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. /- QLFO OREIGN AGRICULTURE...

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

/-

QLFO

OREIGN AGRICULTURE May

12,

1975

WWi

cropland,

Italy.

Italy Is

Big Market

for U.S.

Farm Products

Foreign Agricultural U.S. DEPARTMENT OF AGRICULTURE

FOREIGN AGRICULTURE • No. 19 •

Vol. XIII

May

1975

12,

Farm Marke Despite Growing Economic Woesi Remains Big

Italy

U.S.

|ji i

F

(i

|l

II

In this issue:

2

Remains Big

Italy

Farm

U.S.

Market Despite Growing Eco-

nomic Woes By Elmer W. Hallowell 5

Soviets Plan Huge Increase in Grain Storage Capacity By A. Paul Danyluk

6

World Sunflower Oil Exports Drop as Consumption Climbs By Richard J. Blabey

8 10

By ELMER W. HALLOWELL

Rome

T

'

he dark clouds of massive

Industry Viable By Daniel

relief J.

Stevens

16

South Africa Citrus Industry Had Record Year in 1974

farmers till cropland in wealthy industrialized Province in northern Italy, where farm incomes are considerably higher than in the less developed Italian

Lombardy,

south.

Italy's

economic and

agri-

cultural situations are discussed in

beginning on

article

gloomy

a

cast

stability

this.

page.

political in-

pall

over the

economy during 1974. No

Italian

real

from these pressures appears

to

Yet

in spite

of restrictions on farm

and other imports lieve a huge trade $11

billion



agricultural

1974

in

deficit

to help re-

—estimated

imports

Italian

products

almost

of

at

U.S.

certainly

record for the

fifth straight year.

Thus, through 1974,

Italy held strong to

set a

farm market, be-

sixth place as a U.S.

hind only Japan, the Netherlands, West

tary for International Affairs

and

Commodity Programs David L. Hume, Administrator,

For-

beans

L. Butz, culture

Earl

Clayton K. Yeutter, Assistant Secre-

Editorial

Staff:

Kay Owsley Patterson, Editor Patricia 0. MacPherson, Beverly J.

Horsley, G. H. Baker, MarcelMurphy, Isabel A. Smith,

lus P.

John

C.

meal

in

of the import shift. U.S. sales of soy-

eign Agricultural Service

Roney.

Advisory Board: Richard A. Smith, Chairman; Gordon 0. Fraser, William Horbaly, Richard M. Kennedy, J. Don Looper, Larry B. Marton, Brice K. Meeker, Jimmy D. Minyard, George S. Shanklin.

The growing farm though serious,

is

trade deficit,

a

not the primary caus

Costs of nonfarm commodities rose 9 percent to $27 billion in 1974, plungir

imports of U.S. soybeans and 1974 regained the lead they lost to corn 2 years ago as the No. 1 U.S. farm import. High prices and shorter supplies of U.S. corn were main causes

Agri-

1974 rose sharply from those of 197

in

to a preliminary $1.4 billion.

of Italy’s precarious financial positioi

balance of pay-

in the

Italy’s

of

Italy

imports of grains and grain preparatior

improvement ments situation.

Germany, Canada, and Mexico.

Secretary

same months of 1973. But

the

be in view for 1975, except for a possible

This week's cover:

inflation,

rapidly declining economic activity,

growing unemployment, and

Crops and Markets

1? 1

U.S. Agricultural Attache

Czechoslovakia Launches Drive To Boost Export Earnings Mexico’s Tobacco Goal: Keep

13

an

[Hi i

and products, mainly meal, amounted to $320 million, followed by $264 million in corn. Together, these products amounted to 76 percent of the $767 million U.S. export total. Other significant U.S. exports to Italy in 1974

were cotton, $38 million; tobacco, $31 million; wheat, $30 million; and tallow and greases, $11 million. large feed

Italy’s

ingredient imports

are necessary to support livestock devel-

the Italian trade balance $11 billion

Soaring costs of

deficit.

oil

imports

i

ai

counted for more than a $7 billion slk of the deficit. Excluding the oil impo bill, however, Italy’s trade was moi nearly In

balance

in

previous

1974 than

in

years,

197

in

has

Italy

.

offsi

of its trade spending with e: change earnings from tourism and cu rencies sent home by emigrants. Ec<| nomic slowdowns in other countrit have curtailed profits from both of thes .some

sectors,

although

tourism outloo

the

may

be brighter for 1975, owing to th expected influx of visitors for the Hoi Year. Despite

caused by

drain

the

higl;

priced imports, Italy’s economic grow1| rates in

some

1974 remained above those

other

industrial

(i

Son

nations.

sources place real gross national pron

(GNP) growth

1974 at 4.5 pel growth at 4 pe cent, compared with 6 percent in 197 The outlook for 1975 is far less promi ing, however, with zero or negatb growth expected. uct

in

cent, others estimate

GN

opment programs, now taking hold

in

the relatively underdeveloped south.

A

forecast are abundant.

The Secretary of Agriculture has determined that publication of this periodical

viable domestic industry

if

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

Italy

1974 surged to 19.2 percentCommon Market cou tries and topped only by Japan amoil industrial countries. At yearend, tl

is

Director,

Office

of

Budget through June

Management 1979.

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 cultural

Service.

Agri-

is

essential

reduce meat imports

to



still

the largest food deficit item.

For

and

Yearly subscription rate; $34.35 domestic, $42.95 foreign: single copies 70 cents. 30,

is

all

food and agricultural items,

Italy’s trade

in the first

10 months of

1974 was a whopping $4.8 billion in deficit. Outlays for food imports from all

sources during the

Italian

statistics,

rose

10 months, say to

$6.9

billion,

for

this

inflatic

rate for

rate actually hit

about 25 percent, ar|lon is for around

the outlook for 1975

percent despite

,

Government

anti-infl

tion programs.

»oi!

Inflation during the year

by a combination of

period.

soaring

same 1973 Meat imports were held down to

gloomy Italy’s

highest of the

against $6.2 billion for the

$885 million, however, 6 percent below Page 2

The reasons

labor

world prices for

forces.

was

fuelii

Chief

we

added to high food, and raw mat

costs, oil,

Foreign Agricuitu

— l

I

Further, the floating Italian lira veakened against most other currencies ials.

skyward so that

A

for rental.

little

land

available

is

hectare of orchard land in

during the year, boosting the price of

central Italy, for example, cost an esti-

imports. Price controls on most major

mated $7,000 to $10,000 in 1974, some 30 to 50 percent more than in 1973. The same land costs only half as much if it was already leased. High land and other costs are also an impediment to expanding the size of farms. As it has for several years now, the Italian Government is still debating a law to improve the structure of agriculture, as set forth in EC directives. So far, the only major program benefiting from EC funds, with matching Italian money, is in the citrus sector. Targets include modernizing and constructing

Consumer products were ended

Au-

in

;ust after year-long restraints, whereupon prices galloped rapidly upward. As part of a program to hold down

mports, Italy enacted a temporary im-

scheme for many industrial on May 4. Meat improducts farm ind )orts were one of the chief targets of )ort deposit

.

I

Few

he scheme.

bulk U.S. agricultural

lixports were affected, but the restric-

tions hit hard at U.S. grapefruit, dried [I'ruit, almonds, and peas and lentils. By November, however, these products

ivere removed from the restricted list tind imports were expected to rebound o more

On

'

the domestic front, Italy’s agriculis

a story of contrasts. Al-

tuost 16 percent of the labor force is 'L'nvolved in agriculture, but the rate

from 4 percent

’V/aries

to

Irhorthwest

Incomes

,l;taly.

in the industrial

28 percent in southern in the farm sector are

only half to

Vitill

father sectors, and

three-fifths

those

farm incomes

i?iOuth average only

in

in the

about 70 percent of

‘hose in the north.

URED BY higher incomes and the benefits of urban life, Italy’s young

L

beople have been leaving the land

in

ecord numbers. Only about 300,000-

between the ages of 14 and 29 remain on farms although the lialf as many as in 1964 jxodus has slowed in recent years. Abandoned lands are also concerning



farm groups, which are urging the use

ro

packing,

European Community subsidies and on

A

500-billion

such projects

According

tree

crops,

dairy sectors.

farms

modernity. Only about 4.5 percent of

farms are above 50 acres in

jMill

size

statistics,

agri-

1974

in-

Farm

percent)

and a in

slight

the

increase

livestock

and

prices rose about 17-18 percent

overall in 1974, with gains of about 25

percent for tree crops,

field crops, 20 percent for and 9-10 percent for animal

these

products. This boosted the total value

of farm production by about 20 percent

comprise 55 percent of all Thus, only 10 percent of on [farms produce 50 percent of farm prod-

noifiicts. tl

Italian

^farmland.

itiilyet nt

to

an expansion of 4 percent in field crop production, unchanged production

fhe land.

Italian

operations,

flects

91

most

cow-calf

creased about 2 percent in real terms (using 1963 prices) over 1973. This re-

(1.5-2

size of

as

cultural produciton in Italy in

regional assistance to keep farmers

a major constraint on efficiency and

5-year

U.S. feedgrains.

of

The small

a

is

and production of beef, lean pork, and heavy lambs in an effort to promote

pi

*

project

lire

scheme for fattening bull calves (up to 300,000 head annually), and producing lean pigs (400,000) and heavy lambs (100,000). Technical assistance for the program is being provided by the U.S. Feed Grains Council, which is fostering U.S.-Italian cooperation on

of

For top

efficiency,

farm numbers

should be cut by 90 percent, according

aiito

recent calculations, Italy’s latest

li

land reform act, passed

in current prices to a total of nearly

$15

billion.

Yet costs of goods and services to farmers were about 25 percent higher, forcing farmers to rely heavily on stock

I

iifijin

late

1973, was expected to

assist

farm

workers to lease farmland and encour-

reserves accumulated during

more

fav-

orable marketing periods.

I

jeliage 'vfll

larger

The

wtake

farm

effect,

Mimnexpected iltu^ay 12,

I

but inflation results,

1975

In the energy sector, farmers were

units.

act has not really

had time to has produced

pushing land prices

workers process tomatoes, an important farm export

Italian

meat project is underway as part of investment programs in the poorer south. Ambitious in scope, the special

pf



and distributing

storing,

facilities.

young farmers

i00,000

01

demand by consumers, and improv-

in

ing

traditional levels.

|ural situation

nurseries, stimulating output of varieties

able to get

all

the

fuel

albeit at higher prices,

they needed,

thanks in part to

the Government’s action giving agricul-

top,

item. Rice field, below,

is

irrigated

from rainfed streams. Rice may go into export or help to supply the growing domestic market. Poultry farm In Genova Province, bottom,

contributes to strong demand for U.S. feed ingredients.



— ture priority over industry in fuel allo-

consumpdown some-

cations. Fertilizer production,

and imports were all what due to high petroleum prices and Government action on fertilizer prices. Production is expected to recover tion,

slightly in 1974-75.

In brief,

Italy’s

crop and livestock

in barley

acreage and better than aver-

age yields combined to push output to

552,000

tons

— 21

over

percent

last

on the other hand, is trending downward, with acreage generally being replaced by Durum. An 8 percent drop in acreage last year was partly offset by good grow-

year’s crop. Production of oats,

situation, as well as trade trends, include

ing conditions, so that the 460,000-ton

the following:

crop was 10 percent over the previous

Wheat.

Italy harvested a

crop of 9.6 million tons

good wheat in

1974, of

which 2.9 million was Durum. Despite the good crop and record imports in 1973-74, imports should remain at a high 1.2 million tons or more in the

coming

A

key factor is the lifting of the EC’s ban on exports of pasta and year.

flour to third countries.

large

Italy’s

flour

exports,

together

year’s.

Rice. The 1974 crop of 988,000 tons paddy basis was down about 5.3 percent from the year before. Lack of irrigation water had an adverse effect, but the principal problem was a shortage of fertilizer.

C

increased close to 15

percent in 1973-74. Rice

is

an

in-

wheat products, should combine to keep wheat imports high. Feed use of wheat,

primo piatto (first course) at lunch and dinner, and therefore may become

not a traditional practice, will probably

increasingly

not increase much, owing to the recent

diet.

metric tons of

Durum. Main

suppliers

neighborhood of 600,000 tons. First estimates for 1975 anticipate a drop in acreage for both soft and Durum wheats (5 and 6 percent respecin the

as farmers are likely to turn to

more profitable alternatives such as corn and sugarbeets. Assuming normal weather the

total

crop

estimated

is

9.4-9. 5 million tons, or 2 percent

than in 1974. ever,

is

million

Durum

at

expected to increase to about tons

—7

percent

over that

3

of

1974.

crop was a record 5.2 million tons

above that of 1973.

Demand

re-

mained a question this year, with beef and dairy feeding trending down, swine expansion still uncertain, and poultry feeding due to increase. Italy’s corn imports from all sources during 1973-74 (August-July) were estimated at 4.9 million tons. In 1974-75, however, imports could

Italian

estimated 650,000 tons will be

coming

year.

slide slightly to

competitive

its

position

proves.

Orange production in 1974-75 is esti mated at a record 1.6 million tons, c which 68 percent will be of the bloo:; variety preferred by Italian consumer The market has yet to recover full from the depressing effects of inflatio^ and high production costs that harasse

,

i

i

,

producers

during

Exports

1974.

season are apt to increase only if

th

i

slightl;

at all.

however, helped keep

tons. Exports for

(,

1974 were

i,

the vicinity of 40,000 tons, as they wei; in 1973.

Tobacco imports have also been c rise. Through October 1974, impor; at an estimated 25,557 tons were up 3, percent from the same period a ye;

raw tobacco it

as low milk prices,

In

heavy slaughter dur-

ing 1974 pushed beef and veal produc-

imported

to the

terms,

value

United States

— 12,000 tons

—U.S.

however,

much

nearly half as

the;

against 8,00. Italy

spO;

again as the Unite

tion about 9 percent over 1973’s to 1.2

States

million tons.

expensive tobacco for blending, whi

and beef imports were

Live cattle

down

dramatically, owing partly to the

316,000

EC embargo

Italians

live cattle

imports

fell

As

a re-

19 percent

1974 to 1.8 million head, while beef and veal imports were off 27 percent to in

tons.

manufacturers sought

le

bought higher-priced U.S.

t

bacco.

and Government actions

to restrict high-priced imports. sult,

,

total productic

about the previous year’s level

at

increases in feed and labor costs, as well

I

Sugar. Planted sugarbeet acreage

i

|

1974 was 18 percent below

last year;

reflecting the lateness of the

EC’s

dec:

sion to increase beet prices this yesi

Some farmers had

already shifted fro

sugarbeets into grain crops, where

Pork production

also

moved ahead,

rising 8 percent over the previous year. in other EC counand rising domestic demand for pork pushed live hog imports up 61 percent to a record 675,000 head, and pork imports to 236,000 tons a gain of 31

Competitive prices



r-

turns have been higher. Consequent!

production

is

estimated

to

have

creased 16 percent to 7.8 million

compared with 9.4 million tons Favorable

weather

conditions

.

d tor:

197

in

,

durii; ,

the growing season boosted the sucro.

by

3 percent,

compared with 1973.

I

percent.

'

I

Bolstered by consumer less costly

demand

for

meats, production of poultry

meat rose some 8 to 10 percent above 1973’s. Output should continue to expand in 1975 as the squeeze on family budgets continues. Citrus. Italy’s

panded

Milan expect that shipments from the United States could be off considerably, owing to the tighter U.S. situation. Barley and oats. An 1 1 percent jump

age.

tons

— up

5

lemon output has ex-

percent.

in

1974-i

be the lowest since 1959, proi ably about 870,000 tons, because will

lower beet tonnage and greater use beets for feed. This

would be



i!

360,0ii

tons less than the EC-authorized pi'

consistently, despite static acre-

The 1974-75 crop

TALIAN SUGAR production I

totaled 725,000

Unusually



low

prices for lemon derivatives Italy one of the world’s major producers

is

duction quota for Italy of 1.2

milli|i

tons and would about equal Italy’s to

!

on hand at the outset of t 1973-74 marketing year. Sugar imports in 1974-75 are (

stocks

pected to

:

set a

record of over 900,0 Continued on page

Page 4



in

ago. Interestingly, Italy exported mo:

Livestock and meat. Reflecting sharp

about 4.4 million tons. Principal traders in

the

in

tries

Corn. Most recent data show that the slightly

important

available for export during the

less

production, how-

as

the

An

were Argentina (39 percent), Canada (31 percent), and the United States (13 percent). As a result of this year’s good domestic crop and adequate stocks, imports during 1974-75 will probably be

tively)

as a

corn prices.

1973-74, Italy imported 867,000

tons

i

2

ONSUMPTION

with stronger domestic consumption of

In

however, and Italy’s expoi volume could soar 24 percent to 260,00’ this season,

Tobacco. Acreage in 1974 edged u 94,000 percent from 1973’s. Lower yield

creasingly popular substitute for pasta

falloff in

have temporarily depressed the marke ij Prices are expected to strengthen late)

)

;

;

;

s

;

!

Foreign Agricultiii

|

A major producing areas are reportedly so far apart, and waiting periods at the

Huge Increase

ijoviets Plan

collection points are so long, that trucks

Grain Storage Capacity

can make only two or*three deliveries

PAULDANYLUK//

percent of the 40 million tons of

|n

daily.

To lyA.

problem,

28

new

planned for 1976-80

be constructed

will

loscow

*

this

alleviate

storage capacity

ssistant U.S. Agricultural Attache

'

help

in

two major grain

producing areas, the Ukraine (6.4 million tons)

!'i

HE SOVIET UNION expand r

'

ning to

lllorage capacity

reportedly plan-

is

its

off-farm

grain

almost a third over the

ext 5 years, reaching a total off-farm

Five-Year Plan, calling for 8 million the

Soviets

moved

for 1976-80 calls

million tons; for 1966-70, 167.6 million

iff-farm grain storage capacity, an aver-

and for 1971-74, 191.9 million which has left large gaps between storage needs and actual capacity. Grain storage facilities on state and collective farms reportedly have a total capacity of 100 million tons. Over the

The Five-Year Plan

new capacity

jge of 8 million tons of ^fer year.

From 1961

to 1970, an aver-

ge of 6.7 million tons of grain storage

was constructed annually, of

||apacity

elevators accounted for 1.2 mil-

fl'/hich

'i'''

The sharp

rise

'follows in the

wake

of grain crops in

and 1974 that were the

“f973

l^ver. It '

in construction plans

largest

also suggests a response to

criti-

isms about the high losses of grain due

'

shortages of both storing and drying

Plenum of the CenDecember 1973, So-

In a speech to the

Committee

I'f'al

in

party leader Leonid Brezhnev

tiet

la-

mented that “because of the big harvest, f

large quantities

n mounds under the open sky made an accounting of the .

if the losses

is

amount

sion of

in

need of some type of work.

It

appears that Soviet grain

.

.

and

value

silos are

being built of precast reinforced concrete with steel lining. Construction of silos

of the grain that remains on the

less

viewed as another reason

modern grain storage

to

geo-

graphic. Grain collection points in

some

plates,

on the

Some

much

less costly.

Problems evidently

exist

with labor

elevators just recently

constructed already need major repairs,

the

is

time and be

efficiency.

facilities.

Another factor contributing need for storage construction

from sheet metal

other hand, would reportedly take

stored in primitive barn-type fais

and some renovation. Apparently,

almost the entire grain storage system

But losses are probably high, since

This

new

owing mostly

to

poor construction of

seals against moisture.

Continued on page 12

The Soviets plan

to construct

this one, located in a

more modern

major producing area

grain elevators like the Kazakhstan.



incurred.”

Brezhnev then announced that measres would be taken and funds appro-

:

1

ties,

use as livestock feed.

cilities.

to include

construction, additions to existing facili-

of grain had to be stored

;iO one (

Chernozem Zones. The work is expected

for the current drive for rapid expan-

'facilities.

T

Krasnodar Krays, and the Urals, and the Central Chernozem and non-

of grain has remained on the farm for

is

Major

also planned for Stavro-

is

pol,

tons,

farm

Volgo-

Bashkir and Tatar ASSR’s.

as

construction

tons;

much

Russian Fed-

grad, Saratov, and Kuybyshev, as well

patible with

past several years, an increasing

tons.

fiion



in the

eration, including the oblasts of

grain storage construction levels com-

®br construction of 40 million tons of

f

roughly 180 million tons by 1980.

planned for a

facilities are also

number of regions

establish

to

growing needs. For the 1961-65 period, average annual gross grain production was 130.3

and grain warehouse capacity

levator ‘,‘

New

tons per year (85 percent in elevators),

have

and Kazakhstan (5.2 million

tons).

1

enough

41

'dated for the construction of

tf

closed” grain storage facilities to

file

Soviet

I!

fulfill

country’s requirements.

tjapid

of its

the

need

for

grain storage fa-

became acute when the 1973

iilities

irain

awareness

expansion of

crop exceeded the planned level

•1y 25 million tons. d' I

!

The annual construction 5 averaged

Tain

rate in 1961-

almost 6 million tons of

storage

capacity,

but

included

dimly 700,000 tons of elevator capacity.

4 'or the period 1966-70, the yearly contruction rate was 7.5 million tons, inlii)

o!(

ll!

luding 1.7 million tons of elevator calacity.

;ain

For 1971-75, the average annual

totaled

levators

i

only

6 million tons, but

accounted for over half of the

I

ft|iew

capacity.

lil^ay

12,

1975

Not

until the

upcoming Page 5

World Sunflower

a reputation for being drought tolerant

Exports

Oil

The

Union

Soviet

ing sunflowerseed

sunflowerseed

world’s

the

Sunflowers

By RICHARD

J.

BLABEY

N 1975, WORLD exports of sunflowerare expected to decline for



approxi-

to

mately 665,000 metric tons their lowest level since

(oil basis),

seed

oil

increased

has

faster

than

production,

thus shrinking the volume of world ex-

The

ports.

ability

of major producer-

exporters to expand production enough

export

restore

to

achieved

just

6

volumes

years

Union and other East European countries, where new varie-

ago

to is

in

Soviet

higher

oil

content were developed.

In addition, expanded acreage, better

and more efficient extraction methods have helped to

plants that produce seeds either eaten

by health food enthusiasts or by blueand gray squirrels raiding backyard

jays

oil consumed each year in the European Community is derived from

table

approximately to

a train of railroad tank cars

oil

for

highest per capita

50 miles consump-

however, can

fluctuate greatly

from year

still

to year as a

pests,

verse weather. Diseases such as

or ad-

downy re-

yields are

relatively

oils in the

fertile.

not

varieties

Humid

highly

self-

conditions prior to har-

encourage

growth of fungi which attack ripening flowerheads and stems causing severe rotting of flowers and seed loss. vest

the

(grey mold, sclerotinia)

su; fi

its

di

for other edible vegetab

Argentine

diet.

exports to 2,000 tons

drop from 62,000 tons

Romania,

—a

i

as the world’s second lea* oil,

e'

oil

a

120,000-140,000 tons of

nually. Last July at the 6th

from

to

seve

Annual

flower Conference in Bucharest, tists

difi

in 1973.

ing exporter of sunflowerseed ports

is

i

prompted the Government

culties

K

increase

In 1974, low stocks and supply

duces bee pollination and prevents good

on

m

b'

mestic consumption of sunflowerseed d

strict

re-

low because

has climbed as a result of

losses.

during flowering

extensive,

H

substitution

rainfall

st

i

is

®

duced yields as much as 50 percent under some conditions. Insects such as carrot beetle, sunflower beetle, and sunflower moth can also cause significant

seedset

oil trade.

h

Hi

crop following wheat. Furthermore,

all

Su'

scie'

over the world gathered

discuss current research efforts.

flower production throughout the world is

concentrated in the temperate zones

where the climate

is

natural vegetation

is

semi-arid and the short grass.

Sun-

R

omania’s

satisfy

its

demand

for

have

bei

_ i

male sterile s> and they share with U.S. scientis

tion using the genetic tern,

male

to

scientists

leaders in hybrid variety produ

can withstand low temperatures better

sunflower

generally preclude eii^

flowers are often planted as a secoi

than corn. During later stages of growth,

year.

on imports

oil

Argentine production

Except for about 25,000-30,000 tons of oil produced each year in France and Italy, the EC must depend



and Yugiiti

ports

flowers in their early stages of growth

erlands

in

Turkey,

Bulgaria,

leadership

is

ft

i

Because short domestic supplii^'

West Germany and the Nethabout 5 pounds per person per

tion

other major pn

sunflowerseed

yields,

:S

;

USSR,

Consequently, most large-scale sun-

consumes

350,000 metric tons annually, enough

The

mania,

the world.

Sunflower

«i

:

soybeans as a source of vegetable

production, so that

oil

i

toi

today sunflowerseeds are second only to

sunflowerseed.

long.

v

USSi

plan,’’ the

from Turkey and Yugoslavia, the play no significant role in the worldi

Heavy

from sunflowerseed is widely recognized as an oil used in manufacturing margarine, preparing salad dressings, and frying foods. About 10 percent of the vege-

Besides the

of vegetable

increase overall

birdfeeders. In Europe, however, the oil extracted

“below

annually (oil basis).

oil

mildew, leaf mottle, and rust have

fill

s

exports by one-half, frer

slavia.

Most Americans are unaware of the prominence of sunflowers among the world’s oilseed producing crops. To them, sunflowers are decorative garden

fall

its

cultivation practices,

consequence of disease,

EC

tE

USSi>

ducers of sunflowers are Argentina, Rn

doubt.

The

across

about 800,000 to about 400,000

of sunflowers with higher yields and

ties

levels still

the

in

1965. Since the

consumption of sunflowerby major producer-exporters

1960’s,

late

outpu)

Caucasus regions. In the early 1970’1 duction to

second straight year

;

r

when unfavorable weather caused pn reduced

I

1

<

Ukraine and northeit

eastern

the

in

Foreign Agricultural Service

the

ilf

with the bulk of the crop concentrates

Commodity Analysis Oilseeds and Products

oil

harvested

are

oil

southern part of the European

Foreign

seed

producer and eac

year accounts for about 60 percent

Drop as Consumption Climbs,^

II

the world’s leail

is

in

the

sterility in

use

of

;

1

1

cytoplasm

hybrid development.

Sunflowers in Bulgaria are planted

^

(, |

they can also tolerate temperatures in excess of 100°F., is

if

sufficient

moisture

about 7 percent of the cultivated and provide over 90 percent of garia’s

available.

oil.

N SEMI-ARID REGIONS, where winter

domestic vegetable

oil

lai'

T

Bii

k

suppl

European consumption of sunflowerseed oil grew rapidly during the 1960’s when worldwide production doubled and exports, primarily from the USSR, Eastern Europe, and Argentina, tripled to over 1.1 million tons. This phenomenal growth was primarily a result of

sive root systems shortly after planting

pounds per acre). However, Bulgar, has reduced its exports on an oil bai

which enable them

to tap moisture not

by phasing out sunflowerseed expor

when during summer

apparently to increase domestic ava

three decades of research effort centered

months. Consequently, they have gained

I

in

rain

the

and snowfall moisture

rainfall

is

stored

sunflowers develop exten-

soil,

accessible

is

to

many

other crops

infrequent

I

Average yields are among the highd in the world, varying between 16 aij 19

quintals

abilities

per hectare

.

(1,500-1,71

of both vegetable oil and

tein meal.

®

''

'

pii i

j>

I

Page 6

Foreign Agricultuli I

Although sunflowers in the United are not a major oilseed crop, in

'

^I'tates

United States became the third ranking producer-exporter

averaging 180,000 tons of pro-

Analysis of preliminary trade data for

tons

OSes,

been a major producer

The

Pi»i974.

traditional

and

lojilimate le

I

been .the Red

soils are similar to

southern

cent (oil basis) from those of the previ-

ous year.

those of

USSR.

In

Commercial production of seed for 1967 and rose sharply in Ur'il began in increasing

oil

With the elimination of

programs,

exports greatly this year.

Growing population and per

declined

of

acres

new production

[50,000

IS

Texas and other southern states.

lior

sunflowerseed

stocks are

in

No

approximately two-thirds of

s'owerseed

exports

oil

all

in

exports

is

anticipated

in the

It

is

unlikely

prior

that,

to

world exports of sunflowerseed

ffom

return to the levels of the late

Oil

output

crop was

this

major

actually

is

record crop of 7.39 million metric ,ons.

compared with .9 million produced from the previous .ear’s crop. Consequently, many com^

for a

,bout 2.8 million tons,

A

j

jf.

oil

1975 since production

expected to decline.

In

-[973, the Soviets reportedly harvested

5

worldwide recovery of

significant

producer-exporter countries

sun-

basis).

(oil

available for export.

oil

drawn down.

sunflowerseed

accounting

oil,

of

Consequently, 1975 exports are not expected to exceed 450,000 tons, unless

The Soviet Union dominates world in

amount

the

including 300,000 to

li

capita

consumption since 1968 have reduced

an estimated

acres,

ex-

basis,

the Soviets are not expected to increase

acreage

harvested

to

rade

output slightly

oil

when

million

i'-!

an anticipated

spite

600,000 acres in 450,000 acres in 1974. Planting 1975, however, may be as much as

c:|i i. ;

de-

crop

a

only to that of 1973. De-

in size

ports exceeded 800,000 tons,

acreage.

iirom

t

second

planting of sunflowers on set-

lanted with oilseed varieties j,

harvested 6.76

about that of 1968 and 1969,

ii[J;t-aside

itij972

USSR

1974, the

million tons of sunflowerseed,

for edible oil encouraged wide-

ikipread );(side

when

1970’s

early

'land

!:

approximated 320,000

oil

tons in 1974, a decline of about 15 per-

pist

if*ie

indicates that imports of sun-

flowerseed and

Valley of North Dakota where

loif.iver

EC

the

of U.S.

center

Silinflower production has

and

1970

between

annually

action

The United

basis).

(oil

Mates has long

I

severely

rebuilt

sunflowerseed for confectionary pur-

M 1,000

'c

instead

have increased

sunflowerseed for confectionary pur-

*i'f

oil

Russians

While Soviet exports are thought to slightly in 1974, world sunflower oil exports declined by an estimated 75,000 tons from about 770,000 tons in 1973 to 695,000 tons in 1974.

Ml Grid’s Pi||f

sunflower

the

depleted stocks.

the

'*j?73

exports in 1974, but

viet

number of

1980, oil

will

1960’s

reasons.

large portion of the world’s semi-

arid grassland that could conceivably be

noddy analysts predicted increased So-

planted to sunflowers

is

located in coun-

Model poses before a poster promoting margarine made from sunflowers in West Germany, the world’s leading importer of sunflowerseed

tries

*

Country

Item

Mjssr

.

.

Production Exports" Production Exports" Production Exports" Production Exports" Production Exports" Production Exports"

.

'i

Romania

.

.

.

Jj

iffgentina

.

.

.

.

.

Ill

MJulgaria ....

Jjnited States

.

.

.

.

“•'Jthers II

.

.

expanded will most

such countries, the seed

.

.

.

.

.

.

1973

1974"

1,828

2,452

1,943

2,843

2,603

286

663 294 145

374 344

400 306

450

147 311 62 195

120

.

.

.

.

.

.

61

186 66

34 94

0 0

11

3

91

280 30

404

670 64

52

are forthcoming.

Acreage expansion by today’s major is restricted by crop rotation considerations and economic producer-exporters

Total

.

)i!i

.

Production Exports" Apparent con.

sumption

.

.

.

.

1975"

322

271 90 266

In the

USSR, rotation cycles for disease may be as long as 10 years

prevention

some

areas.

,

'

*

2

2

cultivation will have to increase by 3 to

10 acres, a possible but unlikely prospect.

Widespread planting of sunflowers on highly productive, irrigated or dry land

acreage

is

unlikely because a

iviay 12,

number of

162

food and feedgrain crops offer greater

15

5 81 50

flowers. If world vegetable oil supplies

99 82 745 76

654 68

2,641

3,663

3,557

4,493

4,037

455

990

772

695

665

2,186

2,673

2,785

3,798

3,372

economic were

to

returns

"

Esti-

compared

to

become abundant once

sunflowers, being primarily an less success

sun-

again,

oil

crop,

competing for

acreage. If

Estimated production from seed harvested in preceding calendar year. * ^ Forecast. Exports of seed and oil-oil basis.

nated.

in disease resistance, for

178

1

®

grown

factors. Generally, sunflowers are

only once every 3 or 4 years in the same field in order to control disease.

would have “

oil

consumed domestically before exports

vested, total area devoted to sunflower

Average 1967-71

316

be crushed and the

likely

is

every additional acre of sunflowers har-

Average 1962-66

60 214 33 128 46

.

in

ments are made

1,000 metric tons]

191 .

for

oil

sunflower cultivation

If

Consequently, unless further improve-

OIL:

[In

currently short of edible

consumption.

in

PRODUCTION AND EXPORTS BY MAJOR PRODUCER-EXPORTERS

SUNFLOWERSEED

oil.

acreage cannot be expanded

cantly, increased output will

pend on better

signifi-

have to de-

Most countries on improved cul-

yields.

are expected to rely

Continued on page 12

1975

Page 7





Czechoslovakia Launches Drive

To Boost Export Earnings o CUSHION THE burgeoning costs of Western imports and keep a lid on Czechoslovakia is prices, domestic launching a strong drive in 1975 to move its exports, notably sugar and manufactured goods, to hard currency markets in the West. Although the Czech trade balance broke about even

Czechoslovakia

in the first three quarters of

cereals,

T

dropped into the red of

some US$136

To reduce

its

dependence on Western

firmly

is

sugar, hops, and processed vege-

tables.

Leading the import list were animal feeds, wool, cotton, and

top U.S. export there

in

1974, Czechoslovakia’s controlled econnot without problems.

Western

— and

still

is

economy from

The key

— how

to

the effects of

inflation, as reflected in

higher

import costs for needed raw materials

and energy. So have held relatively

especially livestock feed

Czech

far,

prices

which were raised substantially by the Government during 1974. steady, except for gasoline prices,

Weather posed another problem dur1974. At harvesttime, heavy rains

ing

threatened serious

crops

of



damage

particularly



sharply in

fell

1974, although Czech figures show an

import

The discrepancy

rise.

due to

is

the difficulty of interpreting import

fig-

ures for landlocked European countries,

many

since

U.S. shipments are trans-

shipped through West European ports. U.S. Census Bureau data, however,

good showing

In spite of a fairly

shield the

(mostly

ham),

to continue strong in 1975.

was

farm

are farm products. In 1974, top

exports were processed meats

According to U.S. export statistics, Czech imports of U.S. animal feeds



problem

total exports are agricultural,

hides.

committed to improving livestock output and consumer diets, protein feed imports some from the United States -are likely

omy was

its

while about 22 percent of total imports

balance

emphasizing cereal production.

also

cent of

a deficit

million.

But since the State

of

currency

grain and feed imports, Czechoslovakia is

importer

net

a

—showing

hard

all-important

1974, the

is

agricultural products. Less than 8 per-

to a

number At

sugarbeets.

show

that U.S. soybean oilcake and meal exports were worth just $15 million in 1974,

compared with $31

1973. U.S. oilseeds exports

in

sunflowerseed and peanuts

million



largely

—were worth

$2 million, compared with 1973’s $5 million. Hides and skins shipments are listed at $9.6 million for 1974 well



below the $16 million of 1973.

Although grain was once the leading import to Czechoslovakia, the country apparently imported no U.S. wheat or corn during 1974, purchasing largely from the Soviet Union and U.S.

other

suppliers.

Unofficial

estimates

place wheat imports in 1974 at

1

mil-

measures, including handpicking, since

good crops in 1973 and 1974. Barley and corn were also imported. Protein meal imports reportedly surpassed the 663,000 tons imported in 1973, of which 145,000 tons were direct shipments from the United

the fields were impassable to machinery.

States.

lion

stake were large quantities of sugar

over 200,000 tons



for export chiefly

hard currency markets. As the harvest ended, however, damage to the to

beet crop

was minimized by emergency

Finally, Czechoslovakia faces a seri-

ous

shortage

mated

at

of labor,

officially

100,000 workers. Of a Czech

population of 14.7 million 1974, the work force lion,

esti-

of which

1

at the

numbered

end of

7.3 mil-

million people or

14

tons, despite

during 1974. Early repor

in in



Czech agriculture lessening dependence on grain imports. Imports of feed protein mostly in the form of meal



the

livestock

industry

represented

tural

by 3.3 percent.

I

plies to

output a shade

improve further is

in 1975.

below the

official

A

highly

earlier years’ levels.

industrialized

country.

On vakia’s

the

domestic

front,

Czechoslo-

economic expansion was

rela-

10.6-millioi

ton record of 1974.

'

to continue during 1975.

were well above

Gra'

targeted at 10.3 million ton

sharply rising prices for these products.

ever, since population increases in





s

In general, plans call for food su

1974

encourage population ex-

|

'

pansion apparently are successful, how-

to

i

4 percent. Eor 1975, the economic d velopment plan envisages industrial ou

strains

Measures

j

while gross farm production advance'

56 percent of Czechoslovakia’s imports of noncapital goods from the West in 1973 and more in 1974 owing to

percent were employed in agriculture.

J

industrial output rose 6 perceni

put gaining by 6.5 percent and agricu

The increased grain production 1974 was a welcome development

for

tively rapid

show

The introduction of of wheat



the high-yieldii

chiefly

the

“Mironovskaja” and “Kafka” two-thirds

sown

of

total

to these types.



Sovie'

1

is like|^

So far, abo wheat acreage

They

are resista' j

Page 8

Foreign Agricultui

|l

J

range program to improve and expand herds. Plans call for milk output to rise

about 2 percent over 1974’s by increasing the cow population and per cow output, which currently averages about

2,810

a year.

liters

However, the 12 per1974

cent rise in pork production in will

be

maintain

to

difficult

1975,

in

and poultry production, particularly of chickens, may decline also somewhat,

of sunflowerseeds.

tities

Rapeseed production was poor last year because of dry weather and frost.

As

a result, about one-third of the area

planted had to be plowed up in the

meant a loss of some 30,000 tons from the expected spring of 1974, which

120,000-ton

was

Flaxseed

output

may have

reached

harvest.

satisfactory and

over 100,000 tons.

according to the 1975 plan.

Gross

production

agricultural

in-

mixed

faction with soybean production since

Chairman of Czech

was registered by grains and sugarbeets, while output of potatoes and other crops was down. Grain. About 45 percent of Czecho-

farm cooperative

slovakia’s

complex

will

usually

is

planted to wheat and about 30 percent

The

rest

corn, oats,

rye,

is

and minor grains. Although area planted to grain in 1974 was about 64,000 acres less

than in 1973, farmers harvested a

crop

record

conditions.

despite

for fattening

lion

Czechoslovakia’s

improvement

programs.

up some

tons,

weather

adverse

Wheat production

1974 is around 5 mil-

tentatively estimated at

help to sustain

livestock

acreage

grain

to barley.

hogs includes automated feeding system, above. Harvest of alfalfa crop, left, which

over

percent

10

1973; barley production

in

is

estimated at

is

important for malt and

percentage of “green grains”

Corn

also suffered

during the rain-soaked harvest, with the high moisture content causing ficulties

;

Excessive

may

iijiheen

jslovakia,

i(|icent j

of

least kjjflook 1

of

I

parts of Czecho-

particularly in the East.

the

some

districts,

Re-

only 50 per-

planned wheat land was

planting of spring wheat

2 weeks, further for

good yields

dimming

by

at

the out-

this year,

Livestock production will continue to increase

icl

many

sown. In March, inclement weather de-

iiisjlayed

[

fall

of yields and production.

delayed in

o;i;portedly, in

if

the

Plowing and sowing of winter wheat has

^

I:

during

adversely affect these target

jisxpectations

i.

rains

at

achieved in

about the 2 percent rate 1974, reflecting the long-

ered

poor.

relatively

Some

observers

poor performance to a lack of knowledge of cultivation.

attributed

the

and

Livestock

livestock

products.

Czechoslovakia’s livestock improvement

program reached the point in 1974 where the country could claim selfsufficiency in milk, butter, and egg production, and near self-sufficiency in meat.

The

population in 1974 reached

cattle

4.6 million head

—up

10,000 during the

grow rapidly and reached 6.6 million heads, up around 5 percent from 1973’s

fairly large

IjfCzech strains.

good corn land was used for production. The resulting soybean crop was consid-

more than 700,000 tons. Although the total grain crop was a record, there were reports that the quality of the crop suffered from the unfavorable weather during harvest. Barley, for example, which is not only a tion at

in the early samples.

mahout a 10 percent higher yield than the

dissatis-

year.

feedgrain but

winter conditions and usually have

Reports suggest

results.

over 3.2 million tons; and corn produc-

beer production and export, contained a

.

experimental,

crops and livestock. By far the largest

discusses the quality of the wheat crop with an agronomist, top left. Wheat output and yields in many areas of Czechoslovakia have been held in check by adverse weather this season. Czech

[d,il974

is still

creases about equally divided between

in-

increase

(tjto

OYBEAN growing

S

occupying about 10,000 hectares in the Slovakian Republic, so far with

creased 4 percent during 1974 with

some

dif-

during drying and storage.

The

pig population continued to

level.

Reflecting the policy to upgrade diets,

red meat production rose 9 percent during 1974 to 1.2 million tons. More than

was accounted for by hog was beef and

half of this

slaughter, while the rest

calves. In 1974, increased production of

red meats further reduced the country’s dependence on beef imports, which have declined every year since 1970.

Because

of

improved

yields,

milk

during the harvest

production during 1974 increased 2 percent over 1973’s. Butter production, on

had

the other hand, stayed the

Sugarbeets. Despite adverse weather to be halted

ture in the fields beets-

— mechanical picking — due to excessive moisproduction of sugar-

reached nearly 8.2 million tons,

more than 33 percent above

the

1973

crop. While production and yields were

1974 between

excellent, the sugar content of the

beet crop

was

poor

relatively



previous

year,

but

same

should

as the

ade-

still

quately cover domestic needs.

Although poultry numbers apparently declined in

1974, sales of poultry for

slaughter gained

6 percent. Increased production of ducks and geese helped

13 and 14 percent against 16 percent in

to offset the decline in chicken

1973.

although ducks and geese account for

Oilseeds.

Czechoslovakia

only a small proportion of

meal needs

—only

produces its

oilseed

about 22 to 30 per-

cent of the protein meal needed for livestock industries cally.

Rapeseed

is

is

grown, followed by

its

produced domesti-

main oilseed and small quan-

the flax

less

than

numbers,

10 percent of total poultry.

Egg production gained by about cent,

due

in

5 per-

large part to higher pro-

duction per hen. Fruits and vegetables. While final

fig-

ures are not yet available for 1974, indications are that vegetable production

I

j

II i

I

May

12,

1975

Page 9

was somewhat higher than in 1973, but was still below the level planned. The fruit crop, on the other hand, was damaged by rain during the harvest in cerReports indicated that a lack

tain areas.

of sunshine in a

number of

rotted away.

As

the past,

in

large

vegetables

in

Czechoslovakia im-

quantities

of

and

fruits

470,000



Hops. The “green gold” crop hops was harvested from about the same

tons.



areas as last year, but apparently with

disappointing results because

it

did not

meet the amount planned. Still, output may have approached 10,000 tons, which would enable the country again earn foreign exchange

in

export mar-

Czechoslovakia usually produces

10 percent of the world’s total and the third largest world producer.

is

— Based on report from Office of U.S. Agricultural Attache,

Vienna

Foreign Agricultural Service

M

exico’s tobacco industry in the past

decade has attained national

sufficiency in

greatly

all

USSR 1974-75 Beet Sugar Output Down One-Fifth 1974-75

refined

beet

production

through

totaled 7.11

million metric tons,

February

self-

tobacco types and has

expanded both

production

its

and exports of hurley.

The highly organized and efficient tobacco production system that fostered the new levels of self-sufficiency and expanded exports was developed and controlled by private tobacco companies prior to late 1972, when the Government of Mexico established an official agency TABAMEX to act as middle-





man between rette

tobacco growers and ciga-

companies and/or

TABAMEX

jointly

is

Government,

Soviet

STEVENS

J.

Foreign Commodity Analysis, Tobacco

amounted

to

kets.

By DANIEL

1974 to meet domestic

needs. In 1973, these imports

to

Keep Industry Viable

areas pre-

vented the crop from ripening and fruits

ported

Mexico's Tobacco Goal:

leaf exporters.

owned by and

growers,

the

tobacco

TABAMEX

functions as an intermi between growers and tobacci companies, contracting with produce; diary

receiving orders from cigaret' companies and exporters, and, in effec' controlling all production and marketii after

activities.

Financing

still

companies,

through

TABAMEX.

vided by

on the industry’s future development. achievement

Mexico’s

of

self-suffi-

TABAMEX

gree of continuity

same period, tobacco exports increased from 19.8 million pounds to an estimated 40 million pounds.

ever, experienced

percent,

compared with 11.9

per-

cent during 1973-74.

Processing of imported raw sugar from Cuba will probably be about the same as in 1974, despite the fact that

is

dramatically illustrated by the drop in

In this

Tobacco production in Mexico during 1974 probably totaled about 150 million pounds 17 percent greater than in 1973 and almost 60 percent above the



level of a

decade earlier

the

Government

of

tobacco



thus enabling

to continue

self-sufficiency

its

policies

and

active

promotion of tobacco exports. Before

the

tobacco

industry

was

brought under Government control, the arrangement for production

traditional

from Cuba, compared with 2.5 million tons in 1973, of which 1.6 million came from Cuba. nearly

all

Page 10

i

key

industi!

control

operation whej

in

from the industry

shifted

*

beginning with organization

In late

1972, this traditional system

was replaced by a 52 percent

State-

'

^

difficulti

between growers and the Governme that delayed planting of the 1973 cro^

A

strike of

workers

at

processing

f

added to TAB/. MEX’s problems, which continued in, the 1974 season as exporters rejects cilities

early in 1974

substantial quantities of burley claim< to be of inferior quality.

During the fall of 1974, a standc between the Government and the t, bacco companies developed over tl 1975 price schedule. Announcement 1975 grower prices was delay(,

pending placement of orders for le tobacco by cigarette companies and e

ing facilities in the production areas.

:

The Government company has, ho\^ some teething pair

of contracts between growers

curing operations, had extensive process-

1.9

| i

i’

million tons of raw sugar,

ported

down an

h.

the

estimated 5 percent from that of the previous year. The Soviets in 1974 im-

is

pr

also

of leaf tobacco in Mexico was a system

and tobacco companies, most of which were foreign-owned. The companies, which financed and supervised growing and

1974-75 Cuban sugar output

which

retained

Government.

11.1

super\

personnel, and thereby obtained a d

from 6 million pounds in 1964 to only 11,000 pounds in 1973.

during harvesting, the average sugar extraction rate declined to an apparent

tl

bacco companies.

future role in

such

leaf imports

Beet sugar production in 1974-75 dropped 19 percent from the previous year’s level and is the lowest in a decade. The poor results followed’the mediocre and delayed 1974 beet harvest of 76.4 million tons. As a consequence of problems of bolting during the 1974 growing season, and adverse weather

by

channek'

Grower

TABAMEX,

sugar

is

is

sion and technical assistance are

ciency and expansion of tobacco exports

ported raw cane sugar from Cuba processed throughout the year.

but

control could have far-reaching effects

com-

processed after February. Im-

provided

is

tobacco

pared with 8.77 million tons the previous year. Generally, very little beet is

Me>H

areas as tobacco leaf prices and quality

The Government’s

1975

stock company, Tobacos

(TABAMEX),

which assum(B respoiisibility for many of the servicH to growers previously provided by tH bacco companies. canos

purchased and now operates the dryii' and packing facilities formerly owne' and managed by the individual tl

companies.

sugar

owned

porters.

The companies refused to knew the prices.

plat

orders until they

TABAMEX

finally released the of:

1975 crop tobacco prices early tl year. The price adjustments ranged fro cial

no change on oriental type to a 38

pc

Foreign Agricultui

i

;

a

over stocks of the 1974 crop. Mexico’s tobacco export market, unlike

the domestic market,

influences to a

is

relatively

is

subject to market

much

greater degree than

uncontrolled, and

the domestic market.

Maintenance and growth of hurley exports depend to a large extent on quality and price. Adverse weather was responsible in part for the lower quality of the 1974 crop, but cials list lax

some

supervision by

industry

offi-

TABAMEX

as a contributing factor.

With hurley outturns expanding in a number of countries including Italy, South Korea, Greece, and Brazil, Mexmust necessarily

ico

product

offer a good-quality

competitive price

at a

if it is

to

maintain a viable export market. Mexico’s centralized tobacco curing complexes, such as this one in green tobacco is received from farms and prepared for curing barns. 3 Ch barn has a curing capacity of about 1,000 lb of leaf tobacco (cured eight) every 4-6 days. Barns are heated in 3 stages: Yellowing (2-3 days days at 140°), and final drying (160°). 1 100”F), drying and fixing color (3

The

t

ayarit,

\

i

I' I

increase

i^nt

on dark air-cured tobacco.

port market

shifted

from Vir-

ginia sun-cured to semishade hurley

sport types.

countries other than the People’s Re-

The 'hich

of

price

Virginia

sun-cured,

accounts for about 40 percent of

^

Mexican tobacco crop, was raised \9 percent to 36 cents per pound. In .eneral, the price increases were con-

fostered by the surge in world defor hurley leaf.

Estimated world exports of hurley by public of China, the Soviet Union, and

Eastern European countries amounted to 221

tjidered to

be in

line

million pounds in 1973

When comparing li'hould

p

prices,

however,

it

be remembered that in addition

the actual price paid for the leaf, the

manufacturers and exporters incur other I associated with procurement of These include service charges paid Ip TABAMEX and costs associated Wosts

nual average of 1965-69.

B

The Government denied manufacturers’

the cigarette

requests

for

higher

countered with an offer of subsidies. qualify for a subsidy, however, a

To

com-

pany must show

—owned can

that it is Mexicanized 50 percent or more by Mexi-

interests.

Virtually

all

the manufacturers were

able to meet the subsidy requirements

y comparison, Mexico’s hurley ex-

ports more than tripled as they jumped from a 10.6 million-pound an-

by late 1973 or early 1974 through merger or the sale of stock to employees, the public, or the Government-

owned Financiera Nacional.

1965-69 to 35.2 million

In addition to the cost-price squeeze,

pounds in 1973 to increase the Mexican world market share from 10 to 16 per-

manufacturers also faced declining sales in 1973 as the Government boosted cig-

nual average

in

The

cent.

came

'ith

Mexican hurley exports are the United States. West Germany, and in recent years Japan. Ex-

"bove the price paid the grower.

ports of light tobacco

Mexico produces a variety of tobacco, pnging from dark cigar types to orien-

ley) to the

ducing sales for the year by 1 1 percent. This reduced sales volume in 1973

financing the growers.

the tobacco, therefore,

The true cost is somewhat

and including flue-cured, sun-cured, i^'nd hurley. The two predominant types sun-cured Virginia, used primarily

t-re !i

domestic cigarette production, and

arette taxes.

Major markets

for



less



(primarily bur-

United States increased from than 3 million pounds in 1969 to

almost 12 million

The

in

1973.

future of Mexico’s leaf produc-

tion for domestic utilization (primarily

Virginia

sun-cured)

is

This market

iiounted

about the same

rate

market, which

expanding

f



iaf

for

66 percent of estimated

production.

Mexico’s outturn of semishade hurley (leached an estimated 35 million pounds ll|i

1974, up from 29 million pounds in

1(973. Production of this type has llian tripled in

rtlay 12,

1975

more

the past 10 years as ex-

strict

mated

An

import controls over leaf tobacco. is

projected

is

as

to

the at

grow

at

cigarette

an

esti-

rate of 3-4 percent annually.

oversupply of sun-cured leaf that

developed this

by

protected

Mjmishade hurley, most of which is exlotted. These two types in 1974 ac-

t,

a severe cost-price squeeze.

;af.

if

i

— more

than double the 106-million-pound an-

with price increases

other producing countries.

to-

prices to cover their increased costs, but

jie

*



The price of semishade cured hurley !*af was boosted 21 percent to 47 cents er pound. Dark air-cured and semi(lade cured hurley are the two primary

t

Mexican

manufacturers found themselves facing

demand

I

move mand

restructuring of the

bacco industry reached the cigarette manufacturing sector early in 1973. Subsequent to the increase in growers’ prices announced late in 1972 for the 1973 tobacco crop, domestic cigarette

in

1974 should be corrected

year as cigarette manufacturers ad-

justed their orders

on the

basis of carry-

effective

tax increase that be-

January

1,

1973, raised

the price of cigarettes by an average 45 percent, and had the consequence of re-

was primarily the result of hoarding prior to the January 1, 1973, tax hike, and does not reflect any substantial or long-term

decrease in consumption. mid- 1974 had recovered to 1972 levels and are expected to be above those of 1972 for the year.

Sales

in

Mexicanization of the cigarette industry has

had

day-to-day

little,

any, effect on the

if

operation

of

the

cigarette

companies. In most cases, management has been left intact, and any changes resulting will likely

from the be

made

shift

in

ownership

gradually.

Page 11

,

1

Brazil’s lint exports during the Janu-

Cotton

Brazil’s

Down

Production

weather

Unfavorable

252,000

about

or

at

1974-

Brazil caused a reduction in the

drop

size of the

was mitigated somewhat when weather improved sufficiently in the Northeast to allow cotton fields to be reseeded.

The reduction

season was only

this

about 4 percent, but it may help to reduce the current cotton stock buildup

from

resulting

1974

a cut in Brazil’s

lint

cotton exports and lower domestic con-

sumption.

1974-75 cotton crop

is

estimated at 2.4 million bales (480 lb

from South

net), 1.7 million

and

Brazil

735,000 from the Northeast. The previous year’s production was estimated at million

South

totaled

bales,

1.6

and

Brazil

from

million

from

965,000

just

same period a year

earlier.

the

Northeast.

Export data

available by country for the January-

1974 period and show the five most important customers for Brazilian July

480 pound

cotton, with volumes in

and

bales

value in thousands of U.S.

f.o.b.

dollars

Soviet Grain Storage ‘

Continued from page 5

bales.

parentheses)

(in

were:

Japan, 42,415 ($11,028); Netherlands, 34,267

Hong Kong, 22,202

($8,551);

($3,663);

the Republic of South Africa,

17,953

To improve planning, modernizatic and implementation of technical a vancements in both storage and proce:^

|

the Ministry of Procurements

ing,

tends to expand institutes.

One

planning

in

staffs

of their to

is

i

major SovI major objectivB in

reduce constructiij

costs.

The

have already allocat

Soviets

about $4.7 billion for the 1976-80 storage project.

About

-

gra^

three-fourths

40 million tons

new

il

($4,273); and West Germany, 17,820

the planned

($4,515).

pacity has been assigned to the Minist,

Exports to the United States totaled only 454 bales, with an

Brazil’s total

2.6

period

80 percent less than the 1.25 million bales exported during the

planting time in South and Northeast

75 cotton crop, but the

1974

ary-July

$101,000, during

With

buildup

exports,

the

brought

total

cotton

in in

for Agricultural Construction.

World Sunflower

consumption and

volume

to

and management practices as w, improved varieties of sunflowers

tural

shortage of data makes an accurate

increase yields.

esti-

Scientists

order to lend some

In

Expor

stocks

December

as

difficult.

Oil

Continued from page 7

an estimated 597,000 bales, although a

mate

co

value of

f.o.b.

this period.

the falloff in

in

in

Romania

both the United

i

Staiii

and

trade estimates. South

support to local farmers, as well as to take advantage of what it perceives to

Brazil’s area planted to cotton in 1974-

be an improved market later this year,

proved yields and disease resistance, the United States, Agricultural Resear'ij

According

to

75 was approximately the same as that

the

planted the previous season. Seed sales

the storage of about 459,300 bales.

were also about equal

that

outturn this season could be

higher.

last

However,

cotton

final

Brazil

financing

is

Office of U.S. Agricultural Officer,

at least as

Sao Paulo

season and perhaps

little

and cooler-

rain

hybil

sunflowers that reportedly exhibit in i

Service geneticists expect yields to

— Based on report from

to last year’s level.

Tradesmen speculate high as that of

Government of

developing

are

^

10 to 40 percent from hybry that are more highly self-fertile, til crease

mature uniformly, and make insect m^^ agement and harvesting more timely a'l effective. I

than-normal

temperatures

time (October-November) quire

some

at

planting

may

later re-

Italy

Is

Big U.S.

Farm Market

Continued from page 4

tons because of reduced 1974 produc-

Planting

1974-75

of the

Northeast

March and continued through June 1974. Heavy rains in April damaged some of the cotton crop got underway

improvement

but

seedlings,

in

weather shortly after the

the

in

of the

start

tion of sugar.

Olive

Production

oil.

in

1974-75

is

estimated at 460,000 tons, only 4 per-

bumper crop

cent less than the

The high output erally

credited

in 1973.

for an off year

the

to

is

gen-

care

better

of

season allowed farmers to replant the

orchards as a result of attractive market

damaged portion of

conditions.

the crop. Despite

replanting efforts, the estimate of 1974-

75

outturn

was

down throughout of the

progressively

season—evidence

the

damage done by

the rain. Current

estimate of 735,000 bales siderably

scaled

is

was in December but a

harvest

have to await to date

consumption. Imports

will also

be affected, with an anticipated drop-off of about

15

percent or

120,000 tons

from the 1973-74

esti-

Wine. Output

1974 is estimated at 64 million hectoliters, about 17 percent

Sep-

less

in

Novemstart. The

until

than

in

level.

1973.

The

quality

is

con-

sidered excellent, owing to a prolonged

summer and

fine harvest.

Market condi-

will

completion, although

pected to increase in value by 5 percent

final

swing

mid-

by

crop estimate

the quality of the crop

is

re-

in normal weather piand thus present a greater risk loss as a consequence of adverse weathL This may be one reason why the USsI, which suffers from wildly unpredictalii weather in its sunflower growing regu,

deviations

to

is

tions,

over 1973, but volume will be

down by

f

i

currently not interested in hybrids.'

The rapid growth sumption

in

were

European

sunflowerseed

of

place during 1966-1970

when

oil

c('-r

to:|'

suppls]

and the average price jf* sunflowerseed oil was about the same|si soybean oil. plentiful

With the from

possibility of increased

traditional producer-expc-

ports ers

in

however, have not met Italian expectations. Wine exports in 1974 are ex-

full

its

of high prices will be a continued decline in

con-

Harvesting should have begun ber because of the crop’s late

foreseeable consequence

first

mate of Northeast output. tember but was delayed

A

down

from the 870,000

sensitia

terns

revision of these early-year

estimates.

Hybrids, however, are more

now

in

doubt,

manufacturers

f

sunflowerseed

identity-preserved

products will either have to seek

i

d

additional sources of supply or reeva

-

commitment to producing sn products. The premium paid for siflowerseed oil in Europe from 6 t(*3 cents per pound above the price p I ate their

^



for soybean oil tive offered



is

currently an inc'-

farmers for increasing

s'l-.'

'

ported as being good.

Page 12

an approximate 10 percent.

flowerseed production.

Foreign Agriculte

.

.

:rops and markets 3RAiNS, FEEDS, PULSES, AND SEEDS

EC Suspends Soft Wheat Export Tender System

,otterdam Grain Prices and Levies

system of weekly tenders for soft wheat exports. The export tender system had been used during recent months because

The European Community Commission has suspended

Current offer prices for imported grain at Rotterdam, the Sietherlands, compared with a week earlier and a year ago:

EC

th

was anxious

A year

week

ago

according to destination.

Cents per bu.

Do/.

on wheat exports

The per bu.

Canadian No.

1

CWRS-13.5

USSR SKS-14

per bu.

1

5.03

-27

5.66

O

C)

O O

-18

3.33

French Milling ^ U.S. No. 2 Dark Northern Spring:

14 percent Hard Winter:

1

13.5 percent No. 3 Hard Amber Durum Argentine U.S. No. 2 Soft Red Winter.

-10

4.57

4.19 6.67

-11 -13

4.51 6.50

fjedgrains: U.S. No. 3 Yeilow corn |i n* i)

1

.

.

.

French Maize ^ Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero

sorghum U.S. No. 3 Feed barley

Ill

.

.

.

O

C)

(')

3.43

-12

C)

3.07 3.02 3.83 3.04

-13 -14 -15

C) 3.29 3.70 3.17

3.04 2.40

-16 -16

3.14 2.68

5.67

-58

6.10

1.71 1.01 1.27

-1-23

.24 .23 .38

-8

2 Yellow import ievies: ''Wheat U.S. No.

'j

liCorn

Sorghum

+ 19 -1-36



S'l-

!l

Decrease

in

vary

was set on April 30 Middle East and Africa. The wheat now around $1.55 per bushel.

import levy

is

to the

Swiss Increase Duty Surcharges

On Major

Grains and Feeds

on major grains and

feedstuffs.

Effective April

1,

the

new

and corn for feed is set at $55.38 per metric ton while oilseed cake and meal is now rated at $102.85 per ton. The previous rates, which had been in effect since January 1, 1975, were as follows: Wheat, $3.96; barley, $15.82; oats, $23.73; corn, $31.64; and protein meal, $71.19. rate for wheat, barley, oats,

LIVESTOCK AND PRODUCTS EC Launching New Beef Import System On April 14, 1975, the European Community

Yugoslav

its

not be authorized

“^heat Production Expected

decided to

ban on imports of beef and live cattle on a limited basis. This action was allowed to stand by the EC Council of Agricultural Ministers on April 30, because the opposition composed of France, Ireland, and Belgium did not have enough votes to overrule the Commission. Under the new “EXIM” system, from June 1 to September 30, 1975, 50,000 metric tons of beef or an equivalent amount of live cattle can be imported. However, these imports will lift



* Basis c.i.f. west coast, England. -tot quoted. jiiNOTE: Price basis 30- to 60-day delivery.

tiiiarp

will

v’tf.

iii)ybeans: IJ

the wheat

Switzerland has sharply increased import duty surcharges

4.55

U.S. No. 2

subsidized and imports taxed in the

largest subsidy, $1.25 per bushel,

heat:

1

now be

previous

May 6 Do/.

will

manner employed by the EC. For example, export subsidy will be announced each day and usual

Change from Item

over exports

rigid control

of stabilizing their domestic market.

in the interest

Exports

have more

to

its



until

proof

is

given that

an equivalent

quantity of beef has been exported without a subsidy. |l

Although the winter wheat crop in Yugoslavia has recovfrom the very poor start last fall, current prospects dicate production will be about a third below the record

j,;d .

|l74 level

of 6.3 million metric tons.

^ction

attributed to a

is

.^iwell as to

The decrease

14 percent reduction in acreage

reduced yields. is

about

1

million

l

jjjlow

the

Ujigoslavia

country’s is

requirements

for

1975-76.

However,

not expected to import any wheat in 1975-76

cause estimated carryover stocks for July

1,

1975 of 1.4

I

j

llion

,|riod

more that four times the level for the same 1974. Wheat imports of 332,000 metric tons are

tons are in

imated for 1974-75.

beef with no subsidy to a third country.

He

will

then bid for

an import license by offering to pay a percentage of the prevailing import levy.

Those traders who

Estimated production of 4.2 million tons j

in pro-

The import licenses will be awarded on a competitive basis. Under the EXIM system, an EC beef trader first must sell

pay the largest percentage of Those who are unsuccessful and do not wish to increase their bids will be granted the export restitution that would have been paid on the original export. Traders who wish to import beef under this system will have to export with no subsidy and pay part of the import levy. Probably, only importers who wish to purchase special offer to

the import levy will be granted an import license.

Page 13

,

high-quality hotel and restaurant types of beef would have

any

program.

interest in this

This

EXIM

proposal

more

is

restrictive

April

totaled only

1975, fresh beef carcasses were selling for

17,

over $1.00 per pound in France. Equivalent U.S. beef carcass prices were between 65-67 cents on the east coast. Prices are

major world exporting countries. The EC importer would have to pay part of the current 51-cents-pereven lower

in the

pound EC levy. The Commission has also decided to allow imports of 67,500 head of young feeder cattle between May 15 and September 30, 1975. The details of this plan have not yet been determined.

15,659 metric tons,

I

19

off nearly

39 percent frc 1973 shipments of 25,452. The recipients of the 1974 expo (in metric tons) were: The United States, 7,642; the Neth^a'

,,

lands, 2,730;

West Germany, 1,668; the USSR, 1,187; Sinjir Kingdom, 533; Romania, 517; Itaj^

pore, 882; the United

413; Belgium, 61; and Austria, 26. Indonesian cassia and vanilla bean exports also were

j:!

sharply in 1974. Cassia shipments totaled 2,788 tons, do

36 percent from 1973 exports of 4,387, and vanilla exports were only 134 tons, compared with 802 in

i

bti 19'..-

However, nutmeg exports rose to 5,207 tons from 4,337 1973, and mace exports amounted to 1,366 tons, compail

'I'l

The Commission

said that a further 50,000 tons of beef

might be allowed after September 30 in

Indonesian exports of black and white pepper in

than the original

proposals that did not require partial levy payment.

On

Indonesian Spice Exports Down Sharply in 1974

September shows

that

a review of the system

if

more imported beef

with 1,022 in 1973.

needed.

is

Nigeria Increases Cocoa

SUGAR AND TROPICAL PRODUCTS

The Nigerian Government has increased the cocoa p.r ducer price by 20 percent to 660 Naira per long ton (48 Sjf cents per pound) for grade 1 cocoa beans; 550 Naira ]m

Indian Jute Industry

Facing Major Problems The Indian

jute industry

its

Under month and

products.

finished

of mounting

pressure

the

In a press release issued on April 5, the Indian Jute Mills

unable to sustain inventory

is

its

to farmers for

jij ,

I

i

I

Thailand Exports of Kenaf Products Reach $35 Million Thailand

sharp declines over the past several months. Association said the industry

pound) was paid

cents per

1974-75 main crop cocoa beans.

demand

stocks from month to a sharp decline in demand from overseas markets, prices of jute goods have recorded

increases at the current rate;

US

ton (40 currently facing the problem

is

of a serious imbalance between the supply of and for

Producer Price

finances have been drastically

credit squeeze, and two labor strikes. Since August 1974, the industry’s finances have been greatly strained by a steady accretion in stocks of both hessian and

depleted by continuous trading losses,

products

exported

in

about

-

81,000

metric

tons

of

ke:fl

1974, mainly bags, twine, and yarns, valued!^

more than $35

million.

Gunny bag

production in 1974

-t

35 percent more than in 1973. Thailand exports most of its kenaf as raw fiber, w!if September-August 1973-74 shipments of around 265,000 tciS

ceeded 144 million

units,



TOBACCO

carpet backing despite an estimated production loss of 145,000 tons during the 48-day strike in January-February this year.

To

salvage the

industry

from

its

present

difficulties

the

Indian Jute Mills Association has urgently called on the Gov-

ernment for some effective measures to bring supply in line with demand. Meanwhile, the joint Government-industry delegation, which recently toured the United States and Canada to make a detailed study of the market for Indian jute goods, has reportedly

recommended

that

the

Government

abolish

the

export duty on carpet backing to preserve the North Ameri-

can

markets for

this

product

against

growing competition

from synthetic substitutes. The present rate of export duty on carpet backing is Rs. 200 (about $25) per ton.

Yugoslav Tobacco Output Expands

^

;

Cigarette production continued to expand in Yugoslaviaia 1974 and was up 11.6 percent to 41.6 billion units. Filt|-^ tip cigarettes accounted for about 94 percent of the total

li

Consumption of

cigarettes also increased about 11 perc.it

over the previous year. There

is

a continual shift

in

fa

and consumption of American-type blend Some nine brands of American-type cigarevS

of production cigarettes.

are being produced under license arrangements.

Exports of fermented tobacco and manufactured tobao products were also larger in 1974. Exports were up 7.6

Sri

cent totaling 41.5 million pounds with the increase mainlyoli.

Lanka's Tea

Production

Egypt.

Down Lanka’s 1974 tea crop totaled only 204,038

metric tons, off 3.5 percent from the 1973 harvest of 21 1.271. Sri

in 1974 amounted to 175,405 from 1973 shipments of 205,515.

Lanka’s tea exports

down Sri

15 percent

Lanka

is

tons,

the largest supplier of tea to the United States.

Lanka

1974 totaled 19.575 tons valued at $21.6 million. Total U.S. tea imports in 1974 were a record 80,846 tons valued at $79.3 million. U.S. imports of tea from Sri

Page 14

15

million

pounds were purchased by

in

el

higirj^

guaranteed purchase prices for growers of tobacco and is

expected to expand production.

were raised from 26 percent

I

:

Recently the Yugoslavian Government announced

Reflecting less favorable growing conditions and reduced fertilizer use, Sri

About

United States.

to

Minimum 71

support

isj'

priisl

percent, depending

variety, with the largest increase in the 'Virginia variety.

^njf ’

Increases ranging from 17 to 24 percent in retail cigar

:e|'

were also announced. The extra funds have been de;nated primarily for production and export promotion )f“ 7 tobacco and tobacco products. prices



Foreign Agriculf e

West German Tender For Canned Pears Announced

AND PRODUCTS

)ILSEEDS

The West German Government has announced rgentine Oilseed Crop

port licenses will be accepted until an undisclosed value limit

Mixed

i»o-ospects

In Argentina, production of peanuts, soybeans, ;d tjjt

expected to

is

rise

this year,

and

but sunflowerseed output

^(|'75 in e:

Sunflowerseed, 825 (1,000); peanuts in

shell,

400 (290);

ybean, 475 (450); and flaxseed, 370 (297).

Planted sunflowerseed acreage was off 6 percent and an ex-

summer

'“liided

drought,

particularly

in

:rease in planted peanut acreage

1



Province

the

An

lenos Aires, has adversely affected the crop.

and improved weather

j||ed

good

yields.

in

Planted flax-

acreage increased 25 percent.

jjL

AND VEGETABLES

NUTS,

?RUIT,

kilograms

(9.9

lb).

Products

subject to the application of

added

containing added sugar are European Community’s sugar-

levy.

of

Planted soybean acreage was off 12 percent but

intially. j

j^vorable weather should guarantee

1975. Licenses issued will be valid until September 30, 1975. Canned pears must be packed in containers of less than 4.5 25,

8 percent

Province of Cordoba should increase peanut output sub-

e

reached, but will not be accepted later than September

is

flax-

drop considerably. Argentine oilseed crop prospects for 1,000 metric tons (last year’s output in parentheses)

ll

a tender

allowing imports of canned pears from a large number of countries including the United States. Applications for im-

West Germany Seeking Canned Cherry Imports West Germany has announced a tender allowing imports canned cherries from the United States and Canada. Canned cherries must be packed in containers holding 4.5 kilograms (9.9 lb.) or less and fruit may be packed with of

or without sugar.

Applications for import licenses will be accepted until an undisclosed value limit

Expecting Surge

hile

ber

Canned

I

Output

Fruit

is

reached but not later than Decemmonths.

1975. Licenses issued will be valid for 3

Country of shipment and country of origin are required

1975 canned deciduous

Chilean

Ijjl;

18,

fruit

production

is

esti-

at 700,000 cases (basis 24/2‘/2’s) 11 percent above 1974 output of 629,000 cases. Weather conditions were ported excellent during the growing season and fruit

to

be the same.

((jiated 4 ^fe

I

good.

i|iiality is

1975 estimates by item, with 1974’s in parenPeaches, 474,000 (421,300); marmalades, 46,000 (42,600); and other fruits and juices, §8,000 (164,600). jp Chile is not a major exporter of canned deciduous fruit, alendar 1974 exports of canned peaches totaled 80,800 ises compared with 18,300 cases in 1973. Individual

ii|

eses are as follows (in cases);

w)iirgentine

iipws :

Dried Fruit Crop

Gain

I rgentine

itf

ns of raisins

tt!”

at

at

3,400 metric tons and prune

5,300 metric tons. Production totaled 3,300

and 5,000 tons of prunes

in 1974.

Argentine exports of dried fruit totaled 4,585 metric tons calendar 1974, 3 percent above 1973. Brazil accounting for over half of total exports.

Jifarket

Germany

ilf'est

Zest .S.,

is

the major

Mexico and

are next in importance.

Wax

j,

,

Beans

West German Government has announced a tender lowing imports of canned wax bean cuts from the United ates and Canada. Applications for import licenses will be accepted until an

jjiidisclosed ;r

25,

value limit

1975.

is

reached but not later than Septem-

Import licenses

Secretariat including compiling a fied

under

GATT

,ay 12,

1975

groups

to continue

will

certain tasks to the

list

GATT

of safeguard actions justi-

and describing how safeguard measures have

affected developing countries.

include measures

The work program agreed upon

applied

to

agricultural

commodities.

In the first meeting of the quantitative restrictions subgroup of the nontariff measures group, the European Community backed away from its insistence earlier in the month that

all

consideration

of

measures concerning agricultural

in the agriculture

group.

issued

will

be

valid

until

on agricultural products in the quantitative group and the intention of other countries

restrictions subto consider

such

restrictions in the agriculture group.

The group on pilot

sectors asked the Secretariat to complete a

study before

the

group’s

next

meeting,

Secretariat will present relevant trade and

the ores, metals, and metal products sector.

jj

iptember 30, 1975.

Negotiations

The subgroup agreed to a chairman’s summary that indicated the intention of some countries to consider restrictions

pj-j'The

I

Trade

The group on safeguards agreed

commodities be

Germany May Buy Canadian

met in and perhaps complete at its next meeting on June 30 its examination of present General Agreement on Tariffs and Trade (GATT) safeguard procedures, notably under Article XIX. Then it will begin to examine how present inadequacies could be Multilateral

Several

April.

The safeguards group assigned

crop of raisins and dried prunes. Current estimates

oduction

Several Multilateral Trade

Groups Report Progress

corrected.

1975

1975 raisin production

St.

:

for

Favorable weather conditions contributed to a larger 1975

fijjace

GENERAL

July

1.

The

economic data on Its

study will not

include negotiating hypotheses.

Page 15





DEPARTMENT OF AGRICULTURE

U.S.

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Foreign Agricultural Service, Rm. 5918 U.S. Department of Agriculture Washington, D.C. 20250

FOREIGN AGRICULTURE

South African Citrus Industry Had Record Year «



,

however, exported citrus

South African citrus exports, reached a record level in 1974, hut it is still too early to determine what effect the lower

sold

the

at

much

will

have to be

higher prices to realize

same net income from new season

fruit.

however, were down considerably and

continuing effort to

stocks are high.

tion economically viable to both farm-

With slimmer competition in 1974 from Israel, Spain, and Morocco whose late harvests usually compete

ers

with South Africa’s early consignments

port sales.

The processing industry make

settled sors,

important new market developed



is



u

were considerably improved juice sale; on the local market, which took abou

50 percent of production

as part of a



the result

trying to orgaprice for

o'

tht

Citrus Board.

The

juice produc-

much lower producer

industry

Citrus

recognizes

th<

growing importance of the processec product, despite some inherent draw backs

in the

country’s juice production

slumping ex-

These include widely distributed pro

The matter wjll have to be between the Board and proces-

duction, a short season, high acid con

the 1975

export demand.

An

and processors

nize a

Africa could not always meet

1974

stepped-up promotional efforts by

1975 crop anticipated will have on exports this year. Processed citrus sales,

—South

in

who

season to boost

play a big part in stabilizing

the fresh markets and clearing the crop.

and a high percentagi

tent in the fruit

of navel varieties not suitable for proc essing.

which took 7,750

Processors took about 33 percent of

metric tons; the Citrus Board plans to

the crop in 1972 and 1973, and are ex-

to be smaller than the record

1975. Outside the United

pected to have taken about the same

duction of 724,857 metric tons. Frui

unexpectedly

double sales

in Iran,

in



Kingdom and Europe, Japan and Can-

quantity in

ada again took small quantities of fruit that otherwise would have stayed home.

pending on the amount taken up under

South Africa’s usual export markets Kingdom and Ireland, which in 1972 and 1973 took something nent



total; the

especially France,

the Netherlands

percent

—which

metric tons of oranges delivered to canners in 1975 (compared with

Conti-

Germany, and absorbed 55.5

of lemons (7,000 in 1974). These

can deliver export pool

Total income from citrus sales passed

RlOO

in

1973.

intake.

More than R90

million

came from overseas

prices

were the highest yet

sales

where

'

export

Rl=$1.47255

Page 16

costs

realized.

as of

during

on

Because of a special

late deliv-

mean less fruit of export quality The 1974 crop may be even larger whei all statistics

new plantings, it is though some orange trees have been up rooted, and lemon and grapefruit plant

significant

that

ings increased

may



the latter a factor tha

cause marketing problems.

The South African citrus industry modern up-to-date sector of the Sout

i

a

Principal markets for citrus juice in

1973 were the Netherlands (R1.3 mil-

order. Containerization of export fru

worth of concentrated orange juice) and the United Kingdom (Rl.l million of concentrated and nonconcentrated

should be

orange juice). Balancing *

are available.

Although the Citrus Board has not di vulged any new tree census statistics, o

use of the most sophisticated productio and marketing techniques. Drip irrig; tion is coming into common use an disease and pest control is of a hig

produce a

factories are able to

lion

March 1975.

also expected to be smaller, whicl

is

should

African agricultural economy, makin

better product over a longer period.

1975,

expectei

1974 pro

orchards on the trees for later de-

livery,

of total income. Because of sharp inin

left

is

ery price aimed at leaving fruit in special

Showing the dominance of the export market on South Africa’s citrus industry income, the 49 percent of the crops exported earned more than 90 percent creases

fruit

size

trees out of season to increase factory

mark' for the first time during 1974, more than R23 million million

higher than

fig-

ures are subject to change since farmers

cent in 1973).

the

177,000

1974); 38,000 metric tons of grapefruit (47,510 in 1974); and 4,600 tons in

1973; and Canada (4.36 per-

in

or even higher de-

exemption of Citrus Board control. Preliminary estimates show about 160,000

are the United

under one-third of the

1974

Citrus production in 1975

U. S.

common

next few years.

practice within

— Based on

report

th

froi

Office of U.S. Agricultural Attacli

the

poor export picture

GOVERNMENT PRINTING OFFICE

:

1975 582-192/43

Pretor

Foreign Agricultui

]