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Historic,

Do

not

Archive Document

assume content

scientific

knowledge,

reflects current

policies, or practices.

y

i

OREIGN AGRICULTURE July 22,

1974

Loading grain, Australia.

Australia Planting

More Grain Israeli

Processed Food Exports

Foreign Agricultural Service U.S. DEPARTMENT

OF AGRICULTURE

FOREIGN AGRICULTURE VOL.

• No.

XII

29 • July 22, 1974

Sowing More Grain For the 1974-75 Crop Year

Australia

In this issue:

2

Sowing More Grain 1974-75 Crop Year

Australia for the

World's Sugar Output Heads

5

Second

for

Straight

Record

Leslie C. Hurt

By

Year

Turkey’s Cotton Acreage Up Despite Lagging Export Sales By Larence E. Osborn and Horace G. Porter

6

Processed Foods Gain Importance on World Markets By Michael E. Kurtzig

8

Israeli

10

Record

1974-75

Pakistani

Wheat and Rice Crops Could Alter

Trade Patterns

12

Gum

Arabic

13

Crops and Markets

in

ustralian grain farmers, harried by heavy rains and flooding in some growing areas, are increasing their plantings for the 1974-75 crop year. Given favorable weather, the volume of grain available for export should be up substantially over 1973-74 levels.

A

Wheat producers

are planting a total

office.

But the Labor Government has been returned, and further negotiations will have to be held with Western Australia.

The outcome

is still

uncertain, as pres-

ent legislation requires that the industry situation be referred to the Industries

Assistance Commission

if

the proposed

not implemented by June 30.

of 10-11 million hectares (1 hectare=

plan

2.471

The 1973-74 Australian wheat crop was finally tallied at 12,045,000 tons, of which nearly 1.8 million tons about were of offgrade wheat. 15 percent Small quantities of Prime Hard Wheat were harvested in Queensland and in

acres)

in

the expectation of a

12.5-13 million metric ton crop.

And

production of most coarse grains also

is

expected to be higher than in the 1973-

74 crop year. June plantings for the coming winter wheat season are being delayed in some

Short Supply

Party Government to

is





areas of northern Victoria, and lack of

This week’s cover:

Loading bulk grain carriers with wheat near Narromine, New South Wales, Australia. Both wheat and coarse grain outturns in Australia are expected to be higher in the 1974-75 crop year— weather permitting—than in 1973-74.

normal draining

Wimmera may

in the

force postponement of planting. If

adverse weather should impose de-

lays, a

lower projected

total

acreage of

9.5-10 million hectares would appear

more

likely.

Average Australian wheat been about 1.18

yield in recent years has

tons per hectare.

Wheat Earl

Butz,

L.

Secretary

of

Agri-

culture

Clayton K. Yeutter, Assistant Secretary for International Affairs

and

Commodity Programs David L. Hume, Administrator,

For-

eign Agricultural Service Editorial

Staff:

Kay Owsley Patterson, Editor Patricia 0. MacPherson, Mary Frances Owsley, G. H. Baker, Marcellus P. Murphy, Isabel A. Smith, Susan E. Atkins. Advisory Board: Kenneth F. McDaniel, Chairman;

Gordon

0. Fraser, Elmer W. Hallowell, William Horbaly, Rich-

ard M. Kennedy, J. Larry B. Marton,

Don Looper, Brice

K.

Meeker. The Secretary of Agriculture has determined that publication of this periodical necessary in transaction of public business required by law of this Department. Use of funds for printing Foreign Agriculture has been approved by the is

Office of

Management and Budget (May

Yearly subscription rate: $20.00 domestic, $25.00 foreign; single copies 45 cents. Order from Superintendent of Documents, Government 14,

1974).

Printing Office, Washington, D.C. 20402. Contents of this magazine may be re-

printed freely. Use of commercial and trade names does not imply approval or constitute endorsement by USDA or Foreign Agricultural Service.

Page 2

plantings in Western and South

New South Wales will be substantially higher than in the 1973-74 crop year. One indication is Australia and in

that sales of superphosphate fertilizer in Western Australia were about 35 percent higher than last year, and in South Australia were up by over 10 percent before the Government announced that it was ending the fertilizer subsidy.

Although part of these increased

may have been

in

sales

anticipation of the

subsidy’s removal, it seems clear that most of the larger purchases were in-

tended for extended plantings. Australian export wheat clined in early

May

prices

de-

in response to favor-

able crop reports in the United States and other producing countries in the Northern Hemisphere. Australia’s

new Wheat

Stabilization

Plan that was to be introduced in the

1974-75 crop year

has not been Governments. Although New South Wales ultimately agreed to the plan under heavy Federal pressure, the new Western Australian Government refused to cooperate and pass complementary legislation probably in the hope that the Federal elections would return a Liberal-Country accepted by

all

still

State



Tall ventilation pipes in

New South Wales

storage shed control moisture content, a procedure vital in maintaining rice in perfect condition and preventing the grain from cracking. rice

Foreign Agriculture

northern

New

South Wales. Deliveries

to the Australian

11,067,191 tons,

Wheat Board totaled of which more than

one-third were from Western Australia.

In order to market the total crop to best advantage, the

record

Board established a

number of 38

subclassifications

tons available for export. Virtually

to

have been sold

if

available.

The Board maintained ping program in the

the 1973-74 crop year,

authorities.

Republic of China

Wheat carryover

stocks held by the

Board as of December 485,209 tons, giving a supply sales

of

will

1,

1973, totaled

total

11,552,400 tons. require

5

months of

tons,

including

to the People’s

Domestic

about 2.25

million

The Board

probably will try to hold a minimum carryover of about 635,000 tons at the

end of the current marketing year, which would make about 8.6 million

and 2,000 tons were shipped

to

Ethiopia. Australia’s

coarse

drought-affected tion

grain

season was larger than rose

to

crop.

nearly

production last year’s

produc-

Barley

2.4

million

tons,

while oat production totaled just over million tons.

The

1

larger barley crop will

permit increased exports of

this grain,

(PRC) and more

but most of the oats will be retained for

than 500,000 tons of a 600,000-ton con-

replenishment of depleted farm stocks. Barley exports in the December 1973-

tract with the

USSR

to India.

hipments

to the

PRC

November 1974 year probably 20,000

marketable

metric tons, mainly because of increased sales of offgrade feed wheat.

heavy ship-

and has shipped

segregation problems for the State grain

which caused

stan,

this

a

first

more than 3.5 million more than 700,000 tons

in the six basic grades,

all

volume has been sold or allocated traditional markets, and more could

this

S

progressed at

a rapid rate this season, probably

1973 con352,000 tract. Exports to Japan are running at a 57,000 to offset the shortfall in the

and reached tons in early May. Another tons went to Indonesia, 54,000

higher level than

last year,

tons to Bangladesh, 14,755 tons to Paki-

1.3

totaled

million tons, mainly to Japan and



Taiwan. The limited oat exports about tons are mainly from Western 1



Australia.

The wheat areas in Victoria and South Australia most affected by rust last season probably will be switched to barley production. This move, together

V

Australian wheat farms, such as the one at top, are expected to produce a 12.5-13 million ton harvest in the 1974-75 crop year. Australian farmer, left, examines his ripening crop. Bagged and bulk wheat, above, arriving at Hendy, N.S.W., silos.

Page 3

Murray River and

tained this season have given producers

the area along the

the Coleambally Irrigation Area.

million hectares, with a potential pro-

some encouragement. Not only have processors been more active in trying to obtain supplies from domestic sources, but inquiries from importing countries

duction of 2.6 million tons.

have been

there will be

with somewhat larger barley plantings

Western Australia,

in

increase

significant

result

will

barley

in

a

in

output.

Total barley area could total about 2.2

Oat plantings are expected to remain unchanged at about 1.3 million hectares, as pastoral conditions have been excellent and only limited hand feeding is

significant.

With the

larger crops

now

in prospect

United States and other countries the Northern Hemisphere, this favor-

in the in

able marketing position

may

not

last

Following the heavy rainfall experithis year, water supplies are ade-

enced

quate in

and consequently

districts,

all

little

justification for limit-

ing plantings because of shortages of irrigation water.

The 1974-75 crop may be expected to total at least

380,000 tons paddy, and

required during the winter. With export

long. But Australian growers are never-

could go as high as 400,000 tons

markets for oats unattractive compared

ditions

increase

showing more interest in the crop. Area planted is at best unlikely to exceed 80,000 hectares, however, with a potential yield of about 200,000 tons.

wheat prices should also will depend on

Rice production in the 1973-74 crop year is estimated at about 395,000 tons

with other grains, there

is little

incentive

to increase production of this crop.

Sorghum

Much

soften.

may

plantings

again, particularly

if

weather and relative prices of oilseeds.

theless

paddy or about 239,000 tons of

of

milled rice

T

he sorghum crop harvest

in

May

is

estimated at about 975,000 tons

somewhat

than

less

anticipated.

first

ceptionally wet conditions in April

May

delayed harvesting in

and caused crop

many

Exand

areas

loss as well as quality

However, areas not affected by floods from the heavy rains, and yields of up to 7.5 tons per hectare were recorded in some or harvest delays greatly benefited

normally dry areas. Consequently, the decline in plantings of over 10 percent last

year had

a substantial increase over

when 187,000

tons

Following the relaxation of Govern-

ment restrictions in 1973, growers expanded their plantings sharply from about 45,000 hectares in 1972 to 67,000, with most of the increase occurring in New South Wales. Consequently,

the

1973-74 crop

new

a

set

record. Yields were generally satisfactory, but the quality of late harvested

crops deteriorated as a result of wet

large

wheat

volume of offgrade feed

available

season,

this

together

with the collapse of the feedlot boom,

reduced the domestic demand for grain sorghum, and most of the crop greatly

is

now

being delivered for export. As a

result, the is

now

—more

volume

available for export

1973-74

Corn production

hectares.

in the

1973-74 crop

Plantings

fell

further

in

a

downward

trend that has been evident over the past few years. Difficult growing conditions during the past 2 seasons

appear to be mainly responsible, although the relatively low prices offered

by the few Australian processors prior to 1973 may also have been a factor.

to Pacific islands.

Returns to growers have increased



The New South Wales crop at

is

esti-

about 60,000 tons from 20,000

and the Queensland outturns at 75,000 tons from 31,500 hectares. The remainder is produced mainly in hectares,

Victoria.

The higher

—mainly marketed

are not yet finalized,

it

is

in

an-

ticipated that growers will receive a rec-

ord high return of about paddy.

If

US$120

export prices hold

at

from corn ob-

of

To cope

the 1975-76 shipping season.

with expected expansion in production,

New

the

Board

is

South Wales Rice Marketing increasing storage capacity by

about 66,000 tons. This would bring

paddy storage capacity owned by from the current 285,000 tons more than 350,000 tons. Additional

total

to

storage

is

available at the cooperative

mills.

Navy bean production in Queensland now expected to be somewhat better than forecast earlier. Flood damage was not as serious as first indicated. Some is

crops were adversely affected, but yields

from early harvested areas have been good to above average.

Navy beans

are

Papua

to

the

somewhat

New United larger

Guinea,

likely to

move

Hong Kong,

Kingdom,

although

shipments to Pacific

island destinations are likely.

well

N

crops.

On

the basis of clean-bean production

of about 3,200 tons, imports of 4,000-

Navy beans will be needed meet domestic market requirements

5,000 tons of to

during 1974-75. Current high prices of

Navy beans on kets may cause the time being

available.

with any certainty. However, the favor-

may

3,200

avy bean plantings in the South Burnett district were slightly in excess of 3,000 hectares, and production from this area is expected to reach 2,100 tons. Crops on the Darlington Downs were somewhat affected by dry

predict plantings for the 1974-75 year

year

still

tares last year.

Northern

is

at



below domestic requirements but substantially better than the poor crop of 1,424 tons harvested from 9,005 hec-

too early in the rice season to

It

forecast

growing season, although good yields were reported from early harvested

Outlook for rice exports in the 197475 (1973-74 crop) is for an increase in shipments to about 180,000 tons. Bulk is

now

is

metric tons of clean beans

conditions during the latter part of the

a similar return for the 1973-74 crop seems likely.

of the export volume

production

per ton

able marketing situation during the past

returns

tons

current

levels,

and

Page 4

161,000 tons, Guinea, Hong Kong,

and the United Kingdom as major marNew Zealand took its usual volume, Indonesia made a substantial purchase, and the remainder was shipped

the 1972-73 crop

from a harvested area of about 57,000

mated

about

sharply this year. Although returns for

estimated at about 157,000 tons

215,000

milled rice available for export during

Total plantings of

kets.

1973-74 is

New

will

be the major market.

year

totaled

with Papua

than 50,000 tons greater than

Japan again

about

con-

if

probably

This

estimated at about 5,200 hectares, and

estimated at about 625,000 tons

in the previous year.

would make

conditions and harvest delays.

little effect.

Australian exports of milled rice in

The

favorable.

are

the Board

of milled rice were produced.

deterioration.

compared with



the 1972-73 season,

in

lead to further expansion in

the U.S.

and world mar-

importers to hold off for



at least until the

Hemisphere

crops

—Based on

1974

become

reports

from

Office of U.S. Agricultural Attache

Canberra Foreign Agriculture

High prices slow some consumption

World’s Sugar Output Heads for Second Straight Record Year By LESLIE

HURT

C.

Foreign Commodity Analysis,

Sugar and Tropical Products Foreign Agricultural Service

W

orld sugar production

now

is

expected to

1974-75

in

rise to

about

produced

Brazil

6.9

million

tons

in

The

83.7 million metric tons (92.3 million

1974-75

South

African

crop,

short tons) to set an alltime record for

milled mostly in the last half of 1974,

the second consecutive year. Outturns

a record and could reach 1.95 million tons. The 1974-75 Philippine crop will likely exceed 2.6 million

South America, Asia, and Oceania in particular are expected to be higher, while West European production may be about level with 1973-74’s. in

The

global outturn of both cane and

beet sugar

is

likely to

exceed

81.2 million tons

son’s

by 2.5

short tons)

last sea-

(89.5 million

million. This

is

about

Area planted

tons. is

for

set

is

to sugarcane there

continuing to expand.

Production

United States

cane

of

may

and be

at

sugar

in

the

increase by 200,000

a level

to

sufficient

2.2 million tons above estimated con-

offset the small decline likely for beet

sumption requirements and would allow further replenishment of low carryover

sugar.

stocks.

World consumption of sugar 75

in

1974-

by 40,000

On

and

before

may

be another 2 years production will improve

it

local

A

significantly.

small

new

mill will begin operations in

the Philippines at the beginning of the

1974-75

year,

inhibit output in 1974-75,

adversely

of

failure

1974-75

for

winter rains and shortage of irrigation

as

many

pumps,

European

in these

has continued to increase.

Higher production

1974-75

in

is

fore-

many of the major producing countries. More significant among these

cast for

are

Brazil,

France, South Africa, the

and

Philippines,

Cuba and

Australia.

USSR

the

are

However also

as well as

by the Pyrilla pest

expected to harvest larger crops. The

March

21,

is

expected to continue in the

1974,

Government on

authorized mills to

1974-75 sugar production by 50,000 tons. Brazil has authorized 1974-75 sugar production at a maximum of 125 million bags or 7.5 million increase

tons. Since

value

some of

amounts

July 22,

1974

little

overall

high as

last

year’s

in

some West

Production

countries.

in

ing belt.

stantially.

The 1974-75 year may see Jamaica’s downward production trend reverse.

Some

increases

are

also

likely

for

Nicaragua and Panama, provided there

France’s sugar beet acreage is about 4 percent above that of 1973-74. Production in West Germany may be about the same as last year’s, although

some

areas were affected by dry weather

SUGAR: PRODUCTION AND PRICES

Raw sugar

World production

prices

but conditions im-

earlier,

since

to

very

proved as the season progressed. In the United States, production may be about equal to last season’s. Several cane-producing countries are

Argentina,

point

France, nevertheless, could be up sub-

to increase output. Some West European countries had poor weather

upward trend

started 6 years ago.

infestation in the northern cane-grow-

likely

conditions

under the expansion

was

change. Acreage and output will not be

creases, sugar prices are controlled in

and demand

for

the last mill

is

Prospects for beet sugar production

however, as

by

affected

that

prospects

raising

million in

also

ex-

ducers this season.

A

did last year. Last season’s crop was

is

for

program

countries,

increase

Cuba, owing to more mechanization and better prices to propected

higher production. This

it

efforts to

33,000 tons short of the 554,000-ton

to be constructed

some evidence suggests that recent high prices have dampened consumption in-

its

projected levels. In 1973-74, output was

Sugarcane acreage is likely to remain about the same in India for the 197475 crop as for the previous year when general shortage of fertilizer could

rise

increase sugar production to previously

5 million tons of sugar were produced.

compared with about 79.5 the 1973-74 year. Although

pro-

the other hand, Venezuela con-

A

expected to advance to about 81.5

may

tons.

million tons

is

Ecuador’s

weather.

tinues to face setbacks in

goal,

tons above the frost-damaged 1973-74

crop

favorable

is

duction in the coming season

1973-74.

to

this

7.8

is

refined,

million

raw tons.

World

Raw value

Year

Month

U.S. spot

1,000 metric tons

1964-65/1968-69, avg. 1969-70 1970-71 1971-72 1972-73 1973-74 1974-75, est

.

.

.

.

.

65,219 71,895 70,524 70,405 76,595 81,174 83,700

Jan. -Dec., Jan. 1974 Feb. 1974 Mar. 1974 Apr. 1974

May 1974 June 1974

1973

.

Cents per lb. 10.29 12.63 17.09 18.11 19.25 23.05

26.30

1

Price

2

Cents per lb. 9.61 15.32

21.28 21.27 21.77 23.65 23.67

New York duty paid for bulk sugar under contract No. 10, duty paid or duty free, 2 Bulk sugar under contract No. 11, f.o.b. and duty rate 0.625 cents per pound. NOTE: A deduction from the U.S. stowed at Greater Caribbean ports, including Brazil. spot price of about 1.5 cents per pound for duty, freight and insurance would need to be made for months shown above to compare with world prices. 1

full

=

Page 5

and had to be reseeded. duction

weather

favorable portedly verse

acreage

acreage

since

15 percent lower.

is

re-

where

up about 16 percent. in Spain have been

is

Crop conditions reported

favorable,

as

down about

acreage

but

Up

Turkey’s Cotton Acreage

re-

The

the case for Yugoslavia

is

pro-

Italy’s

likely to decline in spite of

is

is

12.5 percent. Germination

was slow and patchy due to dry weather United Kingdom, where produc-

Despite Lagging Export Sales OSBORN

By LARENCE E. and HORACE

PORTER

G.

Foreign Commodity Analysis, Cotton Foreign Agricultural Service

in the

tion

may

decline 150,000 tons to total

A

only 889,000 tons. is

dry cold spring

expected to lower production in the

Netherlands.

The USSR announced on May 28 that sugarbeet planting was completed. Acreage there rose slightly this year, and plans call for an increase of sugar production

over

Production

1973-74.

of beet sugar in the United States for

1974-75

is

from 1973-

likely to decline

OTTON continues

major

support prices for raw seed cotton, with

source of foreign exchange. Even

the present system beginning with the

though the 1973-74 crop had its ups and downs, the generally favorable outcome the world’s fourth largest cotton

1966 crop. In each of the major producregions Cukorova, Aegean, and Antalya the Government announces the level of seed cotton prices at which

behind

each Regional Cooperative Union (Taris,

C

should boost acreage

As

exporter States,

—ranking

as Turkey’s

this year.

—Turkey

should export about 1.3 million bales in

130,000 bales

1973-74,

Over the

than

less

season.

and possibly lower

has shipped an average of over

Higher prices for sugar this year have caused consumption to dip in some countries. Continued consumption gains are expected in

many

however,

the

especially

countries,

developing

Many of these, both producand consuming, control domestic prices to consumers.

domestic

producing countries that export

In

and do not control domestic prices, the sellers’ market of the last few months has pressured prices at

home and

fre-

quently triggered consumption declines.

Advancing prices have discouraged consumption in Argentina, for example, where sugar usage dropped by 4 percent in 1973-74. In Canada, per capita consumption was down a pound or more in 1973-74 from the 104-pound Conversely,

have held essentially constant since 1956 in Venezuela, and consumption continues to retail

prices

rapidly.

1.1 mil-

Heavy

is

esti-

Turkey’s

place

at 2.4

down

net),

lbs.

6

rains

early this

fell

similar

to

that

in

the

if

world prices

market cotton through coopera-

ers to tives.

As

most other cotton-producing

in

countries, cotton prices started the 1973-

74 season well above 1972-73 levels and moved still higher, climbing to nearly 82 cents per pound for Standard white

I

lint in

the Izmir market.

Coop-

eratives,

nation, and, as a result, reduced both

to

acreage and yields. Area

estimated at

cotton.

As

1.7 million acres, representing a yield of

partial

payment, and unpaid portions

about 657 pounds of lint per acre, compared with 637 pounds in 1972-73 and a record 677 pounds in 1971-72.

are

When

conditions

Turkey pulled

lint

in

is

some

outturn

parts

(lint

as

ers.

the

This dissatisfied some producers, but

is

not

expected to influence

Favorable

production

and

pay farmers

sufficient

funds

full price for their

a result, the co-ops

seed

made

a

now being settled with increased made available by the Govern-

funds

ment

for

payments

to farmers.

N RECENT YEARS, except

a

unginned cotton) below normal, local buyers of unginned cotton reduced the price paid to farmof

however, lacked

of

1974

revenue

tinuing favorable market factors, indi-

situation

either private firms or

season to cause some damage to germi-

value, about equal to the previous year a



However,

decline, support prices encourage farm-

levels for cotton in 1973, as well as con-



keting channels

however,

nearly 3.4 million tons, raw

at

world prices are well abouve support levels, cotton flows easily into mar-

capacity,

percent from nearly 2.5 million bales a

year earlier.

members and nonmembers.

When

cooperatives.

1973-74 production of raw cotton

(480

Cukobirlik, and Antirbirlik) will receive

cotton from

increased

estimates

million bales





to

plantings.

Japan’s 1973-74 consumption

mated

spinning

Current

it

move upward

Due

annually.

percentage

1972-73.

level of

last

raw cotton exports may decline somewhat over the next several years as cotton mill consumption rises.

countries.

ing

bales

lion

last

decade, Turkey

74’s because of a slight drop in acreage yields.

United

the

USSR, and Egypt

the

ing

I

in

1972-73,

about three-fourths of Turkey’s cot-

moved to West European markets. In 1972-73 over half or 783,000 bales went to Western Europe, and 131,000 bales went to Eastern Europe. Leading markets for Turkish cotton in 1972-73 were the People’s Republic of China (PRC), 225,000 bales; Lebanon, 219,000 bales; the United ton exports have

more remunerative sugar prices in 1974, a number of new mills are being planned or proposed. The

of about 2.5 million bales, and yields a crop of 2.7 million bales. Both totals

Kingdom, 195,000; Switzerland, 166,000; West Germany, 153,000; Belgium, 91,000; and Italy, 70,000. As of mid-March, export data were available for only 6 months (Aug.-Jan.) of the 1973-74 season. Of the 516,000 bales Turkey exported in this period. Western Europe reportedly took 3 14,000

renewed

compare favorably with the

bales; Eastern

United

States.

cate that total area planted to cotton in

1974 may increase

as

much

as 15 per-

Sugar mill construction has become

cent, to total 1.9 million acres, slightly

so expensive in the past few years that

exceeding the record 1972-73 acreage. Trendline yields favor a 1974-75 crop

activity has

ever,

is

slowed considerably.

How-

with

interest

likely to assure

in

mill

construction

adequate capacity for

at least the next several years.

Page 6

at the estimated

1973-74

levels indicate

1972-73

record output of 2.5 million bales.

For some years Turkey has

utilized

PRC,

Europe, 35,000; and the

18,000.

While a number of Provinces grow Foreign Agriculture

price increases for cotton textiles

is

un-

certain.

During the 1973 season, Turkey had four or five mechanical harvesters,

lo-

cated at research stations in the cotton

producing

regions

for

demonstration

purposes. Technically, mechanical harvesting

is

a simple operation that separates the

seed cotton from the plant in the In

however, the

practice,

shift

field.

from

handpicking to mechanical harvesting

would

require

throughout

Some Mechanical harvesters,

left,

most of Turkey’s cotton

in three areas

near the

cities

is

of

In

bales in 1973-74, about

the country’s total production.

The Cukorova

is

Turkey’s largest and

most dynamic cotton zone.

probably

systems here are being enlarged each year by the Ceyhan River Irrigation

Project.

Such expansion serves

to sub-

stantially offset the loss of cotton acre-

age to fruit and vegetable production in the Cukorova. Cotton

is

clearly a strong

contender for irrigated land in

Cotton

in the

this zone.

Aegean must compete

As

the second major cot-

ton producing area, the

Aegean

in the

past 2 years has accounted for about a

however, the surge

in

domestic

demand may well slacken. In March 1972 the Government

In this textile industry

boom, cotton

not likely to be the only beneficiary.

Synthetic fibers will undoubtedly gains,

especially

to

make

view of Turkey’s

in

third each of Turkey’s cotton production

plans to expand synthetic fiber plant

and acreage. Cotton is grown under hot and humid conditions in the Antalya region, which produces about one-tenth of Turkey’s cotton crop and is its most stable producing zone. Rising production costs and demand for food crops darken the

capacity.

marketing

differentiate

economy

near future will

in the

be small for some years to come.

About

three-fourths of Turkey’s cot-

ton area receives irrigation at least once



a year

a foremost factor in a conver-

sion to mechanical harvesting. Precise

application of water to cotton can reduce excess foilage and influence seed

and

lint yields.

Turkey issued

Third

of the total area of irrigated crops from the

1972

level of 4.8 million acres to

6.1 million in 1977, a

jump of 28 perwould in-

cent. Irrigated cotton acreage 1

.2

million acres, or 26 per-

acreage in

cent of the total irrigated

E

its

5-Year Plan, which proposes expansion

crease from

arly in the 1973-74 season the Government notified cotton mills that it would not make any special pro-

system between

handpicked and machinepicked cotton. However, even if some mechanical pickers were imported for commercial use, it seems virtually certain that the impact of mechanical harvesting on the Turkish

In late 1972

spindles in 1972.

is

need

cotton of

Turkey classified textile machinery as a nonduty tariff item. In addition, the interest rate for intermediate term credit for the purchase of textile machinery was cut in half, to 6 percent. These incentives resulted in an expansion boom. The 1976 goal is 3.5 million spindles, up from about 1.2 million operating

for irrigation water with a wide range

of field crops.

40 percent of With in-

the

addition,

might

grown

flation,

and gin yards, and

pending upon the cotton harvest for a sizable share of their cash income.

Adana

(Cukorova zone), Izmir (Aegean zone), and Antalya (Antalya zone).

industry.

in the lifestyle of families currently de-

*

cotton,

cotton

of these include changes in cul-

tural practices, gins

are located at research stations in Turkey's principal cotton regions for demonstration purposes. Above, a cooperative gin in Antalya, Turkey’s most stable production zone, where one-tenth its cotton is grown.

changes

significant

Turkey’s

1972, to 1.5 million or 24 percent of the planned irrigated acreage in 1977.

This gain of 296,000 acres in irrigated

vision to reserve cotton for mill needs

cotton area does not appear unreason-

other crops; however, this

yond the 100,000 acres presently sown

and would not intervene in their behalf regarding prices at which mills would buy cotton. In late February 1974, how-

to cotton in the Antalya.

ever, ceiling prices for domestic sales of

prospects for an acreage increase be-

Cotton

is

often pushed aside in this

cotton textiles and a

number

of other

able

if

cotton partially displaces is

some

not what

the Plan specifies.

The Plan

calls for total irrigated acre-

age to expand enough to permit major

area by grain (wheat), and to a lesser

basic products were raised substantially.

gains of over 100,000 acres for each of

by vegetables, melons, and sesame. Although an average annual rainfall of over 40 inches in the Antalya enables cotton to be grown with-

Cotton

were reportedly

the following crops: Sunflower, wheat,

out irrigation, supplemental water

ton

degree

is

ap-

prices

textile

raised 83 percent, one of the largest in-

fruits other

creases.

tables.

Such an increase textiles

make

in

the

pulses and feed, sugarbeets, citrus, and

other industrial crops and cereal. Al-

interested in

though targets set forth in the Plan may prove to be larger than can be achieved

more

risen just over 5 percent annually for

expanding offerings of textiles for the local market. However, the effect on

the past

5 years, to nearly

consumer demand of the

July 22,

1974

1

million

and vege-

market

domestic

should

mills

citrus, corn,

in the price of cot-

plied to about

90 percent of the acreage. Cotton consumption in Turkey has

than

Smaller gains would occur in

substantial

in only 5 years,

it

may

be possible to

reach these levels eventually.

Page 7

— Israeli

Processed Foods Gain

Importance on World Markets By MICHAEL Foreign

E.

KURTZIG

Demand and Competition

Economic Research Service

Division

srael has had notable success penetrating European and North AmeriI can fresh citrus markets and its Jaffa oranges are now enjoyed by consumers in such widely separated countries as the United States, the United Kingdom, and Sweden. Less well known on the export market but gaining in importance are products of Israel’s food process-





ing industry.

Although

already extensive in

is

it

and popu-

relation to the country’s size

food processing industry

lation, Israel’s is

still

expanding rapidly, primarily beits production is con-

cause most of

sumed

domestically. Embracing fruit and vegetable processors, dairies, and

vegetable oilseed crushing mills, 84 percent of the industry’s output

sumed domestically country’s

the

in

was con-

1971. Aided by

uptrend and

population

steady improvement in the standard of living, this industry

growth

expected

is

continue as long as disposable

to

comes remain

demand

is

mount-

the very high

annual

of 22 percent during the

4-year

In addition, export

ing steadily rate

in-

high.



at

period, 1968-71. Processors

now depend

on the foreign market for a steady source of added revenue. For example, exports made up 16 percent of the industry’s production in 1971,

compared

with 9 percent in 1969. Fresh citrus and citrus products are the most important agricultural export items.

In 1961-62, exports of citrus products

and exports of fresh were $49.1 million. By 1971-72, citrus product exports were $49 million, while those of fresh citrus had risen to $112 million. One year later sales to foreign markets climbed even more to $60 million for products and to $117 totaled $9.8 million

citrus



million for fresh citrus. Top, a display of processed food items from the Milouot plant near the Israeli city of Acre. Above, receiving area at a new freezing plant in Ashdod. Peas picked in the morning are processed and frozen that same day. Right, an Israeli grapefruit processing line at the Milouot plant.

xports of all processed

E

tural

products

agricul-

—including

canned,

frozen, and dehydrated vegetables have increased from $52 million in 1971 to all

$76 million

in 1972. Total exports of

agricultural

amounted

The

to

$236

products

in

1972

million.

industry met

its

1974-75 export

goal at the end of 1971, and the target

was raised. Present estimates for 197475 are that exports of all processed products should be over $100 million. Citrus export destinations have not changed much in the last few years. The United Kingdom remains Israel’s largest customer for fresh citrus and citrus

Page 8

Foreign Agriculture

i)



a

Fresh citrus and prod-

Whether these forecasts can be realized will depend on the situation in

uct exports are important not only be-

other tomato processing countries in the

cause of their large volume, but also

Mediterranean

Kingdom into the European Community (EC), however,

because of the additional value gained

Israel’s

from processing.

tional trade.

has brought about a restudy of the fu-

One of the oldest sectors of Israel’s economy some manufacturing con-

1.7 million tons.

West Germany, France, Sweden, the Netherlands, and the United States. Norway and Canada are also growing in importance. En-

the largest share of agriculture’s contri-

products, followed by

trance of the United

Of

ture of this market.

cern

to

Israel

the

is

United Kingdom

particular con-

the

possibility

may change

citrus

its

sources from traditional suppliers such

EC

ceive

re-

preferential treatment.

Therefore Israel kets

may

have or

as Israel, to others that

and

is

seeking

is

new mar-

trying to penetrate present

ones more deeply. This could be

diffi-

GNP.

bution to

— cerns have been operation food industry 50 years —

sponded to domestic and external deprocessing a wider variety of food items of higher quality. It has further mechanized production processes, devised more effective marketing and distribution systems, and begun to cultivate

new

trial

processing.

Israeli

those of other producers and customers

must be convinced the quality

is

worth

the extra cost.

T

markets for

Israeli citrus



segments



new item and tomato prodThese two countries took 33.2 percent of Israel’s tomato product exports relatively ucts.

in 1971.

United

The EC took 4.5 percent; Kingdom, 52.7 percent;

the the

European Free Trade Association (minus the United Kingdom), 6.8 percent; while 2.8 percent went to other export destinations. In 1972, the total supply of vegetables

taken by local factories was just

under 155,000 tons, of which 92,000 tons were exported in fresh or processed forms. Tomatoes provided the bulk of such exports. Of the more than 25 kinds of vegetables processed, at least 20 reached the export market, including a wide range of frozen and dehydrated

Food production

Israel’s

is

largest

and most stable industrial branch, reprereal

some 20 percent of

the country’s

output and employing 15 percent

of the

manpower engaged

in industrial

production. Processed agricultural products are

The number

among

the Israeli

the foremost exports in

The food

industry

is

noted as a stable

season

at the height

of the

—with about 10 percent destroyed animals — more or fed

on the than

Although the crop was

damaged

severely

to

tree

of

one-third

the

630,000

total,

was processed. About 278,000 tons were Jaffa oranges; 181,000 tons Valencias; 143,000 tons grapefruit; and the rest lemons, navel oranges, and tons,

other citrus

fruits.

essing

citrus proc-

natural juices,

are

sector

fruit

declined from 1,007 in 1965 to 722 in

1970. Most food processors now employ between 5 and 9 persons, with 50 hiring more than 100. Twenty-four of the

volume increase taking place juices and concentrates.

ers

grew from 30,000

in

1965

number of

to

34,000

enterprises

drinks, concentrates,

72.1 million in 1972, with the greatest

force. Further

Ministry

growth

is

forecast by the

Commerce and

of

Industry

which sees a food industry work force of 40,000 persons by 1976. Investment in the industry continues high with approximately $30 million to

grown

of fresh citrus has increased markedly recently and competition in the

stable,

much

further mechanization and automation

neries

and the introduction of new processing

the range of current products will be

expanded. to forecasts

Commerce and

industry’s output

of 1971



will

by the Minis-

Industry, the food

—compared

T

here are ing

1976 and 65 percent more by 1980. Average annual growth is expected to be about 7 percent during the 1971-76 period and 6 percent annually thereafter until 1980. Food exports could have a ing to the Ministry.

Israeli

citrus

producers

of their output to the can-

now

27 factories process-

citrus

Israeli

products,

six

of

producing only citrus segments. Some older, smaller plants have now been merged with larger units for greater these

sors

At the present time, proces-

can take about 650,000 tons of

citrus fruit annually.

with that

be 37 percent greater by

is

and away from the fresh market.

efficiency.

According

EC

becoming more intense. To avoid flooding the European market, and to keep shifted

and other dehydration techniques. New products will be developed and

The world supply

substantially.

prices

ing

processing industry has

the Israeli

to

be invested on an annual basis until 1977. These funds will primarily go into

technology, especially deep freeze-dry-

in natural

In recent years the citrus supply going

processors hire one-third of the labor

value of $160 million in 1976, accord-

economy.

In 1973-74, citrus output was over

Leading products of the of food industry work-

include

and syrups. Production of these products increased from 12.6 million actual gallons in 1960 to

try of

products.

senting

crops suitable for indus-

field

in 1971, while the

he united states and Canada are becoming increasingly important

re-

mand by

products are priced slightly higher than

however, since

has

the

processed

cult,

for over

in

which

area

leading contenders in interna-

Israel’s citrus

dles

its

processing industry han-

largest load during the height of

the season in February and March. Be-

cause this causes an imbalance in fruit absorption

some

levels,

processors



mainly of citrus segments have signed uniform contracts with the Citrus Marketing Board for specific weekly or

monthly

supplies,

even

in the season’s

contributor to the gross national prod-

Forecasts for the tomato processing

uct

(GNP), even in difficult times such 1966 and 1967, when GNP growth sagged to 1 and 2 percent, respectively. During the 5-year period, 1966-71, the average annual growth rate for the food sector was 8.2 percent compared with a smaller average GNP growth rate of

industry for 1980 call for juice produc-

In the past, the processing industry

as

tion to reach $8 million, with

40 percent

was considered a residual purchaser,

7.3 percent.

The

citrus industry

July 22,

1974

is

responsible for

off-peak periods.

of the volume earmarked for export.

taking that part of the fresh fruit crop

Peeled tomatoes are expected to be $5

that could not be

million,

with

one-fourth

for

export;

its

catsup and tomato sauces, $3 million,

export prices.

with 15 percent for shipment overseas; and paste and puree, $4 million, with

essing industry

one-fifth to

go into foreign trade.

marketed because of

lower quality or the unsuitability of

citrus,

Now, however,

the proc-

major consumer of specifying the quantity and qualis

a

Continued on page 16

Page 9

— because of a shortage of rain at sowing time. Poor germination occurred in some areas as dry weather continued

start

Record 1974-75 Pakistani Wheat and Rice Crops

into the

late

season. In other regions

farmers delayed too long and were unable to plant. Intermittent rains in December 1973 improved conditions, however, and prospects for wheat that had

Could Alter Trade Patterns

survived the earlier dry weather took an upturn.

P

akistan’s

recently harvested 1974-

75 wheat crop has set a production record and the rice crop, to be harvested in the fall,

expected to

is

another

set

the second consecutive record for both

These high output

grains.

levels

will

probably enable the Government to procure

larger

quantities

of both

grains

from farmers and Pakistan is expected its wheat imports and boost its

to cut

rice exports.

The

Pakistani

Government

country has already reached

says the

wheat

its

In an effort to halt the flow of wheat to

high-priced areas, the

Government has

restricted interdistrict wheat movements. While this has helped wheat procurement in some surplus regions, the ban has hampered procurement in deficit

areas.

Procurement may also be hindered if the Government announces a higher wheat support price too far in advance of the start of planting of the 1975-76 crop



usually in October. If the price

high enough,

it

may encourage

is

large

production target of 8.6 million metric

farmers and dealers to hold back quan-

tons, although other estimates place out-

tities

put

at

case,

than

around the

8.1

million tons. In any

outturn would

either

be

higher

record

7.8-million-ton

of

1973-74.

The until

the will

of 1974-75 wheat for release with

the 1975-76 crop.

and State grain storage capacity is said about 1.6 million tons, 600,000 tons less than the wheat procurement

rice harvest will not take place

target. In the past, this capacity

arrivals

handle

to

sufficient

are

has been

imports

whose

scheduled throughout the

And

wheat procurement takes place within 2 months of harvest. Thus, the

production figure would

storage shortfall could affect the rate of

be a record.

wheat procurement and cause wheat

During 1974-75, the Pakistani Government intends to procure about 2.2

be sold on the free market instead of going into the procurement program.

again,

less

optimistic

estimates

lower output of 2.7 million tons. again,

either

million tons of wheat, an

amount

favor

suffi-

meet year-round requirements monthly consumption remains as it was in 1973-74. Although there is little

year. But

The

to

arrival of large quantities of rice

cient to

needing storage before being exported

if

could also further complicate the wheat

information available about the Gov-

ernment’s rice procurement plans for 1974-75, it has increased the purchase

and coarse rice in order encourage farmers to turn over more

storage situation.

Wheat

or rice smuggled into India

The

ment has adopted

are

stricter

measures to

control smuggling, including rewards of

corridor

grain procurement program.

being patrolled by border guards.

grain from States having a low market price to others offering higher profits.

Page 10

about

Pakistani Govern-

However, there are a number of important factors that will determine the success of the Pakistani Government’s Free market prices, particularly of wheat, are generally higher than the Government’s procurement price, and in some regions the market price is higher than in others. This causes a flow of

this drive, initiated after large areas of

were

cotton

many farmers when the

flooded,

planted wheat on the land

water subsided. Adequate

fertilizer, in-

creased and regularized supplies of canal

January

December and

rainfall also helped.

Some

of

stockpiling

fertilizers

about

US$2

informers.

A

has

this

year assures an adequate supply

fiscal

for next fall despite earlier fears of a

shortage.

However, recently announced

usage,

could

boosts

fertilizer-price

inhibit

although the Government

increase support prices

enough

may

to offset

the higher costs. Wheat output may also be increased somewhat by greater use

of high-yielding varieties.

F

or 1975-76, the Government is considering a wheat production target

of 10 million tons.

Despite the record wheat crops of the influence

little

volume had on imports. This is be-

cit is

double Pakistan’s. India’s rice prices are

will boost exports if possi-

The Government’s “grow more wheat campaign” initiated in October-November 1973, was mainly responsible for the larger wheat output. As a result of

cause most of the crop increase or

support and market prices

Government

quality than during the previous year.

and Afghanistan could also cut into pro-

price of basmati

ble during 1974-75.

little damage. However, where wheat depends exclusively on rainfall, wheat stands were reportedly of lower

curements. This season the Indian wheat

similarly high.

irri-

past 2 years, the increased

to

of their production. This indicates the

is

tively

water, and the excellent

The Government’s combined Federal to be

September-November 1974, but Government estimates production reach 3 million tons (milled). Here

where wheat

In those areas

gated, the maturing crop suffered rela-

defi-

absorbed in the countryside. Thus,

although wheat production was 6.9 million metric tons in

1972-73 and 7.8 mil-

lion in 1973-74, imports in those years

were

1.5 million

and

1.1

million tons,

respectively.

per bag of wheat paid to

The Pakistani Government has

re-

20-mile wide wheat-free

portedly placed orders for 200,000 tons

been established and

of U.S. wheat and there are indications

is

it

might seek more under concessional

terms. Import requirements will climb

hese measures will probably reduce by small operators, but the incentives remain strong for large-scale

T

trafficking

smuggling.

Wheat. Planting of Pakistan’s record 1974-75 wheat crop got off to a slow

further, however, should Pakistan’s wheat procurements fall drastically below the 2.2-million-ton mark. At the present time wheat imports in 1974-75

are

likely

to

be about half those of

1973-74. Foreign Agriculture

Over 60 percent of Pakistan’s 197374 imports came from the United States 675,758 tons out of the 1.1-millionton total. Canada was the second largest supplier with 314,535 tons. Because more wheat had been procured from do-



mestic supplies for controlled distribution,

1973-74 imports were 24.7 percent

lower than those of the previous year.

About 580,300 metric tons imported from all sources in 1973-74 were cash purchases, 173,900 tons were financed by a 3 -year Commodity Credit Corporation credit, and the balance of wheat imports consisted of donations.

T

o supplement reduced Public Law 480 wheat availability in 1973-74,

shipment of 40,000 metric tons of U.S.

sorghum was arranged under

Title I of

P.L. 480, with deliveries taking place in

1974-March 1975

the April

Rice.

The 1973-74 crop

now

is

offi-

tons

metric

million

2.4

at

set

cially

year.

(milled) harvested

from about 3.75 mil-

lion acres. This

an increase of about

is

2 percent in acreage and 5 percent in production. Yields increased as a result of greater fertilizer use,

damaged by

areas not

good

rainfall in

the flood earlier

and a timely aerial spray program which checked the spread of insects and other pests from flooded areas. in 1973,

Conditions in Punjab, one of Paki-

important grain States, were

stan’s

less

than ideal in June, the only time highyielding

can

varieties

be

set.

Many

farmers planted basmati rice instead and as a result,

output came to

less

Much of Pakistan’s record 1974-75 wheat and rice crops will probably be stored in straw-covered ricks like those above in Punjab State. Right, Pakistani baker mixing

water with refined flour to make tandoori roti, a type of bread.

than the

2.5-million-ton target. Late-planted bas-

mati also suffered

some

flood damage.

an expected 400,000 tons for the 1973-

74 year.

With the sharp

rise in Pakistani rice

Major export destinations between 1973-March 1974, were: Indonesia,

exports in the past 2 years, this grain

July

stands second to cotton as a major for-

91,500 metric tons; Iraq, 40,900 tons; Saudi Arabia, 37,800 tons; Persian Gulf

eign exchange earner. figures

prominently

As

a result, rice

in

Government

planning. Pakistan had a 1973-74 pro-

countries, 29,100 tons;

and

Iran, 20,300.

Pakistan’s rice exports are handled by

curement target of 650,000 long tons of

the Trading Corporation of Pakistan, a

come from Sind State and the balance from Punjab. As of April 30, 1974, the Government had

semi-Government organization. Although total rice export volume this year will probably be little more than

rice

—400,000

tons to

procured nearly 500,000 tons of rice

half that of 1972-73, prices are so

from the two

higher that foreign exchange earnings

States.

much

be close to, or may even exceed, 1972-73 earnings. F.o.b. prices for bas-

1973-March 1974, of 261,395 metric tons, were

will

about half the previous year’s total for

mati rice have been about $850 per

(525,000 tons), mainly be-

metric ton with coarse rice selling for about $450 per ton.

Exports

that period

during

July

cause 1972-73 shipments included large

carryover stocks from earlier crops. For ports

—July 1972-June 1973 —

—Based on report from

ex-

Office of U.S. Agricultural Attache

were 775,000 tons, compared with

Islamabad

the full year

July 22,

1974

Page 11

— the beverage and food industries.

Gum

Arabic

Short Supply,

In

is

T

the

gum

used to retard sugar crystal-

is

The use

of

gum

arabic in spray-

dried flavors has expanded rapidly in re-

duced world supplies of gum arabic and prices of this important water soluble gum have soared. The United States is the world’s largest consumer of gum arabic and the current tight supply

sit-

uation and high prices are causing in-

much

dustry users arabic stocks

gum

concern. U.S.

have been virtually de-

and imports this year will likely be below the unusually small 1973 level. Gum arabic is used in a wide spectrum of products and industries, where it performs as a stabilizer, emulsifier, or

pleted,

as a binding agent. It

is

quite popular

for use in food products as

it is

tasteless

and odorless, and when used in association or in combination with other food items,

does not affect their qualities

it

or food value.

Over half of U.S. consumption

is

in

and prepacked cake mixes. Pharmaceutical applications account for about one-quarter of U.S. consumption where the gum is used as a binder in lozenges and pills, and as an emulsifying agent in medicinal

such as castor liver oil. It

is

oil,

oil

mineral

El Salvador’s poultry and egg indus-

booming, with much of the credit going to its recently renewed Poultry Development Law, which provides fiscal is

cough and cold remedies. The balance of U.S. consumption is in the lithography, cosmetic, and adhesive industries. The current shortage and high prices for available supplies has sent industry

researchers scurrying to find substitutes.

To

there has been

date,

some

gum

of

the world’s largest producer

arabic, accounting for about 80

Although the Sudanese producing areas were not as hard percent of the

those of other African countries

hit as

examination was the Ley de Fomento Avicola Law for the Development of



concerned with not only boosting poulproduction, but also with meeting

the competition offered

having

the greatest impact exempts the poultry

industry from

Law

all

taxes and duties.

The

also allows duty-free importation

of virtually

inputs and frees the in-

all

dustry from the stamp tax on sales of

poultry products and concentrates.

was not

until

Ministry of Agriculture began to promote the formation of small farms called, “granjas,” which are technically equipped for efficient and economic production. Development was retarded, however, by the relatively high prices of the

required production inputs.

As El eted,

however,

efforts to find

new food

sources intensified. Taking into account the rapid growth rate of birds, the Gov-

ernment looked source

of

Page 12

to poultry as a possible

protein.

The

lier,

which sparked rapid growth of

result

of

its

that

Law prompted a upswing in the commercial poulindustry and egg production. At the

In El Salvador, the

first

census of the

years later, the figures showed close to 2 million birds,

Development of the

in

in

and

in

African affected

northern Nigeria. All of these countries have been greatly by the Sahelian drought.

Not only has

the adverse weather hurt

from which the gum is who would northe gum have been migrat-

the acacia trees

extracted, but workers

mally collect

The gum made by nomads,

ing out of the drought areas. collections are usually

who “wound”

the trees after the rainy

season ends and return some months

The

scarcity

of drinking water and food for these

workers has become a major problem.

The gum collections usually begin in November-December and continue through until

June or July.

The best grade gum arabic comes from the Kordofan Province of Sudan, which is to the west of the White Nile. Because of the small 1972-73 Sudanese harvest, the Gum Arabic Trading Company (GATC), which handles all of Sudan’s gum sales and exports, has been using new crop material from the 1973-74 collections to fulfill outstanding

from

broiler industry

1.7

GATC

has

been offering the remainder of the 1973-74 crop on a bid basis, and prices

have

been

ranging

from

$3,300

to

$4,609 per metric ton f.o.b. ($1.50 to $2.09 per pound), compared with year-

$676 per ton (31

cents per pound).

U.S. consumption of

gum

arabic in

recent years has been estimated at be-

ly.

the major portion of U.S.

about

million

1961-62 to over 7.7 million

gum

arabic

imports, accounting for 95 percent of the 1973 total.

Most U.S. imports made during the months of this year were based on

early

unfilled

1972-73.

—Based on

The

contracts of last year,

valued at $9.7 million. Sudan supplies

has also been dramatic, with production

in

produced

23 gran-

1

egg totals of 700,000.

pounds pounds

is

and daily

sector

granjas,

jas,

arabic

tween 25 and 30 million pounds annualHowever, U.S. imports of gum arabic in 1973 totaled only 16.8 million pounds valued at $5.2 million, about half of the 1972 imports of 32 million pounds

commer-

(1962-63), there were 87 410,000 birds, and a daily production of 155,521 eggs. Just about 10

cial

of the balance of the world’s

gum

Mauritania, Senegal, Chad, Mali, Niger,

similar

time of the

all

earlier quotations of

country’s poultry industry.

increasing

Salvador’s population skyrock-

by Guatemala.

The Salvadoran Law was patterned after one adopted by Guatemala 2 years ear-

try

1950 that development of El Salvador’s commercial poultry operations was begun. At this time It

was

the Poultry Industry. El Salvador

try

Law

Most

supply of

total.

poultry complex. the

were sharply lower.

later to collect the exudate.

success achieved with cornstarch deriva-

is

1972, well below the 1965-69 aver-

limited

tives.

Sudan

Sudan’s

small.

age of 53,019 tons, and 1973 shipments

and cod

also used as a stabilizer in

incentives for the country’s expanding

The provision under

in

crops have been

emulsions

oil,

Salvadoran Law Aids Poultry Industry try

belt, rainfall in re-

exports totaled 43,756 metric tons

gum gum

cent years, especially in packaged gela-

greatly re-

major drought

where

confectionery

manufacture,

in

tin desserts

he African drought has

in the

cent years has been below normal and

ization.

Prices Soar

It

widely used as a foam stabilizer in beer and soft drinks and is an important item

1973 contracts, and new conprobably not be arriv-

tract material will

a dispatch

from

Office of U.S. Agricultural Attache

San Salvador

ing until early

summer.

—By Rex

E. T.

Dull

Special Studies Branch,

FAS

Foreign Agriculture

.

CROPS AND MARKETS come completely by

GRAINS, FEEDS, PULSES, AND SEEDS —

he



i

m

WmsMsm

Conditions reported as of early July indicate prospects for a gross grain crop of about 215 million metric tons in the Soviet

Union.

A harvest

tons larger than the

of this size would be roughly 10 million

Department of Agriculture

in

mid-June. The record 1973 crop

Bulgaria, however,

some is

rainfall

and

districts.

expecting a normal grain harvest

if

the hot, dry weather reported at the beginning of July continues throughout the country.

Rotterdam Grain Prices and Levies Current offer prices for imported grain

The current estimate for both 1974 Soviet wheat production and coarse grain output is 100 million tons. Each is up 5 million from the mid-June estimates. The current estimate for miscellaneous grains and pulses remains unchanged from the

Rotterdam, the

Change from Item

previous

A year

July 16

week

ago

Do/.

Cents per bu.

per bu.

15-million-ton estimate of mid-June.

Weather during June this year was generally favorable for development of the USSR grain crop, particularly for spring grains. Precipitation for the month ranged from slightly below average in the extreme southern part of European USSR to more than double the normal amount in the Volga Region. Over most of the major agricultural areas of both European and Asian USSR, June precipitation generally ranged between 125 and 150 percent of normal level. Soil moisture supplies at the end of June mostly were improved from those of a year earlier. Areas with smaller supplies of soil moisture this year than at the end of June in 1973, were Moldavia, the southern and eastern parts of the Ukraine, the North Caucasus, and Altay Kray. However, soil moisture supplies at the end of June 1974 were below the 1969-73 average for that date in most areas from the Urals eastward, as well as in Moldavia and the Southern Ukraine. On the other hand, moisture supplies were significantly better than the 1969-73 average over all of the major agricultural areas of European USSR, except Moldavia and Southern Ukraine. s

Unfavorable Weather Clouds East European Grain Outlook The late April-early May rains that Europe’s drought continued throughout

at

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

totaled 222.5 million tons.

often

However,

announced goal for 1974, and would be

10 million tons higher than the amount estimated by the U.S.

now

rains.

tempered by recent reports of continuous heavy cool temperatures in

Soviet Grain Prospects Improve

summer

persistent early

the optimistic outlook as of the beginning of July, has been

per bu.

Wheat: Canadian No. Australian

May

threaten that area’s grain prospects. Persistent rainfall,

accompanied by high winds and unseasonally cool

CWRS-13.5

FAQ 2

5.90 C) 0)

+

5.72

+

8

C) C) C)

o (*)

U.S. No. 2 Dark Northern Spring:

14 percent 15 percent U.S. No. 2 Hard Winter: .

sorghum 3 Feed barley

U.S. No.

o

3.94 4.01

3

3.91

+37

4.54

C)

13.5 percent No. 3 Hard Amber Durum Argentine U.S. No. 2 Soft Red Winter. Feedgrains: U.S. No. 3 Yellow corn .... Argentine Plate corn U.S. No. 2 sorghum Argentine-Granifero .

.

5.14 7.81 C) C)

.

.

+

1

O

<*>

o

3.84

2

3.45 3.77 3.11

+

9

3.25 3.68 3.09

3.14 2.90

+ 10 + 1

3.12 2.76

6.75

+

3

8.18

0 0

0 0

.24

-21

1.02 .49 .60

1

Soybeans: U.S. No. 2 Yellow

EC import Wheat 3

levies: 4

Corn 5

4

Sorghum 5

4

2

3 Basis c.i.f. Tilbury, England. Durum has original Levies applying in six EC member a separate countries. Levies in UK, Denmark and Ireland are adjusted ac5 Italian levies are 19 cording to transitional arrangements. Note: cents a bushel lower than those of other EC countries. Price basis 30- to 60-day delivery. 1

broke East and June, and

finally

1

USSR SKS-14

Do/.

Not quoted.

levy.

4

i

weather, has caused sporadic flooding. Serious lodging could result if rains continue.

Hungary and Czechoslovakia appear

to be the hardest hit

and unusually cold, windy weather. may have destroyed nearly 30,000 acres of the Hungarian grain crop, while other sources indicate the damage could be more serious. Rainfall in Czechaccomoslovakia has continued almost daily since early June panied at times by unusually cold temperatures and hail storms intensifying the perennial problem of a shortage of by the continuous

rainfall

Press reports indicate bad weather





dry storage space for grains.

In Poland, lack of moisture in early spring has been overJuly 22, 1

1974

COTTON May

Cotton Exports Push 1973-74 Near 5-Million Bale Mark

Total To

May 1974

of 561,000 running 10 months of the 1973-74 season to 4.8 million. Cumulative shipments were 17 percent above those for the same period last season and represent the

U.S. exports of raw cotton in

bales brought the total for the

highest

August-May

total

first

since

1960-61,

when

6.1

million

bales were exported. Exports for the entire 1973-74 season

Page 13

are

now

estimated at 6.1 million bales, 100,000 higher than

earlier forecasts,

and 15 percent higher than exports of

5.3

million bales in 1972-73.

May

shipments to European destinations of 76,000 bales,

or 14 percent of the total, were also 14 percent above the

67,000 bales shipped in

May

1973. Cumulative August-May

sidies

range from about 7 to 14 cents per pound depending on

type.

While

restitution for these tobaccos

is

fixed in

amount

and destination, apparently no such limitations will apply to tobacco disposed of by export tender. This could become a convenient and regular method for disposing of surplus Community tobacco stocks.

shipments to Europe of 674,000 bales were the second highest since

1967-68, but 35 percent

less

period of 1972-73 which exceeded

1

than those for the same

exception of the Scandinavian countries,

Italy,

European destinations registered declines in May shipments this year from those of May 1973. May exports to non-European destinations, totaling 485,000 bales, were 31 percent above shipments in May 1973. May 1974 exports were substantially above May 1973 levels to Indonesia, Canada, Malaysia, Morocco, Singapore, and the People’s Republic of China, but lower to Ghana, South Korea, the Philippines, and Thailand. Cumulative August-May exports to all non-European destinations of 4.1 million bales were up 35 percent from the 3.1 million bales shipped during the same period last year. mania, and Spain,

DAIRY AND POULTRY

With the Poland, Ro-

million bales.

all

EC Ends

Broiler

Export Subsidy

The 6.5-cents-per-pound export subsidy established by the European Community on May 1 was terminated effective July 1. Some 48 million pounds were exported, about half of it to the USSR, with the aid of the subsidy. There are now no EC export subsidies for poultry meat or eggs.

West Germany Approves

New

Low-Fat Butter West Germany has approved the production and marketing

of butter with a fat content of at least 39 percent but not

more than 41 dairy cream or

TOBACCO EC Authorizes Aid For Wrapper Tobacco The European Community Council has authorized

“special

aid” to ensure sale of Italian cigar wrapper tobacco left over

from the 1968 and 1969 crops. Processors of these tobaccos will receive payment equivalent to 4.45 units of tity

account per kg (about $2.44 per

of wrapper involved

is

lb.).

Quan-

butter, with

One purpose of authorizing the low-fat butter is to assist consumers in reducing caloric intake without drastically changing consumption habits. Another is to help the dairy industry meet competition from the margarine industry, which has developed a type of margarine with fat content of about 40 percent. This margarine product has been on the German market for a number of years and reportedly has found favorable consumer acceptance.

not known.

The special aid is justified on grounds that the wrapper accumulated before the Common Agricultural Policy for tobacco went into effect, and therefore, was not eligible for the buyers premiums payable by the Community on wrapper from the 1970 and subsequent crops. The buyers premium

must be produced from milk protein added.

percent. This butter

for

1974 crop wrapper

is

SUGAR AND TROPICAL PRODUCTS Brazil

Reports Record

1973 Sugar Exports In 1973 Brazil increased sugar exports by 13 percent over

5.66 units

1972’s level to 2,970,600 metric tons, valued at

of account per kg.

US$600

mil-

Exports were largest to the United States, totaling 445,600 metric tons. Exports to the Soviet Union (440,300 metric lion.

EC Issues Tender For Italian Tobacco On June 24, the European Community Commission

tons) and the People’s Republic of China (371,300) compare with those of 1972, which were 330,200 and 410,700 metric issued

an invitation to tender for export of 17.2 million pounds of tobacco from the 1970 crop being held by the Italian intervention agency.

The tobacco offered apparently represents the remnants of 1970 crop intervention stocks and includes about 5.5 million pounds of burley and 8.2 million of oriental and semi-oriental. The dealine for submission of bids is September 6. Acceptance of tenders would be made within 15 days following the

tons, respectively.

Exports to

oil

producing Islamic countries,

notably Iran and Iraq, were up. In terms of 1974-75 production, Brazil has authorized a 12

percent increase, to place the total at 125 million bags, or 7.8 million metric tons,

raw value. Production during the 1973-74

season was 6.9 million tons. The Sugar and Alcohol Institute is

investing $183 million in a

program

to increase production

capacity to 9 million metric tons by 1977.

closing date.

The tobacco

likely

would move

into export markets at prices

well below the cost of production.

The burley could compete

markets with lower quality hurleys from other sources and the oriental conceivably could be attractive to U.S. manufacturers in view of current high prices for Turkish and

FATS, OILS,

AND OILSEEDS

in third

Greek The

orientals.

EC

is

presently subsidizing exports of 1971 and 1973

crop Italian tobaccos, including burley, to specified destinations in North Africa, Eastern Europe, and the Far East. Sub-

Page 14

India Expanding

Peanut Meal Exports During January-March 1974, India’s exports of peanut meal rose to 302,300 metric tons 24 percent' above the 243,900 tons shipped during the same 1973 period. Nearly



180,000 tons, or three-fifths of the

total,

moved

to centrally

Foreign Agriculture

lit

planned countries, compared with

EC REFERENCE PRICES FOR FRESH LEMONS

less than 140,000 tons, or 1973 period. Japan, the largest single destination, registered about 55,000 tons of peanut meal, or 5,000 tons less than during same 3 months of 1973.

57 percent,

The

increase reflects larger availabilities

from the record

6-million-ton 1973 peanut harvest. Exports for calendar 1974

expected to be about

are

[In

in the

817,800 tons

1

million

and 855,300 tons

in 1973,

compared with

tons,

units of account

1

per 100 kg]

1974-75 25.9

June 1974 July

August

September October

in 1972.

November December

Peru Sells Fishmeal to the PRC

January 1975 February

of the Peruvian fishmeal and

Officials

(EPCHAP)

oil

export agency

March

disclosed plans for contract negotiations during

April

August-September this year with representatives of the People’s Republic of China (PRC) on fishmeal purchases. Reportedly the PRC will be seeking a 2-year contract for 1 50,000

May

One

tons of fishmeal per year. that,

EPCHAP

based upon a recent 4-month

indicated

official

PRC, the bulk swine feeding in communes trip to the

of the fishmeal would be used for surrounding major coastal cities. Payment arrangements between Peru and the PRC are in pounds sterling.

Brazil's



During October 1973-June 1974 the period corresponding marketing year Brazilian exports of soybeans and meal (meal basis) declined to 1.5 million metric tons, compared with 1.66 million for the same 9-month period of



1972-73.

The volume

for the current period

is

equal to the



meal fraction of 69.4 million bushels of soybeans 7.6 million less than that for the volume shipped during the first 9 months of 1972-73. All of the decline was reflected in reduced meal exports which, at 810,000 tons, were down more than 300,000 tons from those for the 1972-73 period. The bulk of Brazilian soybean and

(24.5) (24.9) (22.1) (19.4) (17.6) (18.1) (18.9) (18.5) (19.0) (19.7) (20.1)

Official parity between the EC’s unit of account (u.a.) and the U.S. dollar is u.a. equals US$1.20635. This, however, merely represents an overall approximation. A more precise measurement would necessitate adjustments to reflect the relationship of the respective currency of each EC Member State to the unit of account and to the current value of the U.S. dollar. 1

GENERAL

Soybean, Meal Exports Lagging

to the U.S.

(23.3)

27.3 27.7 24.6 21.7 19.7 20.2 21.1 20.7 21.2 22.0 22.4

meal exports move to East and West

India's

Monsoon

Activity

Generally Below Normal The performance

of India’s

monsoon thus

far in the current

season has been generally tardy in coverage and below normal in

performance. Available information indicates that kharif harvest) sowings in parts of the country have been de-

(fall

layed because of the monsoon’s performance. This delay

causing concern

below average

among farmers

in

several States.

activity will place increasing

is

Further

importance on the

behavior of the monsoon during the balance of the season.

European markets.

Turkey Resumes Poppy Cultivation

FRUIT, NUTS,

AND VEGETABLES

EC Changes Selected Fruit Export Subsidies

The European Community announced sidy changes effective June 19,

moved from

the

list

several export sub-

1974. Iceland has been re-

of third countries to which the apple

export subsidy of 3 units of account per 100 kg applies. In addition, a subsidy of 4 units of account per 100 kg was established for fresh peaches.

The Turkish Government recently announced resumption opium poppy cultivation. A resolution has been signed authorizing opium poppy cultivation in six Provinces in western Turkey. This comes exactly 3 years after the Turkish Government had agreed to terminate opium poppy cultivation, and of

had proceeded with U.S. assistance to find appropriate tute enterprises for opium-producing farmers.

The termination of opium poppy cultivation was never a move in Turkey, and became a heated issue during last year’s national election. At that time, both major political parties campaigned on a pledge to resume poppy cultivation. popular

State farms began germinating will distribute

EC Sets 1974-75

Lemon

Commission on

into the prices

them

poppy seeds

in

March and

to the farmers for planting in October.

Prices

Reference prices were established by the European nity

substi-



May

Commu-

lemons imported during the 1974-75 marketing year. Reference

EC

Other Foreign Agriculture Publications

31, 1974, for fresh

often referred to as

minimum

entry prices



• World Meal Production and Exports:

are estab-

tion

lished annually

by the EC Commission for a wide array of and vegetables. The reference price system was



fresh fruits



designed to protect Italy, against

EC

horticultural producers, particularly

low-priced imports from third countries.

The 1974-75 reference prices for fresh lemons are generally 11-12 percent above those applicable in 1973-74. Reference prices for 1973-74 are

July 22,

1974

shown

and 1975 Outlook

(FFO

1974 Situa-

7-74)

World Livestock Numbers for 1974 (FLM 7-74) World Agricultural Production and Trade Statisti-

Report (June 1974) may be obtained free from the Foreign Agricultural Service, USDA, Washington, D.C. 20250. Rm. 5918 S.; Tel.: 202-447-7937. cal

Single copies

in parentheses.

Page 15

DEPARTMENT OF AGRICULTURE

U.S.

WASHINGTON. D

C.

20250

POSTAGE AND FEES PAID U.S. DEPARTMENT OF AGRICULTURE AGR lOI

PENALTY FOR PRIVATE USE. *300 OFFICIAL BUSINESS

First Class

you no longer wish to receive this publication, please check here and return this Bheet, or addressed portion of envelope in If

which publication was mailed. If

PRINT

your address should be changed

TYPE

or

CODE,

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

ZIP

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

FOREIGN AGRICULTURE

PROCESSED FOOD EXPORTS GAIN IMPORTANCE

ISRAELI

Continued from page 9 ity

of

purchases.

its

closer control of

its

By maintaining

Research is also being done to develop tomato varieties for the fresh market but which also are suitable for mechani-

operations, proces-

sors can quickly adjust to the vagaries

of the shifting

European and other markets, from the processing of fruit seg-

ments to natural juices to fruit drinks, to meet the dictates of the consumer.

1965,

the

canning industry ab-

sorbed just under 17,000 tons of toma-

grown

toes

mainly of corn, green beans, carrots, broccoli,

and

sprouts,

and

brussels

1971 amounted to some

in

$400,000, with returns from 1973 ex-

cal harvesting.

In

sist

cauliflower,

specifically

for

industrial

ports expected to reach about $2.5 million.

At present

there are

two freezing

plants in operation with a capacity of

The vegetable processing industry has grown rapidly and both domestic supplies and export increases show this. Divided into three main branches can-

variety of tomato sauces, tomato purees,

ing industry.

ning (mostly tomato products), dehy-

and

purchase taxes, or other fees on raw

use. In

and freezing



the industry has

seen a marked growth in tomato supplies for

The

infancy, but

It

expand

some

exotic

exported.

Government

gives

high

materials

It

or

food processrefunds customs duties, intermediate

products

direct local taxes through a special re-

expected to show large

and used surplus produce. Now the industry buys vegetables grown specifically to meet its needs. The most important dehydrated products are carrots, onions, potatoes, red and green peppers, and red beets. The industry bought about 26,000 tons of vegetables in 1971 and forecasts indicate that by 1980 it will use close to 90,000 tons. Judging from past experience, it is probable the forecast is on the low side. The frozen vegetable industry began production in 1971, and domestic sales

is

its

new

line to include

products. These might

new kinds

of

and other tomato products now being produced in some larger industrial sauces,

countries, but not yet

common

is

Vegetable dehydration was

probable the industry

tomato

include tomato powders,

Page 16

is

the rest

Israeli

an

in

Total fresh tomato production in 1972 was 161,000 tons, of which more than half went to the processing industry. The industry will probably be able to handle about 150,000 tons in the next few years, almost double the present level.

about 25,000-30,000 tons,

products

The

priority to developing the

offshoot of the fresh vegetable industry

is

future growth.

will

Local consumption of these

paste.

about 45,000 tons.

its

freezing industry

is

took 66,000 tons and

whether produced in Israel or imported. Exporters receive compensation for in-

canning and vegetables for de-

hydration.

it

duces peeled tomatoes, tomato juice, a



dration,

1971,

86,000 tons in 1972. The industry pro-

also

now

at first

include broccoli, brussels sprouts,

corn on the cob, and peas. Exports con-

in Israel. *

U. S.

GOVERNMENT PRINTING OFFICE

:

fund proportional to the added value of the exported products.

The Ministry of Commerce and

In-

dustry participates in export promotion

and pays part of promotion market surveys, participation in international shows and fairs. It also maintains overseas sales promoactivities

costs, including

tion offices. also helps by makworking capital for exporters to be used to purchase raw materials and pay salaries, and other costs. Other incentives include Government development loans and tax concessions.

The Government

ing

available

1974 582-173/1

Foreign Agriculture