Posts Tagged ‘harvest’
This is the green western edge of the Deccan plateau of India, the gigantic highland of peninsular India that slopes gradually from west to east. They say that the western ‘ghats’, the range of hills (some say mountains, but the real mountains are the Himalaya and Hindu Kush, far to the north, while the Ghats rise about 1,500 metres above the continent in some of their southern spurs), that run for about 1,600 kilometres dissuade the south-west monsoon from bringing rain inland, but this is not quite true, for districts along the western edge of the plateau are well-watered in a good monsoon.
This magical landscape is found about 10 kilometres east of the the small town of Yellapur, in the district of Uttara Kannada, in the state of Karnataka. The land is gently rolling, and by mid-November early mornings bathe the landscape in a soft golden light. Mornings at this time are chilly, below 10 Celsius, and you can see the farmers here stride down the dusty pathways between fields, their worn sweaters keeping the chill away, their omnipresent cotton shawls – faded after months in the sun – wrapped that much tighter around their necks. In the distance, the taller peaks loom blue-grey in the distance, the skies above are cobalt with clarity.
Dotting every cultivated hectare are the haystacks, the hayricks and the crop residue bales. These are gathered, tied, carried, lifted, piled, arranged and stacked by hand, and so the shapes they assume are organic, cones and rough domes that mimic the primal hut-shape, but dense with biomass. We are used to saying and hearing words like ‘crop residue’ and ‘agricultural biomass’, but the shapes that emerge at the end of a hectic harvest are made of material that goes by many local names. Often, these haystacks formed from rice straw, sugarcane tops, stalks of ‘jowar’ or ‘bajra’ (millets, or what the agricultural establishment demeaningly calls coarse grains).
Making the haystacks is a communal activity, inspiring for the ease with which the work gets done, and inspiring for the artistry that surrounds their fieldcraft. There are two men who stand atop a partially-formed haystack, and when they are up there you can judge the size of the pile and appreciate better how much ‘residue’ it must contain.
Women and men in the nearby fields arrange and tie the bales of gathered stalks and stems, their children help, their cattle continue to graze alongside, the ever-present companions to the good-natured ruminants, the cattle egrets, wait patiently or circle aloft impatiently, dogs snooze and the elderly offer quiet advice. The men atop the growing stack bark their instructions, from further up the fields, a group of women in bright sweaters but barefoot – tough and hardy – chat and chuckle as they work. This is district India, so alive with community spirit, secure in its fertility, in the stewardship of land and water, of stem and stalk.
What is still quaintly called an “advance estimate” (the fourth of four that are released by the brobdingnagian agricultural bureaucracy in India) has been made public.
This gives us estimates of the expected production of foodgrain and commercial crops for India in 2012. As usual, the new data release adds to the series I have been providing since the 2008-09 crop year – this now includes the sequential advance estimates for 2008-09, 2009-10, 2010-11 and 2011-12. [Get the spreadsheet here.]
Highlights from this data release:
1. Rice 104.32 million tons, wheat 93.90 mt and coarse cereals 42.01 mt for a combined cereals total of 240.23 million tons. Add 17.21 mt of pulses for a total foodgrains estimate of 257.44 million tons for 2011-12.
2. A total for nine oilseeds of 30.01 million tons (groundnut, castorseed, sesamum, nigerseed, rapeseed and mustard, linseed, safflower, sunflower and soyabean). Sugarcane is 357.66 million tons. For fibres, cotton 5.98 mt, jute 1.96 mt and mesta 0.12 mt.
What about the effect of the poor 2012 monsoon on sowing and harvests, and have the drought conditions and water scarcity in over 300 districts been factored into these numbers? I don’t know. The agri and crop and food babus in India (just like ‘mandarins’ and ‘eurocrats’ elsewhere) aren’t telling.
India’s meteorological department has issued its second long range forecast for the 2011 monsoon and has lowered its estimate. Rainfall will be 95% of the 50-year average in the June-September season, which are the monsoon months. In April, the Indian Meteorological Department predicted a monsoon that would be 98% of the long-term average. Normal precipitation is considered to be 96%-104% percent of the long-term average.
India’s agriculture-dependent population has been hoping for adequate rainfall to harvest good quantities of foodgrain and lentils for a second year and bring down inflation, which has led the Reserve Bank of India – the central bank – to raise rates for a 10th time in 15 months. Agriculture accounts for 14% of the economy and a reduced harvest can further lower rural incomes and send food inflation higher than it already is. Inflation in India is the highest among Asia’s major economies.
Bloomberg reported that the wholesale price index in India accelerated 9.06% in May after having increased 8.66% a month earlier, according to official data released on June 14. An index measuring wholesale prices of farm products including milk and lentils rose 8.96% in the week ended June 4 from a year earlier, according to the commerce ministry. India imported record quantities of sugar, lentils and oilseeds in 2009 following the weakest monsoon that year since 1972.
The IMD’s ‘long period’ is 1951-2000 and the department considers probabilities for the country (all-India) and four major regions: north-west India, central India, north-east India and south peninsula. “Over the four broad geographical regions of the country, rainfall for the 2011 Southwest Monsoon Season is likely to be 97% of its LPA over North-West India, 95% of its LPA over North-East India, 95% of its LPA over Central India and 94% of its LPA over South Peninsula, all with a model error of ± 8 %.”
The IMD also employs a six-parameter statistical forecasting system to prepare probability forecasts for five pre-defined rainfall categories. These are deficient (less than 90% of LPA), below normal (90-96% of LPA), normal (96-104% of LPA), above normal (104-110% of LPA) and excess (above 110% of LPA). The forecasted probabilities for the 2011 southwest monsoon season based on this system in percentage for the above 5 categories are 19%, 37%, 37%, 6% and 1%
The department’s ‘Summary of the Update Forecasts for 2011 Southwest Monsoon Rainfall’ has said:
(1) Rainfall over the country as a whole for the 2011 southwest monsoon season (June to September) is most likely to be below normal (90-96% of LPA). Quantitatively, monsoon season rainfall for the country as a whole is likely to be 95% of the long period average with a model error of ±4%. The Long period average rainfall over the country as a whole for the period 1951-2000 is 89 cm.
(2) Rainfall over the country as a whole in the month of July 2011 is likely to be 93% of its LPA and that in the month of August is likely to be 94% of LPA both with a model error of ± 9 %.
(3) Over the four broad geographical regions of the country, rainfall for the 2011 Southwest Monsoon Season is likely to be 97% of its LPA over North-West India, 95% of its LPA over North-East India, 95% of its LPA over Central India and 94% of its LPA over South Peninsula, all with a model error of ± 8 %.
According to Reuters, government officials played down concerns that lower rainfall could fan inflation and dampen growth. “There is no need to press the panic button, as June rains are still above normal,” said Shailesh Nayak, the top civil servant in the ministry of earth sciences which controls the country’s weather office.
While rains could be slightly lower than normal in July, India’s chief forecaster said distribution was key. “There are chances the monsoon will pick up after July 15 once it covers the entire country,” said D. Sivananda Pai, director at the state-run National Climate Center. “Don’t go by the numbers, it is the distribution (of the rains) which we are still hoping to be good.” The weather office predicted 27 centimetres of rain in July compared with long-term average rainfall of 29 centimetres, and rains at 24 centimetres in August, when seeds start maturing, compared with long-term averages of 26 centimetres.
Weather office chief Ajit Tyagi remained optimistic. “Ninety five percent is a good forecast,” Tyagi said. “Had it been 90% of the long-term average then it would have been a cause for concern,” he said, adding that in the past slightly below normal monsoon rains had also seen adequate farm output because they were well distributed in the major crop growing regions.
Explaining climatic conditions over the equatorial Pacific and Indian Oceans, the department’s second long range said moderate to strong La Nina conditions that prevailed in the equatorial Pacific during mid-August 2010 to early February 2011 weakened during subsequent months and dissipated to neutral conditions around mid-May 2011. The latest forecasts from a majority of the dynamical and statistical models indicate strong probability for the present ENSO-neutral conditions to continue during the current monsoon season and the remaining part of 2011.
It is important to note that in addition to El Niño and La Niña events, other factors such as the Indian Ocean Sea surface temperatures (SSTs) have also significant influence on India monsoon. However, the latest forecasts do not suggest development of either a positive or a negative Indian Ocean Dipole event during the 2011 monsoon season. In the absence of strong monsoon forcing from both Pacific and Indian Oceans, intraseasonal variation may become more crucial during this southwest monsoon season and lead to increased uncertainty in the monsoon forecasts.
I am attending the “Leveraging Agriculture for Improving Nutrition and Health” conference under way in New Delhi. Organised by the International Food Policy Research Institute (IFPRI), this is a sprawling conference with over 900 international participants from all three sectors.
What’s it all about? “Agriculture is much more than just producing food and other products. It is linked to people’s well-being in many ways, and it has the potential to do much more to improve their nutrition and reduce their health risks. But to accomplish this, we need to re-imagine agriculture,” said Shenggen Fan, director general of IFPRI.
The gathering is meant to examine ways in which agriculture can enhance the health and nutritional status of poor people in developing countries. To work toward this goal, said IFPRI, they have brought experts together (I’m civil society, and there are very few NGOs/CBOs here) from all three sectors “to take stock of current knowledge, share information and best practices, and build consensus on the actions most needed to move forward”.
Here’s the IFPRI rationale. Agricultural scientists have traditionally focused on developing more productive crops and livestock and on reducing their susceptibility to disease. IFPRI and the conference sponsors (list below) say that by incorporating nutrition as a goal, researchers and breeders could provide farmers with a wide range of healthier products. For example, breeding crops with higher levels of micronutrients like vitamin A and iron can potentially reduce death and disease, especially among women and children.
“Increasing crop productivity overall is not enough. A new paradigm for agricultural development is needed, so that agricultural growth leads also to improved nutrition and health,” said Fan. The CGIAR (the Consultative Group on International Agricultural Research) and the conference sponsors say that improvements in other factors such as land distribution, women’s status, rural infrastructure, and health status, can have a positive effect on nutrition, the paper contends. “Complementary investments in rural roads, nutrition programs, and other targeted interventions can make a huge impact.”
The development community needs to be conscious of the entire “value chain” – which is a central concept running through the discussions and presentations here. This is defined as including production, storage, transportation, marketing, and consumption, “as all of these have implications for health and nutrition”. Moreover, “after harvest, there are opportunities for improving health and nutrition, from better storage and transport to stronger nutritional marketing from retailers”.
The conference features heavyweights in the international agricultural research sector and representatives from the major UN agencies involved in these sectors. The proceedings were inaugurated by India’s Prime Minister Manmohan Singh. M S Swaminathan was there; John Kufuor (former president, Ghana), David Nabarro, UN Special Representative on Food Security and Nutrition, and Montek Singh Ahluwalia, head of India’s Planning Commission were all there.
The conference concludes on 12 February and it will take me a few days to put my thoughts together on the themes and what they represent – the implications beyond the powerpoint world and what is driving this new focus.
The sponsors: Asian Development Bank; Bill & Melinda Gates Foundation; Canadian International Development Agency; Technical Centre for Agricultural and Rural Cooperation (CTA) (ACP-EU Cotonou Agreement); Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ); International Fund for Agricultural Development (IFAD); Indian Economic Association; International Development Research Center, Canada / Le Centre de recherches pour le développement international (IDRC-CRDI); Irish Aid; PepsiCo; UK Department for International Development (DFID); United States Agency for International Development (USAID); Feed the Future Initiative; The World Bank.
The International Grains Council released its monthly Grain Market Report on 2010 September 23. In this report the IGC said that global grain prices advanced again in September, those for wheat having returned to the peaks reached in early August. While the initial trigger for the steep upturn in wheat and barley values in recent months was the fast deteriorating outlook for these crops in the Black Sea region, much of the more recent bullishness is attributed to concerns about smaller than anticipated US maize (corn) yields, as well as substantial new grain buying activity by importers.
The market commentary of the report said: “Another feature is the difficult harvest weather in some countries, affecting milling wheat and malting barley quality. US soyabean prices partly mirrored the upturn in maize, but were also supported by concerns about South American crop prospects and continued heavy buying by China. Asian rice prices moved higher, largely because of the impact of the flood emergency in Pakistan. The recent surge in world grain prices, while not on the same scale as in 2007-08, again prompted concerns about its impact on global food prices as well as the increased volatility in the major commodity exchanges. One measure of such volatility is the day-to-day change in futures values which, even allowing for the events of three years ago, is significantly greater than earlier in the decade. Given the generally adequate supply situation for wheat and other grains, despite recent crop concerns, many have expressed surprise at the ferocity of recent market responses.”
Grains outlook for 2010-11 – This year’s sharply reduced crops in the CIS and Europe will contribute to a fall of 1.2% in global grain supplies, reversing three successive years of stock building. World production in 2010-11 is forecast at 1,741m. tons, (1,787m.), 4m. below the previous month’s projection. This follows downward revisions, for maize in the US and wheat in the CIS region, more than offsetting improved prospects in Australia. Significant reductions in wheat and barley output will outweigh another rise in maize, although prospects for the latter crop are downgraded slightly. The difficult growing and harvesting conditions in parts of North America, Europe and the CIS have affected supplies of high-quality milling wheat and malting barley.
Grain consumption in 2010-11 is projected to increase by 0.6%, to 1,780m. tons, but this represents a marked slowing compared with previous years as the overall rate of expansion in industrial use, especially for ethanol in the US, is scaled back. In the animal feed sector, maize use is expected to be boosted, while that of wheat will likely hold steady, but this will be more than offset by reductions in barley and other grains. With global grains consumption expected to exceed output after three surplus years, global carryover stocks in 2010-11 are projected to fall by 39m. tons, to 353m., mostly because of declines in the world’s exporters, notably Russia and the US. However, the total carryover will remain significantly above the lows seen earlier in the past decade.
Global trade in grains is expected to fall in 2010-11, mainly because of reduced wheat shipments. At 237m. tons (239m.), the total is 5m. above the August forecast, following upward revisions for the EU, Russia and sub-Saharan Africa. Export forecasts for several countries, including Australia, Canada and the US, have been lifted, with total availabilities still seen as ample in a year which will see a huge shift in trade away from the drought-afflicted Black Sea region. In all, wheat and coarse grains shipments from Kazakhstan, Russia and Ukraine will fall by 27m. tons compared with 2009-10, with around half of this shortfall likely to be sourced in the United States.
The US Department of Agriculture’s ‘Grain: World Markets and Trade’ September 2010 report is also out. It noted wheat trade changes in 2010-11 in this way:
Selected Exporters: Australia is down 500,000 tons to 15.5 million based on logistical constraints. Canada is boosted 2.0 million tons to 17.5 million due to larger exportable supplies. EU is lowered 3.0 million tons to 21.0 million on reduced exportable supplies and quality concerns, particularly for German wheat. Iran is raised 450,000 tons to 500,000 due to greater exportable supplies and opportunities opened by reduced supplies in Russia. Kazakhstan is up 500,000 tons to 6.5 million on higher Russian import demand. Russia is raised 500,000 tons to 3.5 million based on exports shipped before the ban. United States is boosted 1.0 million tons to 34.0 million on strong demand, particularly for higher quality wheat.
Selected Importers: Nigeria is up 400,000 tons to 4.0 million due to expected consumption growth. Russia is raised 1.4 million tons to 2.0 million due to increased demand for milling wheat caused by drought-reduced production.
The USDA report recorded trade changes in 2009-10 as “large late-season adjustments reflect reported shipments”. These are – Selected Exporters: Canada is up 500,000 tons to 19.0 million. The United Arab Emirates is raised 450,000 tons to 950,000. Selected Importers: Indonesia is down 450,000 tons to 5.4 million. Iran is up 600,000 tons to 3.6 million. Turkey is lowered 300,000 tons to 3.2 million.
Rice world markets and trade – Despite weather problems in China and Pakistan, global crop prospects remain excellent said the USDA report. Record world production is expected to not only meet rising demand but also maintain global stocks at the highest level since 2004.
Prices – though quotes from all origins are up somewhat from last month, Vietnam’s increase is the most dramatic. With 2010 contracts already at a record 6.2 million tons, Vietnam raised the minimum export price of 5% broken to $450 per ton FOB, essentially halting new sales and, for the first time, pushing above higher-quality U.S. #2/4 quotes ($445 per ton FOB). Vietnamese quotes are now only $30 below Thai 100B quotes, a stark departure from the $120 spread just 2 months ago. As sales stall in Vietnam, Thai sales are expected to increase as the government finally releases intervention stocks. U.S. long-grain sales are also expected to pick up on newfound competitiveness and a record crop. By contrast, the medium-grain trade is somewhat on hold as the California crop has yet to be harvested. In addition, many tenders in major markets have yet to be announced.
The USDA report forecast trade changes for 2011. These are – Pakistan’s exports are slashed 750,000 tons to 2.9 million as floods have reduced the crop and damaged infrastructure. Afghanistan’s imports are reduced 100,000 tons to 200,000, as Pakistan is by far the largest supplier due to proximity and relative prices. Iran’s imports are cut 300,000 tons to 1.2 million on the expectation that imports from Pakistan will fall. Thailand’s exports are down 500,000 tons to 9.0 million because the government stock release is happening much later in the year than originally anticipated. Vietnam’s exports are raised 450,000 tons to a record 6.2 million on contracts to date. By contrast, imports are dropped 100,000 tons to 400,000 on a slowdown of border trade with Cambodia. Indonesia’s imports are doubled to 500,000 tons as relatively high domestic prices have caused a surge in trade with neighboring countries. Iran’s imports are dropped 150,000 tons to 1.2 million on the pace of shipments. Nigeria’s imports are lowered 100,000 tons to 1.7 million on slower-than-expected imports from Thailand.
The July 2010 news and analysis on the global grain trade market have much to do with the weather conditions in Russia and Central Asia. The Economic Research Service of the United States Department of Agriculture (USDA), the Food and Agriculture Organization (FAO) and the International Grains Council all concentrate on this region and the effect of an extraordinary heatwave on the wheat crops of Russia, Ukraine and Kazakhstan.
1) The Economic Research Service of the United States Department of Agriculture (USDA) said that the next decade is likely to see a major shift in global wheat production and trade. The largest gains in wheat production and exports will likely come from the region of the former Soviet Union (the one-time USSR), specifically Russia, Ukraine, and Kazakhstan, where changes in production efficiency and market forces combine to favor wheat. The USDA has projected that wheat exports by Russia, Ukraine, and Kazakhstan will increase by about 50% to over 50 million metric tons (mmt) by 2019. In the coming decade, the region may account for over half the growth in world wheat exports, perhaps even supplanting the U.S. as the “wheat breadbasket of the world”.
The United States, the world’s largest wheat exporter since World War II, could slip to second place. US wheat production is projected to rise only slightly over the next decade, and exports are forecast to remain below the average for 2001-09. By 2019, according to USDA projections, Russia’s wheat exports will exceed those of the United States. And, total wheat exports from Russia, Ukraine, and Kazakhstan likely will be more than double those of the United States.
The USA has been the largest wheat exporter during the post-World War II period. However, the US share of world wheat exports could drop from an average of 24% in 2001-09 to an estimated 16% by 2019, with the annual volume of US wheat exports declining from 27.5 mmt during the 2000s to 24.5 mmt in 2019. The European Union, Canada, and Argentina also will lose shares of world wheat exports, while Australia will likely maintain its share. USDA projects that over the next 10 years, Russia, Ukraine, and Kazakhstan’s share of wheat exports could increase from less than 20% in the 2000s to over 33% in 2019. Russia and Ukraine are returning to their historical role, as during the Russian tsarist empire which ended in the late 1910s, of being major wheat exporters.
2) The Food and Agriculture Organization (FAO) has said that the impact of unfavourable weather events on crops in recent weeks has led FAO to cut its global wheat production forecast for 2010 to 651 million tonnes, from 676 million tonnes reported in June. But despite production problems in some leading exporting countries, the world wheat market remains far more balanced than at the time of the world food crisis in 2007-08 and fears of a new global food crisis are not justified at this point, said FAO.
A continuing, devastating drought afflicting crops in the Russian Federation, coupled with anticipated lower outputs in Kazakhstan and Ukraine have raised strong fears about the availability of world wheat supply in the 2010-11 marketing season. The turmoil in global wheat markets, which has intensified in recent weeks, is evidence of the growing dependence on the Black Sea region, an area renowned for erratic yields, as a major supplier of wheat to world markets. In addition, an expected production decline in Canada, another major producer and exporter of wheat, has reinforced market worries.
International wheat prices have jumped by over 50% since June. This rapid increase in prices is prompting concerns about a repeat of the crisis of 2007-08. But after two consecutive years of record crops, world inventories have been replenished sufficiently to cover the current anticipated production shortfall. Even more importantly, stocks held by the traditional wheat exporters, the main buffer against unexpected events, remain ample. The latest downgrading of world wheat production forecast for 2010 points to a tighter supply situation and increases the likelihood of higher wheat prices compared to the previous season. However, fears of a global food crisis are unwarranted at this stage. On the other hand, should the drought in the Russian Federation continue, it could pose problems for winter plantings in that country with potentially serious implications for world wheat supplies in 2011-12.
3) Heightened market concerns about the outcome of this year’s harvests in some key northern hemisphere exporters, especially wheat and barley in the Black Sea region, propelled prices of grains and oilseeds upwards in July, said the International Grains Council in its Grain Market Report of 29 July 2010. However, rice markets weakened further over the period. Milling wheat export quotations in the EU and the Black Sea region climbed by around US$70 per ton in response to reports of significant drought-induced yield losses in some areas, with markets also speculating about possible export restrictions in Russia and Ukraine. However, substantial new wheat sales were still being recorded from those countries.
Wheat futures in the US reached their highest levels in over a year, with considerable speculative activity, but export values nevertheless became increasingly competitive against other origins, with this year’s ample availabilities likely to spur a sharp recovery in foreign sales. US maize futures, having initially slumped to nine-month lows at the end of June, climbed steeply in early July in response to somewhat reduced US supply forecasts and the rally in wheat, but the gains over the period as a whole were quite modest, reflecting the generally favourable crop outlook. For oilseeds, much of the focus was on diminishing US old crop supplies of soyabeans as the season neared its end and the continued fast pace of exports, especially to China.
In contrast to the generally bullish tone of world wheat and coarse grains markets, international rice prices again moved lower in the absence of significant new buying in Far East Asia and the broadly favourable outlook for India’s next crop, although much depends on the final outcome of the summer monsoon. Ocean freight rates for grains and other dry bulk cargoes fell further in July although there were recent signs of increased chartering activity.