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

Historic, Archive Do not Document assume content scientific knowledge, reflects current policies, or practices. ^cuu^ ^Hs «grtjs atf^i 2...

0 Downloads 7 Views
Historic, Archive

Do

not

Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

^cuu^

^Hs

«grtjs

atf^i



Q&Vttll,

^lilME*,

lS®

sr
j,\-W>

^cuu^

SK*

\\u>

k

s«*

'*JWl'f'£

i)l®%

Ai!

ys©tf£,

^iinirf>'.

t

t?>2S

Oil^

^TMf#*

KS»

(SSKWte,

«r

*Ur,


<,v cu

V

y

(gfWs

^mn

r

^ucuir^

^icuir^

*S«B SEffr

AifflC

^''JjkdveS'

5vW*(^

5**'<«*/

%JW1'S'£^

>y ^EiiwtfSV

Alas otf^

V/

:

V

X

y

#

X

X

\

y

\

J

\'^*0r y* V X

J"

X

X

^y

\

y

X X§

y" X \XsgSr X Xs' __ X xSp^x

\/ V/^^|\ / t!3-

/\ / \ /\ \\ //flrsx\% i|P|^ \ */ /$3§y\% 'y /SSs?\\ S / \ (Bmi! ICi ftfSm &ra« / /©r% vm OT y V\ vtuw Iw ^ \ WCw*lf) UMOV / \ Ili ^ IW^fJ Igp^

\/

W

.ill

Hi

*

1

0i

S’ftSSV

XX \\

w

/:S2j&s.

wffl

*/

\§5* a&tr

\X.

^ffiS

^

y

«

x\

/

>

°*

\

-«s=s^

r#>

Ill-will

*.

Xss//x

\ x*^y X/

*

\g?gy y \X y#wy>y

«

_


ISmRMk^al

.

.

x

XfoT*®^^^

^Ssse=5^

vf

X$J:

\ X\x/.AgsvV //ssn\ X^X\ \ \/ /^k 11 SK $£m mEk liSrW y x wSi kl^SI ^ m fikMiJ wl! i0

't>

*

**

Its

*.

:

%.

\*

yy

-

js?

y^k s

;

V

— \\^*-' ^

y

^

x

^-sss^xs///^&\\ x If y\ If y yy X V /,ySS\ v y y/ y #yrxi\ ^ vy

"-»

%ii

'k* -«*»-

X^-orowS

4

'"' /•

/ (iSAti X y \ W£^$simr-f-i?y'

/

\ •>*

y \

\W/

f wyygs g

\ XsX/

i|21 \/ yx \3>\m

y

\ s$S&' j*

^

»sffl

\ xsgg/ y \

4^

%

ftsf

^

<*

*.

SsU.

\'4 /y^.^/^X^y y \ y /^S\ \ / /S\ \

-'

-»—»-%

\

ft

\/

y

y^^Xy^/isss.x \ y

<*

\^

/X

fffefeil Wmil v$M

w£M ^,[email protected]£S

VS£

\ '^sgx /

**/ M2fh

s25

\/

\^^ y

FOREIGN AGRICULTURE

U.S. Foods Catching

On

in

Sweden

Argentina’s Long-Range Farm Policy Foreign Agricultural Service U.S.

DEPARTMENT

OF AGRICULTURE

FOREIGN AGRICULTURE VOL. VII

No. 27

July 7, 1969

I*

In this issue:

America

2

Subject: Latin

3

Argentina’s Long-Range

6

Israel’s

Farm

Policy

—Winter Strawberries

New

Export

for

Europe

By Michael E. Kurtzig

7

Hong Kong Grain Imports

Decline During 1968 By Horace E. Sears

8

U.S. Foods Are Passing the Taste Test in Sweden

10

Italian

Lamb

the

American

Way

By William

F.

Dobbins

11

Crops and Markets Shorts

12

World Bank Extends Loans for Agricultural

Subject: Latin America Agricultural trade with Latin America was the principal

USDA’s

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

subject as

Projects

in Central

Canadian Grain Aid Proposal

By Ansel

S.

Wood



This week’s cover:

A

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

its

two-way

flow,

amounts

to nearly

$ 2 V2

billion a year.

V

Above, Assistant Secretary

M. Hardin, Secretary of Agriculture Clarence D. Palmby, Assistant Secretary for Interna-

Clifford

and Commodity Programs Administrator, Foreign Agri-

tional Affairs

Raymond A.

Ioanes,

attaches

(l.

Dodson

of Argen-

tina

cultural Service

ist,

Editor: Alice Fray Nelson; Associate Editors: Janet

Ann

Latin

Special-

Howard

Hall.

Left, attaches

Elma E. Van Horn; Assistant Editors: Mary A. Nicolini, Marcia Suther-

(l.

Faith N. Payne, land,

ERS

American

Editorial Staff:

to r.)

and Rowan of

Chile;

F. Beal and

Palmby

at right; left,

to

McDonald, Rowan;

r.)

Brazil;

L. Barr.

Thorburn, Colombia. Advisory Board:

W. A. Minor, Chairman; Horace

J.

Davis, Anthony

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,

Jr.,

Agriculture Secre-

Use of funds for printing Foreign Agriculture has been approved by the Director of the Bureau of the Budget

(May

1,

1969).

Yearly

subscription

Hardin opens

rate,

$13.00 foreign; single copies 20 cents. Order from Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. $10.00

tary

conference of U.S. agricultural

domestic,

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

Page 2

this

Raymond A. Don

Ioanes and

Paarlberg.

2 3 28 2 4

Argentina’s Long-Range Farm Policy A

recent speech

—summarized for

U.S. Agricultural Attache in

the

Dodson

— was perhaps

the

first

Foreign Agricu'ture by

Buenos

Joseph C. serious effort by a high ArgenAires,

economy.

Increased farm production and exports, he said, bring a higher standard of living for rural

inevitably

will

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-

tine

to

official

show farmers

the

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

of ministers

Minister of the

Economy announced

economic

his intention of continuing

policies of his predecessor.

all,

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 • •

20

INTA

years.

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,

electric



gasoline tax of 7 pesos per extensive highway program.

He

liter

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.

achievement of

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

their

support prices for what they period

— but rather from

sell



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

in

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

eliminate

the obstacles, internal

(the National Institute

CREA

and

roads,

Dr. Krieger Vasena began his

control.

the



General economic situation and policy the

Other basic elements of the agricultural policy are advancement of technology, now being ably promoted by

duction.

and external, that have long retarded agriculture in Argentina and to promote the agricultural modernization and development that are vital for the national

and taxes

Specific measures

announced by the Minister

to assist agri-

culture included a lowering of interest rates on government loans, reductions in liabilities

under the new land

tax,

and a

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

The government,

said the Minister, recognizes the

problems

the farmers have because of differing tax policies at the national, provincial, tion,

and

and municipal

levels.

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

was

originally applied to farms of not

million pesos in value

has

now been

liabilities for

altered

(about $8,500). to

farms valued

The

more than

3

tax provision

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.

Page 3

a

assemble at entrances of underground

Left, trucks

silo to load;

above I

buildings of the Argentine Grain Board, which has broad powers over

left,

grain prices

and marketing; above

right,

wheat being loaded for export. I

On

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

price rises

in

March

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,

November

instead of

1967, to prevent domestic

Storage

1

fj

as before.

facilities are

being steadily expanded to

New

date greater production and exports.

distortions.

;

*

accommo-

terminal elevators

are being constructed and credits provided for building silos

Wheat trade Argentina,

policy said

the

must increase

its

share of world trade in primary products such as

relative

wheat—

share that has been declining in recent decades because of decreases in export availabilities.

world trade



—including wheat,

corn,

oils has been substantial, Argenmarkets to other countries that were increasing production and exportable supplies.

tina has lost

Minister’s judgment

was

also taken steps to assure

adequate seed supplies for the new wheat planting (Aprilthe Board

;

is

that

an annual average wheat

Meat trade

policy

The Minister

said that Britain, contrary to an impression

current in the livestock trade, continues to be an important

What

outlet for Argentine meat.

mental change

in the structure

has occurred

of the trade.

is

a funda-

Whereas

chilled

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

minimum

in orderly

fashion, minimizing the effects of

variable weather conditions

on production

now

shipped as special cuts,

The National Grain Board

The Minister reported Kingdom for

wheat offered

at

have

full financial

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

ment

resulting in a substantial increase in exports of special

cuts.

He

concluded,

would provide for exports of 55,000 tons of

backing

the support price, the Minister

new

trends in the meat trade,

according to the Minister. This change to enter

dynamic markets

said.

One such market, where

that

is

permitting Argentina

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

sales



“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.

Page 4

I

also said that an agreement with Spain, virtually

raise

in the

In 1968 the

higher value.

that negotiations

ing industry to adjust to the

will

at

was $522 per

Argentine beef to that country over the next 2 years. A technological transformation is taking place in the pack-

levels.

Wheat marketing measures to purchase all

is

the United

he said.

commitments

i

buying up to 500,000 bags of wheat suitable for seed use, for sale to farmers at fair prices.

August)

Although the growth of

in agricultural products

meat, wool, and vegetable

The

The government has

in the interior.

Minister,

in 3

said the

Minister,

is

the

United

States, ;

years the value of meats imported from Argentina

But, he stressed, possibilities of increasing Argentine

i

meat

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

is

why

has had to be prohibited,

the use of chlorinated pesticides

the

residues

they

leave

in

the

Foreign Agriculture

j

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

—both producers—

meat, with losses

to the national

easily imagined.

is

If

economy and

pro-

to the

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.

vides

pesticides,

government has

the

allotted

300 million pesos

(about $850,000) to assist in the campaign.

The government

is

also

working intensively

to perfect the

Export diversification, export promotion

A in

number of products

in the tens

were insignificant combined export value These include processed and vegetables, prepared

that until recently

Argentina’s export trade

now have

of millions of dollars.

meats, dried and preserved fruits

a

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

to be

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-

Canada



tion in international fairs

To

|i

fruit,

and expositions.

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

its

Argentine meat from field to fair. Below, cattle on

improved pasture; right,

at far

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.

v

critical.

that the rural sector asks only equitable treatment that pro-

reasonable

and

prices,

to

avoid

the

decapitalization

of

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

|i

agriculture.

system of meat sanitation inspection in the packing plants,

Realizing the problem

farmers face in combating insects without the chlorinated

i

to

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

livestock

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



climate

makes

yields

highly uncertain



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

Chanan

Geisenberg checks plants. Above, boxes made of styrofoam used for exporting. ( Photos by author)

Israel's

New

Export

—Winter Strawberries for Europe By

MICHAEL

E.

KURTZIG

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.

berries.

earned Israel about US$500,000

I

I I

This exporting venture

in valuable foreign

exchange

during 1968.

The

Israelis

have been

for about 3 years.

strawberry exporting business

in the

During the

months of 1967

3

first

the

I

country shipped 148 tons of fresh strawberries to Europe; in

1968 the figure more than doubled

to

340

tons.

Through May

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

Europe

is

lag.

U.S. strawberry exporting to

small scale despite the good market potential, mostly

because of

stiff

price competition

fornia-based industry

and

also because the Cali-

geared for the domestic market.

is

Less than one-third of the strawberries grown in Israel are exported; and Europe

is

Production

the only market.

last

year was about 2,000 tons compared to 1,460 in 1967, 300 in 1955,

and a mere 36 tons

To make Israelis

in 1949.

their winter strawberry

growing

profitable,

the

use a system that protects the delicate plants from

damaging

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

under

rain,

hail,

L

plastic in Israel.

from

Left, delicate strawberry plants protected in

s,

plastic has

a plastic hothouse.

Side flaps are

up

to

the weather circulate

air.

Foreign Agriculture

>

Here Israelis

is

how

the

system works.

California

use

varieties

Strawberry plants

Tayoga and Sequya)

(the

are

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

weed growth

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.

Clear

plastic

plants to protect

heat

when

sheets

are

suspended

over

rows

the

them from severe weather and

the air temperature drops below 54°.

of

to conserve

On warm,

sunny days the plastic covers are removed.

Some farmers

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.

acceptable

prefer plastic hot houses to the individually

covered rows, even though the houses are substantially more

for export.

Once packed,

the

strawberries

are

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

Hong Kong

traders

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

Rice.

— —

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

1

1



were 144,000 tons an increase of 44,000 tons. Hong Kong produces only a minimal quantity of

grain imports

rice will

be precluded during 1969.

July 7,

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

in

flour

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.

Feedgrains.

Total

imports

of

feedgrains

in

1968 were

142,000 tons were corn. The expanding poultry industry in Hong Kong brought about the 144,000 tons, of which

increase

44,000 tons of corn.

of

Thailand

improved

its

share of the corn market to 90 percent by shipping 52,000 tons

more

in

1968 than during 1967.

Cambodia replaced

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



Page 7

ANANAS

i

i

s

[

I

( I

1

I

i

<

i

I

1

I

Right, sampling U.S. canned figs at the

Kooperative Forbundet; above, selling

American

MS

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,

foods

are

increasing

popularity

in

be-

cause of the large percentage of employed

women, consumers

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

be

fruits, rice),

short of

goods for which supply

demand

By

the end of 1966

demand

of the

Sweden

is

not

easy



it

is

usually both expensive

of

advertising,

(for

large

point-of-sale

falls

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-

known

from local food manufacturers. Although Swedish diet is rapidly becoming more like that of the United

new brand of

a

item.

able

consumption of

States, especially in the

meats and vegetables, it some important ways.

Swede

eats twice as

still

The

many

Page 8

r

..



Past U.S. performance

The United its way

in

feeling

average

before

differs

potatoes per

St.

States

listed

below.



for im-

an

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,

amounts

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

Some

in-

the

pecially feature variety in foods, includ-

foods,

of 1968.

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-

in

fall

fish.

outlets

But

Sweden's food market

is

and

about 75 percent of all retail food stores were self-service (8,359 shops), and 560

ported of

much

Sweden

in

much

fruits

creasing proportion of self-service stores

American products.

Shape

many

Sweden

had already been Swedish market

into the

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

$744,468

consumed serts;

now

Rice used to be

1968.

in

Sweden only

in it

is

in

sweet des-

gaining acceptance as a

replacement for potatoes. Actually, more U.S. rice arrives in

Sweden than

is

indi-

cated by the value figures given. Considerable quantities of U.S. rice are shipped to nearby Sweden.

countries

reexport

that

to

1968,

USDA’s Foreign

tional activities.

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

Sales

fresh

fruits

rapidly

results

lb.

per

person per year), and sales of freezers

and tomatoes.

pers, onions,

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

1959

million in fiscal year sales

were of canned and peaches.

to

1968.

almost $20

The

chief

citrus juices, fruit

stiff

competi-

from U.S. products because of the variety and quality of U.S. frozen foods. tion

How

Agricultural Serv-

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

number of

factors.

on

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

New

A

sales item hopeful

chilled

beef.

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.

cocktail,

viifviiiviitniifiiiviviitvfifiiiiisilg

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

a

taste buds.

After

the

favorable

reception

given

U.S. foods at the Stockholm International

Trade

Fair

(St.

Erik’s)

in

September

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,

Lamb

Italian By

WILLIAM

F.

DOBBINS

Assistant U.S. Agricultural Attache,

Rome

Abbachio (pronounced “a-baack-keyo”), or spring lamb,

is

an Italian delicacy

especially desired for the Easter season.

Traditionally,

Italian

lamb

spring

been milk fed to about 30 to age and then slaughtered at a exceeding 20 pounds. One provides less meat than does

American turkey.

sized

has

45 days of weight not

such lamb a

medium-

Many

a would-

promotions

series of

jointly

Italy,

this

spring in

sponsored by the

USDA’s

Foreign Agricultural Service (FAS) and the U.S. is

Feed Grains Council, however,

attempting to lure Italians into a

ent pattern of

sumption.

differ-

lamb marketing and con-

Lamb

feeding

ment owners

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.

Heavy Lamb

They

in Italy.

be feaster has found abbachio not only a delicacy but in short supply.

A

Way

the American

trials,

exhibi-

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,

tention.

Festival

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

U.S. -grain-fed

producers

some

lambs.

major lamb

All

near Foggia

now

are

using

cereal supplement for feeding their

The one feed

lambs.

plant near Foggia

I

is

rapidly increasing

its

lamb feeds and has

started manufacturing

a complete pelletized eral

sales of

lamb

complete

ration.

.Sev-

other feed plants are studying the

Foggia

area

as

a

possible

new

sales

ground.

increased purchases of U.S. feed ingrediIn

appreciation

ents.

Heavy lamb promotion has been aimed at the

Foggia area, the center of Italian

sheep production, although

activities

in

other regions have also been sponsored.

On March tival

was held

1

and 2 a Heavy in

Lamb

Fes-

Pugno Chiuso. Govern-

for

American work

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

May

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.

Page 10

Foreign Agriculture

.

Weekly Report on Rotterdam Grain Prices

cipitates to

Japan

in the

1968-69

fiscal

year are expected to

reach nearly 4.5 million pounds, worth about US$1.1 million.

Current prices for imported grain lands,

compared with

week

a

at

earlier

Rotterdam, the Nether-

and

a year ago, are as

follows:

June 24

Item

Dol. per bu.

Wheat: Canadian No. 2 Manitoba

.

.

USSR SKS-14 Hard

Australian Prime

1.93

.

1.84 1

.

.

1.91

.

1.92

,

1.93

.

Argentine

n

.

Red Winter

U.S. No. 3 Yellow corn Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero

.

ago

Cents per bu. 0 0 0

Dol. per bu. 2.05

.

1.71

.

+3 + 1

+

(')

1.97

2.03

1

1.98

(’)

1.91

+2

1.74 1.31

1.46

0

.

1.59

-1

1.50

.

1.24

0

1.26

1.26

+2

1.30

.

Rotterdam for 30- to 60-day

c.i.f.

in

delivery.

25,000 bales

in

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

Before World

or 4 years.

War

II

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

two

mills

In July

which

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

fine water-soluble

noodles. price of milk-protein granules

is

attractive—only a

same amount of protein in the form of good-quality meat. Consumption of milk-protein granules

is

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.

Kenya

Annual cotton production to

may

powder is produced which can be used in such products as cakes, confectionery, and end use), and a

suit various

Cotton

they reach Japan the granules are dissolved

in alkali (other ingredients

1.88

Not quoted.

Note: All quoted

When

granules.

fraction of the cost of buying the

U.S. No. 2 Hard Winter 14 percent U.S. No. 2 Soft Feedgrains:

87

A year

The

U.S. No. 2 Dark Northern Spring: 14 percent 15 percent

1

.

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,

pri-

West Germany, Mainland China, and Hong

Kong.

Potato Shortage Chile

With

is

in

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

New

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

July 7,

1969

first

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

million pounds.

Under

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

Page 11

U S DEPARTMENT OP AGRICULTURE WASHINGTON.

20SS0

O. C.

POSTAGE & FEES PAD IMiW Swm OapartMW «l AfrtcxhMN

OFFICIAL BUSINESS

chanfc your Address or Mop mailing, and send to Foreign

To

tear off this sheet Agricultural Service. ture.

US

Dept, of AgriculD C. 20250.

Rm. 59 IS. Washington.

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

craft,

the project.

The

port improvements in Liberia, and agricultural development in

Colombia.

The

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

ore,

International

Development Association (IDA) has

ex-

tended to Indonesia credits of $16 million for agriculture and

markets.

$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

Bank Group

Indonesia.

in

Earlier

credits

of

million

$7

The

financed technical assistance and an irrigation project.

IDA

$ 16-million

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

A

Bank

loan has been

made

to

Colombia

percent.

for a term of

The loan

of Tolima and Valle.

The Colombian Government

will relend

proceeds of the loan to the Colombian Institute for Agrarian Reform (INCORA) which has primary responsibilthe

ity for

implementing the project.

INCORA

an autonomous

is

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.

Bank loan

feasibility of irrigation in the

Cesar River Valley, a program development of

which may

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

nounced

Zambia’s internal consumption— a third of the country’s

selective

quirements are $8 million

now imported

—and

to

at

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

of

1

IDA

percent.

credit

which

a $4.3

million,

50-year,

A

carries a service charge of 3

The Bank loan and IDA

the market wants. sort of

advance against future

Minister Olson

credit will help to

ment

niques.

It

is

by the

of

modern

tech-

considered of paramount importance to Para-

guay’s economic development since beef production country’s principal industry and accounts for third of the foreign

is

the

more than

a

exchange earnings. the Republic of Liberia $3.6 million

The Bank has loaned

for 15 years at 6V2 percent interest.

This loan will

assist in

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

feet to

He

is

deliveries.

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

he thinks

productivity

to aid hard-pressed Prairie grain growers.

program

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

increase

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-

The

also includes funds to carry out a study of the

failing roads are to be avoided.

the development of

assist

will

a 4-year agricultural credit program for the development of approximately 2,500 medium-sized farms in the Departments

is

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.



When demand

in

market

to receive

for this grain develops the advance-support

payments can be applied as part payment for grain when delivered.

—By Ansel

tons,

S.

it

is

Wood FAS

Grain and Feed Division,

Foreign Agriculture

Page 12 U. S.

GOVERNMENT PRINTING OFFICE

:

1969

341-808/53