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August 31, 2012
 

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Coexistence Advisory Committee Sets Recommendations

In its fifth and final meeting, the Advisory Committee on Biotechnology and 21st Century Agriculture (AC21) agreed upon compromise recommendations regarding demands from the organic community that they be compensated for losses incurred for the unintended presence of genetically engineered (GE) materials in their crops.

Agriculture Secretary Vilsack revived the 23-member AC21 last year for the purpose of developing recommendations pertaining to the organic community’s demands. The group first met on Aug. 30-31, ’11, and has held subsequent meetings and numerous conference calls.

The major obstacle for the organic community in advancing its proposal was their inability to produce any data to confirm such economic losses. The primary recommendation involving the compensation mechanism states that if the Secretary collects sufficient data to prove economic loss to organic or other identity preserved crops from the unintended presence of GE material and determines that the situation warrants development of a compensation mechanism, he should utilize a mechanism based on a crop insurance model that includes incentives for the development of "joint coexistence plans" between neighboring farmers who use different production methods. The group further recommended that if the Secretary moves forward with a compensatory insurance plan, that plan should be tested through a pilot program established in a region(s) where relevant economic losses have occurred.

The AC21 also recommended that USDA implement a comprehensive education and outreach initiative to strengthen awareness of coexistence and the importance of coexistence for diverse agricultural production systems. USDA also should fund research on coexistence issues and should recommit to maintaining the original genetic identity present in its germplasm banks.

AC21 Chairman Russell Redding, dean of Agriculture and Environmental Sciences, Delaware Valley College, proposed a tentative timeline where, after a final opportunity for member comments, a final report will be released by Oct. 23. AC21 members will then signify their agreement or opposition by Nov. 8. Redding would like to present the final document to Secretary Vilsack later in November though that will depend on the Secretary’s availability.

 
Congressmen Question EPA on Pesticides, Bees

In a letter to EPA Administrator Lisa Jackson, Rep. Markey (D-MA) asked for an explanation of EPA's pursuance of an adequate scientific understanding on how neonicitinoids and other pesticides are affecting honeybees and other pollinators. The letter comes in the wake of EPA's denial of a petition by beekeepers and environmental groups to suspend the registration of clothianidin because of a lack of sufficient evidence.

The Markey letter cites some recent activity on neonicotinoid research, including two studies published in Science in April that claimed a link between declining bee colony health and neonicotinoid exposure. Markey included six questions in the letter, including one that asks what are the interim steps that EPA could take to limit or restrict the use of all or specific neonicitinoids.He requested a response by Sept. 9.

On July 26, Sens. Gillibrand (D-NY), Leahy (D-VT) and Whitehouse (D-RI) also wrote to Jackson asking for an expedited review of the neonicotinoids.Re-registrations of clothianidin and thiamethoxam, both neonicotinoids, are not scheduled to be completed until '18, but in the letter, the Senators say they expect EPA will come to a conclusion on all neonicotinoids by '13.

EPA recently has made public a draft proposal for assessing risk assessments for bees. The proposal will be evaluated by a Scientific Advisory Panel in September.

 
Import Supplemental Assessment Amended

USDA's Agricultural Marketing Service (AMS) released a final rule amending the Cotton Board'srules and regulations by increasing the value assigned to imported cotton and the cotton content of imported products to be the same as the valuation of cotton subject to producer assessments.

Cotton Board Chairman Kevin Rogers, an Arizona producer, said, "This valuation adjustment is designed to occur annually to ensure that assessments paid by producers and importers of cotton and cotton products are equivalent. The valuation adjustment is based on average prices during a previous 12-month period and reflects price movements. Because prices were strong last year, this rule adjusts the valuation of cotton content upward. Prices of cotton fiber have weakened lately and that change will be reflected in next year's adjustment."

In making this adjustment, USDA also updated the applicable assessment table to reflect Harmonized Tariff Schedule (HTS) statistical reporting numbers that were removed or updated since the last revision to the importer assessment provisions. The rule contains a revised Import Assessment Table detailing all applicable HTS codes.

"USDA's AMS continues to provide excellent oversight and this assessment amendment, as well as the updates to the cotton conversion factors for the new HTS codes, is an example of that ongoing oversight," Rogers stated.

The rule goes into effect on Sept. 27, '12. More information on the rule is at www.federalregister.gov/articles/2012/08/28/2012-20951/cotton-board-rules-and-regulations-adjusting-supplemental-assessment-on-imports.

 
Teddy Bear Cotton Promotion a Hit

Cotton Council International (CCI) announced that its "COTTON USA Bear Ambassador" retail promotion created 61.8 million consumer impressions in Thailand. The campaign, which was Thailand's first integrated consumer retail promotion, featured 27 COTTON USA licensees promoting US cotton and increasing COTTON USA Mark awareness among Thai consumers.

The teddy bears, produced with 100% cotton, were sponsored by 16 Thai mills and 27 COTTON USA licensees with brands at retail. The "bear ambassadors" – each representing one of the 27 COTTON USA licensees – were publicized to the local media and honored guests through a fashion show at the '12 Cotton Day in May. More than 4,500 COTTON USA bears were displayed at about 2,270 selling points in leading department stores in Thailand with the theme, "Hug Me If You Care."

A "COTTON USA Bear Ambassador" TV commercial was aired to draw Thai consumer attention to visit and hug the COTTON USA bears at retail. That commercial reached 2.7 million females aged 20-39 years old.

CCI launched the COTTON USA Thailand Facebook page in April '12 at this promotion's initiation. The page has been viewed more than 45,500 times in the past four months and now has about 8,650 fans. Additionally, there were two COTTON USA bear art installations that provided information on US cotton and increased visibility of the COTTON USA bears. Throughout the campaign, there were 306 media placements that generated an earned advertising value of about $788,000.

Participating COTTON USA licensees agreed that the campaign increased COTTON USA Mark visibility and educated their customers on US cotton's softness and the COTTON USA Mark's meaning.

 
Sales, Shipments Steady

Net export sales for the week ending Aug. 23 were 100,100 bales (480-lb). This brings total '12-13 sales to approximately 4.7 million bales. Total sales at the same point in the '11-12 marketing year were approximately 6.9 million bales.

China remains the top export customer for US cotton with purchases of 2.0 million bales for the '12-13 marketing year, representing 42% of total sales. Future purchases by China will be watched closely as the Chinese government considers allocation of import quotas and management of government reserves. Mexico and Turkey hold the second and third spots, respectively, among export customers. Currently, Thailand and Bangladesh round out the top five list. Together, the five countries account for almost 75% of '12-13 sales.

Total new crop ('13-14) sales are 172,900 bales.

Shipments for the week were 172,500 bales, bringing total exports to date to 524,500 bales, compared with the 515,400 bales at the comparable point in the '11-12 marketing year.

 

 
Effective Aug. 31-Sept. 6, ’12

Adjusted World Price, SLM 11/16

 65.73 cents

*

Fine Count Adjustment ('11 Crop)

 1.68 cents


Fine Count Adjustment ('12 Crop)

  1.88 cents


Coarse Count Adjustment

  0.00 cents


Marketing Loan Gain Value

 0.00 cents


Import Quotas Open

13


Special Import Quota (480-lb bales)

826,387


ELS Payment Rate

0.00 cents


*No Adjustment Made Under Step I

 

Five-Day Average




Current 5 Lowest 3135 CFR Far East

85.98 cents


Forward 5 Lowest 3135 CFR Far East

NA


Coarse Count CFR Far East

NA


Current US CFR Far East

87.13 cents


Forward US CFR Far East

NA


 

'11-12 Weighted Marketing-Year Average Farm Price  
 

Year-to-Date (Aug.-July)

88.32 cents

**


**Aug.-July average price used in determination of counter-cyclical payment