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FAS Weekly Attache Report Digest
October 05, 2002

China's VAT on Domestic and Imported Agricultural Products Unequal

CHINA, PEOPLES REPUBLIC OF, October 3, 2002 -- Chinese regulations covering VAT prescribe a collection process that results in a VAT rate on domestic agricultural products significantly lower than on the same imported products. For field crops, the maximum effective VAT on domestic products appears to be 9 percent. For feed grains sold directly to feed mills the effective maximum rate is only 4.5 percent. Imports of these commodities face a 13 percent VAT.

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Poultry and Products Annual

KUWAIT, September 27, 2002 -- Kuwait is expected to produce 34,000 MT of broilers in CY 2003, which are mostly marketed live. Frozen Broiler imports in CY 2003 are forecast at 61,000 MT, including 50,000 MT of whole birds and 11,000 MT of boned and boneless parts. Brazil is expected to supply 38,000 of the whole birds followed by Saudi Arabia with 8,000 MT and the balance is expected to be supplied mostly by France and Denmark. Brazil and to a lesser extent the United States are expected to supply most of the boned chicken parts. Brazil, PRC and Thailand are expected to supply most of the boneless chicken parts in 2003.

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Tobacco and Products Annual

PHILIPPINES, September 27, 2002 -- Total tobacco production for 2002 is expected to increase by 10.2 percent from the previous year's level due to favorable weather conditions and financial assistance programs extended by the National Tobacco Administration (NTA) to tobacco farmers. Crop acceptance levels for the first half of 2002 reported by the NTA are already up by almost nine percent from total acceptances reported in 2001. Meanwhile 2002 imports are expected to jump 21.7 percent, with burley tobacco accounting for most of the increase.

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Poultry and Products Annual

PHILIPPINES, September 27, 2002 -- The Philippine poultry industry is expected to continue expanding this year but at a slower rate than the growth surge experienced in 2001. The impending El Nino phenomenon, which is expected to hit the country starting late this year is expected to slow down domestic broiler production growth in 2003 as poultry is highly sensitive to heat stroke. Poultry meat imports are forecast to remain roughly unchanged through 2003 as high tarrifs continue to limit demand.

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Poultry and Products Annual

RUSSIAN FEDERATION, September 27, 2002 -- Production of poultry meat in Russia is forecast to increase for the sixth straight year in 2003 as abundant feed and significant investment boost local broiler production. Imports still account for the largest share of consumption and are expected to rise by five percent in 2003 due to strong consumer demand. In 2002, U.S. exports were down significantly from previous estimates and 2001 due to a ban in March and April, when Brazil and EU dominated the imported poultry market.

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Fresh Deciduous Fruit Annual

SWEDEN, September 27, 2002 -- U.S. apple imports to Sweden continued to decrease in 2001 and the U.S. market share in Sweden dropped to less than 1 percent. Imports of U.S. pears, on the other hand, increased from 2,925 metric tons in 2000 to 3,817 metric tons in 2001. Constraints to exports of U.S. apples and pears to Sweden includes the strong dollar exchange rate and stiff competition from EU suppliers. Due to an increased interest in organic fruits, the large retailers are now looking for certified organic suppliers.

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Weekly Rice Report: Brussels September 24 , 2002

EUROPEAN UNION, September 27, 2002 -- This weekly report contains data on rice prices in the U.S., Thailand and the EU. It also lists current import duties and export subsidies in the EU. All information will be published as such in the weekly USDA publication "Rice Market News".

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Rice: Bulog's Proposed New Status

INDONESIA, September 27, 2002 -- In accordance with a 1998 MOU between the GOI and the IMF, the Indonesian State Logistics Agency, BULOG, has drafted a bill to "privatize" the Agency. Implementation, which awaits approval by the President, will change the Agency into a state trading enterprise (STE), so it may trade agricultural commodities for profit. However, the new STE will retain its mission of maintaining and stabilizing the producer price for rice.

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Rice Export Update

EGYPT, September 27, 2002 -- Egyptian rice exports decreased 26 percent during the first half of CY 2002 compared to the same period in 2001, as a result of high prices.

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Weekly Rice Price Update

THAILAND, September 27, 2002 -- Export prices declined marginally as Thai Baht weakened.

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EU Food & Drink Industry in Figures

EUROPEAN UNION, September 27, 2002 -- The food and drink industry is the leading industrial sector in the EU, accounting for 15 percent of the total production value in the manufacturing sector. With a total production value of 593 billion euros and an added value of 133 billion euros, it is ranked first ahead of the chemical, car, machinery and equipment industries. The food and drink sector is the third largest employer in the EU.

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Exporter Guide Annual

SLOVENIA, September 27, 2002 -- Slovenia represents a small but growing market for U.S. foods, particularly high value products such as seafood, whisky, and foods geared toward the hotel and restaurant sectors. This report contains product entry tips, points of contact, and other information useful to U.S. food and agricultural exporters.

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Exporter Guide Annual

GUATEMALA, September 27, 2002 -- The food retail sector has been growing at about 14% a year and the HRI sector at 12%. The fledgling food processing sector has been growing at about 10% a year. U.S. products can be profitably sold in all three sectors because they are viewed by consumers as higher in quality and are preferred to other imports. Name recognition is high for U.S. products. It is very important when attempting to enter the Guatemalan market to select a local distributor in order to maximize sales and reduce problems.

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Fresh Deciduous Fruit Annual

TAIWAN, September 27, 2002 -- Consumption of the apple dropped 9% in MY2001 over the previous marketing year due to the generally poor economic climate. With a total 122 thousand metric tons imported, US suppliers saw their shipments to Taiwan fall 30% due to a combination of soft Taiwan demand, the entry of competitors South Korea and Japan, and higher US crop prices. The US should win back some market share next year, but a recovery in demand is not expected until MY2003.

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Livestock and Products Annual

HUNGARY, September 27, 2002 -- Hungary started 2002 with low swine stocks. Export sales are lower while imports from the EU were rather high. Stable domestic demand and increasing feed grain prices point toward a stagnating hog and pork market in 2003. The Hungarian government is using export subsides for live hogs.

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Exporter Guide Annual

AUSTRALIA, September 30, 2002 -- Australia is a prosperous, politically & economically stable, industrialized nation. The per capita GDP is approximately US$19,400, comparable to industrialized western countries. Australia's consumer oriented agricultural imports average about $1.7 billion annually, of which the US supplies about 10-12 percent. Two companies dominate the Australian grocery sales picture - Woolworths & Coles - with a combined share of 66 percent of the market.

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Livestock and Products Annual

EUROPEAN UNION, September 30, 2002 -- The years 2002 and 2003 are likely to be years of stabilization for the EU beef sector. After the BSE crisis in 2001, the EU beef sector seems to have regained balance albeit at lower production levels. As far as the EU pigmeat sector is concerned, the market has also stabilized after the FMD outbreak.

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Wheat and Corn Update

VIETNAM, September 30, 2002 -- This report updates Vietnam's grains (wheat and corn) supply and demand situation. Vietnam's imports of wheat continue to rapidly increase. In addition to the expanding human consumption of wheat flour, significant amounts of flour are used in aquaculture feed and for further processed (breaded) shrimp export products. Vietnam's wheat imports, from under 80 thousand tons in 1996, could be over 800 thousand tons in 2003.

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Peanut Update

VIETNAM, September 30, 2002 -- Vietnam is trying to boost peanut exports, already 57 thousand mt in first half of 2002, but bad weather has boosted domestic prices and could constrain additional exports.

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Sugar Semi-Annual

INDIA, September 30, 2002 -- India's MY 2001/02 sugar production has been raised to 20.3 million metric tons (mmt) lifting 2002/03 beginning stocks to a record 13.0 mmt. Fueled by sufficient supplies, consumption has annually grown at 3.0 percent in recent years. Despite government incentives to liquidate the ‘abnormally high' stocks through exports, the MY 2002/03 export forecast remains unchanged at 1.0 million tons due to uncompetitive prices.

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Weekly Highlights & Hot Bites, #32

MEXICO, September 30, 2002 -- Abastur*Farmer Coalition*More Work Needed To Raise Coffee Consumption*Cracking Contraband*Oaxaca Governor Calls For Compromise In "Hamburger vs. Tamale" War*Mexican Central Bank Raises Interest Rates As Peso Plunges

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Philippines Considering Special Safeguard Tariff Increases

PHILIPPINES, October 1, 2002 -- The Department of Agriculture (DA) is considering invoking the special safeguard (SSG) measure for poultry, beef, pork, corn and other eligible products. DA recently released a list of trigger prices of SSG-eligible products pursuant to Republic Act 8800 (RA 8800) or the Safeguards Measures Act and is currently evaluating Bureau of Customs data to determine if any prices of eligible products have fallen below established price floors (trigger prices). If the SSG is invoked, some eligible products could face significant tariff hikes of as much as 100%.

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Beef, Swine and Products Update

DENMARK, September 27, 2002 -- Beef markets and prices have recovered to pre-BSE levels. Pork production continue to increase by two percent annually in spite of low prices. Pork markets seem very stable.

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Sanitary Registration for Food Products

ECUADOR, September 26, 2002 -- Ecuador passed a new Health Law in 2000. In june of 2001, Application Rules for issuance of Sanitary Registrations for food products were released. To some extent, these rules have improved the registration process. However, problems remain because several core parts of the new rules have not been implemented by Ecuadorian Sanitary Authoritie due to a variety of reasons.

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Promotion Opportunities Annual

MEXICO, September 26, 2002 -- Mexico remains one of the fastest growing markets for US agricultural products; $7.8 billion of US agricultural fish and forestry products were sold in Mexico in 2001. The following provides information on trade shows and other events where exporters can showcase their products.

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Change of Ports of Entry for Poultry in Brine

MEXICO, September 26, 2002 -- On September 13, 2002, the Secretariat of Treasury announced in the Diario Oficial (Federal Register) a change on offical ports of entry for U.S. imported poultry in brine.

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Poultry and Products Annual

UKRAINE, September 26, 2002 -- Broiler meat exports to Ukraine will continue to decline as a result of the ban on U.S. poultry meat coupled with increased domestic production.

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Exporter Guide Annual

HONG KONG, October 2, 2002 -- H.K. remains an important market for consumer-oriented American foods. The economic downturn in the past few years and present high unemployment have affected consumers' eating and shopping habits. Whereas most people used to eat out frequently, now more are shopping for groceries and preparing more meals at home, or eating more meals at low-end or fast food restaurants. H.K.'s relatively sophisticated shoppers are buying an increasing percentage of their groceries in supermarkets, as opposed to traditional wet markets. Demand for grocery store products, meats, poultry, eggs, and fresh fruit continues to be very strong. There is potential for growth in the processed/convenience sectors of H.K.'s retail food markets for U.S. high value consumer foods such as grocery items, ingredients for home meal replacement, wine, health food, etc.

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NFDM: Market Opportunities

INDONESIA, October 2, 2002 -- Delays in Australian shipments of NFDM to Indonesia and increasing prices, may present a market opportunity for U.S. NFDM exports. In CY2002, Indonesia is expected to import 100,000 MT of NFDM.

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Sugar Semi-Annual

SOUTH AFRICA, REPUBLIC OF, October 2, 2002 -- South Africa's 2002/03 sugar cane crop is estimated at 22.5 million tons, 6% bigger than the previous crop. This should yield 2.8 million tons of raw sugar, allowing exports of about 1.35 million tons. The import tariff on sugar was recently increased by 67% to R1312/ton as a result of the big drop in international prices.

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Poultry and Products Annual

EUROPEAN UNION, October 2, 2002 -- Continued imports of salted poultrymeat from Brazil and Thailand could turn the EU into a net poultrymeat importer over the next few years.

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Fishery Products Annual

ITALY, October 2, 2002 -- With a population of 58 million and an annual per capita consumption of about 23 kg of fish and seafood, Italy is the world's fifth biggest importer of these products. After two annual increases in domestic demand for fish products, last year household consumption slightly decreased by 1.2 percent in quantity, while the value increased by 3.5 percent. The Italian fishing fleet catch continues to decline while aquaculture is growing modestly. Italy imports $2.7 billion of fish and seafood yearly. Imports from the U.S. totaled about $46. Half of Italy's seafood imports come from EU member states, particularly Spain.

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Argentina Reduces Import Tariffs

ARGENTINA, October 2, 2002 -- Argentina has recently reduced import duties of most products, including agricultural and high value consumer ready products. Tariffs are now in line with Mercosur's External Tariff.

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Grain and Oilseeds Update

BULGARIA, October 2, 2002 -- MY02/03 Bulgarian grain exports (as of September 20, 2002) totaled 600,000 MT, of which 250,000 MT was wheat and 350,000 MT was barley (a record level). Major export destinations for wheat are Spain and Italy; and for barley - Algeria and Saudi Arabia. The GOB started a state intervention effort and will purchase 200,000 MT of wheat for the state stocks with a plan to export this amount later in MY02/03.

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Exporter Guide Annual

MEXICO, October 2, 2002 -- Mexico is one of the fastest growing markets for US agricultural products and the market offers both opportunities and challenges to interested exporters. Despite a general economic slowdown, US agricultural exports grew more than 13 percent to $7.9 billion in 2001.

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Sugar Semi-Annual

DOMINICAN REPUBLIC, October 2, 2002 -- Sugar production for 2002 fell below previous estimates, which will result in higher levels of refined and raw sugar imports. Government officials say imports could reach 60,000 metric tons.

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Poultry and Products Annual

UNITED ARAB EMIRATES, September 30, 2002 -- Poultry production continues to expand, projected at 31,000 MT this year and at 34,000 MT by 2003. Demand for poultry and products continues to expand also. Imports service nearly 75 percent of the domestic market with Brazil (40 percent) and the U.S. (19 percent) capturing the lion's share of the trade. Brazil supplies primarily whole-bird while the U.S. poultry parts. Total U.A.E. 2001 poultry imports reached 133,000 MT valued at about $133 million.

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Admin Measures for Import and Export Meat Product Inspection & Quarantine

CHINA, PEOPLES REPUBLIC OF, September 30, 2002 -- This is an UNOFFICIAL translation of the People's Republic of china Administrative Measures for Import and Export Meat Product Inspection and Quarantine 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 regulations is accurate.

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Sugar Semi-Annual

PHILIPPINES, October 3, 2002 -- Centrifugal sugar production is expected increase by about five percent to reach two million MT in MY 2002/2003 fueled by modernization efforts being undertaken by the sugar industry. Both area planted and harvested are forecast to expand as a result of rising domestic prices and stable demand.

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Lamb Exports Expected to Increase

PHILIPPINES, October 3, 2002 -- Although currently a minor consumer, consumption of lamb meat and meat products is expected to grow 30 percent this year, according to the South Asia regional manager of Meat and Livestock Australia (MLA).

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Grain and Feed Annual

JORDAN, October 3, 2002 -- In MY 2001/2002, the U.S. supplied 77 percent of Jordan's wheat imports. USDA programs - GSM-102 and 416(b) were important tools for these purchases. Barley imports totaled 380,000 tons, but none was purchased from the U.S. due to high price. Jordan's corn imports totaled 446,000 tons, 6 percent of U.S. origin. Rice imports in 2002 are estimated at 104,000 tons including 20,000 tons from the U.S.

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Result of 4th SBS Tender for Feed Wheat and Barley

JAPAN, October 3, 2002 -- On September 20, the Food Agency (FA) conducted its fourth simultaneous buy and sell (SBS) tender for feed wheat and barley during Japanese fiscal year 2002. The FA contracted 4,450 metric tons (MT) of wheat and 140,000 MT of barley. According to trade sources, 4,300 MT of wheat and 28,900 MT of barley from the Ukraine were again purchased in this tender.

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Coconut Products Export - June 2002

PHILIPPINES, October 3, 2002 -- Prices of coconut products were generally higher in June 2002 as global supplies remained tight. Exports of copra, coconut oil and copra meal during the period declined by 95, 40, and 47 percent, respectively, compared to their levels the previous year.

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Exporter Guide Annual

INDIA, October 3, 2002 -- Low purchasing power, high import duties, onerous labeling requirements, and underdeveloped retailing sector continue to thwart imports of high value food products. Nevertheless, India has a large and growing elite consumer class which is aware of quality differences and insist on world standards. The ongoing agricultural negotiations at the World Trade Organization promise much improved market access in the coming years.

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Sugar Semi-Annual

TURKEY, October 3, 2002 -- In MY 2003, Turkey is expected to produce approximately 2,336,000 MT of centrifugal sugar. Weather conditions were well suited for sugar beet production. Turkey's production quota for corn-based sweetener was increased by 50 percent to 351,150 MT for MY 2003. According to the corn-based sweetener producers, about 450,000 MT of sweetener were sold on the domestic market in MY 2002 (Sep. 2001-Aug. 2002). Sugar exports have continued to decline over the past three years as subsidies and supplies have fallen.

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Canned Deciduous Fruit Annual

CHILE, October 3, 2002 -- Chile's production of canned peaches in MY2002 is expected to expand, as weather has been favorable. A reduction in Greek production is expected to have a positive effect on Chilean exports in the coming year.

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Fishery Products Annual

CHILE, October 3, 2002 -- Chile's salmon and trout industries reduced production and exports in an effort to reverse a dramatic fall in export prices that resulted from the continuous record expansion for the last decade. In the coming years the industry will expand further but a much lower rate.

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Canadian Food Brokers

CANADA, October 3, 2002 -- For U.S. companies entering the Canadian market, it is important to find a Canadian food broker to help with the logistics of entering the country in addition to marketing products.

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Exporter Guide Annual

DOMINICAN REPUBLIC, October 3, 2002 -- The consumption of imported consumer foods in the Dominican Republic has increased by nearly 25% per year during the last ten years and this tendency is expected to continue in the near future. Supermarkets are becoming more important at the expense of the traditional warehouses and grocery stores. The market structure for food distribution has changed in recent years, with greater participation of the local and international supermarket chains, which are more prone to sell imported products.

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Promotion Opportunities Annual

AUSTRALIA, October 3, 2002 -- Fine Food is the largest food industry event in Australia. The show is held annually, alternating between the cities of Sydney and Melbourne. Over 600 exhibitors showcase the latest food, drink and equipment ideas from around the world.

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Fishery Products Annual

KOREA, REPUBLIC OF, October 3, 2002 -- Alaska pollack catch will decrease sharply in 2002 as Korea purchased only 25,000 MT of Alaska pollack catch quota from Russia in 2002, compared to 200,000 MT in 2001. As groundfish, surimi, and roe production correlates with Alaskan pollack catch, total production of these products is expected to decline significantly in 2002. The capacity of the Korean fishing fleet and the number of fishery households are continuing to decrease as domestic production is expected to decline in the future. In 2001, Korea suffered a trade deficit of $375 million in seafood trade with foreign countries for the first time.

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Sugar Semi-Annual

PAKISTAN, October 3, 2002 -- Pakistan's MY 2002/03 sugar production is expected to increase to 3.77 million metric tons (MMT) due to forecast increase in area and yields as a result of good monsoon rains. To discourage imports, Government of Pakistan (GOP) has levied 25 percent import duty.

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Grain Update - October Lockup

AUSTRALIA, October 4, 2002 -- Post forecasts a further decline in Australia's 2002/03 wheat and barley crops, which are now expected at 16.5 million tons and 4.9 million tons respectively. The further decline in expected 2002/03 wheat output is attributed to a sharp drop in area and slightly lower forecasted yield. Timely September rains helped stem further reductions in output of Australia's winter grains.

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Canned Deciduous Fruit Annual

AUSTRALIA, October 4, 2002 -- Post places CY 2002 cannery intake for peaches at 50,000 MT, representing a decrease of seven percent on the previous year. Post forecasts canner intake for peaches for CY 2003 at 53,000 MT. Peach production for CY 2003 is forecast to increase slightly to 43,990 MT, in line with increased deliveries to processors. Exports of canned peaches for CY 2002 are forecast at 9,000 MT, around 12 percent higher than the level achieved during the previous year. Post forecasts cannery intake for pears in CY 2003 to fall to 51,000 MT. Canned pear exports are forecast to decrease slightly during CY 2002 versus the previous year.

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Cotton Update

TURKEY, October 4, 2002 -- Turkey's MY 2002 cotton production is expected to increase due primarily to larger planted area. Turkish mill, enjoying the benefits of favorable exchange rates and increased demand for textiles, imported a record amount of cotton. The United States continues to be the leading supplier of cotton to Turkey, providing more thatn fifty percent of all imports. Low U.S. cotton prices and the availability of GSM-102 credit guarantees were the main reason for the increase.

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Oilseeds and Products Update - October

INDIA, October 4, 2002 -- Post scales down MY 2002 peanut estimates to 6.4 million tons due to prolonged dry spell in major growing areas. Due to domestic shortfall in oilseed production, low year ending stocks and increasing offtake of edible oils, imports are forecast to rebound to 4.9 million tons during MY 2002 compared with an estimated imports of 4.2 million tons during MY 2001.

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Promotion Opportunities Annual

TURKEY, October 4, 2002 -- This report updates ATO/Istanbul's listing of major trade shows especially on Food and Food Products from September 2002 to September 2004. The purpose of this report is to inform U.S. companies in the food, agriculture, poultry and forest product sectors of potential export opportunities to Turkey and upcoming trade events.

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Grain and Feed Update - October

INDIA, October 4, 2002 -- 2002 rice production has been revised downward to 78 million tons reflecting preliminary government estimates. CY2002 rice exports revised upward to 6 million tons.

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Exporter Guide Annual

POLAND, October 4, 2002 -- Poland's GDP growth fell to 1.1 percent, unemployment rose to over 17 percent, and inflation dropped to below 5 percent in 2001. These trends continue into 2002, but expectations are for a modest turn around, particularly after EU accession which Poland's government hopes to achieve by 2004. Despite economic difficulties, the modernizing food retail sector continues to expand. Food trade, predominanetly between Poland and the EU, has risen significantly in recent years and is expected to continue to grow. There are select prospects for U.S. food and beverage products sold directly to Poland or indirectly via Western Europe.

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Fishery Products Annual

GERMANY, October 4, 2002 -- Total turnover in the German fish industry increased by 10.4 percent to Euro 2.029 billion (US$ 1.972 billion) in CY 2001. Triggered by the BSE scandal per capita consumption of fishery products rose from 13.3 kg in 2000 to 14 kg in 2001. The United States supplied about Euro 84.7 million (US$ 82.3 million) worth of fish and fish products in CY 2001. This amounts to 3.3 percent of the German import market. The U.S. was able to considerably increase exports of frozen Alaska pollack to Germany, and is now the third-largest supplier. This is due to stronger efforts by processing companies in Germany to import from sustainable sources.

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Weekly Rice Price Update

THAILAND, October 4, 2002 -- Export prices continued downward trend in response to the combined effects of Baht depreciation, light demand, and increased release of government stocks into the export channels.

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Exporter Guide Annual

THAILAND, October 4, 2002 -- This Exporter Guide is prepared by the USDA, Bangkok office for U.S. exporters of high-value and consumer-oriented foods who are interested in entering the Thai market. It provides information on local business practices; tips for U.S. exporters to do business in Thailand; current market situation and future trends for retail, HRI food service and food processing sector; best high-value product prospects, tariff rate table and interesting key contacts in Thailand.

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Sugar Semi-Annual

POLAND, October 4, 2002 -- Favorable weather conditions resulted in large beet and sugar yields. Newly estimated centrifugal sugar production will likely reach 2.0 million tons, almost 15 percent more than domestic use needs. Sugar exports are expected to reach 300,000 tons in MY 2002/03 of which one-third will be exported with government subsidies.

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Canned Deciduous Fruit Semi-Annual

ITALY, October 4, 2002 -- For 2002 a significant decline in Greek peach output due to unfavorable weather will result in a strong recovery of Italian canned peach production. Italian canned pear and mixture outputs are forecast to remain stable in 2002, as Italian pear production was slightly over the previous year's level.

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Fishery Products Annual

NETHERLANDS, October 4, 2002 -- The Netherlands is an important trader in fish, and imported 1.4 billion euro worth in 2000. Dutch households are increasing their consumption of fish products. Salmon has been one of the major products behind this growth. Sales of smoked salmon grew by 260 percent and has become the second most popular fish after herring.

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Exporter Guide Annual

ITALY, October 4, 2002 -- This report offers U.S. companies interested in exporting food and agricultural products to Italy, a guide to the country's economic situation and market structure, as well as exporter tips and trade prospects.

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Corn Update (September 2002)

INDONESIA, October 4, 2002 -- Recent dry weather conditions have delayed Indonesia’s planting season for corn. However, it is expected that conditions will not impact corn production or quality. Due to competition with corn imports from China, U.S. corn imports are estimated to drop to 150,000 mt in MY2001/02, and are expected increase to 200,000 mt in MY2002/03, as the poultry industry continue to grow and economic conditions improve. Feed production in MY2001/02 are estimated to reach 7.5 mmt and 7.0 mmt in MY2002/2003.

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Rice Update (September 2002)

INDONESIA, October 2, 2002 -- Indonesia's total rice imports remain steady with an estimate of 3 MMT for MY2002 and MY2003. Indonesia's domestic milled rice production is forecast to inch up to 32,548,000 MT for MY2003, compared to 32,422,000 MT for MY2002. The Ministry of Agriculture has proposed to increase import tariffs on rice to Rp. 735/kilogram, equivalent to 51 percent from Rp. 430/kilogram or 30 percent, as a means of slowing down imports and encouraging increases in domestic production.

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Livestock Genetic Import Regulations

KOREA, REPUBLIC OF, October 4, 2002 -- A provision in the Ministerial Ordinance to the Livestock Industry Act could lead to trade disturbance in livestock genetic imports. Article 21 of the Ministerial Ordinance to the Act requires "Either the survival rate of the semen must be 60% or higher or the rate of deformity must be 15% or lower." This provision has been in place since at least September 7, 1999 but Post and genetic importers are not aware of any cases where importers were penalized due to this provision. However, in 1998 there was a case where the government refused to receive imported semen that did not meet this provision. Revisions in the Livestock Industry Act could change this situation.

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European Imports Grow Again in 2001

JAPAN, October 3, 2002 -- Japanese wood product imports from Europe were 3,300,000 m3, in 2001, including 382,000 cubic meters (m3) of structural glulam, 41,000 m3 of hardwood lumber, and 2,280,000 m3 of softwood lumber.

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The Expanding 2 x 4 Steel House Market

JAPAN, October 3, 2002 -- The 2 x 4 steel house market has been developed by the Japanese steel industry to expand the steel market. In 2001, 6,041 units were built, up from 1,225 the previous year, and, in 2002, they are forecast to double from the year before.

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Record Imports of MDF

JAPAN, October 3, 2002 -- In spite of declining production of fiberboard products, Japanese imports were up in 2001, with hardboard imports up 52.5% and MDF imports up 15.6%. Principal suppliers were New Zealand, Australia and Malaysia.

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Fresh Deciduous Fruit Annual

POLAND, October 4, 2002 -- After record CY2001 apple production, the crop in CY2002 is expected to decline 25 percent mainly because of unfavorable weather conditions in April-May 2002. Lower apple production will result in lower concentrated apple juice production. To cover fresh fruit demand, Poland could increase apple imports. Concentrated apple juice exports, virtually all destined for the EU, are forecast to drop over 10 percent.

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