Irish farming faces big shake up

Irish farm minister Mary Coughlan

One sign of the onset of big changes in European farming is a radical shake up in Irish farm policy. Ireland has generally been a staunch ally of France on CAP issues, while constituency politics reinforced by the STV voting system has ensured that farm interests have been paid due regard by policy makers.

However, farm minister Mary Coughlan has launched a new agri-food policy. She said that policy needed to reflect the reality of decoupled payments, different consumer lifestyles and increasing competition arising from a new WTO deal. Competitiveness, she said, was a life and death issue for farms and food firms.

Her message has been reinforced by the Assistant Secretary General of the Department of Food and Agriculture, Tony Burke. He warned in a speech in London that Ireland would have to be flexible in facing up to the shock of lower producer prices and increased imports in the years to come. 'Agriculture has to become a modern, hi-tech, consumer-drive process', he declared. In a country that produces nine times as much beef as it needs, 12,000 tonnes were imported from South America last year, reflecting the growth of fierce competition on the world market.

The first consequence of the new policy has been the establishment of a commercial milk quota exchange. Coughlan argued that a new, market-led approach to quota transfer was required to put the dairy sector on a competitive footing for the future. At present less than 4% of the milk produced in Ireland is restructured annually and there is little incentive to transfer quota.

However, traditional rural lobby, the Irish Creamery Suppliers' Association, described the move as 'rash' and 'utter madness'. Which probably means that Coughlan has got it about right.Any source

France reasserts CAP leadership

France has sort to reassert its traditional leadership of European agricultural policy with a paper presented to the latest Farm Council setting out a vision for the future of the CAP. The paper can be seen as a riposte to the liberal agenda set out by Britain in a paper of its own last November.

The French paper received a far more favourable reception than that from Britain. Only Denmark, Sweden, Latvia and Britain spoke out against the French paper which was endorsed by Germany, Italy and Spain among other countries. A centrepiece of the paper was a call to shore up the incomes of farmers in the face of increasingly tough markets.

Meanwhile, Commissioner Fischer Boel's head of cabinet, Poul Skytte Christopherssen implicitly criticised Britain by stating that 'complex questions about the future of agricultural policy are not boiled down to the single issue of money.' However, he insisted that his boss 'has always been a reformer. She remains, and will remain, a reformer.' Maybe. But she is no Franz Fischler in terms of having a comprehensive vision for the overhaul of the CAP.Any source

PRODUCER OF "A FOREIGN AFFAIR" SUES MYRIAD PICTURES FOR FRAUD AND BREACH OF CONTRACT

We have filed suit on behalf of our client Black and White Films, Inc., the producer of the independent feature A Foreign Affair, starring David Arquette, Tim Blake Nelson and Emily Mortimer. Our suit was filed suit in California Superior Court against international sales distributor Myriad Pictures, Inc.

The suit alleges that Myriad failed to pay $110,000 of a $200,000 advance as required by the terms of its distribution agreement. According to the suit, Myriad also failed to pay $25,000 for a Hi-Def to film transfer, and breached the agreement by failing to provide the producer with quarterly accounting statements. The Plaintiff is seeking damages in excess of $163,000 plus interest and punitive damages.

The motion picture (released on home video as 2 Brothers & a Bride) was the debut feature of director Helmut Schleppi, and was written by Geert Heetebrij and follows two naive brothers from small-town America (Arquette, Nelson) who, after their doting mother passes away, travel to Russia as part of a singles program, hoping to find a traditionally minded woman like their mom. The film premiered at the January 2003 Sundance Film Festival and was also shown at the May 2003 Cannes Film Market. The film was released theatrically in the United States in May 2004.

"We completed delivery of the Picture to Myriad in April 2004, at which time the balance of the advance was due," according to Geert Heetebrij the writer/producer of the picture. "Myriad's excuse for their failure to pay us has been that they are having cash flow problems."

Mark Litwak, attorney for the Plaintiff said, "Despite repeated requests over almost two years, Myriad has refused to live up to its contractual obligations, leaving the Plaintiff no choice but to file this suit."


Marilyn Hotchkiss’ Ballroom Dancing and Charm School opens on March 31, 2006

Congratulations to our clients Art Klein and Eileen Craft, producers of Marilyn Hotchkiss' Ballroom Dancing & Charm School which will open in more than 50 cities on March 31, 2006. A Sundance film festival favorite, the film is being distributed by Samuel Goldwyn Films.

The film stars Robert Carlyle, Marisa Tomei, Mary Steenburgen, Sean Astin, Donnie Wahlberg, David Paymer, Sonia Braga, Ernie Hudson, Danny DeVito and John Goodman.

for more details on the movie, and to see a trailer.

DeNadie Wins Mexican Academy Award

Congratulations to our client, Tin Dirdamal, whose film DeNadie won the Mexican Academy Award for best documentary.

The film also won the World Cinema Documentary Audience Award at the 2006 Sundance Film Festival.

The film follows immigrants from South America as they traverse Mexico on a dangerous journey to try to reach the Promised Land, the United States. While there have been films that have explored the poor treatment and abuse of Mexican immigrants in the United States, this is the first film I have seen that has shown how immigrants from Honduras and Guatemala are robbed and beaten by both vicious Mexican gangs and the police.

Read more about the award at:

http://www.academiamexicana.com/academia/48/ganadores.html

http://www.golemproducciones.com/industria/nominacionarieles_0206.htm

Read more about the film at: http://www.indiewire.com/people/2006/01/park_city_06_ti.htmlAny source

Now Arla enrages Danes in cartoons row

Danish dairy giant Arla has been trying to placate consumers in the Middle East insulted by the publication of cartoons of the Prophet Mohammad. But in trying to build bridges with Islam it has upset some consumers in Denmark.

Arla placed adverts in 25 Middle Eastern newspapers rejecting the widely held Danish view that the publication of the drawings was defensible as freedom of expression and should not be apologised for. The action was praised by a meeting of influential Islamic sholars in Bahrain. The conference decided to open talks with the company which could pave the way for an end to a boycott that Arla says is likely to cost it €53.6m in lost sales this year.

Back in Denmark, howver, some domestic consumers are outraged at what they see as an abandonment of Danish values, arguing that Arla's need to make money has been put before freedom of expression. 'Some of our consumers are furious', admitted an Arla spokesman. 'We don't often get this many consumer responses about the same issue within a few days.'Any source

Tescophobia

This term will not mean much to the preponderantly international readership of this blog, so some explanation is necessary. Britain has a highly concentrated grocery retail sector with some 30% of the market held by one firm, Tesco (which has some international presence in Eastern Europe, Thailand etc.) The next two biggest players in terms of market share are Sainsbury's and Asda which is owned by Wal-Mart.
Some versions of the theory of monopoly would argue that 30% comes close to being a dominant position and the UK's Competition Commission has launched yet another investigation into the retail grocery market.

Tesco used to be known as the 'pile it high and sell it cheap' store in comparison to the more up market Sainsbury's, but it has cleverly positioned itself in mid-market, overtaking the faltering (although now recovering) Sainsbury's in the process. Marks and Spencers and Waitrose (part of the John Lewis Partnership) tend to be more up market, the Co-op appeals to the ethical consumer, while Asda and Morrisons compete on price.

A number of charges are laid against Tesco and the other big supermarkets. One is that they use their market dominant position to squeeze the margins offered to processors and farmers, while continually requiring higher quality standards. However, their suppliers are understandably unwilling to come forward with evidence of demands for a range of additional payments, e.g., for store openings.

Another charge, and one that has led to the current investigation, is that by opening smaller outlets in town centres (rather than their usual edge of town locations) they are driving out of business convenience (or what Americans call 'mom and pop') stores. This has received a receptive hearing from the media and legislators, although in my experience many of these stores offer high prices and poor service. However, never let market forces get in the way of an emotive argument.

I have to confess that we do our shopping at Tesco's every week. There are those who argue that it would be cheaper if one went to a succession of small shops and that one would also get better quality produce. This may be the case, but the only specialist shop we use regularly is a fishmonger. What the critics forget is the time costs that specialist shopping entails. In today's society where many people are cash rich and time poor, that is a relevant consideration.

Government has also been very reluctant to act against the supermarkets because they bring benefits to consumers by holding down prices through competition and the use of their market position. This helps to restrain inflation and particularly benefits a key New Labour constituency, working people with families.

Tescophobia is rife among the 'chattering classes', i.e., the articulate and well educated members of the class with access to the media. But, as Tesco themselves say, what shoppers do is more important than what they say and they continue to pour through the doors of the supermarkets.

Where Tesco may be vulnerable to a competition enquiry is its possession of 'land banks' of attractive retail sites which it is alleged it hoards to keep rivals out of the market. Sometimes land is very scarce in prime locations, however. Gerrards Cross is one of the richest communities in England. The only place Tesco could find to build a store was over the railway line. They built a tunnel over it which then collapsed, fortunately with no trains going through it.

Supermarkets like Tesco are trying to expand their global reach, while France has relaxed laws designed to protect small shops, so these are not purely British issues.
Globalisation and concentration in retailing is likely to be a continuing trend.Any source

Big shakeup faces EU dairy sector

Shoppers visiting Asda (Wal-Mart owned) stores in the UK have been greeted by dairy farmers complaining about the low prices they receive for their milk and the margin claimed by the processors and retailers.

Some dairy farmers are certainly finding it hard to make a profit, but bleaker times may be ahead for the sector across the European Union. If the planned phase out of export subsidies goes ahead, let alone tariff reductions, dairying will be hard hit. It depends to a large degree to the export of surplus product on to the world market under written by EU subsidies.

The EU is closely behind the climatically favoured Kiwis as the world's leading exporter of butter and skimmed milk powder. However, whereas New Zealand's success reflects its lush pastures and absence of really cold weather in most of the country, the EU spends close to €1 billion a year to help its exports on the world market. When export subsidies go 11% of total EU butter production and 18% of skimmed milk powder will have to be absorbed on the domestic market.

When the current reform programme is completed in July 2007 the EU butter intervention price will stand at €2463 per tonne. Calculating the world market price is notoriously difficult because in practice there is no one world price, but Dairy Markets estimate it at around €1570 to €1650 per tonne. The world market price could well go up, particularly if dairy production falls in Europe, but not to an extent that would close a gap of €800 a tonne or more.

There may be particular implications for the UK market. Dairy UK chairman David Curry has warned that 'There is a danger that if the export route is closed, big volumes of Irish milk will be seeking a home on the British market at heavily discounted prices.'

All this helps to explain why the EU is so keen to keep as many tariff lines as possible within the 'sensitive' products designation in the Doha Round talks and also to ensure that any tariff cuts for sensitive products are as low as possible. What the EU wants is to limit the amount of trade in the sector while retaining as high a level of domestic support as possible. One reason it has painted itself into a corner is the decision to retain dairy quotas, an artificial market restraint if there ever was one, until the middle of the next decade.

However, other products like beef and poultry meat also have claims for 'sensitive' treatment, so dairying is unlikely to get all the protection it wants. Which is perhaps why it is the most efficient and innovative dairy farmers in the UK are getting out of the business and employing their capital where it can earn a better return. Those who cannot think of any alternative activity tend to stay on and try to eke out a living. They are the farmers likely to be found demonstrating at Asda (although some of their fellow farmers have argued that they should be dropped as Asda suppliers). The irrationality of exit patterns could be regarded as a market failure.Any source

Be very, very afraid

David Richardson is an East Anglian arable farmer who has a regular column in Farmers Weekly. I met him once and he is a nice guy. But he is also an eloquent exponent of the notion that farmers are hard done by and should continue to receive substantial subsidies from a grateful population. One of his regular arguments is that the food security arguments used when the common market was founded are just as valid today, only now the threat comes from terrorists rather than the Soviet Union. Exactly what terrorist incident would disrupt the food supply chain on a massive scale is never quite explained.

So one has to be very worried when Richardson, who is usually whingeing about the failure of Defra to 'back' farmers, praises a speech by an EU commissioner. Even more so when the commissioner in question is Peter Mandelson who has recently been showing his protectionist colours by using anti-dumping legislation to stop European consumers enjoying cheap shoes from China. 'Is Mandelson our mate?' is the heading on Richardson's column who is depicted with the kind of stick that was once used for poking pigs and the kind of cloth cap that only elderly farmers wear.

Well, is Mandy the farmers' new friend? What he did tell the National Farmers' Union annual conference was that the CAP is not obsolete and that agriculture as a sector cannot be treated like all others. Why not? Because 'It is too intimately connected to wider issues such as the environment, food security and the future of the countryside.' The reference to food security was particularly worrying as it can be used as a portmenteau justification for limitless subsidies, whereas one can attempt some valuation of beneficial externalities such as cherished landscapes.

The CAP has rightly been under the cosh for its impact on the Global South in recent years, but Mandy gave it large in the manner of his famous 'I am not a quitter' speech to all those softies with a misplaced concern about poor farmers. 'I am not going to be swayed by lazy political correctness into giving ground in agriculture simply because this will please a vociferous lobby that has misunderstood what is really need to tackle word poverty.' So Oxfam and all the other Global South NGOs can tear up their research right now.

Where he did encourage reformers was his declaration that it didn't make sense to spend over 40% of the Community budget on agriculture. He also recognised the reality that China was becoming the industrial workshop of the world, Brazil its most competitive supplier of bulk commodities and India a great service provider. The future for Europe was in providing top quality, knowledge intensive, value added food among other goods and services. In that he is right and David Richardson with his calls for shoring up self-sufficiency and cutting imports is wrong. The global food economy is here, there is plenty of room for high quality local products (backed up by a system of Geographical Indications), but this is time to cut back agricultural protectionism not to reinforce it. There is still everything to play for in the Doha Round.Any source

Product Placement Article in Delaware Lawyer

Mark has written an in-depth article about product placement in this month’s Delaware Lawyer magazine.

What do the blockbuster movies “Star Wars” and “Mr. and Mrs. Smith” have in common with television shows such as “American Idol?” They are classic examples of product placement – the practice of advertisers inserting their products in movies and television shows in order to build brand awareness and increase sales. The product placement market is projected to grow at a compound annual rate of 14.9% from 2004 to 2009, reaching an estimated $6.94 billion.

By tying licensing and merchandising opportunities directly into movies and TV shows, product placement blurs the line between entertainment and advertising. As a result, it is becoming increasingly difficult to distinguish commercial speech (i.e., speech that proposes a commercial transaction) from non-commercial speech (i.e., speech with artistic or political content).

Traditionally courts have extended greater protection to non-commercial speech, although restrictions on commercial speech may be invalidated if they unconstitutionally limit dissemination of information to the public. This article explores the legal implications of the increasingly intertwined relationship between advertising and entertainment.

To read the full article, go to:

http://www.marklitwak.com/downloads/ProductsAsStars.pdf



RISKY BUSINESS SEMINAR COMES TO DALLAS

Mark will be bringing his one day Risky Business seminar to Dallas on April 8 at Southern Methodist University.

Those who attend this comprehensive all day seminar will learn how independent films are financed and distributed. Topics include organizing your company, raising financing via pre-sales, debt and limited partnerships, negotiating tactics, principal terms of the acquisition/distribution agreement, cross-collateralization and creative accounting. Particular attention is paid to how producers and filmmakers can protect their interests by watering down warranties, getting added to the E& O policy, using lab access letter to retain possession of the negative, and utilizing termination and arbitration clauses.

This seminar is being organized by Random Order Entertainment and is co-sponsored by the Dallas Producers Association, Indie Slate magazine, MLD Equipment, MPS Studios, Texas Association of Film/Tape Professionals (TAFTP) and Women in Film - Dallas.

The cost to attend the seminar is $99, $65 for students and $79 for DPA, TAFTP and WIF members. For more info go to: http://www.randomorder.net/


METHOD FEST FILM FESTIVAL

Congratulations to our clients whose films were selected for the upcoming Method Fest film festival. This year three clients have had their films selected to show at Method Fest.

The 8th annual The Method Fest independent film festival will take place March 31 - April 7 in Calabasas. The Method Fest is the only film festival in America that puts its focus on the actor. The Method Fest is a festival of discovery, seeking story-driven films showcasing breakout acting performances by emerging stars and career-defining roles by established actors.

Our clients’ films are:

Confess

USA, 87 MIN, WEST COAST PREMIERE
Director: Stefan Schaefer
Writer: Stefan Schaefer
Producer: Benjamin Odell, Jonathan Stern
Starring: Eugene Byrd, Ali Larter, Melissa Leo, Glenn Fitzgerald, William Sadler

CONFESS charts the exploits of disillusioned ex-hacker Terell Lessor (Eugene Byrd). Employing strategically placed spy-cams, he captures compromising footage of those who slighted him in the past, broadcasting edits via the internet. Recognizing the power of this model, and working in tandem with accomplice Olivia (Ali Larter), he targets CEOs, politicians, and members of the power elite. Soon Terell's every action is front-page news, law enforcement has labeled him a new breed of terrorist, and the movement he spawned is spiraling out of control.

11:59

USA, 104 MIN
Director: Jamin Winans
Writer: Jamin Winans
Producer: Joe Sekiya

Starring: Raymond Andrew Bailey, Laura Fuller, Megan Heffernan, Liz Cunningham, Chris Kelly, Hayz II, Rosa Vasquez

A jaded news photojournalist, Aaaron Dougherty, has just broken the national news story of the year. After suddenly waking up in a field in the middle of nowhere, with no recollection of the past 24 hours, Aaron is forced to reexamine his life before understanding the mysterious events of his lost time.

The Way Back Home

USA, 93 MIN,
Director: Reza Badiyi
Writer: Michael Houston King
Producer: Michael Houston King, Paul Sirmons
Starring: Michael Houston King, Julie Harris, Tessie Santiago, Ruby Dee, Danny Nucci, Deezer D, Amy Landers

Spencer Krane has it all, the great job, the model wife, the great NY lifestyle. But after the sudden death of his wife he returns to a small southern town to take care of his grandmother who has suffered a stroke. Over the course of a summer back home in this small Florida town he reevaluates his life and develops a sense of hope for his future.

The film schedule and additional information is available at: http://www.methodfest.com/Any source