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GAIN Reports from April 6, 2023

The following GAIN reports were released on April 6, 2023. _______   El Salvador: Food Processing Ingredients El Salvador's food manufacturing sector has been able to successfully adapt to a challenging environment and has provided signals of a rapid recovery, despite facing a continuous crisis generated by the COVID-19 pandemic and the supply chain shortages that increased the costs of raw materials and other inputs needed to produce food. According to the latest data available for the sector, published by the Salvadoran Industrialist Association, a total of $1.3 billion value of ingredients was imported in 2021, which is about 13 percent more than in 2020. Meat products, animal fats and vegetable oils were among the main products imported by the food industry in the same period. The United States was the second supplier of intermediate food products to El Salvador during 2022.   Guatemala: Grain and Feed Annual Corn production in 2023/2024 is forecast to increase slightly, despite a reduction in planted area, as commercial farmers look positively at 2023 average record prices of $625/metric ton (MT) at the wholesale markets. Yellow corn imports continue growing as the feed demand grows slowly but steadily in response to a continued three percent yearly growth estimated by the avian industry. Rice harvested area and production is forecast to recover after impacts of Julia Storm following ETA and IOTA if the coming years are marked by less rainfall. As of 2023, CAFTA-DR rice quotas are no longer in place, and given the mandatory local purchase in place with other countries, U.S. rice exports are expected to drop. Lack of labor is challenging grain production in Guatemala.   France: Food Processing Ingredients In 2022, the French food processing sector encompasses approximately 17,300 companies ranging from small family-owned businesses to some of the world's largest multinationals. Widely regarded for global leadership in innovative technology, quality and marketing, French food processing companies provide employment to more than 450,000 people, generating $211 billion in sales. While market demand is strong, the French food processing industry continues to face significant challenges with rising energy and commodity prices following COVID related supply chain disruptions and the ongoing Russia - Ukraine war.   Japan: Japan Gives Green Light to Genome Edited Waxy Corn Product On March 20, Japan's Ministry of Health, Labour, and Welfare (MHLW) and Ministry of Agriculture, Forestry, and Fisheries (MAFF) added a waxy corn product to their lists of genome edited products not subject to regulations for genetically engineered food, feed, and biodiversity. This is the fourth type of genome edited product added to the lists and the first developed a by a non-Japanese company. Corteva Agriscience developed the waxy corn product using CRISPR-Cas9 technology to increase amylopectin in the corn.   Japan: Japan Lowers HPAI Related Trade Restriction on US Poultry Products  Ministry of Agriculture, Forestry and Fisheries (MAFF) in Japan has announced an agreement with U.S. Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) to lower High Pathogenic Avian Influenza related trade restrictions on U.S. poultry products exported to Japan, starting April 3rd. Bans on exports from HPAI infected zones are now eligible to have restrictions lifted 28 days post cleaning/disinfection (down from 90 days).   Japan: MAFF Support Payments for Struggling Dairy Industry Japan introduced an emergency program to induce early slaughtering of less-productive dairy cows in March 2023 as an incentive to reduce excess milk production and support dairy farm management. A farmer on the program will receive maximum 200,000 yen per cow culled from the herd.   Spain: Spain Seafood Report 2023 Spain is one of the largest markets worldwide for fish and seafood. In 2022, Spain was the fourth largest importer of fish and seafood in the world after the United States, China, and Japan. It not only has the largest fish processing industry in Europe, but also has a high per capita consumption and a high per capita expenditure on fish and seafood products. However, Spanish fish and seafood production through commercial fishing and aquaculture is not sufficient to meet domestic demand and imports remain a key element in meeting market demand. Top sellers from the United States in 2022 included surimi, squid, hake, Alaska pollock, and lobster.   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. Total investments in the sector are projected to reach $70 billion in 2030, an increase of approximately 59% over total investments in 2016. Most Saudi food manufacturers depend on imports for food ingredients and imported a total of $3 billion ($434 million from the United States) worth of intermediate food ingredient products in 2022. While the United States continues to thrive on traditional exports, Post anticipates healthier foods will be a major driver in Saudi Arabia over the next several years. In 2022, U.S. agricultural exports to Saudi Arabia set a record high, and Post believes 2023 could be even better. Saudi Arabia is the 20th largest market for U.S. agricultural products.   Turkey: Grain and Feed Annual Turkey's grain sector continues to grapple with different challenges, the most recent of which are earthquake and drought. From Post's analysis, the drought's impact on MY 2023/24 grain production will be more significant than the effects from the earthquake. Notwithstanding these difficulties, corn production is expected to hit a record of 7.7 million metric tons (MMT). Total grain imports in MY 2023/24 are forecast slightly down year-to-year, with wheat accounting for the bulk of imported grain. Nearly 70 percent of the wheat Turkey imports is processed and re-exported as flour and pasta. Meantime, in order to suppress high prices, the government extended its zero tariffs on imported grains through part of the year.   United Arab Emirates: Food Processing Ingredients The United Arab Emirates' food processing sector continues to expand, bolstered by strong economic growth and local demand. There are over 568 food and beverage processors and manufacturers in the UAE, most of which are small to medium size. The food processing sector not only feeds UAE demand but is also focused on meeting needs regionally and throughout the world. These firms are almost entirely dependent on imported ingredients due to the UAE's low production of intermediate, commodity, and lightly processed agricultural products. Significant opportunities exist for U.S. companies to expand their business with this growing sector of the UAE economy.     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

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