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. T > pq ^ jr{. Foreign ag...

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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

T

>

pq ^

jr{.

Foreign agriculture June

jUlldML

8,

1970

ASHIttJlith-L t

JUH 22 CCMEUI

Farm Output Markets

in

in

$£««

Western Europe

Malaysia and Singapore Foreign Agricultural Service U.S. DEPARTMENT

OF AGRICULTURE

foreign agriculture •

VOL. VIII



No. 23

June

8,

High Farm Outpu:

1970

A

By



REED

E.

FRIEND

Foreign Regional Analysis Division

'

Economic Research Service In this issue:

High Farm Output

2

in

Continue

Western Europe To By Reed E. Friend

Sharp Decline in Australia’s 1969 Sugar Production

5

10

EC

6

Subsidizing

Cows

Slaughter of 290,460 Milk By William Roenigk

Agricultural production in Western Europe a high level during 1969, although

Trade Figures Show Yugoslavia’s Baby Beef Supply Short

cate continued high production in 1970, with

Agricultural

Loans Aid World Production,

Marketing Singapore

at

little

change in

Production of wheat

—showed a



a major surplus item in

duction of potatoes and sugarbeets. slightly,

many

of the

significant decrease in 1969; so did pro-



is

Production of milk

—an-

reported to have decreased

along with that of pork. Production of beef and veal

Increase

Cotton

meat and

eggs.

But feedgrain production reached a record

high.

12

Singapore: Mini Island

14

Warm Welcome

for

—Maxi Market

U.S. Frozen Foods on

Display at Tokyo Trade Center 15

remained

held stable, and a moderate increase occurred for poultry

and

Malaysia Imports

1

somewhat from

U.S. agricultural exports to the area.

other persistent area surplus 9

declined

the record achieved the previous year. Current prospects indi-

countries 8

it



includes 17 countries Austria, Belgium, Denmark, Finland, France, West Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United

Crops and Markets Shorts

Kingdom.

This week’s cover:

These Austrian cows are oblivious of the dairy surpluses that continue to plague Western Europe’s farmers. Although the EC countries have the largest overproduction, surpluses are also a problem in Austria, Ireland, Sweden, and Finland. For a report on agricultural production in Western Europe see article beginning this page.

Clifford

M. Hardin, Secretary of Agriculture

Clarence D. Palmby, Assistant Secretary for International Affairs

Raymond

A.

and Commodity Programs

Ioanes,

Administrator,

Foreign

Agri-

cultural Service Editorial Staff:

Janet F. Beal; Assistant Editors:

Associate Editor:

Ann

L. Barr, Margaret A. Weekes, Marcellus P. Murphy, Jane V. Foster, Katherine Janka.

Faith Payne,

Advisory Board:

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

M. West, Joseph W.

Willett.

Use of funds for printing Foreign Agriculture has been approved by the Director of the Bureau of the Budget (May 1, 1969). Yearly subscription rate, $10.00 domestic, $13.00 foreign; single copies 20 cents. Order from Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. Contents of this magazine may be reprinted freely. Use of commercial and trade names does not imply approval or constitute endorsement by USDA or Foreign Agricultural Service.

Page 2

Foreign Agriculture



<

Western Europe To Continue

Ii

Wheat and

dairy surpluses persist

cultural

Although Western Europe as a whole is a grain deficit area, many countries in the region produce a surplus of soft wheat. The problem is most serious in the European Community (EC), which accounts for two-thirds of Western Europe’s wheat production and which had soft wheat stocks estimated about 10 million tons as of August 1, 1969, compared with about 7 million tons a year earlier. Other countries with soft at

wheat surpluses include Austria, Finland, Greece, and Spain. Wheat surpluses have resulted in large part from favorable government price policies without production restrictions.

Much

is

used

in livestock feed

income

in

Western Europe, milk production employs

who are able to use family labor to achieve relatively high income per acre of land. This situation makes politically unpalatable any decision to curb surpluses small

farmers

by lowering milk being taken to surpluses.

although some other measures are

to dispose of these measures include subsidies to enslaughtering and the nonmarketing of milk; to

In the

courage cow

prices,

dampen milk production and

EC

increase the consumption of cold storage butter; and to stimuuse of nonfat dry milk and butter in calf, pig, and

late greater

poultry feeds.

or exFeedgrain prices are presently being increased in an attempt to encourage farmers to plant more feedgrain and less wheat. As with wheat, the EC has the largest dairy surplus in Western Europe. On January 1, 1970, EC stocks of butter totaled 345,000 tons; and nonfat dry milk stocks had climbed

Declines in agricultural production in 1969 were more pronounced in Sweden and Norway than in other Western European countries. The reduced output centered primarily in grain and potato production in both countries and in sugarbeet production in Sweden. Some of the other countries ex-

to 340,000 tons. Dairy surpluses also exist in Austria, Ireland, Sweden, and Finland. An extremely important source of agri-

periencing much lesser declines in agricultural output were Belgium-Luxembourg, France, West Germany, Denmark, and

ported

I

of the surplus wheat

many

—both requiring heavy

Production vories by country

subsidization.

Portugal. All of these countries evidenced

some

decline in

grain production.

The most notable increases in farm production occurred in Greece and the Netherlands, for grain and meat, including poultry (and for milk in the Netherlands only). Farm production in Italy, Spain, and the United Kingdom experienced little change from the 1968 levels. Grain and meat production

Western Europe’s mated at 120 million

total

grain production for 1969

tons,

compared with

Western Europe's growing farm production. Far harvesting corn in northern France. Above left, Italian

tomato processing plant. Lower

modern

livestock facilities in

women

transplant seedlings in a tobacco

is

esti-

the record 121 mil-

left,

left,

Denmark. Below, Greek field.

Page 3

produced

lion tons

—down

The decrease

in 1968.

in



wheat production

for 1969 are not yet available). Agricultural exports totaled

reflected both reduced about 5 percent from 1968 acreage and less favorable weather, but was largely offset by

increased feedgrain crops.

The output of

dominant feedgrain, increased

$10.4 billion

A

still

greater in-

crease was achieved in corn production, which reached a rec-

ord of 14 million tons.

Between 1968 and 1969 the Western European production little while pork production declined. Increased beef and veal output in most Western European notably West Germany, Portugal, Finland, and countries Italy was offset by decreases in France, the United Kingdom, and Denmark. Pork production declined slightly, largely owing to decreases in the French, West German, and Danish output. Poultry meat production in Western Europe has steadily of beef and veal changed

tries in

France, and

in

the

West Germany,

(CAP). As

agricultural policy

fibers as

many Western European

countries accounted for the

WESTERN EUROPE: PRODUCTION OF SELECTED AGRICULTURAL COMMODITIES

instability in the

tion of the

common

manmade

EC

EC in 1969 (including devaluaFrench franc and revaluation of the German mark) led to emergency trade measures which set back its Monetary

towards greater use of

Imports of fruit and vegetables in 1968 were below both 1966 and 1967 levels; while the value of coffee, tea, cocoa, and spice imports continued to rise. Meat and meat preparations imported in 1968 were slightly below the level of a year earlier, but slightly above their 1966 level. Major agricultural products exported by Western Europe include fruit and vegetables, meat and meat products, grain

Italy.

Setbacks and progress

shift

decrease in natural fiber imports.

has expanded rapidly in the

Broiler production

1969.

Netherlands, Spain, the United Kingdom,

level.

well as the stagnation or even deterioration of the textile indus-

increased in recent years, climbing to a record 2.7 million tons in

The

imports.





1967

and meat preparations; natural fibers (including cotton); and coffee, tea, cocoa, and spices are among the major agricultural products imported by Western Europe. Between 1966 and 1968, imports of grain and grain preparations declined by onetenth of $318 million, while imports of all natural fibers decreased by one-sixth or nearly $400 million. Increased domestic production was largely responsible for the decline in grain

barley, the area’s

to nearly 39 million tons, with

several countries producing record crops.

— almost 6 percent above the

Fruit and vegetables; cereals and cereal preparations; meat

Average

a result of the devalu-

Commodity

1960-64

1966

1965

1967

1969

1968

1

ation of the franc, import subsidies and export taxes are being

applied to

number of

a

agricultural

Mil. metric

commodities through

August 1971 to equalize French and Community prices. The EC has been unable to agree on a large-scale program for restructuring its agriculture. Although agreement has been reached on the future financing of the CAP, no limit has been placed on its burgeoning costs. However, the EC is expected to be completely self-financed (independent of direct state contributions) at

June of

1,

Barley

25.2

30.3

31.9

8.5

9.0

10.3

10.6

12.4

13.8

71.9

60.5

61.7

66.3

63.3

56.2

Potatoes Sugarbeets

member

EC

47.1

37.4

57.1

59.8

72.2

69.3

5.7

5.5

61.8 6.0

68.5

Beef and veal

6.3

6.5

6.5

Pork

6.7

7.5

7.7

7.9

8.3

8.2

7

.7

.8

.8

.7

.7

1.5

2.0

2.3

2.4

2.5

2.7

102.6

107.7

109.8

112.2

3.6

3.8

3.9

4.1

Mutton and lamb Poultry meat

this year.

118.3

Mil. Mil. metric metric tons tons 120.6 120.1 47.6 45.3 37.8 38.9

Wheat

grains

Corn

1978. Negotiations aimed

Mil. metric tons

95.9 39.0

All

membership to include the United Kingdom, Norway, and Denmark are scheduled to start in late

expanding

Ireland,

by January

tons

Mil. Mil. metric metric tons tons 102.6 105.5 45.3 39.9

Milk, cow’s

Eggs

114.2 114.0 4.16 4.23

imports stabilize; exports advance 1

Western Europe’s agricultural imports totaled nearly $22 billion in 1968, about equal to the 1967 level (aggregate data

Preliminary.



The Agricultural Situation in Western Europe Review of 1969 and Outlook for 1970, Economic Research Service, USDA, 1970.

SELECTED AGRICULTURAL EXPORTS AND IMPORTS OF WESTERN EUROPE 1966

1967

1968

1966

1967

1968

1966

1967

1968

Mil.

Mil.

Mil.

Mil.

Mil.

Mil.

Mil.

Mil.

Mil.

dol.

dol.

dol.

dol.

dol.

dol.

dol.

dol.

dol.

414.8

476.0

536.4

1,429.6

1,539.1

1,636.5

1,194.8

1,289.2

1,335.9

1,127.3

1,387.2

1,798.7

1,200.0 1,878.4

302.9 331.9 390.6 138.4 389.3 44.7 637.4

371.4 390.9 413.1 164.6 349.7 40.6 562.2

427.8 404.8 448.5

1,172.8

1,211.3

1,276.1

2,747.9 2,407.7

9,373.2

9,886.5

10,442.7

22,743.7

Live animals

Meat and meat preparations Dairy products and eggs Cereal and cereal preparations Fruit and vegetables Coffee, tea, cocoa, spices, etc

Animal feed Wine Tobacco, unmanufactured Hides and skins Oilseeds, oilnuts, and oil kernels Natural fibers Others Total

The Agrkuhuml^Situation

Page 4

in

Imports from U.S.

Total imports

Exports

Item

...

Western

Europe—Review

1,883.6

130.3 383.4

42.0 550.2

of 1969

613.6 2,413.6 1,212.5 3,063.8 3,714.8 1,950.4 1,286.6

496.8 737.4 880.8 1,217.8

648.2 2,445.7

713.2 2,426.0

1,256.4

1,239.0 2,746.2 3,682.7 2,175.3 1,265.6 437.9 766.8 768.9

2,954.3

3,766.8 2,033.0 1,240.2 422.1 781.1

10.9

9.2

9.6

97.2 15.0 1,228.9 223.8

77.8

70.9

4.3

2.4

811.1 209.3

796.9 167.9

7.1

6.6

5.6

257.0

249.1

271.4

C)

C)

C)

1,141.1

352.4 71.6 500.1

370.4 51.6 517.8

2,329.9

2,348.8 2,272.5

146.6 143.1

149.9 119.7

372.1 59.5 511.4 130.4 101.5

22,156.9

21,984.0

3,053.7

2,576.8

2,499.6

728.6 1,151.0 2,399.6

and Outlook for 1970, Economic Research

Service,

USDA,

April 1970.

Foreign Agriculture

European

and grain products, and dairy products. France and the Neth-

the type of cotton required by

erlands are the leading exporters of agricultural products, followed by Denmark and Italy. Much of the recent increase in

expected to increase modestly during 1970.

Western Europe’s agricultural exports is attributable to larger exports of grain, livestock, and livestock products. Wheat accounts for about half of Western Europe’s grain exports, and

many Western European

France

is

Owing to the continual expansion of livestock and poultry production in and meal

countries, exports of oilseeds, cake,



especially soybean products

quite favorable.



to the region appear

U.S. variety meats and specialty products

should also continue to be in strong

the leading grain exporter.

millers; but they are

demand

in

Western

Europe during 1970. Implications for the United States

Imports of U.S. farm products by Western Europe peaked at $3.1 billion in 1966 but declined to approximately $2.5 billion in 1967 and 1968. A further decline occurred in 1969, when U.S. agricultural exports to Western Europe decreased

by $265 million. Wheat, feedgrains, fruit and vegetables, and cotton from the United States have experienced major declines, while U.S. exports of tobacco and oilseeds have re-

mained

at a high level. Prospects for Western European feedgrain imports in 1970 are not bright for the United States. The record feedgrain

crop in 1969 and the increased use of soft wheat for feed have reduced the import requirements of the region. U.S. exprimarily corn to Western Europe may ports of feedgrains





also face increased competition

from

other, substantial sup-

during 1970.

pliers

U.S. cotton exports to Western Europe dropped sharply in 1969, owing to increased competition and limited supplies of

Sharp Decline Australia, the

in Australia's

most extensively mechanized sugar-producing

output during 1969. Unfavorable growing conditions, marked in

many

areas, resulted in the country’s

total Australian

available,

Western Europe

experience some decline in small grain production in

A

wet

and a

wet spring have curtailed where the area sown to wheat is reported at about 10 percent below the 1969 total. Any decrease in the wheat and barley output of France^ however, will be partly offset by increased plantings of corn. Grain production in Western Europe as a whole will largely depend on weather conditions for the remaining part 1970.

fall

late, cold,

the planting of small grains



particularly in France,

of the season.

Production of beef, veal, and pork may expand moderately Egg output is expected to remain stable, but broiler production should continue to expand. Milk production in 1970 may remain near the 1 14 million tons produced in recent years, with surplus production of butter and nonfat dry milk

in 1970.

continuing to persist.

world price movements

will

prompt higher

cane harvest in 1969 was 15.53 million

levels of exports in

the future.

Through preferential arrangements for Commonwealth Canada and New Zealand have become important mar-

sugar,

kets for Australian sugar producers. In

lowest sugarcane harvest since 1965.

The

now

Based on the limited data

may

1969 Sugar Production

country in the world, suffered a sharp decline in raw sugar

by severe drought

1970 production outlook

went

1969, 159,000 tons

Canada and 101,000 tons went

to

and

to

New

Zealand.

Hong Kong purchased

long tons, 16 percent below the record crop of 18.41 million

Japan,

1968. South Queensland, the area most by drought, produced only 1.96 million tons of cane, compared to 3.40 million tons in 1968. A cane crop of 835,224 tons in 1969 was reported for New South Wales which harvested a record crop of 1.17 million tons in 1966. With the exception of the Burdekin area in eastern Australia, the sugar content of the cane crop was generally low, and in some areas extremely low. In Queensland, the average commercial sugar content was the lowest in the past 10 years except for 1964. Low sugar content, together with reduced cane production, brought about an Australian production of raw sugar totaling only 2.12 million tons in 1969 20 percent below the 1968 level.

416,000, 150,000, 69,000, and 10,000 tons respectively.

tons harvested in

Malaysia,

Singapore,

affected



Molasses production

The Australian production of molasses during

the 1969-70

season was 433,000 tons, slightly below the 1968-69 level of

454,000 tons. Rains late in the season helped offset the earlier drought and increased the molasses output. The United States was the main destination of Australian



molasses exports in 1969, purchasing 101,095 tons 63 percent of the total 160,232 tons exported. Other significant cus-

Kingdom and Japan. About 85,000 tons of molasses were used

tomers were the United

as stockfeed in

1969, a substantial increase over 1968. This use

is

expected

to increase as the facilities available in Australia for the dis-

Domestic consumption and exports Australia’s domestic sugar

constant fruit

—about 650,000

tribution of molasses

consumption has remained

tons annually. This varies

crops are good and the

demand

when

fairly

local

for sugar for canning

increases.

International Sugar Agreement which came into force 1969 restricted Australia’s sugar exports somewhat by limiting the exports to free markets at 90 percent of the basic export tonnage. Australia exported 1.40 million tons of sugar in 1969, a considerable decline from the 1968 export level of 2.05 million tons. However, the sugar industry is hopeful that

The

in

June

8,

1970

and the manufacture of molasses mixture

improve.

The Australian sugar industry expects 1970 production of raw sugar to total about 2.2 million tons, slightly above the production level of 1969. However, the 1970 crop still faces several months of unpredictable weather before harvest begins. Recent reports show that growing conditions have been favorable in most of Queensland, although dry weather has slowed cane development somewhat in South Queensland. Based on dispatch from



the Office of the Agricultural Attache, Canberra

Page 5

effort to curb dairy surplys

In

EC Subsidizing Slaughter of 290,500 Milk Cows By

WILLIAM ROENIGK

Foreign Regional Analysis Division

Economic Research Service The European Community Commission

announced 1970 of 290,460 dairy cows and the retirement from milk production of an that the

EC

recently

will subsidize the slaughter in

additional 129,811.

gram announced

in

The subsidization plan is part December 1969, to reduce the

of a prodairy sur-

plus by encouraging farmers to slaughter their entire dairy 1

from milk to beef production. The initial goal was 250,000 dairy cows under each of the two measures. The number of cows subsidized for slaughter in 1970 exceeds the initial goal by 16 percent, but the number of cows subsidized for “nonmarketing of milk” dropped under the herds, or to switch

planned number by 48 percent. The more than 290,000 cows to be slaughtered during the first half of 1970 amount only to about 1.3 percent of the EC’s total dairy herd. Under the nonmarketing of milk scheme, about 0.6 percent of the EC dairy herd will be withdrawn from milk production. Thus, the two measures together account for less than 2 percent of the Community’s dairy herd.

gram

The

EC

Commission views the

as “disappointing,” since

it

results of the pro-

will lead to

no

significant

reduction in the milk surplus.

About 65,000 farmers will receive slaughter subsidies; only an average of 4.5 cows will be moved to slaughter by each of these farmers. Under the milk nonmarketing measure, about 7,000 dairymen will receive subsidy payments; each will re-

move an average

of 19.2 cows from milk production.

Of

the

under the EC’s subsidized program, 54 percent are from herds ranging from two to five cows. About 40 percent are from herds of from six to 10 cows; the rest of the cows are from herds numbering more than 10 cows, although subsidies under this measure are limited to $2,000 per farm (10 cows at $200 per cow). Small dairy

cows

to be slaughtered

—owning

farmers

two

fourths of the farmers their cows.

the

EC

is

to five

cows

who have

—make

up almost

the total

EC

dairy herd,

of

(The average number of cows per farm throughout

— —

Data on the subsidy for nonmarketing of milk the measare only ure complementary to the EC slaughter subsidy fragmentary. Dairy producers with more than 10 cows could receive a subsidy of up to $2,000 if they agreed to cease delivery or marketing of milk and milk products and maintain

all

from about 7,000 farmers and

The slaughter subsidy will have its greatest impact in West Germany, where a total of 168,200 cows, or almost 3 percent of German dairy herds, will be slaughtered. Although West Germany accounts for only slightly more than 25 percent of

Page 6

permit

number of cows

percent.

agreed to

many

of the small producers to leave the

EC

Commission believes that about West German subsidies were granted to producers who had already planned to stop milking production soon, and dairying business.

The

half of the

EC:

COWS SUBSIDIZED FOR SLAUGHTER, SPRING BY HERD SIZE

Country

France

West Germany

1970,

Total

Herds of

Herds of

Herds of

number

2-5

6-10

10 or more

of cows

cows

cows

cows

1,000

1,000

1,000

1,000

head

head

head

head

49.5 168.2

25.4 100.8

19.1

5.0

61.1

6.3

Italy

33.2

12.7

14.6

5.9

Netherlands

14.9

3.9

8.4

2.6

Belgium

23.8

12.1

9.8

1.9

.9

.5

.3

.1

290.5

155.4

113.3

21.8

Luxembourg Total

1 See “EC Takes Further Measures to Diminish Milk Surplus,” Foreign Agriculture, Nov. 17, 1969.

—58

West Germany’s cows are in herds of from two to five cows, but almost 60 percent of the cows subsidized for slaughter will come from herds of this size. The subsidy program

cover only about 130,000 cows.

Impact by country

the largest

of the cows in their dairy herd. One-fourth of

their herds at least at their original sizes for beef output. Appli-

cations have been received

is

More than 40,000 West German farmers have slaughter

threeall

share of the total

its

subsidized for slaughter

will, in effect,

agreed to slaughter

estimated to be less than five.)

A herd of French Friesian cattle (Francaise Frisonne pie noir), in Petit Verly, Aisne Department, 1968. French farmers use these cattle both for meat and milk.

EC

“Europe,” Agence Internationale d’Information pour Apr. 27, 1970.

la Presse.

Foreign Agriculture

that the



program

only hasten the process of retirement by

will

tranquil pasture scene in the dairy region of

Schleswig-Holstein in North Germany.

About 17 percent of the cows to be slaughtered under the EC subsidy program are in France. Although this country has

herds like these that will be affected by the

EC dairy herd 44 percent a stipulaby the French Government that farmers must be at least 55 years of age to qualify for the subsidy probably restricted participation. Although only one-eighth of the cows in France

fourths of the subsidies were granted to farms in the northern



the largest share of the



tion

cows or less, more than half the cows subslaughter are from herds of this size.

It is

dairy

EC programs.

Provinces of the country. Farms there are generally smaller

than

in the

southern area.

sidized for slaughter are

More than

one-half of the cows sub-

from herds of

some of

five

or

less,

and

in-

these farmers are converting from

are in herds of 5

dications are that

sidized for

dairying to calf-fattening operations, or to pig or poultry

Most of the Italian applications for the slaughter subsidy came from low-income farmers in south central Italy and the islands who want to abandon dairying on their farms. These

production.

areas account for roughly one-fifth of the total dairy herd in

Netherlands

dairy belt of northern Italy, where herds are of cows selected for slaughter totaled only about

larger herds

Italy. In the

larger size, [1

A

about 6 months.

3,000. Less than

1

percent of the country’s dairy herd will be

More than

four-fifths of the

Dutch dairy farms have more

than 10 cows. Thus, the cows subsidized for slaughter



0.8 percent of the herd

—tended

to

in the

be from

compared with the rest of the EC. Numerous number of Dutch farmers leaving

factors will tend to limit the

dairying or converting their operation to beef production.

slaughtered under the subsidized program. Italy accounts for

Among

roughly 8 percent of the cows subsidized for slaughter though 16 percent of the EC’s dairy herd is located there.

al-

quality roughage, favorable milk prices, high milk yields per

was

cow, and high calf prices (for veal or herd replacement). Luxembourg accounts for only a small fraction of dairying

In Belgium, where

more than 2 percent of

the herd

approved for slaughter under the subsidy program, three-

these are the availability of large

amounts of good

EC. However, more than 35 percent of this country’s income comes from dairying. The slaughter subsidies tended to hasten the exit from milk production of older farmers since 60 percent of the applicants had planned to retire from dairying within 2 years anyhow. This measure also encouraged some part-time producers to abandon milk proin the

agricultural

EC:

TOTAL MILK COW NUMBERS, AND NUMBER

SUBSIDIZED FOR SLAUGHTER, SPRING Number

Percentage

milk

subsidized for slaughter

of country’s

cows

Country

France Italy

Netherlands Belgium

Luxembourg

1

1

EC

herd

1,000

1,000

head

head

Percent

9,700.0 5,848.3 3,560.0 1,903.0 1,075.0 61.4

West Germany

Total

1970

Number of

22,147.7

—from

49.5

0.5

168.2

2.9

33.2

0.9

14.9

0.8

23.8

2

2.2

0.9

1.5

290.5

1.3

attache reports, Foreign Agricultural Service, USDA. Rounded to nearest hundred. “Europe,” Agence Internationale d’Information pour la Presse. Apr. 27, 1970. Latest census figures 2

June

8,

1970

duction.

Probable

results

The two measures being implemented by the EC Community to

porarily reduce the dairy herd in the level.

It is

in the

tem-

the 1967

expected that improved breeding of dairy

along with expected expansions herds,

will

cattle,

French and Dutch dairy

would cause any decline in milk production to be To some extent, applicants were older farmers or

short-lived.

who were merely

taking advantage of the subsiplanned retirement. In fact, annual the weather is likely to have more of an impact

other farmers

dies to hasten an already

variation in

on milk output than

will the

EC

policy measures.

Page 7

Pact with EC calls for annual shipment of approximately 52,000 tons of baby beef , but 1969 shipments to EC were only 45,347 tons. Will first year of agreement bring problems in meeting demand?

Trade Figures Show Yugoslavia's Baby Beef Supply Short Yugoslavia’s

new

3-year trade pact with the European

munity (EC) went into

May

Com-

Yugoslavia

and already there are indications that the country may experience difficulty in 1970 1 in taking full advantage of its benefits. The pact, which reduces import levies on certain quantities of Yugoslav baby

EC

beef exported into

effect

countries,

is

1,

its

ing the required quantities. (Yugoslav baby beef

American yearling

is

supply-

similar to

beef.)

Agreement reduces import

be possible for Yugoslavia to reach the 60,000-ton by making some adjustments in its planning. In the

slaughter weights of Yugoslav heifers and bull calves have tended to average near the minimum weights acceptable for baby beef (800-875 lb.). A longer feeding period could bring export baby beef animals to slaughter weights averaging 1,000 pounds for heifers and 1,100 pounds for bull calves. There is plenty of com on hand; it is only necessary to add 175 pounds per head to baby beef animals destined for the EC to bring total exports to 55,000-60,000 metric tons on a carcass past,

livestock indus-

may have problems

But the industry

try in particular.

planning

may

ceiling

expected to benefit Yugo-

balance of payments in general and

slavia’s

It

may change

levies

<

4

,

weight basis.

The agreement reduces as

much

as

EC

25 percent for

its

levies

on Yugoslav baby beef by The amount of

3-year duration.

levy reduction varies according to the time of the year, the

EC, and whether the exports are sent to an EC-member nation during

relationship of several categories of prices within the

the

first

The

made

2 years of the pact or in

its last

year.

levy reductions apply to baby beef shipments to the in the

EC

period 1970-72, but the annual total of such

shipments (to which these duty concessions apply) is not allowed to exceed by more than 15 percent the average of

a share.

shipments recorded between 1967-69. Complete data to estab-

Baby beef

lish the levels for the

announced. The

3-year base period have not yet been

statistics that are

currently available indicate

that this base will be approximately 52,000 metric tons.

creasing this figure by the trade pact

means

2

In-

15 percent allowable under the

that Yugoslavia will receive a reduced levy

on annual exports to EC countries of 60,000 metric tons of baby beef. (The pact does not limit Yugoslavia’s yearly exports into the EC to that figure; it merely means that shipments exceeding that weight will be subject to the full duty.)

Baby beef exports dropped

in

1

969

The problem facing Yugoslavia

a rapid selloff of lightweight

purchasers the following year.

Yugoslav herds are

Of

still

that in

feeder-type

As

be able to divert some of

—a

cattle

to

Italian

a result of these

sales,

all

cus3

tomers in 1969, Yugoslav trade data show that 45,347 tons were sold to EC countries in that year. This amount repre-

one country, Italy. The amount exported to all EC countries in 1969 was 6,770 tons less than the average for 1967-69 and 14,587 tons less than the 59,934 ceiling that can be approximated by using the trade statistics available. Thus, at first glance it would seem that Yugoslavia will have trouble meet-

demands of non-EC countries while at the same time shipping into the Community the approximately 60,000 tons of baby beef allowed by the agreement.

1

specialty export

Yugoslavia’s baby beef

is

of Simenthal stock.

gories of this breed qualify as

Two

cate-

baby beef under the terms of

the agreement: heifers and bull calves in the age range 12-18

months (not yet having

their

second teeth). They must dress

out at not less than 58 percent of live weight. For male animals (bull calves), the slaughter weight must be 875-1,125

pounds; for females, 800-1,050 pounds. Carcasses must weigh as follows: Whole, 450-675 pounds; halves, 225-337.5 pounds;

and hindquarters, 99.2-149.9 pounds, or 83.7-134.4 pounds, depending of the method of forequarters, 112.5-170 pounds;

Yugoslavia’s baby beef large

is

government farms and

a specialty product of several is

raised expressly for export.

Only 12-15 percent is consumed in the country, mostly in expensive hotels and restaurants catering to the tourist trade. It is estimated that about 400,000 head of young Simenthal stock are produced annually, 350,000 for export. The beef resembles U.S. yearling beef in that the feeding practices and

months of age or less. Yugoslav baby beef is pink in hue and shows less fat than American yearling beef. Based on a dispatch from Frank W. Ehman



U.S. Agricultural Attache, Belgrade

sented about 56 percent of Yugoslavia’s total baby beef exports to all destinations; 95.8 percent of these exports went to

Page 8

its

countries.

slaughter weights are similar to those for U.S. animals 12

down somewhat.

the 80,000 metric tons of baby beef exported to

ing the

EC

preparation.

1969 its exports of baby beef were down. Exports to all markets dropped from approximately 97,600 tons in 1967 and 1968, to 80,000 tons in 1969, a decline of 17 percent. This drop in exports grew out of two factors: Adverse market conditions in 1968, and is

may

baby beef from Over the 1967-69 period, 44 percent of its baby beef exports went to countries other than the EC. Switching only a few percent could easily add considerable quantities to the lucrative EC market. Yugoslav agricultural planners may also develop other plans in order to ship 60,000 tons of baby beef to EC markets and will not deprive any other market of too great Yugoslavia

other world markets for shipment into

1

in Foreign Agriculture’s issue of presents additional data subsequently

The agreement was reviewed

May

4,

1970.

This

article

received. 2 The 1967-69 base given above is calculated on annual average shipments to the EC of about 42,800 metric tons of chilled carexports. cass meat, plus the meat equivalent of the live-animal These averaged 9,300 metric tons during the 3-year base period. of 3 Totals given are based on actual chilled carcass weights of exported live heifer and bull calves, plus the meat equivalent

animals.

Foreign Agriculture

.,

Agricultural Loans The

Aid World Production, Marketing

largest tile drainage operation ever undertaken, road-

building,

some of

irrigation,

rearranging of rice paddies

the projects for



these

are

which countries around the world are

receiving agricultural development loans this year.

rural areas are the goals of an

for International

agreement between the Agency Development (AID) and the Government

of Colombia for the release of local currency funds.

The

With $26 million in credit assistance from the International Development Association (IDA), an affiliate of the World Bank, the United Arab Republic (UAR) will be able to install

agreement provides for agricultural programs which will use about one-fourth of the more than $75 million in Colombian pesos generated by current U.S. aid programs and sales of U.S. agricultural commodities for local currency. The major agricultural programs will be undertaken by Colombia’s Agricultural Reform Agency in the fields of super-

million acres of irrigated land in the

vised credit, technical assistance, irrigation, and land distribu-

drainage

Tile

tile

the

in

drainage for nearly

UAR

1

The Colombian

Nile Delta, making possible an increase of about 20 percent in

tion.

crop production in the area. This will lead to substantially

ects to develop agricultural education, extension,

higher incomes for about 250,000 farm families and improve

payments by increasing earnings from and reducing the need for food imports. Agricultural production, concentrated in the Nile Valley and only 4 percent of the country’s land area its Delta employs more than half the population and provides about 80 percent the country’s balance of agricultural exports





of exports. But, despite increases in production in the past

few years, the UAR still imports over $200 million worth of food products annually. Two major constraints to increased production in irrigated lands are waterlogging and salinity. The most effective way to solve these problems has been found to be tile drainage, which removes excess soil moisture through concrete or clay pipes buried horizontally below the crop root zone, does not require permanent removal of land from crop production, and needs only minor maintenance. On the 373,000 acres in the Nile Delta where tile drainage has already been installed, yields of the principal crops rice, cotton, wheat, and maize have increased substantially.





The current

project will be carried out over a period of

6 V2 years at a total cost of $147 million.

The IDA

credit will

be for 50 years, including 10 years of grace, and will cover the foreign exchange costs; local currency expenditures will be

met by the

UAR government. Mexico

Irrigation in

works benefiting 30,500 farm families on 99,000 acres in seven States of northeast Mexico. The project will also promote agricultural and livestock development and will provide facilities for supplying water for household use and the water-

The

The

total cost is

and research, and the Livestock Bank will promote slaughterhouse development and make loans to livestock and dairy producers. Development of Colombia’s natural resources as well as tourism potential will be assisted by projects in forest utilization and conservation, fish production, and national parks. Rural development is also the objective of another AID loan $23 million to the Government of Guatemala for a



joint 5-year Alliance for Progress

program. This $ 143-million development program is designed to improve the economic and social well-being of the small farmers of the agricultural

Guatemalan highlands. Much of Guatemala’s rural population will receive some form of assistance and, as more vegetables, fruits, and handicrafts become available, industry and foreign trade will benefit indirectly from the loan. Guatemala will contribute more than $20 million to the program, and contributions are also expected from the InterAmerican Development Bank and the Central American Bank for Economic Integration. Two major areas of the program are a $ 12.3-million basic grains project and a diversification project. The grains project, of which AID will finance approximately two-thirds, is designed to modernize production and marketing of com, beans, rice, wheat, and sorghum through improved seed, use of fertilizer, and efficient storage and price stabilization systems.

The Inter-American Development Bank is lending $26 million to the Government of Mexico to build small irrigation

ing of cattle.

Agricultural Institute will conduct proj-

$53.6 million.

In the diversification project, $22.5 million will be invested to provide credit

tables, plantain, citrus, sesame,

flowers.

project should enable farmers to increase their pro-

improve their farming techniques, and increase their incomes. Average farm income in the region, only 76.2 percent of the national average, ranges from $400 per year in the largest city, Monterrey, to an average of $20 per year in 40 percent of the region.

Maximum utilization of the region’s natural resources will be achieved through comprehensive water-use studies and the rehabilitation or construction of 665 additional small-scale irrigation facilities.

and economically, with the rest of the nation. for 25 years at 3 percent interest and will be guaranteed by the Government of Mexico.

deciduous

fruits,

avocado, and

significance, these crops appear to

and

Guatemala

as well as elsewhere in Central

in other areas of the world.

lo-

America

AID’s share of the financing

of this activity comes to $8.5 million.

Needed extension

services will

be provided through the

community leaders, cooperative directors, and other technical personnel trained to assume leadership roles in the highland areas. During the training of extension

agents, rural

stages of this program, AID will provide $5.5 million and the Guatemalan Government $3.3 million. initial

The loan interest,

In addition, the project should help to integrate the north-

Not now of major

in-

—vege-

have production potential and good marketing prospects cally in

ductivity,

and technical assistance to encourage

creased production of seven previously low-yield crops

is

to be repaid over a 40-year period at 3 percent

with an

initial

10-year grace period at the rate of

2 percent.

east, socially

The loan

is

Rural development in Latin America

Greater farm output and a higher standard of living

June

8,

1970

in

Farm

credit in Iran

A

$6.5 million 16-year loan (4 years of grace) at 7 percent interest from the World Bank will assist the Iranian Government’s efforts to increase agricultural production by providing additional credit for

farm development.

It will

provide foreign

Page 9

exchange for a

which

$ 16-million

3-year lending program

under

farms

credits will be extended to operators of large

primarily for the production of oilseeds, dairy products, and

meat, which Iran

now

deciduous and citrus

imports in large quantities, and for

fruits,

consolidating small separated parcels of paddy land. AID’s assistance to Korea in this area is expected to help meet food needs and moderate price increases, earn and conserve foreign exchange, and increase farmers’ income.

which are important exports. Some

The loan

will

be repayable in dollars over 40 years, includ-

be available for crop preparation, packaging, and cold storage enterprises. As a result of the program, farm-

ing a 10-year grace period, with annual interest at 2 percent during the grace period and 3 percent for the remaining 30

ers will substantially increase their incomes.

years.

funds

will also

Although production

its

will

significant start

a

be relatively small, the program will

on agricultural lending

should appear rapidly; and,

sults

Korea

contribution to Iran’s total agricultural

initial

if

in

make

an area where

successful,

a

re-

can serve as

it

model for wider application.

is

also the recipient of a

IDA

million and an

World Bank loan of $40

$15 million, both to

credit of

assist in the

development program of the Korean National Railroad by covering the foreign exchange costs. Railroads handle nearly three-fourths of the freight traffic and nearly half the passen-

ger traffic of the country. Rice paddies, roads in

Korea

Korea has been authorized by AID to help finance the rearrangement of more than a million acres of paddy land to boost production of rice and other food

Textiles, farmers in Ethiopia

Also planned under the AID loan is the reclamation of approximately 665,000 acres of upland area by 1976. The Government of Korea will buy U.S. earthmoving machinery as well as maintenance and repair equipment for

share subscription of $168,000 equivalent to the Cotton

A

$ 10-million loan to

grains.

Korea’s

Development

Agricultural

Corporation,

which

is

The of the

a loan of $450,000 and a

also participate.

An IDA

Government of Ethiopia

credit to the

finance a project aimed at assisting farmers in the in

Korea

is

a successful current pro-

gram. Usable farmland and farmer productivity are increased

by reshaping and enlarging paddy

fields into

uniform

providing better access, improving irrigation

tracts,

facilities,

and

Com-

pany of Ethiopia, the country’s largest integrated cotton spinning and weaving mill, to increase production, largely of higher quality fabrics. Ethiopian and Japanese investors will

charged by the Ministry of Agriculture with carrying out rural

improvement projects. Paddy rearrangement

International Finance Corporation (IFC), an affiliate

World Bank, has made both

will help

Humera

by providing an all-season road to the market at Asmara, building a water supply system to serve 30,000 people, and establishing a demonstration farm. The credit is region

for $3.1 million.

Malaysia and Singapore Increase Cotton Imports Recent expansion of the textile industries in Malaysia and Singapore indicates favorable prospects for U.S. cotton exports to those small, but growing, hard currency markets. Cotton imports into the two countries have increased from 8,904

1969 Malaysian cotton fabric production totaled 30 million square yards, and Singapore’s production amounted to a quantity only

bales (480

slightly smaller.

lb.

24,575 bales

in

net)

in

1964-65 (year beginning July 1) to is expected

500 looms. Another 63,000 spindles Singapore’s expansion

1968-69, and continued growth

during the 1970’s. The upward trend in the region’s cotton imports continued during the first half of the current fiscal

when they reached almost 19,000 bales compared with 11,000 bales in the same period a year earlier.

year,

Mills in Malaysia

plans.

It

is

will

be added under

estimated that in

and Singapore usually buy raw cotton

who operate in that area, in Japan, who may have a financial interest Some Hong Kong representatives of U.S.

through Japanese associates

or in the United States, and in

some

mills.

exporters also

sell

cotton to these two countries. Transactions

are conducted through letters of credit or transit receipts at

Growing cotton market improving investment climate in Malaysia and Singapore has been a primary factor in spurring the establishment of a growing

oped through

on a 180-day basis. West Malaysia, cotton is being imported through the ports of Butterworth and Swettenham. The mills of Johore 8 to 10 percent interest rate

An

number of modem,

fully integrated mills, devel-

between foreign and

local entre-

the area’s textile industry

was bogged

joint ventures

In

State, in southern Malaysia, will

probably continue to import

cotton through Singapore. In order to maintain efficient mill operations, between 2

and

months’ supply of raw cotton

preneurs.

Not long ago,

down by

the growing nationalism of nearby countries and by

considered necessary. At current consumption rates, this would

the restrictiveness of local labor. In recent years, however, the

about to about 6,000 to 8,000 bales needed as operating stocks. Staple lengths of the cotton used in Malaysia range from 15/16 inch to 1-1/16 inches, and grade ranges from strict low

industry has begun to develop; and as the mills

become more

3

is

efficient, their growth rate is expected to increase through the development of new markets and the expansion of traditional ones. Industrial consumption of raw cotton has grown from about 8,000 bales in 1964-65 to an estimated 34,000 bales in

middling to good middling. The fineness (micronaire) is from 3.2 to 4.5 (which is considered in the generally desirable fineness range), and strength (pressley) is from 75,000 to 85,000

1969.

pounds per square

Currently there are 1 1 textile mills in West Malaysia which operate a total of 65,000 spindles and 2,500 looms. Plans for expansion call for an additional 75,000 spindles and 1,000

the coarser count of 10 to the finer count of 42. In Singapore

looms, although no timetable has been specified. Singapore has six textile mills which together operate 47,000 spindles and

Page 10

inch.

Yarn counts produced range from

from 15/16 inch to 1-1/8 inches staple and micronaire identical to that of the cotton used in Malaysia. Pressley is from 80,000 to 85,000 in Singapore, and the yarn counts produced are from 30 to 45.

the cotton used

is

length, with grade

Foreign Agriculture

1

1

Because of Singapore’s limited land area and a tropical is not conducive to the cultivation of cotton, it is not likely that cotton will be grown on a commercial scale in climate that

the region. Malaysia

and Singapore

will

depend on imported

While total U.S. cotton exports during the marketing year 1968-69 dropped to the low level of 2.8 million bales compared with an annual average of 4.4 million bales during the preceding 5 years, exports to Malaysia and Singapore in-

During 1968-69 the United States was the largest raw cotton to the region, accounting for 7,873 bales. Imports from the United States during the first half of the current fiscal year declined moderately from those of the same period last year. This reflects the increased supply/ price competition U.S. cotton is facing in most export markets this

creased.

supplier of

year. qualities

of raw cotton at

competitive prices should help insure the increased purchase of U.S. cotton by Malaysia and Singapore.

cotton

will

ports of cotton textiles in Singapore indicate that re-exports to

Indonesia and possibly other countries must be substantial.

cotton to support the expansion of their mills.

Adequate supplies of various

and colored fabrics imported mainly from Hong Kong, Japan, the Soviet Union, Mainland China, and Pakistan. The main destinations of Singapore’s fabric exports were the United Kingdom and the United States. The larger net imprinted,

Outlook for U.S. cotton exports

However,

this

consumption of manmade fibers in Malaysia and modest at present, but steadily growing. This is attributed to the use of manmade fibers in the manufacture of spun rayon yarn for export and the use of polyester fabrics blended with cotton for making shirts for both domestic and Industrial

Singapore

export markets.

Japanese viscose staple fibers and polyester fibers are the most popular manmade material in Malaysia and Singapore. Of the 1.7 million pounds of various manmade fibers imported by West Malaysia in 1968, Japanese fibers accounted for 1.3 million pounds. Singapore imported 6.9 million pounds of

manmade

By com-

parison, for example, Thailand has recently increased cotton

production sharply, and may have surplus supplies for export which could compete with U.S. cotton sales in Southeast Asia.

and exports

Textile imports

pounds.

Future expansion

Although

alternative sources. Also, U.S. export capabilities are affected

Pacific Ocean.

with Japanese fibers accounting for

fibers in 1968,

1.9 million

from

have to meet the increased competition

somewhat by the long haul across the

is

textile

processing

a

is

recent

development

in

Malaysia and Singapore, the local industries expect to meet more of the domestic fabric requirements in future years.

Owing

to low local wages, the recent installation of modern and machinery, and the help of international expertise, Malaysia and Singapore have reasonable hopes of competing effectively in the world market. Textile imports will probably

plants

decrease more rapidly than exports increase. Malaysia’s net imports of cotton fabrics averaged 86.5 million

square yards annually from

1964 through

1968.

The

bulk of the cotton fabric imports were woven, dyed, printed,

COTTON IMPORTS OF MALAYSIA AND SINGAPORE

and colored. Japan, Hong Kong, the Soviet Union, and Main-

Year beginning July

land China have been the main sources of fabrics for Malaysia. Australia,

New

Zealand, Canada, and the United States are

the primary destinations of Malaysia’s

essed fabrics. Also, Singapore

may

own

Bales

be a transit port for some Brazil

Net imports of cotton

fabrics into Singapore averaged 124.2

million square yards annually

from 1964 through 1968. The

bulk of these fabrics were woven bleached,

woven dyed,

MALAYSIA AND SINGAPORE: NET IMPORTS OF COTTON FABRICS 1964

1965

1966

1967

1968

Burma U.A.R

1,000

1,000

1,000

1,000

1,000

sq. yd.

sq. yd.

sq. yd.

sq. yd.

sq. yd.

India

Kenya Mexico South Africa

....

Pakistan

..

Tanzania United States

Exports

..

164,076 184,134 179,499 260,083 368,076 118,366 121,905 102,708 90,251 101,794

1

imports

.... ..

Malaysia: Imports

...

Exports

...

45,710

62,229

76,791

Bales are 480

One 111,153 116,269 100,175 18,706 6,468 13,104

81,532 14,373

1

Bales

1

1967

1968

1,143

2,726

6,318

75

80

37



168 126

355

457

476

2,716

2,478

2,945

— —

— — — 79 — 4,032 — 453

1

Bales

Bales

1

2,110

1,474

— — 42 —

— — —

2,296

201 303

2,240

3,864

— —

4,849

420 2,067



424

869

1,101

4,340

2,463

3,575

7,000

7,075

10,585

7,873

294

675

1,415

550

257

8,904

17,762

20,510

21,359

24,575

lb. net.

External Trade of Malaysia.

169,832 266,282

of the chief obstacles to the future expansion of the

88,886

textile industries in the

12,862

one another,

two countries

is

their competition with

as well as the competition they experience

from

well-established industries in other textile exporting countries.

Net imports

.. ....

104,685 103,165

81,469

67,159

76,024

Also, Indonesia, a principal textile outlet for these countries, is

Departments of Statistics, Singapore, Kuala Lumpur, Kota Kinabalu, and Kuching.

June

.

Total

Net

Bales

— —

Sudan

Others

Singapore:

1

— 84 —

Syria

Imports

1966

1965

exports of proc-

export shipments.

Item

1964

Destination

1

8,

1970

presently

industry.

increasing

the

production

of

its

own

textile

— Based on dispatch from Dale K. Vining Agricultural Attache, Kuala

Lumpur

Page

1

Ships from

all

nations visit the busy port of Singapore.

Mini Island— Maxi Market Southeast

Singapore, the lion”

is

Asia’s

“city

of

developing a king-size appe-

—not only

tite

for food imports

its

burgeoning population and quality-

conscious

tourists,

but

also

to supply

for

trans-

shipment to other countries in the region. Ever since Sir Stamford Raffles established a trading post

mile island located at

on the 224-squarethe tip of the Malay

Peninsula 151 years ago, Singapore has

probably have a bearish effect on the

ing

government

attract export-oriented

dustry are

of sorting,

making an

is

state.

The

active bid to

industries to the

Singapore’s attractions for invirtually free port, tax-free

its

on bank deposits, an immigration plan which allows those with special technical and managerial skills to reside permanently in Singapore, and a large workinterest

ing

Singapore’s

force.

population of 2

(predominantly Chinese) enjoys

million

income and

the highest per capita

living

standard of any country in Asia except

And

Japan.

economy

the

The

is

definitely a

processing, or packaging.

lively

volume of trade, Singapore, located on one of the world’s great shipping lanes and blessed with a

growth rate of 6 percent from 1956 to 1965 and in 1968 leaped ahead by 7.7 percent. New industries are mushrooming and the southern end of the island has been

Because of

this large

natural harbor,

In

ranks

world

largest in the

handled.

now

in

its

port fourth

terms of cargo

1968, 41.8 million freight

tons passed through the bustling port.

one.

converted

Jurong

average

an

enjoyed

gross domestic product

an

into

—which

industrial

managed by

is

estate

a special

corporation. Shipbuilding, ship-repair and Diversification of

economy

Although Singapore’s role as middleman, processor, packer, and marketer for neighboring countries’ raw materials continues to be an important one, the government is preparing for the time when growing nationalism and subsequent development of industry in these countries

will

Singapore’s military

lessen

services.

withdrawal

the

demand

for

Page 12

of major maritime nations.

The Port Authority, which

constantly

is

improving and extending port is

presently

constructing

terminal with the

first

facilities,

container

a

phase scheduled 1970.

A

container-handling crane should be ready for operation by 1971.

2

to

It is

of the

percent

3

estimated that

cargo

passing

through Singapore in 1969 was received in

and

containers,

pected to

rise to

is

ex-

more containerized

the next 3 years as

move

volume

this

about 25 percent during

Japan-Europe run. There are also plans for a new customsfree warehouse complex where small firms which do not wish to build their vessels

own

into the

may

facilities

distribution

lease space for regional

operations

—a

of free

sort

trade zone within a free port.

Singapore’s point

role

enhances

porters.

as

its

transshipment

a

for

attractions

ex-

There are special transshipment handling

rates

for

other

areas.

No

cargo

destined

charge

storage

curred on certain cargoes

if

for

is

in-

reshipped

conversion, and the manufacture of elec-

within 4 weeks from the date of unload-

tronic equipment (particularly miniature

ing in Singapore.

products) are ing

among

the

many

bolstering

industries

develop-

Singapore’s

Swelling population

The expanded

economy. oil-refining

becoming an important center and a regional base for

petroleum

related

Singapore

is

Southeast Asia.

Also

the

British

ties in

from

the

island,

nesia,

scheduled for completion in 1971, will

serve as a regional base for the fishing fleets

for completion by the end of

island republic.

major transshiping point. Singapore merchants have been the middlemen funneling raw materials such as rubber, tin, and spices from neighboring countries through Singapore’s godowns or warehouses and out to Western markets and, on the other hand, acting as wholesalers for food products and manufactured goods from Europe and America. To bit

transforming

is

an up-and-coming industrial

to

Among

Singapore adds a

in the process of diversify-

mod-

also establishing a

is

ern deep-sea fishing port and hopes to

Singapore from a purely commercial city

operated as an entrepot, Southeast Asia’s

each,

eventualities in mind, the

economy and

the

companies.

oil

Singapore

economy. With these government is

activities

New

throughout

exploration activi-

Indonesia and offshore from IndoMalaysia,

and

Thailand

have

turned the island into a mecca for foreign

and

tourism

industry

is

of course

an influx of newcomers with sophisticated food preferences. The U.S. bringing

Ambassador

recently pointed out that 10

years ago there were only 500 Americans in

Singapore, today there are 4,000.

many

And

other quality-food-conscious people

are visiting Singapore as

it

becomes a

Foreign Agriculture

regular stop

the tourist trail in the Far

on

which

venience foods. Carving demonstrations

food

Mainland China, and Denmark are making their bids for the Singapore

and seminars on food preparation atfrom every important institutional food outlet in Singapore and gave chefs and restaurant owners their first opportunity to see food prepared and carved in the way more and more of their customers are accustomed

palate.

to.

recognizing

are

In fact, tourism

is

turning into a major

supply,

industry in Singapore. In 1968 there were

in

25 percent more than in 1967. About 350,000 visited last year and over half a million are expected in 1972. The runway at Singapore airport

haven

over 300,000

is

visitors,

being extended to accommodate the

and new luxury hotels are springing up. There are presently 32 new hotels under construction which will provide 17,000 additional rooms by 1972.

tourist-laden

jumbo

jets

Domestic agricultural production

Although coffee, pepper, copra, pineand other agricultural products are transshipped through Singapore in apples,

massive quantities, Singapore’s cultural production

is

land area. Agriculture

own

limited by is

its

agri-

small

highly intensive,

devoted primarily to livestock, vegetable,

and tropical

fruit

production. In

1969,

6,600 acres was planted in coconut, 5,400 in

Singapore,

that

normally must import one-half of

East.

fruit,

(mainly

6,700 in food crops

is

its

becoming an even larger market

view of

new

its

and

tourist

Exporting

base.

New

such as Australia,

countries

a

as

roles

industrial

Zea-

land,

Imports of

many food

products have

few years. Poultry imports jumped from 7.0 million pounds in 1966 to 10.6 million in 1969. Although Danish subsidized broilers have a definite edge in the broiler market, U.S. poultry parts are very popular. In 1968 U.S. soared during the

poultry

exports

last

reached

Singapore

to

2,253,000 pounds, making the island the 14th largest market for U.S. poultry exports. (See Foreign Agriculture,

Dec. 29,

1969.)

Total

U.S.

exports

agricultural

to

1969. Leading exports included unmanufactured tobacco (the largest item), fiscal

poultry

wheat,

products,

citrus

rice,

other fruits and nuts, and

oil

cake

vegetables), and 1,020 acres to miscella-

fruits,

neous crops. Singapore’s table meat production for 1969 was estimated at 1,105 long tons of beef, 1,538 tons of mutton,

and meal.

20,625 tons of pork, and 10,896 tons of

ucts Division in the Ministry of National

development food exhibit sponsored by USDA and top U.S. food firms was staged last fall in one of

Development

the island’s

The establishment of has

a Primary Prod-

boosted

agricultural

production via a number of development projects.

market development

The

Swine and poultry production

are being improved through the selection

effort

market

U.S.

first

Singapore

activity in

chicken.

—a trade-only



modem

hotels.

variety

of

Members

of

saw and sampled a

the local food trade

wide

U.S.

food

products,

ranging from beef and poultry to con-

of superior breeds, increasing acceptance

modem methods of animal husbandry, and the adoption of more effective animal disease and pest controls. An abattoir complex has been established to insure that meat production conforms with international standards of hygiene and quality. of

Efforts are also

underway

to increase

Singapore, an entrepot,

is

Southeast Asia’s major transshipping point.

It is

located on one of the

world’s great shipping lanes

and

is

blessed with

the island’s vegetable production through

a natural harbor. Right,

modern

a section of the port’s 3-mile long wharves. Below,

the adoption of improved seeds, cultivation methods, fertilizer.

The

and

feasibility

greater use of

of

using

the

hydroponic system for crop cultivation is also under study, and a Colombo Plan team is working on an intensive farm improvement scheme for the island. Two commercial wheat flour mills have been constructed recently and together they produce about 150,000 long tons of flour a year.

Marketing opportunities

However, even with stepped-up domestic

production,

June

8,

1970

many

exporting countries

In addition to the seminars, the hotel’s

dining

room was converted

popular with

Western-style

American dishes. The impact of being

felt

a view of

downtown Singapore.

into a highly

USA”

“Steakhouse

complete and favorite

decor

this hotel

show

is

still

by U.S. firms as orders for the

items exhibited in Singapore continue to

pour

in.

potential

U.S. exporters are realizing the of the Singapore market and

recognizing that they must bid for their share of

Singapore were valued at $9,908,000 in

U.S.

tracted representatives

it.

make an

active

Worm Welcome On

for U.S. Frozen Foods

Display of Tokyo Trade Center frozen

U.S.

and

convenience

foods

recently captured the attention of Japa-

nese

consumers

at

a decoratively

pre-

next year.

One

of the features of the exhibit was

sponsored by FAS, fea-

demonstration kitchen where Betty Sawyers, U.S. home economist, utilized

tured a large variety of products of 24

the displayed products to prepare tempt-

top U.S. food companies, as well as dis-

ing dishes and explained

The

exhibit,

plays by the Institute of try

the

American Poul-

Products (IAPI).

The opening reception was attended by 222 Japanese industry executives and government officials, plus over 50 members of the press. During the week-long show, a

total of

2,278 visitors thronged

the blue, orange, and silver display booths set

among huge carved

blocks of poly-

Final

reports

be

show

—clockwise from above:

into

they could

full

menus. Many demonstrated are entirely new to the Japanese market. Another important aspect of the exhibit was the seminars presented by USDA frozen and convenience food experts. Lewis Norwood, Jr., of the Federal Extension

Service

discussed

“Mass Mer-

Techniques for Expanding Sales of Frozen Foods”; Robert Guilfoy, Jr., of the Agricultural Research Service,

indicated

on-the-spot

spoke on highlights of the

how

and varied of the products which she

incorporated

chandising

ethylene “ice.”

Some

and

projected sales of $1,330,000 over the

sented exhibit and seminar held at the U.S. Trade Center in Tokyo.

$270,000

approximately

of

sales

“A System

of Logistics

To Get

U.S. Frozen and Convenience Foods in

Time and Dora Esposito

the Right Place at the Right

in

Kojiro Kumara, President,

the Right Condition”;

of

Japan Frozen Food Assoc., and Richard Sneider, Dep-

the

uty Chief of Mission, U.S.

Embassy, examine cuts of U.S. prime beef; Edwin Williams,

USDA,

has a

rapt audience at his seminar; visitors flock to

one of the many booths displaying U.S. frozen

and convenience food items; Betty Sawyers offers samples of fried chicken.

Page 14

Consumer and Marketing

Service dis-

cussed “Frozen and Convenience Foods,

Today and Tomorrow”; Edwin Williams of the Consumer and Marketing Service talked about “Regulations and Controls

That Guarantee Quality Frozen Foods”; and Kenneth Nuernberg of the Foreign Agricultural

Service

discussed

the

“Proper Freezing and Thawing of Beef.” An overflow audience of nearly 1,000

and questioned them on technical aspects of frozen and

listened to the speakers

convenience food production, preservation, transportation, and merchandising.

Foreign Agriculture



CROPS AND MARKETS SHORTS Trade sources believe, however, that the government’s expanding almond production is related to EC

Weekly Rotterdam Grain Price Report

inter-

est in

Current prices for imported grain

compared with a week

lands,

at

earlier

Rotterdam, the Nether-

and a year ago, are

as is

follows:

Change from

May

Item

27

ago

Cents per bu. 0

Dol. per bu.

C)

1.85

C)

Australian Northern Hard U.S. No. 2 Dark Northern Spring: 14 percent 15 percent U.S. No. 2 Hard Winter: 13.5 percent Argentine U.S. No. 2 Soft Red Winter Feedgrains: U.S. No. 3 Yellow corn Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero

...

A year

previous week

Dol. per bu. Wheat: Canadian No. 2 Manitoba 2.00

USSR SKS-14

1.93

a major outlet

1.91

-1

1.86

1.99

0

1.91

1.88

0

1.87

1.82

-2

1.72

0

1.69

1

1.46

amount

1.59

government on a

C)

-

1.73

+2

1.43

-1

1.25

1.42

-6

1.23

3.14

+

2.87

almonds. Through

India Subsidizes

concessions

According

Sugar Exports Government of India expects

to reports, the

to

1970.

to $4,615,000.

The The

cost

of

such

industry will

may

subsidization

the sugar to the

sell

no-loss, no-profit basis.

In addition to the above exports, 95,000 tons of sugar have

1

Kingdom and 50,300 Any losses on exports to the United States United Kingdom will be absorbed by the industry,

of the United States and the United tons to Canada.

Not quoted.

Note: All quoted

c.i.f.

Rotterdam for 30-

to

60-day delivery.

and the

while any losses on exports to

West Germany has announced 1970





Canada

will

be borne by the

State Trading Corporation.

German Canned Asparagus Tender 5,

tariff

already been designated for exports to the preferential markets

U.S. No. 2 Yellow

May

tariff

West Germany

subsidize the export of 80,000 metric tons of sugar during

calendar year 1.66

for

EC—particularly

During the last 20 years, the average acreage planted to almonds has increased about 25 percent. Under the 4-year Economic Development Plan (1964-67) almond area increased by about 84,000 acres. Major emphasis is given to the production of the hard-shell almonds “Marconas” and “Larguetas.” Most other varieties are marketed under the general denomination “Unselected Valencias.”

0

C)

The

Spain hopes to be able to get a larger share of the EC market even though competition from Italian almonds is great.

1.75

Soybeans: 1

concessions to Spain.

This export plan

Bundesanzeiger No. 82, a tender allowing imports of canned asparagus in

is

an effort by the Indian Government and

the sugar industry to reduce the burden of unusually large

stocks of unsold sugar.

spears from the United States, Argentina, Australia, Brazil, Israel,

Japan,

Canada,

Mexico,

Peru,

Switzerland,

Spain,

Thailand, and Uruguay. Applications for licenses for each

country of origin are ted through

now

December

being accepted and can be submit-

Philippine

The 1969 exports of unmanufactured tobacco from Philippines

22, 1970.

who have

Licenses will be issued only to applicants

re-

ceived licenses under the three previous tenders. Further, each individual’s license application cannot exceed

the total value of licenses granted to

50 percent of

him under

the last three

Tobacco Exports Drop

fell to

the

72.7 million pounds, nearly one-fourth be-

low the record 94.0 million pounds in 1968 but 57 percent above the 1960-64 average. The average export price of unmanufactured tobacco was 22 cents per pound in 1969 compared with 16 cents in 1968. Nearly all of the exports con-

More

than four-fifths

tenders.

sisted of scrap cigar-filler type tobacco.

The first day of customs clearance will be June 16, 1970. Import licenses issued will be valid until December 31, 1970.

of the tobacco exported went to the United States, Spain,

Indonesia, and the Netherlands.

PHILIPPINE

UNMANUFACTURED TOBACCO EXPORTS

Spanish Almond Subsidy Possible Quantity

In a recent press conference, the Spanish Minister of Agriculture indicated that the Spanish

Government

is

8,

1

970

1968

Average 1969

interested in

expanding the country’s almond output and will do so by subsidizing production and making loans available to growers. Early in March the European Community (EC) and the Spanish Delegation in Brussels agreed upon the draft of a preferential trade agreement which is expected to be signed in early summer. The agreement calls for tariff reductions on various agricultural commodities and industrial products. Although several farm commodities were designated, no specific mention has yet been made of reductions granted on Spanish almonds and/or filberts.

June

Country

value per pound, 1969

Million

Million

U

pounds

pounds

cents

United States Spain Indonesia Netherlands

21.4

26.0

12.6

18.3

30.4 25.8

16.0

9.7

43.7

2.3

6.0

9.3

West Germany South Vietnam

10.7

2.8

30.9

2.4

2.5

8.9

Singapore Other

15.8

1.2

3.9

12.8

6.2

23.0

Total

94.0

72.7

22.2

.

S.

Page 15

U.S.

DEPARTMENT OF AGRICULTURE WASHINGTON,

D.

20250

C.

PENALTY FOR PRIVATE USE, $300 OFFICIAL BUSINESS United States Department of Agriculture

POSTAGE &

FEES PAID

If you no longer need this publication, check return this sheet, and your name will here be dropped from mailing list.

If

your

address

should

changed

be

PRINT or TYPE the new address, ZIP CODE, and return the whole

including sheet to:

Foreign Agricultural Service, Rm. 5918 U.S. Department of Agriculture Washington, D.C. 20250 Foreign Agriculture

Lower production

in

1969 led

to a

already

suffers

The Peruvian Government initiated a Ministry of Fisheries 1, 1970. The objectives of the Ministry are to

reduced availability of

exportable tobacco even though the domestic tobacco industry

from large stocks of low-quality tobacco.

on February

study marine resources, and develop the

regulate exports,

Latest estimates place the 1970 tobacco crop at 205 million

necessary infrastructure for an edible

pounds;

ships,

it

is

reported to be of better than average quality.

This compares with 172 million pounds in 1969 and 194 million in 1968.

and refrigeration

Prices results.

continue

This

may

fish

industry



ports,

facilities.

relatively

high

despite

improved catch

be a reflection of the uncertainty surround-

beyond the government’s arbitrary September 30. Furthermore, stocks on March 31, at 440,000 tons, although nearly equal to the 450,000 tons of the previous year, are substantially below the large volumes of 1967 and 1968. Late reports indicate that fishing since March 31 has been good and that the anchovy fishing season was closed as of mid-May. Stocks as of that date probably exceeded last year’s reduced volume. At the present rate of market uptake, supplies will dwindle sharply before the beginning of the 1970-71 ing forward sales for export

Peru's Fishmeal Output Fishmeal output by Peru exporter



the

—made a sharp recovery

and Exports

world’s largest producerin the

January-March 1970

quarter to a volume of 755,000 metric tons compared with

only 583,000 tons for the same quarter a year ago. This largest quarterly output ever

produced;

it

is

the

exceeds the 734,000-

ton record output of October-December 1967 and represents a 39-percent increase over the previous quarter.

The

increase

took place despite a 4-week closed season in the latter half of

February and the first half of March. Peruvian exports of fishmeal in the 3-month period ending March 31 of this year amounted to 611,600 tons, compared with 514,400 tons for the same period last year and only 385,600 tons in the October-December 1969 period. Of the total exports in this last quarter, 7 1 percent moved to Europe, 1 8 percent to the Western Hemisphere, and 1 1 percent to Asia. Exports to other than Western Hemisphere countries thus continue to account for about 82 percent of the total as they did in calendar 1969. This is considerably above the 67 percent of 1968 when the United States was the major single country market. The chief factor in the reduction of U.S.



imports

is

meal.

Page 16

the relatively high price ratio of fishmeal to soybean

cutoff date of

fishing season in September.

Crops and Markets Index Fats, Oils, and Oilseeds 16

Peru’s Fishmeal Output and Exports

Fruits, Nuts, and Vegetables

15 15

German Canned Asparagus Tender Spanish Almond Subsidy Possible

Grains, Feeds, Pulses, and Seeds 15

Weekly Rotterdam Grain Price Report

Sugar, Fibers, and Tropical Products 15 India Subsidizes Sugar Exports

Tobacco 15

Philippine Tobacco Exports Drop

Foreign Agriculture

4

1970
Agriculture Economic aspects Periodicals, Produce trade Periodicals
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