Week of July 9-13 Archive
13 12 10 9
July 13
WENDY’S THE LATEST GESTATION STALL DOMINO---Wendy’s International, Inc., announced Thursday a move it says “has strengthened its animal welfare guidelines” by giving preferential buying to its pork and chicken suppliers who improve systems for humane animal welfare. This includes preferences to pork producers who do not use gestation stalls and poultry processors who use “controlled atmosphere stunning.”
Wendy’s stated that “a recent trend in the pork industry is the elimination of single stalls or crates that house pregnant sows, allowing the hogs to freely move around.” Currently, at least 10 percent of Wendy’s pork products are from hogs not raised with the use of gestation stalls. Wendy’s said its goal is to reach 20 percent by the end of 2008 and continue to increase over time. Wendy’s is encouraging suppliers to eliminate gestation stalls and will give preferential buying to suppliers adopting these plans. Progress will be monitored through Wendy’s ongoing animal welfare reviews.
Wendy’s also said it will prefer the use of new stunning methods in the poultry industry. It said an emerging technology is the use of controlled atmosphere stunning (CAS) systems. In processing plants using CAS, poultry receive a mixture of gases that renders them unconscious prior to processing. CAS systems are used in Europe and by some U.S. suppliers growing turkeys.
“We believe these actions will lead our suppliers and others in the pork and chicken industry to continue to identify improved methods of handling animals prior to processing,” said Tad Wampfler, Wendy’s senior vice president of supply chain management. “These actions continue to demonstrate our long-term commitment to the principles of humane animal treatment.”
- Wendy’s News Release
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USDA ISSUES JULY WORLD PRODUCTION REPORT---The Agriculture Department on Thursday issued its July estimates for world crop production. The report forecast 2007-2008 world corn production at 777 million metric tons, 9 million larger than last month and 11 percent above last year. World wheat production was forecast at 612 million metric tons, up 2 million from the June report and 19 million or 3.25 percent above last year. World soybean production was forecast at 222.1 million metric tons, 14 million below 2006-2007 and 3.3 million below last month. World cotton production is forecast at 116 million bales, essentially unchanged from last month.
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USDA ANNOUNCES BEE RESEARCH ACTION PLAN---The Agriculture Department announced Thursday that researchers have finalized an action plan for dealing with colony collapse disorder (CCD) of honeybees.
"There were enough honeybees to provide pollination for U.S. agriculture this year, but beekeepers could face a serious problem next year and beyond," said Gale Buchanan, USDA’s under secretary for research, education and economics. “The action plan provides a coordinated framework to ensure that all of the research that needs to be done is covered in order to get to the bottom of the CCD problem."
The action plan coordinates the federal strategy in response to CCD. It addresses four main components: (1) survey and data collection needs; (2) analysis of samples to determine the prevalence of various pests and pathogens, exposure to pesticides or other unusual factors; (3) controlled experiments to carefully analyze the potential causes of CCD; and (4) developing new methods to improve the general health of bees to reduce their susceptibility to CCD and other disorders.
- CCD Action Plan
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U.S. BEEF BACK ON STORE SHELVES IN SOUTH KOREA---U.S. beef is on the shelves in South Korean stores for the first time in three years. Lotte Mart, a major discount outlet store in the country, is stocking its shelves with U.S. beef, which will cost consumers about 50 percent less than domestic product. The company will sell about 40 tons of U.S. beef produced by Swift & Co. at its 53 stores. South Korea imposed a ban on U.S. beef in 2003 due to concerns about bovine spongiform encephalopathy. The first shipment of U.S. beef allowed into the country since the ban was lifted arrived in April.
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July 12
RETAIL FOOD PRICES UP 4 PERCENT IN SECOND QUARTER---Retail food prices at the supermarket increased slightly in the second quarter of 2007, according to the latest American Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 basic grocery items in the second quarter of 2007 was $42.95, up about 4 percent or $1.61 from the first quarter of 2007.
Of the 16 items surveyed, 14 increased, one decreased and one stayed the same in average price compared to the 2007 first-quarter survey. Compared to one year ago, the overall cost for the marketbasket items showed an increase of about 8 percent. Regular whole milk showed the largest quarter-to-quarter price increase, up 34 cents to $3.46 per gallon. Sirloin tip roast increased 27 cents to $3.99 per pound; pork chops increased 22 cents to $3.63 per pound; ground chuck increased 20 cents per pound to $2.85.
Although milk and eggs have been included in the AFBF quarterly marketbasket since the survey was initiated in 1989, volunteer shoppers recently began tracking retail prices for different types of these staples. For the second quarter of 2007, shoppers found the average price for a half-gallon of regular whole milk to be $2.22. The average price for a half-gallon of rBST-free milk was $3.01, 36 percent higher. The average price for a half-gallon of organic milk was $3.65, 64 percent higher. The average price for one dozen regular eggs was $1.56. The average price for “cage-free” eggs was 85 percent higher at $2.89 per dozen.
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BRAZIL FILES WTO DISPUTE CLAIM AGAINST U.S. FARM SUBSIDIES---Brazilian officials on Wednesday filed a request for World Trade Organization consultations regarding what they allege are excessive and illegal subsidies provided to U.S. farmers. The request by Brazilian officials is the first step in the dispute process.
A 60-day time clock has been started in which Brazilian and U.S. officials are to attempt to come to agreement regarding the allegations. If Brazil and the U.S. are not able to agree on how to resolve the issue, Brazil could request the formation of a WTO dispute panel to consider its complaint.
Brazilian officials recently pushed the U.S. to cap overall trade-distorting farm subsidies at $11 billion annually. U.S. officials said that figure is not acceptable, but a cap of $17 billion would work.
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FDA BEGINS DETAINING CHINESE AQUACULTURE PRODUCTS---The Food and Drug Administration recently began detaining all shipments of farm-raised aquaculture products from the People’s Republic of China until shipments are proved free of unapproved drug residues and other adulterants.
For more than a year, AFBF has been communicating its concern about the safety of these products to the FDA, the Office of the U.S. Trade Representative and select members of Congress. AFBF’s initial concern about this issue arose regarding imports from Vietnam, which has an aquaculture industry similar to that in China.
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July 10
USDA DONATING $50 MILLION IN SURPLUS COMMODITIES---The Agriculture Department is donating about $50 million in government-owned commodities in bulk form to food processors that will turn them into agricultural products for distribution through domestic and international food aid programs. Corn, cotton, soybeans and wheat will be exchanged for processed products including vegetable oil, flour and meats, which should help the U.S. meet growing demand for food assistance.
The commodities that will be donated were acquired by USDA prior to this year through forfeiture under the Marketing Assistance Loan Program. Additional commodities acquired this year may be included in the program as well, according to USDA.
Most of the processed food products will go to feed the needy in the U.S.; about 20 percent will be distributed overseas through the McGovern-Dole International Food for Education and Child Nutrition Program.
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---ETHANOL PRICE DECLINE MAY BE ENDING---Industry analysts are predicting the year-long decline in the price of ethanol will soon end. The cost of ethanol dropped 43 percent over the past year. The average cost of ethanol was $2.20 per gallon last week, down from its 2006 high of $3.98.
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July 9
AFBF: CORN PRICES HAVE SMALL IMPACT ON HIGHER FOOD COSTS---The “food versus fuel” issue is one of rhetoric, not reality, according to an American Farm Bureau Federation economic report released today. Corn demand to make ethanol has little to do with the recent rise in food prices, said the organization, instead weather and high energy costs are more to blame.
AFBF said that nearly all the evidence points to factors other than ethanol demand, including an early freeze that zapped fruits and vegetables, low world supplies of wheat, milk producers’ cutting back on production in response to last year’s low prices and the rising cost of energy.
“There is little evidence that any food category has been affected by higher corn prices in any significant manner,” said AFBF economist Terry Francl.
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---HOUSE AG COMMITTEE RELEASES CHAIRMAN’S FARM BILL MARKUP---On Friday, several documents that will be used by the full House Agriculture Committee during markup of the 2007 farm bill were released. The committee is scheduled to meet July 17 to start considering the legislation. The full House could consider it as early as July 26, according to news reports.
In related news, late last week Agriculture Secretary Mike Johanns said he was content with the pace of the farm bill development process, although others would prefer a speedier timeline.
AFBF is in the process of evaluating the draft legislative language. Changes are expected in crop insurance as well as target prices.
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---WTO TRADE RULING ON COTTON EXPECTED JULY 20---The World Trade Organization is expected to issue an interim ruling this month on whether the U.S. has done enough to reform its cotton program, following an earlier finding that U.S. support programs lower prices received by producers in other countries. The ruling may not be made public until U.S. and Brazilian officials have had a chance to review it.
The ruling is expected to cover marketing loans and counter-cyclical payments. If the final decision on the issue is in Brazil’s favor and the U.S. does not take action, Brazil could be allowed to apply trade sanctions.
The U.S. produces about 40 percent of the cotton that is exported around the globe.
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