INDIA, January 2, 2003 -- A mild winter and lack of winter rains are likely to affect 2003 wheat production prospects. Most wheat growing regions are experiencing significantly above normal temperatures this winter, which combined with poor soil moisture could mar crop development.

INDIA, January 2, 2003 -- *Wheat output may plunge*, *Export of poor quality wheat stopped*, *EU moves WTO against India's sensitive list*, *Consumer spending on food up 5-6% in second half of 2002*, *Government mulls ocean freight subsidy on sugar exports*.

ITALY, January 2, 2003 -- Italian deciduous fruit production data were revised as follows: apple and table grape figures were significantly reduced for 2002 because heavy rainfalls and hail storms have affected crops. Concentrated apple juice output in 2002 was also revised downwards due to a lack of raw material. For fresh pears total production was slightly revised downward but commercial production is forecast to be 1% higher at 860,000 tons.

FRANCE, January 2, 2003 -- Biotechnology has recently been part of headlines in the French media. As a start, the group of respected French scientists/academicians presented three reports which were requested by the French Government. These reports recommended the lifting of the EU moratorium on new biotech approvals. The reports were in favor of the development of agricultural and pharmaceutical biotechnology in France because French scientists and academicians believe that biotech benefits outweigh the risk. But, the French Food Safety Agency (AFSSA), which is responsible for food safety, has yet to render its views of biotech products. However, it is worth noting that the French industry representatives and consumers reacted positively to the recent decision by the EU Agricultural and Environmental Councils on biotech labeling and traceability.

JAPAN, January 2, 2003 -- From America's largest food and agricultural export market as translated from Japan's mass media and food press. This issue includes: Despite negative results throughout the Department Store sector for non-food sales, food sales are still more encouraging; Based on a Codex standard for bottled drinking water, more than 90 percent of all labels which now read "Natural Mineral Water" might be replaced with "Bottled Packaged Water"; The Japan beef market continues to normalize, post-BSE as demand for beef used in Sukiyaki or Nabe creates upward pressure on domestic prices and; French Beaujolais Nouveau was released in Japan on November 21, 2002.

JAPAN, January 2, 2003 -- In an effort to strengthen pesticide regulations, Japan's government has proposed a positive list of maximum residue limits for pesticides The implementation of a positive list leaves the opening for a single omitted pesticide to significantly affect exports of an entire commodity. The Japanese government has asked for active participation in the process from the U.S. government and industry to insure this does not happen.

GERMANY, January 2, 2003 -- For CY 2002 German production is estimated at 729,380 MT for commercial apple production, at 700,000 MT for non-commercial production, at 55,000 MT for pears, and 69,000 MT for concentrated apple juice.

CHILE, January 2, 2003 -- This report contains January through September 2002 export data and cumulative data for Fishmeal and Fishoil. Source: Central Bank. Units: Metric Tons.

AUSTRALIA, January 2, 2003 -- Post proposes no changes in crop figures provided in the previous report (AS2041, 12/02/02). December rainfall in northern New South Wales and southern Queensland has improved conditions for dryland and irrigated crops in this major summer cropping region. Post is projecting sharp production declines for all the major summer crops – cotton, rice and sorghum. ABARE is projecting even lower area and production for these summer crops.

GREECE, January 3, 2003 -- Heavy rains have reduced apple production by 15 percent and table grape production by 22 percent in 2002. Pears were relatively unaffected by this weather, but reductions in production and exports continue as farmers cut back acreage and mantain fewer bearing trees in Greece.

SOUTH AFRICA, REPUBLIC OF, January 3, 2003 -- The Hostex, and Food and Hotel Africa are the premier food shows in South Africa. The continued decline in the value of the rand relative to the dollar is having a negative impact on U.S. agricultural exports to South Africa. Nevertheless, opportunities exist for resourceful exporters with niche products. FAS/Pretoria will next participate in the South African food and catering show (Hostex 2003), March 16-19.

CHILE, January 3, 2003 -- Chile's production forecasts of fresh apples, apple juice, pears and table grapes are up in spite of abnormal weather conditions.

MEXICO, January 3, 2003 -- MEXICO ANNOUNCES MONITORING PROGRAM FOR AGRICULTURAL IMPORTS IN 2003; GOVERNMENT AND RURAL GROUPS AGREE TO TRUCE ON BORDER BLOCKADE

MALAYSIA, January 7, 2003 -- Malaysia's CPO production dropped 13.6 percent to 1.06 MMT in November, 2002. Carry-over stock level rose marginally to 1.2 MMT at the end of November. PO exports decreased to 940 TMT in November. The average local CPO price rose from US$421/MT in November to US$426/MT IN December.

POLAND, January 7, 2003 -- The hotel, restaurant and institutional food service sector is one of the most quickly developing areas of the Polish economy. While strong competition, especially from EU suppliers, also exists in this sector, several niche products offer potential to prospective U.S. exporters.

POLAND, January 7, 2003 -- Poland's food processing sector developed rapidly over the last decade as Poland moved to a market oriented economy with nearly 40 million consumers. Foreign companies are heavily invested in Poland's food processing industry. Poland's likely accession to the EU in May 2004 will give EU suppliers a competitive advantage as Poland becomes part of the EU internal market. Pre-accession Poland-EU trade liberalization agreements have already given many EU food sector ingredients and products greater market access than items from non-EU member countries.

MOROCCO, January 7, 2003 -- The area planted to wheat and barley is expected to increase significantly compared to last year because of the above-normal rainfall throughout the country and is likely to even exceed the five year average of 4.9 million hectares.

DOMINICAN REPUBLIC, January 7, 2003 -- The Dominican Hotel, Restaurant, Institutional(HRI) Food Service Sector is an attractive market for imported food and beverages. This Sector provides nearly 30% of the foreign exchange generated by the country. The Dominican Republic is one of the main tourist destinations in the Caribbean.

JAMAICA & DEP, January 7, 2003 -- Because of the closure of Jamaica's only soy extrusion plant, soybean imports have become insignificant. Soybean meal imports have continued to strengthen, due to strong demand by the poultry feed industry. Total production of refined soybean oil was 11,293 MT during MY 2001, a 13 percent decline from MY 2000.

JAMAICA & DEP, January 7, 2003 -- The United States continues to account for the largest proportion of Jamaica's tourist arrivals. Total consumption in the tourist market is expected to increase with the recovery of the industry during 2003. The hotels and resorts sub-sector is expected to remain the fastest growth area in the Jamaican HRI sector and will continue to present increasing opportunity for food and beverage consumption.

MEXICO, January 7, 2003 -- The Secretariat of Treasury published on December 30, 2002, the 2003 Fiscal Budget Law of the Federation which includes the monitoring of certain agricultural imports from the United States and Canada.

AUSTRALIA, January 8, 2003 -- The CY 2003 apple crop is expected to rise 11 percent to 328,000 MT, despite current drought conditions. Apple exports are expected to rise to 35,000 MT in CY 2003, 38 percent higher than the previous year. Apple imports are virtually banned due to quarantine concerns. Pear production in CY 2003 is projected at 175,000 MT, 6 percent higher than the previous year. Pear exports in CY 2003 are expected to total 20,000 MT, up 11 percent from 15,696 MT shipped in the previous year.

SLOVENIA, January 7, 2003 -- Poultry and eggs are some of few agricultural products where Slovenia's domestic production still exceeds domestic demand. There are two major poultry producer/processors and ten major eggs producers in Slovenia. The Slovene food processing industry is in general not very export oriented but poultry is an exception. Total Slovene poultry product exports are between $15 and $20 million annualy. Imports are around $10 million. Due to long transportation time lags for U.S. commodities and the duty free imports from EU countries, the U.S. share is very small.

INDIA, January 8, 2003 -- *India on the global biotech map*, *Liquor lobbies bury hatchet on import duty*.

GERMANY, January 3, 2003 -- 104 cases were confirmed with BSE in Germany in calendar year 2002, taking the total number of confirmed BSE cases since November 2000 to 236. Consumption of beef is gradually recovering, but has not yet reached pre-BSE levels.

SWEDEN, January 8, 2003 -- The consolidation and restructuring of the Nordic food retail sector offers new interesting opportunities in terms of volumes and diversity of products being demanded. There is a great demand for organic and convenience food and food and beverages which appeal to the health conscious. Additionally, the market is expanding for international and ethnic cuisine, including foods that are uniquely associated with the various regions of America. Major current impediments to U.S. sales include consumer resistance to products which contain genetically modified (GMO) ingredients. The strong dollar, which has also been a major impediment, has weakened considerably in recent months.

ARGENTINA, January 6, 2003 -- Hypermarkets and large supermarkets account for approximately half the sales of retail foods and beverages. There are ten large retailers, of which seven are large international companies, and a few locally-owned. As a result of the four-year recession and the strong devaluation of early 2002, large retailers are losing some market share in the hands of smaller stores, such as warehouse stores, small supermarkets and grocery stores. Imported foods and beverages are primarily sold through large supermarkets, but sales in 2002 dropped significantly as a consequence of the weakness of the Argentine Peso. The presidential elections of 2003 are expected to bring growth to the domestic economy and regain the market which Argentina once was.

CANADA, January 6, 2003 -- On January 1, 2003, Canada published new regulations making nutrition labeling mandatory on most food labels; updating requirements for nutrient content claims; and permiting, for the first time in Canada, diet-related health claims for foods. U.S. food products exported to Canada must meet the same labeling requirements as foods produced in Canada. U.S. food manufacturers will have the same transition time to comply with the new nutrition labeling requirements.

AUSTRALIA, January 10, 2003 -- The major snack food brands in Australia are dominated by large food processing companies, the majority of which are owned by U.S. multinationals. Opportunities for large scale exports of packaged snack food products to the Australian retail sector are limited. The ingredients market for snack foods may offer greater opportunities for U.S. exporters than the retail market, particularly for those products targeted towards nutritional snacks. The best prospects in the snack food sector appear to be seasonings, flavors, cooking oils, thickeners, processed fruit and nuts, and possibly yogurt probiotics.

PHILIPPINES, January 10, 2003 -- The Department of Agriculture has accredited 24 Brazilian and 3 Chinese meat establishments to begin exporting poultry meat and poultry meat products to the Philippines, effective immediately. The move is expected to increase imports of whole chicken and premium cuts, such as breast and wings, where the suppliers are most competitive.

INDONESIA, January 10, 2003 -- Prospects for demand and market development in Indonesia's HRI sector are clouded by ongoing security concerns in the aftermath of the 12 October 2002 Bali bombings. The sector's demand for imported foods continues to be dominated by upscale Hotels and Restaurants, which were the most severely impacted by the decline in tourism, departure of expatriates, and cancellations of meetings and conferences at Indonesian hotels following the bombings. Full recovery of the sector is not expected until the end of 2003. Nonetheless, opportunities for U.S. exporters of meat, fresh fruit, baking ingredients, and potato still exist.

SOUTH AFRICA, REPUBLIC OF, January 9, 2003 -- Good rains in December improved prospects for the 2002 corn crop. Planting was delayed by drought and continued into late December. At this stage the final area planted is not yet available and under current conditions we are keeping the crop estimate at 7.5 million tons. With both domestic consumption and trade slowed by high prices South Africa is well supplied with its basic staple.

MEXICO, January 6, 2003 -- On November 18, 2002, the Government of Mexico officially published details of the agricultural armor package it initially announced it would be designing in August 2002. The package includes several proposed new bills, some changes to current laws, introduction of new regulations and standards, and new programs to support production agriculture. Very few of these measures have actually been enacted yet as most will have to undergo the rule making process or be submitted for congressional approval. It remains to be seen whether these measures will adversely impact trade or not.

MEXICO, January 9, 2003 -- The Government of Mexico has banned the importation of poultry from California following the detection of Newcastle disease. In addition, Newcastle certification requirements have been established for other areas of the United States. A veterinarian must now accompany shipments of uncooked poultry meat for further processing after crossing the border in Mexico.

MEXICO, January 9, 2003 -- The Secretariat of Economy published on December 31, 2002, in the Diario Oficial (Federal Register), a decree creating new tariffs lines for chicken leg quarters.

JAPAN, January 7, 2003 -- In December 2002, the Government of Japan presented draft frameworks for the revised Food Safety Basic Law and an outline of the proposed Food Safety Commission. Based on the new law, the commission shall perform risk assessment and communication, while the existing ministries shall be responsible for risk management. Although the FSC is expected to be a scientifically objective risk assessment organization, the framework draft also mandates that the Commission take into consideration consumers' attitudes and activities.

EUROPEAN UNION, January 10, 2003 -- While EU grain production has re-bounded in 2002/2003, imports of low-priced feed wheat have continued to flow in. In response, the EU has instituted new import arrangements starting January 1, 2003. EU exports face strong competition from Black Sea Region suppliers, but opportunities are available in some non-traditional markets.

THAILAND, January 7, 2003 -- The Thai Government announced recently to ban the imports of any feed ingredients and/or complete feed, which contain any part of poultry products/by-products and originate from the State of California, U.S.A.

EUROPEAN UNION, January 7, 2003 -- In Dec 2002, the European Parliament took the view that the current list of foods approved for irradiation should not be extended. As a result of the negative perceptions of this technology in the European Union, no new authorizations are expected in the next few years.

EUROPEAN UNION, January 10, 2003 -- A group called the European Oilseed Alliance intends to file a complaint with the European Commission against US soybean subsidies.

THAILAND, January 10, 2003 -- Export prices continued to increase due to Baht appreciation and higher transportation costs.

ROMANIA, January 10, 2003 -- After a long dry spell in 2002, fall weather conditions favored planting and emergency of winter grains in Romania, raising prospects for a good MY03 wheat and barley crop. Prices for milling wheat went up due to short supplies and GOR may consider temporary suspension of import duties. Generally, wheat stocks available in the region are short and quality is poor.

MEXICO, January 9, 2003 -- SENATE STOPS MEASURE TO POSTPONE 2003, FOX DECLARES NAFTA A SUCCESS, PRESIDENT FOX PROMOTES A NEW VISION OF NAFTA, MEXICO COULD ESTABLISH SAFEGUARDS ON AGRICULTURAL PRODUCTS, AGRICULTURE ARMOR OF THE LOWER CHAMBER, PRESIDENT ASSURES FARMERS OF SUPPORT, NAFTA AUTHORS OPEN SUMMIT TO CELEBRATE 10 YEARS OF FREE TRADE, GOVERNORS CONFERENCE AGREES TO NOT OPEN NAFTA, FOX AGAINST NAFTA RENEGOTIATION; FOR SAFEGUARDS, USABIAGA PREDICTS 2003 WILL HAVE MINIMAL IMPACT ON AG SECTOR, NAFTA POSITIVE FOR MEXICO, STATES DERBEZ, ECONOMISTS, ACADEMICS, GOVERNMENT, DIFFER ON BENEFITS OF NAFTA, SALINAS DEFENDS NAFTA AND FOX’S DESIRE FOR MIGRATION AGREEMENT, SENATORS DENY PRESSURE FROM THE UNITED STATES, CONGRESS ACCUSES U.S. OF UNFAIR TREATMENT, LACK OF SUSTAINABLE GROWTH, POVERTY, RESULTS OF NAFTA, CONTINUED CALLS FOR NAFTA RENEGOTIATION, FARMERS GROUP PROPOSES LIMITING U.S. FOOD PURCHASES, WORKERS GROUP BLAMES AG CRISIS ON MISGUIDED GOM POLICIES, CLAIMS THAT GOM NEGLECTED AGRICULTURAL SECTOR, BLAME FOR MEXICO’S AGRICULTURAL WOES, SOCIAL ILLS USED FOR POLITICAL POSITIONING, LOWER HOUSE APPROVES BILL LOWERING FUEL COSTS FOR AG SECTOR, THE 2003 BUDGET WILL KEEP THE 20% TAX ON BEVERAGES CONTAINING HFCS, BORDER SECURITY MEASURES COULD IMPEDE TRADE, U.S. OFFICIAL CLAIMS EFFECTS OF 2003 ON MIGRATION WILL BE MINIMAL, MEXICAN ORANGE PRODUCTION TO DROP, SLOW GROWTH FORECAST FOR MEXICAN ECONOMY.

CHINA, PEOPLES REPUBLIC OF, January 10, 2003 -- This is an UNOFFICIAL translation of the People's Republic of China Food Additive Hygiene Standard (1998 Supplement) and should be used as a guide only. Exporters should carefully discuss regulations and their application with Chinese importers to ensure that their interpretation of the regulation is accurate.

CHINA, PEOPLES REPUBLIC OF, January 10, 2003 -- This is an UNOFFICIAL translation of the People's Republic of China Food Additive Hygiene Standard (1997 Supplement) and should be used as a guide only. Exporters should carefully discuss regulations and their application with Chinese importers to ensure that their interpretation of the regulation is accurate.

CHINA, PEOPLES REPUBLIC OF, January 10, 2003 -- This is an UNOFFICIAL translation of the People's Republic of China Food Additive Hygiene Standard (1999 Supplement) and should be used as a guide only. Exporters should carefully discuss regulations and their application with Chinese importers to ensure that their interpretation of the regulation is accurate.