SAUDI ARABIA, March 12, 2004 -- Local barley production ban got into effect this crop season. Barley imports this Marketing Year (MY) 2003 is forecast to go down by about one million tons due to good rain fall in the northern part of the Kingdom which resulted in a better pasture conditions this year compared to last year. About 2 million tons of wheat will be harvest this crop year. The Government guaranteed purchase price for locally grown wheat will be reduced from US$ 400 per metric ton to US$ 266.67 per metric ton commencing from the 2004/2005 crop, which will be harvested in the spring of 2005. Saudi Arabia is forecast to face wheat production shortage next year due to expect exit a large number of small farmers from wheat production. No rice is produced in the Kingdom. In Calendar Year (CY) 2003 Saudi Arabian rice imports were estimated at more than one million metric tons, an increase of over 27 percent compared to CY 2002.

HONG KONG, March 12, 2004 -- Hong Kong's HRI business receipts amounted to US$6.2 billion in 2003, representing a 10 percent decline compared to 2002. The decline was largely attributed to the devastating effect of SARS between February and July, 2003 and the overall sluggish economy. However, the economy has shown very encouraging signs of quick recovery starting in the later half of 2003. The HRI business is expected to experience single digit growth in 2004 based on the positive prospect of Hong Kong's economy and a burgeoning inbound tourism. However, U.S. exporters in the beef and poultry sector also face unprecedented challenges for the Hong Kong market since the market is currently closed to U.S. beef and poultry resulting from the BSE and avian influenza cases in the United States.

INDIA, March 12, 2004 -- Post lowered its 2003/04 cotton production estimate to 16.1 million bales (170 kg) on reduced area estimates. Mill consumption has also been revised lower to 14.2 million bales.

BELGIUM-LUXEMBOURG, March 12, 2004 -- In 2002, sales of the Belgian food processing sector were ?30 billion, of which over ?20 billion were exported. Agricultural and food imports totaled ?18.5 billion. Most important sectors were slaughterhouses and meat processing; dairy; chocolate and confectionary; bakery products and animal feed.

RUSSIAN FEDERATION, March 12, 2004 -- Household plots have played a key role in Russian agriculture in the past decade, especially in livestock production. These small producers continue to produce almost 50 percent of all domestic meat, which accounts for 35 percent of total Russian consumption of meat. While the government continues to support large-scale farms, small-scale farms make the best of scarce inputs and infrastructure. Though not closely linked to the retail market or processors, small farmers are expected to satisfy local demand for fresh meat in the regions and in smaller population centers for years to come.

FRANCE, March 12, 2004 -- French walnut production in 2003 is estimated to have decreased sharply to 24,000 MT, mainly due to the drought throughout the summer of 2003. This combination of lower crop, lower quality and the increased price competitiveness of California walnuts on EU markets could lead to lower French exports in MY 2003/2004 on markets where French and U.S. products compete, especially in Europe. French walnuts imports (mainly of shelled walnuts) are, on the other hand, expected to grow.

UNITED ARAB EMIRATES, March 12, 2004 -- As a result of discovering AI in the US, the UAE Ministry of Agriculture & Fisheries banned imports of live birds and hatching eggs from the US. In the same regard, the UAE General Secretariat of Municipalities banned imports of poultry meat and table eggs.

LATVIA, March 12, 2004 -- When Latvia joins the EU on May 1, 2004, none of its key external border inspection posts (BIPs) located at ports and transit rail links will have been approved by the EU for executing veterinary control of imports and transit cargos. This will halt direct imports by Latvia for its domestic market and for transshipment of U.S. and other non-EU origin cargos subject to veterinary inspection.

BRAZIL, March 12, 2004 -- Brazil's 2003/04 apple crop is expected to reach a record production level of 970,000 metric tons, up 15 percent from the previous crop year due to excellent weather conditions. Due to the higher availability of domestic supplies and excellent quality of the fruit, apples exports are estimated to increase by 50 percent, while imports will continue to decline. Brazil is a major importer of pears since local production is insignificant. However, pear imports in 2003 dropped due to the stagnate economy and low consumer purchasing power.

UNITED KINGDOM, March 12, 2004 -- London Calling is a synopsis of UK food and beverage trade media reports. It aims to inform U.S. exporters of the current factors influencing the UK market. If there are any specific product areas that you would like to see included in future editions, then please let us know. And to ensure that you are on our mailing list for future editions, email ALMT@usda.gov. To view previous editions of London Calling and to access UK specific market information, please visit the FAS London website.