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. MAY 24, 1965 AGRICULTURAL T...

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

MAY 24, 1965

AGRICULTURAL TRACE

AND BALANCE OF PAYMENTS

INDIA'S PORTS:

GATEWAY

FOR U.S. FOOD FOR PEACE

FIRST U.S. CALVES

AIRLIFTED TO ISRAEL

FOREICN AGRICULTURE Including

FOREIGN CROPS

AND MARKETS

A WEEKLY MAGAZINE OF THE UNITED STATES DEPARTMENT OF AGRICULTURE FOREIGN AGRICULTURAL SERVICE

FOREIGN AGRICULTURE Including

FOREIGN CROPS AND MARKETS

MAY

2

VOL

• NUMBER 21

III

4,

1

9 6 5

Contents

U.S. wheat, shipped to India under Food for Peace program, is often loaded onto trucks within a day after it arrives in Port of Bombay. See article on page 6 about India’s ports.

3

Agricultural Trade and the U.S. Balance-of-Payments Position

5

West Pakistan Working To Expand

6

Indian Sea Ports: Gateways for American Food for Peace

8

Bank Loan To Help Peru Expand

9-10

Its

Its

Banana Industry

Farm Acreage

Market Development 357 U.S. Calves Following Test Shipment Dehy Alfalfa to Western Europe

Israel Airlifts in

U.S. Sales of

To Increase This Year, Industry Team Predicts P.L. 480 Loan Going Into India’s

Biggest Single

Sharavathi Project

11-16

Orville

L.

World Crops and Markets (Commodity index on page

16)

Freeman, Secretary of Agriculture

Dorothy H. Jacobson, Assistant Secretary for International Affairs

Raymond

A.

loanes, Administrator, Foreign Agricultural Service

Editor; Alice Fray

Nelson

Associate Editors: Ruth A. Oviatt

Kay

0. Patterson,

Janet

F.

Beal

Advisory Board: A. Minor, Chairman; Wilhelm Anderson, Horace J. Davis, John H. Dean, Robert 0. Link, Kenneth W. Olson, Donald M. Rubel.

W.

This magazine

is

published as a public service, and

its

F.

Leslie Erhardt, David

L.

Hume,

content may be reprinted freely.

published weekly by the Foreign Agricultural Service, United States Department of Agriculture, Washington, D. C. 20250. Use of funds for printing this publication has been approved by the Director of the Bureau of the Budget (December 22, 1962). Yearly subscription rate is $7.00, domestic, $9.25 foreign; single copies are 20 cents. Orders should be sent to the Superintendent of Documents, Government Printing Office, Washington, D. C. 20401. Foreign

Agriculture

is



— Agricultural Trade and the U.S. Balance-of-Payments Position

By

realizing

more fully

the export potential of

of-payments situation could be improved by

CHARLES

By

grams

Mr. Murphy served as Under and just recently he was appointed by President Johnson to be Chairman of the Civil For more than 4

years,

of Agriculture,

Secretary

a

millions of dollars

year.

economy By and large, these proFarm income has been main-

to help bring stability of our agricultural

times of rapid change.

in these

grams have been successful.

much

on the productive genius of American

higher than would otherwise have programs were to be terminated now, net farm income in the U.S. would drop about 50 percent. These programs have helped to stabilize prices of farm products in relation to the prices of other goods and services in our economy. Although they have achieved considerable success in doing this, farm prices have failed by one-fourth to keep up with other price increases for

mov-

of our basic export commodities have been above general

Expansion of agricultural exports is one of the best we have for improving our balance-of-payments situation. It also is a possibility which depends very largely on the wisdom and vigor of our policies and possibilities

agriculture.

At

balance-

tained at levels

prevailed. If these

Aeronautics Board.

actions, as well as

many

US

the

system of price support and production adjustment pro-

MURPHY

S.

our farms,

Even

the past 10 or 15 years.

the present time, our farm product exports are

than shipments of industrial products. our commercial agricultural exports between 1958 and 1964 from $2.6 billion to $4.6 billion was a whopping 80 percent. The gain for industrial goods

so,

U.S. prices for some

we have

ing ahead faster

world

The gain

sought to stabilize farm prices in a fair relationship to

in





from $12.4 billion to $18.8 billion—was only 50 percent. But both sectors of our economy can be proud. Our overall merchandise account balance has been favorable for many years. Since 1958 we have exported $139 billion worth of goods industrial as well as agricultural. Over that period our total merchandise imports have amounted to only $109 billion. That gives us a favorable balance of about $30 billion on the merchandise account. Our dollar gap comes, not from merchandise trade but from such “invisibles” as cold war outlays, U.S. investment abroad, and tourist expenditures overseas.



Helped by

We

480 programs

P.L.

also

are

getting

substantial

balance-of-payments

help from the approximately one-fourth of our agricultural

move under

exports that

the Public

for Peace program. These shipments

Law 480



the

Food

had a value of about

$1.7 billion in 1964.

We I,

P.L. 480, to pay such

carried on

as embassy expenses, milimarket development operations over the world. About $233 million was

and

all

used for these purposes

The

bills

costs of

is

helping us avoid certain dollar expendi-

tures abroad. In

1964 we saved $113 million by bartering

services, also

surplus food and fiber for such goods as post exchange supplies, petroleum,

and

jute bags,

and for services con-

nected with foreign-based U.S. aircraft and ships.

The long-term P.L. 480,

is

credit

program carried on under

Title IV,

beginning to give us some balance-of-pay-

ments assistance now, and will provide more as time goes by. The program has accounted for almost $200 million worth of agricultural exports sold for dollars on credit terms up to 20 years. Last year $6 million in interest and principal was received and in dollars. During the past 30 years we have developed an elaborate



May

24,

1965

we have moved toward

as

pricing ourselves

out of world markets.

Some commodities

We

not free to compete

problem in various ways, with export and the like. But the main point is that the system has been such that the producers of some of our basic commodities notably wheat, cotton, and tobacco have not been free to compete fully for world markets at world prices. They could not do this because their total production has been confined by programs geared to stabilizing their position in the domestic economy. This dilemma is leading us to examine more seriously than ever before modifications in our farm programs to permit separate treatment of production for domestic use and prohave met

this

subsidies



duction for export.

We moved

in that direction significantly with the

legislation enacted last year.

Under

certificates,

while the wheat

This program be extended.

pro-

provided in the

is

itself

the marketing system at prices supported

near world price

wheat

new wheat

the

gram, part of the producers’ return



last year.

480 barter program, which involves the exchange of U.S. farm products for various materials and P.L.

This has been our dilemma:

other U.S. prices,

form of

are using foreign currencies generated under Title

tary outlays,

levels.

moves through by a loan at

levels. is

proving feasible, and

Among

its

other virtues,

it

we hope is

it

will

a voluntary

program and any farmer who wants to stay out of it can grow and market all the wheat he pleases without let or hindrance. But more important for our present purposes, this “two-price” system gives us a method for permitting our wheat farmers to compete for world markets on even terms with producers in other exporting countries. At the same time, it should reduce the need for us to restrain production by artificial means; and, to the extent our producers can compete successfully for export markets on these terms, it opens up opportunities for our highly efficient

agriculture

to

make

a

greater

contribution

to

our balance of payments. Export aids insure market share

We

have an

effective set of export

aids

available for

agricultural production at the present time.

The ExportPage 3

— Import Bank can make credit

available.

The Commodity

on credit terms, and can also sell for export at prices below U.S. internal levels. In addition, CCC is authorized to pay export subsidies on agricultural products. Credit Corporation can

sell

for export

Our purpose is to administer these aids vigorously to make sure we achieve a fair share of the world’s export markets. At the same time, it would be unwise and selfdefeating to go beyond that to price wars and unfair comare or would be harmful to

petition

that

nations,

including the

United

States.

In

all

exporting

fact,

we have

an obligation under the GATT not to use export subsidies beyond what is necessary to achieve this fair share. Our justification for paying subsidies, of course, lies in the restrictions we place on the production of crops, and the fact that we do not seek through a combination of support prices and export subsidies to obtain an undue share of world markets. The responsibility for administering these programs so as to provide enough export assistance without providing too much is a heavy one. It frequently leads to difficulties in our relationships with other exporting countries, as well as with our own producers and exporters. This is an additional reason for modifying our domestic farm programs to eliminate the need for export assistance in so far as practicable.

commodities can be exported to Soviet Bloc countries without obtaining an export license in each individual case; others there

differently

will

is

search for

constantly.

it

decrease

them.

The

thread

not always easy to follow, but

consistency

line

that

is

if

program for the commodity, a

is

required;

license for the

increase in agricultural exports.

Cargo preference

A is

related matter

is

when

the requirement that

a license

issued for grain exports to the Soviet Bloc, a condi-

tion

imposed that

is

in U.S.

ships.

No

at

least

50 percent must be moved

similar requirement exists in the case

of other commercial sales

which (except as to this shipmade on exactly the same

ping requirement) would be terms to other countries.

This cargo preference requirement was

when

the sale of wheat to Russia

1963, and at that time

in

it

first

established

was under consideration

appeared that

this

require-

ment would not interfere with such sales. However, has not worked out that way. In fact, the evidence rather clear

Russia

it

is

except for this requirement the sales 1963-64 would have been approximately

that

in

This year, Russia again

is

importing rather substantial



wheat from Canada and Australia but not from the United States. It is plain that the reason we

quantities of

are not being considered for these purchases

is

because

of

this

U.S. shipping requirement adds substantially to the

we must

cost

which the purchaser would

effect of this

Barter transactions, for example, can be good for the

balance of payments, or they can be bad. The idea that

we can swap

dividing

the

general,

twice as large as they were.

Encouraging agricultural exports is a field of activity where it is terribly easy for one to get tangled up with his own feet. There are some programs which administered one way will increase dollar exports, and administered

In

a price support

otherwise, not. Thus, we require a commodities we most need to export, but not for the others. This licensing requirement is a substantial impediment to export sales. If it were removed, we almost certainly would have a prompt and significant license

to

Self-defeating actions possible

cannot. is

surplus agricultural commodities for some-

requirement

now

is

incur. Thus,

the actual

not to provide business for

Merchant Marine but to prevent U.S. longshoremen, exporters, and farmers from having employment and earnings that would otherwise accrue. the U.S.

thing else to store in another stockpile with no adverse

consequences tered

is

far too simple.

agricultural

does, displace dollar sales in is

The

disposal of the bar-

commodities can, and almost always

some

degree. Obviously,

it

better to get cash dollars for our agricultural exports

than some mineral that this

we might

or might not use

—and

has an immediate effect on the balance of payments.

We

have rules to require a showing of “additionality” that dollar sales will not be displaced. But these rules are difficult to administer, and their effectiveness cannot be precisely measured. In each barter transaction there has to be a value judgment as to whether, on the whole, the advantages outweigh the disadvantages. Cotton merchants seem to have concluded that, on the whole, barter has a negative effect and they do not support it. In the past 2 years, we have shifted the main thrust of our barter program to aiding off-shore procurement for the whole government. These are cases where dollars would otherwise be spent abroad, and payment is made with our agricultural commodities instead. Additional materials to be stockpiled which would not otherwise be procured are not imported. Most of this business is done



in



cooperation with the Department of Defense and the

Agency

Selling at a loss poor business

Then there are export subsidies, which, if excessive, might be self-defeating. Obviously, the returns per unit to

this

country

lower the price a loss

on every

well

as is.

unit

as

to

others

will

be

less

the

volume of goods with not very good business and should

Selling a large is

be avoided. Therefore, one should not assume

we can

greatly in-

crease the benefits from our export markets just by lower-

our export prices. Competing exporters can lower and we can all go down together, without any commensurate increase in our volume of sales. ing

their prices too;

And

while

we cannot

world prices

afford to hold a rigid umbrella over

which robs us of our competitive can we afford to trigger a global price

at a level

position, neither

war, heedless of the consequences. Trend toward growth

We tial

can do

much

to realize

of U.S. agriculture. If

more

fully the export poten-

we move

along the lines in-

we can count on consistent growth There may be temporary ups and downs, dicated,

in

our exports.

but the trend

working

should be strongly toward growth. Obviously, this growth

This type of barter makes a real balance-

cannot be quantified with precision, but the contribution

of-payment contribution without the risk of displacing dollar sales to obtain unneeded materials. Export licenses are another example. Some agricultural

it can make to improving our balance-of-payments position might well increase at the rate of several hundred million

for International Development, and

successfully.

Page 4

it

is

dollars a year.

Foreign Agriculture

West Pakistan Working To Expand To

save on fo'reign exchange, West Pakistan in the past

Its

Banana Industry

and curved with a greenish skin, and its flesh and sweet. Yields, at an average of about 20 to 30 pounds per bunch, however, are well below those of most varieties in Central and South America, which often reach

efforts by farmers to grow bananas, has helped to increase acreage planted to the Basrai variety from about 6,000 acres in 1960 to around 10,000 at present. Most producers have 5 to 20 acres of bearing banana plants, but some have 100 or more. A central wholesale auction market at Hyderabad handles the bananas for the growers. Volume here reaches 10,000 bunches a day at peak, and is increasing yearly. Production of bananas has proved quite profitable, and they have been able to compete successfully with such crops as cotton and sugarcane for the limited supplies of water and for the best land. However, the industry must first overcome two problems: One is that most other areas are either too windy or have too extreme tempera-

more than 60 pounds.

tures to

decade has been building up a commercial banana industry of its own in a former desert region. The region a narrow belt of land 100 miles long by



about 40-50 miles wide and east of the Indus River between Hyderabad-Mirpurkhas and Nawabshah supports



production of a dwarf variety of banana, Basrai. About 5 tall, compared with the usual 25 to 35 feet, the grown under irrigation and can stand up well to windy climate of this area. Its leaves are broad, its

to 6 feet

Basrai the

is

fruit large

soft

Tests with the Basrai and other types have been going

on since about 1938-39 at the Government Fruit Research Station at Mirpurkhas, but government promotion of commercial production did not begin until about 1956. This

encouragement, coupled with earlier

support growth of the product; the other, that

the Basrai’s poor keeping and shipping quality prohibits substantial widening of the market.

—Harry R. Varney

U.S. Agricultural Attache, Karachi

Below, new banana plantings on a farm man inspects an un-

near Hyderabad. Right, usually fine

bunch of Basrai bananas.

Above, truck, which has just been loaded with 150 bunches of bananas, is ready to start for Hyderabad market. Right, the Government Fruit Research Station, Mirpurkhas.

May

24,

1965

Page 5

— Sea Ports: Gateways

Indian By ROSS

L.

for

a

American Food

for

Peace

PACKARD

Assistant U.S. Agricultural Attache

harbor, stands in sharp contrast to Calcutta, which can

New Delhi

only be reached by a trip up the relatively shallow Hooghly

Madras or Visakhapat-

River. Consequently, lightening at

Burdened with

and an underdeveloped agricultural economy, India has not been able to produce the food it needs. In these years of crisis which are likely to continue for some time U.S. surplus foods, shipped to India under the Food for Peace program, have done much to relieve shortages and reduce suffering. That these foods 25 million metric tons of wheat and 1.5 million of rice since 1956 have been brought in and placed into the country’s inland transportation system is a tribute to the ports of India. Yet no other aspect of India’s grain importation has been subject to closer scrutiny and more criticism than the port operation. When measured against available facilities and longtime traditions, the contribution of the ports has been outstanding. They have demonstrated their ability to handle, despite obstacles, over 600,000 metric tons of food grains a month. Unfortunately, pressures on the ports have grown its

vast ever-growing population







greater each year. Furthermore, labor unrest, almost traditional in

some looms

authorities. Still

Kandla are subjected at

Bombay

Bombay, known

as the

Gateway

and located on

to India

It is also one of the country’s most overworked harbors. Eighteen deep-water berths service all the needs of this busy port, and of these, four are reserved for grain ships. Because of this priority, ships are no longer required to wait in stream for a berth marked improvement over several months ago when some

harbors in India.



anchor for weeks. Future plans for handling food grains at Bombay call for the use of two berths, but unloading operations will be improved to make these two more efficient than the

lay at

feed

now

being used. Grain will be evacuated and ele-

vated onto the second floor of the sheds where into

ground

floor.

At

bagging

with

hoppers,

present,

accumulates in high

the continuous flow of food grains into India during the

gestion

come. The five major food grain ports of India are Bombay, Calcutta, Kandla, Madras, and Visakhapatnam. The lesser ones are Navlakhi, Bhavnagar, Mormagao, Cochin, and Haldia. And, as the following table shows, they vary widely in their capacity to handle food grains; the peak capacities given are based on improvements being made:

feet.

but overworked

from port areas to internal distribution points. Port studies have been made to see if better and more modern methods could be found to improve the handling of food grains. U.S. AID (Agency for International Development) experts have done considerable research, and so has the Indian Government’s Committee on Grain Handling at Ports, and already their findings are helping to bring about some of the streamlining that will provide months

only 4

is

the country’s west coast, provides one of the finest natural

most complex problem for port another is the movement of commodities a

ships at

to a daily 24-foot difference, while

the difference

Bombay— fine

four

as

a necessary part of successfully docking a

large ship at Calcutta. Also, tides vary widely:

coupled with the fact that the labor way of modernization of port

ports,

force often stands in the facilities,

nam becomes

piles

26-man crew and loading the grain on

each

pile a

it

will

on the

place

taking

grain unloaded by evacuators

on the ground is

and for

floor,

kept busy bagging, weighing,

trucks.

Under

the

new system

weighed in some form of mechanically although large operated hopper and quickly bagged labor crews will continue to be used because of union grain

will

rules.

This

be

second floor

now



new system of will also make existing

feeding the it

grain

onto

the

possible to clear the con-

between the shed and the

ship.

to

Calcutta’s grain handling limited

Calcutta serves the need for a northerly located port

on India’s east

coast. Severe draft restrictions

and limiting

bore tides of the Hooghly River present problems; however, the tides are skillfully surveyed and predicted. What lowers the port’s capacity to handle food grains is the

Visakhapatnam and Madras. Docks in Calcutta where unloading

lightening facilities at

INDIAN FOOD GRAIN PORTS 1

At

Normal capacity per month

Peak capacity per month

1,000 metric tons

1,000 metric tons

Bombay

220

Calcutta

195 95 90 40

240 225

Port

Kandla Madras Visakhapatnam

— — — —

Navlakhi

Bhavnagar

Mormagao Cochin Haldia

120 130 60 35

30 10 10

10

2



from report of the Indian Port Facilities and Cargo Handling Improvement Team, U.S. AID, Government of India. 2 Grain transferred to lighters so to that ship can proceed up the Hooghly River to Calcutta. 1

Most

of material in

this

table

Kidderpore

takes place, the grain

is

shoveled into 180-pound bags in

the ship’s hold, and slings of 13 to 18 bags are hoisted out and deposited on the dock. Dockhands carry the bags into

warehouses and stack them; later they are loaded onto freight cars and hauled to interior warehouses. Eventually a system of silos near the docksides will be used for bulk storage of about 10,000 tons of wheat, with an overhead system for moving the grain from the ships. some the silos are already built is completed ships will be discharged mechanically, while others will continue to be offloaded by conventional methods. transfer

When





this

is

Madras and Visakhapatnam India’s fourth

most important food grain

port,

Madras,

the major lightening port for ships proceeding to Calcutta. It has an excellent harbor, well planned and genis

There of

the

Page 6

is

also considerable variation in the

different

ports.

Bombay, with

its

operations

fine

natural

erally well

managed, and

is

equipped to unload four grain Foreign Agriculture

Right, at

Bombay

dockside

sheds workers scoop up grain in

shallow pans, then bag.

Below, grain at Madras

is

evacuated directly from ship into boxcars, which, as the

lower picture shows, makes bagging comparatively easy.

Bags are handsewn

here.

This

Below, grain arriving at Bombay is sucked from tankers onto a moving belt

which dumps

it

on shed

floor.

Right, wheat loaded on open trucks

goes direct to shops or warehouses.

new device

at

Bombay

permits grain to flow from

second floor into hopper which weighs and then bags.

time. Most ships are unloaded by using which are lowered into the hold, piled with wheat, and then hoisted out over the dock where the grain is released into a stationary railroad car. Grain flows from chutes in the car’s side into bags which are hand-stitched before moving into freight cars or trucks. Visakhapatnam, on the east coast of India midway between Calcutta and Madras, is more advantageously located than Madras to the consumer markets for wheat. However, it is an extremely important port for India’s ore exports and the movement of general cargo, so that ships

a

at

tarpaulins

only limited berthing space

is

available for food grains.

Currently, about 40,000 metric tons of food grains are

The

problem

port’s biggest

from the port area

the

is

internal

to

and allocation of railroad cars

is

The wide-gage

railroad

now

being constructed will elimi-

are

handling

Ports used temporarily

Other

Indian

temporary

ports

A

new

port,

The same

is

the third

The harbor, on sheltered,

while

the

the west

bank of Kandla Creek,

providing a safe

24-foot

tidal

is

refuge for ships,

differences

affect

the

natu-

and

entering

or leaving of the port, they do not interfere with the un-

at

Two

food grain ships can be docked and unloaded the same time, and the goal now is to unload two every

loading.

10 days, or a total of six ships a month.

Kandla is already better mechanized than most ports, and will be even more so when completed. Grain is unloaded by evacuators and is bagged and weighed mechanically: the bags are sewn by machine. Plans call for installation of 25 more grain evacuators this year, making it

possible to achieve the goal of six ships a month.

Bank Loan To Help Peru Expand The World Bank has approved Peru

in

Its

a loan of $11 million to

support of the government’s program to increase

amount of arable land available for settlement and farm production. The loan will benefit the San Lorenzo project for the irrigation and settlement of once-arid land on the coast of northern Peru an area which may eventually involve about 125,000 acres. The project brings together irrigation, farm credit, and a wide range of technical services for the purpose of increasing the output of food and cash crops, both for domestic consumption and export. Besides raising farm income and improving standards of living in its own area, the San Lorenzo project is serving as a model for the development of irrigation, land settlement, agricultural education, and social services in other parts of Peru. The San Lorenzo project is located about 600 miles north of Lima, near the Ecuador border. The works have been carried out in stages: the first stage, which was financed by the Peruvian Government and completed in 1953, consisted of diversion works, canals, and tunnels to supplement water from the Piura River for the irrigathe



tion of lands in the Piura Valley.

The second

stage,

which was

assisted

by a World Bank

loan of $18 million and completed in 1959, consisted of Page 8

Also,

month can be

this port.

a natural south Indian harbor, with lagoons and backwaters providing good shelter in

all

is

true for Cochin,

seasons. Facilities at

Cochin are

limited:

bulk

grain has to be bagged in the hold, lifted out in cargo

deposited on the dock, and carried to transit sheds

nets,

for loading into rail cars, trucks,

and small

river boats.

Direct loading of trucks and river boats, bypassing the

the establishment of a free trade zone.

rally

10,000-ton food grain ship a

expected to clear

Kandla

from the port area by

with some additional tonnage by truck.

only one

most important in India and definitely the most promising from the standpoint of the future handling of grains. Located in the Gulf of Kutch on the country’s northeast coast, it may someday rival Bombay, as plans in progress call for relatively

food grains on a

unloading several ships a month. Mormagao, a fine natural all-weather harbor on India’s west coast, is handicapped because only 210 to 240 tons basis,

of grain per day can be cleared

—a very promising port

such that only a part

nate this bottleneck.

railroad,

Kandla

All line,

of the grain unloaded each day can actually be shipped.

60,000 tons. The use of chuted freight cars, as Madras, would help.

in

of grain

points.

grain has to leave the area on a small-meter railroad

offloaded each month, but the capacity could be increased to

movement

distribution

would work a great improvement. and Alleppy, in the extreme south of

transit sheds,

Calicut

played an important part

last

India,

winter in handling bagged

during the rice crisis in southern India, and in recent months, Navlakhi, on the Gulf of Kutch, and Bhavnagar, on the Gulf of Cambay, were used to offload wheat. rice

At best though, these minor ports will serve only as emergency ways of increasing port capacities during times of It is in the big ports that the food grain must be maintained, and if possible increased, in order to handle the tremendous volume of food grains needed during the period in which India struggles for self-sufficiency in food production.

extreme

stress.

facilities

Farm Acreage and the construcand lateral development, and settlement of

enlarging the facilities of the tion of a

dam and

first

stage

reservoir and of a canal

system for the irrigation,

San Lorenzo project area. Since then about 35,600 in the San Lorenzo project area have been developed and settled. The third stage, to be assisted by the current Bank loan, consists of the development and settlement during 1965-67 of some 44,000 acres and the further improvement of the area already settled. The San Lorenzo facilities also supply water to farmers in the Piura and Chipillico the

acres

Valleys for the irrigation of approximately 82,500 acres.

Development and settlement first

at

San Lorenzo did not

take place as quickly as had been expected;

it

at

has

the past few years, however, and emerging as a successful one financially, economically, and socially. The range of possible cropping patterns is large because of the year-round growing season and favorable soil types. Land thus far settled is being farmed principally in cotton, maize, root crops, fruit and other tree crops, vegetables, and forage crops. A diversified pattern, including livestock, is being encouraged to spread water use, greatly accelerated in the

project

is

work, and income more evenly throughout the year. Foreign Agriculture

DEVELOPMENT Israel Airlifts

357

in

has just imported

& export programs

Calves Following Test Shipment

U.S.

357 U.S.

they lost an average of 10 percent in

providing for more grazing areas, a

calves following a successful test ship-

weight, the weight loss had been re-

type of land which in Israel has a

ment of 30 head in late March making it the second country to bring

gained 2 weeks after the calves’ ar-

number of

U.S. calves via regularly scheduled

on milk-replacer ration. No significant difference has been noted in the con-

demand gap with imports

dition of the calves in the various age

cattle,

groups,” he said.

Western Europe’s supplies have been

Israel

in

airlines.



The shipment of calves ranging in age from 2 to 3 weeks and principally of the Holstein breed

condition

excellent

in

hour

flight

from

New



after

some

13-

York’s Kennedy

Veterinary Institute

is

The

keeping

for testing, with the remainder

and

are

all

now

gaining normally

Sizable imports of calves

arrived

the

International Airport to Tel Aviv. Israeli

rival

for fat-

tening are seen a possible

means of

meeting

need

for

Despite an 8-percent

rise

Israel’s

red meats.

in the country’s

increasing

beef production from

the previous year, the

17,000-metric-

In

alternative uses.

addition

importing

to

meat, Israel has tried to

of slaughter

primarily from Turkey

largely

depleted.

But

frozen

the supply-

fill

this

now

trade

that

has

been dampened by recent outbreaks of hoof and

mouth

in

Turkish

Within the past 5 years,

cattle.

has

Israel

also

imported baby calves from West-

Europe with good

The

distributed to farmers throughout the

ton output was insufficient to satisfy

ern

country.

mounting demand. Major expansion of beef output depends on

United States has the largest supply of

the steadily

Assuming good results with the and no marked improvement in Israel’s tight meat supply situation, the importer anticipates purchases of up to 15,000 head by May of next year. The calves will be fattened to about 1,000 pounds by the importer and se-

baby calves available

results.

in the world.

calves

U.S. Sales of

Dehy

Western Europe

Alfalfa to

To Increase This Year, Industry Team Predicts

specialists.

equal the near record set in 1963, ac-

For the six EEC countries and Den1964 output totaled 410,000 tons, about 40,000 tons below the

Plans are to keep detailed records on

cording to an industry team just back

level

performance of all calves in an effort to determine which methods of

from

lected

Ministry

and

Agriculture

of

the

management

and

feeding

are

best

suited to local conditions.

The

initial

shipment on March 21

followed the report of an Israeli veterinarian Italy of

on U.S. veal shipments

some 10,000 head during

to

the

past 10 months. This on-the-spot study

the

is

on

most comprehensive yet made and raising baby calves

airlifting

for slaughter, as well as

how

to over-

come problems. Since weight

is

a major determinant

of shipping costs, of the trial

airlift

a prime

was

objective

to get further

on the ages at which calves can be most profitably imported and still have a reasonable resistance to disease and infections. The 30-head information

shipment consisted of 10 each in the 1-,

2-,

Dehydrated

farmers under the supervision

of the Israeli Veterinary Institute

and 3-week age groups.

After a 2-week waiting period

—dur-

United States

a

alfalfa exports to

Europe

in

from the

1965 could

market development

trip to the

mark,

forecast.

“The drought of

last

summer has

Continent.

not truly abated,” the report stated.

Encouraging, too, are measures proposed by the Federation of Dehy As-

still

“Moisture

deficits

exist

of

several

England

in

and

inches across

sociations in the

northern

Community.

European Economic These could lead to

U.S. dehy exports in 1965 will equal

greater cooperation with the U.S. in-

or exceed the 75,000 tons exported in

dustry,

which

Europe.

It

is

that

likely

efforts

1963, unless significant moisture sur-

up usage of dehy in mixed feeds throughout Western Europe. Assessing the potential for expanded utilization of dehy in Europe, and its exports, was a effect on U.S. prime objective of the recent 2-week trip of American Dehydrators Association officials Carrol Syverson and Richard L. Kathe in cooperation with the U.S. Feed Grains Council.

pluses are experienced this spring and

is

continuing

its

to

Because of a continuing deficiency of moisture in northern Europe, the team foresees no significant increase in Europe’s output of dehy in 1965. France, a major producer and ex-

summer in Europe.” The prospect of temporary off of

leveling-

production in Western

alfalfa

Europe comes at a time of mounting for dehy usage in mixed feeds. Its percentage in several manufac-

demand

tured feeds

increasing.

is

Europe’s feed output rising

Mixed feed production in Europe shown steady increases since World War II, with the exception of 1963. West German production and has

sales in

1964 were

at 5.6 million tons,

dehydrate

topping the previous year’s record by

about half a million tons. Similar gains

changes during transit and the trauma

140,000 tons of alfalfa in 1964, but actual output was 100,000. The

from sustained

United Kingdom’s production of

countries in 1964.

ing which the calves

would have

re-

acted to such factors as temperature

and confinement U.S. Agricultural Attache in Tel Aviv Valorous H. Hougen reported: “All calves arrived in good health. Though



May

24, 1965

flight

porter,

was

expected

to

less

than 90,000 tons was off 10 percent last year;

the

same

situation exists in

the Netherlands and Belgium.

occurred

The

in other

report

1965 outlook

is

Western European

stated

that

while

the

for “modest increases”

(Continued on next page Page 9

in

(Continued from page 9) Western Europe’s feed sales, feed

company purchasing agents more price-conscious than in In the

half of

first

be

will

to

are

production

limiting

valorem concern

tension

licenses

of

high

credit,

and

eggs,

manufacturers. Despite some bearish areas, U.S. dein

the

make

To

Fore-

most, the buyers of Western Europe are looking for a quality product, one

can best supply.

that U.S. dehydrators

have ad

all

but the biggest U.S. over the system of import

importers a share of

too

small

that

the

individual

quantities

are

licenses

make purchasing

to

eco-

expressed a willingness to cooperate

courages imports by feed

with the U.S. industry’s efforts to in-

who need

with which the licenses are issued dis-

producers

a steady supply of dehy.

crease dehy consumption in Western

meeting

CIDE

liberalization of imports

Many German dehy

in Paris with the

proposed that the

hopeful

U.S.

that

made

alfalfa inert

in

gas,

to the alfalfa

into pellets.

hand, have difficulty

in

supplying the

same quality material 12 months because

year,

storage

of

insufficient (total

facilities

a

gas-

capacity

of

22,000 tons against 700,000 in the United States), and anti-oxidants are applied to only a fraction of the total

production.

Promotion expands use report

that

said

the

growing

awareness by European feed manu-

dehy cil,

is

of

the

advantages of U.S.

“a credit to the promotional

U.S. Feed Grains Coun-

the U.S. agricultural attaches and

FAS representatives in Europe, and to those engaged in the marketing of our product.” Dehy market development is an integral part of programs to expand the other

utilization

German

Europe. joint

being

is

efforts of the

result

these

nomical. In addition, the irregularity

At a

it

with

the

the

and apply anti-oxidants as

oxidation

to

store

containing

silos

facturers

Meanwhile, the Common Market’s dehy federation, known as CIDE, has

U.S. team,

or

tanks

the business, the West German Government frequently splits the tenders

under EEC dehy group cooperative

many

give

susceptible

is

producers

U.S.

The

the tender system applies.

trading gains

calendar year.

current

United Kingdom,

duties, is

which

European dehydrators, on the other

itself.

and tenders used by West Germany, where there is the greatest potential for U.S. dehy exports. The United States is the only major exporter outside the Soviet Bloc to which

ingredient

and inability to raise feed prices add up to a difficult 6 months for feed

costs,

hydrators expect to

levies against

Greece, and Switzerland

unfavorable feed conversion. Overex-

meat and

since

however, some trade

exist,

barriers. France, the

to

avoid a depression in the face of declining prices for

EEC’s dehy market,

come from CIDE There

net profits. In those areas, poultry pro-

ducers

will

continued

third-country imports would be likely

some countries expect lower

turers in

—have

any impetus for variable

the past.

dehy

that U.S.

year at least

this

access to the

manufac-

1965,

mean

terpreted to



of

U.S.

feed

grains

in

Western Europe through the exchange

tradesmen are will be

imports

of trade teams, participation in technical conferences,

and actual feeding

American Dehydrators Association be represented at monthly and special sessions of the European federation.

liberalized in

CIDE

manufacturers as well as feedmen elsewhere in Europe show a high in-

ning demonstrations with beef

in importing U.S. dehy. They becoming increasingly aware of 12 its reliable and consistent quality months a year.”

dehy. During the past 2 years, tests have been run on dehy rations for the fattening of lambs and results are now

also proposed an

“Notwithstanding the report continued,

exchange of

technical information on usage of dehy in

manufactured feeds, and a world

congress of alfalfa

may

be held later

CIDE’S closely

more

work

to

dehydrators

To maintain

in-

is

barriers,”

“German

feed

are

this year.

with U.S.

these

terest

dehydrators that

intention

demonstrations.

1967.

the quality of dehy

In

the

ample, the

United

Kingdom,

USFGC

this

year

for is

ex-

plancattle,

lamb, and hog feed rations containing

being distributed to the entire U.K. feeding industry.

Biggest Single P.L. 480 Loan Going Into India’s Sharavathi Project India’s to play

new Sharavathi Hydroelectric

an important part

power shortage



Project

—expected

in relieving the country’s critical

represents

the

largest

single

U.S.

in-

vestment of P.L. 480 funds for economic development the world. (Project's biggest

When giant

dam

is

in

at right.)

the last of the 10 generators blueprinted for the

project

begins

operating

in

1968-69,

the

United

have supplied $121.8 million of the project’s $210-million cost will have helped raise India’s power

States will

capacity by

more than

1

million kilowatts.

The

first

gen-

motion a few months ago, has already increased capacity in the State of Mysore by 50

erator,

which was

set

in

percent.

Although much of the power generated will go to speed up the industrialization of Mysore State, Sharavathi is also expected to boost agricultural production by energizing thousands of

pump

sets for irrigation wells.

Total cost of the Sharavathi project will be recovered

from power revenue, with annual revenue from the one generator alone around $2 million. Page 10

Foreign Agriculture

WORLD Common Market

months of the

Largest Beef Importer

During 1964, the European largest net

have been ranking

first

Common

Market was the



sur-

Kingdom, which

or second in the world

preliminary figures of the

— according

Commonwealth Economic

Committee.

The Committee

estimates that net

importer of

EEC

cattle,

but arrivals of cattle and horse hides, kip, goat,

levels,

and kid skins down. cattle in March totaled 57,092 head, 9 permore than those of a year earlier. Total arrivals in

Imports of cent

January-March were 12 percent below the

bringing

in

IMPORTS OF SELECTED LIVESTOCK PRODUCTS

U.S.

Beef and veal: Fresh and frozen Bone-in beef: Frozen Fresh and chilled Boneless beef Cuts (prepared) Veal

United Kingdom United States _ Cattle

EEC United Kingdom United States

1964

1965

1,000

1,000

1.000

1,000

pounds

pounds

pounds

pounds

223

435 751

891 4,399 176,192

2,007 120,748

1,090 60,583

_

62,814 68

707

241

526

688

4,165 25,257 1,485

3,542 11,613 3,525

Total beef and veal __ 71,433

73,014

212,630

142,668

3,322

3,722

9,929

10,626

shoulders __ 14,164 1.475

18,859 3,401

36,211 4,394

36,312 6,270

168 340 207

151

399

382

448 193

1,081

1,213

434

370

19,676

26,774

52,448

55,173

5,661

2,806 1,817

4,330 2,319 1,389

79 1,320 7,450

Canned beef & beef sausage Prepared and preserved

Pork: Fresh and frozen

Canned

Hams and

_

_

__

_

Cured

Mil.

Mil. lb.

lb.

J

484 795 977

1,000

1,000

1,000

head

head

head

__ 581 __ 446 __ 1,231

785 469 830

2

827 750 670

764 400 485

shoulders

Other Sausage



_

-

Total pork

1964

94 724 860

-

1965

1,849 5,494 1,603

Other

1963

Mil. lb.

EEC

1964

Red meats:

Hams and

Fresh and frozen beef and veal:

Jan.- March

March

Commodity

large

NET IMPORTS OF FRESH AND FROZEN BEEF AND VEAL AND CATTLE BY THE U.K., U.S., AND EEC 1962

relatively small

imports of fresh

numbers from both Mexico and Canada.

Item

calf,

imports of early 1964.

and frozen beef in 1964 totaled 827 million pounds, compared with 750 million for the United Kingdom and 670 million for the United States. EEC imports increased from only 94 million pounds in 1962 to 827 million in 1964. Imports by the United Kingdom have remained fairly constant, ranging from a low of 724 million in 1962 to a high of 795 million in 1963. U.S. imports of fresh and frozen beef and veal reached a peak of 977 million pounds in 1963 but declined substantially in 1964. EEC countries imported an estimated 764,000 head of cattle from other countries in 1964 compared with 785,000 a year earlier. U.S. net imports declined from 1,231,000 head in 1962 to 485,000 in 1964, the lowest level since 1956. U.K. imports amounted to about 400,000 head last year. In most years the United States is the world’s largest

imports of buffalo hides and

year,

sheep and lamb, and pig skins were above year-earlier

importer of dressed beef and live cattle

passing the United States and the United

to

MARKETS

AND

CROPS

Mutton and goat

Lamb Other sausage Total red meat

Variety meats Wool (clean basis) Dutiable Duty-free Total

472

15,335 3,709 1,116

97,901

104,883

285,238

205,879

179

83

486

320

8,073 8,858

18,570 12,478

26,495 32,117

37,710 20,275

16,931

31,048

58,612

57,985

770 361

:

wool

1

Product weight. 2 Partly estimated. Data for U.K. and EEC from Commonwealth Economic Committee. U.S. data from the Bureau of the Census.

U.S. Imports of

Meat Products Higher

in

strikes

were 7 percent above a year earlier with increases in all major items, except mutton and canned beef. Pork imports were up 36 percent, reflecting lower U.S. production. Total meat imports during January-March, however, were down 28 percent from those of a year earlier. Beef was down 33 percent and lamb and mutton, even more. Pork imports were up 5 percent.

Dutiable (apparel) wool imports rose sharply in March, for the

total

first

3

months was up 42 percent,

lower world wool prices. Also, U.S. imports were relatively small in early 1964. Imports of dutyreflecting

free or carpet

those of this

year

wool

March is

still

in

March 1965 were 41 percent above

1964, but the total for the

down 37

first

3

months

percent.

Imports of most kinds of hides and skins showed big March from a year earlier. For the first 3

increases in

May

24,

1965

Cattle _

24

Calf

14 33

Buffalo

March were above the monthly set during January and February when the dock held up shipping. March arrivals of all meats

and the

Hides and skins:

Kip

March

U.S. meat imports in levels

1,000 pieces

34

Sheep and lamb Coat and kid Horse

4,370 1,099

28 161

Pig

1,000 pieces 14

34 48 79

1,000 pieces 77 65

1,000 pieces 51

140 116

97 137 146

6,322 1,687 25

8,651 3,572

9,183 3,027

117

328

434

61 503

Number Number Number Number Live cattle 1

52,204

57,092

165,513

145,264

1

Includes cattle for breeding. U. S. Department of Commerce, Bureau of the Census.

Argentina’s and Chile’s 1965 Pulse Production

The 1965 pulse harvest now nearing completion in Argentina and Chile is 400,000 bags larger than in 1964 and 1 million bags larger than the 1955-59 average. Contributing most to the increase was Argentina’s large crops of peas, beans, and

bags from

last year;

lentils.

Peas were up 400,000

beans increased by 200,000 bags and

lentils by 100,000. Argentina’s pulse crops were double the prewar average.

Chile

reports

year than

last

that beans are 300,000 bags less this and peas 80,000 bags less, but both are

Page 11

above their 1955-59 average. Lentil production, on the other hand, is 30,000 bags above last year’s but 100,000 bags below the average. Chile reported a 12-percent de-

owing

cline of lentil yield per acre this year

and

disease

late rains

Country and year Argentina: 1955-59, Av.

1964 1965 Chile

Beans

Peas

Lentils

Garbanzos

Total

1,000

1,000

1,000

1,000

1,000

bags 503

bags

871

bags 334 370 769

364

bags 159 125 132

1,195 1,401 2,136

1,781 2,101 1.808

231 456 375

311 180 211

108 127 146

2,431 2,864 2,540

644

1955-59, Av.

1964 1965

199 262

bags

Chile’s exportable supplies of beans in

1965 are fore420,000 bags. Half of the beans may be Arroz and a third Cristales; the balance of them. Red Kidney and Red Mexican. cast at

Exportable supplies of

not forecast by Chile,

lentils are

but 340,000 bags were exported in

Ministry of

Commerce on February

1964. 3,

However, the

Argentina estimates that exportable supplies of year will total 110,000 bags, unless prices

drop

drastically. in

1964 and 60,000 bags

1963.

Following are price quotations as of early April 1965:

Argentina Buenos Aires

Chile port

f.a.s.

Red Kidney Red Mexican

White Yellow

6.40 9.90 12.00

South African Corn Crop Below Last Year’s

The Republic of South Africa has announced

the second

estimate of the current 1964-65 crop as 4.1 million metric tons (161 mil. bu.). This compares with 4.2 million tons

estimate of the kafircorn crop

new

„ ’

1,000 1,000 metric tons metric tons 2,630 0 1,040 680

680

3,670

4,350

supplier, shipped 6 million.

imported 63 million pounds of nonfat dry milk less than in 1963. The United States

Italy

1964, 2 million

in

became

the leading supplier, accounting for 68

percent

of total imports, compared with 34 percent in 1963.

Hamburg’s Prices on Canned Importer’s selling prices

Fruit

and Juices

duty paid, free exquay) to wholesalers, Hamburg, Germany, on orders of up to $625 for selected canned fruits and juices in April 1964, January 1965, and April 1965 are compared in the tabula(landed,

tion that appears below.

Price per dozen units

Type and

Size of

quality

can

U. S.

from

The con-

U. S.

V. S.

dol.

dol.

C)

1.71

2 y2

3.72

3.33

3.45 1.71 3.30

Choice Do. Do. Do. Standard Pear halves, Choice

2% 2% 2%

483 4.08

3.78 3.63

Do. Fruit cocktail, Choice Do. Do. Do. _ Fruit salad Pineapple, slices:

2

_

_

15 oz.

O)

No. 10 No. 10

17.10 10.38

n

2% _

%

C) 4.17

1 tall

2% 2%

5,28

O)

n n

No. 10 No. 10 15 oz.

2.56

2% 2% 2%

_

Do. Do.

O) 4.77 3.48 2.16

1 tall

H

14.85 12.75 3.63 3.75 4.26 4.74

n

19.11

O) 2.48 4.17 4.56 3.48 2.12

Origin

S.

Africa

Spain Greece

3.93 3.66 3.69 14.94 13.08 3.78 3.75 4.26 4.56 4.44 18.81 16.65 2.37 4.26 4.50 3.72 2.08

U.S.

1.50 1.68 1.68 1.56 1.53

U.S. U.S.

1.50 2.10 1.90

U.S. U.S.

1.88

S. Africa

Argentina Australia U.S. S. Africa U.S.

Argentina Italy

U.S. Australia U.S. Australia

Spain Philippines U.S. S. Africa

Malaya

CANNED JUICE

No

quotations.

2

2

1.68

2

O)

2

2.06 1.94 1.94

2 2

din

No. 2 No. 2 No. 2

Do. Do. Do. 1

% din

V2

unsweetened

yellow corn; however, exports are prohibited until October

_

No. No. No. No.

Do. Do. Do. Do. Grapefruit,

of

1965, at which time the situation will be reviewed to de-

April 1965

3.45

2%

Orange, unsweetened

short

Jan.

1965

dol.

re-

also

quantities

April 1964

3.60

348,000 tons

an important contributing factor. In view of the supply, little, if any, corn will be available for export South Africa during the current marketing year. supply of white corn may be just enough to meet

Page 12

?;

at 60 million pounds, were 27 million pounds less than the record imports of 1963. Shipments from each of the main European suppliers were considerably less than in the year before, offsetting an appreciable increase in shipments from the Western Hemisphere. The United States shipped 14 million pounds, 5 million more than in 1963; and Canada, a

Choice is

up from 241,000 tons in 1963-64. The drought, which began in late January, was sponsible for the short corn crop. Heat waves were

larger

o v e<-

.

1964 imports of butter,

Italy’s

(13.7 mil. bu.),

There are

supply

and Dry Milk Imports Decline

Italian Butter

Fancy

a year ago and 6.1 million in 1962-63.

requirements.

4,080

Do. Do. Peaches, halves:

4.85-6.65

mm mm mm

sumption

270

Total

Halves

2.15 2.30

The second

y

i

Apricots:

Lentils:

5 6 7

Domestic disappearance

,

1,000 1,000 1,000 metric tons metric tons metric tons 90 2,540 2,630 180 1,540 1,720

CANNED FRUIT:

3.50-3.80

Green Yellow crop

corn

C arr

,

Production

1,

1965

cuit.

Cristales

New

May

Dol. per 6.70 8.20 9.15 5.30

Peas: Superior quality

country’s

f.o.b.

Dol. per cwt.

Beans: Arroz

the

lentils

this

Exports totaled 10,300 bags

of

Carryover

Type

1965, authorized

an export quota of 65,000 bags of small lentils from this crop. There are no restrictions for exports of large and medium-size lentils.

in

projection

tentative

PROJECTED SUPPLY AND DISTRIBUTION OF WHITE AND YELLOW CORN IN THE REPUBLIC OF SOUTH AFRICA

ARGENTINA AND CHILE

IN

A

and distribution follows:

Roya

to the

during harvest.

PRODUCTION OF PULSES

termined whether exports can be allowed.

2

1.68 1 f

)

2.20 2.12

1.50 1.74 1.74 1.65 1.68

1.50 2.13 1.95 1.96

Israel S. Africa

Greece

Israel

Net content 390 grams. Foreign Agriculture

Canned Fruit and Juice Prices

in

EXPORTS OF UNMANUFACTURED TOBACCO

U.S.

London

(Export weight)

London (landed duty

Selling prices in

canned

fruits

and

paid) of selected

juices are given in the following table.

March

Price per dozen units Size of

"Type and quality

can

April 1964

Jan.

April

1965

1965

U.S.

U.S.

U.S.

Whole, unpeeled, Choice

dol.

dol

dol.

2.52

2.41

303

2V2 2V2

Do Do Do

1965

1964

1965

1,000

1,000

1,000

1,000

Origin

Flue-cured Burley

17,157 3,595

348 566 723

Dark-fired Ky.-Tenn.

-

Halves: Choice

1964

x

2 /2

1.84 3.32 3.08 1.72 1.50

2.33

Va. fire-cured U.S.

4.16 3.34 2.92 1.72 1.58 3.71

4.16 3.44 2.92 1.71 1.54 3.59

U.S. Australia S. Africa S. Africa

3.31 3.41 3.90 3.04 3.34 3.13

S.

Africa Australia U.S. S. Africa Australia

In syrup

15 oz. 15 oz.

Standard

2%

U)

2V>

3.32 3.54 3.72 3.18 3.32 3.14

3.27

3.46 3.68

3.48 3.55 4.60 3.22 3.34 2.06 2.46 2.00 1.48

3.52 3.55 4.30 3.26 3.34

1.54

U.S.

2.80 2.42 2.57

2.61

2.61

U.S.

2.62 2.10

2.62 2.52

W.

1.76

1.78

S. Africa

1.92

1.92

Malaya

3.95 4.44 1.96 2.03

3.95 4.58 1.96 2.03 1.92 1.92 1.27 1.92

U.S.

Spain U.S.

Change from i 964

pounds pounds pounds pounds

CANNED FRUIT Apricots

January-March

Kind

1

Maryland Green River One Sucker

31,910 3,480 4,630 1,019

76,893 7,438 3,061 1,642 2,555

597 54

132 24 630

11

Black Fat, etc. Cigar wrapper Cigar binder Cigar filler Other

269 681

Total

39,786 4,148 4,919 1,226 1,017

596 374 161 30

78 11

648 630 470

1,200

884 47

Percent

-48.3 -44.2 +60.7 -25.3 -60.2

— 40.9 — 54.2 + 2.9 — 47.5

—46.8 +87.2 +71.9 -41.1

100 15 144

1,104

2,300

3,954

2 3,598

43,9 66

96,806

56,975

Mil.

Mil

Mil.

Mil.

dol.

dol.

dol.

dol.

Percent

19.1

32.6

76.6

41.8

—45.4

88

Peaches, halves:

Fancy

Do

2V2

Choice

2+ 2%

Do Do

2

%

2%

Standard

3.41

3.68 3.01

3.34 3.36

Africa Australia U.S. S. Africa Australia U.S.

Declared value 1

Includes sun-cured. Bureau of the Census.

Pears, halves:

2 V2

Fancy

2% 2% 2% 2%

Do Choice

Do Do

1 (

In syrup 15 oz. bruit coctkail, choice - 303 Do 15 oz. Do 8 oz. Grapefruit sections:

Fancy

303 No. 2 20 oz. Quality not specified- 20 oz. Pineapple slices:

Fancy Standard, spiral

CANNED JUICE Orange

Do Do Do Do Do Do 1

Not quoted.

2

oz.

20

oz.

1.78 1.82

46 43

oz.

O)

oz.

4.48 2.00 2.01

l (

)

2.61 l (

)

Italy

U.S.

Spain

Israel

Indies

2

1 f

1.92

)

2.00 1.27 1.94

1.86 2.60

(V

in

EXPORTS OF TOBACCO PRODUCTS March

January-March Change from



:

Product 1964 Cigars and cheroots 1,000 pieces Cigarettes Million pieces

1964

1965

1965

i 964

Percent

Chewing and snuff 1,000 pounds Smoking tobacco in pkgs. 1,000 pounds Smoking tobacco in bulk 1,000 pounds Total declared value Million dollars

5,192

5,426

10,499

9,248

-11.9

2,107

2,333

5,652

4,380

— 22.5

22

57

90

63

—30.0

192

90

338

138

—59.2

728

1,837

1,901

2,307

+21.4

10.9

13.0

28.5

22.9

-19.6

Bureau of the Census.

Israel

W.

Indies U.S. Israel

U.S. W. Indies

March

U.S. exports of unmanufactured tobacco in

U.S.

Israel

Sweetened, single strength.

Tobacco Imports Rise

U.S.

3.32 3.46 2.03 2.76 2.00 1.60

16

19 oz. No. 2 No. 2 19 oz. No. 2 No. 2

Grapefruit

)

S.

March 1965,

West Germany Uses More

U.S. Leaf

Tobacco

West German manufacWest Berlin) continued upward through 1964, setting a new record of 85.8 million pounds, compared with 80.0 million in 1963 and 76.9 million in 1962. Increased use of flue-cured and Maryland more than offset declines in that of hurley, Kentucky, and cigar types.

The use

of U.S. tobaccos by

turers (including

44 million pounds, were nearly double those of March 1964. The export value was $32.6 million, compared with

at

WEST GERMANY’S USE OF Kind

$19.1 million.

1962

which had curtailed exports during the 2 previous months. Exports of all kinds of tobacco, except hurley, Maryland, and cigar wrapper, were larger than strike,

those of

March

1964.

Total exports for the

3

months of calendar 1965

were 41 percent below those of the similar 1964 period. For the first 9 months of fiscal 1965, exports were about

366 million pounds, compared with 427 million in the same period of fiscal 1964. Exports of tobacco products in March 1965 were valued at $13 million, compared with $10.9 million in March 1964. For the first 3 months of calendar 1965, the total value of tobacco product exports was $22.9 million, compared with $28.5 million for January-March 1964. All kinds of products, except smoking tobacco in bulk, were smaller this year.

May

24,

1965

1

1964 1

1,000

1,000

pounds

pounds

Flue-cured Burley

62,597 11,043

65,430 10,904

71,615 10,891

2

584 840

485 904

478 979

Kentucky Maryland

Cigar leaf first

1963

pounds

This sharp increase in exports marked the ending of the

dock

TOBACCO

U.S.

1

Total

1,000

1,830

2,269

1,818

76,894

79,992

85,781

1 2 Includes West Berlin. Source of information does not show breakdown by kinds of tobacco included in this category.

The use of U.S. tobaccos last

the

in the

production of cigarettes

year totaled 76.6 million pounds 70.4

million

used

in

percent of total leaf used

in

1963.

— up

This

8.9 percent

from

represented

36.7

production of cigarettes com-

pared with 35.5 percent in 1963 and 35.0 percent each for both 1962 and 1961. Flue-cured represented 85.2 percent of total U.S. tobaccos used in cigarettes,

compared

with 83.9 percent in 1963 and 83.2 percent in 1962. Use Page 13

from 14.9 percent

of U.S. burley dropped to 13.6 percent

1963 and 15.7 percent in 1962. Kentucky still accounts for 0.2 percent, and Maryland, for 1.0 percent. in

U.S. tobaccos used in cigar production in 1964 dropped

pounds from 2,317,000

to 1,874,000

in 1963, representing

3.2 percent of total leaf used in cigar,

compared with

4.1

percent in 1963 and 3.2 percent in 1962.

The use

combined production of finecut tobaccos (for roll-your-own cigarettes), smoking mixtures for pipes, chewing tobacco, and snuff continued of U.S. tobaccos in the

through 1964. U.S. leaf used

to decline

in the

production

of these products amounted to 7,315,000 pounds, or 38.2

compared with 7,321,000, or 40.0 1963 and 7,637,000 pounds, or 40.7 percent of the total, in 1962. Of the U.S. tobacco, 87.3 percent was flue-cured, 6.3 burley, 4.3 Kentucky, and

percent of the

total,

percent of the

total,

in

Stocks of U.S. tobaccos held by

German manufacturers

and dealers on December 31, 1964, totaled 73.3 million pounds, compared with 77.0 million held on December 31, 1963. These were equivalent to 10.3 months’ supply based on usings during 1964.

Turkey’s Tobacco Exports Up

Turkey’s

exports

unmanufactured tobacco

of

1964, at 125.6 million pounds, recovered the abnormally low level of 98.3 million

but were

moderately small

during

somewhat from pounds in 1963 to

the large

Increased exports to the United States, West

Germany

still

Belgium-Fuxembourg 46.8 Union 80.4 (60.3). The average export price per pound of all leaf shipments in 1964 was equivalent to 73.7 U.S. cents, compared with 70.1 in 55.5

(53.4),

(58.6), and the Soviet

1963, 49.0 in 1962, and 45.5 in 1961.

Exports during calendar 1965 should set a new high, based on a record carryover from 1963 and prior crops plus the new alltime high 1964 oriental harvest, currently placed at 390.5 million pounds. The drop, by more than

20 percent, in grower prices for the 1964 Aegean crop tobacco should also contribute to larger exports in 1965.

New

Zealand’s Tobacco Imports

New

Zealand’s imports of unmanufactured tobacco in

1964, at 4.7 million pounds, were about the same as those

Maryland.

2.1

(64.3), Poland 87.2 (80.0), Switzerland 72.3 (66.8), the

Netherlands

in

relation

However, imports from the United States were up by about 10 percent to 3.4 million. Rhodesia was the second-ranking supplier, with nearly 1.2 million pounds against 1.3 million in 1963. Purchases from the Republic of South Africa in 1964 were 78,000 pounds, and those from India, 50,000. A combined total of 21,000 pounds came from Indonesia, Syria, and Brazil.

for 1963.

NEW ZEALAND’S IMPORTS OF UNMANUFACTURED TOBACCO Origin

carryin and the record 1963 crop.

Hungary, the United Kingdom,

Israel,

and the Netherlands

United States Rhodesia South Africa, Rep. of

more than offset smaller shipments to Poland, East Germany, Switzerland, Belgium-Luxembourg, Japan,

India Indonesia Syria _

Finland, the Soviet Union, Czechoslovakia, and France.

Brazil

Shipments to the United States rose to 78.6 million pounds from 52.1 million in 1963 but were still considerably below the 101.8 million for 1962. Exports to West Germany totaled 15.7 million pounds, compared with 10.8 million in 1963 and 20.4 million in 1962.

Others

year

last

TURKEY’S EXPORTS OF UNMANUFACTURED TOBACCO 1962

Destination

United States

Germany, West Poland Hungary Germany, East

_

.

Switzerland Italy

-

_

Belgium-Luxembourg __

.

..

Japan Finland Netherlands Soviet

Union

1,000

1,000

pounds

pounds

101,839 20,408 4,199 5,668 2,342 3,858 23,824 4,745

52,108 10,752 5,302

1

2,114

2,475 1,726 1,899

1,160 2,597 1,354

976

657

2,133 9,107 4,139 9,814

2,385 4,471 1,466 3,090

4,122

199,926

98,332

125,642

_ _

-

397

1963

1964

1,000

1,000

pounds

pounds

pounds

4,443 1,234 186

3,113 1,315

3,401 1,163 78

51 6 26

16

12

4

5

4

60

15 41

6,006

4,692

4,713

1,292 1,190 1,171 1,089

988 866 858

164

50 -

-

_

-

Total

Spanish Tobacco Imports Increase

Imports of unmanufactured tobacco by the Spanish Tobacco Monopoly in 1964 totaled 60.3 million pounds up 25.6 percent from the 48 million purchased in 1963. Larger takings from all major sources accounted for the increase. These big suppliers were Brazil 20.1 million

pounds, the Philippines

19.3

million,

the United States 4.0 million, and

SPAIN’S IMPORTS OF Origin

Brazil

_

Philippines

Cuba United States Colombia Others 2

Cuba

4.4 million,

Colombia 2.0

million.

UNMANUFACTURED TOBACCO

1,927 1,512

1.005

_

Total

686 5,049 3,739

78,614 15,659 4.061 3,578 3,446 3,053 2,216

209 565

Czechoslovakia

France Others

1

1,000

Israel _

1964

pounds

United Kingdom Austria

1963

1962 1,000

-

Total

1

1963

1964

1,000

1,000

pounds

pounds

13,697 17,853 3,305 1,872 2,169 9,078

20,139 19,310 4,440 4,019 2,015 10,335

47,974

60,258

1

Excludes Canary Islands and Ceuta. “Believed to be largely Dominican Republic and Paraguay. Spanish Tobacco Monopoly.

Preliminary; subject to revision.

Average export prices per pound of leaf tobacco shipped to major destinations during 1964 (comparisons for 1963 in parentheses) in terms of U.S. equivalents were the United States 74.5 cents (70.4 cents), West Germany 69.9 Page 14

U.S. Cotton Exports Increase in

March

U.S. cotton exports in March totaled 584,000 bales, 19 percent above the 490,000 bales exported in March of 1964. February exports, at only 181,000 bales, were

down

Foreign Agriculture

from the 570,000 bales exported

sharply

February 1964.

in

months (August-March) of the 1964-65 season amounted to 2,739,000 bales, 28 percent below the 3,795,000 bales exported in the same period a year ago. Exports of

U.S.

types of cotton

all

in

the

first

8

sequently, the resultant gain in oil outturn during recent

years probably exceeds that of seed production, as such, reflecting the higher extraction rates obtained

YUGOSLAV SUNFLOWERSEED PLANTINGS, YIELDS, AND PRODUCTION

(Running bales)

Destination

1955-59 1,000 bales .... 33 Austria Belgium-Luxembourg ___ 160 0 Bulgaria __ 17 _ Denmark _ -.___ _ 22 Finland .___ 360 France _ ._ _ 475 Germany, West __ 0 Hungary .___ 416 Italy .... 124 Netherlands _ _. 10 Norway .___ 85 Poland & Danzig - _. _ 28 Portugal .___ Spain _ 171 .... 75 Sweden Switzerland _ 64



1962

1963

1%3

1%4

1,000 bales 13

1,000 bales 13 116 19 9 9

1,000 bales 8 61

0 13 13

1,000 bales 23 176 19 16 10

180 101

380 401

297 349

.—

0 192 71



7

1,082

2,373

1,684

1,102

41 271 24

91

448

59 264

43 229



.

54 217 35 33 27

_

.___ .___

Chile _

Cuba

.

_

Hong Kong _

Israel

-

Japan

_

.___

30

_ _

0 16 1,154

....

205

_



.

.

Korea, Republic of

-

Pakistan Philippines South Africa

_

26 153 4 15

.

____



Uruguay

.

______

2

Other countries

_



Total 1

Less than 500 and Cambodia.

bales.

_ 2

4 4

2

1

8 0 8 131 152

9

187

314 20 20 26 1,300

8 8 108 19

15 8 140

313

6

H

U) 0

H84

20

82 47

15 12

0 13

912 190 10

666

12

11

36 22

75 28

48 12

156 10 5 50 34 118 21 0 5 40 34

3,351

5,660

3,795

2,739

14

_

79 202

14 0

895 236

64

Taiwan (Formosa) Thailand

Vietnam

0 15 79 198 51 0 7

10

_

Venezuela

1

4 134 184

____

India _ Indonesia _ Iraq

Morocco

-

__

_

44 56 107 89

.___ 2,690

Canada

Ethiopia

16 14

19

10 73

3

Total Europe _

Colombia

10

17

.___

223 22

2

0 5

2 27 5,100

Indochina prior

37 189 39

2 83 23 122 28

C)

U)

to 1958.

Yield

Production

1,000 acres 206.8 182.1 212.5 240.7 345.9 360.8 2 432.4

Pounds

1,000 short tons 98.6 108.4 129.0 1 150.0 1 210.0 1 250.0 4 270.0

Average 1955-59 1960 1961 1962 1963 1964 1965 1

4

Estimated. Forecast.

2

Compiled from

Preliminary.

3

per acre 954

3

1,191 1,214 1,246 1,214 1,386 1,250

Average yield

in

1960-64 period.

and other sources.

official

Rapeseed Output Increases

Chile’s Sunflowerseed,

66

525 108

_

Plantings

220 56

88 95 286 78 20

.

_

5 10 147 187 0

107 11 51

14 132 35 14

U)

0

56 37 139 113

.

_

6

306

62



Australia

18

441 127

10



United Kingdom Yugoslavia _ Other Europe _

Year

Year beginning August 1 August-March

72

from these

varieties.

COTTON EXPORTS BY DESTINATION

Average

use of Russian varieties of seed. Con-

reflect increased

Includes Laos

Chilean

production of oilseeds is estimated to have 1964-65 from the previous year.

gained significantly in

Most of the increase was in rapeseed, for which there was an expansion in acreage, as well as larger yields. However, sunflowerseed production is also estimated to have increased somewhat, because of a larger acreage.

The

entire outturn of both crops, except

for seed purposes,

farm retentions

crushed for domestic use.

is

Production of edible vegetable oils, refined basis, in 1965 is expected to approximate 55,000 short tons compared with 42,971 in 1964. Oilseed meal output, largely rapeseed and sunflowerseed, in 1965 may approximate 57,600 tons compared with 43,832 in 1964. Consequently cake and meal exports, which in 1964 amounted to 22,747 tons, may also gain significantly.

CHILE’S

SUNFLOWERSEED AND RAPESEED ACREAGES, YIELDS PER ACRE, AND PRODUCTION Harvested

Item and year

area 1,000 acres

Sunflowerseed 1960-61 1961-62 1962-63 1963-64 1 1964-65 2

...

_

_



Production

Pounds

1,000 short tons 36.6 35.3 43.6 49.7 51.8

per acre 956 949

76.6 74.4 77.8 78.1 83.0

... ___

Yield

1,121 1,273 1,248

Rapeseed

Yugoslav Sunflower Plantings To Expand Further

Sunflowerseed plantings in Yugoslavia the 360,000 acres planted in

this



spring are

above 1964 and more than double

provisionally estimated at 432,400 acres

one-fifth

1960-61 1961-62 1962-63 1963-64 1 1964-65 2 1

Revised.

...

.__ .

_

...

2

937 862

87.5 73.1 104.5 108.7 117.9

1,070 1,034 1,377

41.0 31.5 55.9 56.2 81.2

Preliminary.

the annual average for 1955-59.

The marked in

rise

came mainly because

rainy weather late

1964 prevented usual seedings to winter wheat.

a million acres, most of which tion of corn

On

is

It

much

reported that wheat acreage was reduced by as to be shifted to

is

Exports of vanilla beans from the Malagasy Republic

as

during 1964 totaled 1,384,000 pounds, more than double

produc-

and oilseed crops.

average annual yields during the 1960-64 period, Yugoslav

000 short tons. The upward trend May 24, 1965

1963 shipments but

slightly

exported in 1962. Most

the basis of the provisional acreage estimate and

sunflowerseed production in 1965

Malagasy’s Vanilla Exports Up

may approximate

270,-

United States



all

below the 1,411,000 pounds of the exports were to the

the world’s largest vanilla importer.

Malagasy has a quota of 926,000 pounds for vanilla bean exports to the United States during the first half of 1965. Negotiations for establishing quotas for the re-

in yields in recent years

is

said to

mainder of the year

will

be undertaken

in

June or July. Page 15

U

DEPARTMENT OF AGRICULTURE

S.

WASHINGTON.

D.

20250

C.

POSTAGE AND FEES PAID DEPARTMENT OF AGRICULTURE

U.S.

OFFICIAL BUSINESS

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. off

tear

this

Argentine Honey Exports May Increase

The

Guatemala’s Honey Exports, Production Down

recent devaluation of the Argentine peso

may

in a slight increase in the country’s exports of

Export prices

at the

result

honey.

end of April were quoted at $225 f.o.b. Buenos Aires. This is

per metric tons, in drums,

about $10 per ton lower than prices before the devaluation a reduction that could contribute to exports exceeding the high 1964 level of 43.2 million pounds.





Because of a large 1964 crop 66 million pounds plus an unusually big carryover of 13 million, Argentina is promoting both exports and domestic consumption.

Guatemala’s 1964 honey exports, at 3.7 million pounds, were down 47 percent from the 7.0 million exported in 1963. West Germany continued as the most important foreign market, taking 76 percent of the total. Significant 12 quantities were also shipped to Belgium, the United Kingdom, Holland, and Switzerland.

Honey production in Guatemala also declined in 1964, by 37 percent to only 4.0 million pounds. Prospects for 1965 are for another crop of about 4 million pounds. Domestic honey consumption amounts to nearly 300,000 pounds.

Yugoslavia’s Soft

Based on

Hemp Output Up

1964

in

Yugoand tow

estimates of dry stalk output,

official

1964 production of soft hemp fiber approximated 49,600 metric tons, as compared with 43,500 in 1963. This increase was due mainly to higher yields, as the area sown to hemp in 1964 111,200 acres was slavia’s





WORLD CROPS AND MARKETS INDEX Cotton

14

is

1964 exports

to

major exporter of

a

fiber,

with

countries totaling 9,787 tons valued

all

$1.68 million. The United States imports insignificant

at

quantities of

hemp

fiber, practically all

Fats, Oilseeds,

and

A it

new

First

Yugoslav Sunflower Plantings To Expand Further

15

Chile’s Sunflowerseed,

Rapeseed Output Increases

from Yugoslavia.

Sugar Refinery

Mozambique has announced that named Maragra, near

enterprise in

Oils

15

Fruits, Vegetables,

Mozambique To Construct

and Dry Milk Imports Decline

Italian Butter

hemp

soft

March

Dairy and Poultry Products

only slightly larger than that in 1963.

Yugoslavia

U.S. Cotton Exports Increase in

and Nuts

12

Hamburg’s Prices on Canned

13

Canned

Fruit

Fruit

and Juice Prices

in

and Juices

London

Grains, Feeds, Pulses, and Seeds

plans to build a sugar refinery,

Lourenco Marques. Maragra's equipment

It

Part of the tions early

new

company

refinery

next year.

that

80

percent

is

will

It

in

Durban, South Africa.

scheduled to begin opera-

have an

initial

capacity to

20,000 metric tons of sugar a year. Plans are to double this capacity by 1967 and to expand it to 60,000

mill

tons thereafter.

Currently about 1,800 hectares (4,448 acres) of land being cleared for planting the first cane for the

are

refinery.

About 60 percent of production

refined sugar for the domestic market,

half of the cane

from individual growers

Mozambique

will

consist of

Page 16

refined at

Maragra

will

come

settled in the area.

presently produces almost 200,000 metric

tons of sugar annually.

Argentina's and Chile’s 1965 Pulse Production

12

South African Corn Crop Below Last Year

Livestock and Meat Products 11

Common Market

11

U.S. Imports of

Largest Beef Importer

Meat Products Higher

in

March

Sugar, Fibers, and Tropical Products

15

Malagasy’s Vanilla Exports Up

16

Argentina Honey Exports May Increase

16

Yugoslavia’s Soft

16

Mozambique To Construct

16

Guatemala’s Honey Exports, Production Down

Hemp Output Up First

in

1964

Sugar Refinery

and the other 40

percent, of unrefined sugar for the metropolitan market.

Around

11

of

be supplied by a large machine-

will

and-tool manufacturing

reported

is

Tobacco Tobacco Imports Rise

13

U.S.

13

West Germany Uses More

14

Turkey’s Tobacco Exports Up

in

March

U.S. Leaf

14

New

14

Spanish Tobacco Imports Increase

Tobacco

Zealand’s Tobacco Imports

Foreign Agriculture