News from the  Minnesota Association of Wheat
Growers for Monday, August 28, 2000

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BRAZIL TO REQUIRE GMO LABELING
A local Brazilian newspaper reports the federal government has finished drawing up procedures for the labeling of genetically modified food.  The guidelines have been sent to a cross-ministerial commission, which will then have 60 days to make amendments before the rules are enforced. More specifically, the rules dictate that GMO labeling should be "prominent" and "easy" to read on packaging and must include the expression "genetically modified".  Moreover, said guidelines will also implement specific technical regulations for the labeling of each type of food, food additive or ingredient containing GMOs.  However, government officials are still undecided about the appropriate level of tolerance for GMOs. Some officials feel 5% tolerance is adequate while others insist on 1% tolerance.

 

ESTIMATES OF RUSSIAN WHEAT CROP IS UP 18% FROM LAST YEAR
Russia's largest commercial grain trading company, OGO, estimates Russia's 2000-01 wheat production at 36.5 MMT, up nearly 18% from the previous marketing year.  They point to higher yields due to favorable weather conditions as the catalyst for the increased output forecast.  This forecast compares with the Federal Weather Center's 2000-01 Russian wheat production estimate of 38-40 MMT.  OGO anticipates the share of milling wheat in 2000-01 will run around 64%-66%, versus around 63% last year.  Furthermore, OGO estimates that the harvest of Russian milling wheat varieties will satisfy domestic demand, currently estimated between 23.2-24.7 MMT.  Finally, the commodity traders at OGO forecast 2000-01 Russian feed grain imports at about 5.0 MMT, compared with 6.2 MMT imported in 1999-00.

 

U.S. WHEAT AND FLOUR DONATION BENEFITS WOMEN IN ANGOLA
Trying to rebuild her country after 25 years of civil strife, Albina Assis Africano, the trade minister from Angola, came to the U.S. last year seeking help.  The effort is paying off, with proceeds from U.S. wheat and wheat flour donations going to support efforts to provide job training to Angolan women.

Coming after two years of coordinated efforts by U.S. Wheat Associates and the North American Miller's Association, the recent food aid donation of 15,000 metric tons of hard red winter wheat (HRW) and 20,000 metric tons of wheat flour milled exclusively from HRW should also help to build a market for U.S. wheat. The donation was announced by the U.S. Department of Agriculture last week, under their Section 416 (b) program.

Last year, U.S. Wheat Associates (USW), the industry's export market development organization, sponsored the Angola's Minister of Industry visit to the U.S. While here, Minister Africano explored ideas for developing the Angolan wheat foods industry. She came up with a plan to use wheat and flour donations to train women bakers and establish local mills.

The wheat and flour will be sold, under a humanitarian aid process called "monetization," and the proceeds will be used to support training programs for food processing, bakery training and small scale milling of local crops.

"The creative work of Minister Africano is gratifying," explained Ed Wiese, USW regional director for Sub-Saharan Africa. "With her inspiration, and our knowledge of the wheat industry, we've got a program that is a win-win for all concerned. The U.S. can help meet Angola's humanitarian needs and, at the same time, help establish a U.S. wheat market for the longterm." USW and the North American Millers Association (NAMA), in a cooperative effort, urged the USDA to provide both wheat for local mills, and flour for areas where mills have yet to be established. They also worked extensively with private and public sector entities in Angola, setting the stage for the U.S. donation.

"U.S. millers are pleased with the cooperative relationship we have forged in the Angolan market, working with the U.S. wheat industry and the U.S. government to 'grow the market' for flour and wheat simultaneously," said Betsy Faga, president of NAMA. "By combining our efforts, using a lot of creativity, working with USDA and, most importantly, working with the countries to meet the needs that they articulate, programs like this can benefit everyone."

Hard red winter (HRW) wheat is ideal for Angolan breads. Humanitarian shipments of HRW flour to Angola have been made in past years under the USDA's PL 480 Title I and Food for Progress programs, and the flour is widely known among bakers there, who clamor for the flour when it arrives.

Explaining why USW and NAMA are putting so much effort into developing an Angolan preference for U.S. wheat and flour, Wiese points to the potential growth in the food market there. "We know that, when Angola becomes stable, they could develop into a million ton commercial market for U.S. wheat and flour," he points out.

USW and NAMA aren't the only ones expressing confidence in Angola's potential. Seaboard Corporation, an international milling company based in the U.S., recently invested in the refurbishment of a flour mill in the capitol city of Luanda, and is significantly expanding the mill's annual milling capacity.

"Few Americans realize how rich Angola is in natural resources," Wiese explains. "In fact, over 8% of U.S. oil imports comes from Angola. We're certain that their post war economy is going to provide amazing growth for wheat food consumption."

We want to be the preferred supplier to Angola once they are able to enter the world economy," Wiese says. "In the meantime, we are working to ensure that Angola gets the wheat and flour it needs during these difficult times."

For more information, contact:
Dawn Forsythe, USW, 202-463-0999
Paul Green, NAMA, 202-484-2200

 

SEPTEMBER RAINS KEY FOR AUSTRALIAN WHEAT CROP
Australian winter wheat is reported to be in the vegetative to joint stage across most of the south.  Crops further north are reproducing, filling and beginning to mature. Sources suggest most of the wheat crop in southeastern Queensland and northeastern New South Wales is in the booting, heading and flowering stages. Reproduction in these areas will occur primarily in September at which time rain will be needed in frequent intervals since portions of the region remains dry. Overall, crop watchers expect favorable Australian wheat production potential this year as long as timely rains continue through November as they have been in the past 10 days.

 

DISEASE DAMAGE ON CORN, SOY YIELDS NOT ENOUGH TO IMPACT YIELDS
Crop specialists indicate that although Midwest corn and soybean fields have disease, it is not enough damage to impact yields.

"Maybe instead of extra high yields we're looking at high yields," University of Illinois plant pathologist Don White said. "But there's no way to say for sure until harvest."

Some counties in Iowa have scattered SDS (sudden death syndrome) which appears as yellow pockets in soybean fields and causes early death of the plant.

Purdue University plant patholgist, Ellsworth Christmas, stated that what disease he has seen doesn't appear to affect yields statewide.

Because of an infestation of bean leaf beetles, more Midwestern states are claiming some damage. The beetle attacks the soybean pod and opens the plant to other diseases. It appears that the rise in beetle attacks have been increasing over the past few years.

 

ANALYSIS OF THE OUTLOOK FOR CROP EXPORTS
By Wm. Tierney, Ag-Economist, Kansas State U.
Crop Report [PDF].