Cuba explores opportunities for meat and poultry trade

Following a recent visit by Argentinian President Cristina Fernandez de Kirchner to Havana, Cuba, the agriculture ministers of Argentina and Cuba have officially signed an agreement covering bilateral cooperation for the next five years. The agreement focuses on food security, health and safety, and will involve joint ventures, technical cooperation and commercial contracts for livestock, animal products, arable and vegetable products, according to Argentina’s agricultural ministry. For the livestock sector, added-value meats (poultry, pig and beef) will be covered, as well as nutrition and management of dairy cattle and milk technology.
"The agreements with Cuba involve a commitment to strategic cooperation to the Argentine government," Argentina’s Minister of Agriculture, Livestock and Fisheries, Carlos Casamiquela, said to his Cuban counterpart, Gustavo Rodriguez Rollero, at the official ceremony. Details will be announced following a technical visit in November.
During the visit, the delegations met with executives of Labiofam, the scientific institution that processes all of Cuba’s veterinary products and develops a wide range of items for livestock, agriculture and consumers. The possibility was discussed of manufacturing some of the veterinary products in Argentina.
Argentina is a key player to meet growing global demand for poultry meat, according to a new GAIN report from the USDA Foreign Agricultural Service. It forecasts that broiler production will increase to a record-breaking 2.1 million metric tons next year as a result of modest growth in exports. Having lost volume to its largest export market, Venezuela, Argentina is thought to be seeking alternative markets. This search is likely to be successful because of the production capacity and high health status of its poultry.

Cuba and Panama trade opportunities to be discussed

In October of 2015, officials from Panama are due to visit Cuba to discuss trade opportunities, which include the production, processing, packaging and export of poultry products, reports ANPanamà.

US working to restore trade with Cuba

At the end of 2014, executive actions updated the approach of the United States to Cuba, including measures that have the potential to boost bilateral agricultural trade. The first element was re-establish diplomatic relations with Cuba, completed in July 2015. According to a report from the USDA Economic Research Service “While diplomatic relations are not a guarantee of increased agricultural sales, they do increase expectations of a more favorable economic and policy environment for bilateral agricultural trade over the medium and long term.”
Between the 2012 and the imposition of trading restrictions in 2014, U.S. agricultural exports to Cuba averaged US$365 million per year, with chicken meat, corn, soybean meal, and soybeans accounting for 84 percent of the value of these exports. Cuba suspended chicken meat imports from the U.S. in June 2015 on fears of avian influenza.

Russia, Brazil eager for mutual poultry, pork trade

Officials from Brazil and Russia expressed a mutual desire to pursue mutual trade opportunities for meat and poultry products during a recent meeting.
According to Rosselkhoznadzor, the Russian federal service for veterinary and phytosanitary surveillance, Sergey Dankvert, head of Rosselkhoznadzor, and Tatiana Palmero, secretary for Agribusiness International Relations, Brazilian Ministry of Agriculture, Livestock and Food Supply, took part in negotiations on September 15 to discuss mutual supplies of animal products.
In particular, it was noted that Russian producers are interested in the export of poultry meat, pork and beef to Brazil, and that it was ready to receive Brazilian inspectors for inspection of the Russian establishments intending to export their products to Brazil.
Russia has been looking at Brazil as a potential market for meat and poultry trade since 2014, when the country implemented trade bans on products from the U.S., Canada, European Union, Australia and Norway for political reasons. The ban was renewed in August 2015.

Trade of fish and casings progressing

It was also discussed that progress was being made in ensuring the safety of Russian fish products exported to the Brazilian food market. As a result, Brazilian experts will inspect Russian establishments interested in exporting such products to Brazil through October 4.
It was also agreed between the two countries that expert consultations would take place to finalize the protocol on ensuring the safety of Brazilian casings imported to Russia.

China’s Liaoning LuKang Poultry exports lag in 2015

Egg export numbers for China’s Liaoning LuKang Poultry Development Company are lagging behind the pace the company set in 2014.
According to a report provided by Smart Agriculture Analytics, Liaoning LuKang Poultry Development Company during the first five months of 2015 exported 1,140 metric tons of eggs. In 2014, the company exported 3,113 metric tons of eggs.
Liaoning LuKang Poultry Development Company specializes in breeding and raising laying hens, as well as egg processing for export. The company is also the only company in the Dalian region of China to provide fresh eggs to Hong Kong. 

German economy minister urges support for EU-US trade deal

Germany’s economy minister urged his country’s business leaders to promote the benefits of the Transatlantic Trade and Investment Partnership (TTIP), a proposed free trade agreement between the EU and the United States.
Proponents of TTIP say it will result in economic growth of up to $100 billion per year for both regions, but critics say it will increase corporate power and make it more difficult for governments to regulate markets to benefit the public.
"The future growth of the U.S. feed industry lies in exports, whether it be directly, or indirectly through meat and dairy exports, and the feed industry needs the support of the administration to remove barriers to trade and enforce trade rules," Gina Tumbarello, AFIA manager of international trade, has said. "The most opportunistic path for this is through free trade agreements such as TPP and TTIP with the European Union."
If TTIP were to fail, “Germany and Europe could come under pressure through developments in other parts of the world," said Sigmar Gabriel, Germany’s economy minister.
One of the most controversial elements of TTIP, which faces strong opposition in Germany, is the investor-to-state dispute settlement (ISDS) mechanism. ISDS would allow firms to take cross-border legal action against governments. Gabriel said the mechanism is a way to modernize the mediation process and would set the “gold standard” for future trade deals.
"We need investor protection regime for a new generation," Gabriel said.
In Germany, Europe’s largest exporter, critics say ISDS will undermine European environmental and food laws and give too much power to American corporations.
The European Commission has frozen negotiations on ISDS with Washington. U.S. and EU leaders are looking to draft a deal on TTIP before the end of President Barack Obama’s term in January 2017.

British Columbia avian influenza trade implications to endure

• 

  Andrea Gantz

  The trade implications of avian influenza outbreaks in British Columbia will be tough to overcome, an industry leader says.

  From WATTAgNet:
  It could be as late as June before British Columbia farms are declared free of avian influenza, but recovering from the international trade implications may take far longer, says Robin Horel, head of the Canadian Poultry and Egg Processors Council.
  Horel said a clean bill of health from the Canadian Food Inspection Agency (CFIA) would be “just the beginning” and that more work will be needed to resume international trade.
  To date, 11 commercial poultry facilities in British Columbia have been affected by avian influenza, about half of which have been disinfected. However, Horel said the CFIA imposes a 21-day restriction before allowing birds back into barns. Restocking is followed by a three-month surveillance period, after which a farm can be labelled free of avian influenza.
  The number of countries that have imposed trade restrictions on British Columbia poultry products has quietly climbed to more than two dozen since H5N2 avian influenza was first detected in two Fraser Valley farms in December 2014.
  Since that initial outbreak, Taiwan, Hong Kong, Japan, South Korea, United States, Mexico, South Africa, Philippines, Singapore, United Arab Emirates, Russia, Guatemala, St. Vincent and the Grenadines, Dominica, Morocco, Saudi Arabia, Australia, Brazil, Barbados, the European Union, Venezuela, Colombia, China and Vietnam have all implemented some sort of ban on poultry from British Columbia, and in some cases, Canada as a whole.
  Between January and October of 2014, the total value of the now-banned exports to those jurisdictions surpassed $45 million, with the U.S., Taiwan and the Philippines making up the bulk of that trade.
  Prior to December 2014, British Columbia’s last significant avian influenza scare occurred in 2004, when a highly pathogenic strain led to the culling of 17 million birds.
  It took more than a year for international trading bans to be lifted, said Horel, adding that he anticipates a faster turnaround this time.
  
  

Indonesian officials in talks to resume poultry exports to Japan

Indonesian trade officials are reportedly in talks with officials in Japan to resume poultry exports, which were halted in early 2004 following an avian influenza outbreak that affected many local poultry breeders.
Producers in Indonesia have expressed their readiness to ship processed poultry products to Japan, which could boost export earnings to at least US$200 million a year.
McDonald’s Japan discontinued purchasing chicken from China’s Shanghai Husi Food Co. Ltd. after the exposure of a food safety scandal involving sales of expired meat at the end of July 2014. Seeking import substitutes, Indonesian producers may provide an alternate from Thailand, which has been supplying the majority of the Japanese market. 
Indonesian poultry producers could meet standards applied in Japan and had already gained a competitive edge compared to rivals in China or Thailand thanks to efficient production, according to Indonesian Poultry Breeders Association (GAPPI) chairman, Anton J. Supit. “I am optimistic now we can make it. We still only need to see whether the price matches or not,” Supit said.
A staff member in agriculture at the Japanese Embassy in Indonesia, Kazuko Takabatake, said two Japanese veterinary officials will carry out on-site inspections at five factories from Aug. 24 to Aug. 29, but declined to specify the names of the firms. According to Takabatake, “They will check to see whether the factories are sufficiently hygienic and whether the whole producing process is carried out appropriately."

Brazil’s poultry export volumes up first 6 months of 2014

Brazil’s poultry exports over the first six months of 2014 rose by volume, but fell by value. By volume, exports increased by 0.7 percent to stand at 1.902 million tons. However, by value, there was a sharp decrease of 9.2 percent to US$3.718 billion.


Poultry exports hit in June
For the month of June, the Brazilian Animal Protein Association (ABPA) notes that the volume of whole birds, cuts and processed poultry meat exported was 3.1 percent lower, while the value of exports fell by 2.2 percent. This is explained in part by the annual export quota to the European Union coming to an end, meaning that there were only 10 days during June for shipments to be sent from Brazil to Europe. The new export quota comes into operation during July.
The first half report sees the continuation of the trend reported earlier this year of steadily growing volumes but with lower sales by value. However, the association also notes that, if the effects of exchange rates are ignored, profitability in the poultry sector has increased this year. 

USAPEEC’s McKee named to USDA advisory committee

Dr. Shelly McKee, director of technical services for USA Poultry & Egg Export Council (USAPEEC) has been appointed to serve on the USDA’s Agricultural Technical Advisory Committee for Trade in Animals and Animal Products. The appointment was announced June 26 by U.S. Secretary of Agriculture Tom Vilsack and U.S. Trade Representative Michael Froman.
McKee will be joined on the committee by David Carter, National Bison Association, and Stephen Sothmann, U.S. Hides, Skins and Leather Association.
The committee provides advice and information to the USDA and U.S. Trade Representative on negotiating objectives and positions, and other matters related to the development and administration of U.S. agricultural trade policies.
In addition to naming members to the Agricultural Technical Advisory Committee for Trade in Animals and Animal Products, Vilsack and Froman also appointed members to five other agricultural trade advisory committees. Those committees include the Agricultural Policy Advisory Committee;Agricultural Technical Advisory Committee for Trade in Fruits and Vegetables;Agricultural Technical Advisory Committee for Trade in Grains, Feed, Oilseeds and Planting Seeds; Agricultural Technical Advisory Committee for Trade in Processed Foods; and Agricultural Technical Advisory Committee for Trade in Sweeteners.
“The agricultural trade advisory committees provide great insight into trade issues for the United States. Hearing from such a wide variety of agricultural experts helps us formulate our trade strategy and keep American exports growing to record numbers,” Vilsack stated. “Agricultural trade plays a vital role in the health of our economy, and the new members of the committees will bring welcome new perspectives.”

Dominican poultry exports to Haiti will resume in March

The Dominican Republic will resume formal exports of chickens and eggs to Haiti in mid-March, said Luis Ramón Rodriguez, Dominican agriculture minister. The Haitian ban on Dominican poultry and eggs was established in June 2013, but officials from both nations have agreed to a sanitary protocol that will halt the trade barrier.
Rodriguez said poultry exports will start from two farms already certified and that as many as 10 others will be added within six months, Dominican Today reported. Rodriguez said of the country's poultry 120 farms, only between 15 and 20 qualify, for having the capacity to export chickens and eggs to Haiti.
The Haiti ban on Dominican poultry and eggs was initially put in place over fears of avian influenza, after five people died. However, Dominican leaders asserted the ban was unfounded, because the deaths were not caused by avian influenza, but another type of influenza virus.
Once poultry trade between Haiti and the Dominican Republic resumes, the Dominican Republic expects to double formal exports to about 40 million eggs per month and about 8 million chickens per month.

US senators urge fair trade, open markets for chicken

A group of bipartisan U.S. Senators, led by Senate Chicken Caucus Co-Chairs Sens. Chris Coons (D-DE) and Johnny Isakson (R-GA), expressed concern yesterday regarding trade restrictions on U.S. chicken products by several countries participating in the Trans-Pacific Partnership (TPP) trade talks.
TPP is a proposed trade agreement currently under negotiation by Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
In a letter sent yesterday, 11 senators urged U.S. Trade Representative (USTR) Michael Froman and U.S. Agriculture Secretary (USDA) Tom Vilsack to do everything possible to provide for open markets and fair trade of U.S. chicken products.
"The TPP represents a significant opportunity to expand U.S. chicken exports and bring increased economic benefits to chickens growers and companies across the country… Your ongoing commitment to seek the highest possible standard agreement is appreciated," the senators wrote.
"I want to thank Senators Coons and Isakson for their leadership on this issue, and the other nine senators who are working to bring fair and open market access for U.S. chicken products," said National Chicken Council President Mike Brown in response to the letter.  "TPP is a valuable opportunity to expand agricultural trade, including poultry, and we appreciate these senators keeping our interests on the front burner for USTR and USDA as negotiations continue."
In addition to Coons and Isakson, senators signing the letter are:  Sens. Ben Cardin (D-MD), Tom Carper (D-DE), Saxby Chambliss (R-GA), John Cornyn (R-TX), Tim Kaine (D-VA), Barbara Mikulski (D-MD), Rob Portman (R-OH), Mark Warner (D-VA) and Roger Wicker (R-MS).
"We are particularly concerned about Canada's supply management program that severely limits U.S. chicken exports to our northern neighbor," the senators continued.  "As you know, despite ratification of the North American Free Trade Agreement (NAFTA), Canada has continued to impose restrictions on imports of U.S. chicken products and the U.S. has been unsuccessful in lifting those restrictions. We urge you to continue to work to address this long-standing, unjustified issue during the TPP negotiations and create true free trade for U.S. poultry.
"Similarly, we are concerned about Australia and New Zealand's use of non-scientific barriers related to poultry disease that prohibit trade of U.S. chicken products to these countries. If Australia and New Zealand are to participate in the TPP, they should conform to World Organization for Animal Health (OIE) standards.
"Finally, Japan's administrative guidance sets an unofficial quota on U.S. chicken products. Japan is a significant potential market for U.S. chicken products and a truly open trade agreement would create substantial opportunity for growth."

Ban on Arkansas poultry lifted by Russia

Russia has lifted its ban on Arkansas poultry, effective September 18. With the ban removed, poultry from Arkansas birds slaughtered after June 19 are not eligible for export to Russia, according to the U.S. Department of Agriculture (USDA)'s Animal and Plant Health Inspection Service.
"We're just thrilled to death to see them take the action and lift the ban," said Marvin Childers, president of the Poultry Federation, which serves Arkansas, Oklahoma and Missouri.
Russian officials implemented the ban shortly after chickens at a farm in Boles, Ark., showed the presence of a low-pathogen form of H7N7 avian influenza during the week of June 17. About 9,000 chickens were destroyed, the farm was disinfected and poultry within a 6.2-mile radius of the farm was quarantined. The area has since been declared free of avian influenza.
Similar bans on Arkansas poultry were enacted by Japan and China. Those bans are still in place, Childers said. 

US poultry producers prevail in China antidumping case

The World Trade Organization on August 2 ruled in favor of the U.S. in a dispute where China imposed antidumping tariffs that restricted U.S. chicken exports. The World Trade Organization determined that the antidumping tariffs imposed by China on U.S. chicken exports were inconsistent with international trade rules.
Now that the World Trade Organization has reached a decision, the U.S. poultry industry hopes the issue can be put to rest and trade relations that are mutually beneficial can be restored between the Chinese and U.S. poultry industries.
The Chinese antidumping case dates back three years, after China accused the U.S. of dumping and imposed tariffs on imports of chicken products. In the Chinese antidumping case, China alleged U.S. chicken producers benefited from subsidies and were exporting poultry at unfair prices. U.S. poultry interests quickly appealed to the World Trade Organization.
"We immediately realized the long-term implications that this case could have had for our industry's exports," said Jim Sumner, president of the USA Poultry & Egg Export Council. "We knew we could not wait to act. That's why when this case was initiated three years ago, our board and executive committee did not hesitate to hire the best legal counsel available to pursue our options on behalf of our industry."
The USA Poultry & Egg Export Council praised U.S. government officials, including U.S. Trade Representative Michael Froman and former U.S. Trade Representative Ron Kirk, for their efforts to bring fairness to U.S. poultry producers.

Poultry purchasing trends changing in Central America, South America

Developing economies in Central America and South America are changing how and where consumers there are purchasing poultry.
Ernesto Baron, USA Poultry and Egg Export Council Latin America/Caribbean president, told council members that the number of supermarkets in Central America  has grown substantially in recent years, with about 40 percent of the population now shopping in supermarkets. The growth has been especially noticeable in El Salvador, Hondourus and Panama.
"In 2013 alone, more than 100 new supermarkets are opening," Baron said.
As the economy improves in Central America, more people are using their dollars for protein. However, they are also buying more convenient foods like deli meats and boneless chicken products as more households have more than one person working away from home and spending less time in the kitchen.
The scenario is similar in South America. Increased demand for poultry products has helped poultry exports to South America double over the past four years, Baron said, with increased market access to Chile being one of the biggest drivers. Steady economic growth in Peru, Columbia and Suriname are also contributing factors.
Along with the growth of supermarket shopping, trends in the South American retail sector include increased government oversight of markets and supermarkets, an increase in diversity of processed meat products and the growth of convenience foods. 

US poultry exports to Colombia up significantly over 2011

In January–September 2012 the U.S. exported 22,312 metric tons of broiler meat to Colombia, 11 percent higher than the same time in 2011 (20,143 metric tons), according to a U.S. Department of Agriculture report.
This trend is also a reversal of 2011, when the U.S. exported a total of 28,986 metric tons of broiler meat in January–December, 9 percent lower than 2010's 31,870 metric tons. U.S. turkey meat exports totaled 705 metric tons in January–September 2012, 468 percent higher than the same period in 2011 (125 metric tons). In contrast, U.S. turkey meat exports totaled 285 metric tons in January–December 2011, 182 percent higher than 2010 (101.1 metric tons).
In January–September 2012, U.S. egg and egg product exports to Colombia totaled 88 metric tons, up 89 percent from 2011's 46.7 metric tons, according to the USDA. This upward trend is a change from 2011, when U.S. exports of egg and egg products to Colombia totaled 46.8 metric tons in January–December, 39 percent lower than 2010 (76.5 metric tons).

Despite increased market access to Colombian markets, U.S. exporters continue to struggle with port of entry issues prompting the USDA Foreign Agricultural Service to release a report citing ways to successfully improve shipment ease. According to the Foreign Agricultural Service, documentation and clerical errors represent the majority of port of entry problems for U.S. exports to Colombia. Others include noncompliance with sanitary, phytosanitary, and labeling requirements; the appearance of unsanitary packaging and non-compliance with labeling requirements (i.e. product origin); and a U.S. establishment’s not being registered with INVIMA.

US poultry industry applauds Senate passage of Russia trade bill

The U.S. poultry industry has applauded the Senate's December 6 passing of the Russia and Moldova Jackson-Vanik Repeal Act of 2012, which rescinds legislation that has been called a roadblock to the U.S. taking full advantage of Russia's accession to the World Trade Organization.

The bipartisan vote of 92 to 4 came on the heels of the House of Representatives passage in November, and would establish permanent normal trade relations with Russia if it is signed by the president. The National Chicken Council, National Turkey Federation and USA Poultry & Egg Export Council said they commended the Senate for their rapid attention on passing this legislation and urged the president to sign the bill into law.
"This is an important issue for the U.S. poultry industry, and we appreciate the senators who voted in favor of this bill," said the groups. "We commend their bipartisan voting for the betterment of trade, and we encourage the president to act quickly, as the House and Senate have, and sign this bill into law."
Granting permanent normal trade relations to Russia will assure that the U.S. has equal accession to general tariff reductions, market opening measures and the ability of U.S. interests, such as poultry, to seek trade relief, if necessary, through the World Trade Organization.

Philippines bans Australia poultry imports due to avian flu outbreak

The Philippines Department of Agriculture has temporarily banned the importation of poultry and poultry products from Australia due to a reported outbreak of highly pathogenic avian influenza in the country, according to reports.
The ban covers domestic and wild birds, including poultry meat, day-old chicks, eggs and semen, originating from New South Wales. The department also mandated that its veterinary quarantine officers in all major ports halt and confiscate all shipments of poultry and poultry products, with the exception of heat-treated products, from New South Wales.

The affected birds in Australia are free-range layer hens, according to the World Organization for Animal Health. A restricted area of 1-kilometer diameter surrounded by a 9-kilometer diameter control area has been established around the property, which is under quarantine restriction. Tracing is underway, and depopulation is complete, according to a report sent to the organization. Surveillance is continuing and no further signs of disease have been reported.

Exports key challenge for US poultry industry

Expanding export markets will be a key challenge for the U.S. poultry industry going forward, according to panelists at the National Chicken Council's 58th annual conference outlook panel.
See video of the panel here.
Companies need to market their exports more effectively, according to panelist Paul Fox, CEO of O.K. Foods. “I think that it used to be that you’d think about commodity industries, and ultimately it was always the company that had the lowest costs that was able to most effectively pass cost increases into pricing and to maintain profits in difficult environments," said Fox. "I think that today it’s a different scenario in that it’s the commodities … that can be exported that you have the opportunity to pass on some cost inflation in your pricing. I think that exports are really fundamental for our industry. I think that we have to divorce ourselves from the notion of thinking that the commodity department and the export department are one and the same.”
Panelist Michael Popowycz, vice chairman and chief financial officer of Case Foods, said large areas like China and India will be key to market expansion. "We need to have other countries open up their trade borders," he said. "We’re going to need some government help to get that accomplished. We need to continue to work with emerging countries in sub-Sahara Africa and the Middle East. I think exports is one area we all believe the industry can really grow.”
At the end of the panel, each member was asked what he would take away from the meeting, and each had words of wisdom for the poultry industry. "We’re going to experience bumps in the road," said Fox. "At the end of the day, the market’s always right, even though it may not appear to be the case in the short term."
Panelist Thomas Hensley, president of Fieldale Farms, said he sees an industry pattern that needs to be kept in check. "Those who don’t pay attention to history are doomed to repeat it," said Hensley. "2010 was a good year for chickens — production increase. In 2011 we were hit with high feed costs. It was bad. 2012 was a good year for chickens. 2013 — high feed costs. I think the industry needs to balance supply with demand."
Finally, Popowycz spoke about innovation. "We have an industry that's very innovative," he said. "We need to figure out how we can make money at $7 corn and $400 meal."
See videos of the entire panel here.

Ukraine may export poultry products to EU by late 2012

Ukraine hopes to begin exporting poultry products to the European Union in late 2012, according to Oleksandr Bakumenko, chairman of the Union of Poultry Farmers of Ukraine.
Due to strict chicken breeding requirements set by the EU, there is a shortage of eggs on EU markets and their prices are increasing, said Bakumenko. In the meantime, Ukraine has been working to gain a permit from the EU to supply poultry products to its markets for several years, and domestic companies have now passed the relevant checks by European specialists. "We expect that the European Union market will be opened for us," said Bakumenko. "All of the procedures required for this have been nearly completed. Soon products will start moving to the European markets, both eggs and poultry."

Turkey poultry exports rise on Iran demand

Iran's demand for Turkish poultry increased in July as western sanctions on Iran doubled the cost of poultry there, according to Sait Koca, the chairman of Turkey’s white meat association and the CEO of poultry company Beypilic.
Turkey exported $231 million in poultry in the first six months of 2012, up 40 percent compared to 2011 numbers. This increase was mainly due to higher demand from Iran and Iraq, according to Koca.

Philippines lifts ban on Austria poultry imports

The Philippines government has lifted its ban on poultry and poultry products coming from Austria, including poultry meat, day-old chicks, eggs and semen, declaring that the products no longer threaten local livestock in terms of contamination from avian influenza.
The ban was issued in March 2006 after reports of low pathogenic avian flu in February of the same year. “[The] last finding was on April 16, 2006, and there has been no infection of poultry or other captive birds [observed],” said a memorandum order.
The avian flu episode was resolved on April 26, 2006, based on the official status report on the disease submitted by Austria to the World Organisation for Animal Health. Further evaluation of the Bureau of Animal Industry confirmed that the risk of contamination from importing poultry and poultry products from Austria has been declared as negligible.