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October 5, 2007India Opens Imports to Genetically Modified (GMO) Soybean Oil
Analysis of: Government allows import of GM seed edible oil | www.business-standard.com
Author: Gary Drimmer, President, Drimmer & Associates International
More countries are producing growing quantities of genetically modified (GMO) soybeans and corn. As prices of foods climbs, countries around the world are being forced to recognize that these crops are safe and cheaper. Will the EU join the crowd?
October 4, 2007Slowdowns and consolidations ahead for ethanol, but pain today will create more profits tomorrow.
Analysis of: Ethanol Boom Is Running Out of Gas | online.wsj.com
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
Ethanol is headed for a slowdown and consolidations, but will emerge stronger and more efficient. Cash corn near $3.05 and ethanol near $1.58 per gallon leaves a profit margin of only a few cents per bushel. Corn prices will fall as ethanol plants slow consumption, but weather...
September 27, 2007Economics working against soy-based biodiesel
Analysis of: Biodiesel boom heads to Wall Street | money.cnn.com
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
With current prices for soybeans, biodiesel's primary feedstock, its economic viability is questionable. With soybean oil selling for near $0.40 per pound, costs to produce soy-based biodiesel are running $3.20-$3.30 per gallon, at or slightly above current prices for diesel of $3.00-$3.10. The Federal...
September 19, 2007Brazil's Addition Of Ethanol Subsidies To Their WTO Appeal Raises The Stakes For US Agriculture
Analysis of: Brazil Wants Probe of U.S. Farm Aid | www.forbes.com
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
Brazil’s complaint, originally filed in July, now includes a challenge on the payments for “energy subsidies”—ie: ethanol’s $0.51 per gallon subsidy, and the biodiesel blending credit. The US says it considers those “industrial” subsidies, and not a part of this WTO discussion Brazil has already won...
September 14, 2007ADM, Bunge and others, will face many challanges in the Brazilian sugar sector.
Analysis of: Ethanol Giants Struggle To Crack Brazil Market | online.wsj.com
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
Multinationals like ADM will enter the Brazilian sector, but should they do it now? Overoptimism in Brazil's sugar sector will lead to overpricing of assets The Brazilian sugar sector may be headed for a correction.
September 7, 2007The opportunity to make significant changes in US farm policy will likely be squandered, more of the same the most likely outcome.
Analysis of: U.S. Ag Secretary Wants Lower Farm Subsidy Limit | www.soyatech.com
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
It appears that Congress may, yet again, renew many of the provisions in the 2002 program…pushing the issue of true reforms to be played out in the courts of the WTO. The US will eventually be forced to "level the playing field" on these issues, and it may be forced on the farm sector at...
August 31, 2007Redistribution of agricultural lands is a continuing challenge for Brazilian agriculture.
Analysis of: Brazil's Landless Movement faces new agrarian reform | www.checkbiotech.org
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
Brazil's landless social action movement remains a risk for both domestic and international agricultural businesses in Brazil. The MST's unhappiness with their efforts, to date, to work politically through the Lula administration, creates the risk of additional social actions by the organization....
August 14, 2007Farm machinery makers have to "follow their customers" to stay competitive
Analysis of: Why Deere Is Weeding Out Dealers Even As Farms Boom | online.wsj.com
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
Toying with dealer-customer relationships is always a tricky matter, but as agricultural producers in the US get bigger, makers and sellers of farm machinery have to evolve, in order to be able to serve their customer's changing needs. Farm numbers falling Numbers of farms in the US continues...
August 13, 2007Higher nitrogen prices (and higher soybean prices) will slow, or stop, growth in corn acres in 2008
Analysis of: Impact of Rising Natural Gas Prices on U.S. Ammonia Supply | www.ers.usda.gov
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
NH3, or Anhydrous Ammonia, is the primary source, for nitrogen, a key input for farmers in the production of corn. Domestic production of NH3 is down by 44% over past 4 years due to lower margins. Imports are up 115 % over the same period. Prices paid by farmers have increased by 129% over...
August 13, 2007Potential is there, but pushing new use's is a difficult process with low rates of success
Analysis of: Cooking Up More Uses for the Leftovers for Biofuel Production | www.nytimes.com
Author: Philip Corzine, Founder & Managing Consultant, AgPage International Consulting, LLC
The potential to increase revenues by finding, or creating new uses for by-products is real, and potentially significant. However, past experiences indicate that trying to "push" new products onto the market is much harder than letting demand "pull" them in...and is made even more difficult by...
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