3 BIG THINGS TODAY, MARCH 31

CORN, BEANS LOWER OVERNIGHT; EXPORT INSPECTIONS MIXED WEEK OVER WEEK.

1. CORN, SOYBEANS LOWER OVERNIGHT ON FAVORABLE SOUTH AMERICAN WEATHER

Corn and soybean futures were lower in overnight trading on favorable weather conditions in South America.

About 2 to 4 inches of rain fell in central and northwest Mato Grosso, a major growing state in Brazil, over the weekend, according to Commodity Weather Group. Frequent showers in areas where the safrinha corn crop is being grown have limited concerns about dryness, the forecaster said.

In some areas of southern Brazil where too much rain fell recently, a drying trend continues this week, which will help ease wetness concerns, CWG said.

Corn futures for May delivery lost 1½¢ to $3.62 a bushel overnight on the Chicago Board of Trade.

Soybean futures for May delivery declined 1¾¢ to $9.97¾ a bushel. Soy meal fell $1.4 to $325.2 a short ton, and soy oil rose 0.16¢ to 32.90¢ a pound.

Wheat futures for May delivery dropped 2¢ to $4.28¼ a bushel, and Kansas City wheat declined 3¼¢ to $4.42 a bushel.

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2. CORN INSPECTIONS DOWN WEEK OVER WEEK, SOYBEAN INSPECTIONS IMPROVE

Inspections of corn for export by the U.S. Department of Agriculture fell week over week, while soybeans saw an increase.

Government officials inspected 1.33 million metric tons of corn for overseas delivery in the seven days that ended on March 16, the USDA said in a report. That’s down from 1.57 million the prior week.

Despite the lower week-over-week totals, inspections since the start of the marketing year on September 1 have almost doubled to 30.3 million tons from 17.6 million during the same time frame a year earier, according to the USDA.

Soybean inspections rose to 737,255 tons from 676,560 tons a week earlier, according to the department.

For the marketing year, soybean inspections have risen to 45.8 million tons from 41 million during the same period last year.

Wheat inspections last week totaled 624,334 metric tons, up from 544,166 tons a week earlier. Since the start of the wheat marketing year on June 1, the USDA has inspected 20.7 million tons of the grain for shipment to overseas buyers, well above the 16.1 million during the same time frame a year earlier, the agency said.

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3. POSSIBILITY OF RAINFALL CREEPS INTO SOUTHERN PLAINS WEATHER FORECAST

The possibility of rain has crept its way into the Southern Plains forecast for later this week, which would bring much-needed relief to the region.

There’s a marginal risk that a thunderstorm will develop on Thursday afternoon into the evening in the region, the National Weather Service said in a report on Tuesday morning.

The storms, however, could be accompanied by hail and strong winds, which likely wouldn’t be ideal for delicate plants that have recently emerged from winter dormancy. Still, precipitation would be welcome.

Little or no rain has fallen in at least the past 30 days in much of the Southern Plains including southwestern Kansas and the Oklahoma and Texas panhandles, NWS data show.

CONTEST OFFERS GRAIN BIN RESCUE EQUIPMENT

When farmers become trapped in grain bins and other storage facilities, the ending is usually not a happy one. According to Purdue University researchers, more than 900 cases of grain engulfment have been reported over the past 50 years with a fatality rate of 62%.

With the proper equipment and training, however, fire departments and other first responders can increase the odds of a successful rescue.

For the fourth year in a row, Nationwide is awarding grain rescue tubes and specialized hands-on training to first responders. “Deploying a grain rescue tube is the only way to safely remove someone trapped in grain,” says Brad Liggett, president of Nationwide Agribusiness. “Until we can convince all farmers and other grain handlers to develop a zero-entry mentality, we will continue to make tubes available.”

Since the program’s inception, 32 fire departments in 15 states have been awarded rescue tubes.

To learn more or to nominate your local fire department, visit grainbinsafetyweek.com. Nominations are due May 31.

Postharvest loss alliance for nutrition

These infographics present ideas on Post harvest loss alliance for nutrition developed by the Global Alliance for Improved Nutrition (GAIN).

Jamaica bans importation of corned beef from Brazil

The Ministry of Industry, Commerce, Agriculture and Fisheries of Jamaica have placed an indefinite ban on importation of corned beef from Brazil.

This decision followed a report from the Brazilian authorities that companies supplying meat had been selling rotten beef and poultry. They were also alleged to have been bribing auditors in exchange for fake licences.

The Minister of Industry, Commerce, Agriculture and Fisheries,  Karl Samuda called an emergency meeting at the ministry’s Hope Gardens office emphasising  the need to protect consumer affairs.

The meeting was attended by officials from the ministries of Industry, Commerce, Agriculture and Fisheries; Health, and Consumer Affairs.

The meeting resolved that a temporary hold would be placed on all permits for the importation of corned beef from Brazil. It was agreed that corned beef in the market would be withdrawn for precautionary reasons. This implies that the nation’s Food Recall Committee will meet to determine the next step and inform the consumers when the product is safe.

Karl Samuda also held a meeting with major distributors and importers of corned beef.

Consumers have been advised to beware of corned beef for now. In the meantime, the Bureau of Standards, Jamaica will conduct chemical tests on the contents of corned beef in the market while the Veterinary service division of the ministry will conduct microbiology and residue tests to determine the presence of contaminants.

Buhari approves appointment of CEO, Executive Directors of BoA

President Muhammadu Buhari has approved the appointment of an interim Managing Director/Chief Executive Officer, as well as Executive Directors for the Bank of Agriculture.

The appointments were announced by the Federal Ministry of Agriculture and Rural Development on Thursday in a statement issued by the Deputy Director, Information, Mrs Lere -Adams Blessing.

The ministry explained that the appointments would support the administration in realising its vision of boosting agriculture across the country, through ensuring availability of funds needed for the development of the sector.

“This appointment is as a result of the Federal Government’s determination to reposition the Bank of Agriculture to be a more efficient and result oriented institution. The strategic re-positioning of BOA will enhance farmers accessibility to agricultural funds that will be profitable for large and small scale player” it stated.

According to the statement, the availability of funds will no doubt increase production which will eventually result in self-sufficiency.

The appointees include Kabiru Mohammed, Interim MD/CEO; Prince Akenzua, Executive Director, Corporate Finance, South-South; Dr. Okenwa Gabriel, Partnerships and Strategy, South-East; Ameh Owoicho, Executive Director, Credit and Empowerment, North Central; and Olabode Abikoye, Executive Director, Credit and Empowerment, South West.

3 BIG THINGS TODAY, MARCH 30

WHEAT FUTURES LOWER OVERNIGHT; EASTERN PLAINS, SOUTHERN MIDWEST LIKELY WETTER THIS SUMMER.

1. WHEAT FALLS ON LARGE GLOBAL OUTPUT, CHANCE OF SOUTHERN PLAINS RAIN

Wheat futures declined overnight as investors focus on large global supplies and the possibility of rain in the Southern Plains this week.

World wheat production is pegged at 751.1 million metric tons, up from 735.3 million last year, and stockpiles are forecast at a shade under 250 million tons, easily topping the prior year’s 240.3 million, according to the U.S. Department of Agriculture.

Showers are expected in northern Texas near the Oklahoma border late Thursday into Friday, according to Commodity Weather Group. Still, a fourth of the hard red winter wheat crop in the Southern Plains will miss the rain. Little or no precipitation has fallen in the area in at least a month, National Weather Service maps show.

Wheat futures for May delivery fell 2½¢ to $4.24 a bushel overnight on the Chicago Board of Trade. Kansas City wheat lost 2¾¢ to $4.35½ a bushel.

Soybean futures declined 1¾¢ to $9.99¾ a bushel in Chicago. Soy meal lost $1 to $324.80 a short ton, and soy oil added 0.02¢ to 33.16¢ a pound.

Corn futures declined a tick to $3.61 a bushel on the CBOT.

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2. CWG FORECAST SHOWS RISKS IN FOURTH OF CORN BELT; WETTER EASTERN, SOUTHERN MIDWEST

The eastern Plains, southern Midwest, and Delta regions of the U.S. will be wetter than previously expected this summer, Commodity Weather Group said in a monthly seasonal outlook.

A weak or moderate El Niño weather matter will occur this summer, which will moderate the cool northeastern Pacific and bring broad warmth to the rest of the ocean, including a key region near the Baja Peninsula, CWG said in its report.

That will put about a fourth of the Midwest Corn and Soybean Belts at risk for below-average summer rain, but it may not be as hot in the region, which will help crops, the forecaster said. The southeast is most at risk for notable yield threats, CWG said.

The best chance for frequent rains are in the Northern Plains, while a wet start to the summer is already threatening the soft wheat harvest.

The northern third of Canada wheat and canola country is at risk for rain deficits, as are parts of the southern U.S. should the storm stream dip south, CWG said.

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3. STORM FORECAST TO BRING RAIN TO SOUTHERN PLAINS, POSSIBLE TORNADOES IN SOUTHERN MIDWEST

A storm is brewing in the Rockies that is expected to bring much-needed rain to the Southern Plains later this week, the National Weather Service said in a report on Wednesday.

“Severe weather will be possible on Thursday and Thursday night across the Texas and Oklahoma panhandles,” the NWS said. “A couple of things like timing and coverage could change between now and Thursday, but it does appear that thunderstorms could develop late afternoon and early evening and sweep across the panhandles rather quickly.”

The weather system that’s forming likely will bring rain, but also hail, to much of the High Plains on Thursday and Friday. By the end of the week, the area near the Arkansas, Louisiana, and Texas borders will likely see rain, strong winds, large hail, and possibly tornadoes, the agency said.

BRAZIL'S AGRIBUSINESS LEADERS SEE BRIGHT FUTURE

AG ECONOMY REMAINS A COUNTRY LEADER

The Brazilian economy has gone through rough times but is now showing signs of recovery for 2017, and agribusiness is set to be the first to emerge from the slump.

“Agriculture was the only segment of the Brazilian economy to stay in the black in 2015 and 2016. This achievement is thanks to producers, companies, research, and the tireless search for new technologies that help produce more and produce better,” said Jorge Espanha, president of Merial Animal Health.

Data released by the Confederation of Crops and Livestock (CNA) and by the Center for Advanced Studies in Applied Economics (CEPEA) revealed that the gross domestic product (GDP) of Brazilian agribusiness grew 2.71% from January to July 2016 compared with the same period the previous year.

This shows that the political and economic difficulties did not sway producers, who relentlessly believed and invested in their businesses. “Agribusiness has been one of the strengths of the economy, despite the macroeconomic instability. It’s a sector that maintains the GNP,” said Rodrigo Bonato, sales director of John Deere Brazil.

In the third quarter of 2016, the Agribusiness Confidence Index (ICAgro) was up 4.2 points over the previous quarter. According to the Federation of Industries of the State of São Paulo (Fiesp) and the Organization of Brazilian Cooperatives (OCB), who are responsible for the study, this is a record-high rating and confirms the optimism of the sector. See the predictions by the representatives of agribusiness for 2017.

JORGE ESPANHA, PRESIDENT OF MERIAL ANIMAL HEALTH BRAZIL
The balance for the year is positive despite the difficulties. In 2016, finished cattle and milk production stood out, with profitable price rates for most of the year. Beef, pork, and chicken had positive performances, with growth in volume and revenue. Looking forward, a decline in national consumption of proteins, unemployment, and inflation must also be taken into account. Beef consumption for example, which reached almost 40 kg per capita/year in 2013, now stands at 28 kg. In this scenario, consumption per capita of chicken has remained over 40 kg while the figure for pork is 15 kg.  We are betting on recovery of the Brazilian economy for consumption levels to bounce back. Cattle farming is one of the most productive activities in the country. Brazil has over 210 million head of cattle, raised on 167 million hectares. Average production rates are a little over 1 AU (animal units per hectare). This proportion can be doubled. Investment in health, nutrition, and genetics is vital.

RODRIGO BONATO, SALES DIRECTOR FOR JOHN DEERE-BRAZIL

I’d like to point out an important advance: We are seeing a revolutionary opportunity for tropical agriculture in Brazil, with increasing adoption of crop growing, cattle raising, and forest integration. Brazil currently has 11.5 million hectares under this system. We can use the provision of sun and water wisely, achieving productivity in harmony with the environment.
The challenge now is to combine technology with economic operations and assertive management. Technologies such as precision agriculture, integrated systems connectivity, systemized grain planting and cleaning, and deployment of data in farm administration are some examples of innovations. The evolution will be connecting the office with the machines, the machines talking to each other, and the data returning from the field to the computer in real-time, allowing improvements to be made in real time. Our vision is to continue offering machines that are less iron and more intelligence.”

ARIEL MAFFI, VICE PRESIDENT OF RUMINANTS FOR DSM

The current political and economic phase in Brazil calls for greater efficiency in the meat and milk production chains. Regarding livestock, producers have responded positively to the challenges of rising costs of some supplies; those who remained attentive to the use of technology in the field have increased yields and profitability. In 2016, one of the major milestones was the opening up of the U.S. market to Brazilian beef. Although volumes are low, this represents an important event in that many countries follow in the footsteps of the North Americans with solid prospects for the opening up of further new markets. For 2017, the meat market has capacity for expansion on both local and international levels, particularly with the use of ingredients that increase the yield and quality of the finished product. There is scope for a large production increase in this area by adopting technologies.

EDUARDO ESTRADA, HEAD OF CROP SCIENCE DIVISION OF BAYER BRAZIL

I believe technology will be an increasingly important ally, especially in the area of digital farming, which offers new opportunities to support farmers in decision-making based on data, leading to efficiency and management gains. For Bayer, 2016 was an important year. We globally announced the purchase of Monsanto, a move set to bring significant benefits. For 2017, our main objective is to offer integrated solutions, contributing to higher yields.

GUSTAVO JUNQUEIRA, PRESIDENT OF THE BRAZILIAN RURAL SOCIETY

We should expect a tough year ahead, with tighter access to credit, but we shall find solutions for this situation and continue helping Brazil. The challenge is knowing how we can continue expanding agriculture within a structure in which the State will be less present with fewer benefits and less financing coming from the government. We will have to cut financial and bureaucracy costs to get access to cheaper capital. Thus, Brazil needs to review the rules governing agricultural financing. Another point is the opening up of new markets – 2017 is a year that will see an expansion in international trade. We have the competence, we are improving the quality of our products, and this will make us more competitive. We have new technologies. What we really have to do is transform producers into farm entrepreneurs. This involves education, guidance, and planning.

LAERCIO GIAMPANI, DIRECTOR-GENERAL OF SYNGENTA BRAZIL

The shortage of credit available to producers has forced them to review their investments in technology. It is important to note that despite the unfavorable scenario, Syngenta has maintained its investments in research & development. We launch eight soybean varieties annually, all providing major increases in yield. We can report an increase in the market for seeds because we have invested in this, with a focus on achieving gains in yield and profitability for producers. We believe there will be more favorable weather and economic conditions and expect growth in business. The level of investment in biotechnology is set to increase, stimulating the seeds market. And our planning factors in this issue.

LAIR HANZEN, PRESIDENT OF YARA BRAZIL AND SENIOR VP OF YARA INTERNATIONAL

This year exceeded expectations for the fertilizer segment. Up to October, according to data from the National Association for Fertilizer Spreading, fertilizer sales hit record highs nationwide, with volumes up by around 10% on 2015. Our perspective is very good, chiefly owing to the trading relationship that remains attractive for producers. The forecast is that the coming year shall remain favorable with an increase in global demand for food. It is hard to envisage world food production without Brazil. According to the Food and Agriculture Organization (FAO) of the United Nations, in less than 10 years Brazil will become the largest food producer on the planet, ahead of the U.S. In order to fulfill this mission, we need to upgrade production in the Brazilian fields, harvesting more from each pocket of land. Fertilizers are currently responsible for almost half of world food production. Therefore, we recognize that our mission here is essential and shall continue investing to support Brazilian agribusiness.

FÁBIO MEIRELLES ANALYZES

THE PERFORMANCE OF AGRIBUSINESS

The president of the Federation of Agriculture and Livestock of São Paulo State (Faesp), Fábio Meirelles is one of the most emblematic voices in Brazilian agribusiness. Representing the entity since 1975 with numerous achievements to his name, such as the creation of Senat, Meirelles’ trajectory melds with the history of São Paulo agriculture. In an exclusive interview with Successful Farming Brasil, Meirelles goes over what we can expect from the sector in 2017.

SF – What are the prospects for agribusiness in 2017?

FM – It’s really hard to map out perspectives from one year to the next in this current stage. There are 13 million unemployed in Brazil. This is a calamity, a difficult situation. But, amid this critical phase, the only sector working at the same levels as before is agriculture. It is active, especially in São Paulo state. The positive outlook we have is that we won’t stop producing. With losses or otherwise, we’ll carry on working, won’t abandon the land and shall produce. The country is only not facing worse problems because we produce our own food, whereas in 1964 everything was imported.

SF – What is your assessment of the Harvest Plan?

FM  – The Harvest Plan is of huge importance, it defines the rules underpinning Brazilian agribusiness. What we can’t have is lack of budget or delay in releasing funds. Unfortunately, this is taking place not only in agriculture but across the whole economic sector.

SF – Does agribusiness need new public policies?

FM – We always back policies that can boost production and increase yields. Yet, clearly, the government will examine the risks, the budget, and its own needs.

SF – What have been the achievements of Brazilian agribusiness?

FM – In the past, coffee was the national driving force. A single product sustained Brazil’s development. But a magnificent evolution took place. This evolution was so fantastic that we built up a new agriculture and livestock system and animal and plant health system. Soybeans are very important, as are corn, sugarcane, and coffee. Agriculture and livestock is saving the day.
   We are the world’s biggest water conservers. Crop-cattle raising integration is a reality. We currently have around 90 million hectares of farmable land. This is because cattle-raising has passed 50 million hectares over to agriculture without loss. Today, production (beef cattle] can move from 1.3 head per hectare to 3 head for cattle-raising.

SF – And ambitions for the future?

FM – We have to strengthen our agri-industry. We can no longer sell our product by the ton, we have to sell it by the gram. This means that we have to continue to add value to agricultural and livestock products. Rather than take tomatoes to sell in the city, growers can refine products like tomato sauce on the farm itself. I advocate processing of produce and creating conditions conducive for easier sale.

SF – What is your view regarding producers’ level of expertise?

FM – Senar has issued almost 4 million certificates in São Paulo. Farmers are far more intelligent and capable than you might think. The man from the field is wise. He has the expertise. He created the agriculture and livestock farming structure. We cannot overlook the value of men from the field, they have great pride in their profession.

Economic diversification through agriculture yields positive results -Presidency

The Federal Government has stated that its efforts to revamp the economy through agriculture, have started yielding positive results.

Senior Special Assistant on Media and Publicity to the President, Garba Shehu, who made this claim in Abuja affirmed that increase in the volume of rice production and processing across the country was already saving the country a lot of foreign exchange.

Shehu noted that due to the country’s growing rice production stimulated by the Central Bank of Nigeria’s decision to deny foreign exchange for rice importation,  “parboiled rice mills’’ in some Asian countries were shutting down production.

“Five of such mills in Thailand servicing Nigeria have stopped production due to the withdrawal of our patronage,” he said.

The presidential spokesperson informed that government was watching with keen interest the growing investment in rice milling by the private sector and would continue to encourage the Ministry of Agriculture on such efforts geared towards increased productivity.

Also speaking on increased involvement in agriculture, Garba expressed that the revitalisaton of the agricultural sector was bringing about other socio-economic changes in the country.

“A recent survey in two urban areas in Jigawa state, the capital Dutse and Kiyawa showed that jobless young men are migrating from motorcycle taxi, achaba to farming. In Kiyawa, it takes a long wait to catch a motorcycle taxi because they are rapidly disappearing. The young men are moving to the farms. These are development issues in the country that our media should pay attention to”, he said.

He however informed that President Muhammadu Buhari will not be launching the Presidential Fertiliser Initiative next week as was being speculated. This he noted was to allow the production processes take a have a solid foundation before the launching.

Production of the first batch is expected to be completed by the end of March.

Photo Tell: AfDB President, Akinwumi Adesina, Awarded Honorary Doctor of Science and Management at FUTA’s 28th convocation

  

CHI FARMS KICKS OFF TRAINING FOR 1000 FISHFARMERS

Chi Farms Ltd has successfully concluded the training and certification of a pilot group of smallholder fish farmers. A group of 22 women was trained in ‘Best Practices in Professional Fish Farming’ at one of Chi Farm’s catfish hatchery sites in Sagamu, Ogun State.

The Aquaculture Client Focus Team of Chi Farms trained the women in areas such as pond preparation, water management, record keeping and fish farming as a business.

Chi Farms also signed Partnership Agreements with all fish farmers to assure supply of high quality catfish juveniles, quality fish feed, and continous technical support. Furthermore, the pilot group will cooperate with the agriculture team of Diamond Bank Plc. that provides working capital finance for the farmers.

The pilot group are the first 22 farmers out of 500 farmers in the South and 500 farmers in the North of Nigeria that Chi Farms will partner with under a USAID supported technical assistance program. The objective of the program is to contribute to food security in Nigeria by increasing the local production of affordable food.

Dr. Johannes Flosbach from Chi Farms states: “We have visited hundreds of fish farmers in the last months and observed that most of them have pond infrastructure available. Yet, most of the ponds are not in use because farmers are short of working capital, or possibly do not have the professional knowledge to manage catfish farming in a profitable matter.”

As part of the program, Chi Farms will also buy back table size catfish from associated farmers and make it available in major markets. “The quantities of catfish we produce and supply to local markets under this program will measurably increase availability and affordability of food” says Martin Middernacht, Executive Director at Chi Farms Ltd.

The project is supported by the United States Agency for International Development (USAID). In return Chi Farms has committed to conducting significant investments into the expansion of its feed milling and catfish hatchery capacities.