News Update

News Update
April 10, 2008

U.S and Korea to Resume Beef Trade Talks

U.S. and South Korean delegates will resume discussions about Seoul’s restrictions on imports of U.S. beef. The meeting is slated to begin Friday in Seoul, with Ellen Terpstra, deputy undersecretary for the U.S. Department of Agriculture (USDA) Farm and Foreign Agricultural Services, leading a team of U.S. delegates, according to media reports.

The last round of technical discussions between the two countries occurred in October, but it availed no significant progress.

President Bush also is expected to broach the issue when South Korean President Lee Myung-Bak visits Washington, D.C., for a summit scheduled for April 18-19.

— Release provided by meatingplace.com.

ABS Launches South Africa Affiliate

ABS Global Inc. (ABS) announces the addition of ABS South Africa as an ABS affiliate. South Africa was previously a distributor and has transitioned to an affiliate to better meet the needs of ABS customers and the growing dairy and beef market.

ABS South Africa is based in Durbanville, Cape Town. The office staff includes MC Steyn, product manager, and Serena Lombaard, financial and office manager. Currently, there are nine sales staff employed by ABS South Africa. In preparation for the transition to an affiliate, ABS South Africa has increased the number of sales consultants in order to support the growing market.

“South Africa is an important addition to ABS,” stated Jay Weiker, ABS Asia Pacific regional manager. “The demand for semen from well-proven and high genetic merit dairy and beef bulls currently exceeds local production and has created more interest in imported genetics. ABS South Africa is committed to the further development of the dairy and beef industry in the country.”

South Africa currently has 554,000 dairy cows with an average herd size of 300-500 cows. Artificial insemination (AI) is utilized in 10% of the beef market and in 60% of the dairy market.

In addition to providing high-quality genetics, ABS South Africa offers a full repertoire of ABS services. GMS has been running in South Africa for 10 years, and together with Technical Services, will be a main focus in South Africa. Valiant Express is well-established in South Africa and introducing a wider range of udder care products will be important as dairy producers achieve higher levels of production and must meet higher milk quality standards.

ABS South Africa hopes to establish ABS as a dominant, well-respected brand in South Africa through increased market share and providing solutions to clients.

— Release provided by ABS.

Statement by Secretary Schafer on Speaker Pelosi

Secretary of Agriculture Ed Schafer offered the following statement regarding Speaker of the House Nancy Pelosi’s actions to push a change to trade promotion authority for the Columbia Free Trade Agreement (FTA):

“Today’s action by Speaker Pelosi is bad for America’s economy and most of all bad for American farmers. Trade is vital to the strength of our agricultural economy, and free trade agreements like the one with Colombia are critical to continued growth in agriculture.

“Colombia is the largest market for our agricultural exports in South America. It bought a record $1.2 billion of our agriculture products in 2007. Meanwhile, the trade situation between our countries has become one-sided, as Colombian food and agricultural products come into the U.S. with no duties whatsoever.

“That’s due to the Andean Trade Preference Act, which has been repeatedly reauthorized by Congress. In fact, just last month Congress passed this act by unanimous consent. Why is Congress willing to continue to allow Colombian products to enter the United States without tariffs but not willing to vote to have American exports to Colombia to go tariff free?

“American goods are subject to numerous tariffs and duties in Colombia. The Colombian free-trade agreement levels the playing field for our farmers and ranchers by removing duties on more than 70% of our agriculture products immediately. U.S. farm exports to Colombia that will receive immediate duty-free treatment include high-quality cuts of beef, cotton, numerous fruits and vegetables, wheat, and soybeans. Overall, our farmers and ranchers stand to gain a great deal by implementing the Colombia Free Trade Agreement (FTA).

“The American Farm Bureau estimates that once this agreement is fully implemented, American agriculture will see $690 million in gains each year, generating another $1.8 billion in economic activity and supporting nearly nine thousand jobs here in the United States.

“Colombia has a growing economy and a growing appetite for the kind of commodities American farmers excel at producing. The agricultural community recognizes the enormous potential of this agreement, which is why more than 40 agricultural and food associations have voiced their support for the Colombian FTA.

“Our farmers and ranchers depend upon exports for their financial well-being, and failing to act on this agreement could affect markets, disappoint our trading partners, and hinder our efforts to get American crops to consumers around the world.

“American Farmers deserve a level playing field when it comes to trade with Colombia. Implementation of the Colombia Free Trade Agreement is the right thing to do for America’s economy and its right for America’s Farmers. And Congress needs to stand on the side of America’s farmers.”

— Release provided by USDA

— compiled by Mathew Elliott, assistant editor, Angus Productions Inc.