U.S.-China Agriculture & Food Partnership

Transcription

1 U.S.-China Agriculture & Food Partnership INDUSTRY WORKING GROUP WORK PLANS U.S.-CHINA AGRICULTURE & FOOD PARTNERSHIP Tower AB, 6th Floor No. 10 Jintongxi Rd. Beijing China

2 U.S. - China Agriculture and Food Partnership Work Plan Summary Contents U.S.-China Agriculture and Food Partnership Work Plan Grain Processing and Handling Working Group Pilot Project of Post Harvest Loss Prevention Promotion of Corn Replacement Feed Technology Animal and Animal Products Working Group Assessment and of a Total Production and Distribution Quality Assurance System Regulatory for Food and Feed Safety Food Safety and Risk Management Handling Government Food Safety Crisis Management &Communications Training Program Facilitating the Adoption of Modern Nutrient Management Practices in China Meat Inspection and Regulatory Oversight The US China Commission on Food and Drug Safety Cooperation Seed Market and Precision Agriculture Working Group ASTA CNSA Memorandum of Understanding Framework for Seed Market Project Enforcing Intellectual Property Rights Technology Transfer Educational Program Seed Quality and Accreditation Systems Investments & Commercial Transactions Working Group Liaison/Information Platform to Promote Bilateral Investments/Transactions Financing Resources and Needs to Promote Bilateral Investments/Transactions Educational Programs on the Compliance Dimensions of Investments/Transactions State and Local Jurisdictional Dimensions of Investments/Transactions Index

3 U.S.-China Agriculture and Food Partnership Work Plan The U.S. and China have a long history of cooperation and technical assistance programs dating back the first Science and Technology Agreement in This tradition of official bilateral cooperation continues to this day in the form of the Joint Committee on Cooperation in Agriculture (JCCA). Established in 2003, the JCCA meets at least once every two years alternately in the United States and China. The U.S.- China Agriculture & Food Partnership (AFP) continues this tradition of cooperation. Established in 2013, AFP is designed to support the bilateral agricultural relationship by resolving problems and creating opportunities through increased coordination, more effective issue advocacy and the development of a more positive relationship between the U.S. and Chinese food and agriculture industries. 1. Grain Processing and Handling Working Group 1.1 Pilot Project of Post Harvest Loss Prevention Post Harvest Loss Prevention (PHL) a Pilot Project Archer Daniels Midland (ADM) ADM Institute for the Prevention of Post Harvest Loss partnered with Research Institute of Rural Economy to conduct a survey of post harvest loss on wheat in Henan Province in 2014.Building on the 2014 survey data, this pilot project is a highly valuable means to test and promote the technical, social and policy solutions needed to address the post harvest loss issue. March 2015-Feb 2016 Post harvest loss prevention is one the priorities identified by Chinese government in its 12 Five Year plan on food security and is highlighted personally by top leaders like President Xi. To showcase solutions in loss prevention practice Research Institute of Rural Economy and Ministry of Agriculture Both MOA and SAG put PHL prevention as a high priority 1.2 Promotion of Corn Replacement Feed Technology Archer Daniels Midland (ADM) Promotion of Corn Replacement Feed Technology 2

4 Since 2012, ADM has been working together with China Agricultural University on a research project focused on replacing a portion of the grain in the dairy diet with treated corn Stover for both small and large scale feeding. The positive results from this Corn Replacement Feed Technology research provides Chinese dairy farmers with an integrated solution of machinery, chemical, and nutritional components. March 2015-Feb 2016 To fully use every part of the harvest including crop residue is a high priority in the 12th Five Year Plan for Chinese agriculture To promote a new technology or solution through demo farms or training programs China Agricultural University MOA officials visited the trial and showed strong interest. 2. Animal and Animal Products Working Group The Animal and Animal Products Working Group formed within the AFP will establish best practices throughout the livestock, meat and poultry production, distribution and marketing chain to foster the adoption of proper production methods and ensure the safe distribution and use of quality food products. A complete program would, for example, include genetics (live animals and artificial insemination), feeds and feed ingredients, feeding regimes and optimization, water treatment and waste management, animal husbandry and handling, livestock/poultry housing, record keeping, market research and marketing as well aslong-term sustainability and strategic planning. The initial phase of the Food Chain Quality Assurance work plan includes the following projects and stakeholders: 2.1 Assessment and of atotal Production and Distribution Quality Assurance System Assessment and of a Total Production and Distribution Quality Assurance System. Elanco 3

5 Potential Impact of Project Establish best practices program that provides for total food chain quality assurance to ensure proper use of safe products. Concept includes: 1) Start with a "large farm" and a "small farm" project (work with existing farms / systems) 2) 2) Begin with inputs at the farm which includes feeding systems (including minerals and supplements), animal health products and livestock management. 3) Work through the whole food chain from slaughter through processing to retail / quick service to end consumer 4) Establish a "traceability" system for the process 5) Capture best global practices that can be adapted to China system (for example - "safe feed - safe food" in feed mill, pork quality assurance at the farm, HACCP in the plant) 6) 1 Year ~ Multiple years. Safety of food and consumer confidence in the safety of food: - Develop China system that provides for safe food - Build consumer confidence in industry and government's ability to provide safe food. Major - Quality assurance will provide for use of safe products and consumer confidence in the food supply. To be confirmed: -MOA (Ministry of Agriculture) - National Animal Husbandry Service and China Feed Industry Association - Relevant industries to be identified as program is built. 2.2 Regulatory for Food and Feed Safety 1.5 Years Regulatory for Food and Feed Safety Food and Agriculture Export Alliance (FAEA) CIQA, AQSIQ, CFDA and CIQ have all taken part and assisted with funding, FAEA food and feed workshops held over the past three years. 4

6 This proposal entails a two-pronged approach. The first is parallel engagement with targeted agencies: CFDA, NHFPC, MOA, AQSIQ and CNCA. These hands-on, targeted, information exchanges are designed to be conducted in small groups with each agency and are less formal than a workshop or seminar style event. Once these individual agency activities are completed, the second stage will be to bring the agencies together to further enhance interagency cooperation and coordination in a food safety infrastructure. The final activity is a simulation exercise product recall (to be held in Beijing) including all the appropriate agencies to further advance information sharing and understanding of challenges and programs of their sister organizations. MOA, CFDA, AQSIQ, NHFPC, CNCA, CIQA, CIQ CFDA 2.3 Food Safety and Risk Management Handling Smithfield 1 year Food Safety and Risk Management Handling * PRC Govt. participation in numerous USDA food safety related training programs; * enactment of Food Safety Law. An industry meat processing specialist will discuss best practices to promote safety and risk management in meat handling. This presentation will touch on the best practices U.S. meat processors are applying in Chinese operations, the U.S. and other international markets, as well as recommendations to AQSIQ, MOA and other relevant agencies on how to promote these best practices through China s new Food Safety Law under development as well as its existing testing and verification practices. The specialist will work with the China Meat Association (CMA) to organize a day-long symposium in 2015 with CMA as its partner to provide a forum for detailed discussion and exchange of information on this topic. This seminarwill be held 5

7 during the CMA China International Meat Industry Exhibition in Qingdao, September MOA, AQSIQ, China Meat Association, China Chamber of Commerce of Foodstuffs and Native Produce 2.4 Government Food Safety Crisis Management &Communications Training Program Government Food Safety Crisis Management & Public Communications Training Program U.S. Meat Export Federation 1 Year and more This project involves working cooperatively with Chinese government agencies on risk communications strategies related to food safety crises. These agencies include, but are not limited to, the Ministry of Agriculture (MOA), China Food and Drug Administration (CFDA), Administration of Quality, Supervision, Inspection and Quarantine (AQSIQ) and the Ministry of Health and Family Planning. Relevant Chinese government agencies build stronger public relations and communications capabilities, allowing for a stronger defense of science based policies. Government entities build a better understanding of the structure and responsibilities of U.S. government food and feed safety agencies and differences between federal standards, industry standards and voluntary standards. Encourage and support Chinese government participation in numerous USDA food safety related training programs. Take into consideration the implementation of China s new Food Safety Law.Undertake a simulation exercise recall of a hypothetical food safety crisis to demonstrate the need for information sharing and cooperation among the various agencies responsible for food safety. Following the simulation recall, discuss corrective action and enforcement options to enhance food safety. 6

8 MOA, CFDA, AQSIQ, Min. of Health &Family Planning 2.5 Facilitating the Adoption of Modern Nutrient Management Practices in China Facilitating the Adoption of Modern Nutrient Management Practices in China U.S. Grain Council China has the world s largest, and still growing, swine and poultry industry, and a rapidly growing dairy industry, all of which are increasingly consolidating into larger operations. This is generating large amounts of nutrient-rich manure concentrated in large animal operations. Treating this manure is prohibitively expensive, but using it as a substitute for chemical fertilizer in fields not only saves the costs of treatment but also can provide significant benefits to overall soil quality and, done properly, can result in zero nutrient emissions into surrounding freshwater systems. In China, however, most manure generated by large operations is not used as fertilizer but instead is treated or released without treatment. To address the issues slowing the development of modern manure management practices in China, the project involves a multipronged and multi-staged program that addresses the institutions that can either enable or restrict appropriate manure nutrient management, the attitudes about manure use as fertilizer, and the policies that affect livestock operator s incentives for using manure in a way that befits crops while protecting natural resources, particularly freshwater resources. Over time, we expect these activities will build a foundation for developing a more comprehensive and modern nutrient management planning program throughout China. National/Regional Investment Plan 3-5 years The costs of the program will run approximately $150,000/year To facilitate the use of livestock manure as a substitute for 7

9 chemical fertilizer in China will allow for livestock operations to continue to grow and consolidate while improving both economic efficiency and environmental sustainability. Ministry of Agriculture, Ministry of Environmental Protection, National and Reform Commission, and Provincial Governments 2.6Meat Inspection and Regulatory Oversight Meat Inspection and Regulatory Oversight NAMI In cooperation with the China Meat Association and meat and poultry processors in China to address federal and provincial meat inspection policies and procedures to strengthen regulatory oversight in producing safe meat and poultry products. National/Regional Investment Plan U.S. industry representatives will introduce in 2015 a meat inspection training program in cooperation with the China Meat Association and the various Chinese government ministries and departments with responsibility for meat inspection. A full meat inspection orientation seminar will be planned for the China Meat Association s China International Meat Industry Exposition to be held in Qingdao in September, The project will also be coordinated and promoted with The US China Commission on Food and Drug Safety Cooperation (CFDSC). The CFDSC recognizes the importance of food and drug safety in furthering bilateral cooperation in thedevelopment of food/drug and related sectors for both the United States and China. 8

10 2.7The US China Commission on Food and Drug Safety Cooperation The US China Commission on Food and Drug Safety Cooperation NAMI The importance of food and drug safety is paramount in bilateral cooperation in the development of food/drug and related sectors for both the United States and China in the areas of food/drug safety policies, legal and regulatory frameworks, food/drug safety standards and R&D,food/drug safety training for both the general public and media, and in student exchanges. National/Regional Investment Plan - To facilitate policy dialogues among the US and Chinese government and industry stakeholderson food/drug safety with high-level bilateral forums and seminars; - To build food/drug safety awareness and understanding through scientific and educational exchanges and citizen/student participation in food/drug safety dialogues between the United States and China; - To foster long-term cooperation on law and regulations, food/drug safety training, R&D andinnovative new technologies; - To address and coordinate major food/drug safety issues between United States and China thatwill have broad and significant impact to a healthy US-China bilateral relationship; - To provide advocacy support for American and Chinese stakeholders to ensure open andtransparent dialogues in major bilateral issues of food/drug safety concerns. 3. Seed Market and Precision Agriculture Working Group 3.1 ASTA CNSA Memorandum of Understanding Framework for Seed Market Project ASTA CNSA Memorandum of Understanding Framework for Seed 9

11 Market Project American Seed Trade Association The MOU supports joint or cooperative programs and projects of mutual interests, including in the fields of Intellectual Property Rights (IPR), quality seed, science based phytosanitary measures, seed movement and innovation in the seed industry. 3 years To raise awareness on key issues vital to a successful seed industry including, intellectual property protection (mainly plant variety protection), the importance of high quality seed, and the benefits of international germplasm movement. 1. Providing quality seed to farmers: Educational effort to promote the use of quality seed and enforcement against counterfeit seed. a. Focus on one province b. MOA Seed Management Bureau as a partner c. Target audience: local seed companies and farmer leaders 2. Steering Committee under the MOU: Provide advice and identify key topics for cooperative activities under the ASTA-CNSA MOU. a. Responsive to information needs of MOA b. ASTA & CNSA member companies CNSA, MOA The Seed Management Bureau within MOA has shown strong interest in past activities under the MOU and continues to work with ASTA to plan future activities. 3.2 Enforcing Intellectual Property Rights Intellectual Property Rights: Use of Molecular Enforcement and PVP Process American Seed Trade Association U.S. seed companies, representatives from the U.S. PVP office There is growing interest around the world in using molecular markers to distinguish different plants from each other. Around the world breeders, companies and, policy makers are using these techniques more and more. The Seed Management Bureau has 10

12 asked that the U.S. government share with them how molecular markers can be used for infringement cases and to show distinctness between two plant varieties during the Plant Variety Protection application process. 1 year A series of three day workshops covering the technical aspects of using molecular markers for infringement cases and to show distinctness between two plant varieties during the PVP application process. The use of molecular markers for both enforcement and PVP application review have been identified has key topics by MOA and U.S. industry. These techniques will make the PVP process fairer for all companies and enable them to enforce their intellectual property rights after they have been granted if their intellectual property has been infringed. MOA Seed Management Bureau FAS has already met with the Seed Management Bureau and they showed strong support for this project. 3.3 Technology Transfer Educational Program Technology Transfer Educational Program American Seed Trade Association Participants in this workshop include ARS officials, representatives from land grant universities, and US seed companies that depend on contracts. Technology transfer between public and private organizations as well as from business to business is an important topic within China. At the request of the Seed Management Bureau and the China National Seed Association it is regularly on the agenda for our joint activities. The Seed Management Bureau has been particularly interested over the past year as they are revising their seed law. One of the changes will prevent public institutions from selling the seeds they research. Therefore, the public institutions are trying to learn how to transfer that information to the private sector. This topic was a priority issue for the Cochran Delegation that visited the U.S. last summer. 1 year A two day workshop to discuss how public research institutions and private companies use technology transfer in their business models. Workshop should highlight how licensing enables public and private companies to gain a return on investment and share their technology with a broader group of people. 11

13 The changes for public research institutions in the draft seed law are supported by the U.S. industry, but in order for them to be implemented the Chinese will need to understand alternative ways to commercialize their research. In the business to business model, a better understanding of how small companies benefit from contracts will strengthen the contract environment in China. MOA Seed Management Bureau Seed Management Bureau has shown strong support for projects covering technology transfer in the past. 3.4 Seed Quality and Accreditation Systems Seed Quality and Accreditation Systems American Seed Trade Association Participants include representatives from USDA Agriculture Marketing Service, USDA Animal Plant Health System, US crop improvement associations, and the National Seed Health System at Iowa State University as well as MOA officials and provincial officials. As the Chinese government modernizes the Chinese seed industry they are looking to other countries to learn more about the institutions, laws, and programs they have in place to promote high quality seed. In the past, ASTA has arranged visits for the Chinese officials to learn about our system. 1 year Two to three three-day workshops to address the use of accreditation systems for different aspects of seed quality testing, varietal identity testing and seed health. The U.S. National Seed Health System will be a focus highlighting how it supports the U.S. seed industry through accrediting private and public entities to perform certain activities needed to support the international movement of seed, through more consistent inspection and testing processes. The workshops will also focus on the role of national governments, state/provincial government, private service providers and public institutions. Having private accreditation services and other seed industry support programs will increase the quality of seed and ease the restrictions to seed movement within China. MOA Seed Management Bureau 12

14 4. Investments & Commercial Transactions Working Group The Investment and Commercial Transactions Working Group aims to identify and foster bilateral investments and other commercial opportunities in the food and agriculture sector as well as act as a resource to support those opportunities. It does not envision advocating policy objectives on redressing policy constraints. 4.1 Liaison/Information Platform to Promote Bilateral Investments/Transactions Bilateral Investments & Transactions Platform Liaison/Information U.S. Company Platform to Promote Bilateral Investments/ Transactions McLarty Associates, McDermott Will & Emery A neutral liaison/information platform to help connect U.S. and Chinese entities interested in exploring investments and other commercial transactions, and provide general information to help expand commercial opportunities Both countries have a strong interest in expanding in-bound investments. Action Plan 1. Inform relevant government agencies, industry trade associations, loan and financing interests, and venture capital entities of the platform. 2. Develop guidelines for the flow of information. 3. Collect and disseminate information to help promote commercial opportunities. 4. Develop a web-based technology to expand the reach of the liaison platform. Improved information flow to support bilateral investments/ transactions should help expand all types of bilateral commercial opportunities. MOFCOM, CCPIT U.S.: Dept of Commerce Select USA 4.2 Financing Resources and Needs to Promote Bilateral Investments/Transactions Financing resources and needs to promote bilateral investments/ transactions McLarty Associates, McDermott Will & Emery, AGCO 13

15 U.S. Company Action Plan AFP Members Adequate financing vehicles, both public and private, are integral to expanding bilateral investments/transactions. By identifying and encouraging financing and/or loan guarantee programs, potential investors, buyers, sellers, producers, and other commercial entities may be better encouraged to engage in bilateral transactions Both countries place a high priority on investments and commercial transactions as sources of job creation and revenue growth. 1. Identify public finance/loan guarantee programs. 2. Identify pathways to private finance/loan guarantee firms. 3. Hold two seminars or webinars, one for in-bound China investments/transactions, the second for the U.S. equivalent. Financing and/or loan guarantee availability should help boost economic activity in the food and agribusiness sector. MOFCOM, NDRC, MOA, China banking sector U.S.: Ex-Im Bank, private finance sector 4.3 Educational Programs on the Compliance Dimensions of Investments/Transactions Educational programs on the compliance dimensions of U.S. Company Action Plan investments/transactions McDermott Will & Emery, McLarty Associates Investments/transactions in the U.S. and China are subject to a host of regulatory requirements. Understanding the regulatory landscape in both countries should help facilitate investments/transactions Both countries place high priority on investments in compliance with all relevant laws and regulations. Develop seminar, webinar, and/or compliance guides on the regulatory requirements governing transactions. Improved understanding of all relevant compliance requirements 14

16 should help expand all forms of bilateral transactions. MOFCOM, SAIC, SAFE, CIPA, CFOAM, AQSIQ U.S.: DOJ, SEC, Commerce 4.4 State and Local Jurisdictional Dimensions of Investments/Transactions State and local jurisdictional dimensions of investments/ U.S. Company Action Plan transactions Investments and Commercial Transactions Working Group Local jurisdictions in both the U.S. and China are interested in expanding investments for their respective region. Many have in place incentives and other region-specific programs and considerations that potential investors should understand Stage seminar and/or support delegation visits by local jurisdictions to help promote and facilitate bilateral investments/transactions. Provincial and municipal governments. U.S.: National Governors Association (NGA), National Association of State Departments of Agriculture 4.5 Cotton U.S. Company Cotton Cotton Council International U.S. and Chinese cotton industry associations have developed deep and continuing relationship that has been the basis for improving the regulatory environment, expanding commerce insuring growth for the industries in both countries. Building upon that foundation the industry plans for further cooperation and expanded trade relationships in

17 Action Plan Increases in production and finished goods in both countries. China Cotton Association Investment and Commercial Bankers Advising Members on Current and Future Opportunities in the Food & Agriculture Sector Lessons Learned from Past Investments and Transactions in the Food and Agriculture Sector Government Financing Programs What s Available and How to Access It Investment Opportunities in Rural Infrastructure Regulatory and Compliance Considerations for Prospective Investments and Transactions Investments in Food Safety and Food Security Regimes Identifying, Supporting, and Assembling Trade Delegations in the Food & Agriculture Sector Creating a Web-Based Portal to Unite Buyers and Sellers/ Investors and Investment Opportunities State and Local Considerations for Prospective Investments and Transactions Providing Investment-related support (items above) in conjunction with Trade Shows, Conventions and Exhibitions in the Food & Agriculture Sector Index a. AQSIQ: General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China) b. ARS: Agricultural Research Service, US Department of Agriculture c. CCCNFA: China Chamber of Commerce of Foodstuffs and Native Produce d. CIPA: Investment Promotion Agency, Ministry of Commerce of the People s Republic of China e. CFDA: China Food and Drugs Administration f. CFOAM: China Federation of Organic Agriculture Movements g. CIQA: China Entry-Exit Inspection & Quarantine Association h. CIQ: China Inspection & Quarantine Services i. CNCA: Certification & Accreditation Administration of the People s Republic of China j. CNSA: China National Seed Associations 16

18 k. CMA: China Meat Association l. DOJ: US Department of Justice m. FAS: Foreign Agricultural Service, US Department of Agriculture n. MOA: Ministry of Agriculture of the People's Republic of China o. NHFPC: National Health and Family Planning Commission of the People's Republic of China p. SAG: State Administration of Grain of the People's Republic of China q. SAIC: State Administration for Industry & Commerce of the People s Republic of China r. SAFE: State Administration of Foreign Exchange 17

19 U.S.-China Agriculture & Food Partnership PHONE: FAX: