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 NOVEMBER 0, 1964 GREAT BRI...

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices

NOVEMBER

0,

1964

GREAT BRITAIN’S FARM

TRADE OUTLOOK FOR 1965

INDIA’S EDIBLE OIL

SHORTAGE

OUR SOARING ANIMAL

PRODUCT EXPORTS

FOREIGN AGRICULTURE Including

FOREIGN CROPS

AND MARKETS

A WEEKLY MAGAZINE OF THE UNITED STATES DEPARTMENT OF AGRICULTURE

FOREIGN AGRICULTURAL SERVICE

_

NOVEMBER

FOREIGN

VOL

II

1964

9,

NUMBER 45



AGRICULTURE Including

ill)

FOREIGN CROPS AND MARKETS

id

Contents

0

Great Britain’s Farm Trade Outlook for 1965

3

I

4

Indonesia Having Trouble Maintaining

Its

Copra Exports jsvi

|

Cutting up U.S. poultry for sale in

a

lilor

1

6

large Japanese department

U.S. Exports of Animal Products Soar to

New

Levels

8p'

store. Exports of U.S. poultry as well as other animal products

I

reached high levels in fiscal year 1964. See story on page 6.

7

Honduras

British

Now

Expanding

Its Citrus

ISJTC

Industry

| £P

I

8

E&

n

taf

Indians Badly Hit by Peak Prices for Edible Oils

fife j;

9-11

fen

Market Development

Hi

Paris Meeting Called To

Make Plans

for

New World

Cotton

1

Promotion by Producers, Users USDA Honors Norbest Turkey Growers’ Export Drive at Agricultural Co-op Month Observance International Food Exposition Opens in Paris U.K.

Fruit Sellers

I*

1

hit?.

Bit

I

(S,

fce:

Brought to U.S. for National Apple Week 1 I

12

World Crops and Markets

Cotton

15

U.S. Exports Less Cotton

15

Mexico Increases Cotton Export Tax

Dairy and Poultry Products

14

Fats, Oilseeds,

13

14

Canned Milk Exports

Australia’s

Down

Dutch Oilseed Output, Imports Rise

Fruits, Vegetables,

15

am

and Nuts

Small Italian Walnut Crop

fe

Livestock and Meat Products 12 U.K. Imports More Lard 12 EEC Subsidy on French Beef to Germany 12 Australian Meat Shipments to the U.S. 12 Honduras Prohibits Cattle Exports 13 Israel To Import Slaughter Cattle

13

and Oils

Oilseed Imports Up, Oils

Italy’s

oior

New Zealand Meat Shipments

;

1 ath ‘'S

I

to the U.S.

Sugar, Fibers, and Tropical Products 15 Yugoslavia Ups Support Prices for

16

j

I

to

re

Hemp dps

Peru’s Molasses Exports Up

Tobacco 13 Congo’s Cigarette Output Down 13 Dutch Cigarette Sales Drop Sharply

mm; |

German Cigarette Sales Up

13

ipo

1

hi

I

lei

I

ila

Kim

Orville

Freeman, Secretary of Agriculture

L.

Dorothy H. Jacobson, Assistant Secretary for International Affairs

Raymond

loanes, Administrator, Foreign Agricultural Service

A.

of a

Editor: Alice

Fray Nelson

Associate Editor: Ruth

A.

Oviatt

and

Advisory Board: W.

A.

Minor, Chairman; Wilhelm Anderson, Burton David L. Hume, Robert 0. Link, Kenneth

Erhardt,

This magazine

^*

Bltu

is

"

Baker, Douglas M. Crawford, John H. Dean, W. Olsnn, Donald M. Rubel. A.

published as a public service, and s I

its

F.

Leslie

content may be reprinted freely.

Pushed

S ington D. nfrprtn^rff’ r ° f th!? R Bureau of fnro Vrn ’

C.

weekly by the Foreign Agricultural Service, United States Department of 20250. U:se of funds for printing this publication has been approved by the Budget (December 22, 1962). Yearly subscription rate is $7.00, domestic, $9.25 Sfl0U be sent to the Superintendent of Documents, Govern-

men/ Pri ntir^^Officef Wash ngto^D^C. ^ 2tM0 ^ i

JjL

Great Britain’s Farm Trade Outlook for

1905

Neither the change of government nor the neiv import tax to affect it

;

blit this

years bountiful harvest

DAVID W. RIGGS

By

Foreign Regional Analysis Division

Economic Research Service Within the past month two events have taken place

Great Britain which have raised questions as to the

in

sugarbeets

immediate future of American agriculture’s $450-million market in that country. The first of these was the change

cut hack imports.





the production trend

Important as these events are to the

them seem

to portend

British,

neither

immediate consequences for U.S.

farm exports to Britain.

The

of the

upward

1962

all

along the

Wheat Barley Oats Potatoes Sugarbeets

1964

1963

1,000 metric tons 3,974 5,866 1,775 6,765 5,398

1,000 metric tons 3.572 7,299 1,407 6,757 6,096

1,000 metric tons 3,046 6,705 1,461 6,682 5,338

Farmers who depend on livestock for their incomes also had a generally good year, and this situation is expected

The

to continue.

United Kingdom will probably remain substantially unchanged under the Labor Party. During the last Parliament both Labor and Conservative Parties agreed in broad outline on farm measures, and, as a result, the 1964 Agriculture and Horticulture Act passed the House of Commons without difficulty. policy

agricultural

is

as the following table shows:

of

of

likely

hay and feed grain supplies. The dry, late-season weather also retarded the growth of potatoes and fodder roots, though the outlook for sugarbeets is favorable. For the five crops wheat, barley, oats, potatoes, and line,

government which took place on October 15 when the Labor Party supplanted the Conservatives who had been in power for 13 years. The second was the announcement on October 26 that the new government would impose a surcharge of 15 percent on the c.i.f. value of certain imports into the United Kingdom.

may

is

sole exception

is

the egg producer. Over-

production depressed egg market prices, and in spite of a

more

stringent operation of the government’s deficiency

payments for eggs during 1964-65, this sector of British agriculture will call for an increase in government outlay. All other programs will cost less in government support than

in

1963-64.

This act will form the basis for any future government

one of which may be the setting up of commodity commissions for grains, meat, and horticultural products. These commissions would try to insure an even flow of the respective commodities into the market, thereby avoiding the abnormally low prices occasioned by heavy arrivals on the market. actions,

As

for the

new government’s

15-percent surcharge on

was designed

as a temporary measure an estimated end-of-year $2. 26-billion balance of payments deficit. It does not affect the imports of food, unmanufactured tobacco, or basic raw materials. It does, however, affect manufactured tobacco products, of which the United Kingdom imported 617,000 pounds last year,

imports, this action

to relieve

value of $4.36 million. Imports from the United accounted for 66 percent of the cigarette imports and under 4 percent of the cigars. at a c.i.f.

States

Trade prospects for 1965

and certain oilseeds 1964 were particularly large, partly because of Communist Bloc purchases on the international market which caused importers to contract forward for substantial quantities from the United States, for fear of a shippingspace shortage. Such a situation is unlikely to influence 1964-65 buying. Britain’s imports of grains, pulses,

in

fiscal

Furthermore, the large domestic grain crop this year should result in lower import requirements. The wheat crop

is excellent, with the milling quality reasonably good, so that British millers have indicated that they expect to take at least 1.4 million tons of the domestic crop.

Barley imports spite of the

to be a

little

If

anything

Kingdom

is

to limit U.S.

coming

The

ditions.

year,

farm shipments to the United

it

grain crop got off to a good start as the result

of a mild winter and abundant moisture during the spring

and early summer.

Warm

onward meant

the

that

dry

grain

weather from harvest

mid-July

was begun

early

and completed easily and quickly, with a minimum of drying necessary.



With the best September weather since 1911 that is, the warmest with the least rain pastures have been dry.



but

little

November

difficulty

9,

1964

is

anticipated because of the plentiful

fall

The

below

last year’s level in

quality of the grain

is

said



particularly important for the export be no more than average. The heavy crop may well affect the demand for other imported feed grains, however.

trade

is more likely to be the fine, and for some crops, record harvest that British farmers reaped this past summer under almost ideal weather con-

this

not

crop.

disappointing, and the quantity suitable for

malting purposes

Good weather, good harvest

may

bumper

—may

The demand for rice, all of which must be imported, depends largely on potato supplies and the weather. Unless a mild winter keeps storage losses of potatoes sible tightness in

supply next spring

potatoes are scarce and expensive

is

low a pos-

indicated.

more

rice

And when

is

used.

There is little prospect of any easing of the butter market for some time. Fluid milk and cream consumption is increasing fast enough to make inroads into the supply of manufacturing milk, so that domestic butter production is not likely to recover quickly. When new quotas are

(Continued on page 16) Page 3

I

Indonesian splitting

husked coconuts

to drain

out the milk and start the drying process.



Production of copra long a major industry in

Indonesia

—has been

virtually static

over the

last

few years.

Indonesia Having Trouble Maintaining Its Copra Exports By

CARL

Former

WINBERG

O.

million of a decade ago. Accounting for most of the

U.S. Agricultural Attache

metric tons; Sumatra, 260,000; and Sulawesi, 335,000.

Djakarta, Indonesia

The

now comprising

islands

Indonesia have for

many

years been important producers, consumers, and exporters of copra. In the copra export trade, Indonesia

only by the Philippines; yet today

down

its

is

surpassed

shipments are on the

trend and could very well continue in that direction.

Last year registered shipments of copra from Indonesia

were only about a

550,000 shipped 1938. Rising domestic consumption has contributed

out in to

The

difficulty

country was

fifth

as large as the

but the trouble goes

decline,

this

may have begun

still

activity

much

in the

the

of

the

rebel

during this time was centered in the copra-pro-

ducing areas.

But the real decline set in after the Dutch had left. Without the technical know-how provided by the Dutch, the Indonesians failed to maintain their coconut groves.

Roads, too, were

to deteriorate,

left

and the present-day

lack of good roads and lack of adequate inter- and intraisland shipping hindered the export of copra.

The outlook

is almost as bleak. Lacking government cannot act to materially increase production. In fact, government price-fixing has discouraged increases in production and resulted in a large contraband trade in copra. Added to this is the loss of a major market Singapore-Penang because of the cessa-

for the future

sufficient funds,

the





limiting factor

demand

the export of copra

in

for coconut

is



the large

traditionally

used

in

Generally, with an increase in

the preparation of food.

purchasing power there

oil

a similar rise in domestic con-

is

sumption of copra. Currently, however, consumption

is down because of and even heavily populated Java often shorti on coconut oil is apparently receiving sufficient quantities! to meet the limited demand.



inflation,



HJ|

fill

58

m

when

and struggling

Much

A

domestic

deeper.

1940’s

the Netherlands Indies

independence from the Dutch.

for

out-!

put are the islands of Java-Madura, with about 275,000

Foreign shipments •

The main sources

copra exports

are

!M

avail-i,

SC

and Sumatra, with 100,000. Other smaller exporters are Malukus, West Kalimantan, and East Nusa Teggara Islands. able

for

u

shipment,

I

!,

Hi

While Mainland China, Japan, the USSR, West Germany, and the East European countries all import copra from Indonesia, Singapore-Penang had been the major market until Indonesia’s confrontation toward Malaysia.

The confrontation has

Mi

?

not only cut off this prime buyer

of Indonesian copra but has also greatly disrupted transportation of the country’s copra to market. In the past,

many

(fl

small ships from Singapore plied the it

smaller Indonesian ports, especially in the Riaus, Sumatra,

Kalimantan, and Sulawesi, to purchase copra. Their activities

tion of legal trade with Malaysia.

Indonesian

of

Sulawesi, with about 130,000 metric tons currently

have been largely curtailed, and as a

result

®

1

moving

!

k

copra from the smaller ports to the deep water ports for

1

Output practically static

The copra growers, at

industry,

much

is

the

export

which is dominated largely by small same as before World War II. Area,

about 4 million acres, has not increased appreciably

from the prewar

number their

mated

yields at

estimate

level,

nor have

of coconut trees in are

declining.

yields.

In fact, a large

Indonesia are overage and

Production,

unofficially

1

to 1.2 million),

is

increasing

difficult.

Indications

The market

to

suggested as an

Singapore-Penang but quantities,

at

least

shipped there. The Philippines

(official

export markets for

Another, though

I

p



Philippines has been

significant

;

problem through-

that transportation will continue to be a

out this year.

only slightly above the 1.2

about 1.4 million metric tons for 1964 is

esti-

become

has

are

its

own

of is

it

alternative

doubtful that any

is

legal

exports,

will

be

struggling to maintain

production.

less recent,

problem

LI

mr & j

I

is

the large

i

p

amount it

Page 4

Foreign Agriculture

Clockwise, Indonesian coconut grove; prepared

copra ready for bagging; and husking the coconuts. The all-purpose coconut provides food for

many

of the Indonesians as well as yielding

copra

earner.

—a valuable foreign exchange

of copra shipped out illegally.

over

maximum

censes,

exports

and various

more

The government’s

control

prices, as well as destinations, export certifications,

has

li-

made contraband

profitable than registered ones.

is

is

probable that

to increase the legal

in

shipments to 170,000 tons

in

in exports. This

com-

panies get 40 percent, private exporters 20 percent, and the

some years unregistered exports have been about equal to registered ones. Such was likely the case last year, when registered exports amounted to only about 100,000 metric tons. The government’s goal It

companies and private exporters to share

year’s exports are to be divided so that state trading

IKKI

the balance.

Whether

program can be

depend on main copraproducing areas, who have some degree of autonomy and utilize copra exports to earn much-needed revenue. this

realized will

the governors, military and civilian, of the

1964. Future depends on country’s economy

Marketing cooperatives

To accomplish

its

goal of expanding legal copra exports,

as well as to find outlets to replace

Singapore-Penang, the

government has been attempting to channel all trade into government-sponsored organizations. The inter-island shipment and export of copra has now been officially given to the Association of Indonesian Copra Cooperatives (the IKKI). In the first part of this year, the new organization arranged government-to-government contracts for copra exports to Japan (one of the sales completed in May 1964 was at US$179 per metric ton, c.i.f. Japan), Mainland China, and the Netherlands. The IKKI also fixes the domestic price for copra throughout Indonesia. For the first 7 months of 1964, the price was rupiah 5,500 per quintal, exclusive of packing. In certain areas of Indonesia, copra can be sold only

who, in turn, handle the storage and distribution, whether for export, inter-island shipment, or resale in an Indonesian market. Crushers must therefore purchase only from the cooperatives. The IKKI may permit the government state trading to cooperatives

November

9,

1964

While the potential for expansion of Indonesia’s copra is great, little action has been taken in this direction. The government annually makes a limited amount of money available for expanding and rejuvenating coconut cultivation. These funds have not been sufficient, especially in view of the country’s inflation, to significantly increase production, or to replant fast enough to counter declining industry

production of trees that are past their bearing age.

And

unless Indonesia receives heavy outside assistance, no in-

crease in the funds will be possible.

Indonesia needs to change

its

freer sales of copra, but such a to the

pricing policy to permit

change would be counter

government’s policy of socializing agricultural pro-

duction and controlling the markets by use of state trading

companies. Better intra-island and inter-island transportation

would help the collection and export of copra

Indonesia, but there in the

is

little

in

likelihood of this occuring

near future. Copra production and exports for the

next few years, therefore, are expected to maintain about the

same

level as in the past 3

or 4 years, or even to

decline slightly. In any case, they are not likely to

rise.

Page 5



U.S. Exports of Animal

:

New

Products Soar to

Feed grains and soybeans are

Levels

I

:

t

growing

setting export records too, as

+ :

abroad

prosperity

stepping

is

up demand for more

and

meat, milk,

eggs.

,

high-protein animal products and for the agricultural

raw

materials to produce these foods for the world’s rapidly

growing and increasingly prosperous society. Incomes are on the rise in leading foreign markets, and people are spending much of this new wealth to upgrade the quality of their diets. For example, in Japan, the largest foreign market for American farm products, people are eating more meat, milk, and eggs every year. Japanese consumption of high-protein animal foods is expected to increase dramatically during the next decade. In Western Europe, another major dollar market for U.S. farm products, the trend is the same. In these two large markets, and in many others around the world, U.S. exports of animal products and animal feeds are expected to receive a big boost from growing prosperity abroad, competitiveness of U.S. farm products, and expanded export promotion programs. This trio of forces has already produced

new

export records for

many

of these products.

meats and meat products, $118 million; hides and skins, $82 million; poultry products, $78 million; and live animals, $34 million. As the table illustrates, the substantial gain in animal product exports in fiscal 1964 was accounted for largely by increased shipments of dairy products, animal fats, and red meats. Much of the increase in dairy product exports came from greater sales of butter from Commodity Credit Corporation stocks to Western Europe. Also, larger exports of nonfat dry milk, butter, and butteroil under the Food for Peace program contributed to the more than one-third increase in dairy product exports in fiscal 1964. Exports of meat and meat products reached 425 million pounds as compared with 302 million a year earlier. Increased exports of fresh pork to Japan, Western Europe, and Canada accounted for a large share of this increase. Pork exports advanced to an estimated 160 million pounds in fiscal 1964, up 58 million pounds from previous fiscal lar

year

earners

included

levels.

0

10

new export peaks were reached by many

Last fiscal year,

U.S. animal products including nonfat dry milk, hides and skins, butter, and variety meats. Poultry exports were the second highest ever recorded. Foreign sales of animal prod-

Gains in exports of animal fats were accounted for by and inedible tallow and greases. Lard exports increased from $41 million to $62 million. Most of this additional lard went to the United Kingdom, traditional buyer of about 80 percent of U.S. lard exports.

ucts in fiscal 1964 attained a

new high

up $167 million from the previous

The

1964 was

skins,

A

fiscal year.

and greases. Exports of these prod$216 million up 46 percent over the previous year. However, with the exception of hides and every single category of animal products showed in fats, oils,

in tallow

exports represents larger dollar sales

to Japan, Italy, Netherlands,

UAR

(Egypt), Poland, and

Spain.

greatest gain in animal products exports in fiscal



ucts reached fiscal

of $772 million

The gain

substantial export gains.

ucts

strong market development is

program for poultry prod-

credited with moderate gains in exports of poultry

products, despite sales losses to Western Europe because

of a system of variable levies imposed by the European

Economic Community. Increased sales to Japan and other markets more than offset losses in West European sales, and the overall gain in exports of poultry meat was about

live animals were up 42 percent; dairy prod32 percent; hides and skins, 4 percent; meats and meat products, 36 percent; and poultry products, 12 percent. Overall export gain of animal products in fiscal 1964

34 million pounds. Exports of poultry meat ($63.5 million) were the second highest on record, being surpassed only by exports of $83.9 million in fiscal 1962.

was 28 percent.

Feed grains soar too

Exports of

ucts,

Fats, oils,

and greases not only showed the greatest per-

centage gain in dollar earner

fiscal

1964, they also became the leading

among animal product

exports. Dairy prod-

ucts were a close second at $203 million. Other major dol-

U.S. feed grain exports reached a record 16.1 million tons in fiscal 1964

—more

EXPORTS OF ANIMAL PRODUCTS

1962-63

AND

1962-63 Mil.

1963-64

dol.

154 148 79 87 70 67

203 216 82

Total animals

& animal products: 605

772

1

2

Fats, oils,

2

and greases

Hides and skins _ _ Meats and meat products Poultry products

_

Other

Preliminary.

_

Change

Mil.

dol.

Dairy products

1

118 78 75

was $850

these record-level exports

set just

1

world trade

in

Dollar value of

million,

up 5 percent

year ago.

new

export records for feed grains in major dollar markets.

Since initiation of this program, exports have almost tripled. Percent

+32 +46

+

4

+36 +12 +12 +28

Excludes Title III, P.L. 480 donations of butter and ghee which are included in “Other” exports of animals and animal products. Page 6

all

Department officials credit an active overseas market promotion program for much of the success in establishing

1963-64

Commodity

than half of

corn, grain sorghums, oats, and barley.

from the previous record U.S.

The most

noticeable

example of success

foreign sales of U.S. feed grains

began there

r:

^

10

I

I

loda

I

si

sy

j

Stiff !

lull

BOBS

11 is

Spin:

large increases of lard

Animal products set records

j

1-

I

I

j

All signs point to a bright future for U.S. exports of

in

is

Japan.

in

When

promoting promotion

1959-60, U.S. feed grain sales amounted to

only a quarter-million tons a year. Last year,

1

every 7 bushels of feed grain exports went to Japan

out of

—about

2.5 million tons altogether.

Results in Spain and Italy have been almost as dramatic.

(Continued on page 16) Foreign Agriculture

Sate

kpli

In

citrus trees

Expanding

1961, Hurricane Hattie swept

October

Crown Colony its

Now

Honduras

British

across

the

Honduras damaging many of

of British

and causing production

to

drop

drastically.

Approximately 60 percent of the colony’s grapefruit crop was lost, while the oranges harvested totaled only 44,000 boxes compared with 718,000 boxes the previous year. For this small Caribbean country it’s about the size of





Vermont ally

this

was a severe economic blow

accounts for 25 to 30 percent of

its

as citrus

norm-

foreign exchange

earnings.

Today, some

3

years later, the industry not only has

completely recovered fa later evaluation showed that the root systems of the trees

were not permanently damaged),

Citrus Industry

Its

or no expansion is taking place for grapeany expected in the near future. Stimulating this expansion was the Florida citrus freeze in 1962-63. Up until then Honduras had only one citrusprocessing plant, which manufactured mainly hot-pack concentrates; but when the Florida crop declined, a Canadian firm, which had purchased 9,000 acres of land in the Stann Creek area, hurried to complete its frozen concentrate plant. This was done by April 1963, and in 2 months of that year 211,000 boxes of oranges were processed into frozen concentrate, most of which was shipped to Canada

however, fruit,

nor

little is

via the firm’s factory in Plant City, Florida.

While

this

has proved profitable to the country’s citrus

may

but has started to expand. In 1963-64, orange production

growers, two factors

reached an alltime high of 800,000 boxes, while grapefruit,

although both climate and

at

268,000 boxes, exceeded the pre-hurricane

Most of

the country’s citrus

is

grown

in the

level.

Stann Creek area, irrigation

sustained commercial production.

about 40 miles south of the capital of Belize, and the nearby Cayo and Toledo areas. About two-thirds of

First,

favor citrus growing in the

Stann Creek

district

in

limit further expansion. soil

will

probably be necessary for

And

second, there

is

the

matter of export markets. Until 1963, virtually

all

of the country’s processed citrus

|

the orange plantings are concentrated in the

few large growers,

the

remaining

one-third

hands of a distributed

among growers with holdings ranging from 2 to 15 acres. It is in the Stann Creek and Cayo areas that considerable in

1962

to



from 4,000 acres in oranges 6,200 acres by January 1964. Estimates in-

expansion has taken place dicate that about

1,000 acres of

new orange

groves will

be planted here annually during the next 4 to 5 years;

Right top, picker examines grapefruit as he packs

them in field crates, and below, view of Stann Creek citrus groves, country’s biggest growing area with plant and houses for workers in background. Citrus

is

transferred

from the

trailers for delivery to

field crates to tractor

nearby processing plant.

went

to the

United Kingdom, while Mexico bought small

quantities of fresh fruit.

Now

British

Honduras faces the

problem of expanding its markets in the United Kingdom, Canada, and perhaps other countries. With the recent opening of the British market to U.S. frozen concentrates, the demand for hot-pack concentrates may decline and this might lead to the development of serious competition with the U.S. frozen product.

Indians Badly Hit by

Peak Prices

Prices of oilseeds and vegetable oils in India have risen

rapidly and substantially since January of this year, for

although production

1963-64 changed

in

the previous season, a larger

from

little

money supply

in the

that of

hands of

for Edible Oils whole seed. This means that oil production hovers around 50,000 metric tons a year, which is far short of the Third Plan production target of 100,000 metric tons as

in

1965-66.

and a general shortage of food, particularly wheat, contributed to strong demand, hoarding, widespread speculation, and inflation. As a result, serious shortages

of copra)

now

acreage

the public

prevail in India with regard to edible

oils.

After declining in 1962 and 1963, prices for

oils

and

began rising in January of 1964 and attained peak September. By then prices for edible oils were 33 to 63 percent higher in the Bombay wholesale market than a year earlier, and peanut oil was the equivalent of 29.5 cents a pound. With vegetable oils a key item in the diet of vegetarian India, the effect on the cost of living of the average worker has been drastic. With a production gain in prospect for 1964-65, it is hoped that the situation may ease somewhat now that the new peanut crop has begun to move in bulk. Also, it may be influenced by the import of 75,000 tons of vegetable oils from the United States contracted for in late September under P.L. 480, and by whether the prohibition on the oilseeds

levels in

export of edible

oils is

Indian coconut output in calendar year 1964 (in terms

650.000

The

oilseeds

other three, the following February. In addition, cottonseed and coconuts are important to the Indian fats and

economy and, in fact, contribute a larger tonnage than some of the leading oilseeds. The marketing year for cot-

oils

tonseed

is

October-September, and for coconuts

it

is

the

calendar year.

According to recent official estimates, the acreage planted major oilseeds rose from 25.1 million acres in 1961-62 to 36.6 million in 1962-63, and then declined to

its

Third Plan target of

No

data are available on current production,

but 5 years ago it was slightly over 31,000 metric tons annually, of which about 56 percent was utilized for human

consumption. Imports of animal

fats are limited to small

and

quantities of tallow, for industrial purposes mostly,

marine Edible

to

for medicinal use.

oils

oil

exports banned

levels of internal prices higher than those of

world

Government has followed an export

Indian

the

under which

and cake are exported at a loss for and copra. In 1963 its export earnings from oilseeds, oils, and oilcake reached $118.1 million, setting an alltime record. policy,

produced in India are considered to be peanuts, sesame, rape and mustard, flaxseed (linseed), and castorseed. Peanuts and sesame are harvested and moved to market beginning in October, and the five principal

To meet

1.7 million acres.

population.

prices, India’s leading oilseeds

1963, and was achieved on about the same

in



779.000 metric tons, India proposes to bring increased acreage into production and to help farmers with improved seedlings at cheaper prices. While most countries count heavily on their animal fats and oils, these are of little significance to India, largely because of the religious sentiments of the majority of the

With

maintained.

estimated at 700,000 metric tons, as against

is

oils

the privilege of importing coconut oil

Earnings continued to rise through June of this year, showing an increase of about 7 percent over the same period in 1963. Then in July the government banned exports of all edible oils as an anti-inflationary measure, and also to conserve supplies for domestic use since some of the Indian States were suffering from serious shortages. Even peanut exports are not allowed, although there has been no official announcement to the effect.

to the five

36.0 million in 1963-64.

was caused by peanuts,

The drop

in

acreage this past year

substantial reductions in

the

acreages of

sesame, rape and mustardseed, which were re-

Outlook more promising

The high

prices of vegetable oilseeds and their products January are reported to have induced farmers to

since

Weather

plant larger acreages to oilseed crops this year.

portedly the result of insufficient and untimely rains at

so far has brightened crop prospects, and indications point

sowing season.

to larger crops than last year. Barring

Production of the

five

major oilseeds

in

1963-64 was

7.096.000 metric tons compared to a revised estimate of 7.113.000 metric tons for the previous year. There was a record peanut crop of 5,291,000 tons (in shell), up 47,000

two other major edible oilseed crops were smaller 12 percent and rape and mustard by as much as 30 percent. Peanuts are by far the largest oilseed crop in India, constituting about 70 percent of the total, so tons, but

—sesame by about

that the record crop offset the shortfall in the other two.

However, India is still far short of the goal for its Third Five Year Plan of 9.96 million metric tons of edible oils in

any weather mishaps during the coming winter months, expectations are that the oilseed crops this season will be generally larger by about 5 to 10 percent than they were in 1963-64.

As

for the export ban,

government policy at this stage

is difficult

it

what the

to forecast

be during the coming months, but

can safely be said that total exports of vegeand their products this year will be smaller,

though oilcake exports

may

be larger.

Considering crop and export prospects, the tendency the market

is

for a decline

from present high

in

prices in the

months ahead. Prices for peanut

1965-66.

it

table oilseeds

will

oil

distant deliveries of peanuts and have already exhibited a bearish trend compared

levels. However, any downward presfrom increased supplies could be eased if the Indian Government changes its policy and allows liberal exports of seeds and edible oils.

with existing price Cottonseed, coconuts, animal fats

Cottonseed production in 1963-64 was around 1.9 milup 44,000 tons from the year before. It

lion metric tons,

may

rise

again this season. However, only about one-fifth

of the crop

Page 8

is

crushed for

oil,

the rest being fed to cattle

sure

—Robert

B.

U.S. Agricultural Officer,

Evans

Bombay

Foreign Agriculture

I

MARKET DEVELOPMENT Paris Meeting Called To I

& export programs

Make Plans

below that year’s production. The imbalance in the last 2 years has added around 5 million bales to already burdensome stocks in produc-

New

for

World Cotton Promotion by Producers, Users Representatives of cotton producing

and cotton importing countries will convene in Paris November 23 to consider proposals calling for a broadbased program to promote cotton consumption internationally. Attending the special 5-day meeting will

be government

who

and cotton

officials

some 40 countries

industry leaders of

promotion as the only way to solve the twin problems of mounting world cotton stocks and dwindling see

world markets. The U.S. delegation be headed by Robert C. Sherman,

will

Director of the

The meeting

FAS

appropriations,

gressional

since

Constitution prohibits the levying of

is

ICAC which

fore the mill

owners

suggested that

in importing countries de-

promotion a fixed percentage from each invoice duct

for

international

covering cotton purchased. Several importing countries,

however, had ob-

jected to this so-called

Rotterdam Plan.

As

fund distribution,

to

it

is

managed by

matters of impor-

production,

trade,

and

consumption of cotton. The ICAC has gone on record as favoring international promotion by overseas producers and importers pointing out that if a program is not begun soon, cotton



may never regain the ground lost manmade fibers in world markets.

to

Framing a workable program

Chief task confronting the delegates be to develop a workable program, including the best way to in Paris will

collect and distribute funds for cotton promotion, and what forms promotion should take.

Early discussion will center on one which evolved from the 23rd Plenary meeting of ICAC which was plan

endorsed by Cotton Council In-

later

and the International Federation of Cotton and Allied Textile ternational

Industries.

The proposal

is

centage of the value of



possibly on

the

its

termine whether this

cotton ex-

order of 0.7

percent. Individual countries

levy”

would de-

“minimum

export

to be collected

from producers, shippers, or the governments themselves. Whoever pays the levy may add that amount to his selling price, so that is

eventually the levy

November

9,

1964

At the recent Plenary Meeting of ICAC, the U.S. delegate empha-

being

suggested that funds from the export

Fund

a board that represents

equally both producing and importing countries.

Any

importing or consum-

ing country wishing to participate in the

promotion under the aegis of an

appropriate

could

apply

national

cotton

institute

Fund’s board for an annual allocation. Funds to

the

Central

would be allocated on the basis of a country’s present consumption of cotton textiles, its potential for expanded consumption, and the competition offered by manmade fibers. In addition, some promotional projects would be carried out on behalf of all cotton consuming countries with money from the Central Fund.

Whether the

that while

much

of the stock

buildup has occurred in the United States has

prove the balance in

mand by

this

country,

worked to imsupply and de-

drastically reducing

its

acre-

age during the past decade.

Economists, however, say the real

problem

is

underconsumption, rather

than overproduction. With an expand-

world population and generally incomes, the present imbalance between production and consumption ing

should not

exist.

Per capita consumption in less developed areas (Africa, for example) is only one-third of the world average.

The United

States, on the other hand, consumes three times more cotton per capita than the rest of the world. Theoretically, had the world’s average per capita consumption been as high as

of the United States

that

there

last

year,

would have been a shortage of

Cotton’s Dwindling Share* of World Mill Consumption TOTAL (metric tons

of cotton

equivalent]

Paris gathering accepts

new one, it is imperative that the world’s exporting

this

proposal or drafts a

and importing countries take immeditoward correcting the present

ate steps critical

imbalance in the supply and

demand

of cotton.

that each cotton ex-

porting country be asked to contribute to the promotion program a set perports

postwar high reached in 1956-57.

rising

Allocation of promotion funds

International

discuss

the

alternative to a previous proposal be-

nually to

the

bales,

sized

This method of fund-raising

levy be turned over to a Central

to

stocks on

the

export taxes.

Cotton Advisory Committee, an intergovernmental organization that meets antance

the

Cotton Division.

being held under the

is

auspices of the

would probably come from Con-

tions

amount brings total hand to roughly 25 million a few thousand short of the

ing countries. This

of cotton’s export price. U.S. contribu-

may become

a part

Cotton output vs. consumption

While cotton production continues mount 50 million bales in 1963-64 against 41 million 10 years ago consumption in recent years has failed to keep pace. Between fiscal 1960 and 1963, world consumption declined steadily from 48 million bales to 45.4 million. In fiscal 1964 consumption climbed back to nearly 48 million bales, but this was still 2 million bales

to





Page 9

88 million bales instead of a 2-million-

USDA Honors Norbest Turkey Growers’

bale surplus.

Export

Followers of the world cotton prob-

lem

realize, of course, that

tion

in

consump-

developed areas, where

less

Drive at Agricultural Co-op

Month Observance

[

underconsumption is concentrated, cannot be made to increase overnight. But in the industrialized countries, where purchasing power is stronger, there is a big immediate potential for expanded utilization. To capitalize on this potential, cotton will at least have to maintain

its

traditional share of the

growing world textile market. failed to do so since 1954.

has

It

That year accounting for 68 percent of total world fiber consumption, cotton’s share had dwindled to 57 percent by 1963. Manmade fibers took up the slack, claiming only

consumption 10 years

in

23 percent of fiber

1954 and 35 percent

later.

The inroads made by manmades

are

traceable in large part to the intensive

manmade

efforts of

producers to cap-

ture a bigger share of the fiber market

through promotion. In this country alone,

manmade

ber producers are spending an

fi-

esti-

mated $45 million per year on market development, foreign and domestic. If non-U.S. producers are included, the

may total as much as $100 milEven wool producers, who com-

figure lion.

mand

than 10 percent of the total world fiber market, will have spent less

around $36 million each year on international promotion during the 5 years ending with 1968.

By

contrast, annual expenditures for

international promotion of cotton are

At special ceremonies in the Department of Agriculture marking “International

Day”

in the

USDA’s observance

“Agricultural Co-op

of

Month,” an

outstanding U.S. agricultural cooperative,

Norbest Turkey Growers of Salt

has been a steady customer of Norbest, as well as a quality buyer.

only

throughout Holland,

parts

He

not

and turkey

turkeys

distributes

but

transships to Norbest’s other leading

markets—West Germany, and

niques that went into achieving this

000

status are outlined by Herbert Beyers,

To expand this important overseas market, we have placed much promo-

For many

years, Norbest exported

When it appeared market would open in Europe, Norbest in 1957 sent me on a 6-week exploratory trip to Western Europe. Based on trip findings, Norbest decided to begin market development in the Netherlands, where the government had recently lifted a quarantine on U.S. poultry, and had dissolved the monopoly on retail poultry sales long held by trade guilds. We began promotion in The Hague by meeting with various Dutch government officials and members of the trade. We succeeded in selling a Rotterdam importer a trial order of Norbest turkeys. To establish consumer acceptance of this and future orders, Norbest held a promotional turkey luncheon for leading Dutch hotel and restaurant men, chain store executives, and the turkeys to Canada. that a

food press.

Italy.

1961-62, the volume of our

Since

export sales has jumped from $255,to over $1.2 million in fiscal 1964.

emphasis on

tional

European trade development to Europe. Lately,

participation

in

and on market by Norbest officials

fairs

trips

lj

we have

tion in Japan. In

stepped up promoSeptember 1963, we ;

participated in the U.S. poultry products

show

U.S. Trade Center,

at the

isi

Tokyo. We have also sent salesmen to Hong Kong, Formosa, and the Philippines, where business is developing. Several factors figure in Norbest’s successful sales efforts overseas. Fore-

most,

we

our business to top under official

restrict

grade

turkeys

USDA

grading standards. that

manufacture withstand

We

is

for our economical to

both

and sturdy enough

rigorous

handling

long-distance shipment. Also, ally

quote

range their

have de-

export package

veloped an turkeys

sold

prices

f.o.b.

States to foreign buyers

Since then, the Rotterdam importer

own ocean

the

who

to

during

we

usu-

United then ar-

transportation.

estimated at only $2 million or $3 million

—or

less

than 5 cents per bale of

the world’s cotton crop.

(Australian

wool producers are assessed $5 per bale for promotional purposes.) It

has become

all

too clear that cot-

economic stake cannot be properly safeguarded so long as worldwide market development must rely on the limited funds available to Cotton Council International, the only major body which promotes cotton utilizaton’s

tion.

CCI’s

activities

are

materially

helping cotton consumption in those countries where promotion programs are being carried on, but financing has

been

difficult

with the United States

the only cotton producing country par-

Half of CCI’s funds are being supplied by the USDA through ticipating.

Public textile

in

16

Page 10

Law 480, the remainder by manufacturers and distributors

At

CCI-member

for International Affairs, presents the

countries.

USDA

I

Switzerland,

Lake City, received the Presidential “E” Award for its contribution to the U.S. export expansion drive. The tech-

Norbest’s general manager.

Its

also

ceremony, Mrs. Dorothy Jacobson, Assistant Secretary of Agriculture “E” Award to Norbest’s Herbert Beyers. Foreign Agriculture

a

France, the French canning industry

Latest exhibit of U.S. foods

may

be encouraged to produce the canned beans on a large scale.

Food Exposition Opens

International

in

Paris

The U.S.

rice industry, represented

by the Rice Council, U.S. agricultural products are those of

dustry

is

Salon Interna-

citrus,

dried

first

de L’Alimentation food exposi-

(SIAL) which opened yesterday

tion

In fiscal 1964 France bought

$142

worth of U.S. farm products.

But since 1961,

when

the

USDA

last

French food fair, U.S. foods have been produced, processed, and marketed in new and better a

in

participated

The U.S.

ways.

exhibit will serve to

acquaint the French food trade and consumers with these improvements, as well as to emphasize the high quality of U.S. food products available to the

Common

which

and vegetable

fruit

featuring fruit,

deciduous

Aim

of this exhibit

is

fruit

Market countries,

all

in-

fruits,

and canned

such as peaches and

fruit

cocktail.

to test the con-

sumer acceptance and demand

9-day run.

in Paris for a

million

The U.S.

some 20 nations being exhibFrance’s

at

ited

tional

among

for the

majority of U.S. fruit products which in recent

GATT negotiations have been

granted

some measure of access

to

the French market.

The U.S. dry bean sented

industry, repre-

Dry Bean

by the National

Council,

is

exhibiting a variety of dry

a

hors

of this type is seen to be an important means of increasing U.S. rice

France under the new Market rice regulations that became effective September 1. The U.S. honey industry’s National Honey Packers and Dealers Association is promoting bulk and specialtypack honeys of the numerous varieties for which U.S. honey producers exports

to

Common

aromatic

points

from

European home economist. Promo-

are

exhibit

featuring an

tion

up a potential consumer demand for canned pea beans (such as pork and beans) in this

is

dishes,

d’oeuvres to desserts, as prepared by

beans and offers samples of bean foods. If

rice

internationally sage,

known

—such

as

orange blossom, and

France is the second market for U.S. honey.

buckwheat. largest

will

drawing thousands of European consumers and opening,

the

exposition

is

tradesmen. Parisians are also turning

numbers

out in large

downtown window

as a

result

of

displays promoting

SIAL. The show occupies 430,000 square

the foods featured at

U.K. Fruit Sellers Brought to U.S. for National Apple

A

box of Maine McIntosh apples, Mr. and Mrs. lohn Ainscough are inspecting (below) at the London Trade Center’s recent U.S. Processed Foods Show, began a chain of events that ended in this British like those

feet of the city’s largest exhibition hall.

main

exhibit area, participants

and demonstrating their food products and offering samples, are displaying

fairgoers

same items

at

may purchase

these

a special supermarket

adjacent to the exhibits.

The U.S.

exhibit

—by

far the largest



cough’s letter supplied this information,

and

Maine

also praised

apples,

saying in part: “The apples, apparently

packed in early January, were indeed an excellent, fresh condition pleasure for me as a retailer and a



in

value for the discerning customer.

A

United States last month. The Ainscoughs, fruit retailers of Lancashire and steady importers of

reliable

turnover of Maine apples

is

McIntosh apples,

this past

March

re-

ceived a crate of apples containing a

proof of their consistent high quality.”

The

letter

by

led to an invitation

Maine’s Governor Reed to during National Apple

visit

Week

Maine

as guests

Maine news-

of the State Department of Agriculture

which the editor invited “How Did You Get This Paper” competition. John Ains-

couple toured the apple industry and

special apple edition of a

paper,

in

readers to enter a

with an area of 7,000 square feet

Week

couple’s earning an expense-paid trip to the

while

of

of

have representatives attending SIAL. With pre-show publicity begun by SIAL a full year in advance of the

In the

array

and

the

Pomological

had interviews over

TV

Society.

The

and radio.

is

promoting U.S. meat products, fruits and vegetables, rice, honey, and dry edible beans.

The U.S. meat exhibit in cooperaAmerican Meat Institute

tion with the will

be

of

considerable

interest

valent for the past several

in

— months —

France, where a beef shortage

preis

expected to continue despite a sharp rise in local

production

products therefore

are

this fall.

Beef

getting

chief

emphasis, but pork, variety meats, and

canned meats are also being shown and prepared in a special kitchen. Highpoint of the meat exhibit will be a “meat conference” to be held on

November

12. This will bring together

French and American trade leaders and economists for discussions of world meat demand and supplies, meat inspection rules and procedures, and consumer education programs. November

9,

1964

Page 11

WORLD Sf.K.

MARKETS

AND

CROPS

requirements and are authorized under a special Council

Imports More Lard, Uses More Animal Fats

U.K. imports of lard

in

January-August 1964 totaled

nearly 435 million pounds, 25 percent

more than those

of

from the United States, at about 400 million pounds, were 35 percent above the 1963 level and accounted for 92 percent of total imports. Takings from all other large sources were down. There was a big increase in British use of lard in margarine and shortenings but a sharp decline in that of whale a year earlier. Imports

and fish oils and vegetable fats. During the first half of 1964, 317 million pounds of oleaginous materials were used for manufacture of mara slight increase over a garine in the United Kingdom year earlier. Lard use in margarine rose from 37 million pounds to 78 million and accounted for 25 percent of the

regulation

allows payments of

Member

of health regulations within the exporting

State.

Australian Meat Shipments to the United States

Three ships left Australia during the last week of September and the first week of October with 5,116,160 pounds of beef and 302,400 pounds of mutton for the United States.



used compared with 12 percent in the first half of 1963. Use of whale oil in margarine dropped from 40

pounds

to

22 million; and vegetable

143 million to 130 million. Use of other

fats in

'

Ship and Destination

sailing date

Sept. 29

1

percent a year

1

Use

Use of

of shortening

Cap Ortegal Oct.

other animal

fats,

oil

1963 figures

with

15 (23), fish

oil

Percent

Quantity

pounds

Denmark Germany, West __ Belgium

Sweden Netherlands Others Total

Henry A. Lane &

of total

pounds

Percent 92.0

.9

399,801 8,389 7,260 6,990 6,852 2,852

.9

1,717

.4

1.1

668

.1

100.0

434,529

100.0

Percent

295,796 14,739 10,074 7,655 8,416 3,290 3,176 3,795

85.3

346,941

4.3 2.9

2.2

2.4

(Beef

239,680 67,200 250.880 33,600 282,240 264,320 33,600 1,966,720 134,400 78,400 40,320 107,520 452,480 96,320 134,400 33,600

I

}

Philadelphia Boston

2

)

New York

4

Oct.

Houston

_

Nov.

Philadelphia Baltimore

Mutton

1

Beef Beef Beef Beef Beef Beef

)

Mutton

1

6 10 12 14 16

Charleston Boston

1

Mutton

(Beef |

Pioneer Star

Mutton

Beef (Beef

30

Nov.

Mutton

(Beef

28

Norfolk

Cities listed indicate location of purchaser and usually port of arrival and distribution area, but meat may be diverted to other areas for sale.

The Honduran Government

1.9 1.8

1.6 1.6 .6

recently passed a law ban-

ning exports of cattle weighing this

1,000

1,000

United States ... France

Oct. 26

Honduras Prohibits Cattle Exports

January-August 1964

of total

329,280 367,360 183,680 322,560

1

30 (49), and

Percent Quantity

Beef Beef Beef Beef

in

IMPORTS OF LAR D

January-August 1963

Country of origin

23 28 Nov. 3

New York

including tallow 10 (8).

U.K.

Los Angeles

Charleston

earlier.

million pounds)

parentheses was whale

Oct. 19

1

these plus other fats in the manufacture

(in

Quantity

Gulf and Eastern ports

of whale and fish oil in shortening dropped con-

siderably.

Cargo

Pounds

San Francisco

Portland

million

with

1

Seattle

margarine

pounds (with 1963 data in parentheses) was fish oil 78 (88), butter 6 (5), and other animal fats 3 (2). Use of fats in the manufacture of shortenings in the United Kingdom in the first half of 1964 amounted to 159 million pounds, a moderate decrease from the 169 million in the same period a year earlier. Lard used in shortening increased to 45 million pounds in 1964 from 19 million, while vegetable oil use declined to 59 million from 70 million. This year, lard made up 28 percent of the total use of fats in shortening compared

in

Arrival date

Western ports

Sonoma

from

oils,

law

is

enforced,

cattle

less

than 700 pounds.

exports

will

If

be drastically

reduced.

Exports of cattle

in

1963 totaled 43,000 head, about the

Guatemala was the most important export market. However, significant numbers were also shipped to El Salvador and the West Indies. Exports of beef to the United States rose from 1.5 million pounds in 1959 to 9.3 million in 1962 and remained

same

as in 1962.

at that level in

1963. Exports to the United States during

Co., Ltd.

January-August

this

year totaled 5.4 million pounds, 11

percent less than in the same period of 1963.

EEC Subsidy Rates on French Beef, Cattle to Germany

A Common

Market Commission regulation authorizes France to grant subsidies on cattle and beef exported to Germany until March 31, 1965. The subsidy amounts to

DM

8 per

100 kilograms (0.9

weight for adult cattle and (1.8

US

DM

US

cents per lb.)

Honduras now has four modern export slaughter plants. The newest one, located at Choluteca, is slaughtering only 30 or 40 head daily through its capacity is rated as 200. The large plant at Tegucigalpa in 1963 exported 3 million pounds of boneless beef

to the

United

States, but has now'

discontinued slaughter.

A

cents per lb.) for beef.

The subsidy payments are to compensate for costs resulting from German veterinary and Page 12

live

16 per 100 kilograms

i

I

total

million

1

amounts equal to charges arising from health regulations imposed at the frontier by the importing Member State, where such charges exceed the normal cost incurred as a result

The

regulation.

Honduran

trade mission has been in the United States

additional

buying purebred beef and dairy

inspection

Development Bank. At the same

cattle

time,

for the National

Honduras has been Foreign Agriculture

— 1

importing hogs from the United States which was recently established by the ( near Tegucigalpa. Some of the purebred to farmers, and some will be used in the

foundation herds

(The program

Station. is

a

designed to distribute purebred pigs and beef

is

and dairy cattle to local producers at cost. Nearly 800 head of weaner pigs are expected to be distributed to producers under

this

program

in

The

through the

rise

half

first

Berlin,

Total

1964.

of

—up

percent

sales amounted to 42.8 from the 40.6 billion sold during January-June 1963.

pieces

billion

5.5

Filter-

tipped cigarettes represented 79.6 percent of total sales.

output

Cigarette

44.5

totaled

during

1964 first 6 months of compared with 42.0 billion

the

pieces,

billion

last year.

Output

in

the Federal

Republic was up 4.1 percent, and in West Berlin, 10.3 percent. For West Germany as a whole, cigarette output

Government has authorized imports of slaughter, despite protests from domestic pro-

was up 6.0 percent.

Israeli

for

cattle

Imports of Oilseeds Up, Vegetable

Italian

ducers.

These imports have been made necessary by rising defor meat ( Foreign Agriculture, July 20, 1964) which has outpaced the increasing domestic production. This production-consumption gap has been filled partly by imports of frozen beef. However, frozen beef is not a complete substitute for fresh beef and a projected shortage

mand

not expected to be alleviated

com-

pletely

prices

of

by increased imports of frozen beef. Rising fresh beef can only be prevented by importing

cattle.

of domestic beef

is

New Zealand Meat Shipments

to the United States

Six ships are scheduled to leave

November with 11,312,000 pounds States

West Germany, including West

Cigarette sales in

continued to

during the same period

1964.)

To Import Slaughter Cattle

Israel

German Cigarette Sales Up

stock will be sold

at the Comayagua Livestock Experiment Comayagua Livestock Experiment Station

which

farm

to stock a

Honduran Army

— 6,160,000

for the

New

Zealand during

of meat for the United

West Coast and 5,152,000

for

Oils

Down

Italian imports of oil-bearing materials in the first half

of 1964 were up 10 percent from the

some increase

despite

in

same period

domestic

oilseed

in

1963,

production,

largely rapeseed.

Imports of oilseeds gained substantially. However, those of vegetable oils declined by 4 percent because of a sharp

drop

in olive oil imports.

oilseed imports reflects a marked volume of sunflowerseed from Eastern Europe, larger amounts of peanuts from Sudan and Nigeria, and heavier takings of soybeans from the United States. This rise was in part offset by a significant reduction in rapeseed imports from Canada, France, and

The

Italian

in

rise

increase

the

in

Sweden. Responsible for the 4-percent decline in vegetable oil oil outturn of 1963-64,

the East Coast.

imports was the high domestic olive Ship

Sailing date

Quantity

Destination



1,000

pounds Mariposa Cap Delgado Saracen Monterey Knight Templar Port Adelaide

Nov.

3

West Coast

224

4

do do do East Coast do

3,360 2,240

7

24 14 28

which caused a 28-percent reduction in olive oil imports. At the same time, indigenous olive oil exports increased by 45 percent from 4,544 metric tons in the first half of 1963 to 6,585 in 1964.

The lems

large 1963-64 olive oil outturn created

marketing, owing

in

336

caused

living costs

1,568 3,584

less

expensive seed

many consumers oils.

some prob-

part to the fact that high

in

to

choose the

much

of a price spread between

I ess

two kinds of oil would naturally tend to increase olive consumption, yet the relative higher costs of producing olive oil would tend to prevent this. the

Congo’s Cigarette Output Down Cigarette

output in the Congo

oil

(Leopoldville)

during

January-March 1964, at 647 million pieces, was 14.2 percent below the 754 million pieces produced in the same period last year. The decline is attributed to the increase of slightly

more than 70 percent

in retail prices

following the devaluation of the Congolese franc on November 9, 1963. Retail prices of popular brands during June 1964 averaged about 34 francs per package of 20, compared with about 19 to 20 francs for the same month last

year.

Cigarette output in the

Congo during calendar 1964

is

not likely to equal last year’s level of 3,573 million pieces, but

is

expected to exceed 1962’s 2,523-million outturn.

To

further discourage imports of olive

of olive and seed

chased

(

from the 7,964 million pieces sold

down

first

half

15.8 percent

January-June 1963. were up. Cigarillo sales rose to 262 million pieces from 164 million. Sales of cigars and smoking mixtures were up 2.1 and 2.4 percent, respectively. Sales of the other tobacco products

November

9,

1964

in

may

be imported relative to the

Under

the

new

ratios, effective

that

oil

must be pur-

May two

21, 1964, for every

governmentmust be purchased. The old ratios were 1 and 1:1.2 respectively for olive oil and seed oil. Seed oil imports in the first half of 1964 totaled 44,930 tons 45 percent above the 30,973 of the 1963 period. unit of olive or seed oil imported,

held seed

units of

oil

:



This reflected increased takings of palm, soybean, coconut, oils;

declined.

from

Cigarette sales in the Netherlands during the

(as well as

Foreign Agriculture, Jan. 27, 1964).

and linseed

of 1964, at 6,709 million pieces, were

oil that

amount of government-held seed

oils

Dutch Cigarette Sales Drop Sharply

oil

seed oil), the government again decreased the proportion

a

animal

shift

fats

however, imports of peanut and rapeseed

The aggregate to

seed

and other

oil

fats

increase

may have

resulted

imports from the imports of

and

oils,

which

in the first half

of 1964 totaled 82,814 tons and 11,934 tons, respectively

down 4 and

9 percent from 1963 period. Cake and meal imports in the 1964 period

totaled

45,697 tons, or 15 percent above the 39,621 of the first half of 1963. Soybean meal from the United States, accounting for roughly three-fourths of the total, increased Page 13

by nearly one-fourth during the

months of

half of 1964.

first

Current prospects indicate a significant decline in the 1964-65 Italian olive oil outturn from the 1963-64 level.

Thus it would appear that imports of edible vegetable oils will show an upturn in late 1964 or 1965 and that retail olive oil prices

—lower

for the

first

half of

1964



will gain

relative to those for edible seed oils.

ITALIAN IMPORTS OF SELECTED OIL-BEARING

MATERIALS AND VEGETABLE OILS January-June

Item

Oil-bearing materials:

:

Cottonseed Peanuts 1 Soybeans Sunflowerseed Rapeseed Sesameseed Mustardseed

1961

1962

1963

Metric

M etric

Metric

tons

Copra

Total

343

343

449

92,832 175,144 29,951 46,067 16,114

108,681 196,537 54.025 17,320 20,150

474

313 460

216 515

100 426

219

19,443

23,717

27,457

14,516

14,616

254

300

473

313

508

13,009 9,436 3,244

14,029 9,464 4,840

4,333 11.672 4,384

2,894 6,901 2,568

1,821

5,681 7,509

501,831

628,221

743,238

388,169

427,516

204 85

30 905

4

10,389 1.873

1.038 1,121 1,034

49

1

15,816

2,146 136 1,674 14 112,230 17,786 25,525 7,765 15,978

8 1.580 3,108 3,823 1,001

2

_

72

117

1,474

664 183,405

Rapeseed Sesame

824 24

3

98,739 28,485 24,756

Coconut

Palm Palm kernel Linseed Castor

Tung

tons

calendar year increased by 11 percent from

IMPORTS OF OIL-BEARING MATERIALS AND SELECTED OIL-BEARING MATERIALS BY THE NETHERLANDS Item

1962

.

Others Total 1

Peanuts Soybeans Copra

197 5,089 1,626 141

62,831 5,398 10,906 2,943 7,212 115

45,063 8,858 15,244 3,523 9,361 84

1,595

626

670

892

72

5

137

186,793

206,413

93,748

89,993

Palm kernels Flaxseed _ Castorbeans Others

_

Total

Si

fffl

i«i

(o

k

W

Ml

Mi

,

k

1963

M etric

tons 54,043 366,450 107,311 130,489 68,185 2,833 37,108

311.545 125,805 127,490 60.618 3,968 35,423

766,419

704,036

tons 39.188

1963

1964

Metric

Metric

tons 24,098 173,957 74,033

tons 26,5811 260,493' 73,954

k W U

58,139 27,697 2,079 28,199

65,808 20,897 2,170 5,976

M k

388,202

455,879

fa

,

\

!

h

1

1

ill

>1

Peanut Soybean

!:

Rapeseed

Palm

34,569 30,214 18,685 36,729

4,223 16,761 2,872 1.757 46,136 10,003 40,477 46,446 10,544 32,341

260,617

316,794

190.528

211,560

oil

Sunflowerseed

oil.

1,300 11,504 19,442 9,415 5.986 68,443 11.903 58.565 49,934 17,224 63,078

oil

oil

oil

oil

Linseed

oil

Netherlands Oilseed Production and Imports Increase

Whale and sperm Fish

1964 of the two major oilseeds in the Netherlands, rapeseed and flaxseed, is estimated at 9,770 and 34,240 metric tons respectively, compared with 9,989 and 23,000 in 1963.

oil

2

_

_

oil

_

_

601 8,944

I U

371 5,976 10,116 5,670 5,442 54,499 9,460 45,291 46,815 34,127 42,850

oil

Lard Tallow

Production

B lit)

tl

Fats and oils: Cottonseed

2

3 Shelled basis. Includes corn oil. Excludes sulfur Italian Central Institute of Statistics.

ii

ft

January-July

1

128,371 15,349 27,955 7,011 16,468 148 1,470

m

jgi

important.

Oil-bearing materials:

514

$

and tallow, largely from the United States, partly displaced whale oil imports from Japan and Norway. Soybean oik imports gained markedly, reflecting relatively favorable prices. Purchases from the United States accounted for the bulk of the total, while imports from Israel and Denmark declined. Imports of peanut, sunflowerseed, and rapeseed oils all were significantly below those of a year ago. Total fish oil imports declined; however there was a 5,000-ton increased in takings from the United States, while supplies from Peru and Chile were smaller. Palm oil imports from the Congo (Leopoldville) and Indonesia made substantial gains, as did linseed oil imports from Argentina. Prospects for imports of soybeans and soybean oil in the remainder of 1964 are favorable, reflecting reduced supplies and higher prices for marine and peanut oils. However, supplies and prices of other edible oils are also

Metric

Soybean

Olive

Metric

tons

173,333 334,795 62,176 91,034 32,507

Vegetable oils: Cottonseed Peanut Sunflower

Metric

tons

529

kernels

Flaxseed Castorbeans Others

1964

80.992 337,301 32,225 103,364 20,687

38 73,385 204,646 93,155 64,854 19,765 128

Hempseed

Palm

tons

1963

this

the comparable period in 1963. Increased imports of lard

7,131 6,306 2,170 39,426 5,753

in

is

t

A A

(a



1

t t

Total 1

2

Shelled basis.

Compiled from

Excludes

official

liver oil.

is

is

sources.

ll

[

I

This

year’s

higher flaxseed outturn

reflected

a

signfi-

Australia’s Canned Milk Exports Continue High

cant rise in acreage; seedings of rapeseed declined slightly.

Yields increased because of relatively favorable growing conditions (Foreign Agriculture, August

bulk of domestic supplies

is

10,

exported; this

is

1964). The reflected in

!!

Demand

continued strong

For January-July 1964, bearing

materials,

at

one-sixth from those in the

456,000 metric

all

the gain.

In

tons,

rose

same period of 1963. Increased 1964, soybean imports rose by

one-half and represented 57 percent of the total compared

with 45 percent in 1963. Imports of palm kernels

some ever,

made

gains, while takings of flaxseed declined, as did those

of other oilseeds, largely flaxseed

mated those of

imports last

illipe

nuts from Singapore.

How-

from the United States approxi-

year (about 10,000 tons), because of

relatively attractive prices.

Fats and

Page 14

oils

of 1964, with 41 million in the

same period

of 1963.

I

I

t 1

Shipments went mostly

to

markets

in

the Far East and in

f

0

soybean imports from the United States accounted for virtually

in the first half

Southeast Asia. Malaysia, the principal outlet, increased

the Netherlands imports of oil-

nearly

markets for Australian canned milk

pounds exported, 12 million more than

small crushings of indigenous output, in 1963 reported at

1,300 tons of flaxseed and 1,686 of rapeseed.

in foreign

imports by the Netherlands in the

its

purchases 4 percent to 15 million pounds. Burma took more than last year. Sales to

9 million pounds, 7 percent

were 4 million pounds. Australia also reported North Borneo, the Philippine Republic, and Ceylon. Reduced purchases of nonfat dry milk by major markets

period,

substantially larger shipments to

brought January-June 1964 exports down 20 percent, to 21 million pounds. Shipments to India declined from 10 million

from

pounds

to 6 million;

7

to the Philippine

Republic,

5 million to 2 million. Sales to the Republic of South

Africa, which increased first

i

Indonesia, which had been only 25,000 pounds in the 1963

its

trade during this period, were

2 million pounds, 20 percent above those of 1963.

Foreign Agriculture

:

lillnited

can cotton transshipments through the United States. It affects primarily Mexican cotton produced in areas near

States Exports Less Cotton

j

types) amounted to 304,000 months (August-September) of the 1964-65 season. This was 52 percent below the 635,000 bales exported in the same months of 1963-64. Exports in September were 184,000 bales, compared with 120,000 in August and 361,000 in September 1963.

U.S. exports of cotton

running bales

in

the

(all

first

2

Sales of cotton for export in the 1964-65 season under

the U.S. border, mostly

Matamoros and Altamira. HowMatamoros area has declined

ever, cotton production in the

sharply in recent years. After reaching 550,000 bales in

1958,

it

dropped

to 163,000 bales

to total less than

75,000 bales

by 1963, and

trade reports suggest that cotton production in

may

sharply

a year ago.

structed

Year beginning August Country of

Average

destination

1955-59 1,000

1

1961.

each season since the

Some

commercial crop in may be condirect exports from

first

sources indicate that a compress

near Tampico to facilitate

1962 1,000

1963 1,000

direct

1963

1964

1,000

1,000

running running running running running bales

33 160 0

Austria

Belgium-Luxembourg Bulgaria

-

-

-

Denmark

17

22

Finland France

360 475

_

Germany, West Hungary

.

0

Italy

-

Netherlands

_

416 124

.

27 4 134 184 30 0

0 15 79 198 51 0

14 0 9 187 314

7

.

Korea, Rep. of

_

205

Morocco

10 14

Pakistan Philippines South Africa

64

(Formosa)

26 153 4 15

--

Thailand

Uruguay Venezuela

Vietnam

Less than 500 bales. and Cambodia.

11

2

C)

9 18

0 6 14

n

2,373

300

182

91

12

8 9

52

C) 3

0 0

24 2

20 20 26 313 8 140 37 189 39

223 22 0

3,351

2

20

4

15

5,100

1

2

0

8 8 108 19

5

1

11

1,300

36 22

1

9 0

32 0

895 236

2 27

Other countries _

7

2

2

Total

1

1

Japan

Taiwan

1

2

16 1,154

Israel

45

448

Ethiopia _

0

24

Cuba _

0 61 13

41 271

Colombia

Hong Kong

18

1,082

Chile

India Indonesia Iraq

32 39

54 217 35 33

_

_

54 66

2,690

Australia

Canada

2

380 401

3

.

Europe

1

180 101 0 192 71 10 62

17

_

Other Europe Total

16 10

56 37 139 113

Sweden Switzerland United Kingdom Yugoslavia

13 13

75 64 525 108

.

bales

23 176 19

H

85 28

_

Portugal

bales 2 19 0 2

72 0

171

10

Spain

bales

441 127 14 132 35 14 88 95 286 78 20

Norway Poland and Danzig

bales 13

C) 0 0 0 2 18

is

export

in line

moros. Cotton shipments from Brownsville (sizable quantities

of linters and waste included) totaled 289,000 bales

during August-May of 1963-64, compared with 435,000 in the comparable months a year earlier. It is probable that the quantity of

Mexican cotton transshipped through

Brownsville would have continued to decline even under the previously effective ad valorem rate.

Total transshipments of Mexican cotton through U.S. ports

amounted to 308,000 bales in the August-May period compared with 540,000 in comparable months

of 1963-64,

of 1962-63.

Small Italian Walnut Crop Italy’s

1964 walnut crop

short tons,

is

estimated at only 20,000

unshelled basis, because of adverse weather

conditions. This

is

about 10 percent below

Because of rapid natural drying conditions, the 1964 crop reached the market somewhat earlier than usual. 1963-64 are estimated Italy's walnut exports during

— down

at

the 15,000 tons shipped in 1962-63.

135 48 3

36

0 (')

last year’s short

harvest and almost 25 percent below the 1958-62 average.

2

13 5 18 6

in

Transshipments of Mexican cotton through U.S. ports have followed the trend of cotton production in Mata-

1

U)

improvement

port and transportation facilities.

0 0

0

will

with the government’s encouraging

shipments of cotton and

0

C) 12 75

4

Tampico

be equipped with either high-density or standard-density presses. This

Aug.-Sept.

Matamoros

In Altamira, on the other hand, production has increased

that port. Also, reports indicate that gins at

COTTON EXPORTS BY COUNTRY OF DESTINATION

promises

cease by 1965.

the competitive bid sales program and other export programs totaled 647,574 bales through October 19. This compares with 2,779,617 bales on the equivalent date

U.S.

it

In fact, recent

this season.

10,300 short tons (inshell basis)

sharply from West Germany was,

as usual, the leading buyer of Italian walnuts in 1963-64.

21

3 0 8 3

Italian exports are

existing export quotations,

7

has been

1

are

0

C)

11

1

28

2

3

5,660

635

304

Indochina prior to 1958. Includes Laos

predominantly

in the

Italian producers’ asking prices

at

and the

market and the short crop 1964-65 exports to below the Italian export

a virtual standstill. This

expected to reduce 1963-64 level.

Yugoslavia Ups Support Prices for

Hemp

The Government of Yugoslavia on an increase

unshelled form.

have been higher than

in the

minimum

July 18 announced

guaranteed prices to farmers

most agricultural products, including true hemp. Minguaranteed prices for class I and II hemp were increased 25 percent, while prices for class III and IV hemp were increased approximately 30 and 50 percent, respectively. For class I hemp stalks, the new support price for

Mexico Increases Export Tax on Cotton

The Government

Mexico announced during July that on cotton from Mexico would no longer be permitted on exports of uncompressed cotton. By this announcement the effective export tax on uncompressed cotton was raised from US$8.04 to US$18.62 per bale. The export tax on compressed cotton will continue at US$8.04 per bale. This action is expected to result in a reduction of Mexiof

the long-standing reduction in the ad valorem tax

November

9,

1964

imum

will

be 25 dinars per kilogram, or the equivalent of 1.5

cents per pound.

Excluding the Soviet Union and China, Yugoslavia acof the world’s production of true hemp and about one-half of world exports. counts for about one-fourth

Page 15

— DEPARTMENT OF AGRICULTURE

U.S.

WASHINGTON. D

20250

C.

POSTAGE AND FEES PAID DEPARTMENT OF AGRICULTURE

U.S.

OFFICIAL BUSINESS P< ID

K

0

-

>1

To change

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

off

this

a big factor in the fiscal

Peru's Molasses Exports Up

1964 trade picture, and they are

not expected to be repeated this year. Poor weather also

A

decline in domestic utilization of molasses coupled

with a steady production has resulted in that country’s increasing

its

molasses exports from 64,000 short tons

1961 to an estimated 154,000

During the

in

1961-64 period,

fell

But in

production

molasses

of

by 30 percent. This decline has been

at-

last

year.

in

1964.

stayed at about 275,000 short tons, while domestic con-

sumption

helped to boost sales to Japan and Western Europe in the years

ahead,

1965 exports

fiscal

expected that any slight dip

it is

be regained

will

—and

exceeded

more and more people achieve greater prosperity and greater ability to buy the kinds and amounts of food that as

go with better

living.

tributed to a 20-percent reduction in use by Peru’s alcohol

industry lasses.

—by

It

also

far the leading

consumer of

came abouut

as a result of

production practices, which have resulted reduction in the

amount of molasses run

Partly offsetting the drop

is

for the manufacture of yeast

5,000 tons

in

a

jump

—from

0

industrial

more

in a

British Trade Outlook

(Continued from page 3)

75-percent

off as waste.

in use of in

mo-

efficient

molasses

1961 to nearly

1963.

awarded

in

February 1965,

is

it

they will

that

possible

be larger and that a substantial permanent quota will be established

Two

North America.

for

temporary quotas

15,000 long tons were awarded North America

totaling this fall.

The good demand

for U.S.

lard

continue,

likely to

is

providing prices and availability are favorable.

U.S. Exports of Animal Products Soar

If

imports

of lard and other animal fats are maintained at present

(Continued from page 6)

recovery

a

levels,

the

in

demand

for vegetable oils will

U.S. feed grain sales to Spain stood at 136,200 metric tons

probably be delayed.

1959-60 before promotion was begun. Last year, exports were up to 830,141 tons and are still rising. Market promotion and trade liberalization in Italy have produced a gain in U.S. feed grain exports from 79,300 tons in 1959-60

Import prospects for unmanufactured tobacco in fiscal 1965 are less promising than they were a year ago since part of last year's imports were used to rebuild depleted

in

to



more than

Soybeans again held

among

their place as leading dollar earner

U.S. agricultural

commodity

exports.

Preliminary

soybean exports to dollar markets reached a new all-time high of about two-thirds of a billion dollars in fiscal 1964, a healthy $50 million above a closelygrouped trio of runners-up wheat, cotton, and corn. indicate

that



Dip expected this year

While the long-term outlook for exports of animal products and animal feeds is quite optimistic, overall exports in

the current fiscal year are running below the record

1964 was an unusual world trade year, with adverse weather over large areas upsetting normal trade patterns. Large sales of grain to the USSR were levels of last year. Fiscal

Page 16

Imports of cotton during

more rapid

years.

figures

stocks.

a million tons a year in each of the past 2

now

at

restrict

rate than

fiscal

1964 increased

a very high level, and this situation

imports

this

at a

coming

is

Wheat Wheat

flour

Barley

Corn

Sorghum

1

From

From all

States countries

States

countries

1,000

1,000

1,000

1,000

m.t.

m.t.

m.t.

m.t. 1,011

499

4,164

8 15 2,919 X 51

323 426

Rice Oilcake and oil

Commodity

1963-64

United

From all

likely to

year.

UNITED KINGDOM AGRICULTURAL IMPORTS, From Commodity United

much

consumption; therefore, stocks are

meal

3,491

Oilseeds, nuts

.

Vegetable Lard

.

oils .

Butter

Apples

M2

263 96

166

971

Tobacco

Canned

_ .

fruit _ .

Cotton

_

_

182 6 227 0 25 33 58 67

314 255 457 230 359 261 148

U.S. exports.

Foreign Agriculture