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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

FOREIGN AGRICULTURE March

18,

1968

BRITAIN CONTROLS FOOT-AND-MOUTH

Foreign Agricultural Service U.S. DEPARTMENT

OF AGRICULTURE

foreign agriculture VOL. VI

NO.





12

MARCH

u.K. Foot-and-Mout

1968

18,

In this issue:

By

KENNETH

E.

HOWLAND

Assistant U.S. Agricultural Attache' 2

6

London

U.K. foot-and-mouth scourge on the wane

OECD

report on the food problem of

developing countries

7 Foreign development aids U.S. farm exports

8 World agriculture: 1967 review, 1968 outlook

It)

Philippine hard fibers have mixed prospects

11

Record feedgrain shipment bound for Japan

12 U.S.

team sees good Asian wheat markets

14 Crops and markets shorts

16 Agriculture in

Orville L.

Romania gains momentum

Freeman, Secretary of Agriculture

Dorothy H. Jacobson, Assistant Secretary for

Inter-

national Affairs

Raymond A.

Ioanes, Administrator, Foreign Agri-

cultural Service

Editoral Staff: Editor: Alice Fray Nelson; Associate Editors: Janet

Van Horn; Assistant Editors: Mary A. NicoMarcia Sutherland, Mary C. LaBarre.

F. Beal

and Elma

Beverly

J.

lini,

E.

Horsley, Faith N. Payne,

Advisory Board:

W. A. Minor, Chairman; Horace

J.

Davis,

Anthony

R. DeFelice, Kenneth K. Krogh, Robert O. Link,

Kenneth W. Olson, George A. Parks, Donald M. Rubel, Dorothy

R.

Rush,

Raymond

E. Vickery,

Quentin M. West.

Use

of funds for printing Foreign Agriculture has

been approved by the Director of the Bureau of the

Budget (June

15,

1964).

Yearly subscription rate,

$7.00 domestic, $9.25 foreign; single copies 20 cents.

Order from Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. this magazine may be reprinted freely. Use of commercial and trade names does not imply approval or constitute endorsement by USDA or

Contents of

Foreign Agricultural Service.

1

I'

ourge on the Wane

farm and sent tissue specimens to the laboratory for verification.

all

and buried

in

The farm

dom

disastrous foot-and-mouth epidemic

has begun to abate, but not without

the United King-

in

all

ures that should be taken hereafter to prevent such epidemics.

Although sporadic outbreaks

culture veterinarians feel the disease

is

under control.

fully

And



week ending February 27 the number of outbreaks per week was down to 3 compared with the peak of 524 in the week ending November 28, 1967. Officials caution, -for the

at latest report

however, that continued

vigilance

necessary over the

be

will

months as occasional flareups are to be expected. Meanwhile, emergency measures still continue in the United

next 2 to 3

free of the disease for the last

States-

36 years- to guard against

3-month ban on imports of U.K. poultry continues, and precautionary measures are still in effect for imentry. This country’s

its

movement

of per-

rural areas or

around

ports of horses and farm-type dogs and the

who have been in United Kingdom into

sons, especially those

from the

livestock,

some

must have

cases, these people

their

the United States. In

footwear disinfected

before being allowed entry.

unnecessary travel

horse racing was banned.

Despite such swift and thorough response, the disease continued

to

density

in

most severe of

extreme livestock

the

of

New

of

parts

Moreover, the

Zealand.

most virulent strains of foot-and-mouth disease, although not one unfamiliar to British of

the

veterinarians.

As

a

the

result,

February, though

disease’s

at a

toll

totaled

100,344 sheep,

208,692 cattle,

continued to mount through

slower and slower rate.

slaughtered

livestock

1968,

As

February 26,

of

head,

422,498

including

113,423 pigs, and 39 goats. Al-

though these numbers add up to only about

1

percent of total

and pig population, the slaughter figures for some infected counties show an alarming picture- more than 30 U.K.

cattle, sheep,

percent

of

Hardest

hit

and

the

total

livestock

population

three

in

counties.

were the dairy herds of Chester, Shropshire, Staf-

Flint counties.

financial cost of the epidemic has been high.

Total compensation payments to farmers for slaughtered cat-

hit

tle is in

this

by

aided

was type 0i one

virus

The

in

unchecked,

spread

the area- said to be the densest in the world with the

exception

possible culprit

ford,

Eighteen counties

through and within infected areas was

discouraged. Social gatherings were voluntarily suspended, and

continue, Ministry of Agri-

still

quarantines were en-

strict

pads were placed across highways, while

Disinfectant

forced.

dooming hundreds

first

and sparking heated debate over meas-

of thousands of livestock

and other areas were disinfected. infected areas was also halted,

of cattle through

by special permit, and the

except

The

animals on the farm were slaughtered immediately deep trenches or their carcasses were incinerated.

buildings, barn lots,

Movement

presence of

tests verified

examination or laboratory

clinical

If

the disease,

excess of $68.4 million, with

and could well

British

rise to

more payments scheduled,

over $72 million. In addition, the epidemic

has caused the loss of about 60,000 tons of meat and 80 million gallons of milk. Direct costs attributable to eradication are dif-

foot-and-mouth epidemics.

ficult to

Of meat

determine, estimates say more than $240 million.

course, indirect costs of the epidemic prices, loss of

restricted

The mouth

disease.

bating

it

British are quite

knowledgeable

in

eradicating foot-and-

They’ve had a great deal of experience

-since few years pass without one or

in commore outbreaks

and farmers are quick to recognize and report the disease. Nevertheless,

this

ever before

latest

movement, and

loss of

in

form

the

in retail

of higher

trade caused by

income and tax revenue from

suspension of horse racing and livestock auctions form an everthe impact of which

widening economic rippleassess accurately.

Much

is

impossible to

of the cost of the epidemic cannot, of

epidemic has claimed more animals than

British history.

in

With the epidemic on the

It began in the big dairy farming country of Shropshire on October 25, 1967, and from there quickly spread to other areas of England and Wales, reaching its peak on November 24 when over 80 outbreaks were reported. (See Foreign Agriculture, Dec.

18,

farm income, slump

1967, for an earlier report on the epidemic.)

outbreaks had occurred

By

decline, attention has shifted

this time,

to restocking

England and 4 in Wales, and more than 10,000 people were engaged in fighting countries

14

in

farms.

in

ji

the disease.

Among

these people were over 900 veterinarians (including

course, be equated

in

monetary terms. JVIoney cannot compen-

teams from Australia, Canada, and the United States), plus

sate for loss of pedigree blood lines extending back

army personnej,

erations, nor can a price tag be put on the

butchers, slaughterhouse employees, and heavy

equipment operators from private construction firms.

and

eradication

centers

Chester, Crewe, and Worcester

and from the control unit ters,

in

in

at

Oswestry,

Shrewsbury,

the three counties worst hit

Ministry of Agriculture headquar-

Tolworth.

Upon

send one or

more veterinarians

to the infected farm,

examined suspect animals and,

March

18,

1968

if

necessary,

where they

quarantined the

gen-

wasted

Ministry of Agriculture regulations permit restocking of a farm 6 weeks after slaughter of infected animals or 4 weeks after pletion

of disinfecting and

sooner. Consequently,

on

being notified of a suspect case, the control center would

many

effort

building a lost herd.

in

Coordination of this vast team was carried out from the identification

human

many farms

in

Union estimates pleted within

One

18

possible

com-

cleaning of premises, whichever

is

restocking has already been undertaken

the infected area, and the National Farmers'

perhaps optimistically- that

it

will

be

com-

months.

drawback

to

this

ambitious schedule, however.

Page 3

the chance of another outoreak. Recently, there

is

among

break

restock cattle on farms

had been infected procedures

may

rences

months ago and which fought

3

before restocking

Such

recur-

Union have stated they

demand

The other problems connected with restocking farms ravaged an adequate supply of quality cattle available

Kingdom, and no plans

for

in

do everything within

powers to

their

set

The

funds for restocking.)

ment

up advisory restocking

and the National Farmers’ Union has compiled

cattle available for restocking.

pool, at last word,

lists

for

emerging strong breeding stock to drive prices unduly high. (Some

Com-

mission consider imposing a levy on imported meat to provide

the United

large-scale imports have yet been

made. The Ministry of Agriculture has centers,

will

groups have even suggested that the Meat and Livestock

by the disease are large but not insurmountable. There appears to be

lasting

see that sellers will not take advantage of the

permitted.

is

of course,

is,

problems from pig losses are expected, primarily because of the short, 10-month, life cycle of pigs. Both the Ministry of Agriculture and the National Farmers’

doubt as to the length of time necessary

create

No

lost.

the virus with

were considered very stringent.

that

though the spring lamb crop from slaughtered ewes

was an out-

Worcester County, which

in

to farmers in

of

was ap-

ing

It

considered likely that the govern-

is

exempt from taxable income the payments made compensation for condemned dairy cattle by treat-

will also

them

as capital assets.

proaching 100,000 head.

Although some farmers

probably choose

will

this

time to go

out of dairying, either by early retirement or switching to cereals,

Beef ban no longer

to be

the majority have no alternative but to go back into intensified

dairy production. In Chester and Shropshire, for instance, 70 to

used as a means of protecting

80 percent of the farms are either small all-grass farms geared wholly to milk production or large ones equipped for intensive

To encourage

dairying and limited cereal cropping. ers

to

the

diversify,

December

Ministry

of

Agriculture

against the disease.

dairy farm-

announced

in

a plowing grant of $24 per acre for affected farmers

who wished

to convert grassland to cereal production.

however, only about

100

farmers

in

To

date,

Shropshire and Chester

In

have applied for the grant, covering about 20,000 acres.

Restocking efforts just over

1

probably include breeding heifers

will

at

been reexamining

year of age instead of the usual 2 years. Considering

the nearly

100,000 heifers

the infected areas

view of the huge losses caused by the epidemic and the

problems involved

now ready

disease and keep

Government has combat foot-and-mouth United Kingdom.

restocking,

in its

policy on

out of the

it

the

how

British

to

for

Since the epidemic began, part of this policy has been a ban

breeding, this should help bring cattle

numbers back up close Farmers are also likely to reduce the culling rate for older cows and get more strictly dairy animals by limiting the practice of crossbreeding dairy cows to beef bulls. Restocking of sheep and pigs poses a less severe problem, al-

on beef imports from foot-and-mouth endemic countries (notably

to levels before the epidemic.

Argentina). But

in

tinue on offals),

it

reflecting

caused the

first

Percent

Outbreaks Population Slaughtered slaughtered

....

Derby .

Lancaster. Leicester

.

.

.

.

Lincoln.

Northampton Nottingham. Shropshire

.

Number

Percent

Number

Number

Percent

Number

90,029

32.60

15,934

17.60

135,000

42,714

5,259

2.41

3,805

2.04

50,900

500

.01

8

1,049

.48

507

.19

24,200

2,256

1.80

5

176,700

1,095

.62

90,600 186,000 266,200 563,800

4,251

.75

63,900

927

.01

21

337,300 172,600 212,600 128,100 107,300 340,000 269,100 148,400 136,800

2,623

.78

396,200 203,100 357,800 302,100 88,500

3,097

.78

871

.03

1

6 4 2

64

.37

1,087

.52

319 299 64,978

.28

19.10

12,737

4.73

265 48

.18

.25

14,100

2,912

2.55

577,900 50,600 217,700 493,800 224,400

1,992

2,853,600

182,764

6.40

4,1 18.700

84

130,900

7,834

5.98

191

73,200 97,600 141,800

12,936

17.70

606,600 99,700 292,400 799,500

1

32

Total England

Percent Population Slaughtered slaughtered

277,100 214,400 219,100

2

Worcester

slaughtered

Number

132

Warwick Westmorland

1968

1,014

714

Stafford

13,

Pigs

Percent

Population Slaughtered

1

.35

1

lamb

COUNTIES

IN BRITISH

1967, to February

Number 50

Gloucester Hereford

recent findings that infected Argentine

Sheep

Cattle

England: Chester

to be lifted on April 15, while a ban will con-

outbreak of the disease. Since British meat trade

LIVESTOCK POPULATION AND NUMBERS SLAUGHTERED AFFECTED WITH FOOT-AND-MOUTH DISEASE -October 25,

County

is

imports of fresh, chilled, and frozen lamb (and their

1

Number

Percent 3

1

.60

6,268

2.79

303,200 73,700 250,600 67.000 96,800 170,000 105,100 87,900 12,000 101,300

81,673

1.98

1,641,600

5,861

9.66

39,900

3,945

9.88

7,198

7.21

35,100

10,506

29.90

13,400 32,900

-

-

3,502

10.60

13

.01

1,052

.03

795 24 38,890

.03

6.70

6,299

4.20

662

.03

lb





-

-

1,949

7.77

74 51

-

38,423

22.60

3,923

3.73

23

-

-

3,610

3.56

95.320

5.8

Wales:

Denbigh

.

.

.

.

Flint

Monmouth Montgomery Total Wales

Grand

Page 4

totals

I

63

31

.03

3,560

2.51

82 4,675

5.80

339

443,500

24,361

5.50

1,798,200

17,816

.99

121,300

17,953

14.80

2,331

3,297.100

207,125

6.28

5,916,900

99,489

1.68

1,762,900

113,273

6.42

Foreign Agriculture

with these countries has

the past been mostly in beef,

in

it

can

be restored to near-normal levels following the April 15 action.

Many

persons and

the ban on beef

is

future outbreaks

the

however,

organizations,

wrong move

— that

to avoid imports of

is

the best fresh

all

way

to prevent

nevertheless infectious themselves. Such a situation, it is felt, would cast a dark shadow on the attractiveness of U.K. breeding

and frozen meat

from countries with foot-and-mouth disease. They point to the from the disease— the United States,



Canada, New Zealand, Australia, Ireland as support for their case. They also point out that the Ministry of Agriculture has over 50 percent of

outbreaks since 1952

all

bones and scrap from imported meat (some beef)

to

These people see the ban as a way foot-and-mouth disease and

to

to

make England

increase

in

free

stock

from

animals-

duced or

and only about 10 percent of

Irish

came from foot-and-mouth endemic

pro-

exports

C — those

types of meat.

effective

average prices for English beef increased from 32 cents a pound before the epidemic to 40 cents a pound early

in

now around 36-37

about 2 to

per

pound

cents a pound, this

is

than the Chicago average

less

grade carcass beef.

Prices

for

lamb,

still

in

January and are

January

for

3

cents

“good”

and poultry have

pork,

edged up too, indicating some substitution resulting from

re-

ban

feel

measures

that

other than trade restrictions could be taken to effectively prethe disease. Major among these is mandatory cooking meat scraps and garbage intended for swine. (Not mentioned in the argument is the problem of household meat scraps and bones, which would be much more difficult to control.) They

food prices and,

is

unrealistic

in effect,

in

light

from Argen-

of the current rise in

would hold about 500,000

to

most prevalent program down be

around $24 million

meat

endemic

from

It

is

countries

possible that even

were

on the taxpayer, since before the outbreak the government had already been

paying out more than $2.4 million per week

in

price-guarantee payments to U.K. livestock producers.

But the primary question facing the government ciding

whether

to

introduction

of

the

rate,

investigating

although

disease,

is

that of de-

program of vaccinaHere again there are strong arguments for both sides. Although the Ministry has considered a vaccination program (large supplies of Oivaccine were obtained early in the epidemic and have been held ready), they have so far declined to use it. in

the case of future outbreaks or to adopt a

tion.

opposing vaccination point out that there

Interests

purpose vaccine to protect against the seven virus

gram

is

no

all-

major types of

and the more than 50 subtypes. Also, a vaccination proto be effective would require vaccinating all livestock

susceptible pigs, for

to

the

disease

at

least

twice each

year

including

which no reliable vaccine has been developed, although

Ireland’s

an

is

alternative

not expected

to

— regardless

of

England can

ill

Australian Seed Need Acute Pasture seed production

many

in

Austalia for 1968

years owing to the drought

imports of

many

in

be the lowest

As

a result, substantial

seed varieties will probably be required, and

the United States can expect to find a sizable for perennial

will

southeastern Australia

market

Australia

in

rye grass. Also expected to be in strong

— bent,

brown

top,

Production in Victoria and southern New South Wales, the major producing areas, was most seriously affected. Perennial rye grass has been

the hardest

production of certified seed recent years,

hausted.

is

hit

of all

varieties.

and stocks from the 1967 season are almost ex-

Thus, supplies

sizable imports

from

will

New

be extremely short, necessitating

Zealand and the United States. Pro-

duction of phalaris tuberosa (harding grass) seed 10

percent of the

1967 harvest. There

carryover of this type from required.

Estimated

only a fraction of the output of

last year,

Subterranean clover seed

the eastern States.

a

may

be

will

in

reach only

reasonably large

but imports

will

Requirements here

is

may

still

be

short supply

in

be largely

filled

or under

1968

from

Western Australia, reducing Australia’s exportable surplus of

about 60 U.S. cents, sheep 48, and pigs 72).

18,

demand

and Kentucky Blue grass.

of clover, which are generally produced in

March

the

afford another epidemic of this magnitude.

144 million (with the per head cost of the injection for cattle at

favor of a slaughter policy point

to

Though the findings of the commission become known for months, one thing is disease source or means of eradication,

current slaughter policy.

subterranean clover to practically nothing this season.

in

barred,

disease-free

promising experiments are underway. Then, too, the cost of an effective vaccination program would be high -perhaps $120-

Those opposing vaccination

imports

one question being considered by the commission

foot-and-mouth disease

are lawn grasses

continue the slaughter eradication program

if

permanently

situation tends to belie this point.

during December-February this winter.

that encour-

$48 million.

to

government will adopt a combination program as the only realistic approach

quantities of manufacturing meat.

feel

There

aspects.

the

that

in

Also, they

all

England’s proximity to Europe could handicap efforts to prevent

600,000

would put an unjustifiable burden

that

Europe- could bring the cost of an

in

to

prime beef cattle out of the U.K. market, not to mention large aging domestic production

been

not

specify

not yet known. Ministry of Agriculture

have been weighing

to containing future outbreaks.

of

are

and Uruguay

countries

an annual vaccination program for cattle

slaughter-vaccination

clear

that banning imports of low-priced quality beef

is

veterinarians

may

It

of

feel

many

fact,

in

they say that

addition,

In

have apparently

only using a polyvalent vaccine effective against types A, O, and

vent

tina

stock

decision on whether to continue a slaughter

are indications that

At any of the beef

effect.

by vaccination;

research

duced supplies of beef.

Groups backing removal

into

breeding

policy or to vaccinate

be some merit to this argument. Although

to

of

The government’s

Those supporting the ban argue further that imports from endemic countries amount to only4 Vz percent of total U.K. meat supplies, excluding poultry, and that any price rise due to restricted imports would be tempered by consumer resistance and substitution of other There seems

— vaccinating

imported stock must be vaccinated.

total beef supplies

countries.

program

have suffered no serious losses from the disease since

program was put

their

affected

home

for these expensive

only once a year and slaughtering infected and contact

would drive red meat prices

1967 was

the highly developed

These people point to France’s program as an example. They

French

in

— particularly

major markets

the

say that the French, using a combination

meat. They discount the argument that restricting meat imports out that over 86 percent of U.K. beef

now

purebred animals.

cattle

to intolerably high levels, pointing

importing countries

to

countries that are

swill.

output of

capita

per

of carriers

animals which suffer no outward effects from the disease but are

policies of countries free

officially attributed

number

result in a large

lifting

that

feel

out that aside from the high cost and unreliability of such a pro-

gram, vaccination would

The

drought have not been severe on other types

effects of the

more favored areas

White clover and strawberry clover seed was significantly higher than last year.

irrigation.

production,

in fact,

Page 5

OECD

Report on

The Food Problem

of Developing Countries

The food problem is not new. It is as old as recorded history. There is a new story, however, in the food problem of today.

Man now

has the technical knowledge to bring the age-old prob-

Countries.* “how to do this” is the primary The Food Problem of Developing

new

this

treatise,

The author

made

Dr. Kristensen

OECD’s

*

study of the world food problem at

this

recommendations adopted

following

request

by

the

OECD

Development Assistance Committee (DAC) at its Washin July 1966. The countries making up DAC supply nearly all the development assistance going to the less meeting

ington

agriculture

The food

the

to

relative stagnation of food production in the face of the rapidly

many

in

DAC

governments of

of the developing countries.

Member

were urged to strengthen their develop-

ment assistance programs in the field of agricultural development. The Committee requested the Secretary-General to study the effectiveness and coordination of bilateral and international programs and to report to OECD his findings and proposals for maximizing their effect.

The Secretary-General concludes in his report that “most of the increased demand for food in the developing countries can and should

met by expansion of the agricultural production

developing

the

in

— be

countries

The projections made by

pective growth

food

their

world population to

in

tance

OECD

in

the

his study,

demand

because

that

of

have to

will

make and

the need for a variety of meth-

ods and policies on population control. but focused

in

in

can achieve improved effectiveness

tries

how in

the “rich” coun-

eral headings.

Increase the flow of aid to developing countries, with em-

on aid

phasis

and on population

agriculture

to

and

more "rational"

agricultural policies in developed

countries. Protection and other forms of price support have en-

couraged production

increases

leading to surpluses, especially

The Secretary-General proposes

of grains and milk.

Develop more "rational" trade policies

maximum

to

and industrial products.

Speed up flow of private investment industries

in

capital

products of developing countries. The

critical

but

is

the gap,

import the food now

shortage of foreign exchange to

a

problem fill

Dr.

in

on analyses given

opment

in

six

fundamental

as the overall

developing should

help

countries

and

upgrade

developing countries

apply

research.

undertake necessary

OECD

science

committees should examine how research to stimulate innovations -such as high-yielding varieties and synthetic industrial food production

— can

be organized systematically through inter-

national cooperation.

Closer contacts should be maintained between developed and

Emphasis is placed on this general recommendation and the need of doing this the “right way.” The several regional and international organizations working on aspects of the food problems should cooperate more closely. developing countries.

agriculture.

Kristensen’s conclusions and policy proposals are based

cusses the

fer-

tilizer-manufacturing industry would be specially useful.

needed and the capital and technical assistance needed to raise productivity

agro-allied

in

developing countries. Capital directed to the

research and train research workers of their own.

not a shortage of food from the “rich” countries to

developing

give

access to markets for both their agricultural

food imports these countries need, especially by providing food

the

that agri-

cultural price supports should be gradually reduced.

Help

other forms, and by assuring markets for

Dr.

fertilizers.

Establish

OECD

in

policies.

Kristensen proposes a special program of grains, milk powder,

countries (which include most of the

and agricultural aid

programs.

their aid

Kristensen summarizes under seven gen-

“rich” countries of the Free World) will have to help finance the

widening gap the

and content,

their scope

the direction of proposing

These proposals Dr.

for

this

the

given to the various kinds of decisions families and gov-

is

ernments

countries

increase faster than will

He emphasizes

production.

come

years to

more by

six billions or

year 2000 and the consequences of this growth. Special impor-

development plan-

the Secretary-General

many

the developing countries will

in

in

that

further,

the aid policies of donor countries.”

in

however, indicate that for food

And

themselves.”

“such expansion deserves a high priority ning as well as

situation in developing countries cannot be consid-

These chapters are wide ranging

At the Washington meeting, attention was directed population

developing countries, and pos-

in

food production.

ered apart from population. His sixth chapter reviews the pros-

developed countries.

rising

developed and

in

sible innovations in

OECD

Economic Co-operation and Development).

for

factors underlining the

Later chapters discuss aspects of trade and aid, problems of

focus of

Thorkil Kristensen, Secretary-General of

is

(Organization

some

also discusses

beyond.

lem of famine and food shortages under his control. Exploration of the

He

food products.

longer-term aspects of the food problem, to the year 2000 and

chapters.

In

the

first

chapter, he dis-

problems concerning food and devel-

background

for the

major policy

Some

issues.

of the report’s proposals relate to actions already under-

which he foresees an

way; others represent new approaches. The United States and

increasing need for food imports for the developing countries as

other countries have already stepped up development assistance

He

presents projections to the year 1980

a group, although certain of

them

will

in

have an export surplus

in

in

agriculture,

the

at

same time stimulating

the efforts of the

developing countries themselves, the major thrust of the Note: The 21-nation

“Marshall

Plan"

OECD

OEEC.

Its

was organized present

DAC in

1961 as a successor to the

members

are Austria,

Belgium,

meeting

in

Washington.

and developing countries

tions,

Spain, Sweden, Switzerland, Turkey, United Kingdom, and the United

General's report by focusing

*Copies of the report are available from

comprise

OECD

Publications Center,

Suite 1305, 1750 Pennsylvania Avenue, N.W., Washington, D.C. Price: $3.00.

Page 6

with

Some

DAC.

has sponsored

1966

various

seminars bringing representatives of private enterprise, founda-

Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Japan (joined in 1963), Luxembourg, Netherlands, Norway, Portugal, States. Fourteen of these countries plus Australia

OECD

the

donor countries.

DAC first

into is

dialogues and discussions

following up the Secretary-

on individual country studies.

proposals relate directly to program activities of the agri-

culture, science,

and trade committees of

20006.

Agricultural Attache',

OECD. KENNETH

U S.

Mission

E.

to

OGREN

OECD

Foreign Agriculture

Farm Exports

Foreign Development Aids U.S. RAYMOND

By

A.

IOANES

a

plus

political,

Administrator,

framework

Foreign Agricultural Service

Investment

the

In

tional

our In

past

giving

asset,

balance

agricultural

tremendous na-

a

invaluable

help

has been farm product

it

commer-

exports that have kept the U.S. trade balance on

cial

sold

exceeded

dollars

for

imports

$585

by

shipments

agricultural

imports

One

fell

by

of

supported

kets,

by

non-

of

$400

million.

grow-

for the

exports

agricultural

expanding demand

been

non-

short

main reasons

of the

success

ing

agricultural

whereas

million,

agricultural

has

mar-

foreign

in

economic de-

rising

we

nation,

a

and

have

that

economic

development;

nothing

the

to

whose

support

and purchasing power; we

countries

the

achieved

quite

we

jobs

less to

sell

not

the

to

countries

agriculture

countries

most

the

sell

developed

economically industry

further

increases

in

Like a

jet

moves

down

virtually

sell

have onfy

that

becomes

One

USDA's

gories

Research

further

investment,

and

output,

runway,

so

on. it

and

economically

developed

coun-

addition to the “takeoff” stage,

when

resistance to steady growth

come, there

is

over-

is

also “maturity,” the ability

broaden the industrial base that made

consumption”

stage the United States

tion

automobiles, refrigerators, color TV’s,

that

the

per

income of over $600 per year bought commercially $7.88 worth of U.S. farm products per person. On a per capita income of $200

of $4.18, while

to

$600 meant

sales

income of under $200

re-

sulted in dollar sales of only 30 cents.

Japan

example of the “pros-

a classic

is

perity-sales

theory.”

national

1962

Since

product

Japan's

increased

an

at

annual average rate of 8.7 percent- while U.S. farm exports to Japan almost doubled,

from

rising

million

Today Japan and

rice,

million

to

U.S.

wheat, -as

times

expanding

this

prosperity

countries

the

in

market

brings

the pattern of U.S. agricultural

in

For

heavy

a

purchaser

as rai-

of tobacco,

chickens, and barley.

process.

A

development rise

to

something

to

growth.

more

have

countries

have

they

in

like

So

is

substantial

the 10

is

rate of

percent

a

dynamic

investment is

49th Annual Meeting,

Agricultural Council of California, February 21 1968.

March

gross

capita

their

na-

recent

Some

years.

,

in

countries

the

of

received

percent

10

and

Taiwan,

Israel,

have

South U.S.

substantial

the

it

helping other needy coun-

is

buy the time needed

tries,

to

their

own

agriculture and

to

develop

industry. Their

growing potential as a U.S. market extra dividend from our efforts to

is

an

combat

by

con-

compared with levels in The bigger herds and

percent, as

late

1950’s.

Shipments to two "export worlds”

A

incomes,

diets

suming more livestock products— notably meat, including poultry. In Western Europe, meat consumption has risen 10

For

economic

about

observation

final

development:

purposes,

practical

all

the United States ships farm

products to

two “export worlds.”

We make or

dollar,

This

the bulk

sales

consists,

in

of our

commercial,

developed world.

the

in

main,

the

Western

of

meet the demand for meat have meant an increased need for

Europe, Japan, Canada, and a few others.

U.S.

counted for a substantial part of the $5.2

required

flocks

to

U.S.

feedstuffs.

grain exports

The tinue

and

oilseed

now exceed

developing to

feed-

billion each.

$1

In

year

fiscal

billion

countries,

improve

their

also,

con-

farm

economies.

And

one-fourth

these

countries

ac-

commercial exports. Commer-

in

made

exports

cial

1967

products

— or

up $6.8

shipped.

about $1.6

roughly

The

three-

worth of

billion

remaining

unless

worth went to the underdeveloped countries of

Several of the smaller countries have sub-

Food

we keep an eye on them, we risk overlooking some market opportunities.

our

increased their dollar buying of

farm

products,

pendence on

Law

our

This

480.

decreasing

food

aid

their

under

in

de-

Public

may

which

trend,

continue, has been noted

well

that

Cuba

with

other

the

Bahamas.

once

enjoyed

factors

Africa.

to

Dollar

billion

Asia, Africa, and Latin

I

the

America under the Freedom - P.L. 480 program. think we are all looking forward to day when there is only one export for

world the

-the

commercial.

developing

That

countries,

too.

goes

for

They

all

We

be-

the following

want

to

lieve

we are helping them do

The

as a condition for receiving our food aid,

countries.

South 18,

European

their

per

essential

emergence of one or manufacturing sectors,

at the

increased

upgraded

Jamaica, Based on remarks

Western

as

products and

tional

stantially

Stages of economic development

Economic

has ranged from 5 to

uct

prod-

the gross national

in

hunger and starvation. example,

Some promising new markets

feed-

well

mentioned, an-

of the countries

all

increase

fourths of the total

hides and skins, lemons, and

It’s

$939

market

our leading

and cotton-

soybeans,

tallow, sins.

is

buyer of

biggest

grains,

$485

In

nual

development

rapidly.

them, as

mass consumption. Often-

high

of

1967.

in

Economic

Korea.

moving forward

and other countries that have reached the stage

to 35

gross

is

food aid under P. L. 480, which has helped

capita

basis,

South

United States, Canada, Western Europe,

Service

1964 countries having

in

the past decade.

in

Korea

in

exports.

found

Okinawa. This is a “sleeper” that has expanded its purchases of U.S. farm products from $3 million to $20 million

especially

going on

1957 to $59 million

in

1967.

in

across the board.

is still

from

buying has risen

Dollar

than $1 million

and other symbols of an affluent society. Development takes place all the way It

rapid

its

development despite tensions.

of

less



now where there is heavy producand mass use of such durable goods

in

is

—a

exports

its

This country continues

Israel.

rate

mass

takeoff possible, and, finally, “high

rubber

economy. Libya. New oil fields are expanding the purchasing power of its people. are helping to bolster

Taiwan. three cate-

1967.

in

and

ore

Iron

Liberia.

self-sustaining.

of

1957 to over $47 million

in

economy

the

In

to

farm products increased from $13 million

pro-

up speed as

tries.

changes

Economic

which

authority distinguishes

industrialized

Started to develop.

output,

plane picking the

expansion.

of the country eventually “takes off”

as

velopment.

As

for

favorable side.

the

1967, for example, agricultural exports

In

surplus

a

institutional

encourages

increases

to

payments.

international

of

period,

this

U.S.

years,

2

become

have

exports

vides

and

social,

that

tourism

is

combining

create

prosperity.

buying

of

U.S.

stand on their

we ask them crease

their

to

own

feet.

that when,

do more themselves

food

production

and

to in-

slow

their rates of population increase.

1968

Page 7



USD A

Economic Research

annual survey of the world agricultural situation, focuses this year on certain developments important to U.S. agriculture. Below, Foreign Agriculture ’s

presents highlights

from

Service, in

its

several of these special sections.

World Agriculture: 1967 Review, 1968 Outlook The world’s

agricultural output in 1967 broke the record set in

the previous year, largely because of food production gains in

tions

trade

To

new record, heavy contribuwere made by two commodity groups important in U.S. foodgrains and feedgrains. A third commodity, however-

the less developed countries.

— — had

cotton

the

a second year of low production.

Two

of the areas

news were

that figured importantly in world agricultural trade

Latin America, by the record grain crops

Middle East, by the military

harvested, and the

it

closed the Suez Canal.

crisis that

1

high level; wheat exports were under government ban from June to October. But with

World production

of foodgrains advanced

In

ond consecutive year,

to an all-time high of 571

The wheat harvest was

tons.

was the record the new height. it

million metric

below the previous year’s peak;

just

pushed the foodgrain

rice harvest that

growing and harvesting weather boosted yields 20 per1962-66 average and crops to a record total.

USSR,

Eastern Europe too needs less wheat, and the able to provide most of

world’s largest producer, 1967 wheat production

much

But with

larger beginning stocks in 1967-68 than in

Canadian wheat

1966-67, plus 2 million tons of delivery, the

USSR

again

is

in a net

the Soviet Minister of Foreign

about

5 million tons,

for 1967-68

set

export position. Last August,

Trade forecast 1967-68 exports

at

mainly to Eastern Europe, the United Arab

Republic, and Cuba. In the

reverse:

small beginning stocks and therefore

despite a record crop

a supply well

except 1966-67. In the

first

below that of any recent year

in

rice

production, after a 4-year period with

the second half.

The world's

rice

production record

land China and

in

came

the leading rice exporter, with

of which

about

1



some

buildup this year. Increased inputs offset

USSR

export prospects are smaller; the

1967-68 delivery than

it

remainder were low. There

export commitments, but sales

heavy

its

from

in

in

1967; but 15 per-

stocks

enough wheat

is

1967-68

last year’s

For details on these and other

Page 8

FAER

1967 be-

was commercial exports. (Most of

million

South Vietnam.)

World Feedgrain Crop a Record World production

of

(

to

meet

December-Novem-

high levels.

trimmed wheat

topics, see

38. Office of Information,

sales

during

The World Agricultural Washington, 20250.

USDA,

The world

384 million tons

in

feedgrains, which in

had averaged about

1960-65, expanded rapidly during the

total

(Communist Asia excluded) climbed

1966 and to 411 million

corn crops were harvested

in

in

1967.

Record

the United Slates, Brazil, the Re-

Africa. In the

did last year.

1966-67 (December-November) to about half the previous year's

1

in

million tons (milled),

war high. Record barley crops were harvested in Europe, and bumper sorghum crops in the United States, India, and South

time,

cent went unharvested because of severe drought, and yields on

Situation.

Main-

public of South Africa, and Mexico; Argentina's reached a post-

has curtailed

record acreage was planted

depleted

in

same

purchases of Canadian wheat, and Mainland China thus far has

Argentina,

export-

in

the importing

of the effects of

drought, making 1967 yields surprisingly good. At the

ber) will probably decline

1.7

the government-financed shipments go to

to

In

in

stan- may mean more Chinese rice competing for markets in Europe and Africa. Nonetheless, the 1968 outlook is still favor-

past 2 years.

of the

not reflected

two major Chinese outlets-Japan and Paki-

Canada, stocks as of August 1967 were the highest since 1961- higher than U.S. stocks and the outlook is for a further In

much

is

countries. But the combination of bigger supplies both

importing countries except Japan and possibly India.

In Australia, a

change,

1967.

in

able supplies, for most of the increase took place

345 million metric tons

less for

little

Mainland China, biggest producer, is said to have had a near-record crop; and records were shattered in India, Pakistan, Japan, the Philippines, and the United States. But two Asian Rice Bowl countries fared less well; Thailand’s crop was cut about 15 percent by drought, and Burma’s rose only slightly from last year's low level. 10-percent leap

Total supplies in the four major competing countries are somewhat below those of 1966-67; but so are the requirements of most

bought

should be

half of 1967-68, exports ran about 10

percent below those of a year earlier; but they are expected to

recover

USSR

requirements. In addition, Spain has

able for rice exports from the United States, which

United States, the wheat supply situation for 1967-68

was almost the

its

another large surplus of soft wheat for export.

and procurements were well below the exceptionally high 1966 levels.

above the

World

Western Europe, Eastern Europe, India, and Turkey; average in the USSR, Canada, and Argentina; poor in Australia. In the

1966-67, larger sup-

in

and the grain agency (ONIC) has forecast a recovery in soft wheat sales. Despite a recent sale to Mainland China, this forecast could be optimistic. Import needs are down in other European Economic Community countries, where ex-

total to

the United States,

in

the ex-

in

beginning stocks were low.

France, after a sharp export drop

took a

Wheat crops were record-breaking ones

its

20 years

in

now back

is

plies are available,

cent

1967 for the sec-

in

1967 wheat area the largest

port business, even though

cellent

World Foodgrain Crop a New High

its

and an average crop expected, Argentina

United States, which accounts for half the world's corn

production, acreage had not changed 1967, an

much

since

1964; but

in

acreage increase combined with unprecedented yields

boosted the crop 15 million tons over the previous high. Though total

production of the four major feedgrains (corn, barley, oats,

and sorghum) increased sharply, supplies rose only by 6 percent, to the 1965 level: for stocks were down 12 percent. Exports, exceptionally

large

in

1965-66 because of reduced supplies

in

major competing and importing areas, dropped back somewhat in 1966-67 when supplies in those areas improved. Keen competition

continues; but for the

first

4 months of the October-

Foreign Agriculture

September marketing year. U.S. exports were up 10 to 15 percent from 1966-67; corn exports were up 30 percent. Biggest feedgrain export advance in 1966-67 was made by Argentina, which moved out 6.5 million tons compared with the

More important than

previous year's 3.7 million.

March 1968 corn crop

the size of the

determining Argentina’s corn exports

in

may be whether it could ship out during January-March the larger wheat supplies it was expecting. Area sown for the 1968 corn crop was up 8 percent; that for sorghum, during April-June 1968

15 percent.

Africa produced exceptionally large

of South

feedgrains

sorghum exceeded

Exportable supplies of corn and

1967.

in

5 million tons,

handle only about half during

months of the marketing

year).

but

and port

rail

facilities

May-December 1967 Thus, much remains

could

(the first 8 to

compete

on world markets during January-June 1968.



for less

strong than for corn and sorghum. Mexico’s feedgrain production

somewhat

in

million tons,

1-1.5

it

1967, and with a 1967-68 export goal of had sold almost 500,000 tons of corn to

Western Europe and Japan by the end of 1967, for November-

March

1967 corn crop generated export-

delivery. Brazil’s large

more than

able supplies of

a million tons, but less than half

shipped out during 1967, and year-end stocks were large. feedgrain exports

tralia’s

may

was Aus-

be sharply cut this year by the

drought-based shortage of feed and forage.

U.S. market, Japan, purchases of U.S. grains

leveled off in 1967

mainly because of increased competition from

South African corn. But for 1968, the outlook there with continued

Mexico

is

favorable,

South

from

particularly

and

Africa

again be keen; but Japan has agreed to buy

will

weather helped

Excellent

EEC, harvest

another

major

U.S.

much

The 1967 U.S. crop— 7.62

EEC

production

by new target prices, to become effective

will

of 2.8 million tons for barley

and

1

the

above

be stimu-

this fall.

of about 15 percent of the planted acreage; and to ad-

million

9.58

from the 15-million-bale

bales,

cline

had already cut U.S. stocks to only 12.4 million bales, comin 1966 and 14.3 million in 1965. Supplies

pared with 16.9 million

1967-68 are the lowest of the decade, and by August 1968,

for

may have fallen to around 6.5 million bales. The 1968 U.S. Upland Cotton Program is designed to increase production, particularly of medium and longer staples. Major U.S. export gains in 1966-67 were in shipments to Japan, India, Taiwan, and Italy. 1967-68 (August-July) began slow, with volume about a fourth lower than in 1966-67; but some recovery is expected as the year goes on. Several competing suppliers had low export availabilities for the second year in a row Mexico, the UAR, and Central America. Brazilian production is expected



to recover, but stocks last

stan, however,

August were down. Turkey and Paki-

have large supplies for export. At the same time,

about the same as

foreign

in

1966-67

in

targets

million for corn, primarily to

first half

of the year.

The United Kingdom and Spain are the major non-EEC marin Europe for U.S. feedgrains; but another record U.K.

News

the

A

Spain boosted feedgrain output.

area’s

and

largest corn in

World cotton production, which fell 10 percent in 1966, reat a low level in 1967. Another large decline in the U.S. crop was balanced off by significant increases in India, Main-

increases

USSR

production did not

rise,

the top world producer.

came about through above-average rainfall, increased fertilization, and improved water management. In the United Arab Republic, despite heavy leafworm infestation, fairly which for India

of

control 1966.

In

kept

production

Turkey, production leveled off

crease, after the very large In levels,

Brazil,

about equal

to

the

reduced

at a slight in-

one of 1966.

Brazil boosted

higher

prices;

but

in

Mexico, acreage

1966 re-

mained well below the 1960-64 average, and yields were reduced

March

18,

1968

the pre-

demand reduced

wheat imports about

its

exports of

15 percent in

1967,

it

minimum

$17 a ton) to

to millers (about

rise in

the pro-

too was raised. Stimulated by

these prices, the acreages seeded to rice, wheat, and corn are

estimated to have risen 30, 20, and 5 percent.

Argentina bought 170,000 tons of foreign wheat ing

its

December

harvest.

66 average.

Owing

in

1967, pend-

and deabout equaled the 1962-

to increased acreage,

With plantings of corn and grain sorghum also

increased, the 1967 corn crop set a postwar record and the sor-

ghum

crop was the third largest ever. Beef production, however,

dropped

off in late 1967 as

stockmen

rebuilt herds;

and packers

were squeezed between high domestic cattle prices and dwindling

meat export

prices.

ened by devaluation

producers raised acreage above the reduced

anticipating

in

harvested; but limited port facilities kept 1967 corn exports below

spite a late-season drought, that harvest

India and Pakistan resulted from high yields,

in

producer, increased

1967 following a reduction

spur local wheat output, along with a 20-percent

mained

drop made the

rice

pop-

record corn crop and a near-record rice crop were

ducer price. The corn

Brazil. Soviet

rough

level;

using the difference between the actual cost of imported wheat

World Cotton Output

and

of the

10.5 million for

Grain output rose 56 percent above the 1957-59 ulation, meanwhile, rose 29 percent. Brazil,

1966,

in

The combined harvest

12.2 million for wheat,

and the new increased price of

but the U.S.

countries

in

was a record 57.3 million metric tons (34.6

three major grains million for corn,

1967.

in

rice.

land China, Pakistan,

be

1966.

Latin America, after a decrease

in

registered a sharp gain

barley crop brought an exportable surplus of a million tons, and

In

in

to

Spain, Portugal,

of Latin America, Middle East

expectations, and strong domestic

No Rise

in India,

and a few other countries being offset by declines

kets

in

are expected

countries

— increases

such as Japan where stocks were built up

vious year.

weather

of previous

level

year), a steep export recovery during 1966-67 after a 2-year de-

about a million tons during the

level

the

verse weather, reducing yields on the area harvested.

acreages of these crops

effective

1967.

in

— was

planted (a reflection of the acreage diversion program); to aban-

donment

other European countries. However, barley exports reached only

The

insect

somewhat smaller acreage

rice).

The EEC’s top producer, France, had 1967-68 export

excellent

1966 to 165,000

in

million bales (of 480 lb.)

smallest of this century, owing to the

Food production

market,

a total feedgrain crop about 3.5 million tons

1963 record. In the longer run,

lated

from nearly 220,000 bales

staple crop

Peru,

In

a shortage of irrigation water cut the extra-long-

demand and some domestic production

corn from Thailand because of the short crop there.

less

its

strong

Competition



damage and

import requirements

In the principal

decline.

by hurricane damage.

stocks

Canada’s feedgrain supplies were below last year’s, and world demand is its principal feedgrains- barley and oats increased

later

Central America, crops were again small.

In

Since the 1966 crop had been even more sharply reduced (to

The Republic crops of

and

early in the season by drought

in

The beef export outlook was further darkKingdom and Spain, combined

the United

with the U.K. dock strike and ban on meat imports from South America. These are Argentina’s main markets for its exports of chilled

and frozen

beef.

Page 9

— Mexico, which had had an

initial

success

1966

in

shifting

in

acreage from surplus crops like wheat and corn to deficit crops like

sorghum,

and

rice,

oilseeds,

had an odd reversal

1967.

in

Despite lower support prices for wheat and corn, acreage of both

crops

more

increased;

The

better

varieties

boosted

result in a record crop;

rains that

destructive to

beneficial

erally

and

and the corn crop too set accompanied the 1967 hurricanes, though property and nonfood crops in Mexico, were gen-

wheat yields to a record.

fertilizer

replaced corn

to

food and feed crops.

some newer

in

Rice cultivation has

irrigation areas,

and Mexico

is

now

close to rice self-sufficiency.

The Mexican

demand outrunning

grow

steadily in

production, beef

exports declined; and exports of feeder cattle to the United States

most recent 5-year average. Low producer prices and continued uncertainty about land reform have were near the

level of the

the Middle East does not appear to

in

have suffered any major disruptions from the Arab-Israeli conflict

June 1967, except

of

Jordan. Average or above average

in

crops were harvested over most of the area; Israeli and Syrian crops,

particular, were

in

that preceded the

1967

of the

Israili Government has allowed West Bank’s food production to be sold on the East

Bank. In the United Arab Republic, grain is grown under irrigation and production does not fluctuate significantly from year to year.

The UAR’s

grain

deficit

1967 was covered by imports of

in

100.000 tons of corn and about 2.2 million tons of wheat and



58 percent from the USSR, 21 percent from Eastern Europe, and the remainder divided among Spain, flour (in terms of wheat)

Mainland China, and France. The

UAR

has signed for about

much

from the

USSR. Most

UAR

ment terms of between Beyond the countries others have

crisis,

imports have been on extended-pay-

months and

18

directly

felt its

5 years.

concerned

the Middle East

in

impact through the closing of the Suez

Canal. Since the closing, rates for grain shipments from U.S.

Good Hope have been quoted between $1.50 and $3.50 higher per short ton than benchmark rates quoted "via Suez”. Shipments to Europe from countries

Gulf ports to India via the Cape of

discouraged expansion by large ranchers. Agricultural production

much

500.000 million tons of grain for January-March delivery, mostly

cattle industry continued to

But, with domestic

1967.

except for grain; and the

in Israel

larger than those of the 2 years

at

in

East Africa, Asia, and Oceania have had to contend with higher

and delays, and some of the countries have had

costs

to find al-

ternate markets. This burden has been heaviest for East Africa,

Pakistan, and India, whose trade routes to Europe are

crisis.

But Jordan’s loss of the West Bank of the Jordan to Israel af-

portionately longer than those of other countries.

Still,

fected the

economies of both countries. Most of the refugees from West Bank are now increasing the relief rolls of the East Bank refugee programs. The West Bank produced 20 to 25 percent of Jordan’s grain, 70 percent of its fruit, and 40 percent of its vegetables (all in value terms)- products already in good supply

closing has had less impact than the 1956 one; for,

in

the

many

now

the interval,

large freighters have been built which cannot use the

Canal. Also, where trade

Suez

agreements or

bilateral

treatment, the cost of alternate routes has only a

preferential

minor

bound by

is

pro-

the 1967

effect

on

its

direction.

Philippine Hard Fibers Have Mixed Prospects The two major hard

fibers

produced by the Philippine Republic

have opposite prospects: gloomy for abaca-

produced -but favorable for

fiber

exports are

coir.

abaca

in

Abaca production and

hemp

squares,

a long slump, while for coir both are rising.

in

fast

Producer of more than 95 percent of the world's abaca, the its declining abaca

Philippines suffered an additional setback to

November when

industry last

a

typhoon severely damaged 25

to

in Southern Luzon, one of its three main abaca areas. Since new plantings normally take a year to come into full production, the crop in Southern Luzon would reprovided that producers replant to turn to normal in late 1968 abaca. But with foreign demand on the decline and prices de-

30 percent of the plantations

pressed,

much

of the area

may

be planted to other crops.

down

million pounds, or

Vet there are

still

than

is

some 4

in

13

million

abaca

percent, less than

in

1966.

pounds more abaca on hand

Part, however,

is

due

down by

the typhoon, to prevent total loss.

to a steep decrease in the use of

abaca for

cordage manufacture, both local and foreign. Strong competition

from synthetics and from other natural hard

down

fibers has pulled

pounds in 1967 19 percent below the 1955-59 average. Shipments to the three main markets declined substantially. The United States took 47 million pounds, down 31 percent; Japan, 39 million, down 14 percent; the United Kingdom, 24 million,

exports

to only

below 1966 and

down

152.7 million

31 percent

believed

Page 10

to

fiber, solely for

have been considerably lower than

domestic use, in

1966.

articles

this year, the Philippine

I

is

Rope

has not increased

number

of

Bureau of Fiber Inspec-

abaca grades from 27

— and

to

simplified their

nomenclature. The new system took into account the needs of

and the government hopes

buyers;

foreign

producers meet the challenge offered by other

it

help abaca

will

fibers.

However, both the short-term and long-term outlooks

for

abaca are considered unfavorable. Trade sources forecast pro-

last

in

1968 at around 126 million pounds

Government

year’s already low level.

world market,

if

that position

is

— 23

percent below

officials

to be based

its

and industry

position

in

the

upon cordage uses

alone. coir,

1967 output was about 4.4 million pounds, up some-

what from 1966. Most Philippine coir to

local

1967

is

unbaled, going direct

manufacturers; of the baled fiber

— practically

all

is

950,000 pounds

exported. Last year, exports

in

jumped 46

percent to Japan. Good market West Germany and France. Coir is used in making rugs, mats; and other household articles and also in cordage (where abaca competes strongly). Coirflex, a mixture of coir fiber and latex, enjoys good demand from local percent to 908,000 pounds, 81 prospects are developing too

in

and foreign manufacturers of cushions and mattresses. Production of coir baled for export has difficulties

8 percent.

Production of unbaled abaca

January

Service reduced the

For

Part of this surplus results from the need for immediate strip-

use of

cordage manufacture.

15— including residual and waste grades

needed for exports and domestic consumption.

ping of plants blown

and other household

to offset the loss in

leaders see no hope that abaca will recover

pounds

to an estimated 195.6 million

more than 30

On tion

—was down; and

the manufacture of other products such as rugs, mats,

enough

duction

Last year was the second consecutive one of decline output, with the crop

production —judged by cordage exports

by far the principal

loose liber.

of

local

happy prospects; but the

manufacturers

may

Based on dispatch by

financial

limit

production

FRED

W.

of

TRALGER

U.S. Agricultural Attache'. Manila

Foreign Agriculture

Record Feedgrain Shipment Bound for Japan began

Delivery

month

last

Corpus

at

Texas, on the largest single cash

Christi,

made

export sale of grain sorghums ever

by American farmers. The sale of 200,000

made by Producers Grain

metric tons was

Corporation, Amarillo cooperative

a U.S. agricultural

— to ZENKOREN

an

agri-

cultural cooperative in Japan.

The

37,000

into a

pus

installment on

first

order

ZENKOREN

-

was

23-25.

The

ship sailed for

ruary

26,

carrying

February

on

Yokahama

Feb-

cargo

largest

the

loaded

PGC’s Cor-

ship from

terminal

port

Christi

the $8-million

tons

metric

sorghum ever transported on one vessel. The remainder .of

grain

of

Japan

to

the grain

order will be shipped during 1968.

ZENKOREN

(National Purchasing Fed-

eration of Agricultural Cooperative Associations)

the

is

coop-

and the world’s largest

customer

cash

individual

agricultural

largest

erative in the world

for

American

Producers Grain Corporation

grains.

is

a

marketing cooperative serving over 60,000 grain farmers

southwest United States.

in

ZENKOREN

officials

Above, one of ZEN KOREN’s largest feed milts, located at Kawasaki. Feed manufactured by Zenkoren

worked out by

Details of the sale were

and Robert Boothe,

PGC's director of field service, last November when Mr. Boothe was in Japan as a

member

of

feedgrain

cooperative

a

is

used

produce livestock and

to

poultry, such as pullets, right.

pro-

motion team.

To commemorate the kickoff shipment, Makoto Mihashi of ZENKOREN

President

PGC

met with officers of

mony on board

the

in a special cere-

transport

vessel

Corpus Christi harbor on February

ZENKOREN

vessel,

Maru NO.

in

23.

The

I,

is

38,000-ton bulk grain carrier launched

The trip from Yokohama Corpus Christi January 25-February 22 was its maiden voyage. October.

According fiscal

to

and

culture

million

during

1966-67

imported

Japan

2.4 per-

handled 35.5 percent.

to be a

growing market

imports because

its

own

pro-

5

some

4.5

1966

million

1.3

million beef cattle,

laying hens, 31.9 million

114.5

broilers,

and 5.2 million hogs. U.S. feedgrain exports to Japan, today’s top dollar market for this commodity, totaled over 4.6 million metric tons in fiscal

They were valued and

at

about

about

represented

26

percent of total U.S. feedgrain exports and

65

percent

For the

of first

Japan's feedgrain time

in

fiscal

imports.

year 1966-67,

exceeded exports of corn to that country.

stock and poultry industries.

million tons, corn,

is

handles^ about

currently

The grain sorghum shipments

totaled 2.4

Although Japan promises

to

remain the

leading export market for U.S. feedgrains

production and

and the United States

is

aggressively seeking an

Mixed feed sales during business year August 966- J uly 1967

I

its

1

totaled 3.5 million metric tons.

its

major source of

growing from other

supply, competition

is

feedgrain-exporting

countries.

Foreign

Agriculture,

March

(See 11,

have been meeting buyers

informing

this

competition

importing

in

is

by

countries

about the quality and dependability of U.S. grain export supplies.

This same message to

ZENKOREN

soon be carried

will

members

in

a film

made by

the cooperative in connection with the load-

1.9 million tons.

40 percent of Japan’s manufactured feed

even larger share.

R

million

feeding

1.8

its

February

of

more and more feedgrains are needed in mixed feeds required by the growing live-

feedgrains

j!

&

members were dairy cattle,

As

feed-

created

U.S. exports of grain sorghum to Japan

of

ZENKOREN 1

demand

tons.

declining and as

'

>1

the built-in

members.

million,

for feedgrain

j

million

1966-67.

ZENKOREN

mixed feed production 1969-70, of which

by

by the animal-feeding activities of

$236

ported,

duction

1

is

million tons of yellow corn im-

3.1

I I

grain needs

year

Of the

tons

million

ZENKOREN.

was handled by

Japan continues

1

14

ZENKOREN’s share will be 7 million Basis for ZENKOREN's increasing

Japanese

tons of grain sorghum; 40.2

cent of this

to

Japan's Ministry of Agri-

Forestry,

year

a

last

ing a total Japanese

of

p.

9,

1968.)

ing

of

the

grain

sorghum shipment

last

month.

The

film,

step

which

was

shot

in

various

will

show

by step the handling of U.S.

feed-

locations

in

the

United States,

from the time

grain

it

leaves

the

farm

|

Officials of the cooperative are forecast-

'a |

March

18,

1968

One way U.S.

feedgrain export programs

until

it

arrives at shipside.

Page 11

Team Sees Good

U.S.

Prospects are good for the continued high level of

cash sales of U.S. wheat to Japan,

Korea, and Taiwan, acseven-member U.S. wheat

Philippines,

the

cording

a

to

trade team

following a 3-week

investiga-

tion of these markets.

of

USDA

of

wheat

The team, which was made up and

officials

growers, was

representatives

20 to February

ernment

the Far East

in

9.

officials,

importers

U.S. interest



Hard wheats high-protein Winter and Spring- -but competition from

Canadian Manitobas and Australian Prime Hards is ever present.

Wheats for every purpose

markets, to stress the

is

currently exporting

markets

to the four

The

visited.

grow

in all

four Asian

highly

impressed

From

ports.

work of Wheat Associates USA, market development organization, which

it

because

of

stabilized

at

at

and

dependable

more than 4

represent

year

wheat

tories

U.S. wheat arrivals, the team

Open and

re-

frank discussions were

held with buyers and users of U.S. wheat respect to arrival quality, variations

protein, moisture,

was

current

the

and weights. group that

clearly evident to the

market.

year

Also,

buyer’s

a

definitely

is

markets want

these

to

be

assured that they can rely on the United States as a dependable supplier at competitive prices.

markets

the

In

noodles are a

visited,

leading end use of wheat flour. States

is

The United

a principal supplier of the types

of wheats used for noodle flour

White and medium-protein

Western

Hard Winter

wheats. Flowever, the United States faces

and

keen

continuing

FAQ

Australian

wheats products

for

are

the

competition

(fair-average

noodle

gaining

in

demand. these

from

quality)

Bread

countries

The team visited the Philippine Baking School where Jose' Vergara, left, vice president of the Philippine College of

Arts and Crafts, explains operations. The College is cosponsor of the school along with Wheat Associates USA.

Page 12

revise

prices at

reflect

to

the

in

for

wheat

supplies

an

8-

its

to

million

tons

(160

normal stocks on hand I

1-week

supply.

This

has been necessary to reduce inven-

it

in

the

order to country’s

million tons.

make record

storage available rice

crop of

14

im-

all

which

The

Under

resale prices to millers.

millers.

The

was

there

wheat

reflected

tween

wheat

resells

it

to

objective of this plan

is

world wheat price differentials

system

bought

competitive prices. While Japan imports

buyer’s

a

is

Japanese Govern-

ment’s Food Agency, which buys

between prices

Japan’s greatest concern centers around

market the

ported wheat, launched a 5-year plan to

flour millers.

about 84 million bushels.

conviction that

in their

Last July

year should be around 56 percent- or a total of

Japanese are

to price, the

wheat

present

market.

old

of Agriculture has been representing U.S.

satis-

for

around 4 percent annually; market in the current

million bushels),

It

With respect

the U.S. share of this

slightly

Asian customers are

requirements

flour.

Japan, wheat market growth appears

with the

Asia for the past 12 years.

clearly observed that

unique

the

end uses of wheat

a

cooperation with the U.S. Department

was

U.S. wheats do not compete with each other

reliable

Team members were

the mission’s contacts in the

four markets,

In

countries.

in

of very regular shipments.

The United States has been supplying

the

tion will continue to

with

can be expected that Japan

it

major classes of wheat from West Coast

of

the future,

in

continue to rely heavily on a system

all

customers

team saw evidence that wheat consump-

ported.

grow, and

and grain

The United States

fied with

help alleviate the situation

flour millers,

these

and food proc-

Japan’s total grain needs will continue to

courteous but firm

about 125 million bushels of wheat a year

in

in

will

growing Asian cash wheat markets with

in their

general,

of grain storage

complexes are under construction Japan’s major port areas. While this

essing

will

buyers have experienced.

In

major supplier of

the

major types of wheat at competitive and to discuss any problems that

in

A number

The

improve.

to

also the

with gov-

prices,

for cash

is

bread-flour

from January

United States as a dependable supplier of all

United States

Members met

assure

to

continue

bakeries

as

Asian Wheat Markets

at

the

the

relationship

which the Food Agency

and world

Dark

by

paid

prices

flour

made

last

price

differential

revisions

U.S.

little

Northern

July clearly

Spring

be-

and

Canadian Manitobas. Prior to this, U.S. sales of

disappointing

even

were competitive.

though

Now

DNS

had been

export

prices

that this has been

corrected, Japanese flour millers have ex-

pressed

have

keen interest

in

more than doubled.

DNS In

and the

sales

future.

members

U.S. wheat team

see assembly

Romen

line in the Instant

noodle factory

at Funabashi.

near Tokyo. The product comes preseasoned and sells for about 7 cents a serving. Noodles are the most widely used end product of wheal in Asia.

million bushels. Port facilities, storage, and

improvements are needed,

transportation

and the current 5-year plan provides substantial undertakings

Last year -the

first

in

for

these areas.

year following Tai-

wan’s transition from a P.L. 480 wheat mar-

-Taiwan bought

ket to a cash buyer

15.5

million bushels of U.S. wheat, representing '

;

-

percent

93

of

million bushels; to be

18.5

Purchases

purchases.

total

during the current year

will

be about 17.5

1969 they are expected

in

Taiwan

million.

is

primarily a

market for Western White and mediumprotein Winter wheats; however, there is growing

interest

Winter

high-protein

in

and Spring wheats.

The Republic

China has an

of

official

policy to increase the production and export of rice

and

wheat

imports

policy

the

at

same time

and

to increase

consumption.

This

motivated by economic as well as

is

nutritional factors as the country strives for

annual

revisions

made

be

will

to

reflect

world price differentials prevailing preceding year.

What

this

in

means

is

the that

last

inaugurated

July

school

baker’s

a

training

cooperation with the Philippine

in

College of Arts and Crafts.

Both of these efforts seem to be quite

a supplier’s price behavior in a given year

have a significant effect on the amount

will

!

of business he will

sumption

do the next year.

Pasta

Success

in

the Philippines

year totaled 17.2 million bushels.

The U.S.

share of the market has jumped, from 51 percent

1964-65 to 95 percent

in

Currently the United States percent

of

the

is

in

1966-67.

holding 90

market. Philippine millers

have imported small quantities of Austra-

Prime

lian

Hard

White wheat.

a

high-protein

In addition,

Hard

Canadian Mani-

Durum

the

flour

in

the

companies Philippines and as buyers of wheat

first

flour milling firm

purchase of U.S.

millers

con-

quite

are

flour imports at

Several factors

in

Korea contributed in

to a

suppliers are temporarily out of line.

wheat flour for food.

for

In addition,

uses.

A is

nationwide bread promotion program

underway

as a joint effort of the Philippine

Flour Millers Association and ciates

USA.

March

18,

In addition,

1968

Wheat AssoWheat Associates

further accelerated

Korea. Stocks on hand appeared

more than adequate. Nevertheless

constructed,

raising

the

number to 36. Like other countries visited, Taiwan has excess milling capacity and

among

competition

mills

is

keen.

Flour prices have dropped 14 to 18 percent the past year

increase

accompanied by

a sharp

consumption.

in

Credit to Taiwan Millers

terms that are rather attractive.

5-year

Four years ago. Wheat Associates started

modest market development program in Taiwan designed to increase consumption of wheat foods. In 1965, Wheat Associates opened an office in Taipei. This has proved

plan

to be a very timely

has

wheat consumption

creasing, and by 1972

second

Some new

February 1967

a

Wheat imports were

rates in

in

been

During the past year wheat traders have

attractive in light of prevailing high interest

case U.S. prices or

have

been extending credit to flour millers under

consistently competitive to avoid any quick in

ment controls mills

country, creating a stronger de-

by commercial credit, which became very

by competitors

the flour milling in-

and potato crops through-

they are very conscious of quality, grade, and price. Every effort must be made to be

sales

Wheat imports and

considerable wheat flour went into industrial

farmers for an

of unmilled rice.

calendar

1967 over earlier levels. Unfavorable wea-

mand

rice

to

amount

dustry were completely freed from govern-

in

near doubling of wheat imports

the

and traded

flour

equivalent

macaroni and

low prices.

out

private milling

One

European

are facing from

from the Pacific Northwest, faces competition from Australian FAQ wheats. six

as

cerned over the growing competition they

ther reduced rice

There are

such

wheat.

Philippine

import 50,000 tons of wheat (1.8

total

tobas offer constant competition. Soft White

wheat,

'

made

recently

of increasing bread con-

emerging as a consumer item

Philippines.

the

in

will

Philippines.

in the

products,

spaghetti, are

The Philippines is the largest U.S. market for Hard Red Spring wheat; exports last

I

means

effective as a

ment

million bushels) which will be milled into

;j

i|

a broader based diet. This year the govern-

is

in-

the end of Korea's

estimates

of

wheat

import needs range from 30 million to 48

been

liberalized.

represented

move now

that P.L. 480 and wheat trade American wheat is very ably

phased

in

out

Taiwan through Wheat Asso-

which provides market information, technical services, and promotional aid. ciates,

Page 13

1

CROPS AND MARKETS SHORTS Weekly Report on Rotterdam Grain Prices

Cuba

Between February 28 and March 6, 1968, U.S. Soft Red Winter and Russian wheat prices increased 3 cents per bushel,

tained in 1965. Exports of refined sugar from the

U.S. Hard Winter,

while

12

percent,

increased 4 cents.

U.S.

Dark Northern Spring and Canadian wheat prices increased cent. Argentine wheat remained unchanged. Prices for South African White corn increased cent, while Argentine corn was down 3 cents, U.S. corn prices were un-

calendar 1966, 21 percent

in

992,800 tons

to

abroad

in

in

than the 2,330,000 ob-

USSR

amounted

1966, up 64 percent from the 604,100 shipped

The

1965.

less

largest importers of sugar

from the

USSR

1966 were Iraq, Yugoslavia, Iran, and Afghanistan; however,

in

shipments were made

to at least 25 other countries.

1

1

London sources have reported 1968 season opening

changed.

A

Australian, South African Fruit Prices Australian and South African canned fruit

listing of the prices follows.

in

Price levels are generally above 1967 openings in

Wheat: Canadian No.

USSR

2

Feb. 28

November 1967 devaluation

Dol.

Dol.

Dot.

per bu.

per bu.

per bu.

2.01

2.00

2.21

.95

1.92

0)

Manitoba

121

1

year

ago

A Mar. 6

Item

below

year

but

last

in

prices for

Kingdom. pounds sterling

the United

equivalent U.S. dollars because of the of the British pound.

PRICES FOR SOUTH AFRICAN

CANNED FRUIT

Price per dozen units Fruit and

Fancy

Choice

Standard

U.S. No. 2 Dark Northern Spring, 14 percent

1.92

1.91

2.07

U.S. No. 2 Hard Winter, 12 percent Argentine

1.85

1.81

1.95

1.80

1.80

1.93

U.S. No. 2 Soft Red Winter

1.76

1.73

1.94

2 Vi

U.S. No. 3 Yellow Argentine Plate

1.39

1.39

1.62

8

1.53

1.56

1.64

Peach halves, (Clingstone):

South African White

1.44

1.43

1.57

2 Vi

Corn:

Apricot halves:

No.

1

oz

No.

'Not quoted. Note: All quotes are

Rotterdam and

c.i.f.

for 30- to

60-day delivery.

8

1

oz

1967

1968

1967

1968

1967

U.S.

U.S.

U.S.

U.S.

U.S.

1968 U.S.

dol.

dol.

dot.

dol.

dol.

dol.

3.22

2.76

3.01

-

2.87

2.52

1.96

1.72

1.86

1.62

1.68

1.47

1.30

1.17

1.26

1.14

1.22

1.11

3.22

2.76

3.08

2.64

2.94

2.52

2.01

1.72

1.94

1.66

1.86

1.59

1.30

1.14

1.26

1.1

1.22

1.08

Pears:

2 Vi

Indian Sugarcane Acreage Lower

No.

India’s second official estimate of sugarcane acreage for the

current agricultural year (July-June 1967-68)

than

in

1966-67.

estimated

at

Total area

2,050,000

8.8 percent lower

is

under sugarcane cultivation was

hectares

(5,065,550

acres),

compared

with the adjusted figure of 2,248,100 hectares (5,555,055 acres) in

oz

sugarcane

profitability

of

acreage

other

crops,

1967-68

in

particularly

2

1/2

No. 8

1

reflects

increased

Despite

oz

1

a sugarcane production of

the 92.7 million tons in

now changed

the

100 million tons

8 oz

position

favor

in

larger plantings are anticipated in

of

sugarcane,

USSR

had a record sugar production

million tons

in

were low. Declining sugar content problem in the USSR. rates

1966 and the 1961-65

latest available figures

show

of sugar averaged 35.2 kilograms in

consumption

in

sells for

USSR

Page 14

1.20

1.30

1.17

1.26

1.14

3.99

3.69

3.78

3.51

3.64

3.39

2.48

2.31

2.38

2.22

2.31

2.16

-

-

1.40

1.38

-

-

4.41

4.14

4.27

4.02

4.13

3.90

2.59

2.46

2.52

2.40

2.05

2.34

-

-

1.47

1.44

-

-

a current

lb.).

consumption Total sugar

0.47 ruble per one-half kilogram, or 0.94 lb.).

imported 1,840,900 metric tons of raw sugar from

CANNED FRUIT

and

Fancy

V2

No. 8

1

oz

Choice

Standard

1967

1968

1967

1968

1967

1968

U.S.

U.S.

U.S.

U.S.

U.S.

U.S.

dot.

dot.

dol.

dot.

dol.

dol.

3.57

3.12

3.36

2.94

3.22

2.82

2.24

1.95

2.14

1.86

2.06

1.80

1.47

1.32

1.40

1.26

1.36

1.23

Peach halves, (Clingstone): 2

V2

No. 8

1

oz

3.40

2.94

3.26

2.82

3.12

2.70

2.10

1.83

2.03

1.77

1.96

1.71

1.40

1.32

1.36

1.20

1.33

1.17

Pears, halves and quarters: 2 V2

No.

1

8 oz

that per capita

1966 (77.6

is

approximated 8.23 million tons (9.86 raw value). The most common kind of white

ruble per kilogram (47.2 cents per

The

beets

that year

million short tons,

sugar retailed

in

1.80

1.33

can size

2

average of 59.2 million tons. Although yields were up, extraction

The

Fruit

Apricot halves:

raw value) for the 1967-68 year. This production was processed from the 1967 harvest of sugarbeets, which totaled 86.8 million

compared with 74.0

2.73

2.08

Price per dozen units

1968-69.

of 10 million metric tons of refined sugar (12 million short tons,

tons,

3.15

1.86

PRICES FOR AUSTRAFI AN

and

Record Soviet Sugar Production Indications are that the

2.85

2.15

compared with

1966-67. Partial decontrol of sugar has

price

3.29

1.92

the

smaller acreage, increased yields this year are expected to result in

2.97

Fruit salad:

No.

grains.

3.43

2.22

Fruit cocktail:

2 Vi

1966-67.

Reduced

8

1

3.64

3.18

3.43

3.00

3.26

2.88

2.38

2.07

2.28

1.98

2.20

1.92

1.50

1.32

1.44

1.20

1.40

1.23

4.13

3.84

3.92

3.66

3.78

3.54

2.62

2.43

2.52

2.34

2.45

2.28

1.75

1.59

1.68

1.56

1.64

1.44

4.69

4.38

4.48

4.20

4.34

4.08

2.90

2.73

2.80

2.64

2.73

2.58

1.89

1.80

1.82

1.74

1.78

1.68

Fruit cocktail:

2 V2

No.

1

8 oz

Fruit salad: 2

'/2

No. 8

oz

1

Foreign Agriculture

quoted are

Prices

U.K.

c.i.f.

Australian canned fruit total 2 percent for

Quantity discounts for

ports.

percent for 25,000 to 49,990 cases,

1

50,000 to 99,990 cases, and

100,000

3 percent for

cases or more. Promotional allowances are 30 U.S. cents per case. percent Quantity discounts for South African canned fruit total 1

Wz percent for 20,000 to 35,000 cases,

for 0,000 to 20,000 cases, 1

and 2

allowed on

is

additional 2 percent

shipped before June 30, 1968.

fruit

Tobacco Exports Up

U.S.

An

percentfor 35,000 cases or more.

1/2

January

in

recorded

in

January 1967. Most of the gain was

exports of flue-cured.

in

For July 1967-January 1968, exports of unmanufactured 1

to-

percent smaller than the

1.6

7-month period of

the similar

in

fiscal

1967.

Exports of tobacco products

January 1968 were valued

in

compared with $9.4

$8.9 million,

million

at

January a year ago.

in

1967

1968

1,000

1,000

dollars

dollars

26,463

33,410

23,172

29,097

Burley

2,987

2,351

2,401

2,342

Dark-fired Ky.-Tenn.

1,858

2,086

1,132

485

536

979 284

,439

275

1,025

33

112

21

58

0

25

Va. fire-cured

.

1

Maryland Green River One Sucker

1

102

273 263

78

143

363

Black Fat

Cigar wrapper

...

Cigar binder

Cigar Other

Total

.

.

.

350 239 76 0

317 360 59

181

653 1

1

1

20

19

12

12

3,044

4,828

558

692

36,930

44,296

29,213

34,885

filler

Includes sun-cured.

i

....

.

.

.

.

.

Chewing and snuff 1 ,000 pounds Smoking tobacco in pkgs. 1,000 pounds .... Smoking tobacco in bulk 1,000 pounds .

1967

1968

Million dollars

.4,619

2,796

.1,769

1,599

7

28

80

127

771

478

.

Retail

.

sales a

.

...

.

of

cigarettes

1966 and

year,

of 1

developed

in

in

9.4

8.9

1968

Japan

in

together produced around 210,000

net) of cotton

lb.

in

1966-67 (August-July). This

early indications will

Production

A

in

be about the size of the current harvest.

major part of who have given in

is

1965-66 and from

Mozambique amounts to around 180,000 bales. the cotton in Mozambique is grown by African

farmers

However, European

in

little

modern techniques. number of farmers, both improved varieties, more

attention to

recent years an increasing

and

African,

are

using

and better cultural practices. These, together with substantial financial and marketing assistance from Mozambique’s Cotton Institute established in 1962, point to production increases in the future. Cotton area in Mozambique effective

insecticides,

totals

acres, but yields per acre are less than

around 950,000

a year.

Area

is

all

of the

raw cotton

avail-

Mozambique and Angola Cotton Production

119.1

United

billion

Kingdom

pieces,

in

in

in

1967

compared with

1966 and 53 percent

and Nuts

14 Australian, South African Fruit Prices Grains, Feeds, Pulses, and Seeds 14 Weekly Report on Rotterdam Grain Prices

Climb the

compared with 60.6 percent

Continued expansion

18,

made

the United States.

approximately the same as was produced

15

Sugar, Fibers, and Tropical Products 14 Indian Sugarcane Acreage Lower

14 Record Soviet Sugar Production

Tobacco

12.0 billion in 1965.

j

March

cigarettes

filter-tipped

all

Cotton ...

Filter-tipped brands accounted for 65.9 percent of total sales

re

bales (480

Fruits, Vegetables,

new record

17.6 billion in

1965.

1,

filters

Crops and Markets Index .

British Cigarette Sales

-

March

able for export in the overseas Provinces.

Bureau of the Census.

last

taking out the nicotine con-

Except for domestic consumption, estimated at around 10,000 and 15,000, respectively, for Angola and Mozambique, the entire production is exported to Portugal. The Metropolitan buyers in

Total declared value

'

in

Portugal are legally bound to purchase

Million pieces

1

and

Angola produces around 30,000 bales of cotton

Cigarettes

reached

the harshness of Japanese leaf

thought to be around 100,000 acres.

Cigars and cheroots

.

cigarette brand,

100 pounds.

January

,000 pieces

Filter-Tipped Cigarette

article appearing in The Japan Times. Wakaba, was to be placed on sale in some Japanese markets on March 1. This brand was to be sold on an experimental basis. It is made with a new type of filter-tip developed by the Japan Monopoly Corporation. The new tip is made of wood pulp. The Monopoly claims that the new filter is effective in reducing

EXPORTS OF TOBACCO PRODUCTS Kind

1

135 million pieces from 900 million in 1966.

According to a recent

new

now

Bureau of the Census. U.S.

,

Mozambique and Angola

1,000

pounds

.

1

Mozambique and Angola Cotton Production

1968

1,000

.

to

New Japanese

Prior to

pounds Flue-cured

1.97 in 1965.

Value

Quantity 1967

filter-tips)

and

Sales of smoking mixtures for pipes and hand-rolled cigarettes dropped from 29.7 million pounds in 1966 to 29.6 million in 1967. Snuff sales were 700,000 pounds— the same as in 1966- and cigar

contained acetate

[Export weight]

Kind

1.90 in 1966,

pared with 223.3 million.

JANUARY

IN

compared with

tent of the leaf.

EXPORTS OF UNMANUFACTURED TOBACCO

U.S.

1.86 pounds,

a

bacco totaled 364.9 million pounds, 412.6 million shpped out

was only Even with the records sales of cigarettes last year; the total manufactured weight of cigarettes dropped to 221.3 million pounds, com1,000 cigarettes (including regular and

of

consumption rose

Exports of unmanufactured tobacco from the United States in January 1968 totaled 44.3 million pounds, up 20 percent from the 36.9 million shipped out

finished weight per 1,000 cigarettes. In 1967, the average weight

in

sales of filter-tips has reduced the

15 U.S. Tobacco Exports

Up

in

January

15 British Cigarette Sales Climb

15

New Japanese

Filter

Tipped Cigarette Page 15

U

DEPARTMENT OF AGRICULTURE

S.

WASHINGTON.

C.

D.

20250

U S

POSTAGE AND FEE PAID DEPARTMENT OF AGRICULTURE!

OFFICIAL BUSINESS

LSCA°^T

a

1

kc R

CC L

B2

ie

E

ELTSVIU E C1 C

Bpf Ten INCUS ST A ELTSVILLE

md

2C7C5

To change your

address or stop mailing, send to Foreign Agricultural Service, U.S. Dept, of Agriculture, Rm. 5918, Washington, D.C. 20250. tear

sheet and

this

off

Agriculture in Agriculture

labor force

Romanian economy. Two-

a vital industry in the

is

have

is

US$16

product of

national

rural,

is

agriculture's

billion,

the

best

sown per worker). Of

natural conditions for agriculture

most dense land-labor

its its

and 24.7 million acres

Agricultural production in

years and

recent

in

Eastern Europe.

In

million acres

is

ment of the

agricultural land, used.

farmers.

Romania has made impressive

gains

these

arable land

all

one of the most rapidly expanding

is

in

ratio (3.2 acres

is

arable. Nearly

is

in

metric tons of grain, mostly corn.

Western

Its

Europe and Japan. Fresh

52,000 metric tons

in

million

1

1965 to 96,000

and

oils

77,000, and fresh vegetables

major

and sugar are shipped

in

the

The

incentives of farm

object of

workers

j

Canned

fruit

exports

7.9 million metric tons of 1966 to 6.8 million tons.

Another area of concern is the discrepancy in living standards between urban and rural populations. Because of good harvests

130,000 metric tons. Western

USSR

are

since

vegetable, and. wine markets. Eggs, animal fats,

fruit,

increase

to

is

Hungary, and Yugoslavia. Even so, the 1967 wheat harvest was 5.8 million metric tons, up from the 1961-65 average of 4.3 million. The 1967 corn harvest was down from the record

exports ranged from

1966.

Europe, other Eastern European countries, and the the

programs

Bulgaria,

1966 were 82,000 metric tons, wines 46,000, edible vegetable

in

plots for collective

corn yields are below those of Romania’s immediate neighbors,

million

1.5

major grain markets are

fruit in

of private garden

plots are limited to about an acre.

Although total harvests are sizable, the yields per acre for both wheat and corn, Romania's two staple cereals, are low. Romanian wheat yields are below the average for Eastern Europe, and

a major exporter of agricultural products in Eastern

is

annually ships between

It

inviolability

Farm and production problems

liminary estimates indicate an increase of less than 3 percent.

Romania

The

state

1965. Plans were to in-

crease the 1967 production by a further 5.8 percent, but the pre-

Europe.

pounds per acre of active ingredients on arable

and managers.

in

1966 the gross agricultural product of the

country was 11.6 percent more than

wheat and corn have

application has been raised from

1955 to more than 28 pounds per acre

in

goals of the

total area of 59.3 million acres (about

the size of Minnesota), 37.1

of

varieties

fertilizer

in 1966. Other program are increased farm prices, more machinery, and a reorganization of farm management. Related state programs affecting agriculture are the establishment of regular monthly wages for collective farm workers, pensions for retired collective farm workers, and the establish-

land

exports was credited to agricultural products.

Romania has

new

increased,

the low level of 2

contri-

bution was about 30 percent; 35 percent of the value of total

Eastern Europe and

been

been introduced, and

and about 55 percent of the employed by agriculture. Of an estimated 1967

thirds of the population

gross

Romania Gains Momentum

roads,

smaller amounts.

income has increased somewhat; but housing, and many other facilities are below

1965, farm

schools,

hospitals,

urban standards. Prices of food and commodities are fixed by the central govern-

Agricultural policy Collectivization

was not completed

in

ment, and there

Romania

until

Currently, about 92 percent of the agricultural land state farms,

collective farms,

4,600

acres.

plots.

State

held by

Romanian

discussion

of

and that

state

of calories

too large

sugar

farms should be adjusted to be about

quate

run from

agricultural program, which

1966 through

1970, emphasizes

for increased agricultural efficiency

Page 16

is

is

supposed

will

develop

during

the

in

Romania

Although the per capita intake

(3,160 per day)

is

one of the highest

in

one of the lowest. Because of poor or mixed stock, inadeand feed, and inefficient methods, the livestock

care

industry state

farmers,

Eastern Europe, per capita consumption of meat, milk, eggs, and

2,200 acres.

The current

evidence that a market-oriented econ-

benefit

Considerable scope exists for increasing the domestic market

agricultural is

little

is

would

for certain agricultural products.

which are somewhat smaller, range from 3,700 Current

which

present 5 year agricultural program.

farms average 7,100 acres;

policy implies that the present size of the state farms for efficiency

omy,

by collective farms, and by members of collective

farms for household

to

is

1962.

is

not growing as rapidly as other agricultural sectors.

to

ROGER

improved technology

E.

NEETZ ERS

Foreign Regional Analysis Division,

and output. Irrigated areas

Foreign Agriculture *

U.S. GOVERNMENT PRINTING OFFICE:

1968 301-805 (FAS-36)

L