WORLD NEWS- 15 February 2008

No end to world grain shortage
NZ to limit size of dairy farms
EU milk quotas resist change
Issue Date: 15 February 2008

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No end to world grain shortage
Th e International Grains Council (IGC) estimates the 2007/2008 world grain crop at 1,66 billion tons, 87 million less than 2006/2007. Global consumption is expected to rise by 53 million tons to 1,68 billion tons. This will cause the 2007/08 global grain ending stocks to drop by 19 million from a year ago to 244 million tons. Estimated world production for maize is 67 million tons, up from last year at 765 million tons. Consumption is forecast at a record 770 million tons. SA farmers are planting more maize, with the last estimate at 2,79 million hectares, a 9,17% increase from 2006/2007. – Alan Harman & Staff reporter

NZ to limit size of dairy farms
N ew Zealand’s Labour government is threatening to legislate smaller dairy farms and limit herd sizes to protect the country’s environmental image. A state of the environment report said the country had to change the way it uses land and water because intensified farming was jeopardising climate and water. “sustainable economy cannot be built on plundering the natural environment for short-term gain,” environment minister Trevor Mallard said. – Alan Harman

EU milk quotas resist change
EU politicians are getting cold feet about the plan to increase milk quotas by 2% for the 2008/09 milk marketing year. agriculture commissioner Mariann Fischer Boel says some member states would rather postpone any increase in milk quotas until after the planned review of the EU’s agricultural policy, due to be completed next year. She indicated that as a result she might replace the increase with a proposal to reduce the level of super levy fines for overproduction or allow the transfer of quotas between member states. The proposal to abolish quotas after 2015 is also running into political problems. Some countries want quotas to continue because they believe high-cost producers in more disadvantaged regions will stop production if milk prices fall as a result of the abolition of quotas. – Alan Harman