one month.

Food producers have been told to expect the wheat price to jump again this month, hitting bakers and the makers of everything from pasta to biscuits.

More is sure to follow and that in turn will add to pressure on the Bank of England to raise interest rates to control rising prices. Higher mortgage bills by the end of the year will add to the unpleasantness facing "middle England" from a year of tax hikes and below-inflation pay rises.

However, the biggest impact of the food price shock will be felt in countries in the developing world where staple items command a much larger share of household incomes.

Economists warn that "soft commodity" food prices show little sign of stabilising, and that cereals and sugar in particular may surge even higher in coming months. In addition, long-term trends associated with growth in population and climate change may mean higher food costs become a permanent feature of economic life, even though the current spike may end in due course. Speculation, too, may be part of the crisis, as investors climb on to the rising food-price bandwagon.

Mr Abbassian said the UN agency is concerned by the unpredictability of weather activity, which many experts link to climate change. He said: "There is still room for prices to go up much higher, if for example the dry conditions in Argentina tend to become a drought, and if we start having problems with winterkill in the northern hemisphere for the wheat crops."

One concern, especially in Ukraine and Russia, is that the cold winter, following disastrous droughts and summer fires, will have damaged the seeds for next year's crops, leading to an even more acute crisis than seen last year. Government policies, especially the export bans imposed by nervous Indian and Russian governments, have exacerbated such problems in world markets.

Meanwhile, burgeoning consumption in the booming economies of east Asia and the pressure exerted by the demand for crops for biofuels rather than food, especially in the US, is adding to the unprecedented squeeze on world food supplies.

The latest surge in crude oil prices adds to the risk of turmoil. Many experts say oil prices show few signs of abating, and the price of a barrel is set to breach the $100 barrier again soon. Opec officials yesterday said they were happy with such a level. Oil peaked at just under $150 a barrel in 2008; any sign of renewed tension in Iran would see the price exceed that. Higher oil prices add to food price inflation by increasing transportation costs.

The interplay of rising fuel prices, the growing use of biofuels, bad weather and soaring futures markets drove up the price of food dramatically in 2008, prompting violent protests in Mexico, Indonesia, Egypt, Cameroon and Haiti. Last year's spike was provoked mainly by the freakish weather conditions in Russia and Ukraine, but one of the underlying trends is the growing and changing appetites of east Asia.

As more Chinese enter the middle classes they tend to consume more poultry and meat, just as Westerners did at a similar stage in their economic progress. However, meat and poultry husbandry consumes at least three times the resources that grains do, while the drift towards the cities in China is reducing the yields of its farms. Similar trends are visible in the other fast-growing, populous nations such as Brazil, India and Indonesia.

Countries that are poor and produce relatively little of their own food are most vulnerable to the food price shock – Bangladesh, Morocco and Nigeria top the "at risk" list, according to research by Nomura economists, who also identify growing shortages of water as a critical factor restraining any growth in agricultural productivity.

Owen Job, strategist at Nomura, said: "The economists' model of increasing supply as demand grows may be breaking down. Supply cannot keep up with factors such as biofuels and the urbanisation of China. Some 30 per cent of all water used in agriculture comes from unsustainable sources."

* David Cameron has disclosed that the Treasury was considering introducing a "fuel stabiliser". Under the move, tax paid
 by motorists would be cut when the cost of oil surged worldwide and rise when it dropped. He said: "We are looking at it. It's not simple but I would like to try and find some way of sharing the risk of higher fuel prices with the consumer."

[Mustang Sally Farm]

Philippines gets $4.97-M World Bank grant to help farmers weather climate change impact
The Philippines got a $4.97-million World Bank grant to help farmers cope with the effects of climate change, the multilateral lender said in a statement released on Friday.

The government and the World bank signed the agreement last Dec. 21, the statement said.

The grant, to come from the Global Environment facility of the World Bank-managed Special Climate Change Fund, will help finance the $55.42-million Philippines Climate Change Adaptation Project (PhilCCAP).

Data from the World Bank Web site showed PhilCCAP was approved on June 29 last year, with the Philippines shelling out $50.45 million in counterpart funding.

The project aims to develop and test adaptation strategies that will develop the resiliency of farms and natural resource management to the effects of climate change.

Measures to be funded include improving irrigation and other agricultural infrastructure, pilot-testing weather index-based crop insurance, as well as enhancing the management of watersheds and protected areas, the World Bank said in its statement.

It also aims to improve the capacity of the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) in gathering and analyzing data on climate change trends and disseminating information to the government and the public.

World Bank said the project will be implemented by the Department of Agriculture, the Department of Environment and Natural Resources (DENR), PAGASA and the Climate Change Commission.

It said the project will help both the national and local governments, as well as rural communities "more effectively manage and protect critical ecosystems through a systematic consideration of climate risks."

"Poor communities are more vulnerable to climate change and have fewer options for coping with the impact, including decreased food and water supplies. This project, therefore, is very important because it helps reduce the poor’s vulnerability to these types of shocks," World Bank Country Director Bert Hofman said in the statement.

The same statement quoted Agriculture Secretary Proceso J. Alcala as saying "the project will benefit poor farmers, who often suffer the most from climate change-related losses, as well as other vulnerable groups that depend on agriculture and natural resources for their livelihoods."

Environment and Natural Resources Sec. Ramon Jesus P. Paje said in the statement that the project "will also strengthen the coordination of interventions addressing climate change by supporting capacity-building in oversight bodies like the Climate Change Commission."

The bank noted that the Philippines is among the top 10 countries at risk of natural disasters and other effects of climate change.

More state funding

In a related development, a bill now being scheduled for public hearing in the House of Representatives seeks to establish a fund for local government units (LGUs) that will adopt programs to help their communities weather the impact of climate change.

House Bill (HB) 3528, filed Deputy Speaker Lorenzo M. Tañada III (4th district, Quezon), seeks to put up the "People’s Survival Fund" (PSF), to be administered by the Climate Change Commission, which will serve as an incentive to LGUs that will develop and adopt such climate change adaptation strategies.

The PSF will become the central source of funding support for adaptation measures urgently needed by farming localities.

Examples include small water impounding projects in anticipation of drought and structures that can reduce damage from floods, Mr. Tañada said in a statement on Friday.

He added that "communities must be properly equipped and prepared to help themselves in order to respond to the disasters brought about by this phenomenon. They must also put forward a climate change adaptation strategy which must be properly funded."

The funds will come from domestic private and public, as well as foreign funds. These include, but will not be limited to, 10% of the cash dividends declared by all government-owned and controlled corporations and a portion of the Motor Vehicle User’s Charge.

The bill has been pending with the Committee on Ecology, chaired by Rep. Danilo Ramon S. Fernandez since October 2010. A counterpart measure, Senate Bill 2558, authored by Senate President Juan Ponce Enrile, was subjected to its first public hearing late last year. -- JJAC and NMG

[Mustang Sally Farm]

Russia Doubles Meat and Poultry Quota
RUSSIA - Russia’s Ministry of Economic Development (MED) has announced the initial distribution of 2011 tariff-rate quotas (TRQ) quantities to importers, which includes an increase US frozen beef quota allocation from 21,700 to 41,700 MT.


This increase in US quota will result in significant reductions for "other countries".

The poultry TRQ has been reduced to 350,000 MT and narrowed in product scope, and will not have country-specific allocations in 2011.

Fresh beef, pork, and pork trimming TRQ remain unchanged from 2010. MED will distribute the remaining TRQ quantities to importers by April 15, 2010.

“The American Meat Institute would like to thank Ambassador Siddiqui and the staff at the Office of the United States Representative (USTR) for their efforts in negotiating this increased allocation, which represents more than an estimated $75 million in additional 2011 frozen beef exports,” said AMI President and CEO J. Patrick Boyle.

[Mustang Sally Farm]

Agricultural Revolution Needed to Feed the World
UK - A report published today, highlights the decisions that policy makers must make today and in the near future, to ensure that a global population rising to nine billion or more can be fed sustainably and equitably.


The Foresight report makes a compelling case for urgent action to redesign the global food system to meet the challenge of feeding the world over the next 40 years.

Professor Sir John Beddington, the Government’s Chief Scientific Adviser and Head of the Foresight programme, said: “The Foresight study shows that the food system is already failing in at least two ways. Firstly, it is unsustainable, with resources being used faster than they can be naturally replenished. Secondly, a billion people are going hungry with another billion people suffering from ‘hidden hunger’, whilst a billion people are over-consuming.

“The project has helped to identify a wide range of possible actions that can meet the challenges facing food and farming, both now and in the future.”

UK Environment Secretary Caroline Spelman said: “We need a global, integrated approach to food security, one that looks beyond the food system to the inseparable goals of reducing poverty, tackling climate change and reducing biodiversity loss – and the UK Government is determined to show the international leadership needed to make that happen.”

“We can unlock an agricultural revolution in the developing world, which would benefit the poorest the most, simply by improving access to knowledge and technology, creating better access to markets and investing in infrastructure.

“To fuel this revolution, we must open up global markets, boost global trade and make reforms that help the poorest. Trade restrictions must be avoided, especially at times of scarcity. And we must manage price volatility by building trust and cooperation – and in particular by creating greater transparency around the true levels of food stocks.”

The report’s main findings are:

Threat of hunger could increase: Efforts to end hunger internationally are already stalling, and without decisive action food prices could rise substantially over the next 40 years making the situation worse. This will affect us all - as more of the world suffers from hunger social tensions will increase, as will the threat of conflict and migration. Wider economic growth will also be affected.

The global food system is living outside its means, consuming resources faster than are naturally replenished. It must be redesigned to bring sustainability centre stage: Substantial changes will be required throughout the food system and related areas, such as water use, energy use and addressing climate change, if food security is to be provided for a predicted nine billion or more people out to 2050.

There is no quick fix: The potential threats converging on the global food system are so great that action is needed across many fronts, from changing diets to eliminating food waste.

[Mustang Sally Farm]

China Farm Produce Prices Continue Rising
CHINA - Chinese farm produce prices rose for a fourth consecutive week, through 23 January, the Ministry of Commerce said Tuesday.


One reason for the price hike was that freezing weather in southern China had affected vegetable production and transportation, the ministry said in a statement on its website.

The wholesale prices of 18 staple vegetables grew 12.6 per cent week on week. Also, the prices of green peppers, cucumbers, chilli peppers and bean pods rose by at least 10 per cent.

As the Spring Festival draws near, the demand for meat and eggs increased, while enterprises have been stockpiling supplies and large purchases have expanded.

Egg prices climbed 1 per cent week on week and beef prices went up 0.8 per cent, while pork prices increased 0.7 per cent and chicken prices were up 0.2 per cent.

Last year, rising food prices pushed up China's consumer price index (CPI), the major gauge of inflation. China's CPI hit 3.3 per cent in 2010, compared with the government's target ceiling of 3 per cent, the National Bureau of Statistics said on 20 January.