GAIN Reports from Friday, November 20, 2020

The following Global Agricultural Information Network (GAIN) reports were released on Friday, November 20, 2020.      Argentina: Argentina Introduces Export Tax Compensation Program for Small Farmers   On November 2, 2020, Argentina authorized a payment scheme to compensate small and midsize farmers for a portion of their export taxes paid on soybeans. Payments are based upon sales recorded between February 1 and December 31, 2020 and smaller farms and farms located outside of the core growing region receive a more generous reimbursement rate. Due to economic uncertainty, Argentine farmers are currently sitting on record levels of soybean stocks. This measure is intended to incentivize selling for the next several months among smaller scale farmers, a sector targeted for assistance by the Fernandez government.   Brazil: Brazil Allows Imported Soy in Biodiesel Production On November 18, the Brazilian National Energy Policy Council published a resolution to allow for the use of imported materials – either raw soybeans or soybean oil - in the production of biodiesel. Soybean oil prices have been spiraling, in correlation with fast dissipating product stocks. This policy move highlights the government's rising concern about spiking consumer inflation. Notably, the resolution did not specify for how long the measure would be in effect, which injects a degree of uncertainty for importers considering sourcing soybeans and/or soybean oil. At this point, the market is ambivalent on whether the measure will elevate imports or push down prices.  China: Hainan's Free Trade Port Could Yield Future Opportunities for US Ag Products In June 2020, China's central government announced its economic masterplan to develop the south China island of Hainan into a Free Trade Port (FTP). The advertised zero-tariffs for imported products processed inside the FTP may lead to future opportunities for imports of U.S. ag products, such as meat and seafood. However, for the time being, importers of U.S. ag products seem reluctant to pursue these opportunities until FTP policies, infrastructure, and logistical networks are all solidly in place and working. Czech Republic: African Swine Fever Nears the Czech Border   African Swine Fever, Highly Pathogenic Avian Influenza, and COVID-19 in mink outbreaks in Europe are edging closer to the Czech border. The Central Disease Control Commission of the Czech Republic responded by the introduction of new precautionary measures, including an establishment of an intensive hunting zone, a new reward payment for killing wild boar, and an increase of an already existing reward payment for reporting a finding of a dead wild boar. So far, the Czech Republic remains the first country in the EU to be officially declared free from African Swine Fever. Denmark: HPAI Detected in Commercial Flock in Denmark On November 16, 2020, the Danish Veterinary and Food Administration (DVFA) reported the first finding of the highly pathogenic avian influenza (HPAI) virus on a commercial poultry farm. The DVFA states that the recent HPAI finding means exports of poultry and eggs to certain non-EU countries will be halted for at least three months. European Union: EU Launches Public Consultation on the Review of the Renewable Energy Directive The European Commission launched a public consultation on the EU's review of the Renewable Energy Directive (REDII). The European Commission is looking at aligning REDII targets with the European Green Deal. It will also review sustainability criteria for forestry biomass that was introduced by REDII. Interested stakeholders have until February 9, 2021 to partake in the consultation.  India: Oilseeds and Products Update   FAS New Delhi's soybean production forecast for marketing year (MY) 2020/2021 (October-September) remains unchanged at 10 million metric tons (MMT), but on 12 million hectares against previous forecast of 11 million hectares. By contrast, peanut production is revised up to 8 MMT on 6 million hectares indicating larger than anticipated planting in the Kharif-2020. Marketing year 2019/2020 edible oil imports dropped five percent to 13.4 MMT, while oil meals exports should settle at 1.8 MMT based on the latest trade data.  Japan: Guidance on Shipping Individual Small-Sized Samples to Japanese Buyers The COVID-19 pandemic has led to a reduction in large trade shows where buyers generally sample and research new food and beverage products. Additionally, travel restrictions have prevented many U.S. exporters from visiting Japan. This report provides guidance on shipping small-sized individual samples to interested buyers in Japan and details eligibility for duty free shipments and import notification exemptions. Japan: Japanese Import Regulations for Industrial Hemp Products This report summarizes Japan's import requirements for industrial hemp products. U.S. exporters should ensure that all necessary custom clearance requirements have been verified with local authorities through foreign importers before the sales conditions are finalized. Japan: Japan Joins Regional Comprehensive Economic Partnership On November 15, Japan joined 14 countries spanning the Asia-Pacific region in signing the Regional Comprehensive Economic Partnership (RCEP) agreement. The members of the agreement are China, Japan, South Korea, Australia, New Zealand, and the 10 members of Association of Southeast Asian Nations (ASEAN). For Japan, it is the first trade agreement signed with China and South Korea. Under RCEP, Japan will abolish tariffs on 56% of farm products imported from China, 49% of those from South Korea, and 61% of items from ASEAN, Australia, and New Zealand. Morocco: Morocco Raises Chocolate Tariffs- US Remains at Zero Duty   Morocco approved a new tariff rate for imported chocolate and food preparations containing cocoa. The 2021 finance bill increases tariffs on these products from 17.5% in 2020 to 40% in 2021, effective January 1, 2021. Under the United States-Morocco Free Trade Agreement (FTA), U.S. products under these tariff lines benefit from zero duty. Poland: Turkey and Products Market Brief Poland is the European Union's (EU) largest producer of turkey meat. Post estimates that 2020 turkey meat production will increase by one percent over 2019. The COVID-19 pandemic and the highly pathogenic avian influenza (HPAI) outbreak in early 2020 minimally disrupted turkey meat production during the first half of 2020, but will likely moderate output during the second half of the year. In 2019, Poland exported 227,003 MT of turkey meat, valued at $730 million. Major export markets within the EU were Germany, Spain, and the UK. Major non-EU markets were China and Ukraine. Saudi Arabia: Exporter Guide Saudi Arabia is a significant market for U.S. food and agricultural products with direct U.S. exports of $1.39 billion in 2019. Post anticipates a slightly similar export level for 2020 despite some hiccups related to COVID-19 and lower oil prices in Saudi that depressed overall sales. However, there are still plenty of opportunities for a wide range of new U.S. products to enter Saudi Arabia, especially healthier products aimed at a generation with more disposable income. Unfortunately, there are also significant impediments to trade including several halal related restrictions on meat and poultry products. Despite these issues, U.S. food products are generally viewed as a higher quality product and are well positioned to meet Saudi Arabia's changing dietary habits over the next several years. Saudi Arabia: Food Processing Ingredients Saudi Arabia is the largest economy in the Arab world and home to a growing food manufacturing and processing sector as a result of favorable trade agreements, population growth and rapid socioeconomic changes. Investment in the sector is projected to reach $59 billion in 2021, an increase of approximately 64 percent since 2013, and ranges from local food manufacturers to major multinational companies. Most Saudi food manufacturers depend on imports for food ingredients, and subsequently they imported nearly $2.7 billion ($350 million from the United States) worth of intermediate food products in 2019. While the United States continued to thrive on traditional exports, Post anticipates healthier foods will be a major driver in Saudi Arabia over the next several years. The United States is well-positioned to capture this market share. South Korea: 2020 Rice Production Update On November 12, 2020, Statistics Korea (KOSTAT) released a revised 2020 rice production estimate of 3.507 million metric tons (MMT), down an additional 3.4 percentage points from the initial rice production estimate surveyed in early September 2020 (3.631 MMT) and down 6.4 percent from the previous year. The drop in production reflects a decline in rice area (down 0.5 percent) coupled with lower than expected yields (down 5.9 percent). The MY 2020/21 stocks-to-use ratio is expected to fall slightly to 27.3 percent. Thailand: Rice Price - Weekly   Rice export prices increased 4-6 percent due to new inquiries and the further strengthening of the Thai baht. Vietnam: Coffee Semi-annual Posts revised Vietnam's coffee production for marketing year 2020/2021 (MY20/21) down to 29 million bags, green bean equivalent (GBE), lower than the USDA official number, based on unfavorable weather conditions that impacted yields. Post revised MY19/20 coffee exports up to 26.40 million bags (GBE), still lower than USDA official number, and revised MY20/21 exports down to 26.65 million bags based on competition   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