January 31

USDA Works Early to Prepare for Farm Law.  Secretary of Agriculture Ann Veneman Wednesday said USDA agencies already were preparing to implement a new farm law once Congress approves a final bill that President Bush then signs. While there will be much work to be accomplished for implementation, and in some instances public input, Veneman said early planning is critical to the process. She made the remarks in Savannah, GA, where she had been rerouted from Kansas City where inclement weather canceled her meeting there with USDA employees. 

Meat Packers Lobby Hard Against Packer Farm Bill Amendment.  When the Senate returns to its farm bill debate, possibly the week of Feb. 11, the American Meat Institute hopes to have lobbied senators to retract an amendment approved last month that would prohibit meat packer ownership of livestock under certain conditions and instead mandate an economic impact study on the subject. "We are convinced that once the sweeping and devastating impacts of the amendment are made clear, most level-headed senators would agree that a study is a far more prudent approach," said AMI President J. Patrick Boyle.

Farm Bureau Tells Senate to Follow Bush's Lead. The American Farm Bureau Federation thinks it's time for the Senate to follow up on President Bush's call for an end to the estate tax. Bush called for an end to the so-called death tax in his State of the Union speech. Farm Bureau today urged the Senate to follow that lead by permanently repealing death taxes. "We were pleased to hear President Bush call for an end to death taxes and such action by Congress will definitely help the farm and ranch families who face this burdensome penalty," said AFBF President Bob Stallman. "Only repeal can erase the burden and uncertainties of estate tax planning," Stallman said. "Many farmers and ranchers feel compelled to spend money for estate planning, an expense that is a drain on ongoing farm operations. And, no one can guarantee that all their efforts will save their farms when they die. Farms are capital-intensive businesses whose assets are not easily converted into cash. In order to generate the funds that are needed to pay hefty death taxes, heirs may need to sell part of the businesses. When too many parts are sold, the economic viability of the farm is destroyed." 

Farmers Union Reiterates Packer Ban Support.  The National Farmers Union (NFU) underscored its support for prohibition of packer ownership of livestock with letters to senators urging that the amendment to prohibit packer ownership more than 14 days before slaughter be retained. "Our nation's farmers, ranchers and independent feedlot owners want competition in the marketplace," said NFU President Leland Swenson. "Packers who own livestock can use their own animals to immediately depress livestock market upturns. Self-dealing by packers restricts and often eliminates the ability of small- and medium-sized producers to access the market." Since the amendment was approved, says NFU, "large agribusinesses, and others who benefit from decreased competition, have worked to undermine the intent of the amendment. NFU is urging senators to retain the language as it continues the farm bill process." 

Australia's Vaile Finds 'Good Hearing.'  Australian Trade Minister, Mark Vaile, says he has been given a "good hearing" by senior U.S. officials over Australia's concerns on U.S. agriculture and steel policies, according to the AUSTRALIAN BROADCASTING CORPORATION. Vaile has been in Washington where he lobbied against proposed U.S, steel quotas and the proposed farm bill. Vaile and U.S. Trade Representative Robert Zoellick have asked officials to continue work on the possible structure of a proposed free trade agreement between the two countries. 

March 1 and Avian Flu May be Over.  REUTERS reports from Harrisburg, PA, that an outbreak of avian flu among Pennsylvania poultry flocks, which caused Japan and the Philippines to impose temporary import bans on poultry products from the state, could be declared over as early as March 1. The avian flu virus, confirmed in six flocks from Union and Juniata counties just northwest of Harrisburg, has led the Pennsylvania Agriculture Department to destroy an estimated 180,000 birds since mid-December. The low-pathogenic viral strain known as H7N2 does not harm humans. It was last detected more than three weeks ago, on Jan. 7, raising hopes among state farm officials that the outbreak already has come to an end. But Bruce Schmucker, a veterinarian who oversees regulation and compliance at the state Bureau of Animal Health and Diagnostic Services, said authorities will not know for sure that the virus has been eradicated until seven contaminated farms are disinfected and test negative for new pathogens. 

Openness Called for in Food Scares.  . REUTERS reports from Marrakesh, Morocco, that food safety regulators believe authorities should be completely open in assessing the risks during food scares to avoid misunderstanding and public panic. They were speaking at a U.N.-sponsored global forum. "Some concerns were expressed that the mass media may misreport a food safety emergency and cause public panic," the forum said in a final statement after three days of talks involving about 300 food safety experts from 104 countries. "It was suggested that to avoid this circumstance and build trust there must be complete transparency in the risk assessment process and open, direct communication with the media," it said. The meeting, sponsored by the United Nations Food and Agriculture Organization (FAO) and World Health Organization (WHO), began on Monday in the Moroccan city of Marrakesh in the shadow of a new food scare in Europe.
 

January 30

Packer Amendment Takes on New Dimensions.  Interpreting a controversial amendment to the Senate farm bill by Sens. Charles Grassley (R-IA) and Tim Johnson (D-SD) has pitted several agricultural law professors against a group of agricultural economists in a seldom-seen public debate. The amendment prohibits packer ownership of cattle more than 14 days before slaughter. 

Pork Producers Move from Neutral to Opponent Status.  The National Pork Producers Council has switched gears on its position regarding the amendment to the Senate farm bill that seeks to prohibit packers from owning livestock 14 days prior to slaughter. One particular feature of the amendment the NPPC found unacceptable was that it applies to pork, beef and lamb but not poultry.

Plaintiffs Withdraw Part of Pork Checkoff Challenge.  A legal challenge to the settlement continuing the pork checkoff program has ended in the trial court. The Campaign for Family Farms (CFF) asked the federal trial court to dismiss its claim that Agriculture Secretary Ann Veneman's decision last February to continue the checkoff was "arbitrary and capricious." The constitutional challenges to commodity checkoff programs continue. In December the federal court ruled that Veneman acted in accordance with the law when she entered into a settlement agreement with the Michigan Pork Producers Association, the National Pork Producers Council (NPPC) and three Michigan pork producers continuing the Pork Checkoff Program. The agreement also required the administrative separation of checkoff and non-checkoff activities. That separation was completed in July when responsibility for pork promotional, educational, and research programs was transferred from NPPC to the National Pork Board. In its December decision, the trial court withheld judgment on CFF's "arbitrary and capricious" claim pending examination of the administrative record in the case, which would have included USDA decision-making documents and the pork checkoff petitions submitted by CFF. Only the judge and lawyers for the two sides, by prior ruling, would have been able to examine the petitions. An examination of the petitions would have determined whether USDA staff were correct when they determined in January 2000 that CFF fell short of the number of petitions required to trigger a pork checkoff referendum. 

Philippines Suspends Some U.S. Poultry Imports.  REUTERS reports that the Philippines has suspended imports of poultry products from Pennsylvania over a virus outbreak. The temporary ban by the Philippines adds to a similar ban by Japan on U.S. poultry imports and a ban on imports of chicken wing tips by China. But agricultural counselor at the U.S. embassy in Manila, Charles Alexander, said the Philippines' ban was not scientifically justified and added it could damage the U.S. image as a leading producers of quality farm products. The Philippines' ban was announced by Agriculture Secretary Leonardo Montemayor. He said the government would also suspend transhipments from Japan and China of poultry meat, chicks, eggs and semen originating from the United States because of concern that shipments could be diverted to the Philippines. 

China Tries, but EU Still Finds Fault.  REUTERS reports that China claims it has tried its best to meet European Union food standards and criticized the way the EU handled a potential ban on some Chinese exports after finding fault with its control system for medicinal residues. The European Union's Veterinary Committee recommended the suspension of some meat and seafood imports after finding "serious deficiencies" in China's system and the discovery of the antibiotic chloramphenicol, banned in Europe as it can cause a potentially lethal form of anaemia, in shrimps and prawns. A ban would cover rabbit meat, poultry meat, honey, molluscs, crustaceans, frozen shrimps and prawns as well as pet food, affecting hundreds of millions of euros of imports. China is believed to use higher levels of medicines in meat and seafood for domestic consumption than in developed countries to ensure enough food for its 1.3 billion people, Chinese analysts said. 

Farm Policy Gets Brief Mention in President's Speech.   In a speech that focused heavily on the war against terrorism, President Bush mentioned the farm bill among several domestic priorities for Congressional action in the months ahead. Unlike Trade Promotion Authority or welfare reform, farm policy did not gets its own paragraph in the annual State of the Union address. Nevertheless, its inclusion along with environmental legislation shows the continued political importance of the Farm Belt. According to the official White House transcript of the speech, the President said: " Members, you and I will work together in the months ahead on other issues: productive farm policy -- (applause) -- a cleaner environment -- (applause) -- broader home ownership, especially among minorities -- (applause) -- and ways to encourage the good work of charities and faith-based groups. (Applause.) I ask you to join me on these important domestic issues in the same spirit of cooperation we've applied to our war against terrorism. (Applause.)" 

Codex Agenda Up for Public Discussion.  Potential agenda items for the 34th session of the Codex Committee on Food Additives and Contaminants will be discussed at a public meeting Feb. 4, co-sponsored by the USDA and the U.S. Department of Health and Human Services. The CCFAC establishes or endorses maximum or guideline levels for individual food additives, for contaminants and for naturally occurring toxicants in foodstuffs and animal feed. In addition, the committee prepares priority lists of food additives and contaminants for toxicological evaluation by the Joint FAO/WHO Expert Committee on Food Additives; recommends specifications of identity and purity for food additives for adoption by the Commission; considers methods of analysis for the determination of food additives and contaminants in food; and considers and elaborates standards or codes for related subjects such as labeling of food additives when sold as such, and food irradiation. The committee's 34th session will meet March 11-15, 2002 in Rotterdam, The Netherlands. The Feb. 4 meeting from 1-4 p.m., in Conference Room 1409, Federal Office Building 8, Food and Drug Administration, 200 C St., SW, Washington, DC. To submit comments or to receive copies of documents on the agenda, contact the FSIS Docket Room, Docket #01-047N, U.S. Department of Agriculture, Food Safety and Inspection Service, Room 102, Cotton Annex, 300 12th Street, SW, Washington, DC 20250-3700. The documents are also available electronically at http://www.codexalimentarius.net/ccfac34/fa02_01e.htm. 

Scrapie May Mask Mad Cow Disease.  REUTERS reports from Marrakesh, Morocco, that the world animal health organization says countries must test sheep flocks infected by scrapie, because the disease could mask a form of the deadly mad cow disease. Alejandro Thiermann, president of the Animal Health Code Committee at the International Epizootic Office (OIE), said that should bovine spongiform encephalopathy (BSE) be present in sheep, it would be much like scrapie. "Although there is no scientific evidence proving that scrapie poses a threat to humans, the needed differential tests are essential to answer this question," he told REUTERS in an interview. 

Snow Brand President Quits.  KYODO NEWS reports that Snow Brand Food Co. President Shozo Yoshida has resigned in the face of a scandal involving false labeling of beef in connection with mad cow disease. The scandal has widened to include two other sections of the company. ''As a food product maker, we were in a position to contribute to society and protect the public's health, so this grave offense is a betrayal of society,'' Yoshida said at an emergency news conference at the firm's Tokyo headquarters. ''I do not know how I should apologize to the public.'' Yoshida resigned together with Hiromi Sakurada, an executive chief operation's officer in the firm's meat business division. The company's board of directors chose Koshiro Iwase, a board member, as the new head of the company in the morning, Yoshida said. He also said the company is withdrawing from the meat business. 

A Green English Blueprint for Farming Issued.  REUTERS reports that green issues dominate a new blueprint for the future of rural England, but farmers already are up in arms over how much aid they will get. "2001 was a terrible year for farming, but the disaster of foot-and-mouth was just the latest blow to hit the industry and rural economy," Sir Donald Curry, chairman of the Commission on Food and Farming, said as he unveiled the report. "Radical measures are needed to cut through this deeper malaise. Tinkering at the edges will not turn the industry around," he said of the report, which outlines proposals requiring 500 million pounds of funding over the next three years. The report, commissioned by the government at the height of the UK foot-and-mouth crisis, advocates early and radical reform of the European Union's Common Agricultural Policy (CAP) in the next 10 years, centering on a 10% increase from 2004 in so-called modulation.

January 29

IDFA Finds Little to Support in USDA Decision. The International Dairy Foods Association (IDFA) has submitted two sets of comments with USDA regarding Class III and IV pricing recommendations. IDFA and its three constituent organizations filed one set of comments, noting a "strong disagreement" with numerous aspects of the recommended decision. Another set of comments was filed on behalf of 32 companies and organizations urging USDA to commit to "certain fundamental principles" on flexibility and fairness for its final decision. 

Ethanol Record Set for 2001.  Not surprisingly, U.S. ethanol production set a record of 1.77 billion gallons last year, nearly a 10% increase from the 1.63 billion produced the year before and 20% more than was produced in 1999 when 1.47 billion gallons were produced. According to data from the Energy Information Administration (EIA), a new record for production in December also was set. More than 124,000 barrels per day (b/d) were produced, exceeding the previous December record of 113,000 b/d set the year before. New monthly production records were set 11 out of 12 months last year. 

Harkin Vows to Protect Livestock Ownership Ban.  Senate Agriculture Committee Chairman Tom Harkin (D-IA) says he will fight any attempts to remove from the Senate farm bill a provision to ban meat packers from owning livestock prior to processing. He also pointed to a paper authored by a group of agricultural lawyers, including Neil Harl of Iowa State University which favors the amendment and refutes recent criticisms against the ban on packer ownership.

English Farming Report Due.  REUTERS reports that a long-awaited blueprint on the future of English farming will be released today that is expected to recommend a "greener" approach to farming. Farm income has been hammered in England from mad cow disease and last year's foot-and-mouth epidemic as well as years of a pound trading high against Europe's currencies and limiting exports. The Commission on Food and Farming, chaired by former Meat and Livestock Commission head Sir Donald Curry, will present its report to Environment, Food and Rural Affairs Secretary Margaret Beckett. Government sources say it will call for sweeping changes to the subsidy system, ending the financial imperative to produce intensively and paying farmers instead to work in a way that protects the countryside. Organic farming is also likely to be encouraged. 

Japan Suspends Rice Distribution. KYODO NEWS reports Japan's Food Agency has suspended temporarily the sale and distribution of all imported rice. The agency discovered the material of some bags which contained rice imported from the United States had a lead content in excess of safety levels. The suspension applies to 730,000 tons of rice held by the government and 64,000 tons in the distribution network, the agency said. The rice in the bags under investigation was found to pose no safety problem, the agency added. The suspension allows the agency to examine all bags of imported rice and will be lifted once their safety is confirmed. Still, distribution of imported rice could remain suspended for about a week or more. "They (the bags) may have been contaminated with lead in the process of dyeing," an agency official said. The U.S. embassy in Tokyo issued a statement saying the Japanese government's tests found "no lead in the rice itself." 

U.S. Releases Blocked Afghan Assets.  REUTERS reports the United States has released $223 million in blocked assets to Afghanistan's interim government. The money will be used as part of a reconstruction program for a country battered by more than two decades of war, the White House said on Monday. The White House also detailed provisions of its earlier pledge of $296.75 million for Afghan aid, saying it would include $122 million in food assistance. The food aid is to include $45 million to provide food for students, teachers and workers under USDA's 416(b) program and $77 million under its PL480 program to help in a transition from relief to recovery. A USDA official told REUTERS the $45 million portion of the food aid likely will be used to purchase wheat, as well as some soybean oil. But the official said there still were no details on amounts for each commodity. A spokeswoman at the U.S. Agency for International Development said she did not yet have details on the $77 million portion of the food relief plan. 

Japan Seeks New Food Safety Agency.  KYODO NEWS reports that Japan's agriculture ministry and the health ministry are discussing the creation of a food safety agency in fiscal 2002 by combining divisions in charge of administrating policy related to food safety and hygiene in the livestock industry, ministry officials said Monday. The government was publicly criticized for its failure to prevent mad cow disease from spreading to Japan by curbing production and import of meat-and-bone meal, a cattle supplement made from cow parts that is suspected to be the main cause of the brain-wasting illness. The agency is being considered by the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Health, Labor and Welfare to ensure the safety of foodstuffs by overseeing the entire process from production to distribution to retail sales.

January 28

Lamb Ad Campaign Launched.  Lamb industry officials believe a new advertising campaign for U.S. lamb is the most significant marketing effort in nearly a decade. The campaign is part of an effort by lamb producers to help build awareness and demand for fresh U.S. lamb products. 

Beef, Taco Bell Team Up on Steaks.  Beef producers are joining Taco Bell again to help meet consumers' continuing demand for steak in restaurants. The focus of the partnership is to promote the new "Taco Bell Steak Quesadilla." During the Jan. 26-March 9 promotion, Taco Bell will focus on moving millions of pounds of steak through most of its 6,300 participating restaurants nationwide. Within the beef industry, this promotional program is being coordinated on behalf of the Cattlemen's Beef Board (CBB) and state beef councils by the National Cattlemen's Beef Association (NCBA).

Snow Brand Now Admits Mislabeled Beef.  Snow Brand Food Co., already reeling from meat falsely labeled because of mad cow disease, now admits two employees intentionally mislabeled beef originating from Hokkaido to pass it off as being from Kumamoto Prefecture, according to KYODO NEWS. Two employees at the company's Kansai Meat Center in Itami, Hyogo Prefecture, in September falsely labeled 20 to 30 kilograms of beef produced in Hokkaido as being from Kumamoto Prefecture, after the firm's clients urged them not to deliver Hokkaido beef due to mad cow fears, company officials said. Two of the three cows confirmed in the country to have been infected with the deadly disease, formally known as bovine spongiform encephalopathy (BSE), were raised in Hokkaido. ''The two employees told the company during a hearing on Sunday they mislabeled the beef of their own volition,'' Hiromi Sakurada, executive chief operation's officer of the Meat Business Division at Snow Brand Food, told a news conference at the company's head office in Tokyo. ''We just cannot believe such a thing happened...I offer my sincere apology to our customers, business partners and shareholders and will work to determine the details of the case,'' he said, denying the employees acted on company instructions. 

Japan Frees Afghan Assets.  KYODO NEWS reports the Japanese government will free assets held in Japan by four Afghanistan banks. The decision to unfreeze assets held by Afghan National Bank, Agriculture Development Bank of Afghanistan, Afghan Export Bank and Export Promotion Bank of Afghanistan follows a U.N. sanctions committee's removal of the banks from a list of Taliban-controlled institutions and groups. The action becomes effective Tuesday. A total of 279 individuals and organizations linked with the Taliban, however, remain subject to the asset freeze. 

U.S. Farmers Lose from Cuba Embargo.  THE ASSOCIATED PRESS reports an anti-embargo group says U.S. farmers lose about $1.24 billion a year from U.S. sanctions against Cuba. A study commissioned by the Washington-based Cuba Policy Foundation estimated that America is losing an estimated $3.6 billion more in related economic activity because of the 40-year-old U.S. embargo. "Isolation has not led to reform, and it's costing farmers and drug companies that want to do business," said Sally Grooms Cowal, foundation president and the former U.S. diplomat who housed the Cuban boy Elian Gonzalez during the last part of his stay in America. "This study should encourage Congress to take some steps if only to help out American farmers," Cowal said by telephone on Sunday. Established last year, the foundation describes itself as a nonpartisan, centrist organization that believes changing America's Cold War era policies toward Cuba are in the U.S. national interest. Foundation leaders say ending U.S. trade and travel restrictions could stimulate democratic reform in this still closed society. Grooms is among hundreds of American policy makers and business people who have traveled to Cuba in the past month to explore possibilities for rapprochement between the two countries, which have had no diplomatic relations for four decades. 

Elevators Shrinking in Rural America.  REUTERS reports from Chicago that family-owned grain elevators may become the latest casualty of consolidation within U.S. agriculture. Elevator operators, as with many smaller farmers, are struggling from tight profit margins and a shrinking customer base, industry experts say. "The days of the ma-and-pa grain elevators are gone. There's been major consolidation, and the industry is going to continue to shrink and get tougher," said Mike Turner, a U.S. grain industry consultant who taught agricultural economics at the University of Nebraska professor for 35 years. But these country elevators, which receive grain by truck and load it into railcars, are not disappearing; they're changing owners. They have been transformed by economies of scale just like the farming operations they have served. Small farmer-owned cooperatives have been banding together to form larger co-ops, sometimes only to fail still because of the pressure of competing with big grain processors or exporters. 

EU Hopefuls Decide to Cooperate with Each Other.  REUTERS reports that countries wanting European Union membership have pledged closer cooperation on as entry talks move to the final states. They hope joint pressure can win them better terms of membership. Top EU negotiators from six ex-communist states said after a meeting in the Czech spa town of Karlovy Vary they had a common goal in fighting for a good deal for their farmers in tough negotiations that are expected to conclude by the year's end. On Jan. 30 the European Commission, the EU executive, will reveal its proposals on how much new members should get from the vast farming and aid budgets. The proposals are an attempt to placate current members worried about the cost of EU enlargement in 2004 but will be a bitter pill for applicants, who still insist they are entitled to the full benefits of Union membership on entry. The plans are likely to say direct payments to farmers in new member countries should be phased in over 10 years with a starting level of 20-25 percent of the amounts existing EU states receive.

January 25

Zoellick Lobbies Mexicans Three Times.  U.S. Trade Representative Robert B. Zoellick says he has had three meetings with Mexican ministers this month in which he stressed the "illegality and serious damage of a new protectionist, discriminatory Mexican tax" on soft drinks made with high fructose corn syrup (HFCS). 

FAO Calls for End to Antibiotic.  The United Nations Food and Agriculture Organization (FAO) has suggested that countries stop the use of chloramphenicol in food production. FAO said that chloramphenicol is a broad-spectrum antibiotic used in human and pet animal medicine, and it is still being applied in some countries in animal production, including aquaculture. FAO's comment was made in relation to the recent food scare from chloramphenicol residues in animal feed.

Philippines Will Monitor U.S. Chicken Imports.  REUTERS reports the Philippine government will monitor imported chicken from the United States after the discovery of a low-pathogenic avian influenza virus in some flocks in the United States. Agriculture Secretary Leonardo Montemayor said he had ordered animal quarantine inspectors either to destroy or ship back chicken shipments from the United States suspected to be carrying the disease. He said Manila cannot ban imports of poultry and poultry products from the United States as the outbreak of the disease in some flocks in Pennsylvania was not considered serious enough under international standards to warrant a quarantine. "If we order an import ban because the chicken were infected with a low-pathogenic bird flu, we may be imposing an unnecessary import restriction that can be construed as a trade barrier," Montemayor said. 

Lamb Ad Campaign Begins.  A new advertising campaign for American lamb was unveiled in San Antonio, considered by the lamb industry as the most significant effort in support of U.S. lamb in nearly a decade and part of a heightened effort by lamb producers to help build awareness and demand for fresh American lamb products. "We are pleased to announce the launch of the new American lamb advertising campaign as a way to help educate consumers about the many benefits of purchasing and enjoying American lamb," said Paul Rodgers, director of marketing for the American Lamb Council. "Research showed us that 76% of consumers don't know there is a difference between American lamb and imported lamb, yet when offered the option consumers overwhelmingly preferred lamb from the United States. Therefore, it is critical for U.S. producers to let consumers know about the benefits of American lamb and these ads are a key part of our overall plan to do just that." The new ads are one part of a recent effort funded by a grant from USDA to educate consumers that American lamb offers larger, more tender, milder-tasting cuts of meat. Retail promotions, outreach to the culinary community, a new Fresh American Lamb seal and extensive public relations activities all combine with the ads to create an integrated campaign promoting the benefits of American lamb. 

Japan Files Against Snow Brand.  REUTERS reports that Japan's Farm Ministry is filing a criminal complaint against Snow Brand Food Co Ltd claiming the company falsely labeled its beef products in an attempt to get government money. The announcement came as shares again declined in the wake of the company's admission Wednesday it had labeled Australian beef as Japanese. "We are currently in the process of filing the complaint against Snow Brand for fraud," a ministry spokesman said. Snow Brand Food's president Shozo Yoshida hinted that he may resign to take responsibility, KYODO NEWS said. "I would like to make clear my responsibilities soon," he was quoted as telling reporters. 

NPPC Hires from Within.  The National Pork Producers Council (NPPC) has named Neil Dierks, 44, as CEO effective Feb. 12. Dierks will succeed Al Tank who resigned on Oct. 15. Dierks, beginning in 1990, served NPPC in a series of senior executive positions including executive director of operations, vice president for research and education and senior vice president for programs. Prior to his service with NPPC, Dierks was the special activities director for the Iowa Pork Producers Association and marketing director for the Iowa Corn Promotion Board. As CEO, Dierks will divide his time between the NPPC offices in Des Moines and Washington, DC. 

WTO's Moore Optimistic on Russia's Membership.  REUTERS reports that World Trade Organization Director General Mike Moore believes Russia, the last major power outside the body, could become a member by the spring or early summer of 2003. "Russia is much closer (to joining) than people think. We could surprise ourselves," Moore told a conference of REUTERS editors. "I believe it can be done by May or June next year if everything goes right... President (Vladimir) Putin is very engaged on the issue and has some top-class people working to make sure it happens." 

Study Examines Biotech Sharing Methods.  THE ASSOCIATED PRESS reports from Portland, OR, that USDA will fund a three-year, $2 million study examining the way universities and private industry share agricultural biotechnology. Terri Lomax, an Oregon State botanist, will lead the study with Dave Ervin, a Portland State environmental science professor. The study will look at how researchers share information with each other and the public, as well as the long-term effects of university relationships with private industry. Ervin said public concern over biotechnology has been growing as private industry moves to patent and license various inventions.

January 24

No Financial Benefits from GM Crops, Says Study.  Michael Duffy, associate director of the Leopold Center for Sustainable Agriculture at Iowa State University, says there are no financial benefits to farmers planting genetically modified corn or soybeans. Duffy repeated a study he conducted two years ago and again found that the use of genetically modified seed did not appear to have an impact on a farmer's bottom line for either corn or soybean production. 

Borlaug Cited for NAS Award.  The National Academy of Sciences (NAS) has selected Norman E. Borlaug to receive the academy's most prestigious award, the Public Welfare Medal. Established in 1914, the medal is presented annually to honor extraordinary use of science for the public good. Borlaug has dedicated his life's work to improving agricultural techniques and food production in the developing world. A leader in the war against hunger and deprivation, Borlaug is credited with preventing the deaths of millions through the development and widespread use of high-yielding, disease-resistant wheat strains grown with improved agronomic practices.

Soy Meal, Wheat, Suffer from Indonesia Decision.  REUTERS reports from Singapore that a decision by Indonesia not to use a U.S. farm export credit guarantee program this year likely will affect U.S. soy meal and wheat sales. Traders said it also could provide an opportunity for alternative origins. Jakarta's decision not to use the GSM-102 program in 2001/02, U.S. grain and soy trade officials said, could mean a substantial impact. "Our soy meal sales are going to be hit. There is no question about it," John Lindblom, regional director for Southeast Asia of the American Soybean Association, told REUTERS. "Once the South American season starts, you probably won't see U.S. soy meal sales to Indonesia if the GSM program is not in place," he added. Farid Bahar, director general of Food Crops at Indonesia's Agriculture Ministry, said on Wednesday Jakarta would not use the programme in order to protect locally-produced commodities. 

Korea Seeks to End Pork Import Ban.  REUTERS reports that South Korea will end bans on pork imports from France, Ireland and the Netherlands, imposed last March after outbreaks of foot-and-mouth disease in Europe, an Agriculture Ministry official said on Thursday. "The Korean government is following a procedure to lift bans on pork imports from France, Ireland and the Netherlands soon," the ministry official said, although he declined to say exactly when the restrictions would be lifted. In September, these countries regained the international status of being officially free of foot-and-mouth disease by the Paris-based International Office des Epizooties (OIE). The animal health body declared Britain free of the highly contagious livestock illness on Tuesday. But the Korean ministry official said a lifting of the ban on British pork was not being considered. "The ban on the pork imports from Britain is not being considered, because the British government has not yet officially requested to lift the ban," he said. 

Vaile Will Argue Farm Bill with Veneman.  THE AUSTRALIAN BROADCASTING CORPORATION says Australia's Trade Minister Mark Vaile will argue for a reduction in the size of the farm bill's subsidies when he meets Agriculture Secretary Ann Veneman next week. But he says he's not prepared to offer any trade concessions in return for changes to the bill. The Bush administration is behind a bill far different from the measure likely to be approved by the full Senate when that chamber returns to floor debate on the farm bill, probably next week. Vaile has said, "We will continue to argue on the basis that we have a very open trading regime here; the only, if it can be called an impediment or a condition of entry into this market, is quarantine. We must ensure that we maintain our pest and disease status in Australia, and that's it. And so it's not a matter of trading one thing off against another, it's a matter of moving towards a fairer trading system globally." 

USDA Tightens Rules for Humane Animal Treatment.  REUTERS reports that USDA will propose stricter meat industry guidelines to make sure animals destined for human consumption are treated humanely. Fast-food giant Burger King Corp., which petitioned the government for the measures, made the claim Wednesday. Burger King, owned by London-based Diageo Plc, joined animal rights groups last June to urge USDA to adopt a "zero tolerance" policy for animal welfare violations at U.S. slaughterhouses. "We believe that people who are eating our products are assuming the food animals being used are treated in a humane manner," said Burger King spokesman Rob Doughty. "We just want everyone to do their part and that includes the government." In a letter to the company, USDA said the company's petition was considered when developing the proposed rule and "the fundamental issues raised by it will be met in the rulemaking." Carol Blake, spokeswoman for USDA's Food Safety and Inspection Service, said the department was reviewing all aspects within the meat industry. Blake said no date has been set for when USDA will issue the proposed rule. 

French Threaten Japan on Pork Ban.   France has told Japan it will go to the World Trade Organization unless Japan immediately ends its ban on imports of French pork imposed over foot-and-mouth fears. In a letter to the French hog breeders' group FNP, Farm Minister Jean Glavany said France might complain to the WTO and the world animal health organization OIE if Japan did not open its market to French pork soon. Japan and South Korea are the only countries that have maintained an embargo on imports of French pork, imposed after the highly contagious livestock illness was discovered last March in France. Glavany said he was hopeful South Korea would soon remove its ban, noting that the country's farm ministry had told him conditions for resuming imports would be presented this week.

January 23

Hume Seeks HFCS Relief from Mexicans.  National Corn Growers Association (NCGA) President Tim Hume met with Mexico's Secretary of Economy Luis Derbez in Washington late last week to discuss their mutual concerns about Mexco's taxation of soft drinks containing high-fructose corn syrup (HFCS). The tax on high-fructose corn syrup, NCGA says, could place an unfair disadvantage on soft drinks produced from corn sweetener and U.S. corn sales could face a $66 million reduction. 

Beef Marketing Niche Found for Moderately Priced Steaks.  Through the beef checkoff, beef producers are working with a national restaurant chain to meet consumer demand for more moderately priced steak in restaurants. The foodservice chain that includes Ground Round Grill & Bar and Tin Alley Grill restaurants has become the first to promote "beef value cuts" on the menu. Value cuts are single muscle portions taken from the chuck and round.

German Calf Got Banned Antibiotic.  REUTERS reports that a calf raised in Germany has tested positive for an antibiotic of the same type which caused an alert involving imported Dutch meat, German authorities said on Wednesday. The calf has been slaughtered and the meat probably sold in the Netherlands, the agriculture ministry in the German state of Lower Saxony said in a statement. The animal tested positive for chloramphenicol, used to treat such life-threatening diseases as anthrax and typhoid. The antibiotic is restricted to such serious infections because of the risk of its causing a potentially lethal form of anaemia in humans. 

Japan's Snow Brand Suffers Another Blow.  THE WALL STREET JOURNAL reports that Japan's Snow Brand Food Co. has confirmed it repackaged imported beef as a domestic product in an effort to reduce inventories and seek government subsidies. The article says the incident may prove crucial to the Snow Brand group, still struggling to recast its tainted brand image after Japan's worst food poisoning case on record, caused by the company's contaminated milk products in the summer of 2000. Investors sold of shares of Snow Brand Food and its parent, Snow Brand Milk Products Co., which was at the center of the poisoning incident. Traders said the two companies' share prices probably will remain under pressure as investors assess whether fundamental problems with the Snow Brand group's management were behind the incidents. 

Drought-Resistant Cotton Closer.   THE ASSOCIATED PRESS reports scientists in Georgia and Israel have identified genes in cotton plants that could bring about drought-tolerant varieties and help farmers save on irrigation costs. Andrew Paterson, a University of Georgia geneticist who headed the research, said the six-year, $280,000 study showed that by changing the genetics of cultivated cotton, scientists could give it the traits that help wild cotton survive in semiarid conditions. "Many of these genes were thought to have been lost in the process of domesticating cotton for high yields under well-watered conditions," Paterson said. With additional research, scientists might be able to incorporate the genetic changes into cultivated cotton within five years, with a conservative goal of increasing cotton's water efficiency by 10%, Paterson said. Hugh Earl, a University of Georgia plant physiologist, estimates that Georgia cotton farmers could save 12 billion gallons of water annually if cotton's water efficiency increased by 10%. That's enough water to fill 500,000 average-sized swimming pools. 

Vaile Wants Beef Imports Widened.  THE WALL STREET JOURNAL reports that Australian Trade Minister Mark Vaile will put pressure on the Bush administration to increase a beef import quota after Australian exporters reached an annual 378,214 metric tons limit in 2001, an official of the department of Foreign Affairs and Trade said Tuesday. Vaile will visit Washington, New York and Detroit Jan. 27 through Feb. 3, and wants a global quota increase of 35,000 tons part of which would be available for Australia, the official told reporters. Exporters from Australia, the world's biggest beef exporter, reached the quota limit early in December 2001, and the official said the likelihood is the quota also will be filled in 2002. Lyall Howard, deputy director of lobby group the National Farmers' Federation, said Agriculture Minister Warren Truss raised the quota issue during a visit to Washington in December. The Administration at the time said they'd look into it," Howard told Dow Jones Newswires. "That opening was made available, there's an opportunity to get that discussion going." 

FSIS Public Meeting Coming on Health Tools.  USDA's Food Safety and Inspection Service will hold a public meeting on Jan. 29-30 to discuss the agency's use of epidemiological data, scientific principles and techniques, and the use of other public health tools. The meeting is intended to be the first in a series of meetings designed to develop a framework of how FSIS will conduct public health investigations and integrate the scientific principles of applied epidemiology into agency activities. On Jan. 29, discussion will focus on the use of applied epidemiology in investigating food-borne illness outbreaks. On Jan. 30, in-plant applications of epidemiological principles and other public health tools will be discussed. FSIS officials will address the agency's public health approach and current thinking on applied epidemiology. Hypothetical scenarios of food-borne illness outbreaks and in-plant assessments will be presented to panels comprised of epidemiologists and food safety experts. FSIS will open the discussion to gather public comments. A meeting agenda will be available at www.fsis.usda.gov. The meeting will be held from 8:30 a.m. to 4 p.m., on Tuesday and Wednesday, Jan. 29-30, at the Holiday Inn Select, 130 Clairemont Ave, Decatur, GA. The notice for the public meeting will be published in the Federal Register on Thursday. FSIS will accept comments on the topics to be discussed at the public meeting. All comments should be submitted to: FSIS Docket Clerk, Docket #01-020N, 102 Cotton Annex, Washington, DC 20250-3700. 

Salmonella Discussion on Internet.  American Meat Institute Senior Vice President of Regulatory Affairs and General Counsel Mark Dopp will join Washington attorney Robert Hibbert in an hour-long discussion of the Salmonella performance standard on www.MeatAMI.com today from 11 a.m. to noon. Dopp and Hibbert, an agriculture and food and drug law specialist with McDermott, Will & Emery, will discuss the implications of the federal appeals court ruling that upheld a lower court decision rejecting USDA's Salmonella performance standard as a measure of plant sanitation.

January 22

GIPSA Seeks to Clarify Captive Cattle Supplies.  USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA) has released a report that seeks to clarify the definition of captive supplies and provides ways that the Department can ensure clear reporting of information in the future. The report was conducted in response to a Congressional mandate in the 2001 Agricultural Appropriations bill. The report, A Captive Supply of Cattle and GIPSA's Reporting of Captive Supply, clarifies GIPSA's definition of the term "captive supply" and compares GIPSA's captive supply statistics to statistics published by other organizations, including USDA's Agricultural Marketing Service.

Czech Republic Seek Unity on Key Farm Issues. REUTERS reports that the Czech Republic wants to unify European Union candidates in their approach to membership talks on the key issue of agricultural policy when they meet this week, Czech EU Chief negotiator Pavel Telicka said on Tuesday. Chief negotiators from six nations -- the Czech Republic, Estonia, Cyrpus, Hungary, Poland and Slovenia -- will meet for two days of meetings in Karlovy Vary 78 miles west of Prague to discuss membership preparations. Telicka told a meeting of journalists that high on the agenda will be forming a united front on agricultural policy, and in particular access to the EU's common agricultural policy (CAP) funds. Agriculture, which takes up almost half of EU spending, costing 40 billion euro ($35 billion) a year, will be one of the thorniest negotiating issues to overcome this year, which is supposed to see entry talks finished in December. "We failed to find a common voice in other chapters (negotiating points)...We hope that will not repeat itself in talks on agriculture," Telicka said. 

India-Pakistan Spat Spills onto Exports. THE WALL STREET JOURNAL reports that the India-Pakistan rivalry has spilled into the commodities market. Pakistan last week said it would block shipments of India's wheat from its land route into Afghanistan - already a lucrative export market for the two nations, traders said Tuesday. An Agriculture Ministry official in Islamabad said Pakistan told the World Food Program, the United Nations main food relief agency, that it won't allow Indian wheat to pass through its territory because the grain carries a disease called Karnal bunt. Pakistan said it feared the disease could affect its own wheat during the transit. Others, however, suggest that Pakistan wants to keep the Afghan market for its own wheat. The row comes as the two are already facing a tough time in finding markets for their over 6 million tons surplus this year because of competition from Central Asia and South America. India plans to export more than 5 million metric tons of wheat, while Pakistan has set a target of 1.3 million tons this year. Any hurdles to exports will strain their fiscal and storage capacity, analysts said. 

China Seeks to Protect Farm Sector. China plans to use technical and scientific barriers to protect its local agricultural sector, state run media reported Tuesday, citing a Ministry of Agriculture official. THE WALLL STREET JOURNAL says the report suggests that despite China's entry into the World Trade Organization last month, commodity importers still face substantial barriers attempting to enter the mainland market. The remarks by a ministry official to the state-run Business Weekly also appear to confirm suspicions that new import rules for genetically modified organisms, or GMOs, were introduced to help increase local soybean prices. Tang Yanli, a senior expert with the agriculture ministry's Information Center, said technical barriers will become increasingly important after China's entry into the international rules-based trading system. Uncertainty about changes to regulations on GMOs have disrupted the $1 billion annual soybean trade between China and the United States. 

Zoellick Extends Wheat Investigation.  U.S. Trade Representative Robert B. Zoellick has extended the U.S. investigation of Canadian wheat marketing practices from today (Jan. 22) until Feb. 15. Zoellick said, "We received a tremendous response to our request for comments on the investigation. Extending the investigation will enable us to thoroughly review and analyze all the information received." The investigation was initiated in October 2000 under Section 301 of the 1974 Trade Act, based on a petition filed by the North Dakota Wheat Commission alleging unfair marketing practices of the government of Canada and the Canadian Wheat Board. On Dec. 21, the U.S. International Trade Commission released a report on Canadian wheat trading practices which Zoellick had requested to assist in the investigation. At the same time, USTR issued a Federal Register notice inviting interested parties to submit comments by Jan.14 on the issues in the investigation. In response, USTR received over two dozen sets of comments, totaling more than 400 pages
 

January 21

Sen. Lugar Criticizes Agricultural Policy. In an editorial/op-ed appearing in today's edition of The New York Times, Sen. Dick Lugar (R-IN), questions "the current misguided path" of farm policy. In his editorial entitled "The Farm Charade", the Ranking Member of the Senate Agriculture Committee, argues that "passage of the Daschle-Harkin bill would halt attempts to reform America's distorted agricultural policy." 

Veneman Wants Japan Poultry Ban Lifted.  Agriculture Secretary Ann M. Veneman has called on Japan to lift a 90-day ban on U.S. poultry and poultry products that was imposed due to the confirmation of a low-pathogenic avian influenza virus in what USDA says was a small number of chickens in Pennsylvania. Late last week, it was reported that Japan would allow U.S. chicken imports if the birds were processed before Nov. 11. The action softened the ban. The partial lifting of the ban was approved because it was believed the flu virus spread to U.S. chicken farms Nov. 12, Japan's agricultural ministry said. Even if the processing of U.S. chicken took place in other countries before importation into Japan, the government will allow them to be brought into the country as long as U.S. documents certify processing occurred before Nov. 11. 

Corn Growers Want California Ethanol Door Opened.  The National Corn Growers Association says indecision by California Gov. Gray Davis has prompted NCGA President Tim Hume to write Davis a letter urging him to keep his commitment to eliminate MTBE from California gasoline by Jan. 1, 2003. "When you originally made that commitment, you and members of your administration expressed the desire to eliminate MTBE at the earliest date possible because of the negative impact using MTBE was having on water quality in California," said Hume. "Today, MTBE is still being used in the overwhelming majority of California gasoline and drinking water supplies in California continue to be contaminated; this has not changed. What has changed is the clear and undeniable existence of a real alternative to MTBE, ethanol."

Australia's Harvest a Mixed Bag. USDA reports Australia's 2001/02 grain harvest, characterized by varied growing conditions across the grain belt, is nearing completion. Queensland and Western Australia began the season with exceptionally dry conditions. While Queensland continued to suffer drought-like conditions, Western Australia began to receive normal precipitation somewhat late in the growing season. The late start of spring and winter precipitation in Western Australia likely cut yield potential. Conditions in New South Wales were generally dry in the north, while the southern region experienced mostly favorable growing conditions as did the other main grain producing states of Victoria and South Australia. In many regions, harvest has been delayed due to late-season rainfall. In other areas, harvest occurred later than normal due to cooler temperatures at the start of the season. In the Wimmera region of west-central Victoria, growing conditions caused a noticeable seasonal shift with the crop maturing later than in the previous season. Satellite imagery of central-west Victoria shows the seasonal difference. Lower yields are expected from the soon to be completed Western Australia and already completed Queensland winter grain harvest. This reduction will be partially offset by the more promising conditions found in the two southern states. In Victoria and South Australia winter wheat and barley the crop area appears to be similar or marginally larger than last season for these areas and crop conditions appear good. Australia winter grain harvest is estimated to be over 90% complete. 

Agriculture Key To Afghan Recovery. REUTERS reports that the United Nations' Food and Agriculture Organization believes peace and long term economic stability in war-ravaged Afghanistan depend on rebuilding agriculture. "The shortest path to national stability will be for the rural population to return to their fields and produce the nation's food," the FAO said in a statement. FAO has a program underway to improve Afghans' access to food as they recover from years of civil conflict. Some 85% of the population depends on agriculture for a living, according to FAO. FAO said that $39 million is needed this year to improve access to food in rural and urban areas by increasing food production and generating income by providing basic inputs such as seeds and fertilizer. The FAO appeal is part of the so-called "U.N. Appeal for the Immediate and Transitional Assistance Program for Afghanistan for 2002," launched at a ministerial conference on Afghanistan in Tokyo. 

German Feed Tests Negative.   REUTERS reports that tests on 11 samples of feed from a consignment thought tainted with chloramphenicol showed the potent drug was not present in measurable quantities. "All 11 tests we have made on the feed from Cuxhaven are all negative," an official in the animal feeds supervision department in the Lower Saxony state agriculture ministry told REUTERS. "We are now working at top speed to make a decision about what should be done with the material, but the position is not so bad as it looked last week." Officials want to track down the feed consignment from a factory in Cuxhaven in Lower Saxony that contains fish ingredients from the Netherlands contaminated with chloramphenicol, which is used to treat such life-threatening diseases as anthrax and typhoid. The suspect feed was delivered to firms in Germany, Denmark, Poland, Romania, Austria and the Czech Republic. 

U.S. Reminds China Trade Is Two-Way Street.  REUTERS reports that U.S. officials says they expect more "bumps in the road" from China's market-opening commitments as a new World Trade Organization member, but they pointedly reminded Beijing that trade is a "two-way street." Jeffery Bader, assistant U.S. trade representative for China, told a U.S. task force that the Bush administration has created an interagency group to monitor China's compliance with its WTO commitments and was prepared to take tough action if China blocked U.S. imports. "I don't know if this is the forum to get into it, but trade is a two-way street," Bader said. "(U.S. Trade Representative Robert) Zoellick has made it very clear to the Chinese that if our exports have problems, then it's a two-way street." Zoellick has told the Chinese "there will be consequences when our products are blocked," Bader said. He was testifying at a hearing conducted by the U.S.-China Commission, a blue-ribbon panel that Congress created in 2000 to examine the economic and security implications of Sino-U.S. trade relations. 

Florida Homeowners Get Right to Sue.  THE ASSOCIATED PRESS reports that a Florida judge has told a group of Florida homeowners opposed to a citrus canker eradication program they can sue the state through a class-action lawsuit. Judge J. Leonard Fleet certified the lawsuit, which could involve about 100,000 homeowners from Broward and Miami-Dade counties. His decision is the latest move in a battle over a state program that has resulted in the destruction of some 333,000 healthy trees in the Miami area since January 2000, according to the AP. Canker is a bacteria that causes unsightly brown blemishes on fruit and can cause it to drop prematurely from trees. It does not harm humans. "This is a very big step in the journey," Robert Gilbert, a Miami attorney representing the homeowners, said. "These homeowners' rights were violated when the state destroyed their trees and refused to pay the compensation equal to replacement."

January 16

Pilot Slaughter Program Expanded. USDA is trying to strengthen a pilot slaughter program now operating in 25 plants that process young chickens, hogs and turkeys. The program will be expanded to additional plants on a voluntary basis. The announcement came from Under Secretary for Food Safety Elsa Murano in a speech to the National Turkey Federation. Started in 1997, the HACCP-based Inspection Models Project (HIMP) is an effort to determine how FSIS can improve the use of its online slaughter inspectors and continue to ensure the reduction and/or elimination of defects that pass through traditional inspection. 

NPPC Comments on EPA's CAFOs, Welcomes Improvements. The National Pork Producers Council (NPPC), commenting on the Environmental Protection Agency's (EPA) proposed changes to regulations governing concentrated animal feeding operations, said the agency "has embraced much of our broad vision for how the Clean Water Act should work for pork producers." The concentrated animal feeding operations (CAFOs) will cover all species of livestock and poultry and are scheduled to become final in December 2002. 

Lamb Partnership Formed for Western Producers. The Mountain States Lamb and Wool Cooperative (MSLWC) has joined B. Rosen & Sons, Inc., a leading lamb supplier, to form Mountain States/ Rosen, LLC, a limited liability corporation. Under the agreement, the MSLWC will supply lambs to Rosen processing and distribution facilities in Greeley, CO, and New York, in effect securing the cooperative's control of the product from the time it is produced to when it reaches the consumer. Sen. Mike Enzi (R-WY), who has worked extensively with the MSLWC, said the group has been negotiating with various entities to attain contracts that will provide markets for lamb meat and wool products.

No Quick End Seen to China's GM Reluctance.  REUTERS reports that China's reluctance to resolve questions about new rules on genetically modified organisms (GMO) is dashing hopes for a quick end to confusion in the global soybeans market. China's officials remained ambiguous on the regulations at a meeting on Tuesday with Chinese crushers, foreign and domestic traders and suppliers of foreign beans, including the American Soybean Association. Implementation details on the GMO rules, announced last Monday and due to take effect on March 20, have frozen trade in soybeans to China, one of the world's biggest soybean buyers. Traders and industry sources say Beijing has raised more questions than answers on how to obtain safety certificates required for imports of GMO products like soybeans -- a delaying tactic apparently aimed at curbing raging imports. They were hoping to see clarification on the rules from various Chinese government bodies including the Ministry of Foreign Trade and Economic Commission and the quarantine bureau. "Until the Ministry of Agriculture and Moftec and CIQ (China's inspection and quarantine bureau) all know the same thing and all give answers that mean something, trade is going to be impacted," said Phillip Laney, China country director for the American Soybean Association. 

Germany Rules on Muslim Slaughter Practices.   THE ASSOCIATED PRESS BERLIN reports that Germany's highest court has ruled that Muslim butchers may slaughter animals according to Islamic law. The ruling resolves a conflict over animal protection laws and was considered an indication that Germany is willing to integrate its Muslim minority. The Federal Constitutional Court upheld a complaint by Rustem Altinkupe, a Turkish butcher from Giessen, whose license to carry out halal slaughter was withdrawn in 1995 after a lower court ruling. German law states that animals must be stunned before slaughter but allows exceptions for religious communities whose customs prescribe ritual slaughter. According to Islamic law, halal meat is killed by a Muslim, who slits the animal's jugular vein and drains all blood from the carcass. Some 3.5 million Muslims - including more than 2 million Turks - live in Germany, and conflicts between German and Islamic ways have repeatedly ended up in court.

January 15

Brazil's Soybeans Benefit from Devaluation.  With Brazil's devaluation of the Real coinciding with record 2000-01 soybean production, the country's soybean sector is expected to benefit most from the devaluation. USDA says Brazilian farmers cultivate soybeans primarily for the export market, while corn and cotton crops are primarily consumed in the domestic market. 

Easter Bunny May Bring a Farm Bill.  The National Corn Growers Association believes a new farm bill could be finalized around Easter. One of the goals of the Bush administration was to have a new farm law enacted before the end of 2001. Because of disagreements in the Republican and Democrat camps, this didn't happen. Senate Majority Leader Tom Daschle (D-SD) pulled the farm bill from consideration before the holiday break after three failed attempts to end debate and proceed to a floor vote. 

Youngsters More Fond of Soft Drinks Over Milk. A recent audit of the beverage category conducted by the Beverage Marketing Corporation (BMC) reveals that beverages other than milk, such as carbonated soft drinks and fruit drinks, are receiving a growing share of the important youth market segment, according to the International Dairy Foods Associaton. As other beverages more aggressively target young audiences (kids and teens), milk could experience an erosion in consumption patterns at an earlier age, which would adversely affect life-long consumption patterns, says IDFA.

Proposed Legislation Seeks Tight Controls on Japan Livestock. KYODO NEWS reports Japan's Agriculture, Forestry and Fisheries Ministry will submit proposed legislation to the upcoming Diet session to tighten controls on the livestock industry, in an effort to prevent mad cow disease. The bill revises the Infectious Livestock Disease Prevention Law to require tests on cows that have died from diseases, officials said during a meeting in Tokyo of local government representatives in charge of livestock farming. It also will seek revisions to the Feed Safety Law to extend the mandatory period for preserving records on feeds to eight years from the current two-year period, the ministry officials said. The bill will be submitted at the regular Diet session to be convened next Monday. Japan's first case of the disease was found in September, and two more cases were confirmed in November and December. 

Australia's Opposition to the U.S. Farm Bill on the Wane. Australia's opposition forces are accusing the government of giving up the fight against the United States' farm bill. Prime Minister John Howard and Agriculture Minister Warren Truss will travel overseas at the end of this month, but neither has plans to visit Washington to lobby against the bill, according to the AUSTRALIAN BROADCASTING CORPORATION. A spokesperson for Agriculture Minister Warren Truss says he will discuss the Farm Bill with U.S. Agriculture Secretary, Ann Veneman during his visit to Japan later this month. Truss will attend a Jan. 26 meeting of the world's five leading agricultural nations, which includes Australia, the United States, Canada, Japan and the European Union. The spokesperson says the government will decide whether to take another farm delegation to Washington after the U.S. Senate releases its timetable for the discussion of the bill. 

Wheat Growers to Hear of Legislation, Sanctions. REUTERS reports from Orlando that producers attending the National Association of Wheat Growers meeting this week will hear about farm bill legislation being debated in Congress and an imminent decision by the Bush administration on whether to impose trade sanctions against Canadian wheat. With the Senate deeply divided over long-term agriculture policy, "the farm bill is probably going to be the biggest topic" of conversation at the wheat industry conference, said Amy Bowland, a spokeswoman for the grower group. But wheat farmers from the northern United States will be focused on a decision that is due Jan. 22 by the U.S. trade representative on whether tariff-rate quotas should be imposed on wheat marketed by the Canadian Wheat Board. North Dakota wheat growers for years have complained that the Canadian Wheat Board uses its monopoly position to unfairly market durum and spring wheat in the United States and other countries. The Canadian Wheat Board denies the allegations. The board and U.S. grain millers who want ready access to Canadian wheat hope the Bush administration will refuse to go along with the North Dakota request for punitive action. 

Europe Wins WTO Export Case. REUTERS reports that the World Trade Organization ruled against the United States Monday in a dispute with the European Union over tax breaks for exporters, and the EU is expected to seek some $4 billion in retaliatory duties. In a written ruling, the WTO Appellate Body rejected a U.S. bid to overturn earlier WTO findings that the tax scheme was an illegal export subsidy under international trade rules. EU Trade Commissioner Pascal Lamy welcomed the decision and urged Washington to comply quickly with the finding and end the long-running dispute. "Now it is up to the U.S. to comply with the WTO's finding to settle this matter once and for all. As to how, we look forward to rapid U.S. proposals," Lamy said in a statement in Brussels. However, U.S. Trade Representative Robert Zoellick said the Bush administration would consult with Congress and U.S. industry before deciding its next step. "This is an especially sensitive dispute that, at its core, raises questions of a level playing field with regard to tax policy," Zoellick said in a statement. "The United States respects it WTO obligations, which serve America's interest, and we intend to cooperate with the EU in order to manage and resolve this dispute," he said. The United States argued in its appeal that the WTO ruling unfairly singled out the American taxation system against other systems that also provide tax breaks for exporters.

January 14

Conservation Reserve Program Contracts May Be Renewed. Conservation Reserve Program contracts expiring this year may be extended for another year. Producers with contracts expiring on Sept. 30 have from today to May 31 to apply for the one-year extension. Some 30,000 CRP contracts are affected. The expiration affects 1.8 million acres now protected by the CRP. Local offices of USDA''s Farm Service Agency now are notifying eligible CRP participants of their option to modify and extend their CRP contracts. 

Corn Conference Explores Environmental Issues. The 2002 Corn Utilization and Technology Conference (CUTC) will explore the growing role of corn in sustaining the environment. The National Corn Growers Association (NCGA) and the Corn Refiners Association (CRA) are teaming up again to co-host the event at the Hyatt Regency Crown Center in Kansas City, MO, June 3-5. 

It's All in the Numbers –– All the Numbers.  Keith Collins, USDA chief economist, says that despite what the numbers seem to indicate, there will not be a 20% decline in farm income this year. For one thing, he told farm broadcasters, Congress will make sure there will be assistance provided to farmers. Collins said there was some confusion after the release last week of the farm income report. "Our net cash farm income has variously been between $55 and $59 billion. And we put out a forecast that said it was going to be about $51 billion in 2002 compared with almost $60 billion in 2001. And so that's led to some reports that there's a 15-20% drop in farm income," Collins said.

Farm Bill Lull Hurts Peanut Farmers. THE ASSOCIATED PRESS reports that many peanut growers have found themselves in a "costly waiting game" due to a congressional failure to approve a new farm bill. Peanut farmers face uncertainty over whether they'll be operating under an old quota system or a new market loan concept already approved by the House. "The entire peanut industry is in limbo waiting for us to act in Washington"' said Sen. Zell Miller (D-GA), a member of the Senate Agriculture Committee. "Right now, the bankers in south Georgia don't want to issue loans without some kind of guarantee there'll be a new farm bill this season." Since the Great Depression, many owners of peanut-rich land in the Southeast have been supported by government quotas guaranteeing them a floor price on every ton of the crop they sell. Some used the quotas themselves while others rented them out to farmers. 

Canadian Farmers Brace for More Drought.   RETUERS reports that western Canadian farmers, already reeling from one of the driest years ever, are bracing for more drought after record-breaking temperatures swept the Prairies last week. "The situation is not looking too great in terms of recovering from the drought, at least at this present moment," said Bruce Burnett, head of weather and crops surveillance at the Canadian Wheat Board (CWB). "What we're going to need in this growing season is at least average precipitation and we're going to need it to be very well timed in order to get even an average crop. That's a very tall order," said Burnett, who was in Saskatchewan Friday briefing farmers about the situation. Burnett said the Prairies have never been this dry heading into a new year. Saskatchewan was one of the provinces hardest hit by last summer's drought. The farming community of Melfort recorded just 18 cm (7 inches) of precipitation last year, a level not seen since the 1937 dust bowl. Also some regions of Alberta and Saskatchewan have received about one-third their normal levels of precipitation so far this winter. A weather system nicknamed the Pineapple Express brought a midwinter warm stretch to much of western Canada last week, setting new temperature records for January and melting what little protective snow cover existed. 

No Snow Pleases Farmers. The CHICAGO TRIBUNE reports that a lack of snow in parts of the Midwest is welcome for farmers. The article notes, "By this time last year, the snow had spread deep over Dean Lemenager's cornfields, keeping the dirt from reaching a hard freeze and providing a nice winter blanket for the bugs he would have to fight come spring. But this year, hardly a flake has stuck to his fields, after a dusting of snow around Christmas quickly melted away. 'That's the kind of snow I like to get,' Lemenager said." Snow can help farmers, especially when the soil is dry, but this winter's weather is creating benefits that look to add up farm income. If the weather patterns hold, it could mean better soil for spring planting, the possibility of fewer insects throughout the season and even more time to finish outdoor projects this winter, the article says. "Statewide we're in good shape weatherwise," said Brad Glenn, president of the Illinois Soybean Association. "There's two things it's going to help right off. It's good for the soil and it's going to help kill the bugs." For many farmers, the most tangible benefit to come from this winter probably will be a helpful shift in soil mechanics that can be traced to a lack of snow cover.

January 11

Defense Funding Signed; Millions for USDA. President Bush Thursday signed the Defense Department appropriations bill that includes $367 million for USDA to bolster biosecurity efforts in the wake of the Sept. 11 tragedies, including strengthening programs for food safety, pest and animal disease protections and research, along with funding for other key programs. 

Corn Growers Find NRC River Report Encouraging. David Sieck, National Corn Growers Association (NCGA) member and Glenwood, IA, corn grower, finds the National Research Council report on the Missouri River “very promising.” While the report favored a flow change within the river, the NRC agreed there were possible problems, including transportation issues during the summer and severe flooding during the spring.

China May Have New Trade Tool. China's rules on genetically modified organisms (GMOs) may be a new way to protect its hundreds of millions of farmers now that China is a member of the World Trade Organization (WTO), according to traders. REUTERS reports that after China issued details of the GMO rules on Monday and announced they would become effective on March 20, traders said there remained more questions than answers. Nobody yet knows how and where to obtain required government safety certificates for imports of GM products, including soybeans, soyoil, corn or rapeseed, they said. They also said it was not certain whether Beijing would apply the regime to contracts signed before March 20 and the relevant cargoes arriving after that date. An official at the Agriculture Ministry told REUTERS on Monday that contracts signed prior to the introduction of the new rules would not require the certificates. "Our view is that the government will control imports of soybeans, soy meal, soybean oil, corn, canola or other GM products," said a trader based in Shanghai. 

Crushed Cow Bones Okay for Feed.   KYODO NEWS reports that Japan's Agriculture, Forestry and Fisheries Ministry will allow crushed cow bones to be used as animal feed under set conditions. The move to loosen restrictions is the first since the Oct. 4 ban on the distribution and use of meat-and-bone meal, a protein feed made from crushed internal organs and bones of cows, as it is a suspected source of mad cow disease. The farm ministry said crushed cow bones may be used as feed as long as it does not contain bones of cows infected with the disease or spinal cords and other cow organs most susceptible to the disease. The bones must also be sterilized in accordance with procedures set by the Paris-based Office International Des Epizooties. Among other requirements, shipments of animal feed containing crushed cow bones are permitted only when farmers who use the product can be identified, the ministry said. 

Canadian Farmers Will Sue Monsanto.   REUTERS reports that a group of Canadian organic farmers will launch a lawsuit against biotech giants Monsanto Co. and Aventis SA, seeking compensation for damage they say was caused by genetically modified canola blowing onto their fields. "We are asking for damages for the loss of canola in our rotations, past, present and future and we're hoping to get an injunction to prevent introduction of genetically modified wheat," said Arnold Taylor, president of the Saskatchewan Organic Directorate (SOD), a group representing about 1,000 organic farmers in the Prairie province of Saskatchewan. The amount of compensation being sought has yet to be determined. Canola, the Canadian variant of rapeseed, is used mainly to produce processed food ingredients, cooking oils, and livestock feed. The organic farmers were to file a class action lawsuit in a provincial court in Saskatoon on Thursday morning. They allege that genetically engineered crops threaten the environment and the genetic purity of the organic agriculture industry. 

Dairy Protein Okayed for Fighting Bacteria.   USDA has approved the use of activated lactoferrin on fresh beef, providing beef processors with a food safety technology that protects consumers from harmful bacteria. Activated lactoferrin is an all-natural protein found in milk and dairy products. It has been shown to protect fresh beef against E. coli O157:H7 and more than 30 different types of pathogenic bacteria, including Salmonella and Campylobacter. The technology is unique in that it prevents pathogenic bacteria from attaching to meat surfaces, in addition to preventing growth. "USDA approval is a significant milestone for activated lactoferrin and marks the final regulatory step needed to bring this food safety technology to market," said Eric Hale, president, aLF Ventures, LLC, a partnership between Farmland National Beef Packing Company L.P. and DMV International. 

Schroeder Takes Over Cowboy Museum.  Chuck Schroeder, CEO of the National Cattlemen’s Beef Association, has announced his resignation effective March 1 to taker over as executive director of the National Cowboy and Western Heritage Museum in Oklahoma City, OK. Schroeder joined NCBA in November 1995 as the organization’s first CEO. During his time at NCBA Schroeder completed the merger of the National Live Stock and Meat Board and the National Cattlemen’s Association. He worked with staff, leadership and industry organizations to develop a plan and strategy to stabilize and increase beef demand, after a 20-year decline. He reorganized the NCBA Washington office and successfully guided the implementation of a strategic public policy strategy that among other accomplishments included the repeal of the death tax. He relocated all the NCBA functions, except public policy and the culinary center, in a new office location in Denver. 

APHIS Adds to List of ‘Free’ Countries.  USDA's Animal and Plant Health Inspection Service is adding the Netherlands, Northern Ireland and Japan to the list of countries considered to be free of rinderpest and foot-and-mouth disease. This change in disease status relieves certain prohibitions and restrictions on the importingt of ruminants and swine, fresh meat and other products into the United States. However, these countries will continue to be subject to certain import restrictions on meat and animal products because of their proximity to or trading relationships with rinderpest or FMD affected regions. In addition, all three countries will continue to be under restrictions for bovine spongiform encephalopathy. Notice of this final rule was published Wednesday’s Federal Register and becomes effective upon publication. APHIS documents published in the Federal Register and related information, including the names and addresses of organizations and individuals who have commented on APHIS dockets, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html. Copies of the evaluation and supporting documentation are available at http:www.aphis.usda.gov/vs/reg-request.html. Comments submitted during the comment period as well as the final rule may be reviewed at USDA, Room 1141, South Building, 14th Street and Independence Avenue, S.W.,Washington between 8 a.m. and 4:30 p.m., Monday through Friday, except holidays. Persons wishing to review comments are requested to call ahead on (202) 690-2817 to facilitateentry into the reading room.

January 9

U.S., Cambodia Renew Textile Pact.  The United States and Cambodia have agreed to extend their Bilateral Textile Agreement for an additional three years, through Dec. 31, 2004. The quota for most textile exports from Cambodia in 2002 will be 15% higher than in 2001, a 9% increase "in recognition of Cambodia's progress in reforming labor conditions in textile factories over the last three years, in addition to the normal increase in quotas of 6%," according to the U.S Trade Representative's office. The new Agreement includes additional incentives for continuing improvements in labor conditions. 

Farm Bureau Ready to Function in Changed World.  American Farm Bureau Federation President Bob Stallman told members that the AFBF is ready to implement their public policy goals and create new opportunities for U.S. agriculture in a world that has forever changed. "There is no doubt (the events of Sept. 11) have changed us, changed our thinking of the world and how we think of ourselves. Agriculture is based on change, and as an industry we embrace change rapidly. In Farm Bureau, we believe change offers the opportunity to make things better," he said in his annual address at the AFBF convention in Reno.

U.S. Wheat Bound for Cuba. THE ASSOCIATED PRESS reports from Galveston, TX, a ship is scheduled to leave today to deliver the first shipment of U.S. wheat to "Cuba since the trade embargo was imposed in 1961. The commercial shipment of wheat - from Texas, Kansas and Oklahoma - is a venture between Decatur, IL-based Archer Daniels Midland Co. and Kansas City, MO-based Farmland Industries Inc. "This is a very exciting time for American agriculture," said Joe Royster, a member of the Archer Daniels/Farmland advisory board. "American farmers can feed the world and end hunger in many developing countries." The sale of the wheat was made possible by congressional action in 2000 that softened the embargo, allowing the sale of food to the Caribbean country but barring U.S. government financing of any such sales. 

Tyson Will Challenge Probation Violation Charge. Tyson Foods Inc., already fighting an indictment that it conspired to smuggle illegal aliens, said Tuesday it will challenge an allegation it violated its probation from an earlier run-in with the federal government, according to THE ASSOCIATED PRESS. After the December indictment in Chattanooga, TN, a federal probation officer in Washington said he would review whether Tyson violated terms of its probation from a 1998 conviction. In that case, the nation's largest poultry processor was put on four years' probation after it pleaded guilty to providing illegal gratuities to former Agriculture Secretary Mike Espy. The probation is to expire Jan. 12. Included in terms of Tyson's probation was a requirement that it file quarterly reports detailing its spending on politics and lobbying and its establishment of an in-house code of ethical conduct. The court could impose sanctions if Tyson violated those terms. 

AFBF Wants Action on Water Rights.  REUTERS reports the American Farm Bureau Federation wants Congress to "correct the injustice" of interrupting water supplies to farmers and ranchers to protect rare plants and animals. Water rights was expected to be a major issue for delegates to the annual policy-setting convention of the 5.1 million-member Farm Bureau. Leaders from the arid West want the Farm Bureau to underscore its support for state laws in deciding who gets water. Growers in the Klamath River basin of the Pacific Northwest protested last summer when federal agencies almost completely cut off irrigation water to 240,000 acres to assure enough water was available for federally protected fish and bald eagles. Snowfall in surrounding mountains has raised hopes that water restrictions will not be needed this year. With little debate, the 397 voting delegates at the convention approved language calling for assurance of water supplies to agriculture and for the federal government to respect state water law. 

USDA Will Buy Beef for Food Programs.  USDA will purchase up to $30 million of beef products for distribution in federal food and nutrition programs. USDA's Agricultural Marketing Service will begin purchasing USDA select, choice or prime graded beef roasts and ground beef in the near future. The frozen beef roasts and ground beef must be produced from domestic beef. Funding for the purchases come from duties collected under customs laws. Inquiries should be addressed to: Contracting Officer, AMS Livestock and Seed Program, USDA Stop 0253, 1400 Independence Avenue SW, Washington DC 20250-0253; telephone (202) 720-2650; fax (202) 205-1976. Information on the beef purchase program is also available on the World Wide Web at: http://www.ams.usda.gov/lsg/cp/beef/beefindex.htm. 

Honey Producers, Importers Vote on Checkoff Program.  Honey producers and importers will vote Feb. 4-March 1 on whether to continue their national research and promotion program. The program is authorized by the Honey Research, Promotion, and Consumer Information Act, which requires USDA to hold a continuance referendum every five years. To be eligible to vote, producers and importers must have produced or imported honey or honey products during the period Oct. 1, 1999-Sept. 30, 2001, and be producers or importers at the time of the referendum. For the order to continue, it must be supported by a majority of the voters in the referendum who represent 50% or more of the honey or honey products represented by the voters in the referendum. Notice of the referendum appeared in the Jan. 8 Federal Register. AMS will mail ballots and voting instructions to all known producers and importers. Eligible producers and importers not receiving ballots may request them from Kathie M. Birdsell, AMS Fruit and Vegetable Programs, USDA Stop 0244, 1400 Independence Ave. SW, Washington DC 20250-0244; tel. 888-720-9917; fax (202) 205-2800. 

FSIS Delays Meat Water Rules.  USDA's Food Safety and Inspection Service will delay the implementation date of the final rule on retained water in raw meat and poultry products until Jan. 9, 2003, to ensure time for more effective compliance with the rule. Notification of this delay will soon publish in the Federal Register. This final rule was originally intended to take effect today (Jan. 9, 2002). The final rule limits the amount of water retained by raw, single-ingredient meat and poultry products. Under this regulation, meat and poultry carcasses and their parts will not be permitted to retain water, unless it is an unavoidable consequence of the processes used to meet food safety requirements. Products with retained water must be labeled accordingly. This rule will provide consumers with more information about what is in the meat and poultry they purchase and will assist them in making more informed choices. FSIS is delaying the rule's effective date in response to a petition from four trade associations representing meat and poultry industries, who requested that the effective date be extended until August 2004. FSIS has decided, however, that a one-year postponement of the effective date will allow sufficient time for the meat and poultry industry to prepare for implementation of the rule. The final rule on water retention also made several technical amendments in the sections of the poultry products inspection regulations that concern poultry chilling practices. The effective date of these amendments will remain Jan. 9, 2002.

January 8

Argentina's Disarray Has U.S. Corn Implications. Argentina's economic and political upheaval could have significant implications for the U.S. corn industry. The government and economy of Argentina, a major competitor in global grain and soybean markets, has had five presidents in two weeks. Over the weekend the Argentine Congress and Senate voted to devalue the peso. 

Farmers Want Farm Bill Results. While the certainty of a new farm bill eluded America's farmers in the waning days of 2001, farmers overall remain committed to securing a new law sooner rather than later, according to American Farm Bureau Federation President Bob Stallman. At a news conference opening AFBF's 2002 annual meeting, Stallman said he believes farmers and ranchers in this country don't care who wins or loses partisan battles related to the farm bill, but they are united in the fact that "they want results." 

Peanut Fungi Battle Being Won. Helping peanut farmers curtail fungi that contaminate their crop's seed with aflatoxin is becoming a reality because of a biological pesticide developed by Agricultural Research Service scientists in Dawson, GA. The toxicity of aflatoxin, a fungal carcinogen, to humans and livestock makes it a costly problem for farmers, who lack direct means of controlling the fungi, and for peanut shellers once the seed has been harvested.

Farm Bureau Wants Mexican Decision Overturned. The American Farm Bureau Federation has called on the Bush administration to seek a reversal of a decision by the Mexican government to impose up to 20% levies on soft drink imports that do not contain sugar. That would include the imposition of the duties on drinks made with high fructose corn syrup. AFBF, the National Corn Growers Association, the Corn Refiners Association, and the U.S. Feed Grains Council sent a joint letter to U.S. Trade Representative Robert Zoellick that strongly urged the Bush administration to secure a commitment from Mexico to suspend the tax. "This tax will shut off U.S. exports of HFCS to Mexico and will severely hamper our corn sales to that market," said AFBF President Bob Stallman. "It is contrary to the spirit of NAFTA and is clearly a violation of Mexico's international obligations." Stallman said: "We are urging our government to meet this week with Mexico's officials and to pursue further action if the issue cannot be resolved." 

Smithfield Prospers Amid Controversy.  THE WASHINGTON TIMES profiles pork-producing giant Smithfield Foods. The company has doubled its sales since 1996 and now is three times the size of its closest rival, Tyson Foods. Company officials say the success is due to an aggressive acquisition strategy, including its recent $1.4 billion purchase of beef producer Packerland Holdings. "If controversy is a measure of success, Smithfield Foods can rest assured it will have success as long as it is in business," according to the article. "Animal rights activists, environmentalists and independent farmers find plenty of complaints about the nation's largest pork producer. Despite their complaints, Smithfield Foods is a darling of Wall Street. The company has grown so fast and so big that its rivals can hardly keep up. A $100 investment in Smithfield Foods in 1983 would be worth almost $8,700 in June 2001." 

Kellogg Sued by Consulting Firm. CRAIN'S CHICAGO BUSINESS reports a Chicago marketing consulting firm has sued Kellogg Co., alleging that the Michigan-based food company stole its idea for a basketball-concept breakfast cereal. Kingsley Group Inc., along with inventor DeMarco Allen, claim that Kellogg in 2000 rolled out a cereal called 3 Point Pops that was modeled after their Hoops Cereal, a concept they developed and later shared with Kellogg. A Kellogg spokesman declined to comment on the lawsuit, which was filed in late December in U.S. District Court in Chicago. 

GM Crops Don't Help Farmers' Profits. THE CHICAGO TRIBUNE reports that genetically modified crops may have gained popularity among U.S. farmers, despite considerable consumer opposition in Europe. But farmers have not benefitted to any extent beyond farmers of traditional crops. An analysis of more than 300 Iowa farmers showed that those who used genetically modified seeds didn't gain any economic advantage over those who used conventional seeds. The analysis was conducted by Michael Duffy, associate director of the Leopold Center for Sustainable Agriculture at Iowa State University. Duffy's analysis, published in the center's newsletter, was drawn from information gathered by USDA. It was the second time Duffy concluded the economics of genetically modified crops don't add up for farmers. He found that, on average, farmers who grew soybeans that tolerate herbicides did spend less on those herbicides than their counterparts who planted regular soybeans. However, he found, any herbicide-related savings were counterbalanced by somewhat lower yields from the genetically altered crops and the higher cost of seeds. 

U.S. Officials Study China's GM Rules.  USDA and industry officials are studying the details of China's long-awaited rules that take effect March 20 for biotech soybeans and other genetically modified crops, according to REUTERS. Earlier on Monday, China's Ministry of Agriculture said overseas firms exporting biotech products to China must apply for certificates from the ministry stating that the goods were harmless to humans, animals and the environment. China is the largest export market for U.S. soybeans. The U.S. industry is hoping to ship $1 billion worth in the coming year. Beijing first announced rules on genetically modified organisms (GMO) products last June and initially required government approval for all production, sale and imports of GMO foods. The news agency says confusion over the rules brought a virtual halt to new orders of U.S. cargoes of soybeans -- 70% of which are bioengineered -- as buyers worried cargoes might not be approved. The United States and China reached a formal agreement in September on GMO products and U.S. soybean sales have since resumed.

January 7

USDA Delays Loan Rate Announcement.  USDA will wait for final Congressional action on the farm bill before determining annual loan rates for the 2002 crops. If Congress doesn't finalize a farm bill in time for this year's crops, USDA then will make a separate determination. The 1996 Federal Agriculture Improvement and Reform Act provides no statutory deadline for loan rate determination. Announcements in previous years have varied from as early as Dec. 18 to as late as April 23. 

Veneman Takes Europe to Task on Precautionary Principle. Agriculture Secretary Ann Veneman, speaking last week at the Oxford Farming Conference, Oxford, England, took the European Union to task for its "precautionary principle" that she said rests "on the premise of the mere existence of theoretical risk." It is not based on "any objective standard" and could block some of the "most promising new agricultural products" now in the development pipeline or actually being produced. 

Mexico Seeks to Tax Non-Sugar Drink Imports. The Mexican Congress has approved legislation that would place up to a 20% tax on soft drinks that contain sweeteners other than cane sugar. "The measure taxes high fructose corn syrup out of the market and severely hurts U.S. corn exports," said Tim Hume, a corn grower from Walsh, CO, and president of the National Corn Growers Association (NCGA). 

Swenson Bows Out as NFU President. Leland Swenson, who concludes 14 years as president of the National Farmers Union (NFU) in March, has chosen not to seek re-election as president of the family farm organization in order to pursue other opportunities. "As National Farmers Union celebrates its centennial anniversary, I feel this is an appropriate time to pass the torch of leadership. NFU is in a strong position to continue being the organization that provides progressive leadership for family farmers and ranchers," Swenson said. A new president will be elected during the organization's 100th anniversary convention March 1-4 in Irving, TX.

China Issues GM Rules. China's Ministry of Agriculture has released the long-awaited details of controversial rules on genetically modified organisms (GMO), REUTERS reports. The new regulations take effect March 20. The ministry, in an announcement in the Farmer's Daily, said overseas companies exporting GMO products to China must apply for certificates from the ministry stating that the goods are harmless to humans, animals or the environment. The certificates, to be decided on within 270 days, have to be obtained before supply contracts are signed. But an official at the ministry told REUTERS that contracts signed before March 20 would not be subject to the stricter requirements. "There is no need for safety certificates," said the official when asked to comment on import contracts that were signed before the new rules are to be introduced but after Beijing first announced rules on GMO products on June 6. 

Environmental Groups Back Limited Federal Aid.  THE ASSOCIATED PRESS reports that environmental groups are supporting legislation that would limit federal aid to large-scale livestock operations to store and treat animal waste. The environmentalists say the amendment is necessary to prevent increasing consolidation in the livestock industry - especially hog operations - arguing that the aid allows "factory farms" to expand at the expense of smaller competitors. "This money shouldn't be hijacked for corporate welfare," said Sen. Paul Wellstone (D-MN) who is sponsoring the amendment to the Senate's farm bill. But the pork industry says the legislation would squeeze out mid-size farmers who will be facing increased environmental costs in the coming years. At issue is the Environmental Quality Incentives Program, which subsidizes the cost of manure control and other conservation projects. Under current law, livestock with more than 1,000 animal units are ineligible for such aid. Wellstone's amendment would reinstate it for new or expanding livestock operations over 1,000 animal units. Senate Agriculture Committee Chairman Tom Harkin (D-IA) supports the amendment. 

Agency Says Species at Risk. Some 235 North American animal species such as the Monarch butterfly and northern codfish are threatened by pollution, human encroachment on their natural habitats and aggressive harvesting practices, a REUTERS report says, quoting an environmental agency set up under the North American Free Trade Agreement. A broad study by the North American Commission for Environmental Cooperation, a Montreal-based agency, says the continent faces a "biodiversity crisis" in which threatened species could disappear. That harms evolution and depletes the natural environment humans depend on to survive. Half of North America's most biodiverse eco-regions are severely degraded, says the report, which will be formally released to the governments of the United States, Mexico and Canada today. The report notes that some experts believe humans are "fishing down the food chain" in over-harvested stocks such as salmon, cod, halibut and swordfish. That means catching fish that are needed to rebuild depleted species. 

Cuban Trip Quashed.  The CHICAGO TRIBUNE reports that a trip to Cuba, planned by some 100 individuals including former Agriculture Secretaries Dan Glickman and Mike Espy, has been denied by the Bush administration. In denying the Farm Foundation's travel applications last week, Treasury Department officials said the delegation was too large, contained too many spouses and family members and its focus was "scattered." Executives from farming corporations and agribusinesses from more than a dozen states also were to make the trip. The group planned to visit small farms and meet with Cuban agriculture officials to discuss ways to improve Cuba's farming operations.

January 4

USDA SEES CHINA AS BIGGER MARKET. China's membership in the World Trade Organization will spur the world's largest nation to import more wheat, soybeans, vegetable oils and cotton, the U.S. Department of Agriculture says in a new report. New pressure from world competition and changing preference among Chinese consumers will bring about changes, the report says.

USDA WILL HEAR CODEX COMMENTS. Federal food officials will hold two public meetings to garner input on an upcoming meeting of a key international regulatory body. The meetings, on January 8 and February 7, will be sponsored by the Office of the Undersecretary for Food Safety, U.S. Department of Agriculture, and the Food and Drug Administration, U.S.Department of Health and Human Services.

USDA Has More Effective Mosquito Repellent. USDA's Agricultural Research Service is seeking a patent on a method for selecting the most effective version of a repellent discovered by ARS researchers more than 20 years go. Using the method, ARS entomologist Jerome Klun recently identified one version that is three to four times more effective at preventing yellow-fever-transmitting mosquitos from biting than the original repellent. It's also the optimal version against the species that transmits West Nile virus. 

Two Sentenced on Meat Charges.  The owners of J&J Marketing, a Lubbock, Texas, salvage food distributor, were sentenced Oct. 11 in federal court for violating the Federal Meat Inspection Act, the U.S. Department of Agriculture's Food Safety and Inspection Service announced. The charges involved selling rodent-contaminated meat products. 

Corn Growers Challenge Study.  Corn growers would not be using genetically modified corn if it didn't provide economic benefits to them, the National Corn Growers Association said, according to Wallace's Farmer. The group challenged a recent study that purported to find little if any net benefit to farmers from biotechnology so far.

January 3

USDA Announces that 16 Maine Counties are Eligible for Emergency Farm Loans. Agriculture Secretary Ann Veneman yesterday named 16 counties in Maine as eligible for USDA emergency farm loans due to losses caused by armyworm infestation. The losses occurred last summer because infestation resulted from an unusually mild winter. The assistance is designed to help Maine farmers recover from an infestation that destroyed much of the state's hay, pasture, and corn crops.

U.S. Beef Industry Faces Slowdown After Two Years of Growing Demand According to an article appearing in yesterday's Chicago Tribune, "the beef industry is no longer living high off the hog." The story reports that "signs of a slowdown are everywhere. Meatpackers are idling plants to reduce inventories. Reservations at upscale steakhouses, once a hot commodity, are easier to find. Beef exports fell 12 percent in the first nine months of 2001 from a year ago, and the outlook for the fourth quarter is dismal.... Sharp cutbacks in business travel and spending since the Sept. 11 terrorists attacks have hurt the fine-dining establishments the depend on out-of-towners to fill tables. At the same time, consumers in Japan, the top overseas buyer of U.S. beef, are avoiding red meat after the discovery of mad cow disease there... These are unusual times for an industry that had been enjoying a resurgence of beef consumption until recently. In 1999, beef demand rose 3.3 percent in the United States from the year before, the first increase in two decades. In 2000, demand accelerated 3.5 percent." 

Soy "Milk Without the Moo". Yesterday, the Washington Post ran a lengthy story about refrigerated soy milk: "While soy milk consumption is still small compared with dairy milk consumption, its growing popularity is not surprising. Studies have shown that soy may have a positive effect on everything from menopausal symptoms to cancer, osteoporosis and heart disease. In 1999, the federal government began permitting the labels of soy-based foods containing at least 6.25 grams of soy protein per serving to state that the products may reduce the risk of heart disease. Soy milk manufacturers were quick to start using this health claim, as most soy milks contain at least that amount of soy protein in an eight-ounce serving. (Still, you have to drink four glasses per day, as research shows that 25 grams of soy protein is needed to derive those health benefits." 

ConAgra May Spin Off Underperforming Units. As reported by REUTERS, ConAgra has been putting resources behind higher-margin packaged food areas, and "by their own admission have disclosed that parts of their agricultural products, and even-meat-processing, have underperformed." With the recent release of 2nd quarter earnings, the company separated the financial results of its branded foods and agricultural businesses, and created four fiscal divisions. ConAgra, which is headquartered in Omaha, Nebraska, is the second largest food conglomerate in the United States.