17.02.2015

Africa - Farmers’ hopes of normal rainfall dashed

WINDHOEK – It will take a miracle to save Namibian crop and livestock producers to change their minds about a very bleak year ahead with weather experts predicting below-average rainfall for Namibia over the next couple of months.Hydrologists and weather experts Farmers Forum spoke to have confirmed this, saying below-average rainfall for the rest of the current rain season until April Is bad news for farmers. They agree that producers will be fortunate to receive normal rainfall but even if they do it won’t be sufficient for the growth of crops.According to the weather outlook of the Southern African Regional Climate Outlook Forum (SARCOF) and the Global SST, the south-western part of the Southern African Development Community (SADC) region will have normal to below-normal rainfall from February to April. This includes Namibia, Botswana, parts of South Africa and southern Angola.According to the two agencies, the rest of SADC will receive normal to above-normal rainfall, with the possibility of floods in some countries. Farmers’ Forum today reports on the worrying situation unfolding in all the crop areas and can also confirm that livestock farmers are facing a tough and unpredictable year ahead, as there won’t be enough grazing for their livestock. There has been such a delay in the rainfall that whatever rainfall Nmibia now receives until April will not be helpful to farmers, both crop and livestock. Weather experts have drawn the conclusion that the whole country is going to suffer. It is a very unfortunate situation and miracles could still happen but prospects aren’t looking good.During November 2014 to January 2015, it was predicted that south-western part of SADC would receive normal to above-normal rainfall. However, only a few countries in that region received above-normal rainfall. Communal and commercial crop farmers as well as livesock farmers have expressed grave concern about the unfolding situation after farmers Farmers’ Forum reported last week that a dismal total white maize harvest of only 35 percent of last year’s more than 73 000 tonnes can be expected this season. Crop producers in the north central areas say it looks looks like they will have to feed their familes from grocery shops as they do not expect much from their fields. However, the situation has once again put the spotlight on Conservation Agriculture (CA) as farmers practising these methods are confident they will be better off and able to at least feed hungry mouths in their communities.At the same time army worms have made their appearance in some areas in the north central regions while some communal famers have already tried their luck at re-planting after their crops failed in December in the absence of rain. Great concern hovers over the communal farmers’ mahangu fields and some of them using conventional tilling methods have littlehope of any yields this year. This year we will probably experience drought again and we will have to find ways to manage the situation, they lament .Vast areas in the Oshana, Omusati, Ohangwena and Oshikoto regions have not received significant rainfall for the past four months and mahangu fields are not showing any signs of life. The Directorate of Extension and Engineering Services in the Ministry of Agriculture, Water and Forestry is responsible for advising farmers when to start ploughing to minimise losses. Many farmers in communal ares, however, do not even know that such a directorate exists and say they rely on traditional methods of reading the various signs to decide the best time to start ploughing.Source - http://www.newera.com.na

16.02.2015

USA - Crop insurance claims down dramatically for 2014

Wheat, canola and some smaller Kansas crops had a difficult year in 2014, but overall payouts are on track to be smaller than in recent years.Not all 2014 claims have been processed yet, according to the U.S. Department of Agriculture, but the total for Kansas isn’t likely to rise substantially from $602 million in claims paid so far. That would be down dramatically from $956 million in claims in 2013, $1.4 billion in 2012 and $1.1 billion in 2011.Crop insurance guards against losses to bad weather, natural disasters and insects or disease, provided the damage wasn’t due to the farmer failing to spray properly. Another type of crop insurance pays farmers if prices fall below a certain level, perhaps due to bountiful harvests in the U.S. and abroad.Wheat’s nearly $399 million losses made up more than half all claims in 2014. Dalton Henry, director of governmental affairs for the Kansas Association of Wheat Growers, said the high claims for wheat were due to poor weather conditions during planting: a cold and dry winter and rains that kept farmers from harvesting their crop before it was ruined.“2014 was the smallest wheat crop and yield that Kansas wheat farmers have seen since, I think, 1989,” he said.Corn, grain sorghum and soybeans followed wheat distantly in dollars paid out, but raw dollar amounts don’t tell the full story. Kansas grows so many acres of corn, soybeans and grain sorghum compared to most other crops that they are likely to be at the top even in years when farmers get a relatively healthy crop and prices don’t fall drastically.After comparing the amount spent on premiums to the amount paid out, it appeared 2014 was hardest for canola, dry beans, barley, wheat and apiculture, which is more commonly known as beekeeping. Crop insurance paid out more in claims for those crops than it took in as premiums, though some, like apiculture, have so few insured producers that their impact on the bottom line is minimal.The program at least broke even on all other Kansas crops, and as a whole it paid out $602 million of the $668 million in premiums collected. Even if it didn’t break even in Kansas in a particular year, the program wouldn’t be in danger, however, because USDA collects premiums and pays out claims in all 50 states. Losses in Kansas exceeded premiums from 2011 to 2013, as the state was hit by a major drought.Many farmers don’t have to pay the whole cost of their insurance. Subsidies covered about $403 million of the $668 million in premiums paid in Kansas in 2014. They often cover at least half of a farm’s premiums, though subsidies vary by farm type and taper off as the farmer chooses to purchase more insurance.Crop insurance doesn’t cover all of a farmer’s losses, either. The farmer can choose to insure a certain percentage of his or her farm’s average yield, which is calculated over multiple years. If the corn farmer buys insurance for 70 percent, for example, crop insurance won’t pay out if the farm’s yield is 80 percent of the average. Most farmers don’t choose to insure 100 percent of the average yield, because the cost of doing so is too high.Henry described crop insurance as a “safety net” to allow farmers to keep operations going after a tough year. Payouts helped wheat farmers, he said, but didn’t eliminate the financial pain from 2014’s losses.“Crop insurance is never going to make a producer whole,” he said.Some changes coming this year will help farmers to recover faster from a bad year, Henry said. One significant provision is allowing farmers to drop “catastrophic” years from their 10-year averages, he said. If an entire county produces yields that are less than half of its normal average due to weather or other natural factors, it counts as a catastrophic event.That is significant because the 10-year average determines how much a farmer can insure, Henry said. Before that change, one or two abnormally bad years would mean farmers could only insure a smaller percentage of the crop they normally would expect. Fortunately, that provision will be retroactive, so the 2014 harvest won’t hurt wheat farmers going forward, he said.“It will allow a producer’s coverage to better match their production expectations,” he said.Source - http://cjonline.com

16.02.2015

India - Unseasonal rain, hail stones causes damage

Unseasonal rain and a hailstorm hit parts of Nashik district on Tuesday evening, pushing farmers to the edge of worry.Barely a month has passed since unseasonal rain, strong wind and hail stones rained down on parts of Niphad, Kalwan, Dindori. While farmers are still reeling from that episode, Tuesday's bout has affected crops like grape, onion, wheat, tomato, pomegranate and maize.While the skies became cloudy by noon, rain and hail stones lashed down by late evening, spreading a sheet of white over roads and farms. Crops were covered with ice flakes and standing crop was flattened. Grapes in their harvesting stage dropped berries and tomato plants were unable to hold themselves.According to the weather department, the low pressure belt created over the Bay of Bengal, influencing central Maharashtra and the cold wave about 3 kms in the atmosphere are the reasons for the unseasonal rains and hail storm.Seven tehsils of Nashik district received 188 mm of rain, affecting the large areas of the farms, district officials stated. The rain and hailstorm wreaked havoc for a minimum of 20 minutes, and extended till about 2 hours in different areas. As per preliminary reports, over 5,550 hectres of land were damaged in parts of Kalwan, Niphad and Sinnar alone.Yogesh Gavande, an onion farmer from Shirsmani, Kalwan said: "In the span of 30 minutes, the weather condition changed. It rained for about two hours and hail burst was about three times. The hail stones were quite big in size, and each time, they lasted for about 10 minutes. My crop has been damaged and the wheat one has flattened. I do not know what will happen next, but the crop is all lost."Source - http://www.freshplaza.com

16.02.2015

USA (IL): Fruit producers still feel effects of 2012 drought

For fruit producers, one year’s weather event can be felt the next season. Or the next. Growers in Illinois have been experiencing such a phenomenon, as repercussions of the drought of 2012 linger. Chris Eckert recently discussed the topic at a tree-fruit conference here.“We still are dealing with the drought hangover of 2012,” said Eckert, president of Eckert Orchards of Belleville.“2012 was a devastating year for us, weather-wise,” he said. “It really affected peaches more than any of our other crops. As a result of that, we didn’t get a lot of shoot growth in 2012 and very weak buds going into the 2013 winter. Fortunately, we got a little rain at the end of 2012. I think it could have been a tree-killing episode if we hadn’t had that rain.“2013 was a good year, but not what I would say a record year in terms of quality of production. It was not a heavy thinning crop year. Drought is unusual for us.”Orchards planted since 2009 got a slow start and were behind in development, though trees are rebounding now, Eckert said.“All the rain last year helped our young orchards get up for production,” he said. “Today the trees look better than they have in the past four or five years. It’s been a tough slugfest since 2011. What that’s going to translate into for us is a lot of bloom thinning because we’ve got a lot of buds on the trees.”The excessive precipitation last year created more headaches for Eckert...Source - http://www.freshplaza.com

16.02.2015

Australia - Passionfruit oversupply despite lack of rain, blistering heat

The Australian passionfruit industry has expanded its growing area to ensure consistent supply, and manage periods of undersupply when the price can spike. “Due to changeable growing conditions the passionfruit industry has expanded its growing regions through Northern New South Wales and Queensland to make sure there is a consistent supply of quality passionfruit on the market,” says Jann Bonsall, of Passionfruit Australia Incorporated.That’s all just as well since growers have reported issues with thunderstorms and rain leading to scarcity in some areas over recent months. “We did have very hot weather early on. Then we had thunder and rain,” notes Keith Paxton, former president of Passionfruit Australia. Ms Bonsall also notes a ‘cool’ start to spring late last year, then lack of rain and blistering heat have affected the passionfruit season.Despite the early issues with weather, Mr Paxton also says that a lot of farms are starting to have fruit now near his Queensland location. “When we do get heavy supply it can be a problem, we can suffer. Passionfruit is very very available in early summer,” he notes. “Prices are currently falling due to increase in supply so there will be good quality fruit in abundant supply over the next month, making it more affordable for consumers,” adds Ms Bonsall.Passionfruit is always harvested 12 months of the year, and apart from an existing processing partnership to sell excess fruit for juices and tinned products, Mr Paxton says work is underway to start a project sending irradiated fruit to New Zealand, and to accept irradiated fruit from other locations, to further improve year-round supply.Source - http://www.freshplaza.com

16.02.2015

Africa - Axa launches insurance to let farmers bet on the weather

The insurance giant Axa is allowing companies to bet on the weather, with cover that pays out after certain climate events even if no damage is caused.Axa said its “parametric” insurance will protect low-income farmers in Africa from the effects of extreme weather, but will shortly be extended to some companies in Europe who are also exposed to the elements.The insurance will be offered in Africa through co-operatives and government schemes, in tandem with the World Bank’s Global Index Insurance Facility, to pay farmers if the temperature rises or falls by an agreed amount, or a certain rainfall threshold is met.Axa’s initial reinsurance capacity for the scheme is about €50m (£37m). It said many farmers in Sub-Saharan Africa, where 40pc of the economy is tied up in agriculture, cannot afford more traditional forms of insurance to cover losses if crops fail. “Nobody can really predict the weather beyond 15 days. We are not about forecasting the weather; it’s more about dealing in probabilities and data,” said Tanguy Touffut, head of Axa’s corporate solutions.Weather hedges are already offered by Swiss Re, and the state-backed African Risk Capacity last year created a parametric insurance pool to cover weather-related crises.Axa has gone further by paying for data feeds from several satellite operators to monitor crop patterns across vast areas, picking up early signs of drought, flooding or crop failure. This data enables the firm to gauge the risk for large numbers of small customers, making the insurance more affordable.The firm has estimated that between 27pc and 39pc of European countries’ GDP is sensitive to the weather. Unexpected weather patterns have been blamed for profit warnings at many British firms ranging from retailers, whose clothing stock did not match the temperature, to construction companies, which cannot work with cement in freezing conditions.Last month, the World Economic Forum said the environmental risk of extreme weather events was the second-biggest global risk in terms of likelihood.Source - http://www.telegraph.co.uk

16.02.2015

Spaine - Government promises compensation for snow and flood damage

LOSS or damage suffered as a result of the freak snowfall in Spain over the last two weeks will be compensated by the State, deputy president Soraya Sáenz de Santamaría has pledged.She says MPs from the worst-hit provinces had already begun to quantify the damage, although this was proving difficult in many northern and central areas which were still under several inches – or even feet – of the white stuff.The government’s contingency fund always includes a given amount to ‘guarantee such loss or damage is covered’, says Sra Sáenz de Santamaría, but stresses that additional cash will be found if need be, even if this involves having to push through a new Bill of Law, or Royal Decree.As well as property damage – structural defects to buildings caused by weight of snow, water damage through melting snow or frozen pipes bursting, or to parked cars and other physical objects – loss of income and destruction of agricultural produce is likely to be compensated by the government.Sra Sáenz de Santamaría recalls that the State invests up to €200 million a year in farming insurance policies to ensure that any loss to landowners caused by extreme weather conditions is covered.And now temperatures are beginning to go up again and the snow is melting, this could lead to floods as river levels rise, meaning the exact extent of any damage suffered across the country may not be known for a few weeks.Already, over 8,000 hectares of agricultural crops have been destroyed in the region of Aragón after the ice covering the river Ebro melted and the water course burst its banks.Insurance companies may refer policyholders to State-run Consorcio for claimsLoss or damage to residential homes or vehicles as a result of the recent extreme weather conditions may not be covered by household or motor insurance policies where they are considered to have been caused by a ‘natural disaster’ – in this situation, insurance companies will refer the policyholders to the State-run Consorcio to make a claim.The Insurance Compensation Consortium, otherwise known as the Consorcio, pays out for damage considered to be caused by ‘extraordinary weather conditions’ and, where the loss falls within the remit of the Consorcio, it will not normally be covered by the main insurance company, so as to avoid double payment being made.Whilst most insurance companies will simply refer their policyholders to the Consorcio, others – especially those specialising in expatriate or foreign holiday-home owning customers – may handle the claim via the Consorcio on the policyholder’s behalf, or settle it directly and then recover the money themselves later.In the event of any doubt, anyone who has suffered damage or loss as a result of the recent severe weather conditions should make their own insurance company the first port of call, since they will then be advised and redirected accordingly if the need arises.But they should not panic if told outright over the phone that their claim is ‘not covered’ and they need to approach the Consorcio instead – claims presented to this government-run body are straightforward, limited paperwork is required, and once approved are usually paid very swiftly after the Consorcio‘s own loss adjuster has inspected the damage.The insurance company will normally be able to explain the procedure in full.Source - http://news.gnom.es

13.02.2015

USА - California climate ideal for lemons

California is the US number one lemon producer with more than 90 percent share of US production. The majority is being grown in Santa Barbara and Ventura counties, north of Los Angeles. Supply is also coming from the California desert (Coachella Valley) as well as the Central Valley. This is the peak time of the year for lemon production and this year is showing good supply.Lemon prices are very strong this year says Dusty Ference of California Citrus Mutual. Depending on the size, prices vary from $37 - $39 for 115s and $40 - $42 for 140s. Demand for lemons has shown an increase and health benefits in particular are believed to have resulted in increased consumption, driving prices up. According to the USDA, US lemon consumption amounts to approximately 3.5 lbs. per capita whereas Europe and South America show consumption numbers of five and six pounds per capita respectively. This offers an upward potential for US lemon consumption.Asia is a very important market for US lemons with approximately one third of total exports going to Japan. At the moment, exports of the entire citrus industry are being affected by the situation in the West Coast ports. It takes a lot longer to get the fruit loaded from the dock onto the ship, which hurts export numbers. On the import side, Mexico is a competitor of the US lemon sector. About two thirds of US lemon imports originate from Mexico.Source - http://www.freshplaza.com

13.02.2015

Australia - NT gov expands quarantine area

Two additional properties have tested positive for Cucumber Green Mottle Mosaic Virus (CGMMV) near Katherine in the Northern Territory.One property is within the existing quarantine area, the other is a direct neighbour to the quarantine area.The Department of Primary Industry (DPI) gazetted the property outside the quarantine area yesterday and placed it under quarantine restrictions.Last year the DPI destroyed all infected watermelon and pumpkin crops.The DPI's CGMMV response team has now confirmed, through testing, that some weeds are also virus hosts.Northern Territory biosecurity director Dr Andrew Tomkins said the latest positive results were found in weeds."Growers across the territory have been working closely with the department to respond to this outbreak and ensure the virus-infected plants are destroyed and the properties carefully managed," Dr Tomkins said."Growers have taken this very seriously and responded to all directions to continue to secure the option for eradication."Source - www.abc.net.au

13.02.2015

Spain - Frost causes severe losses to artichoke crops

Frosts have caused severe losses to growers, particularly to artichoke, broccoli and lettuce crops in the Guadalentin Valley.In the rest of the Region of Murcia, the anti-frost systems used by producers managed to offset the sharp drop in temperatures, minimising damage in Cieza, where the thermometer registered five degrees below zero, and the Altiplano.In Lorca and the Guadalentin Valley, temperatures reached -4 degrees Celsius. The cold affected mainly artichokes and broccoli, although the extent of the impact will not be known for a few more days, according to the regional president of Coag, Miguel Padilla. "The artichokes that survived the frosts that took place in December have been damaged," he assured.Padilla added that "broccoli could not be harvested because they are frozen, and it will still take a few days to know what the impact has been on the pellet," he said. Lettuce, according to Padilla, could also have been affected in their outermost layers and "it will be necessary to remove a leaf or two." The areas most affected by frost have been those of Campillo, Torrecilla and Aguaderas."Temperatures were extreme in these areas at dawn yesterday," Padilla added, "because of the lack of wind, which subsided after a few days of gales, with virtually no clouds in the sky." In the Altiplano, however, no damage to crops has been registered as a result of low temperatures.In any case, the president of Coag in Jumilla, Pedro Lencina, does not rule out the possibility that frost could eventually cause some impact, especially on the planting period. In Cehegín, growers replaced the plastics that had been blown away by the wind in the flower greenhouses and reported no frost damage.Source - http://www.freshplaza.com

13.02.2015

Italy - Emilia-Romagna doubles emergency funds

The damage caused by the latest wave of bad weather was bigger than anticipated, so much so that the Emilia-Romagna region doubled the funds allocated and the state of emergency was requested.In some areas, over 100 millimetres of rain were recorded and, in the coastal areas, the wind reached 100 km/h. Where it snowed, between 25 and 70 cm were recorded. Last but not least, there was a black-out, which lasted a few days in some areas thus damaging production plants.Roberto Vancini, technician from Phyto Services, said that "at least sowing had yet to start, though implants and structures were damaged, especially in the southern Ferrara area. It is still too early to make an assessment, as we will not know whether the plants have been damaged or not for another couple of months."In Reggio Emilia, the worst damage was caused by the snow and the black out: some greenhouses and warehouses collapsed and many had to do without electricity for days. Antenore Cervi, president of Cia Reggio Emilia, explained that "the situation is unacceptable: in addition to the damage caused by the weight of the snow, we have to deal with the additional costs of the black out."The Bettolino cooperative adds that "some greenhouses collapsed in just a few hours and others are severely damaged. We tried saving what we could but it was very difficult. We are now trying to sort out things and start shipping what's left of the produce.""We were finally starting to get back on our feet after a difficult 2014, so what happened was the last thing we needed. We can't surrender now though, as the less fortunate people that usually help us count on us."Luckily, at least, the snow came before sowing time, especially where onions are concerned. "The onions that are usually sold between late May and June were sowed in autumn, so there shouldn't be problems as snow generally protects them. Sowing for onions sold in August is usually carried out between mid-February and March, so there's still time," explains Matteo Freddi.A lot will depend on the weather over the next few days, though, as "two things could happen: if it rains, it means temperatures are higher and so the snow will melt and we will be able to prepare the land for sowing. If it snows again, though, we will have to wait."Coldiretti announced that "there are already millions of euros worth of damage as crops and greenhouses were destroyed and plots and companies were flooded. In addition, the drop in temperatures may cause damage to winter crops such as cabbage, Savoy cabbage, chicory, artichokes and broccoli."In the Modena area, the same that was hit by the earthquake in 2012, "the snow destroyed those hangars that were built to store equipment after the earthquake as well as many greenhouses that were ready for strawberry transplants."In Emilia and in Ferrara, the most critical situation "is in the fields, as the rain and the snow increased the level of rivers, which cannot reach the sea because of the wind and the tides. Thousands of hectares are flooded."Source - http://www.freshplaza.com

13.02.2015

Chile - Innovative monitoring technology for Chilean Hass avocado

More than 600 small and medium Hass avocado producers from the IV and VI Region will benefit from the results of an innovative project which, by means of hyperspectral remote sensing, seeks to optimise the management of orchards and thus improve their yields.The initiative, led by the Universidad Mayor and supported by the Foundation for Agricultural Innovation of the Ministry of Agriculture, will allow for an accurate, fast and cost-effective monitoring of the flowering, with the aim of determining applications, treatments, irrigation programmes and differentiated management.The annual management of an avocado plantation is determined by keeping track of the flowering; however, "the method currently used is of low reliability and accuracy, as well as time-consuming and costly," explains the innovation executive at FIA, Loreto Burgos."Considering these difficulties, the project aims to develop products making use of analyses of radiometric data and in situ hyperspectral imaging, which will make it possible to optimise the agronomic management of Hass avocados," added Burgos.The creation of a quick, accurate and cost-effective flowering monitoring system is essential, not only to increase production, but also to reduce costs, stresses Javier Cano, project coordinator and researcher at the Centre for the Study of Natural Resources of Universidad Mayor.Chile currently has a production area of close to 35,000 hectares, with a cost of monitoring amounting to 875 million dollars annually, i.e. $ 25,000 per hectare. "This project aims to reduce this cost by between 40 and 60%," states Cano. The initiative will also have environmental benefits, "since the differentiated management and accurate application will minimise the impact on the environment and water consumption."Among other goals, the project aims to generate a spectral library of flowers, leaves, branches and red buds; generating a spectral algorithm to determine the flowering percentage and determine an adequate method for the post-processing of images suitable to the user's needs.Commercial relevanceCommercially speaking, Hass avocados are currently the most important crop for Chile, due to the remarkable organoleptic qualities of the fruit and its earliness and high productivity in agronomic terms.According to a report from Odepa, total production of avocados (Hass and other varieties) amounted to 146,727 tonnes in 2012, with a planted acreage of 35,679 hectares.In this context, and as expressed by Loreto Burgos, the project for the management of Hass avocados using hyperspectral imaging offers an opportunity for development, as it could be extrapolated to other crop varieties that may benefit from this technology."This new system will help significantly reduce the time and resources required in the visual evaluation of the flowering and thus enhance the competitiveness of Chilean avocados in the export market," concludes the FIA executive.Source - http://www.freshplaza.com

13.02.2015

Australia - Pumpkin growers suffering losses last 7 years

According to the latest figures released by peak vegetable body AusVeg, pumpkin growers have been suffering losses since 2007-08.AusVeg has developed a series of Veggie Stats documents to profile different crops using data compiled from the Australian Bureau of Agricultural and Resource Economics and Sciences and the Global Trade Atlas.The research has been funded by Horticulture Innovation Australia Limited using the National Vegetable Levy and funds from the Australian Government.The data showed average domestic pumpkin prices had dropped since 2009-10, with average pumpkin production per farm also falling by 52 per cent from 2008-09 to 2011-12.AusVeg economist Steve Razdan said Australian pumpkin growers had been struggling for almost a decade in the face of high production costs relative to prices. “The nature of these trends is concerning for growers producing pumpkins, but with the Veggie Stats figures at least we can monitor the industry and provide analysis and insights to growers about cost trends,” Mr Razdan said.According to the figures, the average price received per tonne of pumpkin in Australia in 2011-12 was $375 — a huge shortfall from the $610 a tonne cost of production.Mr Razdan said energy efficiency, increased mechanisation and investment in international export markets were just some of the areas that research and development was looking closely into to make the industry more profitable across all fresh produce commodities.“The information suggests that exporting more pumpkins could be the answer to this current profit drop,” he said. “Export market growth is definitely an opportunity that pumpkin growers should be considering. The majority of Australia’s pumpkin, squash and gourd exports were sent to Singapore in 2012-13, totalling $1.1 million.”Source - http://www.freshplaza.com

12.02.2015

Argentina - Storms affect +8,000 hectares, Rio Negro Valley and Neuquen

It seems that the seven plagues of Egypt moved to the Rio Negro Valley and to Neuquen during this season. Popularly, the seven plagues mean that someone, some people or everybody in a town is being punished in biblical proportions, i.e. they are receiving an unimaginable and insurmountable punishment.The regional fruit sector is being affected by these seven plagues:• The historical delayed exchange activity.• The taxes on exports, which are unique in the world• A record internal tax charge on production• A lack of bank financing for development• High internal costs that don't allow producers to market their products• A national economic policy that is choking the system• Several hailstorms affected some 8,200 hectaresThe storms were the final blow on the sector's hope of pushing through the season. The hailstorms suffered in the area since late last year have affected 8,200 hectares.According to reports from the private sector, the storms brought losses of 270 million kilos of fruit; a number that many view as a normal statistic in the system every year.If that fruit could have been placed in the external market, it would have generated about $280 million dollars in income. Had that volume been destined for the domestic market, sales would have amounted to nearly $1,500 million pesos.These 270,000 tons would have created over 2,500 jobs during the harvest season and other countless jobs to pack this volume of fruit; jobs that have been lost to the bad weather.This is the real calamity: the fruit is lying on the ground, the producers are helpless, the workers unemployed, millions of dollars lost, and the sector still doesn't know how to get out of this crisis. The hail was so hard in certain areas that several producers had losses that exceeded 100% of their production, as it also affected the plants' ability to bear fruit next season.What's next?The hail limited the entry of the Williams pear and the Gala apple to the packing sheds. Very few producers could deliver these varieties to the companies that export them."The lots that had a damage above 15% were rejected by the exporters. They said it wasn't profitable to pass them through the machine," confided a producer of Cipolletti. There is no chance that these two varieties are absorbed by the juice industry as there is no price for that type of fruit. Currently, the industry is only buying the fruit that is discarded at the packing companies.In short, the most optimistic estimates state that only 350,000 tons, of the more than 900,000 tons of pears (Williams, Packham's and D'Anjou) and Gala apples that were initially forecast, could be harvested in the first part of the season. The rest will be lost for various reasons.The tolerance set by entrepreneurs who send their fruit overseas broke the market's equilibrium. Historically, 30% of what is shipped from San Antonio, Bahía Blanca and Buenos Aires was destined for Russia. The inferior pear was sent to Europe and USA. Currently, this fruit can't be sent to the Russian market nor redirected to the northern countries."Currently, the pear market in Europe is not depressed. The first fruits from South Africa achieved good prices, but we are talking about a sample in a season that has just begun for the southern hemisphere," confided a businessman from Berlin, where the Fruit Logistica 2015 was conducted this week."Our main problem now is the apples because we can't compete with them in Europe as a result of the high costs and varieties we have to offer," added the source.The majority of the businessmen surveyed said there was less activity in Europe than in previous years, although they expected good returns generated by the good quality pear, although it is clear at this point in the season there won't be significant volumes. Exporters have also expressed great concern about the volatility of macroeconomic variables that are observed in different markets, especially of currencies such as the Euro and the ruble.Russia is a separate issue. Sources in Berlin are sure that the problems with Vladimir Putin are far from being over; furthermore, they will deepen which is bad news for the regional fruit sector.This season's shipment schedules from Rio Negro Valley and Neuquen will decrease 30% when compared to last year. The collection risks, together with the country's economic instability (oil prices falling to 50% and depreciation rates of 100% in the last twelve months) do not reflect a good business scenario in this market.The loss of competitiveness suffered by Argentina's fruit sector makes matters worse. Currently, to achieve positive returns, a box of pears must be sold in Moscow at 1,800 rubles, more than double the price obtained during the previous season."The small amounts of pears we have in Russia are achieving these prices, but prices will most probably change once the shipments from the southern hemisphere arrive. It would be catastrophic for us," added another exporter from Berlin.The lower fruit sent overseas could create complications in destinations like Brazil and the domestic market, since there are many producers saving their pears or advancing apple sales -to achieve a return- in these two destinations.There will be a lot of fruit being moved around, which could cause an oversupply in these two destinations that have worked well within the system so far.This week, a lot of trucks from the province of Buenos Aires, Santa Fe and northern Argentina arrived at the farms to buy their fruits directly. "We are charging ridiculous prices. We have no choice. A portion is paid in cash and another by check," said a producer who was excited about having an outlet for his crop.In some cases the checks received can only be cashed in within 90 days. What will happen when the fruit begins to clog the markets and prices begin to fall?Producers won't be able to cash in most of these checks, which will give way to the second peak of the crisis. Producers should only send fruit that is likely to be sold, so they can be paid, into the domestic market and Brazil.Source - http://www.freshplaza.com

12.02.2015

Africa - Farmers should make use of Angola Investe programme

Farmers should make use of the Angola Investe programme, presenting viable projects of not more than 500 million kwanza, the governor of Benguela province, Isaac dos Anjos said Monday.The governor was speaking at a meeting with the province’s farmers, about the diversification of the region’s economy through increased production as a way of responding to the current financial crisis because of the fall of international oil prices.Dos Anjos noted the advantages for farmers of working together in cooperatives, which can present projects for funding to the Angolan Sovereign Fund.During the meeting, the farmers explained some of their problems and difficulties, such as distribution of water from the Cavaco River, delays in construction of tomato processing plants in Dombe-Grande (Baía Farta), as well as for fruit juices and concentrates in Monte-Belo (Bocoio), as there is now a surplus of these products.Isaac dos Anjos said for the factories the provincial government had already taken the necessary steps to build infrastructure and it was now up to private investors to raise funds for their construction and operation.Source - http://www.freshplaza.com

12.02.2015

Israeli investor to develop vegetable greenhouses in Russia

According to a report by IA Regnum, referring to a press release of the head of the Stavropol Region, the region is active in its joint development with Israeli companies in the agricultural sphere.A delegation from Stavropol has already visited Israel where it met with Yair Shamir, minister of agriculture and rural development. The result of this meeting was the decision to establish several Vegetable producing projects in the Russian region with Tomato and pepper production specialists.The investor interested in opening a greenhouse in Russia is the Israeli company Green IT Consulting&IntegratingAgriculturalProject, the head of which, Itskhak Eskvira, also met with Russian partners.Source - www.fruitnews.info