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U.S. Foods Catching
Argentina’s Long-Range Farm Policy Foreign Agricultural Service U.S.
FOREIGN AGRICULTURE VOL. VII
July 7, 1969
In this issue:
By Michael E. Kurtzig
Hong Kong Grain Imports
Decline During 1968 By Horace E. Sears
U.S. Foods Are Passing the Taste Test in Sweden
Crops and Markets Shorts
World Bank Extends Loans for Agricultural
Subject: Latin America Agricultural trade with Latin America was the principal
agricultural attaches came from their posts and South America last week for a 4-day conference in Washington, D.C. Secretary of Agriculture Clifford M. Hardin, members of his staff, and Members of Congress were among the conferees. Discussions focused on major agricultural commodities that move in inter-American trade including wheat, corn, cotton, beef, fruits and vegetables, and sugar. It was the most comprehensive look the Department has
Canadian Grain Aid Proposal
This week’s cover:
photogenic Swedish girl tastes U.S. canned pineapple at a consumer cooperative chain store that held two separate promotions for American foods in 1969 one for fresh produce and one for processed foods. A summary of U.S. prospects on the Swedish food market begins on page 8.
taken in several years at U.S.-Latin American agricultural
trade which, in
$ 2 V2
billion a year.
Above, Assistant Secretary
M. Hardin, Secretary of Agriculture Clarence D. Palmby, Assistant Secretary for Interna-
and Commodity Programs Administrator, Foreign Agri-
Editor: Alice Fray Nelson; Associate Editors: Janet
Elma E. Van Horn; Assistant Editors: Mary A. Nicolini, Marcia Suther-
Faith N. Payne, land,
and Rowan of
F. Beal and
at right; left,
Thorburn, Colombia. Advisory Board:
W. A. Minor, Chairman; Horace
Kenneth K. Krogh, Robert O. Link, Kenneth W. Olson, Donald M. Rubel, Dorothy R. Rush, Raymond E. Vickery, Quentin M. West. R. DeFelice, James A. Hutchins,
Use of funds for printing Foreign Agriculture has been approved by the Director of the Bureau of the Budget
$13.00 foreign; single copies 20 cents. Order from Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. $10.00
conference of U.S. agricultural
attaches to Latin
America. Also at speakers' table
were magazine may be reprinted freely. Use of commercial and trade names does not imply approval or constitute endorsement by USDA or Foreign Agricultural Service. Contents of
Raymond A. Don
2 3 28 2 4
Argentina’s Long-Range Farm Policy A
U.S. Agricultural Attache in
— was perhaps
Foreign Agricu'ture by
Joseph C. serious effort by a high ArgenAires,
Increased farm production and exports, he said, bring a higher standard of living for rural
economic bases for the
people. Along with increased income, there must be improvements in rural housing and education.
government's stance on agricultural problems. A major address delivered this spring by Dr. Adelbert Krieger Vasena, who was then Argentina’s Minister of Econ-
The Minister pointed out that the “new conditions” of the Argentine economy make possible financial support for pro-
omy, represents the most comprehensive statement on Argentine farm policy since the present administration came into power in June 1967. It also apparently represents the government’s current thinking on agriculture, for after the change that took place later in the spring, the new
Minister of the
his intention of continuing
policies of his predecessor.
May 23 speech by outlining government’s overall economic policies based first of he said, on monetary stability, to bring inflation under
In this process, the goal
was equality of treatment among the various economic and social sectors, so that no one sector would benefit at the expense of others from the policies adopted. Parallel with the policy of stabilization was that of a sound and sustained economic expansion. The Minister noted the following “encouraging results” achieved by the stabilization program of the past 2 years: • An increase of close to 5 percent in the gross national product in 1968 and of 6.4 percent in January-March 1969. • An increase in international monetary reserves, to the
highest level in • •
of Agricultural Technology)
(the Argentine Federation of Regional Societies for Agricultural Experimentation); improvements in the marketing process; and an aggressive export policy, backed by a
favorable negotiating position based on accumulation of stocks. The Minister commented that the program of public investment in the infrastructure including such projects as
power installations and distribution networks, irrigation, and communications is facilitating the production and marketing of farm products. The recent new bridges,
gasoline tax of 7 pesos per extensive highway program.
provides financing for the
new and encouraging framework for economic stabilization program has built,
also stressed the
agriculture that the
particularly in the leveling off of production costs.
stability in prices for
With the what the farmers must
buy, they should understand, he said, that future increases in income will not come from automatic increases in the
support prices for what they period
— but rather from
as during the inflationary
further lowering of production costs
and a higher volume of sales. Argentina has reached the where prices should be regulated by market factors. This concept, valid not only for agriculture but for other economic sectors, points up the growing importance the Argentine Government is attaching to improvements in technology, buying policies, and sales promotion. stage
The strengthening of public finances. The launching of an important program of investment
the country’s infrastructure. • The existence of adequate financial liquidity to stimulate economic growth while preserving stability. Turning to agriculture, the Minister said that the government is working energetically and continuously to
Details on credit
the obstacles, internal
(the National Institute
Dr. Krieger Vasena began his
General economic situation and policy the
Other basic elements of the agricultural policy are advancement of technology, now being ably promoted by
and external, that have long retarded agriculture in Argentina and to promote the agricultural modernization and development that are vital for the national
announced by the Minister
to assist agri-
culture included a lowering of interest rates on government loans, reductions in liabilities
under the new land
pledge of further reductions in export taxes.
The Bank of
the Nation is lowering interest rates on loans farmers for fixed investments (purchases of land, machinery, breeding stock, and the like) from 11 percent to 10. In special areas designated for development, the rate is being lowered from 9 percent to 8. to
said the Minister, recognizes the
the farmers have because of differing tax policies at the national, provincial, tion,
to bring about a balance in the
To improve this situafarm tax structure, the
national government coordinated with the provincial governments the land tax it recently imposed. An exemption from this tax
originally applied to farms of not
million pesos in value
(about $8,500). to
include progressive reductions in at
between 3 million and 6 million
This change will benefit more of the small farmers. Also, neither the tax rate nor the property valuations will be increased during the 3 years that the tax will pesos ($17,000).
be in effect.
assemble at entrances of underground
silo to load;
buildings of the Argentine Grain Board, which has broad powers over
and marketing; above
wheat being loaded for export. I
government had fulfilled its commitment for progressive reduction and that further reductions would be made as necessary. Export taxes on agricultural products were instituted with devaluathe export tax, the Minister said that the
tion of the currency
and other economic
Because of the recent extension of wheat cultivation to the northern parts of the country (where the crop matures earlier), the Board will begin its purchase operations on October 1,
1967, to prevent domestic
being steadily expanded to
date greater production and exports.
are being constructed and credits provided for building silos
Wheat trade Argentina,
share of world trade in primary products such as
share that has been declining in recent decades because of decreases in export availabilities.
oils has been substantial, Argenmarkets to other countries that were increasing production and exportable supplies.
tina has lost
also taken steps to assure
adequate seed supplies for the new wheat planting (Aprilthe Board
an annual average wheat
said that Britain, contrary to an impression
current in the livestock trade, continues to be an important
outlet for Argentine meat.
in the structure
of the trade.
production of 10 million metric tons should be Argentina’s
quarters of beef formerly predominated, most Argentine beef
minimum share in the world production total. Such a level would provide an additional 3 million tons for export, a volume that would be no problem to sell on foreign markets,
price of chilled quarters
Beginning with the next harvest, the Minister reported, a carryover stock of wheat will be accumulated, in a volume that will permit Argentina to fulfill its export trade
fashion, minimizing the effects of
variable weather conditions
shipped as special cuts,
The National Grain Board
The Minister reported Kingdom for
ton; that of cuts, $912.
were going on with on boneless beef and that the government was confident of an early agreea reduction in the tariff
resulting in a substantial increase in exports of special
would provide for exports of 55,000 tons of
the support price, the Minister
trends in the meat trade,
according to the Minister. This change to enter
One such market, where
have high purchasing power.
Thus, an increase in production will lower prices, but producer incomes. Improved payment terms are to be offered by the Board for wheat of the 1969-70 crop 90
has increased from $18 million to $70 million.
percent of the price on delivery against 70 percent previously. For the 1969-70 crop, the Board will put into effect a
“warrant” system similar to the warehouse receipt system used United States. This system relieves the farmer of the necessity of marketing his crop immediately after the harvest in order to have cash for operating expenses.
also said that an agreement with Spain, virtually
In 1968 the
ing industry to adjust to the
was $522 per
Argentine beef to that country over the next 2 years. A technological transformation is taking place in the pack-
Wheat marketing measures to purchase all
buying up to 500,000 bags of wheat suitable for seed use, for sale to farmers at fair prices.
Although the growth of
in agricultural products
meat, wool, and vegetable
The government has
in the interior.
years the value of meats imported from Argentina
But, he stressed, possibilities of increasing Argentine
markets depend today more than ever upon rigorous regulations dealing with animal health and hygiene and adequate installations for proper processing in the meatto such
packing plants. This
has had to be prohibited,
the use of chlorinated pesticides
meat having been judged harmful to human health.
a grave risk
taken into account in the formulation of government policies. Many farmers, however, found that the speech fell short
markets to Argentine
of their expectations; they had hoped for the announcement of
ducers persist in using these materials, there that importing countries will close their
meat, with losses
to the national
more extensive measures of encouragement Initial public reaction from farm groups was
in an effort to comply with the requirements of the countries most important to Argentina’s meat exports.
300 million pesos
(about $850,000) to assist in the campaign.
to perfect the
Export diversification, export promotion
number of products
in the tens
were insignificant combined export value These include processed and vegetables, prepared
that until recently
Argentina’s export trade
of millions of dollars.
meats, dried and preserved fruits
foods for direct consumption, concentrated fruit juices, wines,
There is no reason, the Mincommented, why exports of these and similar agricultural products cannot be increased in open competition with other and mixed feeds for livestock. ister
countries that have higher costs of production.
The government’s bearing
effort to gain
new markets seems
with the possibility of wheat sales to Japan
and of cooked-frozen meat sales to that country and to two markets with strong purchasing power. To promote its exports, Argentina has resumed regular participa-
tion in international fairs
more traditional markets, Argentina is negotiating with the European Community; and it maintains permanent communication with the United States on agricultural trade problems common to the two countries. The Minister’s speech was designed to reassure Argentina’s agricultural community that its interests were being fully protect
Argentine meat from field to fair. Below, cattle on
improved pasture; right,
animals entering the
corral; right, Argentine
Meat Producers Corporation (CAP) displays at an Australian trade exhibit the various types of beef
being offered for export by Argentina’s meat industry.
that the rural sector asks only equitable treatment that pro-
and modernization. The speech came on the heels of a government announcement that support prices for 1969-70 crop wheat would remain the same as for the previous crop. This was a disappointment to the farmers and provided an unfavorable psychoagriculture
system of meat sanitation inspection in the packing plants,
Realizing the problem
farmers face in combating insects without the chlorinated
While acknowledging the constructive tone of the message as a whole, they still felt that the government’s policies have favored other economic sectors at the expense of agriculture. The influential Argentine Rural Society criticized the continuation of export taxes and the imposition of the new land tax; it said
to permit reinvestment
Minister’s message. In view of the wheat price support, his call for an annual production of 10 million tons of wheat appears optimistic. Since increases in yields can come only slowly, any increase in production from the present average of about 7 million tons would have to come from a larger planted area. It seems more likely, however, that the 1969-70 area not only will not increase, but may even decrease. A point of undoubted significance was the statement of the government’s intention to augment carryover stocks of wheat. This would be a real gain to the country’s marketing program. In the past the policy has been to export as much as possible each year, with little regard to carryover. This meant that when production fell off and Argentina’s erratic logical
setting for the
failure to increase the
supplies for export
were sharply decreased. This instability of supply has worked against the maintenance of steady markets, and a larger carryover would help smooth out these supply variations.
Left, Israeli strawberry specialist
Geisenberg checks plants. Above, boxes made of styrofoam used for exporting. ( Photos by author)
—Winter Strawberries for Europe By
Foreign Regional Analysis Division
Economic Research Service
From January until May boxes of strawberries marked “Product of Israel” can be found on grocery shelves in West Germany, France, Sweden, and elsewhere in Western Europe and Mexican
right next to U.S.
earned Israel about US$500,000
This exporting venture
in valuable foreign
for about 3 years.
strawberry exporting business
months of 1967
country shipped 148 tons of fresh strawberries to Europe; in
1968 the figure more than doubled
of this year Israel’s shipments to the European market were
60 percent higher for a total of more than 550 tons. These compare with U.S. shipments of about 1,000 tons each in 1967 and 1968 and slightly less through March 1969 figures
because of a production
U.S. strawberry exporting to
small scale despite the good market potential, mostly
also because the Cali-
geared for the domestic market.
Less than one-third of the strawberries grown in Israel are exported; and Europe
the only market.
year was about 2,000 tons compared to 1,460 in 1967, 300 in 1955,
and a mere 36 tons
To make Israelis
their winter strawberry
use a system that protects the delicate plants from
Cultivation birds, and cold weather. been tried on peppers, eggplants, lettuce, tomatoes, celery, squash, melons, and flowers for export, and is now successfully being used on strawberries. Some 3,700 acres of winter vegetables and fruit are now grown under
plastic in Israel.
Left, delicate strawberry plants protected in
a plastic hothouse.
Side flaps are
the weather circulate
Tayoga and Sequya)
Left, outside view of a hothouse; above, strawberry picker
and rows of mature plants with
plastic covers rolled back.
planted in rows through small holes in either clear or black plastic.
Clear plastic, which seems to be preferred, increases
strawberry yield by 10 percent but encourages
Black plastic reduces weed growth 10 percent, but usually cuts berry yield too. Plants are irrigated by peras well.
forated hoses laid along the bedrows, allowing proper moisture control and prudent use of water.
plants to protect
them from severe weather and
the air temperature drops below 54°.
sunny days the plastic covers are removed.
Labor costs are less in houses, however, and strawberry yield is usually higher. Strawberry growing is a family affair in Israel. The average plot is small and cultivated by the owner or his help. At harvest, which is continuous for about 5 months, local help is hired to pick berries. Sorting and packing are done on the premises, frequently by the women of the house, with packing done according to strict regulations. Blemished fruit is unexpensive to build.
prefer plastic hot houses to the individually
covered rows, even though the houses are substantially more
shipped to the airport and flown directly to European markets within hours.
Hong Kong Grain Imports Decline During 1968 Total imports of food- and feedgrains by
1968 declined about 4 percent from 1967. The decline was due primarily to a 107,000-ton reduction in rice imports, 25 percent below last year. Wheat and flour (grain equivalent) in 1968 totaled 214,000 tons up 22 percent and feedin
and the culture of this commodity has become less imlocal farm economy in recent years. Rice production in 1967-68 totaled about 13,500 metric tons, down 12 percent from the 1963-65 average. This amount accounted for only 4 percent of total consumption. The government authorized large rice imports during 1967 to build stocks which could be used as a buffer against retail prices. Also, these stocks could be available as a food reserve since there was a general decline in availability of other food products. However, after economic and political stability was reassured to some degree, imports fell to a normal total of 314,000 tons during 1968, of which 41,000 tons were from the United States. Due to the availability and lower prices of Thai rice, and the 30 percent guaranteed market of the Chinese Communists, large quantities of U.S. rice,
portant to the
were 144,000 tons an increase of 44,000 tons. Hong Kong produces only a minimal quantity of
be precluded during 1969.
Wheat. Imports of wheat and flour (grain equivalent) in 1968 were a record 214,000 tons, up 22 percent from 1967. The substantial increase was in response to the continued upward trend in domestic consumption of wheat foods and expectations of milling wheat into flour for increased exports.
The expected expansion
exports did not occur.
Australia supplied 102,000 tons, or 47 percent of the total.
Japan was the second largest supplier with 39,000 tons, all in the form of flour. Imports from the United States totaled 27,500 tons, 93 percent of which was wheat. High-protein Dark Northern Spring is about the only type of U.S. wheat currently being imported.
142,000 tons were corn. The expanding poultry industry in Hong Kong brought about the 144,000 tons, of which
44,000 tons of corn.
share of the corn market to 90 percent by shipping 52,000 tons
1968 than during 1967.
Indonesia as the second largest supplier. In addition to the coarse grains imported, 46,000 tons of
other animal feed products were imported during 1968. Pre-
pared feed imports from the United States were 20,000 tons. Horace E. Sears, Grain and Feed Division, FAS
Right, sampling U.S. canned figs at the
Kooperative Forbundet; above, selling
fresh vegetables at the
department store Nordiska Kompaniet.
U.S. Foods Are Passing the Taste Test in Sweden, the most affluent of European is becoming an increasingly important market for U.S. foods because of several factors. The Swedish economy is shifting away from agriculture, population is becoming concentrated in large urban centers where shoppers can find sophisticated food selections, convenience countries,
cause of the large percentage of employed
are quality conscious,
and most important of all, Swedes are being exposed to a variety of attractive
year as does a U.S. citizen, half as
meat, only one-third as
vegetables, but four times as
Another trend and supermarkets.
About 25 percent of private consumpSweden is for food and nonalcoholic beverages. Of this amount, about one-third was spent in 1967 for tion spending in
imported products; so imported foods and drinks already have a respectable place in Swedish diets. Imports tend to be items that cannot economically produced in Sweden (midwinter fruits and vegetables, tropical
goods for which supply
the end of 1966
usually both expensive
demonstrations, and sampling) and some-
(poultry and red meats),
thing of a gamble to introduce an un-
and dehydrated, frozen, canned, or other-
familiar product or a
wise preprocessed foods that are not avail-
from local food manufacturers. Although Swedish diet is rapidly becoming more like that of the United
new brand of
States, especially in the
meats and vegetables, it some important ways.
eats twice as
Past U.S. performance
The United its way
market for the food exporter to break Swedish retail food outlets are into. mostly controlled by a small number of store groups which are highly competitive with each other. These store groups are well aware of another facet of the Swedish food market the loyalty of the average Swedish housewife to a brand product she has already found satisfactory in price and quality. In other words,
of the products that
meat rose from US$75,000 in calendar year 1964 to $543,000 in 1968. For the first 4 months of 1969 U.S. exports were $241,000 up markedly from the 1968 level for the same period. (Frozen uncooked U.S. poultry is barred from Sweden because of the Swedish fear of infection by Newcastle disease.) U.S. long-grain rice had also done well. Exports from the United States to Sweden
ing imported items, to attract customers. spite
pecially feature variety in foods, includ-
had been doing best are
U.S. exports of frozen cooked poultry
were supermarkets. The supermarkets handled 18 percent of total food turnover in Sweden. Supermarkets es-
Sweden's food market
about 75 percent of all retail food stores were self-service (8,359 shops), and 560
creasing proportion of self-service stores
had already been Swedish market
Erik’s Fair, the biggest recent
exposure of U.S. foods in Sweden, in the
Tasting grapefruit juice at display
of American convenience foods.
increased in value from $469,000 in 1959 to
Rice used to be
gaining acceptance as a
replacement for potatoes. Actually, more U.S. rice arrives in
cated by the value figures given. Considerable quantities of U.S. rice are shipped to nearby Sweden.
in recent years. In fiscal year 1955 U.S. sales were negligible; in 1968 they were $812,982. Fruits and vegetables are brought to Sweden by airfreight, and the high-volume items are
While it is still too early to give total from the U.S. 1968-69 point-ofsale promotions, certain trends and opportunities are becoming apparent. Potential U.S. sales appear to be greatest for fresh, canned, and frozen vegetables and for preprocessed and frozen foods. Swedes are already the top European
strawberries, lettuce, celery, carrots, pep-
users of frozen foods (about 12
and vegetables from the United States have advanced of
person per year), and sales of freezers
canned, and processed foods rose in value
and refrigerators with freezing compartments are increasing in Sweden. Local
from $13 million
frozen foods could receive
Exports of other U.S. fresh, frozen, in
million in fiscal year sales
were of canned and peaches.
citrus juices, fruit
from U.S. products because of the variety and quality of U.S. frozen foods. tion
and its cooperators rolled ahead with a program of point-of-sale promotions that have now covered six of the eight major retail food store chains in Sweden plus a department store group. The second largest retail chain, a consumers’ cooperative, had two separate promoice
well the United States can do in
the Swedish vegetable market depends a
Sales of fresh fruits
and vegetables will depend on how effiand dependably they can be airfreighted to Sweden. Sales of canned and frozen items will be affected by the competition from other areas, effectiveness of advertising U.S. products, and how well the prospective goods are adapted to Swedish tastes. ciently
sales item hopeful
new U.S. export may be The Swedish Veterinary
Board has opened the door to imports of commodity, which attracted very favorable Swedish response at the St. Erik’s Fair and at a top restaurant chain in Stockholm, where it was featured for a week concurrently with the Fair. In the past, Swedish import rules made only this
imports of U.S. frozen beef practical.
Outlook for U.S. sales At a time when Swedes are ready to buy more concentrated, specialized, and h preprocessed foods, more fresh fruits and vegetables, and more meats, Americans are on the spot and are engaging in Jc a hearty campaign to capture Swedish It
U.S. foods at the Stockholm International
Above, display of U.S. fresh vegetables and fruits at one of the supermarkets of a large consumers’ cooperative features and iceberg letture; below, a good-natured housewife takes home a U.S. snack trove.
strawberries, radishes, red bell peppers,
Assistant U.S. Agricultural Attache,
Abbachio (pronounced “a-baack-keyo”), or spring lamb,
an Italian delicacy
especially desired for the Easter season.
been milk fed to about 30 to age and then slaughtered at a exceeding 20 pounds. One provides less meat than does
45 days of weight not
such lamb a
sponsored by the
Foreign Agricultural Service (FAS) and the U.S. is
Feed Grains Council, however,
attempting to lure Italians into a
ent pattern of
lamb marketing and con-
hotel and restaurant and managers, caterers, chefs, butchers, and others attended a conference on heavy lambs, inspected live animals and carcasses, and finally, ate a lot officials,
Animals for the were fed at the Foggia area Fontanarosa Farm. From April 28 through May 8 live heavy lambs were exhibited at the Foggia Fair, the second largest agricultural fair of U.S.-grain-fed lambs.
be feaster has found abbachio not only a delicacy but in short supply.
and festivals have been featured to encourage a taste for and production of heavy lambs, or lambs weaned early and then fed on cereals (mostly corn) until slaughter at 90 days of age and about 60 pounds. The U.S. Feed Grains Council and FAS hope that the end result will not only be more spring lamb for Italians but tions of live animals,
attracted considerable at-
Earlier in the year heavy lambs |
were shown at the Verona Agricultural show, the biggest in all Italy. Although not all of the feeding trials have been completed, Italians are already impressed with the demonstrated rapid weight gains, impressive live-weight condition, and the high-quality meat from
cereal supplement for feeding their
The one feed
plant near Foggia
lamb feeds and has
a complete pelletized eral
other feed plants are studying the
increased purchases of U.S. feed ingrediIn
Heavy lamb promotion has been aimed at the
Foggia area, the center of Italian
sheep production, although
other regions have also been sponsored.
On March tival
and 2 a Heavy in
Pugno Chiuso. Govern-
with heavy lambs, Robert C. Tetro, U.S.
Rome, and Bruno Feed Grains Council, Rome, were presented Agricultural Attache,
Biseo, Assistant Director for U.S.
with a plaque on
7 by the Livestock
Producers Association of Foggia.
Above, heavy lambs at the Verona Agricultural Show. To left, comparison of 30-day milk-fed lamb (l.), 90-day grain-fed lamb, and 12-month grass-fed lamb ( r.). Below, hosting chefs at the Heavy Lamb Festival.
Weekly Report on Rotterdam Grain Prices
year are expected to
reach nearly 4.5 million pounds, worth about US$1.1 million.
Current prices for imported grain lands,
Rotterdam, the Nether-
a year ago, are as
Dol. per bu.
Wheat: Canadian No. 2 Manitoba
USSR SKS-14 Hard
U.S. No. 3 Yellow corn Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero
Cents per bu. 0 0 0
Dol. per bu. 2.05
+3 + 1
Rotterdam for 30- to 60-day
Kenya has been around 20,000
in recent years.
However, an ambitious goal
of nearly double this season’s crop has been set, to be achieved in 3
or 4 years.
cotton was the leading
cash crop, but drought and pests have reduced the cotton crop
low as the 8,000 bales produced 8 years ago. The Kenyan textile industry has consumed about 8,000 to '10,000 bales of cotton for the past 3 years and employs to as
around 700 workers. for building
1968, plans were announced will
have the capacity to con-
to 12,000 bales of cotton annually. One produce polyester-cotton blends. 1966, exported all the cotton that it produced.
sume around 10,000 of the plants can '
be added, depending on the
noodles. price of milk-protein granules
same amount of protein in the form of good-quality meat. Consumption of milk-protein granules
expected to increase in Japan, since they enhance
consumer appeal of many food products now on the Japanese market and meet the high-quality standards demanded by Japanese buyers. The Australians’ exports of granular milk proteins have so far been limited almost exclusively to Japan, but they are making market studies in other countries and feel that prospects for expanding exports are good. In marketing, the nutritional advantages of coprecipitates must be complemented the quality and
by the development of a range of products with properties to food-processing techniques.
Annual cotton production to
powder is produced which can be used in such products as cakes, confectionery, and end use), and a
they reach Japan the granules are dissolved
in alkali (other ingredients
Note: All quoted
fraction of the cost of buying the
U.S. No. 2 Hard Winter 14 percent U.S. No. 2 Soft Feedgrains:
U.S. No. 2 Dark Northern Spring: 14 percent 15 percent
Change from previous week
Granular milk proteins are manufactured from skim milk, new continuous-flow process which recovers about 95 percent of the protein contained in milk. About 33 pounds of skim milk are required to produce a pound of milk-protein using a
Kenya, until In 1967-68 about 12,000 bales of cotton were exported, marily to Japan,
West Germany, Mainland China, and Hong
Potato Shortage Chile
experiencing a potato shortage caused by drought.
the potato harvest just completed, the Chilean Ministry
of Agriculture estimates a need to import about 1.3 million
hundredweight of ments in 1969.
Irish potatoes to
meet domestic require-
Swiss Cigarette Output Rises Production of cigarettes in Switzerland during 1968 rose to a record of 20.5 billion pieces, 10.5 percent over the previous
year and 1.5 billion over the previous record set in 1965. Gov-
ernment figures also indicate that total sales are shifting to the American-blend cigarette, with 49 percent, followed by the all-Maryland cigarette, with 39 percent. While the Swiss consumer still prefers the Maryland smoke, most export and tourist trade consists of the American-blend cigarette.
Cotton production, processing, and marketing are controlled by the Cotton Lint and Seed Marketing Board and prices paid to
producers are regulated under the price-support system.
Ceylon’s Tea Crop Higher Ceylon’s tea production during the
Australian Dairy Product
Faced with depressed world markets for traditional dairy is seeking new markets in Asia and Africa for the sale of newly developed products. The latest result of the new-product research is a granular milk protein known as coprecipitate which has found a small but rapidly expanding market in Japan. Exports of these copreproducts, the Australian dairy industry
quarter of 1969
123.6 million pounds, up 4 percent from the same period in 1968. The 1968 crop was a near-record 495.6 totaled
Duty Rebate Scheme, the government has Colombo Auction teas from 5 Ceylon cents per pound to 15 cents on Medium and LowGrown teas, effective May 5, 1969. The rebate on HighGrown teas is to remain unchanged at 5 cents per pound. the Export
increased the rebate payable on
U S DEPARTMENT OP AGRICULTURE WASHINGTON.
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tear off this sheet Agricultural Service. ture.
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World Bank Extends Loans The World Bank Group has
recently approved loans for
the financing of agricultural and highway improvements in
Indonesia, livestock development in
Zambia and Paraguay,
for Agricultural Projects navigational aids, and management assistance to the newly established National Port Authority which will execute
port improvements in Liberia, and agricultural development in
project will reduce transportation costs of shipping iron
which accounts for 70 percent of Liberia’s exports, thus improving the competitive position of Liberian ore in world
Development Association (IDA) has
tended to Indonesia credits of $16 million for agriculture and
$28 million for highways, for terms of 50 years, interest free, with a service charge of 3A of 1 percent. This marks the first large-scale lending operations to be undertaken by the World
15 years with interest at 6V2
financed technical assistance and an irrigation project.
credit for agriculture will provide half the
funds needed to rehabilitate and develop two groups of government-owned estates which encompasses 174,000 acres of rubber and oil palm area in North Sumatra. Rehabilitation of Indonesia’s highway network, which is in poor condition because of years of neglected maintenance, is urgently needed if the country’s plans to increase food production are to materialize and if large investments to replace
loan has been
for a term of
of Tolima and Valle.
The Colombian Government
proceeds of the loan to the Colombian Institute for Agrarian Reform (INCORA) which has primary responsibilthe
implementing the project.
public institution established in 1961 to carry out a program to redistribute land, settle
and develop potentially valuable but
uncultivated land, and increase agricultural production.
feasibility of irrigation in the
Cesar River Valley, a program development of
Zambia has received a $2.5 million, 15-year loan at 6V2 percent interest which will assist in financing the first phase
about 148,000 acres.
of a long-term livestock development program, consisting of
Canadian Grain Aid Proposal
12 beef cattle ranches and five dairy
Zambia’s internal consumption— a third of the country’s
quirements are $8 million
an annual cost equivalent to
improve breeding stock.
Paraguay has received a $4. 3-million Bank loan for 30 years at 6V2 -percent interest and interest-free
carries a service charge of 3
The Bank loan and IDA
the market wants. sort of
advance against future
credit will help to
considered of paramount importance to Para-
guay’s economic development since beef production country’s principal industry and accounts for third of the foreign
exchange earnings. the Republic of Liberia $3.6 million
The Bank has loaned
for 15 years at 6V2 percent interest.
This loan will
Monrovia to a depth of of up to 90,000 deadweight
financing the dredging of the port of
accommodate ships compared with the maximum of 45,000 d.w.t. it can now handle. The loan will also finance the purchases of harbor 45
pressing for the selective approach because
it can do the most good at a time when the governkeeping a close, anti-inflation guard on the Treasury. has indicated that the proposed scheme is intended as
under which loans are made to ranchers for ranch-development plans, and for the purchase of breeding stock; and to contractors for imported heavy machinery to construct water facilities, and to clear land. The purpose of the program is to application
in the market and those having what Support payments would be made as a
kind of grain not moving
to aid hard-pressed Prairie grain growers.
The purpose of the program would be to equalize as far as possible the cash flow between farmers who are holding the
finance the third stage of a livestock-development program
eventually result in the irrigated
Canada’s Agriculture Minister H. A. Olson recently anthat he hopes to win government approval for a
farms located throughout the country. The primary objectives are to increase production of beef and dairy products for re-
also includes funds to carry out a study of the
failing roads are to be avoided.
the development of
a 4-year agricultural credit program for the development of approximately 2,500 medium-sized farms in the Departments
a temporary, rather than permanent, measure.
The proposal has
the following features;
Adoption of a standard-minimum payment based on a certain number of bushels per acre of grain to be delivered by •
the farmer to the elevator. • Producers whose grain is of a grade that is not demand, and hence undeliverable, will be eligible cash payments up to the minimum level set.
for this grain develops the advance-support
payments can be applied as part payment for grain when delivered.
Grain and Feed Division,
Page 12 U. S.
GOVERNMENT PRINTING OFFICE