Grains till 2016-17: the IGC speaks

The International Grains Council (IGC) has prepared a summary of projections for grains and cereals. The IGC Secretariat has said of its work that “the figures represent the Secretariat’s view of the general development of the global grains economy in the period to 2016-17, taking into account a number of broad assumptions”.

These include assumed trends in population growth, prices, developments in agriculture and trade policy, as well as prospects for the global economy. “The latter have become increasingly uncertain over the past year”, the IGC Secretariat has said. The IGC has added the proviso that these estimates and the forecast derived from them are subject to risk, and this analysis assumes that current economic problems do not worsen. Here are the sections:

Total Grains
* World grains production in 2016-17 is projected to reach 1.98bn tons, a 158m. increase (+9%) compared with 2011-12; wheat output is forecast to rise by 30m. (4%) and maize by 94m. (11%).
* Despite heightened economic uncertainty, the analysis assumes any slowdown in global economic growth will be temporary and increasing prosperity will boost grains consumption, particularly for feed and industrial uses. Feed use is expected to rise at a slightly faster pace than in recent years, while increases in industrial use will slow from the very rapid rates in the past decade. Diversifying diets, particularly in favour of livestock products, will slow the rise in direct use of grains for human food. Total grains consumption is projected at 1.98bn. tons in 2016-17 (1.83bn. in 2011-12), including 659m. (630m.) for human food, 846m. (769m.) for feed and 343m. (302m.) for industrial uses.

World grains stocks are forecast to show little change in the medium term and are set to remain relatively tight, especially for maize. At the end of 2016-17, world grain carryover stocks are projected at 354m. tons (compared with 360m. at the end of 2011-12), including 118m. (123m.) of maize, 196m. (202m.) of wheat and 26m. (23m.) of barley.
* World grains trade is projected to increase by about 2% per year, to 273m. tons in 2016-17, with wheat and maize rising to new records. Increasing demand for wheat-based foods will lift wheat import needs in Africa and Asia. Imports of maize for feed will rise, especially in Pacific Asia, with China seen as a more regular buyer.

Wheat
* Increases in world wheat production in the five years ending 2016 are expected to be broadly matched by use, and global stocks are expected to be maintained at close to recent levels.
* Planting decisions will be influenced by likely attractive prices for alternative crops, especially maize and oilseeds. Nevertheless, some rise in global wheat area is anticipated, led by gains in the CIS. After a relatively sharp increase of 1.6% in 2012-13, including a recovery in North America, global areas are projected to expand by around 0.4% annually. Taking into account slightly increased average yields over the period, world wheat production is projected to reach a record 714m. tons in 2016-17, representing an increase of 30m. compared with the estimate for 2011.
* World wheat consumption is projected to grow by 1.1% annually, close to the long-term average, reaching 716m. tons in 2016-17, up by 39m. compared with 2011-12. A continued increase in human food use accounts for half the rise, driven by expanding demand in developing countries. At 0.8% per year, the average annual increase is only slightly slower than the longer-term trend of 1.0%. Increases in world feed use mainly reflect a tight S&D outlook for maize and expectations that the cost of wheat will be more attractive than maize at times. Gains in industrial use are expected to accelerate, particularly for biofuels, although overall amounts will remain small relative to total consumption.
* World wheat carryover stocks are projected to stay relatively ample in the next five years, receding only slightly, to 196m. tons. Those in the eight major exporters are projected to show an initial rise, but then fall back to about the same level as currently.
* World wheat trade to 2016-17 is forecast to increase by around 2% per year, reaching a fresh record of 138m. tons. Increases in milling wheat trade will be sustained by rising demand in developing countries in Asia and Africa, while feed wheat may show some further gains if import costs are competitive with maize.

[The IGC forecast document is available here (pdf)]
[The spreadsheet (xls) with the major grains’ data is available here]

Rice
* Only a modest expansion in the global paddy (rice) area is forecast in the five years to 2016-17, with the average year-on-year increase projected at just 0.3% (compared to an average of 0.7% in the prior five-year period). To some extent, this reflects an expected contraction in China’s sowings, amid a continued shift to diets that are richer in protein. Taking into account slightly reduced average yield gains, global rice production (milled basis) is projected to increase by 23m. tons, to 482m. by 2016-17, an annual average growth rate of 1%.
* Global rice consumption is projected to reach 482m. tons by 2016-17, up by 25m. from 2011-12. At 1.1%, average growth, while broadly in line with the global population trend, will be lower than in previous years. This is due to a forecast contraction in China, as well as more moderate growth in other parts of Asia. Elsewhere, sub-Saharan Africa is expected to be one of the fastest growing regional markets, the result of a rising population and a shift away from traditional, locally-grown cereals.
* The world rice carryover is projected to rise only slightly over the next five years, to 103m. tons. In the five major exporters, stocks are expected to initially increase – centred on inventory accumulation in India and Thailand – before edging slightly lower. Their share of the world total will average around one-third through to 2016-17.
* Global rice trade is projected to expand by nearly 3% annually, to 37.2m. tons by 2017, broadly in line with maize but comfortably exceeding the year-to-year rise in wheat. Growth will be underpinned by larger shipments to Far East Asia, especially the Philippines, and sub-Saharan Africa. The latter sub-region will remain heavily dependent on imports to meet domestic requirements; their share of total consumption is forecast to average 45%.

Maize (Corn)
* The supply and demand for maize (corn) is projected to remain tight, with world inventories projected to drop to historically low levels.
* With firm global demand and generally tight availabilities expected to support world prices, maize plantings are projected to remain high across the forecast period. Increases in area and improvements in yields, especially in the US, Latin America and China, result in large consecutive crops. World maize production is forecast to increase to 949m. tons in 2016-17, some 94m. higher than the estimate for 2011.
* Global maize consumption is projected to rise to 949m. tons in 2016-17, up by 86m. from 2011-12. Growth in use is forecast to decelerate, mainly due to slowing industrial demand. With use for ethanol in the US levelling out, industrial consumption is projected to rise by 2% annually, compared to 12% in the last five years. Despite high prices, rising meat demand in developing countries will lift feed maize consumption by around 2% per year. Population growth, rising per capita incomes and changing dietary preferences are expected to boost meat consumption in parts of Asia, Latin America and Africa.
* World closing stocks are expected to tighten but, with supply and demand seen broadly in balance towards the end of the forecast period, the projected 2016-17 carryover of 118m. tons would only be 5m. below that at the end of 2011-12. US ending stocks are forecast to increase from recent lows, but China’s will decline.

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Fukushima nuclear emergency, Japan

08 February 2017: A month short of six years after the 11 March Fukushima disaster began unfolding, the situation at the nuclear power plant has entered a new phase of danger, one which modern industrial civilisation has no experience with and very little knowledge about.

The highest radiation level at Fukushima is now much higher than the highest ever measured at Chernobyl, which was 300 sieverts per hour, an inconceivably high dose which can kill a person almost instantly. Radiation is usually measured in thousandths of a sievert, called millisieverts. For example, most people receive around 2.4 millisieverts per year from background radiation, or only 0.0002739726 per hour.

But a radiation level of 530 sieverts per hour has just been measured at Fukushima’s number 2 reactor. This new record at Fukushima is 70% higher than that of Chernobyl. (The highest level previously measured at Fukushima was 73 sieverts per hour, in March 2012.) The leakage of highly radioactive water has been continuing every day, a daily flow of radioactively contaminated groundwater into the ocean. The estimates are of about 300,000 litres per day of relatively low-level radioactive waste water. But there are storage tanks with 800,000 tons of highly radioactive water, as every day about 100 tons of water are poured on the three melted down cores.

18 December 2011: You will find the Updates archive, info links, video clips and pictures on the Japan emergency page.

Street lights shine in the abandoned town of Iitate, outside the 20 kilometre exclusion zone around the Fukushima No. 1 Nuclear Power Plant, in northeast Japan. Residents were forced to evacuate the town after radiation levels from the leaking plant exceeded those inside the exclusion zone. Nov. 20, 2011. Photo: Mainichi Daily News / AP Photo / Greg Baker

More than nine months have passed since the 11 March earthquake and tsunami that devastated northeastern Japan and triggered a still-unresolved disaster at the Fukushima No. 1 Nuclear Power Plant. This set of news reports, news features and editorial in the Mainichi Daily News reveals the chronic deception and criminal corporate irresponsibility that continue to hinder all meaningful effort to mitigate the meltdown, and to obstruct at all costs the truth.

Mainichi Daily News has said that the government has declared a stable “cold shutdown” at the plant, representing a major milestone in its handling of the disaster. The public has keenly waited for the nuclear reactors to be brought under stable control, but Japan is still standing on thin ice and is miles away from a situation where it can really declare that the crisis is under control.

In the meantime, rebuilding the lives of residents near the crippled plants has been an urgent critical challenge. On the occasion of its latest political declaration, the government needs to renew its resolve to settle the crisis and achieve regional recovery. The disaster-hit reactors are certainly now in a more stable condition. However, the phrase “cold shutdown” usually refers to suspension of a sound reactor. The fact that the government is attempting to apply this term in a severe accident in which three reactors have suffered core meltdowns should be called into question. The government should rather explain in detail the possibility of any additional explosions and whether a recriticality accident has been ruled out.

Police on duty at a roadblock at the edge of the 20 kilometre exclusion zone around the crippled Fukushima No. 1 Nuclear Power Plant, at Namie, in northeast Japan. Nov. 20, 2011. Photo: Mainichi Daily News / AP Photo / Greg Baker

Simulations suggest that nuclear fuel has melted inside the reactor containment vessels, eroding their concrete floors. Although Tokyo Electric Power Co. (TEPCO), the operator of the stricken nuclear plant, has indicated that melted fuel has also been cooled down by water, this is nothing but speculation. We urge the utility and the government to find a way to ascertain the precise condition of the fuel.

Mainichi Daily News has reported that conditions at the Fukushima No. 1 nuclear plant are far worse than its operator or the government has admitted, according to freelance journalist Tomohiko Suzuki, who spent more than a month working undercover at the power station. “Absolutely no progress is being made” towards the final resolution of the crisis, Suzuki told reporters at a Foreign Correspondents’ Club of Japan news conference on Dec. 15. Suzuki, 55, worked for a Toshiba Corp. subsidiary as a general laborer there from July 13 to Aug. 22, documenting sloppy repair work, companies including plant operator Tokyo Electric Power Co. (TEPCO) playing fast and loose with their workers’ radiation doses, and a marked concern for appearances over the safety of employees or the public.

An earthquake-damaged grave is seen at a cemetery in the abandoned town of Katsurao, outside the 20 kilometre exclusion zone around the Fukushima No. 1 Nuclear Power Plant, in northeast Japan. The town was abandoned when radiation levels became unsafe for long term exposure. Nov. 20, 2011. Photo: Mainichi Daily News / AP Photo / Greg Baker

For example, the no-entry zones around the plant – the 20-kilometer radius exclusion zone and the extension covering most of the village of Iitate and other municipalities – have more to do with convenience that actual safety, Suzuki says. The situation at the plant itself is no better, where he says much of the work is simply “for show,” fraught with corporate jealousies and secretiveness and “completely different” from the “all-Japan” cooperative effort being presented by the government.

“Reactor makers Toshiba and Hitachi (brought in to help resolve the crisis) each have their own technology, and they don’t talk to each other. Toshiba doesn’t tell Hitachi what it’s doing, and Hitachi doesn’t tell Toshiba what it’s doing.” Meanwhile, despite there being no concrete data on the state of the reactor cores, claims by the government and TEPCO that the disaster is under control and that the reactors are on-schedule for a cold shutdown by the year’s end have promoted a breakneck work schedule, leading to shoddy repairs and habitual disregard for worker safety, he said. “Working at Fukushima is equivalent to being given an order to die,” Suzuki quoted one nuclear-related company source as saying.

At a Tokyo market, a smartphone shows radiation test results by the grower of a package of Maitake mushrooms, showing them as free of radioactive contamination. Many consumers worry about the safety of food from Fukushima and surrounding prefectures, although produce and fish found to be above government-set limits for contamination are barred from the market. Mushrooms, for example, harvested in and around Fukushima are frequently found to be contaminated and barred from the market. Sept. 12, 2011. Photo: Mainichi Daily News / AP Photo / Shizuo Kambayashi

Kenichi Oshima is currently a professor at Ritsumeikan University. After long years of nuclear power research, he had learned that the actual cost of maintaining nuclear power in Japan was twice as high as what government and electric power companies had publicly announced, the Mainichi Daily News has reported. In March 2010, published his findings in a book, but found himself under fire at a time when pro-nuclear energy was becoming even stronger. In September the same year, during a meeting of the Japan Atomic Energy Commission, his comments were rejected and even mocked. “Do you call this research?” he was told and few even cared to look at his findings.

Following the nuclear disaster at the Fukushima No. 1 power plant, triggered by the March 11 earthquake and tsunami, Oshima’s situation drastically changed. He was selected as a member of two expert governmental committees to serve as a critical analyst of Japan’s current nuclear power stance. The group will openly release all internal debates and documents, Oshima says. He is now more optimistic than ever that the time to destroy the “cheap and safe” nuclear power myth will eventually come.

Workers in protective suits and masks wait to enter the emergency operation center at the crippled Fukushima No. 1 Nuclear Power Plant in Okuma, Japan. Nov. 12, 2011. Photo: Mainichi Daily News / AP Photo / David Guttenfelder, Pool

A sober and critical editorial in the Mainichi Daily News has said that Britain has already abandoned developing fast-breeder nuclear reactors, and is set to give up nuclear fuel reprocessing as well. Moreover, its planned construction of a facility to dispose of radioactive waste including plutonium is likely to materialize even though it is still at a planning phase.

In contrast, there are no prospects that Japan can build a disposal facility. However, for Japan to call for operations at the Monju prototype fast-breeder nuclear reactor in Fukui Prefecture and the nuclear fuel reprocessing plant in the Aomori Prefecture village of Rokkasho to be carried out as planned, would be like putting the cart before the horse as it appears the country is incapable of building a disposal facility.

Plutonium is directly related to security issues. The U.K. possesses nuclear weapons but Japan does not. One may wonder whether Japan’s independence will be threatened if it abandons nuclear fuel recycling and loses its ability to produce plutonium. Even though it is an important point of contention the issue should not be used as a reason to underestimate the harm of plutonium.

Economy, Trade and Industry Minister Yukio Edano who is in charge of energy policy, Goshi Hosono, state minister for handling the nuclear crisis, and Yoshito Sengoku, second-in-command in the ruling Democratic Party of Japan’s Policy Research Committee, have been hearing the views of experts on the issue. It is not enough for the government to talk only about the dream of “prosperity” built on dependence on nuclear power. Japan’s ability to overcome the mess that follows such prosperity is now being tested.

More updates, info links, video clips and pictures on the Japan emergency page.