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. October 4, 1976 lliSli r...

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

October

4,

1976

lliSli

rting U.S.

processed foods

Brazil’s

Orange Juice Exports

World Food Prices

Foreign Agricultural

Service U. S. DEPARTMENT OF AGRICULTURE

«

With citrus output booming

FOREIGN AGRICULTURE Vol.

XIV • No. 40 • October

In this

1976

4,

as

Switzerland’s Poultry and Egg Output and Imports Decline

6

World Food Prices

8

Processed Exports: Food Growth Area for U.S. Firms By Vernon L. Harness and Philip B. Dwoskin

As Orange Juice Exporter n

Milk-Output Drop Checks Cheese Export Growth

Hungary’s

boom

Spain's

New

Olive

Industry

Looks

Markets

By Franklin

D.

Florida

a

frost

orange juice

Brazil’s

in-

few people foresaw the trade would follow. “An industry

that

but by

much

it

world’s

the

as

orange

concentrate,

juice

exports over three times

usually

the

off

case,

See

trade.

page

in

building food export report beginning on

8.

demand

67

year’s

to

nearly

181,000

Butz,

Secretary

Agri-

of

Richard

E.

Bell,

Assistant

Secre-

tary for International Affairs

and

Commodity Programs L. Hume, Administrator, Foreign Agricultural Service

David

Editorial Staff:

Kay Owsley Patterson, Editor Beverly J. Horsley, Assoc. Editor G. H. Baker, Marcellus P. Murphy, Isabel A. Smith, Lynn A. Krawczyk.

C. Foltz,

Richard M. Kennedy, J. Don Looper, Larry B. Marton, Brice K. Meeker. inson,

The Secretary of Agriculture has determined that publication of this periodical necessary in the transaction of public business required by law of this Department. Use of funds for printing Foreign Agriculture has been approved by the Is

Director,

Office

of

Management

and

Budget through June 30, 1979. Yearly subscription rate: domestic. $34.35 $42.95 foreign; single copies 70 cents. Order from Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. Contents of this magazine may be reprinted freely. Use of commercial and trade names does not imply approval or constitute endorsement by USDA or Foreign Agricultural

season.

Also,

Brazil’s

use

of

tribute to flavor. Brazil’s

rapid

rise

as

an

orange

concentrate exporter traces back to fortuituous

combination

of

tons

seen for 1976.

is

shipped only about a third as

much

as

Brazil

— 66,000 Brazil’s

metric

tons

181,000.

And

terms of single-strength juice, the gap

enlarges appreciably since Brazil ships largely

65°brix concentrate

5 parts

water to reconstitute) compared

(requiring

with mainly 45°brix (3 parts water) for the United States. In

addition,

Brazil

exports

sizable

quantities of concentrate to the United States

make ket.

— almost this

21,000 tons

Brazil’s

in

1975 to

fourth largest mar-

Giving impetus

to this trade

is

a

custom rebate of the duty paid on the imported orange concentrate if U.S.

the

importer exports

a

like

quantity

within 3 years. With the rebate in hand,

U.S. processors are able to quote

more

Service.

competitive prices for U.S. juice exports.

This imported Brazilian juice either

Page 2

a

circum-

previous

metric

States

in

Chairman;

Gordon O. Fraser, William Horbaly, James L. HutchJohn

the

Markets for these exports are diverse, although most of the top buyers are in Western Europe. Last year, the three leading outlets were the Netherlands, taking 42,880 tons; West Germany, 44,115; and Canada, 21,118. Growth in sales there and in other markets has made Brazil the No. 1 exporter of orange concentrate, with the United States now a distant second. Last year, for instance, the United

compared with

Advisory Board: Richard A. Smith,

juice to pro-

$82 million. And perhaps $225,000

another sizable gain to

L.

enough

(65°brix)

over the

percent

for a dollar value of

culture

remained

has

ports of orange concentrate

tons

Earl

new

strong. In calendar 1975, Brazilian ex-

soared

to store

the loss of volatile fractions that con-

orange trees have come into production foreign

inability

duce blends of uniform quality through-

growth

this

Seagoing container of U.S. al monds arriving at a San Francisco Bay pier for loading aboard ship.

interest

til

high levels of concentration accelerates

trend has accelerated recently as

An FAS-ERS survey of U.S. food processing firms shows expanding

be labeled Llorida orange



with time,

This week’s cover:

and

uct cannot juice.

out

as this country.

Rather than tapering is

as

concentrate, deriving in part from an

of

as

used for blending or sold

top ex-

States

porter

Lee

be

such, but in Llorida the resulting prod-

At one time, there were some quality problems associated with Brazil’s orange

United

as

can

se

III

1968 Brazil had surpassed the

with an uncertain future,” experts said,

and today for

when

1963,

launched

I

dustry,

10

Pal

lea

5

9

I!

Lead

Its

issue:

Brazil Extends Its Lead Orange Juice Exporter

2

Extends

Brazil

Foreign Agricultu

8

This almost overnight

stances that arose in the 1960’s. In into

fact,

came

processing

orange-juice

in

severely

occurred

chance.

crop and sent buyers and ering to

entry

The breakthrough 1963, when a Florida freeze damaged that State’s orange

by

almost

actual

nation’s

the

fill

scampwhose citrus

sellers

the gap. Brazil,

processing previously had been limited

producing essential

.

to



focal point since citrus

industry

expansion.

I ..

I

!l“ f l

A

it

oils,

was

a logical

already had a large

with

ample room

quick infusion of

for

money

rise

of an in-

dustry did not produce instant success. In

the

early stages,

121,000

in 1971,

1973, and 181,000

in

tons last year.

there were prob-

Permitting this rapid growth was a

lems with juice quality, including con-

large

tamination of the juice by

an abundance of land available to

And no

fruit

flies.

had a trade been launched then a market glut developed in

sooner

1965, raising worries that such an

export-dependent

would

industry

be

unable to survive.

The industry 1,500 tons

in

with

industry,

citrus

it

for further expansion.

Even

prior to

market,

juice

entry into the orange

its

had been South

Brazil

America’s largest producer and exporter of oranges, with around 80,000-100,000

did

and soon began to

Brazilian

survive,

flourish.

however,

From

only

1963, citrus juice exports

shot to 30,100 tons in

producing

acres

million boxes in

approximately

had increased tenfold

to about

and technology and speedy construction of processing facilities soon put Brazil on a footing to compete with the United

Brazil to surpass the United States as the

at

world’s leading orange concentrate ex-

expected to grow by about

States in the orange concentrate market.

porter.

They went on

1968, allowing

to hit

77,300 tons

acres with production

118

million

8.4

By 1975, area

1957.

million

1

14 times higher This figure

boxes.

is

million

1 1

boxes, to 129 million, during 1976/77,

with half the ouput going for processing.

Clockwise from right: Conveyor belt leading into orange processing plant; one of the largest citrus groves and one of the few irrigated in Sao Paulo, Brazil's leading citrus State; and rows of citrus seedlings.

is

Sao

during

the

Center of the export industry

Paulo

where

State,

trees

1976/77 season are expected to reach 84.4 million, compared with 80.2 million and 75.6 million in the 2 previous years. Production, in turn,

seen reach-

is

95 million boxes, compared with

ing

87 million and 82 million beginning

season

in the 2 pre-

The crop estimate

vious years.

April

for the

1977,

1,

is

104-120 million boxes. Processing

been boosted

here

capacity

— from

also

has

85 million boxes 1975/76 to an estimated 90-95 mil-

in

1976/77 as a result of a 50 perand 25 percent expansion in capacity of the two largest plants. In addition, one plant that was taken over by several cooperatives and the State Government is undergoing an expansion program that should double its operalion in

cent

tional capacity.

Among that

the roughly 20 other States

produce

citrus

in

Brazil

are

Rio

de Janeiro, Minas Gerais, Rio Grande

do

Sul, Sergipe,

and Bahia. Production

in

these

ranges from

States

10,000 tons, but in

little

of

it

2,000 to ends up

the export market.

So

producers

Brazilian

far,

most

achieved

of

their

have

production

growth through acreage expansion, with remaining low at around 1.6-1. boxes per tree per year about half yields



the

Florida

yields

yield.

Nevertheless

these

are higher than in the early to

mid-sixties better

with

and are expected to get improvements in cultural

practices including the replacement of old-line trees with virus-free (nucellar)

seedlings,

coming

And

4,

1976

of

which

are

now

with land and labor costs rising

Brazilian

October

many

into maturity.

citrus

producers can be ex-

Page 3

pected to put more emphasis on boost-

Meantime,

they

of

within

citrus

4

compared with

after planting,

5

concentrate

equal to the IPI tax exemption (up to

maximum)

15 percent

may

that

be ap-

most areas of the United States, while providing ample rainfall in 2 out of 3 years and virtually no problems

plied

with frost.

grant a similar tax credit for the

for

encouraging

Also

expansion

citrus

have been the Brazilian Government’s generous production and export incentives.

are

years

to

enjoy a climate that allows commercial

production

orange

of

years

continue

will

Exports

exempt from payments of the State sales tax (ICM) and the Federal valueadded tax (IPI). In addition, the Federal Government creates a tax credit

ing yields.

toward the

transactions.

The

divided

percent,

Given these

may

ICM

tax credit

equally

is

between

ICM.

the IPI and the

Producers with good potential and

individual States

The current export

tax.

28

on domestic

liabilities

South Korea Cuts

#

Imports of U.S. Rice South Korea’s

total

year are scheduled

rice

at less

imports this

than 300,000

compared with 483,000 tons

tons,

in

Higher rice prices have encouraged Korean farmers to expand both plantings of improved varieties and use of

As

fertilizer.

a result, Korea’s rice pro-

duction has jumped from about 5.5 mil-

positive factors, Brazil’s

lion tons

(

paddy) during 1969/72 to 6.5 1975, and may hit 6.8

million tons in

on which repayment begins in the 5th and interest is only 15 percent per annum half the commercial rate. The Government also provides a 40 percent subsidy on fertilizer purchases, as well as technical assistance and research support under the auspices of the

have

a

million tons this year. Planted area dur-

tions

for

federal organization for agricultural re-

year

can obtain 12-year loans



EMBRAPA.

seach.

bright future.

c

calendar 1975.

orange concentrate industry appears to

sufficient assets

ic

Industry projec-

1976/77 foresee production

of orange concentrate rising to 230,000-

250,000 tons, from 189,000

in

1975/76,

ing this period has

remained constant

at

si

about 1.2 million hectares. In 1975, Korea’s

commercial imports

with about 225,000 tons available for

of U.S. rice accounted for about 60 per-

export. Contributing to the growth will

cent

be the recent expansion in processing

ported

capacity and the prevailing higher prices

year, shipments financed under Title

for processing fruit.

P.F.

of the 472,000 tons of rice im-

from the United

This I,

comprise most of the

480, will

country’s

States.

imports,

rice

estimated

at

about 280,000 tons. Korea’s imports of

Seesawing Orange Trade

Brazil’s

ord

1

513,981 oranges,

Brazilian

well

as

as

orange concentrate, enjoyed an export

surge

year,

last

from past trends,

but

judging

no indication that a new era of expansion has ensued. For shipments of this product have been showing some erratic this

is

swings ever since reaching their time record

The surge traceable

demand

all-

1939.

in in

in

part

and

a

exports to

year,

last

strong foreign

good

crop,

citrus

1939 and 1959. interrupted

these exports did even better,

more

than doubling the 1974 level to reach $1 1.8 million. This

ever,

from

the

is

a far cry,

peak

of

1

of

fruit

European markets. Then,

Brazil’s

II

to

a

of Korean rice imports hit $195 million in 1975 because of high prices. However, Government procurement prices paid Korean farmers were considerably higher than those

ing out 10 million trees in Sao Paulo

and cutting exports to a 1939 peak. By 1945, shipments had shrunk to 44,000 tons. A brief upturn followed the war, but by 1953, shipments were down to 25,000 tons a year. State alone

fraction of the

From

these

about

industry

set

exports to their 1965 high

lifting

in,

just

recovery

depths,

time the processing

the

began siphoning

fruit for its

Exports

own

use.

sank

to

90,000-ton range

in

off

fresh

37.000

to

succeeding years,

near-record 159,000 tons set in 1965.

in

stay until

were the main-

advent

the

of

processing in

in

1939,

Brazilian oranges had ready markets in

Any

of Brazil's citrus export trade

1963. At their export peak

nearby Argentina, as well as in Kingdom and a number

the United

of other

European

nations.

In subsequent years, exports began a downward spiral that was to reduce shipments sharply between

1972

achieved

on

off

the

high

levels

1965 and 1939.

citrus

have found

of

for

imported

rice.

price for rice imported

The average

from the United

was $404 per ton in 1975, while Korean farmers received more than $600 per ton. Korean demand for rice has acceler ated as Government regulations requir-

States

more

changed. Prior to

were required

late

1975, restaurants

to serve a mixture of

70

percent rice-30 percent barley to cus-

tomers ordering ated rice

is

rice.

distribution

now

of unadulter-

of

clining rice prices have lessened the im-

so

portance of mixing rice with barley as

profitable to

more on

juice con-

a

means of conserving foreign exchange. Most of the gain in Korea’s cerea

produce a desirable product for the

consumption during 1976 will be provided by rice. Higher prices for wheai flour will keep the use of wheat aboul one-fifth below the per capita levels of

fresh market.

the early 1970’s.

tent,

rather

modern

than

on

the

careful,

cultural practices needed to

«k

permitted because de-

who

concentrate on juice oranges. These, of course, depend

paid

priorities

producers, it

The value

a record

However,

sustained rebound will hinge

reordering

a

Brazil’s

far

well in

Ik

ing the mixing of barley with rice have a

with the recent peak of 67,000 tons

all,

terms and most of the 451,457 tons imported from the United States was purchased with P.F. 480 ficoncessional

nancing.

metric tons achieved in 1939, or the

Oranges, after

reached a rec-

in

swept through the citrus groves, wip-

how-

80,000

World War

flow

tons

tons

disastrous attack of the tristeza virus

carried Brazilian shipments of fresh

oranges some 84 percent above their 1974 level to 73,000 tons. Value of

First,

the

rice

1971, when came from Japan under

million

—John

B.

Parker,

Jr.,

ERS

tt;

Page 4

Foreign Agriculture



— meat

J.S. poultry

sales up, as



Imports

poultry

of

poultry

witzerland’s

S

and

output continued to decline

in

egg

1975

n the face of large and cheaper imports,

j.

|.

.

kilograms a year,

from East European countries;

grams

'ailing

consumption, caused by a drop

consumption,

n the number of foreign workers; higher

5

with a drop of 7.9

percent

while per capita utilization

riainly

5

r

States

France, with a total of just 9 tons

1974.

in

sented

52.9

down from

Of

1974, 6.3

to

s

(52.8

repre-

percent

in

1974) and domestic birds 47.1 percent, 0.1

percent lower than the 1974 level.

:arryover stocks from 1974.

While consumption of domestic poultry

Imports of poultry meat and most egg products fell between 1974 and 1975

declined 7.6 percent, that of imported poultry meat was

United States,

however, recovered

its

down

7.2 percent.

The number of hatching eggs

downtrend. The

broilers rose

set for

by 9.7 percent, while those

1973 level of exports to Switzerland by

for layer-type chickens

nearly doubling

Despite a 2.9 percent reduction in the

its

sales of poultry meat.

The United States was also a major sup(albumen and a dried shell eggs

After

1

976

less

egg

dried

important source of



as of April

1,

refund levies

to partially

on imported poultry feed. This could

meat output matching the 1975

result in poultry at

least

possibly exceeding

it

number of hatching eggs were

this

year

level,

slightly.

A

for

or

large

broilers

1975, which also indicates

set in

number in

good

720

Because of the rise in feed prices and the drop in producer egg prices, the number of eggs to be sold eggs to

1

66.

pay for 100 kilograms of feed rose from 337 in 1974 to 274 in 1975.

to

The reduction of in the settings

a

level of

from 208 eggs to 215 eggs. Consumption of imported and domestic shell eggs was down 2 percent. Per capita consumption dropped from 170

Larger Swiss poultry meat production could lead to reduced imports, but U.S.

—particularly

1974

at the

million because annual per-hen output

1975,

stand

5.9 percent.

of layers, Swiss egg production

1975 stayed

an increase in output.

exports

fell

rose

reduced production,

Government

—began

of

and egg yolks.

last year’s

the Swiss !

imports

Swiss

of

plier

of turkey parts

depressed

that of

numbers

in

and the drop

of layer eggs signal that

Swiss egg production

match

layer

prices,

in

were down 3.6 percent to 22,537 tons. Poland replaced Finland as the main supplier and was followed by Hungary, Czechoslovakia,

France,

1976 may only

these countries are subsidized, they were

European counimproved their trade positions, with market shares ranging from a high of 21.9 percent for Poland to 4.6 percent for Romania. Finland and, to a lesser degree, France lost ground. Except for dried shell eggs and egg yolks which were up 16.3 percent Swiss imports of other egg products fell in 1975, compared with 1974, by between 19.7 and 56.5 percent, depending on the product. The United States remained the main supplied of dried albumen, but volume dropped 25.5 perprices. All of the East tries



cent to 216.1 tons. In the first 7 months of 1976, U.S. exports of albumen amounted to 83,000

pounds, compared with 99,000 pounds in

the

same period of 1975; the value

remained stable at $141,000. The United States exported 143,000 pounds of dried eggs period, the

in

the January-July 1976

same

the

previous

U.S. prices remain satisfactory.

1,377 tons of poultry meat (excluding

reason for the slide

During January-July 1976, U.S. exand frozen turkeys and

poultry

ports of fresh

previous year’s 678 tons. Last year, this

turkey parts to Switzerland rose 39 per-

country

volume to 1.49 million pounds, while value more than doubled to $1.36

Swiss poultry meat imports, compared

By

category,

U.S.

exports of

whole turkeys to that country fell in volume and value to 33,000 pounds and $12,000, but exports of turkey parts rose first

from 881,000 pounds

in the

7 months of 1975 to 1.46 million

pounds

in

the

1976 period and value

climbed from $499,000 to $1.35 million. Production. Swiss poultry meat production in to

1975 declined 7.6 percent down from 21,100 tons

19,500 tons,

in 1974.

Total poultry meat consumption decreased by 7 percent in 1975;

October

4,

1976

compared

more than double

provided

6.3

percent

of

the

all

with 2.8 percent the previous year. Total poultry meat imports dropped from 23,600 tons in 1974 to 21,900 tons in 1975. Main sources were Hungary, France, Czechoslovakia, and Denmark, the same as in 1974. The U.S. import volume put it in fifth place, up from sixth place the year before. Reduced Swiss imports of U.S. whole birds were more than made up for by imports of parts— particularly of turkey. Toward the end of 1975, the United States was competing strongly with Israel

in

schnitzels.

value

in-

ecrease demand by the food proc-

D

million.

period of

the

1975.

provided Switzerland with imports of

cent in

the

creased slightly to $246,000.

strongly in the Swiss market, provided

livers),

in

but

as

year,

Imports. In 1975, the United States

of

German

able to offer shell eggs at very cheap

competing

chance

the

cause the poultry industries of some of

birds

Droduction costs arising from increased

earlier

earlier.

poultry meat

total

import levies on poultry feed; and large

continuing an

year

Democratic Republic, and Romania. Be-

,1

i

1.7 tons a

6.9 kilo-

imported percent

1

Swiss imports of shell eggs in 1975

in

fell

The United ranked third as a supplier after

down from

Output and Imports Decline

:

again hold-

ing top spot in the market.

Egg

Switzerland’s Poultry and

;

decreased

liver

Denmark

38.2 percent, with

the sale of calibrated turkey

egg

essing

industry

products

in

is

in

the

principal

imports of most

1975.

The German

Democratic Republic managed to enter new segments of the market and improve its sales position for shell eggs and egg products except albumen. Imports of shell eggs and of egg products in 1976 are expected to hold near their 1975 levels because of low prices for shell eggs, especially from East European countries. In the case of egg products, the decline in imports should bottom out as food processors take advantage of an upturn in demand expected by the end of summer. Consumption of both eggs and egg products in 1976 is unlikely to drop.

— Based on

report from

Office of U.S. Agricultural Attache

Bern

Page 5

Lower Rates of Food

Price Increases Reported M

anada has joined the list of countries whose official food price in-

C

dexes

have registered

(FPI’s)

two countries continues

these

at a rapid

pace.

slower

number

a large

beef,

larly

Australia’s rate of inflation has eased

of food items

acl

particu-

and other

potatoes,

eggs,



vegetables.

[j, j

rates of gain in recent

somewhat under

months.

During July 1975-July 1976, Canada’s FPI increased by only 1.1 percent, compared with a gain of 14.8 percent in the previous 12-month period. This downward trend also in the

FPFs

is

and in

noted

Brazil,

expected

are

under In

however, the

heat

FPI’s

the

prices

increase

to

persistent

have

already

with

ref

let

no

nu

reached a

retail prices

oil

prices

record

in

i

high,

up 3-5.5 percent over

those of 2 months earlier.

and

that beef prices

are expected to decline soon as a re-

waves have seriously disrupted normal supply-and-demand patterns for

of

months ahead. Fresh pork

ing the

price

drought

po

could cause prices to trend upward dur-

Copenhagen reported

Brussels,

slaughter

cattle

pated gradual reduction in beef supplies

percent

12

new domestic sugar

increased

and lower produce prices, food prices in Brussels on September 1 remained near July’s high levels. And an antici-

agreement.

countries.

the official

Australian

shopped in Canberra on September 1 were mostly unchanged from levels reported 2 months earlier. Sugar prices, however,

pared with 11.2 percent during the previous 12-month period) and, to a lesser In Argentina

Food

of 1976.

was 2 percent between July 1975 and July 1976, com-

upward trend

large

Despite

supermarket chains have frozen prices on their house brands until the end

of the United States (where

some West European

Two

program.

terity

the rate of increase

extent,

the Government’s aus-

drought-induced

of

sult

higher

levels

of cattle slaughter. In Brasilia, the only beef items avail-

able at

FOOD PRICE INDEX CHANGES

IN

SELECTED COUNTRIES

December are frozen cuts from Government stocks. London’s red meat prices at high

Percent change from Latest

Country

month

Argentina

.July

Australia

.July

Belgium

.

Brazil

.June .July

France

.July

July

Germany

July July

Italy

Japan Mexico

.July

Netherlands

.

.

.

Sweden United Kingdom United States 1

.

Based on

.

.

.

.

.July .July .July .July .July

official

=

month

+ + + + + + + — +

3.9

+ +

.7

+ + — +

+ + + + +

1.0 1.1

1.9 .3 .4

1.9 1.0

4-

2.0

3.5

10.5 2.0 1.1

+ — + — + + + — +

.2

1.4 .4

.8

.3

.2

2.1 .7

1.0 .1

because

levels

year

+ 484.5 + 11.3 + 14.6 + 44.3 + 1.1 + 6.7 + 9.1 + 3.7 + 16.2

20.3



One

Three months

Prev.

6,665.0 175.2 160.6 400.5 169.7 177.8 173.5 137.1 200.5 194.8 202.5 151.8 170.7 273.1 158.5

May

Canada Denmark

Index 1970 100

between August 15 and

retail

1

of

supplies

short

meeting considerable consumer ance.

Pork

somewhat more

is



are

resist-

plentiful

than a year earlier, but prices remain high.

Bacon

prices

are

moving up, volume

partly as a result of a reduced

from Denmark. Anticipated feed costs have forced and egg prices up substantially.

of imports

increases broiler

9.6

in

In contrast, broiler prices in Brussels

1.3

+

7.7

.3

J-

9.0

2.3

+ + +

11.6

dropped 12 percent from the high levels prevailing during the past 6 months. The

12.5

decrease

2.1

1.6

2.0

reportedly

is

a

result

of

continued high level of production

1

a

,

fol-

i

lowing the sale of 1,500 tons of broilers

price indexes.

FAS SURVEY OF RETAIL FOOD PRICES

IN

SELECTED WORLD CAPITALS, SEPTEMBI

[U.S. dollars per lb or units as indicated, converted at current

exchange

rates

Cheese: Steak, sirloin,

boneless

City

Bonn

Roast,

chuck, boneless

Pork

Roast, pork.

chops

boneless

Bacon,

Ham, canned

sliced,

Broilers,

Eggs,

pkgd.

whole

dozen

Butter

Margarine

Edam, Gouda, or Cheddar

Milk,

Oil,

whole,

cooking, quart

quart

Tomato

4.50

2.88

2.45

1.61

0.72

1.30

0.38

1.63

0.28

.94

1.71

3.68 2.45

1.13

.67

4.14 1.86

0.82

.77

.59

.80

1.27

.44

1.49

.22

.88

.28

3.94

1.99

2.04

2.11

2.70

1.40

.99

1.14

1.66

.67

1.94

.40

.39

.79

0)

(')

.73

1.08

1.24

.69

1.24

.23

Canberra ....

1.72

.85

1.81

1.81

F) 2.12

.96

1.17

.97

.83

1.61

.43

Copenhagen London

4.96 3.04

2.33 1.44

2.70 1.42

3.21

.94

1.33

1.53

.47

1.42

.39

1.46

1.81

.66

.85

.76

.59

.92

.25

.28

!|

.93

.84

.91

1.95

.48

1.15

.62

.88

.29

11

1.19

2.20

.97 1.35

1.19

.91

.59

1.58

.58

.35

1.80 1.06

.50

0)

.18

il

2.13 2.98

1.90

(')

2.28 3.24 4.45

.91

1.64

1.60

.70

.34

.78

.30

i)

2.36 2.39 3.17 1.96 2.00

4.22 2.93 3.30 2.25 2.25

2.75 2.05 4.48 2.35 2.35

1.47

1.05 1.54

.97

.32

4.38

.68

3

.86

1.14

1.40 1.44

2.26 1.69 1.54 1.39 2.06

.19

1.80

1.15 1.86 3.77 1.65 2.94 3.26 3.60

.61

2.86 2.75 5.19 3.79 8.80 1.77 2.86

2.85 1.14 1.20 1.73 2.46

2.50 2.53

1.07 2.15 1.46 1.64 1.13

.43

.76

.48

1.71

.35

.84

.20

!)

1.36

2.38

.68

1.67

.46

.73

2.18

.47

1.36

.49

.69

1.61

.35

1.36

.43

Brasilia

Brussels

....

Buenos Aires

Mexico Ottawa

.

City

.

Paris

Rome Stockholm

The Hague Tokyo Washington Median 1

.

.

.

.

.

.

.

Not available.

Page 6

2.15 6.00 1.22 1.64

F)

.86 .96

1.28

.94

1.81

.53

.89

2.48

.86

1.08

2.27 1.40 1.40

1!

:

.78

» J

.61

;

1!

.44

5

!

S

1

«

I

A

I

Source: U.S. Agricultural Attaches. Foreign Agriculture

Oi

— USSR

to the

Toyko’s

during the past 3 months.

action to boost the 1976 resale price.

Mexico

In

have

prices

City,

declined

food

reported

all

substantially

in

U.S. dollar terms since the previous report.

However,

prices have not yet fully

reflected the peso devaluation 1.

number

of price-controlled

hold

will

the

line

an-

on

items,

a

but

others are expected to rise significantly in the

months ahead. Sidonia R. DiCostanzo,



Expects Large Cereals Crops Arabia expects bumper harvests of most of its cereals and vegetables in 1976, owing to improved

S

audi

irrigation

the

facilities,

uses

of

high-

tons in 1974, according to subreflect

sidy

food price changes in general, are government obtained from official sources. They are based on local-currency prices, and are not directly affected by exchange rate fluctuations. Food prices of selected commodities are obtained by U.S. Agricultural Attaches on the first Wednesday of every other month. Local currency prices are converted to U.S. prices on the basis of exchange rates on the date of the compilation. Thus, shifts in exchange rates directly affect comparisons be-

tion

The objective

of the survey is to re-

countries of items normally purchased by U.S. consumers. Exact comparisons are not always possible, since quality and availability vary greatly among countries. An attempt is made to mainflect the level of prices in other

consistency in the items and outlets sampled, but they are not necessarily representative of those in the tain

reporting countries.

to

payment in

records. Gains in produc-

areas were

irrigated

the loss in

offset

toes

Apples

pkgd.

to

with in

bolster

further

yields

in

Sugar

According to subsidy payment

sorghum

production

in

Arabia increased from 112,000 tons in 1974/75 to 120,000 in 1975/76. Millet production also has benefited from

in-

creased fertilizer and improved irrigation in Jizan Emirate. Despite technical

from Taiwan,

assistance

rice

production

has remained below 4,000 tons annually

because other crops requiring

more

less

water

feasible.

total includes

owing

to

1

.25

.20

.34

2 9 4

.33

.36

.19

.23

.05

.40

1.49

.52

.54

.22

.28

.32

.25

of

.19

1.24 1.32

.64

9

.37

.25

.27

3

.64

1.51

.85

.59

.36

1.42

0.28

0.65

0.25

1

.49

.37

.47

.20

.14

0

.25

.67

.30

.41

.34

0

.17

.55

.29

.43

.37

.40

.36

.17

.58

.52

.29 .20

7

.21

9

.53

7

.22

.88

.28

.39

.27

6

.92

4.24 1.47 1.32

.44

.44

.43

0

.46

0

.28

subsidies

4,

1976

the

New

facilities

Emirate to

and

Qasim

are planned in

produce canned tomatoes

tomato

Fruit and tomato Arabia can be purchased by urban shoppers for prices about the juice.

juices in Saudi

same

as those of drinking water.

imports

Duty-free

of

juices,

fruit

beverages, have bolstered

demand

for

juices in

1976

will

million,

with

about

The fresh

probably exceed $17 one-third

coming from importance

imported

foods

of

the

has

grown

locally

and

vegetables

of

the United States.

variety

the

of

grown consider-

ably in the past 5 years. Both eggplant

and squash have become an important part of the Saudi diet, which was once bread, by wheat dominated rice, sorghum, and dates. Eggplant output exceeds 200,000 tons annually, and can be found in markets throughout the Squash production was only year. 18.000 tons in 1970/71, but this year the harvest is estimated to be 58,000 tons.

in

Date production totaled 252,000 tons 1970/71, but output has been steadily Production

declining since that point. this

year

is

estimated at 235,000 tons,

the lowest total in years.

Demand

dates

for

has

declined as

incomes have increased and a other foods has occurred.

shift to

Few new

date

groves have been planted, and labor to care

for

and harvest dates

become more expensive.

trees

New

has

process-

Government programs to revive production of this commodity. In addition, Saudi ing facilities are scheduled by

Qasim Emirate. Exports of watermelons to neighboring countries exceed $10 million annually. New modern

Arabia has scheduled imports of thou-

roads enable farmers to deliver their

from nurseries

other countries where improved varie-

.48

.35

.21

melons promptly to urban markets

.40

.39

.25

less

than

1

in

day.

Tomato production October

in

285.000 tons.

output beneath date

1.20 2.48 1.49

0.20

an-

1970/71 level and 26 1974/75 crop of

over

percent

tomatoes production

estimated at 358,000 tons

is

four times the

rec-

Saudi

on inputs, improved irrigation, and booming demand in urban centers. Watermelon production increased from tons in 1970/71 to an estimated 1.2 million tons in 1975/76. Most major American varieties of watermelon are planted, with yields exceeding 30 tons per hectare (1 ha = 2.471 acres) in the sandy oasis farms

9

1975/76

supplies

1976.

also has increased markedly, Rice

topato

Total

nually.

of

tons

Arabia’s imports of fruit and vegetable

Emirates

are

Medina grow

hectare. Gardeners near

100,000

is

tons per

1 1

more fertilizer, Qasim and Riyadh

allowed farmers

ords,

— about

imported juices in recent years. Saudi

491,000 palm trees and in vineyards. Vegetable production in Saudi Arabia white,

considerably lower

such as Kalyan Sona and Mexi-

coupled

pak,

The

along with a ban on use of alcoholic

Greater use of high-yielding wheat varieties

a hybrid

States.

average yield for the entire country

rainfed areas of

Alfalfa production in 1976 is estimated at 1.1 million tons, up 16 percent from last year’s level of 950,000 tons.

Bread,

re-

sufficient

the Asir Highlands.

This

Oranges, dozen

from the United

variety

use of fertilizer.

Data Qualifications

tween time periods.

in

Province

Eastern

VF-8 tomatoes,

hectare from

about

Total wheat production in 1976 is 90,000 estimated at 205,000 metric tons, compared with 194,000 tons in 1975 and

Food price indexes, which

in

portedly obtain yields of 80 tons per

yielding varieties of seeds, and increased

FAS

Some farmers

flourishing.

is

Hofuf Oasis

of Sep-

The Government has

tember nounced

it

also

Saudi Arabia

Government

following

percent,

5.8

have advanced by

rice prices

sands of young date trees

ties

in

Saudi Arabia

are

in the

this

winter

United States and

available.

—John

B.

Parker,

Jr.,

ERS

Page 7

Processed Food Exports: Growth Area For U.S. Firms VERNON

By

L.

HARNESS

Foreign Market Development Foreign Agricultural Service and PHILIP B. DWOSKIN National Economic Analysis Division

Economic Research Service xporting processed U.S. food prod-

E

ucts

that

for

is

is

a thriving, specialized trade

not only encouraging searches

new and expanded markets but is new exporters and food

EXPORT INTEREST HIGH, SURVEY SHOWS FAS

in recent years

has paid increasing attention to export opportunities created by U.S. food technology leadership in the development of convenience foods and food control systems. Coincidentally, the spread of affluence and changing lifestyles in the developed countries have led to rapid growth of hotel-restaurant-institutional (HRI) markets in these countries. These changes have increased the need for additional foreign marketing information. Responding to this need, FAS and ERS in late 1975 conducted a survey to determine the level of HRI exporting interest among U.S. food processors and the potential for expanding and servicing that sector through FAS foreign market development activities. To accomplish this survey, a list of all known HRI food processors was compiled from FAS, ERS, and trade association sources. Telephone contracts were made with 250 companies, resulting in 226 completed interviews. Respondents were asked such questions as the locations of their foreign markets, the kinds of products exported, and their knowledge of FAS foreign-market programs. Interviews were conducted by FAS and ERS professional staff.

more specific informaon current economic, political, and

they contained tion

data

financial

veyed

products.

Government

sampling of foreign maketing interest by U.S. food processors conducted

by USDA’s Foreign Agricultural Serv(FAS) and Economic Research ice Service

(ERS)

reflects

widespread par-

ticipation as well as interest in overseas

by the processors interviewed. Most of the 226 U.S. food processing

sales

FAS-ERS

firms interviewed in the

sur-

vey said they were either already engaged in foreign marketing or were interested

in

entering into such activity.

Companies expressing no

interest in sell-

ing abroad are mostly smaller firms with intent capacity, production mainly on meeting domestic demand for

limited

their products.

The importance of

timely,

specific

economic information in foreign marketing was emphasized in the FAS-ERS interviews by processors already engaged in export trade as well as by those considering entering

More than

it.

companies engaged in foreign marketing reported receiving notices of FAS overseas promotional activities, and almost the same half the

proportion of firms expressing interest but not engaged in export sales also reported regular receipt of

FAS

materials.

Eight out of 10 companies that reported receiving

FAS

that these materials

materials stated

were important

to

Some companies

FAS

expressed

interest

receiving

in

assistance for their current

and planned foreign market activities. FAS market development programs were identified as useful in this regard by most respondents. A strong thread of interest even enthusiasm in foreign marketing was evident in many of the interviews. Optimism concerning the future of export marketing of processed food items was found both in firms presently engaged in this activity and by firms contemplating such a move. Most U.S. food processors engaged in export trade market their products through the major foreign channels retail and hotel-restaurant-institutional







materials

Page 8

reported

that

the

would be more useful

if

of processed products in

Almost

all firms presently engaged in marketing of processed foods selling in such Far Eastern and

foreign are

Southeast Asian markets as Japan,

Hong

Kong, and Australia, or in Western Europe and the United Kingdom. Other popular markets are Canada, the Caribbean, South America, and the Middle East.

Nearly

all

foreign markets for U.S.

processed foods are countries, since

the

in

developed

those countries that

it is

have rapidly growing food services secand thus offer the greatest market

tors

potential.

The

principal

reasons for expecting

continued growth of these markets cen-

deal directly with

customers or through ex-

their foreign sales as they gain export

(HRI) outlets. Most firms either their foreign

lines

full

foreign markets.

around three main situations: Many food processors are just getting their feet wet in foreign marketing. These companies expect to increase

port agents. In

some

instances, both ap-

proaches are employed.

ter



marketing experience. They believe they can compete in foreign markets because

of processed food products

Continued on page 12

sold overseas covers a wide variety of

U.S. FOOD PROCESSORS: FOREIGN MARKETING PARTICIPATION

The

list

The major product

items.

categories are

meat, poultry, vegetables, baked goods, fruit,

and snack items. Foods

in

Response

these

question, “Does your firm products overseas?”

to

sell

categories are sold in every conceivable

form



fresh, frozen, canned,

Number

and dehy-

drated.

Yes

Meat and dairy substitutes, condiments, and beverage items also are pop-

No, but interested No, not interested

ular in foreign

A number

HRI

of firms complained about

as

food additive and labeling

re-

.

.

.

.

.

1

Total

‘Some business:

51

...

128 58 40 24

...

250

100

.

No response

markets.

eign tariffs as well as such nontariff barriers

Percent

firms

the marketing difficulties raised by for-

them.

of

markets. However, most companies sur-

also attracting

A

foreign

individual

for

quirements that impede the marketing

firms

.

.

... ...

contacted

others did

23 16 10

were out of

not choose to

re-

spond.

Foreign Agriculture



Hungary’s Milk-Output Drop Checks Cheese Export Growth —a —

ungary

H

porter

sales

longtime

unable

is

cheese

ex-

expand

to

hard currency countries,

to

its

ac-

cording to Nicholas M. Thuroczy, U.S.

Attache

Agricultural

Vienna,

in

al-

duction

only

of

an average output of

per cow. Total

milk pro-

purposes slumped from

all

million in 1975.

Hungary has switched from being

processing

1,959 million

1974

in

liters

1,900

to

milk

in

supplies

for

is aggravated by a 5 percent domestic per capita milk con-

exporter of dairy products to a net im-

rise

porter in 1974 and 1975.

sumption

For many years, Hungary’s exports of cow and sheep cheese have been moderate but reliable hard currency earners, and in 1974 accounted for nearly $10 million. Total cheese exports

a further 6 percent rise in

domestic consumption of sheep cheese

consisted of 6,328 tons of cow cheese and 995 tons of sheep cheese, for a

ther.

The Council

Mutual Economic

for

(COMECON),

Assistance

East

the

economic grouping, took 1,271 tons of Hungary’s 1974 exports of both types of cheese, with most of European

total

this

going to the

German Demo-

Republic and a smaller amount

I cratic

to Albania. The second largest volume went to Lebanon (1,064 tons). The European Community took 897 tons;

839 tons; 430 tons. In 1975, several fundamental changes took place in Hungary’s cheese export trade, Thuroczy reports. Cheese sales and

Austria

Nearly

Switzerland,

Libya, 679 tons; and Greece,

hard currency countries fell sharply and export earnings from these markets barely approached $2 million. In that to

1

1

kilograms

8

are

is

relatively

milk,

1975.

1976, higher producer keep support payments at a minimum. But even Government promptings cannot make up for a sheep

sidies,

and

prices

should

of

because

largely

milk

outturn

also

is

sheep numbers decline, but

to be

likely

the

cheeses

are

meat in the USSR from Government-held supplies continued to show a further decline 21 percent less in January-July 1976 than in the same period a year earlier. Output equaled only 3.85 million tons, 1

output

of

million tons less than in January-July

agency, increased

its

ones,

traditional

in

but also in North Africa,

and Spain, both relatively new buyers. Although with

considerable

believes

there

competition,

an

is

10,000-ton market a year for

8,000-

its

high-

quality cheese in the years immediately

Hungary

ahead. Furthermore, lieves

Emmentaler cheese even

also be-

can find strong markets for

it

many

in

its

countries,

Switzerland.

in

Soviet Industrial Output of Industrial

is

In

TERIMEX,

of this drop,

markets, not only

Hungary

sheep

year’s.

last

raw materials barter activities toward the end of 1975. Hungarian cheese rates high on world

faced

for

lower than

State export

Higher sheep cheese export prices could offset the drop in volume somewhat, but the fall from 2,000 tons exported in 1964/65 to the 800 tons shipped in 1975 is probably too great to be compensated for, even though prices

at least in the short run.

too encouraging and output in 1976

not quite as fast as consumption.

export

in

The short-run outlook for domestic production of cow cheese also is not

anticipation

made

low and falling even fur-

But sheep as

1974 and

available for export

still

sheep

of

in

of the products

all

Hungarian milk

falling

of 7,323 tons.

total

to

Last year, for example, sheep

milk shortage,

The shortage in

Thuroczy notes that the Hungarian Government has a vested interest in shipping more sheep cheese since margins are more favorable than for cow cheese.

for

duction for

for

cheese exports required no State sub-

2,800

liters

than

higher

percent

the

plan called

though demand for Hungarian cheese is strong in most of its traditional markets. Milk production dropped in 1975 and a net

liters was Government’s

70-80 cheeses.

2,576

although

achieved,

now cow

Meat Down

meat output of more than

a third.

Soviet industrial production of meat

from Government-held supplies for the month of July in the years between 1972 and 1976, inclusive, in thousands of tons,

was;

1972,

525;

1973,

477;

1974, 574; 1975, 739; and 1976, 481.

year, Hungary sold only 780 tons of cow cheese abroad, equal to about 12

1975. This sharp drop was because of

Production

unusually poor feed supplies from the

years

percent of the previous year's level. In

1975

1972, 4,133; 1973, 3,851; 1974, 4,365;

same

the

Hungary had

year,

to

import

a large quantity of butter.

The drop than

2,000

tons

less

1975

(including

largely

because of

in

was

sheep cheese) a shift

cheese exports to

in

from cheese and butter produc-

tion to beef, leaving less cheese avail-

exports for 1976 to

At

for export.

able

may

around 2,500

will

be

still

the

current

rate,

be up somewhat

tons.

way below

This,

however,

the 7,000-8,000

tons exported in earlier years.

The

1974

feed

higher feed costs,

shortage,

its

made keeping cows

for milk production too expensive.

As

a

result

of

the

drop

in

cow

numbers, an average per cow milk proOctober

4,

1976

in

January-June for these

also in thousands of tons

—was:

heavy livestock slaughtering in 1975, and good pasture and forage crop development this year, which contributed to reduced livestock

products such as butter and whole milk

slaughter.

during January-July 1976 showed mixed

drought, carry out livestock sult,

season,

because

1975,

In

Soviets

the

heavy

rose

in

Industrial

output of other livestock

results. Butter output,

which dropped 4

percent during January-June 1976 from

slaughter

of

the year-earlier level,

As

re-

July.

forced

output of meat

in

1975, 4,859; and 1976, 3,864.

to

were

a in

that

comJuly 1974, and was

by almost a

pared with that

severe

the

of

distress

beginning

industrial

month

third,

above output levels in July 1972 and 1973. However, because of heavy slaughtering last year and greatly improved pasture by mid- 1976, Soviet livestock slaughter was below normal this July, resulting in a drop in industrial far

with

crop



showed some improvement in January-July, reaching 756,000 tons, a reduction of only 2 percent. On the other hand, whole milk production, which reached 13.8 million tons in January-July 1976, continued to lag 4 percent behind the level of a year

This was the same percentage production lag as in January-June of

earlier.

this year.

— Angel

O. Byrne,

ERS

Page 9



Spain’s Olive Industry

Looks

New

for

By FRANKLIN

Markets

LEE

D.

Foreign Commodity Analysis, Fruits and Vegetables Foreign Agricultural Service

ooming

B

olive

depend-

harvests,

ence on one market

outlet

(the

United States), and saturated domestic demand have combined to launch the Spanish table olive industry the



1

world’s largest producer and exporter

on

new markets. Further

a search for

impelling the search

is

the

increasing

and Greek challenge to Spain’s dominance of the world olive market.

U.S.

In

acreage

with

1975,

reported

at

as

contends that such aid constitutes

it

unfair competitive practices.

During 1970-74, Spain’s olive shipments to the United States averaged roughly 39,000 tons, or 52 percent of Spain’s total exports. During the prior 5-year period, U.S. imports had accounted for 73 percent of total exports of Spanish olives. While the percentage taken by the United States is trending

downward, U.S.

imports,

152,100 hectares, Spain produced 142,93,000

terms, have actually risen.

than the record crop of 154,400 tons

olive

000 metric tons of harvested

1972, but a

in

tons.

commanding

1974 output of

over the

percent

53

olives, 8 percent less

The apparent drop

in

the

1974 crop was directly attributed to severe drought conditions in the major producing regions during blossoming. 1970’s, Spain’s produc-

In the early

and acreage mushroomed, primarily owing to the Government Agricultural Development Program. tion

For the

olive industry, this provided

Contributing

to

in

dip

a

in

exports to the United

absolute

Spanish States

in

1974 was an investigation of Spanish subsidies on bottled olives shipped to the United States, conducted by the U.S. Department of the Treasury, Bureau of Customs. The investigation

and

1973

resulted

an additional duty of 2.9

in

on

establishing

as

better

sources. 67,000 aid

Also

included

farmers,

to

usable

was

provided

by

irrigation

technical

research

centers located around the country.

would ease

diverted olives destined for black olive

imports

U.S.

1975

Spanish

of

olives

in

26,700 tons, valued at $55.5 million, accounting for over one-

from Spain.

On

the export side, Spain’s past per-

formance has been good. Spain’s olive exports during the 1966-70 period averaged 45,000 tons annually, peaking at tons in 1970. During the subsequent 5-year period, 1971-75, Spain’s

grew

exports

considerably,

tons annually

— 60

averaging

percent over

those in the previous 5-year period.

As

with production, Spain’s olive exports also have

ance

in

had some Government the

way

of

subsidies.

assist-

These

export subsidies have been challenged

by the U.S. bottling-repacking industry,

istorically, Spain’s olive exports to the

Unless otherwise noted, the term “olives”

refers to olives for table use.

Note: A detailed report on Spain’s olive production and exports is in preparation and will be published as FAS M-273.

Page 10

Once imported,

bulk form.

were repacked U.S.

retail

in

tablished

containers by

bottling-repacking

its

own

began shipping

in

olives

the

industry.

However, during the 1960’s, Spain

Other than the United States, there virtually no single large markets Spanish

for

retail

packs directly

to

olive

shipments

from

Spain

to

the

United States have been trending downward, while risen.

retail

Currently, in

pack exports have terms of volume,

of

scattered

in

olives,

other

the

as

Spain’s

olive

exports

50 are

small amounts to the rest

of the world. Italy, France, and

Canada

are the only other sizable purchasers,

together

accounting

for

about

one-

fourth of Spain’s total exports.

Although Spanish olive exports

es-

bottling industry and

the United States. Since that time, bulk

to

these countries have been trending up-

ward

the

recently,

could

situation

change drastically. During 1970-74, Spain was unchallenged as the world’s top exporter of green olives. the United States tion

moving

Now,

in

with

the direc-

of expanded green olive produc-

pack imports outnumber bulk shipments 4 to 1. Compounding the problems of Spain's

could become

olive industry, U.S. olive growers, faced

of

with mounting surpluses and shrinking

the world, however, Spain will definitely

retail

domestic style

1

United States have been

more U.S. processors

are

percent

H

as

production to green olives.

totaled

third of total U.S. imports

the

72,000

market in the United States, from black olive surpluses

ported into the United States.

groves

additional

near

soils

pressures

percent on Spanish bottled olives im-

funds for improving existing farms, as well

Spanish

demand

for

the

California-

black olive, are actively consid-

same currently purchased from

tion.

and Greece expanding

its

To make up

green olives

seeking

Should California green olives inroads into the well-established

much

keener.

By

virtue

i

I!

I!

I!

I!

15

have the advantage. petition

make

olive

long-standing acceptance around

ering expanding their output of the

Spain.

its

acreage, competition on world markets

for the increased

com-

from other countries, Spain

new buyers

in its

I!

own domestic

I!

Europe, South America, and Middle East. Spain’s domestic

market, the

I!

is

Foreign Agriculture

1

Jt

States of Virginia

And Pennsylvania Win Export Awards Resourceful, aggressive overseas marketing efforts by the Pennsylvania and

Departments of Agriculture have earned the two State agencies the coveted Presidential “E” Awards, given Virginia

for outstanding performance moting U.S. exports.

pro-

in

Significant increases in livestock ex-

from Pennsylvania and Virginia were important factors in determining these winners of the awards, which are the first to be presented to any state department of agriculture. Pennsylvania exporters have built ports

facilities near Harrisburg for shipment of breeding cattle, while

efficient air

Virginia shippers have developed

place-packing olives by hand in Seville. This method on the decline, owing to rising labor costs. Above, closeup ot an automatic olive pitter machine. Left,

is

port

porters of — — and of processed foods. fresh fruit

Virginia’s

now inundated

market,

able olives, can absorb

some of

new

the

assuming current promotional

supplies, i

with nonexport-

efforts are effective.

With Spain

the to

(EC), very

anticipated

the

Spanish strong

European olives

accession

could

competitive

of

Community be

in

position,

exports to major markets of Western Europe would flow unimpeded by tariffs and other barriers.

Spain already has has

its

foot in the door

European countries,

long

shipped

small

as

Spain

quantities

of

Promotional

efforts

these

in

countries will have to be intensified, as

cattle

in

1964

with

the

first

shipload

of

majority of them prefer products

feeder cattle from the United States to

that

would help

Italy

intake of

As

for

its

to increase the protein

the

Middle

East

markets,

Spain has exported only small quantities

there,

primarily to Saudi Arabia,

Kuwait, and Iraq. Clearly, however, Spain must make an all-out effort

later,

market development in these areas, if to keep its number-one status in the

it is

Virginia exporters

CALENDAR

their first

stock to Portugal. Virginia’s

processed

foods



includ-

and turkey products, pork products, apples and apple products, and smoked eel were featured at several ing turkey

overseas trade fairs resulting

table olive market.

of

buyer

as

well

as

in

new and greater

a

representatives

from

abroad.

1965-74

Pennsylvania’s export promotion pro-

[Metric Tons]

Italy

made

major shipment (191 head) of breeding

Iran,

in

50 years. Other shipments of

in

feeder cattle followed, and several years

citizens.

SPAIN: TABLE OLIVE EXPORTS, BY DESTINATION,

France

FAS)

scored a major breakthrough

officials,

influx

Canada

working

exporters,

with State and Federal (including

expanded orders

Year

especially apples

the

a as

Spain’s

of East

green olives to Bulgaria, Romania, and Poland.

mod-

equipment for transport of breeding stock and feeder cattle by water as well as by air. The two States also are leading exern

United States

gram was begun in 1967 and has grown steadily since. The State Department of Other

Total

Agriculture cooperates with 185 Pennsylvania firms, brokers, and others en-

1,954

244

1,682

4,059

gaged

in

export trade, as well as with

1966

3,750

832

678

37,248

7,386

49,894

1967

3,342

1,019

1,623

30,152

5,427

41,563

FAS. Most of Pennsylvania’s

1968

4,678

458

842

41,725

5,155

52,858

ports are

1969

4,183

1,203

1,540

30,547

6,980

44,453

1970

3,181

4,915

4,951

38,054

16,120

67,221

1971

3,824

7,454

9,510

37,751

15,978

74,517

1972

4,289

4,665

6,236

42,043

15,604

72,837

1973

4,333

6,795

8,777

40,028

21,442

81,375

1974

4,779

8,347

10,164

35,874

20,732

79,896

livestock ex-

bred heifers shipped by

air

from Harrisburg International Airport to Europe and Latin America. Since 1967, the Department has participated directly in food trade shows in Japan, Europe, England, and the Caribbean. Pennsylvania food firms are represented worldwide trade shows.

at

October

4,

1976

Page

11

U

DEPARTMENT OF AGRICULTURE

S.

WASHINGTON D C 20250 POSTAGE AND FEES PAID U S DEPARTMENT OF AGRICULTURE AGR lOI

PENALTY FOR PRIVATE USE $300 OFFICIAL BUSINESS

First Class

Processed Food Exports

there are

studies,

There

ferences.

Continued from page 8

is

spondents (23 percent) mention “global” or “worldwide” markets as goals in

significant dif-

less interest in

and

Australia,

ada,

some

Can-

Caribbean,

the

market

foreign

discussing

expansion,

their product lines are of high quality,

partly reflecting a belief held

by some

possibly reflecting a reticence to disclose

are competitively priced, and meet con-

processors that these areas are already

their specific country plans as well as a

sumer demand. • Firms already established in foreign markets base their optimism on such

saturated from a U.S. export standpoint.

genuine interest

factors

new

as

new

products,

some

States

processors with and without

experience

United

the

believe

now more

is

competitive in for-

eign markets as to availabilities, prices,

and quality than

They

years.

in

worldwide market-

ing operations.

U.S.

FOOD PROCESSORS: MAJOR FOOD PRODUCT LINES

IN

OVERSEAS MARKETS

Product

Number

line

firms

many

has been for

it

also are generally optimistic

Meat and poultry Vegetables (frozen, canned, dehydrated) Baked goods (fresh and frozen) Fruits (frozen, canned, dehydrated)

42 35 18 17 14 13 10

Snacks (candy, pizza, peanuts, etc.) Condiments (jellies, sauces, gravies, etc.) Beverage items (fruitbases, coffee, tea) Fats and oils (inc. raw peanuts)

about the longer run supply-and-demand

Spices, seasonings

7

Soups, soup bases

5 4 4 4 4 4

general belief

that U.S. supply

is

more than matched by poworld demand. The acknowl-

capability tential

is

edged leadership of the United States in food technology also underpins this general optimism. This leadership flected

in

the

great

is

re-

of food

diversity

forms, types, package sizes, and prices of items exported by U.S.

product

Meat substitutes, (soy protein, etc.) Egg products (frozen and dehydrated) Dairy products Dairy substitutes Breakfast cereals Special products (yeasts, enzymes, etc.)

Cereal products Frozen dinner entrees, prepared, and ethnic foods 1

The much

Adds

U.S.

number of

smaller

to

more than sample number

of

trade

barriers,

Firms

U.S. armed services personnel overseas,

and the unstable world economic outlook.

Almost

all

of

the

128

processors responding and

U.S.

now

food

actively

engaged in export trade are interested in expanding sales to additional foreign markets, either ture.

Some

now

target

or in the near fucountries

or

areas

mentioned are Western Europe, the United Kingdom, Japan, Southeast Asia, and the Middle East. Although these geographic preferences are similar to those targeted for foreign

Page 12

market penetration

in

now

Country or area Current markets

more

Number Percent

numbers of

the declining

3 2

2 2

1

1

and 100 percent because multiple

Firms not now in foreign marketing

in

foreign marketing

competition from local and third-counsources,

3 3 3 3

FOOD PROCESSORS: CURRENT AND PROSPECTIVE FOREIGN MARKETS

foreign sales offer such reasons as high nontariff

10 8 6 4 3

firms

expecting no change or a decline in

duties,

firms

11

answers were possible.

food processors.

try

1

33 27 16 14 13

21

siutation.

The

Percent

international trade barriers.

• U.S.

export

of re-

stronger promotional

and hope for removal or easing

efforts,

of

number

foreign

brokers (who can be expected to gain

new customers),

a considerable

Also,

earlier

*U.S.

Europe and United Kingdom Southeast Asia and Japan

.

.

...

Canada Caribbean Australia and South Pacific South America Middle East

.

.

.

.

.

.

.

19 19 15

.

Africa

Total 1

Adds

.

.

5

.

1

.

to

interest

31

27

24

21

5 3 7 12 14

6 3 6 10 12 3 4

4

6 4

7

Mexico and Central America USSR and centrally planned economies Worldwide Other Not sure

New markets

interest

Number Percent Number Percent

54 42 19 19 15 15 12

69 54 24 24

.

New markets

5

1

19

33

5 5

9 9 7 5

4 3

— —3 —

— —5 — 2 33

2

2

1

27

23

19

16

13

3 5

2

2

2

4

15

13

20

35

117



‘58





.'128

more than sample number

of

firms

1

1

2

and 100 percent because multiple

answers were possible. GOVERNMENT PRINTING

OFFICE: 1976

211-407/64

1-3

Foreign Agriculture

1976
Agriculture Economic aspects Periodicals, Produce trade Periodicals
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