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Historic, Do not Archive Document assume content scientific knowledge, reflects current policies, or practices. FOREIGN AGRICULTURE October ...

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

FOREIGN AGRICULTURE October

7,

1968

H Dm0rtmULTHK

Nmtioami l

agricultural library

OCT

2 1 1968

CURRENT SERIAL

records

U.S. Rice Exports

Swedes Like American Beef

Foreign Agricultural ^pFvirp U.S. DEPARTMENT

OF AGRICULTURE

A Look

FOREIGN AGRICULTURE VOL. VI

NO. 41



OCTOBER



Into the

Pa

1968

7,

In this issue:

2

A

Look

Raymond

Into the Past and Future of U.S. Rice By Raymond A. Ioanes

Exports

4

Austria Adjusts Soft Wheat,

5

President Acts

6

Italy

To

Rye

of Foreign Agricultural Service , sees another good year ahead for U.S.

Prices

Limit U.S. Cheese Imports

Moves Ahead With

Its

rice exports but

Green Plan

By Robert

A. Ioanes , Administrator

C. Tetro

7

Equatorial Guinea,

Key African Cocoa Grower By Edmond Missiaen

8

IFC Commitments

Exceed $50 Million in Fiscal

9

Larger Supplies Seen for 1968-69 Wheat Trade

some

increase in

carryover stocks following a

record U.S. rice crop in 1968.

1968

10

Animal Nutrition in Four Languages Fall Store Promotions for North Europe

11

Why

Ship

Perishables

by

Air

Air?

Rice has contributed greatly to the fine export record that

Industry

Answers

has been compiled for the United States in recent years.

12

Paris Sees

12

North

Week

Irish

how

of U.S. Leather Fashions

Find

Supermarkets

Foods

U.S.

compare

Sweden Says “Ja”

to

it

In 1956,

Supersellers

13

starkly rice’s performance today stands



hundredweight equal to 70 percent of rice production We were selling milled rice abroad at about $3 a bag below the domestic market price and still not doing too much export business. As a matter of fact, our exports of milled rice in fiscal 1956 totaled only 11.6 million hundredlion

American Beef

Crops and Markets Shorts

This week’s cover: This man’s job is to tie up bags of threshed rice on a Louisiana farm. How his and other U.S. rice is faring

in

world trade

is

discussed

in

the

article

beginning this page.

Orville L. Freeman, Secretary of Agriculture Dorothy H. Jacobson, Assistant Secretary for

Inter-

national Affairs

Raymond A.

Administrator,

Ioanes,

Foreign Agri-

cultural Service

And then a few years later, we lost the Cuban market, which in the 1955-60 period had been a yearly customer for $33 million of U.S. rice. For several years following the loss of that market we were at a pretty low ebb. But a lot of people put their shoulders to the wheel. And look where we are now. We are producing over twice as much rice as we grew in 1956. Yet our stocks are no more than we need in the way of prudent reserves. Domestic consumption, both per capita and total, has had a healthy growth. And our exports have risen.

We

Alice

Fray

Editors:

Mary A.

Beverly

J.

Nicolini,

are today the biggest rice exporter in the world.

doxically,

Nelson;

Elma

Janet F. Beal and

E.

Associate

Editors:

Van Horn;

Assistant

Horsley, Faith N. Payne, Marcia Sutherland, Mary C.

LaBarre.

1

we have

printing Foreign Agriculture has been approved by the Director of the Bureau of the Budget (June 15, 1964). Yearly subscription rate, $7.00 domestic, $9.25 foreign; single copies 20 cents. Order from Superintendent of Documents, Government Printing Office, Washington, D.C. 20402.

magazine may be reprinted freely. Use of commercial and trade names does not imply approval or constitute endorsement by USD A or Foreign Agricultural Service.

Page 2

1

Para-

position with less than



quite a change

from the 1956

Outlook for

rice:

situation.

a record

M. West.

Use of funds for

Contents of

No.

We’ve been setting one rice export record after another. Exports of milled rice in fiscal 1968 hit an alltime high with a value of almost $340 million. And this was without paying

W. A. Minor, Chairman; Horace J. Davis, Anthony R. DeFelice, James A. Hutchins, Jr., Kenneth K. Krogh, Robert O. Link, Kenneth W. Olson, Donald M. Rubel, Dorothy R. Rush, Raymond E. Vickery, Quentin

attained the

percent of the world’s rice acreage.

a subsidy

Advisory Board:



weight.

Editorial Staff:

Editor:

And

when we

with the situation facing us 12 years ago! we had a rough rice carryover of almost 35 mil-

that year.

14

out

large production, but continued

strong

The period

demand from abroad.

that lies immediately ahead also promises to

this

be interesting. The Crop Reporting Board has estimated 1968 rough rice production at almost 110 million hundredweight. A crop of Foreign Agriculture

Future of U.S. Rice Exports

id

that size

is

far

and away the

largest in U.S. history.

the combination of record or near-record yields

largest

acreage in 14 years.

normally would send shudBut increased production was

this year’s

ders through the rice industry.

The Department

needed.

of Agriculture last fall urged that be expanded to bring increased production and

income to growers. In calling for expanded acreage, Secretary Freeman said: “World supplies of rice currently are short and world price levels are high enough to move U.S. rice into dollar markets without export payments. Export activity and exports from abroad indicate an unprecedented export movement. Production of rice is below consumption and normal export levels in several countries which are world export market competitors. Domestic utilization is continuing along a steady modest upward trend.” South Vietnam’s needs had high priority in Secretary Freeman’s thinking. As it has turned out, Vietnam won’t require as much rice as was anticipated earlier, but other areas will be taking up some of the slack. South Korea, for instance, has a very large requirement. This requirement



is

—and

in addition to

year, as part of our assistance program, Indonesia will take

250,000 tons of U.S. rice, as compared with 150,000 last year. Peru has had drought. We have been engaged in discussions with officials of that country,

some of our rice. So although we’ve

who may

decide to import

will find

got a big crop in prospect, the great bulk

coming market season a home. With imagination and energy we can pre-

vent an unduly large carryover of rice at the beginning of

And

the 1969-70 season.

— —too

speaking of carryovers

clear that our last year’s carryover

was too small

and an industry that expects on a permanent basis.

at least, for a nation

the export business

it is

quite small,

to stay in

Aside from transitory factors, we have a lot of good, sound fundamentals going for us in the export area. Rice is a versatile

and

flexible product;

We

everywhere.

it’s

a food that

is

in

demand

are a reliable, reputable rice supplier, with

markets in more than 100 countries around the world.

we have

a reputation for high-quality rice

good stead is

we

are selling

more and more

a sign of progress in the export area.

Law

57 percent.

rice for dollars

In the

first

5

In 1967, the proportion had risen

In 1968 about 60 percent of our rice exports

represented sales for dollars.

7,

And

will stand us

480, our sales for dollars accounted for

53 percent of shipments.

October

which

in the years to come.

fact that

years of Public

to

under

it

abroad, and helped to lay the foundation for permanent agricultural trade.

made

Credit

available

under the Commodity Credit Cor-

poration program has enabled us to expand rice exports in

where countries need a

cases It

time to pay in dollars.

little

has been a relatively small program to date

of rice since 1956

amount

to about



credit sales

$13 million

—but

is

it

very important in special circumstances.

The United its

must vary

States

marketing practices to meet

the needs of different nations.

1968

The U.S. Government and

the rice industry have a co-

operative role to play in market development.

sumer preferences dictate the type of

promotion that can be

However, con-

world practically

in various areas of the

effectively

employed.

In the sophisticated markets of Western Europe, the re-

quirements rice.

of U.S. rice available for export in this

also

needy countries, most of

In addition to the

Indonesia also looms large in the current rice picture. This

The

rice to

The money involved amounts to well over $1 billion. It has been money well spent. It has helped the rice industry over some rough spots, combated hunger and unrest P.L. 480.

the 240,000 tons of rice

this year.

in

aid record.

substantially larger

we sold South Korea earlier demand that comes from steady economic growth, South Korea had drought last year and again this year, which has made substantial imports necessary. than

had an impressive food

time, we’ve

Since 1955, the United States has shipped over 165 million

hundredweight of

Production as big as

rice acreage

At the same

It reflects

on the

comes are

call for

consumer promotion of

dry, fluffy cooking

This kind of rice meets consumer preferences and overto

some

primarily

extent the

Common

designed

to

Market

protect

Italian

regulations,

which

short-grain

pro-

duction.

Market development for California’s medium- and shortgrain rice, on the other hand, calls for a different approach. The markets to which this large rice producer sells already have a large per capita consumption, and they require shipments of bulk-cargo rice, which loses its identity at the consumer level. Also, these markets are more dependent on local production and shifting import requirements, which make long-range market development difficult. In such a situation,

and

seller

it

is

extremely important that buyer

maintain close and continuous contact.

important that markets be properly serviced

It



that

also is,

is

we

must see to it that the buyer knows what he is getting for his money and that he is getting good advice on the utilization of his product.

In summary, we’ve got some problems to overcome in the

months ahead. But our success

in

contending with problems

over the past decade gives us justifiable confidence as

we

face

the future.

Page 3

Austria Adjusts Soft Wheat, Rye Prices The second of two recent steps by the Austrian Government to curb domestic wheat production and to provide an incentive for farmers to grow more rye and feedgrains became effective on July 1, 1968. On that date the guaranteed producer price for soft wheat received by farmers was reduced

low, amounting to only 406,000 tons. This was 45 percent below the annual average of the 5 previous crop years. The U.S. share of this market amounted to only 2 percent, compared with the 24 percent averaged in the previous 5 years. A major reason for this development was the large

by about 3 percent as of the beginning of the 1968-69 crop and the total producer price for rye was raised by about 2.5 percent. The earlier step was an increase in the gate

availabilities

year,

prices for a

number of important

feedgrains late in 1967.

Effects of the latest measure, however, are not expected to be visible during the current season. At the time the government decided to make the price adjustments for soft wheat and rye, the majority of Austrian farmers had already completed planting operations of fall-sown wheat, which makes up about 88 percent of total wheat plantings in Austria. In the last few years the Austrian Government has taken

a

number of

steps to better gear domestic grain production

to domestic needs by encouraging larger feedgrain plantings

of

feedgrains

European countries



in

in 1967-68.

part

low-priced



in

other

Quite a number of Austrian

importers tend to procure grain from nearby countries whenever prices

are

competitive because

getting the needed grain

on short

of the

advantages in

notice.

Another factor that influenced the U.S. share was that Austrian authorities, as in the past, sometimes have ordered the local grain trade, by means of tender stipulations, to buy from Canada or Eastern European countries. In the procurement policy for grains, trade policy considerations in selecting

countries of supply play an important part. This factor has been contributing toward a heavy concentration of purchasing in East-Bloc countries, where Austria has developed sig-

at the expense of wheat. Several times, fixed gate prices for imported feedgrains have been raised to make feedgrain production more attractive to the Austrian farmer. Upward adjustments in fixed import prices of foreign feedgrains almost

nificant sales outlets for industrial goods.

automatically result in a corresponding increase in the “free”

early

market prices of domestic feedgrains. So far, however, the response of Austrian grain farmers has failed to come up to expectations. The reason for this

grain 10 percent less than the alltime record crop of 1967. Yields per hectare were expected to be between 6.2 percent

is

that the greater portion of

homegrown

feedgrains

is

fed

on the grower’s farm and therefore does not rate as a moneyearning cash crop the way wheat (and rye) does. Total wheat production has further expanded, and the surplus availabilities of wheat have become more burdensome. At the same time, domestic production of rye has decreased to the point where it no longer covers domestic requirements.

Surplus-wheat disposal In the July 1967 through June 1968 year, authorities employed two different methods of disposing of a substantial part of Austria’s wheat surplus.

Roughly 5,800 metric tons European countries at prices far below domestic price levels; and to the greatest extent possible the remaining surplus wheat was disposed of as livestock feed. According to Austrian Central Statistical Bureau data, Switzerland and West Germany were major countries of destination for Austrian wheat in 1967-68, receiving 4,856 tons and 980 tons. Although official information on export subsidization is not available, it is fairly safe to assume that export payments ran to at least $30 per ton. were exported

to

1968

grain crops

First forecast of the

August was for a



1968 Austrian grain crop made in total of 2,628,000 metric tons of

and 14.4 percent below the record

levels of

1967 but about

5 percent larger than the average for the past 5 years.

Production of breadgrains for 1968 was forecast at 1,237,400 tons compared with 1,437,000 tons in 1967. Production of coarse grains in 1968 was forecast at 1,390,000 tons, compared with 1,498,000 tons in 1967. Output of high-protein wheat in 1968 was forecast at 150.000 tons and of durum wheat at between 8,000 and 10.000 tons compared with 171,000 tons and 8,300 tons, respectively, in 1967. Production of these wheats is bound to acreage allotments aimed at gearing production to the market potential and available storage space. Of the grain that had been harvested by early August, the larger part was reported to be of excellent quality with a



surplus grain, imports of foreign feedgrains were kept at a

A large tonnage of the barley brewing quality. Grains sown in the fall of 1967 had a good start and came through the mild winter with practically no damage. The seeding of spring grains in Austria’s major grain-growing areas along the eastern frontier was favored by relatively dry soils and spring-like weather conditions, which were predominant in the latter part of February and in March. Grains sown early this year developed satisfactorily; late sown spring grains germinated only slowly in the absence of sufficient precipitation and due to the low moisture content of soils (by the end of March such little subsoil moisture as had been carried over from the winter was all but dissipated by dry

minimum. As

a result, a large portion of the 245,000 tons of marketed bread wheat released for feeding purposes by the Grain Marketing Board in 1967-68 was used as livestock

winds).

feed.

tation at the

In the absence of the possibility of exporting part of the

wheat surplus at reasonable costs to the government, emphasis was placed on the disposal of excess wheat through feeding operations. For the purpose of increasing market outlets for

1967-68 grain imports In

1967-68, Austria’s total imports of grains

breadgrains,

Page 4

durum wheat,

coarse grains

—were

—including

at

an alltime

protein content above average.

was

unofficially rated as of

Later in the season, the development of crops was unfavorably influenced by the prevailing drought conditions.

Precipi-

end of April and late in May brought some relief and removed the immediate danger of heavy crop losses caused by the dryness. Based on dispatch from Henry A. Baehr U.S. Agricultural Attache, Vienna



Foreign Agriculture

President Acts To Limit U.S. Cheese Imports President Johnson,

acting

upon

recommendation of

the

Secretary of Agriculture Orville L. Freeman, took emergency action under Section 22 of the Agricultural Adjustment Act, as

amended,

in

response to the recent sharp

increase

now

imports of various types of low-priced cheese

in

being

unloaded on the U.S. market to relieve dairy surpluses in the exporting countries. This action limits imports of processed Edam and Gouda cheese, Emmenthaler cheese, Gruyereprocess cheese, and the category of “other” cheese provided for in items 117.75 and 117.85 of the Tariff Schedules of the United

The

States.

quotas, which are effective immediately, were placed

on imports for the remainder of 1968.

made

for their continuance into 1969,

if

Provision has been necessary.

They

will

pending completion of an investigation by the U.S. Tariff Commission and recommendations to the remain

in effect

President.

The ports,

was taken

action

to halt a continuing upsurge in im-

apparently reflecting expectations by importers

foreign suppliers that import controls

would be put

and

into effect.

Imports of the four categories of cheeses during July were 16.7 million pounds, compared with about 4 million in July 1967.

August are not yet available, but indications are that the total will be even higher. “Continuance of present import trends could mean that 65-70 million pounds of these cheeses would come in during the next few months,” Secretary Freeman said. “This would represent around 450-500 million pounds milk equivalent and would seriously interfere with the Department’s dairy price support program.” The Secretary pointed out that the Department has been closely watching developments since June 10 when the President ordered the Tariff Commission to investigate the need for permanent import quotas. “We were reluctant,” he said, “to interfere with the normal procedures provided by the law unless and until there was firm evidence that an emergency situation existed. We had hoped that the market would maintain order and stability while the Tariff Commission was con-

CCC

under the price support program. of cheeses valued at 47 cents per pound and over is intended to permit continued freedom of trade for high-quality Swiss-type cheeses and the many high-priced miscellaneous specialty cheeses such as are normally found in gourmet food counters and stores. Cheese made from goat’s milk and sheep’s milk also remains unrestricted. Imports for the remainder of 1968, while subject to specified quotas for country of origin, will not require an import license. The Department pointed out that the necessity for immediate action made it impossible to carry out the procedures under which importers’ shares are established. The President’s proclamation provides for licensing of importers beginning January 1, 1969. Announcement of licensing procedures will be published in the Federal Register as soon as practicable, the Department said. The Department stressed that the emergency proclamation does not prejudge the report of the Tariff Commission and that the President will decide on the need for continuing the of the

The exemption

controls

on the imports of these

articles, as well as the

other

products covered by the investigation after he has received the reports of the Tariff Commission.

Statistics for

ducting

its

investigation.”

The Secretary

said that

it

has

now become

quite evident

that the trade interests, both in the United States

are seeking to unload

and abroad, on the U.S. market excessive quantities

of dairy surpluses of foreign countries before final action is taken by the President on the Tariff Commission’s report. The Secretary pointed out that although shipments in transit at the time of the proclamation would be permitted entry, they will count against the quotas to the extent that quotas are available.

The quota amounts by category

Cheese category

Quota for

Annual

remainder (pf 1968

thereafter

1,000

Processed

Edam and Gouda

..

are as follows:

lb.

945

Emmenthaler

1,281

Gruyere-process “Other”

5,249

987

quota 1,000

lb.

3,151 4,271 3,289 17,501

For the Swiss and “other” categories, the quotas apply to cheeses with an f.o.b. valuation of under 47 cents per pound. This figure is the same as the Cheddar cheese purchase price October

7,

1968

Dairy Imports From 1961

Perspective

in

to 1965, total annual imports of dairy products

from slightly under 800 million over 900 million pounds, milk equivalent about

into the United States ranged to a

little



0.7 percent of U.S. production.

In 1966, with pressures from a world dairy surplus increasing, U.S.

imports expanded to nearly 2.8 billion pounds, milk

equivalent



virtually all of the increase in the

form of newly

introduced products which were not covered by the U.S. dairy import quota system under Section 22 of the Agricultural

Adjustment Act.

Government purchases of U.S. dairy products, which had had to be resumed in the last months of 1966 as a means of supporting domestic prices. Pressure on the U.S. market continued in 1967, with the world surplus growing and producing countries paying large subsidies to exporters. During the first half of the year U.S. imports reached an annual rate of about 4.3 billion pounds. The rate of increase was sharply cut when the President virtually ceased in late 1965,

mid- 1967 applied import quotas for the first time to several products, chiefly butterfat/ sugar mixture and Colby cheese. Total 1967 imports were thus held to 2.9 billion pounds, milk equivalent, dropping to an annual rate of about 1.1 billion pounds by the end of that year. in

new

Surplus foreign dairy products continued to seek the U.S. in 1968, however, and imports were soon up to an annual rate of more than 2.5 billion pounds, milk equivalent.

market

This time, the major increases were in canned milk and in low-priced cheeses, much of which was used in processing. These products were then outside the quota system.

On June 10, the President applied Section 22 quotas to canned milk, and last week’s action extends them to certain other cheeses. With quotas in effect at the present level, it is estimated that U.S. imports of

all

dairy products will be

to less than 2 billion pounds, milk equivalent, in

down

1968 and

to about 1.4 billion in 1969.

Page 5

Moves Ahead With

Italy By

ROBERT

C.

Green Plan

Its

TETRO

U.S. Agricultural Attache,

production of more grapes and more wine.

Rome

Green Plan Italy’s agriculture

midway through

Green Plan

the second

(1965-70) shows progress accompanied by frustration, heated all levels, and the goal of EEC competition continuing to press for more and better agriculdebate over farm policy on tural production.

In the broadest sense, Italian farmers have been pleased

with the Green Plan and

its

workings since

was

it

initiated

Green Plan II continues the same program, providing $40 million for projects geared to the modernization of Italy’s agriculture that is imperative, if Italy is to compete with its

in 1960.

partners in the

A

Common

Market.

ment

is

being criticized, but there

that perhaps less waste

is

is

general agree-

involved in present programs

than was the case under Green Plan

I.

For example, discrimi-

nation between different categories of farmers and classification



by Provinces both of which inhibited the flow of funds have been eliminated.

in the past



$40 million involved is the breakdown of the Green Plan projects approved so far and funded by the Community’s European Agricultural Guidance and Guarantee Fund (FEOGA). Two points should be kept in mind: These projects are among the first and may not be indicative of the course future investments will take; and, the large

involved should be compared with for restitutions

20 times

that

FEOGA’s

support for butter alone. purpose:

To

help Italian farmers

Establishment of an



However,

it

would seem

that future

market prospects were II funds. With

not given top priority in allocating Green Plan

total sum going to the expansion of grape and wine production, the 7.5 percent devoted to livestock and the 15 percent each to dairy and fruits and vegetables seem

perhaps half of the

inadequate.

Livestock and dairy, fruits and vegetables

But the livestock allotment, while small, specific bases for these often

heard queries,

farm problems in general are ultimately sponsored by the growing pains of farm and nation modernization, exacerbated by the necessary adjustments to the fact remains that Italy’s

the

Common

simple.

A

Market.

Solutions

are

neither

obvious

nor

conference review of agriculture by the National

Economic Committee (CNEL)

emphasized demands for restructuring agriculture and creating better farmer organizations.

in July

Individual farmers are either accepting the prob-

lems of the times or joining those thousands leaving small, undercapitalized farms for off-farm jobs (the growth of which continues

and

to

Rome

be surprisingly favorable).

Plans,

programs,

politics are instinctively disliked or distrusted

by

move ahead so slowly that paydo not seem related to any period

Plan’s basic

the kind of

and vegetables. An effort to systematize this procedure of sizing up market demands is being made by the Institute per le Ricerche e le Informazioni di Mercato (IRVAM), a market reporting and research institute recently established by the

Problems

Whatever the

Green

move toward

production best suited to future market needs needs summarily described as more livestock products and more fruits

Ministry of Agriculture.

of modernization

sum

expenditures

on French wheat, or perhaps with the nearly amount spent during the past year on price

But severe questioning of basic policy continues. Must the for Parmesan cheese be the price-guiding factor for the dairy farmer? Can red-meat demands of consumers be met principally from dairy beef? What is the future of a citrus industry based on a table-fruit market? Are table grapes and wine competing enterprises for high-cost irrigated land? Does a highly successful producer of peas and snapbeans for a fresh vegetable market have the same advantages in a processing market?

demand

more

provides for larger expenditures, but

Projects approved presumably follow the

shortage in the financial backing provided by the current

second phase

II

interesting than the

is

well apportioned.

insemination center, two

live-

stock marketing centers, and a hog slaughterhouse for a

dem-

artificial

onstration area in the South are included.

While

falling short

of need, these projects are important to a country where beef

production to date has been a byproduct of the dairy industry. Perhaps the fact that Brussels decisions on cattle, meat, and

milk seem not to be understood (beyond the fact that they appear inadequate) explains the uncertain Italian approach to the

The

dilemma. Plan’s dairy section has received

much

criticism.

Eight

of the 10 dairy projects will establish apparently small dairies

or cheese factories (costs range from $190,000 to $640,000),

whose

fate

can be guessed by anyone

who

has lived through

the age of the “disappearing creameries” in the United States. for the establishment of

farmers, in part because they

Also, nearly half of the dairy total

ments or loans

“milking premises” on 3,000 farms. Approximately $1,000 per farm is provided with the apparent intent of financing

to farmers

or purpose.

Concern is not confined to the Italians, and Italy’s 1968 farm problems have been receiving instant reaction abroad. Scarcely before the July tions

had

left

1

changes

in

EEC

customs regula-

the presses, French farmers began

demanding French

protection from Italian fruit and vegetable imports.

and German winemakers, already grumbling about unfair Italian competition, are less than jubilant over current Italian

investments in this industry.

Adding the cost of those land improvement projects that could be in wine regions to the generous amount being spent on grape-and-wine projects gives possibly 50 percent of total Green Plan outlay to the Page 6

is

equipment for modest milking parlors on farms already too modest in size to compete. Six fruit and vegetable projects totaling $6.5 million have been approved. Four will build or extend storage space for fresh fruits and vegetables; two fund fruit and vegetable processing centers. Interest focuses on the centers because they are being built in Lavorazioni, an area of the Po River Valley where processing percentages lag far behind those of other major exporters of deciduous fruit. No projects are reported for the citrus area, where 30,000 tons of quality fruit

were purchased

last

winter in a price supporting gesture. Foreign Agriculture

Nationhood set for

Equatorial Guinea, Key African By

EDMOND

MISSIAEN

Foreign Regional Analysis Division



,

Cocoa Grower

ment some of the more advanced agricultural techniques on the plantations, have formed producer cooperatives which have had some degree of success. However,

ERS

practiced

one of Africa’s smallest countries, but cocoa exporter steps from its position as a Spanish colony to nationhood this Sunday, October 12. However, this political severance from Spain is not expected to affect the strong economic ties now existing between the two

African producers have been hindered by the high cost of imported labor and by difficulties in obtaining credit.

countries.

with Bordeaux mixture (mostly copper-sulfate and lime) from

Equatorial Guinea

its



fifth largest

Independence, for example,

is

not expected to alter the

On

the large plantations

tion

on the

mid-May is

on sales to Spain of the country’s main cash crop cocoa. Growers in Equatorial Guinea shorten the normal bean fermenting time to produce a high-quality, bitter chocolate prod-

extremely

to

island.

and ends to

Over the past

estates.

of cocoa have been shipped annually in



mostly to Spain



and

1966 cocoa earned Equatorial Guinea over US$18 million.

The country The

Fernando Po

in the

Gulf of Guinea and the Cameroon and

enclave of Rio Muni, sandwiched between

Gabon

in West-Central Africa

comprise

130 miles to the southeast,

Fernando Po, the wealthier Province, is more developed its sister Province on the mainland. The island is of volcanic origin, has very fertile soils, and is characterized by steep shores and a narrow coastal plain which soon give way to the mountain slopes that climax in Mount Santa Isabel, 9,350 feet above sea level. Rainfall, a critical factor in cocoa production, is heavy ranging from 80 inches annually in the northeast to 200 in the sparsely inhabited southeast. Most of Rio Muni is a tropical rainforest, although some mountain-type vegetation and savanna areas can be found in the interior uplands. Rainfall is not as heavy as in Fernando



Po; in Bata, the Provincial capital, average annual rainfall

is

about 82 inches. Equatorial Guinea has about 260,000 inhabitants, of

whom

Fernando Po. The majority of the latter group are Nigerians, who contract for 3 years’ work with a year and a half renewal option. The immigrants are attracted by the wages and benefits offered, which are good compared to those available in Nigeria. There are also about 15,000 of the Bubi Tribe the island’s original inhabitants and about 4,500 Spaniards. Rio Muni is more sparsely inhabited, mostly by members of the Fang Tribe, with a sprinkling of Spaniards and immigrant workers from Nigeria and Cameroon. live in



Cocoa



in

Fernando Po

Over 90 percent of Equatorial Guinea’s cocoa crop is produced in Fernando Po, where it accounts for well over 80 percent of the island’s total exports. Most of the cocoa comes from 600 Spanish-owned plantations which cover over 100,000 acres along the north, west, and east coasts. There are also 3,100 African-owned farms, which cover 40,000 acres. Many of the small-scale African cocoa farmers, attempting to imple-

October

7,

1968

The system

of spraying

in

December. Yields vary

greatly, ranging

from

1,800 pounds of dry cocoa per acre on the larger

The pods are harvested at 3-week intervals, then the beans are fermented for 3 days (compared to 5-7 days in other cocoa-producing countries) and dried for 48 hours. Drying takes place on large slate-covered floors heated by fires. After the beans have been cooled, they are sorted by machine to remove doubles, flats, broken beans, and dirt. This procedure results in a very high-grade product, although the reduced fermenting time makes a bitter cocoa popular



only in Spain.

this tiny country.

than

65,000

by periodic spraying

wood

itself

island of

effected

harvest season begins in August, peaks in Octo-

500

several years an average of 33,000 metric tons

is

because of the rocks and rough terrain.

difficult

The main ber,

particularly pleasing to Spanish tastes.

goes to controlling

acre of trees, but mechanization of the process would be

In return,

is

Control

September or October.

they have received the certainty of a market for their crop.

uct that

effort

very labor-intensive, requiring one man-day to spray an

country’s agriculture, which has long been heavily dependent



much

black pod disease, the most serious menace to cocoa produc-

Coffee, timber,

and cocoa

in

Rio Muni

In Rio Muni’s agriculture, coffee and timber production are

more or

less

equally important, with

cocoa

third-

in

ranking position.

Timber products production in Rio Muni is dominated by about 20 Spanish concessionaires. In 1966 they controlled 565,000 acres of forest land and produced 329,000 metric tons of lumber products exports, valued at US$4.8 million.

Most of the timber operations are located in the coastal plains near the Campo, Benito, and Muni Rivers, so the logs can be easily floated to port. One concessionaire controls the only railroad in Equatorial Guinea, a 14-mile line used exclusively

lumber hauling. Rio Muni’s coffee production, which amounted

for

5,000

to

metric tons or four-fifths of Equatorial Guinea’s total production in 1966,

is

distributed throughout the Province.

Euro-

pean-owned plantations, concentrated mainly in the area east of Bata, produce about one-third of the crop; the rest comes from African-operated small-holdings. Robusta is now the main variety, having replaced liberica a minor variety popular only in Spain and northern Norway. In recent years Rio Muni has produced less than 10 percent Production, which of Equatorial Guinea’s cocoa exports. amounted to about 3,000 metric tons in 1966, is almost entirely in the hands of small-scale African farmers in the northern and eastern sections of the Province, which are



geographical extensions of cocoa-producing areas in

Gabon

and Cameroon. Growing techniques have not been developed here as in Fernando Po, and this is reflected in the quality of the product. Generally no fertilizers are used, and no spraying or other action is taken against diseases and plagues. Page 7

hoped that the cooperatives, which currently handle

It is

the marketing process for over half of the cocoa produced, will

expand

Economic

work

their

ties to

to include quality control.

Spain

Equatorial Guinea’s production of cocoa and, to a lesser extent, of coffee, is

tuations

However,

presently quite profitable.

is

largely because of the

immunity

this

to international price fluc-

which these products now enjoy, because Spain buys

almost the total output of cocoa and coffee at prices well above the world level. However, cocoa production has now reached a level where producers must think beyond the Spanish market. In 1966, 15 percent of cocoa exports went to countries other than However, mainly because of the cocoa industry’s Spain. dependence on Spanish price supports and Spanish consumer tastes, Equatorial Guinea’s economic dependence on Spain can be expected to continue for some time to come.

IFC Commitments Exceed $50 Million The

(IFC) committed development

International Finance Corporation

$50.7

million

projects in

to

11

and

industrial

different

agricultural

countries during fiscal

This

1968.

Bank

Central American

Also for the

—was

for

Central America.

guarantee, in private businesses in less-developed countries.

these and other investors

Of

the fiscal 1968 investment, $11.1 million went for

One of

agriculture-related projects.

was

these

two

a textile mill

Nicaragua; the other a sugar plantation and sugarmill

in

complex

in Ethiopia.

action in

Also,

IFC made

12-year history

its



the biggest single trans-

a $20-million investment in a

Nicaragua and Mauritania were new additions last year to the list of countries receiving help from IFC. Another newcomer was South Korea, where a $702,043 loan was made to the Korea Development Finance Corporation. These additions spread IFC investments to 39 countries.

Membership

in the organization rose to

86 countries

last

project in

$9. 2-million textile mill to be built with the help of

is designed to produce finer fabrics which can compete with those now imported into the Central American Common Market. This will make possible some foreign exchange savings for Nicaragua and permit that nation

to export certain types of textiles to

Common The

$60-million Mauritanian copper mine.



IFC

the industrial sponsor in an

brought to $271.8 million the total commitments made by IFC, a World Bank affiliate that invests, without government

The

Economic Integration (CABEI). American firm Fabricate of

time, a Latin

first

Colombia

1968

in Fiscal

some

countries of the

Market.

have 20,160 spindles and 370 looms, capable a year using Nicaraguan cotton in cotton and polyester blend fabrics. IFC’s part in the project includes a $1 -million loan and a mill will

of producing

10.2 million yards

matching amount

The

in equity.

other agricultural investment will help Ethiopia close

the gap between production and consumption of sugar.

It

year as Indonesia, Mauritania, and South Vietnam joined,

involves construction of a $22. 5-million sugar plantation and

and the total has since moved up to 89, with Singapore, Uruguay, and Yugoslavia becoming new members.

mill in central Ethiopia,

Africa leading recipient

100 miles east of Addis Ababa. It is expected to accelerate development of the lower Awash Valley and provide employment for over 4,000 workers.

Over half of the funds committed by IFC during

fiscal

1968 went to Africa.

Nevertheless, the year’s investments

Two

of the major ones were in Africa, two

circled the globe.

and three in Latin America. Six of the smaller commitments (under $500,000) were in Latin America, and one in Asia,

was

continued the geographic diversification

in Africa. This

of the previous year,

ments went

Aid tition

to Asia





despite tight

fiscal

IFC by

money and sharp compe-

1968 other investors associated

contributing a total of $8.7 million

new ventures and by making purchases of $2.8 million from IFC’s portfolio of previous commitments. In addition, other investors bought $7.1 million of securities covered by the Corporation’s underwriting commitments. This help from private industry restored a total of $18.6 million compared to

with $7.3 million in the previous for reuse in

new development

fiscal

projects.

year





to

IFC funds

Since IFC’s founding,

81 private investors have participated in

its

transactions

on

203 occasions.

IFC

in 1968 offered itself as the focal point of increasand diverse investment groups. One of these was the new textile mill project in Nicaragua, whose sponsorship came from public and private; industrial and financial; and national, international, and intergovernmental investors. In

Also,

ingly large

this

venture,

Page 8

IFC

for the

first

is

contributing a

The

sugarmill

ber 1969 with

is

scheduled to begin operations in

initial

Full production of 47,400 tons year,

Novem-

output at about 29,000 metric tons. is

to

be reached in the second to 65,000 tons a year.

and output could be expanded

commit-

received a boost from private investors.

In 42 cases during themselves with

half of IFC’s

and the Middle East.

to these areas

for capital

when more than

toward which IFC

over $9 million in loans and equity. The tract to be cultivated is located on both sides of the Awash River, some little

time joined forces with the

Report on Argentine Agriculture Argentina’s role as a growing competitor with the United States in foreign markets for wheat, feedgrain, vegetable

oil,

and fruit is reported in a new USDA publication. The report, by the Economic Research Service, traces Argentine farm production and trade since the mid-1930’s, emphasizing competition with U.S. products.

Farm

products account for over 90 percent of Argentina’s

foreign exchange earnings, which between 1955-59 and 1965

from $970 million to almost $1.5 billion. Wheat, chilled and frozen beef, and wool accounted for about a third of the totals. Biggest buyer of these and other agricultural products is Western Europe, which in 1965 took about two-thirds of Argentine exports. The Latin American Free Trade Assorose

ciation took another 15 percent.

Single copies of “Argentine Agriculture: Trends in Produc-

World Competition,” ERS-Foreign 216, are available from the Division of Information, Office of Management

tion and

Services,

USDA,

Washington, D.C. 20250. Foreign Agriculture





Larger Supplies Seen for 1968-69 is

The pressure of supply in the world’s wheat growing nations more intense this year than it has been for some time. With

now in prospect, supplies for export and carryover hands of major exporters are slightly more than twice the size of probable world trade for the year. Such a situation has not occurred since 1964-65 when the supply was twice as large as the year’s total volume of business. By comparison, the supply in 1965-66 was V/i times world trade the lowest since just after World War II. Even though the supply-demand ratio seen for 1968-69 was twice exceeded during the 1960’s the net export price of U.S. Hard in 1960-61 and in 1962-63 the crops in the





Red Winter wheat

in those years

averaged $1.69 and

still

$1.75, respectively. It

now

If the

appears that total wheat trade in 1968-69 will be

million to 3 million tons, total trade

the other hand, there

is

would be higher.

some evidence



that importers

hoping that world prices will fall are using their stocks to meet current requirements rather than entering the market at this time. India and Pakistan and possibly Brazil will take less wheat in 1968-69, but this will be mostly offset by larger imports by the United Kingdom, Italy, and several other countries in Eastern and Western Europe. Prospects for the United States

still

point to a relatively

good export year. In a few traditional markets such as Japan greater competition from Canada and Australia may cause a slight decline in the U.S. commercial volume. But generally the U.S. export total for 1968-69 should compare reasonably with that of recent years,

well

levels of the past

2 years.

Total imports by Free cast at

1

World

countries, therefore, are fore-

million to 1.5 million tons below those of 1967-68.

Combining

this

with a moderate increase in East European

imports, total world trade probably will remain close to the

At

estimated 53.5 million tons of 1967-68.

level

this stage, a sig-

gain in total world trade volume from last year’s

could occur only

if

show an

Soviet or Chinese imports

appreciable increase.

forthcoming Canadian sale to the Soviet Union exceeds

2 million tons by any substantial margin or if new sales to Mainland China should exceed the currently expected 2

On

Elsewhere in Free World commercial markets prospects Western Europe’s imports may be 1.5 million to 2.5 million tons larger than in 1967-68. On the other hand, it appears that the long uptrend in Japanese imports may have leveled off, and bumper crops in North Africa probably will reduce that area’s imports from the high are reasonably good.

nificant

very close to the 53.5 million tons traded in the past year.

Wheat Trade

if

allowance

is

made

for

reduced shipments to India and Pakistan.

Exporters’ supplies

The estimate of potential wheat supplies available for export and/or carryover in 1968-69 in the major exporters the United States, Canada, Australia, Argentina, and the EEC is around 107 million metric tons. This is nearly 20 percent higher than in the past two seasons and the highest level on



The estimate includes prospective record crops in both the United States and Australia, an average harvest in record.

Canada, some increase in Argentina, and a near-record crop EEC. In addition, Sweden and Spain are expected to remain fairly large exporters. Bulgarian and Romanian exports are expected to decline, since their crops were sharply reduced by drought. The current Soviet harvest, although reasonably good, probably will not be large enough to maintain last year’s export level and the desired level of stocks. in the

Combining the expected world trade level with current wheat carryover in the five major exporting countries by June 30, 1969, probably will be increased by some 16 million tons from the 47 million of 1968 and 40 million of 1967. If U.S. exports should succeed exporters’ crop prospects,

Expected imports Imports by Communist countries have generally accounted

major recent fluctuations in wheat trade and seem much from those of a year ago. The Soviet Union, which imported only around 1.5 million tons in 1967-68, appears to have had another good harvest. The Soviets will likely not need to increase imports in 1968-69 since they still have 4 million tons coming in this the final year of their 3 -year agreement with Canada. The actual level

(750

for the

in reaching 20.4 million metric tons

unlikely to change

carryover would increase by about 4 million tons and others

upcomImports by some

of purchases will probably be determined during the ing negotiations between the

East European countries vests.

ever,

two

may

rise

countries.

because of their small har-

The amount purchased from Western countries, howwill depend upon Soviet exports to Eastern Europe,

which have increased during the past several

years.

Last year Mainland China’s imports of wheat



4 million tons were the lowest in over 6 years. Mainland China has over 1.5 million tons lined up to be imported in 1968-69, mostly from contracts signed in 1967-68. Thus far there have been no new contracts for current-year delivery, so it is probable that imports again will not exceed 4.0 million tons.



at

In the Free World the big change is in India and Pakistan. During the past 4 years India and Pakistan have imported a total of 8.5 million tons of wheat annually. But the recent record wheat crops in both countries would indicate a reduction of possibly 2 million tons in imports for 1968-69.

October

7,

1968

by about 12

mil. bu.), the U.S.

million.

Australian Fertilizer Subsidy Australia has increased its subsidy on phosphatic fertilizers manufactured and sold in Australia. The new measure became effective August 14 and includes a budget allowance increase of $11.6 million to $33 million for payments through October 31, 1971. The subsidy is raised to $7 per ton on standard superphosphate and to $36 per ton phosphorus pentoxide

content for other types of phosphatic

fertilizers.

Fertilizers

containing added trace elements, such as copper, zinc, cobalt,

molybdenum, manganese, and boron, were added to the list of eligible compounds. In the past, superphosphate containing these additional materials received the subsidy only on the

actual

superphosphate content,

element deficient areas

The subsidy

is

felt

and farmers

in

trace-

penalized.

considered to have achieved

its

goal: encour-

aging greater use of fertilizer and reducing costs in the sheep

and wheat

industries.

Use of superphosphate increased from

2.8 million tons in 1962-63 to 4.3 million in 1967-68.

increase to 4.6 million tons in 1968-69

is

An

expected.

Page 9

Animal Nutrition The

booklets

at right are

Four Languages

in

whose covers are shown

helping build export markets

FAS

for U.S. feedgrains.

They began

their career as part of the

animal nutrition programs held by FAS Greece and Lebanon during April

in

In anticipation of these programs,

1967.

FAS

contracted with the State College of

Agriculture at Cornell University, Ithaca,

N. Y.,

Swine Nutrition, Poultry Nutrition for Meat and Eggs, Cattle Nutrition for Milk and Meat, and Supplemental Feeding of Ewes and Lambs. Each was then translated and printed in the country of use. The booklets were used also this June at fairs in Madrid and Lisbon; thus, most of them now exist

cooperators

in

business

the

marketing U.S. feedstuffs overseas

Two

just finished

go before December schedule for in-store

Feed Grains Council, Soybean Council of America, and National RendAssociation

erers



ate country programs.

The English lets all

all four bookmodest numbers to U.S. agricultural attaches, and in each

versions of

have been sent

in

country the agricultural extension servhas been provided with copies. A moderate number of copies in each language is available in the International Trade Fairs Division, FAS, for filling ice

individual requests.

in

Northern

and three more to the busy autumn promotions of U.S.

is

The

Europe.

list

food promotions in the country. October 10-19, West Germany. Koch & Mann GmbH (Koma Nord), with 1,200

stores

the

in

Wuppertal area program

participating in the U.S. in-store

28 -September 14, Northern Mace, SPAR, and other firms with a total of 17 supermarkets and 300 small shops in and around Belfast, co-

for the third year.

August

Ireland.

inciding with the Ideal

—a

Home

on p. Norway.

(See story

September 16-28, A.S., with 35 self-service Oslo area

GPW

Exhibition

first-time display of U.S.

in that country.



also

a

stores, first

foods

underscored by C.

the Frankfurt area.

METRO,

14-20, Sweden.

IRMA

with 63 self-service stores (including 30

mostly

supermarkets)

for U.S.

of Latin America as

W.

was

Pence, executive

of Great

president

Plains

Wheat,

on the eve of his departure for 3-week trip to that area last month.

Inc.,

Last year,

a

14-percent

a

in

Stockholm



yet

an-

other country premiere.

1 1

3 million bushels

—gave

among

U.S. wheat importers:

Brazil

is

fourth with 46.9 million bushels; Venezuela, seventh with

12th

with

area’s

9.6

22 million; and Peru, Reflecting

million.

significance

the

to

the

more than

350,000 wheat producers of Colorado, in

Kansas, Nebraska, North Dakota, Okla-

the

homa, and South Dakota, GPW has increased its Latin American activities. Among programs recently begun, there

increase

Latin America’s imports of U.S. wheat

United States a substantial boost toward exceeding

ern independent chain with 10 supermarkets and 120 self-service stores in

Cultivates Latin American Markets

The importance

to almost

November 11-25, West Germany. Schade and Fuellgrabe, a new and mod-

November

12.)

a commercial market for U.S. wheat

vice

booklets

the

report

well received and useful in the appropri-

follows.

in the

the

Store Promotions for North Europe

Fall

there

of



U.S.

to prepare English texts for four

12-page booklets

foods

Spanish and Portuguese as well as in

in

Greek and Arabic.

export

are baking schools in Venezuela, Trini-

target,

Pence said. “Even more significant,” he went on, “is that 74.28 percent of these imports were on the commercial

dad, and El Salvador; bread promotion

side of the ledger.”

campaigns in Guatemala and El Salvador; and publication of a bakers’ bulletin. representatives in Caracas and Rio de Janeiro are stepping up their personal calls on the grain trade; and the

its

750-million-bushel

Every region of Latin America showed an increase. Central America upped its purchases by 38.2 percent; the Caribbean, by 20.5 percent; and South America, by 11.8 percent. Pence also noted that several Latin American nations rank high Page 10

GPW

organization

is

continuing

its

sponsorship

of trade teams to the LTnited States, with

groups

from

Chile,

Peru,

and

Brazil

scheduled for this year. Foreign Agriculture

Why

Ship Perishables by Air? Air Industry Answers The V/STOL —already or — planning heavy investments and landing”) often permit conair freight

1.

Less spoilage than

2.

Speed

when surface

and timeliness being able

of delivery

business

transportation is used.

to arrive at a

Expansion of sales area

4.

Ability to

demand

taste, quality

a

its own future and in that of other “growth” industries, including the perish-

The

life.

“Why

by and the answers shown above were

air?”

ship perishables

made to FAS this summer by the Air Freight Marketing Group of the Air Transport Association

part of a presentation

FAS

of America.

market development

commodity specialists, and export program officials gathered to hear, experts,

see,

and discuss the kinds of service the

air industry is

now

offering for the trans-

portation of perishable farm products and

what it expects to offer in the next decade. Below and to the right are some other

made

points

at the meeting.

CALIFORNIA STRAWBERRIES TO EUROPE (000’s of Pounds) 1st Six

Months of 1967 vs Same Period 1968

1967

England

270

235

France

230

105

Germany

545

690

of

1968

%

+

times as

much

as the pistons.

188

4

340

552

-

54

19

1,917

1,823

Intermodal containers, moving easily

between truck, rail, ship, and air, will be part of the air freight service for perishables. Farm-based communities located away from major cities can benefit from the introduction of medium-range and even short-range aircraft having intermodal capability. In fact, the use of

pound

Tomorrow

will

see,

use of

the

too,

computers to schedule, handle, route, and record exports of farm products throughout their journey.

relays

Satellite

will

permit electronic transmission of the

air

waybill, so that details of the transaction will reach the overseas destination several

hours ahead of the shipment. tion costs

of

—which

product’s

a

Distribu-

represent 20 percent

final

price



come

will

computers help make better use of aircraft space and sales effort.

down

as

Indispensable partner of the airplane

and probably tomorrow too, is Mr. Zettler estimates that by 1970 the air industry should have a minimum of 11,400 trucks in pickup and dethe truck.

livery operation, handling over 9 million

shipments. that

the

It

is

now makes jet

the the

air/ truck

service

600-mph speed of

available for reaching not only

suburban and rural areas but

city streets.

97

28 184

+

5%

1,100

pounds

California to Tokyo

30.00/

rectly to the customer’s warehouse.

15

Los Angeles to Frankfurt

Fresh Fruits and Vegetables (except strawberries)

directly

21

Izmir Fairgoers Like Soybean Oil Cookery Soybeans and their products went

all

operation with FAS,

drew the

out to win the interest of visitors to the

phlets

American

soybean

Pavilion

at

Turkey’s

Izmir

Trade Fair last month. In the soybean exhibit, sponsored by the Soybean Council of America in coInternational

Minimum Weight

move

today,

TYPICAL AIR RATES FOR AGRICULTURAL PRODUCTS

25.30/pound

to

from packaging point to the airport and then from the airport at destination di-

+215

34

108

370

Sweden

Fresh Vegetables

perishables

tainerized

128

-

Switzerland

TOTAL



short take-

will

Change

Italy

Denmark

industry.

Zettler,

arrival times.

question

According to George chairman of the Air Freight Marketing Group, total investment in automated terminals and mechanized handling equipment should reach almost $6 billion by the mid-1970’s and $8.5 billion by 1980. These facilities will be urgently needed, since the first round of jumbo jet freighters will be at work by 1971. Today’s jet freighters are already delivering 176,000 ton-miles of service per day 11 times as much as the piston freighter that was yesterday’s workhorse; and tomorrow’s jumbos will deliver nearly 530,000, or 33 ables

price because of better appearance,

aircraft (“vertical

off

to the world.

premium

and longer shelf

More dependable

5.

big

in

mar-

ket at an opportune time.

3.

industry

is

oil

charts

and pam-

eye; loudspeakers told the

story every 5 minutes; and

favorite Turkish foods fried in soybean oil

attracted

happy samplers.

Some

50,-

60,000 Turks a day saw the Fair.

Minimum Weight 440 pounds

Florida to Paris

340/pound

Hatching Eggs

Dallas,

Texas

London

to

(via

Fresh Beef

New

Minimum Weight

10,000 pounds

York)

250/pound

Minimum Weight

2,200

330/pound

Minimum Weight

2,200 pounds

Minimum Weight

5,000

pounds

California to Milan, Italy

Strawberries

Denver

to

Honolulu

Meats

18.30

FRUITS

/pound

pounds

AND VEGETABLES FROM CALIFORNIA TO OVERSEAS DESTINATIONS (000’s of Pounds)

October

7,

1968

Page 11

Paris Sees

Week

of U.S. Leather Fashions

American leather made its fifth and most successful autumn visit to Paris last month, when the Tanners’ Council of America again took part in the Semaine du Cuir. Using an “outer space” theme, the Council presented another of its famed leather ballets, this time on a round stage simultating a space station. About 50 countries participated in the Paris show, with exhibits of hides, skins, and made-up leather goods beamed at both the public and the leather trade. Total attendance was estimated at 110,000 for the week.

Aim

of the Council has been to convince Europeans that leather

material for carriage trade and average consumer alike

oan provide quality and value

in

—and

is

a fashion

that the U.S. industry

volume.

Above, the corps du ballet caught in the middle of a lively space-age number. From left, U.S. leather in a wide array of colors and textures appeals to both sight and touch; model in a mini-space jumper descends from a mock satellite onto stage floor; another model has the

look of the future but

is

equally well

suited to the current decade.

North

Irish

Supermarkets Find U.S. Foods Supersellers

The first promotion ever held in Northern Ireland for American foods met with an enthusiastic welcome from shoppers in the participating stores 17 supermarkets



and around Belfast and some 300 small shops throughout the country. Going over most strongly were rice and honey in many variations, nuts, pineapple products, raisin bread, cake mixes, and numerous snack and salad items. Some 400 different American foods were up for display in the stores and at the Ideal Home Exhibition in Belfast during the August 28-September 14 period. Many sellouts were reported. Demonstrators and store managers were delighted with customer reaction.

in

Below, windowshoppers at Sawer’s, a top prestige store in

downtown

Belfast,

which

— and sold—higher priced brands.

carried

At

Above, members of Swedish trade put their heads together; operakallaren waiter serves restaurant’s owner and prominent food editor.

special trade luncheon:

right,

Sweden Says “Ja” Sweden, with

its

strong

demand

to American Beef

for

quality meat, a domestic output too small

meet that demand, and numbers of gourmets among its population, should rank as an ideal foreign market for top choice U.S. beef. And, in fact, it might become such a market, from the way the Swedes reacted to the to

well-to-do

first

shipment of chilled beef ever flown from the United States. Frozen

there

already well and favorably Sweden. But consumers and meat trade alike seemed fascinated with

U.S. beef

known

is

in

the chilled product.

Beef was promoted in Sweden during September in three ways: by the American Food Exhibit at Stockholm’s St. Erik’s Fair, where the chilled beef grilled on the spot was a star attraction; through a special trade luncheon at one of the city’s top gourmet restaurants, Operakallaren (with cherrystone clams and chilled strip loin steaks specially flown in); and on special American menus during the Fair period at that restaurant and two others Riche and Stallmastaregarden owned by top restauranteur Tore Wretman.



At

St.

Erik’s Fair: Left, ravenous

customer at

last gets his turn;

above,

serious discussion of U.S. beef cuts.

At gourmet

restaurants: Right, an

exterior view of Riche’s; below, an interior view. All three restaurants

starred U.S. beef

—prepared



to order

along with poultry, prune, and peach dishes during period of the Fair.

Page 13

Rotterdam offer prices for U.S. wheats increased between September 17 and September 24, 1968. The price for U.S. Hard Winter and U.S. Spring increased 3 cents and Soft Red Winter increased 1 cent. Canadian Manitoba decreased 1 cent. Argentine wheat remained unchanged. U.S. and South African corn were unchanged. Argentine corn was down 1 cent.

A

of the prices follows.

listing

Item

Wheat: Canadian No. 2 Manitoba

USSR

121

U.S. No. 2 Dark Northern Spring, 14 percent U.S. No. 2 Hard Winter, 14 percent

Argentine U.S. No. 2 Soft

Red Winter

A

year

Sept.

Sept.

24

17

ago

Dol. per bu. 2.04

Dol. per bu.

x

)

U)

..

Dol. per bu. 2.03

-

0)

..

1.94

1.91

2.01

..

1.95

1.92

1.99

(

2.11

edly as a result of the rising prices.

Philippine Exports of Coconut Products

..

1.82

1.82

U)

.. ..

1.79

1.78

1.78

..

1.19

1.19

1.39

..

1.37

1.38

1.73

..

1.39

1.39

U)

compared Movements to the

for January-August 1968 totaled 358,511 long tons

with 481,021 in the same period of 1967.

United States were 189,593 tons, an increase of 39,216 over

U.S. No. 3 Yellow Argentine Plate

South African White

Not quoted.

Note: All quoted

Grain Stocks

c.i.f.

Up

Rotterdam for 30- to 60-day

delivery.

last year.

Coconut

oil

exports for January- August 1968 were 152,729

long tons compared with 138,600

last year. Shipments to the United States were 136,997 tons, an increase of 16,438 tons over January- August 1967.

Desiccated coconut exports for August 1968 increased to

in

Exporting Countries

Grain stocks on July 1, 1968, in the United States, Canada, Argentina, and Australia at 115.4 million metric tons were 15 percent higher than a year earlier. Wheat stocks were up 17 percent, largely as a result of the record crop in the United States and reduced exports from Canada and Argentina. Rye and barley stocks declined 6 and 4 percent, respectively. Stocks of oats were off 19 percent, with all countries except the United States showing declines. Corn stocks gained 21 percent, mainly as a result of larger U.S. holdings. In addition to these five grains, totaled above, the United States held 9.4 million tons of grain sorghum, up 1 1 percent, and Argen-

9,546 short tons from 7,894 a year

earlier.

January-August

exports were 49,613 tons against 41,320 last year. total,

Of

the

45,277 tons moved to the United States compared with

31,185

last year.

Yugoslavia Raises Import Tax on Oils The Government of Yugoslavia raised the import levy on soybean and sunflowerseed oils to $51.20 per metric ton on August 28 from $30.40 per ton in effect during July and August. The new rate, however, is slightly below the import levy of $52.00 per ton imposed prior to late June of this year.

had 990,000, up 24 percent.

tina

U.S. wheat stocks rose 26 percent to 14.6 million tons the

ously, prices

Registered exports of copra from the Philippine Republic

Corn:

1

(VMAI) a day earlier. Previhad been voluntarily controlled by the VMAI under an informal arrangement with the government, according to which prices were determined every month in relation to vegetable oil prices in the preceding month, plus an agreed processing margin. The last such price was fixed on August 25. Vanaspati prices as fixed by the government are approximately the same as those set by the VMAI and are based on the current price of peanut oil. Converting Indian prices at the official rate of exchange, in July peanut oil sold for $319 per metric ton (14.5 cents per lb.) and spiraled to $519 per ton (23.5 cents per lb.) on September 11. Vanaspati production decreased 25 percent during the month of August, reportManufacturers’ Association

Weekly Report on Rotterdam Grain Prices

first

stocks increase since 1961.

at 58.1 million tons for

above

last year.

The

total

wheat supply,

1968-69, shows an 11-percent increase

U.S. corn stocks gained 23 percent, to 54.6

was up 12 percent; rye declined 10 perand oats were unchanged. U.S. feedgrain stocks, including grain sorghum, totaled 70.9 million tons 19 percent above a year earlier. A detailed table and analysis appeared in the September World Production and Trade: Statistical Report. million tons; barley cent;



India Regulates Vanaspati Prices

The Government of India placed vanaspati (hydrogenated vegetable

September Page 14

oil)

6,

French Milk Output Continues High The

general outlook is for a total milk production increase France of around 5 percent, with increasingly overabundant stocks of dairy products, particularly butter and nonfat in

dry milk. Milk production increased again during the second quarter of 1968, attaining a record high monthly production in May of 726 million gallons. Overall output was up 3 percent, compared with the same period a year ago. Butter and nonfat dry milk stocks held by Interlait increased to record levels almost 122,000 metric tons and 101,000, respectively, as of June 30. (As of September 1, stocks were 153,000 metric tons and 65,000, respectively.)

under government control beginning

Factory production of dairy products during the second

following a price increase by the Vanaspati

quarter was generally higher than the previous quarter, with

prices

Foreign Agriculture

an almost 50-percent increase in butter and canned milk, 40 percent in powdered milk, and lesser increases in cheese, cream, and yogurt. Production of fluid milk was down slightly from the first quarter. These trends continue those of the

357.000 bales shipped in July and compares with exports of 244.000 in August 1967. Exports to European countries were than one-half the volume shipped to those countries in

less

the

same month

previous year, although to a lesser degree.

U.S.

last year.

COTTON EXPORTS BY DESTINATION

French imports of dairy products were generally lower than those of a year ago.

[Running bales]

Exports of nonfat dry milk reached a

Year beginning August

record high, and other exports were generally up except for

Use

Average

Destination

fluid milk.

1960-64

of U.S. Leaf Increases in Thailand

and use of U.S. leaf in cigarette manufacture set records in Thailand last year, according to preliminary data. Cigarette sales in 1967 reached 12.2 billion pieces, using 18.5 million pounds of U.S. leaf, compared with sales of 11.1 billion pounds and use of 16.1 million in 1966. Gold City, Samit, and Falling Rain are three popular brands Both cigarette

sales

that contain U.S. leaf.

Belgium-Luxembourg

..

Denmark Finland France

Germany, West Italy

Netherlands

Portugal Spain

use of almost 20 million pounds of U.S. leaf.

LEAF TOBACCO IN THAILAND

Sweden Switzerland

Year

1963 1964 1965 1966 1967

U.S. leaf content Million

pieces

pounds 10

10,178 10,315 10,323 11,124 12,195 13,000

19681 1

Sales

Million

United Kingdom Yugoslavia Other Europe Total

Europe

Australia Bolivia

14 16

Canada

19

Chile

20

Congo (Kinshasa)

1,000

bales

bales

bales

bales

bales

23

4 52

45

1

8 15

10 11

U)

0

163 159

148 100 253 36

6 9

3

13

7

1

1

121 14 17

(1966-68), world cocoa consumption has exceeded produc-

manufacturers having to draw upon stocks to meet consumption requirements. Cocoa stocks in the Euro-

pean consuming countries have been reduced to very low levels; however, U.S. manufacturers, who bought heavily during periods of abundant supplies and low prices, are in a much better position, at least for the near future.

New York

spot Accra cocoa bean prices have soared to a

10-year high in September, being quoted as high as over 39 cents per pound,

U)

1

7

0

81

71

8

1

74 244

79

75 60

6

3

125

9

3

0

0

11

64 25

2

U)

1,979

1,238

1,052

64

31

61 7

17

2 0

353

297

17 0 142

18

3

1

3

1

0

0 0

0 0 7 0 0

6

34

13

U)

0

9

9 15 183

22

3

1

12

0

1

299 342 70 4

12 6

33

15

153 139

9

289 161 2

4

5

1

1,192

1,293

1,103

261

372

12

14

134 38 373

351 35 18 154 23 378

70

90

15 0

14

Pakistan Philippines South Africa

14 123 41

Taiwan

209 34 2

3

1

18

3

0

0

(U

0)

0 73 37 2 0 6

0 59 38 0 0 10

1

1

13

17

Uruguay

6

Venezuela Vietnam, South Other countries

8

1

U)

46

24

18

66 27

4 2 0 0 0

41

1

0 0 0 2 2

4,924

4,669

4,206

244

213

Thailand Tunisia

Total

0

8

up 12 cents over a year ago and well over 1

the 22- and 17-cent levels of the corresponding periods in

1966 and 1965, respectively.

With continuing firmness

213,000

in

cocoa bean

turers are contemplating further retail

manufacprice increases and/or

expanded usage of cocoa butter

Less than 500 bales.

Cotton Production

in

Argentina To Expand

prices,

further reductions in the size of chocolate bars in addition to the

1

8

314 40

tion, resulting in

0)

1

1

....

7

1

....

Morocco

7

74

India Indonesia

the last 3 years

0)

1

1

With recordbreaking persistent heavy rains falling over the major West African cocoa producing countries of Ghana, Nigeria, and the Ivory Coast during July and August and weather conditions also being poor in the Brazilian producing

become more apparent. For

0 2

)

8

148

tion year have

31 10

x

77

Cocoa Bean Prices Reach 10-Year Highs

regions, the prospeots of a fourth consecutive deficit produc-

263

(

78

Ghana Hong Kong

Jamaica Japan Korea, Republic of

1

125 21

Ethiopia

Israel

1968

1,000

Colombia

Estimate.

1967 1,000

112 17

11

1967

1,000

13

Poland & Danzig

August 1966

1,000

319 269 345 110

Norway

Estimates for 1968 place sales at 13.0 billion pieces, with

U.S.

Austria

1

substitutes in confection-

Favorable cotton prices during the past season are expected the incentive for Argentine cotton farmers to Cotton Board survey expand acreage in the current season.

800,000 to provide

A

of planting intentions showed that acreage devoted to cotton

ery products.

season could be near 1 million acres. This is more than one-fourth larger than planted acreage in 1967-68, and, if

this

U.S. Cotton Exports

Low

current marketing season.

October 7

,

1968

This

produce a crop as large as 450,000 bales. Production in 1967-68 (August-July) totaled around 335,000 bales (480 lb. net), the lowest in 20 years. At about

realized, could

Exports of raw cotton from the United States totaled running bales in the first month (August) of the is

sharply

down from

the

acres, the area planted

was the smallest

in the past

Page 15

U

S.

DEPARTMENT OF AGRICULTURE WASHINGTON,

D.

C.

20250

POSTAGE AND FEE PAID DEPARTMENT OF AGRICULTURE

U S

OFFICIAL BUSINESS

To

change your address or stop mailing, tear off this sheet and send to Foreign Agricultural Service, U.S. Dept, of Agricul-

Rm.

ture,

5918, Washington, D.C. 20250.

33 years and was only 10-year average.

Of

little

more than one-half of

the past

is

the area planted, 725,000 acres were

rate of

will continue to

Shipments

in

500,000 bales

the

same time-period

8

first

of 1967-68 totaled 97,000 bales,

consumed

months (August-March)

down from 122,000

in the

Imports during the entire

a year earlier.

1966-67 crop year totaled 148,000 bales. The four leading were Egypt, Turkey, Greece, and Pakistan. Because of the decline in production, cotton imports in the entire 1967-68 season are likely to be suppliers of cotton to Spain in 1967-68



with 127,000 for the 1966-67 season.

approximate

Cotton imports during the

previous years.



to

This represents a sharp drop from the estimated 600,000 bales used in 1966-67.

abandonment is below the average of Crop growth and yields' were generally normal. The quality of the cotton was considered good and its strength and uniformity were acceptable. The closing stocks have shown a declining pattern during the last several years and on July 31 were estimated at 365,000 bales, compared with 470,000 at the same time in 1967. During the 1967-68 marketing year Argentina imported 27,000 bales of cotton 21,000 of long and extra-long staple from Peru and 6,000 of short staple from Brazil. Exports for 1967-68 are estimated at around 30,000 bales, compared

The

harvested.

expected

during the 1967-68 year.

above those in the preceding year.

Lower

Lard and Tallow Imports

Italian

1968-69 Italian imports of tallow during

be small because of the tight supplies.

January-May 1968 dropped

15,318 metric tons, compared to 34,989 for the same period last year. The United States followed by Argentina to

Mill consumption has been declining since 1965 and for the 1967-68 season

is estimated at 425,000 bales; in 1966-67 was 490,000. Competition from synthetics, higher cotton prices, and controlled wages have all contributed to the downturn which is likely to be extended in the current season.

accounted for most of the imports. Continued high domestic

it

slaughterings of both cattle and hogs provided an abundance

of relatively cheap local tallow and lard, even though world prices for these products were extremely low.

With

Spanish Cotton Crop Continues Decline The 1968-69

cotton crop in Spain

is

cattle slaughter increasing this year,

that Italy’s tallow production will probably

it

is

amount

estimated to about

65,000 metric tons, an increase of 12 percent over 1967

estimated at 260,000

(480 lb. net), the smallest crop since 1958-59 when production was below 200,000. The current season’s crop represents the second year of a production decline, and compares with 297,000 bales produced in 1967-68 and 410,000

levels.

bales

Crops and Markets Index Cotton 15 U.S. Cotton Exports Low 15 Cotton Production in Argentina To Expand 16 Spanish Cotton Crop Continues Decline

in 1966-67.

Approximately 300,000 acres were planted to cotton this compared with 355,000 in 1967-68, 550,000 in 1966-67, and a 1960-64 average of 680,000. The primary causes for the decline in cotton production were: (1) farmers have continued the trend of diverting land

season,

away from cotton

to other

more

profitable

Dairy and Poultry Products

14 French Milk Output Continues High

and Oils 14 India Regulates Vanaspati Prices 14 Philippine Exports of Coconut Products 14 Yugoslavia Raises Import Tax on Oils

Fats, Oilseeds,

crops such as

sugarbeets and forage plants; (2) government regulations have discouraged cotton production in nonirrigated areas; and (3) ginners have reduced the

number of

and Seeds 14 Weekly Report on Rotterdam Grain Prices 14 Grain Stocks Up in Exporting Countries

Grains, Feeds, Pulses,

their contracts with cot-

ton farmers as a result of the decline in the textile industry.

The textile industry has not been able to attract the capital investment needed for the modernization of its equipment and it has been affected by the higher costs of imported dyestuffs

and chemicals as a

uation in

November

16 Lower

increasing competition

Cotton consumption

in the

Italian

Lard and Tallow Imports

Sugar, Fibers, and Tropical Products 15 Cocoa Bean Prices Reach 10-Year Highs

Spanish currency devalFurthermore, the local textile

result of the

1967.

industry has been faced with

foreign textiles.

Livestock and Meat Products

from

Tobacco 15 Use of U.S. Leaf Increases

1968-69 season

in

Thailand

Page 16

Foreign Agriculture A

If

Q

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lQfift

T, 1-700

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