World-Watching: USDA GAIN Reports from 19 August 2025

[from the United States Department of Agriculture, Foreign Agricultural Service: Global Agricultural Information Network (GAIN)]

Australia: Stone Fruit Annual

Stone fruit production in Australia is forecast to decline in marketing year (MY) 2025/26, primarily due to the Bureau of Meteorology’s (BOM) projection of a wetter-than-average spring. If realized, these conditions are expected to negatively affect both yields and fruit quality. Cherry production is forecast to fall by ten percent, while peach and nectarine production is expected to drop by seven percent. Growing conditions to date have been favorable, with excellent winter chill hours supporting strong bud burst and production potential. However, the anticipated shift to wet spring weather is likely to undermine these early-season advantages. As a result, cherry exports are forecast to decrease by nine percent and peach and nectarine exports by seven percent. Imports, though starting from a low base, are projected to rise modestly in MY 2025/26.

Read the full article [archived PDF]

Chile: Stone Fruit Annual

Post projects exports of Chilean cherries to grow significantly in the coming years, driven by strong international demand, particularly from China. Post estimates cherry production in marketing year (MY) 2024/25 to reach 730,000 metric tons (MT), a 6.7 increase over MY 2024/25. Chilean cherry exports will increase by 7.2 percent reaching 670,000 MT. In MY 2024/25, Post estimates nectarine and peach production to total 205,000 MT, a 3.4 percent increase over MY 2024/25. Peach and nectarine exports will increase by 3.4 percent totaling 146,000 metric tons. This growth reflects the continued expansion of nectarine planting, which offsets the decline in fresh peach area planted.

Read the full article [archived PDF]

China: Call for Domestic Comments on 30 National Food Safety Standards

On August 1, 2025, the Chinese government announced a public comment period for 30 national food safety standards, open until September 26, 2025, via the national standards management system. The standards have not yet been notified to the WTO. This report includes an unofficial translation of the announcement and the list of standards, and stakeholders are advised to review the regulations for potential market or regulatory impacts.

Read the full article [archived PDF]

China: New CCP Regulation Expands Anti-Corruption and Frugality Measures

On May 18, 2025, the Chinese Communist Party and State Council issued a revised regulation on “Strict Economy and Opposing Waste by Party and Government Organs.” The regulation bans drinking alcohol at public receptions and events and discourages other forms of consumption that could be seen as extravagant. The FAS China offices are monitoring the potential impact on high-value U.S. agricultural products.

Read the full article [archived PDF]

China: Revised National Food Safety Standard for Paddy Rice Notified

On July 25, 2025, China notified a National Food Safety Standard for Paddy Rice to the WTO under G/TBT/N/CHN/2091. This national food safety standard includes mandatory requirements for quality, testing, inspection, packaging, and labeling of domestic and imported commercial paddy rice. This report provides an unofficial translation of the notified standard. Comments may be submitted to the China’s TBT National Notification and Enquiry Center at tbt@customs.gov.cn until August 24, 2025.

Read the full article [archived PDF]

Guatemala: Retail Foods Annual

Guatemala boasts a young population with a median age of 26 years and a growing middle class, driving increased demand for modern retail formats. However, traditional markets and informal retail remain prevalent across the country. In 2024, the United States exported $1.9 billion in agricultural and related products to Guatemala, with $886 million attributed to consumer-oriented goods. Key export categories included red meats, poultry, dairy products, fresh fruits, and processed vegetables.

Read the full article [archived PDF]

India: Cotton and Products Update

FAS Mumbai estimates MY 2025/26 India cotton production at 24.5 million 480-lb bales from 11.2 million hectares, down two percent from the previous estimate as farmers shift to higher-return crops like paddy, pulses, and cereals; kharif sowing decreased 2.4 percent from last year (as of August 1). An eight percent increase in the minimum support price (MSP) for medium- and long-staple cotton, effective October 1, is pushing fiber prices higher, encouraging mills to increase imports. Mill consumption is forecast at 25.7 million 480-lb bales, supported by steady yarn and apparel demand in key export markets and a potential export surge following ratification of the U.K.-India Comprehensive Economic and Trade Agreement (CETA).

Read the full article [archived PDF]

Japan: Stone Fruit Annual

Japan’s fresh cherry production for the 2025/26 marketing year (MY) is projected to be 12,500 tons. This forecast is a result of production losses caused by high temperatures during the pollination period in the country’s largest cherry-producing region. While this represents an 8.7 percent increase compared to the previous year’s historically poor harvest, it is expected to be a low yield year with a 25 percent decrease from the average production year. Due to the poor domestic production, demand for U.S. cherries is expected to remain strong for the 2025/26 MY, continuing the trend from the previous year. For peach production in Japan, the absolute number of fruits is anticipated to be equivalent to the previous year; however, the total production volume by weight is forecasted to decrease by approximately 10 percent because of high temperatures and low rainfall during the critical fruit growing period.

Read the full article [archived PDF]

Nicaragua: Nicaragua Peanut Report Annual

Nicaragua’s peanut farmers are expected to reduce harvested areas by at least five percent in marketing year (MY) 2025/26 in anticipation of lower prices due to increased Brazilian peanut production. FAS Managua expects farmers to be more rigorous in selecting production areas based on historical yields in MY 2025/26, excluding marginal lands with less fertile soil. Even with fluctuating market prices and adjustments to planted areas, Nicaragua is expected to remain a stable peanut producer in the region, with exports of shelled peanuts exceeding 70,000 metric tons annually.

Read the full article [archived PDF]

For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov.

World-Watching: Container Shipping Financial Insight, Nov. 2023

[from Drewry Shipping Consultants]

Driven by weak 3Q23 financial results, the Drewry Container Equity Index decreased 3.7% last month (as of 22 Nov 2023). Additionally, asset prices continue to fall due to the supply-demand imbalance.

  • Container shipping companies’ 3Q23 financial results showcased a sharp dip in profits or even losses. On a group level, eleven liners (which report quarterly results) among our portfolio of 13 companies reported an average slump of 54.6% YoY in their 3Q23 topline. Operating costs declined 18.1% YoY amid falling chartering costs and lowering bunker prices. However, the cost reduction was insufficient to offset the plunge in topline; thus, EBIT contracted 94.1% YoY on average.
  • The Drewry Container Equity Index tumbled 28.1% YTD 2023 (ending 22 November), driven by lowering freight rates (WCI: -30.7% in YTD 2023), which squeezed earnings over the quarters. On the contrary, the S&P 500 posted an 18.4% growth. The Drewry Container Equity Index declined 3.4% in the month ending 22 November 2023. Talking about equity prices individually, APMM’s stock price fell 9.0% amid EBIT loss for its Ocean segment in 3Q23, staff cuts and reduced capex guidance, highlighting APMM’s efforts toward reducing costs faced with the bleak industry outlook. Hapag-Lloyd’s stock price slumped 22.2% as its EBIT margin (3Q23: 5.1%) slid below its pre-pandemic level (3Q19: 7.8%). ZIM became the first carrier to report impairment of assets worth USD 2.0bn in 3Q23, and its stock price fell 18.1%. Meanwhile, China-exposed container companies benefitted from the positive sentiment arising from the proposed fiscal stimulus by the Chinese government, possibly boosting the out-of-China and intra-Asia trades. Asian stocks in the broader index rose 2.0% to 19.4% in the month ending 22 November 2023.
  • Mainly driven by weak earnings prospects, the Drewry Container Equity Index trades at a P/B of 0.5x, a 47.5% discount to its pre-pandemic average (2013-19). We expect freight rates to fall sharply in 2024 and increasingly incur losses. Thus, we expect the multiple to remain suppressed.
  • As the fleet of container shipping companies expands, the charter market softens. For instance, 1-year TC rates declined 14.2% and 52.5% YoY in October for vessels sized 1,110 teu and 8,500 teu. Rates declined more for larger vessels as these constitute the majority of the order book and new deliveries. The YoY decline has continued since October 2022, but rates improved slightly during April-May 2023. However, this was not due to the fundamentally strong market but MSC and CMA CGM’s aggressive chartering of vessels to expand their fleets. Now that the two companies have stopped chartering in vessels, the charter market continues to decline.
  • Driven by the softening charter market, second-hand asset prices are also weakening. In October, on a YoY basis, prices for five-year-old vessels (2,700 teu and 7,200 teu) contracted 30.6% and 31.5%, and for 10-year-old ships, prices tumbled between 36.7% and 53.2%. Contrary to the sale and purchase market, newbuild prices (1,500 teu and 14,000 teu) continue to increase and rose by an average of 2.2% YoY, led by a shortage of capacity in shipyards.
  • The charter market and the S&P market have a direct impact on container shipping companies’ earnings. Costs related to chartering-in slots or vessels from other non-operating vessel owners form a significant portion of container shipping companies’ cost structure. In the 3Q23 results, this cost was reduced,
    marginally relieving downside pressure on the operating margin of container shipping companies. In line with the declining charter market, we expect this trend to continue in 4Q23. We also expect other companies to follow ZIM in reporting impairment losses as prices for older vessels continue to fall.

Read the report [archived PDF] for additional graphs.

The Early Universe and the Future of Humanity/Xi Risks Losing the Middle Class

[from The Institute of Art and Ideas]

The Life and Philosophy of Martin Rees

An Interview with Martin Rees

Astronomer Royal and best-selling science author, Martin Rees pioneering early work led to evidence to contradict the Steady State theory of the universe and confirm the Big Bang. His influence then spread to the wider public—knighted in 1992, elevated to Baron in 2005, then giving the Reith Lectures in 2010. Most recently his attention has turned from the early universe to the future of humanity. In this interview, Lord Rees discusses the ideas and experiences which led to such an illustrious career.

Xi Risks Losing the Middle Class

The zero-COVID strategy has run its course

Kerry Brown | Professor of Chinese Studies and Director of Lau China Institute, King’s College London. He is the co-editor of the Journal of Current Chinese Affairs, and author of Xi: A Study in Power.

China is continuing with its tough zero-COVID policy. But the cracks in the economy and a discontent middle class mean that Xi’s Imperial-like governing style is under challenge, writes Kerry Brown.

China’s zero-COVID strategy operates in Chinese domestic politics a bit like Brexit does in the UK. Despite complaints from business networks and broader society about the negative impact on economic growth and citizens’ freedoms, it’s a policy commitment the government is sticking to no matter what.

Of course, no one voted for the draconian lockdowns implemented across China. And, unlike Brexit, the lockdowns are very much in line with expert advice in the country, rather than running against it. The Chinese Centre for Disease Control and Prevention (CCDC), the main governmental body advising the government over crisis response in this area, said in a weekly update last November that without comprehensive restraints on people’s movement and quarantines on anyone testing positive for the virus, the national health system would soon be overwhelmed with cases, and find itself in the same bind as those in the US or Europe did.

That the words of the experts have been taken so much in earnest is striking for a regime that previously hasn’t been shy to dismiss them. The Xi leadership may be confident in the way it speaks to the outside world, but it seems that it has the same profound wariness in the robustness of the country’s public health as everywhere else. Things have not been helped by clinical trials showing the Chinese vaccines – the only ones accepted in China – are not as effective as foreign ones where the length of protection is in question). On top of this, vaccine take-up by the elderly, the most vulnerable group, has been poor. It is easy to see therefore why the central government might be very cautious. What is harder to understand, however, is why the cautiousness has bordered on obsessiveness.

The Xi way of governing is increasingly almost imperial in style, with broad, high-level policy announcements made in Beijing, sometimes of almost Delphic succinctness.

One scenario is simply about the structures of decision-making in China. This was an issue right from the moment the variant started to appear in late 2019, and local officials in Wuhan stood accused of trying to hush the issue up, delaying reporting to the central authorities till things had already gone on too long. As a result of this, in February 2020 key officials in the city were sacked. But this is unlikely to change the fact that provincial officials are very risk averse under Xi, and that any central direction to manage the pandemic will be interpreted in the purest terms and executed to the letter.

This explains the completeness of the Xian government’s virtual incarceration of its 8 million population after just a few COVID cases at the end of 2021, the first of the more recent lockdowns. It also explains why the traditionally more free-thinking municipal authority of Shanghai and its similarly liberal approach was fiercely knocked back by Beijing last February, to make an example for any other provinces thinking of going their own way. The absolute prohibition on people moving from their homes there, in one of the most dynamic and lively cities of modern China, was perfect proof that if the government could bring about this situation there, it could do it anywhere.

This case study also reveals some important things about the Xi way of governing. It is increasingly almost imperial in style, with broad, high-level policy announcements made in Beijing, sometimes of almost Delphic succinctness, which are then handed down to various levels of government to do as they will. Exactly how and when the discussion amongst Xi and his Politburo colleagues on the best response to COVID happened is unclear. In a world where almost every political system seems to leak incessantly, the Chinese one is unique in maintaining its opacity and secretiveness – no mean achievement in the social media era.

The Communist Party is very aware of how relatively small incidents can mount up and then generate overwhelming force. It itself coined the Chinese phrase ‘a single spark can start a prairie fire.’

Rumors of clashes between Xi and his premier Li Keqiang on the effectiveness of the current response remain just that – rumors, with precious little hard evidence to back them up. Who in the current imperial system might dare to speak from the ranks and say that policy must change is unclear. Scientists should deal in hard facts – but we all know that science is susceptible to politicization. Experts in China have to offer their expertise in a highly political context. A declaration that the current approach is not fit for purpose can easily be reinterpreted as an attempt to launch an indirect attack on the core leader. With an important Congress coming up later this year, at which Xi is expected to be appointed for another five years in power, sensitivities are even more intense than normal. It is little wonder that the COVID strategy status quo settled on last year has not shifted.

Things, however, may well change, and change quickly. China is moving into tricky economic territory. The impact of the pandemic on global supply chains, along with the various stresses domestically on the housing market, and productivity, have shrunk expectations for growth. A predicted 6% in the earlier part of the year now looks overly ambitious. There is a real possibility China might experience a recession. At a moment like this, the government, which after all operates as a constant crisis and risk management entity, might do what it does best and prompt rapid, and dramatic, changes.

The handling of COVID-19 might look like further proof that Chinese politics under Xi is repressive and zero-sum. But even in an autocratic state like the current People’s Republic, the pandemic will not leave politics unchanged.

This doesn’t mean that China’s COVID-19 bind gets any easier. Like the country’s serious demographic challenges, with a rapidly aging population, the only thing the government will be picking an argument with is reality as it proceeds into the future. As with Europe and the US, being more liberal about facing COVID-19 will involve accepting some of the harsh consequences – rising fatalities, particularly for the elderly and vulnerable, and health systems put under enormous stress. In such a huge, complex country, and of enormous geopolitically importance, a misstep could easily lead to huge and unwanted consequences, generating discontent and triggering mass protests in a way reminiscent of 1989. The Communist Party is very aware of how relatively small incidents can mount up and then generate overwhelming force. It itself coined the Chinese phrase ‘a single spark can start a prairie fire.’ One such spark – the introduction of Marxism into China in the 1910s – led to its gaining of power three decades later.

The handling of COVID-19 might look like further proof that Chinese politics under Xi is repressive and zero-sum. But I suspect that even in an autocratic state like the current People’s Republic, the pandemic will not leave politics unchanged. In particular, the middle classes in cities like Shanghai have had their patience tested in recent months. This is the key group for Xi, the heart of his new innovative, more self-dependent, higher-quality service sector workers in an urbanized economy. Their support remains crucial if Xi is able to steer China towards the moment when it hopes it will become the world’s largest economy. Policies to try to placate them by addressing imbalances, critical environmental issues and improving public health are likely to only increase. Delivery however will be key.

Faced with a potentially life-threatening infectious disease, the Party can throw out injunctions and claim it has been the victim of bad luck. But an ailing economy and no clear signs of the government knowing how to manage this will prove a toxic mixture for it. Xi and his third term in office will be all about delivery. The question is whether, even with the formidable suite of powers he has, he can do this. Governing China has always been the ultimate political challenge. COVID-19 has made that even harder.

China Monitor: How Immigration Is Shaping Chinese Society

(from MERICS China Monitor)

To the surprise of many, China has emerged as a destination country for immigration: As China’s population ages and its workforce shrinks, China needs more immigrants.

The background of immigrants to China is becoming more diverse. While the number of high-earning expatriates from developed countries has peaked, China is now also attracting more students than ever from all over the world, including many from lesser developed countries. Low-skilled labor and migration for marriage are also on the rise. The main areas that attract foreigners are the large urban centers along the coast (Guangzhou, Shanghai, Beijing) and borderland regions in the South, Northeast and Northwest, but smaller numbers are also making their way to smaller cities across China.

In the new MERICS China MonitorHow immigration is shaping Chinese society” [archived PDF], MERICS Director Frank N. Pieke and colleagues from other European universities and institutions discuss the most salient issues confronting the Chinese government and foreign residents themselves.

According to their analysis, for many foreigners China has become considerably less accommodating over the last ten years, particularly with regard to border control, public security, visa categories, and work and residence permits. China’s immigration policy is still driven by narrow concerns of regulation, institutionalization and control. It remains predicated on attracting high-quality professionals, researchers, entrepreneurs and investors. Long-term challenges like the emerging demographic transition, remain to be addressed.

The authors detect a worrying trend towards intolerance to ethnic and racial difference, fed by increasing nationalism and ethnic chauvinism. They argue that the Chinese government, civil society, foreign diplomatic missions, employers of foreigners and international organizations present in China should take a clear stance against racism and discrimination. China’s immigration policy needs to include the integration of foreigners into society and provide clear and predictable paths to acquiring permanent residence.

[Archived PDF]