The naval stores report was expanded to include sales information from processing plants in Alabama and Mississippi. The report now covers all U.S. movement and sales of naval stores through the ports of Savannah, Jacksonville, and Mobile. With bulk exports of turpentine increasing and currently constituting a significant part of our export market, information on such transactions has become necessary for representative market news coverage.

The Naval Stores Market News Service, in cooperation with reporting sellers, is publishing a weighted average price on bulk export shipments on a 7.2-poundgallon basis, net to seller, f.o.b. ships tanks, Savannah, Jacksonville, or Mobile. This average appears on the monthly report, when available. For an average to appear, it must be based on any combination of sales by at least two sellers. Any average published is representative of all applicable sales since the last quotation.

Eight new reporting points were added for tobacco and one was discontinued. The movement of fresh fruits and vegetables by "piggyback" truck and rail shipment is now being reported in Florida, Texas, Arizona, California, and Washington. While this type of movement still represents a small proportion of the total, indications are that the practice will grow and spread to other commodities.

D. Federal-State cooperation

Federal-State cooperative agreements in effect, fiscal year 1962 by commodity group

E. Agriculture-weather reporting survey

At the direction of the House Appropriations Committee a survey was conducted in cooperation with the Weather Bureau to determine (1) the need by agriculture in other sections of the country for weather information similar to that now being provided on a pilot basis in the Mississippi Delta area; and (2) the feasibility of coordinating the market news leased wire system of AMS with facilities of the Weather Bureau in the dissemination of weather reports.

The results of the survey, transmitted to the Congress in April 1962, showed a need for improved weather reporting, particularly in areas producing weathersensitive crops, i.e., fruits and nuts, vegetables, cotton, tobacco, Irish potatoes, and hay. These crops, which have a high per acre value, require several weather influenced operational decisions during the growing season upon which final profit or loss depends.

Other crops and livestock, while affected by weather at key points in their development, are not as highly weather dependent throughout the entire growing period. Therefore, further studies are needed to determine the need for delta type agricultural weather service for these products.

With respect to coordinating the AMS and WB reporting services, it was concluded that the AMS leased wire, because of its heavy load of agricultural market data, cannot make an effective contribution to the rapid dissemination of general weather information of broad regional or national interest. Potentialities for joint assistance by cross-utilization of facilities rest in areas where special agricultural weather programs are being conducted. It was concluded, further, that greater assistance could be afforded by the AMS leased wire service with full implementation of the proposal to modernize it through increased capacity and automatic selectivity.

F. Plans for 1963

1. Increased appropriations provide for the following new and expanded services:

(a) The second phase of the leased wire modernization program will be completed. This involves termination of the eastern and central multipurpose circuits and installation of two commodity circuits-one to transmit fruit and vegetable data and the other for dairy and poultry and grain products. The increase provides also for installation of selectivity equipment on the western leg of the livestock circuit.

(b) A Federal-State seasonal service on fruits and vegetables was initiated at Yuma, Ariz., on November 1, 1962; and a year-round service at Princeton, Fla.. for Dade County will begin about February 1.

(c) A Federal-State service on grain will be initiated in Illinois and a Federal service on grain will be initiated covering the States of Colorado, Wyoming, Kansas, Nebraska, Idaho, and Montana.

(d) Livestock reporting at West Fargo, N. Dak., was initiated on November 19, 1962, with full Federal financing.

2. Study of operations will continue with a view to improving the service wherever possible within available funds.

Does

1 Includes amounts reimbursed to the appropriation in accordance with cooperative agreements. not include amounts expended directly by States and by local groups both under cooperative agreement and outside of agreement.

INSPECTION, GRADING, CLASSING AND STANDARDIZATION

CURRENT ACTIVITIES

These activities assist farmers in obtaining returns for their products commensurate with quality. This is accomplished by: (1) establishing U.S. standards for agricultural commodities that will accurately describe their quality and condition; (2) developing the equipment and methods by which these standards may most efficiently be applied; (3) broadening the knowledge, acceptance and use of such standards by producers, dealers, manufacturers, consumers, and others through demonstrations, training courses, color charts, photographs, plaster models, preparation and loan or sale of copies of standards, etc.; (4) providing an impartial inspection, grading and classing service for producers, dealers, and others on the basis of these standards and for wholesomeness of poultry; and (5) administering and enforcing regulatory and criminal provisions of the Poultry Products Inspection Act and of statutes that require the use of official U.S. standards for cotton, cotton linters, and grain sold in interstate commerce and for tobacco sold at designated auction markets.

SELECTED EXAMFLES OF RECENT PROGRESS AND TRENDS

1. Standardization and related activities

U.S. standards provide a common language to describe quality of products being bought and sold. They must be revised and kept up to date to reflect results of new research and significant changes occurring in production, merchandising practices, and uses of the products. Visual aids are an important part of this work to assure as much uniformity as possible in the application of the standards.

The volume of standardization and demonstration activities in 1962, by commodity group, is reflected in table I.

(a) The Universal Standards for American Upland cotton were revised in June 1962 to be effective June 15, 1963. This was a major revision recommended unanimously by representatives at the Universal Cotton Standards Conference held in Washington. Representatives were present from 14 oversea cotton associations and 42 industry groups in the United States including producers, ginners, shippers, manufacturers, and exchanges.

(b) Efforts continued toward maintenance and improvement in the standards for staple length of cotton. A preliminary study of digital fibrograph results indicates a definite possibility of using this faster test method in the staple purchasing program rather than the slower array sorter method now employed. This study will continue.

(c) Standards for dairy products were revised. The standards for grades of nonfat dry milk were amended to permit a higher solubility index for established grades of high heat nonfat dry milk. At the request of the National Association of State Departments of Agriculture and other interested parties, USDA took the leadership in developing photographic sediment standards for farm holding tank milk. Work on proposed minimum standards for milk for manufacturing purposes continued.

TABLE I.-Volume of standardization and demonstration activities, by commodity group, fiscal year 1962

4 Estimated attendance of over 10,000,000 at trade, professional and State and county fairs where exhibits were shown.

5 Not available.

Assistance was given to the U.S. delegation to the FAO Committee on Standards for Milk and Milk Products. The Department collaborated with the American Dry Milk Institute, and the Iowa study in work on the direct microscopic clump count method as applied to dry milk.

(d) The rapid change in the number and nature of destination buyers of fresh fruits and vegetables has necessitated changes in procedures for establishing and revising standards for these products. A contact group has been established representing large chainstore organizations. These organizations are buying and retailing a substantial majority of the fresh produce being consumed in the country. Indications are that some well-considered advice pertaining to development of standards or related industry problems will be offered by this contact group which represents most of the present day buying trade.

(e) A new system for grading fresh tomatoes for manufacture of strained tomato products was made available to processors and growers. The system involves use of the USDA tomato colorimeter. It is an outgrowth of a conference in 1950 when representatives of tomato-grower and processor groups met with Department personnel to discuss the need for an objective tomato color measurement system to replace visual color evaluation.

A review was made of performance under 1961 canning operations for major canned fruit items with respect to the fill-weight program. Amended instructions and compilation of the fill-weight values were prepared on canned apricots, sweet cherries, Kadota figs, fruit cocktail, fruits for salad, fruit mix, clingstone and freestone peaches, pears, and plums. A special study on drained weights of canned sauerkraut was conducted at four plants to ascertain current packing practices of glasspack kraut. The results will provide the basis for amendments to the grade standards for this product.

(f) Barley and grain sorghum standards were amended in 1962 and comprehensive reviews of wheat and corn standards were initiated to determine what changes, if any, might be needed in the requirements or form of the standards to better meet the needs of the various elements of the trade particularly for end-use purposes.

(g) A survey was initiated on the quality of Hard Red Spring wheat and Hard Red Winter wheat exported by the United States. Investigations were continued on the suitability of new makes and models of rapid moisture-testing devices for use in grain inspection and on maintaining the accuracy of moisture conversion tables. A laboratory manual is being prepared for use in training new technical personnel in the evaluation and standardization of moisture testing equipment. (h) The dual grading system for beef carcasses and slaughter cattle was demonstrated and discussed at numerous State, regional, and national meetings of industry groups. Cattle producers and feeders, marketing agents, packers, retailers, and research and extension workers were among the important segments of the industry included in such meetings. Carcass evaluation programs embodying the principles of dual grading were adopted by the Reciprocal Meat Conference Production Registry International, American Hereford Association, and American Angus Association. The American Nation Cattlemen's Association has long supported the principles of dual grading and in January requested that the Department make dual grading service available on an optional basis for industry trial and study. In response to this and other similar requests, the Secretary announced, on April 10, that dual grading service would be made available for a trial period of 1 year, beginning July 1, 1962, under proposed standards published in the Federal Register. The regular grading service for beef also is available during the trial period.

(i) Demonstrations of the selection of beef by grade and by cut reached many more consumers in 1962 than heretofore.

(j) Proposed raw wool standards with specifications on a micron basis and methods of test for use with the standards were prepared and discussed with other USDA agencies, the Bureau of Customs and the Tariff Commission. The Senate Finance Committee has urged modernization of the wool standards and the National Wool Growers Association and affiliated State groups have endorsed the proposed micron standards.

(k) Of the 78 sets of U.S. rosin standards on loan, 35 were serviced and repaired during the year. Seventeen sets of turpentine testing equipment, including the color standards are on issue to approved packers of turpentine by cooperative agreement.

(1) Poultry products.-A tentative standard for grade A canned whole chicken was developed and circulated for comment. The regulations governing grading and inspection of poultry and poultry products were amended effective August 28, 1961, providing changes in standards for A & B quality frozen poultry.