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

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

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FORtIGt AGRICULTURE April 27,

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Variety Meats

in

World Trade

'

Canadian Agricultural Situation Foreign Agricultural Service U.S. DEPARTMENT

OF AGRICULTURE

FOREIGN AGRICULTURE •

VOL. VIII

The Story of the In World Trade

2



No. 17

1960’s: U.S. Variety

Meats

West German Use

EC

Stockpiling Meas-

Little

Machines Capture

of

IN 1960’S

MILLION POUNDS

Butch Agriculture: Exports and Prosperity By Brice K. Meeker

7

VARIETY MEAT EXPORTS

TO MAJOR MARKETS

— A Year of Bad

Weather and Policy Change 6

U.S.

By Ivan Johnson

Tunisian Agriculture in 1969

5

Story of the 1960's:

April 27, 1970

Mexico

20

-h

ures

On

8.

India’s

Farms:

Bigger Share of Hard

Work By Bes Raj

Gulati

Attache’s Office in Ottawa Reports News of Canadian Agricultural Bevelopments

9

Honduran Agriculture

11

in

1969:

A

Year

West Germany 60

of

Bifficulties

European Trade Gets U.S. Recipes To Boost

13

Wheat Use Crops and Markets Shorts

14

This week’s cover:

A

tractor rolls across a Saskatchewan wheat For news of developments important to the Canadian grain industry and other aspects of Canadian agriculture, see the group of articles

field.

beginning page

Clifford

10.

M. Hardin, Secretary of Agriculture

Clarence D. Palmby, Assistant Secretary for International Affairs

Raymond

A.

and Commodity Programs

Ioanes,

Administrator,

Foreign

Agri-

cultural Service

Editorial Staff:

Associate Editor: Faith Payne,

Ann

Janet F. Beal; Assistant Editors: L. Barr, Margaret A. Weekes,

Marcellus P. Murphy, Jane V. Foster, Katherine Janka.

Advisory Board:

W. A. Minor, Chairman; Horace

J.

R. DeFelice, James A. Hutchins,

Krogh, Robert O. Link,

J.

Davis. Jr.,

Anthony

Kenneth K.

Donald Looper, Donald

M. Rubel, Dorothy R. Rush, Raymond Quentin M. West, Joseph W. Willett.

E. Vickery,

Use of funds for printing Foreign Agriculture has been approved by the Director of the Bureau of the Budget (May 1, 1969). Yearly subscription rate, $10.00 domestic, $13.00 foreign; single copies 20 cents. Order from Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. Contents of this magazine may be reprinted freely. Use of commercial and trade names does not imply approval or constitute endorsement by USDA or Foreign Agricultural Service.

Page 2

960

1962

1964

1966

1968

1968 and 1969 preliminary.

Foreign Agriculture

U.S. Variety

Meats

IVAN JOHNSON

By

Livestock and

The export

offals

Meat Products

Division,

FAS

demand

the

first

is

one

3 years, rapid expansion

accompanied by growing pains in 1963-64, a decline in 196566, and recovery at the close of the decade. The image of U.S. variety meats also changed during the ’60's. For a time the U.S. products were regarded as ugly ducklings when compared with their competition from other countries. However, they emerged from the decade with a top-quality image after undergoing a determined preening effort administered by the U.S. meat industry.

While Europeans have long afforded variety meats a con-

capita consumption has remained rather static at

10 to 11

pounds for the last 10 years. This is one reason why the United States, which is the largest producer in the world, is also the world’s largest exporter of these animal byproducts. Classified as edible offals in statistical tabulations, the

major

commodity group are livers, tongues, kidneys, Of lesser importance in foreign trade but also

items in this

and

heart.

spleens,

How

this

category

and cheek,

are

gullet,

brains,

sweetbreads,

tripe,

tails,

and head meat.

important are they to our livestock economy? Ex-

tremely important, considering that

we produced around

2.4

pounds in 1969, equivalent to approximately 7 percent of total red meat production. Exports were 240 million pounds valued at $62 million, 11.3 percent of the $547.7 million worth of all livestock and meat product exports. billion

It is not surprising, therefore, that U.S. producers of variety meats turned with interest to the growing demand in Western Europe and the United Kingdom following World War II. During this era, total world consumption of variety meats

underwent expansion largely because they were more readily available and cheaper in price than other meats in a war-weary world tired of, yet confronted with, further food rationing. High in protein, low in fat content, and rich in minerals and vitamins, variety meats found favor among increasing numbers of people. Consequently, the United States in the early 1950’s experienced an overseas

“fifth

quarter”

U.S. packers are well aware of the value of the “fifth quarter,” as tionally

it

is

often referred to by the trade. Packers tradi-

have looked

demand

for

its

variety meats.

duction and entered into competition with the United States for the world market.

Competitors and markets In addition to the United States, the major producers and exporters which figure in international trade in variety meats are Australia, New Zealand, Argentina, Denmark, and Ireland. Australia, New Zealand, Argentina, and the United States supply beef variety meats to the large U.K. market, while most of that market’s pork variety meats come from Denmark. Europeans frequently consume more pork than beef variety meats with the United States and Denmark the largest suppliers.

much

to the

income from

sales of the hides

and

is

A

large

share of U.S. exports

France, the United Kingdom, the Netherlands, and West

Germany have been our throughout the I960’s, but

moved

into fifth place.

best it is

It

markets for variety meats

interesting to note that

Cilf rpiiijjfs

mm

Mexico

imported 3.5 million pounds

in

1960 and 24 million in 1969, recording the largest percentage increase of any country buying from us. Nearly all importing countries impose some sort of restriction for the purposes of protecting their

own

Members IliHirtflJtS

canned;

is

processed into sausages and pates; lesser quantities are

sold over retail counters in their natural state.

has

Valuable

or “drop” to cover their operating expenses and pro-

In the late 1950’s other countries began to increase their pro-

spicuous spot on their menus, Americans have been slower to incorporate them into family meal planning. Our annual per

within

World Trade

vide profit margins.

story of U.S. variety meats in the 1960’s

of stages: increasing

in

of

producers, con-

London

s

meat trade look over the line of U.S. variety meats on display at the Smithfield Meat Market in September 1965. The display and a 3-day seminar at the U.S.

Trade Center in London improvements in packaging and a general shaping up of the U.S. products which have led to

revitalized exports.

April 27,

1970

Page 3

serving foreign exchange, controlling disease, and maintaining

Kingdom, U.S.

animal health. U.S. pork variety meats are currently barred by such countries as the United Kingdom because of the

ardize

presence of hog cholera in our country. Elimination of this

animal disease within the next few years will generate foreign

buyer

interest.

bans the import of meat derived from

Italy

animals fed growth-stimulating hormones; hence, U.S. variety

meats are not permitted entry. Generally speaking, however, as a result of negotiations under the GATT agreements, variety meats move rather freely in international trade with relatively moderate duties attached.

Surging exports and repercussions In 1960, our exports of variety meats were approximately 125 million pounds, and shipments remained fairly constant

1964 when there was a sharp upturn to 231 million pounds. This rapid expansion occurred as U.S. prices of choice until

fed steers dropped from an average of $27.67 per hundred

weight in 1962 to just under $24 in 1963 and to in the spring of 1964. Unfortunately, the heightened

demand

less

than $21

for variety meats

during the early years of the decade just concluded brought

about a situation where some U.S. production not representative of the normal excellent quality sold in the United States

world markets. Accusations were made was “dumping” inferior products which could not be merchandised domestically. On the other hand, some importers sought to purchase at the lowest price possible without reference to quality. However, protests were frequently lodged if subsequent shipments were lower in quality than was expected. Justifiably or not, U.S. variety meats acquired a stigma which resulted in their sale at discount prices in foreign markets in comparison with those from competitors. The decline in 1965 and 1966 of U.S. variety meat exports, when world demand was exceedingly high, may have been partially caused by a general impression in foreign trade circles that American variety meats were lower in quality than

found

way

its

into

that the United States

those from other countries.

Inasmuch

as the

United Kingdom

is

our second most im-

portant market and U.K. importers were growing increasingly critical

of the quality of our merchandise, the American

Meat

and FAS planned and organized an exhibition of variety meats in the London Smithfield Meat Market in September 1965. U.S. firms operating in that market set aside a Institute

portion of their

stalls

for a display of U.S. products.

seminar was conducted to

which

at the

U.S. Trade Center in

A

3-day

London

British importers, manufacturers, chain store repre-

sentatives,

and butchers were

invited. U.S.

and U.K. industry

representatives and government staff took part in the discussion

and exchange of views. The objective was to enable U.K. spokesmen for the various end-users to describe defects in the U.S. variety meat trade and suggest how improvements could be implemented which would revitalize imports of the U.S. product. U.S. participants discussed supply situations and U.S. operational procedures in slaughtering, inspection, and marketing. Some of these were not compatible with U.K. market preferences, and innovations were needed if U.K. requirements were to be met. The sharpest criticisms leveled by the British were the lack of product uniformity, inconsistency of packaging, and the erratic price and supply picture. It was apparent that for our variety meats to meet the competition from countries enjoying a price preference in the United

Page 4

their

would have to upgrade and standand correct wrapping and packing

suppliers

product

deficiencies.

To convey

the concern over the decline in imports of U.S.

variety meats to

FAS— —sponsored

U.S. exporters and packers,

operation with the American

Meat

Institute

in co-

a

variety meats conference in Chicago in February

1966 as a followup to the U.S. variety meats exhibit and seminar which had been held in London. Frank Gerrard, a member of the British Institute of Meat and former head of the Smithfield College of Meat, presented the case for the overseas importers and illustrated areas where improvements could readily be made by American packers and exporters. Since this was a seminar for industry, representatives of U.S. meatpackers and of the associations serving the meat packing and processing industry were present and made valuable contributions to the discussion. Many factors were covered including preferable methods of packaging; size and weight of pack; number of pieces and preferred placement in the pack; the advantages and disadvantages of various kinds of material used in packaging; and a recommendation that cloth and/or plastic tape rather than metal straps be used as binders so that cartons

would be

staple free to avoid the risk of metal objects in

finished products.

The importance of quick removal from

the

carcass and of proper chilling and packaging so as to avoid

was stressed. Participants agreed image could be improved by careful handling and avoidance of procedures detracting from the appearance and

discoloration or off-condition that product

use of the product.

Recovering the quality It is

name

a tribute to the U.S. meatpacking industry that

it

has

acted to correct the deficiencies which were brought into the limelight by the exchange of views during the exhibitions

and

1965 and 1966. The numerous complaints by importers over quality have declined substantially, reflecting the improvements which U.S. suppliers have made in their export pack. Importers who have been willing to pay higher seminars held

prices for

in

improved quality and uniformity have discovered

that the United States

is capable of providing what they want. Although earlier disputes frequently developed from a lack of communication, the exhibits, seminars, and contacts within the trade itself have contributed toward considerable improvement in understanding. Exports of U.S. variety meats grew in value from $25 million in 1960 to almost $62 million in 1969. Average export prices of all variety meats rose by 25 percent in 1965 over 1964 and have remained relatively stable since that time. The sharp increase in export value which occurred in the mid-sixties and which has since been retained is due partially to increased exports but primarily to higher

average prices.

With domestic consumption of 11 pounds per capita, the is utilizing around 90 percent of total annual

United States

production. Variety meats have increased in popularity in the

United States

in recent years. Therefore, the prospect of

substantial increase in supplies for export

is

any

unlikely. Since

1964 the volume of exports has ranged narrowly from 231 pounds in 1964 to 240 million in 1969. However,

million

with the outlook bright for a continued stable level of exports, U.S. variety meat suppliers can be expected to continue their policy of providing overseas markets with the quality produce

which

is

same high-

available to domestic users.

Foreign Agriculture

Tunisian agriculture

A Year of In

was a

1969—

in

Bad Weather and

1969 Tunisian agricultural production declined. This result of extremes in the weather which ranged from

drought early in the year to the heaviest rains during the last half of the year. Total grain

centuries

in

production

dropped 13 percent; production of pulses dropped 10 percent; and the production of olive oil and citrus was down about 55 percent and 7 percent respectively from 1968. Partly balancing these decreases in the minds of the people was the official movement away from the cooperative system of farming toward the private

—a

result of the

continued wide-

spread dissatisfaction with cooperativization by Tunisian agricultural producers ties

exist

and trade groups.

A

number of

uncertain-

regarding the policy to be taken in restoring the

private agricultural sector. Nevertheless, the general feeling

seems

to be that

away from

any inconvenience resulting from the move

the cooperative system will be

more than

offset

by the benefits of the private system.

The

slight to considerable

of principal Tunisian grains

reductions in the 1969 harvest

and pulses

ous drought conditions during the

first

reflected the continu-

part of the year. Total

wheat production for 1969-70 is estimated at 350,000 metric tons 80,000 tons of soft wheat, 270,000 tons of durum harvested from about 1.58 million acres. This compares with the 1968-69 harvest of 383,000 tons 63,000 tons soft and 310.000 tons durum from about 1.6 million acres. Barley production at 70,000 tons was nearly one-third below the 1968 harvest of 100,000 tons. The 1969-70 crop was harvested from about 852,495 acres, only slightly less than the 864,850 acres harvested a year earlier. The pulse harvest was moderately lower than in 1968 (26,600 tons, compared with 29,600 tons); acreage, however, was near the 1968 level of about 185,325







acres.

Government support prices to producers for the 1969 crop were equivalent to $83 a ton for soft wheat and about $92 a ton for durum. Barley prices were set at about $54 a ton. In 1969-70 import requirements are forecast at 430,000 metric tons of wheat and 80,000 tons of barley. The olive crop which was harvested suffered from both weather extremes. the

ripening

And

olives

the excessive rains not only

but also led to floods which

cases destroyed the olive trees.

The 1969 crop

is

is

that

1969 was an

off

The

Most exports

trees.

are to France, Italy, and Libya.

1969-70 citrus crop is forecast at 72,000 metric tons, down about 5,000 tons from 1968-69. Fairly large fluctuations have occurred in harvests of past years. Recently, however, the pressure for cooperativization has led to uncertainty and loss of management incentive by producers, and this total

April 27,

now

1970

have, eventually the bulk of citrus will be marketed

through

UCCFM

because of

zational ability. In 1969

past experience and organi-

its

UCCFM

carried on limited pointpromotion in importing countries for citrus, particularly oranges; it hopes to continue and expand these promotional activities as soon as its role is clarified. In 1968-69 citrus exports were estimated at about 30,000 of-sale

They

tons.

are forecast at about the

same

level for the cur-

rent marketing year.

Approximately 80 percent of the 196869 exports consisted of oranges. Practically all that remains from production and exports is consumed locally as fresh fruit; very little is processed. There are very limited facilities

for citrus processing in Tunisia.

During the

floods, 15,000 to

pear to have been

lost

20,000 head of livestock ap-

—mostly sheep and

The

goats.

overall

has been somewhat offset by greatly improved grazing

loss

conditions



a result of sufficient soil moisture.

The Current

Four-Year Plan envisions 100,000 head of cattle on planned feeding by the end of 1972. The Government of Tunisia feed mill capacity will be expanded by the end of 1970 from the present level of 30,000 tons annually to 50,000 tons.

The agricultural cooperative movement at its peak involved a total of about 6 million acres and was scheduled to encompass all agriculture in Tunisia by the end of 1969. Now that this isting

tural

program has been de-emphasized, the records of ex-

cooperatives are being examined to determine which

law of September 20, 1969,

All fruit and vegetable farms; and land.

When

as of

January

tives;

now

the reassessment 1,

first

set forth certain categories

producing from irrigated began cooperatives existing

all

1969, could continue to function as coopera-

the reassessment involves

all

cooperatives. Prob-

—two—and which have

ably only those units which are operating at a profit thirds are reportedly operating at a loss

the

support of their members will be able to continue.

estimated at somewhat over 2.4 million acres,

Exports are not expected to be more than 15,000 metric tons during the 1969-70 season, compared with 32,000 tons in 1968-69.

each of the three sectors. Management of the UCCFM believes that even with the freedom of choice that producers

of farms that would revert immediately to the private sector:

Trade sources believe that with the current soil moisture, the 1970 olive crop could exceed 500,000 tons with an oil yield of up to 120,000 tons. The surface under olive is



estimated

year for olive pro-

with an estimated 35 million producing olive

fruit.

With the move away from cooperativization, the marketing of citrus which in 1969 was the responsibility of the fruit and vegetable marketing cooperative (UCCFM) solely, will be divided into three sectors: the UCCFM, private, and the Societe Tunisienne Industrie Laiterie (STIL) a government organization which started as a dairy products organization and has now branched out. At the present time, it is difficult to determine the portion of fruit that will be marketed through

holdings will be returned to private ownership. The agricul-

duction.

production

has resulted in reductions in both quality and quantity of the

Tunisian

damaged in some

at only 125,000 metric tons with an expected oil yield of 25.000 tons, down sharply from the 275,000 tons of olives and 55,000 tons of oil in 1968. Another reason why the

crop was so small

Change

Policy

It is still

too early to determine the

amount of land

actually been returned to the private sector, or

that has

how much

is

be returned by the time the government completes evaluation of the cooperative establishment. Despite the

likely to its

uncertainties as to the functions

various sectors, support of the

and

responsibilities of the

new government

policy

is

en-

and should be reflected in overall improvements in agricultural production and marketing. Based on dispatch from Dudley G. Williams U.S. Agricultural Attache, Rabat

thusiastic



Page 5

Dutch Agriculture: Exports and Prosperity By BRICE K.

MEEKER

products such as tomatoes and cucumbers found ready mar-

U.S. Agricultural Attache,

The Hague

A

apple crop, however, in Western Europe had good apple production, has made Dutch apple prices plummet. On the other hand, a 1969 pear crop only about half as large as 1968 helped pear prices recover from poor 1968 levels. A large uprooting program being undertaken under a national premium system caused continuing preparation during 1969 for producer cutback in orchard area. Between August 1969 and the end of the year, applications were made to remove about 32,000 acres of old apple and pear orchards approximately one-third of the total apple and pear acreage

kets.

large

in

Evaluation of agricultural performance in the Netherlands 1969 indicates solid advance because of increased exports

minor production decreases for some items, domestic and changes in the currencies of major customers (revaluation of the German mark and devaluation of the French franc). Growth in exports of livestock and poultry products was particularly important. Dutch agricultural exports reached the record value of nearly US$2.7 billion in 1969 and were 15 percent greater despite

inflationary pressures,

1968. Further, the strong competitive position of the Netherlands within the Common Market was illustrated by an

than

in

even larger percentage of total farm exports going to Community partners in 1969 (65.0 percent). Both because the Netherlands has an expanding economy and because Dutch export agriculture needs such commodities for efficient conversion-type production and growth, agriculfrom the 1968 tural imports increased sharply 21 percent



level to a value for



1969 of approximately $1.8

billion.

The

U.S. share, however, of total farm product sales to the Netherlands declined from 22.7 percent in 1968 to 17.9 percent in 1969; and the total value of U.S. sales slid from $329.8 million to $314.8 million. The reduced U.S. share was chiefly owing to smaller imports of U.S. corn for feed while the

Dutch bought low-priced European-grown feed wheat.

efforts.

poultry industry

is

the fastest growing of

rest of

Netherlands.

Numbers

of dairy cows were up 2.9 percent at the end of comparison with 1968 and deliveries of milk to factories were up about 3 percent. Milk yield per cow edged down in 1969 because of a relatively poor pasture season. Moderate shifts occurred in the manufacture of dairy products in 1969: butter output was down 6 percent in compari-

1969

in

son with 1968; cheese production rose 6 percent; outturn of nonfat dry milk fell 16 percent, but that of dried whole milk

climbed 27 percent; and condensed milk production increased 3 percent. Despite the drops in manufacture of butter and nonfat dry milk, stocks of both commodities were greater

at

the end of 1969 than in 1968.

Dairy production exports held up well

Common

other

to

Market

countries.

in

1969, especially

For example, cheese

shipments during calendar year 1969 were 163,500 metric tons compared with 152,800 tons in 1968.

Commodity performances The

in the

(475,000-metric-ton)

which most of the

a year in

Dutch farm

Estimates are that broiler numbers during the second

Although than

in

total cattle

and hog numbers were greater

in

1969

1968, total pork, beef, and other red meat production

about 2 percent. Veal production, however, increased about 5 percent. At the same time, meat exports are estimated to have been around 8 percent greater in 1969 than in fell

half of 1969 were 14 to 15 percent greater than during the

comparable period of 1968. Layer numbers for the same intervals were about 20 percent higher in 1969 than in 1968. In spite of such a production upswing, prices have remained fairly firm due to in-country demand and increased exports. For calendar year 1969, exports of poultry meat were 7 percent greater than for the same period in 1968 and totaled over 170,000 metric tons (slaughter weight). For the same intervals, egg exports were about 14.5 percent greater in 1969 than in 1968 and totaled well over 1 billion eggs. Germany was the chief market for both items, taking 90 percent of Dutch poultry meat exports and 81 percent of egg shipments. Figures on the incubation of broiler and layer eggs during the last half of 1969 indicate that expansion of the

poultry industry

is still

Dutch

in progress.

Field crop harvests suffered

somewhat from unusual weather

1969 growing and harvest seasons. Total grain output in 1969 is estimated at 2.5 percent less than in 1968. The chief cause of the decline was wet weather just when spring wheat and oats should have been harvested in the northern part of the country. The potato harvest also was smaller in 1969 than in 1968. In addition much grain had during the

volume of the wheat crop will be useful only as feed. However, the sugarbeet harvest was bigger than ever and took place under very good weather conditions. Results of horticultural efforts were mixed in 1969. Specialty crops such as bulbs and cut flowers and hothouse sprout

damage from dampness, and

Page 6

a large

1968. Export of pork and slaughter hogs to France was responsible

for

much

of the gain,

although veal export

in-

creases were also substantial.

Because of high in-country market prices, imports of beef, beef and pork offals, live slaughter cattle, and young calves for veal production

and pork

offals

all

Production, export,

From

increased.

The U.S. share of

the beef

markets was about 50 percent.

and import outlook

current poultry industry statistics on increased hatch-

and laying stock, it appears that broiler of 1970 could be as much as 15 percent greater than during the last half of 1969 and that egg production for the first half of 1970 could be up to 20 percent larger than the 2.1 billion eggs produced during the ings of both broiler

production

first

in the early part

half of 1969.

Export prospects for both eggs and poultry meat are good especially to

uct customer. agricultural

Germany, the Netherland’s chief poultry-prodGermany’s 8.5-percent transitional levy on most

imports,

in

force

German mark, was removed

since

the

revaluation of the

end of 1969. The Dutch strengthened by this change.

at the

poultry-product export position

is

Another lift to exports is a recent contract for 12,000 metric tons of Dutch poultry meat for the Soviet Union. Red meat production in the Netherlands in 1970 is expected to increase about 4 percent from the 1969 level, and Foreign Agriculture

As output

gains in pork output will probably be the strongest.

Netherlands should ease somewhat. Also, export pull on Dutch pork may be less in 1970 than in 1969 because of increased pork production in EC imincreases, high prices in the

porting countries, such as France and

Germany.

The United

States should

make something

comeback

of a

year in sales of both wheat and corn to the Netherlands.

High-quality U.S. wheat should do relatively well because of availability of wheats of comparable quality from competing exporters. Corn sales should increase both

the decreased

West German Use

of



in combination with Intervention A and storage of grain to keep excess grain off the German market for the first months of the marketing year. Intervention B has had the double purpose of relieving the precarious storage situation and protecting the German grain industry from the price-lowering effects of the country’s

174/67, has been used



federal purchase

currency revaluation.

The German

tunity of Intervention

was quick

B and concluded

to grasp the

this

it

all

grain intended

market moved either into Intervention A or B. Major features of the special stockpiling measures are: • The Import and Storage Agency for Grains and Feeds was into Inobligated to take Intervention B grain if offered tervention A beginning December 1, 1969. For this grain, the Agency had to pay through March 31, 1970, the original stockpiling price plus monthly increases of $1.04 per metric ton for wheat, $0.93 for rye, and $0.82 for barley. These monthly increases corresponded to the monthly step increases in the intervention prices which were established prior to the deutsche mark revaluation, except for barley where there was originally no step increase established for September. • The Import and Storage Agency had to pay storage premiums on grain delivered in February and March for each calendar month the grain was under a stockpiling measure: $0.48 per metric ton for wheat, $0.43 for rye, and $0.38 for barley. These premiums could not be paid for more than 6 months depending on the date of the contract. • The monthly storage premiums had to be paid on grain which came out of Intervention B and went into processing or was exported. However, since this grain was not purchased by the Import and Storage Agency at the higher pre-revaluation prices, the revaluation losses had to be covered in a different for







way. Thus, a compensation for revaluation “losses” of 9.29 percent was paid by the Agency for grain which was

April 27,

1970

will be greater than in 1969 depends on price competitiveness with other suppliers. Continued strong demand for soybeans, soybean meal, and other feed components other than grain in the Netherlands should help U.S. sales of these commodities to edge upward from 1969 levels during 1970. In general, as long as the Dutch agricultural economy continues to expand successfully and its exports grow, demand for agricultural imports, on which the Netherlands is highly

chiefly

dependent, will also continue to

rise.

storage on February

1 or which was processed during January 1970. For grain stocks held on February 1, the storage premi-

um

was reduced by the equivalent of

1 Unit of Account keep processors holding B grain in storage from turning the grain over to Intervention A and then repurchasing it soon thereafter. Understandably, holders of grain under Intervention B did

(DM3.66 = $1)

in order to

not dispose of their grain until they received the highest stor-

age premium possible, that is, either in February or March. Thus, from October 1969 through the beginning of February 1970, the market situation for domestic grain was extremely

and prices were well above intervention

levels.

Also dur-

ernment. After February 1, however, grain started moving again into federal stocks: During the first 2 weeks of February about 404,000 metric tons of wheat, 143,000 tons of rye,

sold prior to the introduction of that almost

exports to the Netherlands. Whether U.S.

Dutch

more

contracts for

6 million tons the approximately 400,000 tons of new-

—most of was Intervention B — can be seen

be

ing this period very small quantities were bought by the gov-

crop grain delivered into federal storage through the end of

September

offals will again

oppor-

than 6 million tons of wheat, rye, and barley. After adding to this

offal

exports to the

tight

grain industry

and pork

for beef

EC Stockpiling Measures

Since August 1969, West Germany has been using a new European Community (EC) tool government financing of in its efforts to cope with its private stockpiling of grain third straight year of overabundant grain stocks. This measure, called Intervention B and authorized under EC regulation



The Dutch market

favorable in 1970, and the United States should benefit with substantial

Milk deliveries are expected to be greater in 1970 than in 1969. The 1969 trend toward using more of available milk to make cheese will probably continue in 1970, especially as prospects are good for continued large exports of cheese to other Common Market countries. this

because of increased numbers of animals to feed in the Netherlands and a swing toward using more com in animal rations.

in private

and 25,000 tons of barley were taken

The

big question

now

chased by the government

and March. Estimates million metric tons.

in

Now

is

end up

grain in

was pur-

December 1969 ranged from Ministry of Agriculture

more than

2-2.5

officials

and

1-1.5 million tons

in federal stocks.

German Government

Before instituting Intervention B, the tried desperately to

all

— Intervention A— during February

the trade are estimating that not will finally

into federal storage.

how much

cope with

arrangements to store grain

its

in

grain glut through makeshift

barges and tents and to rent

storage space in neighboring countries. Also the government

applied to the

EC

Commission

to reintroduce levies against



France to end the heavy inflow of French grain a result of the weakness of the franc. The Commission, however, unwilling to endanger the painfully erected grain Common Agricul-

(CAP), recommended

tural

Policy

make

application to use the Intervention

that Germany B procedure author-

instead

under EC regulation. This authorization states that if market prices for grains in any member state decline as a result of a large crop and that state is forced to make largescale stockpiling purchases, application can be made for use ized

of “special intervention measures”.

Reportedly, the whole Intervention less

B program

will

cost

than $54 million, of which about $40.5 million will be

for compensation of deutsche mark revaluation losses, the remainder for storage premiums. Based on dispatch from Rolland E. Anderson, Jr.



Assistant U.S. Agricultural Attache,

Bonn

Page 7

— On

India's

Little

farms

Machines Capture Bigger Share of Hard Work

DES RAJ GULATI

eties

Chief Agricultural Analyst

large

Office of the U.S. Agricultural Attache

often go toward partial farm mechaniza-

New

tion to further increase the farmer’s crop

By

Delhi

and

make

profits from their some of those profits

fertilizer

crops; and

and profits. Machines are catching on, but so far they provide only a minute portion of India’s farm power requirements. Acsize

Animal power and manpower, for centuries the only work sources available to Indian farming villages, are getting

in-

creasing competition from small tractors

cording to a recent

official

Indian study,

000 wheeled tractors, 1,075 crawler tractors, and 4,000 power tillers with spare parts and accessories.

To encourage Indian

to

systems.

national average.

In

fields,

minithreshers

for

separating grain from chalf and straw,

As

the

market have to change. Human labor is low cost in India, and oxen are cheap to maintain because they can live on straw and other byproducts. But men and oxen cannot plow large transport

to

quickly or cope with the requirements of increased irrigation and of fast and precise cultivation, fertilizer placement, and seeding needed in modern crop technology. Nor can they harvest and thresh grain yields double and triple fields

Tractors

and implements

The 1969 Indian estimate of number in use is about 90,000; in 1961 the estimate was 31,000. Both the

of tractors

greatest

concentrations

tractor

power, or about the eral-purpose

new

grain vari-



three with foreign par-

The government has

also allo-

cated liberal foreign exchange with which

import capital goods and components. the

past,

indigenous production has

other essentials. Finally, the Indian

making

Government

is

con-

manufacture of tractors, spare parts, and accessories a government activity in hopes of increasing production to meet demand. The recently organized semiofficial State Agro-Industries Corporations, which at present sidering

the

the tractors currently in use, about

able length of time.

gressive farmers using the

ticipation.

two-thirds are between 26 and 35 horse-

those traditionally obtained in a reason-

Because it is government policy to encourage production of food crops, price supports are favorable to farmers. Pro-

and the

most rapid increases in numbers have been in the agriculturally progressive areas where the Green Revolution has taken firmest hold and where farms average 25 acres or more. In Punjab, for example, tractor numbers quintupled during the period 1961 through 1966.

Of

are functioning

sometimes been hampered by inadequate supplies of engrnes, tires, batteries, and

traditional rural villages gradually

change from food farming for subsistence to commercial food farming, old methods of providing power for farmwork and

tractor

nual licensed capacity of 30,000 units,

and electric and diesel pumps for lifting water from wells and rivers to irrigation

cultivating

delicensed

manufacturing in February 1968 and permitted minor foreign collaboration. At present five companies, with a total an-

power available to the Indian farmer from men and animals averaged about 0.14 horsepower per acre; power available from tractors was negligible in the

for

domestic production, the

Government

size of a small gen-

farm tractor (two-bottom plow) in the United States; one-fourth have 14 to 20 horsepower, or are in the range of U.S. lightweight tractors (onebottom plow). Less than 10 percent have

45 horsepower or more, or are in the range of standard-size U.S farm tractors.

Demand

for

tractors

is

estimated

at

60,000 to 70,000 a year, and Indian manufacturers have orders booked for 1 to 5 years at their present production capacity.

Indigenous production, which began

in

1961, had reached about 18,000 a year

by 1968, and output growth was about 20 percent a year from 1965 through 1968.

demand and local met by imports mainly from Eastern Europe and the Sov-

The

difference between

production

is

partly

Union, with whom India has trade agreements providing for rupee payment. In 1969 India authorized imports of 15,iet

Left, diesel lift

pump

irrigation

performs modern

from

well; right

,

two men operate a dhekli to lift water from a river to an irrigation channel.

Page

8

Foreign Agriculture

I

handles the distribution of tractors,

has

already

been

all

imported

directed

to

1950-51

In

only

electric-powered

19,000 diesel- and

pumps were

1968-69

stock repair parts for tractors and to offer

India;

maintenance service. Indian tractor users have long been plagued by parts shortages

1,670,000 units. These

in

there

in

use in

were

about

pumps

are

more

than the old methods of lifting

efficient

and inadequate after-sale service. Greater use of tractors has created a flourishing market in India for tractordrawn implements. But the production of implements was neglected by Indian

water from wells or rivers by ox power

Numerous small workshops promptly made and sold a

in

tractor manufacturers.

or

human

labor and have helped the in-

troduction of double or multiple cropping,

which

calls for large

water applica-

The new pumps have

tions.

also assisted

control of waterlogging and salinity.

great variety of nonstandard implements

Th reshing machines

that make maintenance and repair complex and therefore difficult. Both government and industry are now devoting attention to mass production of standard

was accomplished by driving oxen around and around on a pile of grain stalks until the grain was trampled free. Normally,

implements.

Traditional

it

been important agricultural

in India;

but the intensive

development of the past few

years plus the droughts of 1966 and 1967

have highlighted their importance.

threshing

in

took 3 days to trample each

stalks.

Pumps and engines Minor irrigation works have always

grain

India

of

pile

Increased grain yields from im-

proved cultivation make the traditional threshing

method impracticable. Much of

a farmer’s crop could be ruined by in-

clement weather before he could get

it

threshed.

Small,

manufactured

indigenously

power threshers

Above, miniature thresher in operation; below, Peace Corps volunteer gives farmer a lesson in tractor driving.

are rapidly supplement-

ing traditional methods.

More than

10,-

000 threshers are manufactured each year and marketed in Punjab alone; in the rest

number

of India about an equal

are sold

annually.

Combines have been are not yet in

tried in India but

commercial

dian Government

may

use.

The

In-

import 75 units

for trial during 1969-70.

Left,

fanner carries traditional plow;

below, progressive farmer displays his tractor, seeders, cultivator,

April

27,

1970

and drag.

Page 9

Attache's Office

News

of

Ottawa Reports

in

Canadian Agricultural Developments

The following items of special agricultural information have been prepared from dispatches sent in by the Office of the U.S. Agricultural Attache in Ottawa, Canada.

noted that

Canadian Grain Act May Be Revised The Canada Grain Act, passed

in 1930,

may soon

be re-

placed by an updated version which would provide the grain industry with greater flexibility to meet changing international

and domestic market conditions. The new legislation, introduced in the House of Commons by Agriculture Minister H. A. Olson, would extensively revise Canada’s grain grading and handling systems. Grain grade changes now need full parliamentary action, whereas the proposed legislation would allow the Governorin-Council (the Cabinet) to change grades. This would en-

when necessary, of new quality criteria The new act would also allow among other

able the introduction, in

grading grains.

possibilities

compared





the introduction of a protein grading system, as

to the present system

which

is

based on visual

standards.

The present Board of Grain Commissioners for Canada would be renamed the Canadian Grains Commission and would receive broadened authority over the grain elevator and handling system.

Its

authority



at present restricted to country,

terminal, transfer, eastern, and mill elevators

—would

be ex-

tended to the licensing and regulation of additional grain facilities, such as feed mills and elevators associated with the processing industry. Provisions would be

made

ernor-in-Council to extend this authority to is

all

in the past the

concentrated primarily

in

Canadian dairy surplus had been skim milk powder. More recently,

however, a butterfat surplus has developed, with present rates of butter production and consumption resulting in a surplus of about 10 percent of Canadian production.

On

deliveries up to the amount of subsidy quota, the 1970program provides for the same dairy product support prices and subsidy payments as those established for 1969-70. Support prices are Can$0.65 per pound for butter, $0.20 per pound for skim milk powder, and $0,465 and $0.47 for Cheddar cheese during the main producing season. The rate of subsidy is $1.25 per 100 pounds of milk or $0.3571 per pound

71

of butterfat.

Milk

deliveries in excess of

quota

will

not only lose the

subsidy, but will also be charged $1.25 per 100 pounds for

export support.

On cream

rate will be $0.08 per

Mr.

Olson

deliveries in excess of quota the

pound of

butterfat.

mentioned that the Dairy Farmers of Canada proposal for a system of supply management through market share quotas would be pursued actively by the Canadian Department of Agriculture and the Canadian Dairy Comalso

He characterized the proposal in these terms: Producers supplying milk or cream for processing into manufactured dairy products would have market shares related in

mission.

Canadian requirements, for which they would receive based on Canadian market prices for dairy products. Production in excess of market share would be priced in retotal to

a price

lation to prices in international markets.

— Based on dispatch from Alfred

Govof Canada if it for the

R. Persi

Assistant U.S. Agricultural Attache, Ottawa

deemed necessary.

To

facilitate

shipment, the act would

empower

the

Gov-

ernor-in-Council to order railway companies to provide

rail-

way boxcars for grain movement; and the Grains Commission would have the authority to allocate the available boxcars among shipping points for carrying grain. This would provide the legislative base for the “block system” of grain handling

introduced recently in western Canada.

Mr. Olson has

said,

“The proposed

legislation provides the

framework for continuing adjustments, and that improve our ability to cope with changing conditions and markets in the years ahead. ... In providing the machinery to adjust Canada’s grains grading and handling system, we legislative

will

are

making

the tools available to increase export sales.”

— Based on dispatch from Eugene T. Olson LI .S.

Canada

Agricultural Attache Ottawa ,

Plans Reduced Dairy Surplus

A program designed to reduce the growing dairy surplus was outlined on March 23 to Canada’s House of Commons by Minister of Agriculture H. A. Olson. It encourages restraint by placing a charge on milk and cream deliveries above quota while continuing subsidy payments on deliveries up to the amount of quota. In announcing the 1970-71 Dairy

Minister of Agriculture H. A. Olson recently introduced legislation in the

Canadian House of

Commons

that

would

pave the way for the creation of national farm products marketing agencies. Presently, there are about 120 provincial or subprovincial farm product marketing agencies in Canada. Mr. Olson’s bill would provide for closer coordination among them and for cooperation between federal and provincial levels of government in the design and operation of national farm products marketing schemes. The federal government, in general, has jurisdiction over interprovincial and export movement of farm products; the provincial governments control the marketing of farm products within a province, but may delegate their

power to a national organization. The proposed legislation would give

the

Govemor-in-

Council broad authority to establish national marketing agencies for particular commodities in response to industry needs

and

desires.

To

allow for marketing schemes tailored to the

requirements and peculiarities of individual commodities, the

Governor-in-Council

would

approve

a

specific

marketing

plan and appoint a national marketing agency to administer

from ones with limited powers to achieve a minimum amount of coordination and promotion to ones which carry out more comprehensive marthe plan. These agencies could vary

Program (begun April

1),

Mr. Olson referred to continued dairy surplus production as the biggest problem facing the Canadian dairy industry. He

Page 10

Canadian Marketing Change Proposed

keting functions such as selling, pricing, assembling, pack-

Foreign Agriculture

1

ing, transporting,

and

planting their 1970 crop and to encourage sugarbeet produc-

storing.

National marketing agencies would not be given any con-

over the importation of products. However,

trol

would increase the

that the agencies

it

is

tion in

— Based on dispatch from Alfred R. Persi

Canada.

Assistant U.S. Agricultural Attache, Ottawa

likely

effectiveness of export

marketing programs.

would provide for the appointment of farm products marketing council which would have considerable responsibility to design, review, and oversee the operation of marketing agencies established under the act. Based on dispatch from Alfred R. Persi Assistant U.S. Agricultural Attache, Ottawa

The

legislation also

a national

in

The

five

cal-

essential that the

Canadian farmers plan

to increase their rapeseed

and

flax-

is projected at 70 million bushels and the flaxseed 48 million bushels. The 1969 crops were 37 million bushels of rapeseed and 31 million bushels of flaxseed. The increase of flaxseed in Canada, plus a possible 3-mil-

seed crop at

lion-bushel increase in the U.S. crop, indicates that North American production could exceed last year’s level by 20 Based on dispatch from Eugene T. Olson million bushels. U.S. Agricultural Attache, Ottawa



Canada

Wheat Acreage Cut

Explains

The Canadian Department of Agriculture, in an effort to encourage support for the wheat crop reduction program announced in February, has mailed explanatory pamphlets to 190,000 Canadian farmers. The pamphlets cite five useful examples of farmers who would be eligible for federal compensation payments under the program by cutting wheat acreage below 1969 levels and increasing summerfallow or by switching from wheat acreage to perennial forage. cases

compare acreage planted

culate the exact total

According is

in

to the information sent to farmers, “the

designed to wipe out our wheat surplus

ers

back the program

to

its

fullest.”

in

1

year

program



if

farm-

The compensation

is

acre to producers who cut wheat acreage below 1969 levels and increase summerfallow by the same amount and $10 per acre to producers who switch wheat acreage to

No

producer

may

receive

Efforts to facilitate grain transportation

highlighted in

March with

the



vice.

Can$6 per

perennial forage.

Canada

1969 and 1970 and of compensation due.

Canadian Oilseed Crop

seed acreage this year by 88 percent and 55 percent, respectively. Therefore, at last year’s yields per acre, the 1970 rape-

crop

in

and storage were Canadian Transport Commission’s appointment of a Grain Movement Coordinator for Lakehead. Located on Lake Superior, the port of Lakehead is Canada’s largest grain storage area. R. G. Menzies, formerly District Officer with the Commission in Saskatoon, has assumed the position of Coordinator, which was created in the interest of securing maximum grain movement by utilizing handling and transportation facilities to the fullest extent possible. His appointment followed the establishment of a similar position in Vancouver in January. Announcing the appointment on March 17, Otto E. Lang, Minister Responsible for the Canadian Wheat Board, noted that grain movements in the 4 months remaining in the present crop year are expected to be one of the heaviest of any comparable period on record. Nearly 200 million bushels of grain will be moved into Lakehead terminals during this period to meet sales commitments made by the Canadian Wheat Board and other exporters. In further efforts to improve grain movement, the Canadian Grains Group has named two advisors on grain handling and transportation. Mr. J. W. Madill, general manager of the Alberta Wheat Pool, and Mr. I. K. Mumford, general manager of the Saskatchewan Wheat Pool, will assume their duties for periods of 6 months each April through September and October through March, respectively. Mr. Lang, in announcing the appointments, emphasized that the key role played by the handling and transportation of western Canadian grains on their way to market makes it



Increase

Named

Transport Experts

He

Grains Group secure the best possible ad-

explained that Mr. Madill and Mr.

Mumford

will

not be acting as representatives of their organizations but as

whose backgrounds

individuals able

them

to

contribute

to

policies for grain handling

in the

the

grain industry will en-

development of long-term

and transportation. Based on dispatches from



Office of U.S. Agricultural Attache, Ottawa,

Canada

payments for more

than 1,000 acres of reduction in wheat acreage.

— Based on dispatch from Eugene T. Olson

St.

Canada and France have opened

Lower Canadian Sugarbeet Payments

Opens

Pierre Quarantine Station

U.S. Agricultural Attache, Ottawa

new maximum

a

security

livestock quarantine station at St. Pierre to help

mand

for import permits that, in

meet a derecent years, has exceeded

The Canadian Agricultural Stabilization Board has been authorized to make interim deficiency payments of Can$1.50

the space available for quarantine.

per standard ton (250 pounds of sugar) on the 1969 sugarbeet

Ministry of Agriculture and the Canada Department of Agri-

crop, a significant reduction

producers

last.

The lower

from the $2.50 per ton paid to improved sugar prices

rate reflects

by the International Sugar Agreement effective January 1, 1969, and resulting in higher prices

brought about to sugarbeet

in

part

producers from the processing plant.

The 1969 support level for sugarbeets, as in 1968, is $15.98 The calculations on this crop are expected to be available by mid-December when final payments will be made to producers. In the meantime, the interim deficiency payment is meant to assist producers in meeting the cost of per standard ton.

April 27,

1970

Officially

opened April

Pierre

is

April

and

will

be maintained by France.

mouth of Fortune Bay,

Newfoundland,

On

was

by representatives of the French

a French island at the

culture, the station St.

8

8,

in the

built

Gulf of

St.

Lawrence.

the St. Pierre Station released

200

cattle

from

quarantine for shipment to Canadian farms the next week.

They included 146 Charolais, 23 Limousin, four Pie Rouge, and two Maine-Anjou from France as well as as 11 Simmental and one Brown Swiss from Switzerland.

—Based on dispatch from Eugene

T.

Olson

U.S. Agricultural Attache, Ottawa

Page

1

A complex combination of unusual weather political tensions rising and falling prices and changing world demand affected Honduran agricultural production and farm-product exports and earnings during 1969 ,

,

,

Honduran Agriculture The

agricultural

during 1969

economy

1969:

in

Honduras received two jolts in September and the disThe hurricane was by far the

of

— Hurricane Francelia

pute with El Salvador in July.

more damaging in the short term but the disruption of trade between Honduras and other Central American countries until Honduran-Salvadoran difficulties are settled could have longrange economic consequences. The high winds and heavy rains of Hurricane Francelia on the Caribbean coast severely damaged banana groves in some areas and did some minor damage to cane fields. In addition, many roads were temporarily flooded, structurally injured, or destroyed. Further inland, the coffee areas got large precipitation in the

may have

wake of the hurricane; however, the been more beneficial than harmful

ultimate effect to the coffee

A

Year of

Difficulties

1968-69. Cotton exports are no longer a major earner of foreign exchange for Honduras.

Sugar production for 1969-70

same as damage

Other undesirable weather was persistent rain on the Pacific coast and the lack of the usual 2-to 3-week dry period during

expected to be about the

some hurricane

and production estimates are between 60,000 and 65,000 short tons. Sugar is not a major Honduran to cane fields,

export.

down from

Overall production of grains in 1969-70 was

previous year. Corn output

is

the

estimated at 375,000 metric tons

compared with 390,000 tons

the year before. Bean production 53,000 metric tons down 2,000 tons from the previous crop year. Sorghum outturn, however, is estimated

pegged

is

up 3,000 tons

as



at

The 1969-70

to

69,000 tons. crop

rice

is

thought to be about the same as

The values of

corn, bean, and

Honduran corn and beans has

the rainy season. Plantings of several crops were either de-

for

vador, but

was

after the dispute in July 1969.

affected.

The

dispute with El Salvador disrupted agricultural produc-

temporary displacement of Honduran citizens in zones of conflict and by the repatriation of Salvadoran citizens to El Salvador, which caused local shortages of agricultural workers in some Pacific areas of Honduras. In addition, some of the larger Honduran cotton producers were Salvadorans

tion by the

fled

Honduras and thus did not plant

a crop in 1969.

Production and export estimates

Because some banana acreage was destroyed by hurricane flooding and other acreage hurt by high winds, 1969 banana

production and exports at

least

slid.

Exports are estimated as

10 percent in comparison to

forecasts for 1970 are that exports

may

down

1968. Preliminary

be as

much

as

all

Outturn of flue-cured tobacco during 1969-70 was reduced by 10 to 15 percent because of rains and cold weather during the producing season. Output of dark air-cured tobacco also fell; but production of cigar filler and wrapper tobacco was about the same as in 1968-69. The livestock industry continued to expand in 1969 and additional imports of breeding cattle were made. Exports of chilled and frozen beef reached a new record level 20.8 million pounds. Shipments were nearly all to the United States and Puerto Rico. In comparison, beef exports for 1968 were 14.0 million pounds. Exports for 1970, however, will probably be down from the 1969 peak because of voluntary



restraints.

30 to

Outlook

age will not produce a harvest until 1971.

domestic food crops in the

past few years have supplied nearly half the value of total

Honduran exports, agricultural and otherwise. The next-ranking agricultural export, coffee, had

a success-

1969-70 harvest that totaled about 500,000 bags of 60 kilograms each approximately 100,000 bags greater than the 1968-69 coffee outturn. Honduran coffee export earnings in

Production of major export crops (except bananas) and will probably increase in 1970 as Hon-

duran agriculture recovers from the effects of last year’s hurricane. Cotton’s importance as an export will probably continue to decrease and 1970-71 cotton acreage is expected to be even lower than that for 1969-70.

Export

ful



1969 were reduced because of lowered world prices and are estimated at about US$18 million; but earnings in 1970 will probably be up sharply because of rising prices and may reach approximately $23 million. Cotton output fell drastically owing to bad weather and to the dislocation of workers and planters because major acreage was in a zone of combat between Honduras and El Salvador. Only about half as much area was planted to cotton in 1969-70 as in 1968-69, and less than half as much cotton was produced (14,000 bales of 480 lb. net). Another discouraging factor for 1969-70 plantings was low cotton prices during

Page 12

traditionally been El Sal-

trade between the two countries was suspended

40 percent below 1968 levels. Rehabilitation of the hurricaneinjured banana areas was begun immediately, but such acreBananas are Honduras’ chief agricultural export and

sorghum exports were down A major market

sharply in 1969 in comparison with 1968.

layed or prevented, and that of the cotton crop in particular

by

is

that for the previous year in spite of

last year’s.

crop.

who

.

levels of

some commodities, such

as corn, beans,

tobacco, and hogs, will depend upon whether trade with El

Salvador

The

is

resumed or

in recent years

Of

not.

agricultural imports of

and

will

Honduras have been increasing

probably show another gain

in

1970.

which

is

Hon-

particular interest to the United States,

duras’ chief wheat supplier,

climb



probably as

Another trend country

is

that

wheat imports are expected

much as may boost

to

3,000 to 5,000 metric tons. U.S. agricultural sales in the

the developing shortage of edible

vegetable oils

because of the reduced domestic cottonseed output due to shrinking cotton acreage.

— Based on

a dispatch

from Harry C. Bryan

U.S. Agricultural Attache, Guatemala/ Tegucigalpa

Foreign Agriculture

,





European Trade Gets U.S. Recipes

To Boost Wheat Use What makes sandwiches so popular in What advertising meth-

the United States?

ods do U.S. merchandisers use to increase consumption of wheat flour products? What are the latest innovations in bakery

equipment? These were some of the quesAnderson on a recent promotional trip to West-

wich

ern Europe sponsored by Great Plains

for a gigantic

tions asked of nutritionist Beverly

Wheat, export arm of the U.S. hard wheat Her audiences were people for whom wheat consumption is literally their “bread and butter” bakers, millers, and industry.



merchandisers.

Miss Anderson,

who

has worked closely

with wheat products as director of

home

economics for the Wheat Flour Institute in Chicago and on a wheat promotion tour in Asia, found that from England to Germany, members of the European wheat trade are concerned with the problem of maintaining consumption of wheat products

face of rising standards

in the

of living and consequent changes in diet. bakeries and at semand conferences the U.S. nutritionist distributed information and gave advice on everything from recipes

During

visits to

inar discussions

utilizing pasta

products to packaging of

bread. She found considerable interest in

mechanics of successful promotions that have been carried out in the United States, such as “Sandwich Month.” Shortages of labor in Europe have resuited in a trend away from the traditional small bakery toward larger industrial bakeries whose bread product the

1

called “toast bread”



soup and napkins team up promotion of the sandwich

fillings to

concept.

At Detmold, Germany, Miss Anderson was a panelist sored by two

at a

conference spon-

research

grain

institutes

where participants discussed “The Bread Market in the 1970’s.” Representatives from 240 bakeries in Germany, Sweden, the Netherlands, Switzerland, East Germany, England, France, and the United States attended, as well as numerous mill representatives,

members of

commu-

the

nications media, nutritionists, and others

associated with wheat product promotion.

Promotion of pasta products was anarea where she found concern. Millers and merchandisers alike were inother

terested in hearing

handle

terparts

how

their U.S.

coun-

advertising

their

and

of Utrecht's leading bakers, top, and a stop at a local bakery. Below, U.S.

product image.

Miss Anderson also met with food editors and nutritionists in the various countries

Beverly Anderson’s European wheat promotion tour included a visit with some

she visited.

In

Germany

long grain rice received top billing in

a recent British

POP promotion.

she dis-

cussed with the food editor of Fiir Sie,

one of Germany’s leading women’s magazines, a wide range of subjects including wheat products in the diet, testing of recipes, and publication of recipes in women’s magazines.

tastes a bit differ-

ent than the bread from the neighborhood bakery which consumers are used

Although recent promotions of “toast bread” have been successful, there is still concern over consumer reaction. There-

Wins Fans

U.S. Rice

to.

fore there

is

much

interest in U.S. indus-

bakery processes and products. The American sandwich, big and well

trial

breaded, was the topic of

much

discus-

Anderson met though the open-faced European sandwich may be getting a cover in the future. German wheat prodsion in various groups Miss with. It looks as

uct merchandisers are planning a sand-

wich promotion

to be held this

summer.

It will be modeled after the U.S. “Sandwich Month” which takes place in August. Producers of everything from sand-

April 27,

1970

U.S.

long grain rice was a popular

item at the Salon des Arts Menagers France’s 39th

home and household

fair,

recently held just outside of Paris.

The U.S. Rice Council’s tracted housewives

exhibit

who sampled

at-

savory

and received recipe booklets and ideas for incorporating rice dishes in their weekly menus. All 1 1 French rice mills and four U.S. brand rice importers displayed their packages of Amer-

sales

ican rice sold in France.

Attractive packages, banners, and signs

was also the At a special 1-week point-of-purchase promotion held

special

rice dishes

Across the channel

subject of

much

rice

attention.

in

stores

in store

rice

of the Sainsbury’s chain rice

registered

windows

300-percent increase.

a

alerted shoppers to the

promotion and stressed that the

was U.S. long

grain.

Page 13

A

)

Spain Anthonies Heifer Imports The Spanish Ministry of Agriculture recently authorized before December 31, 1970 of up to 20,000 bred heifers under 3 years of age. The heifers must either be importation





of beef breeds already approved by the Ministry of Agriculture or

if

may

they are of European or American origin they

— a major departure from

Denmark, Ireland, and Trinidad-Tobago. Exports of other kinds of unmanufactured tobacco except flue-cured in 1969 totaled 1.3 million pounds, of which 406,the Netherlands,

000 pounds was

Dutch Impart Less U.S* Tafeaee®

the former

A

However, each heifer of unregistered grade must have a certificate issued by its breed association stating that it was bred by a purebred sire registered in the official herd book of the same breed. Also, only breeds whose offspring can be identified by coat color markings or

into

be of unregistered grade policy of the Ministry.





muscle

may

be imported

if

the heifers are to be bred to pedi-

greed bulls of another breed.

burley.

total of 106.8 million

the

pounds of tobacco was imported

Netherlands in

1969, 5 percent above the 101.8 million pounds of 1968 and 17 percent above the 1960-64 average. The Netherlands, both an important consumer and exporter of tobacco products, depends entirely on imports of unmanufactured tobacco for three-fourths of

its

requirements.

More than

purchases originate in the United States, South Africa, West Germany, Brazil, Belgium, and its

total

Malawi.

General Japanese Beef Impart Quafa

The United

States continued to be the major source of 1969 by providing 32.1 million pounds of tobacco. This quantity was down somewhat from 34.2 million pounds in 1968 and 35.3 million pounds in 1967. In 1969 the U.S. share was the lowest since 1963, dropping to 30.1 percent from 33.6 percent in 1968 and 34.2 percent in 1967. The re-

supply

The Japanese Ministry of International Trade and Indus(MITI) recently announced a general import quota for

try

15,000 metric tons of beef. This quota brings the total

allo-

cations for the Japanese fiscal year 1969 (April 1969 through

March 1970) to 22,500 tons, including a 7,000-ton general quota issued in November 1969 and a special 500-ton quota issued in early

March

for registered international hotels. (See

Foreign Agriculture, Apr. fiscal

6,

1970.)

During the Japanese

year 1968 total beef import quotas amounted to 22,000

metric tons.

in

duction in the U.S. share was more than offset by increased imports from South Africa which was the second largest





source in 1969 at 15.2 million pounds of tobacco. This is a 71 -percent increase for South Africa from 8.9 million pounds

1968 and is a more than 100-percent increase from 7.5 pounds in 1967. Smaller increases were also recorded for Thailand, Cuba, Greece, Turkey, Tanzania, Italy, and Malawi. in

million

Canada's Flu®~Cured Exports Up Exports of Canadian flue-cured tobacco rose to 51.1 milpounds in 1969. This quantity compares with 46.4 million

DUTCH IMPORTS OF UNMANUFACTURED TOBACCO

lion

1968 and 41.3 million in 1967. The average price for all shipments was 106.4 U.S. cents per pound, compared with 107.2 U.S. cents per pound a year ago. The United Kingdom, by far the largest purchaser of the Canadian leaf, accounted for 44.6 million pounds. This was 87.4 percent of the total 1969 exports compared with 86.7 at 1.1 milpercent in 1968. Shipments to the United States lion pounds were down by nearly one-third from the previous year. Other important markets in 1969 included Finland,

pounds exported

in





Country of

Average

origin

1960-64

1967

1968

1969

Mil.

Mil.

Mil.

Mil.

lb.

CANADA’S FLUE-CURED TOBACCO EXPORTS Average 1969 1968

destination

United Kingdom Finland United States Netherlands

,

..

1969

export price

1,000

1,000

pounds

pounds

40,262 634

44,628 1,183

U.S. cents per pound 113.0 49.6

1,556

1,068

21

414

909

Denmark

521

721

Ireland

242 970

684 500 345

Trinidad-Tobago Libya

127 144

Guyana Belgium-Luxembourg

.

Hong Kong Others Total

Page 14

..

174 165 133

467 223 863

580

46,423

51,090

41.0 40.9 120.9 84.4 96.8 73.0 62.4

106.4

lb.

3.7

7.5

8.9

15.2

West Germany

12.1

15.5

12.1

13.1

32.1

Brazil

8.5

9.5

8.5

9.0

Belgium

4.9

4.5

7.5

6.6

4.7

5.4

5.2

1.5

1.6

2.3

Malawi

o 3.4

Mozambique

3

2.4

3.5

2.1

India

3.6

2.1

2.1

2.0

Turkey Tanzania Greece

1.0

1.5

1.3

2.0

4

.5

.7

2.0

1.0

1.0

1.6

1.8

8

1.1

1.2

1.8

1.4

1.5

1.3

.6

.8

1.1

.9

1.0

1.0 .7

Cuba South Korea Thailand Paraguay

C

-

3

n

Philippines

9

1.7

1.2

Rhodesia

13.2

5.6

1.5

.4

Zambia

Cl

.8

.7

.4

Other Total

9.2

5.1

6.5

6.7

91.3

103.2

101.8

106.8

Percent 34.2

Per-

Per-

cent 33.6

cent

Percent

103.8



lb.

34.2

28.0

Italy

Country of

lb.

35.3

United States South Africa

U.S. share 1

30.7

Included with Rhodesia.

2

If

30.1

any, included in “Other.”

Foreign Agriculture

Ireland Imports

More Tobacco

This

Ireland’s imports of unmanufactured tobacco in 1969 reached a new record of 22.3 million pounds, 25 percent more than 17.9 million pounds a year earlier and two-thirds

pounds of 1967. Of the total takstemmed leaf accounted for 96 percent. Imports from the United States at 13.6 million pounds were down 17 percent from 16.4 million in 1968. Purchases from India jumped to 4 million pounds from 416,000 pounds the previous year. Malawi and Zambia supplied over 1 million

more than

estimate,

latest

confirmed, could give a boost to

if

U.S. corn exports for the balance of this marketing year, which

the 13.3 million

ings in 1969,

pounds each. These four countries provided 90 percent of Ireland’s total unmanufactured tobacco imports in 1969. Other suppliers included Canada, Tanzania, South Africa, South Korea, and Angola. Ireland also imports “partly manufactured” tobacco from the Netherlands, most of which is processed into pipe tobacco by Irish tobacco firms and later exported. Imports of this type of tobacco totaled 3.9 million pounds in 1969 compared with 4.4 million in 1968 and 2.1 million in 1967. Comparable quantities of pipe tobacco were exported during this period.

Smaller quantities of cigarettes, cigars, and cheroots are also traded.

ends September 30. Earlier monthly projections had placed South Africa’s exportable surplus closer to 2.5-3 million tons. Unofficial crop estimates this season began with 9.5 million tons in January following a period of dry weather. In Feb-

ruary the estimate was lowered to 8-9 million tons, and the

—based on conditions

first official

estimate

ruary

7.6 million tons.

—was

The

principal difficulty in

at the

end of Feb-

making crop estimates

this season,

been the variable weather pattern. Some of the early planted corn was hit by dry weather shortly after emerging and growth was stunted. The bulk of the crop, however, as usual, has

was planted under very favorable conditions and recovered nicely from the dry weather conditions that prevailed in late December and early January.

Some

the

especially

areas,

main growing

northwestern portion of the

enough moisture

area, did not receive

to begin

planting until mid-January. This late planted corn, however,

March, when it needed moisture. fairly rainy month, a good outturn was expected from the late planted corn. But the March rains did not develop, and the estimate had to be reduced, to allow for the less-than-optimal development of the late planted acreage as well as that portion planted at the normal time. progressed Since

nicely

March

until

normally a

is

Weekly Rotterdam Grain Price Report Current

prices

imported

for

grain

Rotterdam,

at

the

Netherlands, compared with a week earlier and a year ago, are as follows:

April 15

Dol.

per bu. Wheat: 1.97 Canadian No. 2 Manitoba

USSR SKS-14

A year ago

Cents per bu.

Dol. per bu.

-

1.94

)

l

13.5 percent

Net U.K. grain imports

Soft

1.87

C) 0

C)

Note: All quoted

be caused by a 5.5 percent increase in wheat, which will be partly offset by a 2.5 percent decline in feedgrains.

Outlook for 1969-70

Wheat imports

1.97

+5 +2

1.90

1.79

+2

1.82

C)

1.80

1.66

+2

1.69

1.58

+

1

1.40

-2

1.41

1.88

)

forecast

are

to

increase

about 250,000

metric tons over a year ago. Total import figures, however, the fact that

of the increase will be in feed wheat,

all

wheat imports are expected to decline. The majority of the feed wheat imports are coming from the EC, although Australia recently sold around 100,000 tons to the United Kingdom. Corn imports are forecast to decline about 150,000 tons since milling

1.88

1.58

1

1 f

)

1.33

3.06

C

1.31

)

+1

1.18

+

2.90

4

UNITED KINGDOM NET GRAIN IMPORTS 1968-

Commodity

Wheat, wheat c.i.f.

Rotterdam for 30-

to 60-day delivery.

69

(grain

Down

unofficial trade estimate of the South African

corn crop, based on conditions in early April, is for a harvest of about 7 million metric tons. This is considerably above last season’s drought-reduced crop of about 5 million tons, but

70

1

Change

1968

1969

Change

1,000 1,000 metric metric tons tons

1,000 metric tons

1,000 1,000 metric metric tons tons

1,000 metric tons

4,575 3,466 156

+251

2,056

2,331

- 151 -6

1,841

1,531

+275 -310

72 52

56

- 16

330

+278

6

+6

flour

Corn Sorghum Barley Oats Exports: Barley

1969-

equiva-

lent)

South African Corn Estimate

July -December

Fiscal year

Imports:

Not quoted.

latest

year are forecast to be

Red

Feedgrains: U.S. No. 3 Yellow corn Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero Soybeans: U.S. No. 2 Yellow

The

this fiscal

will

mask

(

2

1

1.75

l

Argentine

1

Change from previous week

1

Australian Northern Hard U.S. No. 2 Dark Northern Spring: 14 percent 15 percent U.S. No. 2 Hard Winter:

No. Winter

Import Forecast Up

2 percent above last year’s total of 8.5 million tons. This

Item

U.S.

Gram

Net

O.K.

372 25 3

Net grain imports

4 ...

4,826 3,315 150 421 25

+49 2

0

(

)

74

25

-49

67

2

-65

8,520

8,712

+192

3,954

4,252

+298

well below the earliest unofficial estimate of 9.5 million.

A

2

crop of 7 million tons would result in an exportable

surplus of around 2 million tons, since domestic consumption this

year

is

estimated at just over 5 million. At least one-half

million tons of the exports are expected to be white

April 27,

1970

com.

'Estimated. Less than 500 metric tons. exports as follows: July-December 1968



3

Does not include malt

— 59,000

tons; July-De-

cember 1969 45,000 tons. 'Imports less exports. For fiscal year 1968-69 and July-December 1969, Overseas Trade Accounts of the United Kingdom.

Page 15

U.S.

DEPARTMENT OF AGRICULTURE WASHINGTON,

C.

D.

20250

PENALTY FOR PRIVATE USE, $300 OFFICIAL BUSINESS

If you no longer need this publication, check return this sheet, and your name will here be dropped from mailing list.

If

your

PRINT

or

should

address

be

changed

TYPE

the new address, including and return the whole sheet to:

ZIP CODE,

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

Kingdom through Feb-

although U.S. exports to the United

ruary are running about 155,000 tons ahead of a year ago (1.15 million tons compared with

1

million last year).

petition for the balance of the fiscal year,

pected to be

much

stiffer,

however,

Comis

30 percent. Corn, also at 1.3 million tons, was off 18 percent. Only sorghum shipments increased by 42,000 tons. Oats and barley exports combined dropped a total of 289,000 tons.



ex-

ARGENTINE GRAIN EXPORTS SUMMARY

with new-crop South African, Ar-

and Brazilian corn coming on the market. Imports are suffering, mainly from the competition of feed wheat and, to gentine,

a lesser extent, barley.

Sorghum imports

are forecast to decline slightly, primarily

a result of an unfavorable price relationship with

com.

Barley imports are forecast to increase by about 50,000 tons.

Favorable prices the

main

in relation to

competing grains are given as

reason. Barley exports are expected to decline to only

about one-third of mestic consumption.

July-February

Commodity

last

owing

year’s volume,

Thus

barley’s net position

to

heavy do-

is

heavily on

Wheat Rye Corn Oats Barley

Sorghum

the import side.

Oats imports are estimated

at

about

last

Total

year’s level of

25.000 tons.

1968-69

1969-70

Change

1,000 metric

1,000 metric

1,000 metric tons

tons

tons

1,983

1,253

14

4

- 10

1,566 175 185

1,282 53

-284 -122 -167

275

317

+42

4,198

2,927

-1,271

18

-730

El Cerealista.

July-December 1969 During this period, total wheat imports increased 275,000 tons compared with the same period a year ago. Feed wheat imports, however, more than accounted for the total gain (441,000 tons), since milling wheat imports fell by 172,000. Corn imports declihed over 300,000 tons compared with a year earlier. Most of the reduction was caused by a 90-percent decline in arrivals from South Africa, due mostly to a lack of exportable supplies. Meanwhile, takings from the 1

United States increased 5 XA

percent.

Sorghum imports

clined about 22 percent to 56,000 tons. Argentina

dominant

de-

supplier, shipping 30,000 tons of the total.



reduced levels to date for the July-February period.

Crops and Markets index

was the



The marked rise in barley imports more than a sixfold was mainly in shipments from Canada, Australia, Sweden, and Spain. The sharp drop in barley exports was due

increase

Argentina is harvesting its biggest com crop in recent years and a record sorghum crop. With heavy advance sales, exports of these grains are expected to pick up sharply in the remainder of the July-June 1969-70 marketing year. Exports of the small grains are not expected to improve much over the

primarily to higher domestic consumption. Oats imports at

Grains, Feeds, Pulses, and Seeds 15

Weekly Rotterdam Grain Price Report

15

South African Corn Estimate

15

U.K. Net Grain Import Forecast

16

Argentine Grain Exports Drop

Down Up

6.000 tons were very minor during the period. Livestock and Meat Products 1

See April issue of World Agricultural Production and Trade for country of origin breakdown of import statistics for the July-

14

Spain Authorizes Heifer Imports

December

14

General Japanese Beef Import Quota

periods.

Argentine Grain Exports Drop Argentina’s grain exports from July 1969 through February

1970

metric tons were 30 percent below those of a year earlier. Wheat shipments at 1.3 million tons dropped at 2.9 million

Page 16

Tobacco

Up

14

Canada’s Flue-Cured Exports

14

Dutch Import Less U.S. Tobacco Ireland Imports More Tobacco

15

Foreign Agriculture