policies, or practices.
OREIGN AGRICULTURE October 14, 1974
ying orange grove,
Taiwan's Thriving Trade Inflation in Eastern
Foreign Agricultural Service U.S. DEPARTMENT
FOREIGN AGRICULTURE 41 • Oct.
Boom Economy Spurs
In this issue:
Taiwan’s Boom Economy Spurs Demand for Farm Im-
By Amjad H.
Beginning To Affect Economies of Eastern Europe By Thomas A. Vankai Rains Come to the Sahel But Massive Famine Relief Continues By Snider W. Skinner Incentives New Canadian Aimed at Strengthening Wool Industry By George C. Myles World Copra Output RecoverInflation
By Ross Tobacco U.S.
he Republic of China (Taiwan)
ports and capital goods only 13 percent.
But by 1972 agricultural and industrial
raw materials made up 57 percent of the value of imports, and capital goods
Farmworkers spraying oranges in one of Taiwan’s citrus groves. In 1973, Taiwan’s exports of farm products were valued at about $615 million— including about $6 million worth of canned oranges to the United States. See article begin-
—more than doubled offers
the years ahead. This
meet growing needs, and
tary for International Affairs
Commodity Programs L. Hume, Administrator,
At the same time, the United States an important market for Taiwan, although here industrial commodities dominate a trade that was $1 billion in the first half of calendar 1974 alone.
and canned mush-
Kay Owsley Patterson, Editor MacPherson, Beverly J. Horsley, Mary Frances Owsley, Patricia 0. H.
Marcellus P. Murphy, Isabel A. Smith, Susan Atkins.
the United States Taiwan’s leading ex-
Hallowell, William Horbaly, Richard M. Kennedy, J. Don Looper, Larry B. Marton, Brice K.
necessary in transaction of public business required by law of this Department. Use of funds for printing Foreign Agriculture has been approved by the is
Office of Management and Budget (May 14, 1974). Yearly subscription rate: $20.00 domestic, $25.00 foreign; single copies 45 cents. Order from Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. Contents of this magazine may be reprinted freely. Use of commercial and
trade names does not imply approval or constitute endorsement by USDA or Foreign Agricultural Service.
Taiwanese exports to the United States
of this trade
dominated by the United States, which in fiscal 1974 shipped $518 million worth of farm products to Taiwan. This represented a more than 100 percent gain over fiscal 1973 sales of $243
Taiwan’s leading agricultural imports fr
include wheat, corn, soybeans, cotton,
and tobacco 90 percent of which come from the United States. In fiscal 1974, U.S.
Taiwan totaled around $482 million, compared with $221 million the year before.
the United States.
In 1973, such shipments totaled about 600,000 tons, valued at $139.4 million a figure that climbed further to $155 million in fiscal 1974. Taiwan’s consumption of soybean meal increased more rapidly than did consumption of soybean oil, owing to expansion of the
half of calendar 1974, for
livestock industry. irf
Corn, formerly used chiefly for food, tel
percent of that country’s total exports.
imports from the
quantities of corn in
United States shipped about 17,000 tons. lot
Until 1972, U.S. corn exports to
Despite efforts to expand domestic
fluctuated between 2,000 and 308,000
tons yearly. ska
food and feed imports
Meeker. The Secretary of Agriculture has determined that publication of this periodical
outsold only by Japan in the Taiwan
Advisory Board: Kenneth F. McDaniel, Chairman;
This strong two-way trade has
market. The more than $1
port market, while the United States
eign Agricultural Service
accounted for 37 percent.
Clayton K. Yeutter, Assistant Secre-
1974 potential for futher growth
U.S. agricultural exports in
important market for selected agricul-
ning this page.
This week's cover:
Economic Research Service
aided by strong demand, domestic crops
Crops and Markets
AMJAD H. GILL Demand and
products are being subsidized, long-term supply agreements sought, and foreign sources
hailand was the chief supplier of corn to Taiwan until 1972 when
the United States took the lead. U.S. corn exports to Taiwan totaled a record
are being arranged with
560,000 tons, valued
about $50 milh|
some oil-producing countries to expand two-way trade in industrial equipment as well as
and edged up
value to $52 million for
Taiwan has signed
lion in calendar 1973,
with U.S. suppliers for importation of
undergone a fundamental
about 1.35 million tons of U.S. corn
composition. In 1952, agri-
over the next 3 years. The United States has been the main
and industrial raw materials accounted for 74 percent of total im-
supplier of wheat to
since 1953. ft
Between 1953 and 1967, U.S. wheat exports included both Government-assisted
and commercial shipments. Since then, all wheat imports from the United States have been on a dollar basis. In fiscal 1974, U.S. wheat exports to Taiwan soared to $152 million for a nearly 350 percent gain from the fiscal 1973 level. Under a new 3-year trade agreement, U.S, suppliers are scheduled
wheat to Taiwan. Taiwan depends almost imports the
supply of cotton.
industry expanded rapidly, and cotton
cotton exports to !j!
U.S. record Every square foot of arable land in Taiwan
marketing year 1973-74
(August-Iuly). Sales of about 400,000
bales for shipment in 1974-75 represent
a value near the 1973-74 level.
Takings of tobacco and cattle hides from the United States also reached
those in the previous the
quality cigarettes. Sales of U.S. nonfat
dry milk and inedible tallow also rose. Total exports from Taiwan have 1
similar sharp gains.
use of available
chemical fertilizer is broadcast nearby by another field worker. Taiwan's agricultural production is expected to rise about 4 percent this year. Rice cropland is 5-10 percent greater this year than last.
farmland. Workers in foreground, below, weed ricefield, while
about $25 mil-
U.S. tobacco exports to
Taiwan were valued i
of food, such as the garden crops, above.
figure of about $4.5 billion represented
an increase of around 50 percent from the $3 billion shipped in 1972. Agricultural exports in
1973 rose to $615 milthe 1972 value.
— 33 percent over
clined in importance over the long term,
Taiwan’s rapid economic development and its shift from an agrireflecting
cultural to industrial base. In 1958,
and processed agricultural goods
counted for 86.3 percent of Taiwan’s total export trade.
had declined to 56 percent, and by 1972, to only 17.1 percent. At the same time, sharp gains were made in industrial
major agricultural exports in 1973 were sugar, frozen pork, canned asparagus, canned mushrooms, canned and fresh pineapple, tea, and vegetables. Exports of sugar, the most important agricultural commodity, increased from $88 million value in 1972 to $91 million in 1973. The major sugar buyers were Japan, South Korea, and the United States.
Frozen pork was the second major commodity in export importance. Exports of frozen pork were valued at October 14, 1974
w11. tit \ 4
%t $69.5 million in 1973, compared with only $20.1 million in 1972.
The major pork
the Philippines, and
sugar, canned mushpineapple, canned canned oranges, and canned asparagus. Trade States
these individual products, however,
has shown some sharp
Taiwan’s agricultural exports to the
United States in fiscal 1974 were valued at about $82 million up almost 19 percent from the fiscal 1973 total. Major items shipped to the United
and often rather sudden changes during the last decade. Sugar played a leading role in Taiwan’s expansion of exports to the United States during the early 1960’s, but later began to lose ground to such
— mushrooms, canned canned pineapple, and other fruits and
domestic production of 95,000 tons in 1974 about 12 percent higher than the
While sugar’s fortunes in the U.S. market steadily eroded, falling to $10.3
to successive records.
—more than double the
But shipments of canned mushrooms fell from about $25 million in calendar 1972 to $20.6 million in calendar 1973 and held at about 1972.
that level in fiscal 1974.
United States likewise fell from about $7.8 million in 1972 to $6 million in 1973 and oranges $1.3
compared with 12 percent
1973 and 11 percent
about 9 in
eroding the favorable trade balance that
Taiwan has enjoyed
for the past few
years. Also, domestic price stabilization
be a major problem, due to the annual rate of inflation of over 12
expected to increase by about 4 percent this year. Rice cropland probably will be 5-10 percent larger than in 1973.
The Government’s 1974 production
target for rice
Large quantities of corn are required for Taiwan’s expanding livestock industry,
and the Government hopes for
corn imports over the next 3 years wifi be imported from the United States.
The Taiwan Food Bureau ended system
1973. In the past,
supplies obtained under the barter system have been instrumental in maintaining stable prices for this major cereal food. Food Bureau rice purchases under
of several major domestic
Sugar prices to farmers are guaran-
metric ton of raw sugar produced from
Rice price for pending.
and housing construction, of the
being taken to preserve
The Government’s major increase output
a substantial investfor
1974 production for
cents per kilogram for deliveries to the
Government under the rice tax program Food Bureau under the cash
or to the
Mushroom canners the
are required by
to pay growers about
prices of fertilizer so as to encourage
40 cents per kilogram for fresh mushrooms purchased from farmers during the 1973-74 growing season. There is no requirement that all mushrooms produced be purchased. Asparagus canners are directed by the Government to pay about 28 cents
per kilogram for first-grade asparagus
example, investments in water storage
However, rising costs of some imported raw materials such as crude oil and agricultural raw commodities plus higher ocean freight rates are
been overwhelmingly in Taiwan’s favor. An agreement signed in 1973 provides that a majority of wheat, soybeans, and
teed for the 1973-74 crop at
the slowing effects that
slower rate than in 1973. The
agricultural products in 1973.
gus, $3.4 million; feathers, $2.7 million;
equalize the trade balance, which has
economists as favorable
chestnuts, $4.2 million; canned aspara-
from the United
did not provide enough rice in Government hands to prevent price rises of nearly 400 percent early in 1974. The Government continued to con-
Taiwan's economic growth rate in both 1973 .
estimate for expansion in gross national
a floor-price cash-purchase plan in 1973
Other commodities shipped to the United States and total values in fiscal 1974 are: Tea, $2.1 million; water
of their agricultural raw materials needs
and input controls. The two largest problems facing Government agricultural planners are a shortage of land and low farm income. While there is not much that can be done to expand total farm area, the Government is making an effort to retain as much of present farmland as possible, and to finance inputs that will increase farm output. The recent ban on the use of highly
in fiscal 1974.
from the United
through such devices as taxation,
to $5.8 million
and citronella oil, $1.2 million. Taiwan’s strong demand for imported farm commodities has been supported by its booming domestic economy, which in 1974 is growing at an only
making a major
been instructed to buy major portions
a substantial degree of
purchases of agricul-
effort to increase
Agriculture in Taiwan
than $6 million in
million in 1973
However, recently the situation has again changed. With high world prices, sugar exports to the United States in fiscal 1973 shot back up to over $15 million and in fiscal 1974 to more than
million in calendar 1972, shipments of
has since been increased.
and distribution facilities in the ChiaNan area will add about 75,000 acres to
present irrigated 1.1
also controls selling
Also, subsidies are provided for im-
purchased from farmers. The
ports of soybeans and wheat, and ceil-
prices for lower grades are set accord-
ing prices have been set for items produced from these subsidized raw agri-
to purchase the total crop produced.
measure to reduce the impact of rising world prices, the Government reduced the import duty on a large number of imported farm commodities by 50 percent. The Government in early 1973 estaba further
lished a low-interest
ing to quality. There
volving loan fund to finance imports of
no requirement price
canners were permitted to pay for fresh pineapple during the winter 1973 har-
from about $29 to about $35 per metric ton, depending upon quality. There is no requirement to pur-
chase total production.
Tobacco minimum purchase
prices Continued on page 11
— culated to counterbalance subsidies.
Beginning To Affect
consumption, domestic investment, and
three spheres of the
exports. In 1973,
in part to in-
creased industrial productivity, the ag-
Demand and Competition
ranged from 5 percent
Economic Research Service
10 percent in Poland.
Higher incomes invariably increase
nettlesome economic problem for many Western countries inflation is now beginning to harrass some of
the centrally planned Eastern
In at least four countries slovakia, East !
Germany, Hungary, and
defensive measures are being
taken, and State planners in these counare assessing the impact of infla-
tion on domestic food consumption and on agricultural production and trade.
rising retail price indices
not an alarming problem in Eastern
Europe. Consumer price increases have
been suppressed by price control. Only some selected retail price increases have been allowed, and these
cases been balanced by
Czechoslovakia, East Germany,
Hungary, Poland, and Romania) of the Council for Economic Mutual Assistance
are self-sufficient neither
food nor in energy, and sooner or
impact of higher prices must
show up in the form of lower purchasing power for consumers. The principal factors of cost-push inprice increases in world Approximately one-third of East European foreign trade is conducted with countries where price increases have occurred countries that are
Unplanned expenses for investments combined with a positive trade balance, as in Hungary in 1973, exert a demandpull effect. None of the Governments of Czechoslovakia, East Germany, Hungary, or Poland succeeded in achieving
as devices for keep-
ing investment outlays.
and are kept agreement is
Nevertheless, the internal economies
inflationary pressures, but through strin-
from the worldwide
effects of cost-push or flation, or
any prevalent inflationary psychology at
to bring latent inflationary forces into fast action.
manifold causes of
inflation found in the world’s enterprise economies exist in the centrally planned
economies, and the effects of inflation differ
each economy according to
the countermeasures adopted.
approved by Keynesian economists and tolerated in most developed countries, has also been approved by a majority of East European economists. Galloping inflation, generated by increased raw materials prices larly of
food and energy
penetrated the centrally planned econo-
mies to any extent.
However, the effects of higher world prices on the centrally planned economies have been averted only temporarily October 14, 1974
and that project completion times were underestimated, forcing
tives of financing additional
tions in granting additional funds tend to
investment completed projUsually, socioeconomic considera-
costs or having partially
override economic feasibility.
The cost-push effect usually exerted by wage increases or administered pric-
situation occurs because price rigidities
minimized by official controls, but even in socialized economies not all incomes are derived from controlled
farm incomes of Czechoslovakia, East Germany, and Hungary countries where private ownership of land is minimal.
while not inflationary
financed by loans, have an indirect
inflationary effect, as the balancing in-
difficult to calculate
gent controls the outward appearance
that cost overruns
choices between the undesirable alterna-
of inflation has been avoided temporarily.
of the four countries are under severe
They found worked better
prices are negotiated for 5-year periods
sumption, domestic investment, and ex-
price reductions. Prices of staple food
As a result, annual meat consumption rates projected in Czechoslovakia, East Germany, and Hungary for 1975 actually are being reached in 1974, and in Poland the projection for 1975 was attained in 1973.
ing incomes in check than for restrict-
under the terms of
an agreement signed trade
for stably priced food, particu-
of which add to the cost
consumers from the hardships of price
Poland, 84 percent of
hands of citizens hav-
nonessential foods and beverages, and
ing access to
consumption of self-produced goods and the prices received on free markets rise faster than farm productivity— as has been the case an inflationary effect exists. Other cost-increasing factors are the interest rates charged to enterprises for capital borrowing and turnover taxes on industrial goods calIf the
reduced investment outlays. Price stabilization, which requires a
considerable degree of regulatory nipulation, has
maintain since 1973.
currency trade price
maneuvers has be-
achieve in East-
ern Europe because prices of imported
raw materials have increased
ducers in each of the four countries
by the abolition of vehicle
higher prices were established for pri-
In Poland, special fuel allocations have
to unrealistic levels,
Prices charged by retailers and pro-
and precludes any benefit that
Food subsidies annually are becoming more burdensome, and now ac-
might be achieved by increasing export
count for an average 8-10 percent of
their populations for thrift
budget outlays in the four coun-
In Hungary, the food subsidy in-
of coal in place of oil or gas. In East
producers from fluctuations in import prices
stimulation of agricultural pro-
duction has continued, due to higher
and efficiency the use of energy, and for the use
Germany, industry has been ordered
creased by 10 percent in 1973. Retail prices of domestic fruits
addition to administrative meas-
2.4 percent in 1974.
meat and meat products, bread and
which are not controlled in the four countries, have risen mark-
cereal products, milk and dairy prod-
edly. Also, prices of alcoholic beverages
countries to acknowledge officially that
and imported coffee, cocoa, and were hiked in 1973.
turn to pre-1973 levels nor to past price
Only in Hungary, where a 1971-75 economic plan is in effect, have some food prices been increased. retail Higher prices were posted for milk and milk products in 1972 to alleviate a short supply situation, and the result was a drastic reduction in milk consumption and the creation of a milk all
of the four
import prices probably would not
Producers of steel, chemicals, and clothing have been notified they must pay more for their raw materials, ratios.
have involved subsidizing staple and charging turnover tax on nonfood consumer goods to comlations
benefits or higher product prices if the
After some hesitation, the Govern-
production costs cannot be
Hungarian Foreign Trade Minister
ments of Czechoslovakia, Hungary, and Poland increased prices of gasoline and diesel fuel in 1973, thus adding to agricultural production costs. In Czechoslovakia, the higher prices were offset
four countries, price manipu-
creasing prices of goods in the “non-
surplus in 1973. In
Jozsef Biro describes the scale and pro-
portion of price
in the history of socialist
Continued on page 12
SELECTED ECONOMIC INDICATORS: CZECHOSLOVAKIA, EAST GERMANY, HUNGARY, AND POLAND Czechoslovakia Rate of growth
annual average planned
annual average planned
5.0 5. 5-6.0
annual average 1973 planned actual
Percent PercentPercent Percent PercentPercent 4.7-5. 1 5.1 5.2 5.0 5.5 5.4 .
1971annual average planned
National income Industrial production
Poland Rate of growth
Rate of growth
Rate of growth
Percent Percent 9.5 12.0
production Real income
Meat consumption .... 78 use per hectare .... 229 per capita
109.8 101.1 114.9
109.3 105.0 113.6
99.8 101.0 98.2
99.8 102.1 96.4
104.3 106.8 102.0
109.4 109.7 106.9
106.8 108.1 102.7
107.2 110.1 99.5
107.9 110.4 99.7
Food products Industry goods 1
Includes food industry.
( ) 4 ( )
4 ( )
Not available. Foreign Agriculture
from Dakar, Senegal,
to the Sahel, But
jan, Ivory Coast, to
Massive Famine Relief Continues
mostly of grain sorghum
high-protein foods consisted
and similar products.
severe flooding later in the season.
In any case, pasture conditions had
improve simply because such a large part of the area’s livestock population had died from lack of food and/ to
region for 5 years.
tional relief efforts continue
by the European Community, France, West Germany, the Food and Agriculture Organization, the United Nations Children’s
River; at Parakou,
been mobilized to amounts of food into
drought-stricken regions, although
bottlenecks have developed. In the
of 1974, a shipment
of 1,600 metric tons of U.S. sorghum
at Oran, Algeria (on the Mediterranean Sea), and hauled overland by truck across the Sahara to Gao,
and Tessalit in
ern terminus of one of the country’s
All of the transport facilities of the
THER bottlenecks have developed at Rosso, Mauritania, where foods
in Mali. In 1974, as well as
1973, a U.S. Air Force Task Force
and Maiduguri, Nigeria, the
north end of another In that
Sahara, contributions of food have also been made to the Gambia, Guinea, and
as well as to some other countries in East Africa. Drought con-
ditions have also been reported in northern Nigeria and the far northern part of Ghana. Neither country has asked
for international relief, however. Nigeria is
resources to meet
at Bamako, Mali, to airfields at Gao, Tomboucto, Goundam, Tessalit, and
In addition to famine relief, the Sahel countries will also benefit from several middle- and long-term projects
July 31, 1974, total U.S. aid commit-
truck caravans from Oran; and by Niger
River barges from Mopti, Mali.
the United States
ship food for famine relief
foods have been
about 40 percent of the total
and Contonou, Dahomey.
Norway, Spain, Sweden, Kingdom, the United Arab
gestion has been particularly heavy at Dakar, Senegal; Abidjan, Ivory Coast;
were also recently completed to open Mauritania and Chad to airshipments of grain and other foods from Bamako. In addition to the airlifts by U.S. planes from Bamako, the distribution point at Gao has been supplied by a variety of other means and from several directions by truck from the railhead 1974 at Parakou, Dahomey; by the
of the railroads, trucks, and waterways to get foods in the required amounts to hungry people inland. Con-
Emirates, the Soviet Union, and other countries and international organiza-
of three C-130’s flew grain from a base
In addition to the U.S.
contribution, relief has been given
Despite these massive
and other foods have piled up on West African docks because of the relative
crops provided the greater part of the
to subordinate sup-
Niger and have to be
the six countries. Barges on the Niger River are also used to move supplies
— 50 percent or more some countries — there now more should be rememper animal. Also, — bered some areas —home-grown or water
or go by separate routes, has added greatly to the transport capacity for delivery of food to hungry residents in
Volta, Niger, and Chad.
Several of the Sahel countries suffered
Chad. However, it is still too early to determine whether the rainfall will be adequate to produce normal crops and thus end the drought that has gripped
from main depots
Rains were above normal in July in
supplied by other means. The use of large-capacity trucks over roads that either parallel the railroads,
he rainy season is in progress in the West African countries that are known as the “Sahel” Senegal, Mauritania, Mali, Upper Volta, Niger, and
Parakou, Dohomey; and from Apapa (Lagos) and Port Harcourt, Nigeria, to
Chad have no
per Volta; from Contonou,
By SNIDER W. SKINNER Foreign Demand and Competition Division Economic Research Service
Koulikoro, Mali; from Abid-
kinds (including food) to
the six Sahel countries $ 145-million level.
October 14, 1974
had reached the
the railroads used to supply food to interior West Africa are
that have been initiated
by the United and by in-
States and other countries
programs to improve river navigation on the Niger River in Mali, animal and human health, railroad rolling stock and tracks, crop storage facilities, and are
water supplies. Also being studied are projects aimed at improving range man-
agement techniques, increasing agriculand a scheme detailing the possibility of settling nomadic tribes on farms. tural production,
Zealand to become the next-to-
source, ranking second to the United Kingdom, Canada’s longtime major supplier. largest
At Strengthening Wool Industry
Canadian wool producers face virwool from
tually duty-free imports of
Office of U.S. Agricultural Attache
new Federal and
and mutton incentive programs,
tempting to reverse a 10-year decline in sheep numbers and wool production. Sheep and lamb numbers decreased by nearly 40 percent in the 10-year
period ending June
was eroded, due mainly to lack of economic stability. However, strong domestic lamb prices and producer incentive programs now provide some optimism in Canada’s sheep industry, although 1974 wool in the industry
pounds of wool clipped 7.8
Canada’s sheep numbers into 1975, thus bringing about increased wool output. Canada’s
production at 1,215,000 pounds also was down 7 percent from 1972 levels. Alberta and Ontario are Canada’s
producers of wool, accounting
and 22 percent, respectively, of total shorn wool production in 1973. Average fleece weights are heaviest in Alberta and Saskatchewan at 9.1 and 9 pounds, respectively, well ahead of the 7.8 pound average for Canada.
amount imported, and
reach 39 million pounds, an 8 percent increase over 1973 domestic disappear-
ance of wool.
influenced mostly by the quantity imported.
to 37,578,000 pounds, due mainly to reduced imports. A decrease in wool production accounted for only
2.5 percent of the decline.
1973 fell back to 1971 by 419,000 pounds from the 1972 level. Domestic disappearance was off sharply in 1973 down 25 perlevels
pounds from 45
million pounds in 1972.
Sheep numbers declining
Canada have been The total number
of sheep and lambs on farms on January
1,378,000 1973 from 1,837,000 pounds 33
down 25 percent from 1972’s 45 million pounds. The average farm price of wool in 1973 was 70.9 cents per pound, up substantially from the 1972 average of 31.4 cents per pound. Members of the Canadian Cooperative Wool Growers, greasy basis in 1973,
received an additional patronage dividend of 3 cents per pound in 1973.
Total farm value of shorn wool produc-
exports are expected to remain
or about 1973 levels. Domestic con-
washed wool exports from 58,000 pounds in 1972 to 172,000 pounds in 1973 as Belgium-Luxembourg emerged as a new market for wool of this classification. The United Kingdom continued to be Canada’s major wool export market. Domestic consumption of raw wool in Canada totaled 36 million pounds
Canadian imports of raw wool during first-quarter 1974 were down slightly from the correpsonding period of 1973, pounds for the year, over the 1973 level.
retention programs this
as in 1973.
ducers claiming advantage of available
The Western wool clip at 1,997,000 pounds was down 7 percent, and Eastern
expected to be about
from 1,987,000 pounds in 1972. The major item of export trade is wool in
152,000 on January 1, 1974, compared with 158,000 on farms as of January 1, 1973.
4 percent to
ably will yield close to the 3.2 million
1,568,000 pounds greasy basis in 1973
revised 1972 level of 3,448,000 pounds.
level of shearing in
age fleece yield
percent to 3,212,000 pounds from the
world wool prices.
The number of sheep 1 year old or more was down 3 percent to 410,000
1974, was 561,500, compared with
579,400 a year
on raw wool imports into Canada are those on wool not further prepared than combed. Such imports are free under the British preferential rate, and have most-favored-nation and general tariffs of 5 and 15 Canadian cents per pound,
f THE TOTAL 3,221,187 pounds of
wool graded in 1972, 2,776,218 pounds met acceptable grade standards and 289.919 pounds fell into reject grades. Although the 1973 wool clip was sound and well grown, it was said to have an unusually high percentage of chaffy and burry wools. Hay and straw stems were the main problems. Canada is a net importer of wool, and depends heavily on foreign sources for consumable supplies. Total raw wool imports in 1973 were 34.4 million pounds greasy basis, down 21 percent from 43.6 million pounds in 1972. Decreased imports of scoured and washed wool and wool tops were major contributions to the lower 1973 import volume. The United States in 1971 was Canada’s fourth largest supplier, but by 1973 had displaced both Australia and
tion reached $2.3 million in 1973,
pared with $1.1 million
have been put into effect by the Alberta and Nova Scotia Provincial Governments as well as by the Federal Govern-
lamb processing plant being built Innisfail, Alberta, by the Lamb
Processors Co-op, Ltd.,
operation in the is
scheduled to of 1974.
operated jointly by the
Wool Commission, Government, and individual
Alberta Sheep and
supply of about 60,000
lambs per year probably to
50,000 lambs were slaughtered at Winnipeg and Edmondton, and at least some of this volume to the
expected to be diverted
facility at Innisfail.
Continued on page 16
World Copra Output Recovering
ing and the
now improvmay be up to
Production in Papua year
be up by about
percent over the 1973
Foreign Commodity Analysis, Oilseeds and Products Foreign Agricultural Service
level, for a total
copra-producing countries, copra also is
orld production of copra
estimated at 2.5 million metric
tons in terms of
percent or 44,000 tons from the 1973
result of lack of rain in principal pro-
ducing areas. The 2,471,000-ton total volume of oil produced in 1973 was
293,000 tons from
11 percent or
Copra production generally was
of the 1960’s, but increased
In addition, lack of
are expected to ex-
year, up There probbe further improvements in
1975 to about the 1.4-million-ton level. The four major producer-exporter
year that was only 41
new Land Reform
contributed to the
World exports of copra and coconut
certainty over the
Hebrides, Mozambique, and some other
1974 is estimated at 96.000 tons an improvement over the relatively low output of 67,000 tons produced in 1973 that was the result of severe drought conditions. equivalent)
the high production of 2,764,000 tons
Lanka’s production of copra
increase in copra production in 1975. Sri
567.000 tons, up 2 percent from the 1973 level. There should be a slight
Last year’s production was
appears likely to
percent of the
1,045,000 tons of
equivalent) and coconut
84 percent of the However, during 1973 and 1974 copra-coconut
Continued on page 16
be almost back to the rela-
COPRA: ESTIMATED PRODUCTION BY SELECTED PRODUCING COUNTRIES ANNUAL 1968-73 AND FORECAST 1974
Almost three-fourths of the world’s is produced in four
1,000 metric tons)
supply of copra countries
200 279 669
cent of the world output of 2.5 million
Indonesia Malaysia 3
194 274 660
Philippines 2 ....
Lanka, and Papua New Guinea. The combined production in terms of oil in these countries in 1974 is estimated at about 1.9 million tons, or about 74 perSri
69 percent of the
Papua Other Total
The Philipbe down about
2 percent in 1974 from 1973, as a
16 109 31 16
60 49 109
60 52 112
57 50 107
54 54 103
60 54 114
100 64 164
40 17 83
cent of total world output.
New Guinea 2 .. New Hebrides
105 290 871 196
280 711 182
255 290 846 190
leading producer of copra
was again 70 percent. Only in the past few years has the proportion produced by the major producer-exporter coun-
1965, their it
share was 70 percent; and in 1970,
of rainfall shortage in the main
producing areas that started early in 1972 and continued through January
Americas* Mexico Other Total
136 66 202
118 62 180
140 65 205
production in the Philippines could
tons in 1975.
the second largest pro-
ducer of copra, and the 1974 output October 14, 1974
Commercial production on the basis of the combined copra equivalent of exports excluding nuts used for food. 3 Includes Sabah and Sarawak. 4 64 percent of copra. Page 9
— generally higher prices for this type of
German Tobacco Difficulties Dampen U.S. Export Prospects nited States tobacco exports to West Germany depressed in recent years by a declining market share
to less-expensive cigarettes.
cheaper varieties to help curb spiraling
in 1973 with 8.3 percent of the market; Turkey, 8 percent; Greece, 6.5 percent; and the People’s Republic of China, an
estimated 6 percent. Also, Brazil
These price increases already have made their impact on German tobacco consumption, bringing a halt in 1973
percent of total imports) and Argentina
near future as a beleaguered domestic tobacco industry turns increasingly to
to the long-term
in cigarette use
again in 1974.
this are difficulties caused by the smoking and health controversy, plus economic uncertainties at home and the leading market for Gerin Italy
have been of increasing flue-cured
while Mexico (1.5 percent)
some help from
exports have received the
a developing trend
manufacture of cigarettes. Here again, however, U.S. share of the market was off slightly in 1973 from the year before to 30.4 peris
In cigars, use of a
of 0.6 percent
In addition, the the
average cost of U.S. tobacco to
underlined by West Germany’s
Behind the changing composition of German tobacco trade is a substantial
increase in retail prices in recent years.
1973 totaling 321 million pounds valued
The sharp jump
German tobacco averaging some
other third countries.
than the lower-quality tobaccos
more competitive with other
importers by nearly 16 percent, making
use of smoking tobacco
mark’s revaluation in 1973 reduced the
age points from the 1972 level to 19.2
tobaccos such as those produced in the
he bulk of U.S. tobacco sold in Wect Germany about 97 per-
—may help maintain U.S.
being light and mild. This trend
supplier of burley.
Use of more flavorful cigarettes, on the other hand, continued its steady growth of recent years, accounting for 20 percent of the market in 1973. The increasing popularity of American and domestic-made French-type cigarettes has contributed to the advance and prompted German manufacturers to place more emphasis on this quality. Even the nation’s leading brand is moving toward fuller bodied types after
responding to spiraling prices by shifting
caused tobacco importers to look
cigarette at a time
In the trade policy area, the so-called
applied by the European
to be a difficult problem for U.S. tobacco. The wrapper tariff a special duty on high-priced tobaccos hits most strongly at U.S. types, which accounted for a third of this category in 1973. Still, however, the
progressive devaluation of the dollar, as
outcome of an increase in the excise tax in 1972. As a result, German cigarette consumption reversed a 4-5 percent
well as the fact that the parity of the
yearly growth rate, sliding 0.8 percent,
most U.S. tobacco out of
from other countries, duty-free tourist import quotas, and a certain amount
while the declining trend in cigar sales accelerated to 8 percent in 1973. Pipe tobacco sales also fell by almost 3 per-
million. In addition, as
a billion cigarettes
1973 as a
result of direct im-
ports of international brands, plus imports of
unit of account versus the
DM3.66, helped keep this class in j
of illegal trade.
1974 shipping the country 103 million
Only the consumption of fine-cut smoking tobacco largely used for rollyour-own cigarettes increased, by
pounds of tobacco, valued
nearly 12 percent.
States has been
portant participant in this trade, in
This was exceeded
the previous year. in quantity
1.17 million the United
only by U.S. shipments of
Japan was the second most im-
gain of about 12 percent from
lion, for a
share of the
Lower manufactured-product imports and higher exports did permit the industry to step up output of all such products, except cigars, whose output suffered from both poor foreign trade performance and a declining domestic market. cigarettes
production and sales
lso in this area, the
has proposed that the
tobacco tax harmonization be
extended by a year
June 30, 1976.
industry believes this ex-
tension will give
the extra time needed
to consolidate opposition forces within
The growth of
and the need to economize has
United States has seen a gradual erosion in its
The German Government has attempted to have the EC remove the tariff, but most sources believe success is mce likely to come through multilateral trade negotiations now underway.
against a predominantly
ad valorem tax system, which would
carry a heavier tax burden for higher
accounted for about 25 percent of the German cigarette market. The growth abatement is related to the
priced cigarettes. However, there
the possibility that, before the expiration
date of the
an attempt will be agreement on the final
— of tobacco excise tax into specific
and ad valorem components. In addition to
amounts of tobacco
sulted in serious marketing difficulties
privately that over the long term price
German-type Geudetheimer from 60 metric tons in 1971 to about 800 in 1973 and an estimated 1,200-1,500 in 1974 has reof
dustry as been quick to deny the rumors,
vending machines are being remodeled for the sale of higher priced cigarettes.
increases appear unavoidable. But
30,000 metric tons, mainly Indonesian
huge cigarette which expanded sharply export trade to about 9.3 billion pieces in 1973 from
under contracts with dealers. Industry
sources state that the Italian Geuderthei-
reached the point where further hikes
cigar leaf. It also has a
5.2 billion the year before
tax and retail price increases.
exports go largely to Italy, the
Netherlands, Belgium, and Switzerland;
of this type
of very good quality and
Germany Geudertheimer. The result has been a German attempt to have exports of this type subsidized, plus efforts to switch
sharp trade gains occurred in the latter
some of of
acreage to burley.
three last year as a result of their lower
hardly surprising that the number of
German tobacco growers dropped by
could have serious repercussions.
market continues to be by the smoking-and-health which has moved more and more
into the focus of public attention. Al-
ready, there have been serious attempts
German Parliament to obtain a complete ban on tobacco advertising. While the issue is still undecided, the
nearly 3 percent during the past 2 years.
tobacco growers are being more dramatically affected by the consumption
considerable restraint exercised by the
cut than either tobacco-product output
Those who remain continue efforts to further mechanize tobacco cultivation, especially in view of a growing shortage
or trade. Following an initial surge in
production after the Policy
2.9 percent to 3,936
However, because of
unusually high yields, production rose
Contributing to the reversal in plantings last year
the fact that growers
overextended themselves when they enlarged their area by 24 percent during the
3 years of the
CAP. This was
due in part to encouragement by dealers entering into contracts with growers and obviously overestimating the forthcom-
ized, while instead cigarette sales
and the decline
in cigar sales
In addition, the pricing mechanism of the EC’s filled
The standard or target prices and buyers’ premiums set by the Community turns.
4 percent, respectively, a result,
average return to
growers for their 1973 crop
have fallen 2 percent below that from the 1970 crop. The placing of a growto
ing portion of the domestic crop into
lower quality grades
a perennial issue
largely contributed to this price trend.
In addition significant
expansion in Italian produc-
October 14, 1974
off a legal ban. Nonetheless, the
of anti-smoking campaigns
for a consolidation this year of
and a moderate increase in the manufacture of smoking tobacco. The overall remaining
use of tobacco
about the 1973
use of American tobacco also staying at
around 90 million pounds; 85 percent of the American tobacco will be flue-
Taiwan Trade Continued from page 4
for 1973-74 production range
cents to $1.33, depending
There is no requirement to purchase the total crop produced.
delivered price during the
about 13 cents per
Overhanging the are a
consumption and trade. One is the general economic condition of the country, including its impact on foreign labor. Strong economic growth so far has attracted over 3 million foreign migrant workers to Germany, and these workers now account for slightly over 8 percent of Germany’s total cigarette usage.
labor force, a favorable economic situation will be necessary. Similarly,
balance of payments, Italy has re-
cently taken steps to curtail imports of
numerous other products.
and energy there have been rumors that another price hike is in the offing for cigarettes. Although the inlabor
about 12 cents
per kilogram for the
The Government does not make
purchase of corn. In addition to its domestic economic program, Taiwan also is seeking extended economic cooperation with some
with Saudi Arabia
agreement signed this
Taiwanese technical assistance in the field of rural electrification equipment, farm machinery, sugar production, chicken raising, and farming promotion.
Agreement has been reached on joint
partnership in Saudi Arabia for
Taiwan’s economic both 1973 and 1974 omists as favorable
growth rate in viewed by econ-
when compared with
the slowing effects that inflation has in
Also, with steeply rising production costs
livered to buyer,
whether Germany’s cigarette exports can be sustained in view of the economic difficulties now facing Italy, market for half such exports and 3 percent of total
Corn minimum purchase
number of questions
growing prices were increased by only 1 percent and for
future, the out-
cigarette production at about the
percent to 25 million pounds.
Looking to the near
effect in 1970, overall
tobacco acreage acres
other countries. Despite major cost
increases, higher prices,
for higher wages,
appears that the
1974, although at a somewhat
slower rate than in 1973.
Continued from page 6
and raw materials,
demand omies,” and adds that
only due to
“the stable character of socialist international relations” that the
economy has not been rocked.
each of the four
had the effect of diverting funds to consumers that were earmarked for improving social conditions and for public works projects. Also, the price changes have raised false economic signals that may retard technological progress. However, the economic disturbances caused by inflacountries, and also have
growth in 1973 actually ran above the annual targets set for the 1971-75 plans.
economic indicators are projected to match the planned annual average rates, which are just slightly below the 1973 achievements. The projected slowdown in the agrifor 1974,
production growth rate
for feed imports.
record grain crops in
tive side, despite
for higher oilmeal consumption.
Hungary’s outturn of protein feed is Although no significant change is expected in production of sunincreasing.
these countries, feed supplies have not
kept pace with livestock numbers. In
However, the price shifts of recent months have tended to perpetuate disparities that existed in
high prices for imports of
East European Inflation
and hog numbers were over 1973 levels.
Preliminary reports of domestic small
Czechoslovakia, East Germany, and
Harvest results in the four countries
— of which potatoes have particular imPoland — are uncertain. portance in
October harvest, average corn
and potato harvests are still possible, in spite of heavy rains in July and August.
an important crop only in
Hungary, which has become a net grain exporter in the past few years. Hungary expected to export grain again in 1974-75 the quantity depending on
This decrease signals an
meal imports to substitute for the decline and to assure operation of the mixed feed industry under established conditions and to provide mixed feed to the livestock creased
industry in accordance with prescribed
Assuming normal weather conditions until the
—equal about 90,000 — expected rapeseed
of corn and nongrain feed components
the principal oilseed crop.
In the three other countries, rapeseed is
grain produced) point to a record crop
Hungary. In Poland the expectation is for a harvest matching the record 1973
year on 25.000-35,000 acres.
grain production (85-90 percent of total
livestock inventories in-
meat outand Government meat purchases the first 5 months of 1974 rose
dicate a capacity to increase put, in
percent in East Germany, and 6 percent in Czechoslovakia.
on the expectation of favorable weather pattern than
was experienced either
farm mechanization are contemplated. Real income growth is expected to ranee from 4.5 to 5.5 percent in Czechoslovakia. East
Germany, and Hungary,
In Czechoslovakia and East Germany, it is expected that grain imports from all sources of 4-5 million tons will level off and that growing demand for feed will be covered by increased grain
to attain a strong 9 percent rate in
Poland. four countries has as
yet arrived at final decisions as to genprice
changes are expected to
1975, and completely
price structures are expected to be de-
veloped for the 1976-80 plans.
as 4 million in 1974.
prices will have to be adjusted.
severe problem developed earlier
year in the beef export trade, caused
by Italian import barriers and by the European Community embargo. Hungary, the largest exporter of first
In fiscal 1973 and 1974, U.S. direct
pact, but the
effects are be-
ing experienced in other East
countries that rely on earnings of hard
1.5 million tons
and exports of soy-
currencies from exports of cattle and
some U.S. grain reaching East Europe through trans-
shipments and through Soviet accounts.
ease this dislocation, the
tons of cotton. Also, imports from the
United States of cotton, tobacco,
countries are to be reduced as
countries helped !Ci
by providing cold storage for meat that had been destined for export to EC
p'ied in the official statements, a leveling
food price subsidies
posable personal income, and stabilized
600,000 tons of wheat, 700,000-900,000 tons of feedgrains, 200.000-300 000 tons of soymeal, and 10,000-15,000
exports of grain to the four countries
bean meal 600 000 tons and 500,000
eyond 1975. foreign trade prices among CEMA members will be
has sustained the heaviest adverse im-
tons, respectively. Also,
of meat at the
Poland, however, will be forced to
omestic meat consumption
If the drastic
meat production growth probably will slacken if new markets for meat do not develop in countries benefitting from favorable prices of raw materials, or if demand in traditional markets does not
and tallow miffion
be financed by a $28 imports
continue to increase, but
emphasis on beef production will benecessary. Hungary has a long-
term goal to convert the dual-purpose cattle industry to beef and milk-produc-
seed production will recede only
program in fiscal 1974 imported about 3,000 head of U.S. breeding cattle. In fiscal 1973, imports from the United
oilmeal-grain price ratio returns to the
For 1974-75, the uncertain market for East European meat exports, cou-
low-protein feed rations
pressures for expanding domestic
States totaled about 2,000 head.
CROPS AND MARKETS GRAINS, FEEDS, PULSES, AND SEEDS
are estimated at 1.4 million tons, 7 percent below the 1973-74 level,
but total corn
expected to increase
through a reduction in stocks.
Wheat Tender Turkey has issued a of
500,000 metric tons for March-July 1975.
third tender for
Wheat purchases under two previous tenders now 874,000-935,000 tons. key’s tons,
wheat imports for 1974-75 will be about compared with 600,000 tons in 1973-74.
1.4-1. 5 million
Government of Japan announced
pulse import quota for the second half of the current marketing year (April-September) at $18.8 million.
of the second half quota in thousands of dollars,
Azuki beans, 3,780; kidney beans, 9,110; broad beans, 2,450; and dried peas, 3,460. This brings the total allocation for Japanese marketing year 1974 to $35.5 million, compared
Rotterdam Grain Prices and Levies Current offer prices for imported grain
Japan Announces Pulse Import Quota
Netherlands, compared with a week earlier and a year ago:
higher world market prices for pulses.
Change from Item
Wheat: Canadian No.
USSR SKS-14 FAQ
Cents per bu.
n C) n
O C) O
U.S. No. 2 Dark Northern Spring:
14 percent 15 percent U.S. No. 2 Hard Winter:
13.5 percent No. 3 Hard Amber Durum Argentine U.S. No. 2 Soft Red Winter. Feedgrains: U.S. No. 3 Yellow corn .... Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero .
sorghum U.S. No. 3 Feed barley
4.20 4.31 4.13
5.70 8.16 C) C)
3.16 3.62 3.20
copra, set at $590 per long ton, and for coconut oil, at 45 U.S. cents per pound, c.i.f. New York, have now been eliminated in the Philippines. A flexible export pricing system, based on world prices, will be used instead to establish the export sales price of coconut products. As long as the price of coconut oil maintains a reasonable relationship with world prices of other vegetable oils, approval for export will be readily granted. Farmgate prices for copra will also be permitted to fluctuate and will reflect world prices. f.o.b.,
World Soybean Output Declines in 1974
World soybean production
53.5 million metric tons, 7 percent below the record 1973 volume of 57.9 million tons. This projection is based on the
0 0 0
0 0 0
September U.S. crop estimate of 1,317 million bushels, com-
6.40 8.10 C) C)
Coconut Product Prices Minimum export prices for
Soybeans: U.S. No. 2 Yellow EC import levies:
OILSEEDS AND PRODUCTS
pared with 1,567 million
indicated decline in
U.S. production reflects a 7 percent reduction in acreage as well as a 9 percent decline in yields. The drop in yields was
Basis c.i.f. Tilbury, England. Price basis 30- to 60-day delivery.
to unusually wet, spring
weather that delayed plantings,
followed by a hot, dry summer. Since September
have damaged the crop, and this this year’s final soybean harvest.
Corn in Mexico An estimated 700,000
damaged by an Mexico. Corn
producer, with a volume of 7 million tons, 2 million above
production prospects also have been reduced by an equal
where a crop of 496,000 tons is sharply above the 272,000 tons produced in 1973. Increased plantings also were evident in a number of minor producing countries, including Paraguay and Colombia, and further gains are expected in 1975.
tons of corn were
frost that hit a five-state area in
conditions, including drought
of states and Hurricane
estimated at about 8.4 million tons, com-
pared with 9.2 million tons in 1973-74. Imports for 1974-75 October 14, 1974
likely to further
This year, Brazil became the world’s second largest soybean
amount by unfavorable weather in the
that of 1973. Substantial gains also occurred in Argentina,
Production of soybeans
year will register the
volume. However, production
on record and
1968, 4.4 million tons below the record in
compared with 50,100
be the second
be cushioned by the
112-million-bushel (3 million tons) increase in U.S. stocks of
beans on September 1, 1974, compared with the depleted volume of only 60 million for the same date last year.
with expanded plantings late
will take place
and this should add substantial quantities for foreign market consumption beginning May 1975. Although small, other South American countries also are expected to increase plantings and production in 1975.
(215); Ivory Coast, 220 (210); Cameroon, 114 (110); Brazil, 175 (240); Ecuador, 55 (62); and the Dominican Republic, 38 (32).
(355); Nigeria, 230
Early prospects indicate that a substantial increase in Brazilian
Estimates for the major producing countries in 1,000 tons,
World Agricultural Production and Trade.
Ghana Ups Cocoa Producer Price Ghana has announced
a 25 percent increase in cocoa producer prices. Cocoa farmers now will receive 15 cedis per
SUGAR AND TROPICAL PRODUCTS Cocoa Council Revises Prices and Quotas At
governing body of the International Cocoa Agreement
price range under the
Jamaica has signed
supply the Mo’
range and reduced export quotas by 87,900
PRC Buys Sugar From Jamaica
nations approved a 6.5-cents-per-pound increase
for the price
60 pounds (21.75 U.S. cents per lb.), compared with 12 cedis per 60 pounds (17.4 U.S. cents per lb.) paid previously.
(PRC) with 10,000 long tons of 1974 crop. The price is US$528 per ton
People’s Republic of China
sugar from the
(about 23.5 cents per
time that Jamaica
be 29.5-38.5 cents per pound, compared with 23-32 cents
has agreed to
Kingdom, Canada, or the United States. Negotiations reportedly are to continue on a long-term arrangement, under which
COCOA EXPORT QUOTAS BY COUNTRY [In
1,000 metric tons]
sugar to a country other than the United
to supply sugar to the
545.0 289.1 212.1 188.4 118.3 26.5 1,379.4
Nigeria Ivory Coast Brazil
Cameroon Togo Total
taking into consideraperce
tion changes in production costs
580.9 307.8 224.0 200.6 126.0 28.0 1,467.3
Sugar output in Jamaica from the 1974 crop amounted to the best since the record 506,000 tons in loans to producers, according to a Sugar
some 378,000 tons, 1965. Government
Industry Authority spokesman, should raise output to about 450,000 tons annually in the next 3 years. for
The Agreement, which became
June 30, 1973, has had little influence over the cocoa market. The purpose of the Agreement was to stabilize cocoa bean prices within a given price range by using export quotas, which are reduced as prices fall, and a buffer stock from which sales are to be made when prices approach the upper end of the range. The export quotas have never been implemented as cocoa prices effective
have remained well above the price range and the buffer stock has not accumulated because of tight supplies. Thus, the revised price range and export quotas will have
no impact on
the current cocoa market, but will provide a higher support
base for the Agreement.
World Cocoa Bean Production
World cocoa bean production for 1974-75 is forecast at million metric tons, up percent over the 1973-74 African production
expected to reach 1,035,800 tons,
which is 7.7 percent above the 1973-74 outturn of 961,800. South American production is forecast at 279,100 tons. This is
will deliver at least 1.65 million
during that period. This
metric tons of sugar to Mais
average annual deliveries from about 70,000 tons per year to
about 275,000 tons.
in recent years has been importing about 340,000 tons, Australia will now supply the bulk of its re quirements. Small quantities of refined sugar are expected tc continue to be imported from the People’s Republic of China
harvest of 1.45 million. Reflecting improved weather conditions,
Australia and Malaysia recently signed a new sugar supply agreement. The new agreement supersedes the previous agreement and covers the period 1975-80. It provides that Australia
Sugar Pact Signed
348,100 because of smaller crops in Brazil and Ecuador. North American production is forecast at 92,200 tons, up slightly over the 1973-74 harvest of 86,000. Production in Asia and Oceana is forecast to reach a record 54,200 tons,
Proposes Export Controls Brazil, the world’s leading exporter of frozen concentrate(
concerned about slow
early season sales
U.S. exports the past two seasons.
Adding to the problem of marketing this year’s recor< commercial orange crop, most of which is processed, were th< suspension of a major processor from export trading (allegedl' for selling below the Government’s minimum export price— Foreign Agricultun
and the bankruptcy of another. Although no official announcement has been made, producers and processors reportedly have accepted a Government resolution aimed at solving some of the industry’s problems. The resolution provides that under Government auspices, Industry Association
a Brazilian Juice
formed from industry representatives. Private firms I
made through ABRASUCO.
The suspended processor
will be eligible to participate. Also, quota for 1974 crop juice exports will be set at 110,000 metric tons. This compares with calendar 1973 shipments of about 120,000 tons. Under the resolution, the
a global export
Government and the
will set prices for
oranges sold to the processor,
been reported that the Brazilian Government will purchase at the MEP all unsold juice for which an export quota has been issued. It
Canning Firm Invest in Greece
well-known San Francisconew fruit and vegetable canning operation in Greece. The cannery reportedly would involve an initial capitalization of about $4 million and be developed as a joint venture between the U.S. firm and the Investment Bank of Greece. The U.S. firm would own 50 percent of the new fruit and vegetable cannery.
Mexico, Pakistan, Turkey, Australia,
Aggregate output in Communist countries is projected at 1973-million bales, down from 22.2 million estimated for the 21.6
expected to be more than offset by a decline in production
slightly larger Soviet
the People’s Republic of
China (PRC) from the record 10.3
million bales harvested in 1973-74 to around 9.5 million in the current season.
(The estimates for the
cantly higher than those previously published, and are part
FAS, Washington, in consultaEconomic Research Service and the U.S. Agri-
of a revised series prepared by tion with the
Hong Kong.) With the September estimate of 13.2 million
1974cultural Officer in
bales in the
75 is 63 million bales. This compares with 62.7 million produced in the preceding year.
DAIRY AND POULTRY
a trade report, a
based canning firm will invest in a
increases expected in
Nigeria, and several South
3-week Danish cutback
in chick hatchings in
portedly was insufficient to bring broiler production in line
storage stocks from mounting are required.
The new program, covering 4 weeks
provided a subsidy for the slaughter of broiler breeder hens. The subsidy to the farmer was equivalent to 15-75 U.S. cents
per bird, and also covered slaughtering and processing costs.
Even with cutback programs, some Danish slaughterhouses have to shut down in December making appropriate
Depressed World Market
For Textiles Continues For some months world by reduced
prior adjustments in chick placements
markets have been marked rising pipeline inventories, and curtailed
of those countries’ textile industries and plans for expansion'. is
slack in Western
have exacerbated the sluggish
raw cotton. This larger-than-usual raw cotton stocks ing the
market, adversely is
EC Donates Nonfat Dry Milk To Food Aid Programs
countries such as Brazil, Pakistan, and Turkey.
exports play a major role in the economic health
1974 quotas on broiler output, which nationally
in foreign countries
the prospect that world production in the current season will
regulation provides for the
donation of 41,000 metric tons of nonfat dry milk to developing countries and international agencies.
the top re-
World Food Program, 20,000 metric tons; the Red Cross, 3,000; India, 2,750; and Bangladesh,
cipients are the
2,000 metric tons.
exceed world consumption.
World cotton prices have been declining sharply since last January and now are about 60 cents a pound, landed Northern Europe. Foreign offers tend to shade U.S. prices by larger margins and foreign buyers are limiting purchases to current fill-in
Canada Suspends Egg Import Quota, Ups Prices On September 16 the Canadian Government suspended egg import quotas
May, had protected
egg price support system.
Foreign Cotton Production
Production of cotton outside the United States is placed at 49.8 million bales in 1974-75, about unchanged from the 49.7 million bales harvested last season. In foreign non-
estimated at 28.2 million
up from 27.5 million in 1973-74. Smaller crops in Egypt, Syria, and India are more than offset by the significant
October 14, 1974
Possibly in view of rising U.S. egg prices, the Ontario Egg Marketing Board reportedly has further increased the producer egg price by 5 cents to 65 cents per dozen at the farm. With the foreign exchange discount, duty charges, and transport costs between the United States and Canada, the price level
be profitable to
below the point at which it would import eggs from the United States. Com-
parable wholesale prices for eggs in
about 65 cents per dozen.
DEPARTMENT OF AGRICULTURE
POSTAGE AND FEES PAID U.S. DEPARTMENT OF AGRICULTURE AGR lOI
PENALTY FOR PRIVATE USE. $300 OFFICIAL BUSINESS
you no longer wish to receive this publiand return this cation, please check here If
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your address should be changed
the new address, including and return the whole sheet to:
Foreign Agricultural Service, Rm. 5918 U.S. Department of Agriculture Washington, D.C. 20250
WORLD COPRA OUTPUT RECOVERING FROM
Continued from page 9
about one-fourth of its copra crop, and most of this volume historically has been in the form of copra. Since 1973, there have been restrictions on experts of copra. The 1974 exports, in terms of oil, are forecast at 70,000 tons, with 1975 likely to be at about the same
The Philippine export imposed
February 1974 sharply curexports. By mid-1974,
further decisions relating to quotas and taxes
Lanka banned copra and coconut
exported. This year, ex-
ports of oil probably will total about
exports most of
copra crop, with about two-thirds of going as copra and one-third as
Exports in forecast at
1974 and 1975 are both 75,000 tons (oil basis).
exports in an effort to assure ade-
quate domestic supplies. Indonesia continued
copra and coconut
ducer of coconut
Continued from page 8
producers must have a
In the past, Alberta sheep producers have been reluctant to expand because of uncertain markets and low prices. But Government incentive programs
and the new plant
The Alberta Government in March a new incentive program de-
Shipments of copra in June 1974 were only 18,600 tons, compared with 81.400
production. Also, a
exports in June were 34.500
below the 39,600 tons June 1973. Exports for all of 1974 are forecast at 850,000 tons (oil equiva-
start until April
6 percent from the 902,000
tons in 1973.
The 1975 Philippines
forecast of exports is
basis). This total
from the tons
or select addi-
expand their budget of $50,000 has been set
for grants of assistance to producers
of $15 per
Scotia has land available that
has excellent potential for sheep pro-
GOVERNMENT PRINTING OFFICE
1974 582 - 176/13
killing plant at
has a capacity of 8,000-10,000 lambs per year, which guarantees an inspected quality
product for the local market.
the breeding flock by 5,000 ewes and
Scotia self-sufficient in
the production of fresh lamb.
expansion of sheep flocks,
output of wool can be expected to
Scotia in 1973 accounted for 3.4
percent of total Canadian wool production.
The new Federal lamb ing system
tional breeding females to
offers financial assistance to
would be 71 percent
program promulgated in Alberta in August offers sheep producers an incentive of $10 per ewe lamb to retain top quality 1974 ewe lambs for breeding purposes. The program is retroactive to Ju'y 1, but Davments will not
tons, 13 percent
and thus increase wool well as meat output.
percent from the same period of 1973.
tons (oil equivalent),
pected to encourage producers to ex-
and thus the main exporter. Copra and coconut oil exports during January-June 1974 totaled
limit exports into early 1975.
These restrictions have considerably reduced the availability of copra and coconut oil entering world trade in the 277,000 first half of 1974, and may continue to
Exports from Sri Lanka reached a low of 20,000 tons (oil basis) in 1973. In recent years, most of the exportable
to the uncertainty over future
on the world market
part of the crop has been exported as oil.
Canada on April tive
and thus permits heavier,
lambs without risk of penalty. Producers who had been pressing for the change
welcomed the Federal Govnew grading system.