Foreign agriculture :weekly magazine of the United States Department of Agriculture, Foreign Agricultural Service, U.S. Department of Agriculture

Historic, Do not Archive Document assume content scientific knowledge, reflects current policies, or practices. JULY 27, 1964 HARD CORDAGE ...

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

JULY 27, 1964

HARD CORDAGE FIBERS IN

A

CHANGING WORLD

OUR EXPANDING EXPORTS OF

BEANS.

BRAZIL

PEAS,

AND LENTILS

EXPORTS MORE WHEAT

FOREIGN AGRICULTURE Including

FOREIGN CROPS

AND MARKETS

A WEEKLY MAGAZINE OF THE UNITED STATES DEPARTMENT OF AGRICULTURE

FOREIGN AGRICULTURAL SERVICE

FOREIGK AGRICULTURE Including

i

JULY

FOREIGN CROPS AND MARKETS

VOL

II

1964

27,

NUMBER 30



i!

Contents

Tanganyikan sisal being dried on racks after machine processing. World production and trade in this and the other two major hard cordage fibers are discussed in story, page 3.

a Changing World

3

Hard Cordage Fibers

5

Germany Speeds Movement Toward Common External

6

U.S. Exports of Beans, Peas, and Lentils Continue

7

Brazil Imports

9

Market Oevelopment

More Wheat As

Its

German Tender

To Expand

Harvests Oecline

Makes

for U.S. Beef

First Dollar Dairy Cattle Sale to Iran

European Marketing Requirements for

U.S.

Onions

World Crops and Markets (Commodity index on page

11

Tariff

Buys 700 Head of U.S. Feeder Cattle

Italy

U.S.

in

16)

I

I I

Orville

Freeman, Secretary of Agriculture

L.

Dorothy H. Jacobson, Assistant Secretary for International Affairs

Raymond

A.

Editor: Alice

loanes. Administrator, Foreign Agricultural Service

Fray Nelson

Associate Editor: Ruth A. Oviatt

Advisory Board: W.

A. Minor,

Erhardt,

Chairman; Wilhelm Anderson, Burton A. Baker, Douglas M. Crawford, John H. Dean, L. Hume, Robert 0. Link, Kenneth W. Olson, Donald M. Rubel.

F.

Leslie

David

This magazine

is

published as a public service, and

its

content may be reprinted freely.

Service, United States Department of is published weekly by the Foreign Agricultural Washington, D. C. 20250. Use of funds for printing this publication has been approved by the Director of the Bureau of the Budget (December 22, 1962). Yearly subscription rate is $7.00, domestic, $9.25 foreign; single copies are 20 cents. Orders should be sent to the Superintendent of Documents, Government Printing Office, Washington, D. C. 20401.

Foreign

Agriculture

Agriculture,

Hard Cordage Fibers

in

a Changing World

After more than a century of unchecked expansion, the hard cordage fiber industry

By

is

faced with new

and

vigorous competition

the

manmade fibers.

CECILLE M. PROTZMAN

Sugar and Tropical Products Division

Shortly afterward, abaca

Foreign Agricultural Service

The three and abaca leaders

in

a

true

hemp

with a



sisal,

henequen,

as a leading cordage fiber

century ago and

their fields,

are

still

the

undisputed

1963 production of more

than 2 billion pounds.

However, several forms of competition have developed Among these are the new methods of commodity handling that eliminate the need for hard fiber products and the nylon and other synthetic ropes which compare well in both price and characteristics with hard in late years.

fibers.

Of

the hard fibers, sisal

ing for 1,445 million

the most important, account-

is

pounds, or 71 percent, of the world is used

production in 1963. About 70 percent of this fiber in agricultural

twines and ropes and most of the balance

carpet and packing twines.

quen

is

normally used

in

became known outside the

Philip-

newcomers soon displaced soft, or true hemp (a Temperate Zone crop), which had been the main cordage fiber. Expansion in their production, however, was gradual, owing to their perennial nature. (They require several years to reach maturity and then produce fiber-yielding leaves the year round for a long period of time.) While the shift in production from soft to hard fibers was going on, demand for fibers was also increasing, reflecting the expansion of world needs for farm twines, marine, and other industrial fiber products, as well as the increased needs in times of war. However, sharp changes were experienced in some years. especially grains and In times of bumper world crops hay or increased military action, demand for cordage, bags, and other fiber end products places unusual pressure on supplies. Conversely, reduced crops or lesser demand pines and henequen, outside Mexico. These tropical

principal hard cordage fibers

—displaced

more than

in

from

Next

in

importance, hene-

binder and baler twines and

smaller or lower priced cordage.

Abaca

is

best suited to





result in stocks that are larger

than normal. Thus, the price

normally affected on a short-time basis more by changes in demand than by changes in

of hard cordage fibers

is

production.

marine cordage or other products exposed to water. It competes with better grades of sisal, and henequen, with the lower ones.

The United States and Europe largely influence the demand for hard cordage fibers. Both are entirely depen-

Upward trend since

and

specialized, better grade ropes used for

dent upon other countries for their supply of hard fibers 1

800’s

The production of these fibers has trended upward since about 1836 when sisal was first introduced into East Africa.

fiber

products.

The United

States

is

normally the

world’s largest importer of these items. In 1963,

about 312 million pounds of

sisal,

it

imported

henequen, and abaca.

Machine drying of decorticated abaca, Davao, Philippines.

j

$28 million. Of the European countries, the is the largest importer of hard fibers; others are Japan and Australia. valued

at

United Kingdom

demand,

Sisal:

in

somewhat hampered exports. 1963, the government urged that measures bel

Early in

taken to strengthen the domestic

industry.

sisal

posed strengthening the registration system of

'

It

pro-j

sisal

ex-

'

port prices, increasing financial aid to the trade, possibly

minimum

setting

of

export prices, and promoting expansion

markets, particularly in the Soviet

its

Union and

other.

East European countries.

Brazil

Africa,

(constant fluctuation

the value of the cruzeiro) has

Currently, 45 percent of these cordage fibers originate in the developing countries of Africa, 40 percent in the Western Hemisphere, and about 15 percent in Asia. Practically all of Africa’s production is sisal and most of Asia’s, abaca; but the Western Hemisphere produces both sisal and henequen.

The coun-

resulting in increased stocks of fiber.

foreign exchange problem

try’s

| j

African production of

sisal

in

1963 was 919 million

pounds, or 64 percent of the world total. Of yika produced 476 million pounds; Kenya,

this,

Tangan-

157 million;

r

t

Henequen: Mexico

j |

Henequen

produced mainly in Mexico, where in 1963 over 300 million pounds of this fiber were processed. Hub of that country’s industry is the Yucatan Peninsula, which! counts henequen as the major item in its economy. is

i

I

150 million; Mozambique, 70 million; and the Malagasy Republic, 53 million. Practically all Africangrown sisal is exported as raw fiber. However, Kenya has small, long-established factories, and Tanganyika, in line Angola,

with planned industrialization, factory,

which

beginning a small twine

begin operation this year.

will

More than 95

is

from plantations or

and the remainder from small farms or hedgerows. The government has announced plans to encourage both types of cultivation, with the goal of increasing production to over 500 million pounds by 1970.

A

significant

mostly

expansion

in the

connecting

estates

rail

in

acreage

is

to be

northern part of the country near the line.

export

licenses,

sisal

export prices and

marketing

taxes,

and a

government and industry company to operate existing sisal estates and to develop new ones. Tanganyika, needing means for financing development, has since December 1962 levied an export tax ranging from 5 to 20 percent on sisal, its most valuable export. Most of this tax has been passed on to consumers because of already increased production costs, resulting mainly from the recent wage increases. During early 1963, the export price was the highest it has been since 1952, as a joint

result of tightness in supply.

Kenya, second in African production of sisal, grows almost all its crop on plantations but is also encouraging small-farm output.

It

has established

for

much

some processing

to

units

throughout the country to handle production from small farms and has started one nucleus estate, with surrounding



it

of manufac-i

stressing exports

domestic mill consumption has gained

where

in

importance:

'

absorbs about 80 percent of the crop.

j

The smaller crops of the past 2 years, combined with* demand by domestic mills, led to severe restric-tions on exports of fiber during many months of 1963 and) resulted

in

hardships

who had

States

Considerable change of

fiber

to

is

in

the

United-

taking place in the organization

Yucatan henequen

the

importers

contracts placed for henequen.

industry.

The government

encouraging small-farm production of this former plantation crop by restricting acreage and also by extending credit to families relocated

now own

about 80'

produce 60 percent of the fiber. To expand production of government has proposed that the handling and marketing costs be lowered and that social security! benefits and better financing be made available to farmers. i

these farms, the

j

The government

and building new from leaves harvested by small farmers. Most of the cordage factories of Yucatan, which consume some 80 percent of the henequen fiber, were consolidated in 1961 into one large corporation, Cordemex, under government operation. The price paid by Cordemex for fiber was raised late in 1963 to 10 cents a pound from 8 cents in 1962. is

also purchasing old

decorticating plants for extraction of fiber, mostly

1963, of which 95 percent was of Philippine origin. Since

World production

and are planning expan-

sion in their industries.

when

of abaca

I

:

;

I

;

;

in i

peak of 428 million pounds, world! abaca production has been trending downward. Today, it accounts for only 13 percent of the main hard cordage 1935,

it

hit

a

sisal

exports

have gone to the United Kingdom and other European countries; however, in the past several years, the proportion shipped to these areas has fallen slightly because of

fiber

larger shipments elsewhere, mainly to the United States,

of 1951 and

Japan, and Australia.

struction, a shift in population,

second largest

was 260 million pounds

ii

|

Traditionally about three-fourths of Africa’s

Brazil,

j

percent of the cultivated henequen area in Yucatan, and)

Abaca: Philippines

sisal



1

on small individual or com-j

munal-type farms. The small farmers

1

current attractive prices for

i

is

became effective on May of this year. Most other African countries have shown

interest in the

f

increased

growers selling their leaf production to the central factory. An export tax averaging Va cents a pound on raw sisal 1

r

I

of the crop in earlier years, but because of thej

Mexican policy of

recent

new

Plans also include a Sisal Marketing

Board, with broad powers over general policy,

undertaken,

l"

j

Exports of the raw fiber to the United States accounted

tures,

percent of the Tanganyikan crop comes

sisal

producer, began the industry

output against 37 percent

1935.

in

Since reaching a 1935 peak of 416 million pounds, Philippine output of abaca has never exceeded the 318 million

disease,

was only 247 million

and economic

in

1963. Wartime de-

postwar inroads of mosaic

difficulties

have deterred recovery

production had

of the industry. However, producers are beginning to once

reached nearly 424 million pounds, or 29 percent of the

again show interest in this crop, owing to the current fav-

and further increases are expected. Most of Brazil’s sisal was formerly consumed domestically; however, exports have been rising in recent years and in 1963 reached 320 million pounds. Contrary to the African situation, Brazilian production in 1963 exceeded

orable prices.

only about 25 years ago. But by 1963,

its

i

|

world

Page 4

total,

;

I

;

'

The

Philippines exports more than 90 percent of its crop raw fiber. About a third of the export is shipped to European countries and between a fourth and a third each, to the United States and Japan. as

|

:

!

Foreign Agriculture j

— Generally high prices

Prices of cordage fibers have been relatively high during

most of the past 25 years. East African Grade I sisal, landed New York, averaged 18.3 cents a pound in 1963.

had jumped from a prewar (1935-38) average of 5.1 peak of 29.7 during the Korean conflict ( 1951), but had dropped to a postwar low of 9.4 cents in 1957. It

cents to a

Davao I, rose from a prewar 7.5 cents peak of 32.1 in 1951; in 1963 it averaged 22.7. The postwar low was 18.6 cents in 1954. Mexican henequen during this period rose from 5.1 cents to 24.5, dropped to 7.6 in 1955, but rose to 11.4 in early 1963. Because of the meager offerings, it was unquoted during the rest of 1963. Philippine abaca,

Nylon ropes are in demand in both the United Kingdom and the United States. Terylene and polypropylene products are currently used more widely in the United Kingdom. A new synthetic baler twine, recently introduced experimentally in the American market, reportedly compares well in price and characteristics with sisal twine, and many chemical and fiber firms are engaged in research for other and better fibers for use in farm and industry.

to a

Competition keen but outlook

Hard

had

fibers

after

tury

little

still

good

replacing

hemp

for

manmade fibers have begun to enter the cordage During the long postwar shortage of abaca fiber, nylon and possibly other synthetic ropes were developed which made deep inroads in the field formerly dominated by abaca, especially in marine cordage. And now a newer nylon fiber designed for marine ropes and cordage promises Also,

field.

even better results than the earlier fiber. Other competitors are terylene fiber, which can be used place of both abaca and sisal, and a new polypropylene

to give

many

favorable characteristics for use

competition mostly with

in

in

and cordage, which has entered the market

ropes, twines,

more

competitive

with

vegetable

sisal.

West Germany has unilaterally reduced its duties to European Economic Community on about 215 agricultural, fish, and alcoholic beverage items. These reductions, all effective July 1, were made in response to the EEC Commission’s recommendation earlier this year that the Common Market countries pursue liberal import policies as a measure against inflation. The new reductions are in line with Germany’s own countries outside the

EEC

countries reduce their national tariffs

EEC’s Common External on the same date, Germany similarly reduced its duties to other EEC countries on some agricultural and industrial items, and it finished cutting to the CXT level all its remaining duties on industrial items. more rapidly

Tariff

to the level of the

(CXT).

Effective

For about one-fourth of the agricultural products covGermany’s rates to third coun-

ered, the reductions bring tries

down

to the

CXT

level.

The

items of interest to the

United States include tallow, edible tallow oil,

in

inedible linseed

containers of

For the

rest

(not crude),

oil

kilogram or

fibers if

industries

the

to

now lower

Among

ing the

in

than they were, but

still

above

these items, those directly concern-

United States are dried beans, peas, and lentils, pri1 kilogram or less; field and garden

marily in containers of

July 27,

fruit

1964

still

looks good for

producing countries can adjust their

new

more

industry

is

Needs

situation.

for fibers should

Also,

industrialized.

the

vegetable

fiber

taking steps to offset losses to competitive fibers

and methods of handling commodities through developing new uses for the cordage fibers and encouraging expansion in the traditional fields.

There has been rapid growth in the already-developed and in the developing countries’ use of hard fiber tying twines. More sisal and henequen are being used for sacks and bags in Latin America and for carpets in Western Europe. Use of hard fibers for padding and for paper manufacture is increasing. New uses have also been developed in such industries as building, mining, plastics, and pharmaceuticals. countries’ use of baler twine

canned

seeds; honey;

Tariff in

fruit

more than

containers of

kilogram; and mixed fruit and vegetable juices.

1

On none

of the agricultural items of interest to the United States

were duties reduced by more than

Most the

EEC

than the

3 percentage points.

by

agricultural products subject to import charges

are covered by the variable levy system rather

CXT.

This system

is

EEC

designed to protect

pro-

ducers from competition with world prices. Subject to

it,

or scheduled to be (with a few exceptions such as products

covered

by

commitments under GATT),

previous

are

grains and grain products; poultry and eggs; beef and veal;

pork; milk and other dairy products; and sugar. the

CXT

does apply, however, national

either been brought



if

30 percent closer

to the

Where

have

tariffs

CXT

all

level or

the difference did not originally exceed 15 percent

already alined with

it.

These actions took place

at the

end

of 1961.

As

far as duty reductions within the

Common

Market by

are concerned, rates on agricultural items not affected

variable levies have

CXT

level.

and lard

much canned

and soup

1962, the synthetics

continue to expand as the population increases and nations

of their 1957 level.

less,

now

synthetic

varying quantities in a

Despite this competition, the future

hard cordage

any form.

1

fibers,

captured an estimated 70 to 75 percent of the world’s fishing net market.

of the agricultural items, duties to third

countries are the

oil

in

The

fibers.

of industrial cordage; in

field

Germany Speeds Movement Toward Cominon External

proposal that

which had been increasing

fibers,

beginning to compete

fibers are

become

do not require hard fiber products.

in

manmade

cordage.

However, competing factors have appeared in recent years in the form of commercial bulk handling of many major commodities, the combine harvester, paper bags and twines, and other methods of handling commodities which

staple fiber with

these

probably continue to expand, since prices are

will

wider

competition for more than a cen-

almost entirely

Use of

even when prices were higher than those of vegetable

The German

now

action

generally been cut to 55 percent

of

moderate changes, both tariffs with the CXT and other

EEC member

in

July the

in the

1

makes some further

alinement of Germany’s reduction of

its

duties to

countries.

Page 5

.

U.S. Exports of Beans, Peas, and By

ORVAL

GOODSELL

E.

Lentils Continue

To Expand

from the Communist Balkan area which normally supplies Western Europe. This area’s 1963 erop lack of exports

Grain and Feed Division Foreign Agricultural Service

reportedly was small and undoubtedly any surplus was In relatively few years, the United States has switched

from the world's

largest importer of beans

and

largest exporter,

its

in

of the world’s large exporters of

Currently, the United States ing exporter in

and peas to

4 years’ time has become one lentils.

is

the world’s fastest grow-

three of these commodities and

all

is

sup-

plying* approximately one-third of the world’s total exports its peas, and one-fourth of its lenNotwithstanding these large and fast-growing exports,

of beans, 40 percent of tils.

the United States

in surplus position in all three pulses.

is

Agencies, both private and government, are engaged

programs

to find

in

markets for their exportable supplies.

siphoned

for relief or sale

off

in

the

Communist

'

;

Bloc,

some Balkan supplies have been from West Europe to Cuba, U.S. exports have been redirected from Cuba and Mexico to Western Europe. including Cuba. While redirected

This has caused considerable

shift

in

U.S. exports from

eolored beans preferred by Latins toward white beans pre-



ferred by Europeans.

'

Colored beans have not been entirely neglected, however, as exports (principally red kidney beans) have reached alltime records to the non-Cuban Caribbean. This trade jumped from a 20,000-bag average in 1955-59 to 21 1,000 bags in the first 9 months of the current market-

l3

The Dominican Republic and the British and Erench West Indies all participated in this inerease. The gain, however, did not nearly compensate for the loss in the Caribbean area of bean exports to Cuba. ing year.

Bean exports zoom

1963

late

in

U.S. bean exports for the current marketing year (Sep-

tember-August)

started off at the

most rapid pace

in the

j

country’s history, reaching 2.4 million bags by the end of

December. This was double shipments in the same period million bags higher than last year and approximately those in any previous September - December period. A sharp reversal of this upward movement characterized the following 4 months, during which time shipments were 50 percent below those in the same January - April 1

period of 1962-63. Despite this drop, however, exports by the end of April had reached 3 million bags

— 50

percent

September - April period in U.S. bean export history. While export records are not available since April, exports are known to have slowed in May and June. Paradoxically, the high level of exports this year (and last year) came after the loss and near-loss of two of the Cuba and Mexico, respeclargest bean import markets tively. During the 1950’s, these two markets took upwards of 50 percent of total U.S. bean exports. Then in January 1961, Cuba ceased buying in the United States and hy larger than for any



mid-1961 Mexico had dropped to token quantities. U.S.

Exports of dried peas increase

Dry pea exports have climbed from average

in

1955-59

to

Total Percent dollar

,

months of last year. Yellow peas have been moving slower and green peas

!

the corresponding

faster than last year. This

of total

Exports of

1955-59

.

.

.

.

.

.

.

.

total

exports

exports

exports

Average: 1950-54

1,000

1,000

1,000

1,000

1,000

cwt.

cwt.

cwt.

cwt.

cwt.

in these two classes. There is still a surplus of peas, but sales may be concluded under P.L. 480 agreements which have been signed. Exports of lentils are running less than last year's alltime record high, but at the end of 9 months were considerably ahead of any year previous to 1963. For the first' time, lentils have been declared eligible for export under P.L. 480 and have been included in an agreement. Lentils may move abroad under this program.

U.S.

EXPORTS OF PULSES

1960-61

.

.

1962-63

.

.

.

.

.

.

812 914

31.2

264 274

24.0

2,603

11.4

2,395

.

366

— —

° ®

Beans^

Peas“

1,000

1,000

1,000

bags*

bags*

bags*

158

Lentils

38.2

15.8

— —

Average: 1935-39

1950-54

...

2,660

119 805

1955-59

...

3,072

1,261

n

1960-61

...

1,818

1,824

174

1961-62

...

1,744

1,995

178

1962-63

...

3,224

2,368

1963-64

...

425 317

.

.

C) C)

Annual:

Annual: 1961-62

corresponds somewhat with the

current supply situation

.

Exports

634

27.0

2,312

26

2.1

1,240

152

6.0

2,524

"

2,988

"

2,033



^Marketing year, September - August, except 1935-39, years. ® Marketing year, August - July except 1935-39 calendar years. ® Pacific Northwest ports only; reported by Paeific Pea Growers and Dealers Association * 100-pound bags. ° No record. of Spokane, Washington. But imports were running up to 100,000 bags per year, dropping to 1,000 to 2,000 bags annually in the last 4 August - April. years. ° September - April. calendar

Western Europe, Greece, Israel, and the Caribbean, have taken up the slack in the current year. The EEC alone took 1.1 million bags in the first 8 months of this season. This compares with 600,000 bags for all of last year and the 1955-59 average of 150,000. The large movement to the EEC was encouraged by a principally,

Page 6

'

i

Year

Year

1962-63, as

they have been about the same this season as they were in

Mexico

Percent



1962-63. With 3 months remaining in the current marketing year, exports promise to equal those of

DRY BEAN EXPORTS TO CUBA, MEXICO UP Cuba

the 1.2-million bag

an alltime high of 2.3 million in

''

Foreign Agriculture

;

!

i

I

I

Imports More Wheat As

Brazil

Its

Harvests Decline

i I

I i

RADO

By

J.

KINZHUBER

tons were produced. Since that time production has declined rather rapidly.

Assistant U.S. Agricultural Attache,

Rio de Janeiro, Brazil Increased consumption expected

j

The Government of Brazil, on May 15 amendment to the fifth P.L. 480,

I

!

i

!

i

signed an

ment,

Title

Brazil

Of

is

to purchase

by the end of

year approximately

this

metric tons of U.S. wheat under Title

.i

I

the world's 10 most populous nations, Brazil ranks

may

its

popula-

by the turn of the century. Within Latin America, it is the largest nation, occupying one-half of the continent south of Panama and accounting tion

be expected to

triple

for one-half of the population of that area.

It is

Wheat consumption

depends to a great extent wheat is purchased through the Bank of Brazil, and the government controls consumption. This year's consumption is estimated at over 3 million

on wheat

also larger

Brazil's population

Allowing for wheat consumption and an additional amount resulting from Brazil’s industrial and economic growth, a yearly consumption increase of 4-6 percent might be projected over the next 3 to 5 years. Also, during this period, more wheat might be used for stocks, which at the present time are practically non-

Has problems growing wheat

Grains

sufficient in this

In the last

is

self-sufficient or

self-

many

possible

methods have been

wheat production. Climatic and soil studies have been made, various wheat strains used, and a lot of money and effort spent on related research. However, the last domestic wheat harvest was estimated

employed

to increase domestic

100,000 metric tons, the lowest

at

Many

'

is

not a wheat-growing area.

and rust, in addition to and climatic conditions, will always discourage expansion of wheat production in Brazil, and that the economic competition for land is a most important

They say

that Giberella, Septoria,

unfavorable

soil

wheat production reached its high1957 when reportedly about 745,000 metric

Historically, Brazil's

peak

in

common

in

the

daily

diet

of “Brasileiros,”

naga,” a

little

Lrench-type bread,

is

very popular. The

had up with as much as 20-percent admixture of corn flour, mandioca flour, and soya. Presently, about 9 percent of manioc flour and percent soya is being used in wheat Brazilians like pure Bisnaga, but in the last year they to put

1

Brazilians also eat a lot of rice, mandioca, and corn. Domestic rice production, at 5.9 million metric tons last year, was the largest ever as was the production of mandioca, with about 19.5 million metric tons, and corn, with

over 10 million metric tons. in the

Many

rural people, especially

north and northeast, consume predominantly “fuba

de mandioca” (mandioca flour), “fuba de milho” (corn-

factor to consider.

est

is

especially in the larger centers. In addition to the so-called

flour for bread-baking purposes.

in history.

people blame the adverse weather for this poor

crop. Others claim that Brazil

the Brazilian diet

pastas used for spaghetti, pizzas, and other dishes, “Bis-

important crop.

10 years

in

Wheat

not able to pro-

even nearly

approximately 78 million and has

a gradual per capita increase in

existent.

Brazil has a vast agricultural area but

is

a natural yearly increase of over 3 percent.

than the continental United States.

duce enough wheat to be

in Brazil

availability. All

metric tons.

of

usual commercial purchases.

its

eighth in population and tenth in density, and

,

agree-

now the largest in the history of Brazil’s wheat purUnder this agreement, signed last September,

P.L. 480, in addition to

;

I

chases.

2.4 million '

year,

of this

Signing to right.

Oliveira

meal), “aipim” (mandioca in early stage of maturity used

mainly as vegetable), “canjica” (similar to hominy), and

an amendment to Brazil’s first Public Law 480, Title /, agreement are, seated left Foreign Affairs Minister Vasco Leitdo da Ciinha (signing); Planning Minister Roberto de

Campos;

U.S.

AID

Director

Jack

Kubish;

U.S.

Ambassador

Lincoln

Gordon.

“cuscus” (a dish

made

commodities). Wheat and for many people

of cornmeal and other

is

not very well

it

is

known

homegrown

in these areas,

too expensive to buy.

U.S. wheat exports for cruzeiros have

—from a half

million

Since the

Where

Brazil

obtains wheat

relatively

signed in

tons

first

humble beginning to

Title

November

today’s I,

P.L.

in

come

a long

way

1955 of about one-

2.4-million-ton

agreement.

480 agreement, which was

i

1955, Brazil will have purchased, or [

wheat principally from nearby Argentina, taking between 900,000 and 1 million metric tons a year. Argentina, however, was not able to supply the usual amount in 1961, and that year exported to Brazil only 121,000 metric tons. In 1962 the quantity was 718,000 metric tons, and in 1963 about 564,000. In the past, Brazil has imported

During the current year Argentina Brazil

1

is

scheduled to supply

million metric tons.

Wheat imports from

compensate for the drop In the last 4 years the

to

in

in

imports from other sources.

USSR

has entered Brazil’s wheat

an agreement signed early

in

1963 promised

supply the country with increased amounts of wheat.

USSR was to deliver 500,000 metric 1964 it was to supply 600,000 metric tons, and in 1965 about 700,000. However, actual wheat deliveries from the USSR during 1963 were slightly over 263,000 metric tons, and so far this year no wheat under the agreement has been delivered. During

that year the

tons; in

Relies on U.S.

7.7 million metric tons of wheat, with a market value of

$483.8 million. Brazil has also obtained wheat under the U.S. barter program in exchange for strategic materials. Under Titles II and III of P.L. 480, the country has received wheat flour, bulgur, and rolled wheat. It has also increased its wheat purchases for dollars.

f

i

the United States have increased

order to maintain Brazilian consumption, to offset the failure of Brazilian producers to sustain production, and to in

market, and

agreed to purchase, by the end of 1964 a total of about

wheat production will, as in the depend to a great extent on weather, soil fertility, economic competition for land, and resistance to diseases, Attempts will be made to boost the interest in wheat production; new wheat strains will be introduced, new ideas pursued, and new lands used. The recently installed government is already preparing plans in this direction. Yet there is no doubt but that Brazil’s dependence on wheat imports will continue to increase. Our wheat export market Brazil’s future domestic

i

past,

in

ij

i

j

a 1

Brazil has every opportunity to share in this increase,

and with the improvement of the country

Brazil’s

may someday become

economic

i

situation,

a dollar market.

) !

I

wheat shipments

Brazil depends heavily on wheat from the United States and has found such wheat supplies to be reliable. As one of the millers here said, “If it were not for U.S. wheat deliveries, many of our mills would have to close this

CORRECTION.- In the July 20 issue of Foreign Agriculture, the article “Paraguay’s Leading Export Crops Hit by Bad

year.”

difference since there are 126 guaranis to a dollar.

Weather Conditions’’ quoted the price of tobacco in dollars of Paraguayan guaranis, which makes quite a

instead

I

Unloading U.S. wheat

at Brazilian ports

by hopper and conveyor

belt,

— below,

and below

right,

suction pipe from ship to truck. Right, weighing

checking wheat before transportation to flour

by

and

mill.

Photos, R.

J.

Kinzhuber



MARKET )EVELOPMENT

Asst.

Italy

—believed

of U.S. feeder

be the

to

first

ship-

ment of U.S. feeder cattle to Europe were for more than half a century scheduled to be unloaded this week 2-day voyage at Genoa, Italy, after a at Norfolk, Va. which began July



i

i

speaking

1

1

and West Virginia. They are grass-fed animals of Standard grade averaging about 550 pounds per head, which were carefully selected to meet the European

taste for lean beef.

The U.S. Department

1

second shipment of U.S. feeder cattle, approximately 500 head, left Baltimore for Italy. a

historic

much

At ceremonies marking the historic shipment

at dockside,

Norfolk, Assist-

ant Secretary of Agriculture

Mehren

George

“This marks the be-

said:

ginning of the development of an exin Europe that seems and promising in the future, and in keeping with this government’s policy to expand trade in the best in-

potential

bright

terests of the

“We have

American farmer.

of a different kind of country,’’ he said, it

meat

“and we have done

without impairing the freedom of

private enterprise, without violence to

our

trading

principles,

and without

impairing our trade potential abroad. It is

a

our hope that

sustained

this is the first of

Valued the

at

cattle

by

Dr.

July 27,

States,

1964

including

Tennessee,

most ac-

agencies in developing an

State

export promotion program for State

Makes

U.S.

First Dollar

bility

the

availa-

of suitable cattle and with vari-

ous business firms and organizations to supply an

land

on-board price covering shipping,

transportation,

and other

A

27-animal shipment of top-quality I

closely with Dr.

investigating

in

Dairy Cattle Sale to Iran

Vir-

dairy

registered

U.S.

earlier this

month marks

first

for Israel cattle to



first

The

to

cattle

Iran

this country’s

dollar sale to Iran,

and

—except of dairy

dollar sale

any Middle Eastern country.

feed,

costs.

cattle

— 14

U.S.

Holsteins,

9

and 4 Brown Swiss bulls were purchased by Iran’s Ministry of Agriculture for breeding purposes on Jerseys,

Beef

U.S.

its

experimental farms.

West Germany’s recent import tender for 750 metric tons of frozen beef, or 3,000 slaughter cattle, from

Switzerland, and the Netherlands.

the United States

small shipment from Israel in

of

European

is

the latest evidence

interest

This opens the

way

in

to the

U.S.

export of U.S. beef, or cattle,

many

in

beef.

major to Ger-

first

over 50 years.

Applications for licenses under the for export in three consignments be-

purchased

Virginia and several other South-

eastern

Gaddini

Com-

approximately $100,000,

Emilio Gaddini, an Italian importer, in

worked

ginia officials

its

Chumney.

tender were received up to July 21

were

tive

ment of Agriculture which was represented at the ceremonies by

and growing pattern of and meat.”

trade in livestock

Virginia Department of Agri-

of the credit for the

German lender for

into this

The

culture has been one of the

and regional products.

reached an orderly ad-

justment with respect to importation

Checking shipboard feed supplies

of Agricul-

the Virginia Depart-

to

sale

missioner, Richard D.

port

Norfolk

South Carolina, Georgia,

Kentucky,

ture gave

Last week

L.

at

Buys 700 Head of U.S. Feeder Cattle

More than 700 head cattle

Mehren

Secretary

rams

& ex

1

tween August Several

1

other

and December 31.

European countries

are currently considering buying U.S. live cattle,

or beef.

In

past

most of

its

Iran

years,

imported

has

dairy cattle from Austria,

was made up of

cattle with

(A

1961

100 per-

cent U.S. Holstein blood lines.)

U.S. market development has concentrated on proving to Iran’s officials that

performance

stock

made payment

of

breeding

U.S.

of longer-distance

shipping costs worthwhile.

As

a part

of this promotion effort, token gifts of

U.S. dairy cattle were

made

to Iran

demonstrate the value of U.S. blood lines in upgrading Iranian herds. to

Page 9

European Marketing Requirements for U.S. Onions By

F.

M. ISENBERG

competing nations separate

their on-

Professor of Vegetable Crops

ions into three or four sizes,

Cornell University

medium,

Many

northern European countries

grow storage onions

are not able to

sufficient quantity to satisfy the

in

win-

needs of their populations. Those that do grow onions fre-

ter

countries

quently have

in

difficulties

in

obtaining

bulbs

and also

difficulties

maturing

uniformly

curing and storing the

crop due to variability of the climate.

As

most countries import onions at some time in the year and many import high-quality onions all through the year. As an example, the United Kingdom uses about 10 pounds of onions per capita, of which only pound is produced locally. The local crop supplies the market for about 6 weeks of the year. In recent years, the United Kingdom has been the best European customer for U.S. onions. In 1962, the United Kingdom imported 6,750 tons a

and extra

large,

small,

and

large,

— —which

valorem value

However,

valued

this

is

Commonwealth

of

Onions under 2" are not liked in the U.K. market. The Canadians are aware of this dislike, and most of the Canadian onions recently observed in London were 2" and over. Polish

dian onions enter duty free.

$610,000.

at

only a small part of

imports

in

1962 of

why

this

market has not

developed more extensively for U.S.

Some

onions.

reasons

are

artificial

or political in nature and will be dif-

A third matter of concern is the problem of onions being damaged by pers should follow their onions to the

Polish onions are graded very carefully

The main problem is damage and assigning

and the

toler-

to

ance within a

very narrow.

size is

Most importers of U.S. onions specU.S. No. 1 Grade because of the on disease and decay deare not aware that the Grade minimum size is

limitations

They

fects.

U.S. No.

U/2 ",

1

no maximum

size

further, that only

or

and

stipulated,

is

40 percent of a bag,

of yellow onions need be 2" or

lot,

j

responsi-

complex endeavor and worth the trouble. Egypt, Chile, and other southern coun- k tries do not have this problem and II be

change,

while

are

others

if

it

found

is

an alternate source of supply.

offer

Big Dutch re-exports

respect

In

acceptable.

gen-

The United King-

uses the long ton, and a hundredis

112 pounds.

A

bag

is

one-

with

the

quality

overall

of

Dutch

of the chief complaints of U.K.

importers has been onion

sizes.

Most

based on a recent market development survey sponsored by This article

Foreign

is

Agricultural

Service

in

cooperation with Cornell University.

Europe, and

Holland grows and largely exports a crop of onions about the size of the

tries.

have to

size

storage

Some

its

next

in

in

importance to

sprouting.

is

Onions

the early part of the sea-

be held several months

when U.K.

importers

onions

market

in

in

prices

are

in

low.

1962 received U.S.

sprouted condition.

Other

onions but did not receive them.

U.K. importers generally are aware of the sprout-inhibiting practice and all Canadian onions recently observed in U.K. markets had been treated with sprout inhibitors.

U.S.

onions

It

is

shipped

important that to

Kingdom be so treated. The U.S. trade is very

the

United

and

in addition

The Dutch importers

are

the

principal

European brokers for the

Egyptian

crop.

In

season,

late

the

to

Eebruary

of

32i/'

1,

the tariff

likely to

be

is

onions originating outside countries.

Egyptian crop. In general, the

U.S.

onion

has

a

somewhat

better

reputation than the Egyptian onion.

markets

Continental

West Germany onions

in

—want



particularly

carefully sized

25-kilogram (55-lb.) bags.

Eastern European competition cially

keen

is

espe-

German market and

in the

Polish, Hungarian,

ian exporters

quick

and Czechoslovakhave the advantage of

which

delivery,

when 90 percent

is

important

of the imports are

on the day of arHowever, during periods of ex-

publicly auctioned rival.

treme cold, onions cannot be shipped as the carriers

do not

provide protection against freezing.

German markets

a flat rate

per 50-pound bag levied against

monwealth

early

from these areas

a late-season operation, because prior

all

State crop,

U.S. onions would compete with the

defect

may

son

its

Kingdom, it product more

the United

importers had specified sprout-inhib-

on the Continent. Only the United States and Canada ship in 50-pound bags. However, U.K. importers are accustomed to the 50-pound bag and most of them advise not to change the bag weight.

continental

industry wants to improve

ited

kilograms in the metric system, used

area,

of sizes in a bag. If the U.S. onion

in

Com-

After January

31, the tariff drops to 10 percent ad

1 ,

|

market for U.S. onions because of

New York

which

practically equivalent to 25

However, the are the next best European onions.

U.S.

buys onions from about 20 other coun-

potential

|i'

||

for

U.S. onions, except for the wide range

half of a hundredweight, or 56 pounds, is

the

not a consuming mar-

other countries.

However, the importers are quite satisfied

shipped is

is

Continent,

the

to

Dutch market

the grades by hearsay.

Importance of size

i

II

their extensive re-export trade to the

U.K. importers Fortunately, our bag weight

not

ket

The

Bag weights

a

quite

sometimes

Most importers do not have copies of the U.S. Grade Standards, or have not read them, and only know larger.

and can be corrected profitable to do so.

Page 10

the

1

the

unless specified otherwise, that

carefully.

the

assessing

In international deals, this can

bility.

ify

will

One

;|

during shipment. The ship-

freezing

point of loading aboard ship and pre-

into three standard sizes

'

preference Cana-

vent the loading of any frozen onions.

largely a matter of misunderstanding

weight

|s

in

study of the situation reveals sev-

eral reasons

dom

||

every respect in the U.K. market, and

onions are considered top quality

219,500 tons, worth $24.6 million.

erally

c.i.f.

favor-

able to the U.S. onion trade. Because

Baltic

onion

total

ficult

more

generally

result,

of U.S. onions,

A

10 percent of

is,

is

ship 56 pounds to the bag.

1

its

that

The North German market

requires

onions of small size while the Central

and South German markets use on(Continued on page 16) Foreign Agriculture

I

< ;

:

WORLD U.S.

MARKETS

AND

CROPS

buying by Japan and Western Europe. Reduced Argentine

Wheat and Flour Exports Highest

in

History

shipments also benefited U.S. exports.

United States exports of wheat and wheat flour (grain equivalent) were 10 percent higher for the period between July 1963 and

May

year in history.

period

this

1964 than those for any entire

The 788

represented

fiscal

million bushels shipped during

a

34-percent

increase

over the

same period last year. U.S. exports of wheat and flour are expected to reach 850 million bushels by the end of the 1963-64 fiscal year, or 33 percent more than the 638 million bushels exported during the 1962-63 fiscal year. With the addition of prodcts, bulgur, and rolled wheat, the total will exceed 860 amount shipped

:

in the

Exports of

live cattle in

and analysis appears in the July issue Statistical of World Agrictultural Production and Trade detailed table



first

months were more

5

1963. The bulk of this year’s exports are going to Canada, although over the next few months prospects are bright for shipments to Europe. More than 700 feeder cattle were shipped to Italy in early July. in

U.S.

EXPORTS OF LIVESTOCK PRODUCTS (Product weight basis)

^

May

,

Commodity

Animal Lard

fats:

Inedible tallow & greases^ Edible tallow & greases

Report.

Jan. -May

1963

1964

million bushels.

A

the

than three times larger than those of the same 5 months

"

1,000

1,000

1,000

1,000

pounds

pounds

pounds

pounds

70,148

51,926

227,499

291,340

201,772 981

274,892 2,297

746,807 4,722

1,022,201 6,028

1,821 12,956 131

5,728 13,508

9,724 56,227

17,643 78,832

134

525

584

126 134 39 163

330 62 90 234

590 369 235 589

1,287

15,370

20,086

68,259

99,773

13,787

22,741

65,754

88,879

1,438

808 309 106

6,333 2,025 6,813

5,039 1,380 1,217

Meat U.S.

Feed Grain Exports Continue Upward Trend

Beef and veal

Pork U.S. totaled

feed grain exports through

May

14.5 million metric tons

percent above those

same period a year



8

of fiscal

1964

Accounting for this gain was the 20-percent increase in shipments of corn; exports of the other three feed grains were off by 16 percent. Japan was the largest market for feed grain, receiving 17 percent of the total. This is more than double the of the

Lamb and mutton Sausages Except canned

earlier.

same period last year. and analysis appears in the July issue World Agricultural Production and Trade Statistical

Canned Baby food, canned Other canned meats Total red meats

Variety meats Sausage casings:

exports for the

A of

detailed table



Report.

Hog Other natural

Mohair

1,126

Hides and skins:

1,000 pieces

Cattle Calf

U.S. Exports of Animal

Products Rising

Kip Sheep and lamb

Exports of most U.S. animal products for the

first

5

months of 1964 were sharply above those of the previous year.

600

701 133 22 253

1,000 pieces 1,072

223

1,828

634

16

86

380

1,161

Number Number Live cattle

1,000 pieces 2,971

16,519

360 322 745

1,000 pieces 4,422 1,07B 111 1,423

Number Number 7,530

26,701

^

Lard exports were up more than one-fourth and totaled 300 million pounds, of which three-fourths were shipped to the United Kingdom. Exports of tallow and nearly

greases totaled one billion

more than a

third

from

pounds

at the

end of May, up

Includes inedible tallow, greases, fats, oils, oleic acid or red ~ oil, and stearic acid. Includes edible tallow, oleo oil and stearin. oleo stock, and shortenings, animal fat, excluding lard.

Argentina To Import Sunflowerseed

Oil

last year. Practically all traditional

Argentina, a major sunflowerseed producer and a tradi-

markets took more. Exports of red meats were nearly 50 percent greater than the first 5 months’ total for last year. There has been

from Western Europe and in Israel. Canada, Japan, and Western Europe have been the major destinations for U.S. pork. Western European buying has also been the major factor in the rise of variety meat exports. The only two products to show a drop in 1964 were natural casings and mohair. U.S. exports of casings to Europe are probably being affected by the reentry of the Communist Chinese into the export market. Mohair exports were reduced to a small fraction of the previous year. The domestic demand has been strong, and higher U.S. prices thus far in 1964 may have made South African and Turkish mohair more attractive to European and stronger interest in U.S. beef

tional exporter of sunflowerseed ficial

oil,

will,

according to of-

sources, import about 20,000 metric tons of sun-

flowerseed

in the current marketing year ending next Trade sources indicate that the oil may be imported from Russia in exchange for linseed oil.

March

oil

31.

Such action would: (1) ease the tight supply situation edible oils, which has come about through reduced domestic outturn, chiefly sunflowerseed and peanut oils, in the last 2 years; (2) stimulate linseed oil exports, which through July 8 of this calendar year were only 82,600 tons compared with 142,300 tons in the comparable period of 1963; and (3) divert increased quantities of peanut oil, which is relatively more high-priced than usual, from domestic consumption into export channels. in

The Argentine sunflowerseed and peanut crops

in

1964

Japanese buyers.

are,

U.S. hide exports for January - May have risen sharply above the previous year’s, largely because of increased

456,000 tons and 335,000 tons, respectively, compared with 456,000 tons and 312,000 tons in 1963.

July 27,

1964

according to the second

official

estimates, placed at

Page 11

With sunflowerseed

imports of 20,000 tons, export-

oil

able supplies of edible

oils,

largely peanut

could

oil,

sig-

cake as well as a sharp drop

which is believed and linseed cakes and meals.

in “other,”

to be largely soybean, peanut,

>

-

exceed 40,000 tons exported in 1963.

nificantly

BELGIUM’S SUPPLY OF OIL-BEARING MATERIALS AND

ARGENTINE EDIBLE VEGETABLE OILS Item

1962

Supply: Stocks, April

Production: Sunflower



1

_

Peanut

— —— _

_

Olive

_

Others

-.

-

-

_

Cottonseed

_

"

_

-

Total production

Imports: Sunflower



tons

22

*8

47

210

130 75 24

9

8 9

115 80 20 10 10

350

246

235

7 -

-

372

Total supply

=

metric

-

-.

VEGETABLE OILS 1964

1,000 metric tons

--

_

"

1963

^

1,000 metric tons

107 17

_

-.

1962-64

1,000



20

254

262

Distribution

Exports: Sunflower

12 107 13 10

Peanut Cottonseed

_

-

Olive

_ -

Others



— -

.

Domestic disappearance

March 31

_

Total distribution ^ *

Season

Crude

45

1

1

8

9

40

55

_

Total exports

Stocks,

1

30

_

beginning April

oil

only.

^

Includes

142

200 30

207 47

200 47

372

254

262

^

Partly estimated. rape, grape, corn, and

1.

^

Estimated. other oils.

Production

Commodity

Imports

1%2

1963

1962

1963

Short

Short

Short

Short

tons

tons

19,091

22,434

tons 70,731 95,167 28,962 23,164 26,291 3,306 13,382

— Oil-bearing materials:

166

54

tons 83,991 131,910 27,048 35,318 35,796 7,579 14,793

19,257

22,488

336,435

261,003

6,532

7,641

113,513

91,148

34,479 22,180 16,975 17,594

32,915 20,170 18,573 10,948

12,609 2,951 4,071

7,911 2,244 4,790

5,585 1,240 7,120 2,894 39,588 1,279 1,025 10,150

10,281 1,427 11,231 2,541 38,148 1,132 1,409 12,327

Peanuts _ Soybeans Copra

Palm kernel

Flaxseed Castorbeans Other Total

_ _

_

Oil equivalent of oilseeds Vegetable oils (crude) :

Peanut Soybean Coconut

Palm kernel Palm

Linseed Castor Other

-

Total

Total

oil

_

_

_

equivalent _ _

110,859

97,551

68,881

78,496

117,391

105,192

182,394

169,644

National Statistical Institute.

BELGIUM’S EXPORTS AND IMPORTS OF OILSEED CAKES AND MEALS 1962 AND 1%3 Exports

Commodity

Belgium’s Imports of Oilseeds, Products Decline

Belgium, a traditional net importer of oilseeds, vegetable

and cakes and meals, in 1963 imported about 169,600 short tons of oilseeds and vegetable oils (oil equivalent basis) compared with 182,400 tons in 1962. Reduced takings of soybeans and flaxseed largely from the United States and palm kernels largely from Nigeria principally accounted for the decline. Imports of vegetable oils, as such, however, gained somewhat, reflecting increased takings of peanut oil from Nigeria and Argentina and coconut oil from the Netherlands. oils,

Production of vegetable than the terials.

oil

oils

declined by a lesser

This reflects increased crushings of indigenous

flax-

1963

Short

Short

Short

Short

tons

tons

tons

tons 31,526

463

Soybean

Sunflower

Rapeseed Sesame Copra

Palm kernel Linseed Other Total

13,305 15,575 1,887 104

11,391 17,232

11

11

2,265 14,051 14,150 42,504

683 5,009 10,311 3,595

37,529 46,879 102,257 23,115 20,563 13,628 10,599 45 30,069 41,157

104,315

49,092

325,841

823 37

44,428 81,150 14,892 18,508 14,033 7,143 561 27,447 43,324

283,012

Imports of vegetable

oils in

1963 supplied about 44 percompared with 40 percent

1962, reflecting reduced production from imported

Philippine Copra and

in prices for oils relative to oilseeds, particularly

Exports

Oil

Registered exports of copra and coconut basis)

Republic

totaled

339,308

in the

in

January

308,903 long tons,

-

June

down

oil

from the

(oil-equivalent

9 percent from

same period of 1963.

PHILIPPINE EXPORTS OF COPRA

soybeans

and flaxseed, as well as difficulty in disposing of the meal from oilseed imports, in the face of strong competition from imported meals. Palm oil imports in 1963 largely from the Congo (Leopoldville) again accounted for nearly one-half of Belgium’s imports of vegetable

Coconut

oil-

bearing materials. This increase resulted from the decline

oils.

Production of cakes and meals in 1963 at 177,100 tons 10 percent from 196,900 tons in 1962 to about the 1961 level. The decline was due primarily to

declined by

reduced crushings of soybeans. Imports of cakes and meals declined by 42,800 tons, or 13 percent below 1962 reflecting reduced imports of soybean, sunflower, and cottonseed cakes and meals. Exports of cakes and meals declined markedly in 1963. decline reflected reduced movements of palm kernel



|

I

1

I

J ,

I |

I I

;

National Statistical Institute.

Philippine

cent of the domestic utilization

Page 12

1962

amount

of soybeans.

The

1963

equivalent of the imports of oil-bearing ma-

seed as well as an apparent reduction in stocks primarily

in

Cottonseed Peanut

Imports

^^^2

AND COCONUT

OIL

January- June Destination

1963

Copra: United States

South America Japan Other Asia Middle East

'

=

1964

=

Long

Long

tons

tons 102,425

257,215 7,000 16,500

tons 96,901 222,079 1,000 10,800

3,250

3,250

500 140

928,683

386,390

331,420

183,648 28,489

90,440 1,578

84,291 11,660

212,137

92,018

96,794

500

Total

Total

1963

Long 245,293 623,693 16,970 38,977

Europe

Coconut oil: United States Europe South Africa, Rep. of

=

_



843

Preliminary.

Compiled from monithly data on registered shipments. Foreign Agriculture

:

::

cumulative

Japanese Rapeseed Production Increases Japan’s 1964 rapeseed crop, harvested largely in June, officially

is

estimated

greater than the

tons in 1963.

The

152,300 short ons

at

—one-fourth

weather-damaged crop of only 120,000 increase reflected

some recovery

in yields

largely to Spain,

losing popularity

seed.

Support prices for the 1964 rapeseed crop have not yet been announced, but some increase from pected.

The 1963 government

price

last

year

is

ex-

was 3,360 yen per 60



lb.) 180 yen (about 5 above the guaranteed price in 1962. Support prices during the past 2 years have been somewhat below market prices and no government purchases have been made; nor do any appear likely in 1964.

kilograms (7.06 U.S. cents per

imports

may

in

government

continue to

in

1.6

.7

3.1

.4

.1

8.9

do

2.5

4.5

29.2

Others

Production

Pounds 1,000 acres 559.3

per acre

1,000 short tons 309.7

Average 1955-59 Annual 1960 1961 1962 1963 1964^ ^

1,107

473.0 481.6 427.7 347.7 300.5

290.6 301.5 272.0 120.0 152.3

1,229 1,252 1,272

690 1,014

Soybeans, Edible

Oils,

14.0

131.5

141.4

153.8 329.2

1,441.4 3,091.3

1,552.1 3,321.9

EDIBLE OILS Soybean Commercial:^ Poland mil. poundsdoTurkey Netherlands

do do do do do do do

Iran

Hong Kong U. Kingdom Colombia Pakistan Others

do

Edible

oil

exports (soybean and cottonseed)

were 116.7 million pounds

in

May

— 29 percent below those of the

previous month.

Cumulative shipments in October-May were down 9 percent from the same 1962-63 period. The decline reflects reduced shipments of soybean oil and incomplete data on foreign donations; it was partly offset by increased shipments of cottonseed oil. The volume of soybean oil shipments in May, at 62.7 million pounds, dropped significantly from that in April. The major destinations were Poland, Iran, the Netherlands, Taiwan (with 4.4 million lb.) and Hong Kong (with 3.4 million lb.).

Cottonseed

oil

exports

in

May

totaled

54.0

million

pounds, sharply above those in April. Most of the tonnage moved to Egypt, Poland, and West Germany.

Cake and meal exports gained

July 27,

nearly

1964

^

Foreign donations

one-third

in May, at 132,900 short tons, from those in April. However,

do

Total soybean -do

6.6

3.1

5.3

.1

8.0

6.7

1.1

3.4

33.0 22.1

__

1.5

79.8

__ __ 18.5

554.6

82.3 77.6 40.3 35.8 35.5 30.5 27.6 26.5 245.7

95.5

62.7

706.0

601.8

8.5

n

63.6

M

104.0

62.1

769.6

601.9

13.7

7.9

77.4 69.0 52.3

24.2 33.1

63.1

Cottonseed:

Commercial: ~ Germany, West mil. pounds Netherlands do Egypt do Turkey do Canada do do Others

Cakes and Meals

Japan.

18.3 8.6 7.6 33.7

9.0

1.0

11.6

do

Foreign donations

Soybean exports from the United States in May, at 14.0 million bushels, declined by one-fifth from those in April. However, cumulative exports in 8-month period OctoberMay 1963-64 were up nearly 8 percent from those in the comparable period of 1962-63. Major destinations for May exports were West Germany, Canada, the Netherlands, and

1.7

3.0

126.9 271.6

Total

U.S. Exports of

1.2

2.8

do do

Preliminary.

Japanese Ministry of Agriculture and Forestry.

"

32.1 22.7 18.4

do

Total

Yields

1963-64

Oil equiv. Meal equiv.

needs.

Planted area

"

Total

mestic production as well as to the increasing domestic

Year

35.3 18.2 16.6 14.3

3.0

response to reduced do-

JAPANESE RAPESEED AREA, YIELDS, AND PRODUCTION

1962-63

SOYBEANS

policy. Consequently, oilseed

rise,

October-May

1964"

mil. bushels Japan Germany, West do Netherlands do do Canada do Denmark

concern about declining rapeseed acreage appears

be reflected

to

percent

Prance, the Netherlands,

May '

1963

percent)

Little

18

EXPORT OF SOYBEANS, EDIBLE OILS, AND OILSEED CAKES AND MEALS, MAY 1964

because of the labor shortage. Farmers have found off-farm

employment during the winter months, and much land formerly planted is now left fallow. Even with high prices for rapeseed, farmers find good wages in industry more profitable than remaining on the farm and growing rape-

remained

Belgium, Canada, West Germany, and Denmark. U.S.

is

moved

total,

despite a further decline in acreage.

Rapeseed, like wheat and barley,

May

through

exports

below those in the comparable 8 months of 1962-63. Soybean meal shipments, accounting for 94 percent of the

^

do

14.3

20.7

43.1 37.2 28.1 23.2 21.1 119.1

58.2

54.0

271.8

2.1

(D

28.4

17.4

24.0 9.4 3.4

1.4

33.1 24.5 111.3

367.6 (")

U)

Total cottonseed

do

60.3

54.0

300.2

367.6

Total oils

do

164.3

116.7

1,069.8

969.5

32.3 27.6 30.6

16.9 13.0 24.5 16.1 13.4

161.2 118.6 118.1 77.0 67.9 65.5 55.1

116.0

CAKES AND MEALS Soybean France Canada Spain

1,000 tons

8.4

17.3

165.3 178.1 167.3 145.3 66.5 26.4 95.0 60.8 35.6 92.2

do

132.3

125.5

1,032.5

885.6

Cottonseed

do

4.5

7.3

Linseed Total cakes and

do

.4

do

138.5

do do do Netherlands Belgium do Yugoslavia do Germany, West -do Denmark do Italy do Others do Total

meals ^

’’

5.0 1.7 1.2

14.9

io".i

_

9.7

10.6

4.5

132.9

54.1 52.1

73.4

36.2

34.7

16.0

1,150.0

938.0

Preliminary. I, II, and IV of P.L. 480, except soybean and cottonseed oils contained in shortening exported under Title II. Excludes estimates of Title II exports of soybean and cottonseed oil not reported by Census. ® Title III, P.L. 480. ^ If Incomplete. “ Less than 50,000 pounds. any, data not available. ’ Includes peanut cake and meal and small quantities of other cakes and meals. ‘

Includes Title

Compiled from Census records and USDA estimates. Note: Countries indicated are ranked according to quantities taken in the cumulative period of the current marketing year. Therefore, monthly data of lesser importance in the cumulative period, shown in parentheses in the text, are omitted from the table.

Page 13

U.S.

Tung

Imports Rise

Oil

Brazil Permits

U.S. net imports of tung

November-May

during

oil

of

The

Maximum

Exports of Oilseed Meals

Government on June

Brazilian

13 began permitting

1963-64, at 13.9 million pounds, were up one-fifth from

exports of the following products in the

the comparable period in 1962-63.

ties

The gain

largely

from

purchases

increased

reflected

3.5 million

of

Peanut meal Soybean cake Soybean meal Cottonseed meal

Brazil.

the traditional

ever,

significantly.

months have been spurred by the marked decline in price, which throughout the current market year has trended downward reflecting increased availabilities. Because of lower prices, tung oil consumption in the United ^States is expected to rise to 35 million pounds in 1963-64 from an estimated 30 million in 1962-63. U.S. Imports into the United States

imports of tung least

in

oil

1963-64 are expected to

total

at

24 million pounds.

(

only from the 10,000 10,000

)

Babassu meal Soybean flour

The above

action

500

is

reported to have been taken because

of urgent requests from exporters in view of availabilities of these items. Furthermore, the National Superintendency of Supply

(SUNAB)

stated that the action

was taken

to

protect usual export markets abroad.

Government

estimates on Brazil’s availability of feeds

to mid-May had indicated expected shortages of these commodities. However, farmers report-

November-May

November-October

^

20,000 15,000 10,000

and feedstuffs prior

IMPORTS AND EXPORTS OF TUNG OIL

U.S.

northeast

recent

in

quanti-

tons

Howpounds — and from —up major source imports from Argentina— supply — declined

Paraguay

maximum

indicated:

1960-61

1961-62

1962-63

1962-63" 1963-64"

Million

Million

Million

Million

Million

pounds

pounds

pounds

8.4

7.0

edly were not expected to purchase large quantities of highprotein content feedstuffs because of shortages in feed grains.

Imports: Argentina

pounds

pounds

22.1

16.4

13.4

.5

.7

Brazil

Paraguay Rbodesia & Nyasaland

3.0

1.6

__

.7

5.1

3.3

6.8

__

.2

Others Total Exports, total Net imports "

.1

.1

.1

.1

Brazil’s exports of the

25.8

17.1

20.3

11.9

9.4

.5

.3

.8

.6

.7

19.8

11.6

13.9

1963 were Metric

tons

tons

Peanut meal __ 101,970 Soybean cake _ 2,461 Soybean meal _ 59,554

Cottonseed meal 33,389 Babassu meal 152

14.7

Other cakes and meals, including 16,182 tons of babassu cake and 5,765 of peanut cake, were exported in 1963.

Preliminary.

U.S. Bureau of the Census.

French Oilseed Acreage Data Revised

French oilseed acreage Marine

Oil

Production

World production

Down 16 Percent marine

of

oils,

in

1963

now

excluding seal

oil,

below that of the previous year. Production of baleen whale oil and fish and fish liver oil declined by an estimated 109,700 and 94,200 tons, respectively. Sperm oil production, however, rose 5 percent in 1963. The production of seal oil in 1963 is estimated at 3,600 tons, compared with an estimated 4,600 tons produced in totaled an estimated 1,071,500 short tons, 16 percent

1964, primarily rapeseed,

in

officially

The

increase

estimated at

is

accounted for by a 133,000-acre

rapeseed sowings, somewhat offset by a decline

WORLD MARINE

OIL PRODUCTION,

FRENCH OILSEED ACREAGE AND PRODUCTION 1963"

Baleen whale

oil

Sperm whale

oil

Fish and Total

fish

.

.

_

liver oil

_

.

1,000 short tons 390.1 129.8 749.5 1,269.4

1,000 short tons 427.7 119.9 668.6 1,216.2

1963

Area

tion

1,000 acres 220.9 50.2 72.7

1,000 short tons 176.3 28.7 35.5

343.8

240.5

1964

Produc-

Produc-

Item

1961-63

1962

1961

rise in

in flaxseed

and sunflowerseed acreage. Weather this season has been mainly satisfactory, but some damage may have resulted from recent severe rains.

1962

Item

is

392,900 acres, up markedly from 1963 but 4 percent below the unofficial estimate for \964{ Foreign Agriculture, Apr. 27, 1964).

1962.

"

Area

tion

1,000 acres 172.2

1,000 short tons 145.0

1,000 acres 285.2

37.1 83.8

21.5 31.3

34.1 73.6

293.1

197.8

392.9

Area

"

1,000 short tons 280.4 1.35.8

Rapeseed Flaxseed Other "

655.3

^



_

Total

1.071.5

Preliminary. Includes Navette. ® Excludes that grown fiber. " Includes primarily sunflowerseed and poppyseed. "

"

in

M etric

.2

25.2

above commodities

as follows:

Preliminary.

for

French Ministry of Agriculture bulletin.

Nigerian Purchases of Palm

Oil,

Palm Kernels

The Regional Marketing Boards

in

Nigeria purchased 92,980 long tons of

the Federation of

all grades of palm from January through May of the current marketing year. Through May 1963 purchases totaled 92,666 tons. Palm kernel purchases by the Marketing Boards through May 1964 totaled 175,336 tons. This was an increase of 4 percent, or 6,587 tons, from the 168,749 tons purchased in the same period a year ago.

oil

Page 14

Record Turkish Filbert Crop Predicted Turkey’s 1964

filbert

crop

is

forecast at a record 175,000

short tons inshell basis, or 88,000 short tons shelled equivalent. If the forecast

proves accurate, the crop would be 20

percent above the previous record of 143,300 tons in 1956

and 85 percent larger than the below-average 1963 crop of 94,000 tons. The current forecast represents an upward revision from the 120,000-ton figure published earlier. Foreign Agriculture

New Crop

Sets

;[iEgypt

Yugoslavia’s Tobacco Exports

Cotton Prices, Suspends Exports

Extremely large export sales of Egyptian extra long immediately after the announcement of offito be available for export cial prices for the 1964 crop

(Staple cotton

beginning in



October— resulted

in

the suspension

of

all

on July 12, until further notice. Upon the announcement on July 8 of new-crop prices nominally lower than sales

non-Communist

those previously in effect, export sales to

Yugoslavia’s tobacco exports in 1963 totaled 33.9 mil-

compared with 32.1 million in 1962. Larger Germany, Czechoslovakia, Egypt, West Germany, and France were more than enough to exports to Poland, East

drop

offset a sharp

in U.S. purchases.

Exports to the United States

pounds



little

more than

country

to

ning bales.

million pounds,

this

1963 totaled 7.5 million 14.3 million exported

in

half the

1962. Poland, with purchases of 7.6

in

was Yugoslavia’s

Communist and non-Commu-

largest foreign market Other leading markets were as follows: East Germany, 6 million pounds; Czechoslovakia, 3.9 million;

countries. Reservation of an equivalent quantity for

Egypt, 2.4 million; West Germany, 1.9 million; and France,

Under

the current Egyptian policy, equal quantities of

cotton will be exported to

means

the former

that roughly three-fourths of the prospec-

new crop was

exportable supply from the

tive

1963

lion pounds,

countries during the July 8-12 period totaled 250,000 run-

nist

in

ject to

commitment

year.

last

1.5 million.

sold or sub-

YUGOSLAVIA’S TOBACCO EXPORTS,

few days of trading.

in the first

Meanwhile, supplies of ELS cotton for immediate shipment to consuming countries remain seriously short, with high qualities from the 1963 Sudanese crop nearly exhausted and the smaller 1964 crop of Peruvian Pima not yet available in quantity. Some of this market shortage is expected to be alleviated by U.S. export sales of Egyptian and Sudanese ELS cotton formerly in the national stockpile and by forthcoming export sales of small quantities of surplus American Egyptian cotton.

1,000

1,000

1,000

pounds

pounds

pounds

6,535 5,101 3,905

4,382 14,344 4,775 1,629 2,293

7,579 7,478 6,025 3,929 2,447 1,853 1,450

Sweden

666

_

.

Egypt Germany, West France

3,201 2,133 7,381

_

.

2,206 1,741

684 385 198 220 359 690

0 0 1,395

35,050

32,088

33,909

719 679 662

-

.

Austria

Hungary Canada’s Flue-Cured Exports Up Sharply

Italy

Others

pounds of unmanufacfour times the tured tobacco in January-March 1964 quantity shipped out in the first 3 months of 1963. Prac-

Canada exported 21.7

tically

million



million pounds; the

vakia,

USSR,

and Japan,

million;

1

countries are

new customers

2.7 million;

The

815,000.

for

Canadian

Czechoslothree

last

leaf.

CANADA’S EXPORTS OF UNMANUFACTURED TOBACCO January-March Destination

United

Kingdom

1963

1964

IJOOO

1,000

pounds

pounds

4,676

16,054 2,712 1,000

USSR Czechoslovakia

Japan Netherlands

_

Hong Kong

_

Others

-

Total

_

-

-

-

Total

'Preliminary; subject

827 706 220

to revision.

of the exports consisted of flue-cured tobacco.

all

Major markets included the United Kingdom, which took 16.1

903 1,226

121

_

Belgium

1963'

1962

Poland United States _ Germany, East Czechoslovakia

1961-63

1961

Destination

_

815 169

_

__

_

..



_

-

..

-

72 415

835

5,163

21,742

157

Guatemala

Will

Import Baby Chicks

The Guatemalan Government

lifted its

ban on imports

The Commissioner of Poultry Development has recommended the importation

of day-old chicks on June 26, 1964.

of good-quality day-old chicks from the United States for

meat and egg production until local hatcheries improve Guatemala expects to import day-old chicks valued at $300,000 during the remainder of 1964.

their product.

Malagasy- U.S. Vanilla Agreement Concluded

A

$3. 4-million

vanilla

bean marketing agreement was

concluded on July 4 between the Malagasy Republic and the U.S. Vanilla Bean and Flavoring Extract Manufacturers Associations.

The agreement provides

for the purchase of 368 metric

tons of vanilla beans at U.S. $10.20 per kilogram, less an

West Germany Modifies Tobacco Duty Rates

80-cent advertising discount to be returned to the pur-

Germany modified its import duty rates on tobacco products from non-Common Market countries. The rates are now the same as the ultimate Common Market rates for tobacco products. The Effective July

new

1,

effective rates

1964, West

(which apply to imports from the United

chaser, and an additional

20 cents to be subtracted for net to the Malagasy

brokerage commissions. Thus, the Vanilla Stabilization

The

Fund

will

be $3,385,600.

tonnage is to be shipped no later than October 3 1 Purchase orders were to be placed prior to July 17, with those placed between May 11 and July 4 to be included in the 368-ton purchase and to benefit from specified .

States) are as follows:

Percent

ad valorem Cigarettes Cigars and cigarillos

Smoking tobacco Smoking tobacco Chewing tobacco

cut) (other)

(fine

Tobacco dust Tobacco (agglomerated) Other manufactured tobacco July 27,

1964

180 80 180 100 100 40 40 40

the

advertising

amounted

to

rebate.

226

Purchase orders for

this

period

tons.

In addition, U.S. importers have agreed to purchase

tons of vanilla for August

Comoro

Islands at

-

December shipment from

$9.70 per kilogram,

less

84 the

the 80-cent

advertising discount to the producer.

Page 15

DEPARTMENT OF AGRICULTURE

U.S.

WASHINGTON.

D.

C.

20250

U.S.

POSTAGE AND FEES PAID DEPARTMENT OF AGRICULTURE

OFFICIAL BUSINESS

To change

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

off

this

Pakistan Abolishes Minimum Export Prices on Jute

announced a new jute policy for the fiscal year 1964-65, through which it will abolish minimum export prices and set up a new system

The Government

for continuing

of Pakistan has

minimum

There

no special prejudice against U.S. onions in the except on the matter of sizing and bag weights, and some Canadian onions properly sized and bagged for this market last season brought a very good is

German market

price in

prices to the grower. Buffer stock

If

Hamburg.

the U.S. onion industry wishes to develop a European

operations and the quota system for exports will be con-

market on a sustained

tinued.

velop procedures for sizing and packaging onions in a

Exports of raw jute from Pakistan fell to 3.7 million - May 1963-64, from 4.1 million during the

manner acceptable

basis, the first prerequisite

is

to de-

to this market. This includes labeling

bales in July

of sizes and weights on bags and

same period of 1962-63.

sprout inhibition at least for the U.K. market.

some

certification of

14 In all probability, the best

way to do this would be to promulgate a new U.S. grade standard for export onions Mexican Government Purchases Cordemex Stocks

Mexico Nacional Financiera, S.A., has confirmed its purchase of the stocks of Cordemex, S.A. de C.V., which represents

the

cordage

Board of Directors the government.

industry

of

The new company in

Yucatan.

place control of the

will

market as before, but that

He

WORLD CROPS AND MARKETS INDEX Cotton

The new Director General announced that the company would continue the same relation to the American improve.

which would tend to make the practices of the industry uniform in character.

price, service,

and quality may henequen fiber

foresees a constant source of

for the mills through better relations with both the growers

and the Banco Agrario de Yucatan. He also announced that the local labor force will be neither increased nor cut, and wages will not be increased. The profits will be reverted to local improvements, such as roads, schools, electric plants,

and scholarships.

15

Egypt Sets

New Crop

Cotton Prices, Suspends Exports

Dairy and Poultry Products

15 15 Fats,

Guatemala

Will

Import Baby Chicks

Oilseeds, and Oils

11

Argentina To Import Sunflowerseed

12

Belgium’s Imports of Oilseeds, Products Decline

12

Philippine Copra and Coconut Oil Exports Japanese Rapeseed Production Increases

13

13

U.S. Exports of

14

U.S.

Tung

14 14

Soybeans, Edible

Oils,

Cakes, Meals

Imports Rise

Production Down 16 Percent

in 1963 Palm Kernels Brazil Permits Maximum Exports of Oilseed Meals French Oilseed Acreage Data Revised

Marine

14

Oil

Oil

Oil

Nigerian Purchases of Palm

Oil,

Vegetables, and Nuts Record Turkish Filbert Crop Predicted

Fruits,

U.S. Onions in Europe

14

(Continued from page 11) Grains, Feeds, Pulses, and Seeds

medium

A

few large onions are

sold, but large

11

U.S.

Wheat and

onions constitute only about 10 percent of the total German import trade.

11

U.S.

Feed Grain Exports Continue Upward Trend

ions of

size.

Buying U.S.-produced onions for

German

ing

and

price

is

somewhat hazardous

importers because of the delay between order-

delivery.

By

the time the onions arrive by ship, the

may have changed

drastically

and

if

the onions are

not sized according to the custom of the market, the buyers

may

discount them severely. For these reasons, U.S. onions

have been sold in the extreme shortage. Page 16

German market

only in times of

Flour Exports Highest in History

Livestock and Meat Products 11

U.S. Exports of

Animal Products Rising

Sugar, Fibers, and Tropical Products

15

Malagasy-U.S. Vanilla Agreement Concluded

16

Pakistan Abolishes

16

Mexican Government Purchases Cordemex Stocks

Minimum Export

Prices on Jute

Tobacco Canada's Flue-Cured Exports Up Sharply West Germany Modifies Tobacco Duty Rates 15 15 Yugoslavia’s Tobacco Exports in 1963 Foreign Agriculture

,i|

'I

1964
Agriculture Economic aspects Periodicals, Produce trade Periodicals
English