March 30, 2001

Pork Producers Want End to Chile's Barriers. The National Pork Producers Council (NPPC) wants the total elimination of all present tariff and non-tariff barriers to U.S. pork and pork products to be part of any free trade agreement with Chile. "Chile has an efficient, concentrated, and export-oriented pork industry and should not be protected from U.S. competition," said NPPC President Barb Determan, a pork producer from Early, IA "Five companies produce about 95% of the pork there. While competitors like Brazil and Canada have preferential access to Chile's pork market, U.S. producers face the barrier of an 8% tariff and other restrictions. In all of 1999, only six metric tons of U.S. pork reached the Chilean market." 

Incomes Surge by ‘Growing Energy.' The Senate Agriculture Committee has been told that farmers' incomes could double into the next generation if they begin "growing energy." Witnesses told the panel such production substantially could replace imported oil. Farmers also could be close to being paid by industrial sources for absorbing carbon dioxide emissions. 

The Plight of Absorbing Input Costs.  Farmers face costs that cannot be passed along for products they must buy in order to produce agricultural commodities. That, coupled with continued low prices, makes another round of farm assistance necessary this year, according to Bob Stallman, president, American Farm Bureau Federation. "Discussion is under way now in Washington to take up and tackle the many problems facing agricultural producers, with special emphasis on assuring an adequate amount of assistance to keep families on their land until stability and profit opportunity is restored," he said. 

News Summaries

Radiation Options to Be Studied. The Food and Drug Administration will conduct a focus group study of radiation disclosure statement options for foods treated with ionizing radiation. FDA has requested emergency processing of the proposed study from the Office of Management and Budget (OMB). The American Meat Institute says FDA vowed to Congress it would finalize by March 2002 any regulatory changes regarding irradiation disclosure statements on irradiated food. Retail packages or displays of foods treated with ionizing radiation now must include both the radura logo and a disclosure statement of either "treated with radiation" or "treated by irradiation." The study, which will take place in April and May, will consist of six focus groups conducted in three geographic regions of the country. The study aims to determine whether the current labeling requirement is an obstacle to acceptance. Industry and consumer stakeholders will be allowed to attend and observe the focus groups. 

EPA Will Study Kids and Pollutants.  The Environmental Protection Agency will conduct a pilot study of preschool children this spring in Ohio to examine how young children are exposed to persistent pollutants, including pesticides. Preschool children are thought to have more frequent contact with a variety of these pollutants than older children or adults because of what they eat and drink, where they spend their time and their activities. About 260 children between 18 months and 5 years old at day care centers and individual homes will participate in the three-year study which also is being conducted in North Carolina. The agency emphasizes that additional research, beyond the pilot study, will be needed before reaching any conclusions. The National Head Start Association., the Ohio Department of Human Services, and several local child service agencies have endorsed the study. 

Cotton Declines to 14-Year Low. BLOOMBERG NEWS reports that cotton futures declined almost 4% to a 14-year low on a report of weaker-than-expected demand from U.S. mills. Farmers worldwide are planting the largest crop in a decade, the article added. A Census Bureau report showed U.S. cotton consumption is running at its slowest pace since 1990. While that's partly because increased imports of cotton fabric are curbing use of domestic supplies by clothing and linen makers, demand worldwide hasn't been strong enough to absorb burgeoning crops, the news agency reports. Manufacturers "are going through difficult times now because of imports and slow consumer demand," said Jerry Rowland, president and chief executive of Winston-Salem, North Carolina- based National Textiles LLC, which makes cotton fabric used in T- shirts and other casual-wear sold by such retailers as Wal-Mart Stores Inc. and Target Corp. 

Bush Wants Hemisphere-Wide FTA ASAP.  REUTERS reports that President George W. Bush wants to finish negotiations on a Western Hemisphere free trade agreement "as soon as possible" and pledged to reassure skeptical trading partners the United States is willing to make its share of concessions. "The sooner we can get a free trade agreement in the hemisphere the better," Bush told reporters one day before meeting with Brazilian President Fernando Henrique Cardoso. "As to whether or not it's 2003 or 2005, we'll just have to see if we can't convince our friends in South America of the wisdom of doing it as soon as possible." Brazil strongly opposes the idea, first suggested by Chile, of speeding up the timetable for concluding the Free Trade Area of the Americas (FTAA) talks to 2003, from the current goal of 2005. Trade ministers from 34 Western Hemisphere nations -- or all except Cuba -- will meet in Buenos Aires April 6-7 to discuss the timetable for the next phase of the talks. 

F&MD Traced to India.  THE ASSOCIATED PRESS reports that the strain of foot-and-mouth disease that has hit British farms was first detected in India more than a decade ago. Scientists tracked it across the world but are no closer to determining how it got to England. Considered the most contagious disease in the world, foot-and-mouth is widespread in Africa, the Middle East, Asia and South America. It affects cloven-hoofed farm animals and can wreck a country's livestock export business, though it is harmless to humans. The virus can be spread by anything it touches, from sandwich meat to the soles of shoes and truck tires; wind can carry it 40 miles. While countries in the developed world scramble to stamp it out as soon as it is detected to protect trade, poor nations that don't export meat let it run its course, the article notes. Experts have identified the virus causing the current outbreak in Europe as belonging to the Pan-Asia type 0 strain. The subtype ravaging Britain is normally found in the Middle East and South Asia. 
 

March 28, 2001

F&MD Test Cuts Time to Minutes.  USDA has developed a new diagnostic test for foot and mouth disease and has made a major breakthrough on a vaccination as well. Agricultural Research Service Administrator Floyd P. Horn told the Senate Agriculture Committee that ARS has developed and is testing in Britain this week a new diagnostic procedure that can determine the presence of food and mouth disease (F&MD) in 40 minutes rather than the current 40 hours. Quick detection is critical to preventing spread of the disease. It took three weeks to identify the recent outbreak in the United Kingdom and six weeks in Taiwan. 

Harkin Seeks a Conservation Center to Farm Bill.  Sen. Tom Harkin (D-IA) wants conservation to be the "heart" of the next farm bill. But farmers have to be economically enticed into putting more conservation practices into their farming operations, he added. Harkin was one of several speakers Tuesday at a conference on "Fixing the Farm Bill" sponsored by Schnittker Associates, Santa Ynez, CA, and The Center for International Agricultural Finance at Iowa State University. 

Protesters ‘Storm' NPPC Washington Office.  A group of about 100 protesters "stormed" the Washington office of the National Pork Producers Council (NPPC) Monday morning. "It appeared that most of the protesters were not pork producers. The protesters refused to sit down and talk reasonably about their concerns. The protesters interrupted work being done on behalf of America's pork producers by NPPC staff," NPPC said in a statement. 

News Summaries

Zero Tolerance Sought in Japan. Legislation that will set zero tolerance for imports containing unapproved genetically modified products, especially StarLink corn, takes effect in Japan in April. A REUTERS article notes that under the new rules, Japan also will seek mandatory labelling for genetically modified organisms (GMOs) in food products. Japan will allow food products containing less than 5% of approved biotech crops like corn and soybeans to be labeled as non-GMOs. Food makers using only non-GM crops or ingredients can voluntarily put "GM-free" label on products. The article also notes that Japan will make it mandatory to put labels on food products in which GM material is one of the top three ingredients and where the material accounts for five percent or above of food weight. Animal feed and food products in which DNA or protein resulting from gene alternation cannot be detected using existing technologies are exempted from labeling. 

Philippine Sugar Import Recommendation. The Philippine Sugar Alliance has recommended to the government that 300,000 tons of sugar be allowed in import, including 54,000 tons that will be bought by state firm National Food Authority, an industry executive said on Wednesday. The executive told REUTERS the recommendation was given by the group to Agriculture Secretary Leonardo Montemayor last week. "We proposed a total volume of 300,000 tonnes, including the 54,000 tonnes NFA has to import this year," the executive said. The same executive said the alliance, which represents local millers, refiners and farmers, wanted the sugar to arrive in the country between May and July to fill a projected shortfall in domestic production. The alliance also recommended that the government allow a lower tariff of 50% for raw sugar imports and 65% for refined sugar. Currently the government imposes a flat 65% tariff on all sugar imports. 

China Traders Dispute U.S. Buy.  Traders in China have dismissed rumors that China, a traditional corn exporter recently bought an unspecified amount of corn from the United States, REUTERS reports. China's trading pattern is unlikely to change, with the market focusing on corn shipments abroad, which are likely to decline because of high local prices and low world markets. "Large scale imports are absolutely impossible," said a trader at state-owned grain trading company COFCO, when asked about the corn import rumours in Asian markets. "The problem now is how to export, not to import." Earlier this week, talk circulated in Asian markets that the Chinese poultry industry had bought an unspecified amount of corn from the United States. Chinese traders and analysts project China imports at about 200,000 to 300,000 tons every year but only for exceptional cases and various industrial purposes. "Such imports are normally used for feed ingredients and amounts could not be big," said Wang Xiaohui, corn analyst at government think-tank the State Cereals Information Centre. "The government allows such imports with a precondition that it would not impact the domestic market," Wang said. 

California Farmers Seek Energy Power.  THE ASSOCIATED PRESS reports that California farmers are reconsidering how they use and purchase power after facing months of low crop prices and soaring energy costs. Some are organizing themselves into power buying groups or investigating alternative sources of energy. Farmers in San Diego County are forming a power buying cooperative with the help of the local Farm Bureau, several rural food processors are building their own power plants and some Central Valley dairymen are trying to get methane gas from mine manure lagoons to generate electricity. "We got started with this co-op last year about July or August, when electric rates went crazy in San Diego County," said Eric Larson, executive director of the San Diego Farm Bureau. "We will bring all the buyers into one pool and then go out and negotiate for all growers at one time. Farmers have lots of experience with co-ops, the difference is we're going to be buying power as opposed to selling agricultural products," Larson said. 

Consumers Confused on F&MD, BSE. Consumers are confused about the difference between mad cow disease, which is deadly, and foot-and-mouth disease, which isn't harmful to people but can cause billions in economic losses to the U.S. livestock industry, according to Agriculture Secretary Ann Veneman. BLOOMBERG NEWS reported her remarks to reporters after speaking to the grocery industry earlier. "We (USDA) hear a lot of confusion being expressed," Veneman said. These diseases "are two different things: One's a food safety concern (mad cow), and one's not (foot-and-mouth)." The highly contagious foot-and-mouth virus attacks cloven-hoofed animals, such as cattle, hogs and sheep. The result is a loss of meat and milk production. It is not harmful to people, even if they eat infected meat. If it reached this country, losses for the $45 billion U.S. livestock industry could reach into the "billions," Veneman said. 

States Add Livestock Restrictions.  REUTERS reports that state governments are adding their own restrictions on imports of livestock and farm equipment from Europe, concerned that USDA has not done enough to keep out the highly contagious foot-and-mouth disease. The disease has spread from Britain to the Netherlands, Ireland and France. On Tuesday, Danish officials said they were investigating three cows suspected of having the disease. Foot-and-mouth disease cripples pigs, cattle, sheep and goats for months and sharply reduces milk and meat production. The virus, which rarely endangers humans, is easily spread by shoes, farm equipment and even the wind. The United States temporarily banned imports of livestock and fresh meat -- mainly pork ribs -- from the entire European Union on March 13. Originally, the temporary prohibition was to expire on Wednesday, but the discovery of additional cases in the EU have prompted USDA officials to leave the ban open-ended. 

Alabama Disinfects British Tractors. Alabama state officials Tuesday began disinfecting some 100 tractors imported from Britain and quarantined at a U.S. port, REUTERS reports. They fear the equipment could carry the highly contagious foot-and-mouth disease. Molly Frazier, a USDA port director at Mobile, said officials from the department's Animal and Plant Health Inspection Service (APHIS) were supervising the cleaning of the farm equipment sealed inside 41 large containers. Earlier this month, Alabama officials quarantined a shipment of used Deere & Co. equipment that had been displayed at a farm trade show in Britain. Alabama also placed a ban on imports of farm equipment from foot-and-mouth infected countries. Ralph Holmes, spokesman for the state's Agriculture Department, said Alabama recently passed a state resolution urging Agriculture Secretary Ann Veneman to join Canada in banning used farm equipment from Europe. 
 

March 27, 2001

No BSE in Cattle, NCBA Insists. News reports suggesting that cattle in Texas, Minnesota, Illinois and Vermont are suspected of having BSE (bovine spongiform encephalopathy) are incorrect and "have the potential to lead to confusion and concern among consumers, retailers and food service operators," says the National Cattlemen's Beef Association. Some cattle were imported into the United States prior to the two major BSE-related import bans on July 21, 1989, banning animals from countries with BSE, and on Dec. 12, 1997, banning animals from all European countries. 

CAST Weighs Vertical Coordination in Farms. A report from the Council for Agricultural Science and Technology (CAST) shows that vertical coordination among farmers is increasing in the United States and will continue to expand in rural areas as producers seek alliances with food processors and others to provide capital, technology and markets. 

Survey Finds a Fickle Public on Biotechnology.  A new survey reveals that Americans know little about genetically modified (GM) foods, are uncertain about their safety, and change their views about safety when more information about widespread use of GM foods is revealed. The findings are part of the Pew Initiative on Food and Biotechnology, a new effort designed to bring information to the national debate about agricultural biotechnology. The initiative is a project of the University of Richmond funded by the Pew Charitable Trusts. 

News Summaries

Growmark, TFC Study Merger.  The boards of directors of Growmark Inc. and Tennessee Farmers Cooperative (TFC) have approved a study that examines the possible results of the two regional agricultural cooperatives combining their operations, according to FEEDSTUFFS magazine. Dan Kelley, chairman of Growmark, and David Rieben, chairman of TFC, said, "We are both federated cooperatives owned by our local member organizations. We share a deep commitment to serving the needs of our members. Given our geographic proximity and similar business philosophy, it makes sense to look at how we can work together more closely to benefit our member-owners." Growmark CEO Bill Davisson and TFC President and CEO Vernon Glover said preliminary discussions have focused on potential benefits in (1) building on mutual strengths to enhance and strengthen product and service offerings to members, (2) utilizing each cooperative's areas of expertise for the overall benefit of a combined organization and (3) utilizing the human resources of each organization to support future expansion opportunities. No timetable was announced for the study, but Davisson and Glover indicated a combination could occur by early 2002 if the study results are positive and members support a plan of consolidation. 

Premium Tells of anti-F&MD Measures.  Premium Standard Farms (PSF) says it is taking precautions to prevent the introduction of foot and mouth disease into its pork production operations, FEEDSTUFFS reports. Effective immediately, the company said, public access to its property and facilities is restricted. "We realize the risk of someone carrying the disease onto our property in north Missouri is remote, but we can't afford to take this situation lightly. The consequences are too great," said David James, vice president of production at PSF. PSF has closed to the public its education center in Princeton, MO, which includes its PSF Company Store, and has canceled all tours of its operations, including the processing facility in Milan, MO. Grain deliveries to PSF's feed mills are not affected by the policy, the company said. 

China Talks Expected to Drag.  REUTERS reports from Hong Kong that talks on China's entry into the World Trade Organization (WTO) could continue through much of 2001 as key issues remain unresolved, the incoming chief of the trade body said on Tuesday. "Agriculture and insurance...and the status of China as a developed or developing country, these are the contentious issues," said Supachai Panitchpakdi, Thailand's former deputy prime minister and incoming director-general of the WTO. "(There are) some delays in the organization's meetings in China. I don't know, there must be some explanation for that...things are going to build up to a climax in the third and fourth quarters of this year," Supachai told reporters on the sidelines of an economic forum in Hong Kong. Supachai takes over from New Zealander Mike Moore as head of the WTO in September 2002. 

Saudis Have Thousands of F&MD Cases.  REUTERS reports from Dubai that more than 2,417 cases of foot-and-mouth disease have been found in Saudi Arabia, the largest importer of cattle in the Gulf region, the kingdom's agriculture minister said in remarks published on Tuesday. Abdullah bin Muammar said the cases were discovered in 46 infected sites in different parts of Saudi Arabia. The kingdom and neighboring the United Arab Emirates were the only Gulf Arab states to report the disease. Muammar's comments, made on Monday, were carried by the official media and Saudi newspapers. "A total of 1,767 cows and 650 sheep besides calves, goats and other animals have been found infected with the disease. Up to 141 cows and 88 sheep have died of the disease," he said. Muammar said veterinary teams had been sent to a number of infected and suspected sites to ensure implementation of preventive measures and to educate farmers. 

NPPC Office Shut Briefly by Protesters.  One of the offices at the National Pork Producers Council in Washington was closed briefly by protesters angered by a recent government decision on the national pork checkoff. BLOOMBERG NEWS reports. About 100 protesters entered the council's government relations office in Washington, disrupting operations for about a half hour, a council official said. The protesters attempted to send out a flyer to the group list on the council's fax machine deriding the organization. "We were temporarily shut down," said Kirk Ferrell, vice president of public policy. "They refused to leave on our request and it took the DC police to disperse them." The council has been at the center of a controversy over a mandatory tax on hog producers that collects 45 cents for every $100 that farmers get from selling animals. In recent years, the NPPC has been charged with giving out most of the money through grants from the National Pork Board, the agency that gathers the tax. The nearly $500 million the program has dispensed since its inception has been spent on research, education and advertising, funding such campaigns as "Pork. The Other White Meat." 

Bush Says Too Early for Farmer Relief Decision.  President George W. Bush said Monday it was too early to decide if U.S. farmers who face a fourth year of low grain prices would need federal assistance similar to the $9.7 billion appropriated last year, REUTERS reports from Billings, MT. The article notes that U.S. farm groups have asked lawmakers for $9 billion in "market loss" payments this year as well as an additional $12 billion a year in farm supports. Bush, in Billings to meet growers at a farm supply store, told reporters it was premature to judge if a package like last year's was appropriate. Most crops are not planted yet. "It's too early to tell," the president said. "But we've got contingency money set aside in case that needs to happen." 

Wheat Increases from China Hopes. BLOOMBERG NEWS reports that wheat increased almost 2%, its biggest gain in two weeks. The impetus apparently came on signs that China may be closer to joining the World Trade Organization that will result in lower domestic farm subsidies and increased grain imports. U.S. and Chinese officials said negotiations over China's entry into the WTO will resume soon, China Daily reported. While China is the largest wheat grower, joining WTO will mean less government aid for farmers and higher domestic prices, making U.S. grain cheaper to import, analysts said. "China could have need to import as much as 4 million tons of wheat once they stop subsidizing" domestic production, said Conrad Leslie, president of Leslie Analytical Organization Inc. in Chicago. 

WTO Discussions Begin. REUTERS reports from Geneva that negotiators from World Trade Organization (WTO) nations Monday began a week of discussions on blueprints for negotiations on freer global trade in services and agricultural produce. Although WTO officials said there was goodwill on all sides to make progress, informed trade diplomats said there were major problems on both fronts and deep suspicion among many developing countries over the intentions of the big powers. "Frankly, there is little chance that we'll do more this week than agree to start talking business," said one key ambassador to the 140-member body. "But how far that gets depends on so many other things that it looks right now as though when we do start negotiating, it could go on endlessly." Over the past 12 months, delegations to the WTO have generally prepared the ground for full negotiations by tabling papers to explain their positions. This week, they move into "stocktaking" sessions designed to review more precisely what will be discussed and whether the proposals make progress possible. 
 

March 26, 2001

F&MD Threat ‘Absolutely Real.' The recent breakout of foot-and-mouth disease in Europe is just the latest example of how the disease spreads among nations, but the threat to Europe "is absolutely real," warns Louise Fresco, Food and Agricultural Organization assistant director-general, Agriculture Department. In the opening address at the 34th Session of the European Commission for the Control of Foot-and-Mouth Disease in Rome, she said the strain that arrived in the United Kingdom is native to India. 

Grants Go to Community Facilities. USDA has provided $47.5 million in grants to develop community facilities - including schools, libraries, fire and rescue, public safety, hospitals, clinics, and multipurpose community centers - in rural areas experiencing severe unemployment and economic depression. The community facilities grants are made available through USDA's Rural Housing Service and earmarked for rural communities where the "not employed" rate is greater than 19.5%. 

News Summaries

Alliances Help Farmers Prosper.  THE ASSOCIATED PRESS reports from Bismark, ND, that farmers have been told if they form production alliances they stand a better chance of prospering in the modern, global farm economy than those who remain independent. North Dakota State University researcher Rudy Radke, an extension specialist, told state legislators that farmers should adopt "identity preservation" techniques for their production. The process is meant to keep grains and other products that are raised in a specific way from becoming mixed in with other commodities. Identity preservation and alliances, like those being formed among egg producers in Iowa and dairy farmers in Minnesota, are responses to market demands and critical to farming's future in North Dakota, Radke said. "The marketplace is headed in these directions," he told a joint meeting of the state House and Senate Agriculture committees. "I really believe that if you're not a member of some kind of alliance, you won't be able to afford to be in farming in the next 10 years." 

Discord Marks Biotechnology Meeting. KYODO NEWS reports from Chiba, Japan, that the ongoing discord between the United States and Europe over the safety of genetically modified foods marks a five-day meeting now underway by a United Nations that aims to establish standards for such foods. The United States says GM foods are safe, and the European Union (EU) is more cautious about potential risks in such foods. On Sunday, EU officials requested that participants first discuss a tracking system for GM foods that would cover production and distribution. U.S. and Japanese officials favored a proposed agenda for discussing general principles on safety evaluations of GM foods and a guideline on produce. About 35 countries and international organizations are represented in the second meeting of the Codex Ad Hoc Intergovernmental Task Force on Food Derived from Biotechnology held at the Makuhari Messe convention complex in the outskirts of Tokyo. Nongovernmental organizations (NGOs) representing food makers and consumers have also sent officials to the meeting scheduled through Thursday. 

Protestors March at Veneman's Home. About three hundred members of National People's Action protested at the home of Secretary of Agriculture Ann M. Veneman in Alexandria, VA, Sunday to protest the USDA's recent decision not to proceed with further court action on the pork checkoff referendum issue. Veneman was not home at the time, but the protestors said they would demonstrate again on Monday. Among the protestors were members of The Campaign for Family Farms (CFF) as well as community groups from across the country working to reform food stamp policies on both a local and national level. CFF, made up of hog farmers from Iowa, Illinois, Missouri, Minnesota, and a dozen other states, claimed victory in early January when former Secretary of Agriculture Secretary Dan Glickman announced that hog producers had voted down the mandatory pork tax by a 53-47% margin in a national referendum held last fall. Veneman announced on Feb. 28 that a settlement with the National Pork Producers Council, USDA would allow the pork tax to remain in effect but with certain modifications in how the program is operated. 

EU Rules Out Vaccination. BLOOMBERG NEWS reports from London that the European Union has decided against a program of general vaccination of farm animals against foot-and- mouth disease, which has spread to three other EU nations since the UK epidemic started last month. The EU Standing Veterinary Committee permitted the Netherlands to use emergency vaccination in a restricted area surrounding an outbreak, and only "if the volume of animals exceeds the available destruction capacity," according to a news release from the European Commission. Dutch authorities had appealed to the EU to reverse its 10- year-old general vaccination ban after three cases of foot-and- mouth were confirmed in the Netherlands. The government ordered the slaughter of at least 18,000 farm animals to stop the disease from spreading. Officials see vaccination as a way of minimizing further slaughter. The EU does not approve of mass vaccinations, in part because of economics, said Thierry Chillaud, head of information and of the international trade department at the Paris-based World Organization for Animal Health. The United States and Japan ban imports of vaccinated animals and their meat, he said, because quarantine inspectors find it impossible to say whether foot-and-mouth antibodies they detect are caused by an infection or by the vaccination. 

ADM Will Close Soybean Plant.  REUTERS reports that Archer Daniels Midland Co., the leading U.S. oilseed crusher, will close its Kansas City soybean crushing plant indefinitely today due to poor crushing profit margins. "Margins are at a point that are unacceptable -- we'll see how long it takes for margins to get back to acceptable levels," said Larry Cunningham, ADM spokesman. Cunningham said no layoffs were planned. In recent months, U.S. soybean crushers have reported lower cash crushing margins, largely in reaction to low prices for soy products. Soy meal futures at the Chicago Board of Trade have fallen by about $30 per ton since Jan. 1. 

French Approve Irradiation. The French food safety agency AFSSA has approved a plan for France's food industry to irradiate human and animal food products to prevent spoilage and kill harmful bacteria. REUTERS reports that AFSSA said in a statement it was in favor of a government plan to irradiate food as long as the practice did not replace existing food hygiene standards and as long as it was used correctly on hygienic food. AFSSA noted that the World Health Organization and the Food and Agriculture Organization both approved food irradiation as a safe practice in 1980. Proponents say irradiation, which works by beaming food with varying levels of energy, extends the shelf life of products and enhances safety by killing food-borne bacteria like E.coli, salmonella, staphylococcus and listeria, among others. Opponents, which include environmental groups, contend that the procedure means meat processing plants are less likely to monitor food safety if they can simply sterilize contamination in raw mea

March 22, 2001

Veneman Announces Four at Top USDA Posts. President Bush intends to nominate four individuals to top posts at USDA, Agriculture Secretary Ann Veneman said Thursday. J.B. Penn, senior vice president and manager of Sparks Companies, Inc., Washington office, will be nominated to be under secretary for farm and foreign agricultural services. Eric M. Bost, chief executive of the Texas Department of Human Services, will be named under secretary for food, nutrition and consumer services. 

Roberts Introduces Fast-Track.  Sen. Pat Roberts (R-KS) was to introduce Thursday new legislation to give the President permanent trade promotion authority, formerly known as "fast track." The Permanent Trade Promotion Authority and Market Access Act of 2001 amends the Omnibus Trade and Competitiveness Act of 1988 to extend trade promotion authority indefinitely. 

USDA Seizes Vermont Sheep.  USDA has removed a flock of 233 quarantined sheep from a private farm in Vermont. The sheep had been exposed to feed contaminated with bovine spongiform encephalopahty (BSE). The animals will be sent to Ames, IA, where they will be killed and tested for BSE and other diseases, but it will be at least two years before the tests will be finalized. 

Rice Producers Call for Two Years of Aid.  Rice producers have asked Congress to appropriate enough emergency aid to cover farmers' needs for this year and 2002. The only caveat they offered the House Agriculture Committee was that the assistance to rice farmers should total no more than was provided for the 2000 crop. That also provides Congress enough time to debate and approve a new farm law, they added. 

EPA Allows More Public Review on Pesticides.  The Environmental Protection Agency has submitted an amended consent decree to the federal district court in California that "will guarantee new opportunities for public participation and additional external review of critical pesticide decisions," according to EPA Administrator Christine Whitman. The decree was an effort to resolve lawsuits and were the result of negotiations among EPA, the Natural Resources Defense Council and representatives of the pesticide industry and farmers. 

USDA Approves Biomass Projects.  USDA has approved four biomass pilot projects for Iowa, Minnesota, New York and Pennsylvania. USDA sought proposals in a Federal Register notice Oct. 20, 2000. These four projects were approved from seven proposals reviewed by State Farm Service Agency Committees in consultation with the Natural Resources Conservation Service and State Technical Committees. Recommendations were then submitted for review by an interagency group of officials from FSA, NRCS, the Fish and Wildlife Service, and the Forest Service. Additional information is being sought on the other three proposals and, subject to a statutory limit of six pilot projects, those proposals may be approved at a later date. 

News Summaries

Ireland Fourth for F&MD. REUTERS reports that Ireland Thursday became the fourth European country to discover foot-and-mouth disease, this time on a sheep farm in the northern part of the country. Ireland is suspending animal product exports while the continent braces for yet more outbreaks of the highly infectious disease. Irish Prime Minister Bertie Ahern said tests on tissue samples taken from sheep on a farm in north County Louth, near the border with Northern Ireland, had proved positive. The samples were from animals on a farm situated within a 10-km exclusion zone placed around the holding in County Armagh where Northern Ireland's only outbreak of the disease was confirmed earlier this month. All the sheep on the farm have been slaughtered. 

EU Issues Ban on Irish Exports.  THE WALL STREET JOURNAL reports that the European Union Commission said Thursday it will have a ban on exports of livestock and certain untreated products from County Louth in Eire by Thursday afternoon following confirmation of foot-and-mouth disease in the area. Agriculture spokeswoman Beate Gminder said that in line with the bans imposed on the U.K., the Netherlands and France, the EU will ban exports of livestock and exports of untreated products including dairy products, meat products and hides and skins. Gminder said the exact area covered by the ban still has to be decided, but it will be around the zone where the disease was found. 

U.S. Soybean Meal Goes to Yugoslavia. U.S. officials have signed a fiscal year 2001 Section 416(b) agreement with the government of the Federal Republic of Yugoslavia for the donation of U.S. soybean meal for monetization in Yugoslavia. The agreement provides for approximately 50,000 metric tons of U.S. soybean meal. The government of the Federal Republic of Yugoslavia plans to sell the soybean meal and use the proceeds to assist the elderly poor and handicapped who have not received sufficient disability pensions over the past two years. Proceeds will also be used to improve food security in Yugoslavia by establishing a fund to support the Yugoslavia Ministry of Agriculture in food safety and agriculture development activities. 

ACPA Agrees with FDA Decision on Biotech Foods. The American Crop Protection Association has commended the Food and Drug Administration for conducting "a thorough and transparent stakeholder involvement process regarding voluntary labeling of foods developed through biotechnology." FDA reaffirmed that there is no scientific basis for requiring special labeling of foods derived via biotechnology because there are no data or other pertinent information that would justify such labeling, ACPA President, Jay J. Vroom said. "ACPA also agrees with FDA that terms such as 'GMO free' and 'GM free' are potentially confusing to consumers and should not be used. Moreover, these terms are technically inaccurate because most foods are derived from plants that have been genetically modified in some way," he added. Since ACPA members are heavily involved in the development and use of modern biotechnology methods in the initial stages of the farm-to-food chain, "they are vitally interested in the application of guidance to all foods developed from new plant varieties, including those developed using recombinant DNA technology," Vroom said. 

China Develops F&MD Vaccine.  BLOOMBERG NEWS reports that China has developed a vaccine for foot-and-mouth disease, currently infecting livestock herds in the United Kingdom and parts of Europe. The article quoted the Xinhua news agency which cited the Ministry of Agriculture. After 18 years of research, scientists from the Shanghai-based Fudan University, the Shanghai Agricultural Science Academy, and a number of other research institutes have developed a vaccine to protect pigs from the disease, the report said. Two vaccinations can keep a pig free from the disease for four to five months, it said. China has about 700 million pigs and 300 million head of cattle and sheep, which the ministry said are free of the highly contagious disease, the report said. 

Japan Will Allow Some Gene-Altered Foods. REUTERS reports that the Japanese government still plans to allow food imports to contain up to 5% of approved genetically modified ingredients beginning next month. Masaki Sakai, Japan's agriculture counselor at the embassy in Washington, said the planned labeling standard for genetically altered foods was published about a year ago. The new rule takes effect on April 1, he told the news agency. Japan will allow food products containing up to 5% of approved biotech crops like corn and soybeans to be labeled as non-GMOs. "We understand there could be inadvertent, inevitable commingling with approved GMO varieties," he said. "So the product labeled non-GMO won't constitute a violation, if only up to 5 percent contains GMOs." Sakai said Japan still would have zero-tolerance for unapproved biotech crop varieties, like StarLink corn, in its food products. 

March 21, 2001

Farm Bureau Finds Profits Worry Young Farmers. For the third straight year young farmers and ranchers say the biggest challenge facing them is profitability, and for the fourth consecutive year they say they believe the best way to address that challenge is to boost export sales of U.S. farm products. Despite a high level of off-farm employment and supplemental income, young farmers and ranchers are feeling the same economic pressures as their more established counterparts. 

Senators Urge More for Agriculture.  A group of senators has asked the Senate Budget Committee to authorize yet another farmer economic bailout program similar to what was appropriated last year or about $10 billion. "We support making market loss assistance available so that the total amount of assistance available through the 2001 Agricultural Market Transition Act payment and the market loss assistance payments will be the same as was available for the 2000 crop," they said in a letter to committee Chairman Pete V. Domenici. 

Cattlemen Issue Primer on Disease. The National Cattlemen's Beef Association has issued what amounts to a primer on foot and mouth disease as well as bovine spongiform encephalopathy (BSE) or mad cow disease. Although there have been no reported cases of either in the United States, outbreaks of both in Europe have U.S. livestock producers and processors on edge. F&MD does not affect humans but can cause whole herds to be destroyed, as is taking place in Europe now. Humans are susceptible to a form of BSE, however. 

Triple-A Enters the F&MD Prevention Squad. Americans returning home from Europe are being urged to help protect the United States' livestock industry from an outbreak of foot-and-mouth disease by the American Automobile Association. AAA - the nation's largest leisure travel agency - said by following recommendations and prohibitions from USDA, foreign travelers can help prevent the introduction of this extremely contagious disease that is devastating to cloven-hoofed animals, but is not considered a human health threat. 

News Summaries

Dutch Confirm First F&MD Case. REUTERS reports that the Dutch have confirmed their first case of foot-and-mouth disease. This makes the Netherlands the second country in continental Europe after France to have detected the highly infectious disease which has spread across much of Britain. The Dutch ministry said it was not known how four cows at the farm near the city of Olst had contracted the disease, since they had not come in contact with any imported animals. The government said it had implemented a total ban on lifestock movements inside the country to control the spread of the disease. Dutch Agriculture Minister Laurens-Jan Brinkhorst told the Dutch parliament that shipments of milk and feed in a 10-km radius around Olst had been banned. 

New Milk-Based Beverage Almost Ready. A new carbonated, milk-based beverage almost ready for retail launch is expected to give children a healthy alternative to soda and may create a new market for struggling dairy farmers, its developers said. THE ASSOCIATED PRESS reports that e-Moo should be available in supermarkets in the Northeast by June, according to Mary Ann Clark, vice president of marketing for Mac Farms of Burlington, MA, the drink's maker. "We are giving parents and children an opportunity to buy a healthy product. Everyone knows milk is good for you. But it's not cool to drink milk. We're going to make it cool," she said during a special demonstration of the company's bottling system at Cornell. e-Moo, developed with the help of food scientists at Cornell, is fat-free, contains less than 1% of the recommended daily allowance of cholesterol, about half the sodium usually found in flavored milks and has 130 calories in an eight-ounce serving. It is made with crystalline fructose, instead of refined sugar and provides protein, calcium, and vitamins A, C and D. 

USDA Investigates Nine for F&MD.  Animal health inspectors have investigated about nine suspected cases of foot-and-mouth disease in livestock from Idaho to Illinois, a USDA official told REUTERS. Joe Annelli, chief of emergency programs at USDA's Animal and Plant Health Inspection Service, said in an interview that none of the cases exhibited any traces of the highly contagious foot-and-mouth virus. "There are currently no premises in the U.S. currently under investigation for foot-and-mouth," Annelli said. U.S. officials have said that an outbreak in the United States, free of F&MD since the 1920s, could cause billions of dollars worth of losses to farmers. 

More Livestock Testing Expected.  REUTERS reports from Chicago that more U.S. livestock herds will likely be tested for foot-and-mouth disease as the crippling disease spreads in Europe and more U.S. livestock producers watch closely for suspicious symptoms. Chuck Lambert, chief economist for the National Cattlemen's Beef Associated, says not only will testing increase, but an anxious public and livestock industry will see more of these tests reported in the media. USDA investigates about 400 cases of foreign animal diseases a year, but many of these investigations go unreported, said Lambert. "We would actually expect to see the number of investigations increase," said Lambert. "These happen routinely but because of heightened scrutiny and heightened media awareness every one of these investigations will probably be reported." USDA reported Tuesday that some calves were tested in Idaho after displaying suspicious symptoms, but they did not have foot-and-mouth disease. Before USDA issued the report, rumors of the tests briefly rattled the livestock markets at the Chicago Mercantile Exchange. 

Restaurants May Run Short of Ribs. THE ASSOCIATED PRESS reports that some restaurants could run out of baby back ribs from Denmark unless the temporary U.S. ban on meat imports from Europe ends soon. The Danish pork product is considered to be more tender than its U.S. pork ribs and is popular with barbecue-loving Americans, the AP notes. "It was the major victim of the ban on European Union meat imposed last week after an outbreak of foot-and-mouth disease spread from Britain to France," says the article. U.S. restaurants have about a four- to six-week supply of the Danish ribs on hand, Steven Grover, a vice president of the National Restaurant Association, said Tuesday. 

Soybeans Gain on EU Expectations.  BLOOMBERG NEWS reports that soybeans had their biggest gain in two weeks as the demand for soy- based livestock feed in the European Union is expected to replace feed banned because of its link to mad cow disease. An EU study said the trading bloc will need to increase meal imports by up to 1.5 million metric tons this year because of its ban on feed made from animal parts. U.S. exporters have a few weeks to secure orders from Europe before the market is flooded with cheap South American beans, analysts said. "Anyone who wants to make money off of this better start loading boats now," said Chris Carlee, a grains analyst with Frontier Risk Management in Chicago. "We've got 60 million tons of soy coming out of South America in a few weeks so the window of opportunity" for U.S. suppliers "is small." Soybeans for May delivery rose 3.25 cents, or 0.7%, to $4.4675 a bushel on the Chicago Board of Trade, the biggest gain since March 6 and the highest closing price since March 13, according to this report. Soybeans have increased 2% since reaching a 20-month low of $4.38 on Thursday. 
 

March 20, 2001

'Biosecurity' Methods for Dairy Herds. The National Milk Producers Federation has issued a "biosecurity plan" for dairy farmers to implement precautions against and minimize exposure to infectious diseases such as foot and mouth disease and be better prepared in the event of an outbreak in the United States. Such a plan is "of the utmost security," said NMPF. "Biosecurity" means managing a herd to prevent the introduction and spread of infectious diseases. 

NGFA Adopts BSE Prevention Policy. The National Grain and Feed Association adopted a major policy statement concerning efforts to prevent the emergence of bovine spongiform encephalopathy during its just-completed 105th annual convention. Approximately one-third of NGFA-member companies are involved in the manufacturing and distribution of animal feed. The policy statement was developed and recommended by the NGFA's Feed Industry Committee, and subsequently was adopted unanimously by the association's board of directors. 

Some Winter Wheat Emerging Late.  USDA says analysis of satellite imagery and weather data indicates that the 2001 hard red winter wheat crop in the Southern Plains (Kansas, Oklahoma, Texas, Nebraska, and Colorado) is emerging from dormancy later than seen in recent crop years. However, February and March weather in 1998, 1999, and 2000 was generally warmer than normal. 

Corn Growers Urge Study Completion. The National Corn Growers Association (NCGA) has "strongly encouraged" Congress to move immediately to complete the navigation study by the U.S.Corps of Engineers and upgrade locks and dams on the Mississippi and Illinois rivers. "Delays by the U.S. Army Corps of Engineers have already given Brazil, Argentina and China an eight-year $57 million head start in the race for future grain markets," said Tim Burrack, Arlington, IA, farmer and a member of the NCGA Production and Stewardship Action Team. 

News Summaries

Janklow Seeks Safe SD. REUTERS reports that South Dakota Gov. Bill Janklow has directed the state's agriculture department to develop a plan to protect livestock producers against the potential spread of foot-and-mouth disease. State officials will draft the plan over the next few weeks and present it to South Dakota's livestock industry for review later this spring. U.S. livestock producers are concerned that the disease could return to this country after breaking out across Britain, and France, the article notes. The United States, Canada, Mexico, Australia, South Korea and other countries have halted meat imports from the European Union. The news agency says South Dakota is among the top U.S. livestock producing states with 365,000 head of cattle on feed on Jan.1 and a total hog inventory of more than 1.3 million head as of December 2000. 

Britain Lures Tourists: Miliary Aids Slaughter.  Britain is trying to lure tourists back to the country even as military troops help fight a foot-and-mouth epidemic ripping through the country, REUTERS reports. Prime Minister Tony Blair is persuading people at home and overseas that rural Britain is safe to visit as long as precautions are taken because. The news agency notes there have been signs the month-long crisis is harming the nation's image. About100 soldiers began work in Devon, south west England, and Cumbria in northern England, to help cope with the slaughter and disposal of thousands of animals infected with the highly contagious disease as well as healthy ones in highly infected areas. A Blair spokesman said the troops were helping only with the planning and logistics of the mass cull, not executing the animals which was the job of veterinarians. 

India's Meat Exports Increasing.  THE WALL STREET JOURNAL reports that India's meat exports are increasing. Some traders say that foot-and-mouth disease in Europe has spurred greater inquires from abroad. Cattle diseases in Europe "could increase meat exports," said an official from the Agricultural and Processed Food Products Export Development Authority. "But meat exports are rising anyway." Indian meat products, mostly comprising buffalo, sheep and goat meat, find markets in the Middle East and Southeast Asia. "The jump (in inquires) has been by around 20% in the last two months," said Sirajuddin Qureshi, managing director of Hind Agro Industries Ltd., a prominent meat exporter in Bombay. "This is likely to increase further." 

California Farm Women Hit the Air. California farm women are taking their messages directly to consumers with a series of radio ads highlighting the value of agriculture to the health and well being of consumers in the state and around the world. The spots, produced by California Women for Agriculture and featuring the familiar voice of former supermarket spokesprson Stephanie Edwards, are intended to increase awareness and educate consumers about the California agriculture industry. Less than 2% of the state's population is involved directly in growing food and fiber. "It is essential that we all understand our connection to agriculture, whether or not we have ever set foot on a farm," explans Ellen Way, California Women for Agriculture state president. The spots remind listeners that, "If you eat and wear clothes, you are involved in agriculture." 

Pork Prices Decline; First Time in Week.  BLOOMBERG NEWS reports that hog and pork belly prices declined for the first time in a week over concern that Japan, the world's largest pork importer, may not ban European meat supplies to combat the spread of foot-and-mouth disease. Hog prices surged 7% last week on speculation that Japan would join the United States, Canada and other countries in a ban on European Union meat after the illness was found in a French cattle herd on Tuesday. With France reporting no new cases since then, a ban was appearing less likely, analysts said. "We need a more solid case that foot-and-mouth disease is affecting France before Japan will do anything," said Chuck Levitt, an analyst with Alaron Trading Corp. in Chicago. 

UK Reaches Out to Stressed Farmers.  THE ASSOCIATED PRESS reports that Britain's chief veterinarian has promised to improve communications with livestock producers. The government is facing a revolt from some farmers opposed to killing apparently healthy animals to stop the spread of foot-and-mouth disease. Jim Scudamore, Britain's top veterinarian, met farmers, vets and officials in Cumbria, the northeastern English county that has been clobbered by the fast-spreading disease. "We have got to improve communication, particularly with the farming communities in Cumbria," Scudamore said after the meeting. He added that he was unsure when the pre-emptive cull of apparently healthy animals would begin. Meanwhile, in Brussels, Belgium, Britain's agriculture minister sought to assure his European Union colleagues Monday that his country was doing all it could to stop the foot-and-mouth outbreak ravaging British livestock from spreading across mainland Europe. 
 

March 19, 2001

Lugar Wants No More Sugar Buys. Senate Agriculture Committee Chairman Richard Lugar (R-IN) wants USDA to purchase no more surplus sugar in another attempt to raise market prices for the product. Lugar consistently has opposed such efforts. Lugar believes Agriculture Secretary Ann Veneman may be encouraged to announce an additional sugar ‘payment in kind' (PIK) program. Under the scheme, farmers would be given surplus sugar held by USDA in exchange for destroying or not planting sugar beets or cane. 

Governors Call for Farmer Assistance. The National Governors Association (NGA) has called for a new state-federal strategy that would provide coordinated and flexible educational, financial, and technical assistance to farmers, ranchers, and forest landowners. The NGA is launching a program to help promote "working lands conservation" for general land preservation. 

Brazil Opens Market to U.S. Wheat.  Agriculture Secretary Ann M. Veneman says Brazil's decision to reopen its market to U.S. hard red winter, hard red spring and soft red winter wheat imports is the result of more than five years of negotiations between USDA and Brazilian officials on phytosanitary concerns. "We are encouraged by the latest development. Brazil is expected to be the world's largest wheat importer this year and with trade so vital to our agricultural economy, it is important that U.S. farmers have access to this market," she said. 

USDA Begins Disaster Payments.  USDA has begun making more than $1.1 billion in crop disaster payments for losses to 2000 crops. So far, about 450,000 applications from 160,000 farmers have been approved and more are expected. Final payments and statewide totals will be announced when all payments are made. 

News Summaries

International Animal Feed Code Sought.  REUTERS reports from Copenhagen that experts from more than 40 countries assembled today in an effort to develop an international code of practice for animal feed to go into effect by 2003. "The whole question of animal feed is in focus as rarely before given the BSE (mad cow) and foot and mouth outbreaks," Danish Plant Directorate director and host of the three-day meeting Mogens Nagel Larsen told Reuters. "Food safety is incredibly important and must be addressed at source out on the farms." Larsen's directorate hosts an international Task Force on Animal Feeding, set up last year to work out new strategies and agree an international code of practice by 2003. "The idea was to agree a code of practice for good animal feeding in 2003, but I hope we can reach an accord before that, given the current urgency of the whole matter," Larsen said. This second session, running from today through Wednesday in Copenhagen, will study amendments to a draft code, focusing on a possible ban on meat-and-bone meal in cattle feed as a precaution against mad cow disease along with the use of genetically modified (GM) soy and maize. 

Stored Corn at StarLink Risk.  More than 430 million bushels of corn in storage nationwide have been mixed with StarLink corn which is not approved for food use, a senior executive of corn maker Aventis SA said on Sunday. REUTERS reports that figure greatly increases the estimate of the amount of U.S. corn inadvertently mixed. Aventis, in its most detailed accounting of the StarLink contamination to date, also said it was urging the federal government to establish a tolerance level that would permit a small amount of the bio-corn to occur in large shipments. "At the elevator level, we have already rerouted 94 million bushels of corn commingled with StarLink corn and know of an additional 343 million bushels in storage that will be rerouted in the months to come," said John Wichtrich, general manager for Aventis CropScience, a unit of the Franco-German pharmaceutical company. Wichtrich made his remarks in a San Antonio speech to a meeting of the North American Millers Association, which represents companies that grind wheat and corn into flour. A copy of the speech was made available by Aventis. Separately, THE WASHINGTON POST reports that new tests for allergenicity could be crucial to the entire future of biotech. 

Healthy Sheep Slaughtered in Britain. THE ASSOCIATED PRESS reports that British authorities say they have slaughtered 1,800 apparently healthy sheep as part of a massive effort to cull livestock that many have come into contact with foot and mouth disease. The slaughter took place Saturday on two Scottish farms that had links to a livestock market where the highly contagious virus was found. Similar pre-emptive culls are to take place at four farms in the Highlands next week. Many farmers have complained bitterly about the plan to kill tens of thousands of healthy-appearing animals on the mere suspicion that they could have been exposed to foot-and-mouth disease. But Agriculture Minister Nick Brown defended the tactic. "The purpose is to take out animals that have been exposed to infectivity but are not yet showing symptoms," he told the British Broadcasting Corp. "People refer to these as healthy animals, but we don't know that they are healthy animals." Asked about some farmers' threats to barricade their farms to prevent the slaughter from going ahead, Brown said, "We are not going to be able to control the disease outbreak easily if people try to resist the disease-control measures." 

Britain's Agriculture Could Come to Halt.   REUTERS reports that British farmers' leaders have warned that agriculture could come to a standstill until the end of the year. Veterinarians admitted they were a long way from defeating the foot-and-mouth epidemic devastating the industry. As the number of F&MD cases across Britain increased to 303, Ben Gill, president of the National Farmers' Union, said farming and exports would feel the pain inflicted by the crisis for many months to come. "The downstream consequences of this disease will mean that there will be movement restrictions on livestock, certainly on the sheep, for the foreseeable future -- certainly for the rest of this year," Gill told BBC television. "I would be pleasantly surprised if we were exporting sheep meat before the end of this year." 

USDA Will Seize Vermont Sheep. USDA will seize and slaughter two flocks of Vermont sheep suspected of carrying an ailment related to mad cow disease within the next three weeks, REUTERS reports officials saying. The news agency says the decision contradicts a pledge that the agency made that it would wait for a federal appeals court to decide the matter. The first hearing in the appeal is set for April 10, in New York. The U.S. 2nd Circuit Court of Appeals said on March 6 that it would expedite the appeals process but did not issue an order to stop the USDA from acting. On the day of the ruling the USDA said it would wait for the appeals and it gave no reason on Friday for changing its position. "We will be seizing the flocks," said USDA spokesman Jerry Redding. Redding's comment confirmed the contents of a letter from Assistant U.S. Attorney Paul Van De Graaf to the lawyer of Larry and Linda Faillace, who own one of the flocks. "USDA has decided to seize your clients' flock sometime in the next three weeks. USDA will notify your clients the evening before the pickup," read Van De Graaf's letter, made public on Friday. The Faillace's lawyer, John Buckley, said there was nothing he could do to stop the USDA, and in a letter to the U.S. attorney, wrote that the farmers will not resist the seizure. The three members of Vermont's Congressional Delegation -- Sens. Patrick Leahy and Jim Jeffords and Rep. Bernie Sanders -- Thursday said, "USDA's decision to remove the sheep is the correct solution to this difficult situation. Any further delay could endanger public health and put at risk the entire New England dairy and sheep industries. The potential harm could easily go beyond our agricultural industries to also impair travel and tourism and the reputation of the Vermont brand that is so important to our economic future." 
 

March 16, 2001

Pork Producers on F&MD Alert. The recent outbreak of foot and mouth disease (F&MD) in the United Kingdom and now continental Europe has heightened awareness of potential animal health risks facing pork producers. Although the United States has not had to face F&MD since 1929, the National Pork Producers Council (NPPC) has been working diligently for many years to ensure that all preventive measures are taken and that in the event of an incursion of a foreign animal disease, an effective and rapid response would be mounted. 

Estate Tax Death Again Urged. Repealing the federal death tax is critical to the financial well-being and survival of family farms and small businesses, according to Sen. Chuck Grassley (R-IA), chairman of the Senate Committee on Finance. "Family farmers and small business owners live poor and die rich," Grassley said. "Their assets are tied up in land, buildings and everything they need to keep things running. When the farmers or business owners die, their children pay a big penalty to the government on their inheritance. The product of a life's work leaches away like seeds in poor soil." 

Supporters Hopeful on Rail Bill. With the Surface Transportation Board moratorium on rail mergers set to expire in three months, supporters of legislation to more strictly regulate rail consolidation are optimistic that the reintroduction of a bill from the last congressional session will garner more attention this time around. Only two railroads carry the vast amount of goods being shipped west of the Mississippi River and in many areas they do not compete with each other. 

Agriculture Panel Calls for More in Budget. The House Agriculture Committee has called on the budget committee to authorize what could amount to several billion dollars more for farm programs. "We first wanted to make clear that the crisis in agriculture is not over," said Agriculture Committee Chairman Larry Combest (R-TX). "In fact, with increasing input costs and little to no price recovery, it is only getting worse, and based on this, assistance will be needed in 2001." 

EPA Panel Reports on Bt Crops. A panel of independent scientists convened by the Environmental Protection Agency has completed work on its report which provides input on EPA's preliminary comprehensive reassessment of all Bacillus thuringiensis (Bt) corn, cotton, and potato plant incorporated protectants. EPA solicited advice from the scientific advisory panel (SAP) during a public meeting held Oct. 18-20 to ensure that the agency's reassessment of currently-registered biotechnology products utilizes the most current scientific understanding, and meets the most stringent public health and environmental safety standards. 

News Summaries

Daschle Again Urges Total Ban.  Senate Minority Leader Tom Daschle has again urged the Bush administration to issue a full moratorium on all U.S. imports of cattle, beef, sheep and hog products, according to a REUTERS report. "While I appreciate the steps that USDA has taken thus far, our current containment strategy stops short of protecting the U.S. livestock industry to the fullest extent possible," Daschle said in his latest letter to Agriculture Secretary Ann Veneman. "The policy of waiting until F&MD and/or BSE are detected before we ban imports from a particular country is an insufficient policy, and it must be corrected." Last week, Daschle sent a similar letter to Veneman. USDA officials had no comment on the letters. 

Pork Prices Increase Sharply Again. Pork prices increased sharply for a third consecutive day Thursday, REUTERS reports. The gains came after Tokyo-based traders said Japan, one of the world's biggest meat importers, would seek pork from the United States and Canada to replace supplies from Denmark as a result of foot-and-mouth disease in Europe. "I think the whole foot and mouth issue and the export potential is supportive to the pork complex," said Doug Harper, senior livestock analyst with Milwaukee-based Brock Associates. At the Chicago Mercantile Exchange Thursday, prices for pork bellies, the raw material for bacon, closed at new eight- month highs and up the 3.00-cent-per-pound daily limit for the second straight day. March bellies closed at 87.250 cents, up 3.00 cents, the highest since July 2000. 

Veneman Attempts to Calm Farm Woes. Agriculture Secretary Ann Veneman sought to reassure beleaguered Nebraska farmers Thursday that the new Bush Administration is working to help stabilize family farms, according to a REUTERS article. Veneman said tax cuts and opening new markets for agricultural exports were two key elements of strengthening a struggling farm economy. "It's critical we have access to markets abroad," she told a gathering of about 500 farmers and business leaders in Norfolk. It was the same message she delivered Thursday morning to a group of farmers in the central part of the state. Veneman said the Bush tax cut plan would reduce the burden on farmers. And she stressed efforts to expand export markets for corn, soybean, wheat and other crops grown in Nebraska and throughout the United States would be a top priority. Veneman said the USDA also wants to broaden markets for alternative agricultural products, such as soy-based inks, a variety of ethanol uses and biodiesel, another grain-based fuel, to help diversify the agricultural economy. 

Population Moving off the Land. REUTERS reports rural America is being abandoned in broad areas of the Midwest "where the renewed crisis in agriculture and the lure of opportunities elsewhere siphons population off the land." The article quotes experts commenting on the latest U.S. census figures. While urbanization and suburbanization in the United States is nothing new, the migration from many rural areas appeared to regain momentum during the 1990s, leaving behind a graying populace and small towns struggling to remain viable. "From what I hear about the census numbers, these places keep emptying out," said Rutgers University land use planner Frank Popper, famous for his "Buffalo Commons" thesis that calls for restoration of the fenceless Great Plains prairies. Popper's notion, first broached more than a decade ago, does not sit particularly well in sparsely populated Harding County, South Dakota, the news agency notes. A patchwork of ranch land, prairie and hills in the northwest corner of the state, the county has lost 19% of its population since 1990 and has just 1,353 people scattered over 2,680 square miles. 

More Soybean Seed Sales Expected.  Farmers will need to buy more soybean seeds than normal to plant this year's crop because a Midwest drought last summer damaged the quality of seeds, according to BLOOMBERG NEWS, quoting growers and grain merchants. Iowa and Illinois, the largest producers of soybeans and the seeds used to grow them, lost as much as 20% of their seed crops compared with a normal loss rate of 6%, farmers and seed company executives said. And many of the seeds that survived the drought won't be as productive, they added. Seed quality will "be poorer than normal in many ways," said Harry H. Stine, president of Stine Seed Co. in Adel, IA, the largest U.S. breeder of soybeans. "The farmer will need to plant more." The article notes that farmers spent $1.54 billion on soybean seeds last spring. While ample supply of lower-grade seed will prevent a shortage and keep prices in check, farmers will need to buy and spend more on seeds from merchants such as Monsanto Co. to match the record U.S. soybean production last year, industry executives said. 

A Bridge too Far, Says EU.  REUTERS reports that an European Union official says Washington went too far in banning shipments of live animals and raw meat from the entire European Union because only Britain and France have confirmed outbreaks of the highly contagious foot and mouth disease. Gerry Kiely, agriculture counselor for the European Commission's delegation in Washington, criticized the United States for its ban on more than $400 million worth of meat products from the 15-member EU. The U.S. action prompted other nations to follow suit, he said. "An all-out ban in our view is disproportionate and it's the simple option," Kiely said. "Our concern is not just implications of trade with the United States," he said. "On issues such as this, where the U.S. leads, there is always the risk of others following and its effect on other markets." 
 

March 15, 2001

USDA: More Details on F&M Actions. USDA Wednesday clarified its earlier announcement that certain animals and animal products from Europe would be banned temporarily. USDA specifically is prohibiting temporarily importation of swine and ruminants and any fresh swine or ruminant meat (chilled or frozen) and other products of swine and ruminants from the European Union. This does not include cooked pork products. 

GMA Seminar Addresses Food-Related `Armaments' Mike Deaver, global vice chairman of Edelman Public Relations Worldwide and former assistant to the president in the Reagan Administration, will offer insights from more than 30 years in national politics and public relations to a seminar May 15-16 in Chicago sponsored by the Grocery Manufacturers Association. GMA members are faced with product recalls, food safety scares, biotech protests, labor strikes, discrimination lawsuits, environmental accidents, corporate restructuring and factory closings. 

Nussle Calls for New Farm Bill. House Budget Committee Chairman Jim Nussle (R-IA) Wednesday called on Congress to write a new farm bill this year and not wait until the 1996 law expires in 2002. Congress should "debate immediately," he said, and approve a bill before the year is out. He also called on Agriculture Secretary Ann Veneman to clean up the "mess" at USDA to satisfy farmer complaints about costly regulations and slow program benefits. 

News Summaries

Japan Seeks New Pork Sources.  REUTERS reports that Japanese importers are seeking pork from the United States and Canada to replace supplies from Denmark as a result of fears over contagious foot and mouth disease in Europe, according to traders. Japan imposed a ban on Danish pork imports, and that has "increased reluctance among Japanese importers to make fresh deals with the country," the article said. "Some importers have already started seeking pork from the United States and Canada to replace Danish pork after a one day import ban by the government early this month," said a meat trader at a leading company. Danish pork accounted for about one third of the 650,595 tonnes of the meat imported by Japan last year. U.S. and Canadian producers are seen as the biggest beneficiaries of the move away from Danish supplies. News of the one day ban sent Chicago Mercantile Exchange lean hog and pork belly futures briefly up the daily limit. Imports of U.S. and Canadian pork may be limited, however, by fragile consumer demand and a weak currency, according to the news agency. "A combination of foot-and-mouth disease and the wobbly yen, which is hovering around 20-month lows against the dollar, has pushed pork import prices up by more than 10% to $5-$6 per kg since the beginning of this year," the article quoted one trader as saying. 

Egg Certification Deadline Month Away.  USDA is inviting egg producer organizations that are not already USDA-certified as eligible to nominate members and alternates to the American Egg Board to request certification by April 13. USDA will seek nominations this summer from all USDA-certified egg producer groups to fill two-year terms of nine members and their alternates, whose terms expire at the end of 2001. The board administers an egg research and promotion program, authorized by the Egg Research and Consumer Information Act. Organizations wishing to be certified should request an application and information from Shethir Mustafa, Poultry Programs, AMS, USDA, 1400 Independence Avenue, SW., Room 3932-S, STOP 0256, Washington, D.C. 20250, tel. (202) 720-0623, fax (202) 720-5631. After certification, such organizations will receive information on how to nominate producers or representatives of producers to serve on the board. 

Dry Whole Milk Standards Revised. USDA has revised the United States standards for grades of dry whole milk. The changes will lower the maximum bacterial estimate for U.S. extra grade to not more than 10,000 per gram and for U.S. standard grade to not more than 50,000 per gram; include protein content as an optional test; incorporate a maximum titratable acidity requirement for U.S. extra grade and U.S. standard grade; expand the "test methods" section to allow product evaluation using latest methods included in Standard Methods for the Examination of Dairy Products in the Official Methods of Analysis of the Association of Official Analytical Chemists, and in standards developed by the International Dairy Federation; reference the Food and Drug Administration's standards of identity for dry whole milk; relocate information concerning the optional oxygen content determination, and make editorial changes to provide consistency with other U.S. grade standards for dairy products. The revised Standards are available from Duane R. Spomer, Chief, Dairy Standardization Branch, Dairy Programs, Agricultural Marketing Service, U.S. Department of Agriculture, Room 2746, South Building, Stop 0230, P.O. Box 96456, Washington, D.C. 20090-6456 or by accessing the AMS Home Page at www.ams.usda.gov/dairy/stand.htm. 

Kellogg Recalls Corn Dogs.  BLOOMBERG NEWS reports that Kellogg Co.'s Worthington Foods unit is recalling meat-free corn dogs after a sampling revealed genetically modified corn that hasn't been approved for human consumption. The recall applies to corn dogs under the Morningstar Farms, Loma Linda and Natural Touch brands, the company said in a statement. It comes a week after the environmental group Greenpeace said it found traces of StarLink, a genetically altered corn, in Kellogg's vegetarian corn dogs. "The lesson we've learned is that the (Environmental Protection Agency's) split-approval process was broken," said Peter Cleary, spokesman for the Grocery Manufacturers of America. "We're happy to see that the EPA has ended that process, which allowed StarLink to enter our nation's food supply." 
 

March 14, 2001

US Denies EU Animal, Meat Imports.  USDA is prohibiting temporarily imports of animals and animal products from the European Union. The action follows a similar action Feb. 21 involving the United Kingdom and Northern Ireland. The imports are being banned because of the confirmation of food and mouth disease in France. 

Pork Producers Hear About Environment and Education. Pork producers attending the National Pork Industry Forum in Orlando, FL, heard how more than $2 million in checkoff funds have been used for the "On-Farm Odor / Environmental Assessment Program," a program through which pork checkoff funds are used to pay for reviews of farms by unbiased, third-party environmental professionals. 

Grimes: Most Hogs Sold on Contracts. Most hogs are sold via contract, with more than half sold by a formula, according to a checkoff-funded research survey by the University of Missouri. The findings were reported during the National Pork Industry Forum by Glenn Grimes, agriculture economist with the University of Missouri. 

FAO Will Advise Nations on F&MD The United Nations' Food and Agriculture Organization says the rapid spread of foot and mouth disease shows how the virus can cause epidemics in countries which have been free from the disease for years. The FAO European Commission for the Control of Foot-and-Mouth Disease (EUFMD) will discuss the current outbreak and advise countries at its meeting in Rome on March 21-23. The Commission was established in 1954 and has 33 member countries. It coordinates the national FMD programs at the continental level. 

News Summaries

AMS Testing Pricing Computer System.  USDA's Agricultural Marketing Service is testing the computer system to be used when the new mandatory price reporting for livestock and meat products goes into effect April 2. All firms identified by the agency as subject to reporting have been invited to participate in the testing program. AMS will contact all firms failing to respond to the invitation this week. Companies that believe they are subject to reporting and have not been contacted by AMS, should call the AMS Livestock and Grain Market News Branch at 202-720-6231 or Mark Dopp, American Meat Institute general counsel and senior vice president of regulatory affairs. 

Canadian Potato Farmers Get Aid. Farmers on Canada's Prince Edward Island, "battered by a U.S. ban on potato exports," according to REUTERS, will receive C$14.1 million (US$9 million) in new federal assistance, Canadian Minister of Agriculture Lyle Vanclief, said Tuesday. "The government of Canada recognizes that PEI farmers are going through a tough time and we are committed to helping them get through it," Vanclief told a news conference. If the provincial government contributes under a cost-sharing formula, the funding in the new aid package could increase to C$25 million, Vanclief said. The money will help farmers dispose of millions of kilograms of spoiling spuds by paying producers to spread them on their fields as fertilizer or ship them off to Canadian food banks. "There's never enough money, it seems, in the agricultural system, but we certainly welcome this," one of Vanclief's Liberal colleagues in Parliament, Wayne Easter from PEI, told the news conference. 

Blair Seeks to Calm Farm Anger.  British Prime Minister Tony Blair is trying to calm the anger developing in rural communities over a worsening foot-and-mouth outbreak that is damaging the countryside economy, REUTERS reports from London. As the outbreak of the highly contagious livestock disease entered its fourth week and the number of confirmed cases in the United Kingdom rose to 200, farmers' leader Ben Gill urged Blair not to "abandon" farmers in their time of greatest need. With the public effectively banned from the countryside, hoteliers and restaurateurs added their pleas to those of the farmers, saying their livelihoods were at risk. Britain's meat industry estimates it is losing eight million pounds a week because of a self-imposed export ban and farmers say their soaring bills threaten to put them out of business. Economists warned foot-and-mouth could start to damage Britain's economy, with some forecasting the crisis could wipe as mush as 0.5 percentage points off economic growth in the first half of the year, according to the news agency. The REUTERS article says Blair, anxious to stop the disease becoming a national emergency ahead of an election widely expected on May 3, talked to farming, tourism and small business chiefs in a series of meetings at his Downing Street residence to hear their concerns. 

China's Grain Declines, Cotton Increases.  REUTERS reports that China's total grain acreage this year likely will decline 1.7% from last year to 107 million hectares despite recording the lowest grain output in six years in 2000, according to the State Statistical Bureau. The wheat area is expected to decline 4.9% and acreage for corn by 0.9%. Soybean areas were estimated to be down by 2.5% from 2000. The expected decline is due to low grain prices which were at their lowest in recent years in the first half of 2000, said the bureau, which conducted a survey on planting intentions of 67,000 farmers in 800 counties. Grain prices began to pick up in the second half of 2000, but a slight rise in prices for wheat and rice failed to give farmers good returns, it said. Cotton acreage is expected to increase 14.9% to 4.63 million hectares in 2001 due to higher planting of high-yield cotton and soaring domestic prices, the bureau said. 
 

March 13, 2001

USDA Analysts Report on Brazil.  USDA analysts recently completed a tour of the "agricultural expansion areas" of Brazil, finding generally healthy soybean, corn and cotton crops and a "robust expansion" of cultivated land. Crop area expansion in northeast and center-west Brazil continues with soybeans the dominant crop. 

FAO Creates Animal Emergency Program.  With heightened public concern about food safety and animal health, the Food and Agricultural Organization released a new multimedia program to help countries set up effective procedures for coping with animal disease emergencies. The Good Emergency Management Practices (GEMP) Program was produced as part of FAO's Emergency Prevention System (EMPRES) for Transboundary Animal and Plant Pests and Diseases. 

ASTA Alerts Members on Validating Corn Seed.  The American Seed Trade Association (ASTA) has informed its members to be prepared to provide farmers with validation that the corn seed they purchase this year has been tested for the unintentional presence of StarLinkTM (Cry9C protein) and shown negative results. These results should be derived from tests meeting or exceeding the quality standards set forth in USDA's testing and sampling recommendations. 

Internet Information on Species Sought.  The first meeting of the Global Biodiversity Information Facility (GBIF) took place in Montreal where 14 countries joined and collectively pledged more than $2.5 million to support the organization's first year of operation. The facility is an open-ended body in which any interested country may participate. Its goal is to provide world wide access, via the Internet, to information about the known 1.8 million species of organisms that inhabit the earth. 

News Summaries

China Rejects U.S. Trade Claims. BLOOMBERG NEWS reports that China, struggling to gain acceptance to the World Trade Organization, has rejected claims it failed to fully implement a bilateral trade agreement designed to increase imports of U.S. wheat, meat and citrus fruit. China completed a review that found its adherence to the trade pact was "very good"' after the United States complained about implementation in January, Foreign Trade Minister Shi Guangsheng said at a press briefing. "China often has difficulty implementing these kinds of agreements because it is such a big country," said Yonghao Pu, senior economist at Nomura International Ltd. in Hong Kong. "Even when the central government has the will to sign such an agreement, local governments may not put it into practice if they think too much was given away." China has signed bilateral agreements since 1999 with the U.S., European Union and other WTO members to gain support for its bid to join the group. The article adds that while most of those agreements involve lowering tariffs and boosting import quotas once China is a WTO member, the agreement to open its markets to U.S. wheat, meat and citrus is already in effect. 

Shepherds Appeal to Legislature. Farmers with sheep suspected of carrying a form of mad cow disease are appealing to the Vermont state legislature for help, THE ASSOCIATED PRESS reports. They want to prevent the animals from being seized by the federal government. Linda and Larry Faillace, along with state Democratic Rep. Kinny Connell held a news conference Monday to discuss a resolution sponsored by Connell. The resolution, which Connell said is pending before the House Agriculture Committee, would urge USDA to rescind the execution order for two flocks of sheep. One flock is owned by the Faillaces, and the other is owned by Houghton Freeman of Stowe. USDA maintains that four of the sheep culled from Freeman's farm showed signs of transmissible spongiform encephalopathy, a family of illnesses that includes mad cow disease. The government says the sheep may have been exposed to mad cow disease through contaminated feed before they were imported from Europe in 1996. The article says the Faillaces say the test are inconclusive and based on bad science. A U.S. District Court judge has already ruled that the USDA can seize the sheep. An appeal of that ruling before the 2nd Circuit Court of Appeals is pending. USDA has not said when it plans to seize the sheep. 

Republicans Are Africa-Bound. REUTERS reports that Republican leaders in the House plan to send a delegation to Africa April 5-11 to promote free trade and democratic rights. Lawmakers said the trip was part of a broader campaign by Republicans to improve relations with African Americans in the aftermath of the divisive 2000 U.S. presidential election. The congressional delegation, which will be led by Rep. J.C. Watts (OK), the only black member of the House Republican leadership, will visit Senegal, Nigeria, Ghana and Morocco. "There's a new tone in Washington, and we hope to extend that to our neighbors overseas," Watts said. The delegation will discuss trade, health care, agriculture, economic development and other issues. 

French Claim Fraud in F&M Scare.  THE WALL STREET JOURNAL reports that a representative of France's largest farmers' union claims country's first case of foot-and-mouth disease can be linked to "fraudulent imports" of U.K. livestock. A representative at France's National Farmers' Union told Dow Jones Newswires the French food safety agency had informed them that illegal imports of U.K. livestock at the farm where the outbreak was discovered were to blame. The French Agriculture Ministry said in a statement Tuesday that the infected cow was discovered among a herd of 114 animals at a farm in western France, next to a farm that had imported U.K. sheep in February. The herd was destroyed Monday night. The outbreak in France is the first confirmed case of the disease in continental Europe since the U.K. outbreak began. The U.K. Ministry of Agriculture, Fisheries and Food confirmed late Monday that there were 181 confirmed cases of foot-and-mouth disease in the U.K. So far, 116,000 animals have been slaughtered in the U.K. and 39,000 animals are yet to be slaughtered. 

China's Slow Grain Buys Concern U.S.  The United States is becoming more concerned with the slow pace by China to live up to a 1999 agreement to establish regular U.S. grain sales to that country, a Bush administration official said Monday, according to REUTERS. "The deal hasn't been working very well. We are starting to get very concerned," said Teresa Howes, a China specialist for the U.S. Trade Representative. Washington's concern has been fueled by a delay in clearing a shipment of U.S. wheat through Chinese ports and another delay in a shipment of U.S. barley. Speaking to U.S. grain industry officials meeting, Howes noted that much attention is being paid to negotiations involving China's domestic agriculture subsidies. Those talks are linked to China's eventual entry into the World Trade Organization. Unless the United States starts to see some problem-free sales of wheat and other grains to China, it will be "tough" to secure China's membership to the WTO, a goal both countries share. 

ADM Closes Arkansas Plant. Archer Daniels Midland Co., the country's major oilseed crusher, said on Monday its soybean crushing plant in Little Rock, AR, will be shut down indefinitely, REUTERS reports. "It started with a mechanical failure. Then we looked at margins and the decision was made to keep it down indefinitely," said Larry Cunningham, ADM spokesman. The plant has been down since Thursday, Cunningham said. He declined to comment on the plant's crushing capacity. In recent months, U.S. soybean crushers have reported lower cash crushing margins, largely in reaction to low soybean product prices. Soymeal prices have dropped about $30 per ton since Jan. 1. Soybean oil prices at the Chicago Board of Trade have recently traded near 10-year lows, the news agency added. 
 

March 12, 2001

Apple, Wool, Grazing Payments Begin.  USDA has announced signup for the apple market loss assistance and wool and mohair loss assistance programs and details on how to receive grazing payments in lieu of loan deficiency payments for the 2001 crop year. 

Corn Crop Integrity Protected by USDA, Says NCGA. National Corn Growers Association official Fred Yoder says USDA's announcement that the department will buy seed corn containing the Cry9C or StarLink protein "is another important step in a coordinated effort between industry and government to remove Cry9C and to assure the integrity of the 2001 corn crop." 

Cherry Referendum Scheduled.  USDA has issued a referendum order on proposed amendments to the federal marketing agreement and order for sweet cherries grown in designated counties in Washington State. USDA will conduct the referendum April 10-27 to determine support for the amendments. Ballot material will be mailed to all known sweet cherry growers in the order's production area, including the additional counties proposed for inclusion. 

News Summaries

Slim Profits for Poultry Industry. There's an oversupply of chicken on the market, and the industry is facing potentially expensive new regulatory demands and increasing competition in global trade, THE ASSOCIATED PRESS reports. Jim Perdue, chairman and chief executive of Salisbury, MD-based Perdue Farms, Inc., says profit margins can be as slim as a quarter cent per pound. "Like other U.S. chicken companies, Perdue Farms is trying to lock up those slim profits and protect them from fickle commodity prices by unveiling new products, such as precooked chicken strips," the AP reports. "The last couple years have been difficult. They've been a struggle for all the companies," said William Roenigk, economist and vice president of the National Chicken Council, a trade group. "We're just putting too much meat on the American table. The way you sell too much meat is to lower the price so people can buy more, which is what they've done." 

Relief Groups Question Free Lunches Worldwide. Private relief groups question the value of U.S. taxpayers buying free lunches for schoolchildren around the world, just as lawmakers consider making the food aid program permanent, at an annual cost of up to $750 million, reports THE ASSOCIATED PRESS. Organizations that administer the assistance say the program must do more than distribute food, otherwise it will foster dependency and result in waste. The concern has delayed distribution of $300 million in surplus soy, wheat, milk and other commodities authorized under a pilot program developed by the Clinton administration. USDA has declined to give the relief groups money to help cover distribution costs or to pay for other needs of the schools, many of which lack classrooms or even a full-time teacher, much less cooking equipment, the groups say. 

NPPC Begins Separation.  REUTERS reports that the National Pork Producers Council and the National Pork Board have begun the separation process required by a deal with USDA. The NPPC sets policy for 85,000 hog producer members, and the National Pork Board, which collects checkoff money from those producers. Both have worked side-by-side and shared staff for many years in the Des Moines headquarters, the article notes. Their separation was part of a settlement reached with the USDA late in February after the NPPC went to court in January to prevent the USDA from suspending the checkoff. Then-Agriculture Secretary Dan Glickman had ordered the checkoff terminated after pork producers narrowly voted against it. There was confusion among pork producers as to how the dues money was being spent. Some opponents said the checkoff favors large producers. 

U.S., China Try to Break Impasse.  REUTERS reports that the United States and China are trying to resolve an impasse over agricultural trade standards to which China would be held when it becomes a member of the World Trade Organization (WTO). A disagreement over whether China should enter the WTO under the stricter trade requirements of a developed country, as the United States wants, or the looser rules of a developing nation, have delayed China's entry into the organization. Agriculture Secretary Ann Veneman told reporters that during meetings this week between U.S. and Chinese trade officials that the two sides began "looking at various scenarios" for resolving the dispute over agriculture rules. Veneman said a solution "may be somewhere in between" designating China a developing or developed country. But she did not elaborate. 
 

March 9, 2001

Written Assurance on Cry9C Sought. Four major trade associations representing grain exporters, corn millers and corn processors Thursday issued a joint statement recommending that buyers of raw corn "urge every corn grower to obtain written certification from their seed suppliers" that hybrid corn seed being purchased has been tested and found to be negative for the presence of the Cry9C protein found in StarLink* corn. 

Enzi Wants Labeling on Foreign Meat. Sen. Mike Enzi (R-WY) wants foreign meat products labeled to protect consumers as well as support the domestic livestock industry. Enzi is an original cosponsor of legislation that would adopt country-of-origin labeling requirements for meat products. 

Cooking Method New Retailing Ploy. Retailers who have reorganized their fresh meat case by cooking method have seen continuous sales gains and greater customer satisfaction, according to research by the National Cattlemen's Beef Association (NCBA). With two years of beef sales to analyze, the NCBA tracked the performance of eight separate retail accounts where the industry's meat case simplification program, Beef Made Easy™ or a similar concept, had been implemented. 

Barley Growers Present Policy Views. The nation's barley growers focused testimony Thursday on marketing loans, AMTA payments and a counter-cyclical income safety net program at a House Agriculture Committee hearing. Dan Wiltse, president of the National Barley Growers Association, presented testimony on behalf of the barley industry. 

News Summaries

China's Now Due in November.   World Trade Organization chief Mike Moore now thinks China probably will become a WTO member in Nocember when ministers meet, according to a REUTERS report. "I am convinced that China will be a member at the conference in Qatar," Moore said in an interview with Germany's Sueddeutsche Zeitung newspaper, adding that the WTO's members would have to approve China's entry. Moore also said entry negotiations with Russia would take less than the 10 years it was first thought might be required. He said the chances of an agreement to start a new trade round this year had improved. "We have enough time until the end of July to agree the pre-requisites for a new round of liberalisation which can then be started at the next WTO ministerial meeting in Qatar in November," Moore said. But he warned that if the WTO's 140 members stuck to their previous positions, the meeting in Qatar would have the same result as the now infamous Seattle ministerial meeting in 1999, which collapsed amid violent anti-globalisation street protests. 

Corn Sales to Japan Go Elsewhere.  REUTERS reports that Argentina, China and possibly even Brazil could pick up new corn sales to Japan in coming months in the wake of heightened Japanese concerns over StarLink corn from the United States. "The logical place (for Japan to increase purchases from) is China," said the USDA official, who asked not to be identified. But noting Japan's rigorous quality standards, which China sometimes has trouble meeting, the official speculated that Argentina also could see its shipments to Japan rise in coming months. Argentina, a producer of high-quality corn, has enjoyed strong crops last year and this year and is a major supplier to South American markets. The news agency also nots that while concern over StarLink is one reason Japan likely will reduce U.S. corn purchases, the USDA official emphasized that other market forces, namely strong supplies and price competitiveness elsewhere, could displace U.S. sales. 

Hog Cash Market Waning.  With more than 80% of hogs now through sales contracts with meat packers and more such sales on the way, open bidding in daily spot cash markets soon may be a thing of the past, according to Glenn Grimes, author of a recently completed hog marketing survey, REUTERS reports. "If the trend continues, the spot market will be gone in two years," said Grimes, who released the survey's results on Thursday at the National Pork Producer Council's National Pork Forum in Kissimee, FL. Pressure from agriculture lenders and the desire for greater price stability appear to have caused hog producers to use sales contracts, said Grimes. "The lending institutions are more and more requiring the producer to have some kind of contract so that they know a little bit about what hog prices might be for them," said Grimes. 
 

March 7, 2001

ADA Urges Nutrition in Curriculum. The American Dietetic Association believes nutrition education should be part of the school curriculum "at all ages" and linked to community and school health promotion efforts. "Nutrition education is critical to the development of lifelong, healthful eating habits in school-aged children and adolescents," the group said as part of a Senate Agriculture Committee hearing Tuesday on nutrition.

Coalition Urges EU Trade Barrier Changes. With a key European trade official arriving in the United States this week for talks with Bush Administration trade officials, a broad coalition of American agricultural interests has called on the European Union (EU) to take a fresh approach to U.S.-EU trade relations by ending its protectionist policies regarding beef and banana imports and conforming those trade regimes to World Trade Organization (WTO) rules. Pascal Lamy, EU Trade Commissioner, arrives in the U.S. today to meet with U.S. Trade Representative Robert Zoellick and others in the administration. 

GAO Report Focuses on Protein Imports. A new report by the General Accounting Office (GAO), the investigative arm of Congress, illustrates the harm that imported milk protein concentrate (MPC) is causing U.S. dairy farmers, according to the National Milk Producers Federation. The report, requested last year by several members of Congress, was intended to answer questions about the volume and applications of MPC in the United States and how the U.S. dairy sector is affected by the products. 

Bush Asked to Allow Hemp Production.  The Resource Conservation Alliance (RCA) has asked the Bush administration to reconsider a decision, made in the final weeks of the Clinton presidency, that maintains the federal government's ban on the cultivation of the crop industrial hemp. The decision was in response to a petition filed by a coalition of farm, manufacturing, and environmental groups. 

News Summaries

China Bankruptcies to Increase.  REUTERS reports that China expects bankruptcies to increase once the country becomes a member of the World Trade Organization and more foreign competition squeezes weak companies out of the market, top state planner Zeng Peiyan said on Wednesday. "At the initial stage when China joins WTO, some enterprises will go bankrupt and laid-off workers will increase. This is within our expectations," Zeng told a news conference at the annual two-week session of parliament. Chinese companies should prepare for entry to the world trade group, expected later this year, which will open the door to China's tightly guarded markets, he said. Beijing has allowed few firms to go bankrupt, preferring to bail them out to prevent protests from jobless workers. China allowed 1,718 mergers and bankruptcies from 1998 to 2000, officials have said. They gave no breakdown. 

Corn Surplus Seen Expanding.  BLOOMBERG NEWS reports that surplus supplies of U.S. corn may reach nearly 2 billion bushels by the end of the summer, largely from Japan, this country's No. 1 importer, curtailing purchases because of concerns over gene-altered corn. Stockpiles of U.S. corn may reach 1.93 billion bushels by Aug. 31, the highest level since 1992, according to the average estimate of six analysts surveyed by the news agency. That would be 2.1% more than the 1.89 billion bushels the government forecast last month and 12% more than a year earlier. Corn, valued at $18.6 billion last year, is the largest U.S. crop. U.S. corn exports are nearly 9% behind last year's pace, primarily because Japan has cut its purchases, government figures show. USDA is scheduled to release its estimates of grain stockpiles Thursday at 8:30 a.m. Washington time. 

Thin Cattle, High Prices.  THE ASSOCIATED PRESS reports that a harsh, cold winter on the Plains has left cattle thinner than usual and sent retail beef prices soaring to record levels. Consumers can look for relief this summer, but tight supplies and strong demand are expected to send prices back up later this year, analysts say. Producers are only starting to rebuild herds that they reduced because of drought and relatively low cattle prices in the 1990s. "We've definitely seen the beef prices go up big time," said Rickey Figueroa, executive chef of Atlanta's Chops Steakhouse. The price the upscale restaurant is paying for beef tenderloin has gone from $15 to $20 a pound in recent weeks. So far, the restaurant isn't changing its menu prices, in hopes of negotiating better deals with another supplier, Figueroa said. The average retail price for USDA-choice beef reached a record $3.21 a pound in January, breaking the previous record of $3.13 set last September. In the late 1990s, beef prices were averaging about $2.80. This report says the winter has been so cold and damp that cattle are taking several months longer than usual to fatten up. In bad weather, cattle in feedlots don't eat as much and use up energy staying warm. Live cattle are selling for 82 cents a pound, up from 78 cents last month and about 68 cents in February 2000. 

March 6, 2001

Salmonella, E. Coli Reduction Developed.  A practical approach to reducing two key on-farm pathogens in pigs and cows has been developed by Agricultural Research Service researchers in College Station, TX. The scientists report that sodium chlorate, fed in low doses to pigs and cows before slaughter, selectively kills the pathogens Salmonella typhimurium and E. coli 0157:H7. 

Corps Needs More Locks Study. The U.S. Army Corps of Engineers should explore other options for managing barge traffic before it considers extending the length of several locks on the Upper Mississippi River-Illinois Waterway system, says a new report from the National Academies' National Research Council. Lock extensions could cost about $1 billion, would disrupt waterway traffic during years of construction, and may damage the surrounding environment. Instead, the report urges that other, nonstructural alternatives be considered carefully before moving forward. 

News Summaries

USDA Delays StarLink Report.  BLOOMBERG NEWS reports that USDA delayed release of an industry survey showing how much corn seed has been contaminated by traces of Aventis SA's genetically engineered StarLink corn. The American Seed Trade Association surveyed as many as 250 companies that sell corn seed for this year's planting and submitted data to the USDA on Friday. The Aventis strain, engineered to create a natural insecticide, may cause allergic reactions in people and is only approved for use as animal feed and for industrial uses. "We do not have an update available today," said Kevin Herglotz, chief spokesman to Agriculture Secretary Ann Veneman, in a recorded message. USDA officials "are still looking over the material," said Larry Quinn, a department spokesman. He said didn't know when the information would be released. Herglotz had indicated it would be released on Friday. 

Irish Find No F&MD but Guard's Up.  The Irish Republic has found no trace of foot-and-mouth disease but vowed not to drop its guard while Britain's disease crisis rages, REUTERS reports. Restrictions have been placed on 520 locations in the republic in wide-ranging precautionary measures. But the Agriculture Minister Joe Walsh insisted none of them was a cause for alarm. "We are still however awaiting some (results of) tests from the Pirbright laboratory in Surrey (England), which is the international reference point," said Walsh who is spearheading the republic's protection efforts. The numbers of cases in Britain rose to more than 70 on Monday. In the Irish republic, which is anxious to guard its lucrative agriculture-food sector, some 300 sheep were slaughtered Monday in the western county of Mayo as a precaution. They had arrived from Northern Ireland two weeks ago. 

Willie Questions Ann's Judgement.  Country singer Willie Nelson is raising "disturbing questions" about the Bush Administration's commitment to the democratic process. Nelson, president of Farm Aid, says Agriculture Secretary Ann Veneman ignored the votes of thousands of family pork producers and reversed a Clinton Administration ruling to eliminate the mandatory pork checkoff. Nelson denounced the decision and questioned USDA's commitment to family farmers. 

German Pig Tests Negative. A sick pig in Germany suspected of having contracted foot-and-mouth tested negative in a preliminary examination, a state agriculture official said on Tuesday, according to REUTERS. Final results from a tissue test are expected by the end of the week at the earliest, a spokesman from the farm ministry in the eastern state of Brandenburg told the news agency. "This first result is consistent with the findings so far at the affected farm," said Brandenburg agriculture minister Wolfgang Birthler. "Since the first inspection of the herd by local veterinary officials, no symptoms have been found in other animals." Officials closed off the farm in the state of Brandenburg on Monday after discovering a pig they suspected might have contracted the disease, which broke out in Britain two weeks ago, prompting farmers there to destroy tens of thousands of animals. 

Dutch Conduct Preventive Culling. Dutch officials have culled 730 more sheep, cattle and pigs as a preventive measure against foot-and-mouth disease, the Agriculture Ministry said on Tuesday, REUTERS reports. Two hundred sheep, 500 pigs and 30 cattle were destroyed over the weekend at three farms with animals imported from Britain, spokeswoman Simone Braun said. No symptoms of the disease were found in the animals, but tests were being conducted and results would be available late this week or early next week, she added. The locations of the Dutch farms were not disclosed. The latest action comes after 4,300 animals were killed in the Netherlands as European countries fight desperately to keep the highly contagious disease from spreading from Britain, where 74 cases have been confirmed. All tests on animals killed so far have been negative. 

France Escapes, So Far. France so far appears to have been spared the foot-and-mouth disease outbreak that hit Britain, but agriculture officials were taking no chances against the highly contagious virus. The food safety agency's (AFSSA) laboratories are working around the clock to test blood samples from suspect animals and confirmed that France had not yet had a case of the disease. "At this moment, there are no cases of foot-and-mouth disease in France," AFSSA director of animal health Marc Savey told French television on Tuesday. "Having said that, we must remain extremely cautious. The situation could change hour by hour." Authorities in the southern Gard department, where five sheep were destroyed after one showed a possible symptom of the disease, said they expected AFSSA will give results of blood tests on the animals later on Tuesday. A spokesman for the department said the destroyed animals were not of British origin. He said the farm where they lived had been placed under surveillance. 
 

March 5, 2001

Japan's Trade Policies in for Criticism. Japan proposes to include a reduction in its minimum import quota for rice and other new "safeguards" in its proposals on World Trade Organization negotiations for agriculture. The proposals have met with strong opposition from other agricultural product exporting nations, but Japanese officials have no intention of backing down for domestic political reasons.