JAPAN, March 15, 2004 -- The third outbreak of avian influenza (AI) at Asada Nosan Funai farm in Tanba, Kyoto Prefecture, Japan, is unprecedented in its scale, far surpassing the previously reported two cases in Yamaguchi Prefecture and Oita Prefecture. The outbreak began on February 18, but remained unreported until authorities received an anonymous tip on February 26. By March 2, the number of chickens dying from AI had reached a startling number of 133,000 out of the farm's total of 250,000. Moreover, 15,532 chickens were shipped from the farm to two major chicken processing plants in Yachiyo, Hyogo Prefecture, and Toyohashi, Aichi Prefecture. Over one million of the farm's eggs were distributed to 17 prefectures since February 20. Although much of the processed poultry meat, eggs, and feathers were thought to be limited to the region, major news media reported March 3 that 23 prefectures have received the infected chickens' meat, eggs, and body parts. Kyoto Prefectural officials have been scrambling to address the issue, but one official exclaimed to the consulate that, "It's chaos here (in Kyoto Prefectural Government). Impact to the regional economy is significant, with food service providers, hotels, and consumers all cutting back on chicken consumption. The major daily newspapers report that the Asada Nosan Company is under investigation for its attempt to cover up the outbreak. With yet another case of AI reported March 3 at the nearby Takada farm, an immediate lift of the ban does not seem imminent. End summary.

GERMANY, March 15, 2004 -- Below are excerpts from Press releases from Fruit Logistica, the largest international trade show for fruits and vegetables in Europe. The show is held annually in Berlin, Germany. The next show will be held from February 10 through 12, 2005.

BOSNIA-HERCEGOVINA, March 15, 2004 -- Bosnia and Herzegovina Biotech Institute is for the first time conducting research on presence of (GMOs) in BiH. The main idea is to answer the question "are we eating GMOs in Bosnia and Herzegovina or not". A one-year testing program will include important crops grown in the country e.g. corn, potato and wheat.

SPAIN, March 15, 2004 -- U.S. grain exports to Spain in MY 2003/04 are the best seen in several years: total sorghum shipments should reach 500,000 tons and wheat, around 600,000 tons. Spanish feed manufacturers have been highly critical of the EU's calculation of the import duty on sorghum; they say that by understating freight rates, the EU is keeping the duty artificially high and discouraging imports. Looking toward next season, high levels of precipitation in Spain over the past 4 months have established conditions for an above-average grain crop in 2004. However, the size of the mostly non-irrigated crop will depend on crucial rain during the heading period in March, April and May. More winter grain is expected to be planted in the autumn of 2004, due to lower mandatory set-aside area and to current high prices for grains.

CZECH REPUBLIC, March 15, 2004 -- On February 5, the Ministry of Agriculture issued a restriction on wheat exports until May 1, 2004--the date the Czech Republic joins the EU. The Ministry also plans to release 400,000 MT of wheat from its strategic reserves and has announced a duty-free import quota for 300,000 MT of milling wheat until April 30, 2004 (so far 24,000 MT have been imported). This duty-free access provides an immediate opportunity for U.S. exporters.

AZERBAIJAN, REPUBLIC OF, March 15, 2004 -- The food industry and service sectors are experiencing expansion and transformation with the beginning of the construction of the Baku-Ceyhan pipeline. High-value retail outlets and catering companies are concentrated in Baku, and there is a surprising variety of products and services available. Opportunities to introduce new products into this market continue.

AZERBAIJAN, REPUBLIC OF, March 15, 2004 -- Azerbaijan has recently banned all imports of beef and poultry products from the United States due to the isolated incident of BSE and the discovery of AI in several states. There are no other major changes to import regulations in Azerbaijan. The restructuring of certain ministries, however, may lead to changes in the future. There are minor updates to Sections I, V, VI, VII and VIII.

AZERBAIJAN, REPUBLIC OF, March 15, 2004 -- The Azeri HRI sector has experienced some growth due to the beginning of construction of the Baku-Ceyhan pipeline, and new opportunities are emerging for a range of high-value food products as a result. Nonetheless, per-capita income remains low throughout the country, limiting the overall potential of growth in this sector.

EUROPEAN UNION, March 15, 2004 -- The European Commission for Health and Consumer Protection is preparing a Contingency Plan, which sets out a series of steps to be taken by Member States and the European Community to address the threat of an influenza pandemic. The Commission states that an influenza pandemic is likely to occur and that it is a matter of when not if.

EUROPEAN UNION, March 15, 2004 -- Data from the EU grain market management committee of the European Commission is now available on line via http://europa.eu.int/comm/agriculture/markets/crops/index_en.htm The data, updated weekly, includes coverage of current EU import and export license certificates, export subsidy levels, trade flows with central and eastern Europe and new legislation affecting the EU grains market.

EUROPEAN UNION, March 15, 2004 -- On March 1, 2004, the European Food Safety Authority (EFSA) announced a positive risk assessment for the biotech variety GT73, an oilseed rape produced by Monsanto. EFSA stated unequivocally "that GT73 oilseed rape is as safe as conventional oilseed rape and therefore the placing on the market of GT73 oilseed rape for processing and feed use is unlikely to have an adverse effect on human or animal health, or in the context of its proposed use, on the environment."

EUROPEAN UNION, March 15, 2004 -- The European Unions new direct payments for dairy farmers, which come into operation in 2005 are likely to act as an incentive to increase efficiency. Smaller, less efficient farms may loose economically while larger more efficient units will be maintained. Fewer farms will be producing the same amount of milk on larger and more intensive farmed units.

EUROPEAN UNION, March 15, 2004 -- New rules introducing a system of export refunds by tender for butter, butter oil and skimmed milk powder, a move to differentiate export refund rates according to destination have been finalized.

NETHERLANDS, March 15, 2004 -- Wood demand is expected to increase in 2004 due to higher investment in the overall construction sector and more spending on furniture and interiors.

GERMANY, March 15, 2004 -- Germany's Federal Ministry for Consumer Protection, Food and Agriculture (BMVEL) presented its proposal for the implementation of the Luxembourg reform decisions into German law. BMVEL intends to start decoupling in 2005 and proposes to end with one common per hectare subsidy for each region by 2012. Germany also intends to reduce the differences between the individual regions' subsidies.

TAIWAN, March 15, 2004 -- Rebounding food consumption, fueled by improving economic conditions, has seen food service sales in Taiwan rise to US$8.3 billion in 2003, a 3% increase over 2002. Growth over the coming three years should average 10%. Growth in food service sales is strong both in breadth and depth, with key drivers including a strong "dining out" culture, relatively high per capita income, a growing taste for western and "fusion" foods, and the predominance of two-income families. While "Chinese" cuisine continues to dominate the HRI segment, international and "fusion" (typically Asian cuisines prepared using western ingredient or preparation elements) is gaining in popularity and should account for about 15% of the HRI market by value in 2004. Best prospects for U.S. firms include cheese, fresh/frozen prepared fruits and vegetables, beef, pork, seafood, bakery pre-mixes/frozen dough, juice concentrates, and wine.

MEXICO, March 15, 2004 -- *FOX TO SPEND 10.8 BILLION PESOS TO AID FARMERS *MEXICO'S FIRST 2004 AUCTION OF U.S. DRY EDIBLE BEANS *MEXICO RELAXES BAN ON U.S. POULTRY *TWO EXPROPRIATED SUGAR MILLERS BACK TO OWNERS *MEAT CONTRABAND DETECTED IN MEXICO *MASTERCARD TAKES OFF *MEXICO TO ATTEND FOODEX 2004 FAIR IN TOKYO *NEW HOTEL INVESTMENTS IN MEXICO

HUNGARY, March 15, 2004 -- The market for imported seafood is around $15 - $20 million annually. Per capita consumption is low, at around 6 pounds per year, and until recently, most consumers were only familiar with traditional carp dishes served at Christmas. This is changing rapidly, and the market for U.S. salmon, shellfish, and frozen prepared fish products (for institutional use) is growing. About 80 percent of imported seafood is consumed in hotels and restaurants. Modern hypermarkets (e.g., Tesco, Metro, Auchan, Cora, Interspar) have large fish departments with fresh and frozen, and live fish.