GAIN Reports from Thursday, February 25, 2021

The following Global Agricultural Information Network (GAIN) reports were released on Thursday, February 25, 2021.    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 market. Australia's food, beverage, and grocery sectors account for over one-third of the country's total manufacturing sector. In 2020 food industry turnover totaled US$133 billion (A$191 billion) a rise of eight percent over the previous year. The industry is comprised of over 15,800 enterprises. Bangladesh: Grain and Feed Update For rice marketing year (MY) 2020/21 (May-April), Post's production forecast is lowered to 34.8 million metric tons (MMT), a 2.93 percent decrease over 2019/20 production, due to Aus and Aman rice production loss because of flooding and heavy downpour during June and July 2020. For wheat MY 2020/21 (July-June), Post has slightly decreased forecasted production and harvest area based on conversations with Bangladesh's agricultural extension officers and farmers in northern Bangladesh. Forecasted wheat imports are unchanged. In corn MY 2020/21 (May-April), domestic production forecasts are slightly revised up to 4.6 MMT based on official summer harvesting updates from Bangladesh's Ministry of Agriculture.  Bulgaria: Distilled Spirits Market Brief   As Bulgaria's thirst for distilled spirits continues to grow, U.S. whiskies remain popular. According to 2019 Bulgarian National Statistical Institute (NSI) data, U.S. distilled spirit exports to Bulgaria exceeded $12.69 million, a slight increase over 2018, despite the European Union's (EU) 25 percent tariffs imposed on U.S. whiskies in 2018. However, prospects for 2020 and following years are uncertain due to additional EU tariffs currently scheduled for June 2021 and the ongoing COVID-19 pandemic.  Bulgaria: Organic Market Annual Report Bulgarian consumer demand for organic foods and beverages has grown in recent years due to economic stability, improved purchasing power, and increased popularity for products perceived as healthful. In 2020, the Bulgarian organics market was valued at about $38 million, with growing sales of packaged foods and beverages, but declining sales of fresh produce due to pandemic-related farmers markets closures. Demand growth is expected to increase by the end of 2021 and in 2022 due to favorable consumer trends and better prospects for the hotel, restaurant, and institutional (HRI) sectors. Bulgarian agricultural land under organic production (fully converted and under conversion) at the end of 2019 declined by nine percent from 2018. 2019 organic land accounted for 2.34 percent of Bulgaria's total agricultural area, down from 2.56 percent in 2018. Certification, compliance, and domestic support for organic farmers remain as policy priorities for the Government of Bulgaria.  India: India's FSSAI Reinstitutes its Food Additives and Food Standards Amendment Regulation for Meat and Meat Products for a Second Time On January 29, 2021, the Food Safety and Standards Authority of India reinstituted now for a second time, its draft Food Safety and Standards (Food Products Standards and Food Additives) Amendment Regulation (2020), relating to the commercial feeds/feed materials intended for meat and meat products. This amendment requires an alignment with the relevant standards for feeds/feed materials used for meat and milk producing animals established by the Bureau of Indian Standards. The reactivated regulatory order is made effective commencing January 28, 2021. The full text of the current order is found in Appendix I of this GAIN report, as well as is accessible on the FSSAI website.  India: Oilseeds and Products Update Assuming normal weather conditions through harvest (February through March), India is expected to produce an estimated 8.2 million metric tons of rapeseed and mustard in marketing year 2020/21 (October-September) from a record planting of 7.4 million hectares. Favorable weather conditions improved agronomic practices, and the absence of biotic stress should favor above-average yields. In addition, recently announced changes in crude palm oil import duties will offer a respite to soybean and sunflower oil demand and help control India's rising palm oil imports. Kenya: Exporter Guide Kenya's imports of consumer-oriented food products grew at an average annual rate of 11 percent between 2015 and 2019. The import growth is attributed to a growing middle class with high purchasing power, changing consumer tastes and preferences, and increased urbanization. U.S. exports to Kenya shrunk by 13 percent within the same period. For U.S. exporters, the best prospective products include dairy products, alcoholic drinks, snack foods, tree nuts, sauces and condiments, pasta and processed cereals, and pet food. Bulk and intermediate products valued at $47.2 million made up 89 percent of U.S. agricultural exports to Kenya in 2019. Kenya's import ban on genetically engineered foods is an additional barrier to U.S. agricultural exports. Portugal: Exporter Guide Portugal started 2021 with National Lockdown measures fighting to control its worst wave of the COVID-19 pandemic. Despite the pandemic-related challenges, in 2020, the total value of U.S. exports of agricultural and related products to Portugal rose 2.6 percent to $261 million and stayed well above the five-year average. Notable increases in U.S. sales of tree nuts, pet food, prepared foods, rice, and distilled spirits contributed to the rise. In 2020, lockdown measures and movement restrictions compelled Portuguese consumers to cook and dine at home. These changes in habits continue to position retail and eCommerce as the fastest growing outlets for food sales. This report provides guidance to U.S. companies interested in exporting food products to Portugal including an overview of the country's economic situation, market structure, and export requirements. South Africa: Strong Domestic and Export Demand Drives Growth in South African Avocado Plantings The production of avocados in South Africa is estimated to decrease marginally by 2 percent to 130,000 Metric Tons (MT) in the 2020/21 MY, based on the cyclical on-year and off-year nature of avocado production. South African avocado production has experienced exceptional growth in the past four decades, from 1,500 MT in the 1969/70 MY, to the peak production of 169,243 MT in the 2017/18 MY, primarily due to increase in plantings, exponential export and domestic demand. Europe remains the principal market for South African avocado exports, accounting for 92 percent of the total exports. South Africa is under increasing pressure to acquire new markets for its avocados, and currently is prioritizing efforts to gain market access in the United States, Japan, India and China. This is expected to diversify exports from Europe, and to absorb the anticipated future increases in production.  Sweden: Exporter Guide The exporter guide provides practical tips for U.S. exporters on how to conduct business in Sweden. Although a small market, Sweden offers export opportunities for U.S. exporters of wine, beer, biodiesel, specialty foods, condiments and sauces, tree nuts, and other products.   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 ooseims.archieves@blogger.com using GovDelivery Communications Cloud on behalf of: USDA Foreign Agricultural Service · 1400 Independence Avenue, SW · Washington, DC 20250