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POD I - GRAIN 8 - MARCH 2013 www.facebook.com/cicilsiptic www.twitter.com/cicilsiptic www.cicilsiptic.org INTERNATIONAL PULSE TRADE & INDUSTRIES CONFEDERATION AUSTRALIAN GOVERNMENT RECOMMENDS HIGHER PULSE CONSUMPTION FOR A HEALTHY DIET CHICKPEA CODE CRACKED CATCHING UP ON CANADIAN RESEARCH - AN AUSTRALIAN VIEWPOINT JENNY DAVIDSON SOUTH AUSTRALIAN RESEARCH & DEVELOPMENT INSTITUTE (SARDI) GLOBAL AGRICULTURE COMMODITY MARKET REPORT G. CHANDRASHEKHAR ONE MAN’S MEAT IS ANOTHER MAN’S POISON ANDREW JACOBS CHANA TECHNICAL ANALYSIS Australian Guidelines SUMMARY Dietary EAT FOR HEALTH

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Pod I - GraIn 8 - March 2013

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INTERNATIONAL PULSE TRADE &INDUSTRIES CONFEDERATION

AUSTRALIAN GOVERNMENTRECOMMENDS HIGHERPULSE CONSUMPTION

FOR A HEALTHY DIET

CHICkPEaCODE CRACkED

CaTCHING UP ONCaNadIaN RESEaRCH - AN AUSTRALIAN VIEwpOINTJenny DaviDson south australian research & Development institute (sarDi)

GLObaL aGRICULTURECOMMODITY

MARkET REpORTG. chanDrashekhar

ONE MaN’S MEaT ISaNOTHER MaN’S POISON

anDrew Jacobs

CHaNaTECHNICAL

ANALYSIS

Australian

GuidelinesSUMMARY

DietaryEAT FOR HEALTH

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Australian

GuidelinesSUMMARY

Dietary

EAT FOR HEALTH

Dear industry colleagues, i am pleased to present the march 2013 issue of the pulse pod in which we once again carry a broad range of articles across many topics of importance to our global industry.

amongst the other articles of interest this month, our editor, G. chandrashekhar provides a global agricultural market outlook with some sobering thoughts for us all. also in this issue andrew Jacobs of portman shares some thoughts on the “horsemeat for beef” substitution scandal that has rocked the global food market in recent times, and raises some serious food for thought for all of us in the pulses sector. on the other hand, while a cloud hangs over the supply of quality meat products, pulses are becoming increasingly popular as evidenced by many recent publications, including the latest australian government dietary guidelines in which consumption of pulses is highly recommended, and which we reprint here.

in another important and highly interesting article we have a report on the exciting results of work carried out by the icrisat international chickpea Genome sequencing consortium in deciphering the chick pea genome – a project that will have far reaching impact on plant breeding to cope with climate change and the demands for future global food security. the research was carried out in close partnership with scientists at the university of california-Davis (usa) and bGi-shenzhen (china), and with the key involvement of national partners in australia, canada, the czech republic, Germany, india, spain and the usa.

The final countdown to CICILS 50th Anniversary Convention in Singapore has started and as we firm up the program and panelists it is clear that this will be an event to remember. With almost 500 registrations already, we confidently expect another record attendance at this special event. organisation of the logistics, venue and catering for such a huge occasion is an enormous task, so on behalf of the cicils team i urge those of you who are yet to register to do so as soon as possible. i look forward with pleasure to seeing you all in singapore from April 15-18. Hakan bahceciPRESIdENT

FROM THEpresiDent’sDESk

march 2013

The Pulse Pod monthly eMagazine: published by: CICILS-IpTIC, Dubai, Editor: G. Chandrashekhar, Designed by: ENH Media

Please email to:[email protected]

Disclaimer:

No material contained in this emagazine may be published or broadcast, whether whole or in part, without the prior written permission of CICILS IPTIC or in the case of third party materials, the owner of that content.

You may not alter or remove any trademark, copyright or other notice from copies of the content. The content of this emagazine provided for information purposes only. It reflects the views of individual authors of each article and is not necessarily reflective of theofficial views or policies of CICILS IPTIC. While every care is taken, neither the editor no r C IC ILS IPT IC can gua ran tee theaccuracy of any information contained herein.

Readers should use their own judgments and be aware that neither the editor norCICILS IPTIC will accept liability for any loss, damage, cost or expense incurred or arising by reason of any person using orrelying on the information on this emagazine.

Readers are welcome to send

their views, comments and suggestions.

the australian Government national health and medical research council (nhmrc) released the new revised “Australian Dietary Guidelines” publication on Monday 18 February 2013.

an electronic copy of “australian Dietary Guidelines” is available at www.eatforhealth.gov.au. if you go to website home page and click on the top item of the left hand menu it will take you to the new guidelines where you will see that on top of the list of recommendations is increased consumption of vegetables, legumes (pulses) and beans.

“australian Dietary Guidelines” provides information on the types and amounts of foods, food groups and dietary patterns that aim to promote health and wellbeing, reduce the risk of diet-related conditions and reduce the risk of chronic disease. the Guidelines are for use by health professionals, policy makers, educators, food manufacturers, food retailers and researchers.

the content of “australian Dietary Guidelines” applies to all healthy australians, as well as those with common diet-related risk factors such as being overweight. they do not apply to people who need special dietary advice for a medical condition, or to the frail elderly and this is made clear in the Guidelines. educator and consumer resources including summary booklets, brochures, posters, magnets and an interactive website are expected to be available shortly as part of the eat for health program. For any further information, please do not hesitate to contact ms emma breen on +61 2 6217 9466 or by email at [email protected]

aUSTRaLIaNGOVERNMENTRECOMMENdS HIGHERPULSE CONSUMPTIONFOR a HEaLTHY dIET

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Jenny Davidson attended the 9th cana-dian pulse research workshop at niagara Falls, ontario, canada in november 2012. the workshop, which followed the second meeting of the science advisory board for the canadian pulse cluster, covered a broad spectrum of the pulse research work occurring in canada. there were 176 researchers and pulse industry representatives from across canada in at-tendance, with 44 oral presentations and 76 posters presented.

key observations nearly 30% of abstracts at the workshop and cluster meeting focussed on pulses

and Food, nutrition, human health, and the benefits of pulses in the diet. This research is being conducted through collaboration between the Guelph Food research centre based in Guelph, ontario, and Faculties of medicine or

pharmacy in the universities of toronto, saskatchewan and mount saint vincent, and cornell in new york. Funding for this research is jointly financed by the Cana-dian pulse grower associations and the canadian government. the emphasis on this research is to achieve a health focus for use in marketing pulse products to north america.

in addition these agencies are investigat-ing biofortification of lentils (and other pulses) as a means of introducing iron and other nutrients to nutrient deficient diets around the world. other studies ex-plore the impact of food processing (e.g.

milling methods, moisture levels, micro-nisation or heat treatment using infra red radiation) on the properties of the pulse grains.

Studies on the health benefits of eating

pulse grains identified improvements in cholesterol, arterial stiffness, blood flow and weight loss. Pulse flour was found to have similar health properties to whole grains. replacing traditional products in processed foods with pulse products enhanced the health benefits, without any loss of flavour or product acceptability. Pulse flours can be used as value-added food ingredients in functional foods aimed at moderating glycaemic response and increasing satiety.

a lentil based sports bar has been devel-oped that has low glycaemic index and can improve metabolism and perfor-

mance in a variety of endurance sports. this sports bar is being marketed through university football teams in canada.

murad al-katib, president and ceo of Alliance Grain Traders Inc., identified the

CaTCHING UP ONCaNadIaN RESEaRCH -

AN AUSTRALIAN VIEwpOINTJenny DaviDson south australian research anD Development institute (sarDi)

importance of marketing in the pulse industry. alliance Grain traders has 29 processing facilities for pulses and other products, across canada, turkey, united states, australia (australian milling Group), china and south africa, as well as a European sales office.

new markets into the usa and europe are rapidly increasing, i.e. bean con-sumption is increasing in usa due to the hispanic population, and hommus from chickpea is the fastest growing pulse product in the western world. other prod-ucts such as lentil chips and hommus chips are being produced for the north american market.

the food industry is particularly interested in the profile of pulse grains and using sustainable production as a marketing opportunity i.e. the product is gluten free, has a low allergy profile, is high in

micronutrients, low in fat, is a vegetarian food source, has low glycaemic index, no genetic modification, has compara-tively low energy and low water usage in production.

Pulse ingredients such as starch, flour, split grain, protein and fibre are increas-

ingly being used in mainstream products. pulses are used as a non meat protein source in pet food and pulse flour is used in pasta. pulse commodities are be-ing sold as an inclusion protein product rather than as a substitute for wheat, rice or corn - avoiding a competitive market place.

professor bert vandenberg, lentil and faba bean breeder, university of sas-katchewan, focussed on possible compe-tition to pulse crops in canada. currently these crops make up 13.5% of the arable land in canada (the industry aims for 20%

of the arable land), mainly in the provinc-es of saskatchewan and alberta. how-ever, there is the potential for large scale expansion of pulse production in eastern europe, e.g. kazakhstan, ukraine, where canadian varieties are already grown. in the 1930’s russia grew one million acres of lentils, and this production capacity,

combined with proximity to markets in the middle east and asian subcontinent presents a significant competitor to the current exporting countries i.e. canada, australia and china (the latter exports dry beans). research on pulse crops is also likely to expand in these areas, and col-laborative partnerships may be necessary to maintain markets.

(courtesy: pulse breeding australia - reproduced with thanks from pba sum-mer 2013 newsletter)

stuDies on the health beneFits oF eatinG pulse GrainsiDentiFieD improvements in cholesterol,

arterial stiFFness, blooD Flow anD weiGht loss.

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in the most recent issue of the highest-ranked biotechnology journal, nature biotechnology, the complete sequencing of the chickpea genome was announced. this landmark achievement is the hard work of a consortium of 49 scientists from 23 organizations in 10 countries over 2.5 years (see credits at bottom), led by ICRISAT.like decoding the script of an ancient civilization, this breakthrough provides deep evolutionary insight, and fundamentally elevates future possibilities for genetically improving this crop. chickpea is the most important pulse crop of the developing world (‘pulse’ means legumes whose grains are primarily consumed by humans, as opposed to being processed for oil extraction as in soybean and groundnut).

Musical genesa genome is the organism’s full set of chromosomes that contain its genes. those genes are coded in just four basic molecules, called nucleotides. how could a complex organism be coded in just four molecules? it is the arrangement of those molecules in different sequences that makes their code unique. think of how a com-poser can write many different songs from the same few notes by sequencing those notes in different orders and varying their timing and expression.

an explosion of insightyet while genes are differentiated from each other by their nucleo-tide sequences, they also share certain short ‘control’ sequences in common, such as those that turn the gene’s function on or off. knowing this, scientists counted how often such control sequences occurred in the chickpea genome. this and other information ena-bled them to estimate that the chickpea genome contains 28,269 genes.

this explosion of information is like rocket fuel for crop improve-ment. prior to this only about 200 chickpea genes had been mapped, using time-consuming conventional methods. mapping the locations of tens of thousands of genes tremendously enlarges the toolkit of crop improvement.

Butterflies and branchesresearchers also used the Dna sequence data to peer deeply into chickpea’s evolutionary past. it is known that certain types of mutations that don’t affect the functioning of genes occur at a fairly constant rate over long periods of evolutionary time. by counting the differences in such mutations between related plant groups, re-searchers can estimate how long ago those groups branched away from each other in the evolutionary tree of life.

using this approach they were able to estimate that chickpea’s major ancestral group, called the papilionoideae (named after the root word for ‘butterfly’ – many species in this group sport beautiful wing-like flowers) broke away from the original legume family ‘tree trunk’ about 54 million years ago. Another major evolutionary mile-stone was when chickpea branched away from the progenitors of a recent close relative, medicago truncatula (a mediterranean clover related to alfalfa); they estimated this to have occurred about 10-20 million years ago.

blocks talkin addition to genomic differences, scientists are also interested in genomic similarities, which they call ‘synteny’ between genomes. the more similar two species’ Dna sequences are, the more closely related they must be. one way to measure synteny is to compare the locations of similar blocks of Dna sequences. this approach yielded the two figures below.

Despite first impressions, these are not abstract watercolors from a paris museum; instead, they tell a grand story of evolution. please allow me to explain.

For visual simplicity the figures represent the eight chromosomes as if they were laid end-to-end; the eight colors correspond to chick-pea’s eight chromosomes. the colored lines connect chickpea’s blocks to their matching sequences on the chromosomes of two ‘cool-season’ legumes (medicago truncatula and lotus japonicus) in the upper diagram, and two ‘warm-season’ legumes, soybean and pigeonpea, in the lower diagram.

the blocks appear less dispersed across genomes in the upper diagram. this makes sense because chickpea evolved as a cool-season legume and thus should share a closer genomic heritage with those species. evolution resulted in greater divergence between chickpea and the warm-season species (lower diagram).I find these diagrams breathtaking because at a single glance, they capture the vast sweep of evolutionary time and space at its most fundamental level – the changes wrought in the genetic code.

Research primes the pumpagricultural development often attracts more support than research, because it delivers impacts more quickly. but development rides on the back of yesteryear’s research; likewise, today’s research primes the pump for future development and big breakthroughs. the chick-pea map will help scientists better understand how genes make crops more tolerant to heat and drought, for example; and through plant breeding, that knowledge will help the poor adapt to the loom-ing threat of climate change.

in our desire for ‘quick wins’ today, let us not forget to also invest in the ‘big wins’ of tomorrow.________________________________________the international chickpea Genome sequencing consortium was led by icrisat in close partnership with scientists at the university of california-Davis (usa) and bGi-shenzhen (china), and with the key involvement of national partners in australia, canada, the czech republic, Germany, india, spain and the usa.

CHICkPEaCOdE CRaCkEd

INFORMATION ESTIMATES THAT THE CHICkpEA GENOME CONTAINS 28,269 GENES.THIS ExpLOSION OFINFORMATION IS LIkE ROCkET FUEL FOR CROpIMpROVEMENT.pRIOR TO THIS ONLY AbOUT 200 CHICk-pEA GENES HAD bEEN MAppED.

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is liquidity-driven commodity price boom coming to an end? this is a question everyone with exposure to markets is asking.

the last couple of weeks have witnessed broad-based price de-clines across the global commodity markets, led by precious and base metals.

even energy prices have softened despite lingering geopolitical concerns. agriculture has not been an exception. prices of major farm goods including corn, wheat, oilseeds, sugar and cotton have softened.

with southern hemisphere crop prospects looking good in gen-eral, there is considerable easing of supply tightness of last several months that resulted from the us midwest drought last year.

a couple of weeks ago, there was a hint that the us Federal reserve may bring Qe3 (quantitative easing) to an end at some stage. the market participants interpreted the release of the us Fomc minutes as hawkish and expected liquidity injections to end sooner. if the asset purchase program is either restricted or withdrawn, it will re-duce liquidity in the marketplace. a logical outcome will be elevated demand for the dollar which in turn will lend strength to the currency. long positions on the bourses – built on basis of high liquidity – will run the risk of liquidation. less-committed longs have already exited

the market.

however, from a us monetary policy perspective, how soon is ‘soon’ is anybody’s guess. For the us ‘easy money’ policy to end, a sustained flow of positive macro data including employment num-bers is necessary.

the latest is that in his semi-annual testimony to congress, Fed chairman ben bernanke gave little indication that asset purchase would be slowed or stopped anytime soon. indeed, given that downside risks to the us GDp, a potential reduction in the pace of such purchase could come only later in the year.

even otherwise, there are indications that global agricultural crop production will witness a rebound in 2013. with the harvested crop

from the southern hemisphere set to hit the market in the next few weeks, there has been considerable easing of prices of late. sugar, cotton and vegetable oil markets are on a bearish trend.

an additional factor impacting the global commodity markets of late is the apprehension that growth in china’s appetite for commodities including agriculture was slowing. the latest chinese trade data are uninspiring.

throughout europe, consumers have gone through a rude awaken-ing that the food chain is largely self-regulated by processed food manufacturers to whom multiple retailers have contracted out food safety and food source assurance. starting in uk and quickly spreading throughout europe, horse Dna has been detected in pre-pared beef burger and meat products (lasagna, sauce bollognaise, kebabs) where the label states only beef under the ingredients. leading brands like nestle, Findus, birds eye, etc have been forced into embarrassing (and hugely expensive) product recalls and apolo-gies that they have distributed mis-labelled meat products. multiple retailers have been found wanting in their verification testing and there is not enough laboratory capacity for all the emergency testing required.

there is no claim that these mis-labelled, adulterated beef products are a risk to human health, after all cheval is a delicacy in France, belgium and other european markets. provided the horses had not been injected with bute, the prepared meat is probably as nutritious as beef. consumers however had been deceived by mis-labelling and criminal activity is suspected, considering an abattoir pays $200 for a clapped-out horse and $1,000 per head for prime beef cattle. newspapers have uncovered convoluted supply chains where beef burgers sold in british supermarkets were manufactured in ireland from meat supplied by traders in cyprus who bought from abat-toirs in rumania, invoiced through switzerland. consumers are understandably suspicious that there has been some “horse play” along the way, with unscrupulous traders knowingly being involved in a conspiracy to adulterate pure beef products. the fall out in destroyed consumer confidence can be measured by a drop of over 50% in weekly sales of beef burgers and prepared meals including beef since this problem came to public attention in early February.

voices are being raised that cut-throat competition between dis-count retailers focusing on cheapness of their offering to consum-ers has forced impossibly low pricing on their suppliers, which has resulted in “corners being cut” to achieve unrealistic price points which are no higher than a decade ago, despite animal feed prices trebling over the same period. news is surfacing that food service caterers to hospitals, schools and prisons - who have focused on purchasing via reverse internet auctions (where competing suppliers can only enter lower and yet lower prices and where the only deter-minant of success is the lowest price tendered) are similarly caught up in mislabeling. worse, prisons have been serving supposedly Halal certified meat which is found to contain traces of pork.

undoubtedly this creates a promotional opportunity for pulse pro-teins to replace (an enlarged share of) animal protein in european di-ets. with our industry’s capability to demonstrate robust traceability, short and direct supply chains (origin farmer -> processor / exporter -> importer / distributor -> manufacturer) we can meet and exceed expectations on sourcing. we have a good news story to tell about healthy, wholesome products that are good for the environment, re-ducing water usage and fertiliser applications. Dry pulses represent

excellent protein and fibre value. Whilst we should not gloat about the crisis faced by others in the food business, now is the time for pulses to “make hay whilst the sun shines”.

we should use this increase in consumer consciousness about the uncertainties surrounding prepared meat to support cicils cam-paign to have 2016 confirmed as UN Food & Agriculture Organisa-tion’s year oF pulses

ONE MaN’S MEaT ISaNOTHER MaN’S POISON

anDrew Jacobs

GLObaL aGRICULTURECOMMOdITY MaRkET REPORT

Global aGriculture market outlook: G. chanDrashekhar

THERE aRE INdICaTIONS THaT GLObaL aGRICULTURaL CROP PROdUCTIONwILL wITNESS a REbOUNd IN 2013.

CONSUMERS ARE UNDER-STANDAbLY SUSpICIOUS THAT THERE HAS bEEN SOME “HORSE pLAY” ALONG THE wAY, wITH UNSCRUpULOUS TRADERS kNOwINGLY bEING INVOLVED IN A CONSpIRACY TO ADULTERATE pURE bEEF pRODUCTS.

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For more information visit: www.cicilsiptic.org

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News &Views

Increase on Indian Pulse Crop Forecast

the Government of india, ministry of agriculture, has published an advance estimate of rabi (spring or early summer) crops for the year 2012-13 according to which rabi pulses harvest would be 12.1 million tons. this is higher than the production target of 11.1 million tons, and higher than last year’s (2011-12) rabi crop of 11.0 million tons.

chana or gram or desi chickpea which is india’s largest pulse crop is estimated at a record 8.6 million tons, higher than the season’s target of 8.0 million tons and last year’s production of 7.7 million tons. urad or black matpe production is estimated at 470,000 tons and moong (lentil) at 430,000 tons.

according to the government’s weather watch Group, total area planted to various pulses in the rabi season this year is an es-timated 14.4 million hectares, nearly unchanged from last year. however, area for chana has expanded to 9.3 million hectares versus last year’s 9.0 million hectares.

in anticipation of a large crop, spot prices of chana had begun to be on a downward trend for the last 2-3 weeks. prices de-clined by as much as 10 percent to trade at around rs 3,600 a quintal (100 kilograms trading lot) by early this month. although a large chana crop was expected for the second year in a row, the estimate has caught many traders by surprise who did not bargain for such a big number from the government.

it is of course unclear whether the production number is over-stated as suspected by some traders. however, in the absence of any reliable, field-visit based crop survey by the trade it is safer to accept the government data.

India’s imports are going on apace, with a significant part of arrivals accounted for by yellow peas, the cheapest pulse avail-able in the world market. From april to september, total arrivals of various imported pulses were an estimated 1.5 million tons; and arrivals during september-December 2012 quarter is an estimated between 650..000 and 700,000 tons.

with a slowdown in import contracting in the face of the im-pending harvest, india’s aggregate import volume is unlikely to cross 3.0 million tons on current reckoning.

total production pulses for the year 2012-13 (kharif + rabi) is an estimated 17.6 million tons, below the year’s production tar-get of 18.2 million tons, but slightly above last year’s production of 17.1 million tons. From: G. chandrashekhar

pulse breeding australia inaugural pulse conference(expanding horizons) 20-23 october 2013 the sebel playford, 120 north terrace, adelaide

Vandenberg and bahceci to headline Pba Inaugural Pulse Conference Phil davies (SaRdI) - Pba Inaugural Pulse Conference Com-mittee Chair

renowned canadian pulse breeder professor bert vandenberg from the university of saskatchewan and mr hakan bah-ceci, president of the international pulse trade and industries confederation (cicils iptic) and group ceo of hakan agro Dmcc, an agri-soft commodities supply multinational based in Dubai, uae are the conference’s keynote international speak-ers. with extensive experience in pulse breeding for one of the world’s largest pulse exporting nations professor vandenberg’s expertise in the latest pulse breeding developments will be a welcome contribution to the conference. an international pulse marketer and processor with over 20 years experience of the global pulse industry, mr. bahceci’s perspective will assist with exploring the potential of pulse advancement for the global marketplace.

themed “expanding horizons” the pba inaugural pulse confer-ence will foster the sharing of intellectual expertise and build collaboration across five temperate pulse crops, while providing an excellent opportunity for the pulse industry - researchers, breeders, marketers and growers - to seek innovative solutions to developing better varieties for australian growers.

For chana, as shown in the above daily chart, prices have been forming lower top & lower bottom formation. chana prices are trading below the short term moving average.

Prices have formed a bearish continuation flag pattern between 3390-3340 levels. a sustained move below 3340 would give a negative confirmation and would suggest the current downleg is extending and prices could test 3280/3250 levels. On the up-side it has immediate resistance at 3400 levels on closing basis. the rsi & macD indicator have shifted in bearish range.

we recommend selling on rallies as long as 3400 levels is capped on the higher side. breach of this level would negate our bearish stance.

(the author t. Gnanasekar, Director, commtrendz research, mumbai (india) is a well-known technical analyst. this analysis is based on historical price movements. there is risk of loss in trading.the author can be contacted at: [email protected])

CHaNa TECHNICaL aNaLYSISchana price in inDian rupees per 100 kiloGrams traDinG lot

O:3369.0000 H:3371.0000 L:3335.0000 C:3342.0000 UC:-23.0000

showcasing the ultimate use of pulses – proving nutrition to the world - the Conference will also have a pulse food flavour to it. the committee is currently working with well known chefs simon bryant, from abc tv’s the cook and the chef, and ragini Dey from adelaide’s spice kitchen restaurant to develop a “passion for pulses” conference menu and dinner in collabo-ration with food consultant chris stephan and pulse marketer peter semmler. the committee will see many other speakers join professor vandenberg and mr bahceci on the conference podium to share their work and ideas on advancing the pulse industry. conference registrations and abstracts submission will

be opening soon; notification will be sent out to newsletter sub-scribers when this occurs. the committee is pleased to report a large number of expressions of interest from the first conference shout out. a conference prospectus is available; please contact pba coordinator Fleur winter:[email protected] if you would like a copy.

sunday october 20 – welcome reception monday october 21 – Field Daytuesday october 22 – Development Focuswednesday october 23 – research focus