Food and Agriculture Update: APEC tackling new food security challenges.

Food and Agriculture Update | September 26, 2014
Authors: Sunita Kapoor, Fon Komkai, Kim Yaegar and Mohammad Omar Qureshi
 
LOOKING AHEAD
 
 

The US-ASEAN Business Council will be organizing the next Food & Agriculture Mini Mission to Vietnam (late November/early December 2014) and to Thailand (second half of February 2015). Please provide your feedback/inputs on these upcoming missions to the Council’s Food & Agriculture Manager, Sunita Kapoor at skapoor@usasean.org

 
THE COUNCIL'S TAKE
 
 
  • On September 19, APEC announced that it was set to take on new food security challenges in the region.  Agricultural and food ministers from APEC economies came together to unveil the new framework on food security which, plans to ensure safe, accessible and sustainable food supplies through innovation-based cooperation. The ministers put emphasis on strengthening food safety management while also committing to enhance surveillance and early warning information sharing.  Also, they seek to strengthen training on trans-border animal and plant diseases as well as informational exchanges and cooperation on safety on food import and exports. Further, the Ministers called for the liberalization of agricultural trade and investment, requesting that APEC economies move away from protectionist practices in the agricultural sector.  On the issue of climate change, the ministers agreed to pursue research on better eco-friendly approaches to agricultural production.
     
  • The UN Food and Agriculture Organization (FAO) warned of a recently emerging strain of avian influenza virus that was detected in Southeast Asian poultry.  Although posing a limited threat to humans, there has been one person said to have contracted the flu from close contact with poultry.  The person has since died from the virus.  The virus is highly virulent in chickens and geese leaving the possibility of this virus spreading across Southeast Asia.  The effects of this virus on the poultry industry in Southeast Asia could be massive.  The FAO and World Health Organization have stressed that countries in Southeast Asia ramp up efforts to detect and report instances of influenza viruses as well as closely monitor any human contraction of influenza.
 
IN THIS UPDATE
 
 

Regional Affairs
New bird flu strain causing concern for poultry producers in SE Asia

APEC
APEC tackling new food security challenges.

ASEAN
ASEAN to have food safety centre in KL
ASEAN Economic Community – The Way Forward for Food

Brunei
Brunei, China Inked MoU in Halal Food Industry

Indonesia
Indonesia-Malaysia tax war may spur palm oil demand
Sugar Exec: Leave Trade Ministry Out of Food Import Decisions
Wasp ‘SWAT team’ to the rescue of Indonesian cassava crop
Greenpeace Skeptical of Firm’s Deforestation Claim
RI, Taiwan to extend agricultural partnership
Jokowi Sticks to an Old Formula With New Cabinet

Malaysia
Nation is best example in agrotourism: APO chief
China to import Malaysian frozen durians worth RM2 million a month
Brahim’s: Yes we’re in talks on Burger King
In-flight caterer Brahim's looks for M&A as core client MAS seeks turnaround

Myanmar
Myanmar exporting food despite facing shortages

Philippines
NFA chief quits, cites health reasons
Philippines expects to miss Q4 rice output forecast
Israeli farm expert visits Philippines

Singapore
Booze sales rebound as impact of tax hike fades
High-tech vegetable farms grow up
Singapore: the future of food, fuelled by technology
Singapore: Glycaemic Index database for local food being developed
Singapore's food security dependent on diversifying sources: Maliki
NTUC FairPrice, NUH team up to encourage healthy grocery shopping

Thailand
Commerce Ministry to keep rice price from falling below 8,500 baht per ton
Thailand Seen Under Pressure to Free Up Retail Sugar Prices Before AEC

Vietnam
Vietnam agencies pass buck over Chinese fruits with fake US-grown labels

 
ARTICLE CLIPS
 
 
Regional Affairs

New bird flu strain causing concern for poultry producers in SE Asia Food Navigator - Asia 22nd Sep 2014
A recently-emerged strain of avian influenza virus in poultry in Southeast Asia represents a new threat to animal health and livelihoods and must be closely monitored, the United Nation’s Food and Agriculture Organisation (FAO) has warned.

APEC

APEC tackling new food security challenges. APEC 19th Sep 2014
Agriculture and Food Ministers from APEC economies have unveiled a new innovation-based cooperation framework to ensure safe, accessible and sustainable food supplies amid changing global conditions. Greater measures to feed the region’s 2.8 billion people and alleviate global hunger are described in the Beijing Declaration on APEC Food Security issued by Ministers after the 3rd APEC Ministerial Meeting on Food Security that concluded here on Friday. “Despite the enormous progress made in agriculture by the Asia-Pacific region, there is still imbalance among economies and our food security still faces great challenges,” said Wang Yang, Vice Premier of China. “Population growth, climate change, environmental pollution and natural disasters are posing new difficulties to agriculture development.”

ASEAN

ASEAN to have food safety centre in KL Rakyat Post 20th Sep 2014
Malaysia is taking another lead in food saftey at the regional level with establishment of an ASEAN Risk Assessment Centre for Food Safety (ARAC) here. Health Minister Datuk Seri Dr S. Subramaniam, in a statement, said ARAC will be the sole organisation within ASEAN to coordinate and integrate risk assessment activities on food safety.

ASEAN Economic Community – The Way Forward for Food Food Industry Asia 15th Sep 2014
Singapore played host to the 2nd ASEAN Business Club (ABC) Forum this week, which was attended by over 300 CEOs and senior business leaders throughout the South East Asia region. The ASEAN Business Club, led by Tony Fernandes, Group CEO of Air Asia, has successfully positioned itself as a forceful voice of change on behalf of the private sector in ASEAN and is committed to accelerating integration efforts towards an ASEAN Economic Community (AEC2015). This year’s forum included a new focus on the Food & Beverage Sector thanks to input from joint research partners, FIA and the ASEAN Food and Beverage Alliance (AFBA). This sector-focussed dialogue was led by Pushpanathan Sundram, special Advisor to AFBA, Hendro Poedjono, FIA Lead Representative for AFBA and Sunny Koh, AFBA Chairman for Singapore, who all participated in the Food and Beverage Roundtable.

Brunei

Brunei, China Inked MoU in Halal Food Industry Brudirect 19th Sep 2014
The Halal Industry and Bio Industry are among the sectors identified for expansion in the Government's effort to diversify the economy. Development of the two industries will not only contribute to the nation's gross domestic product but also create job opportunities to Bruneians. In this regards, the Government of His Majesty the Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, the Sultan and the Yang Di-Pertuan of Brunei Darussalam makes a new commitment towards the Implementation of the Brunei Bio-Innovation Corridor (BIC) by partnering the Guangxi Zhuang Autonomous Region of People's Republic of China and Chile. A Memorandum of Understanding (MoU) was signed between the Government of His Majesty the Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, Sultan and the Yang Di-Pertuan of Brunei Darussalam and the Guangxi Zhuang Autonomus Region of People's Republic of China to explore opportunities in creating a new supply chain linking Brunei Darussalam and the Guangxi.

Indonesia

Indonesia-Malaysia tax war may spur palm oil demand The Star 22nd Sep 2014
Palm oil's share of global vegetable oil consumption looks set to climb in the months ahead as the top two producers engage in a tit-for-tat export tax tussle designed to boost sales. Barely a month after No 2 producer Malaysia cut export tariffs, top palm oil maker Indonesia is preparing a similar move to boost sales of the tropical oil used for cooking and in products ranging from candies to cosmetics. It might seem that Malaysia would then lose the competitive advantage it gained with its tax cut, which has pushed up shipments this month. But traders and analysts say there's room for both countries to benefit at the expense of Argentina's soybean oil and Ukraine's sunflower oil. Palm oil prices on the benchmark Bursa Malaysia Derivatives Exchange climbed to a one-month high this week as the market continued to rebound from a five-year low seen at the start of September. Malaysian palm oil exports jumped more than 30% in the first half of September from a month before, according to estimates from cargo surveyors, as a direct benefit of abolishing export taxes.

Sugar Exec: Leave Trade Ministry Out of Food Import Decisions The Jakarta Globe 24th Sep 2014
The role of the Trade Ministry in regulating food imports should be reduced if Indonesia wants to achieve agricultural self-sufficiency, says a sugar company director who could become a minister in the government of President-elect Joko Widodo. Kamajaya, the president director of Gendhis Multi Manis who is in the race to become the country’s next agriculture minister, said that the Trade Ministry tends to side with companies rather than with farmers. Kamajaya said that the Trade Industry should be prevented from issuing policies related to staple foods such as rice, sugar, corn, but also livestock and fish, explaining that such commodities should be handled by a ministry familiar with domestic production. “Right now it’s not like that, because the Trade Ministry is in control. They don’t think about what happens to the farmers and fishermen,” Kamajaya said in Jakarta on Wednesday. “Here’s an example: Nobody bought [Indonesian] farmers’ sugar even when it was sold at Rp 8,250 [$0.69 per kilogram]. That’s because imported sugar was sold at a lower price. The Trade Ministry is pro-capitalist, while farmers continue to get marginalized.”

Wasp ‘SWAT team’ to the rescue of Indonesian cassava crop The Malaysian Insider 24th Sep 2014
An "eco-friendly SWAT team" of 2,000 tiny wasps will be released in Indonesia today to battle bugs threatening to devour cassava crops, a major staple and source of income for millions, scientists said. The two-millimetre A. Lopezi parasitic wasps work by laying larvae that consumes the mealybugs from the inside and mummifies them. The wasps need to consume the pest to survive. The cassava pink mealybug is native to South America, as is cassava, and is one of the world's most destructive pests preying on the crop, according to the team of scientists behind the wasp release.

Greenpeace Skeptical of Firm’s Deforestation Claim The Jakarta Globe 24th Sep 2014
Greenpeace Indonesia has welcomed an announcement by the Royal Golden Eagle Group’s oil palm plantation company Asian Agri and palm oil trading arm Apical that their new sustainability policies aim to tackle their impact on Indonesia’s forests, but the environmental group notes that other companies in the group are still destroying the country’s forests. Monday’s announcement of new environmental commitments by Asian Agri and Apical, palm oil businesses owned by Sukanto Tanoto, come as his family’s pulp companies, APRIL and Toba Pulp Lestari, continue to destroy Indonesia’s rainforests, Greenpeace said in a press release on Tuesday. On Padang Island in Sumatra, bulldozers are continuing to clear forests on deep peatland, it said. Bustar Maitar, head of Greenpeace’s Indonesian forests campaign, said that while he welcomed the announcement, he saw it as a missed opportunity by the RGE Group to address its real impact on the rainforests of Indonesia.

RI, Taiwan to extend agricultural partnership The Jakarta Post 19th Sep 2014
Taiwan and Indonesia have announced their intention to extend the Memorandum of Understanding (MoU) on agricultural cooperation between the two countries that has been in force since 2001. Taiwanese Agriculture Minister Bao-Ji Chen said on Friday that the extension of the MoU would help the two countries collaborate in the agricultural sector. Bao-Ji’s statement followed a meeting with Indonesian Agriculture Minister Suswono at the 3rd APEC Ministerial Meeting on Food Security in Beijing, China, on Friday. During the meeting, several Taiwanese agriculture business representatives expressed their commitment to extending the cooperation with Indonesia, as some had already invested in the country.

Jokowi Sticks to an Old Formula With New Cabinet The Jakarta Globe 16th Sep 2014
Indonesia’s incoming cabinet will consist of 34 ministers of which 18 are technocrats and 16 “professional” party politicians, President-elect Joko Widodo announced on Monday evening, describing a structure very similar to that currently in place. “To ensure the government will run effectively … that it works for the people and based on our current presidential system, we have decided to build a cabinet of 34 ministers,” Joko told reporters at the office of his transition team in Central Jakarta. The ministries of finance, state-owned enterprises, energy and minerals and agriculture would be among those led by technocrats, he explained. “The cabinet will continue to have three coordinating ministers,” Joko said. “And we believe the foreign affairs minister would still require a deputy.”

Malaysia

Nation is best example in agrotourism: APO chief Daily Express 23rd Sep 2014
Malaysia is the best example for developing the agrotourism industry as it has managed to help people involved in agriculture to improve their quality of life. Director of the Agriculture Department, Asian Productivity Organisation (APO) Joselito Cruz Bernardo said many countries were trying to find ways to improve the income for small farmers as the land for agriculture has become smaller. "Malaysia has the best solutions through agrotourism. The only way to improve the income of small farmers is to find a way to diversify their economic activies. "We have to introduce new activities. In doing this, Malaysia is the best example for agrotourism in Asia, and it also includes homestay programmes. I have been travelling around...Malaysia has the best, well organised agrotourism programme," he told reporters during the welcoming dinner for a Training Course on Development of Homestay and Agrotourism Programme, here Sunday night. He said it was proven that Malaysia's effort to develop agrotourism managed to provide more income for the people in the rural area. Bernardo said APO is a regional organisation based in Tokyo, composed of 20 member countries with Malaysia is one of the very active member. "We support member countries in terms of economic development to improve productivity.

China to import Malaysian frozen durians worth RM2 million a month The Malaysian Insider 17th Sep 2014
Malaysia is expected to export up to four containers of frozen durians worth RM2 million a month to China following the introduction of the MiTrace Traceability System. “The first container of frozen durians valued at RM500,000 is expected to arrive in Nanning by next week,” said the Prime Minister's special envoy to China Tan Sri Ong Ka Ting, adding other containers would reach Guangzhou and Shanghai by the end of next month. After launching the Malaysian Frozen Durian MiTrace Live Export in China today, Ong said the MiTrace system would enable Chinese consumers to trace the origin of the durian, which they regard as the king of Malaysian fruits and a premium product. “Every safety label on the exported frozen durian boxes consist of a unique code, they can check the purity and the originality of the product by using a QR code,” he added. The MiTrace system has been approved by the Agriculture Quarantine Service Inspection of China (AQSIC).

Brahim’s: Yes we’re in talks on Burger King The Sun Daily 16th Sep 2014
Brahim's Holdings Bhd has confirmed that it is exploring the business opportunity and engaging in preliminary discussions on buying the Burger King franchise. In a filing with Bursa Malaysia yesterday, the company said while it is in talks, it has neither concluded nor entered into any definitive agreement relating to the move. The announcement follows a local business weekly's report that Brahim's is in talks with Ekuiti Nasional Bhd, which spent a total of RM117 million to acquire the Burger King franchise, to take it over. Hong Leong Investment Bank (HLIB) Research said it is "positively surprised" by the news as it would allow Brahim's to diversify its earnings away from Malaysia Airlines (MAS), which currently contributes 75% and 90% of Brahim's revenue and profit respectively.

In-flight caterer Brahim's looks for M&A as core client MAS seeks turnaround The Star 16th Sep 2014
Brahim’s Holdings Bhd, reeling from the twin aviation disasters that befell Malaysia Airlines (MAS), may be trying to ease the shortfall from possible route cuts by acquiring a food-based company. The company told Bursa Malaysia it was exploring the business opportunity and engaging in preliminary discussions on buying the Burger King franchise. It has not concluded or entered into any definitive agreement to buy the Burger King franchise. It was reported that Brahim’s was close to sealing a deal to buy state-owned Ekuiti Nasional Bhd’s (Ekuinas) stakes in Burger King Malaysia and Singapore. Ekuinas owns 74.1% of Cosmo Restaurants Sdn Bhd, which holds the local Burger King franchise, and 100% of Burger King Singapore. The private equity firm has so far splashed out RM117mil to acquire the popular fast-food chain.

Myanmar

Myanmar exporting food despite facing shortages Eleven 21st Sep 2014
Myanmar, an exporter of agricultural products in Asean, is facing more food shortages and the worst malnutrition rates within the region, according to a workshop of Regional Civil Society Dialogue to improve Food Security, Agriculture and Rural Development Policies in South East Asia. Project coordinator Dr Ohnmar Khine, from the Food Security Working Group, said: “Myanmar is among the list of countries with food security issues along with Cambodia, Laos and the Philippines. “Low-level food insecure countries are Cambodia, Indonesia, Laos, Myanmar and the Philippines. Thailand, Malaysia and Vietnam are classified as medium level. Our country is the worst for food security and malnutrition in the Asean region. Vietnam is not included in the list of low-level food insecure countries but they do export rice. “Although Myanmar is exporting rice, they are included in the low-level list. The Philippines is importing rice. Laos cannot plant paddy enough to feed its people and the same with Indonesia. Cambodia also cannot produce enough rice to feed its people.”

Philippines

NFA chief quits, cites health reasons Manila Bulletin 26th Sep 2014
Confronted with extortion allegations, National Food Authority (NFA) chair Arthur Juan has quit his post on Thursday due to poor health conditions. “It is with regret and sadness that we received yesterday afternoon (Sept. 25) the irrevocable resignation of Mr. Art Juan. He cited failing health as the reason for his stepping down,” Presidential Assistant on Food Security Francis Pangilinan said. Pangilinan said he has informed President Aquino about the resignation of Juan early Friday morning. “He replied saying that we will meet as soon as possible to discuss and decide next steps,” the former senator added.

Philippines expects to miss Q4 rice output forecast Reuters 23rd Sep 2014
The Philippines said on Tuesday it could miss its fourth-quarter rice output forecast by a small margin after two recent storms caused crop losses totaling 87,576 tonnes of unmilled grain. Major rice exporters such as Vietnam and Thailand are looking for any signs the Philippines, one of the world's biggest buyers, may need to import more, with Thailand in particular looking to unload grain from its huge stockpiles. However, the Philippines' Department of Agriculture said in a crop damage report that the production loss accounted for only 1.2 percent of its forecast harvest of 7.32 million tonnes for the fourth quarter.

Israeli farm expert visits Philippines Business Mirror 22nd Sep 2014
An Israeli agricultural expert has visited the country recently to assess an ongoing project between the two countries in the Philippines, according to a statement from the embassy of Israel on Monday. The Israeli Embassy in Manila hosted a roundtable discussion titled “Knowledge Development and Knowledge Transfer” in the fields of integrated pest management and postharvest management for vegetables and fruits led by Deputy Director for Extension Services of Israel’s Ministry of Agriculture Omar Zeidan and Israeli Ambassador Effie Ben Matityau.

Singapore

Booze sales rebound as impact of tax hike fades Asia One 16th Sep 2014
February's 25 per cent rise in alcohol duties had a brief sobering effect on drinkers. New figures show consumption of alcoholic drinks dipped sharply following the hike, with just 8 million litres bought in March, 28 per cent down on the previous month. But recovery was quick and volume climbed back up to 10.7 million litres in April, according to Singapore Customs data. Alcohol consumption has since held steady, with experts saying that demand does not depend too heavily on price. "These products generally have some addictive quality, or they have few substitutes," said Nanyang Technological University economist Walter Theseira. "What would you drink at a nightclub, if not alcohol?" An affluent consumer base has helped modern pubs and bars sustain their business despite the hike, though some - like Timbre and Brewerkz - chose to absorb the tax increase.

High-tech vegetable farms grow up The Japan Times 29th Aug 2014
Singapore’s small but advanced vegetable farming industry is attracting Japanese firms that are eager to invest in or adopt its technology for use in Japan. Singapore has in recent years become a test bed for high-tech farming as the government encourages farms to explore innovative methods to overcome the chronic shortage of land and to reduce reliance on imports. Singapore imports more than 90 percent of its food and has only a tiny farming industry that occupies about 200 hectares, less than 1 percent of its land area of 71,000 hectares. The farms focus on producing leafy vegetables, fish and eggs for local consumption. Locally grown vegetables account for about 8 percent of the vegetables consumed in the city state, with the rest imported from neighbours like Malaysia and China. Aside from Japan, China, Australia and countries in the Middle East and Southeast Asia are also keen on the technology.

Singapore: the future of food, fuelled by technology The Business Times 29th Aug 2014
In this opinion editorial featured in The Business Times Singapore, Fumio Otani talks about the various technologies that are at hand to improve the quality and health benefits of food. Singapore has fared very well in the latest statistics from the World Health Organization (WHO) - according to the report published in May this year, men and women in Singapore have one of the longest life expectancies in the world at 80 and 85 years. However, living longer isn't necessarily the same as living in good health. According to medical journals, there is an increase in "unhealthy" years over the healthy years for people in Singapore. This means that people spend a larger number of years sick, compared to before.So how can we ensure that the food we consume contains sufficient nutritional and health value? The answer perhaps lies with technology. To be more precise, existing technology.

Singapore: Glycaemic Index database for local food being developed Channel News Asia 24th Aug 2014
In partnership with the Health Promotion Board, researchers have tested about 200 local delicacies in an attempt to find out which foods contain good quality carbohydrates, otherwise known as low glycaemic index (GI) foods. A low GI meal is especially beneficial for those with weight problems or suffering from diabetes. Glycaemic index is a measurement carried out on foods that contain carbohydrates and their impact on a person's blood sugar level. Nutritionists say low GI foods help you feel full longer and control your appetite. So anything with a number of 55 and below, it is low glycaemic index. When the public is educated, they know the number, they know that it is slow release. But if we are not able to remember the number, and it says slow release, that's low glycaemic index.

Singapore's food security dependent on diversifying sources: Maliki Channel News Asia 21st Aug 2014
Singapore imports more than 90 per cent of its food supply from about 160 countries, but it is aware of the challenges associated with food security in Asia, such as the shift towards urbanization, decreasing food production and the loss of farming land. But diversifying food sources can help minimize the impact of a crisis on any single food source.Investing in research and development for food is one possible solution to addressing the country’s food security challenge. “We should seize the opportunities to invest in technology now so as to be better prepared to tackle the effects of climate change on farming", said by Minister of State for National Development Dr Maliki Osman.

NTUC FairPrice, NUH team up to encourage healthy grocery shopping Channel News Asia 11th Sep 2014
Supermarket chain NTUC FairPrice has collaborated with the National University Hospital (NUH) to encourage the selection of healthier food alternatives. Patients can now go to the NUH Medical Centre for their appointments and then get a "Healthy Shopping Tour" from the hospital's dietitians at the supermarket, located in the same building, where they can pick up tips on reading food labels. The tour will be conducted once a month at a fee of S$20 per person. For those who are too busy to read the labels or have little time to shop, there is also a dedicated "Dietitian's Choice" corner to help consumers make informed food decisions. It houses healthy food choices handpicked by the dietitians. These selected food items are low in saturated fat, trans fat, sugar and salt and high in fibre. So far, patients have found it to be convenient.

Thailand

Commerce Ministry to keep rice price from falling below 8,500 baht per ton Pattaya Mail 18th Sep 2014
The Ministry of Commerce has agreed to meet with rice growers' representatives every two weeks to ensure stability of rice price is achieved and to address the demands of rice growers. Commerce Minister Chatchai Sarikanlaya yesterday met with representatives from five rice growers' organizations to discuss measures to aid rice growers, the appropriate price of rice and the marketing of rice. It was agreed at the meeting that the government would work to keep the rice price from falling below 8,500 baht per ton. Measures to ensure this price level would vary according to circumstances. For the long run, cost of producing rice would be reduced and improvement made to the yield per rai of paddy. The representatives of rice growers and Commerce Ministry officials will meet every two weeks to follow up on these drives, with the first meeting set to take place next week, said the Commerce Minister.

Thailand Seen Under Pressure to Free Up Retail Sugar Prices Before AEC Jakarta Globe 15th Sep 2014
Thailand is likely to come under pressure to free up its retail sugar prices ahead of Asean Economic Community (AEC) integration next year that could open the floodgates to cheaper imports and prompt local refiners to ditch domestic produce. The world’s number two sugar exporter fixes its retail price above market rates to ensure profits for farmers. But with around 3 million metric tons of Thai sugar still unsold and global prices down over 13 percent this year on ample supplies, Thailand needs to cut its retail price to avoid a further build up of stocks. “We fear cheap sugar from other countries could flood Thailand as the AEC provides zero tariff for buyers and consumers to import, especially when domestic prices are high,” said Chalush Chinthammit of Khon Kaen Sugar, Thailand’s number four sugar producer.

Vietnam

Vietnam agencies pass buck over Chinese fruits with fake US-grown labels Tuoi Tre News 16th Sep 2014
Vietnamese regulatory agencies are pointing fingers at each other over the question of which of them should be held responsible for Chinese fruits bearing fake U.S.-grown labels, which are widely sold at local markets. Chinese fruits imported to Thu Duc Agriculture Wholesale Market are distributed to smaller wholesale markets, and finally to traditional markets and fruit stores citywide, with their Chinese origins ‘erased’ and replaced with bogus stamps claiming they were grown in the U.S. or New Zealand. Thu Duc market is the largest wholesale market for fruit and agro-produce in Ho Chi Minh City, and it also supplies produce for the southern city’s neighboring areas. A number of consumers have purchased and eaten what they believed to be U.S. apples, oranges, pears, or grapes, while they were in fact grown in China.