Farm production has surged just about every place on the planet in the past 40 years except in Africa. Getting it right there could end the food crisis

27.06.2008 723 views
Every four years, some Washington types decamp for the Midwest to praise the hard work, common sense, and wisdom of Iowa voters, who they hope, not incidentally, will recognize those same qualities in themselves. The presidential candidates class of 2008 collectively racked up more than 1,940 stops in the Hawkeye State this year, giving politicians and journalists alike ample time to view the state's marvelously fertile--and, at times, damnably vast--fields. After three hours of staring at the nearly unbroken stretch of corn and soy fields that lie between Des Moines and Dubuque--some 90 percent of Iowa's land is devoted to agriculture--it is hard to imagine that the world could possibly have a food shortage. Twenty minutes in a grocery store makes the shortfall more believable. U.S. food prices are up 5 percent in 12 months; global cereal, 92 percent. A lot of factors, including trade policies, energy costs, biofuels, and market speculation, have contributed to the booming prices, but the fundamental problem is that there is not enough food. In seven of the past eight years, the world used more grain than it produced; now, the cold laws of supply and demand have come into play. Until the supply of food increases or, less likely, the demand for it decreases, everybody--Iowa farmers, Cambodian fishermen, Kenyan millers--will be paying more for their daily bread. But they won't be paying the same price. For Americans, the poorest of whom spend about a fifth of their income on food, expensive groceries mean cutbacks, coupons, and food banks. For the 2.5 billion people in the world who live on less than $2 a day, pricey food means inadequate nutrition, poorer health, and less money for school. For the nearly 1 billion people whose daily income is less than $1, it brings starvation to the door. Hungry people are angry people. They have taken to the streets to protest in 30-odd countries so far, and governments are rightfully nervous. "If not properly handled, this crisis could cascade into multiple crises affecting trade, development, and even social and political security around the world," U.N. Secretary-General Ban Ki-moon warned. When food crises arise, the world usually responds with generous sacks of wheat and cups of porridge. This time, it's taking a new approach. At the food security conference in Rome this week, donors pledged billions of dollars for both emergency aid and long-term investments. (See story, p. 39.) The most important news, though, was lost against the summit backdrop: An Africa Steering Group convened by Ban Ki-moon (members are the heads of the United Nations; the African Development Bank; the African Union; the European Commission; the International Monetary Fund; the Islamic Development Bank; the Organization for Economic Cooperation and Development; and the World Bank) agreed on an $8-billion-a-year call to help African governments double crop production through a green revolution and a $4-billion-a-year call to roll out national nutrition programs for children. If the plans stick--and that's a big if--the response to this food crisis might result in other parts of the world looking something like the food system in Iowa today. It's easy to see the well-fed children and ample fields of grain in Iowa; it's harder to see the decades of investment underlying the two. America's food safety net was created in the 1970s, after Robert Kennedy's 1968 poverty tour and a CBS documentary on hunger in America brought skeletal children into the country's living rooms. Congress was shocked and shamed into making food stamps and school lunches available to all who needed them, and it created the Special Supplemental Nutrition Program for Women, Infants, and Children, better known as WIC.

Iowa benefited from decades of investment in rural infrastructure, agricultural extension services, university research, and nutrition assistance efforts such as food stamps and the WIC program. Africa would benefit, too.

In Iowa, four in 10 infants are enrolled in WIC; one in three children can get free or discounted lunches at school; and one in 10 residents receive food stamps. The massive, $307 billion piece of legislation that Congress passed in May is called the farm bill, but two-thirds of it pays for this food assistance. The rest of the bill, of course, provides for the farm safety net. Iowa produces more corn, soybeans, and hogs than any other state in the country. That bounty comes partly from rich soil and hard work, and partly from decades of investment. Most of the state's commodities reach their markets via the interstate highway system built in the 1950s with federal funds, but the canals and railroads constructed a century earlier first made farming profitable. When the Crimean War broke out in 1853 and Britain needed a new source of wheat, Iowa grain prices jumped because federal, state, and private dollars had created transportation systems to ease delivery of commodities from the center of America to ports and thence to foreign markets. Drainage tiles, laid by farmers with occasional help from the federal government, lie beneath a quarter of the state's farmland. Yields also increased because of public and private research on seeds, fertilizers, farming techniques, and equipment. Federal and state dollars finance agricultural extension offices connecting farmers to Iowa State University, and federal subsidies and crop insurance carry farms through bad years. In return for those investments, Iowa farms contributed $6 billion to the state economy last year.

Food for Today

In parts of rural Kenya, the hungry season comes every year. In January, farmers sell the last of their maize to pay school fees and purchase household goods and seeds for the next season. The hungry season begins when the harvest money runs out in the spring, and it lasts until June, when the first vegetables and legumes come in. In theory, the farmers should be benefiting from today's high food prices. In practice, they don't have anything to sell. They're buying back their own crops at double the original price just to put food on the table, and they don't have the money to buy the vegetable seeds they need to plant if the hungry season is to end. "At harvest, the farmers have an acute cash shortage, so they sell away even what they need for their family food," said Eusebius Mukhwana, the executive director of the Sustainable Agricultural Center for Research, Extension and Development in Africa. "In these hungry months, people have one meal a day, or less." The World Food Program already provides school lunches to 1.2 million Kenyan children and food rations to 1 million Kenyans affected by drought and the recent ethnic violence there. But the WFP is the global first responder, not the global food stamp program. It can't reach all of the people suddenly facing a hungry season. Before the year began, the WFP planned to feed 73 million of the estimated 860 million hungry people worldwide on a $2.9 billion budget. With rising food and fuel costs, nearly 1 billion people now face hunger, and the WFP has been forced to increase its budget to $4.4 billion to reach 79 million people. Even with more money, the WFP is struggling with the chaos in the commodities markets. Forty countries have established export restrictions that keep food prices down for their people but drive them up, and create supply woes, for everyone else. In Kenya, the WFP lost out on a 4,000-ton food shipment for Somalia after prices rose so fast that the Kenya Cereals and Produce Board could no longer afford the contract price. Pakistan's export ban and a new Iranian export tax together put 43,000 tons of wheat that the WFP intended for Afghanistan out of reach. "There's not really a complete shortage if you're willing to pay the price," said Nicole Menage, the WFP's procurement director, but "it's more and more challenging to find cost-efficient sources within all of these export control measures." (In Rome, U.N. chief Ban fervently called on countries to roll back their export restrictions; so far, only India has heeded his plea and sold rice to the WFP.)

Women and Children

The WFP's bigger problem, though, is finding a way to reach the newly hungry. "This is not a standard emergency, throw-food-at-it kind of issue," said Julie Howard, executive director of the Partnership to Cut Hunger and Poverty in Africa, a Washington-based group that was founded in 2000 to push for more rural and agricultural assistance to the continent. "Urban areas are being hit, and we don't, in many cases, have the mechanisms to target and deliver assistance effectively. In many countries, something like a food stamp program needs to be put into place, but it's tough to set that up." The WFP is considering substituting cash and vouchers for food rations in some areas. If there's food on the shelves but families can't afford it, vouchers are cheaper than trucking staples in, and they support, rather than undermine, local farm markets. The World Bank has announced $1.2 billion in loans and grants to help countries build food safety nets quickly, as well as get seeds and fertilizer to farmers so they can plant now. America's $1.2 billion budget for international food aid is the biggest in the world, but nearly all of that money is used to purchase commodities here and ship them overseas on U.S. carriers. The WFP and other groups then distribute the food, or, in the case of some nonprofits, sell it to finance development projects. As a result, America gets criticized because its aid floods local markets and loses about half its value before reaching the hungry. President Bush asked Congress to convert a quarter of the $1.2 billion into cash, but he got only a $60 million pilot program in the farm bill. He had more luck with an emergency request this spring: The Iraq war supplemental, as passed by the House and Senate, gives the U.S. Agency for International Development $1.245 billion for the food crisis and allows it to spend $175 million outside the country. The Africa Steering Group's call for a $4 billion investment in nutrition programs is based on a landmark child-malnutrition series published earlier this year in The Lancet, a British medical journal. The research, funded in part by USAID, found that children who miss critical nutrients in utero through age 2 suffer irreversible physical and cognitive damage and that 3.5 million mothers and children die each year as a result of that malnutrition. It also pointed out that 80 percent of the world's malnourished children live in just 20 countries, which means that a targeted prevention program for children, like WIC in America, could have a substantial impact. "If you want to get through this crisis with a minimum of death and disability due to hunger, new money ought to be focused on babies and pregnant women," said David Beckmann, president of Bread for the World, a nonprofit Christian group that lobbies to end hunger at home and abroad. The Lancet's findings rattled food and children's aid groups, which were collectively labeled "fragmented and dysfunctional" by the study's authors, and everybody is scrambling to ramp up or revamp nutrition programs for children younger than 2. USAID is modifying its food aid guidance to reflect the research, and the World Food Program is developing a broad initiative based on the study in conjunction with UNICEF, the World Health Organization, and the World Bank.

Out of Favor

While governments and global institutions work on the immediate problem of feeding the hungry, they're also looking at ways to prevent the next crisis by increasing food production in Africa. "From the beginning, policy makers have been talking about short-term and long-term responses," said Max Finberg, director of the Alliance to End Hunger, an umbrella group of anti-poverty organizations and institutions. "That's what makes this different from famine crises of the past, where the knee-jerk response has been to meet the immediate need." By absolute numbers, most of the world's hungry--some 527 million people--live in Asia, followed by 213 million in Africa, according to Food and Agriculture Organization statistics. But Asia's total population is far larger, and the proportion of that population that goes hungry has been falling steadily, from 45 percent in 1969 to 16 percent today. The green revolution that began in the 1960s tripled the continent's crop yields, and Asia's current food woes, outside of North Korea, stem more from poverty than production. Africa, on the other hand, does have a food production problem. A third of the population still goes hungry, and African crop yields stagnated at the same time that yields in the rest of the world were surging. Last year, the average acre of corn produced 171 bushels in Iowa and just 21 bushels in Africa. African soils are poor, but that's not the reason for the gap. Agriculture fell out of favor before the green revolution reached the continent. In the late 1980s, most of the developed world looked at global food surpluses--created partly by technology and partly by government subsidies--and decided that agriculture in poor nations was no longer worth the investment. "The idea that developing countries should feed themselves is an anachronism from a bygone era," John Block, President Reagan's Agriculture secretary, said in 1986. "They could better ensure their food security by relying on U.S. agricultural products, which are available in most cases at lower cost." Global development assistance for agriculture fell from a high of $8 billion in 1984 to $3.4 billion in 2004, of which Africa received $1.2 billion. American aid to African farmers fell from $500 million in 1988 to less than $100 million in 2006, according to the U.S. Government Accountability Office. "It isn't that people didn't believe that agriculture was important; other matters just crowded it out," said Peter McPherson, who ran USAID in the 1980s and now serves as president of the National Association of State Universities and Land-Grant Colleges. "Giving a child medicine or food is more appealing and measurable to Congress and other donors."

Waking Up to Africa

After a decade on the sidelines, African agriculture started edging back into discussions a few years ago. The continent's poverty and hunger numbers were stubbornly refusing to budge, and development groups suddenly remembered that it was agricultural growth that powered the industrial revolutions in England, America, Japan, China, India, Vietnam, and most of the rest of the world. Land and labor are the two resources that most countries have in cheap abundance, and combining them more efficiently has been the key to advancement since Adam and Eve were booted out of Eden. In 2001, Andrew Natsios took over USAID and spent a good chunk of his five-year tenure urging Congress to let him spend more money on agriculture. In 2002, the World Bank recognized agriculture's central role in rural development and reversed a decade-long decline in lending to the sector. In 2003, African heads of state agreed to devote 10 percent of their national budgets to agriculture and to swiftly implement a Comprehensive Africa Agriculture Development Program, or CAADP. In 2004, President Bush created the Millennium Challenge Corp., which has given half its money--$2.8 billion--to agriculture, mostly to build the roads, bridges, and ports needed to connect farmers and markets. In contrast with the Millennium Challenge, which can list some accomplishments, the USAID, World Bank, and CAADP efforts have been more about inspiration than implementation. Congress declined Natsios's requests for more agriculture money. ("USAID filed five annual budgets with more funding for agriculture and most of the money was cut out ... so it is not because the agency has not asked," a bitter Natsios told a House committee last month.) The World Bank recognized the importance of agriculture, but it didn't boost lending much until this year. The CAADP offered a framework for designing and implementing national plans, but countries did better on the former than the latter: Nearly every African nation has plans and a few projects identified, but just four agriculture ministries managed to wrangle the promised 10 percent of the budget from their governments. But all three efforts, and quite a few more, gained new life with the recent rise in food prices. USAID finally got its money--$150 million--in the emergency Iraq supplemental. Robert Zoellick took over at the World Bank last year and immediately put African agriculture on the bank's list of priorities. Aid organizations are tripping over themselves in their rush to declare their support for the CAADP, whatever its content might turn out to be. Most important, Ban, Zoellick, and others have gotten behind a multibillion-dollar effort to launch, through the CAADP framework, an African green revolution.

Seeds, Soils, and Markets

The keys to the green revolution in Asia were high-yield wheat and rice seeds, and fertilizer. The Rockefeller Foundation, together with the Ford Foundation, paid for the seed development, and USAID and host governments paid for the fertilizer. The result transformed the continent. When the green revolution took off in India and Pakistan, the subcontinent already had the basic infrastructure: massive irrigation systems built over generations, railways constructed by British colonialists to connect farms and markets, and teams of plant scientists trained in universities. Africa, on the other hand, is virtually starting from scratch. Less than 10 percent of its farmland is irrigated. The rest depends on rainfall that is increasingly erratic because of climate change. Roads and railways connect mines, not farms, to markets, and funding for agricultural education and research is minimal. On top of that, Africa's soils are ancient. The fertile topsoil that nourishes Iowa's corn is a legacy of centuries of prairie cover untouched by human hands, and 150 years of farming have already eroded half of it. In Africa, much of the land has been exposed to cultivation for centuries. To cope with the depleted soils, African farmers traditionally rotated their crops, allowing individual plots to lie fallow for years before they were planted again. But as the continent's population grew and the size of plots shrank as they passed through successive generations, farmers could no afford to let a field go unused. As a result, farmers have essentially been mining their soils.

Asia's green revolution is harder to duplicate in Africa. Africans rely on far more crops than just wheat and rice, and the vast continent's soil is poorer and its weather more temperamental.

Everywhere else in the world, fertilizer replenishes the nutrients demanded by constant crop production. In Africa, sparse roads and suppliers in rural areas, and a transcontinental infrastructure that makes it hard to get imported goods to landlocked nations, drives fertilizer costs up by 200 to 600 percent, putting it out of reach for many farmers. African fields receive just 5 to 10 percent of the average amount of fertilizer used on other continents. The Rockefeller Foundation spent $20 million and 15 years trying to solve the African soil problem without using fertilizer before giving up in 2000. "You can develop strategies that work on the research station and even in a test village, but they're not adopted by farmers because they require too much labor," said Gary Toenniessen, Rockefeller's managing director. "You have a woman farmer who's got to fetch water, watch kids, and do umpteen other things, and the option of growing some nitrogen-fixing trees that she'll cut the limbs of and bring in as a source of nitrogen just doesn't reach her priority list." What does work, however, is combining a little bit of fertilizer with a similar amount of organic replenishment from, say, manure, composting, or crop rotation. It's called Integrated Soil Fertility Management, and if there were markets and extension systems to sell the chemicals and teach the technique, many farmers could dramatically increase their yields with just a little more cash and labor. But most African market and extension systems collapsed in the 1980s and 1990s, when the World Bank and the IMF pressed countries to curtail government spending. The two institutions correctly believed that often-inefficient and corrupt government programs inhibited the development of a private sector. The problem was that the private sector didn't see much profit potential in subsistence farms, which account for about 60 percent of Africa's total.

Rockefeller Revisits

In 1999, when African agriculture was still the last item on the global agenda, the Rockefeller Foundation came to the rescue again. It doubled down on its Nairobi-based programs, giving them almost all of the foundation's agriculture budget. In 2001, Rockefeller decided to take a closer look at agricultural inputs and education. If Coca-Cola could profitably deliver bottles of brown sugar-water to every small village on the continent, there had to be a way for agriculturalists to reach farmers. The foundation funded programs in Kenya, Malawi, and Uganda to train and certify rural shop owners as "agro-dealers"--essentially agricultural suppliers--who then received credit guarantees so they could purchase supplies. These dealers processed nearly $900,000 worth of fertilizer and seeds in the first two years, and they rapidly expanded from there. One rural Malawian, Janet Matemba, sold $250,000 worth of seeds and fertilizer in 2007. "She does that by packaging seeds and fertilizer in small quantities and demonstrating new technologies behind the shop and in the community," said Akinwumi Adesina, who won last year's Yara Prize for an African Green Revolution for establishing Rockefeller's agro-dealer model. Like other dealers, Matemba provides most of the agricultural advice in her area. "The agro-dealers are beginning to fill some of the gap left by the demise of the public extension system," Adesina said. The certified agro-dealers soon created their own national associations for better financial and political bargaining. In 2005, when Malawi was facing another food crisis and decided to reverse more than a decade of World Bank advice by spending $50 million on fertilizer subsidies, it handed out coupons that farmers could redeem only at government stores. The agro-dealers associations complained vociferously, and the government relented, allowing redemption of the 2006 and 2007 coupons at public and private stores. Malawi nearly tripled its crop production and transformed hunger scares into food surpluses. The final element of Rockefeller's Africa program was plant research and development. The wheat and rice seeds for Asia's green revolution were developed by two Rockefeller-supported groups of national and international scientists. But Africans, unlike Asians, consume many more staple crops than wheat and rice, and Africa's growing conditions are more temperamental and varied: Seeds developed at the African Rice Center and the International Institute for Tropical Agriculture are often defeated by local soil conditions, water shortages, and pests. "In Africa, there's no such thing as one size fits all, and that's what international centers do," Toenniessen said. "What was lacking was the initial investment in building the capacity of the national programs to take what they get from the international research and adapt it to local programs." So instead of one center in Africa, Rockefeller supported a loose network of them. By financing local seed companies and 25 teams of African scientists at various national institutes, as well as sending agriculturalists to graduate school, it helped develop more than 100 new African crop varieties.

Alliance for a Green Revolution

On its own, Rockefeller's seven-year, $150 million Africa program was good, but it wasn't magical. African governments and other donors and researchers were also working on the problems, developing similar solutions and coming to the same basic conclusions: Crop research, fertilizer, rural credit, and functioning rural markets could go a long way toward feeding the continent's 213 million hungry people. That's not the end of the agenda, of course. It will take enormous investments in transportation, education, irrigation, and trade, as well as changes in tax policies, to unlock the potential power of African farmers. But a rural mother of four with just a few acres to feed her family has to start somewhere, and waiting for governments to get their acts together isn't a promising strategy. Rockefeller's program finally got the magic touch in 2005, when the Bill and Melinda Gates Foundation took a hard look at African agriculture development plans and the Rockefeller models for seeds, soils, and markets. The Rockefeller and Ford foundations catalyzed the green revolution in Asia. With enough money, could Rockefeller and Gates finally spark one in Africa? In 2006, with support from the Rockefeller and Gates foundations, the Alliance for a Green Revolution in Africa was launched. Its initial 10-year goal is eliminating hunger for 30 million people. Former U.N. Secretary-General Kofi Annan chairs the group; Amos Namanga Ngongi, the former deputy executive director of the World Food Program, is the president; and Akinwumi Adesina is the vice president. So far, AGRA has announced two initiatives: $150 million for seed improvements and $180 million for soil conservation. Proposals for water and rural markets are waiting in the wings. AGRA's deep pockets are helping to expand the earlier Rockefeller projects. In Kenya, for example, the alliance is expanding the number of certified agro-dealers from 243 to 1,800; it is funding Kenyan scientists working on cassava, sorghum, sweet potatoes, and maize; and, in a partnership with the Kenyan government, Equity Bank, and the International Food and Agriculture Organization, AGRA is providing fertilizer coupons to farmers and $50 million in credit for farmers and rural markets. AGRA's work and its money have attracted attention and new commitments. On May 29, the New Partnership for Africa's Development--a program formed in 2001 under the African Union--Japan, and AGRA announced a 10-year joint venture to double African rice production. AGRA is also using its wallet and influence to better coordinate agricultural aid. World Bank and GAO reviews of past agricultural investments in Africa heavily criticized a lack of concentration and coordination within and between aid agencies and governments. So the alliance is pushing African governments to use the Comprehensive Africa Agriculture Development Program to target aid to their "breadbasket zones," places where existing water, soil, infrastructure, and markets offer better production potential. AGRA is trying to persuade the international aid agencies to adopt the same focus. The idea is that once concerted investments in those zones bear fruit, governments can use the ensuing revenues to develop another spot in their country. "Any country you pick has those breadbasket zones, and then you spread it from there," Adesina said. The zone plan is gaining traction. On June 4, the heads of all three U.N. food agencies--the World Food Program, the International Fund for Agricultural Development, and the Food and Agriculture Organization--announced an agreement with AGRA to focus on the breadbaskets. America's Millennium Challenge Corp. is finalizing a similar agreement. Granted, nothing announced so far by AGRA, or anyone else, comes close to the $8 billion a year that the Africa Steering Group estimates Africa needs for a green revolution to take off, or, for that matter, the $4 billion it says is required simply for nutrition programs. But nobody ever claimed that food and farm infrastructure is cheap: America, after all, will spend $307 billion on its farm programs in the next five years. We call them investments. Corine Hegland, National Journal Magazine
25.10.2022

A Practical Method for Adjusting the Premium Rates in Crop-Hail Insurance with Short-Term Insurance Data

The frequency of hailstorms is generally low in small geographic areas. In other words, it may be very likely that hailstorm occurrences will vary between neighboring locations within a short period of time. Besides, a newly launched insurance scheme lacks the data. It is, therefore, difficult to sustain a sound insurance program under these circumstances, with premium rates based on meteorological data without a complimentary adjustment process.

18.10.2019

Malta - Vegetable production dropped 7% in 2018

Last year, Malta’s local vegetable produce dropped by 7% when compared to the previous year. The total vegetables produced in tonnes amounted to 58,178, down by 7% when compared to 2017. Their value too diminished as the total produce was valued at €30 million, down by 13% over the previous year. The most significant drop was in potatoes, down by 27% over the previous year. Tomatoes and onions were the only vegetables to have increased in volume, by 3% and 4% respectively but their value diminished by 9% and 24% respectively. The figures were published by the National Statistics Office on the event of World Food Day 2019, which will be celebrated on Wednesday. Cauliflower, cabbage and lettuce produce dropped by 10%, 3%, and 12% respectively. In the realm of local fruit, a drop of produce was registered here too apart from strawberries, which experienced a whopping increase of 58% over 2017. Total fruit produced in 2018 amounted to 13,057 tonnes, down by 1% when compared to 2017. The total produce was valued at €10 million, a 3% increase in value. Peaches produced were down by 35% and the 376 tonnes of peaches cultivated amounted to €0.5 million in value. Orange produce dropped by 10% and lemon produce dropped by 14%. There was no change in the amount of grapes produced and the 3,642 tonnes of grapes produced in 2018 were valued at €2.3 million. 70% of fruit and vegetables consumed in Malta is imported. The drop in local produce could be the result of deleterious or unsuitable weather patterns. Source - https://www.freshplaza.com

07.10.2019

USA - Greenhouse tomato production spans most states

While Florida and California accounted for 76 percent of U.S. production of field-grown tomatoes in 2016, greenhouse production and use of other protected-culture technologies help extend the growing season and make production feasible in a wider variety of geographic locations. Some greenhouse production is clustered in traditional field-grown-tomato-producing States like California. However, high concentrations of greenhouses are also located in Nebraska, Minnesota, New York, and other States that are not traditional market leaders. Among the benefits that greenhouse tomato producers can realize are greater market access both in the off-season and in northern retail produce markets, better product consistency, and improved yields. These benefits make greenhouse tomato production an increasingly attractive alternative to field production despite higher production costs. In addition to domestic production, a significant share of U.S. consumption of greenhouse tomatoes is satisfied by imports. In 2004, U.S., Mexican, and Canadian growers each contributed about 300 million pounds of greenhouse tomatoes annually to the U.S. fresh tomato market. Since then, Mexico’s share of the greenhouse tomato market has grown sharply, accounting for almost 84 percent (1.8 billion pounds) of the greenhouse volume coming into the U.S. market. Source - https://www.freshplaza.com

03.10.2019

World cherry production will decrease to 3.6 million tons

According to information from the USDA for the 2019-2020 season, world cherry production is expected to decrease slightly and amount to 3.6 million tons. This decline is due to the damages that the weather caused on cherry crops in the European Union. Even though Chile is expected to achieve a record export, world trade in cherries is expected to drop to 454,000 tons, based on lower shipments from Uzbekistan and the US. Turkey Turkey's production is expected to increase to 865,000. As a result of the strong export demand, producers continue to invest and improve their orchards, switching to high yield varieties and gradually expanding the surface for sweet cherries. More supplies are expected to increase exports to a record 78,000 tons, continuing its long upward trend. Chile Chile's production is forecast to increase from 30,000 tons to 231,000 as they have a larger area of mature trees. Between 2009/10 and 2018/19, the crop area has almost tripled, a trend that is expected to continue. The country is expected to export up to 205,000 tons in higher supplies. The percentage of exports destined for China has increased from 13 to almost 90% since 2009/10. China China's production is expected to increase by up to 24% and to amount to 420,000 tons, due to the recovery of the orchards that were damaged by frost last year. In addition, there are new crops that will go into production. Imports are expected to increase by 15,000 tons and to stand at 195,000 tons, as the increase in supplies from Chile will more than compensate for the lower shipments from the United States. Although higher tariffs are maintained for American cherries, the United States is expected to remain China's main supplier in the northern hemisphere. United States US production is expected to remain stable at 450,000 tons. Imports are expected to increase to 18,000 tons with more supplies available from Chile. Exports are forecast to decrease for the second consecutive year to 80,000 tons, as high retaliatory tariffs continue to suppress US shipments to China. If this happens, it will be the first time that US cherry exports experience a decrease in 2 consecutive years since 2002/03, when production suffered a fall of 44%. European Union EU production is projected to fall by more than 20%, remaining at 648,000 tons because of the hail that affected the early varieties in Italy, and the frost, low temperatures, and drought that caused a significant loss of fruit in Poland, the main producer. Lower supplies are expected to pressure exports to 15,000 tons and increase imports to 55,000 tons. Russia Russia's imports are expected to contract by 13,000 tons to 80,000 with lower supplies from Kazakhstan, Moldova, and Serbia. Source - https://www.freshplaza.com

09.08.2019

EU - 20% fewer apples and 14% fewer pears than last year

This year's European apple production is expected to come to 10,556,000 tons. That is 20% less than last year. It is also 8% less than the average over the past three years. The European pear harvest is expected to be 2,047,000 tons. This is 14% lower than last year and 9% less than the previous three seasons average. These figures are according to the World Apple and Pear Association, WAPA's top fruit prognoses. They presented their report at Prognosfruit this morning. Apple harvest per country Poland is Europe's apple-growing giant. This country is expected to process 44% fewer apples. The yield is expected to be 2,710,000 tons. Last year, this was still 4,810,000 tons. In Italy, yields are only three percent lower than last year. According to WAPA, this country will have an apple harvest of 2,195,000 tons. France takes third place. They will even have 12% more apples than last year to process - 1,652,000 tons. Pear harvest per country With 511,000 tons, Italy's pear harvest is much lower than last year. It has dropped by 30%. In terms of the average over the previous three seasons, this fruit's yield is 29% lower. In the Netherlands, the pear harvest is expected to be six percent lower, at 379,000 tons. This volume is still 3% more than the average over the last three years. Belgium has 10% fewer pears (331,000 tons) than last year. They are just ahead of Spain. With 311,000 tons, Spain who will harvest four percent more pears. Apple harvest per variety The Golden Delicious remains, by far, the largest apple variety in Europe. It is expected that 2,327,000 tons of these apples will be harvested this year. This is three percent less than last year. At 1,467,000 tons, Gala estimations are exactly the same as last year. The European Elstar harvest will also be roughly equivalent to last year. A volume of 355,000 tons of this variety is expected. Pear harvest per variety Looking at the different varieties, the European Conference is estimated to be 8% lower than last year. A volume of 910,000 tons is expected. The low Italian pear estimate will result in 34% fewer Abate Fetel pears (211,000 tons) being available. This is according to WAPA's estimate. This makes this variety smaller than the Williams BC (230.000 ton) in Europe. Source - https://www.freshplaza.com

30.01.2018

Spring frost losses and climate change not a contradiction in terms - Munich Re

Between 17 April and 10 May 2017, large parts of Europe were hit by a cold snap that brought a series of overnight frosts. As the budding process was already well advanced due to an exceptionally warm spring, losses reached historic levels – particularly for fruit and wine growers: economic losses are estimated at €3.3bn, with around €600m of this insured. In the second and third ten-day periods of April, and in some cases even over the first ten days of May 2017, western, central, southern and eastern Europe experienced a series of frosty nights, with catastrophic consequences in many places for fruit growing and viticulture. The worst-affected countries were Italy, France, Germany, Poland, Spain and Switzerland. Losses were so high because vegetation was already well advanced following an exceptionally warm spell of weather in March that continued into the early part of April. For example, the average date of apple flowering in 2017 for Germany as a whole was 20 April, seven days earlier than the average for the period 1992 to 2016. In many parts of Germany, including the Lake Constance fruit-growing region, it even began before 15 April. In the case of cherry trees – whose average flowering date in Germany in 2017 was 6 April – it was as much as twelve days earlier than the long-term average. The frost had a devastating impact because of the early start of the growing season in many parts of Europe. In the second half of April, it affected the sensitive blossoms, the initial fruiting stages and the first frost-susceptible shoots on vines. Meteorological conditions The weather conditions that accounted for the frosty nights are a typical feature of April, and also the reason for the month’s proverbial reputation for changeable weather. The corridor of fast-moving upper air flow, also known as the polar front, forms in such a way that it moves in over central Europe from northwesterly directions near Iceland. This north or northwest pattern frequently occurs if there is high air pressure over the eastern part of the North Atlantic, and lower air pressure over the Baltic and the northwest of Russia. Repeated low-pressure areas move along this corridor towards Europe, bringing moist and cold air masses behind their cold fronts from the areas of Greenland and Iceland. Occasionally, the high-pressure area can extend far over the continent in an easterly direction. The flow then brings dry, cold air to central Europe from high continental latitudes moving in a clockwise direction around the high. It was precisely this set of weather conditions with its higher probability of overnight frost that dominated from mid-April to the end of the month. There were frosts with temperatures falling below –5°C, in particular from 17 to 24 April (second and third ten-day periods of April), and even into the first ten-day period of May in eastern Europe. The map in Fig. 2 shows the areas that experienced night-time temperatures of –2°C and below in April/May. High losses in fruit and wine growing Frost damage to plants comes from intracellular ice formation. The cell walls collapse and the plant mass then dries out. The loss pattern is therefore similar to what is seen after a drought. Agricultural crops are at varying risk from frost in the different phases of growth. They are especially sensitive during flowering and shortly after budding, as was the case with fruit and vines in April 2017 due to the early onset of the growing season. That was why the losses were so exceptionally high in this instance. In Spain, the cold snap also affected cereals, which were already flowering by this date. Even risk experts were surprised at the geographic extent and scale of the losses (overall losses: €3.3bn, insured losses: approximately €600m). Overall losses were highest in Italy and France, with figures of approximately a billion euros recorded in each country. Two basic concepts for frost insurance As frost has always been considered a destructive natural peril for fruit and wine growing and horticulture, preventive measures are widespread. In horticulture, for example, plants are cultivated in greenhouses or under covers, while in fruit growing, frost-protection measures include the use of sprinkler irrigation as well as wind machines or helicopters to mix the air layers. Just how effective these methods prove to be will depend on meteorological conditions, which is precisely why risk transfer is so important in this sector. There are significant differences between one country and the next in terms of insurability and insurance solutions. But essentially there are two basic concepts available for frost insurance: indemnity insurance, where hail cover is extended to include frost or other perils yield guarantee insurance covering all natural perils In most countries, the government subsidises insurance premiums, which means that insurance penetration is higher. In Germany, where premiums are not subsidised and frost insurance density is low, individual federal states like Bavaria and Baden-Württemberg have committed to providing aid to farms that have suffered losses – including aid for insurable crops such as wine grapes and strawberries. Late frosts and climate change There are very clear indications that climate change is bringing forward both the start of the vegetation period and the date of the last spring frost. Whether the spring frost hazard increases or decreases with climate change depends on which of the two occurs earlier. There is thus a race between these two processes: if the vegetation period in any given region begins increasingly earlier compared with the date of the last spring frost, the hazard will increase over the long term. If the opposite is the case, the hazard diminishes. Because of the different climate zones in Europe, the race between these processes is likely to vary considerably. Whereas the east is more heavily influenced by the continental climate, regions close to the Atlantic coastline in the west enjoy a much milder spring. A study has shown that climate change is likely to significantly reduce the spring frost risk in viticulture in Luxembourg along the River Moselle1. The number of years with spring frost between 2021 and 2050 is expected to be 40% lower than in the period 1961 to 1990. By contrast, a study on fruit-growing regions in Germany2 concluded that all areas will see an increase in the number of days with spring frost, especially the Lake Constance region, where reduced yields are projected until the end of this century. At the same time, however, only a few preliminary studies have been carried out on this subject, so uncertainty prevails. Outlook The spring frost in 2017 illustrated the scale that such an event can assume, and just how high losses in fruit growing and viticulture can be. Because the period of vegetation is starting earlier and earlier in the year as a result of climate change, spring frost losses could increase in the future, assuming the last spring frost is not similarly early. It is reasonable to assume that these developments will be highly localised, depending on whether the climate is continental or maritime, and whether a location is at altitude or in a valley. Regional studies with projections based on climate models are still in short supply and at an early stage of research. However, one first important finding is that the projected decrease in days with spring frost does not in any way imply a reduction in the agricultural spring frost risk for a region. So spring frosts could well result in greater fluctuations in agricultural yields. In addition to preventive measures, such as the use of fleece covers at night, sprinkler irrigation and the deployment of wind machines, it will therefore be essential to supplement risk management in fruit growing and viticulture with crop insurance that covers all natural perils. Source - ttps://www.munichre.com/

17.05.2014

Russia Livestock Overview: Cattle, Swine, Sheep & Goats

Private plots generate 48 percent of cattle, 43 percent of swine and 54 percent of sheep and goats in Russia.  The Russian government recently approved a new program that will succeed the National Priority Project in agriculture (NPP) titled, “TheState Program for Development of Agriculture and Regulation of Food and Agricultural Markets in 2008-2012,” that encourages pork and beef production and attempts to address Russia’s declining cattle numbers.  This program includes import-substitution policies designed to stimulate domestic livestock production and to protect local producers. In the beginning of 2007, the economic environment for swine production was generally unfavorable.  The average production cost was RUR40-45/kilo of live weight, while the farm gate price was RUR40/kilo live weight.  Pork producers have been expressing concern for years about sales after implementation of the NPP as pork consumption is growing at a slower rate than pork production.  As a result, the pork sector has been lobbying the Russian government to regulate imports in spite of the meat TRQ agreement. From January-September 2007, 1.38 million metric tons (MMT) of red meat was imported.  A 12-year decline in beef production has resulted in limited beef availability in the Russian market leading to a spike in prices.  In response, the Russian government has been force to take steps to increase the availability of beef by lifting a meat ban on Poland and by looking to Latin America for higher volumes of product.  Feed stocks decreased during the first 11 months of 2007 compared to the previous year which will likely create even greater financial problems for livestock operations in 2008 as feed prices continue to skyrocket.  Grain prices increased rapidly in Russia through the middle of July 2007 before stabilizing at high levels as harvest progress reports were released. The Russian pig crop is expected to increase by 6 percent in 2008, while cattle herds are predicted to decrease by 3.5 percent.  Some meat market analysts predict that by 2012, as new and modernized pig farming complexes reach planned capacity, pork production could reach 3.5 MMT – up 75 percent from 2008 estimates. According to the Russian Statistics Agency (Rosstat), 1/3 of all Russian “large farms” are unprofitable.  Many of these are involved in livestock production.  Small, inefficient producers are uncompetitive and have already begun disappearing from the market. The Russian veterinary service continues to playa decisive role in meat import supply management. Source - http://www.cattlenetwork.com

27.11.2012

Statistics Canada : Farm income, 2011

Realized net income for Canadian farmers amounted to $5.7 billion in 2011, a 53.1% increase from 2010. This rise followed a 19.0% increase in 2010 and a 19.6% decline in 2009. Realized income is the difference between a farmer's cash receipts and operating expenses, minus depreciation, plus income in kind. Realized net income fell in four provinces: Newfoundland and Labrador, Nova Scotia, Manitoba and British Columbia. In each, increases in costs outpaced gains in receipts. Farm cash receipts Farm cash receipts, which include market receipts from crop and livestock sales as well as program payments, rose 11.9% to $49.8 billion in 2011. This was the first increase since 2008. Market receipts alone increased 12.0% to $46.3 billion. Crop receipts, which increased 15.8% to $25.9 billion, contributed the most to the increase. Sales from livestock products rose 7.5% to $20.3 billion, the largest annual increase since 2005. Stronger prices for grains and oilseeds played a major role in the increase in crop revenues. For example, canola receipts increased 37.3% in 2011 on the strength of a 27.3% gain in prices. Grains and oilseed prices started rising in the last half of 2010 as a result of limited global stocks and strong demand. Even though prices peaked in mid-2011, prices for the year, on average, remained well above 2010 levels. Crop receipts rose in every province except Manitoba and Newfoundland and Labrador. In Manitoba, difficult growing conditions reduced marketings of most grains and oilseeds. In Prince Edward Island and New Brunswick, increases in potato prices and marketings helped push crop receipts higher. It was also stronger prices that were behind the rise in livestock receipts. Hog receipts increased 15.5% to $3.9 billion on the strength of a 14.7% price increase. Cattle prices rose 19.5% in 2011, while receipts increased 1.1% because of a reduced supply of market animals. Hog, cattle and calf prices increased in 2010. The upward trend continued throughout most of 2011, primarily because of low North American inventories and high feed grain costs. Receipts for producers in the three supply-managed sectors-dairy, poultry and eggs-increased 7.9% as rising prices reflected higher costs for feed grain and other production inputs. A 14.9% rise in chicken receipts exceeded increases for eggs (+8.7%) and dairy products (+5.3%). Program payments increased 11.2% to $3.5 billion in 2011. Increases in Quebec provincial stabilization payments as well as crop insurance payments in Manitoba and Saskatchewan accounted for much of the rise. Farm expenses Farm operating expenses (after rebates) were up 8.4% to $38.3 billion in 2011, the second-largest percentage increase since 1981. This increase followed two consecutive years of modest declines. Higher prices for fertilizer, feed and machinery fuel contributed to the increase in operating expenses. According to the Farm Input Price Index, both fertilizer and machinery fuel prices were up by over 25% in 2011. At the same time, feed grain prices increased by more than 30%. When depreciation charges were included, total farm expenses increased 8.2% to $44.1 billion. Depreciation costs rose 6.9%. Total farm expenses advanced in every province in 2011. The largest percentage increases occurred in Saskatchewan (+12.3%), Quebec (+9.5%) and Alberta (+9.0%). Total net income Total net income reached $5.8 billion, a $3.3 billion gain. There were large increases in Saskatchewan (+$2.1 billion), Alberta (+$567 million) and Ontario (+$470 million), while Newfoundland and Labrador, New Brunswick and Manitoba saw declines. Total net income adjusts realized net income for changes in farmer-owned inventories of crops and livestock. It represents the return to owner's equity, unpaid labour, and management and risk. The total value of farm-owned inventories rose by $165 million in 2011. A strong increase in deferred grain payments together with the first increase in cattle inventories since 2004 contributed to the rise. Note to readersRealized net income can vary widely from farm to farm because of several factors, including commodities, prices, weather and economies of scale. This and other aggregate measures of farm income are calculated on a provincial basis employing the same concepts used in measuring the performance of the overall Canadian economy. They are a measure of farm business income, not farm household income. Financial data for 2011 collected at the individual farm business level using surveys and other administrative sources will soon be tabulated and made available. These data will help explain differences in performance of various types and sizes of farms. For details on farm cash receipts for the first three quarters of 2012, see today's "Farm cash receipts" release. As a result of the release of data from the 2011 Census of Agriculture on May 10, 2012, data on farm cash receipts, operating expenses, net income, capital value and other data contained in the Agriculture Economic Statistics series are being revised, where necessary. The complete set of revisions will be released in the November 26, 2013, edition of The Daily. Table 1 Net farm income 2009 2010r 2011p 2009 to 2010 2010 to 2011 millions of dollars % change + Total farm cash receipts including payments 44,599 44,466 49,772 -0.3 11.9 - Total operating expenses after rebates 36,052 35,315 38,276 -2.0 8.4 = Net cash income 8,547 9,151 11,496 7.1 25.6 + Income-in-kind 39 40 45 2.6 11.1 - Depreciation 5,471 5,483 5,864 0.2 6.9 = Realized net income 3,115 3,709 5,677 19.0 53.1 + Value of inventory change -281 -1,157 165 ... ... = Total net income 2,834 2,551 5,842 ... ... Table 2 Net farm income, by province Canada Newfoundland and Labrador Prince Edward Island Nova Scotia New Brunswick Quebec millions of dollars 2010r + Total farm cash receipts including payments 44,466 118 407 500 479 7,171 - Total operating expenses after rebates 35,315 106 367 422 406 5,472 = Net cash income 9,151 12 41 78 73 1,699 + Income-in-kind 40 0 0 1 1 10 - Depreciation 5,483 8 41 59 54 727 = Realized net income 3,709 4 0 19 20 983 + Value of inventory change -1,157 -0 18 0 9 13 = Total net income 2,551 4 18 19 29 996 2011p + Total farm cash receipts including payments 49,772 120 477 527 533 7,967 - Total operating expenses after rebates 38,276 114 391 448 424 6,018 = Net cash income 11,496 6 86 79 109 1,949 + Income-in-kind 45 0 0 1 1 11 - Depreciation 5,864 9 43 62 55 767 = Realized net income 5,677 -2 43 18 55 1,194 + Value of inventory change 165 -0 -12 2 -50 -24 = Total net income 5,842 -3 31 20 5 1,170 Source - http://www.4-traders.com/

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