FDA MAY CONSIDER EXTENSIONS FOR TRANS FAT LABELING

WEEKLY COTTONSEED CRUSH

WHAT'S NEW @ COTTONSEED.COM

REPLACEMENT COW PRICES CONTINUE TO IMPROVE 

ARGENTINE OILSEEDS REPORT

FEED INDUSTRY RECEIVING HIGHER MARKS ON BSE REPORTS

MOVING?

FDA MAY CONSIDER EXTENSIONS FOR TRANS FAT LABELING - The Food and Drug Administration (FDA)  issued a guidance document December 5 regarding how and when to request an extension of the January 1, 2006 compliance date for trans fat labeling. The guidance document represents the FDA’s current thinking on the topic and does not create or confer any rights for any person and does not operate to bind FDA or the public.  A copy of the document,  Guidance for Industry and FDA: Requesting an Extension to Use Existing Label Stock after the Trans Fat Labeling Effective Date on January 1, 2006, is available in the Member News section of NCPA’s web site or by contacting the Association office. The document provides factors which FDA may consider when it reviews petitions for extensions, which it reportedly will do on a case-by-case basis.  The FDA received a request for a stay of administrative action related to the trans fat labeling requirements from the International Dairy Foods Association and the International Ice Cream Association.  The associations claimed that a number of their members had a much larger number of label changes  which would result in costs that were significantly greater than what FDA provided in cost estimates for small businesses in its economic analysis for the trans fat final rule. In addition, the groups stated that the businesses had to create an unofficial database on the predicted value of trans fat content in milk and have been limited in their capacity to obtain information on trans fat content from ingredient suppliers, who were themselves reformulating the ingredients supplied to reduce or eliminate trans fat. (Source: US FDA/CFSAN)

WEEKLY COTTONSEED CRUSH - Weekly cottonseed crushings reached 72,000 tons for the week ending December 4, the highest level so far this season (which began August 1).  Year—to-date cottonseed crushings have reached 1.05 million tons, compared to 867,000 tons crushed for the same number of weekly reporting periods a year ago and 801,000 tons crushed during a similar period two years ago.  This week’s total of over 72,000 tons is well above the five year average for this period during the season and is the first time in over five years that the weekly total has exceeded 72,000 tons.

WHAT'S NEW @ COTTONSEED.COM - CCI/NCPA’s consultant in Mexico, Ricardo Silva, predicts increased cottonseed meal demand in Mexico will come from the dairy industry in Coahuila, feedlots in Nuevo Leon and Tamaulipas, and cow-calf and dairy operators in Chihuahua  and Veracruz.  More details of his analysis for meal demand in Mexico is available in the Mexico Consultant Reports section of the web site…..A  copy of the document,  Guidance for Industry and FDA: Requesting an Extension to Use Existing Label Stock after the Trans Fat Labeling Effective Date on January 1, 2006, is available in the Member News section of NCPA’s web site, along with other recent news items and press releases…..Complete October—September marketing year export data for the 2004-05 season are now available in the Cottonseed Statistics section.  Cottonseed for planting, not for planting, oil, meal and linters data is broken down by month and country of destination from US Census data.

REPLACEMENT COW PRICES CONTINUE TO IMPROVE - A good barometer of the dairy industry has always been prices of replacement cows.  If that remains true, the outlook for the dairy industry appears to have been steadily improving over the past two years, with replacement cow prices moving 44% higher from April 2003’s level of $1,300 per head to October 2005’s high mark of $1,870 per head.  Demand for new cows to “replace” older animals has pushed prices to their highest price per head since USDA’s National Ag Statistics Service began tracking that number.  It’s also a sign that milk cow numbers have been increasing over the 2004 and 2005 seasons.

SUPPLY & DEMAND FORECAST FOR COTTON & COTTONSEED PRODUCTS

ARGENTINE OILSEEDS REPORT - Argentina’s Secretariat of Agriculture, Livestock, Fish, and Food (SAGPyA) released their monthly official statistics for November, which included the following highlights: Total 2005/06 planted area for soybeans is estimated at 15.1 million hectares, up 4.9% from last year.  The increase is attributed to increases in planted area in the major agricultural areas (Pampa humeda) and minor decreases in areas outside of this zone due to the relative soybean cost/benefit ratios in said areas and switches to soybeans on lands originally destined to other crops.  As of November 16, 2005, only 40 percent of total soy area was planted…..Sunflower-seed planted area is forecast to increase 22 percent as compared to last year.  While climate will still play a very important role in the planting of the crop, 2.4 Mhas of sunflowerseed is forecast for 2005/06.  Area increases in Buenos Aires, Cordoba, Entre Rios, La Pampa, and Santa Fe will offset a reduction in area in northeast Argentina (Chaco, Formosa) due to drought.  As of November 16, 2005, 72 percent of sunflowerseed planted area was complete…..Due to drought, peanut planted area is estimated at 166,000 has, 21 percent below last year…...According to official SAGPyA data, soybean crushing for April – September 2005 is reported at 15.88 MMT, up 16 percent from the same period in 2004 (13.65 MMT was crushed from April 2004 – Sept 2004).  (Source: USDA FAS GAIN report #AR5035)

FEED INDUSTRY RECEIVING HIGHER MARKS ON BSE REPORTS - FDA recently provided an update of the Agency’s enforcement activities regarding ruminant feed regulations.  FDA’s Center for Veterinary Medicine has assembled data from inspections that have been conducted AND whose final inspection report has been recorded in the FDA’s inspection database as of November 26, 2005.  The majority of these inspections (around 68%) were conducted by State officials under contract to FDA, with the remainder conducted by FDA officials. These inspection conclusions are reported as Official Action Indicated (OAI), Voluntary Action Indicated (VAI), or No Action Indicated (NAI). An OAI inspection classification occurs when significant objectionable conditions or practices were found and regulatory sanctions are warranted in order to address the establishment's lack of compliance with the regulation.  Of the 16,476 firms who have been inspected by FDA, 4,553 handle materials prohibited from use in ruminant feed, and of the 4,553 firms, only 9 firms, or 0.2%, had violations reported as OAI.  June 2005’s reporting data showed a similar low level, with 10 firms, or 0.2%, classified as OAI.  March 2005 data classified 13 firms, or 0.3% as OAI, and a year ago—November 2004, 16 firms, or 0.5%, were classified as OAI.  (Source: FDA / CVM / BSE Updates, 12/5/2005)

MOVING? - Please send all change of address information to: National Cottonseed Products Association, 104 Timber Creek Drive, Suite 200, Cordova, TN  38018, or email to info@cottonseed.com.

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December 8, 2005