AgricultureLaw.com -- February 2001 News Archive

February 27, 2001

FCA Defends National Charters. Jack Webster, president, Farm Credit Services of America, Monday told the Senate Agriculture Committee that removing geographic limitations on Farm Credit System institutions will provide farmers and ranchers with the opportunity to choose the Farm Credit System institution that best meets their credit needs.

USDA Sees Economic 'Strong Growth' Worldwide. USDA's outlook for the world economy over the next 10 years calls for strong growth in almost all regions. The aftermath of the Asian financial crisis "is a world that is structurally more sound and poised for significant growth without major imbalances," says the report, presented as part of the USDA baseline projections at the Outlook Forum last week.

ACGA Praises EU GMO Stance. American Corn Growers Association Program Director Dan McGuire told a seminar on food biotechnology in Paris, France, that European "concerns" not governments would make the final decisions on genetically modified crops. McGuire spoke at the 9th annual AGROGENE Seminar on Genetic Traceability.

Humane Group Cites Canadian Pork Firm The American Humane Association (AHA) and Farm Animal Services (FAS) say that du Breton Natural Pork of Notre-Dame-du-Lac, Quebec, is the first pork producer to qualify for AHA's "free farmed" label. The label, unveiled this past fall, is the first-ever program that claims to certify that farm animals are raised in a humane manner.

News Summaries

British Find Tracing F&MD Difficult. THE ASSOCIATED PRESS reports from London that hopes for a quick end to an outbreak of foot-and-mouth disease faded Tuesday "as British agriculture officials scrambled to trace the increasingly intricate path of the livestock virus" Farmers believe as many as 25,000 sheep, cattle and pigs passed through three markets at the center of the outbreak during the week before a Friday ban on moving livestock within Britain, according to the AP report. "These figures show the sheer volume of movement," said Peter Kingwill, chairman of the Livestock Auctioneers' Association. "In terms of an outbreak, they are worrying." Foot-and-mouth disease almost never infects humans, but it is highly contagious among cloven-footed animals like sheep, cows and pigs. It is not usually fatal in itself, but causes blisters on the mouth and feet, fever and loss of appetite. Vaccines exist but are rendered ineffective quickly by the development of new strains of the virus, so wholesale slaughter is used to contain the disease.

Organic Beef Tough to Raise. THE WALL STREET JOURNAL reports from Germany that changing the way Europe produces beef is easier said than done. Heinz Jentjens invested some $14,000 "and a year of sweat" converting his family's farm to raise beef organically. Last month, the country's biggest organic label, Bioland, told him that most of his 400 head of cattle don't make the grade. Bioland had tightened its rules in response to rising consumer anxiety over mad-cow disease, and suddenly Jentjens' cows were no longer organic enough to get the label. The number of organic farms in Europe has increased more than tenfold to an estimated 127,134 in 1999 from just 12,240 a decade earlier. But there's a snag, the WSJ report says. "The very consumer jitters that have sparked such calls are also prompting regulators and private growers' associations to tighten their rules on what products qualify as truly organic." Bioland, a private association whose members are 3,500 of Germany's 10,000 organic farmers, was among the latest to tighten its standards. It probably won't be the last: French and Belgian organic authorities have recently issued similar guidelines, and other European governments could soon follow en masse. Experts from the 15 EU member states will meet next month to discuss upgrading EU rules on organic meat, which now focus largely on feed and animal welfare. All this means that organic meat is likely to remain a premium, niche product for years to come. "As shoppers know, organic food doesn't come cheap. Even when organic farmers receive government incentives -- as Jentjens does -- they face steep conversion costs and higher operating costs than conventional farmers do," this report says.

France Monitors British Sheep. REUTERS reports from Paris that France is monitoring thousands of sheep imported from Britain over the past month for signs of food-and-mouth disease. An agriculture ministry official says no decision has been made on whether to slaughter them. The food-and-mouth outbreak in Britain has coincided with a period when sheep exports to France are especially high as demand for mutton among the country's large Muslim community peaks ahead of its Aid Al-Adha religious holiday on March 5. Some 47,000 sheep have been brought into France from Britain in the past 30 days alone.

Farmers Block Roads Ahead of EU Meeting. In a separate report, from Lille, France, REUTERS reports that French and Belgian farmers joined forces on Monday and blocked roads in northern France ahead of a meeting of European Union agriculture ministers in nearby Brussels. About 50 tractors snarled traffic along the main Paris-Brussels roadway during the morning while a slow-moving convoy of tractors converged on the road connecting the northern French city of Lille with the Belgian city of Ghent. A dozen more frontier crossings were also targeted by the farmers, the regional traffic information office said. EU agriculture ministers were due to meet later on Monday to discuss the crisis caused by mad cow disease. Farmers from many European countries are demanding compensation to cover the cost of measures introduced by the EU to tackle the disease. The news agency says France has indicated it will step in to help farmers if the EU fails to release compensation funds, but agricultural unions said they wanted coordinated action.

New Zealand Seeks Japan Trade Pact. KYODO NEWS AGENCY reports that New Zealand wants to conclude a bilateral free trade agreement with Japan. New Zealand trade and farm minister Jim Sutton said Monday, "Let me make one thing certainly clear: I would certainly aspire to seeing a comprehensive liberalizing arrangement between us," he told the Japan National Press Club. Sutton is in the capital for talks on agriculture and other trade matters with Japanese cabinet ministers. Sutton, who is both minister for agriculture and minister for trade negotiations, said he told them earlier in the day that Wellington "would be interested in exploring a variety of possibilities for building a closer economic partnership between New Zealand and Japan." But he said the New Zealand government is "realistic" and understands the proposal "will take time to become reality," adding, "our approach is to make progress where we can."

February 26, 2001

USDA Lifts Brazilian Beef Ban. USDA will lift a temporary hold on imports of processed beef and associated products from Brazil. The decision was made after a visit to Brazil by animal health officials who were able to review and analyze requested data to complete a bovine spongiform encephalopathy risk assessment.

Property Case Scheduled for Today. The American Farm Bureau Federation and the Rhode Island Farm Bureau have filed a brief in what they consider a pivotal U.S. Supreme Court property case that will be heard today. In the lawsuit, "Palazzolo vs. Rhode Island," Farm Bureau filed a friend-of-the-court brief supporting Rhode Island landowner Anthony Palazzolo who is seeking compensation for a substantial loss of property value due to a state wetlands law.

Flawed Immigration Law May be Useless. The American Meat Institute says a new immigration law intended to temporarily aid in the use of essential, legal immigrant workers may be too flawed to be used by employers. On Dec. 21, then-President Clinton signed into law the Legal Immigration and Family Equity (LIFE) Act which sought to allow anyone proving residence within the United States, whether legally or not, the opportunity to apply for a labor certification visa until April 30, 2001.

Given Time and Normal Conditions, Improvements Seen. Assuming normal weather conditions and no change in the 1996 farm law, conditions for farmers improve over the next 10 years, according to USDA. The projections are "a conditional scenario with no shocks and are based on specific assumptions regarding the macro economy, agricultural policy, the weather and international developments," USDA said in issuing the 10-year baseline at the Outlook Forum last week.

News Summaries

Slaughter Starts in Europe. Germany and the Netherlands Monday began slaughtering thousands of animals imported from Britain fearing a foot-and-mouth disease outbreak, and a fresh farming crisis, had been shipped across the Channel. REUTERS reports that in Brussels, police moved to defend the European Union headquarters from Belgian farmers angry that the highly infectious disease, which can spread by the wind, on vehicles and on human clothing, may plunge their industry into crisis. The initial case of foot-and-mouth in the current outbreak -- the first in Britain for decades -- was identified last Tuesday among 28 pigs at an abattoir in Essex, southeast England.

Analysts Fear for Irish Economy. THE WALL STREET JOURNAL reports economists say the Irish economy could be devastated if the current outbreak of foot and mouth disease in the U.K. spreads to Ireland. More than 20% of all jobs in Ireland are tied to farming, and agricultural exports account for a little more than 10% of Irish gross domestic product. Any export ban would have disastrous consequences for an economy so heavily farm and export-based, economists say, and would likely mean a major drain on government coffers to assist those suffering lost incomes, experts say. "It would be a nightmare scenario," said Con Lucey, chief economist at the Irish Farmers' Association. "Our worry is that if (foot and mouth disease) came into Northern Ireland, it would be virtually impossible to stop it coming south." Police and army units are halting any movement of livestock or food products traveling across the 300-mile border that connects the two countries.

Senate Panel Schedules Hearing. The Senate Agriculture Committee will hold hearings on Wednesday in 328A Russell at 9 a.m. and Thursday in 216 Hart also at 9 a.m. to review agricultural conservation issues as part of the next farm bill debate. The first hearing will focus on the general status of current federal agricultural conservation programs. Witnesses from the United States Department of Agriculture and the Congressional Research Service will testify about how the current programs are managed, the use and distribution of funding under the programs, the types of agricultural producers and landowners who participate, as well as the geographic distribution of the participation. The second hearing will focus on the current programs, as well as the need for new agricultural conservation programs. The witnesses will include representatives of farm organizations, private agriculturally-focused organizations, conservation and wildlife groups, and state agencies. The witnesses will be asked to assess the current programs, provide suggestions for improvements and changes to the current programs and discuss new initiatives for conservation in agriculture, such as Sen. Tom Harkin's Conservation Security Act, a voluntary flexible program that provides incentive payments to farmers and ranchers who adopt or maintain land-based conservation practices.

House Also Schedules Hearings. For its part, the House Agriculture Committee has scheduled four hearings: Wednesday at 10 a.m., 1300 Longworth HOB, to review federal farm commodity programs with the American Farm Bureau Federation; Wednesday, March 7, 10 a.m., 1300 Longworth, to review federal farm commodity programs with the Coalition for a Competitive Food and Agriculture System; Wednesday, March 7, 2 p.m., the Subcommittee on Conservation, Credit, Rural Development and Research, 1300 Longworth, to review the Farm Credit Administration's proposed rule providing for the issuance of national charters for the Farm Credit System and Thursday, March 8, 1300 Longworth, a 10 a.m. review of federal farm commodity programs with barley growers.

USDA, Japan Agree on StarLink Testing. USDA and the Japanese Ministry of Health, Labor, and Welfare (MHLW) have reached an agreement to strengthen testing of food corn exports to Japan for the presence of StarLink, a variety of corn not approved for human consumption. The agreement enhances the November U.S.-Japan protocol for food corn to prevent export of StarLink to Japan, says USDA. Under the agreement, shipments of food corn to Japan will be tested at 2,400 kernels per sample, double the amount tested under the original protocol. This is in accordance with recently issued U.S. Food and Drug Administration recommendations which urge U.S. corn dry-milling operations to screen all yellow corn shipments for StarLink by testing a representative sample of 2,400 kernels from each incoming container. Further, at the request of MHLW, corn samples sent to Japan for monitoring will be taken from corn intended for shipment to Japan. This will better ensure that corn tested by MHLW reflects actual corn exports to Japan.

Bush Agriculture Spending Cuts Expected. Agriculture Secretary Ann Veneman said Sunday some reductions in discretionary spending for USDA are expected in President George W. Bush's budget, due to be released this week, according to a REUTERS report. Bush has said he plans to restrain growth in all discretionary government spending to 4 percent, or a touch above inflation, while keeping his proposed tax cut to $1.6 trillion over 10 years. "I think you will see some decline in USDA's discretionary budget," Veneman told reporters after speaking at the National Governors' Association. Veneman would not elaborate saying she did not know the details of the final Bush budget.

February 23, 2001

Exports Remain at $53 Billion. USDA predicts agricultural exports for fiscal 2001 will total $53 billion, the same as forecast in November and 4% more than fiscal 2000. Imports also are unchanged from the November estimate of $40 billion, a 3% increase over 2000.

Veneman to Farmers: Seek Alternatives. Agriculture Secretary Ann Veneman made it plain that farmers can count on the Bush Administration for support, but they need to focus their efforts on alternatives to government support. She told USDA's Outlook Forum farmers need to build relationships with one another and integrate with processors and food companies to recognize "higher value production and value-added processing businesses."

WTO's Moore Praises Bush Approach. World Trade Organization Director-General, Mike Moore is "impressed by the seriousness and commitment of Ambassador (Robert) Zoellick and indeed of the entire Bush Administration" to a new round of global trade talks, something Moore believes is needed so "all enjoy the benefits of global trade liberalization.

LDP Limits Bill Introduced. Reps. Jo Ann Emerson (R-MO) and Marion Berry (D-AR) have introduced a bill to increase the payment limitations on loan deficiency payments (LDPs) and marketing loan gains (MLGs). The bill would amend the Food Security Act of 1985 to increase the maximum amount of LDP and MLG payments that a producer may receive during crop years 2001 and 2002 from $75,000 to $150,000. For the past two years Congress has increased payment limitations in response to significantly low commodity prices and weather disasters that just about wiped out a number of farmers' bottom lines.

News Summaries

McDonald's Added to Paris' Foie Gras. BLOOMBERG NEWS reports from Paris that visitors to the annual Paris agricultural fair may be accustomed to seeing everything from giant hogs to the most honored foie gras but this year will get "a bit of a surprise": the golden arches of McDonald's Corp. A booth promoting the world's largest fast-food chain hasn't gone unnoticed at a gathering that prides itself in featuring live animals and natural food from all French regions, the news agency notes. "Farmers and visitors, already concerned about globalization and the effect of the mad cow disease scare on cattle breeders, are quick to say the U.S. company is in the wrong place at the wrong time," the article says. "McDonald's presence is a provocation," said Bernard Moser, the secretary general for Confederation Paysanne, the farmers' union created by Jose Bove, the anti-globalization activist known for wrecking a McDonald's restaurant in France in 1999. McDonald's set up an educational stand at the fair, which attracts about 600,000 visitors each year. The company's European sales fell 8.6% in the fourth quarter as concerns about mad cow disease hurt demand for hamburgers. "We're here to tell families that they can eat beef," said Etienne Aussedat, a spokesman for McDonald's France.

Aventis Asks Japan for StarLink Feed Authority. The Japanese unit of Franco-German life sciences company Aventis SA has applied to sell its StarLink biotech corn in Japan for animal feed, the Agriculture Ministry said on Friday. StarLink is not approved for either human or animal consumption in Japan. REUTERS reports that StarLink has become a hot topic in Japan where consumers have been vocal in their opposition against genetically modified foods. The discovery of StarLink traces in food and animal feed by a domestic consumer group in late October prompted Japan to sharply cut its purchases of U.S. corn. Ministry officials declined to comment on whether or when the approval would be made, the news agency reported.

Protests Rally Against USDA Sheep Seizure. About 75 demonstrators, some dressed as sheep, rallied Thursday against USDA's plan to slaughter two flocks of Vermont sheep believed infected with scrapie, an ailment distantly related to the brain-wasting mad cow disease, REUTERS reports. "Hey, hey, USDA, how many farms did you wreck today?" the protesters chanted against the department. "At least the sheep have brains," read one of many signs denouncing claims by USDA officials that a few of the Vermont sheep have tested positive for scrapie, which belongs to the category of brain disorders that includes mad cow disease. The news agency notes that USDA last July decided to seize and kill the two flocks as a health precaution after tests on four of the animals showed they were infected with scrapie, which affects sheep and goats. The disease is fatal to the animals but poses no threat to humans.

Britain Gives a Week to Contain F&MD. Britain gave itself seven days Thursday to contain a foot-and-mouth disease outbreak that has caused a worldwide ban on imports of its livestock and animal products that plunged the nation's farming sector into a new crisis. REUTERS reports that officials warned the public to keep out of the countryside to prevent the spread of the highly contagious disease while they scrambled to find the source of the outbreak, checking farms, meat imports and even pet pig owners. On Thursday the Agriculture Ministry said the disease had been found at a second location, close to an abattoir in southeast England where the outbreak was first discovered. In Brussels, experts fear the virus is so contagious it may yet spark an outbreak on the Continent, a nightmare scenario that could bring Europe's meat trade to its knees.

February 22, 2001

Food Safety Proposal Resubmitted. USDA has resubmitted a food safety proposal to the Federal Register designed to help prevent contamination by Listeria and other harmful pathogens. Originally submitted in January, the proposal would require meat and poultry establishments to conduct food contact surface testing for generic Listeria or address post-lethality contamination in hazard analysis and critical control point (HACCP) plans.

Summer Deadline on Tax Vote Possible. Senate Majority Leader Trent Lott (R-MS) believes floor action on President Bush's tax proposal could come by July 4. Bush has been meeting with congressional leaders in an effort to deliver on his campaign pledge for a tax reduction. Bush is proposing $1.6 trillion in tax cuts over 10 years and said that his plan will include an across-the-board tax cut, elimination of the estate tax and substantial relief from the so-called marriage penalty.

Another Round of Agriculture Committee Hearings. The House and Senate Agriculture Committees have scheduled another round of farm bill hearings. The Senate Agriculture Committee will conduct a full committee hearing to review matters related to the Farm Credit Administration (FCA) on Feb. 26, at 9:30 a.m. E.S.T., in 328A Russell. The House Agriculture Committee will review the federal farm commodity programs with the American Farm Bureau Federation on Feb. 28, at 10:00 a.m., in 1300 Longworth.

NFPA to Review USDA Performance Standards for RTE Meat Products. According to the National Food Processors Association (NFPA), USDA's proposed regulations establishing performance standards to be used by the food industry in producing ready-to-eat (RTE) meat and poultry products "will require careful review to ensure that they truly enhance food safety."

News Summaries

Japan & USDA to Increase StarLink Testing. According to REUTERS, Japan's Health Ministry and USDA have agreed to more testing of food corn exports to Japan to evaluate the presence of unapproved StarLink biotech corn. The Embassy of Japan said the agreement for increased testing would enhance a November U.S.-Japan accord covering food corn destined for the Japanese market. Japan is the single largest purchaser of U.S. corn, with corn exports to Japan valued at $1.8 billion annually. Japan imports 12 million tons of corn for animal feed use each year and another 4 million tons for food use, mostly from the United States. The discovery of genetically modified StarLink corn traces in food and animal feed by Japan in late October 2000 prompted Japan to significantly reduce its purchases of U.S. corn. A testing agreement in November cleared the way for U.S. corn shipments to Japan. However, the Japanese found traces of StarLink corn in shipments in late January 2001, after the same samples has tested negative at a USDA laboratory before leaving the United States. Under the new agreement, U.S. corn shipments to Japan for food use will be tested more extensively. This new agreement is in accordance with recently issued Food and Drug Administration recommendations for dry-milling operations to screen all yellow corn shipments for StarLink by testing a representative kernels for each incoming container.

Commodity Classic Opens. Corn and soybean growers are bound for San Antonio, TX, this week, site of the 2001 Commodity Classic, the combined convention and trade show of the National Corn Growers Association (NCGA) and the American Soybean Association (ASA). The premier agricultural event kicks off Sunday and wraps up Tuesday evening featuring The Oak Ridge Boys. This year's Commodity Classic features the latest in technology, education and information that will help farmers be more profitable in 2001 and beyond. A total of 186 companies will be exhibiting in more than 600 booths at the Commodity Classic Trade Show. More information about Commodity Classic can be found at the official Commodity Classic web site: www.commodityclassic.com.

Veneman Speaks Today. Agriculture Secretary Ann Veneman speaks this morning at the opening session of USDA's Outlook Conference. The two-day conference ends tomorrow and will be held at the Crystal Gateway Marriott Hotel, Arlington, VA A forum will open with high-level panels on the next farm bill and world trade talks. Focus sessions during the two-day program will preview key issues on the farm policy agenda.

Fighting Mad Cow with More Than Organic. REUTERS reports a European Union officials says organic farming is not the only answer to the current European mad cow crisis. Conventional farming could clean up its act as well, Joachim Heine, deputy director general of the EU Commission's directorate general for agriculture told the EurOrganics 2001 conference in Munich. "Organic farming, due to its nature, is not the only answer to the present crisis," he said. "There is no doubt that conventional farming can also use production methods that are environmentally friendly and observant of animal protection," Heine added.

India Plans Anti-Import Legislation. India's Parliament will consider a bill by next week to protect domestic industry from any surge in imports through unfair trade practices, Commerce and Industry Minister Murasoli Maran said on Thursday. "It's a defence system against a surge in imports. It will be introduced next week," Maran told reporters on the sidelines of a trade conference. REUTERS reports theForeign Trade Development and Regulation Amendment Bill aims to protect domestic industry and the agriculture sector. A Commerce ministry official said the bill was not meant to be a shield for Indian companies against competition but a preventive measure against foreign firms using unfair trade practices. The official, who did not wish to be identified, said the bill was compatible with World Trade Organisation (WTO) rules.

Monsanto Works to Win on Wheat. REUTERS reports that Monsanto, "reeling from an international backlash against its plans to introduce the world's first biotech wheat variety," is increasing efforts to win over growers and importers and toning down talk about taking the new wheat to market. "We are starting to understand we need to do a better job of outreach," Monsanto wheat industry affairs manager Michael Doane said Wednesday in a presentation to an annual Wheat Quality Council meeting in Kansas City. Doane said teams of Monsanto officials were working in key wheat import markets to gain acceptance for the new biotech wheat, known as "Roundup Ready," a herbicide-tolerant spring wheat variety that would help farmers gain production efficiencies. Doane also declined to attach a time-frame to introduction of the genetically modified (GM) wheat, a turnabout from previous Monsanto comments that it would try to bring the new wheat to market between 2003 and 2005. Instead, Doane stressed Monsanto's desire to assuage concerns surrounding the new wheat, chief among them that export markets would dry up for U.S. producers.

February 21, 2001

Oilseed Payments Going to Farmers. USDA is sending out this week $500 million to more than 590,000 recipients in payments authorized by last year's Agricultural Risk Protection Act of 2000. Producers who planted soybeans, sunflowers, flaxseed, canola, rapeseed, safflowerseed, mustard, crambe, and sesame in 2000 are eligible for the payments.

Another Study on Ethanol's Benefits. Nebraska Governor Mike Johanns, chairman of the Governors' Ethanol Coalition, has released an analysis outlining how the increased use of ethanol will spur the domestic economy, save consumers billions, create jobs, and reduce the influence of OPEC over the United States. With the nation stuck in a protracted energy crisis, greatly due to growing dependence on expensive foreign oil, ethanol industry executives believe the report demonstrates there is one environmentally-friendly energy policy option that can prevent America's economy from being held hostage by OPEC: ethanol.

Snack for Weight Loss Being Developed. A "structured snack" product, Lean On Me(TM), now undergoing a clinical trial at Baylor College of Medicine, provides women with a new nutritionally balanced, good tasting way for losing weight and helping to maintain weight loss.

News Summaries

StarLink Test Approved, Company Says. REUTERS reports that Neogen Corp. says USDA has verified the performance of the company's tests to detect unapproved gene-altered StarLink corn that caused turmoil by entering the food chain late last year. Neogen said its "rapid and accurate" test to detect StarLink, which is not approved for human consumption because of concerns it might trigger allergic reactions, was verified by the USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA). Grain companies have bought hundreds of thousands of tests from a Neogen competitor, Delaware-based Strategic Diagnostics since StarLink corn was found in food products in the United States last September, the news agency reports. USDA has also been testing cargoes of U.S. corn for StarLink, using test kits produced by Strategic Diagnostics.

China Objects to Japan's Import Curbs. KYODO NEWS AGENCY reports that China has objected to a proposed imposition by Japan of a ''safeguard import curb'' on three types of Chinese-grown farm produce. Japanese officials say the objection was voiced at the first of a series of working-level talks on the trade fray over surging imports into Japan of Chinese-grown leeks, shiitake mushrooms and rushes used in tatami mats. The Japanese delegation, led by Mitsuhiro Yokoyama, councilor for the General Food Policy Bureau of the Ministry of Agriculture, Forestry and Fisheries, told China that Japanese farmers are being hard pressed by import-induced price declines for the three goods.

February 20, 2001

UN Report Paints Gloomy Global Outlook Regional changes in climate already have affected physical and biological systems in many parts of the world because of global warming, according to a United Nations report. Examples include shrinking glaciers, thawing permafrost, late freezes and early break-ups of ice on rivers and lakes, lengthening growing seasons, shifts of plant and animal ranges, some plant and animal population declines. And it's only going to get worse.

Book Raises Ire of Dairy Industry. Author Jane Plant, currently on a book tour promoting a self-prescribed diet she claims cured her breast cancer, advocates a diet devoid of all dairy products, something that has "no scientific basis, say dairy industry officials. "Plant's arguments are based on one case study – her own – which has not been peer-reviewed in the scientific press," they say.

U.S. Questions Canada's Dairy Commitment. The United States has asked that the World Trade Organization (WTO) reconvene a dispute settlement panel to examine whether Canada has complied with WTO rulings on its export subsidies on dairy products. The United States does not believe that Canada has taken the necessary steps to bring its dairy export subsidy program into compliance with WTO agreements, because Canada has introduced new programs that do not fulfill the export subsidy reduction commitments undertaken in the WTO Agreement on Agriculture.

Deli Meat Sales Expected to Expand. Steady growth is predicted for deli meat sales, which exceeded $12 billion in 1999, according to a new report by the International Dairy, Deli, Bakery Association (IDDBA), Madison, WI. The report, titled "What's In Store 2001," reveals that in 1999 in-store delis attracted 28% of consumers, up from 17% in 1994.

ITC Finds Little Impact if Cuban Embargo Lifted. The U.S. International Trade Commission says without sanctions, U.S. exports to Cuba, based on average 1996-98 trade data, would have been approximately $658 million to $1 billion annually, or about 17-27% of Cuba's total imports from all sources. Estimated U.S. imports from Cuba in the absence of sanctions, based on average 1996-98 trade data and excluding sugar (U.S. sugar imports are government-regulated), would have been approximately $69 million to $146 million annually, amounting to about 7-15% of total Cuban exports to the world. U.S. economic sanctions with respect to Cuba generally had a minimal overall historical impact on the Cuban economy, says the ITC.

News Summaries

No End to Cuban Sanctions Seen. KYODO NEWS SERVICE reports that Cuban Foreign Minister Filipe Perez Roque said he does not expect an end to 39-year-old U.S. trade sanctions against Cuba while President George W. Bush is in office, the official Malaysian news agency Bernama reported. ''Within the U.S. Congress, some decisions could be made in order to favor the lifting of the blockade,'' he told Bernama in an exclusive interview. ''But I do not think that the administration of President Bush itself will take the initiative.'' Perez arrived in Kuala Lumpur on Monday for a three-day visit that includes a meeting with Prime Minister Mahathir Mohamad and Foreign Minister Syed Hamid Albar. Perez said he believes the embargo could end eventually with the backing of some prominent Republicans such as former U.S. secretaries of state George Shultz and Lawrence Eagleburger, who feel Cuba is no longer a threat following the collapse of the Soviet Union.

EU Okays Cargill Buy of Agribrands. THE WALL STREET JOURNAL reports that the European Union Commission has given antitrust clearance to the purchase of U.S. animal feeds and agricultural products company Agribrands International by fellow U.S. commodities company Cargill Inc. "The all-American deal will not affect competition in Europe, as the companies' activities are largely complementary," the E.U. Commission said in a statement.

More Flexibility Needed for WTO Talks. Supachai Panitchpakdi, World Trade Organization director-general designate, Tuesday called for greater "flexibility" from the United States, European Union and Japan to successfully start a new round of global trade talks in November. Supachai said he hoped the three dominant WTO members could resolve differences that derailed efforts to open a new round of talks at the last WTO ministerial meeting in 1999 in Seattle. That meeting was marked by violent protests in the streets and ended in a stalemate with the three powers blaming each other for refusing to yield on their negotiating positions. "We need flexibility so that we can have a trade agenda agreed upon soon, preferably this year at the Qatar meeting in November," Supachai told business leaders at a conference. The United States must show some flexibility in its stance on antidumping rules, he said. The European Union must be willing to accept an agenda with fewer initiatives, and Japan must be prepared to compromise on the concept of "multifunctionality" in agriculture, Supachai added.

Veneman Removes Self from Sierra Rulings. REUTERS reports that environmental groups are applauding a decision by Agriculture Secretary Ann Veneman to remove herself from any ruling deciding the fate of forest land in the Sierra Nevada Mountains of California. A spokesman for USDA said Veneman took the action to avoid any chance of bias in the decision. Veneman, who has been in office less than one month, previously did legal work for a coalition group of loggers and snowmobile enthusiasts who opposed closing the area to outside exploration. The news agency report says that put her at odds with a plan approved by former President Bill Clinton shortly before leaving office that would reduce logging in the Sierras by 50% and give the Forest Service, a division of USDA, control over the region. The plan, which has not yet gone into effect, would allow timber harvesting only for environmental reasons or to reduce the risk of wildfires to low-lying communities. It is currently undergoing a 90-day public comment period that ends in April.

Farmers Facing May Face Fertilizer Squeeze. U.S. farmers, already faced with fertilizer prices driven higher by a record increase in natural gas, a fertilizer feedstock, could face a squeeze in nitrogen fertilizer supplies for spring planting, farm groups and industry sources said, according to REUTERS. Last year, natural gas prices more than tripled, and that forced fertilizer makers that produce ammonia from the gas to curtail production. Ammonia and diammonium phosphate (DAP) are the most widely used soil nutrients in the Corn Belt. Natural gas prices, which traded at $2.50 per million British thermal units at the start of 2000 and at only $4.30 Btu in October, increased more than $10 by early last month, as measured by New York Mercantile Exchange futures prices. The price crunch since the autumn forced many big fertilizer producers, including IMC Global Inc. and Cargill Inc., to shut down plants or curtail production, tightening supplies and boosting prices. With natural gas prices now trading back down to the $5.50 level, most domestic nitrogen production has come back online. But fertilizer supplies are still tight and prices high.

Taco Bell, Cattlemen Team Up. Taco Bell Corp. and the National Cattlemen's Beef Association (NCBA) and the Cattlemen's Beef Board (CBB) have joined in efforts to introduce a premium "carne asada-style" product -- the Grilled Steak Taco. The new steak taco will replace the Steak Soft Taco on the menu beginning Feb. 22 and will be served with cheddar cheese, lettuce, tomatoes and a tangy new creamy lime sauce on a flour tortilla for $1.49. During the promotion, the beef industry's beef check logo will be featured prominently on in-store signage and national television commercials.

Rich, Poor Suffer Alike with Global Warming. Disasters such as floods, famine and disease epidemics could hit rich and poor countries in coming decades if the current rate of global warming persists, United Nations-backed scientists warned on Monday, according to REUTERS. In a report aimed at national policy makers, they foresaw glaciers and polar icecaps melting, countless species of animals, birds and plant life dying out, farmland turning to desert, fish-supporting coral reefs destroyed, and low-lying island states in the Pacific and Caribbean sunk beneath the sea. The potential disaster scenario, with its major impact on the global economy in the 21st century, was set out in a 1,000-page report by the U.N.'s Intergovernmental Panel on Climate Change (IPCC) -- which links hundreds of scientists around the world and has been studying the warming problem since 1990.

Fuel Costs Hit Chicken Producers. Terry Gates, Idabel, OK, paid $11,200 for the propane to heat his chicken barns for three weeks – as much as he paid all last year, according to a report from THE ASSOCIATED PRESS. "It's been a tough couple of months," Gates said, surveying 30,000 chirping, bouncing yellow chicks. The AP article notes that the process of satisfying America's appetite for chicken is swift and efficient. But things aren't getting any easier for Gates and others holding contracts to raise chickens for the country's largest poultry companies. Besides the high cost of fuel, chicken farmers say stricter environmental regulations have put the brakes on expansion. They also say they have no control over contract terms dictated by processors, including chicken giant Tyson of Springdale, AR, and Dallas-based Pilgrim's Pride. "But perhaps the biggest problem is self-inflicted," says the article. "There are just too many chickens for the market." Falling demand internationally has helped produce a glut of poultry, says Don Barrett, a grower and publisher of the Poultry Farm Outlook newsletter. The country's chicken production chain, spread across half the nation, produces more than 30 billion pounds a year.

EU Blames U.S. for China Slowdown. THE WALL STREET JOURNAL reports that European Union Trade Commissioner Pascal Lamy on Monday said China could complete protocol arrangements as early next month, to join the World Trade Organization, but he blamed the delay in access to the WTO on the United States. "It would mean China's entry by the summer," Lamy said in a speech Monday in Hong Kong. He said Taiwan would become an independent WTO member of the group "at the same moment." He said China needs to satisfy questions about its commitment to provide access to service providers and to agricultural products. Lamy said Washington was delaying the process as it was deciding whether China should be given flexibility on its agriculture commitments.

February 19, 2001

News Summaries

February 15, 2001

Lugar-Boehner Bill Reintroduced. Legislation to "complete the unfinished business" of the 1996 farm law and "make any farm bill work" has been introduced in the Senate by Agriculture Committee Chairman Dick Lugar (R-IN) and Sen. Pat Roberts (R-KS) and in the House by Rep. John Boehner (R-OH).

NGFA Files Rebuttal Statement in Rail Merger Proceeding. The National Grain and Feed Association has filed a rebuttal statement with the federal Surface Transportation Board contesting the assertions of several rail carriers in the ongoing proceeding under which the agency is developing new rules to govern future rail mergers. In its most recent statement, the NGFA reiterated its call on the agency to require that carriers demonstrate that future mergers will result in enhanced competition for rail shippers and receivers.

CSPI Faults Mexican Meat Imports. The Center for Science in the Public Interest leans on "official internal reports" to claim that about one-third of the Mexican meat slaughtering and processing plants inspected by USDA were so ill-equipped, dirty, or otherwise in violation of USDA safety rules that they were barred from exporting to the U.S. However, senior USDA officials rejected the recommendation of USDA's inspectors to audit immediately "Mexico's entire meat inspection system."

Beef Ad Campaign Kicks Off. Beef's increasing convenience is the focus of a three week advertising program that began last week nationwide. Two new television commercials are featured in the burst, which come on the heels of a one-month nutrition ad burst conducted in January in magazines and on television. Both are part of the industry's extensive "Beef. It's What's For Dinner" campaign.

Corn Growers Work to Prevent `Volunteer StarLink.' The National Corn Growers Association (NCGA) is urging growers who planted StarLink hybrids last year to make an extra effort to control possible volunteer StarLink corn in 2001. That may mean rotating to another crop or growing a herbicide-tolerant hybrid that lets you control volunteer StarLink.

Farm Recovery Coming; the Interim Is Bothersome. USDA's top economist says the agriculture sector should continue to recover over the next several years from low prices and shrunken incomes, and that means less cost to the federal government. But the question of how best to support farmers once the 1996 farm law expires remains something of a balancing act.

News Summaries

NCFA Offers Videos on Feed Quality Assurance. The National Grain and Feed Association is offering a set of four new videos on feed quality assurance for commercial feed manufacturers. Produced by the NGFA through the efforts of its Feed Industry Committee, the videos are based on the NGFA's model Feed Quality Assurance Program, first produced in 1994 with several subsequent updates and 13 educational workshops in all regions of the country. "These videos respond to the pressing need voiced by feed mill managers to have an educational training tool that can be used with employees back at the plant on a continuing basis to instill and reinforce the importance of quality assurance at each step of the feed manufacturing process," said NGFA Feed Industry Committee Chairman Joe Garber, who is nutrition and analytical services coordinator for Wenger's Feed Mill Inc., Rheems, PA. He said that feed mill managers, mill operators, grain and feed ingredient buyers, and personnel involved in loading, transporting and unloading feed will benefit from watching the videos.

Veneman to Address Outlook. Agriculture Secretary Ann M. Veneman will address the U. S. Department of Agriculture's 77th Agricultural Outlook Forum on Feb. 22. The forum will take place at the Crystal Gateway Marriott Hotel, 1700 Jefferson Davis Highway, Arlington, VA. The two-day forum will open at 8:15 a.m. on Feb. 22, with a panel discussion by leading experts on the next farm bill. Secretary Veneman is scheduled to speak at 9:45 a.m. Other noted speakers include World Trade Organization Director General Mike Moore at 10:30 a.m. and economist Lawrence Chimerine who speaks that evening.

China Optimistic on WTO Membership. China sees no "substantial obstacles" to ending its 14-year quest to join the World Trade Organization, chief trade negotiator Long Yongtu said on Thursday, according to REUTERS. "WTO accession talks are now at the final stage. I don't think there are any substantial obstacles which will stop the entry process," he told a business forum in Beijing. "China's accession is a question of time." The news agency article notes that the latest multilateral talks in Geneva one month ago failed to wrap up negotiations on Chinese membership in the WTO and another round is expected in late February or early March.

World Bank Rural Lending Should Double. BLOOMBERG NEWS reports that a high-ranking World Bank official believes the bank should double lending to support crop irrigation and other rural projects that protect the environment. Robert L. Thompson, director for rural and agricultural development, said more money is needed to fund research and enhance productivity to grow enough food in poor countries and reduce hunger. Bank officials first must convince the dozens of countries that borrow from the World Bank to focus on agriculture, because those countries decide what programs to pursue with bank loans, Thompson said. "Our clients aren't saying that agriculture is a high priority for them," Thompson said. "We think this is because the rural poor need a bigger political voice."

February 14, 2001

FAPRI Issues Dismal Farm Income Outlook. Net farm income could decline more than $9 billion in the next two years, taking a triple hit from reduced government payments, rising production costs, and lower prices for milk and hogs, according to a report prepared for Congress by the Food and Agricultural Policy Research Institute (FAPRI). The annual 10-year baseline projections, used in legislative policy making, show net farm income declining from the present $45.4 billion to $36.3 billion in 2002. That is a decline from $55 billion net farm income in 1996, when world grain supplies were low and commodity prices were high.

Farm Tax Relief Introduced. Sen. Chuck Grassley (R-IA), chairman of the Finance Committee, has introduced a package of tax relief measures to help preserve family farms and fisheries. Grassley said the legislation would assist family farmers across the nation. "With the number of family farms shrinking every year, it seems all of us ought to be doing everything we can to help independent producers survive," Grassley said. "Our safe and abundant food supply depends on it."

Seafood Safety Addressed in GAO Report. Sens. Tom Harkin (D-IA) and Richard Lugar (R-IN) have released a General Accounting Office report showing only 44% of seafood plants currently meeting Food and Drug Administration (FDA) food safety requirements. They say the report details a lack of adequate food safety controls within the seafood industry. The report entitled "Federal Oversight of Seafood Does Not Sufficiently Protect Consumers" was requested by both senators last year.

FDA Focus Groups Show Mixed Understanding of Biotech. Focus groups organized by the Food and Drug Administration demonstrated "an uneven knowledge and understanding" of bioengineered foods, according to FDA. "On the one hand, they have heard a fair amount about the uses of biotechnology in the context of medical and drug research and other areas, and they are not surprised that biotechnology is being applied to foods. On the other hand, most were vague about the details," according to FDA.

News Summaries

Rita Hayes Popular in Geneva. Envoys to the World Trade Organization (WTO) hail President George W. Bush's decision to ask current U.S. ambassador Rita Hayes to stay on in Geneva. "They said they saw the decision, following the appointment of the widely respected Robert Zoellick as U.S. Trade Representative, as a sign that the new administration would work for the early launch of a new global trade round," according to a REUTERS report. "I find the fact that she will be coming back as highly encouraging," said one senior diplomat from a developed country whose delegation has frequently crossed swords with the feisty, straight-talking Hayes in WTO meetings. "She knows the issues and the problems, whatever she has to say in public as U.S. representative," said another. "Her experience and the continuity she provides will be needed over the coming months." Hayes, a southern Democrat known to be close to former President Bill Clinton, came to Geneva as trade ambassador in 1997 after working for several years as a U.S. textile negotiator in the WTO's predecessor, the GATT. She has been heading the Washington team in the transition between the outgoing trade minister, Charlene Barshefsky, and Zoellick. Officials say she is expected to remain there for several more weeks.

Oil World Disagrees with USDA. REUTERS reports from Berlin that the Oil World newsletter believes USDA overestimated soybean ending stocks for this season. "We disagree with USDA's pessimistic outlook on U.S. and world soybean demand and continue to expect a reduction of U.S. soybean stocks below last year's 290 million bushels by early September," Oil World said. Last week the USDA projected U.S. soybean stocks as of Sept.1 to increase to 9.39 million tons (345 million bushels) from 7.90 million tons (290 million bushels) in September 2000. Oil World said the difference between its forecasts and those of the USDA stemmed from diverging views of supply and demand in the second half of the season. "World soybean stocks as of early March (excluding southern hemisphere new crops) are expected to be reduced to a three-year low of 54 million tonnes," Oil World said.

Dale Moore Veneman's Chief of Staff. Agriculture Secretary Ann M. Veneman has named Dale Moore as her chief of staff. "Dale Moore joins the department with extensive agriculture and legislative experience," said Veneman. "He will be a valuable member of our team as we move the administration's agriculture agenda forward." Prior to joining USDA, Moore served as the executive director for legislative affairs at the National Cattlemen's Beef Association. Moore has also served the House Committee on Agriculture as former legislative director, working on the formulation and passage of the 1996 farm bill. Moore also served as the Agriculture Committee's Republican legislative coordinator and the minority counsel for the Subcommittee on Department Operations, Research and Foreign Agriculture. Moore also has served as an agricultural legislative assistant for Sen. Pat Roberts (R-KS). A native of Southwest Kansas, Moore was raised on a livestock, hay and grain farm. He received his bachelor of science degree in animal science/biology from Fort Hays State University, Kansas.

Lugar, Bayh Push HFCS Issue with Mexico. Indiana Sens. Richard Lugar and Evan Bayh are urging President Bush to put pressure on Mexican President Vincente Fox to allow more U.S. high fructose corn syrup and more corn to be imported. The United States and Mexico have a long-simmering dispute over Mexico's HFCS tariffs the United States considers unfair. "We encourage you to discuss this issue with President Fox and press for the HFCS access granted to U.S. corn farmers by the North American Free Trade Agreement," they told Bush. The Mexican HFCS market holds a potential demand for 200 million bushels of U.S. corn.

Canada to Reassess Beef Ban. Canadian officials say they will reassess a controversial ban on Brazilian beef exports early next week once inspectors complete an investigation into whether Brazil's cattle might be infected with mad cow disease, REUTERS reports. But Brian Evans, Canada's chief veterinary officer, did not say how long Canadian officials and inspectors would take to recommend whether to lift the ban, which has badly damaged relations between Ottawa and Brazil, the news agency adds. Canada halted Brazilian beef imports 10 days ago on mad cow concerns after Brazil did not provide sufficient information about what had happened to cows it had imported from Europe, where most animals infected with the disease have been found.

Thais to Expand Ethanol Sales. THE WALL STREET JOURNAL reports that the Petroleum Authority of Thailand, or PTT, plans to "aggressively expand" sales of ethanol-mixed gasoline next year. The expansion will take place through a liquor producer to build an ethanol factory to supply the commodity to PTT, Sawaeng Boonyasuwat, executive director of PTT's Research and Technology Institute, told reporters Wednesday. Sawaeng made the statement to reporters at a seminar on ethanol. Sawaeng said PTT is negotiating with several alcoholic beverage producers, including the country's largest, Sura Bangyikhan Co. Ltd, but will select only one to cooperate with, Sawaeng said. Completion of the ethanol factory will take about a year, more quickly than building the factory without an investment partner, which would require at least two years, Sawaeng said.

February 13, 2001

Sheep Industry Promotes Products. The American Sheep Industry Association's (ASI) American Lamb Council plans to promote U.S. lamb through a promotional campaign funded through a $1.8 million grant awarded by USDA to the American Lamb Council last November. Due to lack of any industry investment in marketing, the council has not conducted any widespread U.S. lamb marketing campaigns in several years. The USDA-funded campaign will be the most significant lamb marketing effort made by the council in recent years.

USDA Forecasts Foreign Corn and Cotton Imports. North Africa and Middle East corn imports have more than doubled over the last decade and are forecast to comprise nearly 20% of world corn trade in 2000-01, according to USDA. Despite efforts by many governments to increase production of various crops, the region's climate and scarce water supplies are expected to leave these countries heavily dependent on corn imports.

News Summaries

Canada Denies Ban Lifting Reports. Canada denied media reports it would lift a controversial ban on Brazilian beef imports on Monday, saying it planned to wait for the findings of food inspectors who are due to fly to Brazil on Tuesday, according to REUTERS. "As far as lifting the ban today, I'm not aware of any new information that that will be done...I don't think it will happen before the inspectors go in," said Sylvie Millette-Leduc, spokeswoman for Agriculture Minister Lyle Vanclief. Two major Brazilian newspapers on Saturday quoted government officials as saying Canada could lift the ban as soon as Monday, ending a damaging diplomatic tussle.

Web Site Changes on Government Pressure. A Brazilian web site that urged a boycott of Canadian products in response to Ottawa's ban on Brazilian beef because of mad cow disease fears has been altered after the Canadian government called for changes, REUTERS reports. The site, (www.stimpy.com.br/anticanada) was set up on Friday by a Brazilian computer geek and titled "Canada: The Evil Empire." By Sunday it had been renamed: "Potato: The Evil Empire." It was still on the same Internet address, but material considered offensive by Canada had been removed. Rodrigo Ranieri Araujo, the site's 24-year-old author, said in a note attached to the bottom that it had been altered in response to a letter from Canada's embassy in Brazil saying it was defamatory and used Canadian symbols without permission. Where the Canadian flag had appeared there is now a picture of a potato. Under a picture of several buckets of potatoes is a caption reading: "Millions of potato soldiers ready for the invasion!"

Ethanol Production Increases. USDA's latest feed outlook reports that 42 companies plan to increase ethanol production by 246 million gallons this year in response to the bioenergy program, a program that gives companies production incentives. As a result, corn used to make ethanol in 2000-01 should increase 9% from the 566 million bushels used in 1999-2000. Monthly ethanol production as reported by the Energy Information Administration, an agency of the Energy Department, indicates that corn used to make ethanol in December was a record, and ending stocks of ethanol declined from the previous month and year-earlier levels. High MTBE prices relative to alcohol have encouraged splash blending for increased octane and use of ethanol in oxygenated and reformulated gasoline, according to the USDA report. Reduced prices of natural gas are expected to lower the cost of methanol, resulting in more MTBE this month. Even so, says USDA, strong demand for ethanol is expected to meet clean air requirements during the rest of the marketing year. The entire report is available on the Internet at http://www.ers.usda.gov/publications/so/view.asp?f=field/fds-bb/.

Mexico Urges U.S. to Issue Sugar Shipping Pattern. Mexico's sugar industry has urged U.S. trade and agriculture officials to give exporters specific dates for starting new 2000/01 crop exports under the U.S. import quota system, local officials said Monday, according to THE WALL STREET JOURNAL. Mexican trade sources and industry officials said that until the U.S. Trade Representative's office issues the physical shipping pattern, Mexico has no real sugar quota to ship to the United States. "We still haven't heard anything on the shipping pattern, and until we get that Mexico doesn't have a quota," Guillermo Beltran, director general at the National Sugar And Alcohol Chamber, told Dow Jones Newswires. The WSJ article notes that Mexico and the United States have been embroiled in a bitter trade dispute over the size of Mexican access to the lucrative U.S. duty-free import quotas for sugar under the North American Free Trade Agreement.

China WTO Entry Likely Around Mid-Year. THE WALL STREET JOURNAL reports that China is unlikely to join the World Trade Organization before the middle of this year. The article is based on a report in the South China Morning Post that quotes Stuart Harbinson, the newly elected chairman of the WTO's General Council. Harbinson, Hong Kong's permanent representative to the world trade body, said it should become clear exactly when the mainland will enter after the next China working party meeting to be held in Geneva later this month or early next month. The report said entry, which had been expected early this year, has been delayed by last-minute wrangling. Besides issues about agricultural subsidies, other sticking points include commerce, trading rights and barriers to trade.

February 9, 2001

Environmental Policy at Crossroads. Changes in the agri-environmental landscape have brought agricultural-environmental policy to a crossroads, according to a new report from USDA. In the upcoming farm bill debate, policymakers face a broadening array of agri-environmental problems. While farm price and income support appears likely to continue, the form this support will take is unknown, the report says.

The Seam Opens B2B Exchange. Cotton's online marketplace, The Seam, announced today that its business-to-business (B2B) exchange is open. Cotton businesses anonymously traded more than 5,000 bales on the first trading day. More than 80,000 bales of cotton were listed on the system during the first session. To date, more than 12,000 bales have been traded on listings of more than 115,000 bales.

Video Beef Yield Procedures Announced. USDA's Agricultural Marketing Service has issued procedures for approving video imaging instruments for use in determining USDA beef yield grades. USDA yield grades identify the "quantity" or "cutability" differences among carcasses. Yield grades (YG) are 1, 2, 3, 4 and 5, and are a numerical representation of the expected percentage of closely trimmed, boneless retail cuts from the round, loin, rib and chuck. This percentage of retail cuts is the carcass cutability. YG1 is the leanest and produces the highest cutability and YG5 is the fattest and produces the lowest cutability.

Farm, Food Groups Battle User Fees. A group of farm and food organizations have asked Office of Management and Budget Director Mitchell E. Daniels Jr. not to include user fees for meat, poultry and egg inspection in the President's 2002 budget proposal. It's an issue that has been part of budget deliberations for nearly two decades, the groups said, and are viewed as requests for a "food safety tax" on consumers, farmers and the meat, poultry and egg processing industries.

Cattlemen Work to Broaden Trade. Cattle producers have approved a policy that includes commitments to work toward broadening international trade as well as continue improving animal health and the industry's economic condition, the National Cattlemen's Beef Association said. "We had much success with our policy priorities last year, and we want to further our success in advocating for these new policies," said Lynn Cornwell, NCBA president and a cattle producer from Glasgow, MT.

News Summaries

Rice Genome Groups Speeds Process. An international consortium mapping the rice genome has decided to speed up efforts to complete the genome's sequencing and make the findings publicly available as soon as possible, REUTERS reports from Japan. The decision was made at an international workshop featuring experts in genome-sequencing research held by the International Rice Genome Sequencing Project (IRGSP) in Tsukuba near Tokyo on Wednesday and Thursday. The consortium previously had wanted to complete the mapping of the rice genome by the March 2005. A genome contains the basic information that makes up living organisms encoded in chromosomes made up of double-standard chains of DNA. The group includes experts from Japan, United States, Britain, China, Taiwan, South Korea, India, Thailand, Brazil, France and Canada.

Some Pork Producers Fear Loss of Checkoff. The loss of a national pork advertising program would leave some farmers with no way to promote their products and speak with a unified voice, some pork producers in Ohio said Thursday, according to THE ASSOCIATED PRESS. "Who's going to advertise our product?" said Don Magoteaux, a Greenville farmer attending the Ohio Pork Congress. The $54 million program, begun in 1986, also pays for research. It launched the campaign "Pork, the Other White Meat." It is financed through a mandatory fee, or checkoff, of 45 cents for every $100 of a hog's value when it is sold. In a referendum last year, hog farmers nationwide voted 15,951 to 14,396 to end the program. Opponents say the checkoff has done little to stimulate pork consumption and mostly benefits pork processors and large corporate farms.

Forces Converge on Cropping Plans. FARM JOURNAL reports that 2001 cropping plans are being buffeted by three powerful forces—economic outlook; agricultural policy; and fertilizer availability. "You could even throw in a little GM controversy for spice," the article says. "But, are farmers going to actually change crop mix—or just talk about it? That is a multi-million dollar question." Seed dealers claim they cannot get a good grasp of what is happening right under their noses. A number of inventory issues are already keeping suppliers awake nights. The assumption is that several million acres of row crops are probably in play—and may stay so for another month to six weeks, according to this article.

February 8, 2001

Crop Insurance Releases Report. Sixteen different crop insurance companies collaborated on a report detailing how the industry combats fruad, waste and abuse in the crop insurance program. The report also makes recommendations to the Risk Management Agency as it begins to implement the anti-fraud section of the Agricultural Risk Protection Act of 2000.

Wheat Producers Table Farm Bill Hopes After a year and a half of working, wheat producers have come up with a "sound federal policy" they hope will be adopted as part of the next farm law. The National Association of Wheat Growers' plan involves "five simple principles."

Farm Groups Ask for More Money. Citing likely continued low commodity prices and rising production costs, the American Farm Bureau Federation and 22 other farm groups have asked congressional agriculture leaders to support additional funding for agriculture in the fiscal 2002 federal budget and ensuing years.

Agriculture Position in DOJ Subject of Bill. Sens. Richard Lugar (R-IN) and Tom Harkin (D-IA), have introduced a bill that requires the attorney general to maintain the Justice Department position that is reponsible for overseeing economic concentration in agriculture.

News Summaries

Veneman Promises Quick Review on Brazil Meat. Agriculture Secretary Ann Veneman promised a speedy review of Brazil's cattle-raising and cattle import records after the U.S., Canada and Mexico banned meat imports from that country as a precaution against mad cow disease, according to BLOOMBERG NEWS. Brazil's farm minister, Marcus Pratini de Moraes, gave Veneman and USDA scientists documents Monday to help verify cattle locations and origins over the past several years. Canada says Brazil may have imported live animals from Europe as late as 1999. Brazil has denied that. "They gave us, like, five books" of data, said Veneman. At this time, "there is no evidence of risk at this point to the consumer," she said. Mad cow disease, or bovine spongiform encephalopathy, was discovered in the United Kingdom in 1986, raising concerns that some cattle that Brazil may have imported from Europe may have come in contact with diseased animals. The human form of the disease is responsible for more than 90 deaths on the European continent.

Brown Calls for Science Not Politics on Mad Cow Issue. REUTERS reports that British Agriculture Minister Nick Brown told farmers on Wednesday scientific evidence and not political pressure would determine whether the Labour government bans German beef over fears of mad cow disease. "I am not going to take advice on food safety from the Conservative Party," Brown told the National Farmers' Union. "What we will not do is invent health risks as cover for trade protectionism and get us involved in a Tory trade war." He spoke a day after an opposition Conservative politician told farmers Britain must be prepared to ban German beef imports unilaterally on health grounds to stop the spread of mad cow disease, or bovine spongiform encephalopathy (BSE). "This government relies on the independent scientific advice of the Food Standards Agency," Brown said. "If that advice says that a ban on a particular food import is necessary, we will not hesitate to ban it."

Brazil Says FTA Derailed. Canada's decision to ban imports of Brazilian beef on mad cow disease fears has derailed negotiations to create a free trade area spanning the Americas, a Brazilian government official said on Thursday, according to a REUTERS report. Brazil and Latin American nations have been negotiating with Canada, Mexico and the United States (the NAFTA free trade bloc) to create the Free Trade Area of the Americas, or FTAA. But Canada's decision Friday to ban Brazilian beef, which obliged NAFTA partners Mexico and the United States to follow suit, "may have thrown a spanner in the works," says the news agency. "My great doubt is how this relates to the FTAA...I think this attitude of Canada has buried the FTAA," said Agriculture Minister Marcus Vinicius Pratini de Moraes in a live interview with Globo television news.

Veneman Delayed on Appointments. Agriculture Secretary Ann Veneman will name Dale Moore as her chief of staff by the end of the week, but other appointments to top USDA positions will take a bit longer, REUTERS reports. "Part of the problem is we have had a lot of crises in the last couple of weeks with all of these BSE things," Veneman said, referring to two recent federal actions by the United States to prevent bovine spongiform encephalopathy (BSE) - also known as mad cow disease. "I haven't had as much time to do interviews as I would like," she said. Moore is currently the executive director for legislative affairs for the National Cattlemen's Beef Association.

Glickman Becomes Lobbyist. THE WASHINGTON POST reports that former Agriculture Secretary Dan Glickman joined the Washington, DC, law firm of Akin, Gump, Strauss Hauer & Feld,. Glickman will advise clients on food and food safety, health, biotechnology and international trade, the Post reported.

February 7, 2001

FSIS Memo Contradicts Inspectors' Claims. A memo from USDA's Food Safety and Inspection Service "stood in stark contrast" to meat inspectors' claims in recent media reports, according to the American Meat Institute. The reports had indicated that hazard analysis and critical control point (HACCP) systems have limited inspectors' powers to enforce humane slaughter regulations.

AMS Advises Farmers on Contracts. USDA's Agricultural Marketing Service has developed a report on farmers' contracts, designed to make producers aware of the advantages and disadvantages of contracting. Most farmers consider signing a contract either to reduce their exposure to risk or to make more money, says AMS. And "indeed, some contracts can lead to higher returns and serve as a form of risk sharing."

Novel Ingredients Letter Goes to Food Industry. The Food and Drug Administration (FDA) has sent a letter to the food industry restating the requirements of the Federal Food, Drug, and Cosmetic Act regarding the marketing of conventional foods containing novel ingredients, including botanicals. FDA issued the letter because of the significant growth in the marketing of foods containing these ingredients.

News Summaries

E-Diesel Trucks at RFA Conference. Renewable Fuels Association's sixth annual National Ethanol Conference in Las Vegas will include a demonstration of ethanol-blended diesel (e-diesel) Monday, Feb. 19. Diesel powered trucks will be used to demonstrate ethanol's ability to clean up diesel emissions, including particulate matter (soot), carbon monoxide, nitrogen oxides and sulfur. Representatives from diesel fleet operators, the ethanol industry and diesel additive suppliers will be available to discuss how ethanol can dramatically reduce diesel fuel emissions while increasing performance. E-diesel is being developed as a cost-effective method for meeting diesel emissions regulations (such as the pending low-sulfur regulations) necessary to comply with air quality standards under the Clean Air Act. Las Vegas is the site of a long-running e-diesel test project involving the Clark County Health District and more than 20 diesel trucks from local fleets. Other e-diesel tests include city buses in Lincoln, NE, and Joliet and Chicago, IL; Mack trucks in Chicago, IL; John Deere farm equipment and a Ford pickup in central Illinois; and Caterpillar loaders and beverage delivery trucks in New York, NY.

Meeting to Discuss Codex Issues. Issues on the agenda for the thirty-third session of the Codex Committee on Food Additives and Contaminants will be discussed at a public meeting Feb. 13. USDA and the U.S. Department of Health and Human Services are co-sponsoring the public meeting. The Codex Committee on Food Additives and Contaminants establishes or endorses maximum or guideline levels for individual food additives, for contaminants, and for naturally occurring toxicants in foodstuffs and animal feeds. The committee also prepares priority lists of food additives and contaminants for toxological evaluation, recommends specifications of identity and purity for food additives for adoption by Codex, considers methods of analysis for their determination in food, and considers and evaluates standards or codes for related subjects such as the labeling of food additives and food irradiation. The thirty-third session of CCFAC will meet March 12-16 in the Hague, the Netherlands. The public meeting will be held from 10 a.m. to noon, Tuesday, Feb. 13, Room 1409, Federal Office Building 8, Food and Drug Administration, 200 C Street SW, Washington, DC 20204.

UN Warns 100 Nations at Risk for BSE. The United Nations says at least 100 countries are at risk from mad cow disease and urged them to take tough action including a ban on feeding meat-based meal to cattle, sheep and goats. "FAO estimates that between 1986-96 up to today, meat and bone meal (MBM) from Europe was exported to more than 100 countries," Jacques Diouf, Director-General of the Rome-based U.N. Food and Agriculture Organization (FAO), told REUTERS. "Around 100 countries imported live cattle. Some countries also re-exported MBM to third countries," Diouf said in a written answer to REUTERS questions on mad cow disease, or bovine spongiform encephalopathy (BSE). "All countries which have imported cattle or meat and bone meal which originated from Western Europe, during and since the 1980s, can therefore be considered at risk from the disease," Diouf added. "Regions which have imported sizeable quantities of meat meal from the UK during and since the 1980s include the Near East, Eastern Europe and Asia," said the director-general, whose organization is best known for its drive to reduce world hunger. BSE was first found in British herds in 1986.

China Agrees to Import U.S. Tobacco. China, the world's largest tobacco producer, signed an agreement with the United States to import tobacco, BLOOMBERG NEWS reports. That could earn the United States $140 million a year, the Central News Agency reported, citing unidentified sources in the USDA. Under the agreement, U.S. tobacco must pass China's inspection before it will be exported anywhere in the country, the report said. Tobacco cargoes that are free of the blue mold fungus will qualify, the report said. The United States expects improved market access to increase annual farm exports to China to $3 billion by 2005 from about $1 billion in 1999.

USDA May Seize Sheep, Court Says. THE ASSOCIATED PRESS reports that USDA may seize two flocks of imported sheep suspected of carrying a form of mad cow disease. U.S. District Judge J. Garvan Murtha said the owners of the sheep imported from Belgium must comply with an order issued last summer by then Agriculture Secretary Dan Glickman to give up their herd. USDA moved to seize the 355 sheep in July, after a laboratory test indicated that four animals were infected with a form of transmissible spongiform encephalopathy, a family of illnesses that includes mad cow disease. The owners, Linda and Larry Faillace of Warren, and Houghton Freeman of Stowe, appealed the ruling in U.S. District Court. They claimed the science used in determining that the sheep were infected was flawed.

Inspectors Appeal Pilot Meat Program. A federal meat inspectors union has appealed for a second time USDA's pilot program using employees of meat processors to help inspect food. REUTERS reports the appeal of U.S. Judge Royce Lamberth's December ruling marks the latest development in a row between inspectors and USDA over the issue of how raw meat and poultry should be checked for illness-causing bugs, fecal material and other contamination. The American Federation of Government Employees opposes Lamberth's decision to uphold the USDA's 1996 pilot program giving more responsibility to plant employees for inspections and allowing federal meat inspectors to monitor plant procedures and records. "We strongly believe that American consumers are best protected when federal inspectors, not industry employees, carry out meat and poultry inspection," Bobby Harnage, president of the union, said in a statement.

Senate Endorses Zoellick as USTR. The Senate Tuesday unanimously endorsed Robert Zoellick as the U.S. trade representative after making clear some lawmakers are dissatisfied with the country's current trade policies, THE ASSOCIATED PRESS reports. Senators contended that labor and environmental issues are not given due consideration in trade negotiations. They also contend that agreements with U.S. trading partners who maintain unfair trade practices are hurting U.S. farm, steel and lumber industries. "Our trade policy in this country is a mess," said Sen. Byron Dorgan (D-ND), blaming both Republican and Democratic administrations. He said there had been 304 trade agreements over the past eight years, while the U.S. merchandise trade deficit in that period had increased eight times to some $440 billion. Sen. Max Baucus (D-MT), the ranking Democrat on the Senate Finance Committee, repeated that he would work to defeat any legislation giving the president enhanced authority to negotiate new trade agreements unless they meaningfully address labor and environmental problems created by opening trade with developing countries.

February 6, 2001

Dairy Questions Trade Agreements. There is growing skepticism within the U.S. dairy industry whether forging ahead with another agreement liberalizing trade will present new opportunities to the industry or will simply risk further economic distress, according to a new study from USDA's Foreign Agricultural Service. The original argument employed to garner support from the domestic dairy industry for the Uruguay Round agreement followed a logic that the European Union (EU), heavily dependent on export subsidies to hold around 40 percent of the global export market (on a milk equivalent basis), would be forced to withdraw gradually from world markets as its export subsidies were reined in by the round's disciplines.

Less Time Needed to Pay the Food Bill. The American Farm Bureau Federation says it now takes the average consumer until Feb. 7 to earn enough money to pay for a full year of food. That's two days earlier than last year. The AFBF used USDA statistics to calculate the time needed.

Mom Leads the Way in Drinking Milk. New research suggests that children will be more likely to drink milk instead of soda if they see their mother making the same choice, according to a new study published today in the Journal of Nutrition. Researchers at the Pennsylvania State University examined the trade-off between soft drinks and milk that young children frequently make and explored the impact of a mother's influence.

Farmers Appear to Still Like Biotech Crops. Farmers again plan to plant a significant share of their corn, cotton and soybean acres with biotech seed in 2001, according to 13 of the nation's leading agricultural and commodity organizations and the Council for Biotechnology Information (CBI). They say the recent controversy that has swirled around one particular product -- StarLink corn -- has done little to dampen farmers' enthusiasm for biotechnology, the groups say.

News Summaries

Brazil Says No Reason to Ban Beef. THE ASSOCIATED PRESS reports that Brazil has invited foreign experts to inspect its cattle herds for signs of mad cow disease and asserted there's no reason for a ban on Brazilian beef imports imposed by the United States, Canada and Mexico. Brazilian cattle feed in pastures and not on ground cattle parts that have been blamed for spreading the disease in European countries, said Farm Defense Secretary Luiz Carlos de Oliveira. Brazil "is willing to open its borders to allow sanitary specialists to verify that there is not the slightest risk of contamination," he said. Meanwhile, Agriculture Minister Marcus Vinicius Pratini de Moraes was in Washington to push for a suspension of the ban on imports of Brazilian beef products. He was to meet with U.S. Secretary of Agriculture Ann Veneman and offer data showing that Brazil is free of bovine spongiform encephalopathy, or mad cow disease.

Bush Delays Clinton's Road Plan. The Bush administration has delayed by two months a plan by former President Bill Clinton to put almost a third of U.S. Forest Service land off limits to road construction and logging, BLOOMBERG NEWS reports. The rule, which was to become effective March 13, would bar building roads on 58 million of the roughly 192 million acres of forest and grassland managed by the Forest Service, including Alaska's Tongass National Forest. The administration formally moved to delay the rule until May 12, said USDA spokesman Kevin Herglotz. "We're simply in a 60-day review period," Herglotz said. Critics have said the move will disrupt exploration for oil and natural gas and threatened to challenge it in Congress and the courts. The rule will affect federal land in 38 states, including California, Oregon, Montana and Colorado, Virginia, North Carolina, New Hampshire and West Virginia.

Biotech Hot Subject in Phoenix. REUTERS reports that StarLink corn and the issues surrounding biotech commodities in general were expected to be the hottest topics debated at this week's U.S. Grains Council (USGC) annual meeting in Phoenix, AZ. Grain industry officials said U.S. grain growers, handlers and processors have been hit with extra work and costs associated with testing and segregating genetically modified (GMO) grains like Starlink. Industry leaders say the core of the problem they've had comes from having some grains approved only for feed, not food use. "We're communicating back to our members that we simply can not have split approvals (feed and food)," Kenneth Hobbie, U.S. Grains Council president, said in an interview. He said the Grains Council also plans to step up its educational efforts to teach consumers about biotech products.

Biotech Safety Campaign Planned. The U.S. grains industry plans to spend $750,000 to persuade .buyers that bio- engineered crops are safe. BLOOMBERG NEWS reports. The expenditure probably will be approved this week at the annual convention of the U.S. Grains Council, meeting in Phoenix. The article says the $17.9 billion corn market, the biggest U.S. crop, is at stake with an export value of $3.6 billion. Japan's purchases have declined 19% this year, partly because Starlink traces have been found in shipments, even though a U.S. testing program is supposed to guard against tainted exports. In the United States the grain is approved for livestock feed, but not for human consumption. "It's worrisome, because (Japan) is our largest corn market in the world," said Kenneth Hobbie, president and chief executive of the council, a trade group of farmers, processors and exporters such as Cargill Inc., and Bunge Corp. "We almost had the market shut down in December."

China's WTO Entry Again Stalled. THE WALL STREET JOURNAL reports that negotiations for China's entry into the World Trade Organization have stalled yet again as China insists it be allowed subsidize agricultural output on the level of a developing, not a developed, country. A compromise is very likely, the article says. "Not only are the main points for China's WTO membership already set, but the latest quarrel has more to do with symbolism than with actual numbers," according to the Journal. Under WTO rules, countries classified as "developing" can subsidize up to 10% of farm output, while "developed" countries can only go as high as 5%. China's position is opposed by the United States and members of the 18-nation Cairns Group, which includes Australia, Canada and Brazil. China's farm production was valued at $174.6 billion in 1999, the last full year for which statistics are available.

February 5, 2001

Brazil Beef Imports Suspended. After close consultations with Brazilian government officials, USDA is temporarily suspending the import of processed beef and associated products from Brazil. The decision is a temporary action pending the release of requested data to complete a bovine spongiform encephalopathy (BSE) risk assessment.

Report Released on Western Land Protection. A group of cattlemen, conservationists and western governors has released a report that supports creating and using publicly funded "purchase of development rights" (PDR) to protect rapidly disappearing farm and ranch land and to conserve agricultural lands and wildlife habitat in the West. "Purchase of Development Rights: Conserving Lands, Preserving Western Livelihoods" is authored jointly by the Western Governors' Association, the National Cattlemen's Beef Association, and the Trust for Public Land. The report was released at the Cattle Industry Annual Convention and Trade Show being held in San Antonio.

Pork Checkoff Program Wins Award. In helping supermarkets organize their meat case, a checkoff-funded program implemented by the National Pork Producers Council is helping grocery stores sell more meat and is earning retail industry honors. It is called the NPPC's Category Management Program.

Color of Burgers Not Good Enough. People who cook ground beef burgers on gas grills could have a food safety problem if they rely on color--rather than a meat thermometer--to determine if the meat is adequately cooked, according to Agricultural Research Service scientists. That's because how the meat is handled before cooking can make it look like it's been cooked adequately when it really hasn't been, according to the scientists in ARS's Food Technology and Safety Laboratory in Beltsville, MD. The research provided information to USDA's Food Safety Inspection Service to suggest guidelines for safe food temperatures.

Pork Exports Reported Strong for 2001 U.S. pork exports for this year are expected to reach a record 593,000 tons (carcass weight equivalent), 3% greater than 2000, with Japan and Mexico continuing to be the best U.S. customers. Developments in Russia and the European Union (EU) are creating further opportunities for U.S. pork exports. Going into 2001, the U.S. pork export environment is characterized by large pork supplies in the United States, projections of reasonable economic growth in key markets, less competitive pressure from the EU, but continued strong competition from Canada, according to USDA.

News Summaries

Mexico, Canada Also Stop Brazil Beef. REUTERS reports that Mexico and Canada have joined the United States in temporary import ban on Brazilian beef products to avoid mad cow disease "and its deadly human variation." The announcement came some 24 hours after an agriculture official told the news agency that Mexico was in talks with its North American Free Trade Agreement (NAFTA) partners to impose a ban on all beef products from Brazil, including gravy, corned beef, gelatins and other beef products or products made with beef components. "Mexico made this decision to close its borders to Brazilian beef products as a temporary and precautionary measure to protect the public health and that of its livestock," the Agriculture Ministry said in a statement. Canada was the first to ban Brazilian beef early on Friday, followed in the late afternoon by the United States. USDA said it was taking the measure despite the fact that there was no evidence of mad cow disease in Brazil.

Global Warming Costs to Soar. THE ASSOCIATED PRESS reports that the UN Environment Program says that unless efforts are made to curb air pollution, global warming will cost the world more than $300 billion annually by 2050. Citing a report in a forthcoming UNEP publication, the agency said emissions of carbon dioxide and other gases related to the global warming could annually cost the world around $304.2 billion. The report was compiled by Munich Re, a leading reinsurance company, which has been monitoring the cost of natural disasters since the 1960s, according to the AP report. Rising temperatures could trigger shifts in weather patterns, causing natural disasters such as droughts, more frequent tropical cyclones and rising sea levels; this in turn could cause flooding, loss of land and damage to fish stocks, agriculture and water supplies, the report said. "Studies have indicated, disturbingly, that climate changes could trigger worldwide losses totaling many hundreds of billion of dollars per year," Dr. Gerhard Berz, head of Munich Re's Geoscience Research group was quoted as saying.

Mexico Good U.S. Export Market. Agriculture economist Barry Flinchbaugh says U.S. agriculture companies seeking new export opportunities should probably look to Mexico which has the potential to become the top market for U.S. grains and meat, REUTERS reports. "I bet you that by the end of this decade Mexico will be our No. 1 agricultural customer," said Flinchbaugh, an agriculture economist at Kansas State University. Japan is the top market now and should buy $9.8 billion worth of U.S. agricultural goods this year, followed by Canada with $7.8 billion, and Mexico with $6.8 billion, government statistics show. During an interview at the National Cattlemen's Beef Association convention, Flinchbaugh said he was bullish on Mexico as an export market because of its economy and apparent stable new government. "Their per capita income will continue to climb and their currency will therefore get stronger," he said. Flinchbaugh also is bullish on beef exports to other parts of the world. "I don't know how you can be anything but bullish," he said.

Moore Targets June for Talks. BLOOMBERG NEWS reports from Canberra that World Trade Organization chief Mike Moore has a "self-imposed" June deadline to start the next round of global trade talks, with agriculture and labor issues the main points to resolve. By then, Moore said, he should know how flexible global trade ministers are prepared to be on difficult issues that stymied the scheduling of talks when the WTO had its last ministerial meeting in Seattle in 1999. Trade ministers will meet in the Gulf state of Qatar from Nov. 5. to Nov. 9, the first top level meeting since the collapse of the Seattle talks, which were marred by violent street protests.

Iowa Official Disagrees with Staff Report on Hogs. REUTERS reports that Iowa's top public health official disagrees with a review from his own staff that maintains that large hog feeding operations pose no apparent risk to public health. "I don't think we can come to a conclusion from the research that there is not a probable cause" for illnesses suffered by those who live near the plants, Dr. Stephen Gleason, director of the Iowa Department of Public Health, told the news agency in an interview. Iowa is the top U.S. hog producing state. But its small, traditional family hog farms have been increasingly replaced in recent years by huge, enclosed "confinement" feeding operations run largely on contract to corporations. As the state's hog plants have grown in scale, public complaints about the odor and environmental hazards from hog waste have escalated.

February 2, 2001

Beef Demand Increases Yet Again. With seven straight quarters of increased beef demand under its belt, the U.S. beef industry has an aggressive long-range plan to keep demand and profitability growing, said Chuck Schroeder, chief executive officer for the National Cattlemen's Beef Association (NCBA).

California Firm Gets Ethanol from Whey. The Golden Cheese Company of California has started producing ethanol in January from cheese whey residue left from cheese processing. Golden Cheese becomes the second ethanol producer in California. The increasing production and use of ethanol in California will be a major topic at the Renewable Fuels Association-sponsored National Ethanol Conference in Las Vegas Feb. 18-20.

Grassley Wants Iowa to Study Acquisition by Tyson. Sen. Charles Grassley (R-IA) has asked Iowa Attorney General Tom Miller to study the purchase of IBP, Inc. by Tyson Foods, Inc. to see if it violates the antitrust laws or other Iowa consumer protection or agriculture laws. Grassley also asked Miller to consider using his leadership position on the National Association of Attorneys General to coordinate other state attorneys general interested in agriculture competition issues.

News Summaries

FSIS Extends Comment Period on Poultry Rule. USDSA's Food Safety and Inspection Service is extending the comment period for the proposed rule for on-line antimicrobial reprocessing of pre-chilled poultry carcasses. The comment period is being extended for an additional 60 days because commentators requested additional time to collect data. The comment period will be open until April 2. Initially, FSIS published the proposed rule Dec. 1 to request comments on a proposal that will allow pre-chilled poultry carcasses contaminated with digestive tract contents to be reprocessed on-line if significantly lower pathogen reduction standards for E. coli and Salmonella are met. The proposed change reinforces the agency's goal of pathogen reduction. Written comments should be submitted to the FSIS Docket Clerk, Docket No. 98-062P, U.S. Department of Agriculture, Food Safety and Inspection Service, Room 102, Cotton Annex Building, 300 12th Street, SW, Washington, DC 20250-3700. All comments will be available for public inspection in the Docket Clerk's Office between 8:30 a.m. and 4:30 p.m., Monday through Friday.

USDA Expands Cattle Report. REUTERS reports that USDA, in response to requests by the cattle feed industry, will include feedlots with a capacity of 1,000 head or more in this month's cattle on feed report. The report will be released on Feb. 16 and on the same day, the USDA will also release farm labor statistics. The quarterly publication will include estimates of the number of hired workers and average wage rates for all regions of the United States. USDA said the annual farms and land in farms report for the first time would publish data on the number of small farms with less than $1,000 in sales that could be considered a farm. USDA's official definition of a farm is "any establishment from which $1,000 or more of agricultural products were sold or would normally be sold during the year." USDA's farms and land in farms report will be released on Feb. 23.

Pesticides Fail Quality Standards, Says FAO. Around 30% of pesticides marketed in developing countries, with an estimated market value of $900 million annually, do not meet internationally accepted quality standards, the U.N. Food and Agriculture Organization said Thursday, according to REUTERS. "They are posing a serious threat to human health and the environment," the FAO and World Health Organization (WHO) said in a statement. "These poor-quality pesticides frequently contain hazardous substances and impurities that have already been banned or severely restricted elsewhere," said Gero Vaagt of Rome-based FAO's pesticide management group. Such pesticides often contribute to the accumulation of obsolete pesticide stocks in developing countries, he added. The global market value for pesticides is estimated at $32 billion in 2000 with the share of developing countries around $3 billion. In developing countries, pesticides are mainly used for agriculture, but also for public health, such as insecticides for controlling insects speading malaria, according to this article.

Alternative Fuels Program Launched. USDA has selected 79 bioenergy plants in 19 states to participate in a $150 million program encouraging production of alternative fuels, REUTERS reports. The 2001 bioenergy program, announced last October, makes cash payments to companies that increase purchases of corn, soybeans and other commodities to expand production of ethanol, biodiesel, or other biofuels. U.S. producers can receive subsidies of up to $7.5 million per year, the USDA said. Under the program, the USDA projected during the next 10 months ethanol and biodiesel production would increase by 246.2 million gallons and 36.5 million gallons, respectively. The news agency says President George W. Bush is preparing a broad national plan to increase domestic energy supplies, including allowing oil and gas companies access to the Arctic National Wildlife Refuge in Alaska. USDA chose ethanol and biodiesel plants in Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, South Dakota, Tennessee, Utah and Wisconsin.

Tyson Recalls Chicken for Allergen. Tyson Foods Inc., Berryville, AR, is recalling voluntarily about 50,000 pounds of chicken wings because they contain wheat flour that is undeclared on the label. USDA's Food Safety and Inspection Service made the announcement. Wheat flour is a known allergen. Persons who have an allergy or severe sensitivity to the wheat flour run the risk of possible allergic reactions if they consume this product. The product was distributed to military installations nationwide and exported to U.S. military installations in Asia, the Middle East and Germany.

February 1, 2001

Corn Growers Tout Biotech Management. The nation's corn growers claim they are maintaining "responsible stewardship" of biotech crops. The National Corn Growers Association (NCGA) says a recent survey shows corn growers overwhelmingly support insect resistance management (IRM) plans designed to ensure continued effectiveness of Bt corn. IRM plans are designed to keep the insects from developing resistance by providing a "refuge" of conventional corn where susceptible insects can breed.

PETA Crosses a Line; Targets Children on Milk. The animal rights group People for the Ethical Treatment of Animals (PETA) is using cartoon characters to discourage milk drinking among young children and teenagers, and the outcome of "this irresponsible campaign" could have serious health implications, say dairy industry officials.

Anti-Biotech Not on CSPI Agenda. Michael F. Jacobson, who heads the Center for Science in the Public Interest, a major consumer advocacy group, says his organization has not joined the anti-biotech campaign to halt agricultural biotechnology because "it is a powerful tool to increase food production, protect the environment, improve the healthfulness of foods, and produce valuable pharmaceuticals. It should not be rejected cavalierly."

ACGA Says Biotech Causing Shrinking Markets. Recent announcements that two of the top three grocery store chains in the United Kingdom will only sell meat products from livestock fed non-genetically modified feeds underscores how export markets for U.S. farmers continue to diminish, according to the American Corn Growers Association.

House Panel Gets Commission Report. The House Agriculture Committee examined the final report of the Commission on 21st Century Production Agriculture Wednesday as members prepared to undertake the process of building a consensus in future farm policy. As directed by the 1996 farm law, the commission was required to do a comprehensive review regarding the current status of agriculture, taking into account economic risks, food security, trade, international competitiveness of United States production, farmland values, producer incomes, and regulatory and tax relief for farmers and ranchers.

Cotton Looks to Farm Bill for Profits.National Cotton Council President Robert McLendon says that NCC delegates' consensus on specific farm program provisions will help restore profitability to the cotton. McLendon, of Leary, GA, said that delegates to the NCC's annual meeting are focusing on specific program provisions to complete already agreed upon agricultural policy principles.

News Summaries

Team from Japan to Observe StarLink Testing. REUTERS reports that Japan's Health, Labor and Welfare Ministry next week will dispatch a small team of officials to the United States to observe government testing for StarLink bio-corn. Tokyo continues to find traces of the unapproved variety in U.S. shipments. StarLink, made by France's Aventis SA, is barred by U.S. regulators for human use because of concerns that it might cause allergic reactions. However, the corn is approved for animal consumption in the United States. Japan said it had found traces of StarLink corn in one of five samples sent Jan.15 by the United States for food use, the third such discovery in about a month. The same sample had tested negative before leaving the U.S.

Green Gains from Mad Cow Fears. Europe's spiraling mad cow disease crisis has lead to a renewed push for greener farming, but any transition away from industrialised, intensive agriculture is fraught with obstacles, reports REUTERS from Amsterdam. An increase in mad cow cases over the past few months has given new life to "fledging policies throughout the region, designed to soften the environmental impact of farming," the article says. But any attempt to radically transform farm techniques that have boosted yields and cut costs will come up against realities of who will pay the bills and whether green products will be competitive internationally. Even environmental groups agree that it could be decades before Europe sees major changes in farming practices.

Japan Consumer Groups Claims More StarLink.&nb