July 18, 2002 Recent News
Surveying the crowded (nutrition) bar scene
US farm bill/Asia: limited impact on corn trade in Asia
U.S. farmers cut corn plantings 0.1%, soy acres little changed
Farmers are planting more biotech crops
Russia may turn its back to US corn and soy exporters
Starlink detected in international food aid supplies
New GM food rules backed by parliament; EU labeling: US "losing dollars 300M a year"
New corn shows promise for reducing insecticide use
Surveying the crowded (nutrition) bar scene
Significant advancements in grab-and-go roadside food fare have been made as witnessed by the avalanche of nutrition bars available at truck stops where they often have a dominant position. In 2000, Americans spent $821 billion on food, in all forms. By 2010, it will be $1.2 trillion according to the US Dept. of Agriculture. Nutrition bars are here because they provide speed and ease of preparation, driving factors in food purchase decisions. Bars fit for lunch boxes, a fast on-the-bus breakfast, and after-school snacks. The portability and one-handed ease with which they can be consumed makes them prime auto menu items. Another factor is raising consumer awareness of the link between diet and health. The total market for functional foods is $1.4 billion, increasing at about 14%/yr according to research firm Mintel. But the market did not take off until 1999 when the product broke out of the "pressed-silage" taste and hit $1 billion. The big players moved in, and Kraft bought Balance Bar in 2000 for $268 million. Nestle followed by acquiring PowerBar for $375 million. Kellogg's Krave is part of a new niche aimed at women, and children are also getting their share of attention as consumers. The next phase is predicted to be nutrition gels, even easier to eat on the run. Just squeeze and goo, er, go.
(Extracted from Food Technology June 1,2002)
US farm bill/Asia: limited impact on corn trade in Asia
Despite the fact that the new US farm bill will make US corn more competitive globally, Asian consumers will likely not take advantage. Asia's corn purchasing patterns will be shaped by the demand for meat, this article says. At present, about half of US corn exports go to Asia, primarily to Japan, South Korea and Taiwan, which use it in their livestock industry. Japan imports about 15 million tons of corn a year, 95% of it from the US. Taiwan, which imports 4.5 million tons, uses the US for 98% of its corn. South Korea imports about 40% of the over eight million tons it needs from the US and 50% from China. Traders in Japan do not see any great increase in purchases of US corn even if prices were to fall, but it could ensure loyalty to US corn. South Korea tends to prefer Chinese corn over US corn, in part because of the price and geographical proximity. It is expected that China will be the chief beneficiary of increased consumption of corn in South Korea, not the US. Some Asian traders expect China's corn exports to reach 8 million tons this year, about 33% above last year, because of Chinese export subsidies. Another article reports that the Association of Philippine Feedmillers (FAFMI) bought 15,338 tonnes of corn from China to meet a corn supply shortfall. The Philippines produces an average of 4.5 million tons of corn annually, about a million tons short of the feedmilling industry's requirements. (Dow Jones Commodities Service 26 Jun 02) Chinese corn is also reported to be winning back the Malaysian market, which it lost to Argentina last year.
(Reuters News 1 Jul 02) (Extracted from Dow Jones Commodities Service June 21,2002 )
U.S. farmers cut corn plantings 0.1%, soy acres little changed
US farmers have planted more corn than earlier expected, with Iowa and South Dakota growers using good weather to increase sowings. In other parts of the Midwest, plantings have been reduced because of heavy rains. Farmers planted 78,947 million acres of corn this spring, down 0.1% from intentions in March but up 4.2% over last year, according to the USDA. Soybean plantings were pegged at 72,993 million acres, an increase from intentions in March but down from last year's 74.105 million acres last year, the second biggest crop ever. Larger than expected corn plantings, may mean a larger harvest. The USDA says 34% of all corn plantings were genetically altered to resist bugs or disease, up from the 32% planned in March and above the 26% last year. About 75% of all soybean plantings were gene-altered, up from 74% planned in March and up from 68% last year. About 60,085 million acres were planted in all varieties of wheat, up a bit from that expected in March and above the 59,617 million planted a year ago. Spring wheat was planted on 15,963 million acres, up from both expectations in March and from that planted last year. Durum wheat was planted on 2,760 million acres, a drop from March estimates and from last year. Corn stockpiles on farms and in warehouses on June 1 were at 3,594 billion bushels, down by 8.4% from last year; soybean supplies were down 3.4% to 684 million bushels; and wheat was down 12% to 772 million bushels over last year.
(Extracted from Bloomberg News June 28, 2002)
Farmers are planting more biotech crops
The number of acres in the United States planted in corn is up, and the number of acres planted in soybeans and corn has declined. There are 78.9 million acres of corn grown in the U.S., an increase of 4% over the last crop year. Thirty-four percent of the corn acreage is planted in biotech varieties compared to 26 percent last year according to the US Dept of Agriculture's annual planting survey. Soybean acreage is down to 72.9 million acres from 74.1 million acres planted during the last crop year. The number of biotech soybean acres is up to almost 55 million acres from 50 million in 2001. Cotton acreage is also down from 15.7 million acres last year to 14.4 million acres this year. However, the biotech acreage has increased from 69 percent to 71 percent. Monsanto seed or seeds with licensed Monsanto traits, account for the majority of the biotech crops planted in the U.S. Wheat acreage has increased by one percent to 60.1 million acres, but no biotech wheat is commercially grown.
(Extracted from St. Louis Post-Dispatch, June 29, 2002)
Russia may turn its back to US corn and soy exporters
Speaking at the Russian Chamber of Industry's committee for agriculture meeting, the First Deputy Agricultural Minister said Russia may stop buying corn and soy from the US on October 1, 2002, when rules go into effect on state registration of GM products. According to the minister, in the US, "all grain is gathered in one elevator," and it is impossible to determine what is registered in Russia and what is not. The country also plans to raise the question of meat produced from cattle fed on grain not registered in Russia.
(Extracted from RosBusinessConsulting Database, July 3, 2002)
Starlink detected in international food aid supplies
The Bolivian Forum on Environment and development (FOBOMADE) reported that tests it commissioned on a food sample from the U.S. Agency for International Development (USAID) detected the presence of Starlink, a genetically modified corn that is approved for animal consumption only. According to the Genetically Engineered Food Alert coalition, this is the first time Starlink has been found outside of the U.S., Japan or Korea since it was originally detected in August 2000. According to GE Food Alert, the testing effort examined samples between September 2001 and June 2002. The dates of the samples suggest that the food aid is still in warehouses and may be planted this year in Nicaragua and Guatemala. "While working to alleviate famine and drought, the World Food Program and USAID must ensure that genetically engineered crops do not threaten the health, local agriculture and environment of people in the countries they are trying to help, " said Larry Bohlert, director of FoE's Health and Environment Programs.
(Extracted from Pesticide & Toxic Chemical News, 17 June 2002)
New GM food rules backed by parliament; EU labeling: US "losing dollars 300M a year"
The European Parliament voted on July 3 to back stringent new labeling rules for GM food. The plans, which still need approval of the EU governments, would give Europe the most stringent labeling rules in the world. The rules would also further sour relations with the US, which is already threatening legal action over the four-year moratorium on approving new GM crops. Thus far, the US says it has lost exports worth about 300 million a year because GM crops grown in the US are not approved by the EU. The newly passed measure would cut the proposed threshold for trace amounts of GM ingredients in food in half to 0.5%. The EC says the amendments will make the legislation difficult to implement. (Associated Press Newswires 3 Jul 02) Several US food processors have been fighting the measure. Unilever, Nestle and Kraft Foods are among companies saying the labels would stigmatize products and confuse people. Biotech seed producers also oppose the plan, and the US government has threatened to contest the measure to the World Trade Organization as a barrier to trade, if it should pass.
(Extracted from Bloomberg News, and The Financials Times 2 Jul 02)
New corn shows promise for reducing insecticide use
A new type of biotech corn close to federal approval could radically decrease the use of insecticides used to kill corn rootworms. This pest costs farmers an estimated $1 billion each year in crop losses. The new GM corn is a very environmentally friendly product. A report released in June by the National Center for Food and Agriculture Policy, estimates the new crop could cut insecticide use as much as 14 million pounds a year. In comparison, BT Corn, now on the market, which is toxic to the European corn borer, has reduced insecticide usage by only 2.6 million pounds. Corn is the largest crop in the U.S. and about 30% of it is treated with insecticides, primarily organophosphates, a class of chemicals under review by the EPA out of concern for their human health impacts. Biotech critics are concerned that gene-altered corn will become so popular that insects will become widely resistant to the toxin the corn produces. The FDA and the EPA have cleared the corn for use in food, and Japan has approved it for import. The corn still needs final approval from the EPA and the USDA before it can be grown commercially in the United States.
(Extracted from the Des Moines Register, 07 July 2002)
