GAIN reports

 

The following GAIN reports were released on October 22, 2024. _______   European Union: Dairy and Products Annual EU milk production in 2025 is forecast to decline marginally to 149.4 million metric tons (MMT), from an estimated 149.6 MMT in 2024, as a result of declining cow numbers, tight dairy farmer margins, environmental regulations, and disease outbreaks. Lower milk production is expected to be only partially offset by lower expected fluid milk consumption, and as a result factory use consumption is also forecast to slightly decrease in 2025. This is requiring dairy processors to carefully decide for which products they will use the available milk. Cheese production is forecast to remain the primary output goal of the EU dairy processing industry, supported by solid domestic consumption and continued export demand. EU27 cheese production in 2025 is forecast to reach 10.8 MMT, up by 0.6 percent from 2024. This comes at the expense of the production of butter, non-fat dry milk (NFDM), and whole milk powder (WMP).   Hong Kong: Hong Kong Lowers Liquor Tax in Boost to Distilled Spirits Trade On October 16 the Hong Kong Government (HKG) announced a significant reduction in the duty on imported alcoholic beverages with an alcohol content above 30 percent by volume. The new policy reduces the duty from a flat 100 percent tax to a tiered duty in which the initial value up to HKD $200 ($25.64) per liter remains at 100 percent, while the duty on value above HKD $200 ($25.64) per liter is reduced to 10 percent. The reduction was included in the HKG’s annual policy address, which focused on measures to spur economic activity in the region, particularly as it relates to investment and tourism. The lower duty is expected to support greater consumption of distilled spirits and is particularly beneficial to premium brands.   Hungary: Avian Influenza Returns to Hungary Although Hungary regained its avian influenza-free status on July 3, 2024, the disease has returned. In October 2024, animal health authorities confirmed primary outbreaks of the H5N1 strain of highly pathogenic avian influenza (HPAI) in five counties. The epidemic is sweeping across Eastern Hungary and it also appeared in the Transdanubian region. 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.   Mexico: Dairy and Products Annual Mexico’s dairy market is forecast to expand in 2025. Higher milk and dairy ingredient availability are expected to increase domestic cheese and butter production. Enhanced minimum wages and social support programs, combined with higher dairy product use in the processing sectors are expected to increase consumption. Cheese, butter, and milk powder imports are forecast to increase to supplement domestic production.   Mexico: FAIRS Export Certificate Report Annual The competent Mexican authorities which regulate food and agricultural imports and/or require official U.S. export certificates include the Secretariat of Agriculture (SADER), Secretariat of Health (SALUD), Ministry of Environment and Natural Resources (SEMARNAT), and the Secretariat of the Treasury and Public Credit (HACIENDA) No significant changes occurred vis-à-vis Mexican import standards and regulations in 2023.   South Africa: South Africa Opens Market for United States Porcine Semen Porcine semen is now eligible to be exported to South Africa from the United States. This opens a growing market where U.S. exporters can now compete with genetics from Netherlands, Denmark, Canada and Ireland. The pig breeds that are currently found in South Africa include Landrace, Large white, Chester white, Duroc, Hampshire, Large black, Kolbroek and Pietran. In 2023, South Africa imported $166,000 in porcine semen.   Vietnam: Vietnam Issues Decree Revising and Amending Regulation of Timber Legality Assurance System This report provides an unofficial translation of Vietnam's Government Decree 120/2024, issued on September 30, 2024. This decree revises and amends certain articles in Decree 102/2020, which regulates the Vietnam Timber Legality Assurance System (VNTLAS). Decree 120/2024 establishes regulations for importing and exporting timber based on a risk-based approach and will take effect on November 15, 2024. .     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 October 21, 2024.

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Dominican Republic: Proposed Tax Reform Likely to Have a Negative Impact over US Agricultural Exports to the Dominican Republic

On October 7, 2024, the Government of the Dominican Republic announced a proposed a tax reform bill that could have significant implications for U.S. agricultural exports, particularly in the pork, beef, and beverage sectors. The proposal has sparked considerable public opposition and protests. Key changes include a shift to an 18 percent Value Added Tax (VAT) on most consumer-oriented products and selective taxes on alcoholic beverages will increase, leading to an estimated 17 percent rise in retail prices, while a new tax on “sugary” non-alcoholic beverages could raise prices by 11 percent.

 

Saudi Arabia: Grain and Feed Semi-Annual

Total Saudi wheat imports for 2024/25 are forecast to reach 4.25 MMT, an increase of 2 percent over marketing year (MY) 2023/24. Saudi barley imports for MY2024/25 are projected to increase by 4 percent to 2 MMT. Saudi MY2024/25 total corn imports are projected to decline by 5 percent to 4.5 MMT from a record import level of 4.74 MMT recorded in MY2023/24. U.S. rice exports to Saudi Arabia since January through August 2024 reached 66,683 MT, an increase of 22 percent compared 54,491 MT imported in the same period last year. There were no significant changes to the Saudi rice trade since Post's March 2024 report.

 

Vietnam: Grain and Feed Quarterly

Growth in the agricultural sector slowed in the first nine months of 2024 due to extreme weather, particularly Typhoon Yagi, which severely affected crop cultivation and livestock farming. However, the livestock and aquaculture sectors continue to grow due to economic recovery and high export demand which has led to higher demand for feed. With global corn and wheat prices remaining low, Vietnam has increased imports of feed ingredients. Vietnam importers are looking for lower cost supplies and diversifying sources of feed ingredients. Rice production area is declining due to shifts to other farm activities, urbanization, and climate change impacts. Changes in import-export policies in various nations, along with the Government's new policy on rice land, are expected to affect rice production, trade, and consumption.

 

 

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

The following GAIN report was released on October 19, 2024.

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Brazil: Brazil's Foreign Trade Chamber Rejects the Request to Remove Ethanol Import Tariff 

On October 17, 2024, the Tariff Changes Committee (CAT) of the Chamber of Foreign Trade (Camex) rejected the request made by the Brazilian Association of Fuel Importers (ABICOM) and the U.S. Grains Council to remove the 18 percent tariff on ethanol imports to Brazil. This is the second time CAMEX has denied a request to reduce the ethanol tariff since its implementation in February 2023.

 

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 October 18, 2024.

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Brazil: Brazilian Ministry of Agriculture and Livestock Announces Changes to Secretariat of Trade and International Affairs

On Friday, October 4th the Brazilian Ministry of Agriculture and Livestock (MAPA) announced the departure of Roberto Perosa, the former Secretary of Trade and International Affairs. Luis Rua, former Director of Markets for the Brazilian Association of Animal Protein will succeed Mr. Perosa.

 

China: New and Renewed Biosafety Certificates Issued - October 2024 

On October 11, 2024, the Ministry of Agriculture and Rural Affairs (MARA) announced the issuance of new and renewed biosafety certificates for genetically engineered (GE) events. The announcement includes three renewed biosafety certificates issued for GE crops approved for import as processing materials, one renewed and one new biosafety certificates issued for GE crops approved for domestic cultivation and processing, 14 renewed and four new biosafety certificates for genetically modified microorganisms (GMMs) for animal use, and 152 renewed biosafety certificates for GE cotton for domestic cultivation and processing.

 

El Salvador: FAIRS Country Report Annual

Since August 7, 2024, the Superintendence for Sanitary Regulation has been responsible for food and beverage product registration in El Salvador. The Consumer Protection Law is enforced by the Consumer Protection Agency (DDC). Food safety norms are becoming stricter, sometimes leading to the creation of non-tariff barriers.

 

El Salvador: FAIRS Export Certificate Report Annual

This report provides examples of the significant export certificates and other documents required by the government of El Salvador for U.S. exports of food and agricultural products. Please note that El Salvador’s import requirements change frequently and are often subject to discretionary decisions at entry. Since August 7, 2024, the Superintendence for Sanitary Regulation has been responsible for food and beverage product registration in El Salvador.

 

India: Coffee Semi-annual

FAS Mumbai forecasts marketing year (MY) 2024/25 coffee production (Oct/Sep) at 6.2 million 60-kilogram bags, four percent higher than the previous forecast due to plentiful southwest monsoon rains that will improve Robusta crop yields. However, production of the rainfed Arabica crop is expected to be negatively impacted due to excess moisture and higher temperatures. Domestic consumption is forecast to rise by 14 percent to 1.5 million 60-kilogram bags, driven by thriving demand for instant coffee, which is likely to limit carryover stocks.

 

Indonesia: Indonesia Grants Two-Year Extension for Mandatory Halal Certification for Food and Beverage Products with Caveats

On October 18, 2024, the Government of Indonesia issued Government Regulation No. 42/2024, which granted an extension until, “no later than October 17, 2026” for imported food and beverage products to come into compliance with Indonesia’s mandatory halal certification requirements. The specific length of extension which will be afforded to U.S. food and beverage products is not yet known. However, today’s action allows U.S. food and beverages (except meat and meat products) to continue to be sold in Indonesia without halal certification. FAS Jakarta will seek to clarify multiple aspects of the new regulation and provide updates accordingly.

 

Japan: 263rd Japan Food Safety Group

The Consumer Affairs Agency (CAA) of Japan proposed two sets of revisions. One is for Japan’s maximum residue levels for seven agricultural chemicals (Acrinathrin, Dazomet, Metam and Methyl isothiocyanate, Flutianil, Fosthiazate, Inpyrfluxam, Spirotetramat, Sulfoxaflor, and Dibutylhydroxytoluene) for various agricultural commodities. The second is for the CAA's proposal to eliminate 32 food additives from Japan's "List of Existing Food Additives." Interested U.S. parties should submit their comments to PlantDivision@usda.gov for plant products, TFAA.FAS.AnimalDivision@usda.gov for animal products, and PPTRD@usda.gov for processed products by October 28, 2024. The CAA will also notify these proposed revisions to the World Trade Organization.

 

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.

 

Thailand: Rice Price - Weekly

Rice export prices further dropped 3-4 percent from the previous week, except for fragrant rice prices.

 

 

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 October 17, 2024.

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Brazil: The United States and Brazil Cheer 200 Years of Friendship with Bicentennial Beer 

In celebration of 200 years of diplomatic relations between Brazil and the United States, the U.S. Embassy and Consulates in Brazil launched the “Bicentennial Beer”. Made by a Brazilian brewery and using 100% U.S. hops, this beer is a mouthwatering blend of both countries’ unique flavors. It harmonizes the pine-scented Coast hops with an infusion of cambuci (cahm-boo-chee), a fruit native to Brazil’s Atlantic Forest, adding notes of sweet citrus. This winning recipe was created by Tábuas Brewery, from Campinas, Sao Paulo, which took first place in a competition held by USA HOPS and the United States Department of Agriculture (USDA). The Bicentennial Beer was launched at an event in Sao Paulo on May 20th, 2024 and is available at the brewery as well as special events.

 

China: Nineteen National Food Safety Standards Open for Comments in China

On October 8, 2024, the People's Republic of China Food Safety Standards Monitoring and Evaluation Department of the National Health Commission (NHC) released a letter soliciting public comments on nineteen draft National Food Safety Standards. This report contains an unofficial translation of the letter and the list of draft standards. The announcement includes both new and revised national food safety standards covering the general rules for spices, limits for contaminants in foods, sterilized milk, food additives, water and fat content determination in foods, and testing of migration of chemicals in food contact materials and products. Stakeholders should conduct their own review of the regulation. Based on past experience, the PRC often notifies these texts to the WTO after the domestic comment period ends.

 

Portugal: Retail Foods 2024

In 2023, Portuguese imports of agriculture, fish and forest products from the United States reached $294 million, two percent higher than previous year. High inflation and a sharp rise in the cost of living, including increased food prices, led to a reduction in purchasing power and a greater demand for basic products in 2023. This trend continues in 2024, with consumers looking for cheaper products while still concerned about the quality of the products they buy. This continues to fuel demand for private label products, increasingly seen as an option that offers good value for money. Consumers are also becoming more trusting of the quality of private label products.

 

 

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

REMINDER: USDA Recruiting Exporters for February Trade Mission to Thailand

WASHINGTON, Oct. 15, 2024 – The U.S. Department of Agriculture’s Foreign Agricultural Service will host its first-ever trade mission to Bangkok, Thailand, Feb. 3-6, 2025. Current and potential U.S. exporters interested in participating should apply for consideration by Oct. 29.

“This mission represents an important opportunity for our farmers, ranchers, producers and agribusinesses to connect with potential partners from both Thailand and Burma,” said FAS Administrator Daniel B. Whitley. “Consumers in these markets are ready to stock their pantries with the world-class, high-quality food and farm products offered by the U.S. exporters that join us in February.”

While in Bangkok, U.S. agribusiness representatives will take part in business-to-business meetings with potential importers from both Thailand and Burma and will learn about local and regional market conditions through site visits and in-depth market briefings by FAS staff and other regional trade experts.

The United States was the fifth-largest supplier of agricultural products to Thailand in 2023, with $1.2 billion in exports. The top U.S. exports were bulk commodities used for feed and food manufacturing, but strong opportunities exist for consumer-oriented products as well. Thailand boasts the fourth-highest per capita income in the Association of Southeast Asian Nations and real GDP growth is forecast at 2.6 percent in 2024, compared to 1.9 percent in 2022 A population of 70 million and an expanding middle class are driving demand for imported products. 

U.S. exporters have opportunities in many sectors in Thailand, including dairy products, food preparations, seafood, tree nuts, fresh fruits, chocolate and cocoa, beef, wine, distilled spirits, hops, beer and food ingredients. In Burma opportunities exist for food preparations, dairy products such as cheese and whey, processed potatoes, fresh fruits, chocolate and cocoa, condiments and sauces, packaged foods, non-alcoholic beverages, wine, distilled spirits and seafood products.

To learn more about the trade mission and to apply to take part, visit: https://fas.usda.gov/topics/trade-missions/thailand-february-2025.

In addition to the Thailand trade mission, USDA intends to lead missions to Cote d’Ivoire, the Dominican Republic Guatemala, Hong Kong, Mexico and Peru in 2025. Watch https://fas.usda.gov/topics/trade-missions for details.

 

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

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