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FAS Weekly
Attache Report Digest
Hungarian Prime Minister Sacks Ag Minister Nemeth
and Nominates Graf
HUNGARY, April 29, 2005 -- At an April 25th meeting of the
Hungarian Socialist Party (MSZP), Prime Minister Gyurcsany
announced the removal of Imre Nemeth, Minister of
Agriculture and Rural Development and nominated Jozsef Graf
as the new minister.
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Annual Report
BRAZIL, April 29, 2005 -- Brazilian sugarcane production for
MY 2005/06 is forecast at 407 mmt, a new production record.
Sugar production is forecast at 29.5 mmt, raw value, up 5
percent from the previous crop. Total Brazilian sugar
exports for MY 2005/06 are projected at 18.8 mmt raw value,
up 1 mmt compared to MY 2004/05. Alcohol exports for MY
2005/06 are projected at 2.3 billion liters, slightly down
from current season. Sugarcane should remain an attractive
crop for MY 2005/06 since a prices remain firm and are
expected to continue to be appealing to producers.
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EU loses appeal in WTO EU Sugar Export Subsidies
Panel
EU-25, April 29, 2005 -- The EU has lost its appeal on the
WTO Sugar Panel, with the Appellate Body upholding that both
C sugar exports (over quota production) and ACP re-exports
should be counted against the EU's WTO export subsidy
limits. The WTO panel report finding against the EU sugar
regime is likely to have little immediate or even mid term
impact on the level of EU exports as a compliance timetable
has yet to be negotiated. The appeal results will also put
further political pressure on the EU Commission who are due
to publish proposals for the reform of the EU sugar regime
before the summer. Initial proposals published in the summer
of 2004 do not likely go far enough in reducing the EU's
sugar exports.
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EU Draft Budget for 2006 sees 3.6% increase in
agricultural expenditure
EU-25, April 29, 2005 -- The draft EU 2006 budget sees an
increase of 3.6%, with agriculture expenditure set to rise
to 51.4 billion Euros in 2006 from 49.7 billion in 2005.
This is due mainly to increased expenditure for direct
payments in the New Member States (MS) where payments will
rise in 2006 to 30% of the EU-15 level, from 25% in 2005.
Additional amounts have also been allocated due to increases
in the dairy cow premium as well as an extra EUR 418 m. to
the cereals sector to account for the additional costs of
cereals intervention and export subsidies following the
banner 2004 harvest.
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Weekly Highlights and Hot Bites, Issue #15
MEXICO, April 29, 2005 -- · TOMATO PRICES INCREASE DUE TO
DEMAND IN THE U.S. MARKET · MEXICO FACES STRONG COMPETITION
FROM CENTRAL AMERICAN TEXTILES · MEXICAN BIO-SECURITY LAW TO
TAKE EFFECT DESPITE INCOMPLETE REGULATIONS · SUPERMARKETS
AND CHANGING CONSUMER TRENDS SEND BAKERY INDUSTRY INTO
CRISIS · MEXICAN WINE PRODUCERS BENEFIT FROM IMPORTS
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Semi Annual
KOREA, REPUBLIC OF, April 29, 2005 -- Income from citrus
production in Korea is expected to set a record in My
2004/05 with gross receipts in excess of $600 million.
Effective campaigns to reduce overproduction and improve
quality of fruit entering marketing channels are cited as
the driving factors behind the improved profitability.
Korean demand for U.S. oranges reportedly outpaced supply
after Korean authorities lifted a temporary import
suspension resulting from detections of a plant pest in
several shipments of U.S. oranges. Limited quantities of
Spanish oranges entered Korea for the first time in 2005
under a pre-clearance program.
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Food Business Line
JAPAN, April 29, 2005 -- Seijo Ishii Co., Ltd., a high-end
supermarket chain, will start its own convenience store
operations in 2005; Gyukaku, a major Korean barbecue
restaurant chain will discontinue its popular beef tongue
menu; A study finds that 85% of Japanese tourists in America
replied "I ate beef in the U.S."; Australia, New Zealand and
Mexico planning beef promotional activities at the Aichi
Expo and; nearly 250 businesses attended the Agricultural
Trade Office's "U.S. Food Trade Showcase" on February 10 in
Tokyo.
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Citrus Semiannual
ITALY, April 29, 2005 -- The 2004/05 citrus campaign in
Italy started 2-3 weeks later than usual because ripening of
the fruits was delayed by high temperatures and unstable
weather during the fall. Stagnant demand and good production
pushed down the prices of all products but lemons in the
early part of the season. The Italian government is
assisting private traders in promoting pigmented oranges in
the United Statates.
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Monthly Lock-up: May
INDIA, April 29, 2005 -- Post estimates that MY 2004 edible
oil imports will surge 16 percent to 5.2 million tons, due
to a shortfall (625,000 tons) in domestic edible oil
production and increasing consumption, which is boosted by
growing average incomes. The share of soybean oil is likely
to increase to around 31 percent, compared with 18 percent a
year ago due to converging domestic prices of RBD palmolein
and refined soybean oil and a domestic shortfall in soft oil
production.
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Weekly Highlights & Hot Bites, #16
INDIA, April 29, 2005 -- *India is first choice: Wal Mart*,
*Retail FDI set to flow freely*, *Decision on Delhi's VAT
wish*, *Commodities no longer essential forever*,
*Parliament Panel wants food labs in all states*.
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Tobacco annual
TURKEY, April 29, 2005 -- MY 2005 total tobacco production
is estimated to be about 157,000 MT of which 152,000 MT is
oriental tobacco. MY 2004 total tobacco production was only
112,000 MT due to drought during the season. Oriental
tobacco exports continue to be strong in MY 2004, reaching
111,940 MT. Once burdensome oriental tobacco stocks are
declining due to reduced production and exports.
Non-Oriental tobacco imports remain strong but the
importance of the United States as a supplier has declined.
The GOT cancelled the last tender for TEKEL's privatization
due to lack of offers. International cigarette companies are
concerned that the high consumption tax on cigarettes has
encouraged smuggling.
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Tobacco annual
TURKEY, April 29, 2005 -- MY 2005 total tobacco production
is estimated to be about 157,000 MT of which 152,000 MT is
oriental tobacco. MY 2004 total tobacco production was only
112,000 MT due to drought during the season. Oriental
tobacco exports continue to be strong in MY 2004, reaching
111,940 MT. Once burdensome oriental tobacco stocks are
declining due to reduced production and exports.
Non-Oriental tobacco imports remain strong but the
importance of the United States as a supplier has declined.
The GOT cancelled the last tender for TEKEL's privatization
due to lack of offers. International cigarette companies are
concerned that the high consumption tax on cigarettes has
encouraged smuggling.
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Annual
SOUTH AFRICA, REPUBLIC OF, April 29, 2005 -- South Africa
currently produces only flue- and air-cured tobacco. The
2005 crop now being harvested is estimated at 24,700 tons,
compared to the 31,000 tons produced in 2004. Domestic
consumption amounts to about 33,000 tons. Cigarette
consumption varies between 23 and 29 billion annually,
influenced by high taxes and strict anti-tobacco
legislation.
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Annual
SOUTH AFRICA, REPUBLIC OF, April 29, 2005 -- South Africa
currently produces only flue- and air-cured tobacco. The
2005 crop now being harvested is estimated at 24,700 tons,
compared to the 31,000 tons produced in 2004. Domestic
consumption amounts to about 33,000 tons. Cigarette
consumption varies between 23 and 29 billion annually,
influenced by high taxes and strict anti-tobacco
legislation.
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