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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

M^O

I

u ,

l

I

w

0

-,c^

--

-

L

::

FOREIGN AGRICULTURE November

U. $• D.

1,

1971

K

National ^gfKJUiv

Mexico Sells More Produce In U.S.

Winter Markets ami ament Section \ s

U.S.

Farm

Foreign Ag: i-.iiltural Service U.S.

DEPARTMENT

OF AGRICULTURE

AGRICULTURE

FOREIGN VOL. IX

November



No. 44



U.S. Winter Produce

1971

1,

In this issue:

Crowded by Rising Mexican Sales of Competitive Crops By C. John Fliginger, Earle E. Gavett, Joseph C. Podany, and Levi A. Powell, Sr.

SO 3

2

U.S. Winter Produce Markets

S0 31L

4

“Hypermarkets” Trend in France

5V'3>2>

6

State

Boost

One-Stop

Self-Service

By Alfred R.

Persi

and Regional Sources of Record 1971 U.S.

By

Farm Exports

Isaac E.

U.S. Businessmen Report Sales and Trade Contacts at

ANUGA

1971

Rising Mexican Sales

Lemon

Rotterdam Grain Facility Ups Hourly Capacity by 2,000 Tons

8

Markets Crowded by

Of Competitive Crops

U.S. Watermelons Popular With Consumers in United Kingdom

9

Crops and Markets

10

H05031

This week’s cover:

one of several

fruits

(see story

M. Hardin,

Secretary of Agriculture

tional Affairs

Raymond A.

and Commodity Programs

Ioanes,

Administrator,

Foreign

Agri-

cultural Service

Editorial Staff:

Patterson, Editor

Faith Payne, Associate Editors; Marcellus P. Murphy, Isabel A. Smith, Daniel B. Baker, Lloyd J. Fleck. F.

Beal,

Advisory Board:

Kenneth F. McDaniel, Chairman; Horace J. Davis, Anthony R. DeFelice, Robert H. Ingram, Leonard B. Kelley, Kenneth K. Krogh, J. Don Looper, Donald M. Rubel, Larry F. Thomasson, 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

Mexican cantaloups

Si

Servic

beginning this page).

Clarence D. Palmby, Assistant Secretary for Interna-

Janet

POWELL,

and vegetables being shipped

Inspecting

Kay Owsley

A.

Economic Research

in increasing quantities to U.S. winter

produce markets

Clifford

C.

LEVI

Workers plant strawberry seedlings one by one on ridges in irrigated field in Mexico. Strawberries are

from Mexico

JOHN FLIGINGEF EARLE E. GAVETI JOSEPH C. PODANY, an By

at the U.S. bora

Mexico’s deepening inroads into the U.S. winter produce market, while providing

supplies

larger

American

for

consumers, are causing profound concern among domestic producers.

Mexican sales and fruits to

Recordbreaking winter

vegetables

of



Mexico’s exports of fresh winter vegetables to the United States totaled

$137 70 percent. Mexican tomatoes compete directly with those of Florida and the competimillion, with tomatoes accounting

for

tion

is

getting tougher.

and

lower

More

favorable

production

costs

combined with improving production practices are giving Mexico more leverage in the U.S. tomato market. For example, by proper timing and careful application of fertilizers and pesticides and some changes in varieties, Mexico now is producing a higher percentage of larger tomatoes. In fact, it

is

now growing about

portion of large

the

same pro-

tomatoes as Florida,

which had a considerable

size

ther fortified

more than

advan-

tage only 3 years ago.

its

by supplying

position

half the fresh winter toma-

toes for the U.S. market, about

264,000

At

the beginning of the 1970-71 sea-

son,

in

tions,

traints

advantage over Mexico for producing green peppers, this edge has not only dwindled, but has failed to keep Mexico

from taking a market.

mained

metric tons.

the

United States in 1970-71, valued at $191 million, were nearly double those of 1967 and four times greater than the value of 1960 shipments and the peak is not yet in sight.

weather

In 1969-70, when adverse weather reduced yields in Florida, Mexico fur-

order to forestall U.S.

restric-

Mexico imposed voluntary reson its shipments of winter toma-

toes.

An

export limit of 180,000 metric

tons

to

the

United States

(excluding

larger share of the U.S.

Yields

Florida

in

have

re-

relatively level over the past 3

while export yields in Mexico

years,

nearly doubled.

1967-68, Florida had a 36-cent but this has virtually disappeared mainly because of In

price edge for eggplant,

Mexico’s exports of

rising labor costs.

However, by

eggplant to the United States have trip-

end of May, exports to the United States had reached 234,000 tons (in-

pled since 1967, while Florida’s produc-

cluding cherry tomatoes), less than the

eral, yields

per acre in both areas have

remained

the

cherry tomatoes) was

set.

the

previous year, but

substantially

more

remained

tion has

fairly static. In gen-

same,

Mexico’s

but

acreage has risen sharply. With Florida

than the voluntary target.

The future for vine-ripened tomatoes seems to favor Mexico, mainly because of Florida’s heavier and increasing costs and less certain weather. However, about 83 percent of Florida’s fresh market production was from mature green tomatoes in 1969-70. Florida growers are making concerted efforts to reduce production and marketing costs for mature green tomatoes by developing varieties suitable for mechanical harvesting and adapting harvesters to the needs of the product.

and Mexico now on a par and with Florida’s costs spiraling

more

Mexico can be expected

to grab a big-

rapidly,

ger portion of the U.S. eggplant market.

Fresh strawberry imports from Mex-

more than doubled

ico have

since 1967,

while U.S. production increased about a third.

The

largest output of early

mestic strawberries

is

do-

from California

where volume shipments begin

in late

February. Florida’s production extends

from lanuary through however,

starts

April.

Mexico,

shipping in October and

May. Mexico has enlarged

Although weather throws the longterm advantage to Mexico, Florida enjoys an in-season edge because of lower

continues into

Mexican production costs were up $18.36 an acre from 1967-68, they still totaled less than $600 per acre, about a

marketing costs resulting from lower container costs and more automated

third of Florida’s nearly $1,700

to prolong Florida’s advantage with

ture greens for a while, but eventually

few years, mainly because the spread between costs of production and marketing between the United States and Mexico has shifted in Mexico’s favor. About 30 percent of Mexico’s output

Mexico, on the other hand, has had an 11-percent decline in materials costs over the last 3 years, as a result of lower unit prices for fertilizers and pes-

Mexico can be expected

goes

ticides.

in

Production costs also favor Mexican growers. Although in the 1969-70 season,

tag in the

same

price

year.

Mexico has the edge

in marketing marketing costs have risen more rapidly than Mexico’s, primarily as a result of higher harvesting prices, mainly for labor.

costs,

too.

Florida’s

In total, Florida’s cost for producing

and marketing winter tomatoes averages $2.39 per 20 pounds, compared with Mexico’s $2.02, giving Mexico a 37-

systems. Automation

production, reduce

five other

November

1,

1971

major winter crops: Cucum-

peppers,

bers,

eggplant,

and cantaloups. In cucumber output, Florida

still

strawberries,

share of the

into

exports

Even though production

Mexico

is

fresh

for

last

market.

virtually all the U.S. early

is

sold

still

fresh

for

market,

expected to expand

its

share at a steady pace.

Mexico ries to the

also exports frozen strawber-

United

States.

Shipments of

these have risen dramatically over the for

example,

has a cost advantage, but

last

decade, reaching a record high of

101.5 million pounds

in

1970. This rep-

the margin has declined sharply in re-

resented 40 percent of the U.S. market.

Per acre production costs

Cantaloups are the only item on the list not in direct competition with Mexico. Domestic production during the cold winter

cent years.

and per unit marketing costs are up in both Florida and Mexico. However, a sharp

and strengthened its position in the west. At the same time, Mexico’s gain has helped weaken Florida’s position in the New York market and created an even more pronounced disadvantage in Chicago and San Francisco.

automate its and pene-

costs,

varying degrees the U.S. market for

unit

eastern U.S. markets

to

ma-

more deeply into the U.S. market. The United States and Mexico share

Mexico increase

penetration of the

be sufficient

trate

cent price advantage. This has helped its

its

may

its

U.S. fresh strawberry market in the

rise in yields

has reduced the per

in Mexico. Furweather will continue to limit volume production in Florida during the severe winter months. Thus, imports from both Mexico and the Caribbean are expected to expand with little com-

production cost

ther, cold

from domestic producers. Although Florida still enjoys a cost

petition

U.S. winter marketing

months

is

practically nonexistent, leav-

open for the MexiMexican cantaloups are winter and early spring. In

ing the market wide

can product. shipped in late

May when

Texas

starts

shipping

and in June when California and Arizona cantaloups start moving, Mexico stops exporting.

Page 3

“Hypermarkets” Boost One-Stop r n39

-

Self-Service

Trend By

ALFRED

R.

France

in

PERSI

by supplying French consumers with a wide variety of foods under one roof, and a fast turnover of food, which is

Trade Projects Division Foreign Agricultural Service

less

France

another of the European

is

where changing socioeconomic and demographic trends have altered consumer habits. In turn, these new buying practices have effected modifications in the country’s food mer-

countries

chandising industry.

For some

years

had

supermarkets

And

been part of the French scene.

in

bought

“hypermarket,”

its

which

to shop,

movement

Population

which

is

and lower

is

in

setting

in

step

to the suburbs,

France, French

one-stop marketing. This

in

has given impetus to the formation of large

shopping

units

with

adequate

lower and more stable prices. According to a recent French poll, stores with multiple departments (supermarkets and hypermarkets) accounted for 17 percent of retail food

2,500 square meters. The average supermarket opened during 1970 with private parking facilities had space for 248 cars, or a parking area five times

ally

sales; this

Another factor is the significant number of French women who work away from the home. According to the latest official French census (1968), about 35 percent of the employed population, or 6.9 million persons, consists of

search small

whom

for

to

food

in

items

specialized neighborhood stores. Hypermarkets meet these new factors

Page 4

is

expected to

of

400

square

meters

to

larger than the area devoted to selling.

The French

in-

Self-Service Institute re-

ports that in 1970, the average return

According to the French Self-Service supermarket is a retail store

Institute, a

per square meter of supermarket floor-

selling

store,

products



for

the

most part food

groceries, fresh produce, liq-

further that had supermarkets in France as of lanuary 1, 1971, been in operation all

estimated

1,833

wines and soft drinks, meat and meat products and some nonfood merchandise. Most sales in a supermarket are on a Payment for purself-service basis. such

uids

as

made in one operation at is checkout counters, except for items bought in special departments. The avchases

number of checkout counters is The average number of employees

erage six. is

30. all

French supermarkets keep this development is

evening hours, but

among

stores

located outside the centers of the

cities.

taking hold, particularly

Some

stores

remain open on Wednes-

women,

do not have time

individual

percentage

crease in the current decade.

Not

parking areas.

most of

a

minimum

dairy items,

prices.

suburbanites have mobility, an important

normally 7:30 p.m. Supermarket selling area rims from

Institute

continuing, has given rise to

common

is

These

or else a distinct department within a

new construction, particularly of apartment buildings. Since automobile ownership

Closing hour for French supermarkets

customers a

more spacious

a

store.

if

space was $2,252, with 90 percent of sales consisting of food products. The

wider range of food products, more nonfood goods than the normal supermarket,

neighborhood

at a

than

consisting of a separate establishment,

a

basically

service store that offers

spoilage

self-

face with the establishment of the

first

home

large self-service stores also offer gener-

1963 French food marketing took on a

new

subject to

days and Fridays until 10 p.m., while others keep late hours on Fridays only.

French supermarkets and hypermarkets offer large stocks and fast service. Above, a self-service bread department; right, checkout counters. Foreign Agriculture

of January

hypermarket’s

had grown

self-service basis.

A

to 130.

hypermarket’s inventory

is

larger

than that of a supermarket and includes

most of the same items offered for sale by the smaller unit such as fresh produce, meats and meat products, and dairy products. But the hypermarket also offers a variety of bakery items, frozen convenience foods, and delicatessen items. In addition, most hypermarkets sell clothing, appliances, and furniture, as well as other nonfood items.

minimum

The French

area

selling

hypermarket

of

a

about

2,500 square meters, while the average space is

supermarkets.

1971, had a selling area of over 5,000

square meters.

ited

French



est

one of the leading hypermarkets

in

the area and learned

from the store’s 60 percent of the

manager store’s

would have accounted

The average number of parking spaces per hypermarket on July 1, 1971, was

added that 65 percent of

the beginning of 1961 there were

1,147, or a space 5.9 times larger than

percent nonfood items. This hypermar-

of

1970,

supermarket sales for that period would have amounted to $2.8 billion, of

which food

sales

for $2.5 billion.

fewer than 100 supermarkets in France

the

compared with 1,833 on January 1, 1971. Some 219 new supermarkets were established in 1970; this compared with 328 opened in 1969, and 217 in 1968. Based on the rate of expansion

parking area

Their

during 1970,

generally

it

is

estimated that there

were over supermarkets 1,940 France as of July 1, 1971.

in

first

such establishment, opened

doors in Sainte Genevieve-des-Bois.

store’s

selling is

area.

its

As

In

fact,

so large that

it

is

the

often

shared by adjacent merchants.

The main merchandising hypermarkets retail

is

prices

on

food items are

about 5 percent those of supermarkets.

basis

as

and one operation

cafeteria, in

on

less

than

a self-service

—except such snackbar, boutiques—being made

with payment

departments

strategy of

the

at

for

store’s

checkout counters.

50 to

that

space was devoted to food.

sales consisted of

his

He

store’s

food items versus 35

had 40 checkout counters through which 180,000 persons passed each week. At that time, sales were about $1

ket

million per week.

The

to offer discount prices.

Sales are generally

The hypermarket made its appearance June 15, 1963, when Carrefour, the

The average number

hypermarket checkout counters is 26; each hypermarket employs an average of 208 persons. All hypermarkets remain open as late as 10 p.m. once a week, generally on Friday. Others remain late every weekday evening. Between 50 and 75 percent of hypermarket sales consist of food products. According to the Institute, the average return to the hypermarket in 1970 was $2,162 per square meter, which is a little lower than the income for French

of

their grounds, generally at a discount.

year

total

l

90 percent of a is on a

sales area

total

hypermarkets have large parking facilities and sell gasoline on

throughout the entire

At

the average, about

The Greater Paris Basin has the largnumber of hypermarkets 18 as of July 1, 1971. The author recently vis-

5,872 square meters. Over 48 percent of all French hypermarkets on July 1, is

i

On

1, 1971, there were 115 hypermarkets and 6 months later the total

Institute has estimated that had 115 of the hypermarkets existing as

all

January throughout of

1,

1971,

been

operating

hypermarket sales for that year would have amounted to $1.4 billion, of which food would have accounted for $961 million. French merchandising experts believe that construction of supermarkets and hypermarkets will continue at a rapid pace in the future. They predict that 1970,

total

within the next 5 years, the hypermarkets will reach 500.

number

of

Hypermarkets duplicate many of the by supermarkets and at the same time have many that are unique. Because hypermarkets draw their clientele from a greater area than the normal supermarket, they must proservices offered

vide a larger inventory of merchandise.

The hypermarket has gained wide consumer acceptance because of lower and the great variety of products found under one roof.

prices to be

Supermarkets and hypermarkets have affected

food

retail

and

France, wholesale

are

also

distribution.

distribution

influencing If

the

in its

French

trend follows the U.S. model, distribution

patterns

will

enced even more

November

1,

1971

probably

be

influ-

in the future.

Page 5

STATE AND REGIONAL

SOURCES OF RECORD 1971

FARM EXPORTS

U.S. By ISAAC

LEMON

E.

Foreign Development and

Trade Division

Economic Research Service

The United

Mot

is

the world’s sin-

gle biggest exporter of

farm products,

and

1971

in

one-sixth

of

States

supplied the goods for

it

international

agricultural

U.S. farm products are of impor-

sales.

tance to the world.

At kets

the

same

are

important

time, international mar-

farmers.

U.S.

to

About one-seventh of the average U.S. farmer’s income derives from foreign sales; and the output of about 1 acre out of every 4 harvested

is

either ex-

Region boundary

vv

ported directly or used to produce agri-

Reg on name and export

cultural exports.

sh

For seven major U.S. products

—soybeans,

cotton, rice, tallow,

between

one-third

n gray

res

agricultural

wheat,

tobacco,

State boundary

and cattle hides and two-thirds of

total

U.S. production was exported in

fiscal

1971.

$ 20.7 State export values

in

millions of dollars

Farmers in some regions and States and producers of certain commodities had particularly large shares of U.S. farm sales abroad. This does not mean that farmers in other areas or specializ-

and vegetables ($0.6

ing in other output did not benefit also.

(nearly

The outward flow of some agricultural goods from some areas enlarged the

tonseed

market

(nearly $0.3 billion each)

within

available

States for

all

United

the

farmers.

oils,

billion);

billion);

lard and tallow, and rice

All were sent abroad in major quanti-

1971 U.S. farm products worth approximately $7.8 billion were In

tobacco soybean meal (nearly $0.4 billion); soybean and cot$0.6

fiscal

ties

and

by the leading exporting regions States.

The seven

States

of the

The

three leading export-

West North Central region had

particu-

ing regions were

West North Central

larly strong export records in

most of

sold abroad.

($2.3 billion), the East North Central

($1.4 billion), and the West South Central

($1.2 billion).

The

commodity group-

ings in 1971 for exports

were soybeans

($1.3 billion), wheat and flour billion),

Other

products

Page 6

and feedgrains ($1.1

important ($0.9

items billion);

were:

($1.2

billion).

Animal

fruits,

nuts,

Dakota was the runnerup wheat shipTogether, the two supplied more than one-third of U.S. wheat and flour per.

exports. Minnesota, besides contributing

many

other products, was the nation’s

chief

supplier

of

Iowa, which had the second largest

U.S.

feedgrains

overseas,

among the top 10 The champion

North Central region.

meat shipments,

nearly 10 percent of

grains,

11

percent of

and,

along

exporting States.

abroad of any State in 1971, supplied 16 percent of soybean and soybean product exports, 15 percent of 13

Ne-

exports.

dairy

braska ranked fourth in shipments of with Iowa, Kansas, and Minnesota, was

these commodities.

sales

three leading

Kansas was the country’s leading exporter of wheat and flour while North

percent of all

lard

feed-

and

tal-

low, 8 percent of dairy products, and 7 percent of hides and skins.

ports,

ports in 1971.

It

for

State

however, was

Illinois,

farm

Illinois

all

ex-

of the East

shipped

U.S. farm ex-

supplied 16 percent of

the feedgrains exported, 19 percent of the soybeans

and soybean products, and Foreign Agriculture

1

(

“SK%\ $U0.9 G

eOBG

A.

l

FLORID*

important amounts of wheat and animal

export share. Texas also furnished 56

fornia, another of the top 10 exporters.

dominated farm exports from East North Central region with 29

percent of the region’s livestock product

However, the

percent of the

Central region contributed 16 percent of U.S. agricultural exports.

ports

Other regions, though not supplying large shares of total exports, were major sources of certain farm products. For example, the South Atlantic region

compare with those of the previous fiscal year? First, total exports were up 15 percent in value. However, the regions that gained receipts from exports were those whose commodities had greater sales or greater value on world

products.

It

The region

total.

as a

whole supplied more

than one-third of U.S. exports of soybeans, soybean

oil,

and protein meal;

one-fourth of the feedgrains and dairy

and nearly

products;

of the

one-fifth

hides and skins.

Central

region

supplied

West three-

tobacco.

One

Carolina, was

State in the region,

among

ers of U.S.

ton sold abroad by the United States.

cause of tobacco

—Texas—generated

State

45 per-

The

North

the top 10 export-

farm products,

fourths of the rice and half of the cot-

One

West South

furnished 88 percent of U.S. exports of

In contrast, the States of the

South

foreign sales. In total, the

chiefly be-

sales.

Pacific region provided

95 per-

cent of U.S. overseas sales of edible

glehanded and ranked fourth

nuts,

in

U.S.

November

1,

1971

nearly

63 percent of

fruits,

40

percent of vegetables, and 22 percent of rice most of which came from Cali-



region

also

in-

—Alaska.

How

did

1971

exports

by

region

markets.

Sharp value increases occurred

in ex-

ports of wheat, soybeans, cotton, feed-

cent of the region’s overseas sales sin-

farm exports. Cotton, feedgrains, wheat, and rice supplied three-fourths of Texas’

Pacific

cluded the only State with no farm ex-

and meal, tallow, and dairy products. Smaller gains were made in exports of lard, tobacco, and edible nuts. Values of rice and hides and skins declined. grains,

soybean

slaughter

oil

cattle,

Page 7

U.S. Businessme

Trade Contact Most of

92 U.S. exhibitors at the in Cologne, Germany, were pleased with the number and quality of the trade contacts they made. Several commented on the high ratio of the

ANUGA

1971

German

third country buyers to

—ranging and

buyers

as far off as

Europe the Congo and Thai-

ANUGA,

a biennial food trade

over nearly

of

all

land.

The Recently opened Koninklijke Bunge transshipment

facility

Rotterdam,

at

show, was held September 25 to October

and drew more than

1,

185,000

from 76 countries outside Germany. This was 1 including

visitors,

Rotterdam Grain

Bunge Limited)

Rotterdam harbor and the area’s second onshorebased terminal. The Grain Elevator Company (G.E.M.) owns the other on-

Europoort-area grain termi-

shore-based grain terminal, located in

Rotterdam’s grain transshipment ca-

was increased by 2,000 tons an

hour

in

July

late

Bunge N.V. opened

its

when Koninklijke

(Royal

nal in the Netherlands harbor.

The

some 240 yards long, capable of accommodating on one side vessels up to 120,000-deadweight tons (carrying capacity in long tons) and on the other vessels

the

is

The

Rotterdam-Botlek area.

the

of a jetty

facility consists

tion in the facility

jetty

there has four mobile pneumatic elevators with 1,600-ton

Two

hourly capacity.

are

under

construction

for

carries

same firm with a total capacity of 700 metric tons of heavy grain per hour. These are specially designed for

of discharging or loading grain

the transshipments of derivatives such

of up to 20,000 tons d.w.t. This

jetty

two large mobile towers capable from ocean vessels into barges and coasters at a rate of 2,000 tons of heavy grain per hour.

The towers

are linked to the

shore by an approach gallery containing

conveyor units

belts

which lead into storage

come series

units,

which

will

be-

operational next year, consist of a

of

specially

designed

concrete

bins with a total initial capacity of over

100,000 metric tons. The capacity of these units can be quadrupled at a later date.

corn gluten feed, tapioca

Ample anchorage and maneuver-

ing space for barges

and coasters

will

pellets, soy-

bean meal, and beet pulp.

The Grain

Silo

Company,

G.E.M.

a

subsidiary, controls a total storage ca-

150,000 metric tons, all lothe Rotterdam harbor area.

pacity of

cated

on the land.

These storage

the

as

in

G.E.M.

also operates 23 floating eleva-

tors with a total capacity of ric

7,700 met-

tons of heavy grain per hour.

G.E.M. a terminal

recently decided to construct



also in the

Europoort area.

The G.E.M. facility will not only replace some of its existing floating elevabut also expand its capacity for unloading derivatives. A jetty is planned tors

be provided in a special dock area. Rail

with two mobile towers capable of

and road connections are also

charging and loading vessels

to

be

provided.

Work was

started in April

1970 and

terminal

With the opening of its facility, Bunge becomes the second company with a discharging and loading installa-

in 1974.

Page 8

at

dis-

a capac-

ity of more than 2,000 metric tons of heavy grain per hour. This new grain

has progressed rapidly ever since.

is

than

in

scheduled to be completed

— By John

By the end of the show, eight agents had been appointed by U.S. firms, and some exhibitors were staying over to select agents from among applicants under consideration. The

eight appointed will handle

E. Riesz

Acting U.S. Agricultural Attache

The Hague

cit-

rus juice; institutional packs of canned

sweet corn and salad mixes; canned, glass packed,

and frozen

fruits

etables; freeze-dried chives

and

and vegshallots;

and Hawaiian products.

The majority of U.S.

other onshore-based mechanical

unloaders

foreign visitors

1969.

Hourly Capacity by 2,000 Tons pacity

more

percent

Ups

Facility

17,500

not

at

ANUGA

for

booking orders, but Substantial

Hawaiian

sales

specialty

exhibitors were

purpose of were made.

the

sales

of

a

items

variety to

of

nearly

every country in Europe were reported

from the Hawaiian booth, along with an invitation for a “Hawaiian Week” sales promotion from a French retailing firm.

U.S. citrus firms also did well: reported

sales

of

$700,000;

One

another

t

port Sales and

ANUGA

1971 made 45 fort

hotel

“excellent” contacts in

increase sales to

to

and bar

to the

items,

section of the U.S.

—which included 150 items new market—received widespread

at-

was

tention. Interest

frozen

ef-

its

German

trade.

The new products exhibit

the

especially high for

bread dough, portion meat handy snack packs, and conveni-

ence foods, such as “skillet dinners” and “sauce in jugs.” Precooked bacon,

which

packed

is

in

foil

British housewives take a taste of U.S. watermelon.

and can be

heated in a toaster, especially intrigued British buyers.

Meat products porter

did

One

well.

im-

increased his order for frozen

beef cuts by 20 tons, following his to the U.S. exhibit.

One

visit

sales included a

$50,000 order for variety meats and a $150,000 sale of turkey parts.

Many German amused

German

including

visitors,

Agriculture Minister Ertl, were

—and

“delightfully surprised”

with the American wines exhibited at the show.

Both California and Michigan

wines were included, and some Ameri-

can wine merchants

felt that

U.S. wines

Watermelon Popular With Consumers in United Kingdom U.S.

U.S. watermelons were introduced to U.K. consumers this summer when a test load of Charleston Grey Hybrid melons was sea-shipped to the United Kingdom. The success of the test reflects the time and effort invested in this country and in the United Kingdom.

could be successfully marketed in Ger-

many within The U.S.

exhibit

Introduction of

a

new

agricultural

item to an export market can be a

a few years.

included

a small

cult

task.

Producers

are

diffi-

hesitant

to

dining room, finished in Early Ameri-

enter the previously unexplored export

style, at which key members of the German food economy were guests at

field,

can

featuring U.S. choice corn on the cob, Idaho baked

During the

daily luncheons, steaks, l

potatoes, iceberg salad,

and California

wines.

Honored guest was Minister

at the first

luncheon

Ertl.

and import agents and

are reluctant to handle the

recent

velop and guide the marketing method.

For the test project the National Watermelon Growers and Distributors Association, working with the Floridabased firm of A. Duda and Sons, shipped a container load (38,500 of selected high-quality melons.

The

load sailed from Norfolk, on May 28, 1971, aboard the United States Lines vessel, SS American Alliance. On June 7 the ship docked at

London’s port of Tilbury.

new

er

introduction

of

U.S. watermelons to the United King-

dom

these problems were effectively overcome by use of an integrated plan which fused into one program with a

common

objective the various marketing

activities

from production to consump-

Tasks such as product selection and grading, packaging, transportation, retail distribution, and promotion were all

designed to facilitate the sale of U.S.

watermelons

in

U.K. supermarkets

at a

reasonable price.

“r

However, there were certain unique problems associated with the introduction of U.S. watermelons to the U.K. market. These included the perishability of the product and the fact that the large

melons of 16 to 20 pounds were

unfamiliar to British housewives. In order to

most

cultural

Service

Agricultural

USDA’s Foreign cooperated

Research

Agri-

with

Service

to

Two

days

of the teamwork of

lat-

ARS

and the London importer, Safeway Food Stores Limited; and the London inspectors

Office of the U.S. Agricultural Attache



the

melons were ready to be proin 23 food stores in the

moted and sold London area.

Demonstrators

acquainted

shoppers

with ways to prepare and serve the

fruit

and passed out samples. The initial shipment was gone in 3 days with most of the melons being sold in cellophanewrapped halves, quarters, and eighths. In view of the success of the watermelon experiment, the integrated marketing method may be utilized for other items in the future.

may tion,

be short, but

is

The shipping season

if

quality, transporta-

and packaging are

the price

overcome these problems

effectively,

—because

J.O. Sims Limited; the retailer,

tion.

Minister Ertl samples U.S. wines.

first

Virginia,

distributors

items.

lb.)

great.

is

right



—By

reliable

—and

the export potential

E.

Bruce McEvoy

the

Assistant U.S. Agricultural Attache

de-

London Page 9

Difficulties in obtaining credit

have compounded the

situa-

causing one firm, which consumed about 30,000 bales

tion,

of cotton each year, to fold in early September. Several other companies are in serious financial trouble, and some estimate

Livestock and Meat Products

that

will

it

be impossible to continue operations

much

longer.

and European Community authorities are concerned about the Italian textile situation and are presently preparing Italian

U.S. Exports Holsteins to Yugoslavia The United

States shipped

stein heifers in late

260 head of registered bred Hol-

October for delivery to Belgrade, Yugo-

slavia.

Spain Reduces Cotton Import Duty

This shipment

is

the

part of

first

some 800 head of Holsteins few months. head of Holsteins to of U.S. cattle to Yugo-

that will be shipped to Yugoslavia over the next

In 1970 the United States exported 80

Yugoslavia



the

first

commercial

sale

slavia in recent years.

U.S. Hereford Heifers to Spain

On

legislation to grant support to the industry.

October

6,

551 head of U.S. bred Hereford heifers were

Spain has reduced

its

ad valorem import duty on cotton from

18 to 4 percent, effective September 2 through December 1, 1971. The temporary reduction in import duty will reduce

somewhat the higher prices being paid by domestic mills for imported cotton this year. Spanish imports of raw cotton averaged approximately 220,000 bales (480 pounds net) during the 5 years 1966-70. Cotton has been imported mainly from Egypt, Turkey, Brazil,

Exports of U.S. breeding cattle to Spain through August 1971 totaled 424 head, compared with 225 head during all of 1970,

Mexico, and Greece (an average of more than 18,000 bales from each of these countries during the 5-year period). U.S. cotton exports to Spain have averaged only about 5,000 bales

none

in recent years.

shipped from the Richmond, Va., loading

in

facility to Spain.

1969, and 36 head in 1968.

Spanish cotton production in 1971-72, estimated bales,

is

at

200,000

expected to be below average for the third consecutive

year because of heavy spring rains which have delayed planting.

Cotton Italy's

Dairy and Poultry

Cotton Textile Industry Threatened

Rising costs and constant market prices for cotton textile goods have caught the Italian textile industry in a squeeze that is transforming profits into losses. Spinning capacity has reportedly been permanently reduced, and domestic consumption of cotton has fallen as synthetics continue to Mill arrivals of

raw cotton

fell

17 percent

make

n 1970-71 (A

gust-July) to approximately 873,000 bales (480 the lowest since 1964.

crease by as

much

as

However, 25 percent

inroads. t

pounds net),

arrivals are expected to inin

1971-72, to more than

1

and to meet a slight and household cotton goods. This increase in consumption might be jeopardized by continued high cotton prices and the failure of the currently demillion bales, in order to rebuild stocks

increase in the

demand

for fashion

Japan's Frozen

Egg Imports Decline

Japanese imports of frozen liquid eggs during January-June 1971 amounted to 13,965 metric tons, a 24-percent decrease from comparable imports in 1970. Imports of frozen egg albumen in this period totaled 5,174 tons, or more than double the quantity imported a year ago.

mercial users continues

The demand

strong.

Major

for eggs

suppliers

by com-

of frozen

eggs were Australia with 36 percent of total imports, the United Kingdom with 15 percent, and the Netherlands with

14 percent. Currently, the United States

is

not a major supplier

of frozen egg products to Japan.

economy to improve. Compared with 1969-70, the Italian textile manufacturer had to pay 20 percent more for lint cotton and 10 percent more for labor in 1970-71, while yarn prices remained almost

supplier with 910,000 chicks, or almost 80 percent of the

unchanged. Low-priced cotton yarn and fabrics imported from

total

pressed

the developing countries



at prices that reportedly



scarcely

covered the cost of the cotton used to make them also undermined the competitive position of domestic Italian cotton textile

goods.

Page 10

Total imports of baby chicks during the

were

officially

first

half of 1971

estimated at 1.16 million, a decrease of 20 per-

cent from the previous year.

The United

States

was the major

market.

Japan’s Ministry of Agriculture and Forestry requested the

Egg Importers Association

in

June to voluntarily reduce 1970

imports of frozen eggs to around 24,000 tons, which would represent a 15-percent decline from the 28,519 tons imported Foreign Agriculture

in 1970. Reportedly, this

i

was done

in order to prevent do-

mestic egg prices from declining further. After February, egg prices to producers declined steadily to 149.2

yen per kilogram

(approximately 26 cents a dozen, U.S. medium-grade basis).

mills to reduce foreign

exchange expenditure for sugar.

private mill under construction at Zaio will raise total

A

Moroc-

can processing capacity to 280,000 tons. As the crushing season

is

rather short,

new

beet varieties are being sought in

order to lengthen the season.

Japan Moves To Counter Low Egg Prices Japan’s Ministry of Agriculture and Forestry recently estab-

measures to raise low egg prices. As a result, the Ministry will guide and adjust egg production and marketing in producing areas, subsidize producer organizations for their expenses in stockpiling when producer egg prices decline below a certain level, pay producers when egg prices decline below a certain level (from a fund accumulated in normal times), and assist the establishment of the All Japan Frozen

Grains, Feeds, Pulses, and Seeds

lished four

Rotterdam Grain Prices and Levies Current offer prices for imported grain

Egg Company. The All Japan Frozen Egg Company began operations on

I

July

domestic egg prices, especially during the is

an increase

in

frozen egg imports.

The

summer when

there

total original capital

was 717 million yen (about US$2.15 million). The Company plans to buy eggs when producer prices fall below 140 yen per kilogram (about 25 cents a dozen, U.S. medium-grade basis). They will manufacture these into frozen eggs for stockpiling and sell them at 190 yen per kilogram (about 34 cents a dozen) when domestic egg prices are favorable. The Company plans to manufacture 500 metric tons of frozen eggs in 1971 and expand to 2,000 tons in 1972. invested

I

Item

Wheat: Canadian No. USSR SKS-14

CWRS-14.0.

1

Australian

FAQ

U.S. No.

2 Dark Northern

Spring: 14 percent 15 percent

U.S. No. 2 Hard Winter: 13.5 percent

No.

3

Hard Amber Durum.

U.S. No. 2 Soft

Coffee production in Peru for the current 1971-72 crop lb.),

estimated at 1,030,000 bags of 60 kilograms each (132 up about 4 percent from the previous harvest. This rep-

is

resents a continuation of the steady

upward trend

in

produc-

few years. During 1971 several large coffee farms have been expropriated under the terms of the Agrarian Reform Law and turned

tion of coffee during the past

over to peasants organized into a production cooperative, subject to

Red Winter.

Dol. per bu.

1.97

O

C)

C)

1.66

-1

1.88

1.88

+4

0)

C)

2.09 2.14

1.79

0 0 C)

2.05

C)

1.90

+3 +3

1.77

1.38

1.56

Wheat 3 Corn 4 Sorghum 4 x Not quoted. “Manitoba No.

2. 15

1.97

C)

1.91

1.36

+2 +3

1.06

+8

1.45

3.46

+4

3.40

1.35

Soybeans U.S. No. 2 Yellow EC import levies:

2

+

C) C)

.

Feedgrains: U.S. No. 3 Yellow corn .... Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero sorghum U.S. No. 3 Feed barley ....

Peruvian Coffee Production Expands year

ago

Cents per bu. 2

1.80

.

A year

previous week

Dol. per bu.

Argentine

Sugar and Tropical Products

Rotterdam, the

Change from

Oct. 27

of this year to help prevent the further decline of

1

at

Netherlands, compared with a week earlier and a year ago:

“1.54

1.69

1.70

0

1.27

6

1.03

-2

.69

6

1.05

-4

.63

“Durum

has a separate levy. 2. 4 Until Aug. 1, 1972, Italian levies are 19 cents a bu. lower than those of other EC countries. “Effective October 14, 1971, validity of licenses with levies fixed in advance is a maximum of 30 days. Note: Basis 30- to 60-day delivery.



Government guidance. The cooperative movement con-

tinues to develop,

coffee production

and approximately 60 percent of Peru’s now harvested by cooperatives.

is

The Government

is

taking steps to increase domestic con-

sumption of coffee and promote more efficient cultural pracwhile maintaining a balance between production and consumption and possible exports.

tices,

Grain Stocks of Major Exporters Drop Stocks of grain in the United States, Canada, Argentina,

and Australia on July 1, 1971, totaled 120 million metric tons, 18 percent below those of a year earlier and 12 percent lower than on July 1, 1969.

|

JULY

Moroccan Sugar Output Grows

1,

1971

GRAIN STOCKS IN EXPORTING COUNTRIES United

Production of sugar in Morocco

in

1971 reached 210,000

Grain

up 41 percent from last year. All of Morocco’s produced from sugar beets. The planted area was

metric tons,

sugar

1

is

160,615 acres.

Morocco’s domestic sugar production amounted to over 50 percent of the expected 1971 sugar consumption of 410,000 tons and raised sugar mill utilization to about 88 percent of

Wheat Rye Barley

Oats

j

J

u,i

Corn

rated capacity.

The Government November .It

1,

1971

of

Morocco

is

investing

money

in sugar

Total

States

Canada Argentina Australia 1,000 metric tons

1,000 metric tons 8,412

Total 1,000 metric tons 53,328

1,000 metric tons 19,872

1,000 metric tons 22,154

709

330

60



3,398 7.429 39,734

3,347 2,015

115

969



215

1,081

6,800



1,099 7,829 10,740 46,534

71,142

2^846

10,080

10,462

119,530

2,890

Page 11

U.S.

DEPARTMENT OF AGRICULTURE WASHINGTON,

D.

C.

20250

POSTAGE AND FEES PAID U.S. DEPARTMENT OF AGRICULTURE

PENALTY FOR PRIVATE USE, $300 OFFICIAL BUSINESS

First Class

you no longer wish

to receive this publicaplease check here and return this sheet, or addressed portion of envelope in which publication was mailed. If

tion,

If

or

your address should be changed

TYPE

CODE,

the

new

and return

PRINT

address, including ZIP the whole sheet to:

Foreign Agricultural Service, Rm. 5918 U.S. Department of Agriculture Washington, D.C. 20250 This publication is being mailed First Class to take advantage of cheaper mailing rates available under Public Law 91-375, May 16, 1971.

FOREIGN AGRICULTURE

10

Wheat

stocks declined 22 percent, barley 29 percent, and

A

detailed table of grain stocks appears in the October

World Agricultural Production and Trade:

Statistical

Report.

Soybean Harvests Increase

Brazil's

corn 14 percent, while stocks of rye gained 20 percent and oats were 1 percent higher.

1971 soybean crop, harvested in the early months of

Brazil’s this

calendar year,

compared with

is

now

estimated at 2.1 million metric tons

1.33 million in 1970. This

is

an increase of 21

million bushels.

Early reports of the forthcoming 1972 harvest indicate that it

Fats, Oils,

and Oilseeds

may

reach 2.8 million tons. If achieved, this would be an

additional increase of 26 million bushels, most of which would

be available for export in 1972.

Australian Oilseed Production Increasing Combined

major oilseed crops in Australia is expected to be approximately 400,000 tons in 1971-72 compared with 211,500 in 1970-71. The increase is largely the result of an 82-percent increase in planted area. Sunflowerseed production, at 140,000 tons, will account for one-third of the estimated increase. Rapeseed production, at 100,000 tons, will account for another 30 percent of the increase. The remaining increase reflects larger cottonseed, safflower, and soybean harvests. oilseed output of the

Australia, traditionally an importer of vegetable

become a in

significant exporter of oilseeds.

1972 are now expected

to

oils,

could

Exportable supplies

approximate 50,000 tons.

Crops and Markets Index Cotton 10

Dairy and Poultry 10 Japan’s Frozen Egg Imports Decline Japan Moves To Counter Low Egg Prices 1 1 Fats, Oils, 12

12 12

Coconut Exports Up Sharply

Combined exports of coconut products from

the Philippines

during January-August 1971 totaled 561,000 metric tons, oil basis. This represents an increase of 179,000 tons, or 47 percent more than exports during the same period last year. Exports for calendar 1971 could reach 820,000 metric tons

compared with only 606,000 tons cant increase

is

in 1970.

A

and Oilseeds

Australian Oilseed Production Increasing Philippine Coconut Exports Up Sharply Brazil’s Soybean Harvests Increase

Grains, Feeds, Pulses, and Seeds 1 1

Philippine

Italy’s Cotton Textile Industry Threatened Spain Reduces Cotton Import Duty

11

Rotterdam Grain Prices and Levies Grain Stocks of Major Exporters Drop

Livestock and Meat Products 10 U.S. Exports Holsteins to Yugoslavia 10 U.S. Hereford Heifers to Spain

Sugar and Tropical Products .11 Peruvian Coffee Production Expands 1 Moroccan Sugar Output Grows 1

further signifi-

expected in 1972.

Page 12

Foreign Agriculture U.S.

GOVERNMENT PRINTING OFFICE

:

1971

481-863/16