WorldWatch:

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9 October 2009] Following the devastation caused by Typhoon Ketsana, the Philippine Department of Trade and Industry (DTI) has set price ceilings on basic commodities to prevent unscrupulous traders from raising prices. The order covers both wet markets and supermarkets, and includes products like canned sardines, processed milk, rice, meat, poultry, sugar, and cooking oil. This means that sellers will not be allowed to raise prices for 60 days after the state of calamity was raised on 27 September in Metro Manila, Mountain Province, Ifugao, Benguet, Pangasinan, La Union, Ilocos Sur, Isabela, Quirino, Nueva Vizcaya, Aurora, Nueva Ecija, Zambales, Pampanga, Bulacan, Tarlac, Bataan, Cavite, Laguna, Batangas, Rizal, Quezon, Mindoro Oriental, Mindoro Occidental, Marinduque, Catanduanes, Camarines Norte and Camarines Sur.

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RFM to increase halal exports to Middle East
[16 October 2009] Philippine food conglomerate RFM Corporation plans to increase its shipment of halal meat products to the Middle East this year.  Imelda J. Madarang, RFM vice-president and general manager for exports, said the firm is looking to ship some USD 2 million worth of halal meat products, particularly sausages, within the six-member countries of the Gulf Cooperation Council (GCC) composed of Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates, and Oman. She said that so far, the company has sent “close to 50 containers of halal sausages” to the region. Likewise RFM, which pioneered in the export of halal meat, expects to introduce two new frozen meat products within the year. Although export sales made up just a small percentage of RFM’s sales in 2008, Ms Mdarang said the company’s venture into the halal market would be the driver of the firm’s export division. In 2008, RFM sales topped PHP 7.55 billion (USD 163 million)

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US meat supplier meet with Asian buyers
[19 October 2009] Recognizing the growing value and potential in Southeast Asia's Asean region the U.S. Meat Export Federation brought U.S. and ASEAN business contacts together for a “Meet the Buyers” conference in Denver. Meat trade leaders from the Philippines, Singapore, Thailand and Vietnam met in face-to-face talks with suppliers to discuss their product needs and share information about their markets.
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Agriculture damage hits PHP 18 billion
[19 October 2009] Damage to agriculture from the successive typhoons that hit the Philippines is now pegged at an estimated PHP 18 billion (USD 388.6 million). The latest report of the Department of Agriculture Central Action Centre said that the two typhoons destroyed some 121,949 hectares of croplands causing the loss of 925,523 tonnes of rice, corn, and high-value commercial crops, as well as fishery products, livestock and poultry. Some 21,354 hectares of corn were damaged. This amounts to losses of about 41,948 tonnes of corn grains. Meanwhile, some PHP 13 million (USD 280,656) worth of livestock and poultry products were reported dead or lost. 

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[27 October 2009] Food and beverage conglomerate RFM Corp is confident it will recover from losses brought about by the two typhoons that hit the Philippines in late September and early October. RFM President and CEO Jose Ma. Concepcion III said the company lost a significant amount of perishable products during the typhoons, especially in Metro Manila and Northern Luzon, which were the hardest hit. Nevertheless, Mr Concepcion is optimistic that the company will manage to sustain its first half growth into the third quarter. For the first six months, RFM returned to profitability with profits reaching PHP 134.5 million (USD 2.87 million), as sales grew more than 20% to reach PHP 3.85 billion (USD 82.16 million). The company hopes to duplicate its 23% revenue growth last year when it recorded sales of PHP 7.55 billion (USD 161.12 million) and a net income of PHP 234 million (USD 4.99 million).

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 Livestock Asia 2009 opens today
[27 October 2009] A record number of national pavilions have been secured for the 5th edition of Livestock Asia Expo & Forum that opens today at the Kuala Lumpur Convention Centre. The show that goes on until October 29 is slated as one of the region's premier feed, livestock and meat processing industry shows. Organizer AMB Exhibitions said the event this time has a greater international focus with more international pavilions and more than 30% of the visitors coming from outside Malaysia. Show highlights will include the 5th Asian Livestock Industry Award as well as the 5th Malaysian Livestock Industry Awards. 
 
 
 

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Bounty and Aftab win regional integrator award
[28 October 2009] Bounty Fresh Group of Companies from the Philippines and Aftab Bahumukhi Farms Ltd of Bangladesh were judged winners of the Asian Livestock Industry Award 2009. The awards were presented by Asian Agribusiness Media and AMB Exhibitions at the Livestock Asia Expo and Forum currently being held in Kuala Lumpur, Malaysia. This prestigious regional award is presented once in two years to an integrator that has shown great potential and growth domestically and in the region. They were judged by an independent panel on four broad categories namely industry leadership, use of technology in operations, health & safety and marketing & promotions.

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China moves forward on China-Asean FTA
[28 October 2009] The free trade area (FTA) between China and the Association of Southeast Asian Nations (Asean), which is scheduled to be established on January 1, 2010, reflects China’s willingness for larger foreign trade and deeper economic cooperation with other countries and regions and will pave the way for the FTA between China, Japan and South Korea in the future. This was the message from the 6th China-Asean Expo held in Nanning, capital of south China's Guangxi province last week. China has become Asean's third largest trading partner in 2009. Guangxi, China's south region bordering Vietnam, saw trade volume with Asean jumped from USD 630 million in 2002 when the FTA started, to USD 3.99 billion in 2008, official data showed

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Philippines continue to seek exemption from AFTA's zero tariff
[29 October 2009] The Philippines continue to seek deferment of the tariff reduction next year under the Asean Free Trade Agreement (AFTA) not only for rice and sugar, but also for livestock and poultry, said Ambassador Donald Dee, special envoy for international trade negotiations.Poultry and pork imports are currently slapped tariffs of 40% and 35% respectively, but local producers fear that they will not be able to compete when AFTA's full implementation bring the tariffs down to between 0-5% beginning January 2010. The United Broiler Raisers Association said that in August this year, farm price for live chicken was PHP 66 (USD 1.41)/kg compared to PHP 48 (USD 1.02)/kg in Thailand. Farm price for live hog was PHP 85 (USD 1.81)/kg compared to PHP 60 (USD 1.28) in Thailand.

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 Progress made towards goal of FMD eradication by 2020
[29 October 2009] Satisfactory progress has been achieved by the South East Asia Foot and Mouth Disease Regional Coordination Unit in its goal to eradicate the disease from the region by 2020. Unit regional co-ordinator, Ronello Anila, told the 4th Congress of the Asian Pig Veterinary Society in Tsukuba, Japan, more epidemiological investigations of outbreaks are needed to better understand virus activity in the field. “Continued political commitment, coupled with proper allocation of needed resources from each member country, is the most important factor in achieving eradication by 2020,” he said. 
 
 
 

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 Progress made towards goal of FMD eradication by 2020
[29 October 2009] Satisfactory progress has been achieved by the South East Asia Foot and Mouth Disease Regional Coordination Unit in its goal to eradicate the disease from the region by 2020. Unit regional co-ordinator, Ronello Anila, told the 4th Congress of the Asian Pig Veterinary Society in Tsukuba, Japan, more epidemiological investigations of outbreaks are needed to better understand virus activity in the field. “Continued political commitment, coupled with proper allocation of needed resources from each member country, is the most important factor in achieving eradication by 2020,” he said. 
 
 
 

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Philippines could be agribusiness hub for the US
[2 November 2009] The Philippines could become a regional agribusiness hub for the US because of its strategic location and untapped resources, Philippine Agriculture Secretary Arthur Yap said during a briefing on the four-day trade and investment mission led by his American counterpart, Thomas J. Vilsack. For his part, Mr Vilsack said that the US will continue to look for investment and export opportunities in the Philippines. The mission included aquaculture firm Verdant Ocean, Inc and feed miller Novick Industries Ltd. Novick President Luyi Ogbebor hinted at the possibility of his company investing USD 10-15 million for a feed and flour processing plant in the Philppines, while Verdant Ocean President Denzil Nicholson said they are exploring aquaculture and sustainable seafood production in the country. In 2008, US farm products sold to the Philippines reached a record USD 1.77 billion, while Philippine agricultural exports to the US reached USD 1.24 billion.

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16 November 2009] Ocean container carriers in the westbound trans-Pacific trade lanes announced early this month their intent to increase rates on December 1, and again on January 15, 2010. These rate increases are followed by previous rate increases that took place in July and September. The December increases will apply to dry cargo only and amount to between USD 80-120 per 20-foot container. The January increases will apply to refrigerated cargo and amount to between USD 200-250 per 20-foot container.
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IMF raises growth forecast for Asia
[16 November 2009] Asian economies, particularly China and India are expected to grow faster than expected through next year, far outpacing recoveries in the West, predicts the International Monetary Fund (IMF), although it will remain below the levels seen in the decade before the economic crisis. Growth in Asia is expected to accelerate to 5.8% next year from 2.8% this year. 

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World Agricultural Supply and Demand Estimates - November 2009
According to the latest World Agricultural Supply and Demand Estimates from the USDA's World Agricultural Outlook Board (WOAB), red meat and poultry exports forecasts for 2009 and 2010 have been raised.


Livestock, Poultry and Dairy
Total US meat production for 2009 is raised as fourth-quarter pork and beef production is forecast higher on larger-than-expected October output. Broiler production is raised due to higher-than-expected third-quarter production; forecast fourth-quarter production is unchanged from last month. Turkey production is decreased on weaker third-quarter production, and forecast lower fourth-quarter slaughter. Egg production is little changed.

Meat production for 2010 is lowered from last month as higher forecast beef production due to larger feedlot placements in 2009 is more than offset by lower forecasts for broilers and turkey. Broiler and turkey hatchery data points to a smaller than previously forecast expansion in 2010.

Red meat and poultry export forecasts for 2009 and 2010 are raised. Beef exports are forecast higher for the last half of 2009 and for 2010 on a weak dollar outlook, and improved economic outlook next year. Poultry exports are raised for third-quarter 2009. Import forecasts for beef for both 2009 and 2010 are reduced reflecting lower expected beef supplies in Oceania.

Cattle price forecasts are unchanged for 2009 and 2010. The hog price forecast is raised for fourth quarter 2009, but is unchanged for 2010. Broiler prices are lowered for 2009 and 2010. The egg price forecast is increased slightly for 2009 as fourth-quarter prices have been higher than expected but the forecast is unchanged for 2010.

The milk production forecasts are raised for 2009 and 2010 as milk per cow is forecast higher and the rate of decline in cow inventories is slowed. Improved milk prices are expected to more than outweigh higher feed costs and slow the pace of liquidation. Improving global demand and concerns about world supplies of dairy products have pushed international dairy prices higher and are expected to result in higher US dairy exports during the remainder of this year and into 2010. Import forecasts are lowered for 2009. Fat-basis ending stocks are forecast higher for 2009, but 2010 stocks are forecast lower on both a fat and skim-solids basis as supplies tighten. Improving domestic and export demand and lower year-to-year milk production is expected to lead to higher prices for US cheese, butter, nonfat dry milk, and whey. Class III and IV price forecasts for 2009 and 2010 are raised from last month. The all milk price is forecast at $12.60 to $12.70 per cwt for 2009 and $16.05 to $16.95 for 2010.

Wheat
US wheat supplies for 2009/10 are reduced 4 million bushels this month with small downward revisions to hard red spring wheat and durum production. Exports are projected 25 million bushels lower based on the slow pace of export sales and shipments and increased competition from major Black Sea exporters. US ending stocks for 2009/10 are projected 21 million bushels higher. Ending stocks would be a 10-year high at the projected 885 million bushels. The projected marketing-year average farm price range is narrowed 10 cents on both ends of the range to $4.65 to $5.05 per bushel. Recent gains in futures prices have supported farm gate prices while limiting export opportunities for US wheat.

Global wheat supplies for 2009/10 are projected 1.7 million tons higher as increased production more than offsets a reduction in beginning stocks. Foreign production is raised 3.9 million tons with most of the increase in FSU-12 as an extended growing season and favorable harvest weather boosted yields. Production is raised 2.0 million tons each for Kazakhstan and Russia as harvest results indicate higher yields for spring wheat. Ukraine production is raised 0.5 million tons reflecting late season revisions to winter wheat yields. Production is raised 0.8 million tons for Syria as increased use of irrigation raised yields. Chile production is also raised 0.3 million tons on higher reported area. Production is lowered 1.1 million tons for EU-27 with reductions for France, the United Kingdom, Italy and Spain more than offsetting small increases elsewhere. Production is also lowered 0.5 million tons for Canada as above normal precipitation and below normal temperatures during October delayed harvesting and raised the potential for field losses, particularly in northern Saskatchewan.

Global wheat trade for 2009/10 is projected higher this month. Imports are raised for EU-27, Israel, South Korea, Syria, Turkey, Bangladesh and China more than offsetting reductions for Chile and Angola. Higher exports for Russia, up 1.5 million tons, and Kazakhstan and Ukraine, each up 0.5 million tons, are partly offset by reductions for EU-27 and Canada, down 1.0 and 0.5 million tons, respectively. Abundant supplies of low-priced Black Sea wheat are expected to limit export opportunities for the traditional exporting countries including Canada, EU-27, and the United States. Global consumption is raised with increased wheat feeding expected in Russia, Israel, South Korea, and Morocco. Global ending stocks are projected 1.5 million tons higher as the increase in world output more than offsets lower carryin and the relatively small increase in consumption.

Coarse Grains
US feed grain supplies for 2009/10 are projected lower this month reflecting lower forecast corn production. Corn production is forecast 97 million bushels lower with a 1.3-bushel-per-acre reduction in the forecast yield. US corn exports are projected 50 million bushels lower reflecting the slow pace of sales and shipments in recent weeks and prospects for increased competition from larger Black Sea corn and wheat supplies. US corn ending stocks are projected down 47 million bushels. The 2009/10 marketing-year average farm price projection is raised 20 cents on each end of the range to $3.25 to $3.85 per bushel. Barley ending stocks are raised 5 million bushels mostly reflecting a drop in projected exports based on the slow pace of sales and shipments to date. Reflecting the higher expected corn price, marketing-year average farm prices are projected higher for sorghum, barley, and oats.

Global coarse grain supplies for 2009/10 are projected 2.0 million tons lower, as reduced corn beginning stocks and production are only partly offset by higher EU-27 mixed grain, barley, and oat production, and higher Kazakhstan barley production. Global corn beginning stocks for 2009/10 are lowered 0.9 million tons mostly reflecting higher 2008/09 feed use for EU-27 and higher food, seed, and industrial use for South Africa. Global corn production for 2009/10 is lowered 2.8 million tons with reduced production for the United States, Brazil, EU-27, Russia, Venezuela and Canada only partly offset by increases for South Africa and Ukraine. Brazil production is reduced 1.0 million tons on lower expected area. Production is lowered 0.4 million tons for EU-27 and 0.3 million tons each for Russia and Venezuela. Production is raised 1.0 million tons for South Africa as producer intentions indicate higher planted area and abundant early season rains support timely planting. Ukraine production is raised 1.0 million tons on higher reported yields.

World coarse grain trade is projected slightly lower for 2009/10 mostly reflecting reduced prospects for US corn and barley exports. Barley exports are also reduced for the EU-27, down 0.2 million tons. Partly offsetting is a 1.0-million-ton increase in Ukraine corn exports. Corn imports are lowered 0.3 million tons for Israel with higher expected wheat feeding. Barley imports are lowered 0.2 million tons for Jordan with lower expected feeding. Global coarse grain ending stocks are lower this month with a 3.8-million-ton reduction in world corn stocks. Much of the decrease is based on this month’s US changes, however, other major reductions in 2009/10 corn ending stocks are projected for EU-27, down 1.7 million tons, and Brazil, down 0.8 million tons. Barley ending stocks are projected higher for EU-27 and Kazakhstan, up 1.1 million tons and 0.4 million tons, respectively.

Oilseeds
US oilseed ending stocks for 2009/10 are projected at 8.8 million tons, up 1.1 million from last month as larger supplies are only partly offset by increased exports. Oilseed crush is almost unchanged as a small increase for soybeans is offset by a reduction for cottonseed. Total US oilseed production is projected at 97.8 million tons, up 1.7 million from last month due to higher soybean production. Soybean production is forecast at a record 3.319 billion bushels, up 69 million from last month. The soybean yield is projected at a record 43.3 bushels per acre, up 0.9 bushels from the previous estimate. Soybean exports are raised 20 million bushels to 1.325 billion due to increased supplies and increased global import demand, mainly for China, EU-27, and Russia. Soybean ending stocks are projected at 270 million bushels, up 40 million from last month.

Prices for soybeans and products are projected higher for 2009/10, reflecting higher corn and soybean futures prices. The US season-average soybean price range is projected at $8.20 to $10.20 per bushel, up 20 cents on both ends of the range. The soybean meal price is projected at $250 to $310 per short ton, up 5 dollars on both ends of the range. The soybean oil price range is projected at 33 to 37 cents per pound, up 1 cent on both ends of the range.

Global oilseed production for 2009/10 is projected at 428.9 million tons, up 3.6 million from last month. Increased soybean and rapeseed production are only partly offset by lower sunflowerseed, cottonseed, and peanut production. Global soybean production is projected higher with increases for the United States, Brazil, Argentina, Paraguay, and Uruguay. Brazil soybean production is projected at a record 63 million tons, up 1 million from last month due to an expected increased harvested area. Argentina soybean production is raised 0.5 million tons to 53 million due to increased area as producers shift additional area to soybeans from sunflowerseed. Argentina sunflowerseed production is reduced due to lower planted area resulting from dry conditions during the planting season. Global rapeseed production is projected higher as increased production for EU-27 is only partly offset by a reduction for Canada. Other changes include higher sunflowerseed production for Ukraine and EU-27, and lower cottonseed production for China.

Global oilseed stocks for 2009/10 are raised 3.1 million tons to 69.0 million. Increased soybean stocks for Brazil, the United States, and China account for most of the change. Rapeseed stocks for Canada, EU-27, and India are also increased. China soybean imports are raised for 2008/09 and 2009/10 to 41.1 million and 40.5 million tons, respectively. Soybean exports for 2009/10 are raised for Brazil and Argentina. Global vegetable oil stocks are projected 1 million tons higher due to increases in soybean oil stocks for Brazil, China, and India, and increased palm oil stocks for China and Malaysia.

Approved by the Secretary of Agriculture and the Chairperson of the World Agricultural Outlook Board, Gerald A. Bange, (202) 720-6030. This report was prepared by the Interagency Commodity Estimates Committees.

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Warning: More Drug Resistance in Zoonoses
EU - Better surveillance needed to fight spread of antimicrobial resistance in zoonotic infections, particularly Salmonella and Campylobacter, according to a group of health agencies.



The European Centre for Disease Prevention and Control (ECDC), the European Food Safety Authority (EFSA), the European Medicines Agency (EMEA) and the European Commission’s Scientific Committee on Emerging and Newly Identified Health Risks (SCENIHR) have published a joint scientific opinion on antimicrobial resistance (AMR) focused on infections transmitted to humans from animals and food (zoonoses).

The joint opinion concludes that bacterial resistance to antimicrobials has increased in recent years worldwide, making it more difficult to treat some human and animal infections. It says surveillance activities should be strengthened and the development of new antimicrobials and new strategies to combat the spread of resistance encouraged. Research is needed on other strategies to control infectious diseases in animals, such as vaccination programmes.

The opinion says there is specific concern about bacterial resistance to antibiotics used in the treatment of Salmonella and Campylobacter infections – the two most reported zoonotic infections in Europe, and points out which antibiotics are considered of high concern for their treatment. It says that although the use of antibiotics is considered the main factor in the development of bacterial resistance, the use of biocides (including disinfectants, antiseptics and preservatives) may also contribute to bacterial resistance.

Dominique L. Monnet, Senior Expert and Coordinator of the Antimicrobial Resistance and Healthcare-Associated Infections at ECDC, said: "Antibiotic resistance is one of the biggest threats to public health in the European Union and a priority area of work at ECDC. The major cause of antibiotic resistance in humans remains the use of antibiotics in human medicine. If the misuse and overuse of antibiotics continue, we will lose the means to treat serious infectious diseases."

The opinion on antimicrobial resistance in zoonotic infections highlights that globalisation of food trade and frequent travel to countries outside the EU make it difficult to compare resistance data from surveillance programmes at EU level and to assess the impact of those strains coming from outside the EU. It also adds that the differences in levels of antimicrobial resistance in the various EU countries make it difficult to have a single strategy to fight against this threat.

Professor Dan Collins, Chair of EFSA's Biological Hazards (BIOHAZ) Panel, said: "Resistance is caused by the ability of bacteria to undergo changes, given their increasing exposure to antimicrobials used in human and veterinary medicine. Most antimicrobial-resistant strains of zoonotic bacteria are found in the gastrointestinal tract of healthy food animals, particularly poultry, pigs and cattle."

Food-borne infections caused by these bacteria very often originate from contamination during slaughter of animals or food processing. The opinion says that at present there are no data available to demonstrate that the use of antibiotics in human medicine may also have an impact on the resistance of zoonotic bacteria.

The three EU agencies and the SCENIHR have worked together on this issue, sharing their scientific expertise and advising EU decision-makers on risks and making recommendations for action.

David Mackay, Head of Unit Veterinary Medicines and Product Data Management at the European Medicines Agency, said: "This exercise has been an example of how different institutions within the EU can successfully work together to tackle the issue of antimicrobial resistance, which currently represents a significant threat to human health."

The opinion on antimicrobial resistance in zoonotic infections was published ahead of European Antibiotic Awareness Day on 18 November, which focuses on resistance to antibiotics. The opinion confirms previous recommendations that prudent use of antimicrobials in animals should be strongly promoted and that veterinarians and farmers should be educated on strategies to minimise antimicrobial resistance. Other previous recommendations said antibiotics such as fluoroquinolones and cephalosporins should be reserved for treating conditions which respond poorly to other antimicrobials.

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 Two new feed plants get incentives in the Philippines
[19 November 2009] The Philippine Board of Investments have approved and granted incentives to two new feed manufacturing projects with a combined project cost of PHP 152 million (USD 3.25 million). Dan Way Processing Corp, a wholly-owned Filipino project, will put up a PHP 82.4 million (USD 1.76 million) feed manufacturing plant in Bulacan province with an annual production capacity of 30000 tonnes. The plant will be equipped with steel silos for storage, equipment for producing pellets and crumbles, and special feeds using local raw materials. The other project is by 557 Feather Meal Corp, a Filipino-American venture that will invest PHP 70.4 million (USD 1.76 million) for a rendering plant that will produce aqua feed using poultry waste like feathers, carcass trimmings, condemned carcasses and other internal organs. The plant, which will be operational in January 2010, will use raw materials supplied by San Miguel Foods Inc, which is also the sole buyer of the company’s feed produce, on a toll manufacturing basis.