Duxton’s Agri Bits and Pieces – Vol. 336

QUOTE OF THE WEEK

This week’s quote of the week comes from Bendigo Bank and Adelaide’s Rural Bank publication Australian Farmland Values 2016, regarding the surging farmland values across Australia.

The national median farmland price increased by 9.3% in 2016. This follows a 5.3% increase in 2015 and a 6.8% increase in 2014…Favourable seasonal conditions in the second half of 2016, combined with strong beef, lamb and wool prices drove land values higher on the east coast of Australia…In all states, the median price has trended higher over the past decade with average annual growth exceeding 3% in most states.”

FARMING THE WORLD: CHINA’S EPIC RACE TO AVOID A FOOD CRISIS

China’s 1.4 billion people are building up an appetite that is changing the way the world grows and sells food. The Chinese diet is becoming more like that of the average American, forcing companies to scour the planet for everything from bacon to bananas.

But China’s efforts to buy or…

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Duxton’s Agri Bits and Pieces – Vol. 335

QUOTE OF THE WEEK

This week’s quote of the week comes from the United States Department of Agriculture updated World Markets and Trade Grain forecast.

For 2017/18, global corn production is projected down from last year’s record duet largely to smaller crops in the United States and China. Global consumption outpaces production as demand expands…global trade is forecast higher boosted by expectations of strong demand growth” “Global wheat production is forecast lower than last year’s record…Global trade is projected above last year’s record due to large carryin supplies.”

SLAUGHTER OF AFRICA’S DONKEYS FOR CHINA HURTS POOREST FARMERS

When the impoverished West African nation of Niger imposed a ban on donkey exports last year, a small community of traders just over the border in Nigeria was devastated.

Donkeys are being slaughtered at an alarming pace to feed a global trade in donkey hides that’s fuelled by soaring demand in China, where the skins are used to manufacture…

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Duxton’s Agri Bits and Pieces – Vol. 334

QUOTE OF THE WEEK

This week’s quote of the week comes from Profarmer grain analyst Angus Thornton in relation to surging wheat futures on the Chicago Board of Trade, where prices reached a peak of $225/t in response to severe blizzards that blanketed Kansas.

“News of the blizzard came at a time when speculators in the market held record short positions – meaning they were betting prices would decline…because things have been so quiet for a while, there’s a tendency for the market to get a bit excited…early last week, traders get nervous and moved to cover up their short positions. That drove up the price. In reality it is still too early to tell what damage the blizzard will cause”

GLOBAL DAIRY PRICE RECOVERY BACK ON TRACK AFTER FOURTH STRAIGHT RISE

Global dairy prices rose on Wednesday for the fourth international auction in a row, a strong indicator that last year’s…

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Duxton’s Agri Bits and Pieces – Vol. 333

QUOTE OF THE WEEK

This week’s quote of the week comes from Western Australian honey producer Stephen Davies, one of the state’s largest producers.

“Major producers are doubling hive numbers, infrastructure is being put in place, and more research is being done into the health properties of honey…One of the largest businesses here in Western Australia has already increased from 900 hives to over 1,200…they intend to get up well over 2,000 hives…The demand from Asia for those active honeys is just exponentially growing day by day…China and Japan, Korea markets are very, very keen on the active properties…On a limited supply we’re achieving very, very good prices, some upwards of $20 and $30  a kilo for those high-grade honeys with proven active properties.”

 

AVOCADO PRICES ARE SKYROCKETING

That bowl of guacamole on Cinco de Mayo will be more expensive this year, as avocado prices rise to a record on surging demand and a smaller crop in Mexico and California.

A 10-kilogram (22-pound) box…

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Duxton’s Agri Bits and Pieces – Vol. 332

QUOTE OF THE WEEK

This week’s quote of the week comes from Professor Harvey Millar from the University of Western Australia following the publication of the world’s most comprehensive analysis of the wheat genome.

“So its probably found about 25 per cent of wheat genes that we really didn’t even know existed before. And there were a whole heap of others that were quite fragmented that we didn’t really know where they were. We now have an exact address for them…one of the problems farmers have is that not only do they have long term problems – things like drought and salinity and frost where we don’t really have ideal solutions, and sometimes it’s a long time for new varieties to come through – this should speed up the rate at which new varieties are available”

CHINA LAUNCHES A PORK-PRICE INDEX TO SMOOTH THE “PIG CYCLE”

PIG is big in China. As the country’s economy has grown, so too has its consumption of…

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Duxton’s Agri Bits and Pieces – Vol. 331

QUOTE OF THE WEEK

This week’s quote of the week comes from USDA’s Grain report on World Markets and Trade with Australia’s expected record barley crop,

Australia is projected to be the largest exporter in 2016/17, supplanting the EU and supplying a quarter of the world’s demand…the implementation of the China-Australian Free Trade Agreement has provided Australia a competitive advantage with the removal of the import duty for barley’

ORGANIC ‘GREENWASHING’ PROMPTS PUSH FOR TIGHTER FOOD LABELLING LAWS

Australia’s certified organic industry is expected to be worth more than $2 billion by next year but it is fighting to ensure fake organic claims do not damage its reputation.

Export volumes rose nearly one-fifth last year, and demand for Australian organic products continues to outstrip supply both at home and abroad, according to the latest report from industry and certifying group Australian Organic Ltd.

But Australian Organic chairman Andrew Monk said the industry faced two big challenges:
Fixing chronic shortages of organic grain, which is restricting the…

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Duxton’s Agri Bits and Pieces – Vol. 330

QUOTE OF THE WEEK

This week’s quote of the week comes from KPMG’s head of markets and agriculture technology Ben van Delden on encouraging Australian agriculture to embrace and adopt new technologies.

“It’s pretty fundamental that as an industry we acted and collaborate more tightly, around how do we sponsor ag tech start-ups to design solutions that our growers require for the markets that we operate in…I think it is one of Australia’s advantages, because we have such challenging conditions, technology that works here can pretty much work anywhere else in the world.

LAVENDER SET TO BLOOM IN THE EXPLOSIVE CHINESE COSMETICS INDUSTRY

In the last three years, the Parker-Bentons have been approached three times by Chinese brands as the increase in Chinese tourism into rural Australia sparked Chinese interest in agricultural products.

That interest has gone beyond milk powder and 2017 is seen by many as a year when cosmetics take a bigger role in China-Australia trade.

Steven Ko, Pearlosophy co-founder, says the Chinese cosmetic industry…

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Duxton’s Agri Bits and Pieces – Vol. 329

QUOTE OF THE WEEK

This week’s Bits and Pieces features topics presented at the Global Food Forum which has helped set the agenda for agribusiness in Australia. This week’s quote of the week comes from Cargill chief executive David MacLennan, on the major opportunity for Australia to sell more food products to Asian markets following the US’s decision to abandon the Trans Pacific Partnership global trade deal.

“I think with scrapping of the TPP and with consumption increasing in places like Indonesia, China, other nations in Southeast Asia, I think it’s a wonderful opportunity for Australia to step up and fill the gap,”

GLOBAL CANOLA PRICES EXPECTED TO FALL AS SUPPLIES OF OILSEEDS RISE

Agricultural commodities analysts are expecting the price of canola to drop in coming months with larger crops of oilseeds to be harvested.

Australian grain producers are currently preparing for seeding, with the oil seed fetching around a $250 per tonne premium over the highest quality wheat it’s expected lots…

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Duxton’s Agri Bits and Pieces – Vol. 328

QUOTE OF THE WEEK

This week’s quote of the week comes from Anthony Pratt, executive chairman at Visy, on the rising number of manufacturing plants as one of the keys to Australia’s success in increasing food exports from $27 billion to $42 billion during the same period.

“Our agriculture sector just made its highest contribution to GDP growth since 2008…we need a constant focus on food exports to our Asian neighbours especially because our seasons are counter-cyclical to Asia’s, which is a great opportunity.”

CHINA’S SOYBEAN IMPORTS TO SET RECORD FOR 14TH SEASON IN A ROW

China’s soybean imports will set a record high for a 14th consecutive season, backed by ever-growing demand for protein and vegetable oils – although South American exporters, rather than the US, will pick up the extra demand.

US Department of Agriculture staff in Beijing, in their first forecasts for 2017-18, pegged Chinese soybean imports, by far the world’s biggest, at 89m tonnes, up 3m tonnes year on year on its estimates.

That would extend a spell of unbroken annual increases in Chinese purchases going back…

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Duxton’s Agri Bits and Pieces – Vol. 327

QUOTE OF THE WEEK

This week’s quote comes from the Food and Agriculture Organisation, on the role that women play as the backbone of rural agriculture.

“In developing countries, women make up 45% of the agricultural labour force, ranging from 20% in Latin America to up to 60% in certain parts of Africa and Asia…Evidence from Africa, Asia and Latin America consistently shows that significant improvements in food security can be achieved by expanding women’s access to productive resources and technologies.”

CHINA, EU CUT IMPORTS OF BRAZIL MEAT AMID SCANDAL

Australian beef exports may win a greater share of Asian imports after a Brazilian meat scandal has rocked the industry.

China and the European Union curtailed meat imports from Brazil on Monday after police, in an anti-corruption probe criticised by the government as alarmist, accused inspectors in the world’s biggest exporter of beef and poultry of taking bribes to allow sales of rotten and salmonella-tainted meats.

As the scandal deepened, Brazil’s Agriculture Minister Blairo Maggi said the…

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