Mehmet Tulbek: Welcome

June 6, 2006

Turkey Grain Update 2006

Report Highlights:
MY 2006 Turkish grain production looks lower now than it was estimated earlier. This is due to the lower yields because of hot and dry weather in May. MY 2006 wheat production is estimated at 18 MMT, barley production is estimated at 7.2 MMT, and corn production is estimated at 3.2 MMT now. Turkey is now estimated to import larger quantities of wheat (about 1.1 MMT) and corn (about 600 TMT) in MY 2006. It is too early to make any estimate on rice production. Turkish rice producers are very unhappy about the GOT decision to provide control certificates on paddy rice. The GOT is still not providing control certificates for milled rice.

Source: http://www.fas.usda.gov/gainfiles/200607/146208148.pdf

April 14, 2006

Turkey Oilseeds and Products

Report Highlights:
Post projects MY 2006 oilseed production at about 2.1 MMT, ten percent larger than MY 2005 production. Turkey continues to be a major importer of oilseeds and products to meet the demand of its large poultry and domestic crushing and refining industries. The recent interest to produce bio-diesel as a cheap source of renewable energy will also increase Turkish oilseed production and demand for oils. During MY 2004 Turkey imported a record amount of soybeans and meal, 1.1 MMT and 685,000 MT respectively, but MY 2005 total imports are expected to decline about thirty percent due to AI's affect on the poultry industry and large carryovers. U.S. soybean and meal continue to be the import market leaders with forty-eight and fifty-seven percent shares respectively in MY 2004 due to quality and availability of GSM 102 export credit program.

Source: http://www.fas.usda.gov/gainfiles/200604/146187469.pdf

March 24, 2006

EU-25 Oilseeds and Products
Changes in the EU oilseed situation - 2006

Report Highlights:
European crushers are substituting rapeseed for soybeans because of the higher crush margins for rapeseed, due to the biodiesel boom. Rapeseed oil prices are high in the EU but the prices for unprocessed rapeseed remain unchanged, as biodiesel boom has not yet directly affected EU farmers. Imports of soyoil and soymeal have increased over the last three years. Brazil is the largest supplier. Norway is the third largest supplier, however Norway's processed products are made from soybeans originating from Brazil.

Source: http://www.fas.usda.gov/gainfiles/200603/146187250.pdf

March 21, 2006

Malaysia
Oilseeds and Products

Report Highlights:
Malaysian soybean and soymeal imports rose 2.8% and 19% respectively in 2004/05. Argentina was the top supplier for both soybean (45% market share) and soymeal (92%). The U.S. took 24% of the soybean import market. Malaysia imported about 13 TMT of U.S. soymeal in 2004/05 the first time in almost 5 years. The outlook is brighter in 2005/06. The livestock sector as well as the food soybean sector is poised for further expansion. Both
soybean and soymeal imports are expected to increase by 11% to 625 TMT and 750 TMT respectively in 2005/06. Post expects the U.S. soybean to reach 150 TMT. Malaysia was the worlds largest producer and exporter of palm oil with CPO output reaching 15.2 MMT in 2004/05. A cyclical downturn in yields will result in a stagnation of CPO output in 2005/06.

Source: http://www.fas.usda.gov/gainfiles/200603/146187110.pdf

March 9, 2006

Protectionist Policies at Odds With Nigerias Growing Food Processing Sector

The food processing industry in Nigeria has challenges in securing ingredients. Nonetheless, demand for processed foods is growing despite a wide range of governmental protectionist practices that include bans on importing some products and high tariff rates for many items.

Even with a restrictive trade regime, food-deficient Nigeria imports about 65 percent, or an annual $2 billion worth, of the inputs used in its developing food processing industry.

Altogether, Nigeria bought $2.5 billion worth of agricultural imports in calendar 2004; the United States accounted for about $436 million worth, up a hefty 39 percent from the year before.

Why Look at Nigeria?
Nigeria remains primarily a mass sales market due to low consumer purchasing power. The development of the food processing sector has been influenced by sometimes competing factors: the protectionist policy of the government, a large and growing population, increasing health consciousness among consumers, increasing foreign direct investment and the governments export rebate. Since, 2002, the government reimburses 40 percent of the export value upon application and proof of export.

Trade barriers remain a significant factor in U.S. ingredient exports to Nigeria. However, Nigeria is one of 37 sub-Saharan countries benefiting from AGOA (the African Growth and Opportunity Act). These countries are eligible for U.S. trade capacity building programs that help develop regulations, policies, institutions and infrastructures that facilitate trade.

AGOA has already increased trade and investment between the United States and sub-Saharan Africa. U.S. agricultural exports to Nigeria have more than doubled since 2000. Nigerian agricultural exports to the United States have more than tripled in this same time frame, from $4.3 to $13.64 million.

Source: USDA-FAS Service
http://www.fas.usda.gov/info/fasworldwide/2005/12-2005/NigeriaFoodProcessing.pdf

March 8, 2006
Maximum levels set for Dioxins and PCBs in Food
and Feed

Maximum levels for dioxins in food of animal origin and all animal feed have been applicable since July 2002. At the time, no levels were set for dioxin-like PCBs due to the lack of sufficient data and scientific information. New data has become available since then, which resulted in the establishment of mandatory limits for the combined level of dioxins and
dioxin-like PCBs. As of Nov 2006, any food or feed in which the sum of dioxins and dioxinlike PCBs exceeds these maximum levels will not be allowed in the EU.

Source: USDA-FAS Attache Report
http://www.fas.usda.gov/gainfiles/200602/146176782.pdf

March 6, 2006
Turkeys 2006 Tariff Schedule has been amended

Turkeys 2006 Tariff Schedule (Import Regime) was published in the Official Gazette on December 31, 2005 and became effective on January 1, 2006. The 2006 Tariff Schedule, similar to previous ones, was prepared by the Foreign Trade undersecretariat and includes six lists and six appendixes. Most duty rates remained the same as last years rates. Duty rates for wheat, barley, corn, sorghum, sunflower seeds, crude sunflower oil, and soybean meal were raised in 2006. In addition to these changes, the duty will be raised seasonally for soybeans from all origins and will be reduced for some products from the EU and WTO member countries.

Source: USDA FAS Attache Report
http://www.fas.usda.gov/gainfiles/200601/146176522.pdf

February 24, 2006
As U.S. ethanol production expands and President Bush touts alternative energy sources to reduce dependence on imported petroleum, grain buyers around the world are wondering if U.S. farmers can produce enough to meet everyones needs.
In fact the USDA has predicted ethanol production will account for more U.S. corn than exports in 2007. The USDA estimates that U.S. corn exports will reach 2 billion bushels in the 2006/07 marketing year, while ethanol production will consume 2.15 billion bushels that year. However, U.S. corn importers have no need to worry. With near-record corn production in 2005 exceeded only by the 2004 crop the United States is positioned to remain a reliable source for international grain buyers for years to come as U.S. farmers improve production. In addition, distiller?s dried grains with solubles (DDGS), a co-product of the ethanol distillation process, is becoming a regular component of feed rations as feed mill operators and livestock producers become familiar with the nutritive properties of this feed ingredient. Ethanol production is expected to climb to 5.1 billion gallons this year and 6 billion gallons by 2007, according to the Renewable Fuels Association.

Source: US Grains Council

February 17, 2006
FDA issues whole grain guidance to manufacturers

The U.S. Food and Drug Administration issued draft guidance on what the term whole grain may include on February 15, 2006. AACC International was part of the teleconference. Barbara Schneeman, director of the U.S. Food and Drug Administration Center for Food Safety and Applied Nutritions Office of Nutritional Products, Labeling and Dietary Supplements, told teleconference attendees that it is the agencys hope that this guidance will assist manufacturers with what the FDA considers appropriate for food label statements. This in turn will allow consumers to make nutritional choices on a term that is being used consistently by manufacturers. Guidance for Industry and FDA Staff: Whole Grain Label Statements can be found at http://www.cfsan.fda.gov/~dms/flgragui.html. There is a 60-day comment period.

The agency clarified that it considers whole grain to include cereal grains that consist of the intact, ground, cracked or flaked fruit of the grains whose principal components - the starchy endosperm, germ and bran - are present in the same relative proportions as they exist in the intact grain. This definition is nearly the same as AACC Internationals definition of Whole grains shall consist of the intact, ground, cracked or flaked caryopsis, whose principal anatomical components - the starchy endosperm, germ and bran - are present in the same relative proportions as they exist in the intact caryopsis? that was approved in 1999. The FDA outlined that such grains may include barley, buckwheat, bulgur, corn, millet, rice, rye, oats, sorghum, wheat and wild rice. At this time they do not consider products derived from legumes, oilseeds and roots as ?whole grains.

The document outlined what type of statements may be used and that statements such as ?excellent or good source? are not appropriate at this time. Manufacturers should make factual statements such as ?10 grams of whole grains.?

Providing scientific information on whole grains has been a long time activity for AACC International. Currently one of our main activities is the Task Force on Whole Grains led by Julie Miller Jones. This group has been working with the USDA and appraising FDA to assure that the federal government?s recommendations are uniform, represent sound science, and guide consumers effectively. The task force is finalizing a letter for the FDA to communicate our current activities. Two major points of the letter are 1) that whole grains are a dietary substance, not a category and 2) that whole grains are not a surrogate for fiber. Watch for a copy of this letter on AACCnet. In addition, AACC International will be submitting comments regarding the whole grain draft guidance document. If you would like to submit comments or be part of this process, contact Susan Kohn, Director of Membership and Communication.

AACC International also has four subgroups that are supplying information to the task force and looking at creating additional definitions and analytical methodology. The subgroups focus on corn nixtimalization, barley pearling, bulgur processing and bioactive components. Watch for more information on these subgroups in the next member news capsule.

Source: AACC International

October, 25 2005

EU-25
Oilseeds and Products
Imports of GM rapeseed and rapeseed oil for Biodiesel 2005

Report Highlights:
Imports of Genetically Modified (GM) organisms and products of GM organisms are strictly regulated in the European Union (EU). However, the biotech regulations for food and feed do not apply for products used for direct technical use, such as biofuels.

Source: http://www.fas.usda.gov/gainfiles/200510/146131332.pdf