Commodity prices and target production
Last week saw the arrivals of corn start in Bihar and also some parts of UP. The prices at markets in both the states are clearly higher than the Minimum Support Prices announced by GOI. Whereas the price in the Bihar markets averages Rs.5307 ($ 122) per MT, the prices in Uttar Pradesh markets average Rs.6046 ($ 139) per MT. In Karnataka, Davangere markets are receiving stocks. The average price of corn for all states is about Rs.5872 ($135) per MT as against the MSP of Rs.5250 ($ 121) per MT announced by GOI.
Govt has released the fourth estimates for 2004-05 crop. The estimated food grain production has been pegged at 210.44 million metric tons, of which Khariff is estimated at 104.88 MMT and Rabi at 106.36 MMT. Corn production has been estimated at 14.87 Million Metric tons in corn. While the 2004 -05 estimates are being discussed and will be finalized later, the target for 2005-06 Khariff has been fixed at 114 MMT, almost 9.53 percent higher than Khariff output of 2004-05.
Reports suggest that Food Corporation of India (FCI) has stocks of over 0.5 MMT of Maize stocks at various locations and is ready to tender for the same.
Corn prices in US are stable. CBOT on Thursday, March 24, 2005 closed at $2.105 per bushel ($82.86 per MT) for May delivery and $2.185 per bushel ($86 per MT) for June delivery. FOB rates US gulf ranged from $98.5 per MT for May and $99 per MT for June delivery.
The co-products prices are also higher and Corn Gluten meal with 60 percent protein is priced at $300 per MT while the Corn Gluten Feed with 20 percent is priced at $ 99 per MT. These prices are FOB US Gulf.
Export corn projections for China have now been raised to 6 MMT and in South Africa the corn crop has been estimated at 11.136 MMT for 2004-05. Last year the crop was 9.48 MMT. This year (2004-05) white corn is estimated at 6.629 MMT, while yellow corn is estimated at 4.508 MMT.
Effects on the economies – courtesy Bird Flu
The Avian influenza crisis in South East Asia has claimed 45 lives, has already caused damages of more than $10 billion dollars to the economies of the most-seriously affected countries like Thailand, Vietnam, Cambodia to name a few. The report by Bio era, an independent research and advisory services company, titled, Thinking Ahead: The Business Significance of an Avian Influenza Pandemic suggests that this is just the tip of the iceberg compared with the possible global economic consequences of a human influenza pandemic.
“According to the quantitative measures the group developed for assigning relative economic risk exposure to infectious disease outbreaks for countries in Asia. Hong Kong and Singapore are especially vulnerable to the initial economic shock waves that would ensue from a pandemic.” As per the report, “the secondary impacts on other countries, especially China, could also have far-reaching impacts for economies around the world, including the US.”
Other key findings in the report include:
• Avian influenza is the latest in a series of major livestock disease outbreaks that have caused more than $60 billion in economic damages worldwide over the past 15 years. The current crisis could accelerate the industrialization of the poultry industry in parts of Asia.
• Concerns about a possible influenza pandemic are already providing stimulus for increased spending and accelerated research and development efforts in some parts of the economy, ranging from custom microarray chips for rapid diagnostic testing to antiviral drugs.
• Governments around the world have recently made commitments totalling an estimated $1.4 billion to stockpile oseltamivir (Tamiflu)—an antiviral drug produced by pharmaceutical giant Roche.
• Manufacturers of flu vaccines are gearing up for what may be an unprecedented global demand for a vaccine effective against H5N1 variants, but it is not known whether the vaccines being developed now would be effective against the influenza strains that might emerge.
• New “DNA vaccines” offer an alternative to conventional production technology and could speed the vaccine industry’s ability to respond, but these technologies are not yet approved by FDA.
The bio-era study summarizes and interprets the latest science and economic analysis relevant to the current outbreak of Avian influenza (H5N1) in Southeast Asia, including the economic burdens imposed so far by the disease, and the risks and potential business impacts should the current outbreak develop into a global influenza pandemic. The study looks at how things might unfold under six very different but highly plausible scenarios for the evolution of the outbreak.
The report is a part of bio-era’s recently launched service “Thinking Ahead: Anticipating Early Impacts of an Avian Influenza Pandemic”, designed to support business and investment planning efforts in advance of a possible influenza pandemic. The executive summary and first few pages of the report are available for download from the bio-era website (http://www.bio-era.net) free of charge.
Bio Economic Research Associates (bio-era™) is a leading provider of independent research and advisory services on the emerging bio economy. Bio - era’s mission is to help decision-makers understand and respond to the risks and opportunities arising from the economic and societal impacts of human-induced changes to biological systems. The firm’s practice areas include biosecurity, bioenergy, and biotechnology.
Corn-based plastics struggle to find a market – the opportunity exists
Cargill Dow Joint Venture PLA manufacturing plant came on stream in 2002. New plants were expected to come up every 2 years, but none has been announced so far. In early 2005, Cargill purchased Dow’s share and renamed the venture NatureWorks LLC.
NatureWorks PLA has an advantage in packaging and non-woven fabrics as there has been some success in the past. In US, water is being sold in PLA bottles; organic salad is being packaged in PLA tubs.
The only appeal PLA has is its biodegradable quality and that it is based on renewable resources. This appeal will grow with the masses. Many believe that just being eco-friendly may not be sufficient for the success of PLA, it has to be cheaper.
For the fiber processor, PLA offers a good promise as it is compatible with polyester in blends and because it can be dyed at a much lower temperature than polyester. In times to come it will be cheaper than PET and its qualities will improve giving it an edge.
In Taiwan, bioplastics are being promoted as a suitable ingredient for use in food trays in the supermarkets. In India, there are few companies promoting biodegradable plastics, one such company is Kayani Bakery in Pune, which is providing biodegradable plastic carry bags to its customers. The bag is being manufactured by Degradable Poly Tech (DPT).
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Sunday, March 27, 2005
Saturday, March 19, 2005
Commodity prices; Efficiency of Broiler Production in Brazil
Commodity prices
In the last fortnight, there has been no major changes in the corn prices variety wise, the average prices in some states has shown a drastic increase. Prices in Rajasthan are up from Rs.6264 ($144) per ton to Rs.6525 ($150) per ton, while in Maharashtra the prices are up from Rs.5263 ($121) per ton to Rs.5481 ($126) per ton.
Arrivals in markets all over the country have been slow and the only markets that have seen consistent supplies have been the markets in Karnataka. It is estimated that the Karnataka farmers in the Khariff crop of 2004-05 produced close to 2.5 MMT of corn and also the Rabi area has shown a slight increase in Karnataka. Markets in Davangere are showing consistent arrivals of about 300 – 400 tons or corn every day.
The future prices for April 2005 and May 2005 deliveries were set at Rs.5445 ($125) and Rs.5565 ($128) per ton respectively. The spot prices in Nizamabad and Davangere were Rs.5256 ($121) and Rs.5287 ($122) per ton respectively.
Corn on Chicago Board of Trade (CBOT) did not some volatility, but was settled lower for May 2005 delivery at $2.196 per bushel ($86.43 per ton) as against a previous high of $2.234 per bushel ($87.93 per ton). The June delivery was settled at $2.274 per bushel ($89.50 per ton) against a previous high of $2.312 per bushel ($91 per ton). The FOB US Gulf values will be much higher at $104 per MT.
Efficiency of Broiler Production in Brazil
The cost of production of broiler is dependent on the feed cost, as it contributes almost 65 percent in the cost of production of broiler. Within feed though there are all components, corn is a major contributor and any increase is corn price gets reflected in the cost of production of broiler.
The cost of production of corn in Brazil is as under:
1. Rs.3480 ($80) per ton when productivity is 3 tons / hac
2. Rs.3349 ($77) per ton when productivity is 6.5 tons / hac
3. Rs.3088 ($71) per ton when productivity is 10 tons / hac
The cost of production of live broiler is about Rs.19.6 ($0.45) per kg, which is reflected in its export price as well.
A small analysis
1. In 2004, Brazil produced 8,409,000 MT of broiler meat of which 28.8 percent was exported. The average price realized was $1055 per MT of poultry meat.
2. In the period 00/04 the industry grew by 40.59 percent (10.14% per year), exports grew by 167.4 percent (41.85 percent per year), value of export products grew by 217.70 percent (54.42 percent per year), average price realization grew by 18.81 percent (4.70 percent per year) and the per capita consumption grew by 13.71 percent (3.42 percent per year)
3. One factor that effects the per capita consumption is the price of chicken. For the period 1990/2000, the average price realization was down by 16.85 percent (1.68 percent per year), while the per capita consumption increased by 123.13 percent (12.31 percent per year). The export with the same period grew by 203.02 percent (20.30 percent per year). The industry during the same period grew by 163.79 percent (16.38 percent per year).
This was by no means a mean feat. When will India fall in that league is a big question that will have to be answered by the policy makers, who think India can be a food factory to the world without realizing, that our cost of production is much higher for inputs thus affecting the industry’s competitiveness and growth.
If you have any comments on the above analysis, please feel free to forward the same to undersigned.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
In the last fortnight, there has been no major changes in the corn prices variety wise, the average prices in some states has shown a drastic increase. Prices in Rajasthan are up from Rs.6264 ($144) per ton to Rs.6525 ($150) per ton, while in Maharashtra the prices are up from Rs.5263 ($121) per ton to Rs.5481 ($126) per ton.
Arrivals in markets all over the country have been slow and the only markets that have seen consistent supplies have been the markets in Karnataka. It is estimated that the Karnataka farmers in the Khariff crop of 2004-05 produced close to 2.5 MMT of corn and also the Rabi area has shown a slight increase in Karnataka. Markets in Davangere are showing consistent arrivals of about 300 – 400 tons or corn every day.
The future prices for April 2005 and May 2005 deliveries were set at Rs.5445 ($125) and Rs.5565 ($128) per ton respectively. The spot prices in Nizamabad and Davangere were Rs.5256 ($121) and Rs.5287 ($122) per ton respectively.
Corn on Chicago Board of Trade (CBOT) did not some volatility, but was settled lower for May 2005 delivery at $2.196 per bushel ($86.43 per ton) as against a previous high of $2.234 per bushel ($87.93 per ton). The June delivery was settled at $2.274 per bushel ($89.50 per ton) against a previous high of $2.312 per bushel ($91 per ton). The FOB US Gulf values will be much higher at $104 per MT.
Efficiency of Broiler Production in Brazil
The cost of production of broiler is dependent on the feed cost, as it contributes almost 65 percent in the cost of production of broiler. Within feed though there are all components, corn is a major contributor and any increase is corn price gets reflected in the cost of production of broiler.
The cost of production of corn in Brazil is as under:
1. Rs.3480 ($80) per ton when productivity is 3 tons / hac
2. Rs.3349 ($77) per ton when productivity is 6.5 tons / hac
3. Rs.3088 ($71) per ton when productivity is 10 tons / hac
The cost of production of live broiler is about Rs.19.6 ($0.45) per kg, which is reflected in its export price as well.
A small analysis
1. In 2004, Brazil produced 8,409,000 MT of broiler meat of which 28.8 percent was exported. The average price realized was $1055 per MT of poultry meat.
2. In the period 00/04 the industry grew by 40.59 percent (10.14% per year), exports grew by 167.4 percent (41.85 percent per year), value of export products grew by 217.70 percent (54.42 percent per year), average price realization grew by 18.81 percent (4.70 percent per year) and the per capita consumption grew by 13.71 percent (3.42 percent per year)
3. One factor that effects the per capita consumption is the price of chicken. For the period 1990/2000, the average price realization was down by 16.85 percent (1.68 percent per year), while the per capita consumption increased by 123.13 percent (12.31 percent per year). The export with the same period grew by 203.02 percent (20.30 percent per year). The industry during the same period grew by 163.79 percent (16.38 percent per year).
This was by no means a mean feat. When will India fall in that league is a big question that will have to be answered by the policy makers, who think India can be a food factory to the world without realizing, that our cost of production is much higher for inputs thus affecting the industry’s competitiveness and growth.
If you have any comments on the above analysis, please feel free to forward the same to undersigned.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Saturday, March 12, 2005
Commodity prices and diversification; Asia to fuel demand of Maize; Avian Influenza update
Commodity prices and diversification
The average price of Indian corn has increased in last one week, up from an average of Rs.5154 ($ 118.5) per ton of last week to Rs.5492 ($126) per ton. These prices are at the wholesale markets (mandis). Future prices in India were set at Rs.5295 ($121.7) per ton for March delivery, Rs.5546 ($128) per ton for April delivery, Rs.5605 ($129) per ton for May delivery. Spot prices from Nizamabad (Andhra Pradesh) and Davangere (Karnataka) ruled at Rs.5215 ($120) per ton and Rs.5179 ($119) per ton respectively.
Overall it has been a good year for the Indian maize farmer, who has been able to receive a price higher than the minimum support price announced by Government of India. The growth in poultry and starch sector is fuelling the demand for corn, which is in short supply, thus increasing the prices and leading to higher price realization by the maize farmer. Demand from neighbouring countries, especially Bangladesh and Nepal also fuels demand.
While on one side the Indian farmer is getting a better price, farmers in South Africa are fighting for survival. Prices have gone down and the stocks are record high. South Africa, which is the largest grain grower in Africa, primarily consumes white corn. In January the stocks were reported at record high of 5.23 MMT, about 26 percent higher than last year. The new crop is estimated at 10.52 MMT, a five year high as farmers increased the plantings by 4.4%. Maize was planted in 3.4 million hectares and the average productivity of 3.09 tons / hectare was expected. The prices fell by 46% to $78.71 per ton last month. July delivery is expected at $91.89 per ton. Farmers have been urged to cut planting by 30 percent.
Corn prices in US are also slowly going up. CBOT futures for May delivery of yellow corn were settled at $88.40 per ton, which makes the FOB values equivalent to $100 – 101 per ton US Gulf.
Asia to fuel demand of Maize (inputs from seed quest)
Reports suggest that the demand for maize in Asia is expected to increase tremendously in the next two decades, primarily due to higher growth in livestock sector, leading to higher requirement of animal feed. Demand is also increasing in the farming households in uplands of seven Asian countries covered by CIMMYT and International Fund for Agricultural Development (IFAD). These farming households consume most of the maize they produce. The countries covered included, China, India, Indonesia, Nepal, the Philippines, Thailand, and Vietnam
International Food Policy Research Institute (IFPRI) estimates that demand for maize in all developing countries will surpass the demand for wheat and rice, with Asia accounting for over half of this growth, by 2020.
A message that emerged from the study in Vietnam clear, there is a need to help farmers apply sustainable practices to avoid degrading natural resources—particularly in fragile, marginal settings—as the demand intensifies.
In order to cater to the increased demand, Chinese scientists have cultivated a new species of high-yielding "super maize". The new strain is expected to produce 15 tons per hectare. Introduction of the new variety could significantly increase grain production in China, which is likely to become a net importer in near future.
Shrinking acreage, falling water tables and a population that is expected to grow significantly in Asia are questions that need to be answered, before any diversification in agriculture can be taken up. More land will be required to produce wheat and rice, to feed the growing population. Higher population, higher incomes, would mean more demand for meat, milk and eggs.
Avian Influenza update
The Vietnamese government reported 10 human cases of avian influenza to the World Health Organization on Friday, March 11, 2005, breaking a five-week silence on the human toll the strain known as H5N1 has taken in that country.
At least eight people from the northern province of Thai Binh have tested positive for H5N1 flu since this outbreak began in December 2004, according to Agence France-Presse (AFP), and two have died. Overall, 25 laboratory-confirmed cases, 14 of them fatal, have occurred in Vietnam and Cambodia since mid-December 2004, the World Health Organization (WHO) said today in an update on the case count.
Overall, the WHO has logged 69 human cases, including 46 deaths, since January 2004. Those include 51 cases and 33 deaths in Vietnam, 17 cases with 12 deaths in Thailand, and one fatal case in Cambodia.
The statement said cases have occurred in three phases: from January through March 2004 (35 cases, 24 deaths), from August through October 2004 (9 cases, 8 deaths), and December 2004 to the present (25 cases, 14 deaths).
WHO has warned that the Z strain of the Avian Influenza virus (H5N1) could very well cause a pandemic is proper measures are not taken.
For more information or comments please contact
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
The U.S. Grains Council is a private, non-profit partnership of farmers and agribusinesses committed to building and expanding international markets for U.S. barley, corn, grain sorghum and their products. The Council is headquartered in Washington, D.C., and has 10 international offices that oversee programs in nearly 80 countries. Support for the Council comes from its members and the U.S. Department of Agriculture.
The average price of Indian corn has increased in last one week, up from an average of Rs.5154 ($ 118.5) per ton of last week to Rs.5492 ($126) per ton. These prices are at the wholesale markets (mandis). Future prices in India were set at Rs.5295 ($121.7) per ton for March delivery, Rs.5546 ($128) per ton for April delivery, Rs.5605 ($129) per ton for May delivery. Spot prices from Nizamabad (Andhra Pradesh) and Davangere (Karnataka) ruled at Rs.5215 ($120) per ton and Rs.5179 ($119) per ton respectively.
Overall it has been a good year for the Indian maize farmer, who has been able to receive a price higher than the minimum support price announced by Government of India. The growth in poultry and starch sector is fuelling the demand for corn, which is in short supply, thus increasing the prices and leading to higher price realization by the maize farmer. Demand from neighbouring countries, especially Bangladesh and Nepal also fuels demand.
While on one side the Indian farmer is getting a better price, farmers in South Africa are fighting for survival. Prices have gone down and the stocks are record high. South Africa, which is the largest grain grower in Africa, primarily consumes white corn. In January the stocks were reported at record high of 5.23 MMT, about 26 percent higher than last year. The new crop is estimated at 10.52 MMT, a five year high as farmers increased the plantings by 4.4%. Maize was planted in 3.4 million hectares and the average productivity of 3.09 tons / hectare was expected. The prices fell by 46% to $78.71 per ton last month. July delivery is expected at $91.89 per ton. Farmers have been urged to cut planting by 30 percent.
Corn prices in US are also slowly going up. CBOT futures for May delivery of yellow corn were settled at $88.40 per ton, which makes the FOB values equivalent to $100 – 101 per ton US Gulf.
Asia to fuel demand of Maize (inputs from seed quest)
Reports suggest that the demand for maize in Asia is expected to increase tremendously in the next two decades, primarily due to higher growth in livestock sector, leading to higher requirement of animal feed. Demand is also increasing in the farming households in uplands of seven Asian countries covered by CIMMYT and International Fund for Agricultural Development (IFAD). These farming households consume most of the maize they produce. The countries covered included, China, India, Indonesia, Nepal, the Philippines, Thailand, and Vietnam
International Food Policy Research Institute (IFPRI) estimates that demand for maize in all developing countries will surpass the demand for wheat and rice, with Asia accounting for over half of this growth, by 2020.
A message that emerged from the study in Vietnam clear, there is a need to help farmers apply sustainable practices to avoid degrading natural resources—particularly in fragile, marginal settings—as the demand intensifies.
In order to cater to the increased demand, Chinese scientists have cultivated a new species of high-yielding "super maize". The new strain is expected to produce 15 tons per hectare. Introduction of the new variety could significantly increase grain production in China, which is likely to become a net importer in near future.
Shrinking acreage, falling water tables and a population that is expected to grow significantly in Asia are questions that need to be answered, before any diversification in agriculture can be taken up. More land will be required to produce wheat and rice, to feed the growing population. Higher population, higher incomes, would mean more demand for meat, milk and eggs.
Avian Influenza update
The Vietnamese government reported 10 human cases of avian influenza to the World Health Organization on Friday, March 11, 2005, breaking a five-week silence on the human toll the strain known as H5N1 has taken in that country.
At least eight people from the northern province of Thai Binh have tested positive for H5N1 flu since this outbreak began in December 2004, according to Agence France-Presse (AFP), and two have died. Overall, 25 laboratory-confirmed cases, 14 of them fatal, have occurred in Vietnam and Cambodia since mid-December 2004, the World Health Organization (WHO) said today in an update on the case count.
Overall, the WHO has logged 69 human cases, including 46 deaths, since January 2004. Those include 51 cases and 33 deaths in Vietnam, 17 cases with 12 deaths in Thailand, and one fatal case in Cambodia.
The statement said cases have occurred in three phases: from January through March 2004 (35 cases, 24 deaths), from August through October 2004 (9 cases, 8 deaths), and December 2004 to the present (25 cases, 14 deaths).
WHO has warned that the Z strain of the Avian Influenza virus (H5N1) could very well cause a pandemic is proper measures are not taken.
For more information or comments please contact
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
The U.S. Grains Council is a private, non-profit partnership of farmers and agribusinesses committed to building and expanding international markets for U.S. barley, corn, grain sorghum and their products. The Council is headquartered in Washington, D.C., and has 10 international offices that oversee programs in nearly 80 countries. Support for the Council comes from its members and the U.S. Department of Agriculture.
Saturday, March 05, 2005
Commodity prices and world scenario; The world of biotechnology; Indian agriculture and the budget
Commodity prices and world scenario
The Indian coarse grain (Corn and Sorghum) prices are somewhat stable, but the supplies are tight. Indicative prices for some varieties at Mandi’s were:
Corn
Hybrid Yellow Variety: Rs.4600 ($106) per MT
Kesari: Rs.6150 ($141) per MT
Local: Rs.5655 ($130) per MT
Yellow: Rs.4960 ($137) per MT
The above prices are for Mandi delivery.
The prices in US are going up. Corn deliveries in May 05 closed at $2.17 per bushel ($85.41 per MT) in CBOT, averaging about $100 – 102 FOB price from US Gulf, a little higher than last week. The price for July delivery was $2.242 per bushel ($88.24 per MT).
As per the USDA baseline data projections for 2014, US will dominate the world corn market and its share is expected to grow to nearly 73 percent by the end of the decade. Argentina will be the second largest exporter as its economy will expand and investments will be more and corn area will also increase. China’s corn exports will decline and it will become a net importer by 2007/08. There will be some regional differences within China as Northern China will be corn surplus and southern china corn deficient. Non EU eastern European countries will also be in the market, because of higher investment in agriculture and increased economic openness.
Growth in coarse grains trade will be strongly linked to expansion of livestock activities in regions unable to meet their own forage/feed needs, particularly North Africa, the Middle East, and East/Southeast Asia.
World coarse grain trade is expected to grow by about 29 million tons during the decade. About two-thirds of global supply is used as animal feed, although industrial uses such as starch, ethanol, and malt production are increasing. Food use of coarse grains, concentrated in parts of Latin America, Africa, and Asia, has generally declined as consumers shift consumption toward wheat, rice, and other foods as their incomes rise.
The world of biotechnology
This week saw hectic activity in the agri-biotech sector world over.
Brazil' congress voted this week and approved the law which will legalize the sale of biotech seeds in the largest country in Latin America. The law clears the way for rules to be set that would allow companies to sell genetically modified seeds in Brazil.
The modified seeds were banned in Brazil, but their use has been widespread for years by Brazilian farmers who use cloned or smuggled versions of the Monsanto’s popular Roundup Ready seeds (soybean) to cut production costs.
In India, The Genetic Engineering Approval Committee (GEAC) approved commercial cultivation of six new varieties of genetically-modified (GM) Bt cotton hybrids for the northern region by Maharashtra Hybrid Seeds Company Ltd (Mahyco), Rasi Seeds Private Ltd and Ankur Seeds.
The new varieties include MRC-6301 and MRC-6304 of Mahyco, RCH-134 and RCH-138 of Rasi Seeds and Ankur-651 and Ankur-2534 of Ankur Seeds.
A total of 10 Bt cotton hybrids are now approved for commercial cultivation in India. The first varieties to be approved were Mech-162, Mech-184 and Mech-12 of MAHYCO in 2002. In 2003, RCH-2 of Rasi Seeds was approved. The above approvals were for cultivation in Central and Southern India, while some of the varieties did find way to North India and were sown in 2004.
The new varieties can now be sown by cotton growers of Punjab, Haryana and Rajasthan in Kharif season of 2005.
Within Europe, Germany has also approved cultivation of biotech corn and it is expected that in 2005 more farmers will grow GM corn.
The German genetech law, which came into effect in February 2005, requires farmers to report the exact location of GMO fields, field size and the GMO trait to a national public register, the Standortregister. It is expected that about 1000 hectares of land will be under biotech corn in 2005, significantly up from 300 hectares in 2004.
Since there are no GMO varieties yet approved for planting in Germany, seed producers have to source seeds from those approved for use in Spain. Based on the German seed law requirement, seed producers need to obtain a marketing permit for these Spanish varieties from the German Federal Seeds Register (BSA), which is under the supervision of the Federal Ministry of Consumer Protection, Food and Agriculture (BMVEL). The permission was finally granted on 24 Feb 2005.
Spain is the only country in the European Union to grow GMO maize commercially and production of the pest-proof crop is growing rapidly. Spain's farmers want all the biotech they can lay their hands on.
In 2004, 60,000 hectares was under biotech corn out of the total of 480,000 hectares, as per the estimates given by farmers union.
As per the farmers, the biotech seeds cost 10 to 15 percent more than conventional seeds, the higher prices gives better profit and saves money and effort on pesticides.
Nearly all maize grown in Spain is for animal feed and there is no price difference between GMO and conventional maize.
The U S Grains Council in an effort to provide information about biotechnology and create awareness about biotechnology has produced streaming videos, which highlight the realities of the U.S. grain handling system and how this system interacts with the widespread use of biotechnology and genetically modified production tools.
The videos can be seen using the following links
Biotechnology, Politics & the Public
http://www.grains.org/grains/galleries/videos/Politics.wmv
Biotechnology & Hunger: Feast or Famine?
http://www.grains.org/grains/galleries/videos/HungerRevised.wmv
Biotechnology & Nutrition: Safe or Toxic?
http://www.grains.org/grains/galleries/videos/Nutrition.wmv
Biotechnology & the Environment: Transgenes Out of the Box
http://www.grains.org/grains/galleries/videos/Environment.wmv
Biotechnology & Farmers: Do They Really Want It?
http://www.grains.org/grains/galleries/videos/Farmers.wmv
Indian agriculture and the budget
While the budget was announced in the Parliament on Feb 28, 2005, it seems Agriculture was one sector which did not receive any benefit directly. Some quick takes:
1. The income tax rates have been aligned and reduced; it will make more money available for spending which will give a boost to the retail sector. Duty on Fast Moving Consumer Goods (FMGG) has been brought down, making imported goods cheaper.
2. Horticulture mission proposed: Fruits, vegetables, flowers are perishable commodities and India loses more due to lack of infrastructure. Rs.6300 million ($144 million) are allocated for the mission.
3. Agriculture diversification will be a focus and policies will be drafted for fruits, vegetables, flowers, dairy, poultry and fishery development.
4. Development and strengthening of agriculture marketing infrastructure grading and standardization. Aim is to introduce large investment from private, cooperative sector and setting up agri markets, marketing infrastructure and support services such as grading and standardization and quality certification. Assistance for National Agricultural Bank for Rural Development (NABARD) and National Co-op Dev Corporation (NCDC) will be made available. Rs.720 million ($16.55 mill) allocated.
5. Export subsidy on food grains very small. No export of food grain possible.
6. Increase is excise duty of molasses to Rs.1000 per ton ($22.98 per ton). This will adversely affect the cattle feed industry and increase cost of production of cattle feeds. Also for those buying molasses for manufacture of ethanol, it will be an expensive input, thus increasing the cost of ethanol.
7. Custom duty of molasses and ethyl alcohol reduced from 15% to 10%.
8. Custom duty on refrigerated vans reduced from 15% to 10%.
9. Duties of agri commodities have not been changed.
If you some comments and are willing to share the same with our readers, do send the same to us.
Regards
Amit Sachdev
Representative
U S Grains Council
India
E mail: bluecross303@gmail.com
The Indian coarse grain (Corn and Sorghum) prices are somewhat stable, but the supplies are tight. Indicative prices for some varieties at Mandi’s were:
Corn
Hybrid Yellow Variety: Rs.4600 ($106) per MT
Kesari: Rs.6150 ($141) per MT
Local: Rs.5655 ($130) per MT
Yellow: Rs.4960 ($137) per MT
The above prices are for Mandi delivery.
The prices in US are going up. Corn deliveries in May 05 closed at $2.17 per bushel ($85.41 per MT) in CBOT, averaging about $100 – 102 FOB price from US Gulf, a little higher than last week. The price for July delivery was $2.242 per bushel ($88.24 per MT).
As per the USDA baseline data projections for 2014, US will dominate the world corn market and its share is expected to grow to nearly 73 percent by the end of the decade. Argentina will be the second largest exporter as its economy will expand and investments will be more and corn area will also increase. China’s corn exports will decline and it will become a net importer by 2007/08. There will be some regional differences within China as Northern China will be corn surplus and southern china corn deficient. Non EU eastern European countries will also be in the market, because of higher investment in agriculture and increased economic openness.
Growth in coarse grains trade will be strongly linked to expansion of livestock activities in regions unable to meet their own forage/feed needs, particularly North Africa, the Middle East, and East/Southeast Asia.
World coarse grain trade is expected to grow by about 29 million tons during the decade. About two-thirds of global supply is used as animal feed, although industrial uses such as starch, ethanol, and malt production are increasing. Food use of coarse grains, concentrated in parts of Latin America, Africa, and Asia, has generally declined as consumers shift consumption toward wheat, rice, and other foods as their incomes rise.
The world of biotechnology
This week saw hectic activity in the agri-biotech sector world over.
Brazil' congress voted this week and approved the law which will legalize the sale of biotech seeds in the largest country in Latin America. The law clears the way for rules to be set that would allow companies to sell genetically modified seeds in Brazil.
The modified seeds were banned in Brazil, but their use has been widespread for years by Brazilian farmers who use cloned or smuggled versions of the Monsanto’s popular Roundup Ready seeds (soybean) to cut production costs.
In India, The Genetic Engineering Approval Committee (GEAC) approved commercial cultivation of six new varieties of genetically-modified (GM) Bt cotton hybrids for the northern region by Maharashtra Hybrid Seeds Company Ltd (Mahyco), Rasi Seeds Private Ltd and Ankur Seeds.
The new varieties include MRC-6301 and MRC-6304 of Mahyco, RCH-134 and RCH-138 of Rasi Seeds and Ankur-651 and Ankur-2534 of Ankur Seeds.
A total of 10 Bt cotton hybrids are now approved for commercial cultivation in India. The first varieties to be approved were Mech-162, Mech-184 and Mech-12 of MAHYCO in 2002. In 2003, RCH-2 of Rasi Seeds was approved. The above approvals were for cultivation in Central and Southern India, while some of the varieties did find way to North India and were sown in 2004.
The new varieties can now be sown by cotton growers of Punjab, Haryana and Rajasthan in Kharif season of 2005.
Within Europe, Germany has also approved cultivation of biotech corn and it is expected that in 2005 more farmers will grow GM corn.
The German genetech law, which came into effect in February 2005, requires farmers to report the exact location of GMO fields, field size and the GMO trait to a national public register, the Standortregister. It is expected that about 1000 hectares of land will be under biotech corn in 2005, significantly up from 300 hectares in 2004.
Since there are no GMO varieties yet approved for planting in Germany, seed producers have to source seeds from those approved for use in Spain. Based on the German seed law requirement, seed producers need to obtain a marketing permit for these Spanish varieties from the German Federal Seeds Register (BSA), which is under the supervision of the Federal Ministry of Consumer Protection, Food and Agriculture (BMVEL). The permission was finally granted on 24 Feb 2005.
Spain is the only country in the European Union to grow GMO maize commercially and production of the pest-proof crop is growing rapidly. Spain's farmers want all the biotech they can lay their hands on.
In 2004, 60,000 hectares was under biotech corn out of the total of 480,000 hectares, as per the estimates given by farmers union.
As per the farmers, the biotech seeds cost 10 to 15 percent more than conventional seeds, the higher prices gives better profit and saves money and effort on pesticides.
Nearly all maize grown in Spain is for animal feed and there is no price difference between GMO and conventional maize.
The U S Grains Council in an effort to provide information about biotechnology and create awareness about biotechnology has produced streaming videos, which highlight the realities of the U.S. grain handling system and how this system interacts with the widespread use of biotechnology and genetically modified production tools.
The videos can be seen using the following links
Biotechnology, Politics & the Public
http://www.grains.org/grains/galleries/videos/Politics.wmv
Biotechnology & Hunger: Feast or Famine?
http://www.grains.org/grains/galleries/videos/HungerRevised.wmv
Biotechnology & Nutrition: Safe or Toxic?
http://www.grains.org/grains/galleries/videos/Nutrition.wmv
Biotechnology & the Environment: Transgenes Out of the Box
http://www.grains.org/grains/galleries/videos/Environment.wmv
Biotechnology & Farmers: Do They Really Want It?
http://www.grains.org/grains/galleries/videos/Farmers.wmv
Indian agriculture and the budget
While the budget was announced in the Parliament on Feb 28, 2005, it seems Agriculture was one sector which did not receive any benefit directly. Some quick takes:
1. The income tax rates have been aligned and reduced; it will make more money available for spending which will give a boost to the retail sector. Duty on Fast Moving Consumer Goods (FMGG) has been brought down, making imported goods cheaper.
2. Horticulture mission proposed: Fruits, vegetables, flowers are perishable commodities and India loses more due to lack of infrastructure. Rs.6300 million ($144 million) are allocated for the mission.
3. Agriculture diversification will be a focus and policies will be drafted for fruits, vegetables, flowers, dairy, poultry and fishery development.
4. Development and strengthening of agriculture marketing infrastructure grading and standardization. Aim is to introduce large investment from private, cooperative sector and setting up agri markets, marketing infrastructure and support services such as grading and standardization and quality certification. Assistance for National Agricultural Bank for Rural Development (NABARD) and National Co-op Dev Corporation (NCDC) will be made available. Rs.720 million ($16.55 mill) allocated.
5. Export subsidy on food grains very small. No export of food grain possible.
6. Increase is excise duty of molasses to Rs.1000 per ton ($22.98 per ton). This will adversely affect the cattle feed industry and increase cost of production of cattle feeds. Also for those buying molasses for manufacture of ethanol, it will be an expensive input, thus increasing the cost of ethanol.
7. Custom duty of molasses and ethyl alcohol reduced from 15% to 10%.
8. Custom duty on refrigerated vans reduced from 15% to 10%.
9. Duties of agri commodities have not been changed.
If you some comments and are willing to share the same with our readers, do send the same to us.
Regards
Amit Sachdev
Representative
U S Grains Council
India
E mail: bluecross303@gmail.com
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