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WORLD AGRICULTURAL PRODUCTION, PART TWO

March 1997

This reports includes the weather briefs, production briefs, and commodity feature articles from the full World Agricultural Production circular, with the exception of some of the statistical tables and charts. This report draws on information from USDA's global network of agricultural attaches and counselors, official statistics of foreign governments, other foreign source materials, and results of office analysis. Estimates of U.S. acreage, yield, and production are from the USDA Agricultural Statistics Board, except where noted. This report is based on unrounded data;numbers may not add to totals because of rounding. The report reflects official USDA estimates released in the World Agricultural Supply Estimates (WASDE-324) March 11, 1997.

The report was prepared by the Production Estimates and Crop Assessment Division, FAS, AGBOX 1045, 14th and Independence Ave., Washington, DC 20250-1000. Further information may be obtained by writing to the division, or by calling (202) 720-0888, 9516, or by FAX (202) 720-8880.

We plan to issue PART 2 of this circular every month, normally 5 working days AFTER the release of Part 1. The next issue of World Agricultural Production, Part 1, will be available electronically after 3:30 pm local time on April 14, 1997.

WEATHER BRIEFS

BRAZIL: MOISTURE REMAINS ADEQUATE IN ALL GROWING AREAS

Near-normal rainfall prevailed elsewhere in southern Brazil. During February, showers covered the major soybean areas of southern Brazil. During this time soybeans advanced from the reproductive and filling stages. Rainfall in southern Rio Grande do Sul increased irrigation supplies but slowed rice harvest. Rainfall was particularly heavy during the weeks of February 2 - 8 and February 16 - 22. During the first week of March, moderate showers slowed early soybean harvesting across the major crop areas. Heavier showers possibly caused some flooding in portions of Goias and western Minas Gerais.

AUSTRALIA: MOISTURE REMAINS ADEQUATE IN ALL GROWING AREAS

During January 1997, rainfall was near to above normal in southern Queensland and northern New South Wales. A general drying trend dominated Queensland's main sugarcane region as well as livestock areas from southern South Australia to western Queensland. During the first week of February, moderate to heavy showers lingered over northern sections of Queensland's cotton and sorghum belts. During February 9 - 15, heavy rain returned to a broad section of the main sorghum and cotton belts of the east. Some flooding was likely again from the western edge of Queensland's summer crop areas through the Darling Downs region to coastal sugarcane areas of northern New South Wales. Damage to cotton was possible. During February 16 - 22, rain fell throughout Western Australia's main agricultural areas. This moisture was especially welcomed for livestock. Central and western Queensland and New South Wales were favorably dry. During the week of February 23 through March 1, moderate to locally heavy showers returned to Queensland's sorghum and cotton areas. The northern cotton remained unfavorably wet. Cotton harvesting typically begins in April. From March 2 - 8, unseasonable showers persisted in Queensland's main sorghum and cotton areas. Moderate to heavy rainfall kept maturing cotton and sorghum unfavorably wet but added to abundant soil moisture reserves that will ultimately aid winter wheat planting.

NORTHWEST AFRICA: SEVERE DRYNESS DEVELOPS IN MOROCCO DROUGHT CONTINUES IN ALGERIA AND TUNISIA

During January 1997, precipitation was more than twice the normal amount across Morocco. This provided for adequate subsoil moisture for winter grains in the jointing stage. In contrast, precipitation during January was well below normal in central and eastern Algeria and northern Tunisia, with above- normal rain falling in western Algeria. During the first week of February, dry and unusually warm weather prevailed over the winter grains areas in Morocco. That week, light showers fell in central and eastern Algeria and Tunisia, temporarily stabilizing winter grain conditions. During the rest of February, with a few minor exceptions, Morocco, Algeria and Tunisia were dry. During March 1 - 8, drought continued in Algeria and Tunisia while persistent dryness worsened conditions for Morocco's winter grains in or entering the heading stage. A few showers, mostly less than 10 millimeters, brought little if any relief to drought-stressed crops in Algeria and Tunisia.

PRODUCTION BRIEFS

BRAZIL: COCOA BEAN OUTPUT LIKELY TO RISE BECAUSE OF DISEASE-RESISTANT CLONES

Cocoa bean production in Brazil is expected to increase in the near future as a result of several measures being taken by the Cocoa Research and Extension Commission (CEPLAC), according to a report by the U.S. agricultural counselor in Brasilia. CEPLAC has announced that three new varieties of cocoa trees, potentially resistant to witches-broom disease, will be made available to Bahia's cocoa producers. Five more varieties are expected to be available by early-1998. Additionally, CEPLAC is helping cocoa producers to boost productivity by changing the tree density on cocoa plantations. However, it will be a while before the impact on production can be assessed.

The 1996/97 crop forecast of 198,000 tons remains unchanged despite recent rains in Bahia, the main cocoa-producing area, that have provoked market speculation that the upcoming mid-year crop will be larger than last year.

CHILE: WALNUT PRODUCTION FORECAST UP DUE TO FAVORABLE WEATHER

Chile's walnut production during the 1996/97 season (harvested in early-1997) is forecast at 10,600 tons (inshell basis), up 8 percent from 1995/96, according to the U.S. agricultural counselor in Santiago. The upturn reflects favorable weather during the growing season and a slight increase in harvested area.

By Chilean standards, the quality of the 1996/97 walnut crop is reported to be excellent. However, by international standards, most Chilean walnuts are considered to be of poor quality because the fruit on the trees does not mature uniformly, which prolongs the harvest and increases the risk of mold formation. This problem is exacerbated by the large number of walnut varieties scattered throughout the country, hampering efficient orchard maintenance. Walnuts in Chile are harvested when they are ripe, which produces a darker kernel than in most Northern Hemisphere countries.

Although walnuts are planted from the Third Region through the Ninth, over 90 percent are planted in the central areas, specifically Region Five, the Metropolitan Region, and Region Six. The highest-quality walnuts are produced in Region Five where dry weather during the harvest (March through April) allows producers to pick a dry, mold free nut. Other producing regions often are plagued by rains during the harvest season.

COTE D'IVOIRE: COCOA BEAN PRODUCTION ESTIMATE REVISED UPWARD

The 1996/97 cocoa crop in Cote d'Ivoire has been revised to 1.10 million tons, up from the October 1996 forecast (WAP 10-96) of 1.05 million, according to the U.S. agricultural attache in Abidjan. The revision reflects improved prospects for the mid-crop, as the main crop forecast remains unchanged at 900,000 tons. Mid-crop prospects are favorable because of good weather and increased production from hybrid varieties in the western regions.

INDONESIA: COCOA BEAN PRODUCTION ESTIMATE INCREASED DUE TO AREA EXPANSION

According to the U.S. agricultural counselor in Jakarta, Indonesia's 1996/97 cocoa bean production estimate has been revised to 325,000 tons, up 16 percent from the October 1996 forecast (WAP 10-96) of 280,000 tons due to greater-than-anticipated area expansion and an increase in bearing tree numbers. The production estimate for the 1995/96 season has been revised from 275,000 tons to 305,000. For the 1994/95 season, the estimate has been raised slightly--from 255,000 tons to 257,000.

SOUTH AFRICA: CORN CROP STRESSED BY UNFAVORABLE FEBRUARY WEATHER

South Africa's 1996/97 corn crop is estimated at 8.5 million tons, down 1.7 million or 17 percent from last season's bumper crop, according to the U.S. agricultural counselor in Pretoria. Harvested area is estimated at 3.4 million hectares, up 3 percent from 1995/96 despite urging by the National Maize Producers' Association (NAMPO) to reduce corn area. In addition, according to South Africa's National Crop Estimates Committee, area planted to white corn decreased and yellow corn increased in line with the total demand for the product. White corn totaled 1.8 million hectares, down 110,000 from 1995/96; while yellow corn area is estimated at 1.6 million hectares, up 164,000 from last season. White corn area declined because the export market is limited and transportation costs from the traditional western white corn producing areas to harbors are high. Yield is estimated slightly above the 5-year average at 2.50 tons per hectare, but below last year's level of 3.09 tons.

Soil moisture at planting was the best in years and the crop benefitted from regular rainfall early in the season. However, periods of dry weather and stressful heat in February affected parts of the Maize Triangle, especially the Western Transvaal. There also are reports of crop stress and yield loss in portions of the eastern corn area due to dryness. Recent rainfall and cooler temperatures have eased crop stress and stabilized yield prospects. The crop is now in grain-fill and harvesting will start in April.

SPAIN: ALMOND PRODUCTION INCREASES FOLLOWING DROUGHT

The U.S. agricultural counselor in Madrid puts Spain's 1996/97 almond crop at 61,500 tons (shelled basis), down 10 percent from the preliminary forecast of 67,800 (WAP 9-96), but up 36 percent from the drought-reduced crop in 1995/96. Dramatically increased rainfall precipitated the recovery in production.

SPAIN: HAZELNUT CROP DIMINISHED BY UNTIMELY RAINS

According to the U.S. agricultural counselor in Madrid, Spain's 1996/97 hazelnut crop has been revised to 6,500 tons (inshell basis), down 35 percent from the preliminary estimate (WAP 09-96) of 10,000 and down 56 percent from 1995/96. The short crop is the result of cold, rainy weather during pollination.

TURKEY: CITRUS CROP DAMAGED BY FREEZE

Sub-freezing temperatures on February 15 and 16 caused significant damage to Turkey's citrus crops along the Mediterranean coast, according to the U.S. agricultural counselor in Ankara. Temperatures dropped as low as minus 9 degrees Celsius and lasted as long as 56 hours in some areas. Preliminary assessments indicate as much as 30 percent of both the orange and lemon crops, 40 percent of the grapefruit crop, and 15 percent of the tangerine crop had not been picked and were lost as a result of the freeze. Additionally, trees sustained significant damage, precipitating projections of low output during the 1997/98 season.

VENEZUELA: COFFEE PRODUCTION REVISED DOWNWARD

Venezuela's 1996/97 coffee estimate has been revised downward to 958,000 bags, 13 percent below the December 1996 forecast (WAP 12-96) of 1.1 million bags, according to the U.S. agricultural counselor in Caracas. Excessive and protracted rainfall in several key coffee-growing regions limited the size of this year's crop.

THAILAND: RICE PRODUCTION REVISED LOWER

Rice production for 1996/97 is estimated at 13.9 million tons (milled basis), down 500,000 from last month and 3 percent from last season's record crop, according to the U.S. agricultural counselor in Bangkok. Harvested area is estimated at 9.2 million hectares, down slightly from last season. Yield is estimated at 2.29 tons per hectare (paddy basis), down from the 1995/96 record level of 2.36 tons, but slightly above the 5-year average of 2.27 tons.

The U.S. agricultural counselor reported that the 1996 monsoon season started earlier than usual with continuous, heavy rains causing flooding in the lower North and Central Plains. As a consequence, a significant number of farmers in the low-lying lands skipped growing a traditional main crop and switched to the non-photo-period sensitive, high-yielding varieties (NPPS) that proved successful in the 1995/96 crop year--when flooding was more of a problem. Also, the heavy rains in October affected pollination during the flowering stage, causing yields to be lower than normal. In the Northeast, production of fragrant rice declined due to a prolonged dry spell during the planting period (July - August). Farmers who delayed transplanting their crop in September through early-October received lower yields than usual as the nursery plants were too old and the reproductive period was too short. A good crop in the North could not compensate for the reduction in the Northeast. As a result, 1996/97 main-crop planted area and yield dropped from last year.

Abundant water supplies in most of the reservoirs in the Chao Phaya system should allow farmers to expand their planting of the 1996/97 second crop which is likely to be larger than last season. Once again this season, there will be a double, second crop with the first harvest in March/April and the second in June/July. Given the water supply situation, yields should be excellent for both harvests. It is of interest to note that there may be a new cropping pattern emerging designed to avoid flooding and it could possibly expand to other areas. The changing cropping pattern seems to work well in the lower North and Central Plains where farmers are shifting from a long-maturity, photo-sensitive, rainfed main crop to a short-maturity, NPPS, irrigated second crop. This causes less rice to enter the market at the end of the year in December. The cropping pattern in the Upper North and Northeast remains unchanged.

FORMER SOVIET UNION: WEATHER AND CROP DEVELOPMENTS

In February, below-normal precipitation limited moisture recharge in most of Ukraine and parts of the North Caucasus and middle Volga Valley regions in Russia. Winter grain areas in Belarus, the Baltics, and northern Russia received above-normal precipitation. There were two episodes of unusually cold weather in February. The first episode occurred from February 2-7 and the second occurred from February 17-21. In both cases, snow cover provided sufficient protection from significant damage to winter grains. However, some localized damage may have occurred, especially in early-February in Ukraine, where snow cover was variable. On February 22, a warming trend began spreading eastward over most areas, with temperatures rising to well above-normal by month's end. The mild weather caused crops to lose cold hardiness and melted protective snow cover in western and southern areas. However, the lack of snow cover and several days of dry weather in late-February did provide a window of opportunity for early-season fieldwork.

Since early-March, unusually mild weather continued to prevail over winter grains in Ukraine, Russia, Belarus, and the Baltics. The continued mild weather has caused snow cover to diminish in western and southern areas about 1 month earlier than usual. The lack of snow cover in Ukraine, extreme southern Russia, Belarus, and the Baltics along with below-normal precipitation continued to allow early-season fieldwork. Temperatures were high enough in southwestern Ukraine and Moldova to prompt early greening of winter grains.

Source: NOAA/USDA Joint Agricultural Weather Facility

FEATURE COMMODITY ARTICLES

DURUM WHEAT PRODUCTION IN SELECTED COUNTRIES

Durum wheat production for 1996/97 in selected foreign durum-producing countries is estimated at 28.2 million tons, up 6.2 million or 28 percent from last year. Harvested area is estimated at 15.6 million hectares, up 1.41 million from last season while yield is estimated at 1.81 tons per hectare, up 16 percent from 1995/96. The European Union (EU-15), Canada, and the United States account for nearly 60 percent of the global production. Approximately 5 percent of all wheat grown is durum and is produced primarily in the 18 countries discussed below. The 1996/97 crop is forecast to be significantly higher than last year due to increases for the EU-15, Morocco, and Tunisia.

United States: Total U.S. durum wheat production for 1996/97 is estimated at 3.2 million tons, up 13 percent from last season. According to National Agricultural Statistics Service's (NASS) durum harvested area is estimated at 1.4 million hectares, up 6 percent from 1995/96. About 5 percent of all U.S. wheat grown in 1996/97 is durum and over 75 percent of the U.S. durum wheat crop is produced in North Dakota. Cool, wet weather in North Dakota during April and May delayed durum seeding and by late May planting lagged three weeks behind average. Cooler-than-normal temperatures for the fourth consecutive year, with near-normal rainfall, resulted in a below-average yield of 2.20 tons per hectare.

EU-15: Durum wheat output for 1996/97 is estimated at 8.3 million tons, up 2.2 million or 36 percent from 1996/97. Production increases are estimated for most EU member States. Total harvested area is estimated at 3.1 million hectares, up 0.4 million or 13 percent from last season. The rise in durum area is attributed to generous EU subsidies which make it profitable to sow on marginally productive areas, a decrease in set-aside area, and Spain's recovery from drought. After several years of unfavorable weather in Spain, adequate rainfall covered most of the growing region. As a result of this favorable weather, Spain is estimated to produce 1.6 million tons, up 1.3 million tons or over 400 percent from 1995/96. Also, Italy's production is estimated higher at 4.1 million tons, up 0.3 million from last season due to favorable weather and an increase in yield. For the remainder of the EU, growing conditions were generally favorable in the durum-producing regions. Yield is estimated at 2.65 tons per hectare, up 20 percent from last year.

Canada: Production of durum wheat is estimated at 4.7 million tons, up 50,000 or 1 percent from the harvest of a year earlier. Durum area is estimated at 2.1 million hectares, down 1 percent from last season. Untimely rains, cool weather, and a slowly retreating snowcover delayed plantings, while summer weather was variable and early snowfall covered some unharvested summer grains in the field. Yield is estimated to be slightly above the 5-year average.

Argentina: Production of durum wheat is estimated at a record 190,000 tons, up 90,000 or 90 percent from last season based on record area and yield. Weather was favorable this season across the durum-growing areas of southeastern Buenos Aires Province.

Former Soviet Union: Russia and Kazakstan are the primary producers of durum in the countries of the former Soviet Union. Neither country publishes durum area or production estimates; however, Russia's durum production for 1996/97 is estimated at 1.8 million tons, up 150,000 or 9 percent from the last season due to an increase in area. Although a cold spring delayed planting in Russia, warm weather followed allowing rapid spring-grain plantings. Generally, dry weather persisted through the growing season keeping yield below the average of 0.93 tons per hectare, but slightly above the yield of previous season. In Kazakstan, production is estimated at 0.6 million tons, up 20 percent from last season's drought-affected crop although weather was unfavorably dry, but the dryness was less widespread than 1995/96.

India: Durum production for 1996/97 is estimated at 1.8 million tons, down 100,000 from last year. Yield decreased from last season's record due to hot temperatures in February and March of 1996. In addition, marketing problems experienced by farmers in the Punjab last season decreased area since a portion of the durum crop didn't meet the stringent specifications established by the State procurement agency, resulting in lower prices.

Turkey: Durum output for 1996/97 is estimated at 1.5 million tons, up 0.2 million or 15 percent from last year's crop. Favorable rainfall and temperatures increased yield over last year, to 1.67 tons per hectare. Harvested area is estimated at 0.9 million hectares, up 12 percent from last season as farmers responded to higher support prices. The "sunni" insect, which regularly infests the crop, was relatively inactive compared to previous years.

Syria: Durum production for 1996/97 is estimated at 1.4 million tons, up 150,000 or 11 percent from 1995/96. Harvested area is up 50,000 hectares from the previous season and yield is estimated at a record level due to evenly distributed rainfall. Over one-third of the total-wheat area is grown on irrigated land and is increasing due to the drilling of additional wells and implementation of irrigation projects in northeastern Syria. About 30 percent of all wheat grown is durum.

Algeria: The 1996/97 durum crop is estimated at 1.0 million tons, up 100,000 or 11 percent from last year as generally favorable weather occurred in many parts of the durum-growing areas. Harvested area is estimated at 1.1 million hectares, virtually unchanged from 1995/96. Almost 70 percent of the total area sown to wheat is durum, which is primarily located in the eastern and central production areas.

Morocco: The durum output for 1996/97 is estimated at 2.2 million tons, up 1.7 million or 340 percent from the 1995/96 drought-reduced crop. Throughout the growing season, the durum wheat crop received excellent weather which boosted yield to a record 1.83 tons per hectare. Durum area is estimated at 1.2 million hectares, up 50 percent from last season. Slightly less than half the wheat grown in Morocco is durum wheat.

Tunisia: Durum production for 1996/97 is estimated at 1.6 million tons, up 1.2 million or 245 percent from the previous season's poor crop. After two consecutive small crops, the country experienced excellent weather across the grain growing regions--producing a record yield of 1.80 tons per hectare, up 114 percent from 1995/96. Harvested area is estimated at 0.9 million hectares, up 61 percent from 1995/96 and the highest area in 17 years. About three-fourths of all wheat grown is durum and production is centered in the northern regions.

Timothy Rocke, Grains Chairperson
Phone: (202) 720-1572
E-mail: rocke@fas.usda.gov


BRAZIL'S NEW NORTHWEST EXPORT CORRIDOR STIMULATES SOYBEAN PRODUCTION

A Washington D.C.-based Foreign Agricultural Service analyst and the U.S. agricultural attache in Sao Paulo traveled in Brazil's northwestern states of Mato Grosso, Rondonia, and Amazonas during January and February 1997. The team met with government officials, traders, investors, and producers to better understand the current limitations on soybean production in these states. They also studied the effect that a new export route along the Madeira River will have on potential soybean production in Brazil's northwestern states. The itinerary included Rondonopolis, Campo Novo do Parecis, Sapezal, Campos de Julho, in Mato Grosso; Cerejeiras and Porto Velho in Rondonia; and Humaita, Manaus, and Itacoatiara in Amazonas.

Northwest Corridor Overview Brazil is the world's second largest soybean producer with output for 1996/97 estimated at 27.0 million tons. This production level is second only to the United States making Brazil a major competitor in international markets. Moving soybeans to Brazilian ports for export remains expensive and inefficient due to inadequate transportation and storage infrastructure. This impedes Brazil from strengthening its domestic and international marketing of soybeans and products. Investments by a Brazilian private-public partnership are being made in the Northwest Corridor, an area in western Brazil along the Madeira River, and results are already being seen. This new export route, set to open officially in April 1997, will stimulate agricultural production in northwestern Brazil and will provide a new outlet for agricultural exports. Soybean exports from this new export route are expected to reach 300,000 tons for marketing year (MY) 1997, of which 200,000 are already under contract, 600,000 tons for MY 1998, and 1.2 million tons for MY 1999. Soybeans, principally from the northwestern part of the state of Mato Grosso (from the Chapada do Parecis area), currently are being trucked approximately 900 kilometers (560 miles) to the port of Porto Velho in Rondonia state where they are stored or transferred to barges. The beans will then be shipped by barge on the Madeira River to the floating-port facility at Itacoatiara. Itacoatiara is located on the Amazon River about 260 kilometers (160 miles) east of Manaus, the capital of the state of Amazonas. Itacoatiara's floating port has grain storage facilities capable of handling ocean-going vessels. Before the opening of this new export corridor, soybeans for export were trucked to the southern Atlantic ports of Paranagua and Santos, in Parana and Sao Paulo states respectively. Due to the long distance from ports of Paranagua and Santos and the resulting high transportation costs, northwestern states were the most expensive areas in Brazil to produce soybeans. At harvesting, peak transportation costs comprised over 30 percent of the soybeans' market value with costs ranging between $70 and $110 per ton. These high transportation costs put soybean production in northwestern Mato Grosso on the edge of economic viability. Further north in Mato Grosso and Rondonia, soybean production was not profitable.

           TRANSPORTATION COSTS AND DISTANCE TO PORT

                                    Estimated Cost    Distance to   Transportation
             Distance to Paranagua  of Transportation Porto Velho   Cost Reduction
                    (km)                ($/ton)          (km)       ($/ton)

Campo Novo          2,500               70 to 90         1,050         na
  do Parecis
Sapezal             2,550               90 to 95         1,000         25
Campos de Julho     2,600                  110             950         28
Vilhena             2,880                   na             705         32
Carejeiras          3,000                   na             829         40
Cacoal              3,100                   na             477         na
Ariquemes           3,380                   na             198         na

Source: Interviews with trade officials


The shipping cost to southern ports can also be measured in terms of time; it takes 10 days round-trip to drive to Paranagua from Campo Novo do Parecis under the best of conditions, assuming no delays at port and no mishaps on Brazil's poorly-maintained roads. Despite these costs, over 95 percent of the state's farmers shipped their soybeans to these ports by truck. Now, soybeans can be trucked north to the closer barge terminal at Porto Velho at much reduced cost. Estimates of cost reduction vary, but most are around $30 per ton. Trucks should be able to drive from Sapezal to Porto Velho and back in three days, effectively tripling the number of trucks available for transporting soybeans. Currently, trucking costs to Porto Velho are not well known because this is the first season for shipping on the Northwest Corridor; the first soybeans are expected to be shipped in March 1997. To the north and west of Sapezal, on the Chapada do Parecis, soybeans will be exported on the Northwest Corridor, according to field contacts. The eastern side of the Chapada do Parecis and producers further south will continue to export soybeans to the southern ports in Parana.

Soybean Producing Areas in the Northwestern Frontier

Soybeans are grown throughout Brazil; however, the largest concentration is in the southern states of Parana and Rio Grande do Sul, and in the Center-West state of Mato Grosso. Together these three states account for 67 percent of Brazil's soybean production. Potential growing area in northwestern Brazil is difficult to gauge; however, sources claim that 20 million hectares (50 million acres) are arable in this region. Mato Grosso is a relatively new area for soybean production, becoming commercially important in the early 1980's, and its importance is rapidly increasing. In Mato Grosso there are three main producing areas--Rondonopolis, the mid-north (near Diamantino), and the Chapada do Parecis in the northwest. The Chapada do Parecis is a plateau with an elevation of 600 meters (1,970 feet), 50 kilometers wide (30 miles), and extends 400 kilometers (250 miles) into southern Rondonia state on the west. The amount of arable land on this plateau is estimated at over 4 million hectares (10 million acres).

In the near term, the Chapada do Parecis is expected to have enormous production potential, with area expanding 50,000 to 100,000 hectares per year. Currently there are 1.35 million hectares (3 million acres) of soybeans on Mato Grosso's portion of the Chapada, producing 3.35 million tons of soybeans. On Rondonia's portion of the Chapada, there are 15,000 hectares (37,000 acres) in soybeans with a potential of 2.0 million hectares (5 million acres). Grain storage, inputs, and transportation to market are accessible. Technological knowledge of growing soybeans is available through the Mato Grosso Foundation, a public-private partnership.

The natural vegetation of the Chapada do Parecis is cerrado, or tropical savannah, and can be adapted for soybean cultivation. Soils on the Chapada are oxisols, an acidic soil needing corrective applications of lime every three years and fertilizer every year. The extensive use of agrichemicals has boosted average soybean yields on the Chapada to 2.5 tons per hectare (38 bushels/acre), although observed yields were between 3.0 and 4.2 tons/hectare (45 to 62 bushels/acre). Soybean yields are typically lower (2.1 tons/hectare, or 31 bushels/acre) for the first three years after the land has been cleared, and yields increase and stabilize for seven years before declining slightly and stabilizing again. Cost of production averages $380 per hectare, which does not include land clearing costs and liming ($300 per hectare). Currently, the largest soybean farm is 33,000 hectares (81,500 acres) while the average farm in the area around Campo Novo do Parecis is 1,700 hectares (4,200 acres). Soil conservation is widely practiced--no-till planting and contour farming on the pasture land closest to streams. Presently, soybeans are the only crop which is economically feasible to grow. If transportation costs are further reduced, crop diversification will become more feasible with corn, cotton, and sugarcane most likely to be included in rotation. Currently, crop rotation is minimal, although some of the early-soybean varieties (about 20 percent of Mato Grosso's production) are followed in rotation by "milhete", a type of corn with small kernels. Early-soybean varieties planted in this region mature in 109 days, medium varieties in 118 days, and late varieties mature in 128 days.

Average rainfall is over 2,400 millimeters per year (95 inches per year) and falls in a well defined rainy period from October to April, making the Chapada a productive place to grow soybeans. Stem canker and nematodes are a problem and need to be managed to increase yields. Resistant or tolerant varieties to stem canker have been introduced. No-till planting also has reduced the spread of nematodes because the soil is disturbed less than in conventional tilling.

Farmers interviewed in southern Rondonia's portion of the Chapada were enthusiastic about growing soybeans. Average farm size is smaller in southern Rondonia--100 to 200 hectares (250 to 500 acres) compared to 1,700 hectares (4,200 acres) in northwestern Mato Grosso. Before soybeans can be grown in this area the land needs to be cleared, requiring 6 hours per hectare with a tractor; however, farm machinery is in short supply and old. Soils here are more fertile than in northwestern Mato Grosso, but soil erosion may be a problem due to the smaller farm size and lack of capital.

Over the long term, reduced transportation costs are expected to continue to stimulate soybean production in northwestern Brazil, not only for the Chapada but also for the states of Acre, Amazonas, and Roraima. The states of Amazonas and Acre reportedly have approximately 5.0 million hectares (12 million acres) that are arable, but require development. These areas are at a lower elevation. Soils need to be drained and soybean varieties need to be developed which are better-suited to the climate. In addition, there is a lack of grain storage facilities, and roads from Porto Velho to Humaita need considerable investment.

Production potential in the state of Roraima is hard to gauge. Some successful soybean growers of northern Mato Grosso have visited Roraima and assert that there is plentiful savannah-type land within a reasonable distance from the port of Caracarai, located on a river (the Rio Branco) which feeds into the Amazon River. For production to become viable, investment in the infrastructure of Caracarai would have to be made, the Rio Branco would need to be mapped, and the soils in which soybeans would be planted would need to be limed. Soils near the port of Caracarai are similar to soils on the Chapada and this area has a higher elevation. Soybeans would be transhipped through Itacoatiara. Soybeans produced in Roraima would be on a northern hemisphere schedule--planting in May and harvesting in October.

SOYBEAN AREA IN THE NORTHWESTERN FRONTIER
                            (hectares)

State               Region        1996/97    1997/98      Potential

Mato Grosso       Campo Novo      279,500    299,500       459,500
                   do Parecis
Mato Grosso         Sapezal       180,000    200,000       330,000
Mato Grosso     Campos de Julho    75,000     95,000       195,000
Mato Grosso     Other Chapada     800,000    840,000     2,800,000
Rondonia           Vilhena              0      5,000        30,000
Rondonia         Cerejeiras             0      5,000        30,000
Rondonia           Cacoal               0      5,000        40,000
Rondonia          Ariquemes             0      5,000        30,000
Rondonia            Other          15,000     20,000     1,900,000
Amazonas           Humaita              0          0        60,000
Amazonas            Other               0          0     2,400,000
Acre                 --                 0          0     2,500,000
Roraima              --                 0          0            na
Total                --         1,349,500  1,474,500    10,774,500

Source:  Interviews with trade sources

Infrastructure Development at Porto Velho and Porto Itacoatiara

Grain storage, roads, barges, and ports currently are being built to export soybeans from the Northwestern Corridor. Grain storage facilities currently total about 285,000 tons. At Campo Novo do Parecis there is storage of 63,000 tons, at Sapezal--117,000 tons, at Campos de Julho--60,000 tons, and at Porto Velho--45,000 tons. The construction of grain loading facilities at Porto Velho consists of two truck dumpers and a flow through rate of 800 tons/hour.

Starting March 10, 1997, soybeans from Sapezal will be loaded on 2,000 ton barges which have been specifically built for the Madeira River, and shipped 1,115 km (692 miles) to Itacoatiara. The Itacoatiara facility--the floating port on the Amazon River--is about 260 kilometers (160 miles) east of Manaus, the capital of Amazonas state, and 15 kilometers (9 miles) from the mouth of the Madeira River. The barges will move agricultural products (for now only soybeans) on the Madeira River in convoys of 6, approximately 11,400 tons per convoy. Convoys will be transported downstream by pushers and tugboats and tracked by Global Positioning Systems (GPS). Travel time to the port at Itacoatiara is three days. The river is navigable for these convoys 320 days per year. During the rainy season, channel depth is 45 meters (148 feet); however it drops to 10 meters (33 feet) during the dry season, in mid-September. The Madeira River presents many navigation hazards; it is a swift river (6 knots) and is dangerous because of shoals and floating debris such as logs. The river is not currently dredged and the convoys will need to have lateral movement and be able to turn 360 degrees. One concern is that when the convoys are going downstream they will lose mobility because of the strong current. The channels in the river currently are being mapped, using GPS satellite technology to create a digital database of the channels. This also will improve convoy safety and increase speed, allowing four trips per month to Itacoatiara.

Soybeans will be transferred from barges to Itacoatiara's 90,000 ton storage facility. The river depth at the floating port is 40 meters (130 feet) enabling vessels up to 150,000 tons to dock. The loading rate is 1,500 tons per hour from the storage facility; therefore, an oceangoing vessel of 150,000 tons can be easily loaded in under 6 days. The beans will then be shipped down the Amazon River and directly to major markets (e.g., Rotterdam). The first vessel, a cargo of 35,000 tons, is expected to begin loading operations on April 17, 1997.

Robert Tetrault, Regional Analyst
Phone: (202) 690-0140
E-mail: tetrault@fas.usda.gov


BRAZIL SOYBEAN AND ARGENTINA SUMMER GRAIN AND OILSEED TRIP REPORT

Analysts from the Foreign Agricultural Service and the U.S. agricultural attaches' offices in Sao Paulo and Buenos Aires traveled through the summer oilseed and grain areas of Brazil and Argentina to assess the current agricultural situation in February 1997. Field analyses and meetings with industry groups were conducted in Mato Grosso, Rondonia, and Sao Paulo States in Brazil, and in Buenos Aires, Santa Fe, and Cordoba Provinces in Argentina. Based in part on the information obtained, the Brazilian soybean production forecast for 1996/97 was revised by the USDA to a record 27.0 million tons, up 3.3 million from last year. Argentine soybean and corn production forecasts were revised to a record 13.5 and 14.5 million tons, up 0.9 and 3.4 million from 1995/96, respectively.

Brazil: Brazil is forecast to produce a record 27.0 million tons of soybeans from 11.8 million hectares in 1996/97. Yields are forecast at a record level of 2.29 tons per hectare, up 6 percent from 1995/96. Weather throughout most of Brazil has been very beneficial to soybean production in 1996/97 with the exception of Rio Grande do Sul.

Soybeans are grown throughout Brazil, however, the largest concentration is in the southern states of Parana and Rio Grande do Sul, and in the Center-West state of Mato Grosso. Together the three states account for 67 percent of Brazil's soybean production. Parana (25 percent of production) is forecast to produce a record crop due to the highly favorable rainfall throughout the season. Harvest of the early varieties begins in March, and farmers' concerns are for too much rain. Rio Grande do Sul (22 percent of production) experienced dryness early in the season. Rainfall has been normal since and near-average yields are forecast. In Mato Grosso (20 percent of production), weather was very favorable this year. Area is expanding on the Chapada do Parecis which is located in the northwest region. Approximately 20 percent of soybeans in Mato Grosso are lower-yielding, early varieties, bringing down the state's average yield to 2.5 tons per hectare. Farmers indicated that they planted early varieties to take advantage of premium prices at harvest and to avoid trucking bottlenecks.

Brazilian soybean area for 1996/97 is estimated at 11.8 million hectares, up 0.85 million from 1995/96. Area was forecast higher in response to several factors: high international and domestic prices for soybeans and soybean products; the Brazilian Government's debt rescheduling package for farmers; the elimination of the value-added tax ("Imposto sobre Circulacao de Mercadorias e Servicos" -ICMS) on soybean and soybean product exports; and relatively high returns from the marketing year (MY) 1995/96 harvest. Nevertheless, some problems continue for soybean growers due to financial difficulties not addressed by the official debt relief package, especially in the Center-West (in the states of Mato Grosso, Mato Grosso do Sul, and Goias) where farm sizes are much bigger than in southern Brazil, and indebtedness is much higher.

Producers the team interviewed were enthusiastic about no-till planting and the future use of genetically modified (GMO) soybeans. No-till planting is used to conserve soil and limit the spread of cyst nematodes in Mato Grosso, according to farmers. GMO soybeans will be available in Brazil for field testing soon. Multinational investors were reluctant to introduce them without the existence of an enforceable cultivar law which is in progress in the Brazilian Government. GMO soybeans may be commercially available for the 1999/2000 crop. GMO soybeans are expected to facilitate crop management for farmers and lower production costs.

Argentina: Argentine summer-crop production (soybeans, corn, sunflowerseed, and sorghum) is forecast at a record 35.9 million tons, up 4.5 million or 15 percent from 1995/96 production. Weather for all Argentina's summer crops has been mostly beneficial except for a period of dryness in central Santa Fe and Cordoba Provinces and the "Mal de Rio Cuarto" disease which is in some corn areas. Area for all crops increased this year by over 2 million hectares in response to strong international prices. Most of the area expansion came at the expense of pasture. Record soybean, corn, and wheat crops and large sunflowerseed and sorghum crops will severely strain Argentina's grain-handling and exporting infrastructure, according to traders.

Soybean production is estimated at a record 13.5 million tons in 1996/97, up 860,000 tons or 7 percent from 1995/96. Increased area and better yields account for the increase. Area is estimated at a record 6.2 million hectares, up 4 percent from last year. More second-crop soybeans (soybeans following wheat directly in rotation) plus a switch from sunflowers account for the increased area. Yields are estimated at 2.18 tons per hectare, 4 percent lower than the average of 2.25 tons per hectare due to the higher proportion of second-crop soybeans. According to field surveys and traders, second-crop soybeans account for 45 percent of total soybean acreage this year, higher than the 38 percent estimated by the Government of Argentina.

Field travel during early February in central and southern Santa Fe, eastern Cordoba, and northern Buenos Aires Provinces indicated mixed results. In southern Santa Fe and northern Buenos Aires, field conditions are better than average in the fields observed. Yield potential is very high for corn, sorghum, sunflowerseed, and single-crop soybeans. In central Santa Fe, prolonged dryness has damaged soybeans, both second crop and single crop; however, this region is a marginal soybean area with less than 9 percent of total area. Second-crop soybeans were at flowering and will be affected more seriously.

Corn production for 1996/97 is forecast at a record 14.5 million tons, up 3.4 million or 31 percent from 1995/96. Planted area increased 11 percent due to strong international prices at planting (October 1996). Potential yields were above-average in nearly all fields the team surveyed in early February. Corn fields in the areas of Pergamino and Junin, in northern Buenos Aires Province, were in exceptionally good shape. Fertilizer use this year increased dramatically, from less than 30 percent of corn area receiving applications in 1995/96 to over 50 percent. In the prime corn-growing areas, 90 percent of the corn area was fertilized this year, according to field contacts. The dryness in central Santa Fe is expected to minimally impact yield potential for corn because the crucial pollination and most of grainfill stages have past. "Mal de Rio Cuarto" disease is prevalent in northwestern Buenos Aires and southern Cordoba Provinces. The disease is caused by a virus which stunts corn plants and is transmitted by insects. Dryness at planting created favorable conditions for insects. Loss of potential yield is serious for localized fields, but is expected to be between 2 to 5 percent nationally.

Sunflowerseed production for 1996/97 is forecast at 5.4 million tons, down 0.2 million or 4 percent from 1995/96. Planted area decreased 10 percent as sunflower area shifted to corn and single-crop soybeans. Yields are estimated at 1.86 tons per hectare, higher than the 5-year average of 1.70 tons per hectare. Pollination in favorable weather during late December and January and ample soil moisture account for the higher yields. Sunflowers are grown principally in northwestern Buenos Aires, southern Cordoba, and northern La Pampa Provinces. Soils in these areas are lighter and deeper, allowing an extended root zone. For areas in southern Buenos Aires, near Tandil, sunflower area is decreasing because the soils are heavier and prone to water-logging; sclerotinia problems are persistent.

Sorghum production for 1996/97 is forecast at 2.5 million tons, up 0.4 million or 21 percent from last year. Sorghum area increased marginally, less than 3 percent. Yields are forecast at 3.85 tons per hectare, higher than last year and higher than the 5-year average of 3.65 tons per hectare. More sorghum is grown on prime soils in southern Santa Fe and northern Buenos Aires. Sorghum is used in rotation with soybeans to improve the water-holding capacity of the soils. Soybean yields can be boosted by 10 percent when following sorghum in rotation, according to field contacts.

Robert Tetrault, Regional Analyst
Phone: (202) 690-0140
E-mail: tetrault@fas.usda.gov


WORLD CENTRIFUGAL SUGAR PRODUCTION

The estimate for 1996/97 world centrifugal sugar production has been revised to 124.0 million tons (raw value). This is 1 percent below the preliminary forecast released in November 1996 (WAP 11-96), but 1 percent higher than the previous record of 122.5 million tons set in 1995/96. Sugar produced from sugarcane is forecast at 86.9 million tons, up marginally from 1995/96. Sugar processed from sugarbeets is estimated at 37.1 million tons, up 4 percent from last season.

The 1996/97 estimate for India, the world's largest sugar producer, is 15.6 million tons, down 8 percent from the November forecast and down 15 percent from last season's record outturn of 18.3 million. Other major-producing countries with downward revisions in production since November include: Thailand and Pakistan, each down 200,000 tons to 6.3 and 2.6 million, respectively; Russia, down 150,000 tons to 1.75 million; and Ukraine and South Africa, each down 100,000 tons to 2.9 and 2.6 million, respectively.

Partially offsetting the sharp decline in India, the European Union's (EU-15) sugar forecast for 1996/97 has been raised 3 percent since November and 4 percent from last season. Sugar output in Brazil has been increased to an all-time high of 14.65 million tons, up 1 percent from November and 7 percent above the previous record last season. Sugar production in the Central-South and North-Northeast regions of Brazil is forecast at 11.2 and 3.5 million tons, respectively. Other major-producing countries with upward revisions in production since the November forecast include: Poland, up 246,000 tons to 2.4 million; United States, up 95,000 tons to 6.6 million; and Mexico up 100,000 tons to 4.7 million.

MACADAMIA NUT PRODUCTION IN SELECTED COUNTRIES

World macadamia nut production has continued to rise in the late-1990's, as yields from maturing trees increase. Output in seven of the world's leading producing countries is forecast at 64,130 tons (wet-in-shell basis), up 12 percent from 1995/96. Production is forecast to increase in all seven countries with the two largest producing countries, the United States and Australia, forecasting increases of 8 and 18 percent, respectively.

Non-bearing trees account for 42 percent of total macadamia orchard area in six foreign countries, compared to just 5 percent of U.S. macadamia plantations. Most of the new trees are in Australia and Brazil, but South Africa, Guatemala, and Costa Rica also have significant new plantings.

In this article, area and production data are reported on a split-year (July through June) basis for both Northern and Southern Hemisphere producers. The Northern Hemisphere harvest begins in July. In the Southern Hemisphere, macadamia nuts primarily are harvested beginning in February of the second half of the split year. The conversion from wet-in-shell macadamia nuts to shelled nuts is approximately 23 to 25 percent.

Australia: Macadamia nut production is forecast up 18 percent in 1996/97 (harvested March through May 1997), to 23,000 tons, making it the second-largest producing country behind the United States. The 1995/96 crop estimate (WAP 03-96) has been reduced because of heavy rains. Estimates for area planted and harvested for the three most recent years (1994/95 to 1996/97) have been revised upward significantly from last year's report based on new information from the Australian Macadamia Society. The forecasts for 1996/97 for planted and harvested area are 20,200 hectares and 11,500 hectares, respectively, more than double the previous estimates.

Yield per mature tree is 20 to 30 kilograms (wet-in-shell basis), which is similar to the yield obtained in Hawaii. However, average yields in Australia are around 10 to 15 kilograms per tree because many trees are still maturing and the trees do not thrive particularly well in Australia's harsher climate. To remedy this problem, Australian hybrids are being introduced on a trial basis. These trials are designed to select genetic material better suited to Australian conditions. Already, some macadamia nut producers are grafting new varieties onto old rootstock, shortening the time required for trees to begin bearing from 12 years to 6.

Brazil: Macadamia nut production for 1996/97 is forecast at 1,100 tons (harvested February through March 1997), up 5 percent from 1995/96 because of improved weather in the Sao Paulo and Minas Gerais producing areas. The area planted to macadamia nuts for the 1996/97 season is estimated at 6,500 hectares, with approximately 40 percent already in production. Area is expected to increase only marginally over the next 3 years because of minimal government support and limited interest in this type of nut by the Brazilian snack and bakery industries. The state of Espirito Santo, with 2,200 hectares, has the largest amount of area planted to macadamia nuts. Other major producing states are Sao Paulo, with 2,000 hectares; Minas Gerais, with 1,000; Bahia, with 900; and, Rio de Janeiro, with 200.

Costa Rica: For 1996/97, macadamia nut production is forecast to increase 9 percent, to 2,500 tons, because of better crop management. Macadamia nut output in 1995/96 has been revised from the previous estimate of 3,100 tons (WAP 3-96) to 2,300 because heavy rainfall and high humidity during flowering increased the spread of fungi.

During 1995/96, the macadamia nut industry implemented a new pricing system which penalizes producers for delivering poor-quality nuts and pays a premium for high-quality nuts. This new system resulted in better quality nuts arriving at the plants, which increased processing yields and lowered processing costs. The average producer price during 1995/96 was about US$1.10 per kilogram of dry-in-shell nuts. Macadamia nuts are harvested year-round in Costa Rica. However there are two distinct harvest periods. The heaviest off-take occurs between October and December and May through June.

Guatemala: Macadamia nut production in 1996/97 is forecast at 2,400 tons, up 6 percent from last year. The increase is due to additional trees coming into production and higher average yields as trees mature. Nearly 67 percent of Guatemala's macadamia trees are young, non-bearing trees which will mature over the next few years.

Wet-in-shell prices paid to Guatemalan producers vary according to the kernel's humidity level and quality. In 1996, producers received between US$0.99 and US$1.10 per kilogram on a wet-in-shell basis, up from US$0.77 to US$0.88 per kilogram in 1995/96. Macadamia nuts are harvested year-round with peak production from May through August.

Kenya: The forecast for the 1996/97 macadamia nut crop is 5,400 tons, up 10 percent from last season due to additional trees coming into production. However, the projected increase is smaller than the crop's actual production potential because of insufficient rainfall during the growing season.

The bearing area increased 2 percent in 1996/97, to 5,450 hectares; another 650 hectares are planted with immature trees. A shortage of seedlings is the single most constraining factor for macadamia nut farming in Kenya. To meet the demand for seedlings, nurseries are being established throughout the country, even in non-traditional growing areas like western Kenya.

Prices paid to growers have increased significantly--from approximately US$0.21 per kilogram wet-in-shell basis in 1993/94, to US$0.42 to US$0.45 in 1996/97. The rise in prices has resulted in improved orchard management and greater fertilizer use. Normally, macadamia trees indirectly benefit from the fertilizer applied to the coffee trees with which they are intercropped, but are not the primary recipients of the fertilizer. Harvesting of macadamia nuts occurs year-round in Kenya, with the bulk taken off from March through June.

South Africa: Macadamia nut output in 1996/97 (harvested March through May 1997) is forecast up 22 percent, to 4,780 tons, as more trees reach full maturity. With nearly half the trees not yet bearing, production increases in South Africa are projected for the next decade.

As the macadamia nut industry recovered from the 1995/96 drought, there was renewed interest in expanding production and processing facilities. Export prices in 1996 rose because of favorable exchange rates, further heightening interest in the industry.

Since minimum quality standards were implemented in 1994, the Macadamia Nut Growers' Association has been working on the development of a quality seal to be applied to all macadamia products which conform to the standards. Progress has been slow as all producers will have to be incorporated, but implementation is expected soon.

United States: Macadamia nut production for the 1996/97 crop year (July-June) is estimated at a record 24,950 tons, 8 percent above 1995/96. Improved weather, coupled with continuing maturity of younger trees, helped boost yields, despite a slight decline in harvested area due to the abandonment of some marginal orchards. Harvested area is estimated at 7,770 hectares, down from 7,811 hectares in 1995/96. The preliminary grower price for wet-in-shell macadamia nuts in 1996/97 averaged US$1.68 per kilogram (net weight), up 3 percent from 1995/96.

Kelly Kirby Strzelecki, Horticulture Chairperson
Phone: (202) 720-6791
E-mail: strzelecki@fas.usda.gov


                    MACADAMIA NUT PRODUCTION IN SELECTED COUNTRIES
                          (Hectares/Metric tons, wet-in-shell basis)


                               Area Planted   Area Harvested Production

    Australia
      1994/95                    19,600         10,200         18,000
      1995/96                    20,000         11,000         19,500
      1996/97 1/                 20,100         11,500         23,000

    Brazil
      1994/95                     6,000          2,000            950
      1995/96                     6,300          2,480          1,050
      1996/97 1/                  6,500          2,600          1,100

    Costa Rica
      1994/95                     6,600          3,500          2,300
      1995/96                     6,000          4,000          2,300
      1996/97 1/                  6,000          4,000          2,500

    Guatemala
      1994/95                     3,080            950          2,130
      1995/96                     3,200          1,000          2,272
      1996/97 1/                  3,300          1,100          2,400

    Kenya
      1994/95                     5,750          5,100          4,100
      1995/96                     6,050          5,360          4,900
      1996/97 1/                  6,100          5,450          5,400

    South Africa 2/
      1994/95                     4,300          2,150          2,455
      1995/96                     4,500          2,250          3,920
      1996/97 1/                  4,600          2,325          4,780

    United States
      1994/95                     8,175          7,487         23,810
      1995/96                     8,215          7,811         23,130
      1996/97 1/                  8,175          7,770         24,950

    Total
      1994/95                    53,505         31,387         53,745
      1995/96                    54,265         33,901         57,072
      1996/97 1/                 54,775         34,745         64,130

     1/ Preliminary
     2/ Production estimates converted from dry-inshell assuming 12 percent
average moisture.


March 1997     Production Estimates and Crop Assessment Div., FAS, USDA
                                                        

RED MEAT PRODUCTION IN SELECTED COUNTRIES

Red meat production for 1997 in selected countries has been revised to 133.81 million tons, up 4 percent from the October forecast of 128.53 million mainly due to larger-than-expected output in China and the European Union. The production estimate for 1996 has been raised 1 percent, to 132.61 million tons, mainly because of larger output of red meat in Brazil and China.

Cattle Inventories and Beef Production

Cattle numbers were reported at 1.05 billion head at the start of 1997, down 4.22 million from 1996 due to herd reductions in the United States, the European Union, the former Soviet Union, and Argentina. Beef and veal production for 1997 is forecast at 47.73 million tons, up 1 percent from 1996 as production continues to expand in Brazil and China due to strong domestic demand.

Hog Inventories and Pork Production

Hog inventories for the selected countries totaled 777.28 million head at the start of 1997, 8.21 million head below the starting 1996 inventory primarily because of high feed prices in China, Poland, Russia, and the United States. The European Union has recorded the largest growth in inventories due to increased demand for pork because of the Bovine Spongiform Encephalopathy (BSE) problem. Pork production is estimated at 79.10 million tons, up 1 percent from 1996 due to expansion in the European Union and China.

Sheep Inventories and Sheep/Goat Meat Production

Sheep numbers at the start of 1997 in the selected countries were reported at 904.83 million head, up 4 percent from the October forecast and up 1 percent from last year. Growth was greatest in South Africa and Australia where slaughter is down due to herd-rebuilding, and in China where demand remains strong. Sheep and goat meat production for 1997 is forecast at 6.98 million tons, up 3 percent from last year primarily because of significantly larger production in China.

         RED MEAT PRODUCTION, SELECTED COUNTRIES 1/
                                
           (1,000 Metric tons-carcass weight equivalent)

                              1994   1995 2/   1996 3/   1997 4/   1997 5/

    Canada                   2,137     2,209     2,255     2,395     2,376
    Mexico                   2,852     2,934     2,811     2,807     2,808
    United States           19,361    19,820    19,652    20,126    19,593
       NORTH AMERICA        24,350    24,963    24,718    25,328    24,777

    Costa Rica                  94        93        93        92        92
    Dominican Republic          46        48        49        50        50
    El Salvador                 27        27        26        26        26
    Guatemala                   48        50        53        54        54
    Honduras                    45        29        28        29        29
    Nicaragua                   54        50        49        49        49
       CENTRAL AMERICA & 
        CARIBBEAN              314       297       298       300       300

    Argentina                2,682     2,668     2,606     2,555     2,555
    Brazil                   5,850     6,200     6,520     6,730     6,830
    Colombia                   566       604       617       637       637
    Uruguay                    368       344       370       390       390
    Venezuela                  370       347       354       354       354
       SOUTH AMERICA         9,836    10,163    10,467    10,666    10,766

    Austria                    683       653       654       660       660
    Belgium-Luxembourg       1,367     1,422     1,374     1,403     1,415
    Denmark                  1,755     1,702     1,711     1,744     1,762
    France                   3,868     3,941     4,018     4,002     4,015
    Germany                  5,092     5,053     5,090     4,423     5,123
    Greece                     357       362       366       369       369
    Ireland                    753       775       826       812       875
    Italy                    2,618     2,602     2,533     2,540     2,550
    Netherlands              2,276     2,203     2,199     2,050     2,195
    Portugal                   498       437       429       429       429
    Spain                    2,825     2,925     2,895     2,932     2,932
    Sweden                     448       454       457       443       443
    United Kingdom           2,323     2,359     2,053     2,131     2,066
       EUROPEAN UNION       24,863    24,888    24,605    23,938    24,834

    Switzerland                388       398       363       353       353
       WESTERN EUROPE          388       398       363       353       353

    Bulgaria                   423       411       402       356       356
    Czech Republic            1000       973       978      1025      1025
    Hungary                    494       400       690       725       725
    Poland                   1,771     1,988     1,994     1,819     1,827
    Romania                    804       642       667       682       682
       EASTERN EUROPE        4,492     4,414     4,731     4,607     4,615
    Kazakhstan                 894       754       643       460       576
    Russia                   5,659     4,860     4,439     4,260     4,091
    Ukraine                  2,387     2,033     1,882     1,745     1,785
       FORMER SOVIET UNION   8,940     7,647     6,964     6,465     6,452

    Saudi Arabia               227       215       212       213       213
    Turkey                     946       995       975       972       972
       MIDDLE EAST           1,173     1,210     1,187     1,185     1,185

    Egypt                      475       483       513       534       534
    South Africa               715       688       704       733       733
       AFRICA                1,190     1,171     1,217     1,267     1,267

    China                   36,968    42,653    47,000    43,100    48,100
    Hong Kong                  199       187       184       208       180
    India                    1,665     1,852     1,920     1,982     1,982
    Japan                    1,992     1,923     1,821     1,800     1,770
    Korea, Republic of         986     1,013     1,096     1,126     1,126
    Philippines                850       893       946       982       982
    Singapore                   87        85        83        80        80
    Taiwan                   1,209     1,239     1,276     1,281     1,281
       ASIA                 43,956    49,845    54,326    50,559    55,501

    Australia                2,807     2,644     2,597     2,813     2,681
    New Zealand              1,079     1,152     1,135     1,050     1,080
       OCEANIA               3,886     3,796     3,732     3,863     3,761

    TOTAL                  123,388   128,792   132,608   128,531   133,811

    1/ Includes beef, veal, pork, sheep, and goat meat.  2/ Revised.  3/
Estimate.  4/ Forecast October 1996.  5/ Forecast March 1997.
March 1997    Production Estimates and Crop Assessment Division, FAS, USDA

          BEEF AND VEAL PRODUCTION, SELECTED COUNTRIES
                 (1,000 Metric tons-carcass weight equivalent)

                              1994  1995 1/    1996 2/   1997 3/   1997 4/

    Canada                     903       928     1,015     1,120     1,130
    Mexico                   1,810     1,850     1,800     1,800     1,800
    United States           11,194    11,585    11,750    12,032    11,703
       NORTH AMERICA        13,907    14,363    14,565    14,952    14,633

    Costa Rica                  94        93        93        92        92
    Dominican Republic          46        48        49        50        50
    El Salvador                 27        27        26        26        26
    Guatemala                   48        50        53        54        54
    Honduras                    45        29        28        29        29
    Nicaragua                   54        50        49        49        49
      CENTRAL AMERICA & 
       CARRIBEAN               314       297       298       300       300

    Argentina                2,600     2,600     2,550     2,500     2,500
    Brazil                   4,550     4,750     4,960     5,150     5,150
    Colombia                   566       604       617       637       637
    Uruguay                    368       344       370       390       390
    Venezuela                  370       347       354       354       354
       SOUTH AMERICA         8,454     8,645     8,851     9,031     9,031

    Austria                    212       196       190       192       192
    Belgium-Luxembourg         356       365       344       335       345
    Denmark                    190       185       183       184       181
    France                   1,588     1,648     1,673     1,650     1,600
    Germany                  1,447     1,407     1,445     1,380     1,440
    Greece                      83        85        86        88        88
    Ireland                    445       480       530       512       575
    Italy                    1,170     1,181     1,100     1,100     1,110
    Netherlands                603       580       580       490       575
    Portugal                   122       105        94       101       101
    Spain                      478       508       485       500       500
    Sweden                     141       144       142       139       139
    United Kingdom             918       976       712       750       713
       EUROPEAN UNION        7,753     7,860     7,564     7,421     7,559

    Switzerland                142       147       139       138       138
       WESTERN EUROPE          142       147       139       138       138

    Bulgaria                    95        87        94        69        69
    Czech Republic             345       323       318       315       315
    Poland                     405       400       388       415       373
    Romania                    170       150       175       180       180
       EASTERN EUROPE        1,015       960       975       979       937

    Kazakhstan                 642       548       482       385       439
    Russia                   3,240     2,734     2,543     2,400     2,390
    Ukraine                  1,427     1,186     1,079       940       993
       FORMER SOVIET UNION   5,309     4,468     4,104     3,725     3,822

    Saudi Arabia                30        26        20        20        20
    Turkey                     574       623       609       609       609
       MIDDLE EAST             604       649       629       629       629

    Egypt                      392       402       430       450       450
    South Africa               581       542       548       580       580
       AFRICA                  973       944       978     1,030     1,030

    China                    3,270     4,154     4,700     4,700     5,000
    India                    1,050     1,230     1,290     1,345     1,345
    Japan                      602       601       557       570       545
    Korea, Republic of         200       214       231       256       256
    Philippines                135       139       148       157       157
    Taiwan                       5         6         6         6         6
       ASIA                  5,262     6,344     6,932     7,034     7,309

    Australia                1,829     1,717     1,680     1,862     1,730
    New Zealand                566       630       631       587       610
       OCEANIA               2,395     2,347     2,311     2,449     2,340

    TOTAL                   46,128    47,024    47,346    47,688    47,728

    1/ Revised.  2/ Estimate. 3/ Forecast October 1996. 4/ Forecast March 1997
     March 1997      Production Estiamtes and Crop Assessment Div., FAS, USDA

         CATTLE AND BUFFALO INVENTORIES, SELECTED COUNTRIES
                                              (1,000 Head-January 1)

                              1994   1995 1/   1996 2/   1997 3/   1997 4/

    Canada                  12,254    12,849    13,186    13,144    12,767
    Mexico                  30,702    30,191    28,141    27,286    26,900
    United States          100,988   102,755   103,487   102,083   101,209
       NORTH AMERICA       143,944   145,795   144,814   142,513   140,876

    Costa Rica               1,693     1,645     1,585     1,525     1,525
    Dominican Republic       1,983     1,984     1,985     1,986     1,986
    El Salvador              1,312     1,319     1,299     1,287     1,287
    Guatemala                1,762     1,717     1,697     1,667     1,667
    Honduras                 2,286     2,205     2,182     2,152     2,152
    Nicaragua                1,630     1,600     1,650     1,665     1,665
       CENTRAL AMER & 
        CARIBBEAN           10,666    10,470    10,398    10,282    10,282

    Argentina               54,875    54,207    53,569    51,691    51,821
    Brazil                 144,900   148,278   151,544   153,200   153,200
    Colombia                16,614    16,725    16,768    16,852    16,852
    Uruguay                 10,477    10,512    10,436    10,600    10,600
    Venezuela               14,000    14,000    14,216    14,402    14,402
       SOUTH AMERICA       240,866   243,722   246,533   246,745   246,875

    Austria                  2,334     2,328     2,325     2,327     2,327
    Belgium-Luxembourg       3,289     3,365     3,159     3,445     2,709
    Denmark                  2,115     2,082     2,094     2,075     2,075
    France                  20,112    20,524    20,662    20,800    20,700
    Germany                 15,897    15,962    15,890    15,700    15,700
    Greece                     619       624       640       655       655
    Ireland                  6,308     6,410     6,532     6,663     6,757
    Italy                    7,560     7,300     7,100     7,000     6,900
    Netherlands              4,629     4,588     4,557     4,500     4,500
    Portugal                 1,322     1,329     1,316     1,290     1,290
    Spain                    5,017     5,252     5,512     5,660     5,660
    Sweden                   1,826     1,777     1,781     1,770     1,770
    United Kingdom          11,709    11,868    11,619    11,350    11,260
       EUROPEAN UNION       82,737    83,409    83,187    83,235    82,303

    Switzerland              1,745     1,762     1,770     1,780     1,780
       WESTERN EUROPE        1,745     1,762     1,770     1,780     1,780

    Bulgaria                   750       638       632       550       550
    Czech Republic           2,167     2,031     1,989     1,970     1,970
    Poland                   7,270     7,120     7,193     7,250     6,983
    Romania                  3,597     3,565     3,660     3,700     3,700
       EASTERN EUROPE       13,784    13,354    13,474    13,470    13,203

    Kazakhstan               9,347     8,073     6,868     5,015     5,838
    Russia                  48,914    43,296    39,694    36,500    36,000
    Ukraine                 21,607    19,624    17,557    15,800    15,626
       FORMER SOVIET UNION  79,868    70,993    64,119    57,315    57,464

    Turkey                  11,800    11,700    11,700    11,700    11,700
       MIDDLE EAST          11,800    11,700    11,700    11,700    11,700

    Egypt                    5,700     5,873     6,101     6,300     6,300
    South Africa            12,506    12,632    13,334    13,850    13,850
       AFRICA               18,206    18,505    19,435    20,150    20,150

    China                  113,157   123,317   132,058   128,161   137,000
    India                  272,655   274,155   276,105   277,045   277,045
    Japan                    4,990     4,916     4,828     4,800     4,795
    Korea, Republic of       2,814     2,945     3,147     3,463     3,423
    Philippines              4,495     4,570     4,650     4,736     4,736
    Taiwan                     166       164       165       165       165
       ASIA                398,277   410,067   420,953   418,370   427,164

    Australia               25,758    25,736    26,500    26,600    26,750
    New Zealand              8,308     8,712     8,811     9,022     8,930
       OCEANIA              34,066    34,448    35,311    35,622    35,680

    TOTAL                1,035,959 1,044,225 1,051,694 1,041,182 1,047,477

    1/ Revised. 2/ Estimate. 3/ Forecast October 1996. 4/ Forecast March 1997.
     March 1997    Production Estimates and Crop Assessment Div., FAS, USDA
                                        
                                                       
                     SHEEP INVENTORIES, SELECTED COUNTRIES
                                        (1,000 Head-January 1)

                              1994  1995 1/    1996 2/   1997 3/   1997 4/

    United States            9,714     8,886     8,461     8,303     7,937
       NORTH AMERICA         9,714     8,886     8,461     8,303     7,937

    Argentina               23,500    21,626    17,956    17,306    17,306
       SOUTH AMERICA        23,500    21,626    17,956    17,306    17,306

    France 5/               11,505    11,385    11,140    11,390    11,190
    Germany                  2,369     2,340     2,437     2,440     2,440
    Greece                   9,604     9,559     9,386     9,201     9,201
    Ireland                  5,991     5,772     5,583     5,353     5,353
    Italy 5/                11,835    12,070    12,000    12,000    12,000
    Portugal 5/              4,141     4,235     4,239     4,230     4,230
    Spain                   23,872    23,058    21,322    22,100    21,400
    United Kingdom          29,333    29,484    28,797    28,720    28,750
       EUROPEAN UNION       98,650    97,903    94,904    95,434    94,564

    Bulgaria                 4,439     4,193     4,216     4,070     4,070
    Poland                     972       766       608       600       500
    Romania                 12,276    12,119    11,529    11,500    11,500
       EASTERN EUROPE       17,687    17,078    16,353    16,170    16,070

    Kazakhstan 5/           34,208    25,132    19,600    14,200    14,896
    Russia 5/               43,700    34,500    28,336    23,800    23,519
    Ukraine 5/               6,863     5,575     4,080     2,870     2,925
       FORMER SOVIET UNIO   84,771    65,207    52,016    40,870    41,340

    Saudia Arabia            7,257     7,321     7,461     7,578     7,578
    Turkey                  44,000    43,000    42,400    41,800    41,800
       MIDDLE EAST          51,257    50,321    49,861    49,378    49,378

    Egypt                    3,767     3,648     3,491     3,546     3,546
    South Africa 5/         33,800    33,385    35,145    37,310    37,310
       AFRICA               37,567    37,033    38,636    40,856    40,856

    China 5/               217,314   240,528   276,857   264,326   296,000
    India 5/               163,156   164,242   165,384   166,010   166,010
       ASIA                380,470   404,770   442,241   430,336   462,010

    Australia              132,569   123,210   126,320   128,100   128,100
    New Zealand             50,298    50,135    48,816    47,050    47,264
       OCEANIA             182,867   173,345   175,136   175,150   175,364

    TOTAL                  886,483   876,169   895,564   873,803   904,825

    1/ Revised.  2/  Estimate.  3/  Forecast October 1996.  4/ Forecast March
1997.  5/ Includes goats.


       LAMB, MUTTON, GOAT MEAT PRODUCTION, SELECTED COUNTRIES
                     (1,000 Metric tons-carcass weight equivalent)

                              1994   1995 1/   1996 2/   1997 3/   1997 4/

    Mexico                     142       138       137       139       139
    United States              140       130       121       117       113
       NORTH AMERICA           282       268       258       256       252

    Argentina                   82        68        56        55        55
       SOUTH AMERICA            82        68        56        55        55

    France                     154       148       152       152       155
    Germany                     41        42        43        43        43
    Greece                     130       130       131       130       130
    Ireland                     93        89        91        87        87
    Italy                       79        76        78        80        80
    Portugal                    32        27        27        27        27
    Spain                      240       242       230       232       232
    United Kingdom             352       366       346       346       343
       EUROPEAN UNION        1,121     1,120     1,098     1,097     1,097

    Bulgaria                    61        59        57        49        49
    Poland                       8         8         6         4         4
    Romania                     69        71        60        62        62
       EASTERN EUROPE          138       138       123       115       115

    Kazakhstan                 252       206       161        75       137
    Russia                     316       261       217       220       190
    Ukraine                     44        40        36        35        33
       FORMER SOVIET UNION     612       507       414       330       360

    Saudi Arabia               197       189       192       193       193
    Turkey                     372       372       366       363       363
       MIDDLE EAST             569       561       558       556       556

    Egypt                       83        81        83        84        84
    South Africa               134       146       156       153       153
       AFRICA                  217       227       239       237       237

    China                    1,650     2,015     2,300     2,400     2,600
    India                      615       622       630       637       637
       ASIA                  2,265     2,637     2,930     3,037     3,237

    Australia                  634       576       580       603       603
    New Zealand                513       522       504       463       470
       OCEANIA               1,147     1,098     1,084     1,066     1,073

    TOTAL                    6,433     6,624     6,760     6,749     6,982

    1/ Revised.  2/ Estimate.  3/ Forecast October 1996.  4/ Forecast March
1997.
March 1997    Production Estimates and Crop Assessment Div., FAS, USDA

                PORK PRODUCTION, SELECTED COUNTRIES
                 (1,000 Metric tons-carcass weight equivalent)

                             1994   1995 1/   1996 2/   1997 3/   1997 4/

    Canada                  1,234     1,281     1,240     1,275     1,246
    Mexico                    900       954       890       890       895
    United States           8,027     8,097     7,765     7,955     7,751
       NORTH AMERICA       10,161    10,332     9,895    10,120     9,892

    Brazil                  1,300     1,450     1,560     1,580     1,680
       CENTRAL & SO AMERICA 1,300     1,450     1,560     1,580     1,680

    Austria                   471       457       464       468       468
    Belgium-Luxembourg      1,011     1,057     1,030     1,068     1,070
    Denmark                 1,565     1,517     1,528     1,560     1,581
    France                  2,126     2,145     2,193     2,200     2,260
    Germany                 3,604     3,604     3,602     3,000     3,640
    Greece                    144       147       149       151       151
    Ireland                   215       206       205       213       213
    Italy                   1,369     1,345     1,355     1,360     1,360
    Netherlands             1,673     1,623     1,619     1,560     1,620
    Portugal                  344       305       308       301       301
    Spain                   2,107     2,175     2,180     2,200     2,200
    Sweden                    307       310       315       304       304
    United Kingdom          1,053     1,017       995     1,035     1,010
       EUROPEAN UNION      15,989    15,908    15,943    15,420    16,178

    Switzerland               246       251       224       215       215
        WESTERN EUROPE        246       251       224       215       215

    Bulgaria                  267       265       251       238       238
    Czech Republic            655       650       660       710       710
    Hungary                   494       400       690       725       725
    Poland                  1,358     1,580     1,600     1,400     1,450
    Romania                   565       421       432       440       440
       EASTERN EUROPE       3,339     3,316     3,633     3,513     3,563

    Russia                  2,103     1,865     1,679     1,640     1,511
    Ukraine                   916       807       767       770       759
       FORMER SOVIET UNION  3,019     2,672     2,446     2,410     2,270

    China                  32,048    36,484    40,000    36,000    40,500
    Hong Kong                 199       187       184       208       180
    Japan                   1,390     1,322     1,264     1,230     1,225
    Korea, Republic of        786       799       865       870       870
    Philippines               715       754       798       825       825
    Singapore                  87        85        83        80        80
    Taiwan                  1,204     1,233     1,270     1,275     1,275
       ASIA                36,429    40,864    44,464    40,488    44,955

    Australia                 344       351       337       348       348
       OCEANIA                344       351       337       348       348

        TOTAL              70,827    75,144    78,502    74,094    79,101

    1/ Revised. 2/ Estimate. 3/ Forecast October 1996. 4/ Forecast March 1997

    March 1997     Production Estimates and Crop Assessment Div., FAS, USDA


                HOG INVENTORIES, SELECTED COUNTRIES
                                
                       (1,000 Head-January 1)

                             1994   1995 1/   1996 2/   1997 3/   1997 4/

    Canada                 10,851    11,673    12,097    11,800    12,010
    Mexico                 12,083    12,513    11,118    10,218    10,218
    United States          57,904    59,990    58,264    57,350    56,171
       NORTH AMERICA       80,838    84,176    81,479    79,368    78,399

    Brazil                 31,200    31,338    32,497    32,739    32,739
       SOUTH AMERICA       31,200    31,338    32,497    32,739    32,739

    Austria                 3,820     3,729     3,706     3,780     3,780
    Belgium-Luxembourg      6,948     7,060     7,153     7,145     7,345
    Denmark                10,870    10,864    10,709    10,923    11,079
    France                 14,791    14,593    14,524    14,640    14,800
    Germany                26,075    24,698    23,736    22,800    24,500
    Greece                  1,144     1,094     1,070     1,028     1,028
    Ireland                 1,487     1,498     1,542     1,631     1,631
    Italy                   8,348     8,000     7,964     7,900     7,900
    Netherlands            13,991    13,931    13,958    14,000    14,000
    Portugal                2,665     2,416     2,400     2,435     2,435
    Spain                  18,234    18,295    18,600    18,000    18,700
    Sweden                  2,328     2,313     2,330     2,200     2,200
    United Kingdom          7,869     7,879     7,351     7,650     7,600
       EUROPEAN UNION     118,570   116,370   115,043   114,132   116,998

    Switzerland             1,692     1,646     1,425     1,296     1,296
       WESTERN EUROPE       1,692     1,646     1,425     1,296     1,296

    Bulgaria                2,071     1,986     2,140     2,081     2,081
    Czech Republic          4,035     3,862     3,805     4,026     4,026
    Hungary                 5,001     4,356     5,032     5,300     5,300
    Poland                 17,422    19,138    20,343    18,000    17,680
    Romania                 9,262     7,727     7,797     7,850     7,850
       EASTERN EUROPE      37,791    37,069    39,117    37,257    36,937

    Russia                 28,600    24,859    22,600    20,500    19,888
    Ukraine                15,298    13,946    13,144    12,750    12,566
       FORMER SOVIET UNION 43,898    38,805    35,744    33,250    32,454

    China                 393,000   414,619   441,692   408,516   440,000
    Japan                  10,622    10,250     9,900     9,700     9,700
    Korea, Republic of      5,928     5,955     6,461     6,950     6,384
    Philippines             8,227     8,941     9,023     9,078     9,078
    Taiwan                  9,845    10,066    10,510    10,700    10,698
       ASIA               427,622   449,831   477,586   444,944   475,860

    Australia               2,600     2,600     2,600     2,600     2,600
       OCEANIA              2,600     2,600     2,600     2,600     2,600

    TOTAL                 744,211   761,835   785,491   745,586   777,283

    1/ Revised.  2/ Estimate.  3/ Forecast October 1996.  4/ Forecast March
1997.
March 1997   Production Estimates and Crop Assessment Div., FAS, USDA

                                

POULTRY MEAT PRODUCTION IN SELECTED COUNTRIES

Total poultry meat production for 1997 in the selected countries is estimated
at 52.89 million tons, up 6 percent from 1996 due to rising demand and a shift
in consumer preference away from red meat.  Broiler meat production is
expected to reach 36.28 million tons in 1997, up 6 percent from 1996 mainly
due to rising output in Brazil, China, and the United States and potentially
lower grain prices.  Turkey meat production has been trending upward for the
past 4 years.  Output in the selected countries for 1997 is estimated at 4.60
million tons, with the most significant increases anticipated in Brazil, the
European Union, Poland, and the United States. 


        TOTAL POULTRY MEAT PRODUCTION IN SELECTED COUNTRIES 
                          (1,000 Metric tons)
                                
                                  
                              1993   1994  1995 1/ 1996 2/  1997 3/ 1997 4/

   Canada                      741    829    861       891      862     917
   Mexico                    1,422  1,483  1,554     1,590    1,210   1,680
   United States            12,396 13,206 13,786    14,516   15,252  15,285
        NORTH AMERICA       14,559 15,518 16,201    16,997   17,324  17,882  
    
    Guatemala                   85     95    104       110      116     116
    Honduras                    39     40     41        41       41      41
        CENTRAL AMERICA        124    135    145       151      157     157
    
    Argentina                  630    675    700       660      680     680
    Brazil                   3,211  3,491  4,140     4,160    4,510   4,330
    Colombia                   497    514    537       591      633     633
    Venezuela                  350    365    410       406      402     402
        SOUTH AMERICA        4,688  5,045  5,787     5,817    6,225   6,045
    
    Belgium-Luxembourg         196    219    251       264      259     259
    Denmark                    162    172    168       170      175     175
    France                   1,875  1,961  2,083     2,165    2,255   2,230
    Germany                    615    641    655       657      662     662
    Greece                     173    175    178       179      181     181
    Ireland                     88     97    101       105      106     106
    Italy                    1,061  1,084  1,123     1,168    1,158   1,158
    Netherlands                565    594    641       690      669     710
    Portugal                   238    248    235       247      247     247
    Spain                      840    880    910       920      920     920
    United Kingdom           1,244  1,289  1,330     1,372    1,408   1,408
        EUROPEAN UNION       7,057  7,360  7,675     7,937    8,040   8,056
    
    Hungary                    307    320    368       365      370     370
    Poland                     300    345    367       380      390     390
    Romania                    160    135    160       180      200     200
        EASTERN EUROPE         767    800    895       925      960     960
    
    Russia                   1,277  1,068    859       765      780     719
    Ukraine                    362    265    235       212      212     195
        FORMER SOVIET UNION  1,639  1,333  1,094       977      992     914
    
    Israel                     224    242    249       251      256     256
    Kuwait                      18     18     20        22       24      24
    Saudi Arabia               285    286    309       340      438     438
    Turkey                     350    330    390       435      475     475
    United Arab Emirates        16     18     20        21       22      22
        MIDDLE EAST            893    894    988     1,069    1,215   1,215
    
    Egypt                      295    345    360       380      390     390
    South Africa               641    667    736       789      830     830
        AFRICA                 936  1,012  1,096     1,169    1,220   1,220
    
    China                    5,736  7,550  9,347    11,000   12,500  12,500
    Hong Kong                   20     16     94        88       18      90
    Japan                    1,368  1,258  1,282     1,241    1,250   1,240
    Korea, Republic of         369    378    415       425      435     435
    Singapore                   62     57     60        61       62      62
    Taiwan                     585    604    630       655      655     655
    Thailand                   685    740    825       890      915     945
        ASIA                 8,825 10,603 12,653    14,360   15,835  15,927
    
    Australia                  467    498    500       503      510     510
        OCEANIA                467    498    500       503      510     510
    
    TOTAL 5/                39,955 43,198 47,034    49,905   52,478  52,886

    1/ Preliminary.  2/ Estimate.  3/ Forecast August 1996.  4/ Forecast
August 1996.  5/ Total includes 41 countries.

March 1997     Production Estimates and Crop Assessment Div., FAS, USDA



           TURKEY MEAT PRODUCTION IN SELECTED COUNTRIES 
                          (1,000 Metric tons)

    
                               1993   1994   1995 1/ 1996 2/ 1997 3/ 1997 4/
     
    Canada                      128    133    141      144     142       142
    Mexico                        9      9     10       11      10        12
    United States             2,176  2,239  2,299    2,450   2,465     2,521
        NORTH AMERICA         2,313  2,381  2,450    2,605   2,617     2,675
     
    Brazil                       63     80     90      100     110       110
        SOUTH AMERICA            63     80     90      100     110       110
     
    Belgium-Luxembourg            4      4      7        7       7         7
    Denmark                       9      9     10       10      11        11
    France                      532    568    650      665     705       680
    Germany                     169    183    206      215     220       220
    Greece                        3      3      3        3       3         3
    Ireland                      26     30     32       33      34        34
    Italy                       266    269    294      310     310       310
    Netherlands                  30     32     28       27      28        27
    Portugal                     31     31     42       42      42        42
    Spain                        19     13     17       17      18        18
    United Kingdom              252    253    272      280     290       290
        EUROPEAN UNION        1,341  1,395  1,561    1,609   1,668     1,642

    Hungary                      25     24     25       27      28        28
    Poland                       33     34     42       49      55        55
        EASTERN EUROPE           58     58     67       76      83        83
      
    Russia                       35     30     25       22      20        20
        FORMER SOVIET UNION      35     30     25       22      20        20
     
    Israel                       77     86     85       79      76        76
        Middle East              77     86     85       79      76        76

     
    TOTAL 5/                  3,887  4,030  4,278    4,491   4,574     4,606

    1/ Preliminary.  2/ Estimate.  3/ Forecast August 1996.  4/ Forecast March
1997.  5/ Total includes 20 countries.



March 1997           
Production Estimates and Crop Assessment Div., FAS, USDA

EGG PRODUCTION IN SELECTED COUNTRIES

In 1997, egg production in the selected countries--consisting mainly of chicken eggs--is estimated at 733.84 billion eggs, up 5 percent from 1996. Most of the growth in this industry in recent years has been in China where strong economic growth, low grain prices, and rising demand for low-priced protein products is expected to boost egg production in 1997 to a record 385.00 billion eggs, more than half of the world's total egg production.

               EGG PRODUCTION IN SELECTED COUNTRIES 
                             (Million eggs)

                                                               
                             1993   1994  1995 1/  1996 2/     1997 3/ 1997 4/
     
    Canada                  5,689   5,736   5,792    5,835      5,815    5,900
    Mexico                 21,471  25,896  25,760   26,000     21,000   26,500
    United States          72,072  74,136  74,592   76,296     78,600   79,080 

        NORTH AMERICA      99,232 105,768 106,144  108,131    105,415  111,480
     
    Brazil                 12,700  13,460  16,065   16,870     18,220   18,220
    Colombia                6,433   6,357   6,912    7,365      7,760    7,760
        SOUTH AMERICA      19,133  19,817  22,977   24,235     25,980   25,980
     
    Belgium-Luxembourg      3,324   3,600   3,858    3,700      3,600    3,600
    Denmark                 1,405   1,382   1,474    1,500      1,600    1,600
    France                 15,355  16,370  16,911   16,650     16,650   16,960
    Germany                13,678  13,960  13,847   13,700     13,700   13,700
    Greece                  2,540   2,500   2,600    2,650      2,640    2,640
    Ireland                   655     605     610      612        614      614
    Italy                  11,502  11,599  12,017   11,800     11,900   11,900
    Netherlands            10,019  10,306   9,970    9,880     10,100    9,800 
   Portugal                1,787   1,831   1,869     1,872      1,872    1,872
    Spain                   8,454   9,670   9,983    9,984      9,984    9,984
    United Kingdom         10,645  10,620  10,644   10,580     10,565   10,565
        EUROPEAN UNION     79,364  82,443  83,783   82,928     83,535   83,235
     
    Poland                  5,450   6,100   6,500    6,700      6,800    6,800
    Romania                 5,450   3,300   3,650    4,600      5,100    5,100
        EASTERN EUROPE     10,900   9,400  10,150   11,300     11,900   11,900
      
    Russia                 40,300  37,400  33,720   32,000     31,500   31,500
    Ukraine                11,766  10,145   9,500    9,000      9,000    9,000
        FORMER SOVIET UNION
                           52,066  47,545  43,220   41,000     40,500   40,500
     
    Turkey                  8,100   7,900   8,000    8,100      8,150    8,150
        MIDDLE EAST         8,100   7,900   8,000    8,100      8,150    8,150

    China                 235,960 295,800 335,340  360,000    385,000  385,000
    Hong Kong                  23      18      21       22         24       23
    Japan                  43,252  43,047  42,167   42,760     42,500   43,200
    Korea, Republic of      8,196   8,094   8,317    8,565      8,770    8,770
    Taiwan                  5,372   5,673   6,237    6,400      6,700    6,700
    Thailand                7,336   7,530   7,700    8,100      8,600    8,900
        ASIA              300,139 360,162 399,782  425,847    451,594  452,593
     
    TOTAL 5/              568,934 633,035 674,056  701,541    727,074  733,838

    1/ Preliminary.  2/ Estimate.  3/ Forecast August 1996.  4/ Forecast March
1997.  5/ Total includes 28 countries.

March 1997          Production Estimates and Crop Assessment Div., FAS, USDA
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