WATCH OUT FOR WORLD'S #2 CORN GROWER: CHINA

After the U.S., China is the second-largest corn grower in the world, but its stockpiles are twice the U.S. inventory. Dan Basse, head of the private consultancy AgResource Company in Chicago, says China is “awash in corn. I believe China will be back in the corn export market within one year.” 

The exports would be relatively small – there is market talk of 2 million tonnes in a world market of more than 140 million tonnes – and an outgrowth of Chinese farm-subsidy reforms and Beijing’s efforts to work down government-held reserves. Domestic prices are drifting closer to international shipping rates, Basse said during a luncheon at USDA’s Outlook Forum. Port disruptions at major exporters or a change in exchange rates could provide the opening for sales, he said.

USDA economists say the impact of China’s evolving farm policy “is still not entirely clear.” In a sidebar to USDA’s long-term baseline, they note that China has allowed prices to fall by up to 30% over the past few years for cotton, soybeans, rapeseed, “and now corn prices,” although wheat and rice supports remain. “The removal of the corn support price could encourage a modest shift in acreage from corn to competing crops in coming years,” such as soybeans, spring wheat, and fodder crops. 

China has throttled back on imports of corn, sorghum, and DDGs in the face of a corn surplus equal to a six-month supply at the start of this marketing year. Still, USDA projects corn imports of 3 to 4 million tonnes annually in the near term.

“Despite a slowdown in consumption of many commodities, China’s soybean exports are projected to be a record 86 million tonnes during 2016/2017, as falling international prices stimulated Chinese consumption,” say the economists. “Soybean imports are expected to rise to 121 million tonnes during 2016/2017.”

This article was produced in collaboration with the Food & Environment Reporting Network, an independent, nonprofit news organization producing investigative reporting on food, agriculture, and environmental health.

TRADE IS THE ANSWER, PERDUE SAYS IN HEARING

PERDUE SAYS PRESIDENT SAVED BEST FOR LAST.

WASHINGTON - Former Georgia Governor Sonny Perdue, seemingly a shoo-in to become agriculture secretary for President Trump, told senators on Thursday that larger exports are the remedy for farm-sector slump, promising to be “USDA’s chief salesman around the world.”

Senate Agriculture chairman Pat Roberts said he would schedule a vote as soon as possible on the nomination, which would then go to the full Senate for a final vote. Perdue was the last cabinet nominee announced by Trump, raising complaints that he was giving short shrift to rural Americ despite its key role in his election. “I think the president must have saved the best for last,” said Perdue mildly.

Committee members repeatedly asked Perdue how he would expand farm exports in an administration that has threatened to rewrite trade relations with major customers for U.S. ag products. Roberts grumbled about “too many cooks in the kitchen” on trade policy. With the farm economy in a slump since 2013, exports beckon as a speedy way to generate revenue when domestic markets are sated.

“I plan to be on-site as USDA’s chief salesman around the world to sell these products, to negotiate these deals side by side with USTR, side by side with (Commerce) Secretary (Wilbur) Ross,” Perdue told Montana Senator Steve Daines. “I believe USDA will be intimately involved...in selling our products.”

Perdue put farm income at the top of his priorities for action if confirmed, saying he would maximize the ability of producers to “sell the food and fiber that feed and clothe the world. We want to remove every obstacle and give them every opportunity to prosper.”

In responding to a question from Arkansas Senator John Boozman, Perdue said trade was a top issue raised by senators during conversations before the confirmation hearing.

“We’re seeing some of the lowest prices in years. Farmers are really struggling to be profitable,” he said. “I really believe trade is the answer. I look forward to being an adviser and counsel to this administration.”

Perdue also said he would be an advocate for immigration reform, particularly a change in the guest worker program, now limited to seasonal workers, to benefit dairy farmers who milk cows every day. Half or more of U.S. farm workers are undocumented, according to estimates, and Trump’s policy of strict enforcement of immigration law has created anxiety throughout agriculture to find a stable and legal workforce.

When Vermont Senator Patrick Leahy argued that dairy farmers, like sheep farmers, should be allowed year-round visas for guest workers, Perdue said, “There is a need, obviously,” and added, “I believe dairy qualifies for that as well.”

Michigan Senator Debbie Stabenow cited the January 19 announcement of Perdue for USDA – the longest search for an agriculture secretary since 1933 – and the administration’s proposal to cut discretionary spending at USDA by 21% as signs that “rural America has been an afterthought” for Trump.

Update: GEMS4 DFID pilot test on tomato transport records success

Post harvest losses in tomatoes may soon become history as GEMS4DFID pilot test on Returnable Plastic Crates (RPCs) turns out to be successful.

The test which involved the transportation of 585 Returnable Plastic Crates of tomatoes via train from Kano state to Lagos state came to a conclusion when the train arrived at Iddo terminus on Wednesday, at about 7pm.

In an interview with AgroNigeria, the Vice-President of the Nigerian Agribusiness Group (NABG) and Chairman, Best Foods Global Limited, Emmanuel Ijewere, noted that the innovation would bring a new paradigm to the sector and the country at large.

“For many years, the Federal Government has been pained by the amount of losses the farmers suffer. With this now, we are beginning to see those changes come to be and this is a perfect relationship between the public and private sector” Ijewere said.

Ijewere said the federal and state governments can come up with policies that will promote the application of these innovations aimed at reducing post harvest losses while the private sector drives the policies into action.

While commending the Nigerian railway corporation for their support towards the execution of the pilot test, he affirmed that there were still some issues which would be addressed as soon as possible. He added that once the use of RPCs becomes a routine, tomato production in Nigeria will go into a new era.

“The baskets were covered with paper and stacked on one another sitting directly on the produce and this increases the risk of spoilage. However, the use of this plastic crates prevents squashing as the crates though placed on each other do not seat directly on the produce. They also allow for more ventilation and retain the fresh state of the produce” he explained.

Kwara hosts Feed Nigeria Summit pre-event stakeholders meeting

Kwara state played host to stakeholders in the agriculture sector from the northern geo-economic zone for a pre-summit town hall meeting that was slated to hold on March 24, 2017 at the Agric House, beside Ministry of Agriculture and Natural Resources, Jebba Road, Ilorin.

The Town Hall Meeting is coming ahead of the main event: Feed Nigeria Summit which is slated for April 6-7, 2017 at the Grande Ballroom, Intercontinental Hotel, Lagos.
According to Sub-national Coordinator for the Northern geo-economic zone of the FNS, Comrade David Kayode Ehindero, Chairman, Agric House Ventures, expected participants from the Northern States will include government officials in the agricultural sector, All farmers Association of Nigeria (AFAN), other professionals and operators in the sector, members of the Agriculture and Allied Employees Union of Nigeria (AAEUN), agriculture Ministries Department and Agencies (MDA) in the zone.

The feed Nigeria Summit is an initiative of AgroNigeria with technical support from the African Development Bank (AfDB) and the Songhai Center for Excellence, Porto Novo. The pre-event stakeholders’ meeting is for the purpose of sub-national sensitization and agenda –setting for the main event.
The summit according to Richard Mark-Mbram, CEO AgroNigeria, is expected to position Nigeria at the forefront of this laudable policy initiative in Africa, and make Nigeria’s agriculture the key to a successful continent food security and nutrition enhancement bid.

“The current drive towards diversification can only succeed if agriculture can be given the deserved attention by both public and private sectors”, Ehindero submitted.

FAO moves to support farmers in North East Nigeria with $20 million

The Food and Agriculture Organisation (FAO), has said about $20 million is required urgently by June, 2017, to support farmers for new farming season in the north east region of Nigeria.

The Agency stated this in a report on the region released by FAO National Communications Officer, Emeka Anuforo in Abuja on Thursday.

In the report, FAO noted that about 1.5 million people may face acute food Security in  Adamawa, Borno and Yobe, adding that deliberate efforts should be made towards raising  the sum , otherwise the implication might continue to worsen until 2018.

According to the report “In 2017, FAO is asking for USD 62 million under the Humanitarian Response Plan for Nigeria. Of this, USD 20 million is urgently required to reach 1.9 million people during the upcoming main planting season starting in June 2017. Missing this season will mean food insecurity and, therefore, humanitarian costs will continue rising into 2018″.

“FAO’s dry season campaign is ongoing, with 174 400 people receiving vegetable seed, irrigation equipment and livestock support. A combination of food assistance and food production support is the only way to address the scale of hunger facing the people of northeastern Nigeria.”It added

The report revealed that in 2016, FAO received about $7.2 million to fund the northeastern part of the country from Belgium, the European Commission Directorate-General for European Civil Protection and Humanitarian Aid Operations (ECHO), FAO internal resources, Irish Aid, Japan, United Nations Central Emergency Response Fund (CERF), UN Women, and World Food Programme (Food for Peace).

“Agriculture-based livelihood interventions remain weakly funded. Missing the main planting season will force many IDPs, returnees and vulnerable host communities to rely on expensive and logistically challenging food assistance well into 2018″.

“This will have a broad negative impact – rising hunger, lack of economic and employment opportunities, and possible harmful consequences including youth radicalisation and enrolment in armed groups, and increased exposure to sexual abuse and exploitation.” it explained.