USDA, Foreign Agricultural Service:GAIN Reports from April 1, 2022

 

The following GAIN reports were released on April 1, 2022. _______   Canada: Livestock and Products Semi-Annual The ongoing contraction of the Canadian cattle herd is expected to continue in 2022. Canadian live cattle exports are forecast to decline on a smaller calf crop. High feed costs and limited availability will see live exports outpace 2021 through the first half of 2022. Imports of U.S. feeder cattle will decline in 2022 following five years of record imports. Feed availability in Western Canada and competition for feeder animals due to contraction in the U.S. cattle herd will drive this trend. Following significant processing disruptions due to labor issues in 2021, the Canadian swine sector will see slaughter levels recover somewhat in 2022. However, closure of the slaughter line at a Quebec facility will result in increased exports to the United States as market ready hogs in Ontario and Quebec are displaced. Disease impacts will see a slightly smaller pig crop in 2022 amidst higher losses. The United States will remain the top trade partner for both imports and exports of beef and pork.   Costa Rica: A Best Practices Guide for Facility Registration U.S. dairy and seafood export volumes to Costa Rica hit new record highs in 2021, but access to this growing Central American market requires U.S. production facility as well as product registrations. The following guide provides insight into the registration process and tips to avoid lengthy delays.   El Salvador: El Salvador lowers tariffs and streamlines import procedures through March 2023 This report provides initial analysis and a courtesy translation of El Salvador’s Transitory Law to Combat Price Inflation in Basic Products, published March 11, 2022, with an import duties comparison added for reference. The law reduces import tariffs for a wide range of food and agricultural products and inputs and streamlines import procedures. The Salvadoran government's stated goal is to reduce costs for imported food and agricultural products. The temporary law will be in effect until March 31, 2023.   European Union: EU Early Alert - Pesticide Review - March 2022 The European Union (EU) follows a complex, rolling system of review for active ingredients and Maximum Residue Levels (MRLs) in food. For agricultural inputs, U.S. farmers must know early in the process of review to prevent or mitigate the loss of, and/or access to, chemical inputs. The information in this document provides interested stakeholders with advance notice of those active ingredients under review, highlighting those substances undergoing new restrictions or may not be renewed. This is a quarterly update from March 2022 and includes a link to the consolidated version as well.   Greece: Cotton and Products Annual Greece’s MY 2021/22 cotton production is estimated at 1.35 million 480 lb. bales, down 3.6 percent from the previous season due to a decrease in area planted. Greece is a major cotton exporter. Turkey was the main destination in MY 2020/21, representing 50.1 percent of total exports.   India: Opportunities in India to Highlight American Wines and Craft Distilled Spirits at Upcoming Trade Shows FAS Mumbai (Post) wishes to bring to the attention of U.S. exporters of alcoholic beverages the possibility of participating in some of India’s upcoming key wine and distilled spirits tradeshows in 2022 – Brews and Spirits Expo 2022 (July 6-7), VIN-Expo 2022 (August 18-20), and ProWine 2022 (October 17-18). India’s alcoholic beverage sector, with a value of $35 billion, is the world’s third largest. FAS Mumbai will support those U.S. companies interested in participating at these shows. Post can facilitate introductions and provide additional details. U.S. exporters are always encouraged to conduct their own research to verify costs, obligations, and logistics prior to registration.   Indonesia: Updated Requirements for Indonesia's Electronic Prior Notice System The Indonesian Agricultural Quarantine Agency (IAQA) has updated the Fresh Food of Plant Origin (FFPO) requirements under its Prior Notice system. This report details the updated requirements, which will enter into force on May 10, 2022.   Indonesia: Food Processing Ingredients Indonesia currently imports 60 percent of the raw materials needed for its growing food processing industry. In 2021, exports of U.S. agricultural products to Indonesia increased by nine percent largely due to higher demand for soybean, beef, and corn. Top U.S. agricultural exports include soybeans, feeds and fodders, cotton, dairy, corn, wheat, fresh fruits, and beef and beef products.   Malaysia: Food Processing Ingredients The Malaysian food manufacturing and processing industry is an important component of the country’s economic recovery and growth. This sector includes several multinational corporation facilities as well as a range of local company operations. The main products manufactured include beverages, canned seafood, canned fruits, canned vegetables, confectionary, dairy products, noodles, and bakery products. Top prospective U.S. food processing ingredient exports for the Malaysia market include dairy, frozen potatoes, tree nuts, and processed fruits.   Philippines: Highly Pathogenic Avian Influenza Import Suspensions In 2016, USDA’s Animal and Plant Health Inspection Service (APHIS) and the Philippine Department of Agriculture, Bureau of Animal Industry (DA-BAI) agreed on a county-based format for managing trade restrictions due to detections of Highly Pathogenic Avian Influenza (HPAI) in the United States. This agreement limits the temporary export bans to the county level but allows for an escalation in scope to state-wide restrictions should three or more counties have confirmed detections in commercial poultry flocks.   Singapore: Food Processing Ingredients Most raw materials for food processing are imported into Singapore due to its limited land, natural resources, livestock, and agricultural production. Singapore imported $680 million of U.S. processed food products in 2021. The Singapore food processing industry’s main products include flavorings, sauces, ready-to-eat meats, noodles, deli meat, sausage, confectionary, chocolates, snacks, and beverages (including beer). Top prospective U.S. food processing ingredient products for the Singapore market include animal fats, dairy, vegetable oils, processed vegetables, tree nuts, and beef products.   South Korea: Food and Agricultural Import Regulations and Standards Country Report This report outlines the specific requirements for food and agricultural product imports into the Republic of South Korea. Updates to the 2022 FAIRS Report are included in Sections V, VI, VII and Appendix II.   South Korea: Food and Agricultural Import Regulations and Standards Export Certificate Report This report includes technical information and certificate requirements for food and agricultural product exports to the Republic of South Korea.   Spain: Cotton and Products Annual The drought in Andalucía is anticipated to drive down area planted to cotton in Spain in MY2022/23. However, cotton crop area is highly inelastic given the few alternative crops available, and the fact that a significant part of the CAP payment to cotton continues to be linked to production partially offsets the potential area reduction. However, a steeper decline in cotton production is projected as irrigation water limitations will push yields down.   Thailand: Rice Price - Weekly Rice export prices decreased 4-5 percent due to the weakening of the Thai baht.   Vietnam: Oilseeds and Products Annual As Vietnam looks to rebound from the COVID-19 pandemic through economic recovery packages and loosening of restrictions, total animal feed demand is forecast to increase to meet animal production demands. Soybean meal consumption is forecast to increase due to projected higher total demand feed in both MY2021/22 and MY2022/23. Soybean imports are forecast to increase, driven by both demand for crush and food consumption. The following GAIN reports were released on April 4, 2022. _______   Australia: Australia and India Sign Economic Deal  Australia and India have signed a new trade agreement, the Australia-India Economic Cooperation and Trade Agreement (AI ECTA). More than 85 per cent of Australian goods exports will have tariffs eliminated. Along with this agreement, Australia and India have agreed to promote agricultural trade and will work toward concluding an enhanced agricultural Memorandum of Understanding (MoU).   Australia: Oilseeds and Products Annual Australian oilseed production, dominated by canola, is expected to be strong again in marketing year (MY) 2022/23, after big crops in MY 2021/22. Canola production is forecast in MY 2022/23 at 4.7 million metric tons (MMT), down from the record-busting crop estimated at 6.35 MMT in MY 2021/22, but if realized would still be the second largest crop in history. Canola yields are expected to decline in the forecast year after setting a record in the previous year, in part due to the high price and tight supply of fertilizers. Canola exports are forecast at 3.6 MMT in MY 2022/23, down from the previous year but still among the highest historical export levels. Olive and olive oil production is forecast to increase in MY 2022/23, mainly as a result of a natural biennial affect in yield after a low previous crop. Cottonseed production and exports are forecast to rise to near records in MY 2022/23 after further improvement in irrigation water reserves.   China: Interpretive Guidance on Pine Wood Nematode Requirements On March 28, the General Administration of Customs of the People's Republic of China (GACC) published a Pine Wood Nematode (PWN) Port Quarantine Guidelines policy interpretation document. The document provides additional information on the implementation of GACC Announcement No. 110 of 2021, titled Phytosanitary Requirements for Pine Wood from Countries with Pine Wood Nematode Presence. This report provides an unofficial translation of the policy interpretation document.   Costa Rica: Awaiting Regulations for Medicinal Cannabis and Industrial Hemp  After more than three years of legislative effort, Costa Rica has legalized hemp production and commercialization as well as cannabis for medicinal and therapeutic purposes. The Government’s commitment to publish implementing regulations – including those related to import and export of value-added products – by May 8, appears unlikely to be reached.   India: India's FSSAI Publishes Guidance Document and New Standard Operating Procedures Setting Maximum Residue Limits for Pesticides in Agricultural Commodities and Products On March 16, 2022, the Food Safety and Standards Authority of India (FSSAI) published a guidance document and new standard operating procedures setting maximum residue limits for pesticides in agricultural commodities and products. The commodities and products covered include: (a) feeds and fodder, (b) milk and milk products, and (c) meat and meat products.   India: India's FSSAI Issues Guidance Document on Trans Fats - Urges Food Business Operators to Use Trans Fat-Free Logo On March 3, 2022, the Food Safety and Standards Authority of India (FSSAI) published a guidance document on the elimination of trans fats. The FSSAI document advises food manufacturers to test their products for trans-fats. If the product contains no more than 0.2 grams of trans fats per 100 grams of food, use of a trans fat-free logo is permissible on the food product's label and in retail outlets.   Japan: COOL for Main Ingredient Requirements Now in Force On April 1, 2022, processed food manufactures in Japan must be in compliance with new country of origin labeling (COOL) requirements. The new rule requires Japanese food manufacturers to identify on the label of the product the country(ies) where the main ingredient, by weight, was harvested or produced. This requirement applies only to Japanese food processors and manufactures. Imported processed foods are exempt (only the country of manufacture of the finished product will continue to be required). Japanese importers bear sole responsibility for the development of labels compliant with Japanese food labeling regulations.   Netherlands: Food Processing Ingredients The turnover of the Dutch food processing industry for 2021 is forecast at $88 billion. Food companies that traditionally sell to HRI-foodservice outlets saw sales drop by roughly one-third due to the global pandemic. The beverage sector suffered a lot from the closure of clubs, bars, and restaurants. Last year was also the start of a significant increase in various cost components, ranging from agricultural raw materials to packaging materials, transport (containers), and energy. Additional challenges include the situation in Ukraine which has contributed to some supply chain disruptions and price increases for some raw materials. Product replacement and reformulation might be possible, where necessary, but requires testing and product label adjustments. Other challenges include trade with the United Kingdom becoming more complicated due to Brexit and the imminent introduction of a deposit levy on cans.   Nicaragua: Oilseeds and Products Annual FAS/Managua expects 2022 peanut and oil production to remain flat from the previous year, with the vast majority of peanuts and virtually all peanut oil exported overseas. However, rising input prices, high tax rates, and tighter access to credit following sham elections in late 2021 could result in less productive lands being withdrawn from production in 2022.   Sri Lanka: Sri Lanka Invites WTO Members to Comment on Draft Amendment Standards - Number 1- for Instant Noodles On March 15, 2022, the Sri Lanka Standards Institution (SLSI) notified draft amendment standards (number 1) for Sri Lanka Standards (SLS) 1534:2016 for instant noodles to the World Trade Organization (WTO). WTO members are invited to submit comments on notification G/TBT/N/LKA/50. The comment period expires on May 15, 2022.   Turkey: Cotton and Products Annual Turkey’s cotton production in marketing year (MY) 2022/23 is forecast to increase to 925,000 metric tons (MT) (4.2 million bales) based on the assumption that farmers will plant more cotton in response to strong cotton prices. Growing demand for textiles and apparel is expected to push MY 2022/23 cotton consumption higher to 1.9 million MT (8.7 million bales). There is growing interest in traceable, sustainable cotton. Cotton imports for this same period are forecast at 1.15 million MT (5.3 million bales), with the United States projected as one of the two leading suppliers for the year. U.S. cotton faces continued competition from Brazilian cotton.     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