policies, or practices.
FOREIGN AGRICULTURE April 5,
Service U. S. DEPARTMENT OF AGRICULTURE
FOREIGN AGRICULTURE •
France’s Agriculture— 1975
Review and a Look Ahead
In this issue:
1975 in Review and a Look Ahead By Kenneth E. Ogren France’s Agriculture
World Food Prices
Philippine Sugar Output, ports To Rise in 1975-76
U.S. Agricultural Attach^
some bad weather
year and consequent setbacks in major crops like grains,
Thailand’s Future as Rice Exporter Questioned By Supat Wibulseth
ducer and exporter of farm prod-
strong recovery could be in the
French farmers’ ing
This week’s cover:
1975 showing and the French Govern-
Harvesting wheat in France the European Community’s leading grain producer. A look at French agriculture, including its 1975 performance and future prospects, begins this page.
ment’s determination to assist and protect
farmers wherever possible.
tary for International Affairs
shipped $412 million worth of
farm products to France, down considerably from the record $492 million sold in 1974 but still enough to make France a major U.S. farm market in Western Europe. And when one conthe
from other countries David L. Hume, Administrator, Foreign Agricultural Service
10 percent in U.S.
Kay Owsley Patterson, Editor
exceed $500 million. Soybeans and soybean meal are the key to this strong
Beverly J. Horsley, G. H. Baker, Marcellus P. Murphy, Isabel A.
showing, since they alone account for
about half the value of U.S. farm ex-
Advisory Board; Richard A. Smith,
ports to France.
Gordon O. Fraser, William Horbaly, James L. HutchC. Foltz,
Richard M. Kennedy, J. Don Looper, Larry B. Marton, Brice K. Meeker. inson,
The Secretary of Agriculture has determined that pubiication of this perlodicai is 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
Budget through June
1979. Yearly subscription rate; $34.35 domestic, $42.95 foreign: single copies 70 cents. 30.
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
(MTN) underway positions, different
from those taken by the United
prospects for 1976 and be'
The Year 1975
Last year was
a disappointing one French farmers. While there had been some poor crops in 1974, 1975 saw more widespread setbacks, as refleeted in lower “real” incomes and dedines in exports. Given the EC system of price guarantees, prices would have been practically at the same levels had the harvests been bountiful. The total impact of reduced harvests on farmers’ returns is thus greater in France than in a country like the United States where farm-product prices are more directly related to supply and demand. for
lowed exceptionally mild winter weather (when temperature hit up to 70°F
In addition to
roles as rival
another important position
that of agricultural policy leader in the
wiping out certain
Winter because of
grains got off to a bad start
wet planting conditions in the fall and early winter of 1974/75. Later, summer drought had an even more serious impact on practically all
on pastures. Generally dry weather
fall, so harvest conwere much improved over the previous year’s but the damage had
continued into the
already been done.
In 1975, widespread spring frosts fol-
corn, sugarbeets, and potatoes
exporter and major U.S. market, France
France has expanded its own shipments to the point where it now ranks second only to the Unite'd States as an agricultural exporter. Last year, these exports were worth approximately $8 billion, compared with the $21.9 billion shipped by the United States. And this trade comes from a country that has only a fourth the U.S. population and a tenth the the other hand,
yond, and policy roles, follows.
importer of U.S. farm products and a tough U.S. competitor in the agricultural export market.
the Multilateral Trade Negotiations
tinue to hold forth as both a leading
sive input into the
time, France will con-
Last year, for instance, the United
France contributed to the past decade’s EC farm production and trade. And now it is having extenrapid expansion in
This adverse weather led to setbacks French grains mainly wheat, barley,
and com, which together rank as the Foreign Agriculture
left, harvesting grain on a French farm; left, tomatoes for sale in a local market; and below, a typical
vineyard near a small
and other crops
1975, but farmers, aided by protective EC and
French Government farm policies, are pressing for expanded output in 1976.
country’s leading crop and agricultural !
Total grain production
country’s chronic oversupply of wine, especially of lower quality wines.
24-25 million tons, in contrast to some
wide U.S. consumption swings caused by fluctuating use of grain as animal feed. Thus, a decline in French grain
out to be only around 2.9 million tons
economic conditions of many small wine producers in 1975 were among the worst of any agricultural sector, and prospects for early improvement are not bright. Overall, French livestock production was relatively stable in 1975. Pork pro-
instead of the projected 3.6 million.
metric tons from 41.4 million in 1974.
French consumption of grains (food, feed, and industrial use) has been relatively stable in recent years,
production means a in
export potential, which in 1975, for
instance, fell about
40 percent. major French
wheat is the 1975 crop of
more than a third of total wheat also was the biggest
the grains last year as de-
tons totaling I
together reduced output 18 percent be-
low the record 1973/74
sion of recent years, with plantings
by percent. However, adverse 10 weather conditions cut beet yields to the lowest level since
1964 and sugar
content to the lowest since 1947. Con-
Production of France’s major oilseed crop,
1975 from the previous year’s owing
reduced plantings and lower
Because of the killing spring frosts, peach production last year was only one-fifth of a normal crop. Nectarines and apricots also suffered heavy losses. The prune crop was almost wiped out
long-term upward trend,
though French pork imports are still sizable about 15 percent of domestic production. Beef production declined about 1 percent last year, but still
stayed at an historically high level fol-
lowing an unprecedented increase of 26 percent in 1974. France of beef, ranking
by frosts with a production of only 550 tons, compared with a record 22,000 tons in 1974. And walnut pro-
in broiler and turkey production were reversed in 1975, although egg production continued to
France’s second most im-
portant grain, followed closely by corn,
whose acreage and yields had been in a sharp upward trend until the early 1970’s. Recent years, however, have seen some setbacks in the corn output, and 1975 was the third bad year out of four as production dropped to 8.1 million tons well below the 1973 high
of 10.6 million.
Producers of beet sugar April 5,
In contrast to a gradual increase of
crop the previous year.
general rule, with a record crop of over
was actually too large for available commercial outlets. Wine production was down sharply in 1975, dropping 15 to 20 percent
below the high levels of the 2 previous years. This lower outturn may help, at least
the short run, to control the
around 2 percent in recent years, milk production was unchanged probably because of the below-normal pasture condition resulting from drought. Following a 15 percent drop in per farm “real” income (adjusted for inflation) in 1974, French farm leaders pushed hard throughout 1975 for Government financial aids that would boost
incomes enough in 1975 to 1974 losses.
at least par-
The Government responded with dipayments to farmers of more than
granted as a special aid to farmers’ incomes). Yet farmers ended up with no
mated 8 percent declined about
in current francs, but
percent after sub-
number of farmers
1975, although at a less explosive rate than between 1973 and 1974. In 1974, the price index of farm production in-
put items rose by 24 percent, whereas by 1975 the rate of gain had slowed to an estimated 8 percent. These high inflation rates caused the overall “cash” position of
French farmers to deteriorate sharply between 1973 and 1975 (following favorable results in 1973). During this time, the total production
percent in value as a result of sharp in imports of soybeans and
of almost 4
francs was not sufficient to keep
income from production
francs from declining between 1973 and
1975. (The consumer price index rose
1974 and 10 percent
15 percent in
and sugarbeet farm France ar< best organized structurally and hav<' benefited most' from EC agricultura policies. Grain farms in northern Franct
Forecasting the future
and especially so
French farm trade bring an end to the previously strong growth in France’s agricultural trade balance.
That expansion, which began after implementation of the EC’s CAP, moved French exports of agricultural products from F9 billion in 1967 to a record billion in
15 years or more.
Between 1965 and 1974, the value of French production represented b)
1976 return to nor-
crops increased from 41 to 45 percent,
with grains’ share of total value rising from 13 to 17 percent. Wine accounts
reach, or exceed, the peak 43 million tons produced in 1973, the best year in
for about 10 percent of total value of
French agricultural history. So far, weather has favored the crop with excellent planting and growing conditions
for winter grains.
pansion here seems unlikely.
French farmers are
or credit. On the other hand, inflation can be expected to boost unit costs of inputs and further pressure farmers to
slightly at the
French agricultural production and exports,
reverses of the
In the future,
agricultural expansion, since
running up against limitations surface for crop production.
Beef and dairy production combined already
the largest agricultural
sector in France. In
1975, production of beef, veal, and milk accounted for
the total value
comes mainly from
There are large regional and product differences in average farm incomes. The net income per farm family worker (full-time equivalent) in contrasts.
represent half of
realized automatically or without
Milk and milk
products, although declining
to livestock production for
2 years. But this potential will not be
and Govon plantings ex-
a third of the total value of France’s
end of 1975).
In the longer run, there
agricultural production, but because of
production efforts in 1976, and there appear to be no great problems in obtaining production inputs
France’s beef production
its dairy herds since about three-fourths of France’s 12 mil-
as dairy cows.
In contrast, the U.S. ratio in
almost 4 to
favor of beef cows.
The market outlook
for French dairy
products does not appear overly bright. ippf:
FRANCE’S TOTAL FARM INCOME, 1972-75' [In billion
1974. Imports also rose
a result, the trade bal-
from 1967 to
was cut in half, to F4.7 billion. Exports dropped about 9 percent in value to F35.5 billion primarily because of a
in grain exports,
37.2 18.0 54.9
Taxes and other expenses Net income from production
30.6 15.7 45.7
48.9 22.0 53.4
Net cash resources (income)
Production input costs
1975, however, as the trade surplus
32 percent drop
imports rose by 7 percent. Despite the overall increase
surplus of F9.4 billion in 1974.
Sales value of agricultural production .... Subsidies (from French Government)
period, but at a markedly
and highly mechanhave increased significant!)
in the last
Should weather mal,
are generally large ized. Yields
mountainou and thi
ers in the northern plains of
1976 And Beyond
Last year also saw some reversals in
In general, grain
but the major factor was Brazil’s expanded share of the market.
of these products were
added, even the increase in
Government payments net
and other ex-
billion francs in taxes
(11.7 billion francs) than
value of production
1974 varied from a high of aroum F97,000 in the Paris Basin to a lov
traction of changes in farmers’ purchas-
improvement in their incomes: income increased an esti-
the United States
Values may not add because of rounding. ^ NOTE: The relationship between dollars and ‘
francs during 1972-75 has varied from at certain periods in
one dollar equaling 5 francs or more in 1972 to less than 4 francs 1973 and 1975. In mid-February 1976, US$1 equaled 4.5 francs. Source: French National Accounts.
30 pe incoi
Foreign Agriculture April
and nonfat dry milk European Community and
;specially of butter
)ther dairy producers, ini
The longer term outlook
only for increasing beef consump-
France, but also for expanding
French agriculture is oriented If toward expansion of beef and other livestock products, and if the French
European neighbors. France m pports to pppears better positioned than any
regains its strong growth performance of 1969-74, prespects will be good for a resumption of growth in
farm-product exports to France. The major potential sources of expanU.S.
West European country
idvantage of an expanded market for considering
produce calves and the considerable
land surface suitable and available for forage
and feed production. At present,
France exports a sizable share of ialves to Italy
and other countries that
are also net importers of feedstuffs.
Greater emphasis on beef production
would require major structural changes. At present, the size of most cattle herds, .although increasing,
simply too small
fan average of 12 cows)
incomes to cattle producers. France’s milk production per cow is substantially below that of EC coun-
nd the United Kingdom. Thus, to put Its cattle industry on a sounder economic must reduce the total basis, France number of dairy cows in favor of
cow, and markedly increase the average
adjustments in the cattle
jndustry can also to
part-time farming, but such a change
would hinge on increased income opfrom off-farm employment, that, in turn, would depend on economic growth and regional development in the nonfarm sectors. Other areas of livestock production appear to offer potential for expansion.
producer of pork, and lamb. France
remains as is
toward larger scale production in pork and poultry but has lagged behind several of its West European neighbors. Continued expansion in French production of corn for grain
results of recent years. Climatic condi-
leaders as being in direct opposition to
At present, France imports 85 percent of its protein meals, and around 70 percent of its imported protein comes from soybeans and soybean meal.
dependence, the Gov-
where moisture content often reaches 30 percent or more. Flowever, acreage in corn for silage could be ( and already has been expanded for production of beef in feedlots.
supporters of the
on agriculture in the MTN negotiations in Geneva. The major features of French agritions thus far taken
cultural policy are:
• Strong support of the
ernment has encouraged production of soybeans in southwest France (See
system of support prices and market
17, 1975, issue of
results thus far
lagged behind schedule, and prospects
• National policies to encourage through use of various grants and sub-
appear dim for a sizable production in
the foreseeable future.
of beef and certain other products.
United States cotton
nent place in the French market in the 1960’s and in
1975 had only a 7
percent share, compared with 40 percent held by the
USSR. With an supplies
to achieve a positive
growing trade balance offset escalating costs
in agriculture to
of petroleum, vir-
of which must be imported.
There are no signs of marked changes these policies. The French have
competitive world prices, the U.S. share
of the French cotton market could re-
farm income supplements. But both French officials and farm leaders call these grants emergency actions, rather than a basic change from reliance on price supports as the major device for im-
wide range of other products make
up U.S. exports
among which most important.
variety meats are the
These promise to continue large because of French preferences for these products and the low prices of imported variety meats vis-a-vis costly domestic red meats. Also, although an important exporter of soft wheats, France also imports high-quality hard and Durum wheat from the United States. If the French move to higher yielding but lower quality wheats for milling purposes, U.S. exports to France could expand. U.S. rice,
2 years to give direct
France, in general, puts stress
stability of agricultural prices
than the United States and
too great a dependence on the operations of
in setting prices.
Chicago grains market on world prices is viewed with particular alarm. The French feel that influence
marand subject supervision and control by interna-
international, as well as internal,
kets should be “organized”
— products, walnuts, prunes, and tobacco— and
in large part
tional agreements. Special social prob-
rationale for extensive ticipation in
rallying point for this policy view-
came in mid-1973 following the United States brief imposition of export controls on soybeans and soybean meal. point
tions are often risky for maturation of
the crop, especially in northern France,
their export interests. Accordingly, the
able in view of the disappointing crop
sion are soybeans
the growth in its exports since 1967 has come largely in these EC markets. Thus, U.S. efforts to maintain and improve access to the European Community the top regional market for U.S. farm products are seen by the French Government and farm
and soybean meal to major agricultural protein meal for animal feeds.
percent of France’s agricultural exports.
future direction of French agri-
culture and trade
— including imports of
and competition with U.S. farm prodhinges to a great extent on the ucts farm policies of the EC. Other EC members take around 65
of agricultural policies since mid-1973, there have been references to the U.S.
“embargo” and thus the unacceptability of depending so heavily on the United States
product. Continued on page 12
restrictions that limit price increases
Worldwide, U.S. Food-Price Rise Was Smaller Than Most/
5 percent for 6 months.
of the items in the
but they are far reaching in that the
apply also to nonfood consumer item
ood price indexes
F were higher
for 13 countries
January than in De-
cember. Only Canada experienced a decrease (0.2 percent). The January in-
added tax from 5 percent to 15 percent. Price increases in Buenos Aires were not far behind those in Copenhagen,
dex for Argentina was not available.
and are expected to affect the country’ consumer price index to a significan
of an increase in the Danish value-
recorded for 13 of the
Sweden on February 27 extended it freeze to include canned mea and vegetables, frozen foods, jam, mar malade, fruit syrup, mustard, and baby
foods surveyed in the Argentine capital.
However, prices of two items remained steady, and apple prices de-
countries where food prices have been
clined because of plentiful supplies.
increase in the U.S. index
a yearly basis, food prices in nine
while single-digit inflation
Prior to February 27, Sweden’s prici
Despite the seasonal factors influenc-
ing prices of
some food items
Copenhagen’s food prices jumped by 5-29 percent on items included in the FAS shopping basket, mainly as a re-
Sweden United Kingdom
United States ....
December January January January January January January January January January January January January January January
-f 3.0 1.8
154.6 330.7 168.7 168.0 167.5 133.3 182.5 188.3 195.0 145.5 159.7 229.2 157.4
6.7 11.7 5.4
+ + -f + +
tariff on potatoes, and in Sweden the Government has authorized a higher
ceiling price for potatoes.
+ + + +
3.16 2.63 1.34
2.35 1.06 1.98
2.13 1.52 1.30
4.56 2.80 1.45 2.00 2.98 2.85
3.37 14.80 1.86 2.85
Or other indicated
5.45 1.26 1.71 ^
2.66 2.48 2.15 1.88 1.66 2.14
2.30 2.19 3.04 2.16 2.03
3.00 3.13 3.56 1.90 2.32
estimated to be 8 million of
Cheese; Edam, Gouda, or Cheddar
meat prices have
fairly stable since the previous
SELECTED WORLD CAPITALS, MARCH
converted at current exchange rates]
Council has suspended the 18 percent
tons less than in 1974.
The Hague Tokyo
U.S. dollars per
Potato production during 1975 in those
included in the
Canned ham has been
+ + + +
Mexico City Ottawa
Reflecting this trend, mar-
SURVEY OF RETAIL FOOD PRICES
Source; U.S. Agricultural Attaches.
November. Many con-
SELECTED COUNTRIES Prev.
that country have increased 15 tc 50 percent during the past 2 years, In the European Community (EC) and in some other countries, prices ol milk and dairy products have increased
in that capital are a reflec-
Percent change (rom
the items added to the control progran
rampant inflation. In London, prices have stabilized in recent weeks as a result of Government
FOOD PRiCE iNDEX CHANGES
and cheese. Prices
the dramatic increases in most
mostly to such basic foods as beef, porL
1.25 1.62 1.53 1.82 1.28 1.40 1.66 1.22
1.42 1.37 1.05
3.62 1.67 1.64 1.40
1.10 .69 .16 .60
1.62 1.38 1.35 2.04
1.32 .64 1.03
Source: U.S. Agricultural Attaches. Foreign Agriculture
Beef prices are not expected
show much change at the retail level over the next few months because of to
large supplies that have resulted from a reduced level of exports, Brasilia and Ottawa reported declines in beef prices, reflecting abundant supplies accumulated during the slaughter the
increase in Australian bread
8 cents over the past year.
as of the first
prices are reported
by U.S. 14 com-
Wednesday of every
month. Prices are converted on the basis of actual exchange values on the date of the survey, and these conversions affect comparisons between time periods. other
objective of this report
obtain representative prices in other
TEADILY mounting demand for protein feeds by Spain’s broiler and hog industries pushed the country’s imports of oilseeds mostly soybeans from the United States to a record height in 1974/75. The import level is expected to be even higher in 1975/76, despite steadily
an exact comparison
because the quality and availability
among made to
of specific items vary greatly countries.
but these are of
domestic oilseed output.
indexes are reported
soybean imports, projected tons,
compared with 1,730,000 tons
are projected at 183,000 tons, of
tons are soybean oil
—55 percent above
the export level of the previous market-
However, these projections
be somewhat optimistic, particuincreased
domestic rise to
the limited crushing capacity to produce
greater volume of meal. 1,730,000
imports of oilseeds
1,747,800 tons, exceeding the 1,437,700
tons imported in
1974/75 totaled a record
1973/74 by 21 perSoybean imports in 1974/75 were
tons, a gain of 22 percent from the 1,417,000 tons of 1973/74. The United States supplied over 60
1974/75. Imports of edible thirds
was 41 percent larger than in 1974/75. Cottonseed, soybean, and saffiowerseed areas declined. Peanut acreage was 8 percent larger than in the previous year.
larly for olive oil.
from the 1,417,000 tons of 1973/74.”
were 1,730,000 tons, a gain of 22 percent
tons are olive oil and 70,000
5.43 1.38 1.22
Spain’s soybean imports in 1974175
exports in 1975/76
with 116,200 tons in 1974/75.
by the broiler and hog
than in 1974/75.
3 percent larger
1975/76 oilseed acreage
estimated at a record 752,300 hectares,
the current marketing season are pro-
jected 100,000at only 40,000 tons
output, imports in
a result of the sharp increase in
approximately equal shares of
soybean meal from the United States
which 230,000 tons will be soybean meal 24 percent above the 1974/ 75 level. This projection is based on an assumed increased demand, particularly
the preceding season. 15,000
Over 80 percent of these imports con-
imports will be mainly from
season are expected to
by a sharp increase
the outturn to 476,900 metric tons, only
1973/74. The reduction was caused
are expected to rise by 22,700 tons to
imports of seed meals in the 1975/76
23 percent larger than in 1974/75, but drought and heat probably have held
those in the reporting countries.
chased by U.S. consumers. However
Imports of vegetable protein meals in
1974/75 were 222,500 tons
the total prices
season’s total of only 33,200 tons. Romania and the USSR
cent below the 400,500 tons imported
than in the previous survey, bringing
an increase of 83,000 tons from
were the principal suppliers of sunflower oil in 1974/75. The United States was the leading supplier of soybean oil.
higher by 2 Australian cents per loaf .
a result of the increase in olive
edible oil output (olive, sulfur, cottonseed, soybean,
peanut, sunflower, all
increase in the current marketing season
greater than in 1974/75.
Spain’s production of vegetable protein
meals (cottonseed, soybean, peanut,
sunflower, and other vegetable seeds) in
projected to reach 1,571,300
an increase of about 1 percent from the 1,556,000 tons produced in 1974/75. Soybean meal output probably tons,
about 1,394,300 tons as the quantity
— Based on report from
Office of U.S. Agricultural Attache,
production, plus that in storage, would
Exports To Rise
Attache Samson noted.
During peak production of the 1974/ 1F( 75 crop, total stocks exceeded the 1.2-
enthusiasm for the crop,
output was 60,000 metric tons from 20,000 hectares, about the same as the
previous year’s. Production in 1975/76
some of 1975/76
remain about the same
put and exports of centrifugal sugar are
expected to reach, or be near, record
as the previous years.
Glenn R. Samson, U.S. AgriculAttache, reports from Manila.
Centrifugal sugar production in the
1975/76 sugar year ust),
expected to reach 2.75 million
(commercial weight), up from the 1973/74 record of 2.69 million tons. Sugar production in 1974/75 was 2.63 million tons, 2 per-
compared with 56.8 tons in 1973/ The sugar yield averaged 215 pounds per metric ton of cane in 1974/75 versus 208 pounds in 1973/74, 75,
Reduced fertilizer applications resulting from high prices, are probably lower cane yields. major cane areas was fairly uniform throughout most of the year and probably contributed to the reasonably good sugar yield rate recorded in 1974/75. The outlook in 1975/76 is for a small increase in sugar production on a larger hectarage. Output is expected responsible for the in the
(commercial weight), and planted area is estimated at 525,000 hectares. Loss of producer fervor probably resulted from continued high domestic fertilizer prices and a drop in world sugar price. Also influencing production was a 1974/75 cut by the Philippine Government in the composite farm price from 14.6 U.S. cents per pound to 10.5 cents.
There are no official data on the 1974/75 production of nonconcentrifugal sugar but the Attache estimates
public of China, 11,760.
year are forecast
1975, Philippine sugar exports
161,500 tons, with two-
1974/75 but instead the Philippines allowed stocks to grow from 559,000 tons on September 1, 1974, to a record of 785,000 tons a year later. The. Government appears to be unwilling to ex-
more sugar than
Stocks on August 31, 1976, are expected
tons (commercial weight), but could be larger.
As of January
had reached about 1.3 million tons but may be reduced by later exports. When world prices reached high levels in
1974, the Philippines stopped
would began the
hoping export prices more. Even as they
in the latter part
of 1974, policy of that
downtrend would soon be reversed. Exports were increased only after the Government realized that it had to move sugar into export or the 1974/75
but the Government’s
decision to export
availability of storage space for
January 1976, deteri-
oration of 1974/75 crop raw sugar had
become a major problem. The Philippines National Bank (PNB) reportedly
has about 450,000 tons of old sugar
growing areas of Panay, Negreos, and
estimates that 400,000
current condition. Substantial dis-
coloration and a reduction in the sugar’s
and be reprocessed for export and/
or domestic use.
from reprocessing this sugar amount to about 15,000 tons.
thirds going to Japan.
drawn stocks down
and even on public roads and parking lots. Exports have
polarity will require
previous record of 1.725 million tons
public auditoriums, gymnasiums, pelota
tons of this old sugar
Larger exports had been anticipated
the Attache said.
were also down sharply in 1974/75 even though the purity rate was up, Attache Samson declared.
47.7 metric tons per hectare in 1974/
890,000 than the
Morocco, 16,352; and the People’s Re-
metric tons, compared with 26 million tons in 1973/74.
80,463; Iran, 44,665; Finland, 34,171;
Sugar Institute, cording to Samson.
acres), but there
belief this figure, released
by the Philip-
1974/75 is offi516,000 hectares (1
1974/75 totaled 1,488,981 short tons (commercial weight). Shipments by destination, in short tons, were: Japan, 692,054; the United States, 569,516; the United Kingdom,
cent less than the previous year’s out-
raw sugar and
Molasses production during 1974/75
1975, mills were forced to bag
overwhelm the country’s storage capac-
and new crop sugar
exported or additional
— now month — seems pines
about 80,000 tons
on an uptrend,
spurred by a rising population, larger
sugar stocks, and favorable, controlled
domestic prices. Practically
native noncentrifugal sugar produced
Sugar withdrawn from stocks and presumed to be consumed during 1974/ 75 amounted to 964,434 short tons. This compares with 903,470 tons in 1973/74 and 872,705 tons in 1972/73.
250,000 metric tons,
or 8 percent less than in the previous year.
distilleries in the
facture of alcohol
consumed during 1973/74 at
estimated at 120,-
U k pli
Other domestic uses, including animal feed formulation, is estimated to be 130,000 tons. tons.
Hopes jFor Rebound In Wheat ^Brazil
wheat harvests in recent history, will be making an all-out produc-
tion effort this year
good weather could boost output
million metric tons, or roughly
1975 crop. Meanwhile, the country is compensat1 ing for the 1975 shortfall with wheat three times the reduced
imports this year (Oct.-Sept.)
million tons or more, the largest share
coming from the United States. To bring the hoped for production recovery, the Brazilian Government has of this
of seed (including 14,000 tons import-
ed from Mexico and the United States) This amount
100,000 tons more than last year’s reserve and enough to plant about 4.1 million hectares (1
I above ^
could yield a crop of 5 million tons, or close to the
sought by Brazil. '
area of around 3.3 million hectares and a harvest of
Rio Grande do Sul and Parana States will account for the bulk of production, with their crops estimated at 2 million
and 1.5 million tons, respectively,
technological factor that could
and help avoid disasters harvest
the increased use of agricul-
The high humidity
Rio Grande do Sul and Parana promotes growth of rust and other diseases with resulting lower yields and quality. in
1975 wheat crop, harvested October-December, has been ten-
1.48 million tons
chaser of the crop.
tributed to fungus and insect attacks.
has greatly boosted
of wheat this year.
However, indications are
• Slippage of U.S. Cotton
with 2.0 million purchased in 1975.
lion tons in fiscal 1976,
arOund 2.8 mil-
While use of fungicides in Brazil is apparently economic, the high costs of the chemicals and equipment still
November (FC The
December Trade in U.S. LiveMeat Exceeded Year-Earlier
• Brazilian Export Incentive Pro-
part of a long-term government-
usual, the United States will be
rently expected to ship
• World Cotton Output Hit by Weather; Mill Consumption Outlook Improves (FC 3-76)
imports will be closer to
4 million tons
World Cotton Trade Declined
To 6-Year Low
import agency, has said that these purchases may reach 3.8 is
chase another 300,000 tons of Canadian
from the Foreign Agriculture Service, USDA, Washington, D.C. 20250,
wheat during 1976.
Rm. 5918-S;Tel. 447-7937.
agreement, Brazil has the option to pur-
Also, Brazil has just bought 40,000 tons of wheat from France,
purchase since 1968.
Grain committed to ship 490,000 tons during Deeember 1975-March 1976. This wheat was purchased by Brazil on tender. Argentina is believed unlikely, however, to offer much, if any, more wheat for 1976 delivery. To guard against steep price increases later in the year, the Wheat Board is Finally, the Argentine National
reportedly importing heavily during the first
the domestic front, the country
expects a 9.6 percent increase in food
big gain reflects,
things, the large
consumer subsidy on
Assistant U.S. Agncultura)~~Attache, Brasilia
Iranian rice produc-
and trade which are
1975, issue of Foreign Agriculture.
those published in the
“According to information received from the Ministry of Agriculture and Natural Resources, the correct produc(for
850,000 tons and
1974 and 1975) are 1,050,000 tons, re-
bread and other wheat products to decline
The Embassy of Iran has provided official figures for
half of 1976.
Rice Production and Trade Data Provided by Iran
wheat, which has caused the price of
The Wheat Board,
from the current average of 1,200 kilograms per hectare to 1,600. go
Reached Record Levels in 1974/75 (FDP 1-76) • World Oilseeds and Meals Output Forecast at 70.4 Million Tons
during August-October. The latter conIn
Dry Bean and
severe frosts in July and excessive rains
only about 40 percent of forecasts
and according to some sources, boost
plants protected by fungicides can util-
by the Bank of Brazil
This climate-related problem can be alleviated with the use of fungicides, yields
Canned Fruit Prices in the Netherlands, West Germany, and the United Kingdom (FCAN 1-76) • World Coffee Production Estimate Unchanged at 72.5 Million
supply 500,000 tons in April-July to
With good weather, such an area
of fungicides on wheat.
one of the
for planting during April-June.
New FAS • World
TRIGO), has begun a campaign to have the Government subsidize the use
Trade Expected To Increase
N THE aftermath of one of
problem, the Federation of Wheat and Soybean Cooperatives (FECO-
Iranian trade statistics
put total rice imports from the United States for the at
9 months of (1974)
“The Ministry estimates
of rice in 1975 will total only 400,000
Taking into account the stock from previous years, Iran’s net imports of rice (in 1975) will be between 150,000 and 200,000 tons.”
Thailand’s Future as
Rice Exporter Questioned By SUPAT WIBULSETH Office of the U.S. Agricultural Attache
Bangkok espite a strong
on international markes, such prob-
increasing competition in world markets from other exporters, and to tries,
food prices that tended to boost con-
1974 and 1975. But with an estimated carryover of 500,000 tons of milled rice from the 1974/75 crop, plus 1.5 million tons from the record 1975/ 76 production, Thailand will have to of
nearly 2-million-ton surplus
sumption of rice alternatives, caused Thailand to end the 1975 marketing
year with a sizable rice carryover that
and, under normal market conditions,
would have a dampening effect on proBut the Thai Government’s goal is to pay a high guarantee price to farmers and this will probably induce them to plant a larger rice area in 1976. Thus production will probably rise again. If local consumption remains unchanged, production growth in the im-
reduce Thailand’s importance as
a rice exporter by
The general dilemma may some forms of
solution to this long-term a
domestic rice prices in 1976
But even more important to the Thai economy, however, are the factors that
large size of this stock will tend
domestic consumption rather than
creased production, although higher out-
put could also play
exports or else Thailand will see
Thailand’s rice ex-
ports could be catastrophic since rice is
and in some years has provided as muclT as 25 percent of total trade
export earnings. also
depend strongly on the rice trade Royal Thai Government levies a
number of taxes against rice exports. The unrest following World War and the subsequent
conflict in the
East helped Thailand to strengthen standing
recent end of the conflict in Southeast
probably permit reemergence
of Vietnam and
as rice ex-
and stiffen the competition Thailand must face in the future. Most of Thailand’s rice exports go to its Far East neighbors. In 1975, Hong Kong took 122,250 tons ^ of milled Thai rice; Sri Lanka, 101,500;
Africa, about 70,000.
1976, Thai to
tons are metric.
and Thaimeet its
find itself unable to
milled rice export target of about
both domestic and export needs over the
Thailand has regularly
creased the area under rice cultivation.
consequence, the size of the rice
crop has been on a general uptrend for the past
15 years, rising at a
over 14 million tons (rough)
but meeting the 1990 export target by am
less fixed rate.
continuing to boost production
be possible because of a shortage of 1
crop of 14.5 million tons in 1974
and production is expected to reach a new peak in excess of 15 million tons in
the past 3 years
has been over 14 million tons of rough
duction, relatively limited use of inputs,
and a lack of technical know-how by farmers whose yields are low. Should Thailand be willing to pay the price required to remain a major rice
lowing the monsoon failure in 1972
exporting country after the next 10-15 *c
exports are ex1.3
(milled), 30 percent greater than those ^
lion tons a year
and countries of
will cut into these surpluses
Singapore, 102,800; India, 142,260; the
population growth and other pressures
the most important item in Thailand’s
have to cut domestic per
year combined with sufficient fertilizer
capita rice consumption. At present this
stocks during the planting season and
increased area will
an inflated figure that also includes rice
contribute to a
pound per day per person, the
for animal feed.
over after meeting this
But the Government’s need is also a powerelement in setting export goals.
for foreign exchange ful
Crop Peaks, Oilseed
both glutinous and nonglutinous types.
Production of the former accounts for of annual production, the
mid-season problems to harvest a record
latter for the balance.
nursery-grown rice seedlings
a flooded Typical Thai market stall, below, with baskets in
38 percent of the country’s
from the long-term
average. So that rice farmers can bene-
from the monsoon rains most of which run off in short order irrigation and flood control projects are further
being built in the Central Plains.
than 10 percent of Thailand’s rice area is irrigated on a steady basis.
programs that are more
responsive to the needs of the farmers
and geared are
programs Thai pro-
ducers to react to the changing tech-
animal feed to corn or grain sorghum,
which are grown commercially. the consumption habits of humans and animals would take considerable time to achieve. But it would
land use and increased per-
enable Thailand to continue as a leading rice exporter
since Thailand’s arable land
at least for the next
More than 80 percent
consumed domestically. The Government has the general policy of satisfying domestic consumer needs first, particularly in the Bangkok output of rice
programs to increase rice production and yields should be started immediately.
Capital investments are also neeled
and chemical plants, and better grades of
and more irrigation.
20 percent to 309,000
times threatened to reduce
some 40,000 hectares
unusually dry summer.
the other hand, insect control
reportedly better than in previous years. Infestations by the seedpod beetle, ^or instance,
to about 6 percent
6.5 percent in 1974.
of the 1976 crop were 340,000 hectares a level that no doubt was met. Sowings of this crop began 2 weeks earlier than for 1975’s, a headstart that is supposedly beneficial to rapeseed. These began during the first week of August and were largely completed by month’s end. Poland’s demand for imported oilseeds and cake and meal, which has been strong in the past few years, is the result of improved and expanded livestock feeding. Need for such imports remains, as witnessed by a Polish offiPlantings
statement in a trade publication the
country would be having a “.
continued interest in
soy and pea-
nut meal, linseed cake, soybean, technical tallow,
a major sup-
plier of oilseed products, shipping soy-
beans and soybean meal, plus
imported by Poland. However, U.S. soybean sales have dipped from the peak levels of 1973, when a record 148,000 tons of soybeans and 312,000 of soybean meal the
to develop fertilizer
However, agricultural development programs require long-term planning and a considerable time to effect, and
to increased rice production
— including farmer — necessary
year was a 13 percent gain in yield on harvested area that re-
Imports of oilseeds and products have increased in recent years.
Rice is grown throughout Thailand on 70 percent of the cultivated area with more than 20 million acres planted in 1975. The largest producing area is in the Central Plain, which accounts for
and oilcake and meal through
quate precipitation, rice production per
tion to maintain adequate supplies of
increased domestic production and im-
countries, Thailand’s rice crop depends
use could probably be reduced
is also consumed domesby the majority of the populace. grown in a region extending from
considerably by shifting from rice for
export rice but
47 percent of the country’s total area under rice. The next most important zone is the northeast region, accounting
the Central Plains.
metric tons for a 35 percent gain from for 1976, indicating Poland’s determina-
upper regions of northeast Thailand. Nonglutinous rice is Thailand’s major
the lower half of the northeast region to
hinges on changes being
domestically, mainly in the north and
other goods Thailand's future as a rice exporter
were exported to Poland.
DEPARTMENT OF AGRICULTURE
WASHINGTON. D C 20250 POSTAGE AND FEES PAID US DEPARTMENT OF AGRICULTURE AGR tOI
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Saudi Arabia’s Wheat Output Up Saudi
of high-yield varieties have boosted the
The 1975 wheat tons,
than $40 per ton. Government subsidy payments include 50 percent of the
45 percent of
retail price for fertilizer,
the cost of machines to distribute fer-
193,000 double that of 1974 compared with 90,000 tons.
tons of wheat per hectare from high-
1975, the heaviest rainfall
60 years helped supplement water for wheat fields in the Asir near areas highlands and irrigated Riyadh and Burayda. Area planted to high-yield varieties of wheat increased from about 2,000 hectares in 1974 to about 10,000 hec-
and several other
Saudi farmers harvest more than 6
harvested was about 50,000 hectares. Plantings
1975/76 for harvest during April-June 1976 probably exceed 12,000 hectares. Total area planted in wheat remained about the same this season. Government subsidies equal to about 7 U.S. cents per kilogram (about $70 per ton) encourage most farmers to sell their wheat in the market rather wheat
south Asia. They use izer
than triple aver-
more than $5.50 per
140.000 tons in 1974, with arrivals from Australia rising from 27,300 tons to 119,000 tons. Australian shipments of wheat to Saudi Arabia fell to 54,000 tons in 1975, but exports of U.S. wheat re-
tons of wheat were expected in the
by the Ministry of Agriculture and Water on subsidy payments in each amarite (county) indicate that dramatic gains in wheat procollected
duction have occurred
Saudi Arabia in 1976
likely to reach
850.000 tons (wheat equivalent), more
than double the level recorded 5 years
Saudi Arabia’s imports of wheat flour have continued upward, despite the
strong rise in domestic wheat output.
and wheat valued
Imports of wheat flour increased from tons in 1973 to about 400,000
million annually, Saudi Arabia imports
tons in 1975.
In addition to imports of
and Brazil’s kets, is termed emergence as a leading soybean producer has been welcomed as an opportunity to diversify sources of supply. Reessential,
attitude, Brazilian coopera-
more than $125 worth
Security of supplies, as well as mar-
quarter of 1976.
than keep supplies for household use. Statistics
Additional shipments of about 30,000
new oilseed now under construc-
tives are stockholders in a
processing plant tion in
France and will have first prefersupplying soybeans to this plant.
not necessarily be
the sole supplier.
Foreign Agriculture 4U.S,