Wednesday, May 19, 2021

GAIN Report from Tuesday, May 18, 2021

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The following GAIN reports were released on Tuesday, May 18, 2021.

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China: Perspectives on the Feed and Swine Sectors

The China Feed Industry Expo and Conference took place in Chongqing April 18-20, 2021, bringing together traders, analysts, and government officials to share perspectives on the feed and swine sectors. Key topics addressed include grain traders' moves to diversify their suppliers, the impact of the latest outbreak of African Swine Fever (ASF), the accuracy of Chinese government data, and feed production trends. This report provides a selection of the opinions put forth at the event by government and industry representatives. FAS China perspectives are reflected in unofficial USDA GAIN reports.

 

European Union: Dairy and Products Semi-annual

Post estimates that 2021 European Union (EU) milk deliveries will increase by 0.3 percent over 2020 due to continued global demand for dairy products and stable domestic demand. The growth rate for milk deliveries in 2021 will be more moderate than 2020, due to a reduction in the overall herd population and ongoing global market disruptions related to the COVID-19 pandemic. Post expects cheese, butter, whole dry milk (WDM), and non-fat dry milk (NFDM) production will increase in 2021 due to higher milk deliveries.

 

Germany: Edible Insects Invade the Food Sector

The German edible insect industry welcomes the first edible insect to be approved for food use in the European Union (EU) as a big step towards a more transparent legal environment and marketing opportunities for the relatively new industry sector. On May 3, 2021, the EU's European Food Safety Agency approved a novel food application for dried yellow mealworm (Tenebrio molitor) and thereof derived products.

 

Japan: Industrial Ethanol Market

Japan's Ministry of Economy, Trade and Industry strictly monitors the production, importation and sales of ethanol exceeding 90 percent of alcohol content by volume. The consumption of industrial ethanol (non-fuel, non-beverage) was 484 million liters in Japanese fiscal year 2019, the latest available data. This report details trade flows of industrial ethanol to Japan. The United States has a limited market share in Japan's industrial ethanol market.

 

Japan: USJTA Treatment for Nuts

The U.S.-Japan Trade Agreement (USJTA) has been in effect for 16 months, however the timing of Japan's fiscal year meant that the agreement entered "Year 3" of implementation on April 1, 2021. This report is one in a series of product briefs highlighting the tariff benefits for specific commodities and products from Year 3 (2021) to Year 5 (2023) of the agreement. Additional information is available at www.usdajapan.org/usjta/.

 

Peru: Coffee Annual

Coffee production in marketing year (MY) 2021/22 (April/March) is forecast to rebound 17 percent, reaching 3.95 million bags (60 kilograms per bag). This expected increase is due to good weather conditions and improving international coffee prices. Peru's coffee exports in MY 2021/22 are forecast at 3.85 million bags, increasing 16 percent from the previous year.

 

Philippines: Lowering Pork Tariffs and Raising Quota Volume

Responding to surging pork prices due to African swine fever's devastating impact on the hog sector, the Philippines has temporarily lowered pork tariff rates and increased the quota volume. On May 15, 2021, President Duterte issued Executive Order 134, setting pork tariffs significantly lower than the original 30 percent in-quota and 40 percent out-quota rates. EO 134 follows considerable pushback by domestic industry and Congress to Executive Order 128, which the President issued on April 7, 2021 and set rates at 5 percentage points lower than EO 134. The President also issued Executive Order 133 on May 11, 2021, raising the Minimum Access Volume or tariff rate quota of pork imports from 54,210 MT to 254,210 MT.

 


For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/.


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