Mexico's irrational fears, Aussie politicians and NZ GMO's

Here are some recent USDA FAS attache reports:

Mexico weekly highlights: The panic expressed by some agricultural workers’ associations regarding NAFTA’s full implementation in 2008 is more of a “psychological” issue than an actual threat, according to Blanca Villarello, General Coordinator of Trade and Export Promotion within the Mexican Ministry of Agriculture (SAGARPA). “With the exception of corn, beans, milk and sugar, all of the other products have been liberalized and we’re doing fine. I wouldn’t see it with fear: there’s so much interdependence between our countries that there’s no incentive to try to damage the relationship”, Villarello stated. She added that agricultural exports from Mexico to the United States increased 18% last year and the exports have diversified. “We used to export five different products, but now we send a large variety of products including vanilla, peppers and even grasshoppers,” stated Villarello. Her statements generated a series of negative reactions from agricultural workers association leaders, blaming her for being imprudent and irresponsible.

TK I thought California avocado growers were worried, but there is no lack of anxiety in Mexico.

Japan market highlights: * Aeon Co., Ltd., is contracting with farmers to produce for its private brand fruits and vegetables and to acquire Euro-Retailer Produce Working Group Good Agricultural Practices (EUREPGAP) certification. Since food safety is highly important nowadays, they are paying particular attention to the use of agricultural chemicals. So far two contract farmers have acquired the certificate, and Aeon will support other contract farmers’ efforts to acquire certification. (b. 5/30)

TK: Interesting concept: contract with farmers to produce private brand fruits and vegetables, with an emphasis on food safety. Could be a selling point to the consumer, I would say.

* The convenience store sector is very competitive so stores are looking for new ways to cultivate customers. Seven Eleven-Japan Co., Ltd. has started selling its products on the internet, and selling non-convenience type items over the counter (CDs/DVDs). Lawson Inc. and FamilyMart Co., Ltd. are now selling vegetables and magazines that competitor stores don’t carry.

TK: Vegetables in a convenience store? I'm trying to think if I have ever seen any vegetable in a U.S. convenience store, and my mind is drawing blank.

* South American “power fruits” are rapidly becoming popular in Japan. New fruits with names like “kamukamu” and “asai “are presently in Japan, and “molla” and “guanabanana” are beginning to make an appearance. Most of these have not been seen much less eaten in Japan. These are new to the eye and reportedly full of nutrition so they are a big hit and are expected to have continued rising sales. (g. 5/24)

TK: What is this kamukamu you speak of? Seriously, we can't be outdone by the Japanese when it comes to exotic fruits and vegetables. World Variety and Freida's should get right on this.

* Marshmallows, the soft, flexible sweet treat that is gentle to the tongue, are becoming popular. Hotels have begun selling these in gift packages, and specialty stores have begun putting them on the shelves. Various colors and shapes are being developed and it is being marketed as. “guimauve” or marshmallow in French. Many pastel colors are being used, as well as fruit-like sweet-sour tastes aimed at capturing the female market (b. 5/16)

TK: Marketers sold us bottled water, didn't they? Flavored, pastel colored marshmallows could be the next big thing....

* The “Food for Specific Health Uses” market reportedly reached 700 billion yen in 2006. Therefore the food industry is paying considerable attention to functional foods. These types of foods are geared toward older people. More so than ever, great attention is being focused on health by “active seniors”. (f. 5/24)

TK: Kind of rolls off the tongue.. Food for Specific Health Uses" market. As a nation, Japan is aging even faster than we are, but the trend of "functional foods" is likely to get plenty big in the U.S. as well.

Australia Senate finishes inquiry to NZ apple decision The Federal Government's Senate Regional & Rural Affairs Committee has now completed an inquiry into the decision made by Biosecurity Australia to allow apple imports from New Zealand. The Committee has stated that it remained to be convinced that the risk of establishment of the disease after the importation of contaminated fruit was low to very low. A full copy of the Senate Committee Report is available at: http://www.aph.gov.au/Senate/committee/rrat_ctte/apples_nz/report/report.pdf.

TK: The Australian Senate believes Biosecurity Australia has acted rashly in approving NZ apple imports. Tell that to New Zealand apple exporters who have waited decades for access...

NZ approves GM trials In May 2007, the Environmental Risk Management Authority (ERMA) approved an application by the New Zealand Institute for Crop and Food Research to field test genetically modified (GM) Brassicas in New Zealand. Approvals were granted for four trials of GM vegetable and forage Brassicas – broccoli, cabbage, cauliflower and forage kale. The Brassicas are to be modified for resistance to caterpillar pests, with the genes derived from the bacterium Bacillus thuringensis. The trials will be undertaken on a 0.4 hectare plot in the Lincoln area (Canterbury region of New Zealand’s South Island) over a 10 year period. For more information see the ERMA press release: http://www.ermanz.govt.nz/news-events/archives/media-releases/2007/mr-20070528.html. The approval is significant, as there have only been two approvals for field trials since New Zealand’s Royal Commission into GM (established by the New Zealand government to advise on how New Zealand should approach GM) in 2001. ERMA is expecting another two or three applications in the next 12 months.

TK: Wow. A 0.4 hectare plot for GM broccoli, cabbage, cauliflower and kale. Hey, it's a start.

New Zealand GMO Annual Report GM plants and animals are not commercially grown in New Zealand. However, a number of contained research trials involving genetically modified organisms are occurring and food products with GM content are legally offered for sale and consumption. To date, no application has been made for Government approval for a commercial release of a GM crop or the sale of fresh/whole GM foods. This appears unlikely to change during the next couple of years, as the first applicant will face a time and cost intensive regulatory process and will come under intensive public scrutiny and pressure from a number of different groups. It is thought that applications after the first successful one will be much easier as issues related to GM in general will have been dealt with.

TK: With GM modified fresh produce, it doesn't ever seem to pay to be first to the market. But without a first, there will never be a second.