December 30, 1999

Broker Predicts More Milk Price Volatility. Carl Babler, Wisconsin commodity broker, believes the milk price roller coaster of 1999 will continue into 2000. But that also allows opportunities for milk producers to lock in prices significantly higher than the price support level, he says.

West Canada Market Open to Unique Products. A USDA report says significant opportunities exist in western Canada for food manufacturers who "understand the market and consumer trends...and respond with unique, competitively distinct products" to meet consumer demands. Western Canada consumers tend to be more concerned about health and nutrition than Canadians in the eastern provinces.

Opportunities for U.S. Organic Exporters in Germany. U.S. organic product exporters have opportunities to sell "uniquely American items" in Germany. A USDA report says items that already are familiar to German consumers are the "best prospects."

Ag News Summaries

USDA Not Quite Totally Y2K Compatible. USDA officials Wednesday were working on a list of USDA web sites that may not be available for public access until Jan. 3. Several sites have posted notices that the site will not be available this weekend. For those who regularly access USDA sites, it is advisable to check those sites as soon as possible to determine the Y2K status of those sites.

Lawmakers Rally on Farm Issues. A forum of 14 state lawmakers, many of whom also farm, rallied in Omaha, NE, with about 40 producers to focus on farm issues. The panelists were from Nebraska, Kansas, Iowa, Minnesota, North and South Dakota. THE ASSOCIATED PRESS reports the farmers voiced their support for a number of initiatives aimed at saving family farms. Nine issues were proposed for state legislative attention including banning packer ownership of livestock and pushing for more enforcement of antitrust laws.

China Grows Less Winter Wheat. China's winter wheat acreage is expected to decline 4.4 million acres in 1999 to 58.5 million acres compared with 1998, according to a report by REUTERS that quotes the FUTURES DAILY. Ministry of Agriculture figures show major growing areas had reduced planting poor quality and low-yielding winter wheat. Acreage planted to rapeseed is expected to expand 12% from 1998 to 17.5million acres. 

College Scholarships Being Offered. College students are being encouraged to apply for a scholarship program sponsored by the Chicago Mercantile Exchange and the pork industry. Four $2,500 scholarships will be awarded to outstanding college students who intend to pursue careers in the pork industry. Funding is provided by the CME, and the program is administered by the National Pork Producers Council. For more information on the program, contact Jolynn Fetters at the NPPC, 515/223-3535 or e-mail at fettersj@nppc.org
 

December 29, 1999

U.S. Feeder Cattle Exports to Canada More Than Double. U.S. exports of feeder cattle to Canada under the Northwest Cattle Project reached 105,374 head in the first 11 weeks of the 1999-00 season, more than double the 51,009 total for all of the 1998-99 season. The latest report is from the U.S. embassy in Ottawa and estimates the current value of U.S. feeder cattle exports at $70 million.

Tobacco Farmer Assistance Totals $328 Million. USDA will distribute $328 million to compensate tobacco producers in states that suffered a reduction in tobacco quota or acreage for the 1999 crop year. Quota is established each year based on expected supply and demand.

Wisconsin BST Use Doubles in Four Years. A University of Wisconsin study shows the use of recombinant bovine somatotropin (BST) in the state more than doubled between 1995 and 1999. About 15% of Wisconsin dairy cows now are treated with BST and about 15% of farms have adopted the technology.

Soybeans Withstand Flood Damage.A marker that points to genes responsible for flood tolerance in soybeans has been identified by an Agricultural Research Service scientist. Plants with the marker had a 50% yield advantage after spending the flowering stage in waterlogged soil for two weeks.

Ag News Summaries

Warm Weather Prevails in Ukraine, Russia. USDA reports that unusually warm weather has hit much of the prime winter wheat region of southern Russia and southern and eastern Ukraine. Parts of central and southern Ukraine, the North Caucasus and the Volga Valley have no protective snow cover. In some areas, daily temperatures have been warm enough long enough to cause winter wheat to break dormancy. Roughly one-third of the sown area in Ukraine did not germinate, according to a Ukrainian agricultural official quoted by USDA.

China's Winter Wheat Eludes Cold Weather Damage. Although snow cover has been very light or nonexistent on the North China Plain, low temperatures have been well above the threshold for winterkill for dormant crops and caused no damage to winter wheat, USDA reports. The crop was planted from late September through November with timely rains in October and warmed than normal autumn temperatures aiding germination. In early December, the crop entered dormancy in good condition. Temperatures dropped rapidly after Dec. 15, but no serious damage to the crop has been reported by trade or government sources, USDA says. 

GMO Crop Use May Increase Food Costs. Using genetically modified (GMO) crops in the food system likely will increase handling and processing costs and retail food prices to some extent, a Federal Reserve Bank economist says. REUTERS reports from Chicago that economist Mike Singer says biotechnology and GMO crops hold great promise to improve the environment and better human health. "However, concerns over the safety of these foods and the environmental impact of genetically enhanced crops have risen dramatically in recent months," he says. Labeling and "perhaps additional regulation may increase costs in the food system and, ultimately affect retail food prices."
 

December 28, 1999

USDA Posts Disaster Aid Details on Web Site. USDA has posted a one-page fact sheet on the crop disaster program approved by Congress as part of the appropriations process earlier this year. Sign-up for the aid began Dec. 13 and ends Feb. 25. Producers are urged to find more information at local Farm Service Agency offices or USDA Service Centers.

Chevron, Corn Growers Talk Ethanol. Corn producer representatives met earlier this month in San Francisco with officials of Chevron Corp. The two sides differ on the 2% oxygen requirement for gasoline, but without a waiver of that requirement for California, refiners will have to gear up soon to begin using ethanol by 2003 when MTBE must be phased out.

Canada Agrees to Scale Back Dairy Exports. Canada has agreed to reform its dairy export and import programs to comply with a ruling earlier this year from the World Trade Organization. The ruling found Canada had not lived up to the market access and export subsidy provisions to which it had agreed.

Ag News Summaries

Turkey to Change Ag Subsidy System. Turkish Agriculture Minister Husnu Yusuf Gokalp says his ministry has submitted several draft laws to the cabinet to take initial steps toward reorganizing the country's agricultural subsidy system as promised to the International Monetary Fund, BLOOMBERG NEWS reports from Istanbul, quoting Turkish newspapers. The proposals would establish a supervisory board to coordinate subsidies and guide farmers toward more efficient practices, implement direct subsidies to farmers instead of having the government buy crops at predetermined prices, and building a national inventory of resources for improved agricultural management.

Fukaya Will Attend January WTO Talks. Japan's International Trade and Industry Minister Takashi Fukaya says he will leave Jan. 7 to join European trade ministers trying to achieve an early launch of new global trade talks under the World Trade Organization, KYODO NEWS SERVICE reports from Tokyo. He will travel first to France to visit a recycling facility and then fly to Belgium for the annual ministerial meeting between Japan and the European Union Jan. 11. Japan and the EU hold similar positions on the launch of a new round of trade talks.

India's High Tariff Cuts Wheat Imports. India's wheat stockpiles likely will reach more than three times the desired level by April even with a 50% duty on wheat imports and the use of government stocks, BLOOMBERG NEWS reports. India harvested a record 73 million metric tons last fiscal year. The government imposed the 50% duty Dec. 1 to slow the increase in stocks and support local farm income by curbing inexpensive imports. Consumption of government wheat stockpiles increased 14% to 835,000 tons in October, 850,000 tons in November and that figure possibly could reach 1.2-1.5 million tons per month from December-March.
 

December 27, 1999

Milk Marketing Order Revisions Begin Jan. 1. Revisions to the federal milk marketing order system take effect Jan. 1. The changes were scheduled to be implemented Oct. 1, but legal challenges delayed implementation. Now that the suits have been dropped, USDA will begin operating the market orders under the new system.

Contamination-Related Recalls Continue. A Texas Company has recalled about 180,000 pounds of ground beef because it may contain E. coli. A New Jersey firm is recalling about 17,600 pounds of mousse truffee and peppercorn mousse that may be contaminated with listeria.

Land O'Lakes, Cenex, Farmland in Joint Venture. Land O'Lakes, Cenex Harvest States Cooperatives and Farmland Industries plan to establish an agronomy marketing joint venture company and a closely associated seed marketing structure.

National Producer-Owned Pork Co-op Being Developed. A national producer-owned pork cooperative could be legally incorporated before the new year begins. Membership will be sought within 30-60 days. The co-op is designed to help independent producers gain leverage in negotiating prices and give them the opportunity to become involved in a variety of value-adding business enterprises that coordinate production with consumer needs.

Ag News Summaries

EPA Takes on Farm Runoff. The Environmental Protection Agency's proposed rules on waterway cleanup have come under fire from landowners, congressional Republicans and a top USDA official who say they may be too broad and expensive, THE ASSOCIATED PRESS reports. States would have to commit to clean up some 20,000 bodies of water nationwide – about 40% of all lakes, rivers and streams – and potentially spend tens of millions of dollars. USDA Under Secretary James Lyons complained in a letter to EPA Administrator Carol Browner that the proposed rules "will unnecessarily divert scarce resources to a top-down, process-oriented approach that may not work." President Clinton announced the proposed rules in August. A comment period closes Jan. 20, and EPA hopes to finalize the rules by summer.

USDA Investigating Perdue Farms. USDA is investigating whether Purdue Farms Inc., cheated farmers who grow chickens for the company by overestimating the weight of trucks used to haul the birds, according to THE ASSOCIATED PRESS. "We're looking at several issues," Dan VanAckeren, director of field operations for USDA's Grain Inspection, Packers and Stockyards Administration, says. If Perdue is found to have violated federal law, the matter will be handed over to the Justice Department for possible prosecution. 

Lamy Claims WTO Ruling Fair, Balanced. European Union Trade Commissioner Pascal Lamy says a World Trade Organization panel ruling on a high-profile EU-U.S. dispute is fair and balanced, REUTERS reports from Brussels. The panel rejected complaints by the EU that U.S. use of the so-called Section 301 trade law to impose sanctions violated global trade rules. The panel said aspects of the law challenged by the EU were "not inconsistent" with U.S. WTO obligations. That, says Lamy, "is a fair result, a balanced outcome to a difficult case, but overall it is a victory for the multilateral system." U.S. Trade Representative Charlene Barshefsky said she was "pleased" about the ruling.
 

December 22, 1999

Net Farm Income to Decline Markedly in 2000. USDA forecasts net farm income will total $40.4 billion in calendar 2000, $7.6 billion less than the preliminary total of $48.1 billion for 1999. Plenty of supplies, low prices and government assistance in calendar 1999 make much of the difference. Net cash income is forecast to total $49.7 billion, $9.4 billion less than the comparable figure for 1999.

Grassley Says USDA Not Totally Y2K Ready. Sen. Charles Grassley (R-IA) says USDA is not 100% Y2K ready. USDA had announced Oct. 1 that all 344 of the department's mission-critical computer systems were Y2K compliant, but in a notice, USDA now says five applications contain problems that could cause defects in the way payment histories are recorded, says Grassley.

Harkin Calls for More CRP Activity. Sen. Tom Harkin (D-IA) wants USDA to issue new rules that will improve the continuous signup in the Conservation Reserve Program. He "especially" supports the creation of a continuous signup option for buffer practices.

ASA Urges USDA to Keep the Loan Rate at $5.26. The American Soybean Association wants USDA to maintain the crop year 2000 national average soybean loan rate at $5.26 per bushel to provide an "adequate safety net" for farmers. Agriculture Secretary Dan Glickman is not required to reduce the rate from the present level.

Ag News Summaries

USDA Announces Loans for 1999-Crop Honey. USDA has extended the honey recourse loan program to producers of 1999-crop honey. The recourse loan rate for 1999 is 59 cents per pound for all eligible honey. Producers also must pay a loan service fee of .005 times the gross loan amount of $45 per loan plus $3 for each lot over the first, whichever is smaller. The final date to request a recourse loan on 1999-crop honey is March 31.

Meat Irradiation Rules Start Feb. 22. New rules to allow U.S. meat plants to use low levels of irradiation to kill deadly bacteria on raw ground beef, steaks and pork chops go into effect Feb. 22, USDA aides told REUTERS. The Food and Drug Administration approved irradiation for red meat in December 1997, but USDA took nearly two years to develop regulations. Raw meat treated with irradiation must be packaged with the international radura symbol prominently displayed so consumers know what they are buying.

IBP Meat Sales Increase with Acquisition. IBP Inc., will increase its value-added meat business to 40% of sales by acquiring privately held meat and poultry processors Corporate Brand Foods America, REUTERS quotes a meat analyst as saying. IBP says it agreed to buy CBFA for $261 million plus an assumption of debt. Acquisition of CBFA also ensures IBP will have a more secure and ready market for its meat products; supermarket consolidation has left fewer customers for companies like IBP that supply fresh meat.
 

December 21, 1999

Canadian National-Burlington Merger Sparks Ag Worries. The announced merger between the Canadian National Railway Co. and Burlington Northern Santa Fe Corp. may affect how efficiently grain is transported from Midwest elevators and terminals. Sen. Charles Grassley (R-IA) says the merger "obviously reduces competition to some extent."

Ban on Single Stock Futures Questioned. Two Senate committee chairmen want a detailed study on whether Congress should lift the current ban on single stock futures. There's a risk that those types of instruments will develop in overseas markets if the prohibition continues in the United States, say Sens. Richard Lugar (R-IN) and Phil Gramm (R-TX).

Economic Expansion To Slow in 2000. The U.S. economy continued near a 4% rate of expansion for the third year in 1999, but the increase in gross domestic product (GDP) next year should slow slightly to 3.5%, according to USDA. Also in the latest Agricultural Outlook issue, USDA economists find a wide gap between types of payments made to ensure some minimum standard of living for farm households.

Peanut Growers Get $49 Million in Assistance. Peanut farmers' share of market assistance funds to compensate for low prices is about $49 million. Farmers can sign up for the payments at local Farm Service Agency county offices from Dec. 22-Feb. 21.

Ag News Summaries

Novartis Says Farmers Delay Buying Seed. Farmers are delaying corn and soybean seed purchases for 2000 plantings because of poor commodity prices and the controversy over genetically modified crops, Novartis Seeds Inc. says. Marc Henned, corn marketing manager, in an interview with REUTERS, said there has been a 10-15% delay so far this year in seed bookings compared with last year.

Bush Questions Hunger Report. Texas Gov. George W. Bush doubts that hungry people in his state are as numerous as a federal report says they are. "I'm sure there are some people in my state who are hungry," says Bush. "I don't believe 5% are hungry." THE ASSOCIATED PRESS reports food bank officials say distribution in some areas is 38% higher than 1998 while an 8% increase in contributions has failed to keep pace. "Where can I get hold of Mr. Bush? I'd like him to come visit our food bank to see how empty our shelves are right now. We're scrounging for food," said Amelia Gonzalez, executive director of the Community Food Bank, Victoria, TX.

December 20, 1999

Glickman Defends Meat Safety System. Agriculture Secretary Dan Glickman defends USDA's meat safety inspection system and says Supreme Beef Processing, Inc., failed to meet the salmonella standard on three occasions. Supreme Beef tells REUTERS it will go back to court if USDA tries to shut down its slaughter plant. USDA has given Supreme until Jan. 3 to clean up the plant.

Soybean Growers `Frustrated' With Administration Delay. The American Soybean Association is asking soybean producers to lobby members of Congress to urge immediate action from the White House to implement a soy food assistance program. Millions of people worldwide will go hungry, claims ASA, unless the aid program is activated.

Revenue Crop Protection Now Available in Pennsylvania. Farmers in six Pennsylvania counties are eligible for the "adjusted gross revenue" crop insurance program for the 2000 and 2001 crop years. The program already is available in selected counties in Connecticut, Florida, Idaho, Maine, Massachusetts, Michigan, New Hampshire, Oregon, Rhode Island and Vermont.

PACA Self-Training Course on the Internet. USDA has launched a new Internet program designed to help fruit and vegetable traders understand the provisions of the Perishable Agricultural Commodities Act (PACA). The training course explains legal rights and responsibilities, trade terms, payment requirements and interpretations of federal inspection certificates.

Ag News Summaries

Monsanto in Merger Talks with Swedish Firm. Monsanto and U.S.-Swedish drug maker Pharmacia & Upjohn are in merger talks with an announcement likely today, says REUTERS. The article quotes Swedish daily Dagens Industria. Senior executives from both firms met in London over the weekend. Mickey Kantor, a Monsanto director, told REUTERS the board was looking at alternatives but declined to comment on specifics. Monsanto is under pressure to split its drug and agribusiness units following a decision by Swiss life science group Novartis AG and Anglo-Swedish rival AstraZeneca Plc to mer their agribusinesses to form the world's largest ag chemicals company. 

WTO Postpones Trade Talk Agenda Plans. The World Trade Organization has decided that any specific plans for trade negotiations on agriculture and services be postponed until next year, PRO FARMER reports. The article says since the issue of services remains in limbo, "it leaves individual nations with the latitude to impose taxes on electronic commerce – in effect, nations can tax other nation's web activities if those activities lead to transactions within a nation." 

U.S., EU Agree on GMO Talks Approach. The United States and the European Union have developed plans for talks on genetically modified crops and other advances in food science, REUTERS reports. EU Trade Commissioner Pascal Lamy told reporters the two sides had agreed on a "double framework" for the discussions first proposed earlier this fall. A senior-level group will focus on issues such as approving new genetically modified crop varieties and labeling requirements for food containing genetically modified ingredients. A second group of "senior wise personalities" from both sides will address the issue "in more cultural terms," says Lamy. 

Perdue Farms Denies Workers' Allegations. Perdue Farms has "vehemently" denied allegations the company violated state wage laws, REUTERS reports. Seven Perdue poultry workers, with jobs ranging from cutting up chicken to packaging the meat for sale, filed the lawsuit accusing the Maryland-based company of forcing them to set up and clean up without being paid. Perdue claims the complaints and lawsuit originate not from their own workers but from outside organizations with an agenda. The lawsuit is "a continuation" of the United Food and Commercial Worker's Union to organize Perdue's workforce, the company claims.
 

December 17, 1999

Food Assistance Needs Outpace Supplies. Agriculture Secretary Dan Glickman says people forced to rely on food from charities is growing so rapidly that the charities have had to turn people away because of a short food supply. Food banks, food pantries and other feeding groups face an increasing number of people in need. 

Education Next Step for Irradiation, Says GMA. The Grocery Manufacturers of America says a "high-level consumer education campaign" is the most important next step in getting consumers to accept irradiation of the food supply. USDA has approved the irradiation of meat products. 

USDA Issues Fact Sheet on Debt Set-Aside. USDA has issued a fact sheet on a program designed to better manage farmers' debt in disaster areas. The Farm Service Agency is authorized to consider setting aside some payments to allow the farm to continue operating. 

Scrapie Control Pilot Programs Revised. USDA is proposing a change that would exempt sheep and goat flocks from certain regulatory requirements when the flocks are participating in scrapie control pilot projects. Some animals could remain in the flock to allow alternative "cleanup strategies" to be studied. 

Physicians Group Sues USDA Over Dietary Guidelines. The Physicians Committee for Responsible Medicine is suing USDA and the Department of Health and Human Services, claiming the dietary guidelines are racially based. A USDA spokesperson, while not commenting directly on the suit, says the guidelines allow for alternatives that take into account dietary differences.

Ag News Summaries

Asia Sees Recovery, Inflation. Inflation in Asia in increasing as regional economies recover from the financial crisis, but the tone is "muted," REUTERS reports from Singapore. There is no significant threat for now. Prices are increasing in Hong Kong, Indonesia, the Philippines and South Korea with inflation forecasts showing the greatest upward differential between this year and 2000. 

USDA Will Appeal Texas Beef Case. The federal government will appeal a Texas court ruling that blocked USDA from closing a meat plant that failed food safety tests, REUTERS reports. Several consumer groups have asked USDA to challenge the ruling in a federal circuit court of appeals. The suit has been watched closely as an important test of whether USDA can require a company to comply with tests for salmonella and other harmful bacteria. 

Clinton Seeks to Ease Trade Dispute. President Clinton is looking for ways to ease trade friction between the United States and the 15-nation European Union that contributed to the "collapse" earlier this month of a new launch of global trade talks, THE ASSOCIATED PRESS reports. Clinton was reviewing with EU leaders bitter disputes over EU restrictions on U.S. beef and bananas that pushed the United States to impose stiff retaliatory tariffs this year on nearly $300 million in European Products. Both sides have played down expectations for any breakthroughs on trade.

December 16, 1999

GMOs Caught in Ag Groups' Language. The delicate issue of whether farmers should plant genetically modified crops next spring has gotten caught up in language that has led one farm association to suggest that the National Grain and Feed Association is calling for "legal safeguards to protect grain buyers from the crops being delivered by farmers." NGFA replies that the issue is not a call for legal safeguards but getting country elevator managers to make business and legal decisions based on the peculiar characteristics of their marketing area.

Task Force Recommends Promotion Program Changes. A USDA task force has issued a report calling for greater oversight of agricultural commodity research and promotion programs, the so-called "checkoff" programs. Agriculture Secretary Dan Glickman quickly endorsed all 21 recommendations, some of which must be established through congressional action.

USDA Not Up to Speed on Hog, Pork Price Reporting. USDA's methods for obtaining and reporting hog and retail pork prices have not kept pace with the industry's changes. Funding priorities and a lack of access to data are to blame, says a new General Accounting Office report.

Ag News Summaries

Scientists Map DNA Plant Chromosome Sequences. Scientists say they have completed the sequencing of two chromosomes of a tiny weed, the first major step to a complete gene map of a plant, REUTERS reports from London. The achievement by hundreds of scientists from the United States, Europe and Japan provides new information that will lead to the production of more nutritious and resilient plants.

Glickman Wants to ‘Build' on Seattle. Agriculture Secretary Dan Glickman wants the United States, European Union and Japan as well as other trading partners to pick up where they left off in Seattle when farm trade talks begin next year, REUTERS reports. World Trade Organization members are required under the Uruguay Round trade agreement to begin trade negotiations next year on agriculture and services. "We do not want to start from ground zero," says Glickman. "We made significant progress in agriculture, and we want to build on that progress."
 

December 15, 1999

USDA Approves Irradiation of Meat. USDA has approved the use of irradiation on red meat products such as ground beef, steaks and pork chops. Agriculture Secretary Dan Glickman calls it an "additional tool to help produce even safer food." The National Food Processors Association calls it long overdue.

Farmers File Suit Against Monsanto and Biotech Crops. Six farmers opposed to genetically engineered crops filed suit this week alleging that Monsanto Co. and other firms conspired to take over the seed trade and pushed biotech crops to market without adequate environmental and health testing. Monsanto calls the suit "absolutely baseless." Grower intentions to plant biotech crops next year are "on track" compared to intentions a year ago for the 1999 planting season, the company says.

U.S. Losing Political, PR Battle On International Trade. Sen. Pat Roberts (R-KS) says the United States is losing "both a political and public relations battle and the stakes are enormous" in the attempt to start a new round of international agricultural trade talks within the framework of the World Trade Organization.

Milk Order Reforms Will Begin Jan. 1. USDA made it official Tuesday: federal milk marketing order reforms will be implemented Jan. 1. However, USDA will conduct a hearing to reconsider certain milk prices other than for fluid milk and implement those prices Jan. 1, 2001.

Ag News Summaries

Paraguay suspended from U.S. Meat Shipments. USDA says Paraguay has been suspended from shipping meat and poultry to the U.S. market because of unsanitary conditions, and four other countries have halted voluntarily U.S. exports until they improve food safety measures. REUTERS reports Paraguay was suspended form exporting to the United States because its plants were not following cleanliness procedures in line with those required of U.S. plans and failed to implement procedures to curb E. coli. Guatemala, Honduras, Slovenia and the Dominican Republic voluntarily delisted plants certified to export to the United States.

North Korea Still Faces Food Shortages. Improved harvests and donations have eased North Korea's food shortages, but dire fuel and medicine shortfalls haunt the population as winter descends, says David Morton, United Nations humanitarian coordinator in North Korea. REUTERS reports that the fuel shortages and drastic shortages of medicine and fertilizer mean the health of North Koreans is precarious even though the reclusive Stalinist state has recovered slightly from the 1996-97 peak of its food crisis.

U.S., Mexico Resolve Meat Trade Flap. The United States and Mexico have reached a temporary agreement to resolve a spat over beef and poultry trade that had U.S. industry and government leaders crying foul, REUTERS reports. Mexico notified the United States Monday that it will resume importing beef and poultry from 17 U.S. meat processing plants after banning U.S. food from crossing the border nearly three weeks ago, citing sanitary and other problems. Mexico did not back down from its allegations and warned in a letter that it remained worried that some U.S. plants lack "good hygiene" practices and only vowed to import meat from the plants until Jan. 31.
 

December 14, 1999

Dramatic Increase in Cattle to Canada Credited to Accord. Agriculture Secretary Dan Glickman says a year-old trade agreement with Canada has resulted in feeder cattle exports increasing from 1,000 head in 1997-98 to 51,000 head in 1998-99. More than 90,000 head of U.S. cattle were shipped to Canada during the first eight weeks of the 1999-2000 season.

Congress Ends Most Legal Challenges to Milk Rule. When Congress allowed a milk pricing system to become part of the appropriations process, the action pretty much ended the legal challenges that had been filed against USDA's final rule on federal milk marketing order reform. But plaintiffs in the Southwest continue to have problems with the final rule.

Advantages of U.S.-China Trade Deal Detailed. The United States and China have reached agreement on trade that allows for US. wheat from the Pacific Northwest to enter China. But USDA says it will be a longer term benefit; China's current wheat import needs are historically low following three of its largest wheat crops in history.

Customers Love the WIC Program. Only the Head Start Program is more popular among customers than USDA's Women, Infants and Children (WIC) Program, according to a report of 30 high impact government programs.

Ag News Summaries

Japan Tightens GMO Approval Process. Japan's health ministry will not approve any more genetically modified foods pending the introduction of tighter regulations next April REUTERS reports from Tokyo. Under the new procedures it will be mandatory for suppliers of GM foods to pass the ministry‘s safety checks and the import of foods containing unapproved genetically modified organisms (GMOs) will be banned. The rules are being tightened in response to consumers who say the current system, in which suppliers seek approval on a voluntary basis, is too lax.

WTO Failure Repeat Spells Disaster, Says EU. European Union trade chief Pascal Lamy says the EU will act more carefully in subsequent meetings to avoid another collapse of negotiations of the World Trade Organization. A second failure would be a disaster, REUTERS reports from Brussels. "The (European) Commission considers that the launch of a new round on a broad agenda remains the priority," Lamy told the European Parliament in Strasbourg. "However, we shall now have to move fairy carefully. A second failure would of course be a disaster."
 

December 13, 1999

Clinton Has New Strategy to Improve Egg Safety. President Clinton has proposed a food safety strategy designed to improve the safety of eggs. It will take "substantial funding increases each year," says Agriculture Secretary Dan Glickman, and also calls for states to be involved in egg safety improvements.

Harkin Says Supreme Case Cause for More USDA Authority. Sen. Tom Harkin (D-IA) believes a court ruling suggesting USDA exceeded its authority with tougher meat inspection standards justifies giving the department more authority to enforce sanitary standards. A federal judge ruled Friday the Supreme Beef Processing Inc., Dallas, can continue to make and sell ground beef even though USDA says the company failed to meet food safety standards.

GMA Urges FDA to Firmly Declare Biotechnology Safe. The Grocery Manufacturers of America says the Food and Drug Administration's national hearings on food biotechnology allow the agency to "more firmly declare" the safety of biotechnology and the soundness of its existing regulatory policies.

USDA Provides $250 Million for Rural Housing. USDA will provide $194.5 million in housing assistant for rural residents and another $60 million to leverage private funding through partnerships with local institutions to provide home ownership.

Ag News Summaries

MTBE-Free Fuel Approved in California. The California Air Resources Board voted unanimously to approve a new gasoline formula that removes MTBE, REUTERS reports from Sacramento. Refinery modifications could cost $1 billion, and the new blend could cost another 4-7 cents per gallon to produce initially, according to state projections. Refiners would have to use an alternative to MTBE, ethanol, to meet federal standards. But there are opponents in California who want the federal government to allow them to waive the oxygenate requirement if gasoline made without it meets certain standards. Legislation to that effect is pending in Congress. Environmentalists argue that using ethanol could pollute further California's air.

LDP Totals Keep Increasing. THE FARM JOURNAL reports that loan deficiency payments continue to be popular with farmers. As of Dec. 8, about 4.34 billion bushels of corn had been put under the program along with another 640 million bushels pledged as collateral against loans. That represents 52% of the total crop. Wheat growers have used LDPs for 1.78 billion bushels and soybean producers have used LDPs for 1.6 billion bushels.

Russia, U.S. Tight-Lipped on Food Talks. REUTERS reports from Moscow that Russia and the United States aren't talking about food aid details. Russian Deputy Prime Minister Vladimir Shcherbak and U.S. Ambassador James Collins met Friday for talks, but neither side would comment on the outcome. Russia has asked for 5 million tons of aid and made it clear it would like it as a donation rather than through credits.

Monsanto Board Meets, Investors Expect Action. Monsanto Co. board of directors met Friday with pressure to take dramatic steps to increase the firm's sagging stock price, REUTERS reports from Chicago. One option appears to splitting the company's drug and agricultural businesses. "Clearly a merger partner would be their first choice, but their lack of success in finding a suitor has put them in a position to consider spinning off the drug business," said William Fiala, chemical industry analyst for Edward Jones.
 

December 10, 1999

Biotech Crops to Hold Their Own. Farmers are concerned about the negative attention being given biotechnology and its application on the farm, but little slippage is expected in their planting of biotech crops next year, American Farm Bureau Federation reports. It "appears" farmers are not pulling back their production plans, says AFBF's Rosemary Watkins.

Nonpoint Pollution Runoff Tough to Measure. A new study from USDA indicates nonpoint emissions from agricultural lands cannot be measured at "reasonable cost" with current technologies, because they are diffuse – they move from fields in a great number of places – and are affected by random events such as weather.

Monsanto Has Vitamin A-Rich Rape Seed. Monsanto Company says its scientists have created a new biotechnology crop expected to help alleviate vitamin A deficiency and potentially reduce related diseases that affect nearly 800 million people worldwide, especially in developing countries.

Obesity Fight Needs Focus on Solutions. The Grocery Manufacturers of America says a proposed national summit on nutrition should have a "narrow, specific and precise" focus on science-based solutions to combat obesity in the United States. The summit has been scheduled tentatively for May 30-31.

Ag News Summaries

WTO to Convene Meeting for Launch. The World Trade Organization will convene a general council Dec. 17 in a bid to resume the process for an early launch of a new round of global trade talks, KYODO NEWS SERVICE reports. The article quotes trade sources. WTO Director General Mike Moore has said he intends to reconvene a ministerial meeting as early as possible. But an early resumption of such a meeting may not be possible because of the variety of differences among the 135 member nations.

Food Safety Program Said at Risk. USDA says its new food safety program is at risk unless a judge allows the shutdown of a Texas meat packing plant that failed a series of salmonella tests, THE ASSOCIATED PRESS reports. USDA withdrew its inspectors from the Supreme Beef Processors Inc. plant in Dallas Nov. 30, effectively closing the facility. But it was forced to send them back later in the day when U.S. District Judge A. Joe Fish granted a temporary restraining order. "Supreme Beef's products are continuing to receive USDA"s seal of approval, notwithstanding USDA"s belief that they should not be entering commerce at all," the Justice Department said in a court filing. "This is an untenable position for USDA, and the longer it continues the more it will undermine the integrity of and public confidence in the government's meat inspection program."

U.S., Russia to Discuss Food Aid Delay. Russian Deputy Prime Minister Vladimir Shcherbak will meet U.S. Ambassador to Russia James Collins to discuss a U.S. decision to hold off food aid for Russia until next year, BLOOMBERG NEWS reports. Russian news agency Interfax reports Shcherbak says he plans to ask Collins if the decision is related to U.S. disapproval of Russia's actions in Chechnya. A new Russian request for food is being reviewed by U.S. officials as the Clinton administration's disapproval of the war in Chechnya increases.

Monsanto Discusses Breaking Up the Company. THE WALL STREET JOURNAL reports Monsanto Co. directors are expected to discuss today whether to break up the company, splitting the successful pharmaceutical business from the struggling agriculture unit. A decision is not likely to be announced today, REUTERS reports, but there is consensus on the board to unveil a decision in the next few days. 

ConAgra Consolidates Beef Subsidiaries. ConAgra, Omaha, will integrate its five separate beef companies into one organization to be known as ConAgra Beef Company, THE FARM JOURNAL reports. Product lines will retain their identity. ConAgra also has announced its new product development group now will operate within an innovative 100,000 square foot product development facility in Omaha to work on new products, processing and packaging. 

USDA Drafts Risk Assessment on Bee Imports. USDA has prepared a draft pest risk assessment on honeybee and honeybee germ plasm imports from New Zealand. The assessment is to help USDA decide if the risk form imports is low enough to warrant a change in regulations. The draft identifies quarantine pests associated with the importation of honeybees and germ plasm from New Zealand and assesses the likelihood and consequences of introducing these pests into the United States.
 

December 9, 1999

Dairy Group Pledges Continued Trade Effort. The International Dairy Foods Association will continue to seek agricultural trade reform despite the stalemate in the World Trade Organization talks that developed in Seattle. Eliminating export subsidies "gained ground"at Seattle, says IDFA, one positive development that emerged from the talks.

Harkin Calls for Better Listeria Control. Sen. Tom Harkin (D-IA) wants USDA to develop a comprehensive listeria control strategy for ready-to-eat meat and poultry products. Plant environment should be tested along with the actual products, says Harkin.

Harvard Prof Sees `Schizophrenic' Environment for Biotech. Harvard Professor Ray Goldberg sees the current environment in which biotechnology is developing as "schizophrenic." Newly discovered methods to improve human, plant and animal health are met with mistrust by some consumer groups.

Longer-Term Weather Forecasts May Be Possible. USDA believes longer-term weather forecasts may be possible in the future based on El Nino and La Nina patterns. Other possibly predictable climate mechanisms lead some to believe interseasonal climate prediction may be possible under certain circumstances.

Ag News Summaries

EU Delays Hormone-Free vote. The European Union has decided to give the United States two more months to prove the effectiveness of its new program for certifying hormone-free beef, but the decision caused barely a ripple at the National Cattlemen's Beef Association, says REUTERS. "It's better than having them shut it off completely," Chuck Lambert, senior NCBA economist, said. "We view it as maintaining the status quo. It's definitely not an improvement." The United States voluntarily suspended shipments of hormone-free beef to the EU earlier this year after the EU found residues of artificial growth hormones in the meat.

Argentine Wheat Crop 30% Larger. USDA says Argentina probably will harvest 30% more wheat this year – 15 million tons from a harvest now underway, BLOOMBERG NEWS reports. Last year's production totaled 11.5 million. The larger crop likely will compound a global glut that last week dragged prices for available supplies in the United States to the lowest level in 22 years. Argentine wheat exports could increase to 10.5 million tons from 8 million last year.
 

December 8, 1999

Combest Commends Administration, Vows `All Options' Review. House Agriculture Committee Chairman Larry Combest (R-TX) has promised to do "everything I can" to make certain U.S. farmers are not at a disadvantage in international trade, given the lack of a final negotiating framework from the Seattle talks. He commended U.S. Trade Representative Charlene Barshefsky, Agriculture Secretary Dan Glickman and agricultural trade Ambassador Peter Scher "for hanging tough" during the talks.

More People Worldwide Have Adequate Food. A new USDA report says the share of people in the world who do not have access to adequate food has declined. However, the aggregate "masks variation in food security among regions, countries and income groups within countries." Food consumption in 30 or 67 developing countries likely will lag nutritional standards in 2009, the report says.

Private Land Loss Rate Doubles in 1990s. The nation's "natural resources inventory" shows nearly 16 million acres of agricultural and forest land were developed from 1992 to 1997. Now 3 million acres per year of agricultural and forest land are being lost each year, double the rate of loss from 1982 to 1992. Agriculture Secretary Dan Glickman called for a national conference on conservation next year. The report could prove to be an impetus for a larger Conservation Reserve Program.

‘Shocking' Decline in Basic Milk Price Hits for November. The basic formula price for milk hit $9.79 per cwt. For November, the lowest since August 1978 when it was $9.68. The BFP could decline even further, says one analyst.

Ag News Summaries

China Trade Provision Now More Difficult. Congressional trade leaders acknowledge that it may be more difficult to get Congress to approve permanent normal trade relations for China in the aftermath of the Seattle World Trade Organization meeting. NATIONAL JOURNAL reports Rep. Jim Kolbe (R-AZ), a leading GOP free trader, warns that President Clinton could have undermined the chances for permanent NTR for China with his comments during the talks. NTR is necessary for China's accession into the WTO. "The president said the WTO is a badly flawed organization. Now he is going to fight to get China into this badly flawed organization?" says Kolbe.

China Says WTO Spat Won't Hurt Its Entry. China shrugged off the failure of World Trade Organization negotiators to launch a new free trade round in Seattle, saying the setback had no direct link to its nearly completed WTO entry bid, REUTERS reports from Beijing. That outcome "is not very directly linked to the question of China's WTO accession," said Foreign Ministry spokeswoman Zhang Qiyue in Beijing's first official reaction to the collapse of the Seattle talks on Friday. Zhang urged the United States to implement quickly the historic accord the two countries signed last month to pave the way for Chinese entry into the WTO.

U.S. Genetic Corn May Be Victim of Own Success. The popularity of genetically modified corn among U.S. farmers could ebb within two years, a result of its success in fighting the crop-eating corn borer insect, REUTERS reports industry experts saying. The rapid increase in the number of acres planted to Bt corn has contributed to a decline in the insect's population. "If the corn borer population stays at this level for the next two years, there's going to be a significant rethink on Bt corn by farmers," Martin Rice, professor of entomology at Iowa State University, said in an interview.

USDA, OMB Work on Food Donation Budget. The Clinton Administration still is working on the budget for U.S. food donations to foreign countries during fiscal 2000 which began more than two months ago. REUTERS quoted USDA aides saying USDA and the Office of Management and Budget do not appear to be at odds over food donation, but work still needs to be done before it's decided how much money will be allocated and which countries will get the aid.
 

December 7, 1999

Fast-Track May Be Clinton's Next Move. President Clinton may ask Congress for fast-track authority to negotiate trade agreements when he gives the State of the Union address. A rather oblique comment Monday by White House Press Secretary Joe Lockhart indicated fast-track could be one issue with which Clinton will deal when he addresses Congress and the nation in the wake of the meetings last week in Seattle.

Farm Land Conversion More Than Doubles. Vice President Al Gore Monday released new figures showing that farm land and other open spaces converted to other uses more than doubled in recent years. Nearly 16 million acres were converted to urban and other uses from 1992-97; the average rate of 3.2 million acres a year is more than twice the rate of 1.4 million acres a year from 1982-92.

Administration Plans Farm Policy Proposal. The Clinton Administration plans to propose changes in the 1996 farm law that would return to a policy of direct payments to farmers when prices are low but suspend the payments when prices recovered. The proposal appears to follow generally the outlines of a proposal by Rep. Charles Stenholm (D-TX), ranking Democrat on the House Agriculture Committee.

New Dairy Legislation Sought by NFO. The National Farmers Organization says it will lobby Congress next year to build in a system of dairy price supports and supply management incentives to counter the volatility in milk prices that sent the basic formula price plummeting to the lowest level since August 1978. But that should be coupled with greater reliance on what producers can accomplish apart from government, says NFO.

Ag News Summaries

Farm Talks Will Proceed. Despite a lack of agreement in Seattle, agriculture negotiators are expected to start meeting as early as January to follow through with a "built in" requirement in the Uruguay round to talk about further agricultural liberalization, the NATIONAL JOURNAL reports. However, the agriculture draft has several items of controversial language. The Europeans are balking at a section calling for "progressive elimination of all forms of export subsidization." The text also said negotiators should take into account food safety concerns but in conformity with the Uruguay Round sanitary-phytosanitary agreement. U.S. negotiators are taking the position that talks should begin from the point where they broke off, using the then-current draft text as a starting point. However, the European Union has not accepted that position.

Who Will Pay for GMO-Free Food? Seed companies and food processors are debating how to provide biotech-free foods for which consumers will be willing to pay. REUTERS reports that several seed companies acknowledged that they were blind-sided by the fierce opposition, magnified in Seattle, to GMO foods. The comments came at a grain industry conference Monday in St. Louis. Opponents say not enough long-term research has been done to conclude GMO crops are safe for the environment and for human consumption.

EU May Ban U.S. Hormone-Free Beef Imports. Now the European Union may prohibit imports of U.S. beef certified hormone free because of fears it contains traces of growth hormones, says EU Farm Commissioner Franz Fischler. The EU has banned hormone-treated beef for a decade, despite being told its action isn't legal under international trading rules. In April, the EU suspended imports of U.S. hormone-free beef after finding traces of hormones in the meat. The United States has tried to overhaul its certification system to head off an EU ban due to take effect Dec. 15.
 

December 6, 1999

WTO Talks Collapse. The World Trade Organization meeting in Seattle adjourned Friday night without launching an expected new round of international trade negotiations, bitterly disappointing agricultural groups and others who had hoped for new steps to open markets and increase U.S. exports.

Combest, Stenholm Predict Tough Decisions Ahead. House Agriculture Committee Chairman Larry Combest (R-TX) and ranking Democrat Charles Stenholm (TX) issued a statement admitting "some tough negotiations" lie ahead for agricultural trade negotiators.

Compendium of Reactions to Seattle. Reactions poured in from officials who attended the Seattle talks. France says no deal is better than a bad deal. Wildlife Federation president says the postponement of further talks indicates "fundamental" reforms are needed. Many delegates blame President Clinton for the collapse of talks. Australia is "disappointed" but cites progress nonetheless. And the success of protesters could mean further demonstrations against the trade agreement between the United States and China.

Ag News Summaries

USDA Plan to Close Dallas Meat Plant Delayed. THE NEW YORK TIMES reports that a federal judge has ruled that USDA cannot shut down a Dallas, TX, beef processing plant that repeatedly failed a test for salmonella bacteria in violation of USDA's standards for bacterial contamination of meat and poultry. The plant, operated by Supreme Beef Processors, has mounted a legal challenge to USDA's policy of monitoring bacteria levels in meat, claiming the department lacks the authority to regulate salmonella because the bacteria isn't a public safety issue. Judge A. Joe Fish said that USDA could not pull inspectors out of the plant, effectively closing it, pending a Dec. 10 hearing.

California Firm Recalls Piroshkies. Galant food Co., San Francisco, CA, is voluntarily recalling about 20 pounds of chicken, rice and cheese piroshkies that may be contaminated by salmonella, USDA says. The product was distributed in the San Francisco area, and USDA's Food Safety and Inspection Service is telling consumers who bought the product not to eat it but return it to the place of purchase.

December 3, 1999

Roberts Condemns Violence, Fears for Ag Round. Sen. Pat Roberts (R-KS) today condemned the violence that broke out in Seattle at the World Trade Organization talks and said he feared that the Clinton Administration would be more willing now to compromise on agricultural issues in an effort to salvage even a watered-down agreement from the talks.

Trade Negotiators Near Agreement on Agriculture. Trade negotiators in Seattle moved substantially closer to an agricultural agreement today, as the European Union abandoned its demands that trade ministers endorse the word "multifunctionality" and the United States accepted something less than the simple "elimination" of export subsidies as a goal.

CAST Releases Biotech Issue Paper. The Council for Agricultural Science and Technology (CAST) has released a study citing how biotechnology crops with improved traits can provide nutritional benefits to millions of people who suffer from malnutrition and deficiency disorders. The study, decidedly pro-biotech, suggests that further research should monitor the effects of transgenic crops on species such as birds and butterflies.

AFBF Finds too Much `Wiggle Room' in WTO Framework. American Farm Bureau Federation President Dean Kleckner says the framework agreement for World Trade Organization negotiations "may contain too much wiggle room" in the agricultural provisions. Some provisions address issues important to U.S. farmers, he adds, but interpretations by other countries could undermine the impact.

USDA OIG Scores Agency on Investments. An audit by USDA's office of inspector general finds that the Alternative Agricultural Research and Commercialization Corporation had only "minimal assurance" that its funds were properly expended and its $27 million investment portfolio was protected adequately from loss. Applicants displayed no "reasonable basis for prospective success," says Inspector General Roger C. Viadero.

Alternative to Methyl Bromide Developed. USDA says navel oranges could benefit from a new, chemical-free insect quarantine treatment that can be used as an alternative to fumigating citrus with methyl bromide. The method involves using hot air to keep the center of the fruit at a temperature capable of exterminating infesting fruit flies.

Click here for yesterday's story "Appeals Court Decision Jeopardizes Promotion Orders"

Ag News Summaries

Clinton Stuns Own Negotiators with Labor Position. President Clinton shocked trade ministers in Seattle by suggesting that trade sanctions be used against countries that violate core labor standards, REUTERS reports. The remarks outraged developing nations who already opposed a more narrowly focused U.S. proposal to create a World Trade Organization working group on labor and undercut the U.S. administration's negotiating position. The article says Clinton wants to win support of powerful U.S. labor unions. Developing nations say it smacks of western protectionism.

Chances Bleak for Biotech Working Group. There appears to be little chance to draft a proposal to establish a World Trade Organization working group on biotechnology, says Tim Galvin, head of USDA's Foreign Agricultural Service. REUTERS quotes Galvin saying, "The odds are not great." The United States had hoped to persuade other WTO members to support a working group to discuss approval procedures for genetically modified crops with the eventual goal of crafting international rules. 

WTO Narrows Farming, Antidumping Gaps. World Trade Organization ministers reached a basic agreement on how to deal with non-trade aspects of agriculture, such as environmental conservation and antidumping regulations, KYOTO NEWS SERVICE reports form Seattle. Issues yet to be resolved include how to deal with export subsidies in agriculture and linkage between labor standards and trade. REUTERS reports that the European Union has insisted it cannot accept the report's call for talks aimed at eventually phasing out farm export subsidies. 

Cattle Group Wants End to Mexican Beef Row. The National Cattlemen's Beef Association is calling for a quick settlement to a dispute that has Mexico blocking U.S. shipments from eight beef and nine poultry plants, REUTERS reports from Chicago. "It is not known why the beef plants have been de-certified for export to Mexico," says NCBA, but the association is urging all parties "to resolve the issue as soon as possible." Mexican officials say the product are banned because of irregularities in health and production processes.
 

December 2, 1999

Appeals Court Decision Jeopardizes Promotion Orders. A federal appeals court has struck down the mushroom promotion program as a violation of the first amendment, a surprise decision that puts 12 other commodity promotion programs at risk as well. It had been thought the issue was settled in 1997 with the U.S. Supreme Court's decision that a California promotion program did not violate the First Amendment.

Wednesday Was Agriculture Day in Seattle There was much activity on agriculture on Wednesday in the Seattle trade talks. However, there are significant differences to be resolved on the issues of (1) elimination of export subsidies, (2) integration of agriculture into the trade rules for manufactured products and (3) the nebulous concept of multifunctionality.

China Trade Deal Means Open Borders. Agriculture Secretary Dan Glickman says the U.S.-China trade agreement allows private companies in both countries to trade directly with one another, an aspect of the agreement that "might very well turn out to be the most significant provision of all."

No Export Subsidies by 2010, Says Kleckner. American Farm Bureau Federation President Dean Kleckner says export subsidies will have been eliminated 10 years from now and that "should result in a multitude of opportunities for our farmers." Farmers will be able to compete against each other, not against governments and politicians, he adds.

Senators Suggest Australian Hypocrisy in Ag Trade. Sens. Larry Craig (R-ID) and John Breaux (D-LA) say Australia has a right to criticize U.S. programs and policies, but considering Australia's own policies on imports and its state trading enterprises and subsidies, "a credibility factor has arisen that should be addressed."

Ag News Summaries

New York Firm Recalls Imported Chicken Nuggets. Woodridge Meats, Inc., Woodridge, NY, is recalling about 1,800 pounds of imported chicken nuggets that may be contaminated with salmonella. The product was distributed in the New York City metropolitan area. The problem was discovered through routine Food Safety and Inspection Service sampling. The product being recalled is "OF-TOV" brand "BREADED FULLY COOKED CHICKEN BREAST NUGGETS" in 20-pound boxes. Each box has a sticker with the number 09.08.99 and 09.08.00 on it. ESTABLISHMENT 108 and PRODUCT OF ISRAEL also appear on the label. Clinton Talks Tough on Farm Trade. President Clinton talked tough on challenging European Union agricultural subsidies, BLOOMBERG NEWS reports, seeking to reassure U.S. farmers. U.S. negotiator said the differences were narrowing with the EU over the most contentious issue at this week's World Trade Organization meeting. "Our agenda is to fight and win for the family farmers of the United States," said Clinton. "We want to level the playing field." U.S. Trade Representative Charlene Barshefsky said differences "are already beginning to diminish" as negotiators work on a draft agreement. She would not give specifics.
`Multifunctionality' Dropped from WTO Text. The European Union has dropped a key term referring to the "multifunctional role" of agriculture in a bid to break the deadlock on negotiations to begin a new round of global trade talks, KYODO NEWS SERVICE reports from Brussels. "The content is there but the word is not there," said a senior EU official. Provisions in the EU text call for gradual reductions in agricultural protection measures and the consideration of "nontrade concerns" involving agriculture. Japanese officials say they prefer the word multifunctionality, because it has a stronger expression that "nontrade concerns."

ecember 1, 1999

Value of Ag Exports Decreased $1 Billion. Lower grain prices and stronger than expected grain export competition in August pulled down USDA's latest agricultural export forecast for fiscal year 2000 $1 billion to $49 billion, unchanged from fiscal 1999.

Dairy Producers Link WTO Support to Goals. U.S. dairy producers say their support of the World Trade Organization negotiations is linked to whether certain trade "disparities" among nations are resolved. "An incomplete or poorly balanced agreement will hurt dairy farmers much more than no agreement at all," says the National Milk Producers Federation.

USDA Restricts Sheep, Goats Interstate Movement. USDA proposes to restrict further the interstate movement of sheep and goats from states that allow unrestricted intrastate movement of animals that pose a high risk of spreading scrapie, a serious neurological disease.

Conservation `Summit' Planned at Iowa State. Agriculture Secretary Dan Glickman will host a day-long national summit Dec. 7 on private land conservation. The purpose of the meeting is to take a new look at conservation and forestry issues facing the nation's private lands, says Glickman.

USDA Extends E. Coli Testing Requirements. USDA's Food Safety and Inspection Service is extending testing requirements for generic E. coli to plants that primarily slaughter sheep, goats, horses, ducks and guineas. The final rule includes these products into the hazard analysis and critical control point (HACCP) rule published in 1996.

Ag News Summaries

A synopsis of news reports from Seattle: KYODO NEWS SERVICE reports the Seattle World Trade Organization talks were "thrown into turmoil" by the large crowd of protesters claiming that free trade affects jobs and the environment. BLOOMBERG NEWS reports that the WTO canceled its opening ceremony after Seattle police using pepper gas and rubber bullets were unable to disperse thousands of protesters who blocked access to the event. REUTERS reports that the United States and major agricultural export countries closed ranks Tuesday on farm trade goals for the next round, insisting that export subsidies be abolished over objections from the European Union. In another report, REUTERS quotes EU Trade Commissioner Pascal Lamy telling a news conference that the street protests show that the EU is right to call for a comprehensive agenda for new global trade.

Clinton Faces Balancing Act in Seattle. REUTERS reports that President Clinton will try today to satisfy three radically different audiences in Seattle: U.S. farmers, foreign trade ministers and a host of protesters who deplore the advance of globalization. Clinton will speak to each of the groups gathered for the WTO meeting. He was scheduled to tour Seattle's port this morning and give a speech to farmers. U.S. negotiators have put agriculture at the top of their trade agenda, saying they want the new round of global trade talks to aim at subsidy elimination.

Cargill Eyes Non-GM Soybean for Europe. Cargill says it is considering whether to adopt a system that would segregate genetically modified soybeans from non-GM organisms to supply the European market, REUTERS reports from Paris. The company is looking at establishing a co-called identity-preserved system that will respond to the demands of European animal feed manufacturers, most of whom rely on soy meal made from imported soybeans. Cargill now supplies clients in Britain with non-GM corn products from France such as glucose, starch and corn oil and is considering providing the same for soybean meal for animal feed.