Showing posts with label global. Show all posts
Showing posts with label global. Show all posts

Wednesday, 9 January 2013

A & C United Agriculture Issues Corporate Update

SOURCE: A & C United Agriculture Developing Inc


NEW YORK, NY--(Marketwire - Jan 9, 2013) - A & C United Agriculture Developing Inc (OTCQB: ACUG), an international provider of agricultural products, wishes to inform its investors of its milestones achieved for the past year.

Andy Liu, President, commented, "As a newly trading company in the market place, we understand corporate communications are important and wish to inform our investors of the following developments:
Strong seeds sales (US exporting). For year ending December 31, A&C is on track to record approximately $500K in sales.
Kick Start of Henan Project -- Official opening ceremony was held on 11/16/2012.
The Board of Directors has completed intensive market research and strategic production partner meetings within the major cities of Beijing, Shanghai, and Shenzhen.
Have adjusted the corporate subsidiary structure in order to comply with local regulations outside United States specifically China.
Have had advanced discussions with companies located in China and ASEAN (Association of Southeast Asian Nations), in order to integrate more business entities and generate significantly more revenue on seeds and vegetables selling.
Business forecast: Anticipated $3,000,000 sales (seeds and vegetables) in year 2013.
Successful listing on the Over the Counter market."

About A&C
A&C United Agriculture Developing Incorporation and its subsidiaries are engaged in standardized vegetable seeds selecting, planting, growing, harvesting, cool chain transportation, and processing. The company has established seed export business with U.S suppliers and plans to expand the sales. The Company plans on selling vegetables to retail and wholesale consumers in China, ASEAN and other global markets, by applying American standard quality control practices with scalability and mechanization. The Company's focus is to build and enhance the entire vegetable production chain complying with local and global food safety requirements from seed to table, year round, with two-way traceability and recall capability. The Company is focused on providing fresh quality products that are easy to use, appetizing and nutritious without compromising quality or harming the environment and ecosystems. 

Legal Disclaimer 
The statements contained in this press release contain certain forward looking statements, including statements regarding the company's expectations, intentions, strategies and beliefs regarding the future. All statements contained herein are based upon information available to the company's management as of the date hereof, and actual results may vary based upon future events, both within and without the control of the company's management.
Original Article Here

Tuesday, 8 January 2013

Agriculture Giant Monsanto Posts Monster Earnings And The Stock Is Surging

Monsanto (MON) shares are surging in pre-market trading this morning after the company reported earnings and revenues that exceeded analysts' estimates and boosted its forecasts for 2013.


Right now, the stock is trading up 3.9 percent.

The global agriculture giant reported earnings of $0.62 per share versus estimates of $0.36 per share, and revenues of $2.94 billion versus the $2.64 billion estimated. For 2013 full-year earnings, the company now estimates it will make $4.30 to $4.40 per share, up from its previous estimate of $4.18 to $4.32.

Monsanto's big boost in the fourth quarter came from a 27 percent rise year-over-year in corn seed sales and was also aided by gains in its agricultural productivity business.

Below are more details on how these segments did in Q4 from the press release:

The Seeds and Genomics segment consists of the company's global seeds and related traits business.

Sales for Monsanto's Seeds and Genomics segment increased 14 percent in the first quarter to $1.8 billion, with corn seed and traits performance driving the first quarter strength.

Corn seed and traits net sales increased 27 percent over last year's first quarter to $1.1 billion, driven in part by the business strength in Brazil, Argentina and Mexico. The trait upgrade and expansion is on track in both Brazil and Argentina where the company is achieving strong demand for its corn products. In Brazil, farmers continue to upgrade from single trait corn products to the first double stack, VT PRO™ 2. In its second year of commercial sales, VT PRO™ 2 is the second-highest volume trait in the company's Brazil corn portfolio this year. Likewise, in Argentina, the company has also seen strong adoption of its Genuity® VT Triple PRO® product. The triple-stack corn product is on track to be 40 percent of the company's Argentine corn portfolio in just its second year on the market.

Complementing the corn performance in Latin America is the early momentum in the U.S. seeds and traits business. Backed by strong cash flow and customer prepayments, the company noted a positive U.S. order book, with the order pace ahead of the same point in time last year. With two years of strong performance, company executives said the U.S. business is in position to grow again in 2013. This includes another increase in acres for both its Genuity® Roundup Ready 2 Yield® platform in soybeans and the Genuity® reduced refuge family in corn.

The Agricultural Productivity segment consists of the crop protection products and lawn-and-garden herbicide products. 

Net sales in the first quarter of fiscal 2013 for Monsanto's Agricultural Productivity segment increased $279 million, reflecting the benefit of a favorable marketplace environment lifting the business in the near-term. The company indicated it remains focused on its established strategy for Roundup® following the reset of that business in 2010.

Monsanto also released its annual R&D outlook in a colorful presentation.

Original Article Here

Saturday, 8 December 2012

Global consumption outpacing population growth

Meat: It's something that people around the world take for granted--but maybe not for much longer.

Demand for meat is increasing worldwide. One reason is the burgeoning global population, which is forecast to reach 9.3 billion in 2050.

But that is not the only factor.

As per capita income increases in line with economic development, lifestyles and eating habits also change.

There are more people living in cities, and the spread of the food service industry, including fast food chains, has led to more regular consumption of meat.

Looking back on the period from 1961 to today, the world's population has more than doubled from around 3 billion to 7 billion, while the volume of meat consumed annually has quadrupled from 70 million tons to just under 300 million tons. The U.N. Food and Agriculture Organization asserts that the production of food, including meat, must be increased by 60 percent by 2050 in order to meet the dietary needs of the planet's human population.

At present, the world's consumption of meat is divided among pork, poultry and beef at a ratio of 4-3-2, and demand is growing at the most rapid rate for poultry. It offers the greatest efficiency in terms of weight gain of livestock with regards to the amount of feed given, and the shortest breeding time.

Raising livestock requires vast amounts of grains for food. For example, it is said to take 11 kilograms of grain feed to produce 1 kilogram of beef, compared to 7 kilograms for pork and 4 kilograms for poultry. In the future, the degree to which meat production can be increased will be directly linked to the degree to which the production of corn and other basic ingredients used to make livestock feed can be increased.



REGIONAL EATING HABITS



What kinds of meat are the most popular in different countries around the world? By creating a "meat map" based on FAO data on 170 countries, we can gain a glimpse of eating habits in various nations.

According to statistics from 2009, global meat consumption can be ranked in the following order: pork, poultry, beef and mutton.

Pork consumption is particularly prominent in Europe. Pigs are valued so much that it is said, "the only thing worth throwing away is their oinking." Ham and pork-based sausages are thought to have originated in Europe. Five European countries have the greatest annual per capita consumption of pork in the world: Austria tops the list at 65.6 kilograms, followed by Germany, Lithuania, Poland and Spain.

After Europe, the next greatest eaters of pork are found in Asia. Pigs have long been highly regarded in Eastern Asia, where their dung is used as an agricultural fertilizer. There are also countries with Islamic populations, such as Malaysia and Indonesia, where poultry occupies a more central position than pork in the national diet.

Islam views pigs as impure beasts and the consumption of pork is zero in Northern African nations and the Middle East, with the exception of Israel and Lebanon. In contrast, poultry is popular. This is also the case in Central and South America, apart from beef-producing powerhouses such as Brazil and Argentina. The United States, however, is rather surprising. Despite its image as a beef-loving country, the quantity of poultry Americans consumes is actually greater.

According to figures from the U.S. Department of Agriculture, with regard to poultry, the volume of chicken consumed globally rose 37 percent in the 10 years from 2002. In the same period, pork consumption only increased by 15 percent and beef by 3 percent, making the growing popularity of chicken all the more remarkable.

So then, in which countries is beef the most favored?

Some obvious examples are former Soviet nations with vast pastures, such as Turkmenistan and Uzbekistan. Argentina boasts the world's largest per capita consumption of beef at 54 kilograms. It is not uncommon for an adult Argentine male to tuck away 500 grams of meat in a single sitting.

Even so, global consumption of beef peaked in 2007, and has continued to trend downward in recent years. This is particularly pronounced in developed nations such as the United States, France and Australia. In Russia, the most popular meat shifted from beef to poultry over a 10-year period through to 2009. The same applies to China, where beef consumption peaked in 2008, and has continued to decline in the past few years.

"Worsening economic conditions have fostered a frugal mind-set, and consumers are beginning to turn to cheap meats," says Nourinchukin Research Institute chief researcher Akihiko Hirasawa. "Coupled with greater health consciousness, there is a progressive shift toward poultry because of its low fat content."

Nevertheless, the FAO sees this as a temporary decline. Beef consumption is expanding primarily in developing countries at a greater pace than it is declining in developed nations, and the FAO predicts that it will rise to around 73 million tons in the year 2020, a 15 percent increase compared to the 2009 figure.

Mutton is most popular in countries where nomadic tribes live, such as Mongolia, Tajikisan and Syria. In Mongolia, famous for its barbecue, mutton consumption per capita is 49 kilograms, which puts it far ahead of the rest of the world.

JAPAN'S MOST POPULAR MEATS

Chinese-style steamed buns filled with minced pork are called "nikuman" (meat buns) in the greater Tokyo area, and "butaman" (pork buns) in the western Kansai region. This is because the word "meat" was traditionally associated with beef in the western Kansai area.

Looking at a regional breakdown of the volume of beef purchased per household according to a 2011 survey by the Ministry of Internal Affairs and Communications of family income and expenditures, the Kinki region came on top with 9.7 kilograms, followed by the Chugoku, Kyushu, Shikoku, and Okinawa regions. In the Kanto region, the figure was only 5.8 kilograms.

This difference in consumption is said to be related to agricultural culture.

It was only during the Meiji Period (1868-1912) when Western culture entered Japan that cattle traditionally used for plowing and conveyance were slaughtered for meat.

"Eastern Japan had large tracts of cultivated land, and fast horses were regarded as ideal for farming," says Akira Miyazaki, president of Kyoto College of Arts and Crafts and a beef culture expert. "In western Japan where arable land was in shorter supply, the most common livestock was cattle. Perhaps the custom of consuming them when the animals get older still has an influence today."

Pork is more popular in eastern Japan than in western Japan. Records show that numerous pig farms already existed in the greater Tokyo area in the Meiji Period. The amount of pork purchased per household west of the Tokai region is around 14 to 18 kilograms, whereas it exceeds 20 kilograms in the Hokuriku, Kanto, Tohoku and Hokkaido regions.

Even national totals suggest that the most familiar meat on Japanese dinner tables is pork. It comprises around 50 percent of all meat purchased in Japan annually, followed by poultry at 30 percent, while beef accounts for 20 percent.

Pork consumption already exceeds that of beef in western Japan.

Looking at data from Japan's prefectural capitals, apart from Kumamoto, Oita, Miyazaki, Yamaguchi, and Tokushima where poultry is king, pork is the most consumed meat in the remaining 42 prefectures.

However, for a time after World War II, beef was the most common meat in Japan. With the invention of the tractor and improvements in chemical fertilizers, cattle that were once used to cultivate land were sold for human consumption and beef became cheaper than pork and poultry. After this trend ran its course, the price of beef began to rise, and in 1965 purchases of pork exceeded those of beef. Two years later, it switched places with poultry and became the third most purchased meat.

Even so, when looking at consumer spending on meat on a value basis, there are many prefectures in western Japan where beef occupies the top position, which represents a distinct difference with eastern Japan where expenditure on pork is greater.

The only exception in eastern Japan is Yamagata Prefecture. The northern Japanese folk dish of "imoni" (thick potato and meat soup) is flavored with miso and contains pork in prefectures such as Miyagi and Fukushima, but the version found in Yamagata mostly uses beef and soy sauce, similar to sukiyaki.

(This article was written by Mizuho Kajiwara and Etsushi Tsuru)

Tuesday, 13 November 2012

Program to improve Africa's agriculture

By Jin Zhu (chinadaily.com.cn)

A four-year program jointly launched by the UK and China will start this year to help African countries to improve their agricultural production capacity in a major effort to eliminate hunger.

With a UK investment of 10 million ($15.9 million) and the Chinese contribution of expertise, the program will facilitate the transfer of agricultural technology to low-income countries in Africa and Asia. Pilot projects will be first established in Malawi and Uganda.

Thanks to the input of advanced technology and supportive policies, China's grain output realized a ninth consecutive year of growth since 2004, Niu Dun, vice-minister of agriculture said at the second Africa-Britain-China Conference on Agriculture and Fisheries in Beijing on Monday.

"In addition to realizing self-sufficiency in grain, China has helped other developing countries, especially in Africa, to improve agricultural productivity and food security in recent decades," he said.

Since the 1950s, China has dispatched nearly 10,000 agricultural technicians to Africa and built more than 240 agricultural projects in African countries, according to the Ministry of Agriculture.

"Further cooperation with African countries, such as in the freshwater fishery and deep processing of agricultural product industries, will be strengthened in future," Niu said.

African participants also called for more technology and knowledge transfers to help the countries in term of the sustainable development of agriculture.

For instance, annual fish production in Malawi now is estimated at 90,000 metric tonnes mainly from natural sources while annual aquaculture production is only 3,600 tonnes, according to the Ministry of Agriculture and Food Security of Malawi.

"Great challenges, including the lack of appropriate improved technology in aquaculture and poor fish feed formulations, may hinder the country from increasing fish production from aquaculture," said Bright Kumwembe, director of finance and administration with the Ministry of Agriculture and Food Security in Malawi.

"Food security is a global challenge, requiring innovation and efforts across the international community. The UK will certainly play its part in this global effort," the British Ambassador to China Sebastian Wood said at the conference.

The program will provide a platform to extend technology tailored to the needs and conditions of African countries and support joint research to find solutions to food security issues, he said.

"China has a lot of advanced technology in the agricultural sector, which may offer much support to African countries. But how to choose those appropriate technologies and seed varieties, which are adaptable to the actual situation in Africa, are the key to success," said Zhang Feng, a researcher from CABI, a research group in Britain that focuses on agriculture and the environment.

Sunday, 30 September 2012

Saudi Agriculture 2012 attracts 24,000 visitors and more than 400 exhibitors from 23 countries


Saudi Agriculture 2012 and Saudi Agro-Food 2012, the biggest business-to-business agriculture and agro-food events in the Middle East held recently at the Riyadh International Convention and Exhibition Centre, have jointly attracted over 24,000 visitors from all over the world and generated SAR billions worth of projects and business deals in Saudi Arabia.
Held under the patronage of H.E. Dr. Fahd Abdulrahman Balghunaim, Saudi Minister of Agriculture, the concurrent exhibitions also included the Saudi Food-Pack 2012, the International Exhibition for Food Processing and Packaging.

The trade exhibitions also collectively gathered over 400 local and international exhibitors from 23 countries that showcased their latest products, technologies and innovations. Riyadh Exhibitions Company, organizer of the concurrent exhibitions, disclosed that the success of the event reaffirmed the strategic importance of such trade exhibitions in facilitating trade activities in the agriculture and agro-food sectors of Saudi Arabia. 

Saudi Agriculture 2012 covered all aspects of agriculture and food industries from cultivation, to management, production, packaging and distribution, in addition to a dedicated section for organic farming. In its 31st year as one of the fastest growing industry events in the region, Saudi Agriculture was held concurrently with Saudi Agro-Food and Saudi Food-Pack to feature the latest products, technologies and services in areas ranging from frozen and chilled foods, confectionery, chocolates, health and natural foods, to presentation, processing and packaging equipment.

Accredited by UFI, the Global Association of the Exhibition Industry, the show has a wide scope and includes animal health and production, agricultural financing, agricultural products and services, chemicals and fertilizers, cold storage, dairy farming products and equipment, fish farming, greenhouses, handling and transport systems, irrigation and landscaping equipment, organic farming, packaging systems and products, pesticides, pumps and pipe systems, seeds and soil nutrition products, spraying machinery, water treatment, water management systems, and warehousing, among others.
Original Article Here

Friday, 21 September 2012

Agriculture: Food produce speculation remains niche area

By Lucy Warwick-Ching
Crop speculation by traders is back in the spotlight after food prices rose by an average of 6 per cent globally in July and critics argue speculation heaps further pressure on the world’s poorest people.

A number of European banks have bowed to pressure and have withdrawn products that enable investors to speculate on food prices after campaigners said these investment vehicles play a significant role in pushing up prices globally.
The recent rises in agricultural commodity prices have raised concerns about supply shocks, as well as the effect on food inflation around the world over the next 12 months.

“The worst drought since 1956 in the US has sent corn yields plunging and price soaring which has forced farmers across the US to make the choice between feeding their livestock at elevated prices, and slaughtering them, as they become too expensive to keep,” says Michael Hewson, senior market strategist at CMC Markets.

“While this has sent beef prices lower, the rise in prices has also illustrated how sensitive the food chain is around the world to even the slightest supply shock.“

There are still ways for small traders to speculate on crop prices without buying the assets directly – via spread bets. Spread betting firms routinely offer prices on a range of the leading agricultural commodities, including wheat, corn, sugar, coffee, cocoa, oats and soya produce. You can either spread bet on the commodity itself, or, in some cases, on the exchange-traded product linked to it.

But it is still a niche area for investors. “Soft commodities have never been a major market for Capital Spreads’ clients,” says Simon Denham, head of the firm. “While clients do tend to like ‘volatile’ instruments, the information flow is so opaque, and the consequent price action so violent, that investors have been rather put off.”

Mr Denham adds that in the past investors have generally needed a reason to be involved – for example, if they are a producer, supplier or broker – and have tended to “need deep pockets and nerves of steel”.

Agricultural commodities tend to cost more to spread bet, than, say, equities, warn experts. To trade corn, the difference between bid and offer prices could be several times that on the FTSE 100. And the spread for something less mainstream, such as oat prices, would be even wider.

But experts say shot-term traders can benefit from the continuing price fluctuations.

“Agricultural commodity products are likely to have wild swings as they become politicised coming into the November US elections,” says Joe Rundle, head of trading at ETX Capital.

“The increased headlines will draw in a new breed of speculator who has not traditionally traded agricultural products – ETX has seen a 200 per cent increase in trading in December wheat prices. The speculators will add to the volatility in the short term as they chase the market.”

So, what has been driving prices? Part of the problem surrounding food price volatility, says Mr Hewson, and something that will continue to be so, has in part been the scarcity of available arable land. When set against rising food needs, this is likely to make future price shocks “a fact of life,” he warns.

He argues that this will be compounded by the rise of a growing middle class in emerging market economies. “The growth in countries such as Brazil, India and China will probably see demand for these food staples rise in the coming years and governments will have to make hard decisions about how they meet the needs of their populations in a world that appears to be growing rapidly, while susceptible to ever-growing extreme weather conditions,” he notes.

Predictions vary widely among experts as to which way food prices will go. For those traders still keen to take a punt the question is, which way to bet.

Matt Weller, technical analyst at GFT Markets, says that with a growing global middle class and continuing demand from agricultural crops being used as biofuels, “the long-term trajectory for soft commodities appears set to remain upward”.

But he says much of these rises are linked to institutional speculators putting pressure on prices to rise. “As such, although it may to too early to call a top to this rally, it would seem foolish to imagine that the gains can be guaranteed from this point in,” he adds.

“In fact, long-term seasonality patterns suggest that many soft commodities tend to drop over the September and October period as the supply glut around harvest time hits the market.”

However, Mr Denham argues that the temporary run up in prices dues to the possible failure of this year’s US harvests will probably not have a long-term impact on prices because, in the end, the segments with the power in the food price chain “are the processors and supermarkets, not the farmers”.
Original Article Here

Thursday, 20 September 2012

J&K government to provide modern storage facilities for farmers

SRINAGAR: The Jammu and Kashmir government will provide modern storage facilities for farmers at the village level for round the year market linkages to strengthen farm economy and motivate the young to join the agri-sector.

Minister for Agriculture Ghulam Hassan Mir made the announcement while inaugurating a day long Kissan Mela cum Exhibition in Budgam district yesterday.

Mir said such storage facilities would help farmers strengthen their economic conditions and motivate the youth to opt for agriculture as a profit-making activity.

"Providing market opportunities to farmers would help them to strengthen their economy and also motivate the youth to opt for agriculture as profiting activity," he said.

"The youth are coming forward to adopt the agriculture as profiting activity and I assure that the agriculture department shall provide every assistance to them for their encouragement," he added.

Mir asked the farmers to use latest techniques to enhance the quality of produce so as to meet national and global standards.

"If the farmers of J&K want to compete at national level, they have to introduce mechanisation and latest agri- techniques besides using latest agriculture inputs so as to enhance the quality production of national and global standard," Mir said.

The minister said the thrust area is to introduce mechanisation in agriculture and horticulture across the state and various schemes have been launched by the department to provide 25-50 per cent subsidy to farmers for purchasing agriculture machinery items from registered companies.

He said that during the current year, the department has a target to provide 77 Power tillers, 40 tractors, 142 Vermi compost units, 4 bore wells, 2 number of water Harvesting system, 159 poly green houses and other inputs to the farmers of Budgam district.

Minister for Animal and Sheep Husbandry, Syed Rohulla Mehdi, Vice Chairman, Kissan Welfare Board, Rachpal Singh and Director Agriculture Kashmir, Farooq Ahmad Loan also spoke on the occasion.

Rohulla said the Government has launched 6-7 schemes for establishment of sheep, poultry and dairy units on which subsidy is being provided to entrepreneurs to start self employment units.

The department is trying hard to motivate more and more young people to establish their units as this sector has huge scope in providing job opportunities, Rohulla said.
Original Article Here

Friday, 14 September 2012

China's 2013 corn imports seen sinking on high global prices

China's corn imports in 2013 may plunge more than 80 percent from this year's estimated purchases, a government think-tank said on Thursday, as soaring global prices and prospects of higher domestic production deter imports. China, the world's second largest consumer, has been influencing global corn prices over the past two years as it emerged from self-sufficiency to become the world's sixth largest importer in 2011/12. 


While US corn prices have climbed to record highs as the worst drought in half a century grips large tracts of farmland in the top exporter of grains, China is on track to produce an all-time high crop of around 197-200 million tonnes this year. China is expected to import 1 million tonnes of corn in 2013, China National Grain and Oils Information Center (CNGOIC) said in a report, which would be the lowest imports of the grain made by the country since 2009. In 2012, China is estimated to buy 5.5 million tonnes. 


"Rising US corn prices have caused some contract cancellations," the center said, adding that most of this year's imports, though much higher than a year ago, were supported by the government's purchases. CNGOIC's estimate of China's 2013 imports is not far from the 2 million tonnes estimated by the US Department of Agriculture in its monthly global demand and supply report on Wednesday. The global trade of corn is around 90 million tonnes. 


"With the rally we have had in global prices since June, it is no longer attractive to ship corn to China," said Victor Thianpiriya, agricultural commodity strategist at ANZ in Singapore. "Looks like they are going to have a reasonable crop, so they are going to have a buffer." Chicago corn prices have surged about 45 percent over the last three months in a drought-fed rally. 


Feed millers in China have been substituting expensive corn with feed wheat in order to keep a lid on rising costs of fattening animals. Corn is a key ingredient in making animal feed in China - the world's top consumer and producer of pork. China's food price cycle is driven in a large part by pork, the country's staple meat. Any increase in food prices is expected to push up inflation, one of China's biggest economic concerns given the potential for rising prices to trigger social unrest. Corn output in China is estimated to rise 2.19 percent in 2012 to 197 million tonnes, CNGOIC said this month, from a year ago. The USDA estimates China's corn output at a record 200 million tonnes. 


Wednesday, 12 September 2012

Record Argentine corn and soya output to boost global supplies

Argentina looks poised to produce record corn and soya crops in the upcoming 2012/13 season, helping offset the impact of a devastating US drought and ease global food price concerns. Private analysts say heavy rains last month and high international prices are spurring farmers to plant corn and soyabeans in Argentina, one of the world's biggest grains exporters. 

Meteorologists expect the wet weather to continue throughout this crop year thanks to the El Nino phenomenon, producing a soya harvest of up to 56 million tonnes and corn output of as much as 31 million tonnes. That would mark a 40 percent increase for soya and a 50 percent jump for corn compared with last season, when plants were battered by a drought that left many farmers in tight financial straights. 

Corn area was initially seen falling sharply this season due to such difficulties but the outlook has since improved. The Buenos Aires Grains Exchange raised its corn area forecast last week, although it still sees a 12 percent decline in acreage from the 2011/12 campaign. 

"It rained very well during all of August and moisture was replenished in nearly the entire grains-growing region. Prices continued to improve and the necessary financing materialised," said Esteban Copati, an analyst at the Buenos Aires exchange. Farmers began seeding corn in late August and they will harvest the grain starting in February or March. Soyabean planting will begin in the coming weeks, with the bulk of soya gathered in April and May. Argentina produced a record soya harvest of 52.7 million tonnes in the 2009/10 crop year and its biggest corn haul ever in 2010/11, when production reached 23.8 million tonnes, Agriculture Ministry data shows. Analysts see production topping those levels this season, helping compensate for the worst US drought in half a century, which has pushed corn and soyabean futures to record highs in the last month at the Chicago Board of Trade. 

Monday, 27 August 2012

Access to water key for food security: FAO chief


Global food security starts with ensuring access to water, the head of the Food and Agriculture Organisation (FAO) said at the beginning of World Water Week Monday.
"There is no food security without water security," said FAO director-general Jose Graziano Da Silva in Sweden, which is hosting the annual event organised by the Stockholm International Water Institute (SIWI).
With crop growing hampered by the effects of pollution and climate change, agriculture must become "more efficient and fairer", he said, adding that nations all over the world need to "produce more with less" and manage water resources well.
The conference, whose theme is water and food security, also heard from Swedish Cooperation Minister Gunilla Carlsson who urged the business world to find fresh ideas and new partners to help improve food security.
"The need for innovation and collaboration with corporations and small businesses are significant," she said.
"Increasingly, business is looking for innovative models building on local ideas and demand, rather than adapting products and distribution processes that were conceived for US or European markets."
Da Silva also called on the private sector to develop agriculture in a responsible manner in emerging countries.
Original Article Here

Analysis: Brazil's economy to get welcome boost from farm sector


By Reese Ewing

After a tough first quarter, Brazilian farmers are injecting life back into a stagnant economy at a time when manufacturers and consumers are retrenching.
Agriculture has long been known as the green anchor of Brazil's economy, now the world's sixth-largest. One of the world's breadbaskets, Brazil is a major producer of soybeans, corn, sugar, coffee, oranges and beef, and has invested heavily in the past decade to keep up with surging global demand.
But the agricultural sector kicked off 2012 on the wrong foot, adding to the woes of an economy that has been struggling for the past year. Agricultural output contracted 8.5 percent in the first quarter, hit by a drought in the grains belt, a poor sugar cane crop and tight credit markets.
The slump in Brazil's farm belt, however, was short-lived. The agricultural sector, which accounts for nearly 30 percent of Brazil's gross domestic product, is expected to be a bright spot when GDP data for the second quarter is released on Friday.
And the trend is expected to continue well into next year, as Brazilian farmers reap the benefits of record prices for soybeans, corn and beef, helping to fill a void in global supply after a crushing drought in the United States.
"The outlook for grains is super positive and soy is going to lead it," said Jose Hausknecht, a director at MB Agro, a local consulting firm that tracks the agricultural sector. "It will start to show up in the second quarter."
That's good news for multinational commodities traders like Bunge Ltd (BG.N), Cargill CARG.UL, Louis Dreyfus LOUDR.UL, ADM (ADM.N) and Noble Group (NOBG.SI), which all rely on business in Brazil for their revenue. The same holds for farm machinery makers John Deere (DE.N) and AGCO (AGCO.N).
To be sure, Brazil's economy faces many hurdles that may be too big for the farm sector to overcome alone. Big industry, including automotive and manufacturing, is a key part of the economy and is not expected to recover soon. And consumer confidence has started to fall as have federal tax revenues.
Even in commodities, some sectors are dragging. Big miners such as Vale (VALE5.SA) have been battered by weaker prices for iron ore, copper, nickel and aluminum. And poultry and pork producers are cutting production due to high feed prices.
SOYBEANS TO LEAD
Elsewhere in the farm sector, the prospects shine.
Despite last year's drought, Brazil still brought in a record crop of 166 million tonnes of grain that started peaking in March, which will support economic growth. This coincided with a weakening of the Brazilian real, which makes dollar-linked exports worth more in local currency terms.
"The second quarter numbers will surprise everyone," Agriculture Minister Jorge Mendes Ribeiro Filho said after meeting with President Dilma Rousseff last week.
In reais, soybean futures prices jumped 28 percent from March through June. Soy exports, Brazil's biggest farm export earner, are up 11 percent in the second quarter, despite a 12 percent drop in last year's harvest.
The trend for increased exports looks set to continue in the wake of the drought over the U.S. soy and corn crops.
China's commodity imports continue to defy expectations of a major slowdown. The latest tranche of trade data paints a strong picture, Barclay's Research said. China, Brazil's main trade partner, imported 318 percent more corn and 10 percent more soy in the past quarter.
"China's food imports going forward are likely to result in a soft commodities super cycle," said Bo Zhaung, a China-based economist for research analysts Trusted Sources, who recently visited Brazil.
Brazilian farmers also planted a record corn crop this year, harvesting 72 million tonnes, above the 66-million-tonne soy crop for the first time in a decade.
Corn exports are up 111 percent from last year from April through June, the trade ministry said. Corn futures prices in local currency terms were little changed in the quarter but are up 38 percent since June.
Going forward, the scenario looks exceptional for grains, as local soybean producers gear up for one of the most expressive leaps in planting in decades, in response to record prices caused by the U.S. drought.
Brazil's crushing industry association Abiove expects the soy industry to export a record 37.5 million tonnes of soy from the crop that will start planting in September, up from 30.5 million in exports from this crop. And revenues from exports are expected to rocket to $30 billion from $22.6 billion.
May-June rains improved the outlook for next year's sugar cane crush, which should near the record 560 million tonne center-south crop of 2010/11.
And local beef producers, who are less at the mercy of global grains prices because Brazil's 200-million-head herd is largely grass-fed, are looking at a "Christmas Year for beef" sales, said Luis Ricardo Luz, operations director at one of Brazil's big meat packers Minerva (BEEF3.SA).
INFRASTRUCTURE HURDLES
Record crops will mean stress on Brazil's dilapidated infrastructure, however. Ports, roads and railways have been the Achilles heel of the country on which the world is increasingly depending for its raw commodities.
Roberto Messenberg, an economist at Ipea, a government think tank, said strong food prices would fuel a revival in Brazilian agriculture but warned that structural change and infrastructure investments were still essential for sustainable growth.
"Recovery in agroindustry, due to climate shocks, is temporary and doesn't mean a medium-term investment trend," Messenberg said.
President Rousseff is trying to tackle Brazil's infrastructure deficiencies with a $66 billion investment plan that will grant concessions to private companies to overhaul and expand the country's roads and railways. A similar plan for airports and seaports is also in the pipeline.
But government officials acknowledge that the projects will take years to be completed.
(Editing by Todd Benson and Tim Dobbyn)
Original Article Here

Thursday, 9 August 2012

Global food prices up due to US drought: Food and Agriculture Organization


A UN agency says an increase in the cost of grain and sugar helped to drive up global food prices in July, as a widespread U.S. drought continues punishing corn crops.

The Food and Agriculture Organization's Food Price Index that measures the monthly change in the international prices of a basket of food commodities climbed 6 percent in July.

The index averaged 213 points, up 12 points from the previous month and still well below the peak of 238 points in February of last year.

The FAO is tasked with reducing world hunger at a time of near-record high food prices.

The agency says the severe drought-related deterioration of U.S. corn yield prospects pushed that grain's prices up by nearly 23 percent in July.
Original Article Here

Thursday, 26 July 2012

Agriculture is in the doldrums: Vairamuthu


G. SRINIVASAN
Vairamuthu who was in Thanjavur to participate in a function told The Hindu that globalisation and global warming are twin dangers facing the world now
Third world countries should be aware of developed countries trying to engulf them in the name of globalisation, said lyricist Vairamuthu here recently.
Vairamuthu who was here to participate in a function told The Hindu that globalisation and global warming are twin dangers facing the world now. Agriculture is in the doldrums and farmer suicides are increasing. “We have to find a solution to these problems,” he said.
He said that his recent book ‘Moondram Ulagapor’ dealt with the above issues and also urges people to find solutions.
He said that in the book he has suggested that cultivable lands should not be allowed to be sold. If a farmer has no other option than to sell his land, then the government should purchase it and carry on the cultivation on that land.
Farmers should get the right to fix the price for their produce.
He also said that agriculture is slowly going into the hands of corporate sector which is a dangerous trend. Expressing his opposition of giving freebies to all people, he said that freebies can be given to differently abled persons who are not in a position to work, destitute and others, but not for all.
The lyricist said that he has produced a video on global warming and agriculture. “It will be released to Doordarshan and later to all schools.” People should have concern over ozone layer being torn, sea level rising, climate change.
He also made a strong plea to protect bio-diversity and save western ghats.
On his songs in films, he said that though he wrote more about love, which is the major subject in movies, he was also given the opportunity to write on social themes . "But only thing is number of songs I have written on reforms, social change, philosophy is less compared to songs on romance as the film world has not provided much scope for me on social subjects.”
He said that one of his songs for Kochadaiyan starring Rajinikanth will be his best.
Original Article here

Tuesday, 24 July 2012

ETF Spotlight: Global Agriculture


ETF spotlight on the PowerShares Global Agriculture Portfolio (NYSEArca: PAGG), part of an ongoing series.
Assets: $109.7 million.
Objective: The PowerShares Global Agriculture Portfolio tries to reflect the performance of the NASDAQ OMX Global Agriculture Index, which follows the performance of the largest, most liquid globally traded companies engaged in agriculture and farming-related industries.
Holdings: Top holdings include: Potash Corp of Saskatchewan (NYSE: POT) 8.6%, Mosaic Co. (NYSE: MOS) 8.5%, Monsanto Company (NYSE: MON) 8.1%, Syngenta AG (NYSE: SYT) 7.8% and Archer-Daniels-Midland Co. (NYSE: ADM) 6.1%.
What You Should Know:
  • Invesco PowerShares sponsors the fund.
  • PAGG has an expense ratio of 0.75%.
  • The ETF has 51 holdings and the top 10 make up 60.8% of the overall portfolio.
  • Market capitalization and style allocations include: large-cap growth 58.0%, large-cap value 15.7%, mid-cap growth 5.4%, mid-cap value 16.8%, small-cap growth 1.9% and small-cap value 2.3%.
  • Country allocations include: U.S. 36.7%, Canada 16.5%, Switzerland 7.8%, Singapore 6.4%, Malaysia 6.3%, Germany 4.8%, Australia 4.6%, Norway 4.5%, Israel 4.5% and Indonesia 2.6%.
  • PAGG has a 12-month yield of 1.29%.
  • The fund is up 5.7% over the past month, down 0.7% over the last three months and up 9.3% year-to-date.
The Latest News:
  • Congress is dragging its feet in passing the farm bill as drought ravages crops in the Midwest. [Corn Prices Lead Agriculture ETFs on Drought Forecast]
  • “Inaction means economic, nutritional and employment crisis throughout our rural communities,” House Democratic leader Nancy Pelosi of California, said, reports Jim Abrams for Huffington Post.
  • Agriculture Secretary Tom Vilsack has urged Congress to act on the farm bill and revive expired disaster assistance programs in light of the worst drought in 24 years.
  • Last month, the Senate passed a 5-year $500 billion package that made drastic changes to the federal safety net programs.
  • Droughts across the globe may cut corn harvests by 60 million metric tons,Bloomberg reports.
  • “We’re seeing two very big holes in the grain production side,” Deane said in the report, referring to losses in the U.S. and the Black Sea. “Overall, we’re likely to see further gains for grains and oilseeds.”
PowerShares Global Agriculture Portfolio
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
Original Article Here

Friday, 20 July 2012

Agriculture: Why A Global Food Crisis Looms As The Price Of Corn Hits A Record (MOO, DBA, CORN, DE, MON, AGU)


Michael Snyder: Are you ready for the next major global food crisis?  The price of corn hit an all-time record high on Thursday.  So did the price of soybeans.  The price of corn is up about50 percent since the middle of last month, and the price of wheat has risen by about 50 percent over the past five weeks.  On Thursday, corn for September delivery reached $8.166 per bushel, and many analysts believe that it could hit $10 a bushel before this crisis is over.  The worst drought in the United States in more than 50 years is projected to continue well into August, and more than 1,300 counties in the United States have been declared to be official natural disaster areas.  So how is this crisis going to affect the average person on the street?  Well, most Americans and most Europeans are going to notice their grocery bills go up significantly over the coming months.  That will not be pleasant.  But in other areas of the world this crisis could mean the difference between life and death for some people.  You see, half of all global corn exports come from the United States.  So what happens if the U.S. does not have any corn to export?  About a billion people around the world live on the edge of starvation, and today the Financial Times ran a front page story with the following headline: “World braced for new food crisis“.  Millions upon millions of families in poor countries are barely able to feed themselves right now.  So what happens if the price of the food that they buy goes up dramatically?
You may not think that you eat much corn, but the truth is that it is in most of the things that we buy at the grocery store.  In fact, corn is found in about 74 percent of the products we buy in the supermarket and it is used in more than 3,500 ways.
Americans consume approximately one-third of all the corn grown in the world each year, and we export massive amounts of corn to the rest of the world.  Unfortunately, thanks to the drought of 2012 farmers are watching their corn die right in front of their eyes all over the United States.
Original Article Here                                       

Thursday, 12 July 2012

World food prices likely to remain high over the next decade


Global food commodity prices are expected to remain high over the next decade on account of rising consumption and declining agricultural production, the latest OECD-FAO Agricultural Outlook has said.

"The Outlook anticipates that agricultural output growth will slow to an average of 1.7 per cent annually over the next 10 years, down from a trend rate of over 2 per cent per year in recent decades," it said.

The Paris-based Organisation for Economic Co-operation and Development and United Nation's body Food and Agriculture Organisation, in its OECD-FAO Agricultural Outlook 2012-2021, said population growth is also increasing demand pressures.

"While international agricultural commodity markets appear to have entered calmer conditions after record highs (in prices) last year, food commodity prices are anticipated to remain on a higher plateau over the next decade...", the FAO said on its website.

This, it said, is underpinned by firm demand but a slowing growth in global production.

The report points out that in addition to population growth, higher per capita incomes, urban migration and changing diets in developing countries, as well as rising requirements for biofuel feedstocks are underpinning demand pressures, it added.

Higher input costs, increasing resource constraints, growing environmental pressures and the impacts of climate change will all serve to dampen supply response, it added.

The report stresses on sustainable agricultural practices for increasing production.

Speaking about the outlook, OECD Secretary-General Angel Gurria said: "Governments should renounce trade-distorting practices and create an enabling environment for a thriving and sustainable agriculture underpinned by improved productivity."

Increased productivity, green-growth and more open markets will be essential if the food and nutrition requirements of future generations are to be met, he added.

FAO Director-General Jose Graziano da Silva said the focus should be on increasing sustainable productivity growth, especially in developing countries and for small producers.

"For consumers, especially for the millions of people living in extreme poverty, high food prices have caused considerable hardship. We need to redouble our efforts to bring down the number of hungry people," he added.

The report also drew attention on climate change and its impact on agriculture.

It said 25 per cent of all farm land is highly degraded and water scarcity in agriculture is a fact for many countries. There is a growing consensus that extreme weather events are becoming more frequent and climatic patterns are changing in many parts of the world.
Original article here

Rabobank to Replace Head of Food and Agriculture M&A Unit

Rabobank Groep plans to replace Emmanuel Durand, the head of its global mergers and acquisitions team focused on the food and agricultural industries, which are at the core of its international business.
Jacqueline Pieters, 45, will head the lender’s global mergers and acquisitions food and agricultural practice starting Sept. 1, Rabobank spokeswoman Fransce Verdeuzeldonk said in an e-mailed statement today. Durand, based in New York, will continue to lead the unit’s Americas region.
Rabobank, based in the Dutch city of Utrecht, currently has food and agricultural banking operations in more than 30 countries and seeks to expand its mergers and acquisitions practice, Verdeuzeldonk said. In 2008, the bank entered into an agreement with Rothschild on deals and equity capital markets advisory in food and agriculture, under which Rabobank obtained a 7.5 percent stake in Rothschilds Continuation Holdings.
Pieters, who joined Rabobank in 1992, is currently managing director at Rabobank International, where she built strategic relationships with corporate clients in the food and agricultural sectors, Verdeuzeldonk said.
Pieters and Durand, 49, will both serve on the executive committee of the Rabobank-Rothschild tie-up, to which the two banks remain “fully committed,” the spokeswoman said.
Durand, a Harvard-educated banker who previously led the financial institutions group in Latin America for Salomon Smith Barney, will help Rabobank strengthen its presence in markets including the U.S., Mexico, Brazil and Argentina, as well as “explore opportunities to expand the bank’s regional footprint.”
Rabobank was formed in 1898 as a cooperative lender serving Dutch farmers, and has since become one of the world’s biggest agricultural lenders. Rabobank International had 50.9 billion euros ($62.3 billion) in loans to the food and agricultural sector at the end of last year, accounting for 48 percent of of the unit’s total lending, according to its annual report.
Pieters declined to comment on the job changes, and Durand did not respond to requests for comment.
To contact the reporter on this story: Maud van Gaal in Amsterdam at mvangaal@bloomberg.net
To contact the editors responsible for this story: Jacqueline Simmons at jackiem@bloomberg.net; Frank Connelly at fconnelly@bloomberg.net

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