GAIN Reports from Monday, March 30, 2020

The following Global Agricultural Information Network (GAIN) reports were released on Monday, March 30, 2020.   Australia: Food Processing Ingredients Australia has proven to be an appealing and profitable market for U.S. companies for many years. Apart from an extremely strict quarantine regime, it offers few barriers to entry, a familiar legal and corporate framework, and a sophisticated – yet straightforward business culture. While it is important to understand and appreciate Australia's cultural differences, the long and successful history of U.S. firms in Australia suggests the potential of this expanding market. Australia's food, beverage, and grocery sectors account for over one-third of the country's total manufacturing sector. In 2019 turnover totaled US$126 billion (A$182 billion) a rise of three percent over the previous year. The industry is comprised of over 15,325 enterprises.   China: Update to the Export Process for US Pork and Pork Products   In accordance with the U.S.-China Economic and Trade Agreement (ETA), China has implemented a number of changes to the scope and process of exporting U.S. pork and pork products to China. Key changes include facility registration, an expanded scope of products, and use of the USDA Food Safety Inspection Service (FSIS) Public Health Information System (PHIS) for transmitting export certification documents. This report is intended to be a general guide for U.S. exporters and is intended to complement the regulatory requirements found in the USDA Food Safety Inspection Service (FSIS) Export Library. Indonesia: Food Processing Ingredients   In 2019, Indonesia's total agricultural imports reached $19.8 billion, 32 percent of total consumer-oriented product sales. The United States was the largest agricultural exporter to Indonesia, accounting for $3.2 billion, 16 percent of the total value of imports. The top U.S. agricultural exports include soybeans, cotton, feeds and fodders, wheat, dairy, distillers' grains, prepared food, fresh fruit and beef and beef products.  Israel: Food Processing Ingredients   With over 1800 facilities, the Israeli food processing sector is an important player in the domestic economy. In 2018, Israeli food processors' annual revenue stood at $17.8 billion while the beverage and tobacco industry's annual revenue was $2.34 billion. The sector currently represents over 17 percent of Israel's total manufacturing industry's revenue and employs over 66,000 workers. With limited land and resources, as well as a growing population, the ingredients demanded by the Israeli food processing sector represent an excellent opportunity for U.S. exporters of food ingredients. In 2019, Israel imported $2.57 billion in raw food products for the food processing industry. Israel: Grain and Feed Annual   Israel is almost completely dependent on imports to meet its grain and feed needs. In recent years, dried distillers grains with solubles (DDGS) and corn gluten feed (CGF) imports have increased significantly. FAS Tel Aviv (Post) forecasts Israel's imports of wheat - primarily feed wheat - in market year (MY) 2020/21 to reach 1.79 million metric tons (MMT), up 11 percent from Post's MY 2019/20 figure. In MY 2019/20, U.S. wheat accounted for 11 percent of the market, up 4 percent from the previous year. Post forecasts Israel's imports of corn in MY 2020/21 to reach 1.74 MMT, of which 147 thousand metric tons (TMT) are expected to be of U.S.-origin. In recent years, corn imports originate mainly from Ukraine, Argentina, and Brazil. Post forecasts this increase in grain and feed imports due to expected demand by the feed sector in the Palestinian Authority (PA).   Japan: Final MAFF Guidelines for the Handling of Genome Edited Feed and Feed Additives   On February 7, 2020, Japan's Ministry of Agriculture, Forestry, and Fisheries released the final handling procedure guidelines for genome edited feed and feed additives. This report contains a provisional translation of the guidelines. Japan: Food Processing Ingredients   In 2019, Japan's food processing industry manufactured $219.7 billion of food and beverage products, up from $216.8 billion in 2018. Health-oriented products are rapidly increasing in popularity and frozen food consumption has significantly increased over the past decade. Additionally, there is a growing demand for convenient, ready-to-eat food options, as consumers generally cook fewer meals at home. The United States is the top agricultural supplier to Japan and has a reputation for being a reliable supplier of safe and high-quality foods.    Kyrgyzstan: Draft Amendments to Phytosanitary Regulations Notified to WTO    On March 18, 2020, the Kyrgyz Republic notified the World Trade Organization (WTO) of draft amendments to the Eurasian Economic Union (EAEU) regulations on phytosanitary control at the border and inside the EAEU via G/SPS/N/KGZ/12. The draft measure adds grounds for recognizing phytosanitary certificates as not confirming the necessary phytosanitary condition of imported products and returning incompliant wood packaging materials. The public comment period for the draft will close on May 17, 2020. Interested U.S. parties are encouraged to share their comments and/or concerns with USDA's enquiry point (us.spsenquirypoint@fas.usda.gov). For potential inclusion in the U.S. official position, please send your comments by May 4, 2020.    Philippines: Food Processing Ingredients   The rapidly expanding processed food and beverage sector in the Philippines presents robust opportunities for U.S. exporters of agricultural raw materials and high-value ingredients. The industry's gross value-added output reached $35.8 billion in 2019, up 39 percent over the past five years. That being said, the immediate focus of food manufacturers and the Philippine economy more broadly is handling the outbreak of COVID-19. The Philippine government has implemented an enhanced community quarantine throughout the island of Luzon, affecting half the country's population and many of its food manufacturers. The Philippine Chamber of Food Manufacturers has acknowledged that there could be gaps in operations as the country adjusts to movement restrictions and that the top food suppliers have up to a month's worth of current stocks.  South Korea: Food Processing Ingredients Korea has a strong food processing industry that manufactures a wide variety of food and beverage products. It also relies heavily on imports to fulfill its food and agricultural needs. As a result, the Korean food processing industry offers an outstanding opportunity for imported agricultural products for processing use, including basic commodities such as wheat and soybean, intermediate ingredients such as vegetable oils and fruit juice concentrates, and food additives such as flavors and coloring agents. The food processing industry generated 72.8 trillion Korean Won ($66.1 billion) in sales in 2018, up four percent from 2017.   Turkey: Cotton and Products Annual Turkish cotton planting and production for Marketing Year (MY) 2020/21 is projected to be about 480,000 hectares and 760,000 metric tons (MT) (3.5 million bales). Turkish cotton area and production for MY 2019/20 is estimated at 590,000 hectares and 800,000 MT (3.7 million bales) as weather conditions affected production and foreign exchange turmoil affected input costs. Domestic consumption in MY 2019/20 is estimated to remain similar to the previous MY at 1.55 million MT (7.1 million bales) and expected to increase a bit in MY 2020/21, reaching 1.6 million MT (7.35 million bales). These consumption estimates are subject to revision depending on the impact of the COVID-19 pandemic. The Turkish textile industry continues to be one of the leading sectors in the Turkish economy and the United States remains the top supplier of cotton to the Turkish market.    Vietnam: Rice Trade - Monthly   The report provides trade data on Vietnam's monthly rice exports by grades and destinations, and weekly quotes for export rice by grades.     For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/.   Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please visit subscriberhelp.govdelivery.com. This service is provided to you at no charge by USDA Foreign Agricultural Service. 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