The Global Miller

August 05, 2015

05/08/2015: Public consultation FEFAC draft sourcing guidlines ends

FEFAC has finalised the evaluation process of the comments stakeholders (6 NGOs, 3 retailers, 1 responsible soy scheme owner, 1 industry association) have made on the draft FEFAC sourcing guidelines, which were made public on 25 March 2015. FEFAC has incorporated several points of attention raised by stakeholders into the Sourcing Guidelines, which will be published in the first week of August 2015.

FEFAC President Ruud Tijssens: “We are pleased with the constructive recommendations made by the stakeholders during the public consultation period of our draft Sourcing Guidelines. Though there are still some issues to be resolved, the comments have certainly contributed to an improvement of the draft version”. On the base of the comments made, FEFAC has for example decided to add 5 essential and 3 desired criteria.

As an overarching response to the feedback given by stakeholders, FEFAC has published a generic statement on its website which also aims to take away some persistent confusion around the status of the Sourcing Guidelines. FEFAC makes it very clear that the Sourcing Guidelines are a professional recommendation to purchasers of responsible soy and not a new standard. By publishing the feed industry’s baseline criteria for responsible soy which existing schemes and standards will be able to use as a benchmark, FEFAC aims to facilitate a mainstream market supply.

Also on the important matter of deforestation FEFAC clarifies that the Guidelines intend to achieve the same goals as the stakeholders have raised as concerns: increased forest protection and reduction of the impact of the agri-food production on high conservation areas. All questions and comments received on the draft Sourcing Guidelines, plus FEFAC’s individual reactions, will be made public along with the first version of the Sourcing Guidelines in the first week of August 2015.

Read more HERE.

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine GFMT
which is published by Perendale Publishers Limited.

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05/08/2015: The impact of the June/July wheat price rally

In our latest update to the 2015 pricing strategy demonstrations, we have looked into the impact that the rally in wheat futures prices during June/July had upon strategy rankings. The answer was not a lot!

The rankings remained in the same order that they were in June, with some alterations apparent in the interim period.

http://cereals.ahdb.org.uk/markets/market-news/2015/august/04/grain-market-daily-hopes-lifted-for-russian-wheat-output.aspx

Today’s MI Prospects article discusses how flexibility can be introduced to grain marketing.

Tools such as trigger pricing and benchmarking can add reactivity to strategising in the real world, helping to activate a selling plan based upon up-to-date market information.

Read more HERE.

05/08/2015: Hopes lifted for Russian wheat output

Hopes have been lifted for the size of the Russian wheat crop in recent days, with Russian analysts SovEcon increasing their forecasts by 1.5 million tonnes, compared with earlier estimates, to 57.5 million tonnes. Dry weather has helped the combines pick up pace again after earlier delays.

The uplift follows a favourable prediction by the USDA’s Moscow Bureau, and statements from the Russian Prime Minister – who stated the wheat crop could reach 58 million tonnes, see a range of current forecasts below.

 The increased forecasts follow concerns earlier in the summer about the impact that excessive rains, particularly in the south of the country, were having on harvest progress. This in turn contributed to the record low export pace in July.

However, improved weather has allowed harvesting to progress, with 24 percent of the grain area (excluding maize) cut by the end of July, raising expectations of a ‘normal’ pace of exports in August.  

With increased prospects for the Russian wheat crop, and a pick-up in exports expected, the UK may face further competition into the European market – keeping the market focused on remaining as competitive as possible.

Read more on Russia HERE.

05/08/2015: PAL-VITAL hygienic feeding bowl for broilers passes DLG FokusTest

After having successfully passed a test in practice, the DLG Test Center Technology and Farm Inputs (Deutsche Landwirtschafts-Gesellschaft – German Agricultural Society) recently awarded the PAL-VITAL feeding bowl for broilers of the German manufacturer PAL Bullermann with the test label “DLG FokusTest”. Already during design and development of the feeding bowl, the manufacturer focused on hygienic aspects like few critical edges or cleaning-friendly surfaces.

The DLG Test Center Technology and Farm Inputs recently awarded a feeding bowl for broilers by PAL Bullermann with a quality label “DLG-FokusTest”

The tool-free mounting of the feeding bowl was easily possible within about 30 seconds, daily cleaning of the bowl was possible by opening the plates with one hand via snap lock and hinge. As the bowl was well-manufactured without sharp edges or manufacturing marks, injury risk for both the broilers and the user was low. In sum the test criterion “handling” was rated “++ = considerably better than standard”. As the plate can remain attached to the bowl during cleaning, the test criterion “cleaning” also reached this best-possible rating.

Concerning the evaluation of feed dosing as third test criterion, the responsible DLG test engineer Iris Beckert stated: “Before new feed is refilled automatically, the residual feed quantities in the bowl were very small. Due to the inward-curved edge of the bowl, feed losses as well as contamination of the feed were very low.” Furthermore she added that due to the low filling level and subsequently always fresh feed, there was a low stimulus for the chicks to use the bowl for scratching. As a result, behavioral introduction of feed contaminations was also low, a positive effect that also the bird keepers confirmed.

What is the DLG FokusTest?
The FokusTest is a DLG usability test intended to allow product differentiation and special highlighting of innovations in machinery and technical products used primarily in agriculture, forestry, horticulture, fruit cultivation and viticulture, as well as in landscape and municipal management. This test focuses on testing a product's individual qualitative criteria, e.g. fatigue strength, performance, or quality of work. The scope of testing can include criteria from the testing framework of a DLG SignumTest, the DLG's extensive usability test for technical products, and concludes with the publishing of a test report and the awarding of a test mark.

The DLG FokusTest “Handling, Cleaning and Feed Dosing” includes repeated investigations at a real-life farm at different times during the fattening period and also examines both the assembly of the bowls and the time needed for cleaning. The testing was based on the DLG testing framework for poultry feeding bowls, in the version of 1.2/2014. Other criteria were not investigated.

The DLG Test Center Technology and Farm Inputs
The DLG Test Center Technology and Farm Inputs in Gross-Umstadt sets the benchmark for tested agricultural technology and farm inputs and is the leading provider of testing and certification services for independent technology tests. With the latest measurement technology and practical testing methods, the DLG’s test engineers carry out testing of both product developments and innovations. As an EU-notified test laboratory with multiple accreditations, the DLG Test Center Technology and Farm Inputs provides farmers and practitioners with important information and decision-making aids, in the form of its recognised technology tests and DLG tests, to assist in the planning of investments in agricultural technologies and farm inputs.

Read more HERE.

August 04, 2015

31/07/2015: Corn, soybeans rise on export sales; wheat mostly lower

Photo by ©Ferran Pons on flickr

Corn and soybean futures finished higher on Thursday, bolstered by better-than-expected export sales and some traders closing out bets near the end of the month, as reported by Ilan Brat of Nasdaq.

Meanwhile, wheat was mostly lower, weighed down by a rise in the dollar.

Weekly export sales figures from the US Department of Agriculture aided positive sentiment in general, with a government report showing net sales for the week ended July 23 were above analyst forecasts, a sign that a steep drop in prices in recent weeks has helped gin up foreign demand.

Extremely wet weather in June and early July raised concerns about crop damage and boosted prices. But the weather has turned drier and overall more benign in recent weeks, easing those concerns and sharply reducing grain and soybean prices.

Many traders who bet prices would fall are likely taking profits and unwinding those bearish "short" bets as the end of the month nears, leading contracts to rally, analysts said.

Corn also was supported by a relief from selling pressure that hit it earlier in the week as money managers who had bet its price would rise offloaded their contracts. Some of those "long" bets have been cleared from the market, and prices as a result had more momentum to rise.

Read more HERE.

04/08/2015: An expanding Filipino milling industry sends a trade team to the US

The southeast Asian wheat market is a story of success for the US wheat industry.

In the 2014/15 marketing year (June to May), the region accounted for 20 percent of global US wheat sales.

With a strong milling industry to support it, the Philippine wheat market continues to be one of the region’s most consistent and important export markets year after year. In 2014/15, the Philippines was the third largest buyer of US wheat and the second largest buyer of both soft white (SW) and hard red spring (HRS) wheat, setting a new sales record for the second year in a row.  

 Looking forward, the Philippine milling industry is going through transitions including an expansion of new mills and a new generation of management. Building on more than 50 years of service in the Philippines, US Wheat Associates (USW) is playing a role in these transitions and further strengthening its relationships, including by hosting four milling industry customers on a visit to the United States August 2 to 12, 2015. 

 “This is a trade team of emerging leaders that represent growing market trends in the Philippines,” said USW South Asia Assistant Regional Vice President Joe Sowers, who is traveling with the team. “We invited participants that we think will best apply what they learn on the trip to the challenges and opportunities presented by the evolving market environment.” 

 USW worked with the North Dakota Wheat Commission, Montana Wheat and Barley Committee, Washington Grain Commission, Idaho Wheat Commission and Oregon Wheat Commission to organise this team.

While visiting these states, the team will get an on-farm look at the SW, HRS and hard red winter (HRW) wheat crops, and an early report on the 2015 crop quality outlook. The trip also includes tours of wheat breeding research, shuttle and barge loading facilities and export elevators, as well as to observe activities performed by the Federal Grain Inspection Service (FGIS) to assure adherence to contracted quality specifications.

This News was reported by the US Wheat Associates:
Read more HERE.

04/08/2015: Pizzeria hoping to change world's attitude to wheat

The following is part of an article which was published by the Sussex Express.
The Hearth Pizzeria and Bakehouse’s field to fork approach to flour production is at the forefront of a global movement aimed at re-examining the world’s relationship with wheat and grains.

The approach is championed by luminaries such as world-famous baker Chad Robertson, food writer Michael Pollan, upcoming film The Grain Divide and The Real Bread Campaign.

The movement seeks a shift from an industrial approach to grain and flour that focuses on yield, speed and shelf life, while sacrificing health, taste and culture.

It’s an important development given that wheat, usually in the form of bread, is the world’s number one source of food calories, but often calories that are absent of goodness - which is ironic, given that a kernel of wheat is one of the most nutritionally dense food forms.

In line with the movement’s approach, Michael has always made artisan breads, using traditional processes, with quality ingredients – but he has now taken it one step further, by planting 10 acres of world renowned archaeo-botanist John Letts’ heirloom wheat in Piddinghoe, for use at The Hearth in Lewes.

Heirloom wheat being grown in Piddinhoe by
Michael Hanson SUS-150729-141704001

In a reciprocal partnership they borrowed two tons of John’s grain, planted it near Southease, with the support of an enthusiastic local farmer, and will have their first harvest of 20 tons of grain in the autumn. They’ll then give John 10 tons of grain, and will keep the rest for their breads.

It’s an approach that will hopefully inspire other bakers to follow suit – for not only does it diminish food miles, but also allows them to create flour that retains its goodness and flavour, both of which are removed in industrial flour-making.

Read more HERE.

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