Commodity prices and storage
As the harvest in US progressed and reports suggest about 65% of the corn as harvested, the prices have tended to come down. Dec corn at CBOT was reported at $1.97 per bushel (($77.62 per MT), lower by about $1.78 per MT from last week. The FOB value for Dec corn was $101 per MT. For more details click on the link below.
http://www.grains.org/buying/market_perspectives/mp_10-28-05.pdf
In India, though the harvest is in full swing, but the corn prices are still higher. The Red corn variety available in Rajasthan, parts of Uttar Pradesh and parts of Andhra Pradesh was selling at Rs.6030 ($135) per MT. The yellow variety which is preferred by the poultry and cattle sector was selling at Rs.5500 – Rs.6170 ($123 - $138) per MT at the market place. The spot prices in Nizamabad (Andhra Pradesh) are reported at Rs.5387 ($121) per MT, while in Davangere (Karnataka) the prices were reported at Rs.5315 ($119) per MT.
In most of the south Indian markets the corn which is coming into the markets has high moisture content and is being sold at a discount. With more rains in the coastal areas of Andhra Pradesh, Tamil Nadu and also in parts of Karnataka storage of corn could pose a major problem in these areas. Poultry industry would prefer corn at a moisture content of 11- 12% as it can be stored easily. Corn with high moisture, when stored in bags, without any aeration tends to spoil due to presence of a fungus and the toxin Aflatoxin, which is harmful for poultry, cattle and humans alike.
The inflation hit a high of 4.71% last week due to increased prices of corn, gram, fruits, vegetables and manufactured items. As per RBI if the current trend of high prices continues it will be difficult to reign in the inflation at 5.5%, the RBI set barrier. Last year same time the inflation was 8%.
No Avian Flu, but awareness is the key
There is no bird flu in India and Government of India has set the system in motion of surveillance and testing for avian flu. Poultry Diagnostics and Research Centre (PDRC) — an autonomous research and diseases surveillance wing of the Venkateshwara Hatcheries (VH) Group has signed and agreement with Lasher Associates Inc, US, and Bombay Natural History Society (BNHS) for testing of migratory birds for bird flu. On the other side the Department of Animal Husbandry, Ministry of Heath, Ministry of Environment and forest are all coordinating the efforts on preparedness for the eventuality.
As per FAO, consumer responses to potential bird flu outbreaks are already having a disruptive impact on industries in Europe and beyond. In Europe the reaction has been mixed, for example in Germany there has been no change while consumption of poultry in Italy has declined by 40 percent. India learnt a bitter lesson in early 2004 when the consumption of eggs and chicken dropped due to panic only and the industry suffered a loss of over Rs.3000 crores ($675 million). At present there are no reports of any demand drop in Delhi market.
The market receives about 120 vehicles a day (96,000 to 100,000 birds) a day. Delhi’s demand is about 240,000 – 250,000 birds / day and almost 40% comes to the Delhi Poultry Market.
According to FAO, recent outbreaks of transboundary diseases and the imposition of disease-related export restrictions had an immediate impact on global meat trade in the 2004/2005. International meat prices, as represented in the FAO meat price index, which is calculated using trade-weighted indicative international prices, have risen to 10-year highs.
FAO has reminded consumers that avian influenza is not a food-borne disease and that the bird flu virus is killed by the heat of normal cooking. "There is no risk of getting avian influenza from properly cooked poultry and eggs." It is duty of the government and the industry to create awareness amongst the consumers who consume poultry meat and eggs and give this message.
http://www.fao.org/newsroom/en/news/2005/108286/index.html
It is also for the consumers to be aware and demand a clean, hygienic product from the industry and shops which sell chicken. Regulation of live markets would be a good point to start and Delhi Agricultural Marketing Board (DAMB) has already started its cleanliness drive, much before the avian flu fear can up. Plans are afoot to set up a state of the art poultry processing plant at live market.
But before that happens, a clean shed for the poultry slaughter has been provided, a security gate and room for the veterinarian have been erected. The veterinarian, on deputation from the Municipal Corporation of Delhi or Delhi Government will be responsible for ante-mortem and post-mortem of the poultry birds slaughtered here. A barricade has been erected to check any unauthorized entry into the premises.
India does not have any bird flu and this can be an advantage for the Indian poultry industry. Japanese government has cleared some of the poultry processing plants in India. Egg powder from India has already created a niche in the Japanese market.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 31, 2005
Monday, October 31, 2005
Saturday, October 22, 2005
Of commodity prices and bird flu; Technologies that can help; Poultry industry can grow faster if supported
Of commodity prices and bird flu
In the US the harvest is proceeding and about 49% of the crop has been harvested. The prices are going down slowly. Dec corn on 21 Oct, closed at $2.015 per bushel ($79.40 per MT). a little lowerthan last week (Oct 14) close of $2.035 per bushel ($80.18 per MT). The FOB value (US Gulf) was reported at $104 per MT.
For more details follow the link
http://www.grains.org/buying/market_perspectives.html
In India the arrivals of corn are still slow. Reports in a section of press indicate a higher maize production in Andhra Pradesh, while market reports do not support the argument. Arrivals in most of the markets are very slow except in Cuddaph, where the arrivals were over 500 tons on Oct 21. The price was Rs.5890 ($132) per MT. The spot prices in Nizamabad were reported at Rs.5490 ($123) per MT.
Prices in Bihar are showing a rising trend and stocks are depleting. Rannebannur, in Karnataka saw a spurt in arrivals, crossing over 3500 tons on Oct 21 with average prices at Rs.5050 ($113) per MT. While in Davangere the arrivals were about 500 tons and the price in the market was reported at Rs.4420 ($100) per MT. The Spot prices in Davangere however were hush higher at Rs.5580 ($125) per MT.
Due to excessive rains in the easten part of the country, severe damage to winter crop has been reported, specially in areas of West Bengal. Even coastal areas of Orissa, Andhra Pradesh have received heavy rainfall.
On the other side, to fight the menace of Bird Flu, a global poultry association, under the name of International Poultry Council (IPC) has been formed. Members include Argentina, Brazil, China, European Union, Mexico, Russia, Thailand and the United States. IPC will work for the common good of the poultry industry on a worldwide scale.
Delegates adopted a charter agreement whose vision and mission statements and list of objectives lays out an ambitious program under which the world’s poultry industries may work cooperatively to resolve issues that affect them all.
List of objectives include provisions to encourage uniform and science-based international sanitary and marketing standards for poultry, to strengthen ties to international animal disease and food safety organizations to name a few.
Even though the organization is brand new, the IPC’s first order of business will be to launch a campaign to dispel the myriad myths and rumors that have come out of the spreading epidemic of highly pathogenic avian influenza (HPAI), or bird flu, which has killed scores of people in Asia and has spread into Russia and, more recently, Europe.
Technologies that can help
Biotechnology as a tool to help the farmers realize the benefits and lower the costs, a positive impact on the environment and the people is one example how technology can help the mankind. Another example is the conversion of corn into bio fuel and bio plastics.
Mankind has been dependent of non renewable resources for long and it is time to realize that these resources are limiting the growth of some economies. With the help of technologies, it will be possible for many countries to use renewable resources and revitalize their ailing economies and environments. Countries like Japan, Taiwan and US have already realized this and have passed legislations and are making use of corn based plastics. But the major problem is in the developing countries where environment degradation due to petroleum based packaging material is posing a major threat.
Companies like Walmart in US are going green and moving towards a more environmentally sensitive product packaging, beginning with containers of strawberries, cut fruit, herbs and brussels sprouts that will be made from corn-based plastic instead of petroleum products.
The first substitution, starting 1st Nov 2005, for four products translates to 114 million clear-plastic clamshell containers used annually. With this change in the packaging, the company will save an estimated 800,000 gallons (3.02 million liters) of gasoline and reduce more than 11 million pounds (4.9 million kg) of greenhouse gas emissions. The company also plans to plans introduce corn based plastic to pack cut vegetables, breads, donuts and also use it in gift cards.
Corn-based plastics decompose in 47 days and can be used for almost every food item, except those that are microwaved. The product breaks down in high heats.
The Corn based plastic called PLA – Poly lactic acid is a product from NatureWorks L.L.C., a Minnesota-based division of Cargill Inc. As per the company, the product is competitively priced with petroleum-based plastic, which is commonly used for soda and water bottles.
A big difference between PLA plastic and its petroleum-based competitors -- beyond its origin in an annually renewable resource -- is PLA's ability to be composted in carefully regulated municipal operations. It is also recyclable, like most other plastics.
Containers and packaging accounted for 32 percent of municipal solid wastes by weight in 2003 in US, according to the Environmental Protection Agency.
There is a need to consider it and it comes at a time of when prices of oil and natural gas, the sources for most plastics, are ratcheting up the cost of plastic materials. Packaging of food products specially is a major issue and in cities like issue Mumbai which was affected by floods could use the green packing material. Hill stations to can follow up and reduce the denuding of the hills and deforestation.
Poultry industry can grow faster if supported
If state governments implement the guidelines issued by the central government on poultry, the sector can grow much faster. Based on the letter sent by Honourable Minister for AGriculture , Shri Sharad Pawar to all the state governments to include poultry under agriculture, Government of Orissa probably is the first state to do so.
In a resolution passed by Department of Agriculture, Government of Orissa on August 10, 2005, poultry farming has been classified as agriculture in the state. The resolution says, “Poultry farmers/entrepreneurs will have access to the same incentives as being offered for agriculture by other concerned departments like Revenue, Finance, Labour, Energy etc”. Such a move will make it possible for farmers to obtain priority lending and incentives from all other departments. This will certainly give a boost to the industry in the state.
If other states can take similar steps, it will help in further growth of the industry, which provides self employment opportunities to the rural youth and contributes heavily in the rural economy. Poultry industry also provides much needed protein in the form of eggs and meat to the rural & urban population and good manure for the farms.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 22, 2005
In the US the harvest is proceeding and about 49% of the crop has been harvested. The prices are going down slowly. Dec corn on 21 Oct, closed at $2.015 per bushel ($79.40 per MT). a little lowerthan last week (Oct 14) close of $2.035 per bushel ($80.18 per MT). The FOB value (US Gulf) was reported at $104 per MT.
For more details follow the link
http://www.grains.org/buying/market_perspectives.html
In India the arrivals of corn are still slow. Reports in a section of press indicate a higher maize production in Andhra Pradesh, while market reports do not support the argument. Arrivals in most of the markets are very slow except in Cuddaph, where the arrivals were over 500 tons on Oct 21. The price was Rs.5890 ($132) per MT. The spot prices in Nizamabad were reported at Rs.5490 ($123) per MT.
Prices in Bihar are showing a rising trend and stocks are depleting. Rannebannur, in Karnataka saw a spurt in arrivals, crossing over 3500 tons on Oct 21 with average prices at Rs.5050 ($113) per MT. While in Davangere the arrivals were about 500 tons and the price in the market was reported at Rs.4420 ($100) per MT. The Spot prices in Davangere however were hush higher at Rs.5580 ($125) per MT.
Due to excessive rains in the easten part of the country, severe damage to winter crop has been reported, specially in areas of West Bengal. Even coastal areas of Orissa, Andhra Pradesh have received heavy rainfall.
On the other side, to fight the menace of Bird Flu, a global poultry association, under the name of International Poultry Council (IPC) has been formed. Members include Argentina, Brazil, China, European Union, Mexico, Russia, Thailand and the United States. IPC will work for the common good of the poultry industry on a worldwide scale.
Delegates adopted a charter agreement whose vision and mission statements and list of objectives lays out an ambitious program under which the world’s poultry industries may work cooperatively to resolve issues that affect them all.
List of objectives include provisions to encourage uniform and science-based international sanitary and marketing standards for poultry, to strengthen ties to international animal disease and food safety organizations to name a few.
Even though the organization is brand new, the IPC’s first order of business will be to launch a campaign to dispel the myriad myths and rumors that have come out of the spreading epidemic of highly pathogenic avian influenza (HPAI), or bird flu, which has killed scores of people in Asia and has spread into Russia and, more recently, Europe.
Technologies that can help
Biotechnology as a tool to help the farmers realize the benefits and lower the costs, a positive impact on the environment and the people is one example how technology can help the mankind. Another example is the conversion of corn into bio fuel and bio plastics.
Mankind has been dependent of non renewable resources for long and it is time to realize that these resources are limiting the growth of some economies. With the help of technologies, it will be possible for many countries to use renewable resources and revitalize their ailing economies and environments. Countries like Japan, Taiwan and US have already realized this and have passed legislations and are making use of corn based plastics. But the major problem is in the developing countries where environment degradation due to petroleum based packaging material is posing a major threat.
Companies like Walmart in US are going green and moving towards a more environmentally sensitive product packaging, beginning with containers of strawberries, cut fruit, herbs and brussels sprouts that will be made from corn-based plastic instead of petroleum products.
The first substitution, starting 1st Nov 2005, for four products translates to 114 million clear-plastic clamshell containers used annually. With this change in the packaging, the company will save an estimated 800,000 gallons (3.02 million liters) of gasoline and reduce more than 11 million pounds (4.9 million kg) of greenhouse gas emissions. The company also plans to plans introduce corn based plastic to pack cut vegetables, breads, donuts and also use it in gift cards.
Corn-based plastics decompose in 47 days and can be used for almost every food item, except those that are microwaved. The product breaks down in high heats.
The Corn based plastic called PLA – Poly lactic acid is a product from NatureWorks L.L.C., a Minnesota-based division of Cargill Inc. As per the company, the product is competitively priced with petroleum-based plastic, which is commonly used for soda and water bottles.
A big difference between PLA plastic and its petroleum-based competitors -- beyond its origin in an annually renewable resource -- is PLA's ability to be composted in carefully regulated municipal operations. It is also recyclable, like most other plastics.
Containers and packaging accounted for 32 percent of municipal solid wastes by weight in 2003 in US, according to the Environmental Protection Agency.
There is a need to consider it and it comes at a time of when prices of oil and natural gas, the sources for most plastics, are ratcheting up the cost of plastic materials. Packaging of food products specially is a major issue and in cities like issue Mumbai which was affected by floods could use the green packing material. Hill stations to can follow up and reduce the denuding of the hills and deforestation.
Poultry industry can grow faster if supported
If state governments implement the guidelines issued by the central government on poultry, the sector can grow much faster. Based on the letter sent by Honourable Minister for AGriculture , Shri Sharad Pawar to all the state governments to include poultry under agriculture, Government of Orissa probably is the first state to do so.
In a resolution passed by Department of Agriculture, Government of Orissa on August 10, 2005, poultry farming has been classified as agriculture in the state. The resolution says, “Poultry farmers/entrepreneurs will have access to the same incentives as being offered for agriculture by other concerned departments like Revenue, Finance, Labour, Energy etc”. Such a move will make it possible for farmers to obtain priority lending and incentives from all other departments. This will certainly give a boost to the industry in the state.
If other states can take similar steps, it will help in further growth of the industry, which provides self employment opportunities to the rural youth and contributes heavily in the rural economy. Poultry industry also provides much needed protein in the form of eggs and meat to the rural & urban population and good manure for the farms.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 22, 2005
Saturday, October 15, 2005
Commodity prices are higher; Biotech crops can help environment; Bio-security, hygienic processing and Bird Flu
Commodity prices are higher
In the middle of October and in the harvest season, the prices of coarse cereals are still rulling higher than normal.
Reports received from various markets indicate fewer arrivals. Bajra (Pearl Millet) arrivals have started in markets of Rajastha, but arruvals are small, indicating higher prices of $135 – 138 per MT. Arrivals of Jowar (Grain Sorghum) have started in Gujarat, Maharashtra, Karnataka and Andhra Pradesh, but smaller amounts. Arrivals of Maize (corn) have started in Andhra Pradesh, but in smaller quanitities. Average prices of yellow corn is $124 - $127 per MT. Spot prices in Nizamabad and Davangere were $124 and $123 per MT.
The farmers in the United States are harvesting the second largest corn crop on record, according to the World Agricultural Supply and Demand Estimates (WASDE report) released by the USDA on Wednesday, October 12. The forecast for U.S. corn production is higher than the previous estimates. The current estimates project the crop size to be 275.79 MMT, higher by 5.56 MMT from Sept 2005 estimates. The report projects that increased supply will be partially absorbed by growth in domestic feed usage (149.23 MMT) and increases in food and industrial uses.
The report also projects the world production of corn at 668.18 MMT in 2005 of which 464.03 MMT will be utilized in feed. The ending stocks will be lower at 111.88 MMT as against last year’s 126.26 MMT.
Chinese corn crop is expected to be 126 MMT of which 100 MMT will be used in feed. China is expected to export about 3 MMT and the ending stocks are expected to be lower by 10.8 MMT at 25.6 MMT from last years 36.4 MMT.
The detailed report can be downloaded from the following link.
http://usda.mannlib.cornell.edu/reports/waobr/wasde-bb/2005/wasde10.pdf
The price of corn in US is under pressure due to higher production reports. Dec corn closed at $2.034 per bushel ($80.05 per MT). March corn closed at $2.1625 per bushel ($85.11 per MT).
Biotech crops can help environment (from Grainnet.com)
A study released on Oct 11, 2005 states “"Since 1996, adoption of biotech crops has contributed to reducing greenhouse gas emissions from agriculture and decreased pesticide spraying,". The adoption of biotech as a tool has helped decreasing the pesticide spraying and environmental footprint associated with pesticide use by 14%, the report says.
The study, "GM crops: the global socio-economic and environmental impact -- the first nine years 1996-2004," reported that biotech crops contributed to significantly reduced greenhouse gas emissions from agricultural practices.
Among the results:
• Farmers reduced fuel consumption by cutting down on the use of machines to apply chemicals and till the soil, saving a total 475 million gallons of fuel
• By not burning this fuel, and by reducing ploughing that allows carbon to escape from the soil, growers cut overall carbon dioxide emissions that could have an impact on global warming. The reduction was equivalent to eliminating 22 billion pounds of carbon dioxide from the atmosphere, which is equivalent to removing 5 million cars from the road for one year. This is one-fifth of cars registered in the United Kingdom
• reduced the volume of pesticide spraying globally by 6 percent since 1996, equivalent to a decrease of 380 million pounds according to the study. That's equivalent to eliminating 1,514 rail cars of pesticide's active ingredient.
• Farm incomes grew by more than $ 27.5 billion, including an $ 8 billion benefit to growers in Argentina. from a combination of enhanced productivity and efficiency gains. This increase in farm income is equivalent to adding 3 percent to 4 percent to the value of global production of the four main biotech crops.
The largest environmental gains from changes in pesticide spraying have been from biotech soybeans and cotton, which have reduced the associated environmental footprint by 19 percent and 17 percent, respectively.
According to the study, the industrialized nations of the United States and Canada, as well as the developing nations of China, South Africa and Argentina, experienced the greatest reductions in the environmental impact of crop production.
"As the world is increasingly focused on the need to reduce greenhouse gas emissions, it is clear biotech crops are already making an important positive contribution to achieving this goal," the report said.
In addition to environmental gains from biotech crops, substantial net economic benefits at the farm level have been realized.
• Herbicide-tolerant soybeans have generated the greatest gains at more than $17 billion in increased income, while biotech cotton farmers improved their income by $6.5 billion in the past nine years.
• Growers in the United States and Argentina have reaped the greatest rewards, each gaining approximately $10 billion in the past nine years, while farmers in China have experienced a $4 billion income increase from planting biotech cotton.
In addition to the significant measurable benefits, valuable indirect benefits that are more difficult to quantify can be credited to biotech crop adoption.
These include increased management flexibility, facilitating reduced tillage practices, reduced production risk and improved crop quality.
More than 8.25 million farmers in 18 countries around the world have adopted biotech crops, and 90 percent of those are resource-poor producers located in developing countries.
This study was compiled based largely on extensive analysis of existing farm-level economic impact data on biotech crops and additional primary analysis of the environmental impact from base data.
While the study showed advantages in US, Argentina, China, India and other developing countries which have adopted biotech crop’s, new reports suggest France has a about 1000 hac of land under biotech corn. Report is several of the newspapers suggest lack of communication between the authorities, farmers and public at large. Most believe this corn will be exported to Spain as biotech corn is growth their and used, but there is no ban on sale in France. Detailed report can be seen at the following link
http://www.fas.usda.gov/gainfiles/200509/146130886.pdf
Bio-security, hygienic processing and Bird Flu
The danger of bird flu lurks around the corner. Though India has no reports of the virus, vigilance is the key. This is the season of migratory birds and farmers in the areas will have to be extra cautious and step up bio-security measures. Using foot baths, sprays and not allowing unwanted people in the sheds would be one way.
Following the threat in Asia, it is perceived that the key to stopping bird flu will be in the rural belts where birds and humans are in much closer contact and wild birds and domestic birds share the land and water. It is a cheek to beak thing in most rural backyard poultries.
An outbreak in these backyard chickens can ruin not only the small farmers, but also large corporations who have large investments.
India, so far is not affected, but it will be necessary to educate the small farmers on bio-security measures and making sure birds are housed inside. It will be one way to minimize the risk.
Indeed, chicken farming in countries such as Vietnam and Cambodia is a haphazard affair compounded by wide ignorance of the danger bird flu poses and the way migratory birds can keep reseeding the virus in areas previously cleared of the disease. The same situation can happen in the backyards of India.
Of the chicken produced in the country (India), only 5% is processed hygienically. In all major and minor towns, on main streets backyard birds (desi) and broilers live side by side in cages waiting for the customer. The birds are dressed (processed) by hand for the customer.
Even in Thailand, which has a vastly more developed poultry industry than its neighbors have, millions of chickens are farmed in still less-than-secure conditions. Eighty percent of birds [in Thailand] are processed safely, but it is the 20% that is causing more worry to the health officials.
It is only in South East Asia’s countryside, where 66 people have died after contracting the virus since late 2003, including 12 in Thailand, health and agriculture experts are concentrating on techniques for safer chicken farming to head off the disease and prevent a pandemic.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 15, 2005
In the middle of October and in the harvest season, the prices of coarse cereals are still rulling higher than normal.
Reports received from various markets indicate fewer arrivals. Bajra (Pearl Millet) arrivals have started in markets of Rajastha, but arruvals are small, indicating higher prices of $135 – 138 per MT. Arrivals of Jowar (Grain Sorghum) have started in Gujarat, Maharashtra, Karnataka and Andhra Pradesh, but smaller amounts. Arrivals of Maize (corn) have started in Andhra Pradesh, but in smaller quanitities. Average prices of yellow corn is $124 - $127 per MT. Spot prices in Nizamabad and Davangere were $124 and $123 per MT.
The farmers in the United States are harvesting the second largest corn crop on record, according to the World Agricultural Supply and Demand Estimates (WASDE report) released by the USDA on Wednesday, October 12. The forecast for U.S. corn production is higher than the previous estimates. The current estimates project the crop size to be 275.79 MMT, higher by 5.56 MMT from Sept 2005 estimates. The report projects that increased supply will be partially absorbed by growth in domestic feed usage (149.23 MMT) and increases in food and industrial uses.
The report also projects the world production of corn at 668.18 MMT in 2005 of which 464.03 MMT will be utilized in feed. The ending stocks will be lower at 111.88 MMT as against last year’s 126.26 MMT.
Chinese corn crop is expected to be 126 MMT of which 100 MMT will be used in feed. China is expected to export about 3 MMT and the ending stocks are expected to be lower by 10.8 MMT at 25.6 MMT from last years 36.4 MMT.
The detailed report can be downloaded from the following link.
http://usda.mannlib.cornell.edu/reports/waobr/wasde-bb/2005/wasde10.pdf
The price of corn in US is under pressure due to higher production reports. Dec corn closed at $2.034 per bushel ($80.05 per MT). March corn closed at $2.1625 per bushel ($85.11 per MT).
Biotech crops can help environment (from Grainnet.com)
A study released on Oct 11, 2005 states “"Since 1996, adoption of biotech crops has contributed to reducing greenhouse gas emissions from agriculture and decreased pesticide spraying,". The adoption of biotech as a tool has helped decreasing the pesticide spraying and environmental footprint associated with pesticide use by 14%, the report says.
The study, "GM crops: the global socio-economic and environmental impact -- the first nine years 1996-2004," reported that biotech crops contributed to significantly reduced greenhouse gas emissions from agricultural practices.
Among the results:
• Farmers reduced fuel consumption by cutting down on the use of machines to apply chemicals and till the soil, saving a total 475 million gallons of fuel
• By not burning this fuel, and by reducing ploughing that allows carbon to escape from the soil, growers cut overall carbon dioxide emissions that could have an impact on global warming. The reduction was equivalent to eliminating 22 billion pounds of carbon dioxide from the atmosphere, which is equivalent to removing 5 million cars from the road for one year. This is one-fifth of cars registered in the United Kingdom
• reduced the volume of pesticide spraying globally by 6 percent since 1996, equivalent to a decrease of 380 million pounds according to the study. That's equivalent to eliminating 1,514 rail cars of pesticide's active ingredient.
• Farm incomes grew by more than $ 27.5 billion, including an $ 8 billion benefit to growers in Argentina. from a combination of enhanced productivity and efficiency gains. This increase in farm income is equivalent to adding 3 percent to 4 percent to the value of global production of the four main biotech crops.
The largest environmental gains from changes in pesticide spraying have been from biotech soybeans and cotton, which have reduced the associated environmental footprint by 19 percent and 17 percent, respectively.
According to the study, the industrialized nations of the United States and Canada, as well as the developing nations of China, South Africa and Argentina, experienced the greatest reductions in the environmental impact of crop production.
"As the world is increasingly focused on the need to reduce greenhouse gas emissions, it is clear biotech crops are already making an important positive contribution to achieving this goal," the report said.
In addition to environmental gains from biotech crops, substantial net economic benefits at the farm level have been realized.
• Herbicide-tolerant soybeans have generated the greatest gains at more than $17 billion in increased income, while biotech cotton farmers improved their income by $6.5 billion in the past nine years.
• Growers in the United States and Argentina have reaped the greatest rewards, each gaining approximately $10 billion in the past nine years, while farmers in China have experienced a $4 billion income increase from planting biotech cotton.
In addition to the significant measurable benefits, valuable indirect benefits that are more difficult to quantify can be credited to biotech crop adoption.
These include increased management flexibility, facilitating reduced tillage practices, reduced production risk and improved crop quality.
More than 8.25 million farmers in 18 countries around the world have adopted biotech crops, and 90 percent of those are resource-poor producers located in developing countries.
This study was compiled based largely on extensive analysis of existing farm-level economic impact data on biotech crops and additional primary analysis of the environmental impact from base data.
While the study showed advantages in US, Argentina, China, India and other developing countries which have adopted biotech crop’s, new reports suggest France has a about 1000 hac of land under biotech corn. Report is several of the newspapers suggest lack of communication between the authorities, farmers and public at large. Most believe this corn will be exported to Spain as biotech corn is growth their and used, but there is no ban on sale in France. Detailed report can be seen at the following link
http://www.fas.usda.gov/gainfiles/200509/146130886.pdf
Bio-security, hygienic processing and Bird Flu
The danger of bird flu lurks around the corner. Though India has no reports of the virus, vigilance is the key. This is the season of migratory birds and farmers in the areas will have to be extra cautious and step up bio-security measures. Using foot baths, sprays and not allowing unwanted people in the sheds would be one way.
Following the threat in Asia, it is perceived that the key to stopping bird flu will be in the rural belts where birds and humans are in much closer contact and wild birds and domestic birds share the land and water. It is a cheek to beak thing in most rural backyard poultries.
An outbreak in these backyard chickens can ruin not only the small farmers, but also large corporations who have large investments.
India, so far is not affected, but it will be necessary to educate the small farmers on bio-security measures and making sure birds are housed inside. It will be one way to minimize the risk.
Indeed, chicken farming in countries such as Vietnam and Cambodia is a haphazard affair compounded by wide ignorance of the danger bird flu poses and the way migratory birds can keep reseeding the virus in areas previously cleared of the disease. The same situation can happen in the backyards of India.
Of the chicken produced in the country (India), only 5% is processed hygienically. In all major and minor towns, on main streets backyard birds (desi) and broilers live side by side in cages waiting for the customer. The birds are dressed (processed) by hand for the customer.
Even in Thailand, which has a vastly more developed poultry industry than its neighbors have, millions of chickens are farmed in still less-than-secure conditions. Eighty percent of birds [in Thailand] are processed safely, but it is the 20% that is causing more worry to the health officials.
It is only in South East Asia’s countryside, where 66 people have died after contracting the virus since late 2003, including 12 in Thailand, health and agriculture experts are concentrating on techniques for safer chicken farming to head off the disease and prevent a pandemic.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 15, 2005
Monday, October 10, 2005
Commodity prices and production update; Biotechnology : Tool to produce healthier fresher products
Commodity prices and production update
Even though the harvest has started in India and small quanities of corn is trinkling in the market yards, the prices of corn are still higher. The prices for some varieties like Deshi Red and Kesari from Gujarat, Rajasthan and Maharashtra are higher and are reported in the range of Rs.6100 – Rs.6220 ($140 - $143) per MT. The highest price for yellow corn was in Gujarat (Rs.6500 - $149) per mt), while the average was around Rs.5500 ($126) per MT.
In most places the crop is delayed due to late rains and the total estimate is about 9.2 – 9.8 MMT in Kharif, while in Rabi the crop is expected to be about 2.4 MMT, limiting the total corn crop at 11.6 – 12.2 MMT for the year 2005-06, against a demand of 13.7 MMT based on the growth of poultry, livestock and starch sector and their requirements.
The corn prices in US are lower as the harvest is moving forward. December corn closed at $79.50 per MT (CBOT) lower by $1.47 per MT from Sept 30. The FOB value for Yellow corn was reported at $97.25 per MT. The freight rates however, are slowly inching up on higher demand and movement of goods.
Biotechnology : Tool to produce healthier fresher products
The corn being bough by you today at the grocery store probably would have less pesticides than the one bought by your mother a decade ago. This is because of the revolution in Biotechnology. The tool has create seeds which are resisiatnt to insects. Seeds are capable of doing what pesticides did once.
Farmers in US are increasingly growing biotech crops and now in EU farmers are adopting the technology as it produces healhier foods having less of pesticides. It is not only the consumer, but also the farmer who benefits as he is exposed to pesticided less number of times, the environment receives less chemicals and with water such a scare commodity in most parts of of the world, any help to reduce chneical contamination would be a welcome step.
In the near future, it will be possible to produce plants which would produce fat free oils and could grow well in stress conditions specially drought.
U S Grains Council has been active in the biotech sector and provding information to the interested groups all over the world and conducting conferences. Fouth in the series, a five day, 2005 Biotech Information Conference starts Oct 10, 2005 and will take the participants through the biotech crop tour, including visits to farms, laboratories and markets. Around 100 participantsincluding government oficials and opinion leaders from around the world will attend the conference including two from India. Dr.G S Toteja, Deputy Director General, Indian Council of Medical Research (ICMR), New Delhi and Dr.P D Dwivedi, Scientist, Indian Toxicology Research Centre (ITRC), Lucknow will represent India and learn about the systems and regulations that have helped the farmers and consumers alike to reap the benefits of the technology. This will also be an opportunity to meet with biotech regulators from other parts of the world including those from Mexico, Africa, Egypt, Saudi Arabia, Bangladesh, Pakistan, Japan, Korea, China, Malaysia, Indonesia to name a few.
In its endeavour to be a provider of factual information, the Council will also be conductiing a Biotech Harvest Tour from Oct 17 – 21, 2005 in this 10th year of biotech, for 18 journalists from 12 countries, incliding one from India. A five-day tour through the Midwest, includes visits to the Chicago Board of Trade, a grain elevator, research and industry facilities and several farms throughout Illinois, Indiana and Ohio. The journalists will observe the management, science and acceptance of agricultural biotechnology in the United States through direct contact with U.S. growers, regulators, academics, researchers and industry.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 10, 2005
Even though the harvest has started in India and small quanities of corn is trinkling in the market yards, the prices of corn are still higher. The prices for some varieties like Deshi Red and Kesari from Gujarat, Rajasthan and Maharashtra are higher and are reported in the range of Rs.6100 – Rs.6220 ($140 - $143) per MT. The highest price for yellow corn was in Gujarat (Rs.6500 - $149) per mt), while the average was around Rs.5500 ($126) per MT.
In most places the crop is delayed due to late rains and the total estimate is about 9.2 – 9.8 MMT in Kharif, while in Rabi the crop is expected to be about 2.4 MMT, limiting the total corn crop at 11.6 – 12.2 MMT for the year 2005-06, against a demand of 13.7 MMT based on the growth of poultry, livestock and starch sector and their requirements.
The corn prices in US are lower as the harvest is moving forward. December corn closed at $79.50 per MT (CBOT) lower by $1.47 per MT from Sept 30. The FOB value for Yellow corn was reported at $97.25 per MT. The freight rates however, are slowly inching up on higher demand and movement of goods.
Biotechnology : Tool to produce healthier fresher products
The corn being bough by you today at the grocery store probably would have less pesticides than the one bought by your mother a decade ago. This is because of the revolution in Biotechnology. The tool has create seeds which are resisiatnt to insects. Seeds are capable of doing what pesticides did once.
Farmers in US are increasingly growing biotech crops and now in EU farmers are adopting the technology as it produces healhier foods having less of pesticides. It is not only the consumer, but also the farmer who benefits as he is exposed to pesticided less number of times, the environment receives less chemicals and with water such a scare commodity in most parts of of the world, any help to reduce chneical contamination would be a welcome step.
In the near future, it will be possible to produce plants which would produce fat free oils and could grow well in stress conditions specially drought.
U S Grains Council has been active in the biotech sector and provding information to the interested groups all over the world and conducting conferences. Fouth in the series, a five day, 2005 Biotech Information Conference starts Oct 10, 2005 and will take the participants through the biotech crop tour, including visits to farms, laboratories and markets. Around 100 participantsincluding government oficials and opinion leaders from around the world will attend the conference including two from India. Dr.G S Toteja, Deputy Director General, Indian Council of Medical Research (ICMR), New Delhi and Dr.P D Dwivedi, Scientist, Indian Toxicology Research Centre (ITRC), Lucknow will represent India and learn about the systems and regulations that have helped the farmers and consumers alike to reap the benefits of the technology. This will also be an opportunity to meet with biotech regulators from other parts of the world including those from Mexico, Africa, Egypt, Saudi Arabia, Bangladesh, Pakistan, Japan, Korea, China, Malaysia, Indonesia to name a few.
In its endeavour to be a provider of factual information, the Council will also be conductiing a Biotech Harvest Tour from Oct 17 – 21, 2005 in this 10th year of biotech, for 18 journalists from 12 countries, incliding one from India. A five-day tour through the Midwest, includes visits to the Chicago Board of Trade, a grain elevator, research and industry facilities and several farms throughout Illinois, Indiana and Ohio. The journalists will observe the management, science and acceptance of agricultural biotechnology in the United States through direct contact with U.S. growers, regulators, academics, researchers and industry.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 10, 2005
Saturday, October 01, 2005
Commodity prices on a high in India; Corn with High Protein and oil developed in US; Ministry of Food Processing Industries issues guidelines for Meat
Commodity prices on a high in India
Though the harvest for corn has already started in parts of Karnataka, the prices of yellow corn and similar varieties which are used by poultry and starch industry continue to be high and rule at Rs.5600 – Rs.5700 ($129 – 130) per MT at the market yards on an average. Add to this the commissions and delivery charges, the price at the end use point is close to Rs.6200 – Rs.6400 ($142 – 147) per MT.
Other coarse grains which can also be used in poultry (Grain Sorghum and Pearl Millet) are also in short supply and the prices at the end of the week were about 25% and 6% respectively higher than corn, putting all the pressure on corn.
Some analysts believe production of corn in India to be lower by 20-25% than last year, due to delayed rains, drought like conditions and later heavy rains at the fag end of the crop season. A correct picture will emerge only after Oct 15th when more arrivals start coming in at the market yards. Major losses are reported from Uttar Pradesh & Rajasthan in the North, Andhra Pradesh in South. There are some gains reported from Karnataka, which are not sufficient to cover the losses in the above states.
Rabi (winter) maize is showing some gains in Tamil Nadu, but with Tamil Nadu consuming about 1.2 MMT of corn a year for broiler and layer sectors and production estimated at 0.45 – 0.6 MMT, it is going to put pressure on Andhra Pradesh and Karnataka to cover the supplies. On one side Government of India has talked about diversification in agriculture and move from wheat and rice to other crops, it has hiked the minimum support price (MSP) for Wheat and Barley by Rs.100 ($2.30) per MT. This would enhance the MSP to Rs.6500 ($149) per MT for wheat and Rs.5500 ($126) per MT for barley.
Major expansion in poultry is predicted in South India, especially layers in Namakkal in Tamil Nadu to the tune of 25% which is going to increase the pressure on corn in South India.
The prices of corn in US are coming down as harvest progresses. December corn closed at $2.055 per bushel ($80.96 per MT), $0.70 per MT lower than Sept 23 closing for Dec 2005 delivery. The freight rates on the other hand are expected to go up in near future.
U S Grains Council officers are conducting a corn crop survey in China and initial reports indicate a 4-5% lower production for the year 2005-06. The production was estimated at 127 MMT, but this figure is being though as too high. Some of the Chinese analysts have predicted that China would soon be a net importer of corn.
Corn with High Protein and oil developed in US
Protein content of corn grain has been doubled by Daniel Gallie, a professor of biochemistry at UC Riverside in the United States. This discovery would significantly add value to the crop and benefit corn producers & humanity alike. It could also provide a cost-effective solution to tackling global hunger.
In the United States, the vast majority of corn – nearly 65 per cent – is used to feed animals for meat production. Much of the remainder is exported to other countries for feeding animals or made into corn sweeteners or fuel alcohol.
Corn, the most widely produced feed grain in the United States, with over 80 million acres of land planted with corn.
Every corn kernel results from a flower on an ear of corn, Gallie explained. Initially the ear produces a pair of flowers for every kernel. But then one of the sister flowers undergoes abortion, resulting in one flower for each kernel.
Gallie's research group has developed technology that essentially rescues the aborted flower, resulting in two kernels that are fused together.
“Despite the fusion, the kernels are not bigger,” said Gallie. “It's basically the same corn, except that it is protein-rich and starch-poor – something that, if applied to sweet corn, would appeal to a large number of weight-conscious people in this country who are interested in low-carb diets and who normally avoid corn in their diets.”
Gallie and his colleagues published their work last year in The Plant Journal. Though their research focused on feed corn, the technology can easily be applied to sweet corn, a sugar-rich mutant strain of regular corn.
The US department of agriculture, the National Science Foundation, and the California Agricultural Experiment Station funded the research.
Ministry of Food Processing Industries issues guidelines for Meat Food Products
Ministry of Food Processing Industries, Government of India has issued guidelines to all State Secretaries, Department of Health, on the Implementation of Meat Food Products Order 1973. The guidelines cover aspects on issue of licences and their renewal, inspection of premises and material and seizure of the unapproved products. This is part of government of India's scheme to promote safe and hygienically producded processed foods.
The guidelines list out the procedures that will need to be followed for issue of license and the rules that would need to be followed by the industry which include among other things – medical fitness certificates of workers at the plant, water analysis report and an undertaking by the manufacturer to obtain HACCP certification within a stipulated time period. The guidelines also indicate that the source of meat would need to be mentioned in the license book and any deviation would result in seizure of the product and issuance of show cause notice to the manufacturer. These guidelines would help the manufacturer enhance the quality of products produced and increase consumer confidence in processed products in the long run.
Ministry of Food Processing Industries also took out an advertisement on Sept 19, 2005 in The Economic Times, providing useful information to the consumers on the value of and promoting processed foods. The slogan is also appropriate ‘ Processed food - really very good’. The advertisement lists five reasons on why processed foods make good sense and a foot note which covers all, ‘What more, with quality guarantee in every pack, you can be sure of it’s goodness’.
By issuing guidelines and advertisements, Government of India is promoting the processed food industry and trying to create confidence amongst the consumers to purchase processed foods without any fear. A commendable step from the ministry indeed, which will help the industry think is terms of more investment in this sector.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 01, 2005
Though the harvest for corn has already started in parts of Karnataka, the prices of yellow corn and similar varieties which are used by poultry and starch industry continue to be high and rule at Rs.5600 – Rs.5700 ($129 – 130) per MT at the market yards on an average. Add to this the commissions and delivery charges, the price at the end use point is close to Rs.6200 – Rs.6400 ($142 – 147) per MT.
Other coarse grains which can also be used in poultry (Grain Sorghum and Pearl Millet) are also in short supply and the prices at the end of the week were about 25% and 6% respectively higher than corn, putting all the pressure on corn.
Some analysts believe production of corn in India to be lower by 20-25% than last year, due to delayed rains, drought like conditions and later heavy rains at the fag end of the crop season. A correct picture will emerge only after Oct 15th when more arrivals start coming in at the market yards. Major losses are reported from Uttar Pradesh & Rajasthan in the North, Andhra Pradesh in South. There are some gains reported from Karnataka, which are not sufficient to cover the losses in the above states.
Rabi (winter) maize is showing some gains in Tamil Nadu, but with Tamil Nadu consuming about 1.2 MMT of corn a year for broiler and layer sectors and production estimated at 0.45 – 0.6 MMT, it is going to put pressure on Andhra Pradesh and Karnataka to cover the supplies. On one side Government of India has talked about diversification in agriculture and move from wheat and rice to other crops, it has hiked the minimum support price (MSP) for Wheat and Barley by Rs.100 ($2.30) per MT. This would enhance the MSP to Rs.6500 ($149) per MT for wheat and Rs.5500 ($126) per MT for barley.
Major expansion in poultry is predicted in South India, especially layers in Namakkal in Tamil Nadu to the tune of 25% which is going to increase the pressure on corn in South India.
The prices of corn in US are coming down as harvest progresses. December corn closed at $2.055 per bushel ($80.96 per MT), $0.70 per MT lower than Sept 23 closing for Dec 2005 delivery. The freight rates on the other hand are expected to go up in near future.
U S Grains Council officers are conducting a corn crop survey in China and initial reports indicate a 4-5% lower production for the year 2005-06. The production was estimated at 127 MMT, but this figure is being though as too high. Some of the Chinese analysts have predicted that China would soon be a net importer of corn.
Corn with High Protein and oil developed in US
Protein content of corn grain has been doubled by Daniel Gallie, a professor of biochemistry at UC Riverside in the United States. This discovery would significantly add value to the crop and benefit corn producers & humanity alike. It could also provide a cost-effective solution to tackling global hunger.
In the United States, the vast majority of corn – nearly 65 per cent – is used to feed animals for meat production. Much of the remainder is exported to other countries for feeding animals or made into corn sweeteners or fuel alcohol.
Corn, the most widely produced feed grain in the United States, with over 80 million acres of land planted with corn.
Every corn kernel results from a flower on an ear of corn, Gallie explained. Initially the ear produces a pair of flowers for every kernel. But then one of the sister flowers undergoes abortion, resulting in one flower for each kernel.
Gallie's research group has developed technology that essentially rescues the aborted flower, resulting in two kernels that are fused together.
“Despite the fusion, the kernels are not bigger,” said Gallie. “It's basically the same corn, except that it is protein-rich and starch-poor – something that, if applied to sweet corn, would appeal to a large number of weight-conscious people in this country who are interested in low-carb diets and who normally avoid corn in their diets.”
Gallie and his colleagues published their work last year in The Plant Journal. Though their research focused on feed corn, the technology can easily be applied to sweet corn, a sugar-rich mutant strain of regular corn.
The US department of agriculture, the National Science Foundation, and the California Agricultural Experiment Station funded the research.
Ministry of Food Processing Industries issues guidelines for Meat Food Products
Ministry of Food Processing Industries, Government of India has issued guidelines to all State Secretaries, Department of Health, on the Implementation of Meat Food Products Order 1973. The guidelines cover aspects on issue of licences and their renewal, inspection of premises and material and seizure of the unapproved products. This is part of government of India's scheme to promote safe and hygienically producded processed foods.
The guidelines list out the procedures that will need to be followed for issue of license and the rules that would need to be followed by the industry which include among other things – medical fitness certificates of workers at the plant, water analysis report and an undertaking by the manufacturer to obtain HACCP certification within a stipulated time period. The guidelines also indicate that the source of meat would need to be mentioned in the license book and any deviation would result in seizure of the product and issuance of show cause notice to the manufacturer. These guidelines would help the manufacturer enhance the quality of products produced and increase consumer confidence in processed products in the long run.
Ministry of Food Processing Industries also took out an advertisement on Sept 19, 2005 in The Economic Times, providing useful information to the consumers on the value of and promoting processed foods. The slogan is also appropriate ‘ Processed food - really very good’. The advertisement lists five reasons on why processed foods make good sense and a foot note which covers all, ‘What more, with quality guarantee in every pack, you can be sure of it’s goodness’.
By issuing guidelines and advertisements, Government of India is promoting the processed food industry and trying to create confidence amongst the consumers to purchase processed foods without any fear. A commendable step from the ministry indeed, which will help the industry think is terms of more investment in this sector.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 01, 2005
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