�AY-JUNE . 2024 � �AGROBiz
Foreign News 07
Shifting markets
SLOWING demand for essential commodities such as wheat and soybeans continues to depress prices for farmers , according to the latest U . S . Department of Agriculture ( USDA ) estimates . Meanwhile , rising prices could spell long-term volatility for the meat industry .
The USDA ’ s latest World Agricultural Supply and Demand Estimates report indicated a marginal downward revision in wheat , corn , and soybean prices . In contrast , prices for cattle , pigs , and poultry are anticipated to increase .
Most farmers have sold their crops for the 2023-2024 cycle ; however , a few retain their goods in anticipation of increased prices .
The following is an overview of the USDA ’ s forecasts :
• Large corn and soybean harvests have
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lowered prices , while wheat returns remain low due to limited demand . Corn demand has increased due to ethanol and animal feed . Compared to last month , ethanol corn was up 25 million bushels ( a unit of volume used for measuring agricultural produce such as corn or beans ) to 5.4 billion . However , the USDA expects the season-average maise price to drop 5 cents to US $ 4.70 per bushel from last month .
Similar to soybeans , substantial domestic stocks offset demand increases . Domestic soybean supply has increased due to lower exports and South American competition . The USDA predicts soybean prices at US $ 12.55 per bushel , down 10 cents from March .
Wheat fell five cents to US $ 7.10 a bushel from a month earlier . Domestic consumption has declined due to lower feed use and weak global demand .
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• Red meat and poultry prices are rising , reflecting a volatile long-term outlook for many livestock producers . Beef production has grown due to increasing slaughter rates , and the USDA anticipates rising exports . However , dwindling cattle supplies will destabilise the market by dramatically boosting consumer meat prices .
The cow herd in the United States began 2024 with the lowest inventory level since 1951 and will likely continue to fall .
According to the USDA , rising prices
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may also diminish total chicken demand . The agency noted that “ higher prices may affect trade in several price-sensitive markets .” Chicken prices in other nations are projected to become more competitive as feed costs fall .
Pork , on the other hand , is doing better than anticipated .
Higher slaughter rates and more pigs per litter led the USDA to raise its predictions for pork production . In 2024 , U . S . pork exports are expected to climb by about 8 per cent , driven by strong demand in South Korea , Japan , and Mexico .
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From pond to plate
FDA ’ s new rules for produce farmers
THE Food and Drug Administration ( FDA ) recently published a final rule , released on May 6 , 2024 , replacing the 2015 pre-harvest water quality standards and testing mandates with a systematic approach .
This new approach focused on identifying potential hazards and determining necessary actions to proactively address and minimise contamination risks .
Produce farmers are now required to assess their agricultural water and implement measures to prevent harmful bacteria from contaminating the nation ’ s supply of fruits and vegetables .
While tainted water is crucial in major outbreaks , farms weren ’ t previously mandated to test water for pathogens .
A notable incident was the 2018 E . coli outbreak , which affected multiple states and was linked to contaminated romaine lettuce . It caused nearly 200 illnesses and five deaths .
Investigations traced the strain to a Yuma County irrigation canal in Arizona , near a concentrated animal feeding operation , though the facility ’ s role remained unclear .
This update has been eagerly awaited within agricultural and public health communities for over a decade as the FDA grappled with updating the Produce Safety rule amidst rising rates of food recalls .
As stated in public comments , many agriculture stakeholders criticised the 2015 rule for establishing “ one-size-fits-all ” requirements for agricultural water . The FDA then recognised deficiencies in the scientific understanding of water quality monitoring .
The rule , set to go into force on Jul 5 , 2024 , has compliance deadlines based on farm size , and these assessments do not modify existing requirements for water-related activities during harvest and post-harvest stages .
EDONIA , a French startup that created plant-based meat alternatives from microalgae , raised € 2 million in funding led by Asterion Ventures .
The potential of microalgae as a nutrient-dense food source for humans grew as the search for environmentally responsible food solutions continued .
Some microalgae species were cultured in wastewater from other food sectors , such as finfish aquaculture , which added value to the supply chain and provided sustainable protein .
In creating their products , Edonia strategically utilised micro-algae that were already authorised for use within the EU , such as spirulina and chlorella , which expedited the commercialisation process .
In a Press release from the Com-
THE Islamic Corporation for the Insurance of Investment and Export Credit ( ICIEC ), a key player within the Islamic Development Bank ( IsDB ) Group , had officially announced the signing of a Memorandum of Understanding ( MoU ) with Saudi Arabia ’ s Agricultural Development Fund .
This significant agreement was formalised during the IsDB Group Annual Meeting 2024 in Riyadh , Saudi Arabia . The signing ceremony involved the CEO of ICIEC , Oussama Kaissi , and the Chief Strategy Officer of the Agricultural Development Fund , Adel bin Abdullah Al-Jumaa .
The primary objective of this MoU was to establish a collaborative framework between ICIEC and the Agricultural Development Fund , focusing on strategic initiatives to promote mutual interests .
These initiatives will include capacity-building programs centred around Islamic insurance , export
Hugo Valentin
pany , Co-Founder and CEO Hugo Valentin emphasised his desire to make a difference by providing an environmentally responsible protein source while maintaining a highquality , flavoursome product that consumers would enjoy .
Valentin said : “ Microalgae , known for their nutritional and ecological virtues , can be a fundamental tool for
MoU signed for agricultural insurance advancements in Riyadh
MoU between ICIEC and Agricultural Development Fund .
credit insurance , and foreign investment insurance . The ultimate goal is to bring tangible benefits to the agricultural value chain within Saudi Arabia and across other ICIEC member states .
Furthermore , the MoU was food industry professionals in this respect . But it has to taste good ! That ’ s what we ’ re offering : delicious protein ingredients that are hyper-nutritious and with very little processing or pollutants .
“ At a time of climate emergency , when our food generates 34 per cent of greenhouse gas emissions , the greening of our plates needs to accelerate .”
designed to enhance understanding of ICIEC ’ s business model and services among the Agricultural Development Fund ’ s employees . It will also facilitate partnerships with relevant unions and professional associations , fostering professional development and cooperation within the sector .
Oussama expressed his enthusiasm about this partnership : “ Our partnership with the Saudi Agricultural Development Fund marks a significant advancement in our ongoing efforts to support economic growth through bespoke insurance solutions .
“ We remain steadfast in our commitment to fostering a comprehensive understanding of our insurance models and cultivating a collaborative environment that will yield tangible benefits for the agricultural sectors within the Kingdom of Saudi Arabia and our member States .”