Ross Heading To China
Following Governor Brown’s successful trip to China in April, CDFA Secretary Karen Ross will lead an agricultural trade delegation to China and Vietnam from September 16-21, 2013, as part of the California State Trade and Export Promotion (California STEP) program. This mission will visit Shanghai and Ho Chi Minh City with the goal of providing export business opportunities and sales for California farmers, ranchers and food processors.
The California-China Trade and Investment Office in Shanghai, opened by Governor Brown during his trade mission, will play an important role for delegation members by connecting California businesses with Chinese counterparts interested in purchasing California products. The California-China Office of Trade and Investment provides in-market assistance to California companies and furthers foreign direct investment opportunities in California.
California businesses participating in the trade mission will have individual meetings with foreign importers, briefings by U.S. agricultural officials, and visit wholesale/retail market outlets to learn about in-market distribution and sales formats.
China is California’s third largest export destination for agricultural products, with more than $1.7 billion in exports. Vietnam currently ranks as the 12th largest export destination for California agriculture products, with exports valued at more than $196 million – a 43 percent increase in exports from the previous year. On average, California farmers export globally about 25 percent of their production, generating nearly 115, 000 jobs and $21.6 billion in economic activity. Over the last 10 years, California has more than doubled the value of its agricultural exports. In 2011, California agricultural exports were valued at $16.8 billion.
The California Centers for International Trade Development, the Governor’s Office of Business and Economic Development, and the California-China Trade and Investment Office. Funding for this trade mission will come from a grant administered by the U.S. Small Business Administration. Companies interested in participating in the trade mission should contact the Fresno Center for International Trade Development at (559) 324-6401
India Opens Door For California Walnuts
On July 12, the Ministry of Agriculture in India published notification of Schedule VI of Plant Quarantine Order 2003 allowing California walnuts to be shipped to India. Walnuts can ship immediately with special conditions under the phytosanitary protocol defined in Order 2003.
The industry has eagerly awaited this news following a two year market access process. “India will play an important role in developing the industry’s future consumers,” states California Walnut Commission Chairman Donald Norene. “Opening the Indian market is consistent with our strategy of market expansion,” he goes on to say. Walnut production has doubled in the last ten years, reaching 496,000 short tons this year.
India’s increasingly affluent middle class, currently estimated at 250 million, is expected to reach 400 million by 2020. Unlike other developing nations, over 30% of middle class income is spent on food and beverages. Walnuts are an ideal complement to the traditional vegetarian based diet because they contain alpha-linolenic acid/omega-3 fatty acid which is currently deficient in the Indian diet.
Although walnut consumption is currently low (0.02 lbs. per capita), with the predominance of walnuts grown in India exported, the industry expects California walnuts to be in high demand.
“The Indian consumer has yet to experience the quality and taste distinctions that make California walnuts unique”, states Charles (Chuck) Crain, President, Crain Walnut Shelling. “The majority of Indian walnut users report eating walnuts for their health benefits. Our industry’s health research program has confirmed walnuts are beneficial for cardiovascular health which is a leading health concern in India,” he concludes.
The expertise of both the California Walnut Board (CWB) and California Walnut Commission (CWC) working together helped make Indian market access possible. The Board evaluated the phytosanitary protocol and supported post harvest research that contributed to the review process while the Commission petitioned the Indian Ministry in working with colleagues at USDA’s Animal Health and Plant Inspection Service (APHIS) and Foreign Agriculture Service (FAS) to facilitate the process.
“Walnuts are now the fourth leading export from the state of California, valued at nearly $1 billion dollars,” states Dennis. A. Balint, CWC Chief Executive Officer. 58% of the crop was exported in 2011 to countries on five continents. California walnuts account for more than 99% of the commercial U.S. supply and control roughly three-fourths of world trade.
In India, most walnuts are consumed raw as a snack food. Walnuts have primarily been consumed during the festival season (September to January), but they are now beginning to be consumed year-round as awareness of their health benefits grows and as they become available in smaller and medium cities. About 10 percent of domestic production goes to bakery, confectionary, and ice-cream industries. Around 2 to 3 percent of walnuts (normally rancid nuts) are used for oil extractions by soap and cosmetic manufacturers.
Due to extra-ordinary health benefits walnuts are getting popular especially among health conscious young Indians as a part of their regular diet. While the demand for Walnuts in India grows, domestic walnut production has remained almost stagnant. Growing economy, changing lifestyles, rise in disposable incomes and preference for quality products have increased the demand of good quality walnuts from countries like USA.
Fonterra Quality Issue Opens Door For US Milk Exports
New Zealand-based Fonterra is reacting to news that some of its milk powder shipments to China, its largest customer, involving three batches of whey protein concentrate-80, tested positive for the bacterium Clostridium Botulinum which can cause botulism.
But a Fonterra news release says China will not close the doors to all Fonterra shipments. Still competitors like the US may be able to offer more product given the uncertainty.
“Fonterra has received confirmation from the Ministry for Primary Industries a short time ago that China has not imposed a blanket ban on Fonterra’s products. Chinese authorities have temporarily suspended importation of whey powder and dairy base powder (a whey based dairy ingredient used in the manufacture of infant formula) produced by Fonterra, or produced in Australia using Fonterra’s whey protein powder as an ingredient (including whey protein concentrate).
China has also increased inspection and supervision at the border for New Zealand dairy products, and indicated extra testing may be required.
“MPI has confirmed that China has not closed the market to New Zealand dairy products – and that China is being quite specific about the range of Fonterra products which it has temporarily suspended.
“Whole Milk Powder and Skim Milk Powder have not been suspended,” said NZ Milk Products Managing Director Gary Romano.
“We have been told that MPI is not aware of any additional market closures. It is, however, getting clarity on reports that Russia appears to have put a temporary ban on New Zealand dairy products.”
Fonterra is continuing to work closely with the Ministry for Primary Industries to manage food safety concerns in New Zealand and around the world.
“Our top priority is the safety of consumers, and working with customers and regulators to make sure the public is protected.”