The following Global Agricultural Information Network (GAIN) reports were released on Tuesday, March 20, 2018.
In the past two years, the Cambodian government has adjusted import duties and special consumption taxes on alcoholic beverages and on several agricultural and food products.
The Canadian food service industry was valued at $60 billion in 2016. Canada remains one of the top destinations by value for U.S. agricultural exports, and opportunities exist to expand U.S. exports into the food service sector. The following report highlights the performance of the restaurant, hotel, and institutional sectors of Canada's food service industry.
Canadian area seeded to canola in marketing year 2017/18 exceeded area seeded to wheat for the first time ever. The expectation of continued profitability is driving FAS/Ottawa's forecast for marketing year 2018/19 canola area planted even higher. Low subsoil moisture levels across the prairie provinces are expected to be a major factor in marketing year 2018/19 planting decisions.
China is the largest oilseed importer in the world with total oilseed imports at 98.42 million tons (MMT) in MY16/17. Chinese total soybean imports hit another record at 93.5 MMT, absorbing 62.6 percent of total world exports, and 61.2 percent of total U.S. soybean exports. Post estimates this growing trend will continue and drive soybean imports to reach 97 MMT in MY17/18, and hit 100 MMT in MY18/19. Rising incomes, urbanization and the modernization of the domestic feed and livestock sectors will continue fostering Chinese consumption of oilseed products. The United States soybean exports to China are expected to face fierce competition from South American countries in MY17/18 and beyond. Despite a change in China’s government policy in MY16/17 encouraging farmers to plant more soybeans, growth in China’s oilseed production remains constrained by limited arable land and stagnant yield. Thus, China’s oilseed production is estimated to rise modestly to 58.55 MMT in MY17/18 and forecast up slightly to 58.6 MMT in MY18/19. Since its implementation in MY16/17, USDA and U.S. exporters have actively worked to meet China’s new exporter registration requirements for grain and oilseed (known as Decree 177). In January 2018, U.S. exporters for grain and oilseeds successfully completed the registration process.
Palm oil production is expected to increase from 38.5 million tons in 2017/18 to 40.5 million tons in 2018/19. Exports and stocks are forecast to increase. Harvested area is revised for 2008-2017 based on analysis of seed sales and seed trade data. Soybean imports are forecast up slightly to 2.85 million tons for 2018/19.
FAS Jakarta provided assistance to a local importer to release a detained shipment of U.S. hardwood lumber.
Israel is almost completely dependent on imports to meet its grain and feed needs. Total grain imports are expected to decline marginally in 2018/19 as Israeli wheat production rebounds and global corn prices edge higher. The decrease will be more than offset by growing imports of dried distillers grains with solubles (DDGS) and corn gluten feed (CGF), nearly entirely of U.S. origin. Total wheat imports are forecast to rebound in 2018/19 on higher food and feed use.
Morocco’s regulatory framework concerning the sanitary protection of poultry farms, the control of production and marketing of poultry products is primarily governed by Law No. 49-99. This report contains an unofficial translation of the law and implementing Decree No. 2-04-684 (as later amended by Decree No. 2-10-473, taken for the application of certain provisions of Law No. 28-07 on the safety of food products) as well as summarizes a list of its implementing orders.
The Government of Pakistan has authorized an export subsidy of up to $159 per metric ton to facilitate exports of up to 2 million metric tons of wheat. A relatively high wheat support price, rising procurement and flat offtake resulted in record stocks of government-held wheat following the 2017 harvest. The subsidy is intended to reduce stocks prior to the conclusion of the upcoming 2018 harvest. Except to some regional markets, exports without a subsidy are not commercially viable because Pakistan’s domestic wheat prices are significantly higher (80 percent) than prevailing international prices.
Saudi corn imports in marketing year (MY) 2017/18 are forecast to increase by 15 percent, to about 4 million MT. In MY 2016/17, U.S. corn exports continued their dominance of the Saudi market, surpassing 2 million metric tons (MT) and accounting for about 60 percent of the market. Saudi MY 2017/18 wheat imports are projected at approximately 3.26 million MT, a decrease of 10 percent compared to the previous MY. Saudi barley imports in MY 2017/2018 are projected at approximately 7.8 million MT, a 4 percent decline compared to 8.1 million MT imported in MY 2016/17. Projected MY 2017/18 Saudi rice imports are 5 percent lower than the MY 2016/17 estimate, at 1.05 million MT. The departure of resident expatriates is the main reason for the declining demand for wheat and rice imports.
From calendar year (CY) 2012 to 2016, U.S. agricultural export sales to Senegal averaged $16.1 million per year. Bulk and intermediate products continue to dominate U.S. agricultural exports to Senegal, accounting for 90 percent of total U.S. agricultural exports in CY 2016. According to the World Bank, Senegal is one of the strongest economies in West Africa, with an annual gross domestic product (GDP) growth rate of over six percent over the last three years. Although representing a small segment of the total population, a growing middle- to upper-class consumer base is slowly changing its buying habits and food preferences, which is leading to increased demand for high-value imported foods.
The Korean government revised official cattle inventory statistics going back to the end of 2014. Post data has been updated as a result. This semi-annual estimates higher calf production next year but sees beef production slightly lower, with increased imports facilitating yet another year of growing consumption. Korea’s swine herd will continue to expand next year to support higher pork consumption. Sector profitability will drive increased production, reducing import demand.MY2018/19 rice and corn production are expected to reach record highs due to acreage expansion driven by attractive farm-gate prices. Rice consumption and exports are expected to normalize due to limited supplies of government rice stocks. Import demand for wheat is likely to remain strong in line with growing demand from the baking and food processing industries. However, feed wheat imports remain restricted.