Good morning.
Bring on the Madness. That’s Magnetic March Madness!
We are 10 days away from kicking winter blues to the curb to bring back Magnetic March Madness again this year.
64 agriculture companies, 4 weeks, 1 champion.
And beyond bragging rights that you have the best brand in agriculture, we will also donate $500 to Boys Grow in the winning company's name! Boys Grow is a non-profit mentoring Kansas City's urban youth through agricultural entrepreneurship.
Nominate your company here!
The News:
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Harvesting Havoc: North Korea’s Ag Strategy |
Fotographica Basica, Getty Images Signature
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Kim Jong Un is coming for control over agriculture in hopes of increasing grain production and stopping a worsening food shortage in its tracks. Talk about a big job.
Due to long standing dedication and resource prioritization to their nuclear program, quickly resolving food insecurity is not a likely proposition - especially since Kim’s proposed measures are very similar to past policies.
You know what they say about doing the same things and expecting a different result…
Experts say there is no imminent famine or mass deaths on the horizon. But Kim’s comments point to further dedication to a planned economy rather than allowing markets to play a bigger role.
Soundbite: "In order to attain the gigantic long-term objective of rural development, it is necessary to decisively strengthen the party guidance over the agricultural sector and improve the rural party work," said Kim.
Shortage sources: Unsuccessful state-run grain supply and limited private transactions at markets have deepened the shortage, along with reduced personal incomes and pandemic-driven decreases in unofficial Chinese grain purchases.
By the numbers: according to South Korean estimations,
- 2022 North Korean grain production was estimated to be down 3.8%
- In the last decade, North Korean annual production has been estimated between 4.4 million and 4.8 million tons
- North Korea needs an estimated 5.5 million tons of grain to feed its population each year
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→ Culling controversy. The U.S. Forest Service carried out a controversial operation to cull 19 feral cattle in New Mexico’s Gila Wilderness, sparking blowback from state and national groups.
→ Parched concerns. Historical drought in South America paved the way for Brazil to approve GMO wheat for cultivation and consumption. More countries are seen flocking to GMO crops to respond to global food security concerns.
→ Inflation sticking around. Still, global food prices declined for an 11th straight month in February, with significant drops in dairy products and vegetable oils.
→ Tech takeover. AgTech is making waves as U.K.-software company Hectare secured $20M to advance sustainable agriculture practices through data collection.
→ Production headache.This worst drought in 60 years is forecast to cost Argentina $20B in harvest losses for corn and soybean production.
→ Say (gruyere) ‘cheese’. The U.S. Appeals Court upheld a ruling that allows U.S. dairy makers to label cheese as "gruyere," rejecting a call to restrict labeling outside of the Gruyère region of Switzerland and France.
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Not so fast, oat milk.
Or at least that is the case if a slew of dairy lovin’ U.S. legislators have anything to do with it.
Backstory: In late February, the FDA released new draft guidance that recommends voluntary statements on products to differentiate nutritional values specifically as it relates to milk and its plant-based alternatives.
The statements would disclose differences as outlined by the USDA’s Food and Nutrition Service. For example, a non-milk product could say, "Contains lower amounts of vitamin D and calcium than milk."
That’s nice but… ‘it’s not enough.’ Although the guidance was warmly welcomed by the dairy industry, stakeholders still believe nut, oat, soy, and other non-dairy products shouldn’t use the name "milk,"
In response to the guidance, Senators Tammy Baldwin (D-WI), Jim Risch (R-ID), Susan Collins (R-ME), and Peter Welch (D-VT) re-introduced bipartisan legislation to halt the practice of mislabeling products.
The bill – the Defending Against Imitations and Replacements of Yogurt, milk, and cheese to Promote Regular Intake of Dairy Everyday Act (DAIRY PRIDE Act) – would require non-dairy products to no longer use dairy terms in their labeling, such as milk, yogurt or cheese.
Soundbite: "DAIRY PRIDE is needed more than ever, now that FDA has offered guidance on the labeling of plant-based beverages that, while taking steps in the right direction, ultimately doesn’t remedy the problem it seeks to solve, which is the proven confusion among consumers created when plant-based beverages steal dairy terms to make their products appear healthier than they really are." - Jim Mulhern, president and CEO of the National Milk Producers Federation
What comes next: The DAIRY PRIDE Act is expected to hit the House of Representatives floor within weeks while the FDA guidance will take comments until late April. More to come.
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With North Korean agriculture in the limelight, we were curious how much of the country's geography was primed for food production.
What percent of the East Asia nation is suitable for agriculture?
Answer at the bottom of the email.
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Is the Global Phosphate Tank Empty? |
Brian Brown Images, Getty Images
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As the Russian invasion into Ukraine enters year two, it looks like the war’s impact on global fertilizer supply will spend another growing season causing frustrated farmers worldwide.
Who Makes What: Russia exports around one-fifth of the world’s fertilizer, while their ally Belarus is a major source of potash. Post Ukrainian invasion the U.S. and many other nations opted to swipe left on the two nations, instituting sanctions, banning Russian banks from the global SWIFT payment system and closing export routes.
China, another big player on the fertilizer stage, began restricting exports in 2021 to protect its domestic supply.
Just in case that’s not enough of a cluster, Europe’s skyrocketing energy prices have led to a 70% reduction of their domestic fertilizer production.
From May 2020 through 2022 fertilizer prices rose a staggering 199%. Economists are bracing themselves as anticipated rising fertilizer prices will likely heavily impact poor nations already at risk of famine.
But wait, there’s more: Some analysts have predicted that the global phosphate tank is running low, a speculation that also sends prices soaring.
But not everyone agrees with that theory. John Phipps of the US Farm Report believes concerns about peak phosphate production are overblown. "I discovered financial advisors, whose business is to encourage investors, tend to be more hysterical about future phosphate shortages and higher prices and profits than independent or government scientists."
Filling the void: Several global players have stepped in to ease the crunch.
- Canada has amped up potash production.
- Morocco, home to 70% of the world’s phosphate, is increasing output.
- Domestically, the Biden Administration earmarked $500 million to improve home production.
In the meantime, farmers will be forced to reach deep into their pockets or explore fertilizer alternatives.
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