Thai Rice Exporters Set for Bumper Year

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1 roots. Various means of rescuing the tree were tried, but nothing worked until the herbal mixture was applied. Mr. Li said, Like an elderly patient, the tree is too old to withstand strong chemicals because it would result in fast cell division, which accelerates the consumption of the tree s own nutrients. The herbal mixture would help increase the absorbed nutrients by improving the plant s metabolism and photosynthesis. Statistics showed that there are about trees over the age of hundred scattered in cities throughout China. Ms. Zhang Pingrang, an academic who has lived on the campus for more than 20 years, said, If the tree dies, the history of Haidian district would be incomplete. The district, crowded with universities built over the past 50 years, is nurturing China s Silicon Valley. Among the increasing number of modern buildings, only the old tree stands as proof of the area s long history. Beijing has more old trees than any other cities in China, with trees over 100 years. With rapid development of China s urban areas, the environment where old trees grow in is deteriorating. Mr. Zhou Lijun, deputy director of China s National Greening Commission (NGC) in charge of preservation of ancient trees, said that saving these old trees is beneficial to China s history and culture as well as the ecological environment. Many provinces and regions have implemented regulations on tree protection, and identity plates are being attached to the trees. Meanwhile, information on the trees is being archived in a database. NGC statistics showed that there are about trees over the age of hundred scattered in cities throughout China. General Information and Statistics Thai Rice Exporters Set for Bumper Year Thai rice exporters will enjoy a bonanza this year due to reduced competition from major rivals China, Pakistan and Vietnam, according to the latest estimates by the Food and Agriculture Organization (FAO). The FAO estimates that Thailand shipped 7.2 million tons of rice last year. The figure has been revised upward from the 6.8 million tons predicted last October. The FAO s Rice Market Monitor reported that exporters are expected to ship more rice this year than they did last year. The increased volume is a result of higher demand in Indonesia and China and from declining shipments by other major exporting countries. Thai farmers and exporters can expect to enjoy both higher demand and higher prices. The FAO said that export prices are expected to recover this year because of a reduction in inventories in the main importing countries. Moreover, Thailand s move to shore up prices through rice-exporting cooperation has had positive responses from China, India, Burma, Pakistan and Vietnam. Thailand s major rivals are expected to reduce exports due to declining domestic supplies and external factors. In particular, a sharp contraction in paddy production and the war in Afghanistan have kept Pakistan from boosting exports. The country s exports are expected to remain unchanged at 2 million tons. Overall, Thai farmers and exporters can expect to enjoy both higher demand and higher prices. China will become one of the world s main buyers of rice following its accession to the World Trade Organization (WTO). The country s rice imports are projected to increase six-fold to 1.1 million tons this year due to a fall in domestic production over the past two years. Under WTO regulations, China is obliged to open its rice market to up to 4 million tons, subject to a one-percent import tariff. Iran is expected to import 1.1 million tons of rice this year to solve a supply shortage caused by drought. And Indonesia is likely to increase imports to 2 million tons this year, against last year s 1.4 million tons. APBN Vol. 6 No

2 Thai Rubber Glove Industry Calls for Chemical Tax Cut Thai rubber glove exporters have recently urged the government to cut tariffs on chemicals used in the glove industry, arguing that soaring costs mean they are losing out to rival producers in Malaysia. Mr. Prachai Kongwaree, president of the Thai Rubber Glove Manufacturers Association, said, Tariffs should be waived to enable us to compete with Malaysia where there are no tariffs on imported chemicals and raw materials. Almost all production of rubber gloves in Thailand is for export. Tariffs imposed on imported chemicals, which make up at least 80 percent of the industry s production costs, vary from five percent to 20 percent. These place Thai manufacturers at a disadvantage as they compete with Malaysian firms in the same markets. Thailand is the second-largest exporter of rubber gloves after Malaysia, supplying 35 percent of the global market. Malaysia supplies 60 percent and Indonesia five percent. In the home market, Thai-owned manufacturers said that they are also at a cost disadvantage to foreign rubber-glove makers that have shifted their production bases to Thailand to benefit from the Board of Investment s promotional privileges. Thai exporters account for about 40 percent of the country s shipments of rubber gloves, with 60 percent exported by foreign manufacturers and joint ventures. Mr. Prachai said that Thai exporters are going from bad to worse. More Thai manufacturers are expected to shut down if the government takes no action to help them. Thailand s exports of rubber gloves are projected to increase in value by five percent this year from 14 billion baht (US$314 million) in 2000, with the US buying between 70 percent and 80 percent. Looking at the future of the industry, Thai Farmers Research Center is upbeat, noting that continuing worries about anthrax attacks has increased demand for rubber gloves by postal services. This would contribute to a projected ten percent lift in sales of rubber gloves worldwide in The Thai Farmers Research Center notes that continuing worries about anthrax attacks has increased demand for rubber gloves by postal services. Rubber gloves are also surgical prophylactics and have a wide range of uses in industries such as food production, cleaning services and gardening businesses. Growing demand would help revive the rubber industry, which has been reeling from an oversupply of the raw commodity and falling prices. The price of latex has stabilized at about 17 baht (US$0.38) a kilogram in the world market, up from 10 baht (US$0.24) in Korea Charts New Course for Biotechnology Korea, catching up with the trend in research and development in genetic engineering, medical innovation and cloning technologies, has recently launched a string of projects in order to secure a foundation in bioengineering and related technologies. Declaring the year 2002 as the Year of Biotechnology, the Korean Ministry of Science and Technology will inject billion won (US$259 million) into genome research, protein science and bioinformation. In 2010, the government will expand the budget to 2.4 trillion won (US$1.8 billion). The Korean Ministry of Science and Technology will inject billion won (US$259 million) into genome research, protein science and bio-information. Mr. Kim Young-hwan, minister for science and technology, said, The Korean government has set a goal to achieve Bio-Korea and implemented a variety of policies and initiatives for that purpose. Mr. Kim said that Korea has a great pool of talented people in the science and technology field, a factor that should encourage others to promote related industries. 20 APBN Vol. 6 No

3 T he Nobel Prize, as founded in Alfred Nobel s will, was the first truly international prize. There is no other award with the same global scope and mission. The Nobel Prizes in Physics, Chemistry, Physiology or Medicine, Literature, Peace, and the Bank of Sweden Prize in Economic Sciences (from 1969) have not only captured the most significant contributions to the progress of mankind, they also constitute distinct markers of the major trends in their respective areas. The main reason for the prestige of the Prize today is, however, the lasting importance of the names on the list of Laureates and their contributions to human development. In celebration of the centennial of the Nobel Prize in 2001, this book offers a clear perspective on the development of human civilization over the past hundred years. The book serves to present the major trends and developments and also provide information about the life and philosophy of Alfred Nobel, the history of the Nobel Foundation, and the procedure for nominating and selecting Nobel Laureates. Contents Introduction (M Sohlman) Life and Philosophy of Alfred Nobel (T Frängsmyr) The Nobel Foundation: A Century of Growth and Change (B Lemmel) Nomination and Selection of the Nobel Laureates (Compiled by B Lemmel) The Nobel Prize in Physics (E B Karlsson) The Nobel Prize in Chemistry: The Development of Modern Chemistry (B G Malmström & B Andersson) The Nobel Prize in Physiology or Medicine (J Lindsten & N Ringertz The Nobel Prize in Literature (K Espmark) The Nobel Peace Prize (G Lundestad) The Sveriges Riksbank (Bank of Sweden) Prize in Economic Sciences in Memory of Alfred Nobel (A Lindbeck) 248 pp Aug US$ X(pbk) US$26 18

4 The ministry recently revised the long-term project aimed at promoting biotechnology in Korea in partnership with other government agencies. As the country has so far relied on clinical research in medical science, the ministry is working on a policy that would promote basic medical science research. The ministry has also set up a biotechnology committee, with Mr. Kim and 19 other experts in the public and private sectors participating to promote bioengineering industries. In October, the National Genome Information Center was established to streamline and strengthen Korea s human genome research while setting the general tone for the development of biotechnology. The center is working towards consolidating scattered scientific resources spread throughout the country s numerous laboratories, companies and governmental organizations. (Details see APBN Vol. 5 No. 23) The ministry is also focusing on science education programs to lay the foundation for the country s science and technology fields, including biotechnology. One of the policies is to offer advanced education to children who are talented in math and science. Two special schools are planned for such prodigies on a trial basis, starting from March The envisioned schools would be different from current ones in their curriculums and operations. More than half of the faculty will be masters or doctorate degree holders in science, as well as in teaching. Some of them will be college professors. Graduates will be either admitted to the Korea Advanced Institute of Science and Technology or sent to foreign colleges. The ministry is also committed to advancing cutting-edge technology fields such as nanotechnology (NT). In May, it drew up a ten-year master plan to nurture NT. The government will pour 1.37 trillion won (US$1.03 billion) of investments for the introduction of NT infrastructure within five years. The government plans to obtain at least ten cutting-edge nanotechnologies and produce NT experts by A committee would be formed to come up with proposals for the development of NT. The plan also includes new curriculum devoted to NT at major universities, a long-term plan to strengthen manpower in the fast-advancing field. Medicine Valley to be Built in Jiangsu China s largest medicine valley, or life science park, will be built in eastern China s Jiangsu province at a cost of RMB20 billion (US$2.42 billion). The valley is located in Wuxi, a city near Shanghai. It will cover an area of nine square kilometers. Famous universities and institutes such as Qinghua University and Beijing University, the China Academy of Sciences and the China Academy of Medical Science will work together in the research of biopharmaceuticals, modernized traditional Chinese medicine and botanic medicine. The park will comprise five zones including a biotech industrial zone, a biotech incubator zone and an international medical care zone. The park, designed by renowned Western institutes, will be completed within the next decade. Some hectares of the area will be bases for herbal medicine. China s Animal Husbandry Sector Keen on Upgrading China s animal husbandry firms are trying to improve the quality of their products, which is a major hurdle to the country s competitiveness. Industry insiders are worried that quality problems may erode the profits of the husbandry industry as import tariffs are slashed and foreign products enter the domestic market after China s entry into the World Trade Organization (WTO). Mr. Ou Zhongsheng, chief executive officer of China Animal Husbandry Group, said that the problem is not with tariffs, but with the safety of products. China s husbandry industry has to ensure the quality and safety of products. The group, producer of one-third of China s beef and mutton and also veterinary vaccines, plans to build a nationwide sales network to guarantee the quality of its meat, medicine, animal feed and additives. Construction of the network would be funded by proceeds from a corporate debt issue amounting to RMB300 million (US$36 million) in APBN Vol. 6 No

5 Currently, China has animal feed factories, 2000 veterinary medicine factories and 30 vaccine makers. Many fall short of WTO standards. Mr. Qin Zhenkui, deputy food security director of the State General Administration for Quality Supervision and Inspection and Quarantine said that China s animal husbandry industry is facing tremendous challenges from foreign competitors. Mr. Qin called for a stronger role by veterinarians, tougher supervision of veterinary medicine and animal products and the establishment of a national disease prevention system. Mr. Jia Youling, director of Bureau of Veterinaries under the Ministry of Agriculture, said that although China s husbandry firms have the advantage of lower costs, they need to improve their product quality. Mr. Ou is confident that his company s vaccines, far less expensive than those on the international market, will sell well in Southeast Asia by The group, China s biggest seller of vaccines, multi-vitamin feed and thoroughbred horses, has outlined an international marketing division to boost exports. It sold 3000 tons of beef overseas in 2000, 15 percent of the country s total beef exports. Florida Fruit Producers Aiming at Chinese Market While Chinese fruit growers are trying to expand their exports with the country s entry into the World Trade Organization (WTO), foreign fruit producers are setting their sights on the Chinese market. Recently, the Florida Department of Citrus, the organization in charge of promoting the state s oranges, tangerines and pomelos, has launched a massive campaign to expand its market share in Beijing. Mr. Louis Wu, the department s China representative, said, We have a better chance of expanding our sales in China with the lower tariffs following its entry into the WTO. Currently, the import tariff rate for citrus produce is 40 percent, but it will be lowered to 15 percent in three years. Although imported citrus fruits will still be more expensive than domestic ones, Mr. Wu believed that the taste and quality of Florida produce will appeal to many Chinese consumers. China is the world s largest fruit producer with the largest output of apples, pears, bananas and tangerines. To avoid competition, Mr. Wu s department is mainly pushing for the introduction of grapefruit, a kind of pomelo rarely seen in China, to fill the market vacuum. Florida produces more than 50 percent of the global output of grapefruit. Mr. Wu said that although China produces tangerines and oranges, the Chinese people still want to try something different. Grapefruit has a high juice content, and is sweeter than China s pomelo. Currently, Florida s exports of the fruit to China which began in 1999 are only valued at US$2 million, but Mr. Wu predicted that total exports in the coming five years would reach US$50 million. To avoid competition, the Florida Department is mainly pushing for the introduction of grapefruit, a kind of pomelo rarely seen in China. Like other imported fruits, grapefruits are mainly sold in large supermarkets in major Chinese cities. Most people buy them as gifts. Mr. Wu said that with China s fast economic development, more Chinese consumers would buy the fruit for personal consumption. At the launching ceremony of the promotional campaign, the citrus department featured several Chinese dishes using grapefruit as a flavoring. Mr. Wu pointed out that Chinese are always eager to accept foreign produce, as long as the price is not too high. But his expectations may be too high. Last year, during a national fruit festival in Beijing, many foreign fruits were sold at a much lower price, some even cheaper than domestic fruits, but their sales were still lower than that of domestically grown products. Ms. Huang Junxia, an industry expert, said that the main reason for unsatisfactory sales of foreign fruits is their limited sales channels. Most foreign fruits are sold in big supermarkets while the majority of Chinese are used to buying fruits from street stalls. Ms. Huang pointed out that the strategy of relying mainly on supermarkets gives people the impression that the fruit is not for daily consumption. Being aware of the problem, Mr. Wu s department is working to expand its fruit sales to more Chinese APBN Vol. 6 No

6 cities. The citrus department has also launched a series of advertising and educational campaigns to help Chinese consumers and wholesalers understand its products. The citrus department has also launched a series of advertising and educational campaigns to help Chinese consumers and wholesalers understand its products. Ms. Ma Yinping, a senior researcher at Shanghai University of Finance, said that the major threat of foreign fruits to domestic growers is not the products, but the sound system of production, storage and promotion. Through the joint efforts of growers, scientists, advertisers and publicity professionals, foreign fruit could find a niche in the Chinese market. This is what we need to learn first if Chinese fruits are to hold their market share, Ms. Ma concluded. Japan Mad Cow Disease Debacle Continues Japanese agriculture minister, Mr. Tsutomu Takebe said that two top farm officials who guided Japan s highly criticized response to an outbreak of mad cow disease are stepping down in January. Mr. Hideaki Kumazawa, vice minister of agriculture, forestry and fisheries, and Mr. Takemi Nagamura, head of the ministry s Livestock Industry Department, will resign in early January. The fatal brain-wasting disease was first discovered in Japan last September. Two more cases have since been confirmed. Beef sales fell sharply because of public concerns that the meat was not safe to eat. Officials had been criticized for not taking preventive measures earlier when Europe encountered a similar outbreak. The Livestock Industry Department was criticized for failing to carry out the incineration of a sick cow that was later processed into animal feed. Japan and China Settle Farm Produce Dispute Japan and China have recently clinched a deal in their eight-month trade row over farm produce, with Japan rejecting the adoption of full sanctions and China lifting its punitive tariffs. The agreement is reached in Beijing after talks between China s minister of foreign trade and economic cooperation Mr. Shi Guangsheng and Japan s economy, trade and industry minister Mr. Takeo Hiranuma and agriculture, forestry and fisheries minister Mr. Tsutomu Takebe. Mr. Shi said that a common understanding is achieved with both sides paying great attention to the long-term development of bilateral trade and economic co-operation. It also showed that trade disputes can be properly settled if both sides carry out frank and serious talks on the basis of equality and mutual benefits. The view is echoed by Mr. Takeo Hiranuma, who said that the Japanese government has decided not to adopt full sanctions because it realizes that Sino-Japanese trade relations are far too important to risk the possible damage caused by the friction. Japan and China have clinched a deal in their eightmonth trade row over farm produce, with Japan rejecting the adoption of full sanctions and China lifting its punitive tariffs. Sino-Japanese trade reached US$79.67 billion in the first 11 months of 2001 and is expected to rise to US$85 billion for 2001 and to about US$100 billion for Japanese prime minister Mr. Junichiro Koizumi welcomed the agreement, saying that it will help improve bilateral ties and economic development. Mr. Koizumi said that although the results of the talks do not satisfy all of Japan s opinions, it paves the way for the promotion of orderly trade in the Chinese farm products that were at the center of the dispute. Japan s decision in April 2001 to impose the sanctions, which it said were aimed at protecting Japanese farmers, prompted retaliatory tariff hikes from China on consumer products worth hundreds of millions of US dollars annually. 24 APBN Vol. 6 No