sents the greatest potential expanding market for U.S. feed grains in the world at this time, and further gains are expected. Rice: The U.S. Rice Export Development Association, Inc., expanded its program in Western Europe and Africa in 1962. Active programs are now underway in the United Kingdom, the Netherlands, Belgium, Luxembourg, Denmark, Norway, Sweden, Switzerland, and the Republic of South Africa. The association also participated in trade fairs in Berlin, Stuttgart, Hamburg, Tel Aviv, and Accra during the year. Country programs are carried out by home economists (foreign nationals working under the direct supervision of the association) who promote the economy, versatility, and nutritive value of high quality American rice through cooking demonstrations which include talks and slide presentations to housewives, clubs, mass feeding establishments such as schools and hospitals, and at trade fair exhibits. On the breaking of relations with Cuba we lost our largest cash market for rice. However, increased cash sales of U.S. rice to Western Europe and Africa have more than offset the 32 million bags of annual cash sales that we lost to Cuba. Pulses: Under an umbrella-type agreement with the Western Bean Dealers, Inc., of Twin Falls, Idaho, the following activities were carried out for dry edible beans and peas in fiscal year 1962: (1) Participation in trade fairs at Hamburg, Germany, and Tel Aviv, Israel; (2) three-man market potential survey of Latin America; and (3) a five-man industry team from West Europe visited the U.S. pulse industry. In past years there has been no industrywide organization to participate in this program. However, work is now progressing on the articles of incorporation for an industrywide organization to backstop and supervise a pulses market development program. Seeds Market development work in seeds is carried on mainly with grass and legume seed. Exports reached an alltime high of 63 million pounds in 1960-61 and the 1961-62 exports will be the second highest of record. Cooperators in market development activities in seeds include the Pacific Seed Export Market Institute, the Oregon Seed Council, the Texas Certified Seed Producers, Inc., and the Washington Crop Improvement Association. The work with cooperators includes sending missions abroad to study marketing problems and bringing technicians and representatives of the trade to the producing areas of the United States to observe the production of superior quality seeds. These exchanges have added impetus to the multiplication of new European varieties of forage seeds in this country; created interest in more cooperative research with European countries to determine the effect of environment on genetic characteristics of seeds; spurred interest in greater exchange of information and plant materials; and increased interest among U.S. seedsmen in the expanding export market. (g) Livestock and meat promotion: Market development activities involving the promotion and potential export of livestock and meat products was carried out in 42 countries during the period under review. Lard: A lard promotional project, in cooperation with the National Livestock and Meat Board as the cooperator, was developed for the United Kingdom. As a result of the loss of the Cuban export market, it is of vital importance to the swine industry and lard processors that exports to the United Kingdom be maintained or increased. For the first 6 months, January-June 1962, lard exports to the United Kingdom totaled 230 million pounds as compared to 213 million pounds during the same period of 1961. Although the present program is relatively small in comparison to the size of the United Kingdom market, it will provide guidance for further promotional activities for lard. Tallow: Exports of U.S. tallow are now equal to nearly one-half of U.S. production and have an annual value of about $135 million. With probable expanded U.S. production and decreased consumption in the traditional soap and fatty acid industries, it is essential that efforts be made to promote expanded exports of tallow. In the major market, Japan, there is a leveling off of soap consumption because of the rapid increase in use of washing machines and detergents; and a study indicates that future promotional efforts should be shifted from the large cities to the medium and small size communities and rural areas. Preliminary studies also indicate that a large potential exists in Japan for the use of tallow in livestock feeds. The Japanese forecast that they will produce 5.4 million metric tons of mixed livestock feeds in 1962. The inclusion of tallow in this quantity of feed, at even less than the current U.S. level, would require 250 million pounds of tallow and grease. 95910-63-pt. 3- -61 Exports of U.S. tallow to Colombia in January-June of 1962 were 14.5 million pounds as compared to 10.3 million pounds in the same period of 1961. The possibility of expanded soap promotion activities in other Central and South American countries is under consideration. The National Renderers Association opened a European office in Rome in May 1962. Activities under this project will emphasize the use of tallow for industrial purposes as well as in livestock feeds and will be carried out in Italy, Spain, Germany, Netherlands, France, and the United Kingdom. Hides and skins: The market development project, in cooperation with the Western States Meat Packers Association and the National Hide Association, continued in Japan. The objective of this project is to further expand consump tion of leather goods in Japan. Exports of U.S. cattle hides to Japan in 1961 amounted to 3,174,103 pieces valued at $25 million, as compared to the 1960 exports of 2,392,172 pieces valued at $20 million. Variety meats: A team, with representatives of the American Meat Institute and the USDA, made a study of the problems encountered in exporting variety meats to Western Europe. The countries involved in the study were West Germany, Belgium, France, the Netherlands, and United Kingdom. As a result of this study, difficulties with our exports of this product have been greatly reduced. (h) Tobacco promotion: Market development projects, carried out in cooperation with the U.S. tobacco trade and foreign monopolies concerned, continued throughout fiscal year 1962 in Japan, France, and Thailand. Results of the intensive "brand" promotion work carried out under these projects have been impressive in all three countries. In France usings of U.S. leaf tobacco in 1961 were the highest since 1955. Gitanes and Royal cigarettes were heavily promoted in France and showed major sales increases. Japanese imports of U.S. leaf in 1961 were 19.4 million pounds, compared with the 1960 level of 12.7 million pounds. The sale of Peace cigarettes, a Japanese brand containing 25 percent U.S. leaf, increased from 14.7 billion pieces in 1960 to 17.4 billion in 1961. The United States continued to supply practically all of the leaf tobacco imported by Thailand and usings of U.S. leaf in that country increased from 9.5 million pounds in 1960 to 9.8 in 1961, and with a further increase forecast for 1962. The Virginia Dark-Fired and Sun-Cured Export Tobacco Association, Inc., has recently been organized and has become the fourth U.S. tobacco cooperator currently working with FAS in market development work. (i) International trade fairs and related activities: Under international trade fair activities, FAS organizes and manages exhibits abroad designed to promote the development of markets for U.S. agricultural commodities. U.S. trade, agricultural, and industry groups participate by supplying exhibit ideas and materials and technical personnel to man exhibits and carry out other market development promotional activities. Participation in 109 international exhibits since the inception of the program in 1955 has resulted in promotional contacts at fairs in 28 countries with a total attendance of approximately 46 million visitors. A new departure in the FAS exhibit programs is a series of exhibits in four of the largest food fairs in Europe during 1962 (Manchester, London, Munich, and Brussels) which include self-service sales of U.S. processed food products to exhibit visitors on a major scale for the first time. The Manchester exhibit held during this reporting period involved the products of 100 commercial food firms from throughout the United States and the United Kingdom. Total sales of food products to fair visitors amounted to $35,000. Commercial firms delivered products to the fair at their own expense, bearing shipping, handling, and customs charges plus a share of the operational expense of the store operation. Benefits to the firms included opportunity to: Test the sales pull of their products in self-service setting. Get their brands into English homes where the whole family can try them. Benefit by supporting promotional activities focusing attention on U.S. foods for weeks before and after the fair. During this period international trade fairs and related activities were held as follows: General exhibits: Tel Aviv Israel. June 5-July 5. Interagency exhibits: Attaché-cooperator exhibits: Brussels, Belgium... Dublin, Ireland. Madrid, Spain....... Trade center exhibit: London, England.. Feb. 2-11.. Mar. 21-25. Wheat products, honey, rice, poultry products, lard, fruit and a special presentation of frozen and dry packaged foods provided by 100 commercial food firms for sale to fair visitors in a self-service store within the exhibit. Soybeans and soybean products, beans, peas, lentils, rice, and modern convenience foods in the form of packaged and frozen food products. Wheat, poultry soy bean, and fruit products. Soybean and sopbean products, poultry and poultry products. Wheat, certified seed, feed concentrates and purebred livestock. Apr. 27-May 13... Poultry, rice, wheat, soybean, tobacco, fruit, and May 1-5 May 23-June 23... other U.S. food products. Fruit and feed grains, wheat, and tobacco. Wheat and wheat products, soybean and soybean products, dairy and poultry products, feed grains, cotton, and tobacco. 1961 (continuous).. Feed grains (including grading and testing tech 1 Cooperative with U.S. Information Service. 2 Cooperative with U.S. Department of Commerce. niques). (j) Other projects and activities: Principal types of FAS projects which are being carried out, in addition to trade fair exhibits, include: marketing studies and analyses; personnel exchanges; long-range studies of supply and demand; studies on the effects of title I, public law 480 programs; evaluations of section 104(a) activities; and studies on consumer expenditures. It should be noted that whenever the work can be done more effectively or more economically, the projects are carried out through contracts with U.S. or foreign organizations. Long-range supply and demand studies are underway or planned for 12 countries to include consumer preference for food, fiber, and tobacco; food consumption patterns at different income levels; and long-term projections of supply and demand for agricultural commodities with particular emphasis on the types available for export from the United States. Studies of the economic effects of title I undertaken in five countries will soon be completed, and the resultant gauge of economic development will be used to guide market development. Similar studies are planned for 12 additional countries. Evaluations of the promotional activities for three commodities under section 104(a) are planned to guide future market development. Development and trade studies are planned for seven countries in which rate of development will have a major effect on their import trade. Market research studies are planned for 13 countries to evaluate market potentials for U.S. agricultural products. Work in these categories is generally contracted out to qualified firms operating in the countries in which work is undertaken. Results of these studies are expected to assist in the development of foreign markets and to serve as the basis for planning future promotional work. Exports of U.S. tallow to Colombia in January-June of 1962 were 14.5 million pounds as compared to 10.3 million pounds in the same period of 1961. The possibility of expanded soap promotion activities in other Central and South American countries is under consideration. The National Renderers Association opened a European office in Rome in May 1962. Activities under this project will emphasize the use of tallow for industrial purposes as well as in livestock feeds and will be carried out in Italy, Spain, Germany, Netherlands, France, and the United Kingdom. Hides and skins: The market development project, in cooperation with the Western States Meat Packers Association and the National Hide Association, continued in Japan. The objective of this project is to further expand consumption of leather goods in Japan. Exports of U.S. cattle hides to Japan in 1961 amounted to 3,174,103 pieces valued at $25 million, as compared to the 1960 exports of 2,392,172 pieces valued at $20 million. Variety meats: A team, with representatives of the American Meat Institute and the USDA, made a study of the problems encountered in exporting variety meats to Western Europe. The countries involved in the study were West Germany, Belgium, France, the Netherlands, and United Kingdom. As a result of this study, difficulties with our exports of this product have been greatly reduced. (h) Tobacco promotion: Market development projects, carried out in cooperation with the U.S. tobacco trade and foreign monopolies concerned, continued throughout fiscal year 1962 in Japan, France, and Thailand. Results of the intensive "brand" promotion work carried out under these projects have been impressive in all three countries. In France usings of U.S. leaf tobacco in 1961 were the highest since 1955. Gitanes and Royal cigarettes were heavily promoted in France and showed major sales increases. Japanese imports of U.S. leaf in 1961 were 19.4 million pounds, compared with the 1960 level of 12.7 million pounds. The sale of Peace cigarettes, a Japanese brand containing 25 percent U.S. leaf, increased from 14.7 billion pieces in 1960 to 17.4 billion in 1961. The United States continued to supply practically all of the leaf tobacco imported by Thailand and usings of U.S. leaf in that country increased from 9.5 million pounds in 1960 to 9.8 in 1961, and with a further increase forecast for 1962. The Virginia Dark-Fired and Sun-Cured Export Tobacco Association, Inc., has recently been organized and has become the fourth U.S. tobacco cooperator currently working with FAS in market development work. (i) International trade fairs and related activities: Under international trade fair activities, FAS organizes and manages exhibits abroad designed to promote the development of markets for U.S. agricultural commodities. U.S. trade, agricultural, and industry groups participate by supplying exhibit ideas and materials and technical personnel to man exhibits and carry out other market development promotional activities. Participation in 109 international exhibits since the inception of the program in 1955 has resulted in promotional contacts at fairs in 28 countries with a total attendance of approximately 46 million visitors. A new departure in the FAS exhibit programs is a series of exhibits in four of the largest food fairs in Europe during 1962 (Manchester, London, Munich, and Brussels) which include self-service sales of U.S. processed food products to exhibit visitors on a major scale for the first time. The Manchester exhibit held during this reporting period involved the products of 100 commercial food firms from throughout the United States and the United Kingdom. Total sales of food products to fair visitors amounted to $35,000. Commercial firms delivered products to the fair at their own expense, bearing shipping, handling, and customs charges plus a share of the operational expense of the store operation. Benefits to the firms included opportunity to: Test the sales pull of their products in self-service setting. Get their brands into English homes where the whole family can try them. Benefit by supporting promotional activities focusing attention on U.S. foods for weeks before and after the fair. During this period international trade fairs and related activities were held as follows: General exhibits: Tel Aviv Israel. Interagency exhibits: Attaché-cooperator exhibits: Brussels, Belgium.. Dublin, Ireland. Madrid, Spain........ Trade center exhibit: London, England.. June 5-July 5.. Feb. 2-11... Mar. 21-25. Commodities featured Wheat products, honey, rice, poultry products, lard, fruit and a special presentation of frozen and dry packaged foods provided by 100 commercial food firms for sale to fair visitors in a self-service store within the exhibit. Soybeans and soybean products, beans, peas, lentils, rice, and modern convenience foods in the form of packaged and frozen food products. Wheat, poultry soy bean, and fruit products. Soybean and sopbean products, poultry and poultry products. Wheat, certified seed, feed concentrates and purebred livestock. Apr. 27-May 13... Poultry, rice, wheat, soybean, tobacco, fruit, and May 1-5 May 23-June 23... other U.S. food products. Fruit and feed grains, wheat, and tobacco. Wheat and wheat products, soybean and soybean products, dairy and poultry products, feed grains, cotton, and tobacco. 1961 (continuous).. Feed grains (including grading and testing techniques). 1 Cooperative with U.S. Information Service. * Cooperative with U.S. Department of Commerce. (j) Other projects and activities: Principal types of FAS projects which are being carried out, in addition to trade fair exhibits, include: marketing studies and analyses; personnel exchanges; long-range studies of supply and demand; studies on the effects of title I, public law 480 programs; evaluations of section 104(a) activities; and studies on consumer expenditures. It should be noted that whenever the work can be done more effectively or more economically, the projects are carried out through contracts with U.S. or foreign organizations. Long-range supply and demand studies are underway or planned for 12 countries to include consumer preference for food, fiber, and tobacco; food consumption patterns at different income levels; and long-term projections of supply and demand for agricultural commodities with particular emphasis on the types available for export from the United States. Studies of the economic effects of title I undertaken in five countries will soon be completed, and the resultant gauge of economic development will be used to guide market development. Similar studies are planned for 12 additional countries. Evaluations of the promotional activities for three commodities under section 104(a) are planned to guide future market development. Development and trade studies are planned for seven countries in which rate of development will have a major effect on their import trade. Market research studies are planned for 13 countries to evaluate market potentials for U.S. agricultural products. Work in these categories is generally contracted out to qualified firms operating in the countries in which work is undertaken. Results of these studies are expected to assist in the development of foreign markets and to serve as the basis for planning future promotional work. |