JAPAN, April 9, 2004 -- From America's largest overseas food and agricultural export market as translated from Japan's mass media and food industry news. This issue includes: Unseasonably cold weather and unstable prices for agricultural produce triggers further declines in sales for Japan's supermarkets; Japan's 100-Yen shops expand sales of alcoholic beverages; 2003 champagne imports bubble to record highs; A significant increase in consumer expenditures for prepared deli-type food products saw a significant increase in 2003; The Japan Agriculture Ministry offers a new 'Food Safety and Relief Topics' email newsletter for consumers and; the U.S. Potato Board serves up tasty menu ideas for the Japanese trade.

PHILIPPINES, April 9, 2004 -- This report outlines Philippine government requirements for the importation of food and agricultural products. The report aims to assist U.S. exporters by providing information on labeling, packaging, permitted ingredients and other relevant information. It also provides points of contact for key Philippine government authorities, U.S. government and trade associations.

INDONESIA, April 9, 2004 -- On April 2, 2004, FAS/Jakarta received a courtesy copy of an internal letter from the Director General of Livestock Services (dated March 30, 2004) announcing that the ban on imports for all U.S. poultry and by-products would henceforth be restricted to 9 States: Texas, Delaware, Maryland, New Jersey, Pennsylvania, West Virginia, North Carolina, Virginia and Connecticut. Post is trying to determine why some of these States are still included in the ban. For U.S. trade, this action means Indonesia will be able to import feather and poultry by-product meal again.

INDONESIA, April 9, 2004 -- Wheat imports are forecast to grow only marginally in 2004 and 2005 as demand growth is expected to continue to be sluggish. Negatively affected by a drop in demand for compound feed, corn imports are forecast to fall to 1 million tons in 2003/04, but rise to 1.1 million tons in 2004/05 as the poultry sector rebounds from the impact of bird flu. With plentiful local supplies keeping a lid on prices, combined with the apparent strict enforcement of the import ban, 2004 rice imports are now forecast at 1.5 million tons. Rice imports for 2005 are forecast to return to 2 million tons.

KENYA, April 9, 2004 -- FAS total maize production for 2003/04 is projected at 2.5 million tons, falling behind consumption (2.7 million tons). Efforts by private sector to import maize are thwarted by poor production from the neighboring countries and the 25 % duty. The U.S. is the expected source if commercial imports occur.

KENYA, April 9, 2004 -- The Kenya sugar industry output for MY 2003 was 448,000 tons, a 9 % production decline from the previous year. The decline in performance is attributed to low farmer morale, reduced prices, outdated machinery and technology among other factors. A modest production decline (4%) is forecast for 2004. The industry is pre-occupied with controversies on modalities of COMESA sugar quota import. The COMESA safeguards were extended for four years (up to 2008) to cushion the local industry from competition by low cost producer member states. In a move to pre-empt the recurrence of the present unprecedented sugar crisis in Kenya, the GOK has promised to review the flawed Sugar Act.

KENYA, April 9, 2004 -- Good prospects exist for U.S. food ingredients in Kenya's food processing sector. However, business relationships with U.S. exporters are underdeveloped. This report gives a general overview of Kenya's food processing sector - the market structure, key distribution channels, competition and best product prospects.

EUROPEAN UNION, April 9, 2004 -- This weekly report contains data on rice prices in the U.S., Thailand and the EU. It also lists current import duties and export subsidies in the EU. All information will be published as such in the USDA publication "Rice Market News".

CZECH REPUBLIC, April 9, 2004 -- In March 2004, the Czech Republic officially finished its United Nations Environmental Program/Global Environmental Fund (UNEP/GEF) National Biosafety Framework project. The Czech Republic joined the project in July 2002. The goal of the project was to develop conditions for the safe handling of living and genetically modified organisms (LMO/GMO) and to meet the requirements of the Cartagena Protocol. The outcome of the project is a detailed report describing Czech biosafety policy; the regulatory regime; the system of handling LMO/GMO applications, monitoring and enforcement; and mechanisms for informing the public.

RUSSIAN FEDERATION, April 9, 2004 -- Grain prices increased rapidly in January and February 2004 further widening the gap between food and feed quality wheat. Post believes, per preliminary data that prices continued to grow during March, but at slower pace due to interventions, export tariffs, and administrative measures aimed at curbing bread prices.

MEXICO, April 9, 2004 -- *KELLOGS TO ADD A THIRD PRODUCTION FACILITY IN MEXICO *ANTAD 2004 RESULTS: US$13 MILLION IN PROJECTED ANNUAL SALES FOR U.S. COMPANIES *THE EVALUATION OF THE AGRICULTURE NAFTA CHAPTER STILL PENDING *HORTICULTURAL EXPORTS FROM MICHOACAN INCREASE *GOM AGREEMENTS ON DRY BEAN PRODUCTION; A BACKWARD MOVEMENT *FARMERS CELEBRATE LOCAL ALTERNATIVES TO U.S. CORN *JAPAN CAUTIOUS OF MEXICAN IMPORTS OF U.S. BEEF

EUROPEAN UNION, April 9, 2004 -- Council Regulation 2092/91 has been amended to prohibit, as of 1 July 2005, the use of terms suggesting an organic connotation such as "bio" or "eco" on products which are not organic.

ALGERIA, April 9, 2004 -- Crops throughout the country have been able to make a good start, and if good conditions continue, the 2004 crop harvest could be very good. This high production, plus high world market prices of wheat, has affected imports in MY 2003 and will likely do so in MY 2004 as well.

NICARAGUA, April 9, 2004 -- Nicaragua produced 4.4 million tons of sugar cane in the 2003/2004 harvest. The 2004/2005 forecast for sugar cane production is 4.4 million tons. Nicaragua exported 119,020 MT of sugar in the 2002/2003 season. Sugar exports are expected to reach 248,000 MT during the 2004/2005 season because of predicted stable weather conditions.

ARGENTINA, April 9, 2004 -- Argentine sugar production for marketing year 2005 (2004/05) is projected at 1.74 million tons. Although farmers anticipated a bumper crop, dry weather is expected to reduce production by 10 percent. Exports are forecast at 285,000 tons, higher than the previous year, including a large carryover from the record high MY2004 crop. The principal markets will be the U.S. for raw sugar and Chile and African countries for 220,000 tons of refined sugar. Argentine sugar production in the next 2-3 years could reach 2 million tons, with no important structural changes foreseen.

BRAZIL, April 9, 2004 -- Brazil offers good opportunities for U.S. suppliers to the processed foods sector. The Brazilian food processing industry went through positive structural changes during the 1990s. Today, local manufacturers produce an expanding array of value-added products. Concurrently, demand for high quality ingredients has increased. U.S. companies interested in exporting ingredients or products should dedicate time and effort to know

CANADA, April 9, 2004 -- Canada's Minister of Agriculture has ordered the destruction of approximately 19 million head of poultry in British Columbia in an attempt to stop the spread of avian influenza in B.C.'s Fraser Valley, a region that accounts for about 80% of total poultry and egg production in the province.

MEXICO, April 9, 2004 -- The sugar production forecast for MY 2004/05 has not been set, but it is expected to be higher than 5.4 MMT. Sugar production for MY 2003/04 was revised upward to 5.51 million metric tons (MMT), due to good weather and improved production practices. Sugar imports for MY 2004/05 are expected to decrease compared to MY 2003/04 imports. Human domestic sugar consumption for MY 2004/05 is forecast to remain high, due to continued demand from the soft drink industry.