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International Market

U.S. beef and veal imports during January equaled 92,568 MT. This was 40.8percent higher than the previous month but was 6.9 percent lower than a yearago. Specifically, imports of fresh, chilled beef totaled 35,633 MT, which was15.2 percent more than the previous month and was 5.0 percent more than ayear ago. Imports of frozen beef totaled 53,498 MT, which was 68.5 percentmore than the previous month but was 13.4 percent less than a year ago.During January, the U.S. imported 31,876 MT of beef from Australia. This was 59.0 percent higher than the previous month but was 21.0 percent lower than ayear ago. Australia was the leading supplier of beef to the U.S. with 34.4percent of the total. During January, the U.S. imported 21,155 MT of beef fromNew Zealand. This was up 95.1 percent over the previous month and was up10.5 percent over last year. Beef imports from Canada during January rose 14.4percent over the previousmonth to 18,173 MT. This was 6.6 percent higherthan a year ago. Beef imports from Mexico during January rose 16.9 percentover the previous month to 12,359 MT. Also, this was up 19.6 percent over a year ago.

As soybeans made a surprising strong move higher yesterday, and the outlook remains bullish in today’s market report, soybean growers, global marketers, and other stakeholders gathered at the United Soybean Board (USB) meeting in Des Moines, Iowa, to determine how to use check-off funds to ramp up the global demand in 2016.

The global animal ag industry is U.S. soy’s biggest customer, consuming 90% of the annual U.S. soybean crop. However, the potential for aquaculture is increasing, as wild capture fisheries are expected to level off by 2030. Southeast Asia offers a huge market. “When this market blossoms, U.S. meal will play a major role as a source of aquaculture feed,” Loh says.

“Five Southeast Asia countries are the top 10 in the world when it comes to aquaculture production,” Loh says. “Vietnam is one of the largest catfish producers, but it’s diversifying its aquaculture portfolio with tilapia. Thailand is the home of one of the largest shrimp producing companies in the world.”

In Indonesia, soybeans are vital to human consumption, especially in a popular food staple called tempe. More than 60% of soybeans consumed in Indonesia are from the U.S.

Last year, 62% of U.S. soybean crop went into soymeal, and oil. “There’s a world market for U.S. soy exports, and U.S. soybean growers have a lot to gain from trade negotiations, including TPP and T-TIP,” Sutter says.

The world dairy situation remains little changed from the previous circular published in July 2015 as global dairy markets continue to struggle in the face of weak import demand and excess supplies. Milk production during 2015 among major suppliers is estimated to have expanded by 1 percent over the previous year; a sharp correction from the high 4 percent growth registered in 2014. For 2016, low milk prices are expected to restrain growth in milk output.

Although the pace of increasing milk production is forecast to slow, prices for such dairy products as skimmed milk powder (SMP) and whole milk powder (WMP) are expected to remain relatively weak.These products face strong head winds due to the continuation of the Russian ban on imports of dairy products, the strong dollar, and weak import demand from China. Absent a change in these variables or the onset of unfavorable weather, prices will likely not improve significantly in the first half of 2016.

In 2008, world sugar production amounted to 166.3 million tonnes with Indonesia its production amounted to 2.67 million tonnes of white sugar and 1:26 million tons of refined sugar. Average world sugar stocks of 3.3 million tonnes. While the world sugar consumption is about 163 million tons. The world sugar production is 70% of the rest of beet sugar cane. Indonesian sugar imports in 2008 amounted to 2.3 million tons of raw sugar, consisting of white sugar, refined sugar and raw sugar. Imports may come from Thailand, Brazil, the EU, Korea, Malaysia, Australia and South Africa.

Around 60 percent of global production is concentrated in five countries Nigeria, Brazil, Thailand,Indonesia and the Congo Democratic Republic. Worldcassava production since the 1970s has risenon average by 2.2 percent per annum. This growth has relied on an expansion of plantings ratherthan on rising productivity. (Compile from any sources).

International marketing is done mostly confined to trade between neighboring countries and are not always recorded statistically. The expansion is constrained by fresh cassava are bulky and perishable, which resulted in the highly risky product to be marketed and become foodstuffs unaffordable and expensive for urban communities. For the last few years have increased the development of fresh cassava trade intensification program of the indigenous populations from Latin America and Caribbean and as well as from Africa to developed countries, such as North America and Europe. Fresh cassava can exist in the market through the discovery of paraffin coating process, or smaller amount of CO2 put in the plastic bag to extend and maintain the fitness level of cassava.

Within 1995 and 2013, total corn demand rose by 57% within the same period. Alternative uses for the grain, most its use in biofuels, has influenced global corn prices. This alternative uses consume more corn than the feed industry, such have become a large determinant of corn prices. (Compile from any sources)

Indonesian corn imports are estimated to nearly double to 2.5 MMT in 2011 compared to the previous year of 1.337 MMT. Indonesia’s production of corn in 2010/11 is estimated to further decline by 2.17 percent to 6.75 MMT, over the previous year of 6.9 MMT. This decrease is mainly due to a decrease inplanted and harvested areas. The decline in production-combined with higher demand from feed millsand a major, new corn wet mill-will increase corn imports in year 2010/2011

Chile continues to be a strong trading partner and export market for U.S. companies, due to its market policies, zero tariffs, stable democratic government, solid business practices, and low corruption. While GDP growth over the last 30 years has averaged approximately 5% per year, the Chilean economy has slowed in recent years, with just 1.9% growth in 2014 and 2.1% in 2015. Forecasted 2016 GDP growth is just under 2%. (Source :

Customer market is the first market domain as the most important market domain comparing with others. This market domain has tree board groups that consist of buyer, intermediary and consumer. Customers market of red chili producer have two board groups, there are buyer and intermediaries. Red chili farmer will distribute their product to end customer through both group.

Fertilizer prices rose 5 percent in the first quarter(q/q), up for the second straight quarter (word bank, 2017). Fertilizer markets continue to face relatively weak global demand due to low crop prices. Fertilizer prices are projected to rise by 1 percent in 2017, mainly as a result of strong demand in the first quarter.
Source: World Bank, 2017