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2011年9月5日月曜日

Japanese pay top dollar for Ellensburg's timothy hay - The Seattle Times

ELLENSBURG —

On a recent summer morning, a sales manager from Japan and his assistant were driven to a 1,100-acre hay farm about three miles southeast of town.

They had flown into Seattle a few days earlier. At this particular farm, the sales manager, Kenny Miura, of Yoshi International out of Tokyo, went inside a massive barn stacked 20 feet high with bales of timothy hay.

Timothy is the hay that is predominantly grown here in the Kittitas Valley.

Miura pulled some of the hay out of a bale and quickly gave it a grade — in this case, what amounts to about a "C."

"It has a little bit of bluegrass in it," he said.

To the surprise of many who don't live here, 90 percent of the timothy grown in the valley will never be eaten by an American horse or cow.

The closest locals will get to it is when a hay truck goes by, or motorists see stacks covered with vinyl tarps in fields alongside Interstate 90.

Nearly all of the timothy from here is shipped by sea to Japan and, in lesser amounts, to countries such as South Korea and China, and also the United Arab Emirates.

It means $35 million to $38 million is paid to the farmers, and an additional $80 million or so pumped into the economy as the farmers then spend money on everything from equipment to labor, according to the Kittitas County Chamber of Commerce.

At a time when some wonder what the United States can export other than movies and video games, the exporting of timothy hay is an amazing success story.

Timothy hay is named, naturally, after a guy named Timothy Hanson, who promoted it in the early 1700s.

The publication Agricultural History tells how, because of a lack of good forage, livestock on the average farm in colonial America "were generally thin, weak, and susceptible to disease." That is when various kinds of grass seeds from Europe were tried, including one that would become known as timothy grass.

It was native to Scandinavia, and, according to a U.S. Department of Agriculture reference book, became popular because it "is one of the most cold-tolerant cool-season grasses."

Horse and dairy-cow owners in this state do buy some of the timothy, but for the most part, they're priced out. Farmers can get $180 to $320 a ton from export sales, broker Rollie Bernth said.

Selling timothy hay for export is profitable, but it does have its own idiosyncrasies. Buyers generally focus on how green the timothy is, not its nutritional value.

The grading criteria for timothy used by a buyer such as Miura is formidable, and, to an observer, perplexing.

There are Super Premium Horse, Premium Horse and No. 1 Horse grades. There are Super Premium Dairy, Premium Dairy, No. 1A Dairy, No. 1B Dairy, No. 1.5 Dairy and No. 2 Dairy.

The differences in grading are because of the presence of bluegrass in the hay, or the length of the seed head, or the thickness of the stems.

"It's almost purely aesthetic," says John Kugler, a retired educator with Washington State University's Grant/Adams County extension, who has researched timothy hay. "It's the visual aspect, just like people want to buy potatoes that don't have scabs on them."

But the grade is what affects the price. That is why timothy growers fear rain, which bleaches out the green.

Kugler says a little rain, and a little bit of bleaching, don't reduce the nutritional value of the timothy.

"A horse doesn't care, and neither does a cow," says Bernth, president of Ward Rugh, about green timothy. His company is one of half a dozen brokers in Ellensburg that export timothy.

But as they say here, it's not the horse writing the check, but the owner.

Ellensburg hay

The international market for timothy hay out of Ellensburg began in 1971 with a bit of serendipity. It was an unexpected phone call to Ron Anderson, who, along with his dad, Clarence, founded Anderson Hay & Grain in Ellensburg. The company is a big player in the hay market.

Ron Anderson, now 80, had been flying around the country in the 1960s in his Cessna 180 to promote timothy hay.

He found markets at racetracks and Thoroughbred horse farms in Canada, California, the Midwest and numerous East Coast cities. A particular selling point, of course, was how green the Ellensburg hay was.

Anderson says that in 1971, he was contacted by Japanese investors who had been going to buy racehorses in Kentucky and saw the Ellensburg hay.

A company history that Anderson Hay published in 2010 for its 50th anniversary recounts, "Our hay always had the most beautiful color ... The Japanese were immediately captivated by the green color of the timothy and were particularly amazed by the length of time that the Washington state hay kept that attractive verdant hue."

And so in 1971, Anderson Hay shipped 200 tons of hay to Japan.

In 2009, it was 183,000 tons of timothy hay that were produced here and headed mostly overseas, says the county.

Now, every summer, the Japanese buyers descend on this town.

They poke the bales and the brokers pay close attention.

As John Kugler quoted an exporter in a research paper Kugler presented in 2004 at the National Alfalfa Symposium, "High quality timothy is whatever the customer says it is!"

Winds make difference

Bernth has been driving Miura, one of his clients, around to farms.

Says Bernth, "It's the only cash crop here that you can make a living at."

Miura is 45, a city guy, and had earned his college degree in international law. He then went to work for Yoshi, a large trading company.

He was assigned to the feed division and has worked in that section for the past 22 years. He comes to Ellensburg several times a year.

It is the Ellensburg winds that make the valley so desirable for growing timothy. "As much as we bitch and cuss the winds in this valley, it dries out the hay," says Jeff Brunson.

On this day, Miura was visiting the farm that Brunson runs with his wife, Jackie.

A hay farmer is always betting against the weather.

With Brunson's $2.5 million investment in farming equipment, a few days of no rain matter a lot. Brunson says he needs five days of good weather to dry, bale and store the hay.

If there is a drenching rain, the green color is washed out of the timothy. It turns straw-colored, and that top rating of "Super Premium Horse" is forever out of reach. The hay descends into feed for dairy cows.

"If it rains for a couple hours," Brunson said, "you're done."

Erik Lacitis: 206-464-2237 or elacitis@seattletimes.com


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2011年8月21日日曜日

Dollar tests ¥75.95; Tokyo mulls action - The Japan Times

The government and the Bank of Japan on Saturday began considering intervening in the market for the second time this month after the dollar briefly lost ground against the yen in New York on Friday, marking a postwar record low of ¥75.95.

The previous record was ¥76.25 set five months ago.

But market watchers are skeptical that a fresh but unilateral intervention would have a big impact on the market since the rising yen is stemming from concern over the U.S. and European economies. And coordinated intervention with U.S. and European authorities is not considered feasible.

Japan intervened in the market Aug. 4 by selling the yen and conducted additional monetary easing steps amid concern the strong yen will deal a blow to exporters struggling to recover from the March 11 quake and tsunami.

On Friday in New York, the dollar later recouped losses. At 5 p.m., it fetched ¥76.49-59, compared with ¥76.47-49 at 5 p.m. Friday in Tokyo.

Earlier remarks by Takehiko Nakao, vice finance minister for international affairs, were taken to mean Japanese authorities were hesitant to step into the market. This appeared to be behind the dollar's temporary plunge.

Nakao suggested in an interview Friday with The Wall Street Journal that while the government would take appropriate actions when necessary, it has no plans for frequent intervention.

The dollar skidded after his remarks were quoted by Reuters news agency, which said the interview encouraged yen buying.

Finance Minister Yoshihiko Noda has said Japan will take "measures in a resolute manner when necessary," hinting the possibility of a fresh intervention. But with Noda rumored to be the top candidate to run in the Democratic Party of Japan presidential race, some bureaucrats are skeptical if addressing the rising yen is Noda's main concern.

The credibility of the dollar has been challenged since the Aug. 5 historic downgrading of the AAA U.S. credit rating by Standard & Poor's.

The Group of Seven industrial economies subsequently issued a joint statement calling for a stable market, but its impact was limited as it contained no specific steps such as possible concerted market intervention.

The U.S. currency has also come under pressures since the U.S. central bank announced Aug. 9 it would maintain its effectively zero interest rate policy over an extended period. Some data released recently also pointed to a deteriorating U.S. economy.

The fiscal woes of the eurozone, triggered by the Greek debt fiasco, that have been generating concern about Europe's financial systems and economies have also prompted a fund shift to the yen, market players said.

Recent gyrations of global stock markets are also seen as encouraging buying of the yen, regarded as a relatively safe currency.

"Amid speculation that the Federal Reserve Board may convene an urgent meeting shortly, investors, factoring in the possibility of another monetary easing step, sold the dollar," a dealer said.


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Dollar tests ¥75.95; Tokyo mulls action

The government and the Bank of Japan on Saturday began considering intervening in the market for the second time this month after the dollar briefly lost ground against the yen in New York on Friday, marking a postwar record low of ¥75.95.

The previous record was ¥76.25 set five months ago.

But market watchers are skeptical that a fresh but unilateral intervention would have a big impact on the market since the rising yen is stemming from concern over the U.S. and European economies. And coordinated intervention with U.S. and European authorities is not considered feasible.

Japan intervened in the market Aug. 4 by selling the yen and conducted additional monetary easing steps amid concern the strong yen will deal a blow to exporters struggling to recover from the March 11 quake and tsunami.

On Friday in New York, the dollar later recouped losses. At 5 p.m., it fetched ¥76.49-59, compared with ¥76.47-49 at 5 p.m. Friday in Tokyo.

Earlier remarks by Takehiko Nakao, vice finance minister for international affairs, were taken to mean Japanese authorities were hesitant to step into the market. This appeared to be behind the dollar's temporary plunge.

Nakao suggested in an interview Friday with The Wall Street Journal that while the government would take appropriate actions when necessary, it has no plans for frequent intervention.

The dollar skidded after his remarks were quoted by Reuters news agency, which said the interview encouraged yen buying.

Finance Minister Yoshihiko Noda has said Japan will take "measures in a resolute manner when necessary," hinting the possibility of a fresh intervention. But with Noda rumored to be the top candidate to run in the Democratic Party of Japan presidential race, some bureaucrats are skeptical if addressing the rising yen is Noda's main concern.

The credibility of the dollar has been challenged since the Aug. 5 historic downgrading of the AAA U.S. credit rating by Standard & Poor's.

The Group of Seven industrial economies subsequently issued a joint statement calling for a stable market, but its impact was limited as it contained no specific steps such as possible concerted market intervention.

The U.S. currency has also come under pressures since the U.S. central bank announced Aug. 9 it would maintain its effectively zero interest rate policy over an extended period. Some data released recently also pointed to a deteriorating U.S. economy.

The fiscal woes of the eurozone, triggered by the Greek debt fiasco, that have been generating concern about Europe's financial systems and economies have also prompted a fund shift to the yen, market players said.

Recent gyrations of global stock markets are also seen as encouraging buying of the yen, regarded as a relatively safe currency.

"Amid speculation that the Federal Reserve Board may convene an urgent meeting shortly, investors, factoring in the possibility of another monetary easing step, sold the dollar," a dealer said.


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Dollar sinks to record low against Japanese yen in NY - Mainichi Daily News

NEW YORK (Kyodo) -- The U.S. dollar briefly lost ground against the Japanese currency in New York on Friday to mark a postwar record low of 75.95 yen, breaching the previous record of 76.25 yen set five months ago, on concern over the U.S. and European economies.

The sharp rise in the yen is expected to prompt Japan's monetary authorities to consider taking measures such as intervening in the market to sell the yen as they did Aug. 4 and additional monetary easing measures in an effort to weaken the Japanese currency.

There is also concern the strong yen will deal a blow to Japan's exporters as the country struggles to recover from the March 11 earthquake and tsunami.

On Friday in New York, the dollar later recouped losses. At 5 p.m., it fetched 76.49-59 yen, compared with 76.47-49 yen at 5 p.m. Friday in Tokyo.

Remarks by Japan's top financial diplomat Takehiko Nakao that were taken to mean Japanese monetary authorities were hesitant to step into the market appeared to be behind the dollar's temporary plunge.

The vice finance minister for international affairs suggested in an interview with The Wall Street Journal on Friday that while the Japanese government would take appropriate actions when necessary, it has no plan to intervene frequently.

The dollar skidded after his remarks were quoted by Reuters news agency, which said the interview encouraged yen buying.

The credibility of the dollar has been challenged since the Aug. 5 historic downgrading of the United States' triple-A U.S. credit rating.

The Group of Seven (G-7) industrial economies subsequently issued a joint statement calling for a stable market but its impact was limited as it contained no specific steps such as possible concerted market intervention.

The U.S. currency has also come under pressures since the U.S. central bank on Aug. 9 announced it would maintain its effectively zero interest rate policy over an extended period. Some data released recently also pointed to a deteriorating U.S. economy.

The fiscal woes of the euroland, triggered by the Greek debt fiasco, that have been generating concern about Europe's financial systems and economies have also prompting a fund shift to the Japanese yen, market players said.

Recent gyrations of global stock markets are also seen as encouraging buying of the yen, regarded as a relatively safe currency.

"Amid speculation that the Federal Reserve Board may convene an urgent meeting shortly, investors, factoring in the possibility of another monetary easing step, sold the dollar," a dealer said.

New York stocks lost ground sharply Friday, sending the Dow Jones index down 1.57 percent, or 172.93 points, to finish at 10,817.65, on the heels of weak share prices in Asia. The tech-heavy Nasdaq Composit Index finished 1.62 percent or 38.59 points lower at 2,341.84.

The previous low of the dollar at 76.25 yen was posted March 17 in Sydney, just days after the March 11 earthquake and tsunami disaster hit Japan. The G-7 at that time took rarely seen concerted action to step into the market to weaken the yen.

On Aug. 4, the Japanese government intervened in the currency market on its own, while the Japanese central bank moved to further ease credit, pushing the dollar temporarily higher.


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