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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

FOREIGN AGRICULTURE April 5,

1976

D

(Harvesting

wheat

in

France

Foreign Agricultural

Service U. S. DEPARTMENT OF AGRICULTURE





FOREIGN AGRICULTURE •

Vol.XIV

No. 14



Aprils, 1976

France’s Agriculture— 1975

Review and a Look Ahead

In

c

In this issue:

2



1975 in Review and a Look Ahead By Kenneth E. Ogren France’s Agriculture

6

World Food Prices

7

Spain’s

New

Hit

Imports

of

Oilseeds

High

rance

Philippine Sugar Output, ports To Rise in 1975-76

9

Brazil

Hopes

OGREN

E.

U.S. Agricultural Attach^

Paris

8

for

Ex-

F ucts

Rebound

in

Wheat 10

By KENNETH

—West

Europe’s No.

—ran

some bad weather

into

last

year and consequent setbacks in major crops like grains,

Thailand’s Future as Rice Exporter Questioned By Supat Wibulseth

pro-

1

ducer and exporter of farm prod-

A

fruits,

and vegetables.

strong recovery could be in the

ing

for

however,

1976,

French farmers’ ing

profits

interest

after

mak-

given

the

maximiz-

in

unsatisfactory

their

This week’s cover:

1975 showing and the French Govern-

Harvesting wheat in France the European Community’s leading grain producer. A look at French agriculture, including its 1975 performance and future prospects, begins this page.

ment’s determination to assist and protect

farmers wherever possible.

its

At

the

same

Secretary

Butz,

L.

Agri-

of

Richard

E.

Bell,

Assistant

Secre-

tary for International Affairs

and

shipped $412 million worth of

farm products to France, down considerably from the record $492 million sold in 1974 but still enough to make France a major U.S. farm market in Western Europe. And when one conthe

U.S.

products

from other countries David L. Hume, Administrator, Foreign Agricultural Service

10 percent in U.S.

Editorial Staff:

exports

some to

to

transhipped

France

years



—up

to

the “real”

approach or

France

Kay Owsley Patterson, Editor

exceed $500 million. Soybeans and soybean meal are the key to this strong

Beverly J. Horsley, G. H. Baker, Marcellus P. Murphy, Isabel A.

showing, since they alone account for

Smith

about half the value of U.S. farm ex-

Advisory Board; Richard A. Smith,

John

ports to France.

Chairman;

Gordon O. Fraser, William Horbaly, James L. HutchC. Foltz,

Richard M. Kennedy, J. Don Looper, Larry B. Marton, Brice K. Meeker. inson,

The Secretary of Agriculture has determined that pubiication of this perlodicai is necessary In the transaction of public business required by law of this Department. Use of funds for printing Foreign Agriculture has been approved by the

Director,

Office

of

Budget through June

Management

and

1979. Yearly subscription rate; $34.35 domestic, $42.95 foreign: single copies 70 cents. 30.

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.

On

(MTN) underway positions, different

of

These

Geneva.

in

course,

are

often

quite

from those taken by the United

States.

A last

look year,

at

French agricultural

results

I

^

prospects for 1976 and be'

The Year 1975

v

Last year was

a disappointing one French farmers. While there had been some poor crops in 1974, 1975 saw more widespread setbacks, as refleeted in lower “real” incomes and dedines in exports. Given the EC system of price guarantees, prices would have been practically at the same levels had the harvests been bountiful. The total impact of reduced harvests on farmers’ returns is thus greater in France than in a country like the United States where farm-product prices are more directly related to supply and demand. for

lowed exceptionally mild winter weather (when temperature hit up to 70°F

cropland.

as

In addition to

its

roles as rival

farm

holds

still

another important position

that of agricultural policy leader in the

European

Community.

—and

Common

defender

Agricultural

As



EC’s (CAP),

of the

Policy

several totally

times

in

February),

wiping out certain

jj

uj

]

jj

^

.

jj

,

^

,

almost

Winter because of

t

>

|

,

j

fruits.

grains got off to a bad start

wet planting conditions in the fall and early winter of 1974/75. Later, summer drought had an even more serious impact on practically all

,

,

|,

extremely

major crops

— including

cereal



,

n

,

grains,

as well

,

on pastures. Generally dry weather

fall, so harvest conwere much improved over the previous year’s but the damage had

continued into the

ditions

;

already been done.

chief

the

i

^

In 1975, widespread spring frosts fol-

corn, sugarbeets, and potatoes

exporter and major U.S. market, France

I

i

France has expanded its own shipments to the point where it now ranks second only to the Unite'd States as an agricultural exporter. Last year, these exports were worth approximately $8 billion, compared with the $21.9 billion shipped by the United States. And this trade comes from a country that has only a fourth the U.S. population and a tenth the the other hand,

architect

Page 2

positions taken

yond, and policy roles, follows.

importer of U.S. farm products and a tough U.S. competitor in the agricultural export market.

siders

Commodity Programs

EC

the Multilateral Trade Negotiations

in

tinue to hold forth as both a leading

States

culture

sive input into the

time, France will con-

Last year, for instance, the United

Earl

France contributed to the past decade’s EC farm production and trade. And now it is having extenrapid expansion in

in

This adverse weather led to setbacks French grains mainly wheat, barley,



and com, which together rank as the Foreign Agriculture

i

:

i

Far

left, harvesting grain on a French farm; left, tomatoes for sale in a local market; and below, a typical

vineyard near a small

French

village.

Output

and other crops

of these

was generally

off in

1975, but farmers, aided by protective EC and

French Government farm policies, are pressing for expanded output in 1976.

country’s leading crop and agricultural !

Total grain production

-export.

last

year

1975

continued

export

rapid

their



in

expan-

country’s chronic oversupply of wine, especially of lower quality wines.

How-

24-25 million tons, in contrast to some

sequently,

wide U.S. consumption swings caused by fluctuating use of grain as animal feed. Thus, a decline in French grain

out to be only around 2.9 million tons

economic conditions of many small wine producers in 1975 were among the worst of any agricultural sector, and prospects for early improvement are not bright. Overall, French livestock production was relatively stable in 1975. Pork pro-

instead of the projected 3.6 million.

duction,

dropped

percent

14

35.7

to

million

metric tons from 41.4 million in 1974.

French consumption of grains (food, feed, and industrial use) has been relatively stable in recent years,

production means a in

much

at

around

larger drop

export potential, which in 1975, for

instance, fell about

Soft

with

40 percent. major French

wheat is the 1975 crop of

the

14.2

grain,

million

output. Soft

more than a third of total wheat also was the biggest

among

the grains last year as de-

tons totaling I

loser

creased |:

French

important

singly

plantings

and

lower

yields

together reduced output 18 percent be-

low the record 1973/74

level,

up

sion of recent years, with plantings

by percent. However, adverse 10 weather conditions cut beet yields to the lowest level since

1964 and sugar

content to the lowest since 1947. Con-

production in

1975 turned

Production of France’s major oilseed crop,

rapeseed, was

down 20

percent

in

1975 from the previous year’s owing

to

reduced plantings and lower

yields.

Because of the killing spring frosts, peach production last year was only one-fifth of a normal crop. Nectarines and apricots also suffered heavy losses. The prune crop was almost wiped out



ever, the

tinued

with a

a

3

percent

rise,

con-

long-term upward trend,

al-

though French pork imports are still sizable about 15 percent of domestic production. Beef production declined about 1 percent last year, but still



stayed at an historically high level fol-

lowing an unprecedented increase of 26 percent in 1974. France of beef, ranking

by frosts with a production of only 550 tons, compared with a record 22,000 tons in 1974. And walnut pro-

upward trends

duction

climb.

fifth,

is

an exporter

worldwide. The

in broiler and turkey production were reversed in 1975, although egg production continued to

ll

Barley

is

France’s second most im-

also

declined,

despite

a

rela-

j

i

l!

portant grain, followed closely by corn,

tively small

whose acreage and yields had been in a sharp upward trend until the early 1970’s. Recent years, however, have seen some setbacks in the corn output, and 1975 was the third bad year out of four as production dropped to 8.1 million tons well below the 1973 high

Apples



of 10.6 million.

—an

Producers of beet sugar April 5,

1976

increas-

In contrast to a gradual increase of

crop the previous year.

were

an

exception

to

the

general rule, with a record crop of over

was actually too large for available commercial outlets. Wine production was down sharply in 1975, dropping 15 to 20 percent

2

million

tons

that

below the high levels of the 2 previous years. This lower outturn may help, at least

in

the short run, to control the

around 2 percent in recent years, milk production was unchanged probably because of the below-normal pasture condition resulting from drought. Following a 15 percent drop in per farm “real” income (adjusted for inflation) in 1974, French farm leaders pushed hard throughout 1975 for Government financial aids that would boost



Page 3

incomes enough in 1975 to 1974 losses.

at least par-

tially offset

The Government responded with dipayments to farmers of more than

rect

5

francs

billion

were

billion

which

(of

agricultural

from

“exceptional”

about

3

subsidies

granted as a special aid to farmers’ incomes). Yet farmers ended up with no

mated 8 percent declined about

power and

in current francs, but

percent after sub-

1-2

in

number of farmers

per farm.

From

a

production-cost standpoint,

inflationary

pressures

continued

in

1975, although at a less explosive rate than between 1973 and 1974. In 1974, the price index of farm production in-

put items rose by 24 percent, whereas by 1975 the rate of gain had slowed to an estimated 8 percent. These high inflation rates caused the overall “cash” position of

French farmers to deteriorate sharply between 1973 and 1975 (following favorable results in 1973). During this time, the total production

of

cost

larger

amount

inputs

When

francs).

the

(10.3

increase

percent in value as a result of sharp in imports of soybeans and

of about

F9,000

areas

the

soybean

Alps.

a

billion

of almost

of almost 4

bil-

francs was not sufficient to keep

income from production

current

in

francs from declining between 1973 and

1975. (The consumer price index rose

1974 and 10 percent

15 percent in

French

Total

imports

down somewhat

in

and sugarbeet farm France ar< best organized structurally and hav<' benefited most' from EC agricultura policies. Grain farms in northern Franct

Forecasting the future

and especially so

given

the

French farm trade bring an end to the previously strong growth in France’s agricultural trade balance.

That expansion, which began after implementation of the EC’s CAP, moved French exports of agricultural products from F9 billion in 1967 to a record billion in

during

in

harvests

of

of

15 years or more.

Between 1965 and 1974, the value of French production represented b)

weather.

1976 return to nor-

crops increased from 41 to 45 percent,

grain

with grains’ share of total value rising from 13 to 17 percent. Wine accounts

could

easily

reach, or exceed, the peak 43 million tons produced in 1973, the best year in

for about 10 percent of total value of

French agricultural history. So far, weather has favored the crop with excellent planting and growing conditions

chronic

surplus

ernment

restrictions

for winter grains.

pansion here seems unlikely.

In addition,

make

to

French farmers are

or credit. On the other hand, inflation can be expected to boost unit costs of inputs and further pressure farmers to

ways

(although

improve

to

slightly at the

their efficiency,

prices

fertilizer

potential

for

were down

continued

is

a strong

growth

in

French agricultural production and exports,

despite

reverses of the

the

problems

In the future,

more

look

may have

France

agricultural expansion, since

it

running up against limitations surface for crop production.

to

is

now

in

land

Beef and dairy production combined already

make up

the largest agricultural

sector in France. In

1975, production of beef, veal, and milk accounted for

last

relative

to

beef,

coming from

the total value

comes mainly from

some-

filled

with

There are large regional and product differences in average farm incomes. The net income per farm family worker (full-time equivalent) in contrasts.

addition,

somewhat

represent half of

still

realized automatically or without

times-painful adjustments.

Milk and milk

agricultural production.

products, although declining

In

is



to livestock production for

2 years. But this potential will not be

agriculture



and Govon plantings ex-

a third of the total value of France’s

end of 1975).

In the longer run, there

agricultural production, but because of

likely

strong

production efforts in 1976, and there appear to be no great problems in obtaining production inputs

find

this sector.

France’s beef production

its dairy herds since about three-fourths of France’s 12 mil-

lion

cows are

as dairy cows.

classified

In contrast, the U.S. ratio in

1

is

almost 4 to

favor of beef cows.

The market outlook

for French dairy

products does not appear overly bright. ippf:

TRENDS

IN

FRANCE’S TOTAL FARM INCOME, 1972-75' [In billion

1974. Imports also rose

Item

As

francs]

1972

1973

1974

1975"

:

!

slower

ance

rate.

for

deficit

of

As

a result, the trade bal-

agriculture

FI. 6

moved

billion

in

from 1967 to

in

agricultural trend

Total

was cut in half, to F4.7 billion. Exports dropped about 9 percent in value to F35.5 billion primarily because of a



in grain exports,

in

while

French

113.7

1

1.4

1.5

4.2

skeep

towai

118.9 Jiidp

5.4 eralc

92.1

110.1

117.9

124.3

37.2 18.0 54.9

46.9

Taxes and other expenses Net income from production

30.6 15.7 45.7

51.9

48.9 22.0 53.4

Inventory adjustment

-.2

-2.7

-.3

2.5

Net cash resources (income)

45.6

52.2

51.6

55.9

Co

Production input costs

1975, however, as the trade surplus

32 percent drop

108.6

a

was reversed

imports rose by 7 percent. Despite the overall increase

90.8

a

surplus of F9.4 billion in 1974.

The

Sales value of agricultural production .... Subsidies (from French Government)

I

ilefici

period, but at a markedly

this

!

and highly mechanhave increased significant!)

in the last

hazardous

in agriculture,

uncertainties

Should weather mal,

is

3[0

are generally large ized. Yields

at best

mountainou and thi

the

in

Massif-Central

ers in the northern plains of

1976 And Beyond

French

Last year also saw some reversals in

of

In general, grain

but the major factor was Brazil’s expanded share of the market.

1975.)

F39

meal.

of these products were

added, even the increase in

is

Government payments net

by

and other ex-

billion francs in taxes

penses

rose

(11.7 billion francs) than

value of production

lion

1974 varied from a high of aroum F97,000 in the Paris Basin to a lov

around 15

declines

traction of changes in farmers’ purchas-

4

fell

cash

their

did

those

year,

last

improvement in their incomes: income increased an esti-

actual

ing

imports

the United States

Values may not add because of rounding. ^ NOTE: The relationship between dollars and ‘

19.1

teii(

akle

result

tions

Ike

Preliminary.

francs during 1972-75 has varied from at certain periods in

one dollar equaling 5 francs or more in 1972 to less than 4 francs 1973 and 1975. In mid-February 1976, US$1 equaled 4.5 francs. Source: French National Accounts.

Cl

»kere

30 pe incoi

kas

k

1

Page 4

Foreign Agriculture April

surpluses

recurring

the

|J,:onsidering

and nonfat dry milk European Community and

;specially of butter

joi^

—in

the

economy

)ther dairy producers, ini

The longer term outlook

ij,

m

for

beef

[

much

jippears j-iot

brighter,

with chances

only for increasing beef consump-

France, but also for expanding

;ion in

French agriculture is oriented If toward expansion of beef and other livestock products, and if the French

European neighbors. France m pports to pppears better positioned than any

regains its strong growth performance of 1969-74, prespects will be good for a resumption of growth in

farm-product exports to France. The major potential sources of expanU.S.

West European country

other

to take

idvantage of an expanded market for considering

peef,

large

its

cattle

herd

produce calves and the considerable

;o I

land surface suitable and available for forage

and feed production. At present,

j,

France exports a sizable share of ialves to Italy

its

and other countries that

are also net importers of feedstuffs.

Greater emphasis on beef production

would require major structural changes. At present, the size of most cattle herds, .although increasing,

is

simply too small

fan average of 12 cows)

give

to

ac-

incomes to cattle producers. France’s milk production per cow is substantially below that of EC coun-

ceptable

the

like

'ies

Denmark,

Netherlands,

f

nd the United Kingdom. Thus, to put Its cattle industry on a sounder economic must reduce the total basis, France number of dairy cows in favor of

oeef

increase

herds,

productivity

per

cow, and markedly increase the average

of both

size

its

and beef

dairy

herds.

Structural

adjustments in the cattle

jndustry can also to

come through

a shift

part-time farming, but such a change

would hinge on increased income opfrom off-farm employment, that, in turn, would depend on economic growth and regional development in the nonfarm sectors. Other areas of livestock production appear to offer potential for expansion.

portunities

As

noted

deficit

sheep

earlier,

France

producer of pork, and lamb. France

remains as is

well

a

toward larger scale production in pork and poultry but has lagged behind several of its West European neighbors. Continued expansion in French production of corn for grain

is

results of recent years. Climatic condi-

leaders as being in direct opposition to

deficit



At present, France imports 85 percent of its protein meals, and around 70 percent of its imported protein comes from soybeans and soybean meal.

To

reduce

dependence, the Gov-

this

where moisture content often reaches 30 percent or more. Flowever, acreage in corn for silage could be ( and already has been expanded for production of beef in feedlots.

French

the

are

and

strongest

most

EC

supporters of the

influential

posi-

on agriculture in the MTN negotiations in Geneva. The major features of French agritions thus far taken

cultural policy are:

EC-CAP

• Strong support of the

ernment has encouraged production of soybeans in southwest France (See

system of support prices and market

March

regulations; and

Foreign Agri-

17, 1975, issue of

culture).

However,

results thus far

have

lagged behind schedule, and prospects

• National policies to encourage through use of various grants and sub-



development

appear dim for a sizable production in

sidized

the foreseeable future.

of beef and certain other products.

The

goal here

and

United States cotton

lost

its

promi-

nent place in the French market in the 1960’s and in

late

1975 had only a 7

percent share, compared with 40 percent held by the

exportable

USSR. With an supplies

cotton

at

credit

selective

to achieve a positive

is

growing trade balance offset escalating costs

in

in agriculture to

of petroleum, vir-

of which must be imported.

tually, all

increase in

of U.S.

There are no signs of marked changes these policies. The French have

some unusual

competitive world prices, the U.S. share

taken

of the French cotton market could re-

farm income supplements. But both French officials and farm leaders call these grants emergency actions, rather than a basic change from reliance on price supports as the major device for im-

bound somewhat.

A

wide range of other products make

up U.S. exports

among which most important.

to France,

variety meats are the

These promise to continue large because of French preferences for these products and the low prices of imported variety meats vis-a-vis costly domestic red meats. Also, although an important exporter of soft wheats, France also imports high-quality hard and Durum wheat from the United States. If the French move to higher yielding but lower quality wheats for milling purposes, U.S. exports to France could expand. U.S. rice,

2 years to give direct

steps

plementing agricultural

on

the

last

as

policies.

France, in general, puts stress

in

payments

much

greater

stability of agricultural prices

than the United States and

is

wary of

too great a dependence on the operations of

The

market forces

in setting prices.

Chicago grains market on world prices is viewed with particular alarm. The French feel that influence

of the

marand subject supervision and control by interna-

international, as well as internal,

kets should be “organized”

— products, walnuts, prunes, and tobacco— and

sales

citrus

dry beans

of

other

products

peas,

depend

in large part

supply

high-quality

like

will

on U.S.

ability to

products.

to

tional agreements. Special social prob-

lems

of

agriculture

rationale for extensive ticipation in

A

are

as

the

Government

par-

cited

agriculture.

rallying point for this policy view-

came in mid-1973 following the United States brief imposition of export controls on soybeans and soybean meal. point

Farm Policies

In practically

tions are often risky for maturation of

the crop, especially in northern France,



their export interests. Accordingly, the

France’s

question-

able in view of the disappointing crop



sion are soybeans

as

moving

the growth in its exports since 1967 has come largely in these EC markets. Thus, U.S. efforts to maintain and improve access to the European Community the top regional market for U.S. farm products are seen by the French Government and farm

supply

IJ,

, 1[

and soybean meal to major agricultural protein meal for animal feeds.

percent of France’s agricultural exports.

And

The

future direction of French agri-

culture and trade

— including imports of

and competition with U.S. farm prodhinges to a great extent on the ucts farm policies of the EC. Other EC members take around 65



every public

discussion

of agricultural policies since mid-1973, there have been references to the U.S.

“embargo” and thus the unacceptability of depending so heavily on the United States

for

a

critically

needed

farm

product. Continued on page 12

April 5,

1976

Page 5

..,

'

restrictions that limit price increases

Worldwide, U.S. Food-Price Rise Was Smaller Than Most/

t

5 percent for 6 months.

These controls

affect only

FAS

of the items in the

about hal

food baske

but they are far reaching in that the

apply also to nonfood consumer item

ood price indexes

F were higher

for 13 countries

January than in De-

cember. Only Canada experienced a decrease (0.2 percent). The January in-

added tax from 5 percent to 15 percent. Price increases in Buenos Aires were not far behind those in Copenhagen,

dex for Argentina was not available.

with

The

in

and are expected to affect the country’ consumer price index to a significan

of an increase in the Danish value-

sult

recorded for 13 of the

rises

degree.

Sweden on February 27 extended it freeze to include canned mea and vegetables, frozen foods, jam, mar malade, fruit syrup, mustard, and baby

price

19

was

foods surveyed in the Argentine capital.

14

However, prices of two items remained steady, and apple prices de-

foods.

countries where food prices have been

trending up.

clined because of plentiful supplies.

control

increase in the U.S. index

percent

0.1

On



the

among

smallest

a yearly basis, food prices in nine

countries

double-digit

reflect

while single-digit inflation

is

Prior to February 27, Sweden’s prici

Despite the seasonal factors influenc-

inflation,

ing prices of

apparent

Aires,

some food items

in

Buenos

food prices

Copenhagen’s food prices jumped by 5-29 percent on items included in the FAS shopping basket, mainly as a re-

tion of

IN

Argentina

.

Australia

.

Belgium

.

Brazil

.

Canada Denmark

.

.

France

.

Germany

.

Italy

.

Japan Mexico

.

.

Netherlands

.

Sweden United Kingdom

.

.

.

United States ....

.

.

Latest

Index

month

1970=100

December January January January January January January January January January January January January January January

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

month

Three months

-f25.5

-1-55.9

-F 348.9

170.1

-f 3.0 1.8

+

4.7

-F

-F

4.9

4.5

8.1

.2

+ -

1.6

-F

.9

154.6 330.7 168.7 168.0 167.5 133.3 182.5 188.3 195.0 145.5 159.7 229.2 157.4

Brussels

Buenos Aires

being

.3

-F

8.4

3.2 2.1

-F

6.7 11.7 5.4

3.0

+

11.1

.5

-f

9.7

2.5

-F

11.1

.8

+ + -f + +

2.1

+ +

1.5

+

-f

2.0

-F

2.0

-F

7.5 13.6

tariff on potatoes, and in Sweden the Government has authorized a higher

-F

2.8

-F

7.2

-F

25.4

ceiling price for potatoes.

+

.1

+

1.0

-F

5.9

-f

+ + + +

1.2

1.2

2.4 1.2

A

Bacon,

countries

In

In

whole,

boneless

boneless

chops

pkgd.

whole

dozen

quart

4.16

2.99

0.42

1.71

.53

.74

.20

3.80

2.00

3.16 2.63 1.34

0.85

.47

2.35 1.06 1.98

0.78

72

1.12

.39

.26 1.04

1.12 .95

1.15 1.79

1.15

.41

.92

1.19

.38

.57

.87

.28

.98

.86

.30

1.00

.94

.55

Copenhagen London

2.13 1.52 1.30

Rome

4.56 2.80 1.45 2.00 2.98 2.85

Stockholm

5.01

3.37 14.80 1.86 2.85

Or other indicated

Page 6

unit of

measure.

2.11

5.45 1.26 1.71 ^

Milk,

.16

n

2.66 2.48 2.15 1.88 1.66 2.14

.73

1.22

.34

1.94

1.82

.96

1.13

.32

2.30 2.19 3.04 2.16 2.03

3.00 3.13 3.56 1.90 2.32

1.43

1.49

.31

.72

1.03

.32

1.66

1.45 2.07

Not available.

is

view

is

countries.

estimated to be 8 million of

Canberra,

Cheese; Edam, Gouda, or Cheddar

Eggs,

(^)

potatoes

EC

shortage,

this

EC

the

meat prices have

re-

fairly stable since the previous

SELECTED WORLD CAPITALS, MARCH

Broilers,

.73

of

converted at current exchange rates]

sliced,

1.83 2.64

'

IN

lb.‘

Pork

.35

in

Council has suspended the 18 percent

chuck,

.72

Washington Median

experienced

tons less than in 1974.

sirloin,

85

The Hague Tokyo

U.S. dollars per

shortage

serious

Potato production during 1975 in those

Roast,

2.00 2.80

price

omitted.

27.7

steak,

1.71

FAS

-F

1.72

Paris

included in the

Canned ham has been

mained

.99

priced

margarine

-F

+ + + +

Canberra

Mexico City Ottawa

lower

Reflecting this trend, mar-

now

is

for

substituted

survey.

[In

Bonn

have

13.5 14.8

SURVEY OF RETAIL FOOD PRICES

Brasilia

searching

garine

Source; U.S. Agricultural Attaches.

City

since

for butter.

One year

November. Many con-

steadily

sumers, products,

2,460.6

oi

in

SELECTED COUNTRIES Prev.

confinec

that country have increased 15 tc 50 percent during the past 2 years, In the European Community (EC) and in some other countries, prices ol milk and dairy products have increased

in that capital are a reflec-

Percent change (rom

Country

been

the items added to the control progran

rampant inflation. In London, prices have stabilized in recent weeks as a result of Government

FOOD PRiCE iNDEX CHANGES

had

and cheese. Prices

milk,

sausage,

the dramatic increases in most

in six.

program

mostly to such basic foods as beef, porL

Oil.

cooking, Butter

Margarine

quart

Tomatoes

1.55 1.16

0.66

1.37

0.56

.45

.82

.24

1.61

.69

1.25 1.62 1.53 1.82 1.28 1.40 1.66 1.22

.97

.95

.85

1.42 1.37 1.05

1.10 1.50

.46

.81

.61

3.62 1.67 1.64 1.40

1.98

1.03

1.08

.92

1.94 1.68

1.07

.96

.73

2.61

.58

.75

.47

2.01

.92

.96

.34

1.67

.71

.25

.75

1.10 .69 .16 .60

1.66

C)

1.62 1.38 1.35 2.04

.68

.81

.51

.96

4.24

.51

.85

1.32 .64 1.03

1.20 1.38

(^)

1.61

.68

1.69 1.40

.68

.57

.68

.64

Source: U.S. Agricultural Attaches. Foreign Agriculture

/

I

lij

Beef prices are not expected

survey.

show much change at the retail level over the next few months because of to

,

I

ji

I

i

!

1

1^

I

large supplies that have resulted from a reduced level of exports, Brasilia and Ottawa reported declines in beef prices, reflecting abundant supplies accumulated during the slaughter the

In

bread

Canberra,

increase in Australian bread

to

8 cents over the past year.

—SiDONiA

R.[

Availability,

Food

Quality Vary

Attaches

important

mercially

as of the first

fas

DiCostanzo,

prices are reported

Agricultural

in

by U.S. 14 com-

world

capitals

Wednesday of every

1

month. Prices are converted on the basis of actual exchange values on the date of the survey, and these conversions affect comparisons between time periods. other

I

Highly

The

objective of this report

is

to

obtain representative prices in other

of

countries

items

normally

pur-

TEADILY mounting demand for protein feeds by Spain’s broiler and hog industries pushed the country’s imports of oilseeds mostly soybeans from the United States to a record height in 1974/75. The import level is expected to be even higher in 1975/76, despite steadily

S

— —

an exact comparison

is

not possible

because the quality and availability

among made to

of specific items vary greatly countries.

maintain not

An

attempt

consistency

outlets sampled,

necessarily

is

in

the

items

but these are of

representative

domestic oilseed output.

Food

price

official

indexes are reported

in oilseed

imports in

The expected

soybean imports, projected tons,

Apples

dozen

increase

0.18

1.22

.51

.38

.34

.94

compared with 1,730,000 tons

As

be soybean

will

oil)

Spain’s edible

oil

are projected at 183,000 tons, of

tons are soybean oil

—55 percent above

the export level of the previous market-

However, these projections

ing season.

be somewhat optimistic, particuincreased

domestic rise to

277,000

the limited crushing capacity to produce

.12

.28

.40

.28

industries,

greater volume of meal. 1,730,000

imports of oilseeds

and



—mostly

.66

.26

.15

.24

1.37

.40

.34

.16

.37

1.55 1.52

.55

.46

.27

1,747,800 tons, exceeding the 1,437,700

.20

.36

.23

tons imported in

.78

.27

.31

.38

.08

.50

1.00

.33

.54

.28

.20

1.48

.45

.41

.27

.17

.74

.34

.28

.26

.37

.26

.41

.39

.42

.48

.35

.26

.34

.38

.26

.35 .35

soybeans

cent.

1976

1974/75 totaled a record

1973/74 by 21 perSoybean imports in 1974/75 were

tons, a gain of 22 percent from the 1,417,000 tons of 1973/74. The United States supplied over 60

percent

of

total

soybean

imports

in

1974/75. Imports of edible thirds

April 5,

in

sunflower

oil)

oils

rose

As

output,



Spain’s

was 41 percent larger than in 1974/75. Cottonseed, soybean, and saffiowerseed areas declined. Peanut acreage was 8 percent larger than in the previous year.

larly for olive oil.

0.25

.25

from the 1,417,000 tons of 1973/74.”

which

.23

.81

were 1,730,000 tons, a gain of 22 percent

tons are olive oil and 70,000

0.61

5.43 1.38 1.22

1975/76

Spain’s soybean imports in 1974175

exports in 1975/76

.36

.71

in

.

compared

0.28

.17

acreage

Sunflowerseed

with 116,200 tons in 1974/75.

by the broiler and hog

.32

is

than in 1974/75.

3 percent larger

(of which

Sugar

.59

1975/76 oilseed acreage

estimated at a record 752,300 hectares,

the current marketing season are pro-

jected 100,000at only 40,000 tons

Rice

.84

Brazil.

Spain’s

output, imports in

oil

.16

1.37

and

a result of the sharp increase in

domestic edible

.32

.40

approximately equal shares of

soybean meal from the United States

in

j

.39

sisted of

1,750,000

at

which 230,000 tons will be soybean meal 24 percent above the 1974/ 75 level. This projection is based on an assumed increased demand, particularly

white,

pkgd.

domestic output.

the preceding season. 15,000

tons, of

Bread,

in

Over 80 percent of these imports con-

imports will be mainly from

season are expected to

Oranges.

by a sharp increase

the outturn to 476,900 metric tons, only

1,770,500 tons.

Despite

government sources.

1973/74. The reduction was caused

in

are expected to rise by 22,700 tons to

oilseed

imports of seed meals in the 1975/76

I

44.5 per-

23 percent larger than in 1974/75, but drought and heat probably have held

Spain’s

may

those in the reporting countries.

from



1975/76

rising

chased by U.S. consumers. However

and

Imports of vegetable protein meals in

1974/75 were 222,500 tons

were

prices

the total prices

season’s total of only 33,200 tons. Romania and the USSR

previous

the

cent below the 400,500 tons imported

than in the previous survey, bringing



New

Hit

an increase of 83,000 tons from

tons,

were the principal suppliers of sunflower oil in 1974/75. The United States was the leading supplier of soybean oil.

Of Oilseeds

season.

higher by 2 Australian cents per loaf .

Spain’s Imports

a result of the increase in olive

and sunflower

oil

production, aggregate

edible oil output (olive, sulfur, cottonseed, soybean,

from

saffiower)

peanut, sunflower, all

sources

is

and

expected to

increase in the current marketing season

911,700

about

to

tons,

15

percent

greater than in 1974/75.

Spain’s production of vegetable protein

meals (cottonseed, soybean, peanut,

sunflower, and other vegetable seeds) in

1975/76

is

projected to reach 1,571,300

an increase of about 1 percent from the 1,556,000 tons produced in 1974/75. Soybean meal output probably tons,

will total

the

same

about 1,394,300 tons as the quantity

—about

produced

in the

previous season.

— Based on report from

(about two-

Office of U.S. Agricultural Attache,

116,200

Madrid

to

Page 7

production, plus that in storage, would

Sugar Output,

Philippine

ity,

Exports To Rise

Attache Samson noted.

During peak production of the 1974/ 1F( 75 crop, total stocks exceeded the 1.2-

1975/76^^

in

million-ton

lthough

many

producers have

enthusiasm for the crop,

their

output was 60,000 metric tons from 20,000 hectares, about the same as the

out-

previous year’s. Production in 1975/76

sugar

Philippine lost

some of 1975/76

remain about the same

put and exports of centrifugal sugar are

is

expected to reach, or be near, record

as the previous years.

Glenn R. Samson, U.S. AgriculAttache, reports from Manila.

Centrifugal sugar production in the

1975/76 sugar year ust),

is

(

September- Aug-

expected to reach 2.75 million

(commercial weight), up from the 1973/74 record of 2.69 million tons. Sugar production in 1974/75 was 2.63 million tons, 2 per-

short

tons

slightly

=

ha

estimated 2.471

too

is

high,

ac-

24.6

million

Cane

yields averaged

compared with 56.8 tons in 1973/ The sugar yield averaged 215 pounds per metric ton of cane in 1974/75 versus 208 pounds in 1973/74, 75,

74.

Reduced fertilizer applications resulting from high prices, are probably lower cane yields. major cane areas was fairly uniform throughout most of the year and probably contributed to the reasonably good sugar yield rate recorded in 1974/75. The outlook in 1975/76 is for a small increase in sugar production on a larger hectarage. Output is expected responsible for the in the

be

about

2.75

million

short

tons

(commercial weight), and planted area is estimated at 525,000 hectares. Loss of producer fervor probably resulted from continued high domestic fertilizer prices and a drop in world sugar price. Also influencing production was a 1974/75 cut by the Philippine Government in the composite farm price from 14.6 U.S. cents per pound to 10.5 cents.

There are no official data on the 1974/75 production of nonconcentrifugal sugar but the Attache estimates

Page 8

yields

Philippine

exports

of

centrifugal

sugar

in

public of China, 11,760.

during

crop

million short

1.7

at

(commercial

tons

1975/76

the

year are forecast

near

weight),

From September

through Decem-

1

1975, Philippine sugar exports

ber 31.

161,500 tons, with two-

only

totaled

terminal

1974/75 but instead the Philippines allowed stocks to grow from 559,000 tons on September 1, 1974, to a record of 785,000 tons a year later. The. Government appears to be unwilling to ex-

more sugar than

fulfill

obligations

its

at

necessary

is

to

current world

prices.

Stocks on August 31, 1976, are expected

reach

to

about

835,000 short

tons (commercial weight), but could be larger.

As of January

31,

1976, they

had reached about 1.3 million tons but may be reduced by later exports. When world prices reached high levels in

1974, the Philippines stopped

shipping

sugar,

would began the

rise

to

still

drop

hoping export prices more. Even as they

in the latter part

Government continued

storing

sugar in

its

anticipation

of 1974, policy of that

the

downtrend would soon be reversed. Exports were increased only after the Government realized that it had to move sugar into export or the 1974/75

more

a

to

but the Government’s

level,

now seems

decision to export

on the

to hinge

s(

availability of storage space for

new production

tiK

on world

rather than

)i

prices.

However,

January 1976, deteri-

iip(

oration of 1974/75 crop raw sugar had

ii

as of

become a major problem. The Philippines National Bank (PNB) reportedly

a

has about 450,000 tons of old sugar

w

primarily

located

major sugar

the

in

Ti

«i

growing areas of Panay, Negreos, and

as

Leyte.

The Attache

estimates that 400,000

Id

not exportable

T

current condition. Substantial dis-

k

coloration and a reduction in the sugar’s

)ta

in its

be

to

some

to

is

some of

the sugar

kci

and be reprocessed for export and/

refined

domestic

for

The weight

or domestic use.

use

iki

\

loss result-

ton

from reprocessing this sugar amount to about 15,000 tons.

will

both

old

!

occur unless

ilE

ing

thirds going to Japan.

port

drawn stocks down

manageable

Further

for

in schoolhouses,

it

and even on public roads and parking lots. Exports have

courts,

the

1972/73.

in

store

polarity will require

previous record of 1.725 million tons

By

capacity.

public auditoriums, gymnasiums, pelota

tons of this old sugar

Larger exports had been anticipated

the Attache said.

to

Molasses

were also down sharply in 1974/75 even though the purity rate was up, Attache Samson declared.

Exports

totaled

47.7 metric tons per hectare in 1974/

Rain

890,000 than the

Morocco, 16,352; and the People’s Re-

is

metric tons, compared with 26 million tons in 1973/74.

1973/74.

in

at

less

80,463; Iran, 44,665; Finland, 34,171;

Sugar Institute, cording to Samson.

Ground cane

estimated percent

some

acres), but there

belief this figure, released

pine

outturn

7

by the Philip-

in

at

tons,

1974/75 is offi516,000 hectares (1

turn.

cially

metric

1974/75 totaled 1,488,981 short tons (commercial weight). Shipments by destination, in short tons, were: Japan, 692,054; the United States, 569,516; the United Kingdom,

cent less than the previous year’s out-

Harvested area

preliminarily

is

raw sugar and

since

Molasses production during 1974/75

levels,

tural

forecast to

mill-storage

1975, mills were forced to bag

April

A

5i

overwhelm the country’s storage capac-

deterioration

and new crop sugar

more sugar

is

a

may

n

exported or additional

permanent storage

S

of

dO!

UGAR CONSUMPTION

— now month — seems pines

are built.

facilities

at

Itio

!

ti

the Philip-

in

about 80,000 tons

to be

it

I

on an uptrend,

U(

i

spurred by a rising population, larger

k

sugar stocks, and favorable, controlled

)!(

domestic prices. Practically

ill

all

of the

native noncentrifugal sugar produced

is

(It

Sugar withdrawn from stocks and presumed to be consumed during 1974/ 75 amounted to 964,434 short tons. This compares with 903,470 tons in 1973/74 and 872,705 tons in 1972/73.

il

consumed

Based

locally.

on

data,

250,000 metric tons,

is

molasses estimated

20,000 tons

or 8 percent less than in the previous year.

Usage by

distilleries in the

facture of alcohol

000

lit

toi

available

consumed during 1973/74 at

Hi

is

manu-

estimated at 120,-

lit

U k pli

k

Other domestic uses, including animal feed formulation, is estimated to be 130,000 tons. tons.

Foreign Agriculture

*P

-^ 1

Hopes jFor Rebound In Wheat ^Brazil

i

many

discourage

** 1

wheat harvests in recent history, will be making an all-out produc-

est

Brazil

—a

comeback

tion effort this year

good weather could boost output

iwith

*

that

to 4-5

million metric tons, or roughly

1975 crop. Meanwhile, the country is compensat1 ing for the 1975 shortfall with wheat three times the reduced

imports this year (Oct.-Sept.)



of 3.7

million tons or more, the largest share

coming from the United States. To bring the hoped for production recovery, the Brazilian Government has of this

'

1

a

aside

set

reserve

of 460,000

tons

of seed (including 14,000 tons import-

ed from Mexico and the United States) This amount

i* F

100,000 tons more than last year’s reserve and enough to plant about 4.1 million hectares (1

I above ^

=

hectare

is

2.471

acres)

—30

percent

could yield a crop of 5 million tons, or close to the

wheat

self-sufficiency long

sought by Brazil. '

!

.

j

_

;

l

More

however,

likely,

is

a planted

area of around 3.3 million hectares and a harvest of

4 million

tons.

As

usual,

Rio Grande do Sul and Parana States will account for the bulk of production, with their crops estimated at 2 million

and 1.5 million tons, respectively,

A

new

technological factor that could

j

average

boost J

wheat yields

and help avoid disasters harvest

^

is

in

like the

Brazil

1975

the increased use of agricul-

tural fungicides.

The high humidity

I

i

ij

1

!

;

Rio Grande do Sul and Parana promotes growth of rust and other diseases with resulting lower yields and quality. in

1975 wheat crop, harvested October-December, has been ten-

Brazil’s last

1.48 million tons

chaser of the crop.

—the

The

sole pur-

crop, which

planting

at

time,

from

suffered

tributed to fungus and insect attacks.

response

Brazil

to

has greatly boosted

of wheat this year.

which

crop

the

imports

actual

that

However, indications are

ize

more

• Slippage of U.S. Cotton

1976, compared

in fiscal

Volume Recorded

with 2.0 million purchased in 1975.

As

largest suppliers.

It

is

lion tons in fiscal 1976,

compared with

700,000 In

• Soviet

cur-

arOund 2.8 mil-

Livestock •

Canada

higher, since

fertilizer.

While use of fungicides in Brazil is apparently economic, the high costs of the chemicals and equipment still

Export

November (FC The

Statistics:

Economy (FG

Grain-

1-76)

December Trade in U.S. LiveMeat Exceeded Year-Earlier

Level

expected to

is

Under

agreement.

(FLM MT

2-76)

• Brazilian Export Incentive Pro-

grams

part of a long-term government-

fulfill

to-government

in

stock.

last year.

addition,

1-

2-76)

usual, the United States will be

rently expected to ship

1974/75 (FC

• World Cotton Output Hit by Weather; Mill Consumption Outlook Improves (FC 3-76)

imports will be closer to

4 million tons

in

76)

Brazil’s

million tons.

1-76)

World Cotton Trade Declined

To 6-Year Low

import agency, has said that these purchases may reach 3.8 is

(FOP

2-76)

Single copies

this

may be

obtained free

chase another 300,000 tons of Canadian

from the Foreign Agriculture Service, USDA, Washington, D.C. 20250,

wheat during 1976.

Rm. 5918-S;Tel. 447-7937.

agreement, Brazil has the option to pur-

Also, Brazil has just bought 40,000 tons of wheat from France,

first

such

purchase since 1968.

Grain committed to ship 490,000 tons during Deeember 1975-March 1976. This wheat was purchased by Brazil on tender. Argentina is believed unlikely, however, to offer much, if any, more wheat for 1976 delivery. To guard against steep price increases later in the year, the Wheat Board is Finally, the Argentine National

Board

reportedly importing heavily during the first

the domestic front, the country

expects a 9.6 percent increase in food

The

of

wheat

to

big gain reflects,

things, the large

foods.

tion

other

consumer subsidy on

recently relative

other staple

to

—Based on

dispatch from

Edmond

Missiaen,

Assistant U.S. Agncultura)~~Attache, Brasilia

Iranian rice produc-

and trade which are

different

from

November

10,

1975, issue of Foreign Agriculture.

The

those published in the

Iranian figures:

“According to information received from the Ministry of Agriculture and Natural Resources, the correct produc(for

850,000 tons and

1974 and 1975) are 1,050,000 tons, re-

spectively.

“The

4,850,000

among

bread and other wheat products to decline

The Embassy of Iran has provided official figures for

tion figures

half of 1976.

On

Rice Production and Trade Data Provided by Iran

is

wheat, which has caused the price of

still



The Wheat Board,

from the current average of 1,200 kilograms per hectare to 1,600. go

(FOP

setback,

its

Lentil Ex-

Reached Record Levels in 1974/75 (FDP 1-76) • World Oilseeds and Meals Output Forecast at 70.4 Million Tons

during August-October. The latter conIn

1-76)

Dry Bean and

ports

severe frosts in July and excessive rains

tons.

yields could

• U.S.

the

consumption

And

and 1976

3-76)

(FCOF

Bags

is

made

only about 40 percent of forecasts

and according to some sources, boost

plants protected by fungicides can util-

ji

at

by the Bank of Brazil

in



This climate-related problem can be alleviated with the use of fungicides, yields

Crop

Canned Fruit Prices in the Netherlands, West Germany, and the United Kingdom (FCAN 1-76) • World Coffee Production Estimate Unchanged at 72.5 Million

(FOP

supply 500,000 tons in April-July to

planted area.

last year’s

With good weather, such an area

Publications

Castorbean

of fungicides on wheat.

one of the

for planting during April-June.

New FAS • World

TRIGO), has begun a campaign to have the Government subsidize the use

I I

®

small-

its

offset

Trade Expected To Increase

tatively estimated

N THE aftermath of one of

”,

To

producers.

problem, the Federation of Wheat and Soybean Cooperatives (FECO-

this

official

Iranian trade statistics

put total rice imports from the United States for the at

first

9 months of (1974)

162,000 tons.

“The Ministry estimates

that imports

of rice in 1975 will total only 400,000

Taking into account the stock from previous years, Iran’s net imports of rice (in 1975) will be between 150,000 and 200,000 tons.”

tons.

t

April 5,

1976

Page 9



Thailand’s Future as

Rice Exporter Questioned By SUPAT WIBULSETH Office of the U.S. Agricultural Attache

Bangkok espite a strong

D

demand

for rice

on international markes, such prob-

lems

as

production

rising

Thai

traditional

in

some

importing coun-

rice

increasing competition in world markets from other exporters, and to tries,

much

a

degree

lesser

—high



domestic

food prices that tended to boost con-

1974 and 1975. But with an estimated carryover of 500,000 tons of milled rice from the 1974/75 crop, plus 1.5 million tons from the record 1975/ 76 production, Thailand will have to of

new markets

find

most of

if

is

it

to sell

all

or

nearly 2-million-ton surplus

its

1976.

in

The

sumption of rice alternatives, caused Thailand to end the 1975 marketing

to depress

year with a sizable rice carryover that

and, under normal market conditions,

1976

would have a dampening effect on proBut the Thai Government’s goal is to pay a high guarantee price to farmers and this will probably induce them to plant a larger rice area in 1976. Thus production will probably rise again. If local consumption remains unchanged, production growth in the im-

complicate

could

country’s

the

export program.

reduce Thailand’s importance as

a rice exporter by

The general dilemma may some forms of

1990.

solution to this long-term a

in

lie

domestic rice prices in 1976

duction.

But even more important to the Thai economy, however, are the factors that

may

large size of this stock will tend

decrease

in

domestic consumption rather than

in-

mediate future

will

make

it

even more

creased production, although higher out-

imperative

put could also play

exports or else Thailand will see

A

major drop

in

its

part.

Thailand’s rice ex-

ports could be catastrophic since rice is

short-term

and in some years has provided as muclT as 25 percent of total trade

Government revenues

export earnings. also

depend strongly on the rice trade Royal Thai Government levies a

as the

number of taxes against rice exports. The unrest following World War and the subsequent

Far

conflict in the

East helped Thailand to strengthen standing

as

a

rice

exporter.

II

its

But the

recent end of the conflict in Southeast

Asia

will

probably permit reemergence

of Vietnam and

Cambodia

as rice ex-

and stiffen the competition Thailand must face in the future. Most of Thailand’s rice exports go to its Far East neighbors. In 1975, Hong Kong took 122,250 tons ^ of milled Thai rice; Sri Lanka, 101,500;

Over

Africa, about 70,000.

pected

1976, Thai to

be

rice

about

AH

tons are metric.

Page 10

to

however,

period,

and Thaimeet its

find itself unable to

milled rice export target of about

by the

1990’s.

To produce

sufficient

rice

to

mil-

1

meet

both domestic and export needs over the

years,

Thailand has regularly

in-

creased the area under rice cultivation.

As

a

consequence, the size of the rice

crop has been on a general uptrend for the past

15 years, rising at a

more or

Production continue

at

in

1976

is

expected to

over 14 million tons (rough)

but meeting the 1990 export target by am

less fixed rate.

continuing to boost production

Thailand harvested

a

record rough

may

not

be possible because of a shortage of 1

rice

crop of 14.5 million tons in 1974

and production is expected to reach a new peak in excess of 15 million tons in

1975. Production

in

the past 3 years

has been over 14 million tons of rough

with

each

succeeding crop



fol-

land

additional

suitable

for

rice

pro-

duction, relatively limited use of inputs,

and a lack of technical know-how by farmers whose yields are low. Should Thailand be willing to pay the price required to remain a major rice

many

k I

lowing the monsoon failure in 1972

exporting country after the next 10-15 *c

exports are ex1.3

million

tons

(milled), 30 percent greater than those ^

rice its

continue

lion tons a year

setting a

In

longer

the

may

land

rice

and countries of

surpluses

will cut into these surpluses

Singapore, 102,800; India, 142,260; the

70,980;

increase

population growth and other pressures

porters

Philippines,

rice

further

rise.

the most important item in Thailand’s

foreign

to

new

record.

Adequate rain

last

years,

will

it

have to cut domestic per

year combined with sufficient fertilizer

capita rice consumption. At present this

stocks during the planting season and

stands at

increased area will

an inflated figure that also includes rice

1975 record.

all

contribute to a

cooked

in

1

pound per day per person, the

home

for animal feed.

Foreign Agriculture

I

Any

metropolitan market.

rice that

is

demand

is

over after meeting this

left

But the Government’s need is also a powerelement in setting export goals.

exported.

for foreign exchange ful

Thailand’s

output

rice

consists

of

Rapeseed

^Polish

Crop Peaks, Oilseed

To Continue

Imports

both glutinous and nonglutinous types.

Thai left,

girls,

Production of the former accounts for of annual production, the

mid-season problems to harvest a record

latter for the balance.

rapeseed

transplant

nursery-grown rice seedlings

a flooded Typical Thai market stall, below, with baskets in

field.

of rice

and

Nearly

all

glutinous rice

is

consumed

consumption

38 percent of the country’s

total

many

in

other

rice

producing

When

rains.

there

is

ade-

little

from the long-term

average. So that rice farmers can bene-

from the monsoon rains most of which run off in short order irrigation and flood control projects are further

being built in the Central Plains.

Now,

than 10 percent of Thailand’s rice area is irrigated on a steady basis.

less

Extension

programs that are more

responsive to the needs of the farmers

and geared are

to

training

enable

programs Thai pro-

ducers to react to the changing tech-

problems that

animal feed to corn or grain sorghum,

nical

which are grown commercially. the consumption habits of humans and animals would take considerable time to achieve. But it would

intensive

will

demand more

land use and increased per-

acre production.

enable Thailand to continue as a leading rice exporter

since Thailand’s arable land

at least for the next

(decade.

An

increase

in

yields

may

also

be

More than 80 percent

of Thailand’s

consumed domestically. The Government has the general policy of satisfying domestic consumer needs first, particularly in the Bangkok output of rice

April 5,

1976

limited,

programs to increase rice production and yields should be started immediately.

accessary.

total

is

is

Capital investments are also neeled

new seed,

and

rose

hectares

(1

The

rice varieties

and chemical plants, and better grades of

and more irrigation.

efficient control

of water

rape

in

20 percent to 309,000

=

2.471

acres).

came

even

though

hectare gain

yield

weather

at

output,

with

unfavorable

ranging

from

excessive

planting

time

times threatened to reduce

—which

conditions

moisture

prevented

some 40,000 hectares



at

harto an

unusually dry summer.

On

the other hand, insect control

was

reportedly better than in previous years. Infestations by the seedpod beetle, ^or instance,

from

were down

to about 6 percent

6.5 percent in 1974.

of the 1976 crop were 340,000 hectares a level that no doubt was met. Sowings of this crop began 2 weeks earlier than for 1975’s, a headstart that is supposedly beneficial to rapeseed. These began during the first week of August and were largely completed by month’s end. Poland’s demand for imported oilseeds and cake and meal, which has been strong in the past few years, is the result of improved and expanded livestock feeding. Need for such imports remains, as witnessed by a Polish offiPlantings

planned

cial’s



at

statement in a trade publication the

country would be having a “.

continued interest in

.

.

soy and pea-

nut meal, linseed cake, soybean, technical tallow,

and

The United

.

.

States

vegetable oils.”

.

is

a major sup-

plier of oilseed products, shipping soy-

beans and soybean meal, plus

much

of

imported by Poland. However, U.S. soybean sales have dipped from the peak levels of 1973, when a record 148,000 tons of soybeans and 312,000 of soybean meal the

to develop fertilizer

jump

the

last

portedly

that

However, agricultural development programs require long-term planning and a considerable time to effect, and



I

to increased rice production

— including farmer — necessary

for

year was a 13 percent gain in yield on harvested area that re-

production

vesting of

acre fluctuates

fit

Imports of oilseeds and products have increased in recent years.

Accounting

Rice is grown throughout Thailand on 70 percent of the cultivated area with more than 20 million acres planted in 1975. The largest producing area is in the Central Plain, which accounts for

on monsoon

To change

and oilcake and meal through

ports.

is

quate precipitation, rice production per

1

tion to maintain adequate supplies of

It

As

[both of

planned

increased domestic production and im-

countries, Thailand’s rice crop depends

use could probably be reduced

is

edible oil

is also consumed domesby the majority of the populace. grown in a region extending from

rice area.

considerably by shifting from rice for

further growth

tically

for

(Daily

Some

export rice but

47 percent of the country’s total area under rice. The next most important zone is the northeast region, accounting

patterns.

707,000

at

1974’s.

the Central Plains.

in its

estimated

crop,

metric tons for a 35 percent gain from for 1976, indicating Poland’s determina-

on display.

made

in

upper regions of northeast Thailand. Nonglutinous rice is Thailand’s major

the lower half of the northeast region to

hinges on changes being

Poland

domestically, mainly in the north and

other goods Thailand's future as a rice exporter

surmounted some

1975

one-third

technical

tallow

were exported to Poland.

Page 11

DEPARTMENT OF AGRICULTURE

U.S.

WASHINGTON. D C 20250 POSTAGE AND FEES PAID US DEPARTMENT OF AGRICULTURE AGR tOI

PENALTY FOR PRIVATE USE $300 OFFICIAL BUSINESS

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cation, please check here and return this sheet, or addressed portion of envelope in

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or

the new address, including ZIP and return the whole sheet to:

CODE,

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

FOREIGN AGRICULTURE

Saudi Arabia’s Wheat Output Up Saudi

Arabia’s

plantings

increased

of high-yield varieties have boosted the

wheat

country’s

production

substan-

The 1975 wheat tons,

farmers

obtain

harvest was



more

for

fertilizer

than $40 per ton. Government subsidy payments include 50 percent of the

45 percent of

retail price for fertilizer,

tially.

than

Saudi less

the cost of machines to distribute fer-

193,000 double that of 1974 compared with 90,000 tons.

tilizer,

March

tons of wheat per hectare from high-

In

1975, the heaviest rainfall

60 years helped supplement water for wheat fields in the Asir near areas highlands and irrigated Riyadh and Burayda. Area planted to high-yield varieties of wheat increased from about 2,000 hectares in 1974 to about 10,000 hec-

and several other

Saudi farmers harvest more than 6

in

yield varieties

supplies

age

tares

in

1975,

when

the

total

area

harvested was about 50,000 hectares. Plantings

of

high-yield

varieties

of

1975/76 for harvest during April-June 1976 probably exceed 12,000 hectares. Total area planted in wheat remained about the same this season. Government subsidies equal to about 7 U.S. cents per kilogram (about $70 per ton) encourage most farmers to sell their wheat in the market rather wheat

in

benefits.

— more

for

yields

south Asia. They use izer

per

190,000 prices,

hectare

usually

than triple aver-

high-yield

varieties

much more

and

receive

in

fertil-

higher

more than $5.50 per

140.000 tons in 1974, with arrivals from Australia rising from 27,300 tons to 119,000 tons. Australian shipments of wheat to Saudi Arabia fell to 54,000 tons in 1975, but exports of U.S. wheat re-

sumed with

tons of wheat were expected in the

by the Ministry of Agriculture and Water on subsidy payments in each amarite (county) indicate that dramatic gains in wheat procollected

duction have occurred

in

north central

Total

use

Page 12

wheat

of

Saudi Arabia in 1976

is

and

flour

in

likely to reach

850.000 tons (wheat equivalent), more

bushel.

than double the level recorded 5 years

Saudi Arabia’s imports of wheat flour have continued upward, despite the

ago.

strong rise in domestic wheat output.

and wheat valued

Imports of wheat flour increased from tons in 1973 to about 400,000

million annually, Saudi Arabia imports

tons in 1975.

from

Wheat imports

77,000 tons

in

1973

France’s Agriculture

increased to

In addition to imports of

about

continued

$25

and Brazil’s kets, is termed emergence as a leading soybean producer has been welcomed as an opportunity to diversify sources of supply. Reessential,

attitude, Brazilian coopera-

at

million

wheat

flour

more than $125 worth

of

bakery

products.

—John

about

Security of supplies, as well as mar-

flecting this

Saudi Arabia.

first

quarter of 1976.

nom Page

B.

Parker,

Jr.,

ERS

5

than keep supplies for household use. Statistics

12,000 tons.

deliveries of

Additional shipments of about 30,000

new oilseed now under construc-

tives are stockholders in a

processing plant tion in

ence

in

France and will have first prefersupplying soybeans to this plant.

However, they

will

not necessarily be

the sole supplier.

Foreign Agriculture 4U.S,

GOVERNMENT PRINTING

OFFICE: 1976

211-407/38

1-3

1976
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