Aid to agriculture increases by 130% in China and by 40% in the US

Global support to agriculture per capita in the period 2005-2010 has increased by 130% in China, by 60% in Brazil and by 40% in the United States, while in the European Union it has stayed in the same level since 2005, according to the indicator "Global Support to Agricultural Production (SGPA)" published by the Movement for a World Agricultural Organization, MOMAGRI.

According to the indicator that measures support to agriculture in the planet's four largest agricultural producers (Brazil, China, United States and European Union) in 2010, the first place in absolute value is for the US with 163,000 million dollars; in second place is China with 154,000 million dollars; in third place is the EU with 101,000 million dollars and Brazil is fourth with 38,000 million dollars.

In terms of the percentage of the production's value, the US takes the first place with aid representing 48% of the total value, followed by the EU and Brazil with 24% and finally China with 20%.

According to the report, it appears that Brazil and the US show similar support policies to promote competitiveness and stimulate domestic demand. This way, growers from those countries benefit from regulation tools such as:

1. For Brazil: direct intervention in the market, storage planning and funding for the development of biofuels (42% of the Brazilian AGPA).

2. For the US: countercyclical aid mechanisms carried out by insurers and a large plan for domestic food aid.

Regarding China, the report states that the government enforces policies of intervention and insurance of the agricultural production, especially in the shape of a minimum guaranteed price (258 US$/t for wheat, 291 US$/t for rice in 2010), direct income support, social support programs and tax cuts.

Contrastingly, "the EU is the only one basing its agricultural policy on aid decoupled from production, accompanied by greening criteria," according to MOMAGRI in their statement.

According to MOMAGRI:

- "Despite claims about the maintenance of the CAP budget, results show that, since 2005, Europe has taken a different direction to that of other large world producers, which are making large investments to ensure food security for their populations."

- "The worrying decrease in aid entails that the EU may fall behind; situation which would only get worse if the project for the reform of the CAP goes ahead."

- "If the EU persists in its plan to reform the CAP, falling behind would lead to very severe consequences for European agriculture and the agri-food industry." MOMAGRI does not call for an increase in the CAP's budget, but for the adoption of price regulation mechanisms and, consequently, of the income.

It is the first time that the institution compares the support to agriculture in the world's largest agricultural producers. To date, MOMAGRI had only published comparisons between the EU and the US.

Source: Fepex

Mango: US, Japanese markets to remain out of reach

Production is likely to stand around 1.2 million tons of mangoes against the production of 1.7 million tons recorded during the previous season.

Pakistan, which is going to start exporting mangoes by May 25, is likely to remain shut out of the lucrative US and Japanese markets.

Despite initiatives taken by the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) and the Trade Development Authority of Pakistan (TDAP) to introduce Pakistani mangoes in US and Japanese markets, export of the fruit to these countries remain unlikely this year because of the lack of a well-equipped fruit treatment facility in the country.

The country is also estimated to be facing a 30% loss in production due to climatic changes in the country. Production is likely to stand around 1.2 million tons of mangoes against the production of 1.7 million tons recorded during the previous season.

Last year, 0.134 million tons of mango were exported, generating revenues of at least $38 million, according to PFVA co-Chairman Waheed Ahmed. This year, the target was fixed at 0.15 million tons, with estimated revenues of $50 million.

The reduction in production, he said, was mainly because of climatic changes which affected mango trees in Hyderabad, Tando Allahyar, Mirpurkhas and Mityari in Sindh; and Multan, Rahim Yar Khan, Shuja Abad, Muzaffar Garh and Khanewal in Punjab.

Japan last year approved the mangoes tested through a small VHT facility in the country; but it is not viable to use the same facility for commercial purposes because of its limited functionality and capacity. Thus, exports to Tokyo remain a distant dream, Ahmed said.

The absence of a quarantine facility in the country is also not favourable to exporters; as no exporter wishes to risk sending an entire consignment to the US before quality approval, while also bearing the huge freight cost, he said.

A proposal for the setting up of a commercial processing plant and a common facility centre has already been sent to the Ministry of Commerce, but the ministry has yet to take a step in this regard.

Beside the two important foreign markets, the country is also losing the market in Iran because of sanctions imposed by the US, as commercial banks are reluctant to be involved in financial transactions in this regard. Iran is regarded as a valuable market in terms of prompt payment for imported fruits; existing exports or smuggling will not benefit the country in terms of revenue, Waheed said.

He also revealed that a delegation from Australia was due to visit Pakistan this month to inspect mango farms and processing units in the country. The opening of Australian markets for the Pakistani mango – expected during this year – will be an important development for the country’s fruit exporters.

Published in The Express Tribune, May 10th, 2012.

Mango: US, Japanese markets to remain out of reach

Production is likely to stand around 1.2 million tons of mangoes against the production of 1.7 million tons recorded during the previous season.

Pakistan, which is going to start exporting mangoes by May 25, is likely to remain shut out of the lucrative US and Japanese markets.

Despite initiatives taken by the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) and the Trade Development Authority of Pakistan (TDAP) to introduce Pakistani mangoes in US and Japanese markets, export of the fruit to these countries remain unlikely this year because of the lack of a well-equipped fruit treatment facility in the country.

The country is also estimated to be facing a 30% loss in production due to climatic changes in the country. Production is likely to stand around 1.2 million tons of mangoes against the production of 1.7 million tons recorded during the previous season.

Last year, 0.134 million tons of mango were exported, generating revenues of at least $38 million, according to PFVA co-Chairman Waheed Ahmed. This year, the target was fixed at 0.15 million tons, with estimated revenues of $50 million.

The reduction in production, he said, was mainly because of climatic changes which affected mango trees in Hyderabad, Tando Allahyar, Mirpurkhas and Mityari in Sindh; and Multan, Rahim Yar Khan, Shuja Abad, Muzaffar Garh and Khanewal in Punjab.

Japan last year approved the mangoes tested through a small VHT facility in the country; but it is not viable to use the same facility for commercial purposes because of its limited functionality and capacity. Thus, exports to Tokyo remain a distant dream, Ahmed said.

The absence of a quarantine facility in the country is also not favourable to exporters; as no exporter wishes to risk sending an entire consignment to the US before quality approval, while also bearing the huge freight cost, he said.

A proposal for the setting up of a commercial processing plant and a common facility centre has already been sent to the Ministry of Commerce, but the ministry has yet to take a step in this regard.

Beside the two important foreign markets, the country is also losing the market in Iran because of sanctions imposed by the US, as commercial banks are reluctant to be involved in financial transactions in this regard. Iran is regarded as a valuable market in terms of prompt payment for imported fruits; existing exports or smuggling will not benefit the country in terms of revenue, Waheed said.

He also revealed that a delegation from Australia was due to visit Pakistan this month to inspect mango farms and processing units in the country. The opening of Australian markets for the Pakistani mango – expected during this year – will be an important development for the country’s fruit exporters.

Published in The Express Tribune, May 10th, 2012.