The following Global Agricultural Information Network (GAIN) reports were released on Wednesday, February 10, 2021.
China: Cold Chain Control Measures Expand Across South China
On February 3, 2021, the European Commission published its Europe's Beating Cancer Plan. Part of the plan includes actions to be taken by the EU and its Member States to increase cancer prevention across the Union. This includes reducing harmful alcohol consumption, improving access to healthy diets, a review of the EU promotion programs for agricultural products, a study on tax measures on sugars and soft drinks and the reduction of exposure to hazardous substances. Depending on how the recommendations are implemented, the new measures may affect U.S. exports of agricultural and food products.
The oil-rich Nigeria relies heavily on food and agricultural imports (mostly wheat, rice, poultry, fish, food services, consumer-oriented foods, etc.), valued about $10 billion to feed its more than 206 million people. Europe, Asia, USA, South America, and South Africa are the major competitors. However, low oil prices and the continuing consequences of the COVID-19 lockdown restrictions have continued to increase Nigeria's government debt. Currently, the economy is in a recession. To survive the recession, the government continues to borrow more as the economy struggles. This situation is unlikely to change in the short to medium term.
COVID-19 had a strong impact on the Russian economy that changed consumer behavior. In January - July 2020, the GDP decline is estimated at 3.4 percent year-on-year. The Russian Ministry of Economic Development forecasts the Russian economy will recover in Q3 of 2021 due to citizen and business support measures, rising prices for oil, and mass vaccination from COVID-19. Food production and processing of agricultural products remains one of the drivers of economic growth. In JanuaryNovember 2020, production of food products increased by 3.9 percent and drinks by 1.3 percent year-on year. Russia's food processing industry continues to invest in new equipment and is expanding purchasing of ingredients, but looking for more competitive sources in terms of price ingredients.
On February 1, South African President Cyril Ramaphosa partially lifted the ban on the domestic transportation and sale of alcohol beverages. While the lifting of the alcohol ban has been met with widespread relief, there still remains uncertainty on how government could handle future alcohol bans. The impact of alcohol bans to the domestic liquor industry and associated supply chains has been substantial, and has placed the sustainability of these sectors at risk. Alcohol bans have also resulted in entrenched criminality and unfavorable trade between South African trading partners, including the United States. U.S. exports to South Africa decreased by 46 percent to US$11.6 million in 2020, and this may worsen if the South African government continues implementing ad hoc alcohol bans in 2021. South African wine comes into the United States duty free under the African Growth and Opportunity Act (AGOA).
For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/.
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Thursday, February 11, 2021
GAIN Reports from Wednesday, February 10, 2021
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