Tuesday, January 3, 2006 - Daily Update
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| 2.
US Foodservice Restructures; 700 Jobs Cut
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Ahold today announced the amount of restructuring and related charges that it expects to record in the fourth quarter of 2005 at its U.S. Foodservice subsidiary related to the long-term strategy for U.S. Foodservice as announced on November 29, 2005.
The charges are expected to range between USD 50 million and USD 60 million and reflect expenses associated with planned workforce reduction, asset impairments, lease expenses related to facilities to be exited, termination of contractual obligations and other miscellaneous charges. The workforce reduction initiative will result in the elimination, on a net basis, of nearly 700 positions at the company's facilities across the United States, including approximately 500 administrative positions.
The amounts above are preliminary and may be subject to change.
Source: Royal Ahold/ News Release, Dec. 30, 2005 Source URL: http://www.ahold.com/index.asp?id=1249 |
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| 3.
Kraft Ends GM Ingredient Use in China
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One of the world’s largest food makers will stop using genetically modified ingredients in all products sold in China starting in 2007.
Kraft Foods, the world’s second-largest food maker, said decisions like this are made on a market-by-market basis and take into consideration the national regulations, labeling requirements, and consumer preferences, among other things.
Source: Forbes/ AFX, Dec. 21, 2005 Source URL: http://www.forbes.com/home/feeds/afx/2005/12/21/afx2409190.html |
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| 4.
USDA Hearing on Appalachian, SE Milk Orders
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The U.S. Department of Agriculture today announced that it will hold an emergency public hearing to consider proposals seeking to amend the Appalachian and Southeast Federal Milk Marketing Orders. The hearing will begin at 8:30 a.m. on Jan. 10, 2006, at the Hyatt Regency Louisville, 320 West Jefferson St., Louisville, Ky. 40202.
The proposals seek to amend the orders by: 1) increasing the maximum assessment rate of the transportation credit balancing fund, 2) establishing an intra-market transportation credit, and 3) establishing a mileage rate factor that is adjusted for fuel cost. USDA will also consider proposals to amend certain producer milk provisions and other transportation credit balancing fund provisions.
Source: USDA/ AMS, Dec. 27, 2005 Source URL: http://www.ams.usda.gov/news/289-05.htm |
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MARKETS
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| 5.
Significantly Lower Farm Income Projected for 2006
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Net farm incomes were projected for 805 grain farms enrolled in Illinois Farm Business Farm Management (FBFM) Association. Average net farm income in 2005 is projected at $43,600 per farm, down by over 50% from actual farm income of $90,700 in 2004. These 805 farms averaged $54,300 from 2001 through 2004. Hence, the 2005 net farm income is projected to be below the previous five-year average income. Average income in 2005 is lower than the 2003 and 2004 incomes but is higher than the 2001 and 2002 incomes.
Source: Farmdoc/ University of Illinois/ Dale Lattz, Gary Schnitkey and Paul Ellinger, Dec. 28, 2005 Source URL: http://www.farmdoc.uiuc.edu/manage/newsletters/ fefo05_24/fefo05_24.html |
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| 6.
Ag Prices: Milk Prices Dip
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The preliminary All Farm Products Index of Prices Received by Farmers in December, at 114, based on 1990-92=100, increased 1 point (0.9 percent) from November. The Crop Index is up 4 points (3.8 percent) but the Livestock Index decreased 2 points (1.7 percent). Producers received higher commodity prices for tomatoes, corn, strawberries, and lettuce. Lower prices were received for oranges, broilers, dairy, and grapes. The overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased average marketings of dairy, wheat, oranges, and broilers offset decreased marketings of cattle, soybeans, grapes, and corn.
Dairy Products: The December index, at 113, is down 2.6 percent from a month ago and 10 percent lower than December last year. The December all milk price of $14.70 is down 40 cents from last month and down $1.70 from December 2004. The fluid grade milk price is down 30 cents from November but the manufactured grade milk price is unchanged from last month.
Source: USDA/ NASS, Dec. 29, 2005 Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/agpr1205.txt |
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PRODUCTION
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| 7.
Molecular Beacons and BRSV
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Understanding viral pathogenesis is critical for prevention of outbreaks, development of antiviral drugs, and biodefense. Here, we utilize molecular beacons to directly detect the viral genome and characterize a clinical isolate of bovine respiratory syncytial virus (bRSV) in living cells.
Taken together, the use of molecular beacons for active virus imaging provides a powerful tool for rapid viral infection detection, the characterization of RNA viruses, and the design of new antiviral drugs.
Source: Live-Cell Characterization and Analysis of a Clinical Isolate of Bovine Respiratory Syncytial Virus, Using Molecular Beacons. Journal of Virology, January 2006, p. 682-688, Vol. 80, No. 2. Philip Santangelo, Nitin Nitin, Leslie LaConte, Amelia Woolums, et al. |
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| 8.
Trait Decisions in Corn: What’s a Grower Choose?
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Corn hybrid selection is becoming more complicated, as companies increasingly introduce specific traits that are contained in the seed and incorporated into seed prices. Hybrids are available that contain traits for herbicide resistance (Roundup Ready, Liberty Link, and Clearfield) or insect resistance (Bt rootworm, Bt corn borer), or combinations of these ("stacked hybrids"). While corn growers at one time selected hybrids based primarily on performance - yield, standability, and dry down - they must now decide whether they need and are willing to pay for hybrids with transgenic insect and herbicide resistance. In addition, several corn diseases have become more prevalent in the past few years, and choosing hybrids with the best resistance to key diseases remains important.
Similar to conventional hybrids, there is a range in the performance of hybrids with transgenic traits. Growers should not have to sacrifice performance in order to use certain insect or herbicide resistance traits.
Source: Ohio State University/ CORN Newsletter/ Mark Loux, Ron Hammond, Bruce Eisley, and Peter Thomison, Dec. 7, 2005 Source URL: http://corn.osu.edu/index.php?setissueID=118#E |
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| 9.
Study: Soybean Losses Due to Air Pollution
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How serious are air pollution-induced productivity losses to agriculture, especially to soybeans (Glycine max L.)? We can gain an appreciation for the magnitude of the problem by considering the case of East Asia, which is home to 25% of the world's population but which produces only 21% of humanity's cereal needs. For that particular part of the planet, Wang and Mauzerall (2004) report that air pollution, and especially that due to ozone (O3), is an increasingly serious problem that negatively impacts agricultural productivity and exacerbates the problem of diminishing food security. Hence, they deemed it important to evaluate the impact of rising surface O3 concentrations in East Asia on agricultural production in 1990 and its projected impact in 2020. According to their "conservative estimates," as they describe them, they concluded that "due to O3 concentrations in 1990, China, Japan and south Korea lost ... 23-27% of their yield of soybeans," and that by 2020, the "loss due to increased levels of O3 pollution is projected to increase to ... 28-35% for soybeans." As a result of these and other O3-induced crop losses, the two scientists concluded that "East Asian countries are presently on the cusp of substantial reductions in grain production," which means they are also "on the cusp" of substantial reductions in food security that could have dire consequences for them and much of the rest of the world.
Source: CO2 Science, Nov. 16, 2005 Source URL: http://www.co2science.org/scripts/CO2ScienceB2C/ subject/a/summaries/agsoypollution.jsp |
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OTHER STORIES
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| 10.
Brazilian Dairy Aims for Middle East, Africa
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A Brazilian dairy trading company is targeting the Middle East for Brazilian companies, while determining to expand its market in Africa as well.
Serlac Trade is prospecting in Saudi Arabia, the United Arab Emirates and Yemen in addition to working with markets in Algeria, Tunisia, Egypt, Libya, Mauritania, Senegal, Angola, Nigeria and Sudan.
Source: ANBA/ Alexandre Rocha, Dec. 30, 2005 Source URL: http://www.anba.com.br/ingles/noticia.php?id=9525
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