JAPAN, July 27, 2004 -- From America's largest overseas food and agricultural export market as translated from Japan's mass media and food industry news. This issue includes: Coop Sapporo acquires the online procurement services of GNX (Global Net Exchange); Daiei announces plans to boost its profit margin; Yoshinoya D&C is among those major Japanese restaurant chain operators expanding outlets in China; Nathan's Franchisee of Japan holds its first Japan version of the famous hotdog eating contest; Powdered Aojiru, possibly another successful health product for the Japanese consumer and; The U.S. Pavilion at the International Food Ingredients and Additives show in Japan benefits from the record 26,000 visitors to the show.

RUSSIAN FEDERATION, July 27, 2004 -- Grain prices decreased over the past several months and are forecast to continue decreasing until late fall (November-December) depending on export demand and to a lesser extent on demand from poultry and swine operations. Government interventions may support prices, but the legislation has not yet been published leading some to think it has not yet been fully developed. Grain price fluctuations will not influence bread prices in MY 2004 as they did in MY 2003.

KOREA, REPUBLIC OF, July 27, 2004 -- Having stated its intention publicly in early May to provide 400,000 metric tons (MT) of food grains to the Democratic People's Republic of Korea (DPRK) in the form of a concessional loan, the South Korean government decided to send 100,000 MT of domestic rice and 300,000 MT of foreign

HONG KONG, July 27, 2004 -- Major Updates 1. Section II (10) Enactment of the Food and Drugs (Composition and Labeling) (Amendment) Regulation 2004 2. Section VI (4) Public Health (Animal and Birds) (Chemical Residues) Regulation in full implementation 3. Section VI (6) Proposed Application of the Convention on Biological Diversity and the Cartagena Protocol on Biosafety 4. Section VII (1) U.S. beef entry to Hong Kong suspended 5. Section VII (1) U.S. chicken feet to Hong Kong required to meet new certification requirement effective April 30, 2005 6. Section VII (7) Proposed Bill of Regulating Health Claims for Orally Consumed Products

KENYA, July 27, 2004 -- FAS Nairobi corn production estimate for 2004/05 is now 2.1 million mt about 15% below that of the previous year. Due to the tight food supply situation the GOK has announced a 'National Disaster' and appealed for food aid from the international community. In order to facilitate private sector imports the GOK has zero-rated the white maize import duty for the next three months. Issues of moisture content (13.5%) and GMO requirements by Kenya continue to inhibit maize trade between the U.S. and Kenya. The GOK continues to deal with agricultural policy issues on an ad hoc basis and lacks a comprehensive drought mitigation strategy.

BOSNIA AND HERZEGOVINA, July 27, 2004 -- The Bosnia and Herzegovina Government passed an amendment to the Customs Tariff Law that will apply duty free import quotas for unprocessed beef, pork, and chicken on a quarterly basis. The measure will allow for a cheaper supply of unprocessed meat, as well as stimulate domestic production because processors must first buy locally produced product to utilize the quotas. Bosnia and Herzegovina imports most meat for processing from Slovenia, Austria, Poland, the Netherlands, Hungary, and Italy.

MEXICO, July 27, 2004 -- On July 22, 2004, the Secretariat of Treasury announced in the Diario Oficial (Federal Register) the addition to Annex 21, of the official customs ports of entry for U.S. imported poultry products. These official customs ports of entry are consistent with SAGARPA's import requirements. No adverse impact on imported U.S. poultry is expected.

MEXICO, July 27, 2004 -- On July 22, 2004, the Secretariat of Treasury announced in the Diario Oficial (Federal Register) the addition to Annex 21 of another official customs port of entry for imported apples: Mazatlan. No adverse impact on U.S. apple imports is expected

MEXICO, July 27, 2004 -- The Secretariat of Economy (SE) published in Mexico's "Diario Oficial" (Federal Register) the announcement establishing the NAFTA tariff rate for 2004 for out-of-quota corn imports. The tariff rate was set at 1 percent.