NEWS
Coronavirus leads to price falls World food prices fell in February for the first time in fourth months due to a sharp fall in the export prices of vegetable oils partly driven by fears that the novel coronavirus (Covid-19) would slow global demand, the Food and Agriculture Organization (FAO) of the United Nations said on 5 March. The FAO vegetable oil index declined 10.3% from January, with international palm oil prices falling by even more on account of higher-than-expected output in Malaysia, a temporary drop in India's import demand and concerns over the spread of Covid-19. Bloomberg reported on 28 February that palm oil futures posted their steepest
IN BRIEF ARGENTINA: A soyabean export tax based on farm size is being proposed to increase revenue and reduce competition between commercial and small-scale producers, according to a 5 March USDA Agricultural Information Network report. “We are applying the concept of social equality, that export taxes are rising for those with greater ability to pay, and there will be a benefit for less well-off producers," said Luis Basterra, Argentina’s minister of agriculture, livestock and fisheries. The USDA said there were concerns that the government might be trying to prevent unified farm resistance by dividing groups by farm size.
weekly drop (11.6%) since the global financial crisis in October 2008. It quoted Sime Darby Plantation as saying that demand from China had virtually "dried up" while Golden Agri-Resources said sales to China could slide by up to 20% due to weaker demand in the food sector. Malaysian palm oil futures jumped due to concerns that plantations had to shut for two weeks to comply with government orders to curb the spread of Covid-19, S&P Global Platts reported on 18 March. However, they fell again when the government confirmed that the industry could continue operations. There had been fears that the industry could face a potential loss in crude palm
oil supply of around 708,500 tonnes and that fresh fruit bunches would over-ripen, raising their free fatty acid levels. Meanwhile, Indonesian farming ministry officials said the country’s palm oil exports to China had declined due to a drop in demand, Reuters reported on 17 February. Data from Indonesian farming ministry officials showed that palm oil exports from Indonesia totalled 84,000 tonnes up to 17 February compared with 371,000 tonnes for February last year. “Coronavirus is having some impact on our exports,” said Kasdi Subagyono, the Indonesian farming ministry plantation director general. “But this is only for China. As a whole, exports have still increased.”
Cargill to launch plant-based patties
Cargill's soya and pea-based patties and ground 'meat' products marks its entry into the plant-based sector (Stock photo)
US agribusiness Cargill is launching plant-based hamburger patties and ground ‘meat’ products using soya and pea protein in April, Reuters reported on 27 February. The company’s entry into the plant-based sector challenges alternative meat firms such as Beyond Meat and Impossible Foods. Cargill said its patties and ground products could be made into tacos, spaghetti sauce or other dishes. Retailers would also be able to sell the products under their own labels. It planned to use its experience in handling ingredients and buying crops to produce the private-label products more efficiently than competitors, Reuters wrote. “We believe we’re uniquely positioned to be very effective and efficient in the supply chain,” said Elizabeth Gutschenritter, managing director of Cargill’s alternative protein team. Cargill’s portfolio would encompass both pea and soya formulations, she added. North American pea protein producer Puris was a supplier to both Cargill and Beyond Meat.
Chinese soyabean imports rise in first two months of 2020 China's soyabean imports increased 14.2% year-on-year in the first two months of 2020 following the US-China trade truce, Reuters reported on 3 March 2020. China bought 13.51M tonnes in January and February, up from 11.83M tonnes in the same two months last year, according to General Administration of Customs data. Tariffs exemptions had been granted to some Chinese crushers to import US soyabeans although measures to contain the novel coronavirus (COVID-19) had affected
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operating rates, Reuters said. At the same time, World Grain reported US agriculture secretary Sonny Perdue as saying that China had continued to make progress implementing its obligations under the US-China ‘phase one’ trade agreement signed on 15 January. Perdue said China had taken several additional actions to meet its commitments including updating facilities approved for dairy, seafood, fish oil and fish meal exports.
Under the phase one agreement, China has agreed to buy an extra US$200bn in US goods over the next two years, including US$32bn of US agricultural products. On 14 February, China halved tariffs on US$75bn worth of US imports, cutting levies of 5% and 10% on more than 1,700 items, including soyabeans, fresh seafood and poultry. Washington also halved tariffs on US$120bn worth of Chinese goods to 7.5% on the same day.
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19/03/2020 14:48:09
