Commodity prices; Freight rates ease; World maize consumption up 5%

Commodity prices

The Indian corn prices are little down from last week. Average prices on Dec 30, 2004 were reported at Rs.5055 per MT ($113.6) at the market yards. Last year at the end of the year the average price was at Rs.4800 per MT ($106) at the market yard, a 5.3 percent increase over last year.

Prices in US are a little higher than reported for last week. Corn for Jan and March 2005 delivery is reported at $99 & $98.5 per MT (FOB US Gulf). Sorghum prices were reported at $100 - $101 per MT (FOB US Gulf) for Jan & March delivery. Barley prices are reported at $110 per MT (FOB PNW) for Jan to March deliveries.

Corn co-products prices are lower than expected. Corn Gluten Feed is reported to trade at $ 88 per MT for deliveries in Jan – March 2005 (FOB US Gulf), while Corn Gluten Meal (60 percent protein) was reported at $ 297 per MT (FOB US Gulf). The Soy meal prices (48 percent protein) were reported to be much lower than expected at $187 per MT (FOB US Gulf). Prices in India are reported at $195 per MT (at the origin – Central India – Madhya Pradesh). Last sales were reported at $240 - 245 CNF South East Asia. The higher local prices are a setback for Indian exports, but this has helped in increasing utilization of Soy meal in the domestic poultry industry.

Freight rates ease

Reports from Japan and US suggest easing of freight rates. Spot ocean freight rates are down from their November highs as China and other countries, which were buying raw materials, have suddenly stopped purchases. The rate for mid-size ships for transportation of coal and grain shipped from the US Gulf to Japan has declined slightly more than 15 percent.

On the world-scale schedule index -- a gauge for determining spot prices for crude oil tankers -- the rate for shipping from the Middle East to Japan has plunged to 135 -- down 57 pct from the a 31-year high of 315 recorded just a month ago. The rate for the Mideast-US route has dropped to 130 from 240 early last month.

The fall could be due to many factors, the report suggests. US oil refiners have cut their purchases as inventories increase. Also China and Europe is seen to have completed their purchases on iron ore and coal, which has helped ease the ocean freight market.

Availability of more containers in the market is seen as the reason for a reduction in container rates as well, which will further help in the reduction of freight rates.

World maize consumption up 5%, prices remain low on abundant US supplies
(From Grainnet.com)

World maize consumption in 2004/05 is now estimated at 678 million metric tons (MMT), nearly 5% more than last year and well above the previous forecast of 666 MMT. Unexpectedly abundant supplies from the US are keeping prices low compared with other feedstuffs, helping to boost local consumption. However, apart from the US, where maize use for ethanol continues to leap ahead, demand is fairly sluggish. In Asia, a combination of recurrent disease problems affecting poultry and pigs and the effects of opening domestic markets to imports of meat products has stalled growth in livestock numbers. As a result world consumption will rise only modestly over the forecast period to 686 MMT in 2005/06 and 696 MMT in 2006/07.

World trade maize in 2004/05 is currently forecast at 77 MMT, about 3 MMT less than last year and the lowest since 1999/2000. It is forecast to increase only slightly to 80 MMT in 2005/06 and 83 MMT in 2006/07. Livestock farming in South and East Asia seems to be reaching certain maturity, as most people who are likely to eat grain-fed meat probably now do so. Some of the major importers (South Korea, Taiwan) have been rocked by disease problems affecting pigs and poultry. Furthermore, WTO-imposed reductions in tariffs on meat imports have forced domestic livestock industries to be more efficient in feed usage.

After falling sharply in the first months of 2004 in the wake of an outbreak of avian influenza, China's compound feed production resumed its growth, helped by a switch by consumers to pork. Consumption of beef and dairy products is also rising rapidly. Because of the poor state of China's grasslands cattle need supplementary feeds. Maize consumption in 2004/05 is estimated at 128 MMT, 3 MMT more than this year's comparatively good crop. China will continue to be a net exporter in 2004/05, but only just, exporting only around 4 MMT, and at the cost of a further sharp depletion of stocks. Water is an increasing concern. Maize production will struggle to keep up with use over the next few years, and it is expected that China will become a net importer of maize by 2006/07, and possibly sooner.

Taiwan's Feed Industry Association predicts that the country's demand for maize (met almost entirely from imports) will drop by over 20% in 2005 because of lower meat production. Import quotas on chicken meat, which have secured a market share of less than 10% of consumption for local producers, are to be eliminated at the beginning of 2005 under World Trade Organization (WTO) arrangements. Poultry imports are predicted grow by 50% in 2005 and to continue rising rapidly until the domestic industry restructures and lowers its costs. Meanwhile, disease outbreaks are curtailing pork production. Demand for feed grain is expected to decline as domestic farmers struggle to compete with imports. As a result, maize imports are forecast to fall from 4.5 MMT in 2004/05, to around 4 MMT in the next two years.

In the EU, a much-improved maize harvest is expected for 2004/05, after last year's drought. The maize crop is estimated at 52 MMT, up 30% on the 2003/04 figures. Consumption is also expected to increase in 2004/05, but will be limited by the EU's ample supplies of domestic wheat and barley. Apart from the limited amounts to be bought from the US under long-standing WTO reduced-levy agreements, the feed deficits of the original members (in particular Spain) will be met by the newer member states--notably Hungary, where the 2004/05 harvest is likely to be 80% higher than last year. As a result of higher domestic production, total EU imports in 2004/05 are forecast to fall from 5.5 MMT in2003/04 to 2.4 MMT in 2004/05, and remain at a similar level in 2005/06 and 2006/07.

While all other countries including US, EU, South America, Middle East and South East Asia are expected to benefit from low maize prices, Indian end users are in for tough times. The corn prices are higher than last year and with imports not possible due to the import duty and the TRQ, the exporters of value added products particularly chicken, starch, value added starchs, malto-dextrins, corn gluten meal are expected to lose their markets in Middle East and South East Asian countries as their cost of production will be higher. The corn production in In India during the Khariff (harvest in Oct 2004) was 9.8 MMT while in Rabi (harvest in Feb – March 2005) is expected at 1.6 - 1.7 MMT, the deficit is expected to be close to 1.5 - 1.6 MMT. (based on the total consumption of 13.3 MMT) which will effect prices further in April – Sept 2005, when maize is not available.

Amit Sachdev
Consultant
U S Grains Council
E Mail: bluecross@touchtelindia.net

Indian maize prices and world coarse grain production; Brazil to become No. 1 chicken exporter in the world; Does Asia have a choice ?

­Indian maize prices and world coarse grain production

 

Some sections of the press reported a record Indian maize production of 16 MMT in 2004-05, much higher than last years (2003-04) 12.9 MMT. The report also suggested possibilities of 3 MMT of corn exports to the South East Asian countries and a tough fight to US and Chinese origin maize due to freight advantage.

 

To put things in the right perspective, total food grain production in Khariff season is reported to be down from 112 MMT in 2003-04 to 100 MMT in 2004-05, a reduction of almost 10.7 percent. Indian maize production for Khariff season is expected at 9.0 - 9.5 MMT, down from last yearÂ’s 11.1 MMT. India expects to produce a little higher Rabi corn crop (1.8 MMT) to be harvested in Feb 2005.

 

Local prices at the market yards are ruling higher than last year. During the week before Christmas last year (Dec 2003) maize prices were as under:

 

Andhra Pradesh Rs.4770 per MT ($ 107);
Gujarat Rs.5270 per MT ($118);
Maharashtra Rs. 4970 per MT ($ 111); and
Tamil Nadu Rs. 4780 per MT ($107).

 

This year the prices in Karnataka and Andhra Pradesh are averaging close to Rs.4900 per MT ($110). Adding packing, freight loading, unloading expenses, the FOB values will be close to $137 per MT. Prices in Gujarat are higher by almost Rs.1070 per MT ($24), while in Maharashtra the average prices are similar to the prices in Karnataka and Andhra Pradesh. In Tamil Nadu however, the prices are higher and are being quoted at Rs.5200 per MT ($117). Overall the prices are higher in all markets as compared to last year.

 

The projected U.S. price range for maize was is at U.S.$1.70 to U.S.$2.10 per bushel (U.S.$67 to U.S.$82.67 per ton).

 

US Gulf FOB prices are close to $95 per MT, US corn will be competitive in the South East Asian Region. China on the other had is expected to have a surplus of about 4 MMT of corn and with Thailand also in the market to sell corn (due to drop in Poultry production), it is unlikely that Indian corn will find favor in the South East Asian Market at such high FOB values.

 

Though reports suggest of some sales to Sri Lanka at $131–$134 FOB for contracts already signed, there is no hope that such prices will come again.

 

While IndiaÂ’s coarse grain production is down, USDA expects the world coarse grain production to be a record high at 989 MMT in 2004-05, almost 9 percent higher than 2003-04. Larger crops are projected for Ukraine (up 1.4 million tons), Canada and Mexico (each up 0.9 million tons), and China (up 0.5 million tons), with smaller increases projected for several other countries.  Crop reductions are projected for Russia (down 0.7 million tons) and Australia (down 0.3 million tons).  Global consumption is raised 2 million tons Global coarse grain stocks rise 3 million tons from last month and are up 23 million tons from last year.  Stocks rise in the United States, South Africa (up 0.7 million tons), and Canada (up 0.6 million tons), with smaller increases forecast for many other countries.  Stocks decline in Russia, the EU-25, Mexico, and several other countries.

 

Brazil to become No. 1 chicken exporter in the world (inputs from e-feed link)

 

Brazilian poultry farmers, sustained by opportunities in the Middle East and Asia, have increased their production and are expected to overtake the United States by end the fiscal year as the world's No. 1 chicken exporter.

 

In 1997, Brazil's chicken exports were less than a third those of the US. But production has taken off since the year 2000. Growth averaged 20 percent in the past 2 years, and Brazil presently exports to 127 different countries and controls 36 percent of the world share, according to the Brazilian Association of Chicken Exporters.  The main markets are in the Middle East and Asia, particularly China.

 

When Asian producers were laid low by avian influenza earlier this year, their Brazilians competitors moved in, and exports to Asia went up 84 percent between January and October.

 

There are other, more established reasons for the rise. Brazil's industry is relatively new and therefore modern. Production costs are up to 25 percent lower than in the US. And sanitary controls have helped keep the country's birds free of pests.

 

On the other side of the globe, the poultry integrators in India are at a loss. In Jan 2004 the cost of production of Chicken (live) was just about Rs.2.03 per kg ($ 0.05) higher than US. In September 2004, the cost of production in India for integrators jumped to $ 0.70 per kg, a difference of almost $0.14 per kg from the US. Current costs remain at September 2004 levels even though Soymeal prices are very much lower, but corresponding maize  prices are higher. The Brazilian cost of production during the whole year has been stagnant at about $0.41 – 0.43 per kg, which gives the Brazilian farmers an edge.

 

Does Asia have a choice ? (inputs from yahoo news)

 

The chicken-slaughtering days at wet — or live animal — markets may be numbered. As part of an effort to contain avian influenza, the deadly bird flu virus, the Hong Kong government is offering to buy out hundreds of chicken stalls and it wants to set up a centralized slaughterhouse. 

 

The desperate fight to prevent bird flu from turning into a pandemic that could kill millions is threatening old cultural practices across Asia — from buying live birds at Hong Kong's markets to betting on rooster fights in Thailand to letting chickens and ducks run free in backyard farms across the region, including India.

 

Public health officials say Asia has no choice. The deadly H5N1 bird flu virus is infecting birds on farms and in the wild in at least eight countries: Cambodia; China, Indonesia, Japan, Laos, South Korea, Thailand and Vietnam. Can India be far behind?

 

So far, the bird flu has had trouble making the leap from animals to humans. When it does, it's lethal. The virus killed 32 of the 44 people with confirmed cases this year. Scientists worry that the virus will mutate into something that can infect humans more easily and be transmitted from human to human, potentially devastating populations with no immunity.

 

Is this the consequence of rising prosperity, some one may ask. People used to be satisfied with a bowl of rice and some vegetables. Now they want some meat with their dinners, specially chicken. Anyone who wants to make a little more money starts raising chickens in the backyard and there is no consideration for hygiene in sanitary controls in the backyard farms and the wet markets in most of the asian cities of Hong kong, Delhi and countries like Laos,, Combodia and Vietnam.

 

The alarm has sounded in many Asian countries. In Hong Kong, after the 1997 outbereak the wet markets were ordered to replace easily contaminated wooden cages with metal or plastic ones. In addition the Wet markets were required to close twice a month for cleaning, farms were ordered to vaccinate chickens, customers were forbidden from touching live poultry. (In the old days, some customers liked to pick up the birds, blow on their tail feathers and inspect their hind quarters to see if they were plump enough to make a good meal.). It is believed these measures were not enough.

 

Either the Asian poultry industry, including India has to mend its ways and change and become modern to provide safe meat to its populaions or perish.

 

It is better to change with times than perish !!
­­

 

Amit Sachdev­
­Consultant­
­U S Grains Council­
­E Mail: bluecross@touchtelindia.net

US corn prices and prices in India, Ethanol business booming in US, The great Indian diet revolution

US corn prices and prices in India

 

The US corn prices are reported to be steady this week, though exports ales are down. The commodity prices were as under:

 

Corn: $94.50 per MT FOB US Gulf (Feb March delivery)

Sorghum: $98.00 per MT FOB US Gulf (Feb March delivery)

Barley: $115.00 per MT FOB PNW (Feb March delivery)

 

Indian prices of corn are still higher than last year (Dec 19, 2003).

 

Corn prices reported last year for local and yellow varieties averaged at Rs.4910 ($109) & Rs.5040 ($112) per ton respectively on Dec 19, 2003. This year (Dec 17, 2004) the prices for the same varieties  are higher and reported at Rs.5230 ($116) and Rs.5480 ($122) per MT at market yard. The prices are higher by approximately 6.5 percent for local and 8.7 percent for yellow varieties, thus increasing the cost of production of chicken & eggs for the Indian poultry farmer and reducing competitiveness.

 

Ethanol business booming in US 

Strong prices and a bumper crop fuel the surge in production  (inputs from Grainnet.com)

 

The ethanol business in US exploding, thanks to strong prices for the corn-based gasoline additive and a bumper crop of corn. It is expected that 12% of the corn crop will be used for ethanol production this year. The ethanol boom is benefiting investors and farmers alike.

 

Production of the corn-based fuel could hit 5 billion gallons (18.9 billion liters) a year as early as 2006, up from 2.8 billion gallons (10.5 billion liters) last year. Iowa alone will shortly hit 1 billion gallons (3.8 billion liters) in annual production capacity. To produce 5 billion gallons (18.9 million liters), 2 billion bushels (50 million metric tons) of corn will be needed.

 

In Iowa alone, the industry provides 3,700 jobs, consumes about $910 million worth of corn a year and racks up $2.6 billion in sales of alcohol and a byproduct used for cattle feed, according to an analysis by Iowa State University. In Nebraska, nearly 200 million bushels (5 million metric tons) of corn will be used to produce the alternative fuel at the state's 11 ethanol plants this year. Ethanol plants increase corn prices in their areas by 2.0 – 5.0 percent. Ethanol is selling for about $1.50 a gallon, ($ 0.39 per liter) well above its cost of production of less than $1 ($ 0.26 per liter)

 

According to Renewable Fuels Association, there are 82 plants now in operation nationwide, which will produce 3.4 billion gallons (12.87 billion liters) of ethanol this year. Sixteen plants now under construction will push the industry's production capacity to 4.3 billion gallons (16.27 billion liters).

 

What is driving this boom is a decision by California, New York and Connecticut to ban a rival gasoline additive called MTBE. Both additives boost the oxygen content of gasoline, a requirement of federal air-quality standards. However, MTBE is being phased out because of concerns it is leaking from underground tanks and fouling drinking water.

 

There is another important factor in the ethanol boom: soaring prices for oil and gasoline. The price of oil topped $50 a barrel this fall and remains above $40. That has made gasoline so expensive that oil companies can save money by adding ethanol to the fuel.

 

An energy bill that stalled in Congress this year would have required the nation to use 5 billion gallons 18.9 billion liters) of ethanol a year by 2012. But that figure may be too low, given that the industry already is closing in on that level, farmers say.

 

It is expected that the US congress will enact energy legislation, which includes a national renewable fuels standard that would increase the use of alternative fuels in US including ethanol and bio-diesel.

 

As per President Bush, "We'll pursue more energy close to home in our own country and in our own hemisphere so that we're less dependent on energy from unstable parts of the world,"

 

The great Indian diet revolution

 

According to the report by Mr.Ashok Gulati, Director, Markets, Trade and Institutions Division at International Food Policy Research Institute, (IFPRI) US, the Indian diet has changed considerably in the last 2 decades. For the period 1983 to 2000 studied, the diets of all income groups has changed from cereals to non-cereal base. Energy intake for poor has increased while that for rich has decreased. The consumption of high value foods has shown an increase in low income group . The most interesting revelation is the change in  the growth of meat consumption (meat eggs and fish) which increased by 100% in low income group to over 121% in high income group from 1983 to 2000.

 

These changes in consumption pattern can be attributed to more income in the family as part of the increasing women work force, as per the report.  

 

Amit Sachdev
Consultant
U S Grains Council
E Mail: bluecross@touchtelindia.net

More Corn means lower prices....; UK study finds benefits in GM crops; Bird flu deadlier than SARS

More corn means lower prices of US Corn.......

 

But it also means low export sales figures. As per the USDA estimates, due to lower commodity prices and large supplies around the world, the sales of US corn are forecast at $56 billion in FY 05 as against $62.3 billion in FY 2004 (fiscal 2004 ended on September 30, 2004). Harvest is almost complete in US. Though the domestic use will is higher due to lower prices, it will take more effort to consume all the corn in US. A higher global demand can certainly help the markets.

 

As per the USDA report, the growth in developing countries is projected to exceed 6 percent in 2004 and 5.5 percent in 2005. Asia being the key growth center will continue to be the fastest growing region with a 7 percent growth in 2004 and 6 percent in 2005. India's GDP growth will be in excess of 7 percent in 2004 and near 7 percent in 2005 as well.

 

On export front the report has identified several constraints, like

 

a. A weak dollar though makes commodities affordable; a strong dollar in key markets lowers the purchasing power.

b. High freight rates dampen the demand of the commodities in foreign markets.

 

Of the total corn produced in US, almost 80 percent in used domestically. The report forecasts the food and industrial usage of corn will be about 25% while exports will be about 19%. US farmers this year have produced 16% more corn, enough to fill rail cars that can circle the world at the equator. 

 

US corn prices were reported at $94.5 per ton FOB (US Gulf) for January and February deliveries.

 

Prices in India are stable, though a marginally high for this time of the year. On the week ending Dec 03, 2004, Corn prices were reported in 38 market yards. The prices for various varieties were reported as

 

Hybrid/Local: $105 per MT (high $118; low $92)

Local: $120 per MT (high $143; low $97)

Yellow: $132.5 per MT (high $137; low $128).

Dollar is weak against Indian Rupee and was traded at Rs.44.50.

 

Last year in the first week of Dec 2003, corn sales were reported in 83 market yards. Average prices of week were as under:

 

Hybrid/Local: $100 per MT (high $105; low $97)

Local: $108 per MT (high $111; low $105)

Yellow: $99 per MT (high $104; low $95).

Dollar was strong and was being traded at Rs.45.50 

 

UK study finds benefits in GM crops

A study of genetically modified crops in the UK conducted by the Botanical and Rotational Implications of Genetically Modified Herbicide Tolerance (BRIGHT) Link project has found no evidence that they harm the environment.

 

The Bright project looked at varieties of sugar beet and winter oil-seed rape, which had been engineered to make them tolerant of specific herbicides. The novel crops as they are called in Canada and UK were compared with non-GM cereals grown in rotation. In another related study (Farm Scale Evaluations) conducted early this year, found GM maize, to be better than its conventional counterpart.

 

The project concluded that the GM varieties, used in rotation, did not deplete the soil of weed seeds needed by many birds and other wildlife. The project also concluded that the GM crops would be beneficial for farmers in many ways. The report has concluded that there are ways in which these crops can be managed, which would be practical. The use of these crops can lead to flexible use of herbicides, which will be cost effective.

 

The European Union has indicated that member countries will have to base decisions for GM agriculture on science rather than public opinion in future.

 

In India, the Department of Biotechnology (DBT) has formed six major working groups that would deliberate on issues concerning the biotech policy. The working groups will deliberate on policy measures required to promote innovation and intellectual output, strategies to promote conversion of scientific knowledge to products, human resource, infrastructure, re-engineering of institutions, biotech parks, bio-business and investment, regulation and legislation & public awareness. It is anticipated that the biotech policy will be announced by January 2005. Dr.M K Bhan, Secretary DBT has stated,  “We are studying methods to harmonize our rules and regulations with those of US so that Indian approvals are recognized internationally”.

 

Bird flu deadlier than SARS

 

A World Health Organization (WHO) communiqué has stated that the H5N1 strain of Avian Influenza is more lethal than Severe Acute Respiratory Syndrome (SARS).

 

While AI virus has killed 32 people in Thailand and Vietnam in 2004, SARS killed 800 people around the world in 2003. While SARS has a mortality rate of 15 percent, the H5H1 has a mortality rate of 33 percent. It has a potential to kill 50 million people worldwide. H5N1 is versatile and has "become more pathogenic," the communiqué states.

 

In a related development, Hong Kong authorities are considering a ban on slaughtering of poultry by retailers in a bid to prevent a bird (avian) flu pandemic. This development was reported after WHO issued the warning that the next pandemic could be caused by H5N1 virus.

 

Shopkeepers have always tried to resist laws that prohibit them from slaughtering poultry in front of their customers. It is common for consumers all over Asia including Hong Kong, China and India to have their poultry slaughtered in front of them as they like their food fresh. All cases of humans getting infected with the bird flu virus have been when there was close contact with live, infected animals.

 

A directive from Municipal Corporation of Delhi, providing guidelines for sale of safe meat to the citizens and prohibiting slaughter of animals and birds inside the meat shops under its jurisdiction is a step in right direction. It is a way to prevent not only a pandemic that could come, but also help the environment and provide safe meat to the consumers.

 

Amit Sachdev
Consultant, U S Grains Council
E Mail: bluecross@touchtelindia.net

Corn prices in India, Municipal Corporation of Delhi effectively bans slaughter of birds within MCD jurisdiction, High Freight Costs for corn deliver

Corn prices in India

Corn prices in India are stable for a week. Comparisons for week ending prices for some markets are as under:

Nov 19, 2004
(All prices on per ton basis in market yards)

Andhra Pradesh
Nizamabad Min $110 - Max $114
Badepalli Min $109 - Max $115 (Market received over 5500 tons of corn)
Nandikottur Min $110 - Max 115
While the lowest price was quoted in Siddipet ($92) the highest was quoted in Badepalli ($115)
Gujarat
Dahod Min $119 - Max $ 133
Rajkot Min $ 129 - Max $ 133
Uttar Pradesh Min $ 121 - Max $134
Karnataka
Davangeve Min $ 99 - Max $ 106
Dharwad Min $ 97 - Max $ 99
Rannebannur Min $ 102 - Max $ 111 (Market received over 9100 ton of corn)
While the lowest price for local variety was quoted at Bagalkot ($71) the highest price was in Kolar ($121)

Nov 25, 2004

Andhra Pradesh
Badepalli Min $ 106 - Max $ 116 (Market received over 2700 tons of corn)
Karimnagar Min $ 109 - Max $ 115
Karnataka
Davangere Min $ 102 - Max $ 107
While the lowest price for yellow variety was quoted at Atahani ($92) the highest price was in Mahuva (Gujarat) ($141)

(Source: Agmarketnet)

Municipal Corporation of Delhi effectively bans slaughter of birds within MCD jurisdiction

Office order No 860/DVS/2004 dated Nov 22, 2004 issues by Municipal Corporation of Delhi, Veterinary Services Department, on the recommendations of Dr.Nagendra Sharma Expert Committee lays down the norms for

1. Shop location for meat sale,
2. Size,
3. Premises,
4. Ventilation in shops,
5. Equipments,
6. Transportation of meat,
7. Pest control,
8. Employee Hygiene,
9. Sanitary Practices in shops and
10.Packaging and dispensing of meat.

As per the order, licenses will be granted to shops who will comply with all the technical instructions laid down on the above points.

The norms laid down advocate that "No live animal or birds should be allowed inside or adjacent to the meat shops" and "Slaughtering of animals/birds inside the shop should be strictly prohibited".

What consumers need ?

There has been a lot of debate on what the consumer's demands are and what the consumer's need, with regard to meat. In most cases the companies try to sell what they can produce. While the consumers do look for quality and convenience they also want choice and more recently tend to look for meal solutions and ideas and not just meat. While this is true in most cases foremost on the minds of the consumer is value for money. Geographical differences can make a difference in consumer demands and how companies can market their products.

In this equation of sale of a product by the company and purchase of the product by the consumer. one factor that is most important is the 'confidence'. The consumers need an assurance that the product that is on the shelf will add to their well being and will be safe for the family. The consumers concerns are not about the safety of the product when it reaches their homes (where most food safety hazards occur), but when the product was being processed or at the farm.

The Indian poultry meat industry needs to move forward in the direction of building the confidence level of the consumer and make improvements in the food safety practices. All this needs to be backed up with a commitment towards the well being of the consumers.

The move by Municipal Corporation of Delhi is the commitment by the agency towards the citizens to Delhi. Now it is the turn of the industry to take the lead and move ahead. (Should you need a copy of the order, please feel free to contact me.)

High Freight Costs for corn deliveries to Asia

Though the US corn prices are dropping, the effect may not be seen in Asia as the freight costs are rising. The freight rates stabilized for a week and are high again due to strong demand and limited availability of ships.

Rates for Panamax-size cargoes were quoted at $64 a ton on the benchmark route from the U.S. Gulf to Japan, up from $63/ton last week. U.S. corn prices rose by over $3 per ton from 159.8 per ton to 162.8 per ton on cost and freight basis for January-to-March shipment. In South Korea, the prices were $155/ton CNF from PNW.

Amit Sachdev
Consultant, U S Grains Council, India
E Mail: bluecross@touchtelindia.net