For week ending August 06, 2009

Trade Liberalization in Central America has Led to Obesity - Study
Russian Sunflower Oil Consumption to Rise
...Export to Reach Record High
Oilseed-Based Jet Fuel Launch Successful
Indian Firms to Establish Oilseed Plantations in Latin America
EU Urged to Relax Zero Tolerance Policy on Genetically Modified Soya
EU to Support Eco-Friendly Palm Oil Producers
Polyunsaturated Fats may Lead to Inflammatory Bowel Disease - Study
Omega-3 Oils may Help Reduce Age-Related Macular Degeneration Risk - Study

TRADE LIBERALIZATION IN CENTRAL AMERICA HAS LED TO OBESITY -STUDY

       According to a new study, trade liberalization in Central America has led to increased imports and availability of processed food, contributing to nutrition and obesity problems in the region. Anne Marie Thow of the University of Sydney and Corina Hawkes of the University of Sao Paulo, writing in the online journal Globalization and Health, examined data on imports, production and availability of foods, and compared it to various tariff levels in Central American countries. Thow said, ?Central America has undergone extensive trade liberalization over the past two decades, and has recently signed a Free Trade Agreement with the United States. These policies have implications for health in the region. Specifically, they have been a factor in facilitating the ?nutrition transition? which is associated with rising rates of obesity and chronic diseases such as cardiovascular disease and cancer?.

       Average tariff levels in the region fell from 45 percent in 1985 to about six percent in 2000. In response, from the early 90s to mid 00s, food imports more than doubled. During this time, the US became the leading exporter of processed cheese to the region, and imports increased 3215 percent. In terms of processed fruits and vegetables, the authors wrote: ?The most significant trend is the rise of imports of French fries,? with fries accounting for 23 percent of all imports of both fresh and processed fruits and vegetables in the region by the mid-00s. Thow said, ?In Central America, liberalization appears to have directly influenced the availability and price of meat and processed foods, many of which are energy-dense and high in fats, sugar and salt. Apart from increased imports of processed foods, the research said more imported grain has led to more domestic chicken production, and fewer barriers to investment have stimulated the growth of processed food markets?.

       The APK-Inform Agency projects that despite the influence of the financial crisis, consumption of vegetable oils and fats in Russia in 2008/09 marketing year will increase by nearly 2% to a total 3.8 million tons. Consumption of the main product sunflower oil will increase greatly by 12% to 2 million tons. Russia?s imposition of 5% import duties for palm oil in May this year was one of the most important reasons for the growth of sunflower oil consumption and production. The import duty may be raised to 10% in the future. During the period of October 2008-May 2009, imports of palm oil to Russia went down by 32% compared to the same period of the previous season.

?EXPORT TO REACH RECORD HIGH

       In a related development, Russia?s Federal Customs Service (FTS) anticipates the country?s sunflower oil export to reach a record 820,000-850,000 MT for the marketing year October 2008/September 2009 due to strong overseas interest. Exports for the nine-month period to June at 694,800 MT already exceeded the 327,400 MT shipped in total in the prior year. Export for the month of June alone, according to agriculture analyst SovEcon, stood at 98,900 MT with Italy as top export market with purchases of 18,900 MT, followed by Netherlands with 12,000 MT, and Egypt with 8,850 MT. Russia currently levies a 20% export duty on sunflower oil exports. An industry lobby for the lifting of the duty has not been granted as yet by the government.

OILSEED-BASED JET FUEL LAUNCH SUCCESSFUL

       University of North Dakota?s Energy & Environmental Research Center?s (EERC) renewable jet propellant-8 (JP-8) fuel which it developed and produced was successfully flown in a rocket built by Flometrics, Inc., a product engineering company specializing in fluid dynamics and thermodynamics based in San Diego, Calif. The fuel burn was so successful that the rocket approached Mach 1 (the speed of the sound) and reached an altitude of about 20,000 feet. The launch was conducted on a hot summer day in the Mojave Desert, home to numerous aviation and rocket tests throughout history, just outside of San Diego.

       The EERC?s fuel was created from completely renewable crop oils, such as canola and soybean. Developed through a variety of existing contracts, the fuel was vigorously tested at the Wright-Patterson Air Force Base Air Force Research Laboratory (AFRL), a co-sponsor of the test along with the EERC and Flometrics, and meets all of the screening criteria for JP-8 aviation fuel, a petroleum-based fuel widely used by the U.S. military. The major advantage of the EERC?s renewable fuel is that the fuel can be designed to meet a wide variety of mission-specific requirements. The rocket used in the launch was originally built as a test rocket for the Discovery Channel series MythBusters. The rocket has previously been tested with standard Jet-A fuel and rocket propellant-1 (RP-1) kerosene, for which the rocket was originally designed.

INDIAN FIRMS TO ESTABLISH OILSEED PLANTATIONS IN LATIN AMERICA

       Indian edible oil producers are planning to establish oilseed plantations in Uruguay and Paraguay as farm land prices in the South American countries dropped by nearly a third following declines in the world soya oil prices. The Solvent Extractors? Association of India (SEAI) has started negotiations with ICCI Bank regarding a loan amounting to Rs1.5 billion ($30.9 million) for the project. This loan will part-finance offshore cultivation in these two countries, with the total cost of the scheme estimated at Rs2 billion.

       Ashok Sethia, president of the SEAI explained the attractiveness of land prices in Uruguay and Paraguay has given Indian vegetable oil companies the opportunity to start buying land. The plan is to start cultivation of soybeans and sunflowers in the Latin America countries on 10,000 hectares initially, which are proposed to be either bought or taken on lease, the official said. The crops grown on these farms will then be shipped to India.

EU URGED TO RELAX ZERO TOLERANCE POLICY ON GENETICALLY MODIFIED SOYA

       The Department for Environment, Food and Rural Affairs (DEFRA) has called on the EU to relax its zero tolerance policy on genetically modified (GM) soya, following warnings from farmers that they could soon find themselves unable to import non-GM animal feed. In a letter to Ministers, the National Farmers Union (NFU) in England, Scotland and Wales, the Ulster Farmers Union and the National Pig Association all warned that the UK could see feed costs rise by 30 million pounds per annum if the EU does not relax the rules. Under the current regulations, even if very low levels of non-approved GM material are detected within a shipment of animal feed arriving in the EU, the cargo will be rejected. Allan Bowie, NFU vice- president said the regulation is heavy handed and a huge financial burden on those who need to buy such feed supplies for their animals.

       In response to the letter from the farming unions, DEFRA said it was aware of the situation and has renewed its urges to the EU to re-think its zero tolerance policy. It explained that the livestock production relies on the use of imported feed, especially soya, nearly all of which comes from GM-producing countries. If GM feed are can not be used, the cost of livestock production would increase, and farmers would suffer a competitive disadvantage relative to those in other countries. If the import of both non-GM and approved-GM soya were disrupted because of the EU?s GM control regime, this could mean a significant increase in consumer prices for animal products, a serious issue to be addressed.

EU TO SUPPORT ECO-FRIENDLY PALM OIL PRODUCERS

       Julian Wilson, an EU ambassador and head of delegation visiting Indonesia and Brunei, told a meeting of Indonesian government officials, palm oil producers, and environmental activists that EU is committed to reducing its carbon emissions and combating climate change. He, however, insisted the EU is not looking to damage Indonesia?s palm oil sector. He also said that all palm oil exporters will continue to enjoy exactly the same access at the same tariff rate as before, regardless of how they produce and process the palm oil.

       Mr. Wilson explained that the recently launched EU Renewable Energy Directive has a mandatory target for the use of 10% renewable energy, including biofuels made from environmentally-friendly palm oil, in each member state. Incentives, such as investment aid, tax exemption or refunds, will be provided by the EU as an additional benefit to Indonesian palm oil companies which can slash emissions by a minimum of 35% calculated from the total emissions. Total emissions are calculated taking into account cultivation, land use, processing, palm oil distribution and carbon capture. However, Thibaut Portevin, EU natural resources and environment programme manager, said palm oil from land containing high biodiversity value would not be eligible for the incentives.

POLYUNSATURATED FATS MAY LEAD TO INFLAMMATORY BOWEL DISEASE - STUDY

       A new study finding indicates consuming too much of polyunsaturated fat could lead to inflammatory bowel disease. Scientists believe that a high intake of linoleic acid may be implicated in a third of ulcerative colitis cases. Linoleic acid is a naturally occurring essential fatty acid, present in a variety of foods, including the oils of seeds and nuts, such as sunflower, safflower, soybean, corn, and walnuts oils. The findings are based of the dietary habits of more than 200,000 people.

       The researchers explained the plausible biological mechanism on the link between linoleic acid and bowel conditions. In the body, linoleic acid is converted to arachidonic acid, a component of the cell membranes in the bowel. Arachidonic acid can then be converted into various inflammatory chemicals, high levels of which have been found in the bowel tissue of patients with ulcerative colitis. In all, 126 of the people in the study developed ulcerative colitis after an average period of four years.

       After taking into account other factors likely to influence the results, including smoking, age, total energy intake, and use of aspirin, those whose diets included the most linoleic acid were more than two times as likely to develop the condition as those whose diets contained the least. Dr. Andrew Hart, lead author of the University of East Anglia, Norwich said there are no dietary modifications of benefit in patients with ulcerative colitis, although, based on this study?s findings, a diet low in linoleic acid may merit investigation.

OMEGA-3 OILS MAY HELP REDUCE AGE-RELATED MACULAR DEGENERATION RISK - STUDY

       Age-related macular degeneration (AMD), loss of vision in the center of the visual field (macula) due to retinal damage, is one of the leading causes of legal blindness among the elderly. Approximately 10% of people from 66 to 74 years of age will develop some level of macular degeneration, making it difficult for them to read or even recognize faces. Retrospective studies have suggested that diets high in fish oil or omega-3 fatty acids may also contribute to protection against AMD. A group led by Dr. Chi-Chao Chan at the National Eye Institute in Bethesda, MD examined the direct effect of omega-3 fatty acids on a mouse model of AMD. A diet with high levels of omega-3 fatty acids resulted in slower lesion progression, with improvement in some lesions. These mice had lower levels of inflammatory molecules and higher levels of anti-inflammatory molecules, which may explain this protective effect.

       Tuo et al suggest that ?a diet enriched in EPA and DHA can ameliorate the progression of retinal lesions in their mouse model of AMD? and that ?the results in these mice are in line with the epidemiological studies of AMD risk reduction by long chain omega-3 fatty acids.? The results ?further provide the scientific basis for the application of omega-3 fatty acids and their biologically active derivatives in the prevention and treatment of AMD.? The related report by Tuo et al, ?A high omega-3 fatty acid diet reduces retinal lesions in a murine model of macular degeneration,? appears in the August 2009 issue of the American Journal of Pathology.