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

Historic, Do not Archive Document assume content scientific knowledge, reflects current policies, or practices. MARCH U.S. 7, WHEAT 1966...

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

MARCH

U.S.

7,

WHEAT

1966

IN

THE

WORLD SUPPLY PICTURE SPAIN TO IMPORT

MORE FARM PRODUCTS I'

WORLD COTTON CROP AT ALLTIME HIGH

FOREIGN AGRICULTURE Including

FOREIGN CROPS AND MARKETS

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

i

I

FOREIGN

AGRICULTURE Including

march

FOREIGN CROPS AND MARKETS

VOLUME

isee

7,

NUMBER

IV .

10

Contents

Symbolized on our cover is wheat, whose age-long story has had some interesting chapters in the 20'h century. The siory on the opposite page examines some trends that have helped to give today’s international

wheat market

its

present shape.

Wheat Paramount

World Supply Situation

3

U.S.

6

Spain To Import More Agricultural Products This Year

in

— 7

Japanese Face

8

World Cotton Crop at Alltime

9

Japanese Team Sees U.S. Poultry Production and

Critical

Shortage

Domestic Beef Supply

in

High— With

Big Gain in the

USSR

Processing Areas

10

U.S. Cotton’s

1966-67 Prospects

in

Europe

Good as Stocks Dwindle This Buying Season

USA”

11

Record Crowds

11

Flaxseed and Linseed Oil Exports Under PIK Eased

Visit

‘‘Sunland

12-15 World Crops and Markets

Orville

L

at International

Green Wee

(Commodity index on page 16)

Freeman, Secretary of Agriculture

Dorothy H. Jacobson, Assistant Secretary for International Affairs

Raymond

A. loanes. Administrator, Foreign Agricultural Service

Editor: Alice Fray Nelson

Associate Editors: Ruth A. Oviatt

Kay

0. Patterson, Janet

F.

j

Beal

Advisory Board:

W. A. Minor, Chairman; Horace J. Davis, John Donald M. Rubel, Quentin M. West.

This magazine

is

H.

Dean, David

published as a public service, and

commercial and trade names

in

its

L.

Hume, Robert

contents

may

0. Link,

Kenneth W. Olson,

be reprinted freely.

Use

of

the magazine does not imply approval or constitute endorsement by

the Department ot Agriculture or the Foreign Agricultural Service.

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

is

published

Agriculture, Washington,

D.

C.

| i

1

j

Wheat Paramount

U.S.

World Supply Situation

in

The 20th century has witnessed dramatic examples

Major

shifts since

1900 in

importance of the role that wheat

wheat

the world’s

wheat production

in particular



in

general

of the

—and

U.S.

plays in the world’s food supply.

It

has been U.S. wheat that has borne the major burden of

hunger following in the wake of two World Wars and the chronic hunger resulting from

relieving both the acute

and

trade have brought U.S.

the

the pressure of population on food production.

During

wheat

into center stage.

period also, the United States has carried a

this

large share of the responsibility for the orderly marketing

of the world's wheat supply, through the pricing, stocking,

and management of

own wheat abundance.

its

This central position of the United States on the world

LYLE

SCHERTZ* ERS

P.

Foreign Development and Trade Division,

and RICHARD J. CANNON Grain and Feed Division, FAS

wheat stage is the result of striking changes in the production and trade patterns of nearly all the world’s principal wheat-supplying regions. Wheat the most prominent grain

On

a worldwide basis, wheat

important single grain,

is

today the world’s most

terms of both production and

in

Out of average world grain production

trade.

in

the 3

years 1962-64, wheat accounted for over 30 percent, corn

Regional Changes

in

the Past

and

for 25 percent,

WORLD WHEAT PRODUCTION -

rice for 20.

And

out of average world

grain trade in fiscal 1962-64, wheat provided 54 percent,

40 Years

corn 23, and rice only

The prominence

8.

of wheat on a regional basis varies, of

many

course, according to

Among

these are

livestock,

and the

circumstances.

numbers and needs of

local diets, the

region’s suitability for growing the various grains.

In the

example, wheat occupied only 33 percent of the 1965 grain acreage, and in India and Africa even

United

Africa

Oceania South America

less;

States, for

for

Canada and Oceania

the

percentage was sub-

stantially higher. North America

USSR

In food aid, wheat has been the principal grain involved. For example, from the start of U.S. Public Law 480 programs through January I, 1965, foreign currency sales (Title I) involved 86 million metric tons of wheat and wheat flour for developing countries; all other grains accounted for only 1 1 million. And in 1964 alone, wheat and wheat flour accounted fOr more than 60 percent of the total value of U.S. aid to deveolping countries under Title I. Trends

The

in

by 140 percent, from 96 million tons a year in the early 1920’s to 230 million tons a year in 1960-64. The chart on this page shows the changing regional pattern of pro-

Asia

duction. Eastero

world wheat production

past 45 years have seen world wheat output increase

Europe

The trend

Asia, Europe, basis Western Europe

is

sharply

upward

in

all

regions.

Especially noticeable are the steep increases for the

the

and North America, although on

doubling of the

Oceania and Africa

A

is

much

smaller

USSR,

a relative

production

in

impressive also.

portion of the increase

shown

for Asia

is

attributable

on China and Manchuria for However, this does not account

to the unavailability of data 1920^

24

'25-

*

2 9

*

'30-

'35-

'40-

'45.

'SO-

'55-

'60-

34

39

44

49

54

59

64

Does NOT INCLUDE CHINA AND MANCHURIA

the decade of the 1920’s.

*Mr. Schertz Division; he is

the FAS Grain and Feed chief of the International Monetary and

was formerly with

now

Trade Research Branch, FDT. March

7,

1966

Page 3

— wheat production

for the entire change; China’s

in the early

— percent in the 1920’s and kept

1930’s averaged only approximately 24 million tons.

The USSR and

Within the latest of the 5-year periods beginning with 1920, wheat production in North America reached a peak: for 1962-64, it averaged 49 million tons, of which the

period between the wars.

United States accounted for 32 million and Canada for 17 Yet North America, which at the beginning of

it

even during the 1930’s.

Danube Basin ranked second as the century opened and first before World War II, but later found

the

their export share

The

years since

much

World War

reduced, beginning with the

however, have witnessed preeminence in the world

II,

million.

the United States regaining

45-year span had stood first among the world’s wheat producing regions, ranked fourth at the end of it; ahead were Europe (Western and Eastern), Asia, and the USSR. The United States was the largest single producer of wheat

wheat trade. During the late 1940’s, the supplies of North America particularly the United States played a vital part in postwar relief and recovery. In 1960-64 U.S. wheat accounted for over two-fifths of the world’s exports and Canada's for another fifth.

this

45 years ago;

How

now second

is

it

to the

USSR.

trade in wheat has been equally

Between 1900 and 1964, total wheat trade increased from approximately 15 million tons a year to over 45 million. Still more dramatic were the shifts in importance among the exporting areas. By no means did the largest producers of wheat always rank first as exporters. In fact, the three areas that now produce most wheat Europe, Asia, and the USSR are all net wheat importers. dramatic.



The United

States

world’s wheat trade at

enjoyed almost 40 percent of the the turn of the century, with about

6 million tons of exports.

22 percent,

share dropped sharply to 14

Its

World War and plummeted

percent before

I,

rose again in the 1920’s to

to 8 percent during the drought

Canada, only

years of the 1930’s.

in fifth place in the early

1900’s with 5 percent of the total, took

first

place with 35

WORLD EXPORTS OF WHEAT AND WHEAT FLOUR Period

Canada United

Argentina

Australia

Mil. metric tons

Mil. metric tons

Mil. metric tons

1.5

0.3

0.7

5.7

2.6 4.0

1.4

2.5 8.4 4.8 7.6 7.7 10.2

2.9

9.6 9.7 18.5

1899-1903 1909-13 1924-28 1934-38 1944-48 1954-58 1960-64

2.5 2.8

3.3

2.2 2.9 2.2

1.9

2.4 5.4

States

Mil. metric tons

5.3.

1.4

Danube

USSR

Basin

Other

Total

Mil. metric tons

Mil.

metric tons

Mil. metric tons

Mil. metric tons

1899-1903 1909-13 1924-28 1934-38 1944-48 1954-58 1960-64 1

carrying out activities that importantly influence domestic

consumption, and prices of wheat.

supplies,

And

in

many

of these countries, such activities have a significant influ-

ence on prices

in world markets. For example, Canada, Australia, and Argentina use WJieat Boards to control the quantities and prices of their wheat sold internationally. The European Economic Community has established a variable import levy system, which in effect

is

a variable import quota system associated with

variable export subsidies.

The United Kingdom employs

countries.

The United States too has a number of domestic wheat programs, including acreage controls and diversion, stocking, price supports, export payments, and import quotas. These programs have an important effect on the U.S. position in the world wheat economy and in turn on the position of many other countries. Thus, the United States is

carrying a disproportionate share of responsibility for this

economy,

in

terms of maintaining

stability of supplies, pro-

viding food aid, and stabilizing prices. sponsible U.S. conduct, activities in

all

Without

this

world wheat market would have been subject to very

.5

1.0

2.1

23.8

ent conditions of supply, trade, consumption, and price.

.7

1.3

2.9

17.3

.4

.1

.5

2.0 4.5

(1)

4.6 4.6

22.3 29.3 45.4

U.S.

net exports;

——

North America Latin America Western Europe Eastern Europe

influence on supply stability

In 1962-64, U.S.

wheat area averaged 46 million acres world wheat area. U.S. production

total

same years averaged 3 percent of the world total. But U.S. production would have been much larger if U.S. in the

1

farm resources had not been purposely diverted from wheat

net imports]



1934-38

1950-54

1955-59

1960-63

diverted from crop production; of this total, 7.5 million

Mil. metric tons -H5.6

Mil. metric tons

Mil.

metric tons

Mil. metric tons 30.2

were under the wheat acreage diversion program. Reflecting the restraints on production, average U.S. wheat area in 1963-65 was 28 percent below the 66.9 million acres of



11.2

+ 2.1 +.6 1

....

differ-

production.

4-1.7

....

re-

these areas of the

14.6 19.7

U)

a

Japan has a system of import fund allocations and “skimmings,” or variable import charges to “skim off” any price differences between the lower world price and the higher domestic price. Tariffs, skimmings, and quotas are used also by the developing discriminatory variable levy.

about 9 percent of

=

Adam

1.3

Year beginning July

Page 4

wheat is not a purely comSmith “invisible hand” type. On the contrary, almost every country involved in this trade has governmental or quasi-governmental agencies market of the

2.9

Region

Africa Asia Oceania

international market for

3.1

AVERAGE ANNUAL NET WORLD TRADE IN WHEAT

USSR

The

petitive

2.4

Agriculture Organization of the United Nations.

[+



2.7 4.4

Negligible.

Food and



The United States and the world wheat economy

the wheat trade has changed

The growth of world

its

.1

—.9 +2.9

16.8

+ 19.9

1.0

11.9

— 10.0

—.04

—.7

+

— —

—+

—.8

.8

-1-.8

1.2

—5.2

—2.0 —8.4

+ 2.4

+ 2.3

1

In

+

—2.3 —9.2 —2.0 —1.1 —3.3



12.5

+ 5.6

1965, about 56 million acres of U.S. cropland were

1951-53.

In contrast,

cent, Argentina's 23

Canada’s wheat area was up 10 perpercent, and Australia’s 64 percent.

Although the United States produces a comparatively has assumed a large it (Text continued on page 16)

small share of the world’s wheat,

Foreign Agriculture

WORLD'S MAJOR WHEAT PRODUCERS World total 240 million metric tons

SHARE OF WHEAT, 1962-64 -

(on 510 mil. ocres)

Regional Grain Production

in

PERCENT OF REGIONAL TOTAL

MB

Wheat

!//A

Other grains

25

%

others 96 mil.

All

(on 216 mil. ocres)

50

100

75

West Asio Eastern

Argentina

8

mil.

^

Europe

Northern Africa

(on 12 mil. ocres)

Australia

9

mil.

Western Europe

(on 17 mil. acres)

Canada (on 28 mil. acres)

Western Hemisphere EEC

28 mil.

,

Southern Africa

(on 26 mil. acres)

United

World as

32 mil.

States

a

whole

-

(on 46 mil. acres) 4c

USSR so

WCLUDES

USSR.

mil.

(on 165 mil. acres)

PRINCIPAL GRAINSWorld Production and Trade, 1962-64 METRIC TONS

MIL.

100

HIFTS TRIG

250

200

150

AMONG SOME TOP WHEAT EXPORTERS

TONS I



A

United States

^

USSR & Danube Basin

/

/

Conodo

Production

Trade

^

/

» ''

'v ^

I

/

I

B

_L FOR SORGHUM, AUG.

i'n

'n

1961 - 62.''63

-

^ 1962 - 63. ‘64

64.

-

65.

^

1/

1

I

903 %

AFTER

'24-28

1909-13 J943,

'34-38

'44-48

-54-58

'60-64

EXPORTS FROM DANUBE BASIN NEGLIGIBLE.

NET REGIONAL TRADE IN WHEAT B| Mil.

Net exports

O

Net imports

METRIC TONS. -

THE

5

BIGGEST WHEAT EXPORTERS 1962-64 Averages*

u u Latin

North America

30

25 Stocks July

1

America

Western Europe

1

Exports, inci. flour

^

20

— -10

I5-Eastern

Europe

^ ^ u

lO-h

ARGENTINA

IT

USSR

1

Africa

* YEAR

BEGINNING JULY.

A DOES

NOT INCLUDE CREDIT SALES.

-5

Asia

-r 5

1934-

ss

'50- '55- ’do-

54

59

63

--

Oceania

JJ

± '34-

38

'50- '55- '60-

54

59

63

^

Spain To Import More Agricultural Products This Year JAMES LOPES

By

Foreign Regional Analysis Division

Spain needs to import large quantities of edible

Economic Research Service

oilseeds to

Spain should be an attractive market for the sale of U.S.

Not only was

Spain’s

own

agricultural products in

1966.

output below normal

1965, but recently measures were

taken

Eurthermore, Spain’s reserves



$1.36

at

commodities.

imports of agricultural

liberalize

to

in

foreign

official

million

exchange and gold 1965

October

in



Low

consumption.

make

to

and

efforts

vegetable

oils,

among consumers have about half of

»

i

olive oil production in the past 2 years

and the government’s and

oils

the deficit between domestic production and

fill

sustain

to

exports

olive oil

other than olive

acceptable

oil,

consumption of such oils to vegetable oil consumption. Also, the

total

raised

.

,

^

more

are

program needs

livestock expansion

oilseeds or protein con-

centrates to meet the increasing animal feed requirements.

than adequate to sustain increasing agricultural imports.

^

Because of

poor crops, need

last year’s

indicated for

is

larger imports of feed grains, vegetable oils, protein con-

Vegetable

Expansion of the livestock

Spain

centrates,

program

pulses,

and sugar.

stepped-up imports of breeding

will require

Imports of animal

may

table products

cattle.

tobacco, hides and skins, and vege-

fats,

show some

also

|

may import

seed oils during tons

1966, as

as 200,000 metric tons of

compared with 57,000 metric

1965 to an estimated

in

oil

pro-

of 324,000 metric

total

tons, total vegetable oil supplies will

i

stock of

10,000 metric tons and a doubling of olive

I

duction Market expanding

much

as

In spite of a carryover olive oil

1964.

in

about

increase.

needed

oils

fall

short of the de^

become an important market

In recent years, Spain has

foreign

for

amounted

products.

agricultural

$467 million

to

lieved to be close to

$650

in

Its

farm

1964, and for

million, or

imports

1965 are be-

more than double

The United

major supplier of Spain’s 1964 its shipments to

States has been a

imports.

In

1963 and

is

Eeed grains and soybean products are

expected for 1965.

particularly important.

Spain’s imports of U.S. feed grains

rose from 107,000 metric tons in I960 to 889,000 in 1964.

imports of U.S. soybeans climbed from an average of

16.000 metric tons

1962 and

in

1963 to 56,321

1964; also,

its

purchases of soybean

metric tons

in

the 1961-63 period.

oil

averaged

tons in 1

13,000

Spain probably

oils

production

in

1965

at

2.8

million

continue to encourage the export of

will

lower priced vegetable

In

other than olive

oils,

reduced

it

uary 1965 also were suspended

Soybeans are expected

in

of

introduced

oil

November

accepted is

in

Jan-

accounting for the

to continue

Spain’s edible

in

Soybean oil is market, and the

oil

cheaper than for other vegetable

Furthermore,

crushing

Spain’s



facilities

oils.

have

than twice the level of 1963 crushings. This year soybeans will

emphasis on

compared with 20,000- 50, 000 in 1965. Since few countries can compete effectively with the United States in the

expansion

should

stimulate

feed

Total feed grain imports by Spain

command some 200,000

tons of this enlarged capacity

soybean market,

850.000 metric

Spain’s reduced cotton production for the past 2 years could mean substantially larger imports of cotton in 1966

I

tons.

for sorghums, as

by drought

its

Spain also offers an expanding market

own sorghum crop was

badly affected

The

Public

Law 480

loan agreement of $35 million,

in

recent years.

was slightly bales, 160,000

next 3 years, with

production.

last

125,000 tons to be bought

also agreed to purchase

commercially

a

this year.

minimum

of about $18 million worth (321,000 metric tons) of feed grains from the United States

The market rise to

Page 6

!

in

the

same 3-vear

i

i

1965, estimated at 350,000

in

lower than the low

level of 1964.

in

been causing

Assuming

as oilseeds, this

High

the use of irrigated

land from cotton growing to crops offering a

more

U '

i

stable

vegetables and sugarbeets, have

downward

trend

in

both

acreage and '

a

normal

consumption

of

Spain’s cotton import requirements in 1966 bales, nearly

period.

tor U.S. soybean products in Spain in 1966 $65 million, nearly double the 1964 value.

Output

labor costs, dry weather, and shifts

return, such

may

'

1966.

'

Commercialization of Farm

COES

in

Cotton outlook promising

September with the Spanish Cooperative for the Products (COES), calls for the purchase of 600,000 metric tons of feed grains over the signed

possible that Spain will be crushing

is

it

mainly U.S. soybeans

than

last year.

Spain has a large loan to finance imports of U.S. feed grains.

'

1

I

in 1966 are expected approach 2 million metric tons, about 10 percent more than imported in 1964. Of these imports, corn is estimated at over million metric tons, and barley at approximately

to



about 300,000 metric tons, or more

to

feed stocks combined with poor pasture conditions and the

grain imports.

;

'

'

been

crop of the previous year.

expanded

I

1965.

For livestock feed they have a

bulk of oilseed imports.

,

the domestic market.

oil, in

Restrictions on the export of olive

sale

greatly

livestock

:

offer the public

October 1965,

and further liberalized the

the import duties on

vegetable

and must

oil

oil.

metric tons was about one-tenth below the relatively poor

Consequently, low carryover

,

oil

high price supports on olive a

!

and the import of cheaper vegetable for domestic uses. The government is committed to

price per ton

grain

estimated 85,000 metric tons of

needed for carryover stocks.

olive oil are also

also well

feed

An

more than

at

competitive advantage over other oilseeds.

Good feed grain market Spain’s

consumption and export, estimated

high-priced olive

Spain averaged $108 million a year, and a record level

Its

for

6t)0,000 metric tons.

the

1958-62 average.

agricultural

mand

double imports

in

540,000

bales,

may amount

1964.

to

In the past

3 years,

Spain has been a cash customer for U.S. cotton,

buying a

total of

20,000 bales

in

1964 and 25,000

in

1965.

Foreign Agriculture

'

Also, the expected shortage of certain staple lengths

drought affected the country’s

grades

year.

and seems to indicate a brighter future for U.S. cotton.

Spain liberalized

'’ulses

1966

Spain’s

and

jcntils,

chickpeas

netric tons. 8

imports

Its

own



pulses

of

—mainly

expected

are

dry

beans,

20,000

pulse production last year was

This could result in Spain’s increasing

Ibeans, for in

14,000 metric tons, or two-thirds of

Spain about

imports

1964 amounted to 700 metric tons,

in

—representing over



virtually all

from the

half the total.

Prospects to be watched

Spain offers opportunities for other products that the

United States

and

skins,

Spain

is

is

well able to supply,

and tobacco and

namely

tallow, hides

cigarettes.

already the third largest European buyer of U.S.

In 1964

tallow.

Government

!

United States

dry

its

bean imports. I

year are seed grain, grass, and vegetable. Spain’s

with sorghum and safflower seed

its

from the United States, particularly dry both 1963 and 1964 the United States shipped

imports

pulse

seed production last

down

percent from that of 1964, with dry beans at the lowest

level in 5 years.

this

own

types of seed most likely to be imported by

seed grain imports

exceed

to

The

its

imports from the United States totaled

in

1965

over 45,0Q0 metric tons, or more than two-thirds of

should aid imports this year; also, the decrease in

1965

tallow purchasing.

of

liberalization

pulse production

among

pulse

European suppliers should

Spain’s

next 2 years, as

Larger imports can be expected

more

tallow

is

used

benefit U.S. exporters.

and

Breeding cattle, seed

$1.8 million in 1964, and the market

in

mixed

in

in

its

the

soap manufacture

feeds.

nsol

U.S. exports of hides and skins to Spain i

o|

The Spanish market

for breecjing cattle

development plan

Spain’s 4-year

$1.6 million a year to import breeding cattle. ede.

promising.

is

calls for the

stein Friesian

purebred

thousand more

Spain has also been a leading importer of U.S. cigarettes.

Canada has

compared with $1.8 million in 1964. Also, raw tobacco imports from the United States amounted to $2.7 million in the same 6-month period. Imports of at

in

the

first

half of 1965

were valued

$3.8 million

The U.S. share has been 1963 some $60,000 worth of breeding

cigarettes are expected to continue because of tourist de-

were shipped to Spain. Spain’s seed market also appears to be good, since

Spanish Tobacco Monopoly was considering a tender of

several

small, although in rto[

to about

Imports of cigarettes

1965, with reportedly orders for

in

came

expected to grow.

spending of

been the chief source, shipping nearly 2,000 head of Hol-

isol

is

this year.

jcattle

mand;

as

for

leaf

tobacco, at the end of

1,500 metric tons of U.S.

last

year the

leaf.

ucd e

lapanese Face Critical Shortage

o(

in

prices, growing consumer demand for and a drastic drop in cattle numbers are combining to create headaches for Japan’s livestock industry and agricultural planners. Average quality beef is now wholesaling for around 65 cents per pound in Tokyo, and retail prices are around $1.25 per pound. Even at these

beef

Rising

Jan-

quality beef,

the

1

ill’s

the

prices, supplies are

for beef,

leeo

inadequate to

the Japanese hunger

fill

and beef imports are growing.

beef, or Sendai beef, this

meat

retails for

get small

hand

As

tractors to replace bovine draft

1960’s set a

was farm power.

Japanese people have been eating meat for over a 100 years, but until a

few years ago meat supplied a minor share

The number of draft and beef animals on farms is falling at a rapid rate. Meat dealers, unable to meet the demands of customers, have made strong com-

since 1960

disappearing.

is

plaints

because of the shortage of beef.

Steady decrease of cattle numbers )lc

In 1956 the number of draft and beef animals on farms reached a peak of 2.7 million head. By early 1965, this

number had 1966,

the

fallen to

total

lo’

downtrend

1.9

million head, and as of early

was probably around

Furthermore, there

is

1.7

million

nothing to indicate a halt

numbers, since

head. in

this

is

caused by mechanization

factor that has prevented

more rapid depletion of

in

it

St'

instead of a cycle in

numbers.

n,

One Ji

Japan’s agricultural planners early in the

goal for 2.5 million head of beef animals on farms in 1971.

of their protein consumption. In recent years

sh'

It

draft

animals, the traditional source of animals for beef production

ve

and beef cattle. In 1956 cows and heifers on farms, but by 1965 this number had reached 1.3 million head. A large share of the bull offspring produced by Japan’s predominantly Holstein herds is fattened and in

there were 0.5 million head of dairy

these animals

more farmers

I

of dairy cows on farms has climbed almost as

rapidly as the decline

$4.00 to $5.00 per pound, and even at these prices sup-

Matsuzuka

Tractors are the underlying cause of the problem.

'

the growing supply of dairy animals for slaughter.

plies are short.

beef,

depending on the area of production,

00

is

At the time the goal was announced, there were 2.3 million head of native draft and beef cattle, known locally as Wagyu. For several hundred years the sole purpose of

variously as

ars

stock

The number

slaughtered.

Japan has traditionally produced an expensive beef to meet a carriage-trade type demand for quality. Known

Kobe

Domestic Beef Supply

March

7,

1966





particularly

meat has skyrocketed, and the average Japanese has the money to buy meat and other items which used to be luxuries. The average income for urban families in 1960 was about $115 per month and all food cost about $35. By 1965 this had grown to around $190 for income, and food costs were around $50 a month. In 1960, the average monthly family purchases of meat were only $2.45. By 1965, this had grown to almost $5.50. (Meat includes beef, pork, chicken, and processed meat products.) Annual beef consumption jumped from 2.5 pounds per person to almost 4 pounds during the 1960-65 period. There is little doubt that much more beef would have been consumed in 1965 if prices had not been so high. the Japanese appetite for

Page 7

The Japanese Ministry of Agriculture and Forestry reannounced plans to spur beef production. Among the various devices to be employed are: The establishment cently

100

of

breeding

cattle

throughout Japan

centers



make animals

hand, pressure from consumers for more beef

growing,

is

i|

and the only way more beef can be made immediately available

—each

through larger imports.

is

i

Beef imports are controlled through a system of import

feeding at stabilized prices; loans to individual farmers to

few years, these allocations have, been mainly for processing beef, averaging around 5,000

purchase animals for fattening; and longer term loans to cooperative groups to purchase breeding stock.

cations totaled almost 10,000 metric tons, but this

100 head of cattle

with

to

available for

These plans may have the effect of slightly slowing the downtrend in cattle numbers. However, they are unlikely to result in any major improvement in the growing beef problem. Japanese-type cattle are slow and inefficient as feed converters to fill the growing demand for beef. Some selection and breeding work has been done with notable achievements, but the basic beef-type animal

has not

still

developed from Wagyu.

metric tons a year.

the

some

Beginning April

time

and the Livestock Development Corporation

use a share to improve the domestic livestock industry.

LDC

World Cotton Crop at Alltime High

-With Big Gain

million bales (480

than the record

for

lb.

set last year.

1965-66

now

is

estimated

net), about 0.2 million higher

This crop was grown on an

more than remains the same as

area of 82.1 million acres, about a half million

The world average

1964-65.

in

last

season

— 305 pounds per

Among

decline of 0.2

a

million

United States, the crop, only about

is

is

a semi-governmental organization set

is

Colombia’s

8 percent.

short of last season’s 625,000

fall

bales.

|

*

4 j !

In the

last

is

season's, although

Spain’s harvest is expected to total around 350,000 bales, only slightly below last season but well under the record of 517,000 bales produced in 1962-63.

Turkey’s cotton crop, is

down

0.1

Soviet crop larger in

the crop reportedly reached 8.7 million

estimated at 1.4 million bales,

with Syria’s, at 750,000 bales, is

is

down

7 percent.

In Iran,

;

'

:

:

i

placed at an alltime high of 625,000

an increase of almost one-fifth; and

hales,

Free World output was offset by gains

now

million from the record outturn of 1964-65,

the cotton crop

USSR where

down

earlier years.

season.

last

over 15 million bales,

was produced on a smaller acreage. The average yield estimated at 531 pounds per acre, an increase of 14 pounds over last year's record.

the

may

|

to encour-

about the same as that of the previous

is

year, but Argentina’s

it

in

ii

the USSR

in

estimated at 575,000 bales,

300,000-bale crop

up

from

is

The drop

:j

will

In Greece, the crop, now estimated at 330,000 bales, is up 20,000 bales from a year ago but substantially below

percent smaller than

1

1

!

The

estimated at 22.7 million

at slightly

1

Mediterranean Basin crops

acre.

the countries of the Free World, excluding the

United States, cotton output bales,

yield

for

The Beef Wholesalers Assomoney to improve marketing

age and promote Japan’s livestock economy.

World cotton production

However,

cattle.

nese beef producers from imported beef so that they would expand operations, and some have responded. On the other

at 52.1

alio-

equal

meat for direct distribution to consumers. Previously, imports were mostly brisket from Australia. In the most recent import allocation for 2,500 metric tons of beef, the government announced that about 10 cents per pound would be collected for promotion of the

facilities,

to Japa-

is

better cuts of

elation will get a share of the

The Japanese Government has given protection

1965, import

1965 allocation included

in recent years, the

domestic livestock industry.

Beef producers protected

1,

about 40,000 head of native

first

!

In the last

allocations.

to only

i

Israel,

which

harvested about 95,000 bales from 43,000 acres, had the highest national yield in the world. ^

an increase of 0.5 million from

bales,

last

This

season.

record crop was harvested from an area no larger than in 1964-65, despite a shortage of irrigation water.

A

procurement price for cotton apparently caused farm workdo a more efficient harvesting job.

ers to

Mainland China

ton this season than larger; yields,

probably harvest slightly more cot-

will

last,

however,

since acreage

will

believed to be

is

very likely be lower because

of less favorable growing conditions. Latin

American output

Cotton

production

million bales,

is

African production mounting

The

higher

about equal

now

estimated

to last year's outturn.



2.4

at

But

is

South America

is

likely

to

nearly 200. 000 bales below the 3.8 million harvested season.

Brazil's

below the Page 8

2.1

crop

is

currently placed at

and represents the

This larger output

is

attributed

expanded acreage and higher yields. Although little information is available on the UAR’s crop, it will probably account for about one-half of total African output. In Sudan, the 1965-66 crop reportedly

i

3

to

made

i

!

excellent progress, and despite a small acreage

reduction,

may amount

India’s crop

down sharply

since

in

5 million bales.

j

to

800,000

bales.

in

last season's.

1965-66 crop

0.5 million larger than last year

exceeded

near as large as

The

estimated at 5.1 million bales.

time that production on the African Continent has

hales,



is

first

American countries El Salvador, Nicaragua, and Guatemala the rapid production rise of recent years was reversed. Only in Guatemala was the crop anywhere the Central

African crop

This

has

Mexico,

in

total

be last

100,000 bales

million bales of last year, while Peru's crop

The cotton crop in India is now estimated at down 0.6 million from last season and 1961-62



from

crop

1.7 million last

try's alltime

|

the lowest

largely because of shortage of moisture in

the Central Belt during the growing season. stan, this year's

4.3 million

is

estimated

at

But

in Paki-

1.9 million bales,

up

season and second only to the coun-

record of 1.94 million bales

in

1963-64. Foreign Agriculture

i

i

Japanese Team Sees U.S. Poultry Production and Processing Areas A

group of

women just

134

top-level

interested in importing

wound up an

Japanese

busiViessmen

and

and using U.S. poultry have

inspection tour of production, process-

and merchandising facilities in the United States. During their 2-week trip, the importers, processors,

ing,

wholesale and parts of

retail

Japan



meat

dealers,

and restaurateurs from all own expense had an



traveling at their

opportunity to see the efficiency of U.S. poultry operations

and the wide variety of U.S. poultry products and types of packaging available to them.

The tour was organized by the Tokyo office of the InstiAmerican Poultry Industries, which administers the

tute of

Top, U.S. Undersecretary of Agriculture John A. Schnittker

FAS-industry

greets Japanese poultry team; above

cooperative

overseas

development

market

program

for the U.S. poultry industry’s International Trade Development Board. Accompanying the group were an official from the Japanese Ministry of Agriculture and Forestry, two members of lAPFs Tokyo staff, and a mem-

ber of the U.S. Agricultural Attache’s

maximum

publicity

in

To

staff.

the Japanese trade and

FAS

loanes,

Jiro Higurashi, industry official

(1.

to

Raymond A.

r.),

Administrator, with Hiroyoshi Kikuzaki and

team leaders, and Setsuo Kosaka,

of Japan's Ministry of Agriculture

and Forestry.

achieve

consumer

from Japan also traveled with the team. Highlight of the trip was lAPI’s annual Fact Finding Conference in Kansas City, Mo., attended hy representa-

Sandwich Project Sells U.S. Wheat

Japan

in

press, a journalist

tives of all

U

phases of U.S. poultry processing, as well as by

During the 3-day conference, all types of equipment from firms servicing the poultry industry were exhibited. The group toured two major poultry producing and processing areas Modesto, Calif., and Atlanta, Ga. In Chicago, the itinerary included supermarkets and restaurants, to see how poultry reaches the ultimate consumer, and conferences with officials at lAPl’s main office. USDA officials and Congressional leaders met with the team in Washington. D.C. S.

exporters of poultry products.



Some members U.S.

beef

and

visited

red-meat

markets.

is

less

in

largest export in

1

and poultry products March

1961, U.S. 10.6

million

in 1964 and another 6 percent, to .2 million, last Despite a growing domestic poultry industry, imports

are expected to continue large as

7,

1966

rises.

to larger bread sales for participat-

up the image of U.S. wheat

in

the

Japanese baking industry.

A with

joint venture of

FAS

Industry

in

Wheat

Association,

— and

sandwich

the

USA

Associates,

market development

—cooperator

the Japan Baking

promotion

project

featured seminars, lectures, demonstrations, and samplings at

139 locations

Participants

Tokyo.

in

included

31 in Osaka,

housewives,

and 30

bakers,

in

Nagoya. and

retailers,

restaurant operators.

among retailers and the press, and informed consumers of the nutrition and convenience offered. As a result, what started as a -day program at the U.S. Trade Center in Tokyo back in 1964 and was expanded to a 6-month pilot project in three cities may be extended veloped an interest

than 250.000 pounds

pounds

built

an effective means of increasing bread consumption, de-

exports of frozen poultry to Japan rose to

year.

and

ing bakers

the

one of the U.S. poultry industry's

From

gram has contributed

promotion of

Japan show the pro-

central

processing and

distribution operations.

Japan

pilot project for in

A booklet of 30 sandwich recipes and newspaper advertising were also used in the campaign. The project has convinced hakers that sandwiches are

of the team were also interested

industry

Recent evaluations of a American-style sandwiches

1

consumption of poultry

I

throughout Japan

this year,

bringing

in a

number

of allied

food industries such as producers of spreads, sandwich fillings,

dairy products, and coffee.

Page 9

other

U.S. Cotton’s 1966-67 Prospects in Europe

losing

consumer goods. Denmark is one of its two spinning mills

because of an acute labor shortage;

Good as Stocks Dwindle This Buying Season marketing

Cotton

W.

specialist

Glenn Tussey reports here on his recent on-the-spot market analysis of 10

over half the 1963-64 level of 1,568,-

000

and the U.S. market share

bales,

every nation.

in practically

fell

was exceedfrom 50 percent of the 25 percent. In West Ger-

In France, the decline

and Sweden, also troubled by labor shortages and high wages, expects to lose four of its eight mills by 1970. West Germany, the United Kingdom, the Netherlands, and Austria have maintained cotton textile produc-

major cotton-importing nations in West Germany, Western Europe: France, and the United Kingdom

ingly sharp,

tion at about average levels, but here

market

to

too,

(second, third, and fourth biggest im-

many

biggest of the cotton markets

porters

of

in

Western

the

Nether-

cotton

U.S.

Europe); and

Belgium,

— —

visited

the U.S. share

around

fell to

20 percent from 25, while

total U.S.

emphasis

the

on

increasingly

is

and

design, finishing,

knitting.

The one notable exception is Norway, where business was found to be Orders are holding up, demand

Norway,

exports of cotton to that country were

good.

for yarn

currently

48 percent. In Belgium, U.S. trade was off 55 percent.

pervading the West European cotton

U.S. markets held up fairly well in

market, while painful to U.S. cotton

Sweden and Norway, both countries

more,

augurs well for purchases

buying over 80 percent U.S. cotton. The low-quality cotton used predomi-

labor shortage, though mills are hav-

Denmark,

lands,

Sweden,

Finland, and Austria.

The

atmosphere

bearish

exporters,

off

once the new U.S. cotton legislation goes into effect in the 1966-67 season.

With European buyers

sitting tight to

nantly

United States

gage the law’s impact on U.S. prices

and those of have dropped

competitors,

its

where

to the point

may

able replenishment

stocks siz-

be demanded

next season in most countries visited.

was available from the

there

at

decline in

usage of raw cotto'n in Europe

have been the inroads of manmade fibers and the high production costs, developing countries, for

in relation to

cotton yarns and gray goods.

More

U.S. price flexibility

Most sources lation

will

much mism

ties

and enhance the U.S.

that

cotton

still-

has

in

Also providing opti-

of Europe. for

legis-

provide more U.S. cotton

price flexibility

strong

new

believe the

future

cotton’s

a newly

is

revamped market development program for cotton in Western Europe that is getting more support from the European cotton industry. Working for U.S. cotton too is the availability of

Commodity

poration credit toward

more

than

able

European

those

prevailing

In

nations.

most

of

the

nations visited, rates are running well

above credit

those

available

U S.

to

extend favorable credit

And

of U.S. cotton.

an

8- 10-percent

who may

to

importers

in Austria,

interest

rate

uncommon, importers can cotton at about 5

CCC

under

exporters,

where is

not

obtain U.S.

percent

European

Since

cotton

importers

Last

— U.S.

season

exports

countries

Page 10

—August-July

visited

of cotton to the

were

only

10

slightly

be

Europe’s

in

market

cotton

at least partially relieved in

the

near future and U.S. cotton’s position

improved.

Cotton

Council

Interna-

continues to extend

development

its

newly

Europe.

in



motional

move out of cotton spinmore sophisticated and more

campaigns



with individual firms in

and

cotton

This

finishing.

in

turn has meant

increased European imports of cotton

and the basic constructions of

yarn

cotton cloth and corresponding reductions in takings of

raw

cotton.

tire textile

A



third largest

of our European raw cotton markets

—where

general

during the

first

economic

half of

was about the same

dampened by textile

a

in

activity

1965, which

as for 1964,

was

10-percent decline

The

output.

problems

in

industry’s

textile

textile crisis of

In Belgium, cotton textiles

1962.

had some

summer mainly because

of heavy competition from imported

and lack of consumer

interest

cotton as a result of the cool, wet last

season.

Other countries experiencing difficulties

include

Denmark, and Sweden. trouble

with

groups

representing

en-

spinning industries possess-

Through

this

gram, CCI

is

firms

with

Also,

cotton

more

selective

pro-

obtaining cooperation of

stronger

cotton

benefits

interests.

from the good

image imparted by cooperating firms while

the

their

sales

of

goals

firms’

increasing

have become fused with

CCI’s goal of expanding cotton

sales.

1965 have been compared

by some to the

in

cases, taking the

ing a variety of fiber loyalties.

severe drop in textile production

has occurred in France

many

of campaigns carried on with

place

institutional

Textile production falters



from These are supple-

cutters to retailers. or, in

phases of

all

manufacturing

textile

menting

cooperation

in

highly capitalized operations of design

business

1964-65

will

ning into

weather

ern Europe this season.

Spurred by the general feeling that slowness

spurring a

exotic growths, declines appear immi-

nent for U.S. cotton exports to West-

Market development strengthened

The new format now revised to permit more flexibility calls for pro-

textiles,

immediate

rural

into

reoriented program for cotton market

difficulties last

currently

further out

areas in their recruitment programs.

European spinning industries to compete in the textile market with low-wage exporters of cotton goods,

buying only for their needs and mainly from

are

These

of

under an

Export-Import Bank loan.

reach

to

had no great

as yet has

tional

favor-

in

most

at

ing

Norway

mills

Further-

increased costs have reduced the ability

Credit Cor-

purchase

its

interest rates considerably

and

are working over two shifts.

competitive prices.

Big contributors to the mill

good, though prices have

is

squeezed somewhat,

been

competition

textile

Finland,

Finland has

from low-

priced Russian textiles as well as from

Wide use

of cotton

This program extent in

all

emblem is

now used

to

some

nations visited except Fin-

land and dominates CCI’s market de-

velopment

activities in

West Germany,

France, the United Kingdom, Sweden,

Norway, and Denmark. It centers around use of the cotton emblem to denote

100-percent-cotton

goods, su-

and performance. Cornerstone of the program is promotion of men’s leisure wear, rainwear. perior

in

quality

Foreign Agriculture

Throngs at U.S. exhibit

President and Mrs. Luebke

Record Crowds Visit “Sunland USA” at International Green Week Continuous Hawaiian and Dixieland entertainment, thatched

sales

booths,

grounds.

Some booths exhausted

supplies

the

President and Mrs. Heinrich Luebke,

anticipated for the 8-day event.

Green Week. Virtually none of the fair's 476,000 visitors 15.000 more than last year missed the U.S. Marshall House

big



leading

women's

and

attraction

wear.

on

the

Foreign

(See

In

now

West Germany, where there are 80 firms using the emblem, the

1

1966 campaign with

lines,

is

tied in with

product

undertaken

advertising

mainly through posters and publications.

year's

To

analyze the results of this

program

here,

CCI

will

employ

market research techniques similar to those used under the Netherlands' pilot with one

project,

of

surveys

the

to

measure attitudes of 2,000 homemakers toward promotional efforts. In France, industry cooperators participating in the

paign

include

manufacturers

1966 advertising camthree

of

the

cotton

of

leading

goods

for

household uses, manufacturers of canvas awnings, and about nine manufacof clothing.

turers

large

In

manufacturer and

will participate in

one makers-up

addition, six

parallel actions con-

and there will be two 2-week campaigns by retailers. furnishings, home In Sweden, women’s summer and leisure wear, casual cottons, and rainwear are get-

cerning

knitwear,

ting the lion’s share of attention, with

March

7,

1966

of

fruit

juices,

substantial increases

1

year

last

number In Denmark and Norway,

in

activities

Also,

in

1966 industry partners from these two countries and Sweden are expected to participate in the rainwear project of

CCl’s regional

on promotion through institutional groups are Belgium, Austria, the Netherlands, and heavily

Programs

in

the

first

three

are at an in-between stage and those in

the latter entirely with institutional

Now in its second year, the pilot project undertaken in the Netherlands by CCI and the Dutch Cotton Institute continues to show impressive results: A research team hired to analyze the

campaign

This



promoting the use of

household cotton

fashionable

— termed

it

project,

a

textiles

“significant

success.”

emphasizing

intensive

beforehand and followup market

re-

search plus intensive use of advertising,

is

television

pavilion

U.S.

was

when

Berlin's three largest dailies fea-

Mayor Willy Brandt

cutting the ribbon at "Sunland."

Flaxseed and Linseed

Oil

Exports Under PIK Eased The Commodity Credit Corporation export sales program for flaxseed ano linseed oils has been revised to permit greater flexibility for exporters.

Flaxseed

the

expected to

set

the stage

similar promotions elsewhere.

for

regulations

in

and

Linseed

ment-in-Kind Program

ment with

CCC

that

Pay-

the require-

is

export sales be registered

CCC. Under will

covering Oil

the

consider

new procedure,

offers

to

export

flaxseed and linseed oil at export pay-

ment

cooperators.

first

and

radio,

the

tured photos of

Eliminated

office in Oslo.

relying

Finland.

West

of

broadened to include more

firms and a stronger budget.

Still

Newspaper,

heavy, especially on opening day

of participating firms.

are being

snackbar

fruits.

1,000 patrons

from

"Beachcomber"

the

also did capacity business.

coverage

Offering traditional American main-

kiki" restaurant served

while

seasonings,

land and Hawaiian dishes, the “Wai-

tbe

1966.)

Agriculture, Feb. 28,

Ger-

importers of U.S. foods reported sales

peanut butter, and canned

I

[i

daily,

sales

climbed 300-400 percent higher than

man

Germany's

West

including

their

and kitchen demonstrations atrecord crowds to "Sunland USA," American food exhibit at West

pavilion,

j

as

films,



I

weekend

tracted

Berlin's recent

!

first

rates

announced weekly by CCC. program will

In other respects, the

operate

much

as

Export payment

it

has

—equal

previously.

to the differ-

ence between domestic and world market prices, with consideration given to



marketing cost factors will be made transferable payment-in-kind cerin

which are redeemable in CCC commodities offered for export sale. Since April 15, 1965, about 5 million bushels of flaxseed and 64 million tificates

pounds of linseed

oil

have been con-

tracted for export. Page 11

WORLD 1965

CROPS

MARK

A N D

Record Year for Japanese Soybean Imports

Is

Japan’s imports of soybeans reached a record high in 1965, while imports of soybean cake and meal rose sharply from those of a year earlier. In contrast, imports of safflowerseed declined sharply.

Imports of soybeans,

at

1.8

million metric tons

(67.9

were 15 percent above those of 1964. While imports from the United States, at a record 1.5 million tons (53.8 mil. bu.), rose 11 percent or 142,000 tons, the relatively small tonnage from other countries, largely Mainbu.

mil.

),

From

a value standpoint, soybeans

—were



for the third suc-

from the United States, exceeding both cotton and wheat. of soybean imports from the United States was a record $179 million compared with the previous record in 1964 of $154 million. Some of the larger volume of soybean imports tends to be offset by the changing price-supply situation between soybeans and safflowerseed, which have been used interchangeably in Japan for crushing purposes. Imports of safflowerseed, virtually all from the United States, declined to 113,440 tons from the 1964 imports of

The value

199,411 tons.



U.S. Trade in Oils and Oilseeds Hits U.S.

soybeans, established

exports of oilseeds, largely

continued expansion

somewhat over 1964

materials increased

takings

of

copra.

Overall

substantially smaller than they

as

imports,

were

in

a

however, are

Exports of soybeans were more than IVi times the averExports of

peanuts, although relatively small, gained sharply in 1965 to

more than double

the

This

previous year’s tonnage.

increase reflected larger availabilities

owing

to the continu-

1964

1963

and major

Quan-

an

Quan-

Value

tity

Value

tity

Value

Mil.

1,000 metric

Mil.

Mil.

dot.

tons

dol.

1,000 metric tons

1,314.3

143.7

1,322.5

153.9

1,464.9

179.7

167.9

1,607.2

184.5

1,847.5

225.8

tity

Soybeans:

U.S

1965

Quan-

1,000 metric tons

source

dol.

Total

1,544.4

Safflowerseed: U.S.

195.8

22.6

198.2

21.6

112.7

14.0

Total

195.8

22.6

199.4

21.7

113.4

14.1

1.1

.3

13.2

1.5

41.7

4.4

1.5

.4

13.3

1.5

46.3

4.9

Soybean cake and meal: Total

Customs Bureau, Ministry of Finance.

New U.S.

High

TRADE

1965

in

IN OILS

AND OIL-BEARING MATERIALS 1965

Oils

Quan-

Percent

1964“

tity“

change

Short

Short

tons 1,963 2,011

tons

tons

25,740

33,539 3,128 42,564 198,570 48,197 14,575 29,437

and

Average

oilseeds

1955-59 Short

IMPORTS Oils:

Corn Olive

age annual exports during the 1955-59 period.

in

SOYBEAN MEAL IMPORTS

Rapeseed

1955-59.

imports

sizable

JAPAN’S SOYBEAN, SAFFLOWERSEED,

result of

the 5-year period

1965, the U.S. shipping strike

attempt to stabilize prices.

Imports of oil-bearing

in U.S. output.

in

Government permitted

Japanese

demand and

highs in 1965 because of strong foreign

larger

Early

1961.

in

caused a shortage of soybean meal because U.S. beans for crushing were in short supply. As meal prices rose, the

U.S.

Soybean cake and meal imports, also virtually all from almost 3V2 times the United States, rose to 46,320 tons

new

ported

agricultural import

single

the largest

the 1964 tonnage and second only to the 56,355 tons im-

Commoditv

land China, rose 34 percent or 98,000 tons. cessive year

E T S

Palm Palm kernel Coconut Castor

Tung Sperm

16,547

25.856 94,329 50,545 13,319 23,839

0 2,886

0 2,242 22,716 3,278 41,549 201,199 64,738 11,634 38,553

Percent 0

—22 —32

+5

—2 + + 34 1

—20

+ 31

Oilseeds:

ing uptrend in yields.

the tapping of

Increased exports also resulted from

new markets. Safflowerseed

exports,

which

were not separately classified prior to 1965, are estimated to have declined by about one-fifth that year compared with

The

overall outlook for continued expansion of oilseed is

favorable.

peanut

oils

oils also declined.

Linseed

oil

exports in 1965 were

Imports of vegetable and marine general

upward trend

in

1965.

The

oils

continued their

increase,

heavier imports of castor, coconut, and sperm

reflecting oils,

was

273,759

326,695 228,342

645,887 340,082 40.664 958 9,552 75,735

12,408 17

307,466 12,745 565

Oils:

Cottonseed Peanut Linseed Fish

Tung

4,663 4,379 40,343 63,908 2,684

469

608,316 282,369 30,685 2,062 20,868 51,904 358

Oilseeds:

Cottonseed Peanuts, shelled"

sharply above those in the 2 previous years yet markedly below those of the 1950’s.

329,101 6,809 20,350

+ 12 +3 + 33

EXPORTS

Coconut

from the United States in 1965 declined somewhat from the large volume of 1964. The decline was accounted for largely by reduced movements of cottonseed and soybean oils. The relatively small exports of fish and Exports of

Sesameseed Castorbeans

Soybean

those of 1964, in reflection of reduced availabilities.

exports

Copra

Oilseeds, n.s.c.

Safflowerseed

Soybean’ Flaxseed®

11,660 15,988 “32,604

8,674 40,751 “241.996

U)

C)

1,000 hii. 86.437 7,299

1.000 hn. 209,507 6,947

5,306 84.823 (')

185,402 1,000 hit. 227,660 3,925

—6 —17 —25

+ 115 + 118 —31 —24

—39

+ 108

— 100

“—20

+9

—44

"Includes exports of edible grade peanuts. ’Preliminary. “Largely safflowerseed. 'Quantity figure not reported by the bu.=60 lb. Census. “Not separately classified. “Estimated. I

partly offset by reduced imports of olive

Page 12

and tung

oils.

N bu.=56

lb.

Foreign Agriculture

* j

'

i

1965 U.S. Tallow and Grease Exports Down

FEO Fishmeal Production and Exports Decline Production and exports of fishmeal by the

six

counrties of the Fishmeal Exporters Organization

1965 declined by 8 and

in

member (FEO) from

percent, respectively,

11

produced and exported in 1964. countries account for over 90 percent of the world's exports of fishmeal. Exports from Peru, the leading producer, declined, as did those from Chile. Dethe quantities

FEO member

The

however, were partly

clines,

U.S. exports of inedible tallow and greases totaled 2.1 billion

in

1965, valued at $191 million.

of 7 percent

in

the value of exports.

EXPORTS OF INEDIBLE TALLOW AND GREASES"

U.S.

Continent and country

from Norway and Iceland. The overall decline was reflected in reduced movements to the United States and the

European Economic Community. Prospects for exports this year indicate a further decline

Average 1956-60

1,000

1,000

1,000

pounds

pounds

22,246 30,974 4,626

34,329

35,940



21,331

22,693

1,023 19,792 16,329

2,901 18,839

2,823 27,253

7,829 10,059 20,094 4,468 24,577

13,160

88,358

El Salvador

Angola Chile Iceland

Norway Peru South Africa Total

1964

1965

1,000

1,000

short tons 65.8 159.3 140.8

1963

1962

1,000 short

short tons 36.2 102.3 105.9 133.3 1,235.5 221.8

tons 34.7 119.3 96.7 145.7 1,277.8 262.3

1.835.0

1,936.5

Other

204.9 1,711.0

1,413.1

283.7

299.8

2,565.5

2,371.0

Total

Chile

Colombia Ecuador Peru Venezuela Other Total

1,000

1,175.1

1,388.9

212.6

219.4

280.6

247.9

1,650.1

1,850.4

2,414.2

2,157.7

80.3 78.2 68.0

Norway

FEO,

Hanuary-Aiigust only.

short tons "33.2 70.1 145.0

Italy

Netherlands Total

272.6

Ireland

Norway

Gazette on February

official

9, the fish catch in the current fishing

The current

fishing season

1965, and will close on June 30, of the 1966-67 season,

which

will

began on October

1966.

The

The

fishing

Mar

Institiito del

the

of

fish

1,

1,

has

anchoveta.

The

as

much

peladilla tion

percent

60 (immature as

fish).

of

Peruvian

exports

of

the

anchoveta

1.3

landed

March

7,

1966

42,454 86,332 269,575 227,664

21,653 14,885 86,490 179,750 237,225

35,202 29,007 104,795 180,117 263,041

12,325 33,177 70,668 115,286 206,812

637,400

540,003

612,162

438,268

6,375 1,728 1,822 24,797 14,273 17,165 42,925

4,551

8,795 2,594 4,078 108,434

57,326 63,247 121,967 12,989 24,365

6,989 112 4,431 91,811 45,811 81,824 94,964 34,901 26,728

1,375

717

198 59,710

1,432 117,592

24,314 79,989

Ghana Morocco

11,847

22,037

15,468 117,304 29,231 22,092

South Africa, Rep. of Other

50,547 4,812

22,807 9,798

40,054 20,705

37,229 16,352

127,114

185,967

244,854

201,348

23,499 42 13,724 258,807 18,589 8,410 14,846 9,114 7,848

54,628

51,572

1,207

1,083

43,770 357,965 30,481 58,285 21,952 46,742 13,352

31,019 456,393 42,993 60,630 19,882 64,716 8,250

38,645 90,993 27,969 465,303 34,158 34,083 13,898 14,192 9,305

628,382

736,538

728,546

Pakistan Philippines

Turkey Other

23,616



12,301

16,280 27,184

TotaU

354,879

million tons a season.

fishmeal

during December

Total world

1965 "

1,436,475

1,879,027 2,408,102 2,123,614

Includes inedible tallow animal greases and oleic acid or red oil and stearic acid.

n.e.s., “

964.

94,020

Egypt

Japan Korea, Rep. of

were

exports last year totaled 1,260,000 tons against 1,416,500 1

175,903

185,503

China, Taiwan

some days

amounted to about 98,900 tons against 123,800 tons in the comparable month of the previous year. Calendar year tons in

82,769

825,8J9

Total Peruvian fishmeal produc-

expected to be about

is

reported that on

50,859

121,690

India Iran

estimated at 2.06 million tons, from which 388,989 tons of is

30,738 29,133 53,089 30,035 3,866

1,015,957

Total

catch in the September-December period was

It

7,082 2,561

19,775 24,167 23,080 13,327 2,049

5,176 103 21,703 20,761 30,200 15,446 631

Asia:

says the production limit has been reached

fishmeal were produced.

in

33,404

Algeria

and apparently considers overfishing an important factor.

The

28,765

Africa;

closing date

open next October

conservation

57

314

853^64

industry and the government are seriously

with

37

5,029

USSR:

not yet been determined.

concerned

1

15,281

Total Europe

season will be limited to 7.0 million metric tons of anchoveta.

94,541

785,382

Poland Yugoslavia Other

Peruvian

9,861



2,726 124,011 37,395 22,409 77,283 24,946 19,923

Spain Switzerland United Kingdom

Paris, France.

to a decree published in the

EEC

Greece

Peru Imposes Fishing Limitations According

1

1,525 19,575 11,191 8,888

1

Germany, West

short tons 60.0 160.9 138.9 201.5 1,572.3

Chile Iceland

Total

Belgium France

short tons 33.1 95.7 109.2 114.7 1,278.3

Angola

Peru South Africa

1,000

1,000

1,000 short tons 35.9

5,918

EEC: 1965

1964

1963

13,212



Europe:

FISHMEAL EXPORTS BY FEO COUNTRIES 1962

1

South America: Argentina

Fishmeal Exporters Organization, Paris France.

Country

3,443 7,856 34,830 9,237

Guatemala Mexico

short tons 49.1 77.6 190.7 340.7

=

pounds

Dominican Rep.

1,000

1965

1,000

Cuba

FISHMEAL PRODUCTION BY FEO COUNTRIES

1964 =

1963

pounds North America; Canada.

from Peru. Total exports could also diminish.

Country

The volume However,

the price rise during the year resulted in an overall gain

by heavier movements

offset

pounds

of exports was 12 percent below the 1964 total.

fats, '

animal

oils,

Preliminary.

Includes shipments to Oceania.

Foreign Agricultural Service. U.S. Department of Commerce.

Compiled from reports of the

Page 13

A

was the

large part of the drop in exports

the drop in shipments of inedible greases,

result of

primarily by-

Grease exports in 1965 fell to just over 100 million pounds, whereas they were 275 million pounds in 1964. The major buyers (Peru, the all took considerably less than Netherlands, and Japan Peru halved its purchases; Japan cut its buying in 1964. products of pork production.

)

share of that market dropped from 89 percent in 1964

tc

^

With lard output in the United States forecast to continue below normal at least until fall, exports; in 1966 will probably remain at a relatively low level. Ir' addition, total Western European output will probably

54 percent

in

1965.

level off or contract

drop

during the year, resulting

^ ®

another

in

world lard trade.

in overall

I

by 20 percent, while the Netherlands took only 8 percent

if

of the quantity taken in 1964. in 1965 were down about 5 pounds against 1,995 million pounds in 1964). Part of the drop in tallow exports was the result of reduced shipments under Food for Peace Program. The large Title I program exports to India partially offset the drop in P.L. 480 shipments to the UAR, Pakistan, Korea, Turkey, and Taiwan. Exports to the USSR were the heaviest since 1961, while those to the EEC were well below average. Japan again increased its buying of U.S. tallow and continued to

Inedible tallow exports

percent (2,1

million

1 1

be the largest buyer.

French Butter Exports Decline France’s butter exports in the

amounted

Down Sharply

in

Exports of lard from the United States totaled 251 mil-

pounds in 1965, down 63 percent from the unusually large (682 million lb.) exports of 1964. Only 203 million pounds were shipped to the U.K. market, a small part of the 550 million pounds shipped in the previous year. There are no other major lard markets, but lion

even most small markets took significantly

less

U.S. lard

same period of

in

sales

were made

the

first

1

months of 1965

1

— almost

25 percent

less

Reduced

the preceding year.

markets except the

to all of the principal

United Kingdom and Switzerland.

The United Kingdom

took 21 million pounds (compared with 19 million a year ago),

and Switzerland, 2 million pounds

million).

(1

Trade with West Germany was down to 13 million pounds from 15 million, and that with Italy to 9 million pounds from 13 million. Sales to Algeria declined 5 million,

made

1965

56 million pounds

than

pounds U.S. Lard Exports

to

to 3 million.

to

Considerably smaller shipments were

Morocco, Tunisia, Senegal, and Malagasy.

During January-November 1965, France’s imports ofl 38 million pounds were more than five times those of a year earlier. The United States shipped almost 25 million pounds. West Germany 9 million, the Nether-' lands and Argentina most of the remainder. butter





Ecuador Produces Record Pyrethrum Crop

during 1965. U.S. production dropped and prices were higher in 1965

because of the reduced hog slaughter. Concurrently, European production rose to cyclical peaks and most countries had export surpluses. Italy exported more than 20 million pounds to the United Kingdom, whereas it had exported

none

to that

market

Belgium, long a minor ex-

1964.

in

porting country, shipped in excess of 100 million pounds

U.K. market during the year, probably from imported raw materials obtained elsewhere in Europe.

to the

Ecuador's pyrethrum production during

1964 harvest and four times as great as the 1961 crop.

The acreage under pyrethrum rapidly in recent years, rising

EXPORTS OF LARD, INCLUDING RENDERED PORK FAT

has expanded

cultivation

from 3,700 acres

in

1961 to

14,500 acres by 1965.

Exports of pyrethrum extract and flowers also reached record levels during foreign exchange. the

U.S.

1965 reached

the record level of 2,003 metric tons, up 180 tons over the

extract

1965, earning nearly

The United

exports,

$2 million

States buys nearly

while Argentina and Japan

in

of

all

are

the

largest recipients of the flower shipments.

Average 1956-60

1962

1963

1964

1965^

Million

Million

Million

Million

Million

Country

pounds pounds pounds pounds pounds 216 350 436 550 203

United Kingdom

Canada Mexico Haiti

Germany, West

Panama Japan Bolivia Brazil

,

.

15

21

15

12

11

11

7 31

7 14

6

5

4

(U

C)

4 3

Yugoslavia Czechoslovakia Chile China, Taiwan

Cuba Other countries

35

— — 1

183 33

545

Total 'Preliminary.

13

19

15 7 7 18

3

3

3

7



2 16 19

2

14

16

8

8

2

1

1

1

C) C)

11

6

4 3

(

=

— —



2



12

14

19

6

1

422

538

1

682

251

'Less than 500,000 pounds.

Because of higher lard prices and the ease with which substitute fats and oils replace lard in the manufacture of

compound

fats

and margarine, the U.K. lard market conMoreover, the U.S.

tracted by nearly one-fourth in 1965.

Page 14

Tea production

Ceylon during

in

1965 totaled 503.2

million pounds, up 4 percent over the 1964 crop, and ex-

ceeding the record 1963 outturn by 18.6 million pounds. |

Ceylon

remained

the

largest

supplier

the

to

United |

market during 1965, accounting for 41 percent of the U. S. tea imports of 130.3 million pounds valued at States

$57.5 million.

)

— — — —

1

Ceylon’s Tea Crop Breaks Record

Antigua Sugar Production at Low Level Production of sugar level of

in

Antigua

about 16,000 short tons.

is

now

This

is

at the

rather low

only about half

of the production reached during the middle 1950's. of rainfall

Local

is

Lack

the primary reason given for the decline.

officials

declare that with

the

exception of

1962,

drought conditions have prevailed since 1958. It

has

been

reported

that

with

proper

moisture, sugar production could return to

amounts its

level

of

prior

Foreign Agriculture

to

work has already commenced under

Irrigation

1959.

The

cern.

which now requires 45-50,000 short

industry,

Colonial Development and Welfare aid from the United

tons of raw nuts annually,

dams for the collection of surface water is already underway using these funds. An expenditure of $5.5 million (BWI), or US$3.25

13,000 tons in the southern region instead of the normal

Kingdom; construction of

a series of

has been proposed in the country-wide develop-

million

1966-70; however, this has not yet been

ment plan

for

approved.

Antigua has an assured sugar market

Commonweath

for

more than

its

in

the

44-46,000. Shelters indicate that they might go as far as Tanzania

raw nuts if they are unable to get sufficient supplies from the northern region of Mozambique. The shortage

for

along with strong Indian

raw nut prices

present production.

faced with a crop of only

is

demand has

“uneconomic”

to

reportedly

forced

levels for the local shelling

industry.

Kenya's Tea Crop

Down

Slightly



Tea production in Kenya Africa’s largest tea producer during 1965 amounted to 43.7 million pounds, down slightly from the record 1964 outturn of 44.6 million be-



Ontario Concludes Flue-cured Auctions Auctiop

through February

sales

11

of the

1965

flue-

Ontario, Canada, amounted to 129.9 million

cured crop

in

cause of lack of sufficient rainfall.

pounds,

an average price of 65.6 Canadian cents per

However, both Uganda and Tanzania were less affected by the drought, and were able to maintain increases during 1965. Uganda and Tanzania produced 18.5 million and

pound.

12.5

pounds, respectively, against crops of

million

16.8

pounds during 1964.

million and 10.6 million

at

Through

that date, slightly over 83 percent of the

crop had been sold. harvest

is

placed

at

the earlier forecast

The current estimate of the 1965 compared with of 162.8 million. If the volume of 155.9 million pounds,

daily sales continues, the marketing of the 1965 crop will

very likely be completed during the week ending

March

4,

1966.

Netherlands Expands Use of Hop Extract

Hop

extract

The

brewers. their

gaining

rapidly

is

extracts replace

weight of raw hops

favor

from four

eight times

to

the brewing process, but be-

in

cause of a higher efficiency in extraction and utilization of essential components,

it

takes only 2.5 to 5 pounds of

hops to make a pound of the extract.

week ended February

Sales for the 12th

among Dutch

The amount used

11 totaled 11.6

million pounds, at an average price of 68.1 Canadian cents

This average price compares with 68.0 cents

per pound.

week, 72.2 for the 10th week, and 72.4 for the 9th week. During the 9th week, a new daily high average for the

price

1

1th

of

88.64 Canadian

per pound

cents

was reached

January 24, 1966.

depends on the strength of extract desired and the resin content of the hops used.

in

0

While imports of raw hops have increased 48 percent the past 10 years, extract imports have climbed from 317,000 pounds

1955-56 to

in

marketing season. These extracts $2.00 per pound





in

the

1964-65

hops

usually valued at $1.50-

imported mostly from West Ger-

are

many. However, over 70 percent of the hops used to make from the United States.

the extract are imported

This

famous

acceptance

rapid for

fine beer

its

extracts in other areas

of

is

hop extract

likely to hasten

Mexico To Subsidize Cotton Producers Cotton growers

in

1.58 cents per

pound of cotton exported. In 1966-67, the

export tax will remain in force; however, producers will

be subsidized to the extent of 97.7 percent of the tax.

The Mexican Government has concurrently announced

acceptance of

the establishment of a national union of cotton producers.

a

and increase the demand for U.S.

membership in the union and only those producers who become members will be

All producers will be eligible for

nues from cotton exports.

Hurricane damage to Mozambique’s southern region has

1966 cashew crop to an estimated nuts.

This

is

down

100,000

ments

will give

According tion of feed

ments totaled 137,000 tons with India taking 134,500.

tons

first

Exports of cashew kernels were not up as pected totaled

in

1965.

8

much

as ex-

During January-August 1965 kernel

sales

2,700 tons compared with 2,300 tons during the

same period

in

1964.

Expectations for 1966 kernel sales

are clouded by the uncertainty of the

raw nut supply.

The hurricane damage to the crop has caused the newly mechanized and expanded shelling industry serious conMarch

7,

1966

new

government reve-

likely that these develop-

is

flexibility in its

cotton export

Peru's Feed Production Forecast Higher

months of 1965, Mozambique exported only 74,500 tons, of which 65,800 went to India. During the entire year 1964, shipDuring the

It

Mexico greater

in

pricing policy.

Partly as the result of the smaller crop, 1965 exports of off sharply.

net effect of the

sharply from the

1965 crop, now estimated at 132,000 tons. An alltime world record crop of 165,000 tons was harvested in 1964.

raw nuts were

The

payments.

subsidy payment will be a reduction

Mozambique Has Short Cashew Crop

raw

Exporters pay a duty of

tax currently in effect on cotton.

eligible for subsidy

short tons of

1966-67

country

in

hops, which are superior for extracting purposes.

reduced the

Mexico, effective with the

crop, will receive a government subsidy to offset the export

processor forecasts, Peru’s

to

may

concentrates and is

1966 produc-

reach 490,000 metric tons (330,000 of

160,000 of nonconcentrated feed).

a 22-percent increase over the 1965 estimate of

and

14

percent

more than

the

This

400,000

1964 estimate of

350,000. Increases in

1965 and again

the opening of a

demands of

new

in

the poultry industry.

of concentrated poultry industry.

1966 are attributed to

feed mill and the rapidly growing

Of

the total production

about 70 percent is used by the Most of the balance goes to dairy cattle.

feeds,

Processors have shown interest

in

importing corn.

Page 15

DEPARTMENT OF AGRICULTURE

U.S.

WASHINGTON. D

C.

20250

U.S.

POSTAGE AND FEES PAID DEPARTMENT OF AGRICULTURE

OFFICIAL BUSINESS

To change

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

tear

this

Wheat

U.S.

Canada’s 55 percent. To the EEC market went 18 percent commercial U.S. wheat exports, for a quarter-share

the World Picture

in

of

(Continued from page 4) role

in

stocking wheat.

These stocks have made a suband prices

stantial contribution to the stability of supplies in

Canada

world markets.

is

the only other country that

amount of

has consistently carried a sizable

The United

erally

stocks.

States, although the front-ranking exporter

of wheat in the world, generally ranks second and some-

times even third in the magnitude of

its

commercial wheat

In 1964-65, even France equaled the U.S.

shipments.

mercial export

movement

com-

of 4.4 million metric tons.

commercial

In

the United burden of supplying wheat to developing countries on a noncommercial basis. In fiscal 1962-64, for example, our noncommercial excontrast

to

this

States carries

practically

ports

13.5

totaled

trade

position,

the entire

million

tons;

Canada’s,

a

is

The United

case in point.

States supplied

India with over 30 million tons of wheat and wheat flour

on

government program basis from the start of P.L. 480 in 1954 to July I, 1965. Though India was a part of the British Empire in the past and is still a member of the Commonwealth, wheat contributions by Canada, Australia, and the United Kingdom have been minor in comparison with that of the United States and with India’s overwhelma



international

markets.

And

the concern

in

international

quarters after the defeat of the U.S. wheat referendum in

1963 confirms the nearly universal realization that a free wheat market in the United States would have serious implications for all participants in the international wheat market.

WORLD CROPS AND MARKETS INDEX Cotton 15

Mexico To Subsidize Cotton Producers

Fats, Oilseeds,

12

12 13 13 13

14

U.S.

countries.

trade position

in

In 1962-64, Japan



foreign the

No.

markets varies by 1

U.S. wheat mar-

took more than a fourth of the U.S. wheat exported commercially, and relied on the United States for about ket

program encompassing acreage and production restraints, stocking, sales under government programs, and price supports. All these have an important beneficial influence on stabilizing prices and supplies in

and Oils

Record Year for Japanese Soybean Imports U.S. Trade in Oils and Oilseeds Hits New High in 1965 FEO Fishmeal Production and Exports Decline

1965

Is

Peru Imposes Fishing Limitations 1965 U.S. Tallow and Grease Exports

Down

Dairy and Poultry

ing needs.

The

overlooked the fact that subsidies and quotas are

integral parts of the larger

100,000; and

Australia’s, 50,000.'

India

compared with Canada's one-third. The United States has often been criticized by other countries for using export subsidies and import quotas in carrying out its wheat program. Such criticisms have gen-

its wheat purchases. The United Kingdom took only 4 percent of the commercial U.S. exports; the U.S. share of that market was only 6 percent compared with

half of

French Butter Exports Decline

Fruits, Vegetables,

15 15

and Nuts

Netherlands Expands Use of Hop Extract Mozambique Has Short Cashew Crop j

Grain and Feed Division 15

Peru’s Feed Production Forecast Higher

Livestock and 14

Meat

U.S. Lard Exports

Down Sharply

in

1965

Canada. Most of Canada’s and Australia’s to Mainland China. Page 16

credit

sales

were

15

Ontario Concludes Flue-cured Auctions

Sugar and Tropical Products 14 14 14 15

i I

;

| |f

Tobacco 1 International Wheat Commission. Review of World Wheat Situation, 1963/64 and 1964/65. Quantities shown do not include sales for credit, amounting to 700,000 tons for the United States, 1.7 million for Australia, and 2.5 million for



'

Ecuador Produces Record Pyrethrum Crop Ceylon’s Tea Crop Breaks Record

Antigua Sugar Production at Low Level Kenya’s Tea Crop Down Slightly

Foreign Agriculture