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News from the Minnesota Association of Wheat
Growers for Monday, April 17,  2000

CHINA AND U.S. WHEAT EXPERTS PREPARE FOR OPENING MARKETS
April 13, 2000
Two separate teams of Chinese officials made trade visits to the U.S. this week, and next week U.S. wheat officials will be traveling to China, all in preparation for future sales of U.S. wheat to that country. The increased activity is in hopeful anticipation of normal trade relations (NTR) which will likely result in increased wheat exports, once Congress votes to give permanent NTR to China.

One Chinese team, led by Ms. Jian Huanluo, Deputy Director of the Zhejiang Provincial Grain Bureau, traveled to California, New York, and Washington DC this week to learn more about the systems and policies of grain production, sales, purchasing and inspection in the U.S.

Another Chinese team, made up of government grain officials and flour milling experts, including Madam Zhao Yi Yi,  the Senior Engineer from the China State Grain Administration, spent time at the Wheat Marketing Center in Oregon, conducting baking tests and evaluating the performance U.S. wheat for Chinese steamed bread.

If Congress approves the permanent status for China, U.S. wheat exports could increase as much as 10 percent.

Next week, U.S. Wheat Associates experts are traveling to China, and will be meeting with flour milling industry representatives and public officials in Shanghai, Beijing, Shenzhen, Guangzhou and Hong Kong.

USW vice president Paul Dickerson will be explaining the U.S. wheat market system.  "China is on the cusp of economic and agricultural changes that will benefit both of our countries, and the U.S. wheat industry must be first in line when that door opens," Dickerson pointed out.  "We have to develop the wheat market now, and the best way we can do that is to meet and exchange information."

U.S. WHEAT ASSOCIATES
Dawn Forsythe
Director of Communications
202-463-0999
dforsyth@uswheat.org

 

 

WILL BRAZIL LIFT THE BAN ON U.S. WHEAT ON ONE CONDITION?
An official at the Brazilian agriculture ministry suggests Brazil will lift the ban on US wheat when the US lifts the ban on Brazilian beef.  With the exception of US hard red winter wheat grown in Texas, Oklahoma, New Mexico, Kansas, Colorado, Nebraska and Missouri, Brazil currently imposes a phytosanitary ban on US wheat imports.  Local wheat milling representatives would like to see the ban lifted on US wheat imports in order to increase their supply options.  Moreover, one Brazilian wheat industry (ABITRIGO) official suggests millers are ready to pay 10-15% premium for US wheat because of its "better quality" than that of this year's Argentine crop.  Sources indicate Argentina has a virtual monopoly on wheat supplies due to the Mercosur agreement which mandates imports of wheat from outside the Mercosur group of countries be assessed a 13% tariff charge, combined with a natural freight advantage.  However, industry sources estimate if the ban were lifted the US could potentially export between 1.0-1.2 MMT of wheat to Brazil.  In addition, newswire sources speculate Brazilian beef producers would also like to see the bans lifted as access to the US market place would be seen as a "stamp of approval" that could increase sales in Asia.

 

 

FIRST COMMERCIAL U.S. WHEAT SALE TO SUDAN SINCE SANCTIONS EASED
The first commercial sale of wheat to Sudan since U.S. trade sanctions were lifted last year has been confirmed. The sale of 31,500 metric tons of hard red winter wheat comes after U.S. Wheat Associates and other industry officials conducted several planning sessions with traders and millers who operate in Sudan.

Due to the absence of U.S. wheat over the last ten years, Australia and Canada have become the top suppliers of wheat to Sudan.  "With the U.S. trade sanctions in Sudan, millers and buyers had very little familiarity with the U.S. marketing system or U.S. wheat classes," reports Dick Prior, USW vice president for the Middle East and East Africa. "This is a potentially important market for us, and the U.S. wheat industry has worked hard to reestablish ties with Sudanese millers."

 

 

ASIAN COUNTRIES TIGHTEN UP ON GM IMPORTS
Sri Lanka has banned imports of all genetically modified (GM) foods, effective immediately. "The government wants to wait until the controversy surrounding GM foods has cleared,'' S. Nagiah, the ministry's chief food inspector told a reporter with Reuters news service.

In Japan, the voluntary GM food safety assessment scheme has become mandatory. The change was recommended by   the Food Sanitation Investigation Council, an advisory panel to the Minister for Health and Welfare. Under the old assessment system, importers of GM foods voluntarily underwent examination and evaluation for the safety of such foods by following nonbinding MHW guidelines.  The new assessment system, however, legally requires all importers to have their GM foods examined under the Food Sanitation Law's standards for foods and additives.

Korea's Ministry of Health and Welfare recently announced that they will propose a bill to enforce a mandatory inspection and monitoring of GM grains effective April 2001. Under the new law, if enacted, grain importers would face severe penalties including fine, imprisonment and rejection of cargoes if unapproved GM varieties were found.

 

 

DISCOVERY OF GENE COULD DOUBLE CANOLA SEED YIELDS
Biologists at the University of California, San Diego have identified genes in a laboratory weed that are necessary for normal seed dispersal. The discovery, they say, will drastically increase the yield of canola and perhaps even double it.

In the April 14th issue of Nature, the researchers report the identification of two genes in Arabidopsis that, when inactivated, prevent this weed from shattering its seed-containing pods.  Finish the article at  www.agweb.com

 

 

AUSTRALIAN FARM GROUP ADVOCATES MOVING SLOW ON GMO CROPS
Australia's top farm leader warned that his country's farmers risk losing export markets if they rush into producing genetically modified crops. National Farmers' Federation president Ian Donges said that consumer acceptance of GM products was still two to three years away and that Australia should cash in on its GM-free status in the meantime. "There has been a consumer backlash in the EU and in Japan, and agricultural producers in the USA, Canada and Argentina are looking to go back to GM-free production," Donges  said. "We believe it is not time yet to go into full-scale production  (of GM crops); our customers are not ready for them. Meanwhile, we have a market advantage by keeping GM-free," he said. http://email.agriculture.com/cgi-bin1/flo?x=doKEYKYYmwgugAuE

 

 

GULF STATES WHEAT IMPORTS SOAR..AND U.S. MARKET SHARE CLIMBING
The USDA Foreign Agricultural Services web page is featuring the newest player to emerge in global wheat and flour trade. The Gulf States have more than tripled their wheat imports since the early 1990s to nearly 2 million tons this year, with the United Arab Emirates (UAE) accounting for much of this growth. Expanding wheat trans-shipments and flour exports appear to be driving the demand for increased wheat imports.

Export-oriented flour mills in the UAE, Oman, and Qatar enjoy a freight advantage to nearby major markets and also offer flexible shipment schedules that are increasingly important to private importers in Africa, Indonesia, Iran, and Sri Lanka. Those expanding flour shipments come at the expense of the European Union, whose flour licenses have dropped by about a third from the record 6 million tons (in grain equivalent) of just 2 years ago.

 

 

U.S.–CANADA BORDER DISPUTES IN GRAINS: DYNAMIC INTERFACE BETWEEN THE FREE TRADE AGREEMENT AND TRADE REMEDY LAWS
Agricultural trade between the United States and Canada has been contentious since the inception of the CUSTA agreement in 1989.

Even though Canadian exports of wheat and barley are not found to have violated U.S. trade remedy laws, friction seems likely to continue as long as the surge in Canadian exports remains unabated.  

Gradual harmonization of trade policies, farm subsidy programs, and marketing institutions may reduce trade disputes between the two countries in the future. To diffuse the threat of future trade disputes, a Canada - U.S. joint research team should be formed to deal with the matter through better understanding for causes of the disputes.  Read more at http://agecon.lib.umn.edu/ndsu/aer436.pdf