Posts
27 October 2008 - From Bob's Guide
Trade financing is evolving due to changing global trade patterns as well as shifts in supply and demand. The emergence of Asia and growth prospects in Latin America and Africa have had a significant impact on banks' trade financing techniques.In a new report, Trade Finance: Servicing an Evolving Global Economy , Celent provides in-depth analysis of new international trade patterns. In the first half of 2008, world trade growth decelerated to 4.5 percent, down from 5 percent in the third quarter of 2007. It is likely to be even lower by the end of 2008. In developed economies, business and consumer demand have continued to fall, and industrial production has weakened. In contrast, the growth rate in developing countries is currently around 7 percent, contributing more than 40 percent to global output growth in 2007.South-South trade, the trade between developing countries, is playing an increasingly important role. Asia is the world's most important trade hub, with intra-Asian trade accounting for about 90 percent of total South-South trade. As of 2008, developing countries have a 40 percent share of world exports. The 2030 estimate is that 45 percent of international trade will be by developing countries, while higher income countries' share will fall by 13 percent to 55 percent.Latin America is another emerging trade hub. Demand for agro-products from Latin America is increasing, driven by the rapid expansion of the middle class in China and India. This demand has been heightened by Latin America's use of alternative energy sources.Trade financing techniques are changing as credit availability becomes more limited and risk capital requirements are on the rise. Open accounts seem to be the preferred choice for trading firms and more and more clients want their banks to enhance their supply chains.Intra-firm trade comprises 45 percent of international trade and is a major driver of open account transactions. Another trend is the ever increasing contributions of small and medium enterprises to merchandise trade, which range from 20 percent to as high as 60 percent in some countries."There is a strong belief that we are just one major crisis away from returning to traditional products, but in the aftermath of subprime crisis, we have not seen a return of the L/Cs," says Axel Pierron , Senior Vice President at Celent and coauthor of the report."Basel II will limit the trade financing activities of banks through higher allocation of risk capital," says Sreekrishna Sankar. "With the securitization market experiencing turmoil, international trade financing will attract other sources of funding such as hedge funds."This report examines emerging trade flow patterns and the new opportunities trade finance represents for banks. It looks at how banks should adapt their business models based on trends in trade and tighter credit controls. The report concludes with key points for banks on refocusing and repositioning themselves in order to remain competitive in this new trade climate.
Tuesday, October 28, 2008
Lift for export prices as shipping prices plunge
MATT CAWOOD
23/10/2008 6:16:00 PM
Australia can now ship its agricultural commodities a lot more cheaply, thanks to the global economic downturn, which has seen the costs of ocean shipping plunge in past months.
Faced with a rapid downturn in shipping, and credit challenges of their own, shipowners large and small are now mothballing or even scrapping ships and waiting for a turnaround—if circumstances allow.
“Shipping is an entrepreneurial game, and there are people losing their shirts at the moment,” executive director of the Australian Shipowners Association, Teresa Hatch, says.
“But it might be the bust that we had to have.
"Shipyards have been so far behind on meeting demand, people have been waiting up to four years for a ship.”
Manager of ABB’s Barley Marketing Operations, Rob Green, says getting a 60,000 tonne bulk shipment of grain to Saudi Arabia three months ago cost US$90-$100 per tonne.
Now, that's down to US$25-$30 a tonne — a rate that hasn’t been seen for at least five years.
Mr Green says the downturn has been so steep that there is now the threat that older ships will be scrapped, creating another cargo shortage if economic conditions pick up again.
“While there will be an impact, no-one is talking about panicking,” he says.
Ms Hatch agreed, saying that there are now likely to be a lot of small bulk carriers vying for contracts to ship grain.
But like the financial meltdown itself, it’s difficult to see what the ultimate consequences of the shipping downturn will be.
Whole shipping lines have frozen up, according to a Business Spectator report on Tuesday, because shipowners don’t want to take the risk of carting cargo for clients who may not be able to pay because of the credit crisis.
“Like many of the other clogged arteries of global finance, letters of credit and therefore global shipping could presumably unclog fairly quickly if the interbank credit market got moving again,” wrote the article’s author, Alan Kohler.
“But a big fall in shipping rates, as measured by the key price indicator, the Baltic Dry Index, is always a harbinger of a downturn in trade and therefore economic activity.”
The Baltic Dry Index of bulk shipping rates has collapsed 89pc since May, from 12,000 to 1355.
23/10/2008 6:16:00 PM
Australia can now ship its agricultural commodities a lot more cheaply, thanks to the global economic downturn, which has seen the costs of ocean shipping plunge in past months.
Faced with a rapid downturn in shipping, and credit challenges of their own, shipowners large and small are now mothballing or even scrapping ships and waiting for a turnaround—if circumstances allow.
“Shipping is an entrepreneurial game, and there are people losing their shirts at the moment,” executive director of the Australian Shipowners Association, Teresa Hatch, says.
“But it might be the bust that we had to have.
"Shipyards have been so far behind on meeting demand, people have been waiting up to four years for a ship.”
Manager of ABB’s Barley Marketing Operations, Rob Green, says getting a 60,000 tonne bulk shipment of grain to Saudi Arabia three months ago cost US$90-$100 per tonne.
Now, that's down to US$25-$30 a tonne — a rate that hasn’t been seen for at least five years.
Mr Green says the downturn has been so steep that there is now the threat that older ships will be scrapped, creating another cargo shortage if economic conditions pick up again.
“While there will be an impact, no-one is talking about panicking,” he says.
Ms Hatch agreed, saying that there are now likely to be a lot of small bulk carriers vying for contracts to ship grain.
But like the financial meltdown itself, it’s difficult to see what the ultimate consequences of the shipping downturn will be.
Whole shipping lines have frozen up, according to a Business Spectator report on Tuesday, because shipowners don’t want to take the risk of carting cargo for clients who may not be able to pay because of the credit crisis.
“Like many of the other clogged arteries of global finance, letters of credit and therefore global shipping could presumably unclog fairly quickly if the interbank credit market got moving again,” wrote the article’s author, Alan Kohler.
“But a big fall in shipping rates, as measured by the key price indicator, the Baltic Dry Index, is always a harbinger of a downturn in trade and therefore economic activity.”
The Baltic Dry Index of bulk shipping rates has collapsed 89pc since May, from 12,000 to 1355.
Melbourne moves to ease congestionBy
Ian Jarrett Perth
Port of Melbourne is clearing the way for more efficient use of its container berths, but while dredging of the port's shipping channels continues on schedule, congestion on the wharves is restricting movement of containers.The congestion has forced Australia's shipping industry body to make a fresh call for improvements to container clearing facilities at Australia's largest container port.Shipping Australia Ltd (SAL) chief executive Llew Russell said his members warned the Port of Melbourne Corporation long ago that with the continued growth of containers, existing facilities would be put under severe pressure."Our fears have come to pass," he said. "Our members using the DP World container terminal at Swanson Dock in Melbourne have complained that they have been unable to ship out all the empty containers they need to, due to yard congestion."One member had to cancel 3,000 planned exports of empties over the past two months.'' The SAL chief acknowledged that more vessels were falling outside their berthing windows due to international trading conditions, "but this has to be expected and should be capable of being handled''.Russell called for an investigation into the potential for metropolitan intermodal terminals to relieve the pressure.Shipping Australia recently agreed to a trial organised by Tradegate called PortBis in Sydney to explore the advantages for all parties in community-based data systems. A trial is also being conducted in Melbourne under the Freight Connect umbrella and the results of the Sydney trial will provide a comparison for shipping lines.Russell said these types of systems were now in place in more than 25 ports worldwide. "Eventually we will need to standardise on basically one type of system nationally if all the potential benefits of these types of systems are to be realised," he said.
Port of Melbourne is clearing the way for more efficient use of its container berths, but while dredging of the port's shipping channels continues on schedule, congestion on the wharves is restricting movement of containers.The congestion has forced Australia's shipping industry body to make a fresh call for improvements to container clearing facilities at Australia's largest container port.Shipping Australia Ltd (SAL) chief executive Llew Russell said his members warned the Port of Melbourne Corporation long ago that with the continued growth of containers, existing facilities would be put under severe pressure."Our fears have come to pass," he said. "Our members using the DP World container terminal at Swanson Dock in Melbourne have complained that they have been unable to ship out all the empty containers they need to, due to yard congestion."One member had to cancel 3,000 planned exports of empties over the past two months.'' The SAL chief acknowledged that more vessels were falling outside their berthing windows due to international trading conditions, "but this has to be expected and should be capable of being handled''.Russell called for an investigation into the potential for metropolitan intermodal terminals to relieve the pressure.Shipping Australia recently agreed to a trial organised by Tradegate called PortBis in Sydney to explore the advantages for all parties in community-based data systems. A trial is also being conducted in Melbourne under the Freight Connect umbrella and the results of the Sydney trial will provide a comparison for shipping lines.Russell said these types of systems were now in place in more than 25 ports worldwide. "Eventually we will need to standardise on basically one type of system nationally if all the potential benefits of these types of systems are to be realised," he said.
Maritime industry offered a life raft
October 24, 2008 - 10:18AM
Australia's struggling shipping industry may have a lifeline thanks to new recommendations from a parliamentary committee.
There are only about 40 commercial ships left flying the Australian flag.
The number has been in free fall for a decade and without government intervention the decline appears terminal. But recommendations from a parliamentary committee this week could provide salvation.
Following the brutal waterside fight between former prime minister John Howard, his industrial relations minister Peter Reith and the unions, the shipping industry was left to die.
With Labor back in town the industry is looking for a kickstart.
It has been given one by the committee's report which recommends major legislative changes to the way shipping is taxed and the creation of a National Maritime Training Authority.
While Transport Minister Anthony Albanese has not committed the government to adopting any of the committee's recommendations, Labor's intentions are clear.
Earlier this year Albanese called for the profile of the industry to be raised.
"The government's aim is for a viable coastal shipping industry in a competitive domestic transport sector," he said in a speech to industry leaders in June.
Albanese was more guarded following the committee's findings.
"The government will now consider the report's recommendations in detail and respond to each of them during 2009," he said.
One of those recommendations is for the introduction of a tonnage tax.
The tax would be optional, but likely popular because it would allow companies to calculate tax on their tonnage rather than their profit.
"Recently, ships have been highly profitable, so a tonnage tax regime is considered to be of particular economic benefit," the committee wrote.
Similar taxes are in place in Britain, Belgium, Germany, Greece, Norway and Denmark.
Committee chair and Labor backbencher Catherine King said the chief inspiration had come from the UK, where the tax was successful in increasing the number of British registered ships.
The tax has support across the industry. Both the Maritime Union of Australia (MUA) and the Australian Shipowners Association (ASA) back the plan.
There is just one catch for companies who want to take advantage of the flat tax rate - they have to train new staff.
"The (staff) shortage has been described as reaching a critical point and is undoubtedly the biggest issue facing the industry today," the committee found.
Just one per cent of local seafarers are 21 or under and by 2010 the ASA says the industry will be 2,000 staff short, further adding to bulging capacity constraints across the wider transport sector.
Paddy Crumlin is the national secretary of the MUA and sees the committee's findings as a lifeline for both an industry and a way of life.
"If intelligently developed and implemented the policies and regulatory proposals in the report provide the basis for Australia to become a regional centre for maritime trade and training in the Asia Pacific region," Crumlin said.
The union veteran may just get his way.
Australia's struggling shipping industry may have a lifeline thanks to new recommendations from a parliamentary committee.
There are only about 40 commercial ships left flying the Australian flag.
The number has been in free fall for a decade and without government intervention the decline appears terminal. But recommendations from a parliamentary committee this week could provide salvation.
Following the brutal waterside fight between former prime minister John Howard, his industrial relations minister Peter Reith and the unions, the shipping industry was left to die.
With Labor back in town the industry is looking for a kickstart.
It has been given one by the committee's report which recommends major legislative changes to the way shipping is taxed and the creation of a National Maritime Training Authority.
While Transport Minister Anthony Albanese has not committed the government to adopting any of the committee's recommendations, Labor's intentions are clear.
Earlier this year Albanese called for the profile of the industry to be raised.
"The government's aim is for a viable coastal shipping industry in a competitive domestic transport sector," he said in a speech to industry leaders in June.
Albanese was more guarded following the committee's findings.
"The government will now consider the report's recommendations in detail and respond to each of them during 2009," he said.
One of those recommendations is for the introduction of a tonnage tax.
The tax would be optional, but likely popular because it would allow companies to calculate tax on their tonnage rather than their profit.
"Recently, ships have been highly profitable, so a tonnage tax regime is considered to be of particular economic benefit," the committee wrote.
Similar taxes are in place in Britain, Belgium, Germany, Greece, Norway and Denmark.
Committee chair and Labor backbencher Catherine King said the chief inspiration had come from the UK, where the tax was successful in increasing the number of British registered ships.
The tax has support across the industry. Both the Maritime Union of Australia (MUA) and the Australian Shipowners Association (ASA) back the plan.
There is just one catch for companies who want to take advantage of the flat tax rate - they have to train new staff.
"The (staff) shortage has been described as reaching a critical point and is undoubtedly the biggest issue facing the industry today," the committee found.
Just one per cent of local seafarers are 21 or under and by 2010 the ASA says the industry will be 2,000 staff short, further adding to bulging capacity constraints across the wider transport sector.
Paddy Crumlin is the national secretary of the MUA and sees the committee's findings as a lifeline for both an industry and a way of life.
"If intelligently developed and implemented the policies and regulatory proposals in the report provide the basis for Australia to become a regional centre for maritime trade and training in the Asia Pacific region," Crumlin said.
The union veteran may just get his way.
Oil prices slip on demand risks
Brian Baskin October 28, 2008
CRUDE oil futures settled near a 17-month low as concerns about falling demand outweighed talk of a second OPEC production cut.Light, sweet crude for December delivery settled down US93 cents, or 1.5 per cent, at $US63.22 a barrel on the New York Mercantile Exchange, the lowest settlement price since May 29, 2007. December Brent crude on the ICE futures exchange settled down US64c, or 1 per cent, at $US61.41 a barrel. Oil prices remain locked in a downward spiral based on expectations that global demand growth will be drastically lower in 2009 as economies cool worldwide. While little new happened to deepen demand worries, the market failed to receive any sign that it had hit bottom, either. Futures rallied briefly on comments by Organisation of Petroleum Exporting Countries secretary general Abdalla Salem el-Badri that the group could hold a second emergency meeting before its regular session in December. Mr El-Badri raised the prospect of another production cut, on top of the 1.5 million-barrels-a-day reduction announced last Friday, at OPEC's first emergency meeting. "OPEC is just going to address the supply side," said Darin Newsom, senior analyst with DTN, a market information service. "Adjustments to supply are not having the desired effect on the market, and they probably won't." Market participants have also raised doubts that OPEC members will fully comply with cuts. The US is moving toward an oversupply of crude, with analysts anticipating a 1.6-million-barrel build in crude stocks in weekly data due later this week from the US Energy Information Administration. Oil inventories are already above the five-year average, as refiners hold down runs in response to weak demand. "Refiners aren't in a real hurry to start making a lot of product that they're not selling much of," said Phil Flynn, an analyst with Alaron Trading. "Crude should continue to build for a while." Analysts surveyed by Dow Jones also gave an average forecast of a 1.8-million-barrel build in petrol inventories and a 500,000-barrel build in distillate stocks, which include heating oil and diesel.
CRUDE oil futures settled near a 17-month low as concerns about falling demand outweighed talk of a second OPEC production cut.Light, sweet crude for December delivery settled down US93 cents, or 1.5 per cent, at $US63.22 a barrel on the New York Mercantile Exchange, the lowest settlement price since May 29, 2007. December Brent crude on the ICE futures exchange settled down US64c, or 1 per cent, at $US61.41 a barrel. Oil prices remain locked in a downward spiral based on expectations that global demand growth will be drastically lower in 2009 as economies cool worldwide. While little new happened to deepen demand worries, the market failed to receive any sign that it had hit bottom, either. Futures rallied briefly on comments by Organisation of Petroleum Exporting Countries secretary general Abdalla Salem el-Badri that the group could hold a second emergency meeting before its regular session in December. Mr El-Badri raised the prospect of another production cut, on top of the 1.5 million-barrels-a-day reduction announced last Friday, at OPEC's first emergency meeting. "OPEC is just going to address the supply side," said Darin Newsom, senior analyst with DTN, a market information service. "Adjustments to supply are not having the desired effect on the market, and they probably won't." Market participants have also raised doubts that OPEC members will fully comply with cuts. The US is moving toward an oversupply of crude, with analysts anticipating a 1.6-million-barrel build in crude stocks in weekly data due later this week from the US Energy Information Administration. Oil inventories are already above the five-year average, as refiners hold down runs in response to weak demand. "Refiners aren't in a real hurry to start making a lot of product that they're not selling much of," said Phil Flynn, an analyst with Alaron Trading. "Crude should continue to build for a while." Analysts surveyed by Dow Jones also gave an average forecast of a 1.8-million-barrel build in petrol inventories and a 500,000-barrel build in distillate stocks, which include heating oil and diesel.
Australian Dollar Falls, RBA Intervenes; N.Z. Currency Advances
By Candice Zachariahs
Oct. 28 (Bloomberg) -- The Australian dollar plunged to a five-year low against the greenback, as concern over a global recession led investors to buy the U.S. dollar as a safe haven. New Zealand's currency gained.
The Reserve Bank of Australia bought its own currency for the third day as it came close to dropping below 60 U.S. cents for the first time since April 2003. Australia's currency slid against the yen for a sixth session as U.S. stocks declined after the Standard & Poor's 500 Index swung between gains and loses at least 20 times during the day.
Carry-trades and commodities ``have previously been big supporting factors for the Aussie,'' said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia. ``They're being pared back in the global margin call that we're seeing being unwound now. We see more downside pressure to the Aussie,'' he said referring to the currency by its nickname.
The Australian dollar fell for a sixth day, dropping to 60.09 U.S. cents, the weakest since April 2003, before trading at 60.14 U.S. cents as of 8:04 a.m. in Sydney from 60.58 cents late in Asia yesterday. It fell 0.7 percent to 55.71 yen from 56.11 yen yesterday.
New Zealand's dollar gained 0.3 percent to 54.19 cents from 54.01 in Asian trading yesterday. It bought 50.14 yen from 50 yen.
Australia's dollar has lost 37 percent against the yen in the past month and New Zealand's is 31 percent weaker as investors bought back Japan's currency borrowed in so-called carry trades used to purchase the South Pacific nations' assets.
RBA Intervention
The central bank intervened in the market, a spokesman for the Sydney-based RBA said today by phone. He declined to be identified. The intervention came amid similar circumstances to those yesterday and on Oct. 24, when the bank ``provided liquidity,'' according to the spokesman.
Australia's currency is the worst-performer of the world's 16 most-active currencies against the dollar and yen in the past month as investors have dumped equities amid widespread concern that the global economy will fall into recession.
The currency rallied briefly yesterday after the Group of Seven expressed concern over the ``recent excessive volatility'' in the exchange rate of the yen.
``We expect any bounce to be quite temporary'' as a result of intervention, said David Forrester, a currency economist at Barclays Capital, in Singapore yesterday. ``There's no quick fix that policy makers can undertake to alleviate the problems which currently are impacting on foreign-exchange markets.''
Benchmark interest rates are 6 percent in Australia and 6.5 percent in New Zealand, compared with 0.5 percent in Japan and 1.5 percent in the U.S. The differences in yield have attracted investors to the South Pacific nations' assets. The risk in such trades is that currency market moves will erase profits.
To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net
Oct. 28 (Bloomberg) -- The Australian dollar plunged to a five-year low against the greenback, as concern over a global recession led investors to buy the U.S. dollar as a safe haven. New Zealand's currency gained.
The Reserve Bank of Australia bought its own currency for the third day as it came close to dropping below 60 U.S. cents for the first time since April 2003. Australia's currency slid against the yen for a sixth session as U.S. stocks declined after the Standard & Poor's 500 Index swung between gains and loses at least 20 times during the day.
Carry-trades and commodities ``have previously been big supporting factors for the Aussie,'' said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia. ``They're being pared back in the global margin call that we're seeing being unwound now. We see more downside pressure to the Aussie,'' he said referring to the currency by its nickname.
The Australian dollar fell for a sixth day, dropping to 60.09 U.S. cents, the weakest since April 2003, before trading at 60.14 U.S. cents as of 8:04 a.m. in Sydney from 60.58 cents late in Asia yesterday. It fell 0.7 percent to 55.71 yen from 56.11 yen yesterday.
New Zealand's dollar gained 0.3 percent to 54.19 cents from 54.01 in Asian trading yesterday. It bought 50.14 yen from 50 yen.
Australia's dollar has lost 37 percent against the yen in the past month and New Zealand's is 31 percent weaker as investors bought back Japan's currency borrowed in so-called carry trades used to purchase the South Pacific nations' assets.
RBA Intervention
The central bank intervened in the market, a spokesman for the Sydney-based RBA said today by phone. He declined to be identified. The intervention came amid similar circumstances to those yesterday and on Oct. 24, when the bank ``provided liquidity,'' according to the spokesman.
Australia's currency is the worst-performer of the world's 16 most-active currencies against the dollar and yen in the past month as investors have dumped equities amid widespread concern that the global economy will fall into recession.
The currency rallied briefly yesterday after the Group of Seven expressed concern over the ``recent excessive volatility'' in the exchange rate of the yen.
``We expect any bounce to be quite temporary'' as a result of intervention, said David Forrester, a currency economist at Barclays Capital, in Singapore yesterday. ``There's no quick fix that policy makers can undertake to alleviate the problems which currently are impacting on foreign-exchange markets.''
Benchmark interest rates are 6 percent in Australia and 6.5 percent in New Zealand, compared with 0.5 percent in Japan and 1.5 percent in the U.S. The differences in yield have attracted investors to the South Pacific nations' assets. The risk in such trades is that currency market moves will erase profits.
To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net
Asian enquires rise for Australian dairy
By James Nunez
Tuesday, 07/10/2008
The milk powder contaminations in China, which killed four babies, and caused tens of thousands of children to become sick, has boosted export demand for Australian dairy products.The Murray Goulburn Dairy Co-operative is reporting a 20 to 30 per cent increase in inquiries from Asian markets.Most Murray Goulburn products are produced in Victoria, but the processor plays an important role in setting the price Australian dairy farmers get paid for their milk. General Manager of International Sales for Murray Goulburn, Mal Beniston, says the contamination has caused consumers to think twice about Chinese milk products."So my guess is yes, there'll be a short-term increase in demand for products particularly from Australia, New Zealand and Europe. But ultimately there's a lot of milk in China which I'm sure will get right eventually."
In this report: Mal Beniston, general manager of international sales, Murray Goulburn.
Tuesday, 07/10/2008
The milk powder contaminations in China, which killed four babies, and caused tens of thousands of children to become sick, has boosted export demand for Australian dairy products.The Murray Goulburn Dairy Co-operative is reporting a 20 to 30 per cent increase in inquiries from Asian markets.Most Murray Goulburn products are produced in Victoria, but the processor plays an important role in setting the price Australian dairy farmers get paid for their milk. General Manager of International Sales for Murray Goulburn, Mal Beniston, says the contamination has caused consumers to think twice about Chinese milk products."So my guess is yes, there'll be a short-term increase in demand for products particularly from Australia, New Zealand and Europe. But ultimately there's a lot of milk in China which I'm sure will get right eventually."
In this report: Mal Beniston, general manager of international sales, Murray Goulburn.
GM - A national perspective
By Cameron Wilson
Friday, 10/10/2008
With the heads of each state farmers group in Hobart, The Country Hour took the chance to discuss the different approach three states are taking to GM policy.President of the West Australian Farmers Federation Mike Norton explained how the change of state government is leading to a re-think of the planned moratorium and the expectation that regulated commercial planting of GM crops will go ahead.President of the New South Wales Farmers Association Jock Laurie explained the licensing system that is regulating GM crop production in NSW and the focus of segregating the GM industry from conventional growers.President of the Tasmanian Farmers and Graziers Association Roger Swain gave his thought on the different state approaches and the implications for Tasmania.
In this report: Mike Norton, president of the West Australian Farmers Federation; Jock Laurie, president of the New South Wales Farmers Association; Roger Swain, president TFGA
Friday, 10/10/2008
With the heads of each state farmers group in Hobart, The Country Hour took the chance to discuss the different approach three states are taking to GM policy.President of the West Australian Farmers Federation Mike Norton explained how the change of state government is leading to a re-think of the planned moratorium and the expectation that regulated commercial planting of GM crops will go ahead.President of the New South Wales Farmers Association Jock Laurie explained the licensing system that is regulating GM crop production in NSW and the focus of segregating the GM industry from conventional growers.President of the Tasmanian Farmers and Graziers Association Roger Swain gave his thought on the different state approaches and the implications for Tasmania.
In this report: Mike Norton, president of the West Australian Farmers Federation; Jock Laurie, president of the New South Wales Farmers Association; Roger Swain, president TFGA
Call for urgent bee biosecurity
By Rosemary Grant
Monday, 13/10/2008
The Australian Honey Bee Industry Council wants immediate action to reduce the risk of pests and diseases, and it's calling for a national incursion simulation to see where weaknesses are.The Council also wants baited hives installed near all ports to trap any bees arriving on ships and planes.Council chairman, Lindsay Bourke says vegetable and fruit industry groups are also joining them to pressure the Government to implement recommendations from a Senate inquiry into the future development of the industry."All the people who use our services have got together in the Pollination Australia industry alliance and they are putting real money in where their mouth is to fight incursions and all the things that will affect our honey bee industry. We've got $430,000 to spend on that," he said.
In this report: Lindsay Bourke, chairman of the Australian Honey Bee Industry Council
Monday, 13/10/2008
The Australian Honey Bee Industry Council wants immediate action to reduce the risk of pests and diseases, and it's calling for a national incursion simulation to see where weaknesses are.The Council also wants baited hives installed near all ports to trap any bees arriving on ships and planes.Council chairman, Lindsay Bourke says vegetable and fruit industry groups are also joining them to pressure the Government to implement recommendations from a Senate inquiry into the future development of the industry."All the people who use our services have got together in the Pollination Australia industry alliance and they are putting real money in where their mouth is to fight incursions and all the things that will affect our honey bee industry. We've got $430,000 to spend on that," he said.
In this report: Lindsay Bourke, chairman of the Australian Honey Bee Industry Council
Tasmanian farm machinery exports a winner
By Eliza Wood
Monday, 13/10/2008
The global credit crisis was no doubt on the minds of those at the Tasmanian Export Awards on Friday night in Hobart.The head of one of the winning companies, Philip Dobson from Dobson's Vegetable Machinery, says it's a real concern in his line of work.The Ulverstone-based business, in its 25th year, took home the Regional Exporter Award.Philip Dobson says they strive to be different in order to compete."We obviously have to compete with a lot of international companies, major European and American manufacturers. We aim to have alternate products because we could never compete head on with some of the major manufacturers," he said.
In this report: Philip Dobson, Dobson's Vegetable Machinery.
Monday, 13/10/2008
The global credit crisis was no doubt on the minds of those at the Tasmanian Export Awards on Friday night in Hobart.The head of one of the winning companies, Philip Dobson from Dobson's Vegetable Machinery, says it's a real concern in his line of work.The Ulverstone-based business, in its 25th year, took home the Regional Exporter Award.Philip Dobson says they strive to be different in order to compete."We obviously have to compete with a lot of international companies, major European and American manufacturers. We aim to have alternate products because we could never compete head on with some of the major manufacturers," he said.
In this report: Philip Dobson, Dobson's Vegetable Machinery.
Tasmanian farm machinery exports a winner
By Eliza Wood
Monday, 13/10/2008
The global credit crisis was no doubt on the minds of those at the Tasmanian Export Awards on Friday night in Hobart.The head of one of the winning companies, Philip Dobson from Dobson's Vegetable Machinery, says it's a real concern in his line of work.The Ulverstone-based business, in its 25th year, took home the Regional Exporter Award.Philip Dobson says they strive to be different in order to compete."We obviously have to compete with a lot of international companies, major European and American manufacturers. We aim to have alternate products because we could never compete head on with some of the major manufacturers," he said.
In this report: Philip Dobson, Dobson's Vegetable Machinery.
Monday, 13/10/2008
The global credit crisis was no doubt on the minds of those at the Tasmanian Export Awards on Friday night in Hobart.The head of one of the winning companies, Philip Dobson from Dobson's Vegetable Machinery, says it's a real concern in his line of work.The Ulverstone-based business, in its 25th year, took home the Regional Exporter Award.Philip Dobson says they strive to be different in order to compete."We obviously have to compete with a lot of international companies, major European and American manufacturers. We aim to have alternate products because we could never compete head on with some of the major manufacturers," he said.
In this report: Philip Dobson, Dobson's Vegetable Machinery.
Farmers pin hopes on GE grass
By Kathy Cogo
Tuesday, 14/10/2008
Would you buy milk labelled as having a genetically engineered product?Farmers are considering growing a genetically engineered grass in future which reduces the amount of methane a cow produces. A collaboration between Australian scientists and a New Zealand stock and station company is researching a grass which is hoped to maintain production levels at the same time as reducing greenhouse gas emissions.Researchers have found that the amount of methane a cow produces depends on what they eat.Lachlan McKenzie from Federated Farmers of New Zealand explains why scientists are developing a high sugar grass. "Methane is the bi-product of protein, the break down of protein and so if you have a higher sugar content in your pasture relative to the protein then the animal can use that protein rather than having to break it down for energy use." Mr McKenzie says as a result the grass should produce a more productive cow. He says they might have little choice but to grow GE grass in future. "Politicians in their wisdom have certainly indicated on both sides of the Tasman that they want to decrease the emissions of greenhouse gases from agricultural land ... so that's why the pressure's on for the researchers to actually come up with solutions for the regulations that are coming in." Are they worried about trying to sell milk that derives from genetically engineered grass? No. Mr McKenzie thinks consumers are more pragmatic and accepting in their attitudes towards GE food.
In this report: Lachlan McKenzie, dairy representative, Federated Farmers of New Zealand
Tuesday, 14/10/2008
Would you buy milk labelled as having a genetically engineered product?Farmers are considering growing a genetically engineered grass in future which reduces the amount of methane a cow produces. A collaboration between Australian scientists and a New Zealand stock and station company is researching a grass which is hoped to maintain production levels at the same time as reducing greenhouse gas emissions.Researchers have found that the amount of methane a cow produces depends on what they eat.Lachlan McKenzie from Federated Farmers of New Zealand explains why scientists are developing a high sugar grass. "Methane is the bi-product of protein, the break down of protein and so if you have a higher sugar content in your pasture relative to the protein then the animal can use that protein rather than having to break it down for energy use." Mr McKenzie says as a result the grass should produce a more productive cow. He says they might have little choice but to grow GE grass in future. "Politicians in their wisdom have certainly indicated on both sides of the Tasman that they want to decrease the emissions of greenhouse gases from agricultural land ... so that's why the pressure's on for the researchers to actually come up with solutions for the regulations that are coming in." Are they worried about trying to sell milk that derives from genetically engineered grass? No. Mr McKenzie thinks consumers are more pragmatic and accepting in their attitudes towards GE food.
In this report: Lachlan McKenzie, dairy representative, Federated Farmers of New Zealand
Lowering trade barriers will ease world hunger
By Will Ockenden
Thursday, 16/10/2008
Australian farm groups say lowering international trade barriers is the best way to ensure global food security.Today's World Food Day, an annual event promoted by the United Nation's Food and Agriculture organisation. The focus this year is global food security. As financial turmoil becomes the major focus for politicians, there are warnings that food security remains an critical issue.Earlier this year, there were riots in Indonesia, Haiti and the Philippines as wheat and rice prices more than doubled. Mick Keogh, from the Australian Farm Institute, said there'd be a lot fewer hungry people in the world if agricultural trade was opened up. "The balance between demand and supply is tipping back towards increased demand, which hasn't been the case for the last 50 years," he said. "I think that's going to put pressure on governments to recognise the need to free up agricultural trade, and in that way to increase the flow of food and food supplies globally."At a busy inner-city Melbourne supermarket shoppers are buying food for dinner. Shopper Cameron Wolf said while food prices in Australia have increased, at least it's available. "I think it's one of the things we take for granted. It's hard to say weather we appreciate what we've got or the fact that the country we live in runs itself to provide markets for food."Shortages of rice are now common in many parts of the world, but that only hit home in Australia when supermarkets put limits on how much rice could be bought per person.Dr Beth Woods chairs the International Rice Research Institute. She said the rising price of food has caused the most pain for poor people in third world countries. "Some countries have provided additional payments to poor people, others have released government stores of food. Some of those are measures you wouldn't want to see in the long term, but in the short term governments should see it as a number one priority to ensure their people have food."
In this report: Director of the Australian Farm Institute Mick Keogh;Chair of the International Rice Research Institute Dr Beth WoodsSupermarket shopper Cameron Wolf
Thursday, 16/10/2008
Australian farm groups say lowering international trade barriers is the best way to ensure global food security.Today's World Food Day, an annual event promoted by the United Nation's Food and Agriculture organisation. The focus this year is global food security. As financial turmoil becomes the major focus for politicians, there are warnings that food security remains an critical issue.Earlier this year, there were riots in Indonesia, Haiti and the Philippines as wheat and rice prices more than doubled. Mick Keogh, from the Australian Farm Institute, said there'd be a lot fewer hungry people in the world if agricultural trade was opened up. "The balance between demand and supply is tipping back towards increased demand, which hasn't been the case for the last 50 years," he said. "I think that's going to put pressure on governments to recognise the need to free up agricultural trade, and in that way to increase the flow of food and food supplies globally."At a busy inner-city Melbourne supermarket shoppers are buying food for dinner. Shopper Cameron Wolf said while food prices in Australia have increased, at least it's available. "I think it's one of the things we take for granted. It's hard to say weather we appreciate what we've got or the fact that the country we live in runs itself to provide markets for food."Shortages of rice are now common in many parts of the world, but that only hit home in Australia when supermarkets put limits on how much rice could be bought per person.Dr Beth Woods chairs the International Rice Research Institute. She said the rising price of food has caused the most pain for poor people in third world countries. "Some countries have provided additional payments to poor people, others have released government stores of food. Some of those are measures you wouldn't want to see in the long term, but in the short term governments should see it as a number one priority to ensure their people have food."
In this report: Director of the Australian Farm Institute Mick Keogh;Chair of the International Rice Research Institute Dr Beth WoodsSupermarket shopper Cameron Wolf
Financial crisis hits dairy markets
By Sally Dakis
Friday, 17/10/2008
Dairyfarmers have been warned to expect more volatility in dairy prices as a result of the global financial crisis.Dairy commodities have been cut by 20 per cent over the past few months, and Dairy Australia is predicting more uncertainty in the market.Dairy Australia's manager of Strategy and Knowledge Joanne Bills says the crisis is having an impact on some of Australia's key dairy export markets in Asia."Already over the last couple of months commodity prices have dropped quite sharply, around 20 per cent on average, in particular milk powders have been under a fair bit of pressure" she said."We're probably expecting that those prices will continue to be volatile, it's a very tight supply and demand situation still, but we are seeing some signs of demand softening and the possibility that we will have more supply to the world market. So perhaps a bit more weakness in those commodity prices to come".But Ms Bills says Dairy Australia is unable to quantify the magnitude of further falls."It is really difficult to predict at this stage, they have fallen very sharply in the last couple of months, we hope we don't continue to experience falls like that. We feel that there might be some more downward pressure on milk powders because of the activity of the US and the European Union, and the supply that's coming on stream from South America and New Zealand.""We think that butter and cheese has probably got a bit more resilience in terms of pricing for those commodities."In spite of this outlook though, Joanne Bills says dairy farmer confidence in the industry remains strong, with historically high farm gate prices, and farmers adopting a medium to long term outlook in the industry.
In this report: Joanne Bills, Dairy Australia's manager of Strategy and Knowledge
Friday, 17/10/2008
Dairyfarmers have been warned to expect more volatility in dairy prices as a result of the global financial crisis.Dairy commodities have been cut by 20 per cent over the past few months, and Dairy Australia is predicting more uncertainty in the market.Dairy Australia's manager of Strategy and Knowledge Joanne Bills says the crisis is having an impact on some of Australia's key dairy export markets in Asia."Already over the last couple of months commodity prices have dropped quite sharply, around 20 per cent on average, in particular milk powders have been under a fair bit of pressure" she said."We're probably expecting that those prices will continue to be volatile, it's a very tight supply and demand situation still, but we are seeing some signs of demand softening and the possibility that we will have more supply to the world market. So perhaps a bit more weakness in those commodity prices to come".But Ms Bills says Dairy Australia is unable to quantify the magnitude of further falls."It is really difficult to predict at this stage, they have fallen very sharply in the last couple of months, we hope we don't continue to experience falls like that. We feel that there might be some more downward pressure on milk powders because of the activity of the US and the European Union, and the supply that's coming on stream from South America and New Zealand.""We think that butter and cheese has probably got a bit more resilience in terms of pricing for those commodities."In spite of this outlook though, Joanne Bills says dairy farmer confidence in the industry remains strong, with historically high farm gate prices, and farmers adopting a medium to long term outlook in the industry.
In this report: Joanne Bills, Dairy Australia's manager of Strategy and Knowledge
Frost losses at 40 per cent for some growers
By Cameron Wilson
Friday, 24/10/2008
Frost has destroyed up to 40 per cent of fruit crops for some growers worst hit by the drop in temperature earlier in the week.Temperatures dropped to well below zero in the Midlands, Derwent Valley, Coal River Valley and Huon Valley on Wednesday night and Thursday morning this week, at a time when cherries, apples, apricots and wine grapes are highly vulnerable to frost damage.After initial assessment it was thought that most growers has escaped serious damage, but Ken Bell from fruit marketers TopQual says those orchards that have been hit are now reporting extensive damage."The Derwent Valley is probably showing on some orchards there, (but) not all orchards, some growers had some fairly extensive frost protection in place and have been able to minimise the damage but on some other orchards there cold be up to 40 per cent (crop loss)."Around the Richmond area seems to be a little bit more damaged than other areas in the Coal River, Richmond is showing around about 40 per cent damage as well and there could be some damage even in the apricots out there."
In this report: Ken Bell, managing director TopQual
Friday, 24/10/2008
Frost has destroyed up to 40 per cent of fruit crops for some growers worst hit by the drop in temperature earlier in the week.Temperatures dropped to well below zero in the Midlands, Derwent Valley, Coal River Valley and Huon Valley on Wednesday night and Thursday morning this week, at a time when cherries, apples, apricots and wine grapes are highly vulnerable to frost damage.After initial assessment it was thought that most growers has escaped serious damage, but Ken Bell from fruit marketers TopQual says those orchards that have been hit are now reporting extensive damage."The Derwent Valley is probably showing on some orchards there, (but) not all orchards, some growers had some fairly extensive frost protection in place and have been able to minimise the damage but on some other orchards there cold be up to 40 per cent (crop loss)."Around the Richmond area seems to be a little bit more damaged than other areas in the Coal River, Richmond is showing around about 40 per cent damage as well and there could be some damage even in the apricots out there."
In this report: Ken Bell, managing director TopQual
Nickel market tarnished by credit crunch
Report: Babs McHugh
A year ago, it was being called the 'new gold', but now the price of nickel has plummeted so low, it's costing more to produce than it's worth.Nickel is used in quality stainless steel.From a high of US$50,000 a tonne 18 months ago, it's now worth one fifth of that.Carey Smith, from Alto Capital, says nickel is another casualty of the global credit turmoil."Nickel's been caught up in the whole commodity cycle, and if you look at all the coppers and the zincs and the leads, they've fallen just as much basically, but nickel's fallen a bit further than most," he says."With the credit crisis in the US, in Europe and the UK, people just need money. They'll sell anything at any price."
A year ago, it was being called the 'new gold', but now the price of nickel has plummeted so low, it's costing more to produce than it's worth.Nickel is used in quality stainless steel.From a high of US$50,000 a tonne 18 months ago, it's now worth one fifth of that.Carey Smith, from Alto Capital, says nickel is another casualty of the global credit turmoil."Nickel's been caught up in the whole commodity cycle, and if you look at all the coppers and the zincs and the leads, they've fallen just as much basically, but nickel's fallen a bit further than most," he says."With the credit crisis in the US, in Europe and the UK, people just need money. They'll sell anything at any price."
Grain growers counting cost of recent frost
By Cameron Wilson
Monday, 27/10/2008
As midday temperatures peak today in the mid 20's, spare a thought for midlands grain growers who're taking stock of barley and canola crops that have been badly hit by frost.The extent of the frost damage to broad acre cereals and oilseeds is only now emerging, after last Thursday's cold snap.Rural reporter Rosemary Grant says for some farmers this will now be the third years of failed crops."I've talked to one consultant this morning who's travelled from Tunbridge through (Cambell Town) and north as far as Evandale and into the Fingal Valley."Certainly in the low lying areas it's pretty extensive."I spoke to one farmer today who estimated that they've probably lost $1 million worth of crops just in their area."
In this report: Rose Grant, rural reporter
Monday, 27/10/2008
As midday temperatures peak today in the mid 20's, spare a thought for midlands grain growers who're taking stock of barley and canola crops that have been badly hit by frost.The extent of the frost damage to broad acre cereals and oilseeds is only now emerging, after last Thursday's cold snap.Rural reporter Rosemary Grant says for some farmers this will now be the third years of failed crops."I've talked to one consultant this morning who's travelled from Tunbridge through (Cambell Town) and north as far as Evandale and into the Fingal Valley."Certainly in the low lying areas it's pretty extensive."I spoke to one farmer today who estimated that they've probably lost $1 million worth of crops just in their area."
In this report: Rose Grant, rural reporter
Scientists push for GM labelling
By Jane Bardon
Monday, 27/10/2008
State and Federal food regulation meeting recently in Adelaide are facing renewed calls for all genetically modified food to be labelled.Fifteen Australian and international scientists have written an open letter to the ministers, saying independent studies are raising more concerns about GM food.And the scientists want testing of GM food to be done in Australia.At the moment only GM food with altered protein, for example foods containing GM soy, have to be labelled in Australia.Other foods containing highly processed GM like canola oil, cottonseed oil and corn, and even GM potatoes don't have to be labelled.Professor Jack Heineman is a molecular biologist at the University of Canterbury in New Zealand, and he says that has to change so consumers can choose."There is a growing number of independently derived studies that indicate the plausibility of harms that may have been overlooked, and certainly, could currently be overlooked using the types of studies that are available to our regulators now."Independent Australian food nutritionist Dr Rosemary Stanton says labelling is also needed because if health problems do arise with GM foods in future, nutritionists and scientists won't know where the problems have come from because they won't know which foods people have been eating contain Gm material.But the Chief Scientist at the national food regulator Food Standards Australia New Zealand Dr Paul Brent says the state and federal food ministers don't need to change labelling laws.In their letter to the food ministers, the scientists are also calling for an independent review of the safety assessment procedure for GM food.Rosemary Stanton agrees with them it's unacceptable that Food Standards doesn't do its own safety testing.It relies on tests done by the GM companies and peer reviews of that by food authorities in other countries.Paul Brent from Food Standards says its okay to rely on GM company data and international assessments of that."The US FDA and the Health Canada Food Directorate and the Japanese, and the European Food Safety Authority have all looked at the same data, and have all come up with the same independent conclusions that these GM foods are safe."The standard procedure all over the world for chemical and drugs and for foods is for industry to supply the data. This idea that it has to be independently tested is a furphy."The regulator also says in its recent consumer attitudes survey only one on percent of people were worried about eating GM.But Rosemary Stanton says if state and federal governments don't change the law and demand GM food testing by the regulator farmers will suffer.She thinks once the new GM canola crops being grown for the first time in some states start to enter the food chain consumers might start avoiding eating any canola to try not to eat GM.A spokeswoman for the Federal Government Parliamentary secretary for health, Jan McLucas says Australia's processes for assessing and labelling food are based on worlds best practice, and Food Standards is taking a very cautious approach.But GM labelling may be discussed at the meeting.
In this report: Professor Jack Heineman molecular biologist at the University of Canterbury in New Zealand, Dr Paul Brent Chief Scientist Food Standards Australia New Zealand; Dr Rosemary Stanton nutritionist
Monday, 27/10/2008
State and Federal food regulation meeting recently in Adelaide are facing renewed calls for all genetically modified food to be labelled.Fifteen Australian and international scientists have written an open letter to the ministers, saying independent studies are raising more concerns about GM food.And the scientists want testing of GM food to be done in Australia.At the moment only GM food with altered protein, for example foods containing GM soy, have to be labelled in Australia.Other foods containing highly processed GM like canola oil, cottonseed oil and corn, and even GM potatoes don't have to be labelled.Professor Jack Heineman is a molecular biologist at the University of Canterbury in New Zealand, and he says that has to change so consumers can choose."There is a growing number of independently derived studies that indicate the plausibility of harms that may have been overlooked, and certainly, could currently be overlooked using the types of studies that are available to our regulators now."Independent Australian food nutritionist Dr Rosemary Stanton says labelling is also needed because if health problems do arise with GM foods in future, nutritionists and scientists won't know where the problems have come from because they won't know which foods people have been eating contain Gm material.But the Chief Scientist at the national food regulator Food Standards Australia New Zealand Dr Paul Brent says the state and federal food ministers don't need to change labelling laws.In their letter to the food ministers, the scientists are also calling for an independent review of the safety assessment procedure for GM food.Rosemary Stanton agrees with them it's unacceptable that Food Standards doesn't do its own safety testing.It relies on tests done by the GM companies and peer reviews of that by food authorities in other countries.Paul Brent from Food Standards says its okay to rely on GM company data and international assessments of that."The US FDA and the Health Canada Food Directorate and the Japanese, and the European Food Safety Authority have all looked at the same data, and have all come up with the same independent conclusions that these GM foods are safe."The standard procedure all over the world for chemical and drugs and for foods is for industry to supply the data. This idea that it has to be independently tested is a furphy."The regulator also says in its recent consumer attitudes survey only one on percent of people were worried about eating GM.But Rosemary Stanton says if state and federal governments don't change the law and demand GM food testing by the regulator farmers will suffer.She thinks once the new GM canola crops being grown for the first time in some states start to enter the food chain consumers might start avoiding eating any canola to try not to eat GM.A spokeswoman for the Federal Government Parliamentary secretary for health, Jan McLucas says Australia's processes for assessing and labelling food are based on worlds best practice, and Food Standards is taking a very cautious approach.But GM labelling may be discussed at the meeting.
In this report: Professor Jack Heineman molecular biologist at the University of Canterbury in New Zealand, Dr Paul Brent Chief Scientist Food Standards Australia New Zealand; Dr Rosemary Stanton nutritionist
Subscribe to:
Posts (Atom)