U.S.-China Agriculture & Food Partnership · China has the world’s largest, and still growing,...

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

COOPERATION CATALOGUE JENN LEE

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U.S. - China Agriculture and Food Partnership Work Plan Summary Contents U.S.-China Agriculture and Food Partnership Work Plan .................................................................. 2

1. Grain Processing and Handling Working Group ....................................................................................... 2

1.1 Pilot Project of Post Harvest Loss Prevention ......................................................................................... 2

1.2 Promotion of Corn Replacement Feed Technology ................................................................................ 2

2. Animal and Animal Products Working Group ........................................................................................... 3

2.1 Assessment and Development of a Total Production and Distribution Quality Assurance System ....... 3

2.2 Regulatory Development for Food and Feed Safety ............................................................................... 4

2.3 Food Safety and Risk Management Handling ......................................................................................... 5

2.4 Government Food Safety Crisis Management &Communications Training Program ............................. 6

2.5 Facilitating the Adoption of Modern Nutrient Management Practices in China .................................... 7

2.6 Meat Inspection and Regulatory Oversight ............................................................................................ 8

2.7 The US‐China Commission on Food and Drug Safety Cooperation ...................................................... 9

3. Seed Market and Precision Agriculture Working Group ........................................................................... 9

3.1 ASTA—CNSA Memorandum of Understanding Framework for Seed Market Project ............................ 9

3.2 Enforcing Intellectual Property Rights ................................................................................................... 10

3.3 Technology Transfer Educational Program ............................................................................................ 11

3.4 Seed Quality and Accreditation Systems ............................................................................................... 12

4. Investments & Commercial Transactions Working Group ...................................................................... 13

4.1 Liaison/Information Platform to Promote Bilateral Investments/Transactions .................................... 13

4.2 Financing Resources and Needs to Promote Bilateral Investments/Transactions ................................ 13

4.3 Educational Programs on the Compliance Dimensions of Investments/Transactions .......................... 14

4.4 State and Local Jurisdictional Dimensions of Investments/Transactions .............................................. 15

Index ............................................................................................................................................... 16

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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 1979. 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 Project Name Post Harvest Loss Prevention (PHL) – a Pilot Project

AFP Leading Organization

Archer Daniels Midland (ADM)

U.S Company Participation

Background of the Proposed Project

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.

Proposed Duration/Date

March 2015-Feb 2016

Development Priorities to Host Country

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.

Potential Impact of Proposed Project

To showcase solutions in loss prevention practice

Chinese Partners (Industry and/or Government)

Research Institute of Rural Economy and Ministry of Agriculture

Endorsements Both MOA and SAG put PHL prevention as a high priority

1.2 Promotion of Corn Replacement Feed Technology Project Name Promotion of Corn Replacement Feed Technology


Archer Daniels Midland (ADM)


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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

Endorsements 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 Development of aTotal Production and Distribution Quality Assurance System Project Name Assessment and Development of a Total Production and

Distribution Quality Assurance System.


Elanco

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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.

Endorsements

2.2 Regulatory Development for Food and Feed Safety Project Name Regulatory Development for Food and Feed Safety


Food and Agriculture Export Alliance (FAEA)




1.5 Years


CIQA, AQSIQ, CFDA and CIQ have all taken part and assisted with funding, FAEA food and feed workshops held over the past three years.

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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 inter-agency 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

Endorsements CFDA

2.3 Food Safety and Risk Management Handling Project Name Food Safety and Risk Management Handling




Smithfield


1 year


* 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

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during the CMA China International Meat Industry Exhibition in Qingdao, September 2015.


MOA, AQSIQ, China Meat Association, China Chamber of Commerce of Foodstuffs and Native Produce

Endorsements

2.4 Government Food Safety Crisis Management &Communications Training Program Project Name 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.

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MOA, CFDA, AQSIQ, Min. of Health &Family Planning

Endorsements

2.5 Facilitating the Adoption of Modern Nutrient Management Practices in China Project Name 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.


3-5 years


National/Regional Investment Plan

The costs of the program will run approximately $150,000/year

Potential Impact of To facilitate the use of livestock manure as a substitute for

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Proposed Project 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 Development and Reform Commission, and Provincial Governments

Endorsements

2.6Meat Inspection and Regulatory Oversight Project Name 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.





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, 2015.

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.


Endorsements

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2.7The US‐China Commission on Food and Drug Safety Cooperation Project Name 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.





- 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 Project Name ASTA—CNSA Memorandum of Understanding Framework for Seed

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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

Endorsements 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 Project Name Intellectual Property Rights: Use of Molecular Enforcement and

PVP Process




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

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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

Endorsements FAS has already met with the Seed Management Bureau and they showed strong support for this project.

3.3 Technology Transfer Educational Program Project Name Technology Transfer Educational Program




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.

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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.



Endorsements Seed Management Bureau has shown strong support for projects covering technology transfer in the past.

3.4 Seed Quality and Accreditation Systems Project Name Seed Quality and Accreditation Systems




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.



Endorsements

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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 Project Name Bilateral Investments & Transactions Platform Liaison/Information

Platform to Promote Bilateral Investments/ Transactions


McLarty Associates, McDermott Will & Emery

U.S. Company Participation


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.


2015


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

Endorsements

4.2 Financing Resources and Needs to Promote Bilateral Investments/Transactions Project Name Financing resources and needs to promote bilateral investments/

transactions

AFP Leading McLarty Associates, McDermott Will & Emery, AGCO

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Organization


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.


2015-2016


Both countries place a high priority on investments and commercial transactions as sources of job creation and revenue growth.

Action Plan 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

Endorsements

4.3 Educational Programs on the Compliance Dimensions of Investments/Transactions Project Name Educational programs on the compliance dimensions of

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.


2015-2016


Both countries place high priority on investments in compliance with all relevant laws and regulations.

Action Plan Develop seminar, webinar, and/or compliance guides on the regulatory requirements governing transactions.

Potential Impact of Improved understanding of all relevant compliance requirements

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Proposed Project should help expand all forms of bilateral transactions.


MOFCOM, SAIC, SAFE, CIPA, CFOAM, AQSIQ U.S.: DOJ, SEC, Commerce

Endorsements

4.4 State and Local Jurisdictional Dimensions of Investments/Transactions Project Name State and local jurisdictional dimensions of investments/

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.


2015-2016


Action Plan


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

Endorsements

4.5 Cotton

Project Name 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 2015-2016.

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2015-2016


Action Plan


Increases in production and finished goods in both countries.


China Cotton Association

Endorsements

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 Development

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

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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

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U.S.-China Agriculture &

Food Partnership

PHONE: +8610 8519 0800

FAX: +8610 8519 0899

EMAIL: [email protected]

U.S.-China Agriculture & Food Partnership · China has the world’s largest, and still growing,...

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