GAIN Reports from Friday, April 17, 2020

The following Global Agricultural Information Network (GAIN) reports were released on Friday, April 17, 2020.       Austria: Austrian Agricultural Processor AGRANA Starts Disinfectants Production Based on Bioethanol The shortage of disinfectants, caused by the Covid 19 ("Coronavirus") crisis, triggered the use of AGRANA's bioethanol for surface and hand disinfectants. AGRANA is an internationally-oriented important Austrian industrial company which processes agricultural commodities to create food, feed, and intermediate industrial products. AGRANA is not only supplying its bioethanol to the disinfectants producing industry but also started its own production in one of their Austrian fruit juice plants. AGRANA's bioethanol has only recently been approved for disinfectant use. In the course of the Covid 19 crisis, the Austrian government issued and exemption from the alcohol tax for alcohol (including bioethanol) used in disinfectants. Brazil: Sugar Annual   Brazil's Marketing Year (MY) 2020/21 sugarcane crush is estimated at 650 Million Metric Tons (mmt), virtually unchanged from MY 2019/20 crop (647 mmt). Good rainfall volumes during Jan-Mar 2020 offset any initial concerns about the dry spell in sugarcane fields during Aug-Oct 2019. The COVID-19 pandemic and the oil price war between Russia and Saudi Arabia will drastically change the dynamics for the Brazilian sugar/ethanol industry during the MY 2020/21, negatively affecting the ethanol industry, therefore significantly increasing sugar production. The projection for the total sucrose (total reducing sugar, TRS) content diverted to sugar and ethanol production for MY 2020/21 is initially set at 46 and 54 percent, respectively, as opposed to 35 and 65 percent, respectively, for MY 2019/20. As a consequence, sugar exports for MY 2020/21 are forecast at 28.85 mmt, raw value, a significant increase of 9.55 mmt, raw value, compared to revised exports for MY 2019/20 (19.3 mmt, raw value).  Cote d'Ivoire: Cotton and Products Annual   Post forecasts market year (MY) 2020/21 cotton fiber production at a record for a third consecutive year, at 1.0 million bales (480 lb.). The MY 2019/20 production estimate is lowered to 990,000 bales, albeit still a record, as current deliveries of seed cotton to ginning facilities come in just below early projections. Post's MY 2020/21 export projection is just under 1.1 million bales, in anticipation of delays and spillover of MY 2019/20 exports due to COVID19-related challenges faced by downstream customers. Annual consumption remains low at 30,000 bales.  El Salvador: Sugar Annual Sugar production in marketing year (MY) 20 is estimated at 800,000 metric tons (MT), while production for MY19 has increased to 825,000 MT. Improving international prices have eased the financial pressure on the sugar sector. Although El Salvador joined the Customs Union with Guatemala and Honduras in 2018, sugar was not included in the list of products that benefit from duty-free trade.  European Union: Oilseeds and Products Annual Total European Union (EU) oilseeds area in MY 2020/21 is forecast to remain essentially flat compared to the previous year. Slightly increased area and higher average rapeseed yields but somewhat lower soybean and sunflower production are forecast to result in a 3 percent higher total oilseeds production. NOTE: This report was drafted at the beginning of the Covid-19 (Coronavirus) crisis. As of mid-March 2020, the global oilseed market is characterized by market distortions as a result of the Covid-19 virus pandemic, as well as the decreasing demand for crude oil accompanied by a drop in prices. Future developments are subject to considerable uncertainties which, due to timing, could not be considered in this report. Please watch the GAIN system for relevant updated reports.  Germany: Strong Growth in US Fish Exports to Germany   Germany is the most important fish and seafood market in Europe for U.S. exporters. Germany's growing demand for high-quality fish and seafood offers opportunities for U.S. suppliers. U.S. sales to Germany increased by 19% to nearly $222 million in 2019. The German market is especially dependent on imports of Alaska pollock and there are also good prospects for salmon, hake, cod, scallops, and dogfish among others. This report provides information about U.S. exports, market entry, import requirements, as well as trade and market data.   Japan: COVID-19 Impacts on Food Distribution in Japan - Update I Following official requests that people stay at home to prevent the spread of COVID-19, schools have closed, tourism has come to a halt, and public outings have fallen. As such, previously reported downward trends in Japan's food service sales continue, while retail sales at supermarkets remain strong. Japan: Foreign Farm Labor's Role Growing in Japan As Japan's agricultural workforce continues a decades-long decline, farm owners are increasingly looking for alternative sources of labor, including from abroad. In the past 10 years, the percentage of foreign farm workers as a share of the total agricultural population has increased fourfold from 0.5 percent to two percent. Most of these workers gain employment through the Technical Intern Training Program which is limited to five years. A separate visa program was recently made available, but high barriers to entry have limited participation. Although foreign workers still account for a relatively small share of the total agricultural workforce, Japan's increasing dependence on these workers was revealed when many were unable to enter the country due to COVID-19 travel restrictions.    Japan: Japan Provides Food Labeling Flexibility in Response to COVID19 Japan's Consumer Affairs Agency will temporarily suspend the strict monitoring of non-critical food labeling information in response to COVID-19 related supply chain disruptions. For imported products, Japanese importers bear the sole responsibility for compliance with Japan's Food Labeling Act.   Pakistan: Sugar Annual Pakistan's Marketing Year (MY) 2020/21 sugar production is forecast at 5.9 million metric tons (MMT), a six percent increase from the current year's revised estimate due to an expected increase in sugarcane area. Sugar consumption for the same year is forecast at 5.8 MMT, moderately higher than last year's estimates, and exports are forecast at 400,000 metric tons. Ending stocks are expected to decrease to 1.9 MMT. The current year's production estimates are revised up slightly from last year mainly due to increase in productivity. MY 2018/19 sugar exports stand at 600,000 tons mainly due to a subsidy of $35 per metric ton provided to sugar exporters. Sugar prices jumped 33 percent in March 2020 compared to the same period last year.   Russia: EAEU Allows Temporary Duty-Free Imports of Critical Foods   On April 3, 2020, the Eurasian Economic Commission (EEC), which is the regulatory body of the Armenia-Belarus-Kazakhstan-Kyrgyzstan-Russia Eurasian Economic Union (EAEU), issued EEC Council Decision No. 33, introducing a temporary exemption from import duties for critical food products, such as potatoes, onions, garlic, cabbages, rice, rye, buckwheat, etc., as part of the EAEU coronavirus pandemic response. The measure, which comes into effect on April 18, 2020, will apply to products imported as of April 1, 2020, and last through June 30, 2020. This report contains an unofficial English translation of the measure.    Slovakia: New Slovak Minister of Agriculture   The new Slovak Minister of Agriculture, Jan Micovsky, is an anti-corruption activist from the elections winning party, the Ordinary People and Independent Personalities (OLaNO). Micovsky is known for his strong background in forestry.  South Africa: Possible Trade Interruptions for South Africa's Rice Supply Chain due to COVID-19 Impact South Africa has to import rice to meet local demand as rice production is insignificant in the country. As a result, any trade restrictions introduced by exporter countries, due to COVID-19, will put the rice supply chain under pressure. Currently, India, the world's largest rice exporter, have stopped signing new export contracts amid a nationwide lockdown and Vietnam introduced a rice export quota. India's decision on rice exports would have a definitive impact on South Africa as it supply about 20 percent of local rice consumption. In addition, world rice prices have soared upwards. Therefore, a prolonged COVID-19 situation would cause major interruptions in South Africa's rice supply chain. Thailand: Rice Price - Weekly Rice export prices leveled off but remained high as Vietnam decided to remove its rice export ban but limit rice exports during the COVID-19 outbreak. Additionally, Thai rice exporters are facing some labor shortages in their export facilities. Thailand: Sugar Annual MY2020/21 sugar production is expected to recover from the reduced sugarcane production in MY2019/20 caused by adverse weather condition. The 2018 sugar tax continues to reduce demand for sugar in non-alcoholic beverage production. MY2019/20 and MY2020/21 sugar exports growth are expected to slow down from record sugar exports in MY2017/18.   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. This email was sent to stevenmagallanes520.nims@blogger.com using GovDelivery Communications Cloud on behalf of: USDA Foreign Agricultural Service · 1400 Independence Avenue, SW · Washington, DC 20250