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March 19, 2010

 

 

·        Fertilizer giant seeks North American expansion

·        Uncovering the many secrets of Fusarium fungi

·        Cold storage facilities eligible for USDA loans

·        WTO needs a political miracle for Doha deal

·        Internet a valuable tool for this Kenyan farmer

 

 

Fertilizer giant seeks North American expansion

 

(Reuters via Yahoo! News) TORONTO/CHICAGO – Fertilizer maker Agrium Inc may have failed to clinch a deal to acquire U.S. rival CF Industries , but it continues to look for acquisition opportunities to expand its North American retail business, Chief Executive Michael Wilson said.

 

"We have a mapping of North America and we just look at where we are not and we look at going there," Wilson said at the Reuters Food and Agriculture Summit this week in Chicago.

 

"We have a little over 800 farm centers. We picked up about 60 last year and I am hoping that we will pick up another 50 to 60 this year. And you will see us continue to do this over the next four, five, six years."

 

Wilson, who has steered Agrium for more than six years, has transformed the company from a producer of mainly nitrogen-based fertilizers into the largest North American agricultural products retailer.

 

Agrium's retail network in North America is roughly three times larger than the second-largest player in the region and its retail unit alone boasted sales of more than $6 billion in 2009.

 

However, it still commands only a 15 percent market share in the region and the company plans to double this market share over time, said Wilson.

 

JOINT VENTURES

 

Wilson said that joint ventures will be Agrium's main vehicle of growth in overseas markets.

 

"When you are going into Asia, or some parts of Europe, certainly in South America too, it is good to have a local partner," he said.

 

Agrium already has a series of equity stakes in foreign companies including its stake in Mopco in Egypt, Common Market Fertilizers in Europe and Hanfeng Evergreen in China.

 

"We are looking for partnerships on our polymer coated products," said Wilson.

 

Agrium's polymer coated product is part of a series of controlled-release fertilizers that are used on golf courses and in other niche markets.

 

Agrium already has a partnership with Hanfeng to produce and market sulfur coated urea.

 

CF BATTLE

 

Calgary-based Agrium canceled its bid for CF Industries earlier this month after CF set a $4.7 billion deal to buy Terra Industries . Agrium had said it would not buy CF if CF went ahead and acquired Terra.

 

Wilson said withdrawing the CF bid was not a hard decision, as CF did not seem inclined to negotiate and the company's expectations were set too high.

 

"It wasn't hard (to walk away) because it wasn't the right decision. We could have bumped our bid a little bit, to be quite honest, but to the degree it would have taken to get them to come to the table ... we didn't think it was worth it to our shareholders."

 

"What happens is you get caught up in the deal and you end up overpaying. And it's so easy to get into that track. You know, 'What's another half a billion dollars?' And so you have to stay very disciplined when it comes to these deals," he said.

 

CF's assets would have helped Agrium increase its business in the nitrogen side of the fertilizer industry in North America.

 

The other three major players in the North American nitrogen arena are Terra, Potash Corp and privately held Koch Industries.

 

Earlier this week at the Reuters Summit, CF chief Steve Wilson defended his purchase of Terra as good for CF shareholders even after he more than doubled the offer to seal the deal.

 

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Uncovering the many secrets of Fusarium fungi

 

(PhysOrg.com via Broad Institute  of MIT and Harvard) -- The Fusarium fungi have an expansive reach. Some plague tomatoes, while others attack bananas; some invade cereal crops and can poison bread with toxins. Species of Fusarium have found ways to penetrate the defenses of potatoes, peppers, eggplants, and other plants, causing wilting, rot, and blight. And now, the ubiquitous fungi are beginning to crop up in hospitals, attacking patients whose immune systems have been compromised.

 

Fusarium's impact on agriculture and food safety and its growing role in human health have sparked the interest of researchers like the Broad Institute's Li-Jun Ma, who wants to understand how species of Fusarium can invade different hosts. Together with colleagues from all over the world, Ma, who works in the Broad's Fungal Genome Initiative, set out to discover what makes certain species so dangerous to their hosts while close cousins are benign. As they tested, analyzed, and validated their results, an explanation for Fusarium's toxicity began to emerge: certain Fusarium species have unique genetic material that may give them the ability to invade a new host. Furthermore, the pathogens can swap chromosomes with one another, passing the power to invade on to fellow Fusarium pathogens. Their results were published in this week's issue of Nature.

 

To understand where Fusarium's virulence comes from, Ma and her colleagues built on previous sequencing work at the Broad. With the help of the Broad's Sequencing Platform, they sequenced and compared the genomes of three species: F. graminearum (Fg), which invades cereals; F.verticilliodes (Fv), which is limited to maize; and F.oxysporum f.sp. lycopersici (Fol),a tomato pathogen that can also infect mice with compromised immune systems.

 

What they found was striking. The tomato pathogen's genome was not only larger in size than the other Fusarium genomes, but also contained extra chromosomes. All of the related species contained a "core" genome that looked similar. But the extra chromosomes in the tomato pathogen's genome bore little resemblance to the chromosomes in the core. Full of transposable elements, or repeated regions of DNA, the extra four chromosomes appeared to be "lineage-specific," or unique to this sub-species. The researchers developed an explanation for this unusual observation: the tomato pathogen acquired the chromosomes through a process called horizontal gene transfer.

 

Most of the time, when scientists talk about the transfer of genetic material from one organism to another, they are referring to the genetic material that a parent passes down to a child when the child is conceived. This is called vertical gene transfer. However, some organisms, such as bacteria, are able to give pieces of genetic material to one another in the way that humans might share pirated music or movies - once one organism acquires the illicit material, it can share copies of the information with others.

 

Horizontal gene transfer usually occurs in bacteria, but can also happen in certain animals as well as in fungi. However, organisms usually do not exchange large portions of the genome or DNA that confers the ability to invade a host - this is the first time that such a dramatic transfer has been observed.

 

"We found an incredible amount of genetic material that doesn't look like it is inherited through traditional genetic approaches," Ma said. "The discovery has a profound impact on our understanding of eukaryotic genome evolution and pathogenicity development as this is the first time that horizontal transfer of genetic material at such a large scale has been reported."

 

The project represents a collaboration between the Broad and the international Fusarium research community.

 

"The results from such collaboration have solved a long lasting mystery among the Fusarium research community," said co-corresponding author H. Corby, Kistler, a research geneticist at USDA ARS Cereal Disease Laboratory.

To help solve this puzzle of how some species of Fusarium develop the ability to cause disease, the researchers wanted to find out how the pathogen can get passed a plant's defenses. Plants have a layer of woody tissue, or xylem, that helps to keep invaders out.

 

"If you have a pathogen and a host, they are in a battle," Ma said. "The pathogen wants to eat the host, and the host doesn't want to be eaten so they are constantly interacting." The results from this study suggested that the extra chromosomes carry the genetic instructions for executing this invasion, including detecting a plant, secreting enzymes to break down the xylem, and then penetrating and invading the host.

 

To test this hypothesis, the researchers set out to observe if the tomato pathogen could pass its genetic material onto others. They incubated a strain of pathogen that can cause tomato blight with a benign strain, and found that the formerly benign strain had gained the ability to infect tomatoes.

 

Scientists can spill open a nucleus's contents to view an organism's chromosomes. An image of the resulting spread of chromosomes showed that the newly pathogenic fungus had picked up chromosome 14 - a chromosome from the pathogenic strain that contains some known invasive instructions, including

those for making secreted proteins during a plant infection. The dangerous strain had given the benign strain the molecular weaponry necessary to attack the plant.

 

"As first observers of a great scientific breakthrough, we were thrilled to document the migration of these chromosomes," said Martijn Rep, a co-corresponding author and researcher at the University of Amsterdam. "The combination of the results from (the comparative genomics analysis and the experimental studies) was natural and created a beautiful view of the genetics and evolutionary processes underlying fungal pathogenicity."

 

Understanding how Fusarium species gain the ability to plague a host could help gricultural researchers develop strategies to control the pathogen and protect crops.

 

"Imagine Fusarium in the field - it can acquire this set of armory through these unique and pathogenicity-related chromosomes so it can obviously regenerate (the ability to invade a host)," Ma said. "This promotes rethinking the control strategy."

 

Ma and her colleagues plan to sequence and compare the genomes of ten additional strains of Fusarium from all over the world to determine if each species contains unique chromosomes that allow it to attack its host.

 

"Evolutionarily, our finding is extraordinary," Ma said. "One core part of the genome is conserved across the species and this lineage-specific chromosome is unique for each (strain). There are so many questions behind that. We are absolutely stunned and excited."

 

More information: Ma et al., Comparative genomics reveals mobile pathogenicity chromosomes in Fusarium. Nature.

doi:10.1038/nature08850

 

Provided by Broad Institute of MIT and Harvard

 

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Cold storage facilities eligible for USDA loans

 

(Wire Services) – Agriculture Secretary Tom Vilsack today said that the Farm Storage Facility Loan program has been amended to allow producers to build cold storage facilities to store their fresh fruits and vegetables.

 

This program is part of USDA's 'Know Your Farmer, Know Your Food' initiative and uses discretionary authority provided by the 2008 Farm Bill authorizing the eligibility of cold storage facilities for fruits and vegetables.

 

"Expand the Farm Storage Facility Loan program will provide our nation's fruit and vegetable producers with new storage and marketing opportunities," Vilsack said. "On-farm storage may cost a lot to build, but it can help farmers to maximize profits. USDA's program will help these producers to finance the purchase, construction, or refurbishment of these important farm storage facilities."

 

USDA's 'Know Your Farmer, Know Your Food' initiative emphasizes the need for a fundamental and critical reconnection between producers and consumers. The effort builds on the 2008 Farm Bill, which provides for increases and flexibility for USDA programs in an effort to revitalize rural economies through the promotion local food systems. Aimed at strengthening the connection between farmers and consumers, the initiative also supports local and regional food systems, to increase economic opportunities for local farmers and expand access to healthy food for Americans.

 

To be eligible, cold storage facilities must have a useful life of 15 years and include:

 

    * New structures suitable for a cold storage facility;

    * New walk-in prefabricated permanently installed coolers suitable for storing fresh fruits and vegetables;

    * New permanently affixed cooling, circulating and monitoring equipment;

    * Electrical equipment integral to the proper operation of a cold storage facility; and must be

    * An addition or modification to an existing storage facility.

 

USDA will not make cold storage facility loans for portable structures, portable handling and cooling equipment, used or pre-owned structures or cooling equipment or structures not suitable for a fresh fruits and vegetables' cold storage facility.

 

The maximum loan amount for a Farm Storage Facility loan is $500,000 per loan. One partial disbursement of up to half the anticipated total cost is available when that portion of the structure has been completed. The final disbursement will be made when the entire structure has been completed and inspected by a USDA representative.

 

All Farm Storage Facility Loans require a down payment of at least 15 percent. Applications must be approved before construction can begin. Loan terms of 7, 10 or 12 years are available depending on the amount of the loan.

 

Loans applications should be submitted to the administrative FSA county office that maintains the records of the farm or farms to which the application applies. If the commodities are produced on land that does not have farm records established, the application must be submitted to the FSA county office that services the county where the facility will be located.

 

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WTO needs a political miracle for Doha deal

 

(Reuters via Yahoo! News) GENEVA  – Members of the World Trade Organization are likely to conclude next week that it will take a political miracle to agree a new trade deal this year, consigning yet another Doha round deadline to the dustbin.

 

The U.S. and European Union trade chiefs have already acknowledged that it may not be possible to complete the Doha round of negotiations by 2010, as demanded by leaders at the last G20 summit and other meetings.

 

Next week's "stock-taking," mandated by ministers at a WTO conference last December, has been scaled back.

 

The possibility that ministers would make the assessment has been dropped, leaving the announcement to senior officials, and the exercise has been brought forward to coincide with a week of meetings already planned for officials to negotiate on Doha.

 

"I have very low expectations," said the WTO ambassador of an emerging economy. "It's clear that 2010 is not on the cards."

 

Many negotiators say the talks, launched in late 2001 to open up global commerce and help poor countries to prosper through more trade, are going backwards despite some progress on technical issues.

 

New Zealand's chief WTO negotiator, Crawford Falconer, who chaired Doha's key agriculture talks until last year, told a conference in Canberra this month that 2010 remained the target.

 

"But let's not kid ourselves. The reality is that the way we are going in Geneva, right now we won't make it," he said.

 

POLITICAL BIND

 

The deal, which WTO Director-General Pascal Lamy says is needed to boost the world economy and provide a bulwark against protectionism, has been stuck in a political bind since ministers failed to clinch a breakthrough in July 2008.

 

Most other members say the United States is not really committed to the talks, as symbolised by President Barack Obama's failure to persuade Congress to approve a U.S. ambassador to the WTO in Geneva.

 

Under affable Trade Representative Ron Kirk, the United States says it is trying to advance the talks but China, India, Brazil and other emerging economies are unwilling to offer enough to sell a deal to voters.

 

Obama has had bigger priorities than trade in his first year, such as healthcare and climate change, and few votes are to be had promoting trade deals now.

 

But in Washington there is no interest in a deal seen as imposing burdens on the United States with little in exchange. Unless American businesses are banging on congressmen's doors demanding their support, it's unlikely to happen.

 

Failure to agree a new trade deal in the next few months raises the question of whether it matters.

 

World trade is rebounding strongly after contracting 12 percent in 2009, the biggest fall since World War Two, as demand slumped in the aftermath of the financial crisis.

 

Deutsche Bank says trade growth this year could be in double digits, amid reports of a huge pick-up at the start of the year.

 

The WTO says that a feared wave of 1930s-style protectionism failed to materialize in the wake of the crisis, as the global trading system proved its mettle.

 

There are plenty of trade tensions, with a row about China's exchange rate the latest dispute between Washington and Beijing, but they are mostly being dealt with according to WTO rules.

 

The formal outcome of the stocktaking is unclear. It may set out plans for further negotiations but an acknowledgement that Doha will not be completed this year could lead many to see the WTO as primarily a forum for resolving disputes rather than negotiating new agreements.

 

It could also revive calls for a "Doha lite" -- a quick, modest deal on which everyone can agree, such as measures to help developing countries to trade more -- followed by revised negotiations with an updated agenda, such as a greater focus on trade and climate change.

 

Many WTO members are already putting more energy into regional and bilateral trade deals than a global Doha pact, with the United States joining Asian and Pacific countries in talks on a Transpacific Partnership, and the EU and Latin American group Mercosur reviving stalled talks.

 

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Internet a valuable tool for this Kenyan farmer

 

(BBC News) NAIROBI – Kenyan farmer Zack Matere pulls his mobile out of his pocket holds it up and takes a couple of photos.

 

"It seems they have come back and are digging here again."

 

He is referring to a group of people who have encroached on a water catchment area and are endangering the whole community's water supply.

 

"When they came before, I took photos of what they were doing, posted them on my Facebook page and was able to get assistance."

 

"I got in touch with Forest Action Network and they came back to me quickly saying they would help me protect the catchment area."

 

Online help

 

This is just one of the ways in which he uses the internet.

 

Zack is growing tree seedlings on his farm in Seregeya near Eldoret, Kenya, and has managed to triple the price he gets for them thanks to the internet.

 

Not long ago it also helped him discover a cure for his dying potato crop.

 

"I cycled 10km to the local cyber cafe, Googled "potato disease" and discovered that ants were eating the potato stems.

 

"I checked again online and found that one of the solutions was to sprinkle wood ash on the crop."

 

A few mouse clicks later he was able to find a local buyer for his rescued crop.

 

High costs

 

"I think I am the only farmer in the area who uses the internet."

 

Zack says he spends about 50 Kenyan shillings (66 US cents) each day accessing the internet via his mobile phone.

 

This amount is unaffordable for many small-scale farmers, but Mr Matere says he intends to be the link between the internet and the community.

 

The plan is to set up notice boards in prominent positions such as trading centres and even move them to churches on Sundays.

 

On these boards, called "Seregeya Leo" or Seregeya Today, he plans to post information he gleans from the net on issues such agriculture, health or education which can benefit the community.

 

Cultural barriers

 

It is not just the cost of accessing the internet that he thinks is restricting usage.

 

There is also a cultural barrier as Mr Matere is not convinced that all people would be content to browse via the phone in the isolation of their homes.

 

"The internet is quite an individual pursuit. But a noticeboard is more of a group thing.

 

"So if I post an item on a noticeboard on potato disease, for example, the community can read it, talk together and come to a decision."

 

With internet-enabled phones not available to all, we drive to the nearest internet cafe to see how accessible the net is in rural Kenya.

 

At Soy trading centre there is a shop with four PCs hooked up to the net via a single modem.

 

The manager says about 15 people use the service each day but adds that sometimes the internet is down.

 

Zack starts clicking away and quickly comes up with the kind of information which he says the community needs to know about.

 

"Potato farmers dig in for law to block cartels," is the heading of one article.

 

"There is a cartel that is buying potatoes from the farmers in 130kg bags instead of 110kg sacks and they are paying the same price," notes Mr Matere.

 

He says he would translate this into Swahili and post it on the noticeboards, to warn people of the scam.

 

Local content

 

On the veranda of the internet cafe, tailor John Moss is busy pedalling his sewing machine.

 

Despite being so close to the computers he has never used the internet. Noting that the whole world now seems to be accessing the internet, he says he wouldn't mind trying.

 

"I would use it to get in contact with friends," says Mr Moss. "It can also help me find out what other tailors are doing outside Kenya and learn from them."

 

Back on the farm, Zack has an idea that might help the 10 to 15 people who have been encroaching on the water catchment area.

 

"There is a lot of money in tree seedlings or bee hives. So if we can get these young people to use the land in an environmentally [friendly] way, they can get even more money than through farming."

 

He says he could also help them find a market.

 

"I have 400 Facebook friends and I think some of them can buy the honey."

 

"I am now seeing the practicality of the internet here in rural Kenya. The problem is I am the only one.

 

"That is why the noticeboard is important. All we need is a bit of relevant information to help us.

 

"Once it is made simpler and is more in the local language with more local content, people are going to access the internet here," he predicts.

 

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End Transmission