AgDay Daily Recap - January 27, 2011

January 27, 2011 03:41 AM
 

TODAY ON AGDAY:
JANUARY 27, 2011

FTA OBAMA:
AS THE PRESIDENT ADDRESSED CONGRESS TUESDAY NIGHT FOR THE ANNUAL STATE OF THE UNION ADDRESS, HE MADE IT CLEAR THAT IT'S TIME FOR CONGRESS TO TAKE ACTION ON THREE FREE-TRADE AGREEMENTS. LAST YEAR AT THIS TIME, PRESIDENT OBAMA SET A GOAL TO DOUBLE U.S. EXPORTS BY 2014. HE SAYS THERE'S BEEN SOME PROGRESS, BUT NOT ENOUGH.

ROOK SO KOREA TRADE:
2011 COULD BE THE YEAR FOR RATIFICATION OF THE THREE PENDING FREE TRADE AGREEMENTS. THE SOUTH KOREAN FTA LOOKS TO BE THE FIRST THAT WILL BE RATIFIED BY CONGRESS AFTER A BREAK-THRU BY THE WHITE HOUSE AT THE END OF LAST YEAR. TWO OTHER FTA'S - WITH COLOMBIA AND PANAMA - ARE STILL IN THE WINGS WAITING FOR APPROVAL. AGDAY'S MICHELLE ROOKE LOOKS AT WHAT THESE DEALS COULD MEAN FOR U.S. AGRICULTURE. AFTER THE EXPECTED PASSAGE OF THE SOUTH KOREAN FTA, AG GROUPS ARE HOPEFUL COLUMBIA AND PANAMA WILL FALL IN LINE.

COLUMBIA TRADE:
THIS WEEK, COLOMBIA'S AMBASSADOR TO THE U.S. MET WITH TWO WHEAT-GROWER GROUPS. AMBASSADOR GABRIEL SILVA SAYS THE MARKET SHARE OF U.S. AGRICULTURAL GOODS HAS SEEN A BIG DECLINE. SILVA SAYS IT DROPPED TO 46% IN 2008 TO 21% LAST YEAR. AT THE SAME TIME, CANADA'S MARKET SHARE ROSE SLIGHTLY. AND ARGENTINA'S PIECE OF THE PIE RACED FROM ABOUT 14% TO 30%. SILVA SAYS HE BELIEVES THERE'S STILL TIME TO GET AN AGREEMENT DONE.

ANALYSIS:
GARY WILHELMI

TPOY MICHIGAN:
TO CALL CLARK FAMILY FARMS NEAR LANSING, MICHIGAN DIVERSIFIED IS AN UNDERSTATEMENT. IN ADDITION TO THE SEVERAL THOUSAND ACRES OF ROW-CROPS, THE BUSINESS ALSO HANDLES SNOW REMOVAL, MOWING, ANHYDROUS DELIVERY AND OPERATES A GRAVEL PIT! BECAUSE OF THEIR SUCCESS IN THEIR OPERATION, CLARK FAMILY FARMS IS A NOMINEE FOR TOP PRODUCER OF THE YEAR, AS SELECTED BY TOP PRODUCER MAGAZINE. AND WHILE THE FAMILY BUSINESS HAS ALREADY BEEN SUCCESSFUL, ITS 'CONTINUED' SUCCESS IS NOW ON THE SHOULDERS OF 32 YEAR OLD JAKE CLARK. CLINTON GRIFFITHS HAS THE STORY OF A YOUNG FARMER WHO LEADS BY EXAMPLE. WHEN AGDAY CONTINUES ON THIS THURSDAY MORNING, GET READY TO PAY MORE FOR FOOD - BOTH AT HOME AND AWAY. WE'LL TELL YOU HOW MUCH. FOOD AND YOUR FAMILY IS NEXT.

FOOD PRICES:
IN FOOD AND YOUR FAMILY, IT'S GOING TO COST YOU MORE TO EAT THIS YEAR. THE 2011 CONSUMER PRICE INDEX FOR ALL FOOD IS PROJECTED TO INCREASE 2-3%. USDA'S ECONOMIC RESEARCH SERVICE SAYS THAT INCREASE INCLUDES BOTH FOOD-AT-HOME AND AWAY-FROM-HOME.  ECONOMISTS SAY FOOD PRICE INFLATION WAS RELATIVELY WEAK FOR MOST OF 2009 AND 2010. BUT HIGHER FOOD COMMODITY AND ENERGY PRICES HAVE RECENTLY EXERTED PRESSURE ON WHOLESALE AND RETAIL FOOD PRICES. AND OF COURSE, THAT GETS PASSED ALONG TO CONSUMERS. ERS SAYS DAIRY PRODUCTS SHOWED THE HIGHEST INCREASE, UP AS MUCH AS 5.5%.

RESTAURANTS:
MEANWHILE THE NUMBER OF U.S. RESTAURANTS IS DOWN FROM A YEAR AGO, ESPECIALLY THOSE NOT CONNECTED TO A MAJOR FOOD CHAIN. MARKET RESEARCH FIRM, THE NPD GROUP, CONDUCTED A CENSUS OF RESTAURANTS LAST FALL. THE RESULTS SHOW THE NUMBER OF EATERIES DECLINED BY 1% OR ABOUT 5,500. INDEPENDENT RESTAURANTS DROPPED 2%, WHILE CHAIN RESTAURANTS REMAINED FLAT. NPD SAYS INDEPENDANTS DON'T HAVE THE RESOURCES TO COMPETE WITH CHAINS DURING A DOWNTURN IN THE ECONOMY.

CONTACT PAGE:
WE'D LOVE TO HEAR FROM YOU! CONTACT US AT 800-792-4329. OR DROP AN EMAIL. WE CHANGED THE ADDRESS A BIT. IT'S NOW INBOX@AGDAY.COM . AND OF COURSE, CLINTON IS USUALLY LOOKING FOR COMMENTS ON HIS FACEBOOK PAGE, SO YOU CAN WRITE HIM THERE.

 

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