USDA,update

 

The following GAIN reports were released on November 22, 2023. _______   Canada: Canada Proposes Streamlined Regulations for Food Additives and Compositional Standards Health Canada and the Canadian Food Inspection Agency have opened consultations on a comprehensive regulatory package. It is meant to modernize the development and update of regulations for food compositional standards, food additives, as well as microbiological criteria and official methods of analysis used to determine food adulteration. Comments are accepted until February 2, 2024.   Canada: Food Service - Hotel Restaurant Institutional Canada continues to be the largest export market for U.S. consumer-oriented products. In 2022, U.S. consumer-oriented exports to Canada reached $19.9 billion, representing 24 percent of the total value of U.S. consumer-oriented exports worldwide. As a mature market, Canada offers sophisticated distribution chains, warehousing options, and a logistics network for U.S. companies, ensuring shipments arrive efficiently. In 2022, food service sales grew to $76.6 billion. Canada's food service sector is competitive but does offer great opportunity for exporting food suppliers that commit to developing the market.   Chile: Market Impacts from the EU-Chile Modernization Agreement Chile and the European Union (EU) are finalizing an Advanced Framework Agreement (AFA) that includes recognition of 216 EU geographical indications (GIs) and commonly used names such as feta, gruyere, kölsch, and parmesan. This is one of the first times that an EU trade agreement includes such broad protections for commonly used names. In 2022, the EU was the third top supplier of cheese to Chile, after Argentina and the United States. Post anticipates market impacts once the AFA is implemented: importers will have fewer sources of product, the Chilean dairy industry will be limited in their ability to produce and potentially export products bearing European-origin names, and consumers will see higher prices due to lower supply and reduced market diversification.   Hungary: Avian Influenza Returns to Hungary  Although Hungary regained its avian influenza free status on July 28, 2023, the disease has returned. In November 2023, animal health authorities confirmed primary outbreaks of the H5N1 strain of highly pathogenic avian influenza (HPAI) in four counties. The epidemic is sweeping across Eastern Hungary. Control and quarantine measures are in place, but further cases are expected around the affected localities and in the neighboring counties as they are along stopover spots of migratory birds.   India: Cotton and Products Update FAS Mumbai forecasts marketing year (MY) 2023/24 India cotton production at 26 million 480 lb. bales on 12.7 million hectares area planted, unchanged from the previous forecast. Farmers in southern India have replaced 17 percent of last season’s cotton area to maize, paddy, and oilseeds to take advantage of higher price expectations. A slow pace of new crop arrivals is observed as seed cotton prices have fallen below the minimum support price and farmers await government procurement operations. Post forecasts MY 2023/24 mill consumption at 24 million 480 lb. bales, up two percent from the previous estimate, as low fiber and yarn prices spurn exports and lead to a marginal recovery in demand.   Sweden: Swedish Alcohol Purchasing Process - Overview of Systembolaget This report provides information on the purchase process of Sweden's alcohol monopoly Systembolaget, its different labeling and sustainability guidelines, as well as an analysis of the 2022 sales data per product group - wine, beer, liqueur, whiskey, cider, and mixed drinks.   Turkiye: Cotton and Products Update Turkiye’s cotton production in marketing year (MY) 2023/24 is forecast to decrease to 695,000 metric tons (MT; 3.19 million bales), since farmers chose to plant less cotton in response to decreasing cotton prices and rising input costs. Cotton farmers were unable to make adequate profits in MY 2022/23 to cover rising input costs. In MY 2023/24, Turkish cotton consumption is expected to increase to 1.55 million metric tons (MMT; 7.12 million bales). Cotton imports in MY 2023/24 are forecast to be 750,000 MT (3.45 million bales), with the United States maintaining its market share as the leading supplier. In October 2023, the Government of Turkiye (GoT) increased the customs tariffs for imported yarn and fabric, as well as imported ready-to-wear garments and home textiles.   Vietnam: Coffee Semi-annual MY 2023/24 coffee production is lowered 3.8 million bags to 27.5 million bags due to unfavorable weather conditions as a result of climate change and El Nino climate patterns. In addition, Post lowered MY 2022/23 coffee production to 27.2 million bags green bean equivalent (GBE) due to unfavorable weather conditions leading to low cherry survival rates and farmers shifting production to more profitable fruit trees. Post forecasts MY2023/24 coffee exports to be 25 million bags GBE based on a drop in stocks.   For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/. The following GAIN reports were released on November 21, 2023. _______ Bulgaria: Grain and Feed Market Update FAS/Sofia’s marketing year (MY) 2023/24 corn production estimate is lowered to 2.5 million metric tons (MMT) based on the harvest progress to date. The corn crop suffered from severe and prolonged summer drought and high heat which reduced yields considerably. Conversely, barley production is increased due to favorable climate conditions and higher area planted. Wheat exports in MY 2023/24 have been dynamic and already reached 3.0 MMT as of early November, triggered by extra large beginning stocks, good export demand, and prices allowing positive margins for farmers. MY 2024/25 fall planting of winter grains has been challenging due to an unusually dry and warm fall. Wheat planting is 26 percent behind as of mid-November, but it is believed that farmers will make efforts to plant the traditional 1.0 million hectares (HA).   Colombia: The United States Gains Market Access to Colombia for Bovine Meat and Bone Meal  In October 2023, the U.S. Department of Agriculture’s Plant and Animal Health Inspection Service and the Colombian Institute for Agriculture agreed on import requirements for U.S. bovine meat and bone meal (MBM) to Colombia. Colombia’s steady economy growth, increasing production of proteins, and growing demand for high quality pet food are creating new opportunities to increase exports of MBM products to the country.   Indonesia: Coffee Semi-annual Indonesia’s lower Robusta coffee production is expected to cut coffee bean exports by 35 percent to 5 million bags in 2023/24, which has already caused a surge in imports in the first half of the marketing year. Higher Robusta prices are expected to dampen domestic consumption.   Peru: Biofuels Annual Peruvian total ethanol production in 2023 is forecast at 220 million liters, increasing 8 percent compared to the previous year. Total ethanol consumption for 2023 is forecast at 285 million liters. Peru is forecast to produce 215 million liters of biodiesel in 2023. Biodiesel imports in 2023 are forecast at 190 million liters.   Taiwan: Taiwan Publishes Draft Amendment for Toxins in Food Levels On November 13, 2023, Taiwan notified the WTO of a new draft amendment for Sanitation Standards for Contaminants and Toxins in Food (G/SPS/N/TPKM/621). This report contains highlights from the draft as well as a link to the full notification. The expected implementation date is July 1, 2024. Affected food products include infant formula, nuts, oilseeds, and chocolate.   For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/.

The following GAIN reports were released on November 20, 2023.

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Australia: Dairy and Products Annual

Milk production for 2024 in Australia is forecast to increase by 0.6 percent to 8.50 million metric tons (MMT) after stabilizing in 2023 at an estimated 8.45 MMT from previous years of declining production. The forecast is amid an El Niño weather pattern in late 2023, likely to continue into 2024. The end to economic circumstances that encouraged dairy farmers’ diversification toward beef cattle production has strongly contributed to the stabilization of milk production. Factory use consumption of milk is forecast to increase to 5.847 MMT from an estimated 5.817 MMT in 2023, and fresh milk consumption is forecast to continue its gradual annual decline to 2.41 MMT. A new record cheese production of 445,000 metric tons is forecast for 2024, and the export of cheese is forecast to rise by 28 percent. The volume of butter, skim milk powder, and whole milk powder production are all forecast to decline moderately in 2024. However, exports for these three dairy commodities are also forecast to remain stable.

Austria: Agricultural Biotechnology Annual

While acceptance of innovative biotechnologies is gaining some traction within informed stakeholder groups, Austria continues to be one of the leading forces in Europe opposed to the use of agricultural biotechnology. Anti-biotech NGOs, farmer organizations, the food-processing sector, and the retail sector all campaign against genetically engineered agricultural and food products. Soybeans and soybean products for feed use are the only major genetically engineered products imported by Austria. The Austrian government strongly opposes the EU Commission’s proposal of the regulation of “new genomic techniques (NGTs)” to allow for easier market access for products deriving from “NGTs.”

 

Belgium: Biotechnology and Other New Production Technologies Annual

This report assesses the agricultural biotechnology sector in Belgium for plants, animals, and microorganisms. Belgium's stance on agricultural biotechnology differs between the regions of Wallonia and Flanders, with the latter being more receptive. The Flemish region houses the country's agricultural biotech hub, where a significant portion of biotechnology research and experimental field trials are conducted. Although Belgium does not commercially produce genetically engineered (GE) crops, its animal sector relies on imported GE commodities for animal feed. Belgium does not have an official position on the European Commission's proposal to regulate new genomic techniques. From January to June 2024, Belgium will hold the Presidency of the Council to the European Union.

 

Bulgaria: Agricultural Biotechnology Annual

The Government of Bulgaria (GOB) continues to oppose agricultural biotechnology. Non-governmental anti-biotech organizations, local activists, and Bulgaria’s organics industry actively spread nonscientific disinformation about biotechnology. Meanwhile, Bulgaria’s poultry, dairy, and livestock stakeholders continue to import biotech-derived feed ingredients.

 

Burma: Agricultural Biotechnology Annual

This report describes the status of Burma’s production and regulations for genetically engineered products and recent activities focused on agricultural biotechnology. Burma’s (also called Myanmar) National Biosafety Framework and Biosafety Guidelines have been pending approval by the Minister of Agriculture since before the 2021 coup. To date, the Burmese government has only approved genetically engineered cotton for cultivation under the National Seed Policy.

 

Caribbean Basin: Agricultural Biotechnology Annual

Over a dozen Caribbean countries are Parties to the Cartagena Protocol on Biosafety. With an aim toward meeting their obligations under this agreement, many have been working toward establishing their National Biosafety Frameworks for many years. To date none have completed this work and a de facto prohibition exists on the research and production of GE products. However, no significant barriers to trade of GE products used for food, feed, or processing currently exist in the region.

 

China: Sulfuryl Fluoride Allowed for Log Fumigation

The APHIS and FAS China offices have confirmed with the General Administration of Customs of the People’s Republic of China (GACC) Department of Animal Plant Quarantine (DAPQ) that sulfuryl fluoride is allowed for fumigation of U.S.-origin logs before export to China. This clarification confirms fumigation options available to U.S. exporters based on GACC Announcement No. 110 of 2021, titled Phytosanitary Requirements for Pine Wood from Countries with Pine Wood Nematode Presence. Logs that test positive for Pinewood Nematode remain ineligible for export to China.

 

Colombia: Agricultural Biotechnology Annual

While Colombia´s regulatory environment remains friendly toward the adoption of biotechnology-derived crops and products, congressional anti-biotechnology initiatives pose a threat to further acceptance, and risk undermining future investments to benefit consumers and the agricultural sector. In 2022, planted area of genetically engineered cotton showed a 62 percent increase as compared to 2021, and genetically engineered corn production decreased by 17 percent, but planting area remained the second-highest figure after the 2021 record.

 

Czech Republic: Agricultural Biotechnology Annual

There are no significant changes to the agricultural biotechnology situation in the Czech Republic in 2023. The country generally maintains a scientific approach towards biotechnology and became a vocal advocate for their adoption in the EU during its EU Council presidency. Czech farmers planted genetically engineered (GE) corn from 2005 to 2017. Cultivation ended as GE products became too difficult to market and sell on the European market. There are no bans on GE crops in the Czech Republic. Some companies based in the Czech Republic use microbial biotechnologies in their production process.

 

Haiti: Agricultural Biotechnology Annual

Agricultural biotechnology constitutes an opportunity for U.S. suppliers, as non-governmental and governmental organizations have encouraged its integration into the Haitian economy in recent years. Although it is a controversial issue among the Haitian community, Haiti depends heavily on imports from countries where the use of agricultural biotechnology is common. Currently, there is no policy against genetically engineered crops, animals, and microbial biotech-derived food.

 

Hungary: Agricultural Biotechnology Annual

Hungary is one of the strongest opponents of transgenic engineering. Maintaining the country’s GE-free status remains a government priority. However, Hungary’s scientific, research, and breeding institutions are speaking out in support of genome editing. In the case of an enabling legislative environment in the EU, the country would be open to adopting innovative, non-transgenic biotechnologies and their products, but only with strong guarantees: health and environmental risk assessments, and a mandatory labeling system.

 

India: Coffee Semi-annual

FAS Mumbai forecasts marketing year (MY) 2023/24 (October-September) India coffee production at 5.9 million 60-kilogram bags, two percent higher than the previous estimate. Dry conditions from October through December are expected to result in higher Arabica yields, with less incidence of berry droppings and damage. Farmgate prices of Arabica have fallen by more than 26 percent since June 2023 due to anticipation of higher-than-expected global supplies, while Robusta prices have remained firm owing to steady exports. Consequently, farmers may try to offload the limited Arabica stocks being held before the new crop arrivals begin. Post forecasts exports at 6.3 million 60-kilogram bags, unchanged from the previous estimate. Carryover stocks will remain limited due to higher Robusta exports.

 

India: The Rise of Electric Vehicles in India 

India’s Ministry of Heavy Industries and Ministry of Road Transport & Highways reduced the producer per-unit subsidy electric vehicles (EVs) from 40 percent to 15 percent of the manufacturer’s price. It created a momentary financial challenge to the EV manufacturers as the government reimbursement for manufacturing costs were reduced, leading to a slight increase in the unit cost of EVs for consumers. The decline in subsidy led to an initial drop in EV sales by 32 percent in June 2023. However, the Indian festive season from August to November coupled with the implementation of a low-cost EV model initiative by firms, helped to increase demand for EVs from August onwards. To continue to boost the production of EVs, a legislative committee has advocated for the extension of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) and Hybrid Vehicles program until March 31, 2027.

 

Italy: Agricultural Biotechnology Annual

This report describes production, trade, research, policy, and marketing issues of genetically engineered (GE) plants, animal products, and microbial biotechnology in Italy. Despite Italy’s opposition to GE products, the Italian Minister of Agriculture, Food Sovereignty, and Forestry, along with leading farmers’ associations (Coldiretti, Confagricoltura, and Cia), agri-food industry players, and scientists have come forward in favor of innovative biotechnologies, such as genome editing. On June 13, 2023, Italy authorized field trials of innovative biotechnologies for experimental and scientific purposes until December 31, 2024.

 

Mexico: Agricultural Biotechnology Annual

Mexico's biotechnology regulatory policy environment has become increasingly uncertain under the current administration. The government has not approved any applications for genetically engineered (GE) products for food and feed use since May 2018 and has not approved any permits for planting GE crops since 2019. The government has also denied or not provided a decision on 34 planting permit applications for GE cotton and denied one application for GE alfalfa. In February 2023, a new Corn Decree entered into force, replacing the December 2020 Corn Decree. The new Corn Decree imposes an immediate prohibition on the use of GE corn for “human consumption,” which the decree defines narrowly as corn used in Mexico’s masa and tortilla production. The uncertainty in the regulatory environment has made it difficult for businesses to invest in biotechnology in Mexico.

 

Pakistan: Agricultural Biotechnology Annual

The Department of Plant Protection (DPP) stopped imports of genetically engineered (GE) soybeans and canola in late October 2022. DPP said that importers needed an import license from the Ministry of Climate Change (MOCC). However, MOCC had no system to process import licenses for GE commodities destined for food, feed, or processing (FFP). Despite attempts to amend the National Biosafety Rules and Guidelines to create a system for importers to obtain a license, as of November 2023, the GE commodity import ban remains. Prior to the ban, Pakistan had been annually importing 2.5 to 3 million tons of GE oilseeds for FFP.

 

Senegal: Agricultural Biotechnology Annual

This is a regional report on West Africa that primarily covers Senegal, Burkina Faso, and Mali, but also provides brief overviews in certain sections for Niger, The Gambia, Guinea, Guinea-Bissau, and Mauritania. While legislative bodies in the FAS Dakar region are taking steps to allow the entry and commercialization of GE products, public perception of agricultural biotechnology tends to be distorted due to disinformation. Future market acceptance will depend on efforts to inform and educate the public about the safety and benefits of agricultural biotechnology.

 

Spain: Agricultural Biotechnology Annual

This report describes the agricultural biotechnology sector in Spain, covering production and trade, policy, and marketing aspects. It includes topics related to plant, animal, and microbial biotechnology. Spain is the EU’s largest grower of biotech corn and a major consumer of biotech feed ingredients.

 

Turkiye: Agricultural Biotechnology Annual

Turkey’s Biosafety Law, which went into effect in 2010, continues to threaten imports and imposes a heavy financial burden on the country’s agri-food sector. As of September 2023, there were only 36 events (corn and soy) that were approved for feed purposes. There are no events approved for food use due to public concerns about the technology. The most recent approval occurred last December when the Ministry of Agriculture & Forestry (MinAF) reauthorized a stacked corn event (NK603 X MON 810) and cancelled the single MON 810 event. To date, eight enzymes produced from GE Aspergillus oryzae have also been approved for feed and industrial use. In addition, one microbial mass (strengthened and inactivated GE Aspergillus oryzae) for feed purposes has been approved.

 

Vietnam: Beef Market Overview - Tariff Disadvantages Undercut US Opportunities in Growing Market for Imported Beef 

Vietnam is a growing market for beef and beef products, with demand driven by numerous factors including a growing population, economic growth, widening integration with global economies through free trade agreements, rising income per capita, and expanding modern retail and food service channels. Despite efforts to improve beef quality and production, local beef supply has yet to meet growing market demand, providing opportunities for imported beef. Global beef exports to Vietnam, excluding beef from India and Hong Kong, have grown by an average rate of 24 percent over the past 3 years, from $217 million in 2020 to $335 million in 2022. Tariff disadvantages remain a critical issue that has reduced the competitiveness of U.S. beef in the Vietnam market.

 

For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/.

The following GAIN reports were released on November 17, 2023.

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Brazil: Coffee Semi-annual

Post decreases the Brazilian coffee production for Marketing Year 2023/24 (July-June) to 66.3 million 60-kg bags, based on a projected decline in robusta/conilon production. Post forecasts arabica production at 44.9 million bags, a 12.8 percent increase over the previous season, due to an increase in planted area and higher yield. Robusta/conilon production is projected at 21.4 million bags, 1.4 percent lower than the previous estimate of 21.7 million bags and 6.1 percent lower in relation to the last season. Total coffee exports for 2023/24 (July-June) are estimated at 43.9 million 60-kg bags, green beans, down from the previous estimate of 45.4 million 60-kg bags, due to a slower than expected trade flow of arabica coffee at the beginning of this marketing year, motivated by less than attractive prices in stock markets. However, the 2023/24 exports are projected to be 22.3 percent higher than the MY 2022/23 exports.

 

China: Grain and Feed Update

Information in this report was current as of September 27, 2023. Post forecasts China's MY2023/24 grain feed and residual use to increase slightly and corn production also slightly higher due to a larger planted area and improved yields. Sources report there is active interest in alternative domestic and imported grains free from tariff rate quota (TRQ) requirements as a replacement for corn in feed rations. The production impact of the summer’s typhoons is limited. The forecast of milled rice production remains unchanged despite high temperatures and typhoon damage in some regions which was offset by increased precipitation in arid southern areas. For entire report, please go to "Grain and Feed Update_Beijing_China - People's Republic of_CH2020-0181".

 

Colombia: Coffee Semi-annual

In market year (MY) 2023/2024, Colombia's coffee production is expected to recover to 11.5 million bags green bean equivalent (GBE) given drier conditions and improved sunlight resulting from the El Niño phenomenon. Coffee production in the current MY is revised down to 10.7 million bags GBE because of excessive rainfall and lower fertilization rates. Coffee exports are estimated at 12 million bags GBE for MY 2023/2024 given anticipated higher yields. In comparison, to meet local demand, Colombia will import approximately 2.5 million bags GBE, primarily from Brazil due to higher inventories and price competitiveness.

 

El Salvador: FAIRS Export Certificate Report Annual

This report provides examples for the major export certificates and other documents required by the government of El Salvador for U.S. exports of food and agricultural products. Please note, El Salvador’s import requirements change frequently, and are often subject to discretionary decisions at the point of entry.

 

Indonesia: Government of Indonesia Opens Corn Imports to 500 Thousand Tons

The El Nino climate pattern is expected to reduce Indonesia's 2022/23 rice and corn production. Post estimates Indonesia's 2022/23 corn production to decline to 12.3 million metric tons (MMT) compared to the previous estimate of 12.9 MMT. Production shortages are expected to result in soaring corn prices. On October 11, 2023, the National Food Agency (NFA) authorized the government-owned National Logistics Agency (BULOG) to import a total of 500,000 metric tons of feed corn to soften the impact of higher commodity prices and ensure adequate supplies for small holder poultry farmers.

 

Thailand: Rice Price - Weekly

Export rice prices fell by 1-3 percent as the Thai baht weakened and new paddy rice crop entered the market.

 

For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/.