USDA, Foreign Agricultural Service,update

 

The following GAIN reports were released on March 6, 2022. _______   Brazil: Brazil Agriculture Seeks Remedies for Potential Fertilizer Disruptions Brazil is a powerhouse agricultural producer, ranking among the top three global exporters for a host of commodities. To support its massive agribusiness sector, Brazil relies on imported inputs, including fertilizers. Annually, Brazil imports over 80 percent of its total fertilizer needs. The Russian invasion of Ukraine has substantially elevated the risk of disruption to the global fertilizer trade. In Brazil, there is rising concern that growers may not be able to expand the crop planted area in the 2022/23 season. Without critical nutrients such as potash, Brazil will also see lower crop yields. In recent months, Brazil has engaged in international diplomacy, striking deals with Iran and Russia to maintain fertilizer flows. To reduce the sector's dependence on imports, the government has also developed a National Fertilizer Plan, though the implementation is expected to take decades.   China: Livestock and Products Semi-Annual In 2022, imports of breeding swine are estimated lower at 20,000 head and pork imports are estimated at 3.3 million metric tons (MMT). Domestic swine, breeding sows, and pork production are expected to exceed 2021 levels as producers increasingly compete for market share and morbidity associated with African Swine Fever (ASF) outbreaks, lowers. Consequently, and with weaker consumer demand in anticipation of a less robust economic outlook, domestic pork prices should remain low in 2022. Consumer demand for imported beef products and expanded exports of live cattle by South American countries will increase imports to 3.1 MMT and 375,000 head, respectively.   India: Oilseeds and Products Update India’s rapeseed and mustard production estimate for marketing year 2021/2022 (October-September) is revised upward to 10.8 million metric tons on account of significantly higher acreage at almost 9.2 million hectares, high domestic prices, and a good monsoon performance. Exports of rapeseed meal sank 66 percent between October 2021 through January 2022 due to lower crushing availability. Recently announced duty changes in palm oils will encourage domestic refineries to import crude palm oil and other edible oils as opposed to refined palm oil.   Mexico: Update on Process of NOM-187 - Products Derived from Wheat and Corn This report updates GAIN report number MX2022-0008 published January 10, 2022: Mexico to Update NOM-187 Regarding Some Products Derived from Wheat and Corn. The draft NOM-187 has been published in the Official Gazette and provides an additional 60-day public comment period. NOM-187 applies to both national and imported products. Public comments are due to the Government of Mexico (GOM) no later than April 18, 2022.   Philippines: CREATE to Extend Tariff and Tax Incentives to Source Agricultural Inputs The Philippines has two laws to provide tariff and tax exemptions that support the importation of raw materials and/or inputs for the benefit of local agricultural production. While a 1997 law, AFMA, has long facilitated duty-free imports for a select list of agricultural inputs, the more recent 2021 law, CREATE, has the promise to expand tariff and tax incentives to a priority list of agricultural sub-sectors.   Philippines: Philippine Avian Influenza Protection Program The Third Edition of the Philippine Department of Agriculture's Avian Influenza Protection Program (AIPP) Manual of Procedure was finalized in 2020. This manual provides guidance in preventing the entry of Avian Influenza (AI) in the Philippines, as well as disease response measures in the event of an incursion. This document also includes changes in definition of terms and the section on the recognition of AI-Free compartments or regions, as well the revisions in the coverage of quarantine and surveillance zones in case of a local detection of AI.   Philippines: Agricultural Fuel Subsidy Program Announced The Philippine Department of Agriculture (DA) will soon execute a $10 Million fuel subsidy program for farmers and fishers to reduce production costs (PhP500 Million). DOE earlier estimated total energy consumption in agriculture at 471.7 kTOE (kilo tons of oil equivalent), of which 227.6 kTOE was attributed to petroleum products (96 percent being diesel), 4.2 kTOE to Coco Methyl Ester (CME) biodiesel, and the remainder attributed to electricity. The National Biofuels Board's discussion on increasing inclusion rates of CME biodiesel to offset dependency on imported oil and petroleum fuels remain on hold.   Portugal: Food Processing Ingredients In 2021, Portugal imported $244 million worth of agricultural, fish, and forestry products from the United States. Outside the European Union Member States, the United States was the third main origin of Portuguese agricultural and related imports. Despite the pandemic and other trade related challenges, the total value of U.S. exports of agricultural and related products to Portugal remained stable in 2021 compared to the previous year. The external sector is projected to have a positive net contribution to growth in 2022, reflecting the recovery in tourism, although it is dependent on the evolution of the COVID situation. This report provides guidance to U.S. companies interested in exporting food products to Portugal including an overview of the country's economic situation, market structure, and export requirements.   Spain: Food Processing Ingredients In 2021, Spain imported $1.7 billion worth of agricultural, seafood, and forest products from the United States. The year 2021 ended with a robust economic growth rate and good employment figures. Adversely, 2022 began with economic uncertainties brought by the impact of the Omicron wave, although some experts expect the economy to grow faster again from the second quarter onwards. According to the latest European Union economic forecast, Spain’s economic growth is forecast at 5.6 percent in 2022 and 4.4 percent in 2023. Having one of the most competitive food processing industries in Europe, Spain’s demand for ingredients continues to increase, such as tree nuts, distilled spirits, pulses, and food preparations. The post-pandemic environment may also offer new opportunities for ingredients.   Taiwan: New Consumers Embrace Plant-based Trends in Taiwan  As the world’s third largest vegetarian market with an increasing flexitarian population, Taiwan bodes well for the ingredients that address low fat, high fiber, and plant-based protein. The plant-based market in Taiwan is valued at US$22 billion, attracting numerous traditional food manufacturers to rev up new food product developments. It provides tremendous opportunities to the U.S. food and ingredients that resonate with this trendy lifestyle, including not just fresh fruit and vegetables, but also dried beans, peas, lentils, tree nuts, soy flour, and many more.   Thailand: Rice Price - Weekly Rice export prices decreased 2-3 percent due to the weakening of the Thai baht and new supplies of MY2021/22 off-season rice entering the market.   Turkey: Oilseeds and Products Annual Turkey’s production of major oilseeds – sunflower seeds, cottonseeds, and soybeans – in MY 2022/23 is projected to rebound from the previous year as strong prices are expected to spur increased plantings. Notwithstanding these forecasted increases in production, Turkey is expected to continue its heavy reliance on imported oilseeds and meal. Meal and oil consumption is expected to increase year-over-year as Turkey’s economic situation stabilizes. Meanwhile, the government continues its efforts to combat inflation, such as eliminating the import duty and reducing the VAT on sunflower oil, which is an important household staple.   For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/. This email was sent to politikimx@gmail.com using GovDelivery Communications Cloud on behalf of: USDA Foreign Agricultural Service · 1400 Independence Avenue, SW · Washington, DC 20250