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Friday Morning Update: Budget; Appropriations Hearing; Animal Production Issues; and, Trade

Budget

An update on Thursday evening at FarmPolicy.com explored recent budget related developments that could potentially have significant implications for the Farm Bill– the update can be viewed here: “Budget Issues Move to the Front Burner- Potential Farm Bill Implications.”

 

Appropriations Hearing

On Thursday, the Senate Appropriations Subcommittee on Agriculture heard testimony from FDA Commissioner Dr. Margaret Hamburg.

During the discussion portion of the hearing, a couple of Senators sought more detail and perspective about the FDA’s role as it relates to the recent Dietary Guidelines Advisory Committee Report– additional details on the hearing and the Dietary Guidelines report have been posted here, at FarmPolicy.com.

 

Animal Production Issues

In other news, Lisa Baertlein and P.J. Huffstutter reported yesterday that, “KFC, the world’s largest chain of fried chicken restaurants, may face pressure from consumer and environmental groups to change how its poultry are raised after McDonald’s Corp said it would switch to chicken raised without human antibiotics.

“McDonald’s will phase out chicken raised with antibiotics that are important to human health over two years to allay concern that use of the drugs in meat production has exacerbated the rise of deadly ‘superbugs’ that resist treatment, Reuters reported last week. Within days, retailer Costco Wholesale Corp told Reuters it aims to eliminate the sale of chicken and meat raised with human antibiotics.

KFC is owned by Louisville, Kentucky-based Yum Brands Inc, which has no publicly stated policy on antibiotic use in the production of meat it buys. Chick-fil-A, another chicken restaurant chain that competes with KFC, says about 20 percent of the chicken it serves is raised without any antibiotics, and that its entire supply chain will be converted by 2019.”

Also, a news release this week from Cargill indicated that, “Dr. Stephanie Cottee joins Cargill animal welfare team with global responsibility for poultry.

“She will be based in Guelph, Ontario, Canada and report to Dr. Mike Siemens, PhD, Cargill’s head of animal welfare based in Wichita, Kan. Dr. Cottee’s appointment is effective immediately.”

And Reuters writers Tom Polansek and P.J. Huffstutter reported yesterday that, “A case of bird flu confirmed Wednesday in the heart of America’s poultry region, is certain to mean more export restrictions, increasing U.S. supply and likely forcing the world’s biggest poultry companies to trim prices.”

The article noted that, “The USA Poultry & Egg Export Council said it expects 30 to 40 additional countries to impose new trade restrictions on U.S. poultry and eggs in the $5.7 billion export market. Additional limits could come from Mexico, the top U.S. chicken importer, which already is blocking poultry imports from Minnesota, Missouri and California due to bird flu, the trade group said.

“Previous cases of avian flu in other states triggered China and South Korea to recently impose bans, still in effect, on U.S. poultry imports. Last year, they accounted for about $428.5 million in export sales of poultry meat and products, according to U.S. Department of Agriculture data.

“Other countries have banned exports from only states or counties with positive cases of avian flu.”

See also this update yesterday from Kansas State University Extension, “Poultry bans by overseas buyers could weigh on pork and beef, as well as poultry prices.”

 

Trade

Chris Kirkham reported yesterday at the Los Angeles Times Online that, “The short-term economic impact of the recent labor standoff at West Coast ports will be small, according to a new economic forecast, but the ports face a long-term struggle to remain competitive in the rapidly changing realm of global trade.

Many businesses in California, particularly those tied to agriculture, suffered from missed orders and produce spoiling on docks. But many other shipments were simply delayed rather than lost entirely, according to the quarterly UCLA Anderson Forecast.”

And Ann M. Veneman and Dan Glickman, who respectively served as Agriculture Secretary for George W. Bush and Bill Clinton, indicated in a column this week at The Hill Online that, “As former secretaries of Agriculture, we know firsthand the importance of international trade to America’s farm and ranch families, to our nation’s rural communities, and to the U.S. economy as a whole. There’s no other sector of the U.S. economy where the link between trade and prosperity is clearer than in agriculture.”

The column noted that, “Key to our ability to negotiate and implement market-opening agreements has been enactment of trade negotiating authority. This authority, now called trade promotion authority (TPA), ensures U.S. credibility to conclude the best deal possible at the negotiating table. TPA also ensures common negotiating objectives between the president and Congress, and a continuous consultation process prior to final Congressional approval or disapproval of a trade agreement.

That’s why we, together with all living former secretaries of Agriculture, recently signed an open letter urging Congress to reinstate Trade Promotion Authority to allow the president to effectively negotiate job-supporting trade agreements as other presidents have done.

“With TPA, the United States will be able to pursue trade agreements that support high-paying U.S. jobs while helping America’s farmers and ranchers increase U.S. exports and compete in a highly aggressive globalized economy. TPA will signal to our TPP partners that Congress and the administration stand together on the high standards our negotiators are seeking.”

Keith Good