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Report No. EC-169

fU Copy

This report may not be published nor may it be. quot~d as representing the view of the Bank and ih affiliated organizations. They do not accept responsibility for its accuracy or completeness.

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l~TERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROBLEMS OF FOOD PROCESSING INDUSTRIES

IN DEVELOPING COUNTRIES

May 1969

Economics Department Prepared by: Helen Hughes

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PREFACE

Deapi te the attempt in recent years by many developing countries to. build up heavy indus'~ asa measure to promote indus­trialization, food processing in~ustries still constitute the most important brBllch of manufacturins; in developing countries. The inefficiency frequently i'ound in such industries adversely affects manufacturing productivity in geJlleral; the availability, cost, and nutritional. quality of local food supplies; ~d in some cases the ability to ~and export earning;s.

The low level of e.r.£i(~iency of food processing industries is to a considerable extent the result of conditions external to the industries themselves, i.e., to the difficulties and inefficiencies of agriculture; transport and other infrastructure.

The present paper analyzes the economic problems facing the principal food processin~ industries in developing countries of Asia, Africa, and Latin Americu. The main emphasis is on food processing for local consumption, but the prospects of increased processing for export are examined as well. Separate chapters cover grains; oils and fats; sugar; fruit and vegetables; milk; meat; fish; and soft drinks., beer and distilled liquors. A final chapter considers the general··~lications for econanic policy. . ,

For this report the author has drawn on research conduQted in the field in Southeast Asia while she was a starr member of the Australian National Univ~rs1ty prior to joining the Bank. Research on other areas was based in Washington. The author was assisted in the preparation of the paper by Miss Suzanne M. Snell, and acknowledges helpful comments on drafts of the paper by G.B. Baldwin, D.W.'M. Haynes, G. Kalman off, G. Lovasy, R.T. Shand, and S. Takahashi.

The paper is a product of the continuing research on industry branches carried out in the Economics Department's Economics of Industrialization Division headed by George Kalmanoff. Previous papers issued include Manufacture of Rea: Electrical E ui ment in Davel in Countries (Report No. 100 .. 1 1, May 29, 19 ,and Automotive Industries in Developing Countries (Report No. EC-162, May 31, 19M).

Andrew M. Kamarck Director

Economics Department

T.-AB ........ LE..-.....O_F_C_O_NT.;;.;;E_NT~I! jj

S~ AND CONC WS IONS ................................. ~ ...... * •••••

I. In trodllc ti on .................................... ~ ...... " .. ..

II. Grains •••••••••••••••••••••••••••••••••••••••••••••••••••

A. ru.ce ............................................... ,. ....... .

B. Maize ............ " ••••••••••••••••••••••••••••••••••••

c. Wb.ea t"'.(. '. • • • • • • • • • • • • • • .. • • • • • • • .. • • • .. • • • • • .. • • • • • .. • • • • .. • •

D. Flour P.roducts ................................................ .

E. future P;rospects •••••• " ............................... .

III. Oils 8lld Fats ................................ (l .......... " ••••

IV. St!gar •••••••••••••••••••••• Cl .............................. .

A. Supply of Suga.r Cane 8Jld Sugar Beet ••••••••••• ~ ............................ .

B. Manufacture of Raw Sugar •••••••••••••••••••••••••••••

Sugar Refining •••••••••••••••••••••••••••••••••••••••

D. Ftlt1lre Prospects •••••••• e .............. (I .............. .

v. Frui t,·:; 8lld Vegetables ..................................... . I

VI. ~ .......... II ........................................... .

A. Liquid l'tllk and Other Fresh Milk Products ••••••••••••••••••••••••••••••••••

B. Powdered Milk, Butter, and Cheese ••••••••••••••••••••

c. Carmed Milk ............................................ .

VII. ~ .............................................................. . VIII. Fish .......................................................... . -

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IX. Beverages .... (> ......... " ..................... It ........... It • ., ............... .

A. Soft and Carbonated Drinks ........ ~ • .. • • • • • .. .. • • • • • .. • .. • • 1~~

B. Brewing.. • • • • .. .. • • " • .. .. .. • • .. • .. • .. • • • • .. " • 1\ • .. • • • .. " .. .. • '. • .. .. 1/ • .. 45

c. Dis·til11_ngoO .... • • • • • .... • ,. ,. • ...... ~ " ...... • ..... • .... • .......... (> •• II • .. 45

x. Implications f~t Econam~q, Policl .......... " ................ . 46

NO'lie: The tables l..ls~d In this puper arE~ not intended to be encyclopaedic, but merely to illustrate general trends.. They do not attempt to gi va a complete picture i:oX' each country" al'1d product, and they are only as up-to-datn as recent ini'or.mation in readily accessible internationa.l public"tions to

Table

Table

Table

Table

I-l: Food and Beverage Hanufacturing: Establishmel1ts, \iorkers and Value Added for L~6 Developing Countries and Four Developed COltntries.

II-l: \vheat, Maize and Rlee Production, Supply and Consumption in 35 Dev'elopi:ng Countries, 1961-62~

II ... 2: Rice l\1illing in 22 Developing and Three Developed Countries in 196h.

II-I): Flour 1-lilling in 32 Develop:Lng Countries.

Table III-l: Oils and Fats f'1."oduction, Supply and Consumption in 35 .Developing ~l.lld F'otl.L' Developed Countries ~ 1960-62.

Table III-2: Vegetable Oil Orop Productio1l by Regions, 1966.

Table IV-l: Suga.r Production, Price and Gonsumpt_ion i.n 80 Developing and Four Devt310ped Countries /I

Table

Table

Table

Table

V-l: .Fruit and Vegetable Production, Supply and GooBUmption in 36 Developing and Four Developed CountriE-)s, 196o~2.

V-2: Expo:rt~ of Canned F:t~it and Vegetables by Major Expo.rting C01m't,ries, 1966 ..

V-3: Impo:rts of Oanned Fruit and Vegetables by Major Importing Countr:i.es, 1966 ..

vt-l: Milk P.r eduction, Supply and Cons1llllption ill 36 Developing and Four Developed Countries, 1960-62.

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;' 1 Table VII-l: Meat Production, Supply and 'Jonsumption in 36 Developing

Oountrii!s and Four Developed Countries, 1960-62.

:I'able VllI-l: Fish Production, Supply and Consumption in 36 Developing and Four Developed COlUltries, 1960-62.

SUMMARY AND COI~CI1JSION§

1. Food processing industries are the most important manufacturing subsector in developing, countries, bu't :,theyf are often the least efficient. A substantial improvement in their perfbrma:nce would not only accelerate the growth of manufacturing but also stimula'te agricultural develoJllient and improve nutrition. Growing concern with agricultural perf,onnancis and sane disenchantment with heavy industry make the econanic climate fav'orable for a new emphasis on these industries in many developing countries.

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2. The main problems of food processing industries are the poor quality, irregular supply', and sanetimes high cost of raw materials, and they can only be solved with substantial improvements in agricultl1re, transport and storage. On~ then can f~od processing industries take ,advantage of econanies of scale and by-product utilization which will enable them to manu­facture products of high quality at costs comparable to those in developed countries, and to expand their share of the world"s trade in pro'ceased foods.

3. Grain is the staple food product of developing countries, providing up to 80 percent of food intake, and it is grain niilling whibh reqUires the most urgekt attention. The bulk of grain in developing countries is milled by small mills which operate at a low level of productivity, produce low grade milled products, have low grain recovery, and do not utilize b,y-products. To ensure the max:i.:mum gains fran agriculturAl development, improvements in agrieul tural practice now tat ing place should be linked to investment in transport, storage and in milling itself. Investment in milling is parti­cularlY important in the traditional rice growing areas of South and Southeast Asia where most existing mills are not suitable to the rices grown.

4. The processing of olives and annual vegetabie oil crops is also usually small-scale, shows low productivity, results in low recovery and poor quality products, and fails to use by-products adequately. Large-scale pro­cessing integrated with refining and further oil product manufacture not only promises better perfo~ance in this industry itself~ but also creates some stimulus to the manufacturing of oil products such as soap and margarine J

and the pOSSibility of some shifts in processing fram developed to developing countries, such as those which have already occurred in copra and palm oil extraction. Such changes are again dependent on improvements in agriculture, transport and storage ,as well as on substantial investment in oil processing itself.

5. It is true that many sugar exporters in developing countries currently face a sugar surplus, but sugar is a low cost food. for which demand is rapidly rising in developing countries fran a very low level. A sugar surplus in the

'\\ l' free wo:rld market is likely to be accanpanied by increasing demand for danes-JI tic ally grown sugar in many developing countries in the near futuro. Even II moderate increases in- sugar consumption will require very large investment in

sugar grOwing and a substantial invGstment i.n raw and plantation white sugar manufacturing in some African and ASian countries. If the market is large enough, sugar refining should also be established.

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6. 'Fruit and vegetable processing is unlikely to becane of great importance for local consumption in the near future, but in sane de~eloping countries,l particul~ly in the semi-industrialized ones , it can make a contri­bution~ to export earnings. To canpete successfully with existing developing and develOped producers, new entrants into this field must be sure of high grade, I,-egular and canpetitively priced supplies. They'must be able to employ the latest techniques effectively, £ree from inequitable exchange and fiscal measures, and they must be able to solve the problems of marketing such products internationally.

7. Milk, !'ish and meat production is rising in developing countries am it can be expected to contit!u'e to dp so at an accelerating rate; but, these are high Clost foods, and per capita consUmption is correspondingly low,~\ For most countries the bulk of production will be for local consumption, but in sane cases processed meat or ofish can make a contribution to export earnings as well. Investment requirements for these industries are currently likely to be on a smaller scale than those for grains J oil and sugar processing, but they a.re already conSiderable, and can be expected'to rise in the, future.

S. Cereal food and beverage industries are relatively trouble free. Their need to be close to final consumers gives them a substantial measure of natural'protection, and this has frequently been bolstered by fiscal and, direct protective measures. The expansion of urban cOl'lUmlnities which are influenced by the taste preferences of developed countries guarantees their continued growth. Except :in'V(~ underdeveloped cquntries there is no dearth of entrepreneurs, local and for'eign, and investment funds are fairly readily available fran the entrepreneur\9' own resources, accumulated profits and from existing .financial organizatiQns.

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PROBLEI~JOF FOOD PROCESSING I~U~TRIts .l' DE\lEIDpn~n COUNTRIE$

I. INTRODUCTION

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1. Simple food processing industries have long been established in most developing countries, but they are now changing under the impact of n~w technology and growing with increasing agricul~ural outputs. The more s(~phisticated food industries are developini~ rapidly because purchases of ma.de-up foods fom a high proportion of household expenditure and expand very quickly at low income levels. Food is widely traded internationally and food processing industries can play a...'"1 imp6rtant role in export:l,.

2. The contribution of food processing industries to value added in m~ufacturing in developing countries falls into three phases corresponding t,j the 'jjhree main stages of industrialization. Firstly, in very underdeveloped countries in which industrialization has scarce~ begun, but in which most food processing still takes place i,n the hOllsehold" food processing· industries can con'tribute less than 10 percent to the value added in what 1i ttle manu­facturing exists (Gabon, Table I-I). Secondly, in countries in the process of industrializing, processing industries general~ c9ntribute 20 to 40 per­cent of value added in manufacturing, making them the most important single industrial sector. In countries in which processing is an essential part of commodity exports such as sugar or pineapples, the contribution of food in­dustries to value added in manufacturing rises to more than 70 percent (Dominican Republic and Mauritius, Table I-I). On the other hand the contri­bution of food processing to value added in manufacturing m~ be quite low, 10 to 15 percent, in industrializing count~ies if household food processing is still quite important (Ceylon, India and Pakistan, Table I-I). Thirdly, the proportion of value added by food industries falls to about 20 percent as countries became semi-industrialized, even though food may be important in manufactured eJCPorts (Taiwan, Table I-I). In developed industri~lized countries food manufacturing industries contribut/J about 10 percent to value added in manufactUring (France, Gennany, United Kingdom and United States, Table I-I).

3. The relative importance of food processing industries thus diminishes with industrialization, but in V9r,y underdeveloped countries these industries have yet to grow in relative importance as well as in absolute size, and in most developing countries they have conSiderable potential for growth in absolute tems. They are, in any case, now the most important industrial sector in the developing world. Improving .their productivity will have a marked effect on tota.l industrial productivity, and it could provide reserves of skilled labor, management and capital for further industrial development.

4. This survey is concerned with the principal economic problems the malll food processing industries face in developing countries in ASia, Africa and Latin America, and with their relation to economic policy. It does not cover activities such 'as threshing grain or drying copra, conventional~

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regarded as part of the agricultural process and nonnally carried out o~ farms or estates. It takes by-products into account only to the extent to which. they are an impoTtant factor in a food industr,y1s costs. Food pro­cessing is a factor in food supply and in nutrition, but these aspects are covered only in relation to the economic problems of existing food processing industries.

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II. GRAINS

5. Where sXmpie hoe cultivation and food gathering a~ the basic forms of agriculture and tato, sweet potato, bananas orlsago form the staple diet, and where cassava, sorghum and millets are consumed, there is little indus­trial food processing, but in most developing cOlL~tries rice, maize, or wheat are the principal sources of food (Ta.ble II-l), and most of these grafus are processed off the fam. Rice, maize, and 1tJ'hea.t milling is the main industrial activity in many developing countries. There are more grain mills than any other industrial establisments, and at the peak of the milling season they emplqy more workers than any other industrial activitY4

A. ~

6. Rice is the most important grain in developing cO'Ul'1.triesjl and a strong preference for rice is emerging in Africa and the Pacific. For more than a billion people in developing countries rice is almost the sale daily food. 11

. !

7. Traditionally rice,is handpounded o~ the farm to separate the grain from the bran and husk while keeping the grain as whole as possible, a much simpler process than griri'ding wheat to a flour. Rice milling did not develop until urban and eJq)ort demand for rice became significant. In the nineteenth and early t~entieth centuries mills processing at least 100 tons and some­times more than 250 tons of paddy in a 24-hour day came to dominate milling in the p:yi.1.'M~;!;pe,::r rice exporting countries. These mills f.irst husked the rice and then ·~rem.oved part of the bran and polished it in two -separate operations .. In India and Bur.ma rice was often parboiled before milling to improve its milling and-keeping qualities, and this pr~ctice ~pread to Africa. g(

8~ With the monetization of traditional rice growing areas a demand for rice milling grew in rural centers and small mills began to spread through­out the countryside. Once milling began to supplant the handpounding of rice on fams, small "huller" mills which only remove the husk a:nd part of the bran and do not polish rice, but which can be operated with a capacity of one-half to five tons a day, had a number of "advantages over the large mills" Paddy loses about 50 percent of its volume and 30 to 40 percent of its weight in milling (depending on milling efficiency and the extent to which the rice is polished), so the~ are conSiderable savings :i.ntransport costs with decen­tralized milling. This is so particular~ in b~bsistence far.ming areas and in areas where only a small proportion of the fa.nners. total output is avail .. · able tor sale. Since it is easier to store paddy than milled rice, particularly handpounded or poor~ milled rice which has particles of bran adhering to it, it is also an advantage tor tanners to have their rice milled in small lots as they need it for their own consumption. If they can afford it ~armers also usually preter to have a small aJl10Wlt milled for sale dllring perj.ods of rela­tively high rice prices. For farmers leading a hand-to-mot'lth existenc~ it is

}/ F .A.O., Rice t Grain of Life, Rome 1966.t p. 1 if. gives more detailed figu.res.

y About,O percent of rice 'consumed in India is -parboiled. H.A.B. Parpia, "Food Technology Problems in India al'ld Other Developing Countries", Fooq Technology, Vol. 22, January 1968, p. 63.

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tmportant that transport costs are negligible when they take their rice to be milled in their spare time using their own carts or boats. Payment to the nO.llers is generally a small cash sum, representing five to six percent of the sales value of the milled rice, but sometimes the miller receives only the bran and the husks in p~ent. Both types of payment are canmonly combined. Bran is Bold as animal feed, but husks are largely wasted. Very inefficient old stone mills which husk and remove bran in one operation waste the bran as well because bran with a high husk mixture cannot be fed to animals.

9. In the last twenty years medium-sized mills w;i.th a daily (24-hour) capacity of'IO to 50 tons and up to 100 tons which process rice for the market have tended to displace the ver,y large mills. Medium-sized mills are gene­rally situated in rice district centers and they often own trucks which enable them to collect rice from a much wider area than the small hullers can. They usually collect a fanner's: paddy immediately after harvesting. The small milling fe,e' is less important to these millers than to the. hullers, because medium-sized mills are usually traders in rice in addition to being millers and frequently the suppliers of fanners' credit as well, so the financial alTange­menta between the fanners and the mill cover milling charges, selling prices and the cost of cradi. t •

10. The few very large, eJCPort-onented mills, in the ports were dis-placed in the 1920 r s and 1930 I s by the small and medium mills, and the economic disruption of World War II emphasized this trend. The large, mills were handi­capped by high transport costs and lacked the ~dv.antage of the trading and credi t activities of the smaller mills. In some countries the desire to transfer milling from foreign to national owners led to government <tiscri­mination against the large mills. Fixep 10¥-1 prices for rice and government rice pricing and prooureme~t practices enco~ag~d the small mtlls. They. were also able to evade control and regulation more easily than the large mills.

11. At present thp proportion of the rice ~rop milled varies with loca~ conditions. Handpounding is still common in very poor areas, in outlying rice growing distric~s, and in countries in which it is protected by the government. In Indone:sia where small mills were not permitted until recently on Java, about 80 percedt of the rice /crop is hancipollllded. 1/ In East Pakistan about 15 per­cent is ,handpounded.?J In India, which has-protected, handlJounding, at least 25 percent but possibly up to 50 percent is handpounded. Y In South Korea

11 S. Yamamoto, "Agricult~llrally Rela.ted Industries", in Asian Development ;3a.nk, Asian Agricultural Survey, Vol. II, p. 682; cf r F.A.O., Agriculture ang Industria.lization~ Rane 1961, p. 50, estimate 'that 60 percent of the crop is handpound~d in Ipdonesia. Y~amoto' s figure seems more in keeping w'l th L.A. Mears, Rice Matrketing in the Republic of Indonesia, Djarkata 1961" p. 75, who estimates that 90 percent of rice is handpounded.

Sf F.A.O. Asriculture and Industrialization, Ope cit., p. 50, claims 75 per­cent i~' handpOlUlded in Pak~stan, but this seems too high a ratio for West Pakistan whel"e the us/~ of hullers is substantial.

J! Parpia, op .. cit., p. 63, estimates that 2$ percent was hdlldpounded but F.A.O. !B,riculture and Industrialization, OPe cit., p. ,0, estimates that 5~) percerft w/as handpounded. These are the limits between which estimates generally. range.

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and TaiW&l handpoUllding is negligible, and in Southeast Asial'1 countries only 10 ;to 20 percent of rice is handpounded. 1/ In Africa ha,."l(ipounding is still very canDlon, although hullers or "planters mills" atre ~a:nm.on ;n Western Africa. In Latin America mechanical milling is predanina.nt.

12. The proportion of rice milled in hullers and small nP~lls ~ith a capacity of less than five tons a day varies with local conditions.' In most Asian andA.t'ric~m countries over ,0 percent and often up to 75 percent of rice milling is don~/ in small huller-type: mills" and in small mills wi t,h capaci t.y of les,s than five tons a 24-hour day.

13. Small mills process rice inefficient~. The recov~r o~ rice by , hullers is frequently little more than the 45 to 6b percent averaged for

haxldpounding.. A 60 percent rice recovery rate is high, and 66 percent is exceptional. A high proportion of rice miJJed is broken -- frequently up to 30 percent and sometimes even more -- and this reduces its potential export price. Where the t)snall brokens" fom part of the payment to the miller he is often accused of deliberately raising the proportion of brokens, but the condition~ of Southeast Asian mills suggest/that usuallY he cannot do better with the equipment he uses. Many of these mills still do not use ~~bber rollers, and the throughp~t of most is too small for sorting, cleaning and classifying equipment • The content of impurities .is also high. gj

14. The well-run, modern, medium-sized l1Q.lils reach 68 to 70 percent recover,y and .reduce broken rice to the 5 to rO percent accepted by mills in the United States or Australia, but such efficiency is stl.ll exceptional. The medium sized mills' unit milling costs are also substantially lower", JI But mills in developed countries have a capacity of some 100 to 250 tons a 24-hour day •. They package rice as well as handling it for bulk sales, utilize bran and brokens to manufacture feeds· for sale, and sOO'letimes make rice bran oil. The milling costs of rice are higher than in developing countries because more processing is, involved, hi but the mills' total operations are more prof'itable.

15. The performance of mills in developed countries is matched only by avery small proportion of medium-sized mills and by a few of the v~ry large rice mills operating in the main ripe-gronng countries., The trend towards

II Estimates based on field work in 1965-1967. F .A.O. A,.gr~cul!!ure and Indus­l:' trialj,zation OPe cit. p. 50, estimates -- 1 percent for Thailand, 8 per-~\ cent for Bunna and Vietnam -- seem to be based on go'rernment estimates and \\ are probably unduly low.

/:~l '" ~~/<//

,/ ~~J ?J A. Aten, A. D. Faunce and L. R. Ray, Equipment for the P'rocessing of Rice, F .A.O. Rane 19.53, describes most commonly used rice milling equipment.

JI In the Far East costs of processing a ton of n,ce were estimated at $6 for a simple 250 kg/hr. huller and $2.70 for a medium-sized $10,000 mill. F.A.O. Food and Food PrO!d.ucts Industries, prepared for U.N.I.D.O. Intemational Symposium on Indufstrial Development, Athens, 1967, p. 198

~ F.A.O., Agriculture and Industrialization, OPe cit., p. 53, processing costs in United ~~tates and Australia are $20 and more a ton.

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snall and medium-sized mills has meant that much of the capacity of the large and potentially efficient mills has not been utilized even at the peak of the season, and is now largely obsolete. Sane times the large old mills are in such poor shape technical~ that it is doubtful whether they could be brought into production, let alone operated competi ti vely with new mills.

16. The causes of poor overall milling performance lie in the industry's structure, and this is in tum related to the problems of agricultural output and lack of infrastructure in the rice growing comltries.

11. Excess capacity is the industry's most marked feature. Because rice produc.tion is seasonal i.t is very difficul.t to detennine the capacity of rice mills, but Thailand, Indonesia and the Philippine.s may serve to illustrate the typical situation. In Thailand medium-sized mills operate fran March to May and fr.aD. October to December. They are worked intensively 18 to 24 hours a dq- because they are powered by steam engines fed by riDe nusks. But during January and Febru.ary and fran June to AugllSt these mills; r.aise steam only four times a month, on Buddhist holidays, when farmers are free to ccme to the mill. The Thai gove:mm.ent in 1967 reduced its basis of estimating mill c~aci ty for these mills frcm 180 working days, of 24 hours per year to 100 working days of 24 hours per year because this seemed a more realistic estimate. The hullers, using small diesel engines, operate intermittently throughout the year, sane­times working sanewhat more intensi'Vely (fran early morning to midnight) during the large mills' slack season. 11 18. In Indonesia capacity utilization for medium and large mills was estimated on a basiS of 200 twelve-hour working days a year in the mid-1950's; at this leve~, operation was about 50 percent of capacity. In the Philippines rice mill capacity utilization was estimated at less than one-third in the early 1960's. Y In most traditional rice growing areas there is overcapacity in milling even at the peak of rice deliveries and the. mills operate for less than six months a year. In Australia and the United States they operate for 10 to 11 months (Table 1I-2).

19. Excess capacity affects profitability and hence ne~ investment. The medium and large mills somet~es compete for the farmers' trade by favorable credit, treatment and high prices for paddy to keep the mills in operation and retaim skilled workers , .. but where the goverrment administers prices the oppor­tunities for such competition are limited. From time to time available paddy is shared out among mills. In the State of Selangor in Malaysia, for example, a govemment inquiry recently revealed a well-organized cartel of~ millers in

o which one mill was paid by the others to shut down. Such arrangements, how­ever, usual~ break down after one season if'not during its course.

}/ H. Hughes, Industrialization, in Southeast Asia, in progress.

gj Ibid.

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20. Monopsony is often cited to explain low returns to fanners and high prices to consumers, but there is little evidence to sui>port such accusat~ons. While millers have undoubtedly dealt shrewd~ :Ln farmer credit and trading, rural indebtedness is not of their ma.king. The 't.J".i.de geographic range of the medium and large' mills probably helps to prevent lccal monops'ony~. and tpe large number of mills (Table II-2) suggests that mill operations are generally fair~ competitive except where rural transport is poor.

21. On the whole rice milling is not profitable because a high proportion of mills are not able to utilize sufficient capacity in the course of the year to balance operating costs and income. Most of these millers are nevertheless able and willing to stay in the business because they make a profit on trading in rice and bran or in bran and brokens alone, and they sometimes a.dd to their income by providing farmers with cred~t. They therefore regard rice milling as only a part of their bUSiness, one which up to a point can even be allowed to become a liability since it penuits them to carry on other, more profitable dealings. Thus there is no dearth of new entrants into the industry. This does not mean that the rice mills are very profitable eve;n as trading enter .... prises. Some of the small millers with little rice or bran to trade are as miserably poor as their fanner clients, and it is doubtful whether the large number of milling and trading units allows high profits in any section of the industry. 11 22. Excess capacity and low profits lead to a low ~nvestment rate. The hullers 1 machines are generally loca.lly made and lack precision, while parti­cularly in the traditional ,rice growing areas most of the equipment for the larger mills is out of date. It is often also in poor shape because manage­ment is inefficient. The millers' time is frequently taken up wit.h business dealings, and where governments have taken over mills they have frequent~ run into managerial problems due to the lack of e:xperienced public servants" Maintenance is generally neglected and foreign exchange shortages cause difficulties in obtaining those spare parts which cannot be made locally and thus frequently reduce the e.f'ficiency of new mills. In &Quth and Southeast Asia even the best rice mill perfor.mance is relatively poor because advanced rice milling machinery is designed for Japonica type rice, and it is being used for Indica type rices without appropriate adaptation or adjustment. Even the new well-managed mills bz:uise the rice and have a high proportion of waste"

B. Maize

23. Sene unbroken cooked maize grains are from the cob, but maize is usually first ground into $naIler particles called Ugri'bs ll or into a finer maize semolina or flour. This makes it eaSier to digest and pennits a wider variety of dishe,s to be made. The shelled and dried corll is either ground by hand in the household, or by mills of varying size and B£ficiencYe In Latin America the whole grains are often soaked in lime water or. lYe to soften the hull before, grinding. Sf In countries where maize is eaten as a

11 c.£.F .A.O., Agriculture and Industrialization, op .. citll, p. 51,11 presents a more sanguine view of excess capaci'ty, some of which it regards as "of a transitional nature, having been caused by the spread of nlore advanced 01' larger scale machiner,y before traditional mills have been closed down, or before the establishment of camplementa~ facilities in the for.m of storage or canmunications, which would be needed to make the new mills fully efficient .. !!

gj F.A.O., ~aize and Maize niets, Rcne 1953.

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substitute for rice, grits ground to the. size of rice grains are preferred, but where it is a substitute for wheat, a finer grind is general. These preterenc~s have infiuenced the development of maize milling.

24. &iall mills with a capacity of up to five tons a 24-hour day can make maize into a ground meal for the fanners' aw.n ~se but these mills do not sieve the grain to remove particles of germ or hull. The product, like that of hand grinding, is more nutritious because it includes such particles, but it keeps poorly unless it is heat treated. Equipment to do this is generally not available. Farmers therefore have to have their maize ground in small amounts and are in a similar situation to small rice farmers. Hullers are sometimes used.,for both rice and. maize: in the Philippines about a fifth of all rice mills> can also be used as maize mills. Like the. smallri.ce mills, the small maize mills srattered throughout the cOlUltryside are inefficient, have low recover,y rates and high excess capacity.

25. Good quality maize grits and maiz,e flour carl be!~manuf'actured only by mills which reduce the maize kernel gradually in such" a way that the large particles of the hull and germ remain intact and can be canpletely and easily separated£ran the grain. The mills produce not on~ grits, semolina and flour, but also maize m.eal, bran and germ cake for usein animal feed. Where produc­tion is on a SU£ficient~ large scale, oil is extracted from the bran and genm cake. .Pure starch for use as a food or as ali industrial raw rna terial and glucose are also produced. The variety of the end product mix allows for a considerable range in economic production capacity.

26. In most parts of Asia and Latin America, the econ,amies ot integrated, large scale production are taking maize milling out of the countryside to large district centers and capital cities. Medium and large mills are market prien­ted and frequent~ have fleets of trucks which collect the maize fram the countr.yside. This creates a competitive demand for the individual farmers' out­put. Such mills operate at fairly high rates of capacity for six to eight months of the year and sometimes up to 10 months on a 24-hour basis, and this means econanic rates of retum. New machinery is purchased as it is required. Technical management is specialized and adequate~ deplqyed, resulting in better operat:,lng levels and attention to maintenance.

27. The proportion of harveste~ maize which is milled commercially varies widelY fran country to country and' with local conditions. Very poor farmers in most developing countries and most of the farmers in the very under ... developed countries handgrind. or handpound their maize. Thus handpounding is still general in Eastern and Western Africa, and in parts of Latin America,

{but reliable estimates of the proportions hand processed have not been made. In Latin America the;re j.s quite considerable large-scale direct foreign in­vestment in m.lize millirrg.V The proportion of maize milled in sal1 mills is also relat~d to a coUntry's deve'lopnent. In the Philippines iri 1961 small

'mills constituted about 95 percent of mills specializing in maize milling hut

11 J. R. Moore and F. At. PadOVallC), U.S. Investment in Latin American Food, Processins, New York:, 1967, pp. b .... 9/1 ...... ~

I

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they processed less than 50 percent,of the maize milled. 11 c. \-the at

28. Wheat has been the traditional staple food for North African and North ASian countries; it has becane an important locally-grown food and export crop in Argentina, and wheat flour .is also becaning an increas­ingly important i tam of consumption in most dJveloping countries. This is true even-in the traditional rice growing areas of Asia. Paradoxical~, wbea.t is milled most efficiently in countries where its consumption has only recent1Y became important (Table II-3).

29. In countries where wheat has long been a staple food, t/he structure of wheat milling is similar to rice and com milling. A large number of small country mills cater mainly to the subsistence farmer. In Algeria, ~banon and Turkey such mills account for 20 to 40 percent of milling capacity; in Morocco, Pakistan and United Arab Rebpulic for 60 to 75 percent, and in India and Iran for as much as 80 percent. Y Mat\Y are still stone -grinding rather than roller­grinding mills, have low :recovery and productivity, produce a rough flour and do not use by-products. The very small mills using rollers to grind flour are only slightly better. Bad roads, the lack of storage facilities, price fluc-tuations and credit ties keep them in business.

30. Medium-sized mills with annual capacities of 10,000 tons to 30,000 tons of wheat are typical of district centers and capital centers in tradi­tional wheat-growing countries and exporting countries. North African countries which have imported Boft wheat for e:xpatriate conswnptior~ for many years also hayemills of 10,000 'tons or so annual oapacity. Large mills with capacities of 40,000 tons a year and ranging up to 100,000 tons, have until recentlY generally been found only in wheat e:xporting countries. Teclmioally many of these mills are out of date.

31. Excess capaoity in the sense of total equipment available is as endemic in most traditional wheat growing countries as in rice and maize grold.ng areas It It makes new investment dirricul t and it has led to the neg­lect of depreciation. In recent years this has been aggravated by several other factors. In same countries with balance of p~ents diffioulties it has been difficult to obtain foreign exchange allocations for new plant. In several countries policies aimed at e~ropriating foreign mill owners have made it difficult to keep large mills in running order. Where milling has Calle into the public sector, inexperienced managers often have run plants in­efficientlY and neglected preventive maintenance. In wheat exporting countries the tendency to excess capacity has been exacerbated b.Y the shift at mill~g fran producing to conswning countries.

32. On the other hand countries in. which wheat flour consumption has only become important in th~ last 1, to 20 years have benefited ,trom the shift

11 H; Hughes, op~ cit.

Y F .A.O. Agriculture and Industrializatiqn, Ope ,cit., pp. 45 .. 46. ,

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in the location ot milling. They have contributed to this shift in location by protecting flour milling fran import competition, but the fall in wheat shipnent cost which followed the change fran bag to bulk handling was at least as important.

33. Flour mills in consuming countries can purchase their supplies on an amp~ served world aarket at prices which do not fluctuate greatlY fran. season to season. They can buy uniform wheat of the type they require, eliminating the necessity of adjusting their machines to different wheat types, and can ensure a regular supply throughout the year without storage problems. There is usually ample local or foreign demand for feed and other by-products such as brewery supplies, So the residue fran milling (20 to 30 percent of total weight) is fully utilized.

34. Under these conditions modern mills competitive with those in developed countries can be operated, beginning at outputs of some 60,000 tons a year, the size of smaller mills in developed countr1.eS, but rising to a capaci ty of 150,000 tons and more, which is typical of developed countries. There is therefore a lively and canpetitive market for equipment, and millers in developing countries can purchase flour mills fran leading suppliers, who also install the machines and usually offer good credit facilities. In Thailand, the' Philippines, MalaySia and Singapore construction costs of the mill buildings and other aux:i.liar.r costs have been about the same as in developed countries in the 1960s. The extra costs of skilled foreign super­visory labor were offset by lower local labor costs. Some mills have been established by, or in conjtU1ction with, fonner suppliers of flour from de­veloped countries, and this has eased technical and management problems in the learning years. Tbere has been same over-entr,y into this kind of wheat milling, particularly by former flour exporters hoping to take advantage of protection in developing countries, and in some countries there is therefore excess capacity in this sector of the· industry as well. Bu.t these mills can take advantage of the considerable economies of scale in wheat milling both in investment and in operating costs, 11 and where they canpete with traditional mills they can make substantial intra"'l1larginal profits. This section of the mi.lling indUstry is the most trouble tree in developing oountries, confinning the hypothesis that many of the difficulties of milling stem more fram agricul­tural conditions and fran the lack of roads, storage and other infrast~cture facilities than from difficulties of milling itself. I I

D.' Flour Products

35. Wheat flour is the basiS of bread and bakery produc ts because it alone has the quality of hol~ng air pockets which give the characteristic lightness of 'texture to its products. In many developing countries the demand for bakery products is growing rapidly, but in sane, shop baked bread is a luxu.ry product, and this is even more true of o the Ii bakery .produc,ts. The ,local market is small, ~d rno~t of the manufacturir~g uni tf~ are 'VEJry SInat1 and labor intensive with li'ttle capital equipment. Significant incrJases in the

----------------------~-------11 ,F .A.O., Agriculture Cf1d ,4dustrialization, op.ci t., pp. 46-7.

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market are not in sight and the prospects for exports do not B.ppear to be Vt3ry' hopeful. Developing countries lack skills in this area, the manufacture of quality biscuits and similar products is capital intensive, and the markets of developed countries are general~ p~otected.

I

36. There are sane specialized cereal niarkets in various countries. MacaIioni and similar products. are produced for the local market and for exports in North Africa, but this is an industry which originally catered to European expatriates; it now has a great deal of excess capacity. In the larger,industrializi~ Latin American cOl.Ultries, .local demand f.or scme c~real p~oducts, protected by tariffs and other devices, has became sufficient to encourage the local production of processed cereal foods. Some of the manufacturing enterprises are foreign firms which for.merly exported the finished products to these countries but there are also local entrepreneurs. The markets are small and they have sometimes been fragmented by defensive investment strategies of large foreign firms. The scale of production is small in canparison with simi.lar establishments in developed countries and production costs are accordingly high. In Southeast Asia noodles and similar products are manufactured on a small scale fran rice flour, mainly for the Ipcal market".and a little for export •. There is also a very small export of Cninsse style "bakery products. Some of the North African macaroni manufac­turing is undertaken in conjunction with flour milling and this makes relatively anall mills of an annual output of 10,000 tons of flour economic, but most of the units manufacturing such products both in Africa and in Southeast ASia are small. The expansion of these food proceSSing industries largely depends on the decrease of subsistence agriculture, increaSing urbanization and the growth of per capital incomes. ;

31. Cassava (tapioca) flour is produced for household consumption on a small scale in competition with maize starch, but the uses of both are mainly as industrial raw materials. Thailand is the principal producer of cassava. flour, and most of it,s output is exported. It is doubtful whether 'any of the other cassava producing countries have 'sufficiently low cassava production costs to be able to compete with Thai cassava processers and other pure starch producers. Dried caSsava chips are exported as cattle teed. OtheX' torms of cassava processing are still almost entirely ''undertaken in the household.

E. Future Prospects

38. The grain milling industries are ver,y inefficient and present con­siderable opportunities tor raising productivity_ A substantial improvement in the processing of rice, maize and wheat, and the introduction of mechanized milling ot sorghums and millets, could add, to 10 percent to the available tood supplY ~ as well as have a marked effect on manufacturing actiVity in many developing cawntries, but the obstaoles to such improvement are for.midable.

11 The etfects on nutrition are complex. Better milling generally means a loss of vitamins, but rough milled grains with bran particles have to be processed further b,y heating to have the same keeping qualities as fine milled grains. More importantly,oonsumera show a strong preference tor highly milled grains -- white flour and polished rice - .. over 85 percent extracted flour and brown rice ..

r:

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39. The ver,y underdeveloped countries where grain processing has scarcely begun are in the most urgent need of investmen.t, not only in milling, but also in the provision of an infrastructure which would make milling economic. Preparing maize by handpounding takes two to four hours per d~ per family. The same amount can be processed in 20 minutes in a handmill, and in a small mechanical mill, the time is reduced to a minute or two. In Africa south of the Sahara where handpounding predominates, labor is general~ in short supply, so mechanical milling would be of general value to the economy, and particular~ to agriculture, 11 and would increase the availability of food supply by about 10 percent by increasing recovery frem 45 percent to 55 percent. Although some of the worst aspects of small scale milling can be avoided by careful investment policies and by the integration of agricultural, infrastructure and processing investment, higher recover.y levels cannot be e~ected because the current level of agricultural produc­tion is so low and rural transport so poor that milling will have to remain small-scale for some time. But these countries lack entrepreneurs to set up even small mills, there are no tradi.tional skills to operate them, capital is scarce and there a;re no credit facilities to help small entrepreneurs in the countr.y. The technical problems of commercial milling of millets and sorghums have yet to be solved, but when they are, milling of these g~ains will face the same problems as maize milling.

40. Even in same of the more developed industrializing countries, par-ticular~ in Asia, a mere increase in mechanical milling also offers the most immediate prospects for increasing total productivity and food supply. Sf In a.reas where this is joined to. agricultural policies which promise to increa.se ngricultural outputs but which will require greater inputs of labor, the G,rgument for handpounding on the grotmds that it employs more labor than mecha­nized pounding no longer holds t~le, if indeed, it ever was valid.

41. l{ost of the industrializing countries urgently require an ~prove-ment in existing milling productivity. This means investment in larger, tech­nically efficient mills and a.uxiliary facilities to process by-products. A higher utilization of milling capacity is ne~ded to make the operatiqn of new mills economical, and this depends on an integration of investment programs and policies for agrj.culture, 'bhe infrastructure and milling itself.

11 M.P. Miracle, Maize in Tropical Africa, Madison, Wise., 1966, p. 245, concludes: "Contrary to widely-held assumption, the scope for increasing the prorulctivity of·African farmers through introduction of new on-farm storage techniques is small. Potential p'roductivity gaira~ are large, however, in maize processing, and in m~r areas continuance of the spread of mechanized maize process:l.ng is the imlovation most likely to be achieved in the near future. Although there is much latitude for improving the return from maize by introduction of better seed, superior cultural prac­tices, and wider or gre~ter application of fertilizers, as has been strik­ingly demonstrated by the work of experiment stations in tropical Africa, introd.uction of these measures is obstructed by their costs or lack I)f extension services ~)r lack of understanding of ~frican fanning by extensi0n workers".

gj A.\3. Bhalla, "ChOOSing Techniquesa Handpounding v. Machine-Milling of Rice: An' Indian Case", Oxford Economic Papers, (new series) Vol. 17~ March 1965, pp. 147 -157, con(.:luq,ed that handpounding techniques "yield no'c; only a much lower output but aI:;o ~ lower output at a much higher cost of production" (PI' 1,6) 'i .

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42. To some extent rising yields and outputs in agricultu:t'e, parti-cularly double-cropping in rice growing areas, are in themselves conmlcive to a srdft from the very small country mills to the medium-sized and large district center mills, which can thus work eight to ten months rather than -four to Jix months and which can utilize by-products" Fanners have greater marketable surpluses and less free labor and, if landholdings are large enough and tenant relations sufficientlY equitable, depend less on. merchants and millers for credit. It seasonal price fluctuation~ can also be kept down~ a farmer's preference for eating the grain he himself has gro~l can be expected to disappear in favor at a. higher income. In many developing countries, how­~ver, the lack of transport facilities, particular1..Y all-weather.tX"ltck roads reaching deep in~(~~ the cQuntryaide, and the absence of storage in t.he villagf.~s and district cen~,ers may still impede a move to larger milling uni ts in dis­trict cen~ers .1ih Thailand where fanners' incanes are relatively high, h1.'l.11;.;)rs continue to thrl~e in spite of outright government prohibition because trans­port and storage are not available and there are seasonal price .fltlctuations It

43. Increased conc~ntraJ.iion of milling resulting from more productive agriculture and improved infrastructure facilities could eliminate a great deal of excess milling capacity inmost developing countries • Howevel"~ s(me monop­sony elements would still remain in relatively sparsely-farmed areas; it is unlikely that credit and trading ties can be eliminated overnight., Excessive entry by those who expect returns other than from milling itself would tend to persist. In some countries, some gover.rnnent intervention in the o:rganizat:ton of the industry by regulation or through public ownership may :rema.iJ.'l desirable ..

44. If the framework within which grain milling opera~es can be improved in industrializing countries, the problems of raising the productivity of milling are like~ largely to solve themselves as they have in semi-industrialized and industrialized countries. Investment costs range from abmlt $1.20 1 000 for a medium-sized ribe mill processing ,0 tons a d~ or a medium-sized flour rrall processing some 60,000 tons of wheat a year, to close to $1 million for a modern wheat mill processing sane 200,000 tons of wheat a year and equipped with the most advanced turbo milling equipnent which can extra.ct tl,Qurs high in protein. Sane of these large units m~ require special assistance ~dth financ­ing, and in sane countries foreign exchange shortages are like~'V to be CLi.

impedim.ent to new investment. Grain milling is a relatively simple ma..nU£ac­turing acti vi ty • Problems of m.anagement and milling efficiency tend to lessen with increases in size of milling units in the private enterprise ~ector, and the techniques can be acquired in the public enterprise sec·cor.. 'X'he maintenance and equipment of grain mills is one of the most promising areas for machine manufacturers in developing countries; at present their contribution in indus­trializing cO'Untries is the manufacture of spare parts and the production (jf

machinenr for the inefficient small mills, but with technical assistance fl"l')rl~ developed cO'lUltries they could probably play a more 1m.portM.t role in the maintenance of gra.in mills and, as Salle of the larger countries becvl11c'; more industrialized, in the eqUipment of ' efficient mills.

I \\

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III. OILS AND FATS

45. The developing countries produce about half of the world's supply of oils and a little of the fats, but. consume only a small proportion of either. In most developing cotUltries annual conswnption of oils and fats is less than 10 kilograms per capita, and in the poor ones it is a great deal lower. In developed countries the atmual oil and fat consmnption is at least 20 kilo­grams per c8J?ita, and in countries like Gennany it rises to 26 kilograms (Table III-I). \'ihile such high levels are probably excessive from a health point of view, particularlY in the tropics, a consumption of about 5 grams of oil or fat a day, or la-kilograms per year, is generallY recommended on nutritional groun~. This is more than twice the per capita consumption in most developing countries.

46. To a great extent this low level of consumption is simply a reflec-tion of low per capita incanes. Oils and fats are high cost foods and a substantial increase in their consumption depends on rising incomes. But supply factors are also important. In sane Muslim countries low consumption levels are partly due to :Ghe prohibition of pork, an.d throughout the developing countries the absence of a dair.y industry in the rural economy contributes to the low fat content in diets. The nature of vegetable oitsupplies and the economics of oil processing also contribute to relatively low consumption levels.

47. Vegetable oils, fish oils and animal fats are the source or supply for oils and fats not only for human consumption, but also for soap and chemi­cal manufacture. In total volume vegetable oils are b,y far the most important sources of supply, and of these gro'Wldnut, cpttonseed, copra, and p8lm oil are the principal oils produced in developing countries (Table III-2). There is re­latively little animal fat consumption in developing countries. l'1ost of the fat consumed is pork and chicken fat, and it is processed in the household. The various 'oils and fats are not perfect substitutes. In direct con~umption there are strong preferences in taste which give olive and sesame oil a price premium aver groWldnut oil, and butter a price premium. over margarine. From a production point of view oils and fats are also heterogeneous. Annual crop vegetable oils such as groundnut and cottonseed oil are soft oils which can be substituted in soap and solid cooking fat manufacture for nut oils such as coconut and palm kernels and for hard fats such as palm oil and tallow only wh~n they are ~drogenated, 1/ and this involves a fair~ complex, capital

'c ~atensive manufa.cturing process.

48. In ter.ms of income per unit of land, tree crop oils -- olive, palm and coconut -- generally give better returns than annual crop oils such as groundnut Oil, but substitution is again limited. Cottonseed is a special case be.cause cotton lint rather than cotton oil markets tend to detennine whether cotton is grown. Land -and climate are not equallY suita.ble to all types of tree and annual crop 'lils, although there :i.sconsiderable overlapping

~ Hydrogenation increases the consistency of the oil, that is, raises the melting point by combining hydrogen with unst:l.turated fatty acids.

...

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in suitability among t~e va.rious annual crops, between coconttt and oil palms, a.nd between tree and annual crops. Tree crop oils need much greater initial capi tal investment than annual crop oils and income is foregone while trees a.re maturirJ.g. Processing is somewhat more complex for tree crops. Palm fruit oil (but not the kernel oil) and olive oil have to be extracted within 10 to 12 hours of harvesting to keep down the free fatty acid con~ent of the oil to levels sui table for refining, and coconuts have to be turned into copra ..

49. In Africa palm oil frem wild trees is still processed in t,he house-hold and in small hand mills, but P~\lm oil estates extract Qil. mechanicall~. y In sane cases estates also process slnall gr:6wers' oil from fams around esi:,ates, and in Africa government agencies and co-operatives are prov~ding extraction facilities for small growers.. Palm oLl extraction, however, is generally re­garded as part of estate operations raliher than as manufacturing. Y Cotton­seed qil has to be extracted in areas where cotton is grown because oil is less than 20 percent of the weight of the seed. In Asia there are still many bullock-driven presses to express oil from oil seeds, but most of the oil consumed in developing countries is extracted by power .. d..~ ven crushing mills of one or two ton a day capacity which simply expel the oil mechanically. The oil is filtered', but it is not refined. Sane refineries in urban centers also process oil.

50. The crushing mills generally have simple, equipment, specialized to handle the locally grown crop. Thus even if' they 'work at full ca.ps.ai ty during the harvesting season they are idle for most of the year. Most do not work at full capacity even during the peak of the season because the low capital re­quirement for a crushing mill and the attractions of associated trading actj.vi ties tend to draw more entrepreneurs into the business than fanners can supply. The economics of rural transport favor the small mil.ls, particu­larly where the production is for domestic consumption and the regional market'. The fanners take their crop to the mill in their spare time as they need oil or cash, and p~ a small milling fee. Most of the, oil production in this way is consumed domestically and it is not refined.

51. In developed countries mills processing at least 30 tons of' ~eeds and frequently ~OO tons of seeds a day pro~uce the bulk of oil., Importing most of their ::raw materials, they are able to ensure a continuous ra.w materia.l supply throughout the year. Whereas simple mechanical extraction lea~es 12 to 1.5 percent oil content in the residual oil cake, pressure and solvent ex­traction leaves on~ 6 to 9 percent. Using high pressure mechanical expelling and solvent extraction means not only better oil recovery, but more complex equipment which can handle a variety of'crops; mills can transter fram one raw

!I OECD, Manual of Industrial Pro "ect Ana to Volume I, Industrial Pro£iles j p. 12 palm 0:1.1 extraction.

in Develonin, Oountries, Annex , gi vea a brj.e£ at;:count of

g( r.A.D., Agricultural Development in Nigeria 1965~1980, Rome 1966, p~ 272 argues that the introduction of modern machiner,y would double the oil yield fran existing palm. harvests. In Southeast Asia, however, palm oil is generallY processed on estates~

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material to another according to availability and price. Oil cak~ is an I

important by-produc't because of its valu..e as cattle feed. The bulk of the demand for i'b has in the past been in developed countries and this has been an important factor in locating oil crushing in developed c01mtries.

52., Oil refining reduces the fa.tty acid content of bil to about 0.10 percent, deodorises and bleaches the oil. It is generally integrated with oil extr-action in developed countries. The capital intensiveness and com­plexity of refining usually make it worthwhile to carr.y on processing of a variety of oil products, industrial as well as edible, ru1d this enables by­products to be fully uti.lized. While the capi t,al investment in such an enterprise is considerable, the full use of capital equipmen'c and raw materials, and the spreading of overhead over a complex series of process, make for low unit crushing, refining ruld further processj~g costs.

5). Traditionally oil crops were relatively' cheap to transport and the advantages of large-scale integrated extraction, refining and oil product manufacture close to markets offset the higher cost of transporting the raw material. Copra and other oil crop crushing and associated refining neverthe ... less grew in same developing count~ies -- Indonesia, Singapore, Ceylon and the Philippines -- to serve local dema.n.d for soap, margarine or vanaspati (vegetable ghee) in the 1920's and 1930's. 11 In the 1950 7s the introduction of bulk oil transport encouraged the development of oil crushing and extraction for export. Growing demand for oil cake in developed countries frequently made it more profitable to sell oil and cake to separa.te marke·ts. Growin.g local demand for oil and oil products in developing countries encouraged this trend, but the tariffs of developed countries discouraged it by favoring oil seed. Such de­velopments have, however, been limited, and oil extractiion remains predOOli­nantly in developed countries while oil extraction in developing countries continues to be small scale and inefficient.

54. Rice bran is frequently rega.rded as an e~~lly exploitable source of edible oil in developing countries, but the prospects for establishing a rice

,bran oil industr,y, particularly' in the traditional rice growing countries, must be viewed in the context of limited local demand and of the difficulties rice bran manufacturing pr(~sents in developing countries.

55. Rice bran contains 4 to 30 percent edible oil.., or an average of 16 to 20 percent for good quality bran from unboiled rice; 95 percent of the oil can be reco'Vered by solvent extraction. Bran is a more valuable animal feel after oil extraction because animals fed on it do not run to fat. But rice bran is high~ unstable and either has to be used immediate~ or arti­.ficially stabilized. For thifJ reason it is otten wasted or used immediately as rather poor quality ~al feed.

11 C. Ieubuscher, The Processin of Colonial Raw Materials j A .S'tudy in Loca­~, London 19 1, 9hapter II: "The Processing of Copra, Oil Palm Pro­d'Q,cts ,and Groundnutsrt, provides a histol"icG\.l background to oil processing in developing cowltries.

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5q. Rice ~ran oil extraction is at present carried on by small plants wi th daily capacities of about 25 tons and some of 50 tons in Bunna:) Thailand and India. In Japan and the United States 100 tons a day is the minimum. But even at small capacities dbtaining fresh bran supplie~ is a problem, and the oil produced often tastes rancid and is regarded as p~or quality in comparison with competing coconut oil, other oils, and lard. '

57. Growth in the rice bran oil industr,y in developing countries cannot be achie,ted vrithout ensuring a regular supply of fresh or stabilized bra.n. The dispersion and small a~ale of rice milling makes this very difficult~ It was estimated in 1967 that in the central plain of Thailand bran production varied between 0., tons and 6 tons of bran per rice mill per day. It would have taken suppli,es, frcm 25 to 40 mills to keep one lOO-ton bran oil plant supplied, and the difficulties of transport would have m.eant that most, of the bran would have been rancid on arrival at the plant. 1/ The outputs quoted here are for the peak harvesting peri od from January to March when serne 40 percent of annual rice deliveries were made. The quantities of brari available for the rest of the yea.r wCltld have been much smaller ..

58. In these circumstances rice bran clear~y must be stabilized if the oil' is to b~ extracted. In 1967 the breakeven point for a bren stabilization plant in Thailand was 12., tons of bran a day but unit costs fell steeply with output, so that units cost of stabilizing 100 tons a day ~~e ahnost half those of stabilizing 12.5 tons a day. g(

59. Assuming that high quality bran will equal about 6 percent of the paddy weight, a rice mill processing 200 t0ns a day would produ.ce sufficient bran to run an economic bran stabilization unit under conditions cammon in traditional rice-growing countries. About eight such mills would be needed to keep a 100 - ton bran oil plant operating at a.w one time. If nrill output varied with seasons an even larger number would be required to keep a 100 - ton bran oil plant operating throughout the year.

60. The obstacles to the development of a rice bran oil industry are therefore very considerable. Projections of the availability of rice bran based on percentages of total rice milled make a yery unrealistic b.asis for the establishment of the industry. An increase in the size of rice milling units,and a lengthening of their rice milling season, are prerequisites for rice bran production, and even then milling should be confined to large centers 1£ bran oil is to be price-canpetitive with other~ oils. Maize growing countries f.a.ce Similar scale probl~ms in developing maize oil extraction ...

61. The productivity of oil milling and the availability of edible and other oils coul.d be substantially improved by replacing small simple crushing mills by larger scale pressure crushing and Bolve:nt extraction plants, but as in the re'organization of grajp milling this requires changes in agricultural productivity and an improved infrastructure as m'U.ch as cha.nges in milling itself. With greater concentration of oil extrao:tion, oil refining becomes m.ore econemic, and this influences the cost of pJ;ioduction of associated

11 For Thailand see Applied Scientific Research Corporation, W~C.J. Hermans, Prelimina;t Stugy or the Economic Feasibilitl of Stabilization of Rice Bran in Relation to Rice Bran Oil Production in Ihailand, Bangkok, 19~7 (mimeographed)_

Y Ibid.

products such as margarine, vanaspati, i\oap and detergents, glycerine and industrial chemicals. In some developi*g countries these industries are alread;y' being established, although still on a small scale.

62. nle scope for pushing back oil seed crushing fram developed to the developing countries which grow the seeds is already being exploited by some countries. 11 But although bulk oil transport has stimulated this trend, the saving in transport cost can easily be offset by high costs of small scale or inefficiently operated crushing. In any case, the value added in production by crushing is small, usually 5 to 10 percent of the cost of raw material. Developing countries frequently have to give local processing some fom of protection, and find exporting difficult. The integration of crushing with refining and further manufacturing is cost saving and offers greater increases in value added in an export oriented industry, but the problems of moving this entire sector of industry back to the seed producing countries are much more fonnidable than the ben.efits. Y The possibilities are probably best in semi-industrialized countries. In ver,y underdeveloped countries the lack of industrial experience and the absence of local markets for oil industr,y products is likely to offset the advantages of raw material availability, law labor cost and transport cost differentials.

F.A.O. The Economic As ects of the Location of Oilseed Crushing Iridustries, (mimographed 19 , concluded that oilseed crusn;:tng industries could compete interna::,ionally from developing countries provided international standards of efficiency were met in \production 'and auxiliary services such as transport and port handline wex'e adequate. This, however, is B, ccmaiderable proviso.

Y The discovery that aflatoxin, a fungal chemical which sanetimes con'ba­ml\!a.tes groundnut cake, causes liver cancer in animals is making it' difficult for deve~oping countries to sell cak~ to developed countr~e~ beoause they cannot usually provide certificates of non-contamination. ~'l1s may add to the increaSing pressure to sell cake locally and hence S~imulate cl:"Ush~ng in de.veloping oountries. '

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IV. SUGAR

A. s-6.Wly of Sugar Cane aild Sugar Beet

63. . I The. world pr6duction of centrifugal sugar increased from f~ome 50 million tons in the late 1950 1 8 to 64 million tons in 1966. 11 There is still Bame household processing of palm sugar in Africa and ASia and in

. mAny Asian CL'nd Latin American countries various types of pan-boiled sugar - .... jaggery, ka1jyanga, muscovado and polena -- are still produced, but the bulk of manufact,ired sugar is centrifugal sugar. 2/

. I,: -

64. C'ane sugar accounted for 57 percent of the total production of centrifugal sugar in 1966; it was mainly produced in developing countries. Australia, South Africa and the United States are the I only developed cane sugar gZ'o1;rers of importance. !1ost of the world's beet sugar, on the other hand, is produced in developed countries, although sane is grown in North African and Asian countries, and some in Chile and Uruguay in Latin America ..

65'~ . In high incane countries per capita con~ption rises to over 50 kilograms a year; these countries consume the bull( of sugar. The principal sugar exporting developing countries generally have low retail prices for' sugar, and their ,sugar consumption is therefore relatively high.. Annual per capita sugar consumption is o·therwise low in developing countries, particularly in those where retail prices are high. In verJ underdevelope.d countries it is below 10 kilograms, and in industrializing countries which are not exporters it is generally betwe~n 10 and 201dlograms (Ta.ble IV -1) •

66. Only a little more than a quarter of the world I s sugar is traded internationally. The developed countries are the pri.ncipal importers and the tropical, c~ane sugar growing, developing countries are the principal exporters. For some 0:£ these sugar is of overwhelming importance as an export crop, and for many others it makes a significant contribution to export· incane. JI

11 Interzultional Sugar COlUlci1, Sugar Year Book, 1966.

y Noh-ce11trifugal sugar is only important in total consumption in India and in the other countries of South and Southea.st A~ia, and its share is de­clining. In these countries, however, per capita centrifugal sugar con­sumptic)n. figures understate total consumption, although India is probably the only country in which the consumption of non-centrifugal sugar exceeds tha t o;r· centrifugal sugar.

JI For a detailed statement of the curr'ent world market si t",ation see G. Lovasy, r Problans on the International Sugar Market and Suggested Solutions, December 1968, IBRD Economics Department Working Paper No. 30, and G. Lovasy, ~ au ar Gonference 1968: Main Features of the A reement Ado ted, December 19 ,:IBRD Econanics Department Working Paper No • .31.

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67. The market for sugar is extremely complex. Most developed countries protect their beet growers by tariffs or import quotas, and same also impose excise taxes~ About 60 percent of internationally traded sugar is sold under long-ter.m price and volume agreements, so the free world price of sugar is determined by about 12 percent of the to·tal market. This portion of the market I is influenced by East European sugar exports whose p)?ices are even less realistically related to production cost than for most sugar exports. The free world market price is therefore not. a satisfactory indicator of market forces.

68. Variations in reta.il sugar prices from country to country give on~ a ver,y rough indication of the spread of production costs, because of the distortions intrOduced by artificially high domestic prices, taxes and conversion into United States currency (Table IV-l).

69. Conditions of sugar growing vary~o much from co.:tmtry to country that it is not possible to generalize about the;relative cost of produoing cane and beet sugar. The direct costs of sugar production appear to be lowest when sugar cane is grown on an island or in an irrigated sub-tr9pical climate, that is, in hot conditions without excessive cloud cover, but such conditions are limited, and under less favorable conditions the costs of producing sugar from cane can be higher, than tllose fran beet. 11 70. Beet is a ha.ppier agricultural crop than cane. It can be grown on relative~ small blocks of land and still be farmed mechanical~ because mechanization,?f growing and h~rvesting is not very capital intensive. It is a good rotation, crop which integrates well with cattle feeding. On the other hand, the mechanization of sugar cane growing is extremely capital intensive and therefore requires large-scale farming. Only if wages are ver,y low can labor intensive cane growing compete with mechanized growing. Sugar cane is a very soil-hungry crop and bagasse is not as useful a by­produ~t as beet tops. Its growing season is up to 18 months., and sever~l crops can be taken from one planting, but this makes rotation with other crops such as rice difficult, and an alternative rotation with pasture for be:3f fattening has not yet been proVen feasible 0 Thus, sugar cane grow:'.ng has many of the characteristic- difficulties of monoculture-. I

B. Manufacture of ~aW' Sugar

71.. Sugar beet and sugar cane have to be processed immedia.tely after harvesting. Otherwise the sugar becomes 11 invert 11 sugar which does not cry~tallize a.nd. is less suitable for refining, and§both beet andicane r~pidly lose sane of their sugar content if they are not processed quickly.

11 R.Hiller, Beet Sugar and Cane Sugar, Paris, 196" makes this point but somewhat overstate~ the case for beet sugar. The relative cost of pro­ducing sugar from beet has fallen substantial~ since World War· II, and it is one of the reasons acco1.Ulting for inCreaEJing sugar self sufficiency in tymperate countries.

I

..

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72. The ix;d tial processing differs bet.vreen cane and beet. Beets are washed, disinfe(~ted, cut up by relatively simple machines, and then conveyed to a diffusion ~atter.1 or continuous diffuser for juice extraction. ~he extraction of sugar fran cane is more complex and capital intensive, md requilres more power. Cane is; cu.t and shredded by heavy revolving lmives and the juice is extracted in a train of mills generally consinting of two crusher units and four to six units of three roller mills. !"iechanically harvested cane andj hand cut burnt cane also has to be cleaned before crushing, a process m':.>re com:~le:x and costl:! than sngar beet washing.

73. The shortness of the beet harvesting season, which lasts six to eight weeks, offsets the relatively low cost of tnitial beet processinge Under the most favorable condi tiona cane can be cut throughout the year, and even in relatively unfavorable growing conditions the harvesting season is generally at least 12 weeks. .

74. The further manufacture of raw sugar trom the heavy juice is much the eame for cane and beet, with local differences reflecting technological experience and preferences rather than differences in raw material. The juice is first clarified, then boiled and passed thrbUgh centrifuges to produce raw sugar. Because of the short duration of the beet harvest season, some advances have been made in beet sugar juice stora.ge; the sugar loss which still occurs is offset by the longer manufacturing season.

75. The replacement of open pcin boiling by vacuUrr1 pans and the invention of the centrifugal machine transfonned the manufacture of raw sugar in the nineteenth century and began to make economies of scale important. The advan­tages of scale were intensified with every improvement in the manufacturing process, and there has therefore been a continuous tendency, particularly marked in the 1950's, towards the rationalization of sugar manufacture. .An output of sane 50,000 tons of raw sugar a year is generally regarded as the minimum for efficient operation in manufacturing raw sugar from cane. The shortness of the beet season, averaging arOUlld 50 days per season compared to at least 100 days for a cane season for one sugar mill, creates a much more pressing economies of scale problem in beet than in cane sugar manufacturing. Some of the most efficient manufacturing units process some 5,000 tons of sugar cane a day and at least 500,000 tons of.sugar cane a year.

76. The desirability of large-scale milling runs co,mter to the need for minimum delay in processtng the harveeted beet and cane. Costs of raw sugar have accordinglY become increasingly dependent on transport between field and mill., on yields per acre and sugar content, and on the length of the harvesting season.

77. Except in some of the traditional sugar exporting countries, sugar mills in the developing countries have acute s'Upply problems arising fran poor agricultural practice and inadequate transport facilities. In same caseS these have been aggravated by poor pricing policies. Small growers t agricul­tural practice is not sufficiently advanced to allow efficient laX'ge-scale manufacturtng, but not even all large plantat~.onB ~''''!~ eff;tcient. Many plan­tation based mills have the same supply problems asthE:",u .... ::_.~~sed on snall grower supplies. Even medium-sized sugar mills processing 2,000 tons of sugar cane a day have irregular deliveries, long de~ays between the field and a.rrival

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at the factory, and low sugar yields. Many work at less than full capacity even at the peak of the harvesting season, and 50 percent utilization of capacity is not uncanmon. As a rule, large mills can only be operated in de­veloping countries in conjunction with large scale plantation sugar growing"

78. In many developing countries sugar mills are technically ineffi-cient. Sane of the traditional exporters have never recovered fram the 1930's slump in sugar prices, so most of their mills pre-date this period and they have never had a substantial re-investment program. 11 In some producing countries whole regions, such as the northeast of Brazil; have lacked renewal for many years. y Sane of the very new producers, on the other hand, lack managerial experience. This has been particularly true in new mills established by governments, and it has also been true to sane extent of mills taken over by the government in some countries. Some public enterprise sugar mills on the other hand operate very efficient13'. Mills in some countries have had difticul ties in obtaining maj or spare parts. In some cas(;)s efforts to economize on the capital cost of mills by ordering equipment, such as the feeding rollers for the cane crushers, from local foundries have been success­ful but in otherS they have led to inefficient operation.

79. There are same opportunities for replacing capital by labor, for example in unloading cane and feeding it to the crushers, but they are not always economic. A tendency to employ labor instead of capital equipn1ent has led to re~ative~ high employment per ton of. sugar processed; it tends to be unnecessarily high in countries where overall unemployment is a problem. The shortness of the milling season and the situation of mills in rural areas, on the other hruld, has made it difficult to retain skilled labor and management. This has contributed to poor maintenance and low standards of operation.

80. The by-products of raw sugar manufacture are molasses (the reSidual syrup), bagasse, the exhausted cane fibre, and filter cake. Molasses foms the basis of rum production in some sugar growing countries, and rum is the principal product of some of the small sugar mills, particularly' in the Caribbean. Until the development of petro-chemical industries, industrial alcohol was made fram molasses but this is no longer economic on a small scale and potable alcohol is the main molasses product in developing countrles. Yeast can also be made fran. molasses, but markets are limited for this alld other molasses food products. Same molasses is also used as fertilizer. In countries with low standards of living the marketing of brown sugar ~th a high mol~sses content at low prices might be the best use of molasses if consumers will accept it.

81. Bagasse is gener~ Uy used as fuel in sugar mills, and whe~ no al ter-native fuel is readi~ and cheaplY available or where balance of p~ent difficul­ties\ make fuel imports difficult, this i.s undoubtedly its best use. Unle'ss mills are extremely efficient there is usually 11 ttle SUllllus bagasse. li'l

11 Of the 55 centrifugal sugar mills in operation in Indonesia in 1963, 48 were erected before 1914, .five between 1914 and 1929, and two between 1942 and 1963. From Nug~oho, Indonesia"'Fact~ and Figures, Djakarta, (mimeographed) 1967, p. 276. ~

,. gj, H. W. Hutchison, "Value Orientations and Northeast Brazilian Agro-Industrial 1-1qdernization", Inter-American Economic Affairs, Vol. 21, Spring 1968, p. 73.

;

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sane countries bagasse is used for pulp and paper production, but its short fibers make it unsuitable for strong papers, and the seasonality of supply makes it an unsatisfactory raw material! for a non-seasonal industry. Bagasse mixed; with molasses has been tried as an animal feed product but it is not particularly success.ful and is little used. Where a large and con­tinuous supply is available, wall board can be madie fran bagasse, but this usuallY also requires other cellulosic materials to enable a factory to operate for the whole year without undue storage costs.

82. Filter cake is generally used as fertilizer or animal feed. If produced on a sufficiently large scale the extraction of hard waxes becomes profitable.

83. In general the utilization of by-products is very much a function of the scale of sugar milling, and is one of the reasons for increasing returns t,C scale in th\-; industry. The distilling of potable alcohol and the manufacture of yeast fram molasses are the least capital intensive of the by-product industries, and can be carried on successfully even by relatively small mills. S'lgar manufacturers in developed coUntries find the profitable sale of by-products much easier than beet or cane sugar millers in developing countries, simp~ because other established industrial enterprises producing alcohols, food products, or animal feeds can use sugar ~finery by-products as part of their raw material inputs.

c. Susar Refining

84. Raw sugar crystals have a polarization of 960 or 96050. Raw sugar has to be processed further to give cr.ystals of a polarization of over 990

and the white color characteristic of refined sugar. Most of the world's white sugar is manufactured in refineries which remelt it, pass it over bone or vegetable char to further purify it, and crystallize it. Most sugar is consumed in granulated form, but some is ma.de into products such as cubes required by consumers and some is produced in liquid rom for food industries.

85. In the past refining has tended to be concentrated in developed countries, close to the centers of final consumption, for a number of reasons. One of the early causes of this trend was fiscal discrimination against foreign refined sugar by metropolitan countries which regarded refining their colonies' sugar as their privilege, but economic factors also fostered the trend. 11 Re­fined sugar does not travel nor store as well as raw sugar. In recent years bulk shipment of raw sugar has made for great economies in transport costs, so the small weight loss in final refining is more than canpensated by freight cost differences between raw bulk and refined packaged sugar.

86. The, introduction of centrifugal machines and of the char purification. process made for increaSing returns to scale in refining and this made conti­nuous large-scale production throughout the year important. Refineries gene­rally have much highe~ production capacities than raw sugar mills; an annual capacity of 100,000 tons of refined sugar is regarded as a minimum. The

11 Leubuscher, ope Cit., pp. 107-121.

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advantages of such production generall1 outweigh the economies which a small mill can attairl by using one set of equipment for both manufacturing and refining. N.onetheless" it is not unusual for beet sugar manufacturing and refining to be carried on at the same mill; with extremely efficient production tine consequent loss of economies of scale need not ratse unduly the cost of refined sugar.

87 • The increasing cauplexi ty of conswner and food industry demand has made p~sica1 proximity between refining and consumption more important. Refineries in developed countries were able to market by-products such as molasses more easily than those in developing countries. The trend towards refining near markets rather than near manufacturing centers has been estab­lished even in countries such as the United Stat~s and Australia where there were no fiscal incentives to do so. In recent years same non-producing developing countries have begun importing sugar for refining and sugar pro­ducers have begun refining their own centrifugal raw sugar inlarge~scale refineries.

88. The production costs of refineries largely depend on their scale of production and efficiency of operations. While high costs and poor quality products indicate a "learning through doing" period in developing countries, within two or three yeara these refineries come up to levels of technical operation of developed:,country refineries. They obtain their machine~J fran rims which specialize in equipping this industry. Maintenance and de­preciation are usually no problem since protective tariffs guarantee prices at which profits can be made and depreciation charges covered. The cost of production generally depends on the scale of operations and the efficiency of mangement and can be relatively high even if management is good. However, a low tariff may still be necessary even if local production is efficient be-cause of the artificiality of the free world sugar price, and because foreign refiners may fran time to time II dump " refined sugar to keep up production levels. Dumping occurs because the economies of increasing returns to scale in the sugar refining industr,y and the desire for national self-sufficiency have led to considerable excess capacity.

89. 'rile chemical processes used in raw sugar manufactUring can now pro-duce a wi te, pure ~ar which is indistinguishable fran refined sugar. Sulphitation and carbonation processes are the most widelY used. Both re~ on a high degree of clarification of the sugar juice with lime. The car­bonation process is slightly more expenSive, hut it gives better results, and the "plantation white" or "direct consumption" granulated sugar it produces is, in fact, indistinguishable; from char refined sugar.

90. During the 1920's'and 1930's European and United states' refineries obtained tariff protection ags,inst Uplantation white" sugars frQll Java, Cuba and Mauritius, aud this retarded the export of such sugar fran. colonial countries. In recent years cost differences and the comp).exrequirements of consumer markets appear to have given a cost advantage to large-scale refiners, but the manu­facture ot "plantation whiten sugars is of importance in developing countries which do not have a large enough market for modern, large-scale :refineries.

... 25 -

91. Producing "plan ta tion white If suga'r of a hi.gh quali t,y and at a competitive price is, however, technically not easy and requires e. level C.r technical management whi.ch many developih.g countries lack... Some of the older producers are in addition limited by 'very old eqnip:nent a.nd foreign exchange difficulties in obtaining spare parts.

D. FuturePros~

92" The low annual :per capita sugar consumption in de'11Ploping countries indicates that there is room., an.ct :tn some cases a nutritional need, fC):r [J,n e~"Pansion of sugar consumpti0n. Tn spite of tlhe e:xporters' traditional market problems, this is likely 1JO lead to an increase in sugar growing, manufactul"ing and refining in developing countries" M~y developing CO\Ultries have a potential cOOlparative advantage in sugar gro-w'i.ng; and balance of payments problems al"e an even more persuasive, if less logical, reason for self-sltfficiency in sugar. In 1966 aVelO9(lge world per capita suga.r consumption .. Taa 18 .. 7 kilograms J

but it was sign:i.£icantly lower in Arrica- ... 10.9 kilogrsIfls-- an.d Asia ...... · 6" 7 . kilograms.. Only in Central Ame.rl.ca-- 36.2 kilograms .... - f.!,,:J,d SOUiih America-- 31,.9

kilograms-- did consumption approach the l~vel of developed cOi.mtr:Ler-i. Al thcmgb. food processing industries, particularly those l.ike confp'c~,::!:or..ar.r. wh:lch a.rt~ importan t sugar users 11, are growing in developing c ountri e~5? t.otal sugar consumption increases are dependent on increaxJing i.ncomes. The ove!(all world trend is likely to be one of relatively slow, growth; but in so:o.e cOlmtries iTt ASia and Africa with low per capi ta sugar consumption the e~ansion of tota.l demand is likely to be very rapid since sugar is highly income elastic.

93. Ri,sing standards of living are already' being felt. in an increasing domestic demand for sugar production in several tra~~tional slqJorting countries, and the tum of the rice/sugar terms of trade against sugar he.s 8.100 been important II Thus Indonesia turned fran an important exporter t,o a n,at importeX' ~1 and the Philippines had to import sugar in 1966, a poor Cl'OP year, to meet i'hs export quota to the United States market. According to Gu.l~"'ent production. and consumption trends, local Philippine demand will take up a.l1 ~~vaila.ble domestic . S1!lPPly by the mid-1910's unless there is a c on.si de rab If;l and l.in.expected improve­ment in all stages of s11gar production. To continue 'to f~x.port, ..'i.ihe Philipp:iue~ will probably have to restructure its sugar industry geogra,phica.lly as well a.s improve its produ.c ti vi ty. ?!

94. In SOOle developing 'countries which were previously not Si.tgar ex-porters or even growers increasing local demand is giving rise to plans for production to zneet the local market. This is the sit.uat.iol}. in many ~~frical}.

11 F •. l.O., A. ,Vi ton and F. Pignalosa, !!:ends and Forces of Wor1f!. .. ~11gar Con=~ sumption, Rome 1961, p. 15, shows that manufactU:t'ing industries acco'Unt tor about half' of gmgar demand in high consumption developed countries such as ,the United Kingdan and United States" In manufacturin.g some of ttl,s demand for aweetenl',rs is now however being met by S1·reetenera other than sugar.

Y B. Natapennadi, "P'lantation Crop Planting Industry in the !DB B.egion,1I Asian Agricultlll'al Surv~, op. Cit., p. 289.

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states. 11 9,. In many traditional and most new sugar growing developing countries, the supply of beet or cane is the principal constraint on efficiency in sugar manufacturi~~_/at the individual mill level. Most raw sugar mills a.re too small t'k~ap optimum econcxn.ies of scale in manufac turing, but even such small mills have supply problems. ~proved capacity utilization, better maintenance and adequate depreci~tion are therefore dependent on improvements in agricul­ture: higher yields per acre; higher sugar content, and a longer season. Improvements in transport facilities are needed to reduce sugar loss between harvesting and milling. Inefficiency is less prevalent in Latin American countries like Bolivia and Peru, where the level of far.ming and other skills is relatively high and infrastructural facilities are relatively good. Costs of production are consequent~ relativelY low and prospects for rapid expan­sion much better than in low sugar consumption countries le,ss prepared :for expanSion, where increased demand with increasing incomes m~ outdistance supply.

96. The yield per acre also influences sugar manufacturing b,y deter-mining. the minimum area necess~ry to support a single economic plant. Pro­ceSSing requirements suggest that monoculture is most Suitable, whereas the intere~ts of individual far.mers may be for more diversified holdings, parti­cular~ if f~g is amallNscale and a free market is operating.

I •

97 • The irrational structure of the international sugar market and the bad supply and relatively high price of inputs such as fertilizers have tended to turn the terms of trade against sugar cane and in favor of crops such as rice in mixed farming areas. New cane growing areas will therefore probably have to be developed in countries such as the Philippines and Indonesia if sufficient cane ~s to be produced. for the dOOlestic market, let alone for exports.

98. The great~st investment cost and organizational difficulty must be borne during the eEtcablishment of sugar growing. A plant to make Western Africa self-sufficient in sugar by 1980, based on the assumption that per capita consumption in the monetary sector would rise fram 7.2 kilograms in 1963 to 12 kilograms in 1980, envisaged a totalexpenclitllre of $46 million on sugar cane gl'owing and $140 million on processing units to p;r-oduce m.ainly "plantation white" sugar. Another $60 million would be invested in cube Bugar, confection ery and by-product proceSSing plants. g; The investment ill sugar cane growing does not include the cost of land clearance, irrigation projects, or of setting up organizations for research and training, but even bearing this in mind the investment load does not seem too formidable spread over 12 years and 11 countries. The greatest difficulties are like~ to arise in persuading far,mers to supp~ a regUlar flow of high grade cane to the sugar factories although mills of on~ 2,000 tons a day are envisaged. Bringing the factories ini,o efficient production will B~lso be a problem in the absence of an existing sugar industry.

Y I U.N. Eoonanic Canmission for Africa, Develo in . the West African Sub~Region, (mimeographed, 19 , gives details of the West African countljV proposals and Econanic Canmission for Africa, ~ Food Processing Industries of North Africa, gives details of proposed developnents in NoX'th Africa. EE,st African countries' are also planning to expand sugar production.

gj Developnent of the Sugar tndustq in the West Afrioan Sub-Resion, op,. oit. pp .. 16-1-7•

•

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99. In countries with existing sugar production the investment costs of expanding production facilities will be just as fonnidable. Raising per capita consumption of sugar in Indonesia fr~ the S. 7 kilograms of 1966 to the l~ kilograms of the Western African plan w6uld. require an iricre:lse in annual output fran Bane 650,000 tons in 1966 to same 1,500,000 tons in 1980. This would almost certainly mean a re-16cation of the industry to the outer islands and the construction of an entirely' new manufacturing sector to repl:ace the existing out of date and bad~ maintained mills. In countries with problems of this magnitude considerable planning is needed immediately to avoid in­vestment in unfavorable locations in the near future.

100. Latin America is the only developing area in which increaSes in productivity and relative4r small increments in new output together with more regional t::rade can bring sugar consumption up to the level of developed countries.

101. Countries with prospects of large mareases tn sugar consumption and production face the choice of producing "plantation whitell 11 sugar or refined sugar. The choice must depend on local circumstances, but where local markets are la,\t'ge, large scale refini'ng is generally more econanic than "plantation white" p~roduction. This will increase refining in developing countries, but a su~$tantial shift fram developed to developing countries is lUllikely.

11 Also called ttdirect consumption" sugar.

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v • FRUIT AND VIDET P.BLES --------

102. The consumpti on of fruit and vegetables varies with the natural endowment of developing countries as well as with the level of per capita income. Consumption levels are lowest in Afri can countrie.s, but in the Middle East and Latin America., frui t and vegetables make up a high proportion of diets and conswnption levels at'e above those in developed countries (Table V-I). There is some small-scale manufacture of traditional vegetable pickles and sauces, but the bulk of fruit and vegetables is consumed by the farmers who grow them; the rest are sold fresh in urban markets. The demand for processed fruit and vegetables in most developi,ng countries is confined to luxury 1'Ood5 such as fruit juices, and it is negligible. It is not likely to grow substantially until incomes are considerably higher.

103. In developed coul'Jtries on the other hand, processed frui t and vegetables are important and grol'1ing items of consumption. Canned products predominate, but the demand for frozen, and to a minor extent, dehydrated foods, is growing. The developed countries produce most of the processed food they consume and several are also exporters (Table V-2), but they also import processed foods, (Table V-3) some from developing countries. The world market for proce~sed foods is gro'ir.ing with increasing incomes and population, and some of the semi-i'odustrialized countries are becoming processed food importers.. This provides new' opportunities for agricultural and manufacturing production in developing countries, but developing countries face problems in raw material supply, in manufacturing itself, and in marketing, and all these levels require attention if their exports of processed fruit and vegetables are to increase.

104. Frui t and vegetables have to be grOlm expressly for canning since the best strains for fresh eating are frequently not sui table for canning, and the qUali ty has to be high and unifornlq Most agricultural producers ir} developi ng countri es carmot meet the demands of the canners and the competition from devE!loped countries in this respect. For some products this is at l~ast part~ due to climate, since growing conditions in tropical countries are generally less favorable than·in temperate zones, but it is mainly due to low levels of agricultural practice. Small farmers cannot supply uniformly high quality products on a regula.r basis to canners unless they are supported by extension work provided either by the govermnent or large··scale canners, and this is only rarely available on an adequate seale. Contr·act farming has succef3dest in only a handful of developing countries. The d:tfficulties of small :pineapple growers in Malaysia since the 1930's have been typical of small-grower problems in developing coun tries. It was not U1ltil th'319(.~ , s after several years of government assistance to the growers, tha:t they ~r, able to supply pines.pples of adequate quality. Philippine farmers have similarly been unable to supply Canllers wi th adequate

I

i I

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frui t, and canners have ther€lfore had to start their own plantations. Small Philippine canneries which relied on small growers have constant supply problems. II Latin American experience is similar. Central American Common Market countries have excess capacity in food processing. There this industry produces almost totally for the domestic market since the processors, many of them foreign fims with marketing 00(& production experience and access to markets in developed countries, could not obtain suitable raw materials. Such processors were initially attracted by expectations of ch~ap agricultural products, which have since proven false. In 1968 tomatoes cost $54 a ton, compared to $3$ in the United States and'in Europe. The tomato yield in Central America lies between 4 and 6 tons per hectare whereas it i·s 30 tons in the United Stat/as. Some of the canners imported apples, peac;hes al')d pears from Californj.a and Italy for processing for the domestic markat_ Locally grown tropical fruit is only processed in small quantities for the local marke~ because of poor quality SUpplies. g( Similarly, a Nigerian tomato processing plant had to import tomato pulp from Europe. This is the general pattern of tropical frui t production for processing. Only in countries with well-established agricultural practices supported qy effective gov~rnment 'extension, such as Taiwan, are small farmers able to supply canneries with fruit and vegetables of acceptable quality.

105. A year-round and regular supply is equally important so that canneries can work at full capacity throughout the year. Apart from pine~pples and papayas there are few crops which provide opportuni ties for such continui ty, and canneries therefore generally pl~ocess a mix of products. This means that the farmers have to be adept at growing a number of crops and emphasizes the need for adequate extensi on work. It gives an advantage to the cannery which produces a variety of products.

106. Food processors in developing countries have much ~ore difficult location problems than those in developed countries. Firstly, absolute distance between them and their potential markets generally precludes freezing because the transport costs of frozen foods are uneconomically high over a long distance. Yet frozen foods have a growing share of the processed food market. Secondly, because transport facilities are generally poorer in developing than developed areas, the "hinterland" from which a processing plant can collect its raw materials, all of which have to be processed while fresh, is generally smaller in a developing than in a developed country, and this means that the scale of production is smaller. Canneries which have to

11 H. Hughes, op. cit.

£! United Nations Conference on Trade and Development, Trade and Development Boa~d, Committee on Manufactures, Third Session, Geneva, 8 October 1968, Note by the UNCTAD Secretariat. Prospects for Increased Exports of ~Bfactures and Semi-Manufactures from the DeVel~ing Countries; Short and Medium ProSEects for Exports of Manufactures. rom Selected Developing Countries;. Central American Common Market Countries. p. 37. Moore and Padovano, op.cit. passim, review the experience of American food processors in Latin America_

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locate deep in the countryside to be close to their raw material supp+y are generally far from shipment ports, and their location imposes other dis­advantages in attracting and keeping skilled workers, technicians and management, and in obtaining marketing and similar services. These difficulties can to same extent be overcome if such a plant is part of a large group or a member of a co-operative, and this is one of the reasons for the relative importance of direct foreign investment in this industr,y. The existence of good transport facilities and the short distances involved also accounts in part at least for the success of food processing industries in Taiwan, Hongkong and Singapore.

107. The lack of economies of scale is, however, likely to be the main problem in developing countries for a number of reasons. Food canning consists of a simple series of processes, but for hygieni c and quali ty reasons these have to be supported by constant laboratory and technical supervi sion. Therefore, the proportion of overhead costs to total costs tends to be high and to grow with the complexity of products. A considerable range of substitution of labor for capital still exists in food processing, but there is a growing tendency to substitute capital for labor in making quality products. Where the appearance of individual pieces such as pine­apple slices are important, there is a strong tendency to replace manual labor by machines to ensure uniform appearance of the finished product. 10 the production of fruit and vegetable juices the producti vi ty of capi tal intensive processes is so much higher than of manual operations that wage differentials ha:ve become relatively unimportant. The main opportunities for the employment of labor rather than machines exist in products such as mushrooms and asparagus where mechanical handling has not yet been developed, and in made-up mixture ~islles where the appearance of individual pieces of fruit or vegetables is not important. The proportion of these products in total processed fruit and vegetables consUllJPtion is, however, small.

108. Economies of scale grow as capital intensiveness rises, but they are important even in labor intensive processes. It takes ,time for ~orkers to achieve peak production on a given production line, and very small canneries frequently have to change production before peak productivity is reached. It is noteworthy that the best pieceworkers in Taiwan move to canneries with the longest production run prospects because that is where they will maximize the~r earnings.

109. Containers are an important cost element. The economics of can making favor large scale production. Cans can be purchased in a semi­processed form, or made from tinplate sheet by methods of varying labor intensity, or they can be made by fully automatic can making machin~s. Semi ... processed cans are not always available in.developing countries, and the cost of transporting and storing them is usually high. For most canners in very under'developed and in industrializing countries the choice is between an automatic can maclnn~ and various labor intensive methods. Provided the can making machinery is fully utili z ad, it usually halves the cost of

Ie

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manufacture. But automatic can m~{ing units are designed to produce about 100 million cans p(:tr annum on a three-shift basis, and this implies an output of about 25,000 tons of cann~d food a year. Workers in efficient large-scale frui t and vegetable canlleries (1,000 employees) can produce 25,000 kilograms of canned food per. head annually, so a plant has to be operating on this scale to utilize a can making machine adequately. The experience of canning factories in the PhilippineS and in Australia suggests that the average costs continue to fall steeply until annual outputs of more than 25, 000 tons are reached, and that it is only beyond thi s scal e of production that the average cost curve begins to flatten out. In . developed countries there is a strong trend towards plants with more than 1,000 employees, but on the other hand in Taiwan where cann~ng is very labor intensive, some 78 plants produced 140,000 tons of canned fr'ui t and vegetables in 1966. 11

110. Small scale food processes sometimes avoid can problems by hand filling glass containers, but the use of glass containers is limited by transport costs and difficulties, particularly for export markets. Glass containers are competitive with cans in developed countries only when the scale of production is so large that they can be purchased at a rate of some 100 milli on units a year. The main product marketed in glass containers on this scale is baby food. This is not a particularly sui table export product because of both transport difficulties and consumer fears about hygiene standards of imports from developing countries.

111. Economies of scale are particularly important in marketing. Canners in developing countries have overcome the difficulties of selling their products for export in two w'ays. Canneries totally or partially owned by foreign investors have marketed their products under the parent company's name and marketing and advertising umbrella, another important reason for the relative success of direct foreign investment in this industry. The bulk of fruit and vegetables canning in Latin America and the Philippines is done by such companies. On the other hand, in the South­east and East Asian countries and in some African countries, canneries, some of them wholly or partly foreign owned, have sold their produc~s under the label of the buyer in the importing countr,v. While this solves the producers I marketing and advertising problems, it does not allow them to build up their image in the consuming countr,y and they have therefore tended to lose their share of the market, particularly in times of intense competition. This has been a serious problem for the Malaysian pineapple producers. Since marketing requires large-scale organization, the alternative· to direct foreign investment appears to be a cooperative effort by canners to sell and advertise a countr.r's products in export markets on lines adopted in developed countries.

11 W.K. Chen, "Taiwan I s Food Prooessing Industry", Industry of Free China, Vol. XXIX, March 1968, pp. 15 - 19.

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112. Problems of raw material supply stemming both fran poor agricultural practice and inadequate transport are likely to remain the principal constraint on the development of fruit and vegetable canning for export of developing countries in the near £uture. Developing countries have to reach fairly high levels of competence in agriculture before they can process fruit and vegetables for export. Although the manufacturing processes are relatively simple, here too minimal levels of experience are necessary. The semi-industrialized countries which already have a reasonably good infra.structure and sane experience in export marketing are best able to enter the extremely competitive international markets. For the industrializing countries whose wage levels are frequently as high as, a.I1d sometimes higher than semi-industrialized countries, the semi-industrialized countries are the most formidable competitors in canned fruit and vegetables, as indeed, in most export products. 1/ For the very underdeveloped countries canned fruit and vegetable-opportunities are limited to areas in 'which they have a particular comparative advantage, generally due to past direct foreign investment, as in Western Africa.

l13. On a global scale policies encouraging the export of processed fruit and vegetables from developing countries must be pursued with some caution.. Although demand in developed and semi-industrialized countries is growing, once certain levels of consumpti on are attained, demand beco~es inelastic with regard to both price and income. There is a limit to the amount of canned asparagus that one can eat. Some developed countries are keen competitors :in food processing eJCports, and competi ti on among developing c~>untries is growing. Many developed countries' protect their food processing industries; it would be unduly sanguine to expect that they will not continue to do so. fI Supply difficulties have alreaqy created considerable eXCeSf:l capacity in exi sting modern canneries in developing countries. In Taiwan, for example, canned pineapple production currently runs at about 50 percent of capacity~ 11 Once significant breakthroughs

!I This is perhaps the most telling argument against preferential tariff treatment for "developing countries" by "developed countries". H.G. Johnson, Econo~cPolicies Toward Less Developed Countries, Brookings, 1967, for example, argues persuasively for such tariff preference, but does not deal in theoretical or in practical terms ~th the problem of how "developingU countries are to qualify for preferential treatment. Nor does he discuss the problems of allocating preferences among, th'rm.

I

g/ There are of course many special arrangements gind preferences for trad­i tional suppliers to E}lrope and North AJr',erica in this field. B.Balassa, "Tariff Protection in +ndustrial Nationsl and Its Effects on the Exports of Processed Goods from Developing Countries", The Canadian Journal of Economic:'3, I, No.3, August 1968, pp .. 583-,91~, has also shown that in general ~he rate of ef.fective tariff declines with the degree of sophistication of the imported product.

l/ Chen, Ope cit, p. 16.

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h~ve beep made in agricultural productivity, enabling existing processors to increase production and aspiring processors to overcome the supply problems which ~eld back processing development, both of these groups will seek to increase their export earning~. 1~thout a careful and continuous evaluation of the actual potential of international markets in canned fruit

'and vegetables, competition among developing countries could lead to considerable excess capacity in the industry. Through oversupply, these products could lose their att;ractiveness and go the way of more traditional

commodi ti esalmost ovemi g}l~t •

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VI. MILK

llu. Milk production and consumption are dependent on climate and topography as well as on a 'countr,y1s stage of development, but in general milk and milk products are high cost foods little consumed in most developing countries. Some of the Middle Eastern and Latin American countries are t:p.e principal exceptions. In Turkey and Uruguay which are particularly sui table for animal grazing, consumption levels exceed those of developed countries (Table VI-l). The demand for milk is, however, growing with increased emphasis on nutrition, standards for children and wi th increasing incanes. Nutrition aid programs have stimulated consumer demand. In several Latin American countries it has outpaced supplies in recent year-51/ and milk processing can be expected to continue to increase in i~ortance: in developing countries in the future.

A. Liquid Milk and Otherlt:resh Milk Products

11, . Liquid milk processing is frequently beset by difficulties even in developed countries. Milk is very perishable and must be processed wi thin 36 hours. Consumer markets are highly concentrated in cities and sufficient farm la~d pa.rticularly suiltiable for dairying is only rarely available in close proximity. The demand for milk does not vary greatly throughout the year while the supply is highly seasonal. Peak production can be more than twice as high as the seasonal low even under agricultural conditions., Whole milk is most economically I processed at the point of consumption, because economies of scale are considerable, ~ but this requires a concentrated demand and a large and regular sUPPfY wi th fast, refrigerated bulk transport from the producing areas. The costs of hygienic liquid milk supply are high, and they are particularly high in developing' countrie~ where the seasonal viariation in production is generally large, milk output per cow and per a.cre low, transport poor and Iconsumer demand small. The relative cost of containers is usually also higher than :tn developed ccnntries.

I

116. Much of the liquid milk consumed ill developing countries is therefore still unpro.cessed. 'Small II dairies,u frequently oxist on the out­skirts of the cities, qompeting wi th pasteurized milk and with o·~her fo;rms of processed milk, their lack of hygiene offset by cheapness and sometimes

!I F.A.O. Food and Food Products Industries, Latj.n .Amer:i.can Symposium on IndustriarDelvelopment, UJ'f."E'con-omrcatld Social Couni~il, January 1966, p. 30-31. I

?J Agricultm:e ~nd Indus.t;:?:a1izationop.cit. p. 64 gives the cost of pasteurizi ng milk, at J. 0 to 3.3 cents p~r Ii ter for a plant wi th a 'capaci ty o=~ 5,000 to 6,000 liters, 2.7 to 3.0 cents for 10,000 to 20,000 liter cflpacity, and 2.,5i to 2.8 cents for 20,0?0 to 75,000 liters.

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by a more traditional product better suited to local tastes. In the Middle East and Latin America, for example, where yogurt is a popular item of consumption, this may be a more suitable product for pasteurizing plants than milk. In South and East Asia, and in some African countries some of the whole milk consumed is reconstituted from imported milk powders, but this is confined to relatively high i~come groups and relati vely high income areas such as Singapore an ~ Hong Kong. The manufacture of reconstituted milk is a simple process which is economic on a small scale, but it is a luxury product, and most reconstituting is dbne by the consumers in the household from powdered and canned milk.

117. Ice cream is the other principal milk product manufactured in consumption centers in developing countries, b~t it is usually also manufactured frbm imported skim milk powder and milk fats. Ice cream can be manufactured economically in small plants but there are economies of Inark~ting and this has led to; the entry of foreign investors in the larger Asian and Latin American markets_

B. Powdere~ ~ilk, Bu~te~ and Chees~

118. Spray-drying milk to produce milk powder is often the most economi c form of milk processing in milk prcxlucing developing countries. Because this process is better sui ted to the conditions of supply than pasteurizing liquid milk, powdered milk is cheaper to produce than liquid pasteurized milk in all countries. In developing countries the relative cheapness of powdered milk and the lack of refrigeration make powdered milk the more popular product. The consequent lack of demand for liquid milk makes past~urizing costs higher than in developed countries. Powdered milk production can be used to process milk produced above whole milk require­ments in seasonal production peaks, and to use up skim milk and buttermilk produced in cream and butter processing. It may be the most economic form of processing the entire milk output of outlying areas. The process does not require high direct investment or refrigeration in transport and storage, it is technically simple and can therefore be relatively small-scale and still economic.

119. Butter and cheese production are similarly best located at the principal centers of supply rather than at consumption centers. But butter

and ghee are ver.y high cost foods and their consumption is accordingly ver,y low in developing countries, and this is also true to a large extent of cheese except in the traditional pasturing countries of North Asia. In South, and particularly East ASia, cheese even more than milk has little role in traditional diets and its introduction onlY comes with relatively high incomes.

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120. Butter and cheese can also be rro3uced on a relatively small scale because the capital required is noc. very great and the processes are simple. The requirements for freshness k.e~ uni ts relatively small even in developed countries. This appears to be an industry particula.rly sui table for organization into producers' co-operatives, but in developing countries the producers are too poor and too inexperienced to be able to organi ze such enterprises. Kenya, where dairying was initially in the hands of whi te farmers, is one of the fe't-l excep'ti ons. In some countri as there has been direct foreign investment in milk and butter processing and UNICEF has assisted wi th the provision of powdered milk equipment. There has been some direct aid by developed countries but this has rarely been successful, ma.inly, however, because a good supply of milk was not established. The organization of milk processing remains a largely unsolved problem which will becme more pressing wl..th the industry's expansion.

C • Canned r1ilk

121. Cost and climate make canned milk, particularly sweetened, condensed milk, whi ch keeps better than evaporated milk, an important form of milk ror consumption in developing countries. There is same milk canning from locally produced milk in Latin Ameri ca, but most of the milk canning in developing countries is from imported skim milk and bU"(,terfat solids. Tariffs or import restrictions have generally been introduced to establish the industry, but provided it produces on a sufficiently large scale it should be able to compete erfecti ve~y wi th imported canned milk becallse of low'er transport costs.

122. Markets have generally been established in developing countries by large firms importing their products from developed countries, and these firms have established local production lines when the governments of developing countries raised tariffs or imposed import quotas. Canned milk production has generally been established on an economic scale, with can making machines and canning lines of 25,000 tons a year upward to cover the relatively high costs of maintaining quality and nygiene standards. The principal raw materials, skim milk and milk fat powders, have generally been supplied by paren·c firms in developed countries, and there is in any case an amply supplied and competitive world market for such products. In some countries milk prod,ucers who had to purchase locally produced sugar for sweetening have had diffi cuI ty in obtaining sui table quality sugar, but some countries allowed them to import their requirements duty free, and in at least one case a mil\{ cannillg firm with a foreign partner was able to help the local sugar producers upgrade their products sufficiently to make it suitable for sweetened condensed milk production. Forei~) investors have assisted with management and technioal problems, and have ensured that the high standards of hYgiene which are particularly important in milk products were nk~intained.

123. In some cOllntries vegeta.ble oil was used to replace imported milk

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fats in II filled ll evaporated and sweetened condensed milk. These products are almost indistinguishable in taste from milk made with milk fats, but they are considerably cheaper to produce. In the Philippines cans of filled milk are priced at about two-thirds of the cost of imported canned

milk made from milk fats, and this contributed to a rapid rise of the demand for filled milk. y Filled milk probably has a great potential in the very underdeveloped countries of Africa whi·bh are pil producers, and where milk and milk product consumption is partic;llarly low.

11 F .A.O. The Economics of Filled Milk: A Case Study, Commodity Bulletin Series 35, Rome, 1962.

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VII. ~

124. With the exception of the Latin American countries which are the only important meat exporters among developing countries, the per capi ta consumption of meat in developing countries is very low (Table VII-I). Beef cattle herds are pastured in the savannah regions of Africa and Latin America, but otherwise beef generally comes from worn­out draft animals. Sheep and goats are pastured in North Africa and North Asia, and in the southern parts of Latin America, but otherwise sheep and goat numbers are very small. Pigs are camaon as a supplement to income and diet in non-Muslim countries, particularly in South and East Asia, and the scraggy chickens of underpevelopment are ubiquitous. Only in a few developing countries has cooonercial chicken farming been begun. Most of the smaller an1.tpals and chickens are still slaughtered in households or by shopkeepers. Large-scale commercial meat slaughtering and processing is carried on only in a few' exporting countries, main~ Argentina and Uruguay; elsewhere it is confined to the larger cities.

125. Meat is a high-cost food, and the scarcity of land, poor agricultural practice and the absence of animal feed by-products from industries such as grain and oil seed milling tend to make meat production costs particularly high in developing countries. The difference between meat ~'!']d other food prices is therefore generally bigher than it is in developed countries. But meat consumption is highly income elastic in mediura-range income levels, and prospects for increasing demand, particularly in industrializing and semi-industrialized countries, are good. In some Latin American countries the combinaticn of relatively inelastic supply, rising per capita incomes, and exchange rates which are unfavorable to eXports have led to a faster growth in domestic demand than in exports in recent years. Yet for several Latin Amarican and African countries, meat products present very hopeful export prospects. Some investment in the cattJ.e industry is now taking :glace and this should be reflected in a growing need for slaughtering j'acili ties in the future.

126. The chief problem in meat slaughtering and processing is raw material supply. With the exc(!ption of the exporting countries, most of the beef slaughtered in developing oountries is old and low in weight when it is slaughtered. This is mainly the result of poor Qreeding and grazing on unimproved pastures without a fattening period, and it is exaggerated by the lorlg distance stock generally has to travel, on the hoof, to slaughtering centers. 'Where truck or rail transport is available it is frequently crowded and t~nhygienic. Improvements in stock breeding, stock health, pastures and transport are in most cases a prerequisite to an adequate meat supply, and thi.s in turn influences the choice of si te for slallghtering and processing facilities.

127. Because oir the uncer"f;,ainty, poor quality and seasonality of

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supplies, most slaughtering plants in developing countries are small, processing less than 10,000 animals a year.1 In such abbatoirs animals

I

are butcher'ed individually and this makes fLygiene and quality control difficul t. Although humane treatment of animals prior to slaughtering is necessary for high quality meat standards, thiS is generally neglec·ted. Tallow' is not separated from meat for sale or use in fat, margarine or soap manufacture, offal and bones are wasted, hides and skins are frequently damaged and not processed well enough or quickly enough so their value is often negligible. 11

128. An annual throughput of at least 30,000 to 40,000 animals is required to set up a mass production line as oppohed to individual slrulghtering. Line slaughtering enables high hygiene standards to be maintained, generally improves the quality of meat, and makes the proceSSing of by-products economic. Offal is made into animal feeds and fertilizer, and bones are processed to make fertilizer if t.hey cannot be sold to other industrial enterprises for glue-making and similar processing. Chilling equipment becomes more economic. Unit costs of production continue to decline at least until some 100,000 animals are processed annually, and at such outputs canning facilities and hide treatment, if not already established in the vicini ty of the abbatoiJ!", can be added. However, the management of such a complex enterprise is very difficult. Although such large abbatoir complexes have been operated successfully for many years by foreign investors in Latin America, developing countries only beginning large-scale meat production are frequently advised to limit their operations to the minimum 30,000 to uO,OOO head required for by-product processing. y

129. In most developing countries beef production is too under-developed and transport facilities are too inadequate to enable large abbatoirs with integrated canning to operate successfully, and it will be some time before the annual cattle turn off (number available for slaughter) can be raised sufficiently in areas well served by transport. Unless this is accomplished, gains in the economies of scale are offset by losses in weight while animals travel on the hoof to the abbntoir. 11

11 In Muslim eountries abbatoi rs have addi tiona1 di ffi cul ties. See F.A.O., I .Mann, Meat Handling tn Underdevel2Ped Countries, F.A.O. Agri c111 tural Development 'Paper. No. 70, Rome 1960, for details of small-scale slaughtering practices.

y Agriculture and Industrialization..1. op. cit., p.59, also suggests that. relatively low labor costs tend to offset the cost disadvantages of such medium-scale enterprises.

1I F.A.O., G.R. Purnell and W.J. Clayton, Report to the Government of B;chuanaland on the. Beef Ca.ttl~, Mea.t ..ltL~~. FAO/EPTA No. 1783, (mimeographed) Rome 1963, pp. 19-27.

- ho ...

130. To avoid exploitation of local markets by a monopoly, abbatoirs for predominantly local'consumption are frequently managed by municipal councils or similar institutions. These almost universally lack the investment capital, technical experience, marketing knowledge and managerial talent to conduct the enterprises 6ffi ciently . Heavy local "luxurylf taxes, leading to many instances of evasion including customs violati ons at country borders are common in Africa, Asia and Latin America. Neither farmers nor consumers are satisfied. Charges of corruption are monotonously frequent in torpid provincial centers, and they are often well founded. Experience of municipal control suggests that this is probably not the best way to overcome the problems of' monopsony and monopoly in meat slaughtering.

131. The lack of adequate meat supplies is the main constra:i:tTt on meat canning, although market difficulties also arise. The domestic market for canned meat is extremely limited in developing countries, and where canneries have been established to produce far the local market they have had little success. The Philippines and Thailand are two examples. The governments of both these countries established puplic enterprise canneries for the local market, the principal aim being the improvement of local nutrition. Both w'ere extremely well equipped fran slaughtering to can making, but neither has yet succeeded in producing close to capacity, mainly because of the difficulties of supply, although the limitations of local demand became evident as soon as production began. Both produce principally for the army. It could be better and more cheaply fed with fresh food.

132. The international market for canned meat is highly competitive both in quality and in price, and developing countries have succeeded in meeting its demands on a SUbstantial scale only in Latin America where the supply of meat has been adequate and production has been on a large enough scale to canpete with large plants in developed countries. Since most of the production is in the hands of large foreign investors, marketing problems have been solved fairly easily. Relatively small production of specialized canned meats, mainly for exports, has also been built up in East and Southeast Asia. Production is in conjunction ~th vegetable canning and relies on a demand for Chinese-flavor food; it is significant that an adequate supply of pig and chicken meat was available for the canners who branched out into these products.

133. While loc~ meat production, consunption and exports' will undoubtedly continue to rise in developing ccnntries, requiring improved and addi tional slaughtering r,.,cilities, the expansion cannot be expected to be very rapid. Substantial investment is required to upgrade existing processing industries and provide new ones, but except where foreign firms are prepared to enter the field, the problems of organization of enter­prises are l:i:kely to be more considerable than those of the actual investment.

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VIII. E!§!!

114. The only developing countries in which fish consumption is ~~gh are those of Southeast and East Asia and some Latin. American countries. Oth~rwise fiSh consumption is confined to coastal areas, lakes and rivers, and per capita consumption is low (Table VIII-I). Fish is a food for which taste has to be acquired, and the absence of such a tas.te has sometimes proved a constraint on the. demand for fish in inland areas, particularly in Africa. But the abs~mce of consumer demand is rarely the main reason for low consumption levels; inadequate and irregular supplies, even in coastal, river and lake areas,are a much more frequent cause.

135. Peru is the only substantial fish producer among developing countries (Table VIII-I), and most of its fish is not edible but for fish meal production for feed. The bulk of the world's fish supply and demand comes from developed countries. It is true that .many developing countries f~il to exploit their coastal and inland fish resources adequately, but this is. hot the principal rea.son for their failure to be major fish suppliers. Most of the world's fish is caught in deep '\va.ter, in the oceans, and the fishing industry is technically complex and skilled, highly capital intensive, and closely integrated. with modern, large-scale p:rocessing which includes chilling and freezing, prepared fish products, pickling and salting, drying, canning and fish oil and fish meal production. y The investment costs of such fishing are considerable, and the creation of the manual, technical and managerial skills required for the industry takes time.. The industry has to be supplied by good harbors and fish handling facili ties.

1;36 • In developing countries most fi sh is eaten as it is caught. Some is salted, smoked or dried and this enables it to be kept for periods varying from a few days to three and up to; six months even in very hot and humid climates, depending on the preserving process, or combination of processes, used. In some developing cotlJ.,tries ice is available in the principal fish catching centers, but fish packed in ice keep only for a few days, and refrigerated inla.nd traIl sport facili ties are rarely ava.ilable. In a countr,y such as the Philippines where fish form a large and popular part of the diet, it is usually cheaper to buy canned imported fish than fresh fish, if, indeed, fresh fish is available at all, in towns more than twenty, but sometimes only ten, miles from the coast.

137 • Fish is a nnich cheaper source of protein than meat in most developing countries where it is available, and this has led governments to

y' OEeD, Fish Handlin and Preservation Technology, Scheveningen - ~eptember technological develqpment.

on Fish recent

'. - 42 -

support fish processing and particularly fish canning, since canned food has the best keeping quali ties and does not require special distri bution facilities. Fish canning has not, however, beenver,y successful in such countries, mainly because supplies have proved inadequate even for relatively small canneries.

138. Fish are typical of primar.y products in that the supply tends to be seasonal, so where canneries and other processing has been tied to a local offshore fishing industry it has worked at high capacity for only a small proportion of the year. . The lack of transport, and parti cularly of refrigerated transport, confines plants to much smaller areas than in developed countries, and canneries in developing countries are generally too small to have their own container machines, lack mechanization in key processes, produce a lower quality product, and have to turn too high a proportion of edible fish into fish meal. Governments sometimes raise the industr.r's costs by insisting on the use of local raw materials such as oil even if they are relatively highly priced, by requiring the utilization of a number of small canneries rather than the rationalization of production in one large-scale one, and qy insisting on une~onomicru.ly high labor utilization. 1/ Fish canneries in developing countries also have management and marketing problems, and it seems significant that one' of the few successful ones, in Samoa, is a joint venture with foreign capital which has taken over management and marketing responsibility.

139. Developing countries have been successful in two areas of fish processing. One has been the deep freezing of shrimp, lobster and molluscs for export to developed countries. This can be undertaken on a relatively small ~cale because there is no container problem. The best fishing grounds are not deeR water but offshore and they can be exploited fairly successfully by traditional fishing craft. Once deep freezing is established on the basis of an assured crustacean and mollusc supply, the freezing of high quality fish such as tuna can be added even if s~plies are only available on a small scale and irregularly. Thailand, South Vietnam, Taiwan Korea, and some North African and Latin American countries have established ' sUf::h successful deep freezing enterprises for export markets. Secondly, Peru has been extremely successful in exploiting the hitherto unfished : Pacific resources of anchoveta, an industrial fish not suitable for direct consumption, for fish oil and fish meal ~ The industry began as a by-product industry for canning and fish oil production but as the demand for feed grew in developed countries, fish meal became the main product. Angola, Chile and Morocico also pr,?duce fish ;meal, but like canners in developed countries they use canning offal as the main raw' material to~et,her wi th such ndn- \

!I All these are true in Morocco,£or example, (The Food Processing Industries of North Africa, Ope cit. p. 33-45) but some are also true for ~~ny other developing countries. I

'.,..

- 43 -

consumption fish as appear in the catch. As in canning itself however, they are at a disadvantage because their scale of op~ratians is relatively small.

140. In mariy developing countries the demand for fish is small az1d requires stimulus before a successful fish processing industry can be estabiished for dome,stic consumption. Yet the domestic market offers perhaps the best o,pportunity, 'because the low costs of integrated fishing and proc~s8ing operations already well establi shed in developed countrie s are incre'asingl.y tendi~g to offset the labol- cO'st a.dvantages of developing countries, so ell try into international markets is not easy. In any case, as in most food processing industries, the first T~quirement.is the establishment of high quality, low' cost and regula,t. raw' matel"ial supplies, adequate harbors and transport; compared to the costs involved in this sector the investment costs of fish processing itself are not ver.y great.

- 44 -

IX .. BEVERAGES

-141. The production of sort and carbonated drinks and brewing are generally among the first manufacturing activities established in develop­ing countries.. Once these products are introduced into a country, demand grows rapidly.. Most developing countries have hot climates and inadequate drinking water supplies, and carbona ted drinks and beer are the p'oor' man I s symbol of development. Demand tends to be establi shed quickly, and to continue to grow with rising incomes and growing urbanization as well as with total pq>ulation growth. Supply factors equally favor market growth. Carbonated drinks and beer enj oy natural protection because transport costs for bottled products are high; also bottles can be collected and re-used. In sugar producing countries the availability of molasses as a by-product favors the establishment of distilling. The manufacture of alcoholic beverages is generally encouraged by tariffs which protect local producers from imports.

A. Soft and Carbonated Drinks

142. The manufacture of carbonated drinks is extremely simple. Essentially only a boiler for mixing the water and flavoring, a machine for introducing carbon dioxide, and a bottle capping machine. are needed. In many developed countries production is decentralized and small-scale because of the low capital cost of equipment and the economies of bottle re-use~ By contrast, in developing countries carbonated drink production tends to be relatively large-scale and capital intensive. This is partly the result of factors such 'as the absence of readily available pure water, but it is mainly due to the economies of scale in marketing, and the related entry of large :fQreign-.firm~ which opeFate internationally under well-esifablished and constantly advertised bran(,l na,mes. These finns gerJerally· supply • the syrups which flavor the drinks under license agreements, and assist entrepreneurs in developing countries to establish manufacturing. If water purification has to be included in the production process, relatively large scale, prod.uction is desirable, and this is frequently the case in developing countries.

143. Soft and carbonated drink production is one of the most trouble free manufacturing industries in developing countries. There are no raw material supply difficl.llties. Parent licence firms generally supply syrups, there is a large interria tional market in syrups, and syrup manufacture i i tsel;t: is simple. Sugar does not have to be of high quality and even relati vely high sugar qosts are offset by nc,tural protecti on. There are few technical problems in production, and a$sist.ance is readily available from parent and associat.ed firms to solve those which arise. Marketing is simpl~.

,'"

- 45 -

B. Brewing

144. Brewing is a more complex and capital intensi va industry than carbonated drink manufacture. It was, in fact, one of the earliest capital intensive industries in developed countries, particularly in agricultural product processing, and made a substantial contribution to the growth of manufacturing and to improvements in agriculture in this role. In some developing countries this has also been true in recent years, and has led to a diversification of agriculture. But in most developing countries it has had far less impact because most of the raw materials, particularly hops and barley, are imported. Broken ric~ and other grains are, however, also used to some degree.

145. Because the demand for beer was initially established wit.h imported beers,a high proportion of breweries in developing countries was started with the aid of direct foreign investment, and this made the problems of selecting equipment and of management relatively simple. Br~~ing, like flour milling, is in any case an international industry with an international market for equipment, and most enterprises in developing countries have had Ii ttle difficulty in c,oming into and maintaining production. High capaci ty operations are usual, and costs are close to those of medium-scale breweries in developed countries. Excise tax and hence the relative price of beer are often higher than in developed countries, but demand nevertheless grows steadily with rising populations and rising'incomes.

c.. Distillins

146. Rum is the principal distilled alcoholic beverage produced in developing countries, although a few others, such as coffee liqeurs, have also reached international markets. There is considerable excess capaci ty in rum production in most sugar growing countries, particularly in Latin America, but high fiscal barriers limit the markets in developed countries. A few traditional suppliers receive tariff preferences in the United States. Many traditional beverages are now su.ccessfully distilled commercially, and other alcoholic beverages modelled on those of developed countries are distilled because fiscal measures provide protection, or gove.rnment monopolies find such production a useful source of revenue. Random sampling suggests that th~"·have not been able to match the quru..i ty of similar products made in deve~~)led countries and it is not surprising that this sector of the beverage industry is frequently troubled by a lack of demand. Otherwise the distilling industr.y, like the other beverage industries, is singularly without problems.

· ,

- 46 -

x. IMPLICATIONS FOR ECONOMIC POLICY

147. Most developing countries have neglected food processing industries in spite of their preoccupation with industrialization. In some countries, fear of rural unemployment led to policies which discouraged s.uch advances as mechanized rice milling, but more canmonly governments were preoccupied with new industries symbolic of the indUstrial­ization process. Moreover, the problems of the food processing industrieS have generally stemmed from low agricultural productivity and inadequate storage and transport facill. ties rather than from conditions in the food processing industries themselves. Therefore they have usually proven intractable when governments made attempts to improve processing productivity without paying due attention to agricultural conditions.

148. Industries which process imported raw food materials, such as wheat milling and milk canning, were generallY an exception to this pattern; they received considerable government attention because of their import replacement potential. Such industries show relatively high productivity, partly for this reason, but also because they are relatively large-scale, enjoy good quality and regularity of supply, and have modern equipment. In a few of the semi-industrialized developing countries, government policies have successfully encouraged the growth. of export­oriented food processing based on local raw-materials, but such policies have also been exceptional.

149. Many factors have created a situation conducive to change in government policies. The most important is the new emphaSis on agriculture and the new, more produc:ti ve agricultural practi cas now being introduced, particularly in the rice growing areas of South and East Asia. Provided storage and transport facilities keep pace wi th agricultural output growth, increased yields and double cropping will make possible an increase in the scale of pr.ocessing. The demand for labor in the c.ountryside will increase. Farmers' incomes will rise, they will produce greater surpluses, and some of the facts of life which perpetuate the present very small, inefficient rural procesE:ing· units will begin to change.

I I

150. Furthermore, there is disenchantment with heavy industry and interest in the more mlUldane industries hasrevi ved. Food processing industries have important backward linkages to agriculture, mainly through the supply 0f feedstuffs for local stock and poultry production which many countries need in increasing quantities, but also through the diversification of agriculture. Linkages to <;>ther industries are ~lso. important, particularly to soap and detergent manufacturing from oil processing; demand is increasing for products of forward-linked food product industries such as bakeries and ice cream plants. The new e~ort ... oriented orthodoxy is encouraging all developing countries to look to food processing industries as possible sources of manufactured exports.

151 <I So far these changes in agricult.ural conditions and policy

- 47 -

aJ~ti tudes are far from pervasi va. Only with purposeful action can they be charmeled in'to substantial and rapid improvements in food processing. Hore­over, developneilt strategies must be adapted to product and c01Ultry.

152. The foodstuffs clearly moat in need of immediate attentioll ..=ire the grains. The principal inVestment, apart fi"om that in gra.in growing itself, is required for sufficient graL~ storage and transport to support efficient economic processing 'Wlj.ts. The scale of investment required £or t~e impr!Jvement of nulls is also fonnidable. The replacement of small country :rice, corn and wheat mills by medilL'll-scale and large mills will require investment funds and new lending attitudes by development and other financial institutions in many cases. The large numbsr of new in~~sUment units required even in medium-sized countries, let alon.e in large countries like Indonesia, India and Brazil, will requite restructuring in spite of excess capacity of individual mills and investment on a very large scale.

153. Oil proceSSing also requires a large-scale in,~stment effort in most countries, 'but offers an even greater potentlal than grain proceSSing dbes for forward linkages and for a proceSSing shift from the developed to the developing countries.

l54~ The increasing demand for sugar alrea~,evident in developing countries will require the e~ansion in sugar manufacturing and sugar refining facilit,ies in the long run. The volume of inves.t,ment required to raise. sugar growing to anticipated eonsumption levels overshadows the in­vestment required for processing. Public investment may be required to create seme manentum ill the proceSSing industry, particularl~r in countries where sugar growing' and proceSSing are new industries and where the e.ntry of entrepr(3li~urs into processing may not be adequate.

155. Fruit and vegetable proceSSing hold considerable export oppor-tunities for countries which can solve the problem of supplying high quality raw materials regularly and on an adequate scale, and of marketing the final product. It is imporf.iant to recognize that the market demands high ql,lali ty, and that in nta.i'ly products there is already ccmpeti'~ion with producers from developed and semi-industrialized countries. Because of this canpetition there are few opportunities for substituting labor for capital in these industries. The cost advantage of developing countries in food proceSSing lies in:~l'ower wage costs of given tecl'mological 'processes, a.'1d these indus­tries cannot, therefore, be expected to be labor intensive and employment creating. Many countries protecij their markets from imports of processed fruit and vegetables, and both income and price elastiCity in developed countries are low, so markets cannot be regarded as unlimited. Witrdn such constraints, however, there is still considerable room for ~xpansion by deve­loping countries. Private enterprise, including direct investment from abroad, should be adequate for the direct invest~ent naeds of vegetable and fruit proceSSing, but in most developing countries, public infrastruct,ure investment} will be necessary ,to enable the induatr,y to compete with existing producers.

- 48 -

1,6. The growth of demand for milk, meat Qtld fish"j:s likely to 'be re-lati vely slow, and investment for processing these products is not n.eeded on the same overwhelming scale as for the above industries, at least, for the next decade. However, in same countries where conditions favor proc~essing these products for export, there is an argument for speeding their growth. Investment is likely to be most needed not in processing itself but in stock bre,eding and raising and in deep sea fishing to ensure high quali ty supplies, and in transport facilities to ensure the regularity of supply. Pri vate enterprise financing, with some help from development finance institutions, should be able to undertake the investment required in most countries, and direct investment b,y developed countries should also be important.

1$7. Investment and policy strategies obviously var,y not only fram product to product but also from country to country. In countries with ,little commercial processing of, food -- mainly the most underdeveloped countries of Afri.ca and Latin America, but also several countries in Asia the most urgent need is the introduction of mechanized processing. In the very underdev~loped countries this may mean, in the first instance, the installation of ver,y Small processing units which will have a dramatic impact on manufacturing productivity and food availability. In some countries it will release much needed labor for agriculture. In the industrializing countries of Asia, this stage can probably be bypassed and medium and large­scale production units introduced, although in same outlying areas ver,y small units may also be economic for the time being.

1.58. Most industrializing and semi-industrialized c01.Ultries also present opportunities for consolidating and improving existing industries by increasing the scale of production and modernizing techniques to enable by-products to be used. These countries may also be able to take over from. the developed countries same precessing of their own raw food materials, and to exploit the possibilities of food proce,ssing for export. Opportunities for backward linkage to machine production are considerable, particularly for the very large countries and even for so~e of the medium-scale countries in some industries such as grain, oil a..:hd sugar processing.

I

159. The primar,y need in improving the produotivity of food processing industries is for storage, transport and other infrastructure facilities to bridge the gap between growing agricultural output and the need for manu­facturing units of an economic size in food processing. Providing electricity, water, sewerage and urban facilities for those processing industries, such as sugar ptanufacturing or 'palm oi.1 expressing, which are tied to the countrlY'side is particular~ expensive because it creates few external 'eoonomies fram which other industries or consumers can benefit. Sugar factories and palm oil ex­pressing plants do not create ~ nucleus for industria.l growth. More market­oriented proceSSing activities, such as grain milling, which can beestJblished in urban centers, are relatively cheaper to equip with infrastructure facili ti~s. Seconc1y, investment funds will be needed by existing relatively small units to establish and upgrade pl10cessing £aci11 ties, panticularly duting the period before ploughed-back profit$ can provide sources of finance and before commercial banks have become aocustane;d t,o financing such relatively small units. Thtrdly,

- 49 -

and pe r'haps most importantly, the healthy evolution of food processing industries in developing countries requires, a new emphasis and orientation in indlstrial policy. Developing countriest need to evolve policies for improvi.ng the efficiency of their food processing industries in conjunction with t:'ieir particular agricultural development and growing consmnel" needs. l-lost f)od processing industries in developing cO'\ll1tries lack the support which agriculture receives from national and international institutions, anc which )ther industries can obtain in the rom of direct foreign investment and rnanagemept contrac ts . There is some scope for increasing direct foreign investment in the food pro'cessing industries, and, since the indi'ridual enterp.rises are small, for assistance through development finance companies .. These in turn may require not onlY' financial support but also international techn.:i.,I!al aSSistance, particularly if they are to work out pioneer IIpackage deals" integrating processing t-lith storage and other auxiliary facilities.

Tabl,l-1

fOOl) MID B".IU1AC'l'OIIXQI IStDll~!!, - - D1I ,mlJllm PCR

u6 Uft~a ~UNTJtm!llD ;; .I!J9EmPm ctlllftllml

I~T'BL'SHMI·TS COYV.,.I

WORIERS ENGAG!D V A L U E ADD En

~ or all 1. of all thwl "'r ~ of all NUIIl-.r Bank Area and Country !!!t .!!I!!&!!!I (W11t) lIFuillCtur1!!l ( thau!!!!de) lUI1utacturing ~ manufac turing DEVEInPIII1 COUIftRIES

iasterr. .urica

Ethiopia 1962 100llTaON 60 36 n.4 3S 20.7 !!dl. Eth. $ 34 Kell7a 1963 S or IMIrt 157 20 .3.5 7 4,330.0 t.hou. 1. 15 Hal."i 1962 aD1' IlUIIber 36 39 4.0 33 1,8h3.0 thou. Ma1.i 47 Kauritius ~ 1964 10 or lI01"e 65 35 10.3 67 86,.393.0 thou. rupees 79 Uganda 1963 10 or aor. 189 33 8 • .3 22 101.3 mil. shillings 31 Zambia 196.3 any nWllber 60 26 hS h.77 mil. Zambian i 39

Western Af'rica

Gabon ~ 1963 any nUlliber 1.3 23 0., 11 3h7.0 mil. francs CFA 8 Ghana c 1962 .:t7 nlllllMr 27,.3.35 29 39.7 16 4,019.9 thou. II 2Q Ivory Coast ~ 1963 .:t7 n~ 62 19 3.3 17 3,809.0 !!dl. francs CFA 24 Nigeria 1963 10 or Mre 108 17 9.3 lh 20,934.0 thou. II 1(;

~ (10 or 1MIrt, ) ,

&.!ma 1960/61 (urban areu onl.7) 1,015 35 hS.8 33 113, 7:<~.O thou.OS S* 22 Ceylon a. 1963 ; or lION 134 21 " .4 21 11$1.2 JIIil. rupees 1:-India 1962 50 or IlOrt 2,028 22 398.9 13 1,237.3 mil. rupees 11 Iran t!. 1963/64 an.T nWllber 14,085 1.3 76.5 18 8,348.0 !!dl. rials 21 Pakistan 1962/63 20 or IIDre 516 15 5(1,7 9 549.9 !!dl. rupees Ie

~

China (Tablan) 1961 wq nUJlbIll' 14,769 28 ~5.2 21 5,106.4 mil. N.T. $ 26 Indonesia * 196.3 10 or Mer. 11,676 .35 21.7 2S not Ilvailable 34 Korea (Rep. of) 1963 5 or lION 1,90.3 21 51.9 13 11,085.1 mil. lion 18 l4al~~ia a 196.3 any IlUIIber .3,1.39 35 21.8 22 19,597.0 thou. US $ * 19 Philippines 1962 20 or IIiorc 470 22 S6.4 25 24u,360.0 thou. US $ .. ,3/j Singapore 196.3 10 or IICK" lJ~~ 4~ 4~:~ 16 14,027.0 thou. us $ * 19 Thailand * 196,3 10 or lION 32 77,520.0 that. us $ 33 Vietn.am 1960 any nWilber 3,248 44 21.0 35 not available

Eur2I!e I Middle s.at and Hort~ Africa

Cyprus 1962 ~ nuaber 1,24.3 ,0 5.4 18 3,889.U thou. Cy. ~ 3/j Iraq 1963 10 or acr. 201 19 10.9 16 6.2 mil. dinars 18 i~~:n Lh. 1963 5 or aore 1,.367 27 7.4 29 2,067.0 thou. dinars 23 1964 any n-.r 1,199 15 4.4 16 .3,158.9 thou. Lib. t 2$ Malta 1963 .3 or aore 365 3.3 3.0 29 1,705.6 thou. }: 36 Turkey 1962 10 or IIOre 874 122 46.7 15 1,387.9 mil. Tur. l1ras 2Q UAR LL 1~~ 10 or lION 1,439 '36 84.2 20 h3.7 !!dl. Emt t- 'I Weatern Hemisphere !.L.

Ar,entina 19$7 11 or aore 1.755 'S 17.3.0 18 13,6ul.7 JIIil. pesos '9 ..... f. Brazil ~ 1963 lite now J!. .36,462 34 292.9 16 579,.360.0 mil. cruzeiros 17 Chile 196.3 10 CIl' lION 938 26 42.7 19 347.6 mil. escudOll 21 Colombia 196.3 5 or aON 3,114 26 56.9 20 2,535.1 !!dl. pe~os V DoJ!liniollll Republic 1962 any nllllber 765 35 70.7 83 223,290.8 thou. pesos 73 Ecuador 1963 7 or .. are 230 36 11.0 34 674.5 mil. Bucree L7 E1 Salvador Ll 1961 11M not4!La: 10,309 53 49 • .3 56 135,296.5 thou. colones 53 Honduras 1963 5 or IMIrt 167 .33 6 • .3 40 21,245.0 thou. lelllpirf,B 44 J,amaic/l 1960 .,lIIIII!ber 2,9S5 13 20.2 26 16,900.0 thou. ,. 147 Mexico 1960 ..., m.ber 39,993 40 2.38.4 25 5,629.7 mil. pel!!OS 25 Panllllla 1961 .:t7 !lUlllller ',~~ 26 5.5 37 25,221.0 thou. blllboas 119 hragupy 1953 .:t7 nllllber 26 11.2 32 2,149.6 l'lil. guaran{es /jl Poru 196.3 5 or 110 ... 1,298 31 h9.9 .31 5,51.3.h mil. 1501es J? PUerto Rico 1963 .:t7 nllllber 471 21 21.; 22 169,600.0 thou. US $ )C Urugu~ ~ 1960 lIlY nUllbtr 6,195 22 51.9 27 2,278.7 :ii: b~~rvare8 ;15 Vctnezuela 1953 ...,. IlUIIber 6,197 39 '/6.7 56 U71.) :;8 r

DEVgLOPEDCOOIITRlPS

Orii ted States 1963 one 01' 110'" 36,569 i2 1,612.0 10 21,336.5 mil. us $ 11 Un! ted Iingdolll 196.3 one CIl'II: .... 9,153 I.!! 10 702.2 9 1,130.0 mil. 1. 1,,) France 1962 one or aor. 59,357 22 4.35S 9 n.a. n.ll. 10 or lIIoreLR, 6,325

France(.,ages and nlaries:3,657.0 ",11. n/lv trancs /0 8) Germany 1963 12 1161. 7 6 37/266.2 mil. D~ 13

For footnotllf, llee next page.

Table I-I, Page 2

/a 7b

L!L /d Ie

* ( .

Mauritius' figures include tobacco. Gabon includes chemicals and printing and shows gross output for value added. Firms covered are all those which kept books. . Ghana shows value added figure for firms employing )0 or more workers, since no value added figure for all firms is given. Ivor,y Coast value added includes tobacco manufactures. Number of firms given for Ceylon is 19,1 figuTe, 1963 data give only total industrial establishments, which had increased from 692 in 19,1 to 740 in 1963. Under value added, figures are for gross output. Iranian national petroleum plants are not included in manufacturing total. Malaysia figures do not include processing of agricultural products on estates (tea factories, rubber processing, copra kilns and palm,oil milling). Jordan includes tobacco manufacturing. In Egypt, manufacturing excludes cotton ginning and pressing. Recent Bank report tables give more up-to-date value added figures for the following Western Hemisphere countrie~.

Country Year Value Added value ~ of all manufacturing

Colombia 1966 1,785.5 mil.pesos 31 Costa Rica 1967 275.0 mil.colones 32 El Salvador 196, 1,1.0 mil.colones 44 Guatemala 1967 60.9 mi1.quetzales 29 Guyana 1965 n.a. 70 Jamaica 1966 19,467.0 th.Jam. i 44

For Brazil, number of fims is taken fr.an 1959 data covering all fims and small-scale activities. No value added figure is given for this year, so value added figure is taken fran 196), covering fims wi th 5 or more workers. Number engaged is also for 1963. . . El Salvador includes firms with production or sales value of 1,000 colones or more. Urugu~ gives gross value of production under value added. 1958 figure; none given for 1963. The figure given includes food, beverages and tobacco •

. Smaller units are included where they account for a significant part of production. Gross receipts.

Taken from H. Hughes, Industrialization ;.1n Southeast Asia, in progress.

United Nations Statistical Office, The Growth or World Indust~, 19'3-l~651 National TableS, New York, 1967. . For Indonesia and Thailand, H.~ughes, Industrialization in Southeast IAsia, in progress.

For Data in footnote j, recent Bank countr,y reports.

'.'

; I,

Table !I-~

:JHUT .§Utl:. AAL ltI,;~ ?tOLUc:rION I SUPPLY AND CONSUMPTIOt: IN 35 LEVElQP LNG ~O~!tLES~~J~ ~~

~

fa PRODUCTION SUPPLY AVAILABLE LOCUIY ? E rt CAPITA C;:lNSUHPTION

Wheat. Maize Rice Wheat. Maize .tic~ ,lheat Maize :tice J, of tllese in total

Area and Counu" (thousand metric tons) (thousand mt:tric tons) (Idlogl'ams per year) cere'll consl!IlIpt.ion_

hat.ern Af'rica

Ethiopia 255 670 257 670 1 8 .• 0 23.0 21

MlUaiuy Republic 7t1 1,466 16 77 1,395 2.8 10.4 145.4 'J')

Mauritius 22 l/liS 63 33.0 0.1 95.8 9'i Sudan 29 15 3 115 15- 9 8.2 1.0 0.5 86 Uganda 127 5/Jis 22 1111 15 2.5 11.2 1.5 26

Area Total: ~ §2Q 1,414 ~ ~ , ,483 ~: J..Q:2 2..:.l 48.6 M

South Asia

AIilWUstan 2,279 100 )19 2,)16 700 319 116.6 40.6 1).4 99 Ceylon 9 947 19) 11 1,649 16.9 0.9 105.2 98 India. ",298 4,)2) 5',011 14,725 4,)23 52,012 26.6 6.9 71.1 15 IrUi 2,92) 709 ),.389 715 117.3 21.8 91 Paldstan 3,950 476 15, 70s- 5,096 418 15,847 43.8 3.8 101.0 96

Area TOtall ~ 2.a2!Q 66.751 ~ ~ ~ ~: 65.0 12:2 ~ 2l

I!!U!!! China (Taiwan) 44 28 2,006/H 341 34 1,900 22.2 1.2 135.5 99 Phillppil»a 1,232 2,536Z! 315 1,225 2,596 9.0 21.6 87.0 100

ltiddle Eut ADd Worth .urtca

Iraq 845 2 100 889 2 198 94.5 0.2 17.2 86 Jordan 98 1 146 2 21/H 62,,3 10.) oS 54 Lebu<ll1 61 13 26) 28 177M 103.1 6.6 8.7 96 LibJa 33 2 130 2 127M 82.7 OS 8.3 77 S1r1a 662 8 1 762 14 4671i 114.1 1,2 6.4 77 tura.r 8,450 1,090 110IR 9,0!!3 1,101 1U- 188.0 '5.3 3.3 93 lJ.J..R. 1,509 1,770 1,550 2,713 1,933 1,280 83S 60.5' 30.6 88

Area Total: 11.658 2.886 1.761 1),946 3.082 1.667 ~: l.Qlcl 1M 1.2:1 ~

WesternH.mapbere

Arpntina 4,965 4,126 114 2.965 JloliYia. 61 251 41 176 Brazil 646 9.096 5,~Jt,INS 2.695 Chile 1,103 151 1.231 ColOlibia 131 1,)43 536 251 COllta Rica 514 35 36 Ecuador 66 152 1Jh/H 116 n Salvador 231 217is 34 GllaUMla 26 563 14- 80 H<Il1duras 1 279 22 21 Maico 1.364 5.881 322 1.374 Panua 10 104 23 Puqua}' 9 125 11 90 Peru 154 346 360 553 SuriIlaa , 17 9 Urupay 325 151 58 390 Vener.uel& "211 596 l41L!!!!.. 545

Area Total: 9,010 214,022 1,1411 10,591

t:!.- F.qual~ proauction aC:ju~ted for change In stocks. ?lus ilIIport.s less exports

llote: .,'heat and corn include grain a.Nl flour, and rice is paddy rice except where indicated:

In - hulled rice 7ii - millea rice ~ - flat specifieo 7F&ii - ~accy and --:i!letl ~l ce \ ;j"IlE'z::ela only)

2.490 165 251 46

9,094 5,152 ,61 106

'.356 5146 51 34

1,2 111 255 ,31 571 1h 258 23

5,761 302 13 106

"3 11 356 312

1 h6 156 41 585 152

21,684 7,266 ~:

~: rood anc Abr:.cultural Organization -:>1' the ilnited r:at!.on::, rooo Balance ~neets - 1 '0 .. -(:2 ""crage, .t;l:r.e 1;l66.

81.1 h.2 100 ,38.0 43.5 1.5 91 21.3 36.6 44.1 99

109.6 0.4 1.9 98 10.14 )4.6 19.5 86 30.2 26.4 26.0 99 18.3 23.1 20.4 :70 11.1 89.4 1.1 63 14.6 121.1& 2.1 9'7 6.9 83.4 7.0 93

22.8 99.2 5.4 100 20.1 26.0 52.8 99 36.9 ,32.9 5.6 100 )6.2 26.8 2).6 87 32.4 1.9 70.9 99 89.5 0.8 9.1 100 )6.6 )9.1 8.7 91

ill ~ .!.2.:.Q 22.

~,'

Table II-2

RICE MILL ING IN 22 DEVELOPING AND 3 DEVELOPED COUNTRIES IN 1964

Area and Country

DEVELOPING COUNTRIES

Eastern Africa Malagasy Republic Tanzania

Western Africa Gambia Nigeria

East Niger'ia

. South Asia Burma. Ceylon India Pakistan (West)

East Asia Cambodia China (Taiwan) Korea Malaysia Philippines Thailand Vietnam

Middle East and North Africa

Iraq Morocco

Western Hemisphere Colombia Cuba/d Guyana Mexico Surinam

DEVELOPED COUNTRIES Australia Italy U.S .A.

Total. NlDIlber ot Rice Mills

259 35L!

3 400& 230

2,OOO~ 1,100

44,057 1,583

1,440 327

18,391 450/c

8,100-14,099

2,018

91 7

346 317 207 12 236~

5 470

55

Months/Year in Operation

n.a. n.a. 10

6 7

n.a. 6

n.a. n.a. n.a.

8 n.a.

5 6

n.a. 10

10 n·a. n.a. n.a. n.a.

10

11

/ a Reporting mills only LQ. Preliminary est1.mate Tcec 1954 estimate 7d 1956/5'7 7e Excludes one large mill owned by the Wagen~en Rioe Scheme

Source: FAO Rice Report, No. 16, 1965, Table 13.

Tons Milled per Mill in 1963

494 n.a.

n.a. 420 195 138

n.a. n.a. n.a. n.a. n.a. 357 481

n.a. 2,710

962 n.a. n.a. n.a. 161

16,000 817

40,418

TABLE II-3

FLOUR MILLING IN .32 DEVELOPING COUNTRI&<3

Number of Mi11a Milling less RUling more Percent of than 30,000 than 30,000 capacity

Region and Country !!!!: metric tons IY1·. metric tons Iyr. Total in use /1 -Latin America

Wheat Producers 548 Brazil 1962 491 57 30

Chile 1964 148 5 153 48 Colombia 1964 8, 2 81 31 Ecuador 1964/65 24 2 26 48 Guatemala 1964 18 18 70 Mexico 1964 220 220 43 Peru 1963 11 4 15 70 Uruguay 1963 31 4 35 n.a.

Not Wheat Producers El salvador 1964 2 2 65 Honduras 1964 4 4 45 Nicaragua 1964 1 1 12 Venezuela 1964 11 3 14 79

Africa io/heat Producers

Algeria 1961 48 6 64 60 Ethiopia 1964 10 10 80' Kenya 1963/64 9 2 11 73 Morocco 1964/65 41 5 46 16 Tanganyika 1963/64 3 1 4 70 Tunisia 1963 20 20 12

Not ~beat Producers Ghana 1965 1 1 n.a. Ivory Co;ast 1964 1 1 70 Nigeria 1964 1 ~ .58 Senegal 1964 2 2 67 Uganda 1963164 2 2 100

Near East ltJheat Producers

Iran 1963 45 45 60 Israel 1963 16 4 20 60 Lebanon 1962 1 2 ) 100 Libya 1964 1 1 (> 42 Turkey 196~ 2$0 15 265 near 100 U.A.R. 196) 20 .3 23 near 100

Not ~'1heat Producers SUdan 1964 1 1 100

Far East :Vheat Producers

India 1964 n.a. nO/a. 147 85 Pakistan 1962 48 14 62 60

Non-~-Jheat Producers Philippines 1964 7 7 n.a.

/1 Found by dividing installed capacity (based on a 24-hour day and 300-day year of wheat input) by annual wheat ~nput.

Source:

... ,

..

Table III-1

Oils and Fats Production, Supply and Consumption in 35'DaJ!lopiDI and 4·D.v.1op.d~ountrie8z·1960-62

Area and Production Supply Available Country (thousand Loca11yL!(thousand

metri 0 tons) metric ton s)

DEVELOPING OOUNTRIES

Eastern Africa Ethiopia 146 147

vegetable 011s ~ 9b other 50 51

Malagasy Republic .l 6 vegetable oils 3 5 other 1

Mauritius t soybean oil other 5

Sudan 102 97 vegetable oil 75 09 other 27 26

Uganda 22 !2. cottonseed oil m 10 other 4 4

South Asia Afghanistan ~ ~ vegetable oils

other 5 5

Ceylon ~ 251

capra 207 coconut oil 127 43 other 1

India 1,946 r.m groundnut oil 1,10 1,083 other 865 863

Iran l2l 181 vegetable oils 92 107

. other 61 7h

Pakistan ~ ~G8 ghee 3 2 rapeseed and mustard oil 99 99 other 75 97

Per Capita Consumption/b ( kg/year)

4.9 3.b 2.4

1.1 D.9 0.2

12.4 T.O

7.1

H .1 2.2

2.1 1.5 0.7

0.8 0":5 0.3

.l:§.

3.5 0.1

H 1.5

6.6 379 3.1

H 1.0 1.0

<-

Oils and Fats Production, SupplY and Consumption: - (page 2)

-,'

Area and Production , Supply Available ~er Capita -Country (thousand Locally L! (thousand ConsumptionL2.

matri c tons) metri c ton s) ( kg/rear)

East Asia China (Taiwan) ~ 2k 4.6

lard 20 W soybean oil 13 17 other 16 17

Philippines ~ 73 2.4

shortening and margarine 09 2.5 . other 3 4 0.1

Middle East and Horth Africa k!.q H ~ H vegetable oils 17 . 2.

other 8 8 1.3

Jordan 10 II 10.0 olive oil 9 9 T.3 other 1 8 4.7

Lebanon II U 11.6 vegetable oils 9 10 572 olive oil 8 8 4.1 other 5 2.7

Libya 6 11 7.2 olive oil 0 -0 -4.2 other , 3.1

Syria 2.Q. ~ H cottonseed \' oil 30 other 20 2, 5.3 ".

Turkey ~ ~ 7.9

butter 3'li" olive oil 79 79 2.0 other 79 99 2.,

U.A.R. 117 146 H shortening 105 ill other 12 24 0.8

Oils and Fats Production, SUpl)lY and Consumption: (page 3)

Area and Production .SUPP17 ATailable Per Capi ta Country (thousand Loca1lYL!(thousand Consumption/b

metric tons) metric tons ( kg/year) -

Western HemisEhere Argentina m J.2!! 15.1

sunflower seed oil 113 8I other 2n 181 8.3

Bolivia 2- 18 4.7 animal fats 2 11 2:]" other 3 1 1.9

Brazil m 644 1.7 vegetable oils 296 3.3 lard and bacon 216 216 3.8 other 12 12 0.9"

Chile 1§. 62 1.4 vegetable oils 23 38 4.7 other 13 24 3.1

Colombia 68 91 2..:.2. slaughter fats IT I3 2.0 cottonseed oil 20 20 1.2 other 31 44 2.4

Costa Rica 6

* 1.0

palm oil r 4.1/c other 2 , 2.,-

Ecuador 7 14 3.1 vegetable oils ~ IT 2.7 ot~er 2 2 0.5

Guatemala 8 12 2.9 lard and animal fats I! 7 1.7 other 4 5 1.4

Honduras 10 9 II butter U 4" 1.9 coconut oil 4 3 0.9 other 2 2 1.2

Oils and Fats Production, SUpply and Consumption: (page h)

~ea and Production Supply Available Per Capi ta Country (thousand Locally/ a( thousand Con sumption/b

metric tons) - i...!&/year ) metric tons

Mexico 388 401 ~1.0 vegetable oils 22b 23B" b79 lard and animal fats 162 163 h.l

Panama 6 9 7.4 vegetable oils 5 5 L:4 other 1 4 3.4

Paraguay 10 9 h.B tallow 3" '3 1.7 coconut oil 3 3 1.6 cot tonseed oil 1 2 1.0 palm oil 3 1 0.7

Peru 2£ BO 7.3 ---vegetable oil 29 39 ).'B"

other 21 41 4.0

Surinam 1 3 10.2 coconut oil I 2" b.1 other 1 4.6

Uruguay h2 42 16.0 animal fats 21 2b lo'I vegetable oils 1, 16 6.2

Venezuela 1Sl ~ 9.7 vegetable shortening 33 33 4.4 sesameseed shortening 22 22 2.9 other oils ," 1, 21 2.9

".

DEVELOP~D COtJl!t'RIES

France 773 l'~t 22.3 vegetable oils -:w ro.r butter 332 300 6.L slaughter fats h03 354 ,.3 marine oils 31 0.5

Gennany 742 lah44 ~ butter 379 07 7u2 animal fats 321 339 6.0 . vegetable and marine oils 42 698 12.3

-.

Oils and Fats ProdjictioD, SupplY and Consumption: (page 5)

'Area and Production .Supply Available Per Capita Country (thousand LocallyL!(thousand ConsumptionLE.,

metric tonal metric tons ( kg/year)

United Kingdan ~ 2a~~~ 22.9 butter T.2 margarine 281 213 5.1 lard and refined

animal. fats 52 219 4.1' other 528 1,605& 6.5

United States HU ~ 20.6 vegetable shortening 1,12 1, 1: 5':9 vegetable oils 4,Oh6 2,651 5.2 margarine 178 770 4.3 ' butter 688 606 3.4 lard 1,143 891 3.4

L! Equals production adjusted for change in stocks, plus imports less exports

/b Total per capita consumption is in terms of pure fat content, and therefore will not always equal the sum of the oils listed.

L£ Includes vegetable oils

IS Consists of vegetable, marine and animal. fats used in manufacturing

Source: \' Food and Agricultural. Organization of the United Nations, Food Balance Sheets - 1960-62 Average, Rome 1966

Crops

Olive oil Palm kemels Palm oil Soybeans Groundnuts in shell Cottonseed Linseed HemPseed Rapeseed Sesame seed Sunnower seed Castor beans Tung oil Copra

Total

Table III .... 2

VEDETABLE OIL CROP PRODUCTION BY REGIONS, 1966

(in thouaand metric ton.)

Europe

1,049

20 22

480 203 17

1,344 7

1,547 26

North America

1

25,538 1,093 3,592 1,153

586

18 22 11

4,715 32,014

Latin !!!!:!!!!

13 243 31

772 1,526 2,990

672 3

78 312 935 375 28

236

Regions

S 427

2,279 .36 4 7

203 203

31

78 332

1,0.34 5,821 3,olb

349

1,669 546

128

2,868

Africa

54 752

1,014 28

4,703 820 68

6 130 153

51 2

92

Source: F.A.O. Production Yearbook, 1967.

Oceania

31 35 19

2

258

World Total

1,317 .1,074 1,377

27,397 13,623 13,210

2,500 24

3,690 1,198 2,858

633 41

3,454

72,395

TABlE IV-I

Producticm Consumption Per Capita 1 967 Retail Price OlE

1966 1966 Coneumptiom pound white refined Area tp'ld (thousand (thousand 1966 in US ; Country metric tonal metric tonsl Usslvearl DEVELOPING COUNTRIES

Eastern Atrica

Congo (Dem.Rep. of) 35.0It 41.5* 2.6 Ethiopia 54.6 79.6 3.5 Kenya 35.6 121 .4 12.6 Malagasy Republic 115.011- 45.011- 7.0 Malawi 3.4 19.OIfo 4.1 Mauritius 561.8 29.0 38.2 4.4 Somalia 34.6 34.5 13.3 Sudan 26.4 175.5 12.6 20.1 Tanzania 71.0 71.0 6.6 10.5 Uganda ... 127.5 10,.2 13.6 Zambia 25.OIt 6.5

Western Afri ca

Cameroon 11 4IOtt 2.0 21.7 Chad 18.1 5.4 24.8 Congo(Brazzaville) 57.1 3.0 3.6 Dahomey 1.Ott 2.9 Gabon 1.&t 3 .. 8 Gambia n.a. 12~9 7.0 Ghana 68.2 8.6 Guinea 15.0.- 4.2 Ivory Coast 32.0.- 8.0 Mali 29.0. 6.2 18.4 Mauritania 25.0. 23..4 14.5 Niger 1.2ft 2.1 Nigeria 6.5 83.Ott 1.4 14.0 Senegal 44.Q 12.1 Togo 8.1 4.8 Upper Volta 10.0. 2.0 1).8

South Asia

Afghanistan- 10.0. 51.a. 3.,,1 Burma 69.Ott 119.0. 4 •. 7 Cambodia n.a. 3.2 21.2 Ceylon 10 • .3 223., 19.4 14.0 India 3,632.9 3,140.6* 6.3 1.9 Iran 355.6 580.0* 24.3 14.4 Pakistan 525.2 521.1 5.0 13.9

See end of Table far notes.

Table IV-I: Sugar Product~~n, Consumption and Prices (page 2) .

Area and Per Capita (/f Country Production Consumption ConSumptid;'l Retail Price

East Asia T ,,'

China (Taiwan) 954.3 147.8 11'.6 13.2 Fiji 304.8 18.7 39.2 7.9 Indonesia 650.01- 610.OM- 5.7 Korea (South) n.a. 67.9 2.3 16.8 Laos 2.5* 1.2 Malaysia (West) 240.5 26.6 Phil~ppines 1,442.8 528.0 15.8 8.4 Singapore 92::7 48.5 7.2 Thailand 211.0 213.8 6.8 7.9 Vietnam (South) 80. OM- 4.8

Middle East & N9rth Africa

Algeria 2.3 262.1 21.1 Iraq 3.1 260.D* 35.3 8.3 Jordan n.a. 20,.6 4.4 Lebanon 8.OM- 55.OM- 23.0 Libya n.a 19.1 6.4 Morocco 49.7 311.8 27.6 17.3 Syria 22.3 98.4 17.9 11 .9 TlUlisia 6.1 18.3 11.6 Turkey 6,4.2 592.7 18 .• 0 13.1 U.A.R. 350.D* 543.OM- 18.0

Western HemisEhere

Argentina. 1,035.0 899.8 3~.6 T' Barbados 174.5 13.4 54.8 11 .1 Bolivia 81.6 90.4 24.1 Brazil 3,851.6 2,147.0 32.4 6.6 British Honduras 44.7 2.9 26.3 7.0 Chile 116.2 344 • .3 3~.1 Colombia 531.4 409.7 22.0 Costa Rica 120.0.- 70.Otf- 47.1 Cuba \" 4,866.1 .541.5 69.1 Dominican Republic 691 .4 113.2 3Q.2 Ecuador 180.OM- 103" 1* 19.4 34.9 El Salvador 106.6 63.0* 20.7 9.9 Guatemala 164.1 107.4 23.1 7.9 Guyana 293.5 24.6 31..1 Haiti 68.OM- 40. OM- 8.9 Honduras 40.0 36.8 15.6 Jamaica .508.2 79.4 43.2 9.7 Mexico 2,251.1 1,554e7 )5.2 5.6 Nical'agua, 107.0. 10. OM- 41.0 Panama 45.OM- 32.OM- ·24.9' Paraguay 36.0 36.0 48.9 Peru 814.0 342.4 28.5 6.1 Surinam and Neth. Ant. 18.4 18.6 29.4

Table IV-l: Sugar Productioll, Consumption and Priceapage 3)

Area and Country

Western HemisEher e

Trinidad and Tobago Uruguay Venezuela

DEVELOPED COUNTRIES

France Germany (West) United Kingdom U.S.A.

WORLD: TOTAL: of which

- negligib Ie * - est~ate

beet cane

n.a. - not available

Per Capita Production Consumption Consumption

213.8 4h.3 44.3 55.0*- 113.D* 41.1

369.9 320.6 35.5

2,321 .81 a 1 ,771 .O/b 35.8 1 ,917.1 2,165.9- 32.1

936.0 2,904.0 52.8 5,621.6 9,624.1 48.0

6~1023.3 62,301.2 AVERAGE: 18.7

27,715.1 36,338.2

Retail Price

10.1

13.1 14.0 9.3

12.2

1.76 /c

~: Figures are expressed in centrifugal sugar, raw value. Therefore palm sugar and panboiled sugars such as mUBcovado, jaggery and katyanga, all important items of consumption in South Asia and Africa, are not included.

fa Including Overseas Department 7b Metropolitan France only. Z£ New York world price, contract, r.a.s. Cuba.

~2!.: International Sugar CounCil, 1966 Sugar Year Book.

Table·V - 1

FRUIT ,AND VIOITABLiC PRD1JJCTION~PPI:l AND CONSUMPl'ION IN j2 DlVEIDPING AND 4 DiVEU> COUNTRIES, 1960=62

SUPP'13 Avail- Per Capita Area and Country Produ.ction able Local Cons'WIlEtion

\thousand thousand metric tons) metric tons) (kg/year)

DEVEIOPING COtJNTRm~!

EAstern Africa

Ethiopia 338 324 14.3

Malagasy' Repub11.:: 321 324 ,2.4

Mauritius 19 21 36.4

Sudan 71, 711 ,7.,

Uganda 209 20, 29 •. 2

South .lsia

Afghanistan 1,123 9,4 48.6

Ceylon ,40 621 ,0.9

India 11,780 11,713 '20.3

Iran 1,333 1,256 44.8

Pakistan I.!:. 2,781 2,181 47.5

East Asia

China (Taiwan) 1,21S 1,047 19.3

Pbil~ppine8 2,0,4 2,011 6,.0

Middle last and Horth Urica

Iraq 1.,089 912 126.3 ..

Jordan ,71 505 230.1

Isbanon 702 602 261.1

Libya 157 16, 68.6

Table V - 1: Fruit and Vegetable Production. Supply and Consumption (page 2)

Supply Avail- Per Capita Area and Country Production able Locally Consumption

Syria 1,071 1,046 175.4

Turkey 8,423 8,365 180.6

U.A.R. 4,775 4,563 154.5

Western Hemi~here

Argentina 5,040 5,023 127.6

Bolivia 500 496 116.3

Brazil 8,215 7,924 95.1

Chile 1,191 1,143 140.4

Colombia 1,191 1,006 49.7

Costa Rica 604 388 258.4

Ecuador 2,572 1,543 135.2

El Salvador 76 80 27.2

Guatemala 67.1

Honduras 890 500 215.5

Mexico 3,248 2,956 75.2

Panama 502 243 128.4

?a.~aguay 303 197 159.2

Peru 1,780 1,792 173.5

Surinam 18 12 40.9

Uruguay tE. 365 390 91.0

Venezuela 749 774 86.4

DEVEIDPED COUNTRIES

France 10,036 11,339 212.1

. Gennany 5,487 9.,213 146.4

Table V - 1: Fruit and Vegetable Production, Supply and Consumption (page 3)

Area and Country

Un! ted Kingdcm

Uni ted Sta tea

Production

3,771

27,546

Supply Avail­. able Locally

6,530

26,641

~ 1951/58 figures given for per capita consumption.

~ Rough esttmates for production and consumption figures.

Per 'Capita C on sump ti on

105.0

174.5

~: Vegetables and fruits are fresh unless specified otherw1se,processed foods are listed separately whereve~ the source provides separate figures.

Source: F. A. O. Food Balance ~neets, 1960-62.

Table V - 2 -Exports ot carmed. Fruit and Veetable~ by

Major _orting Countries, 1966

Area am Count17

East9rn Afri ca it8D1'a Sudan

Area Total

Western A1'ri ca CIlana Ivory' Coast Higer Togo

Area Total

East Asia and Pacific Ie CbiJi& (Tar.an) -Hong IoDg Japan Fhilipp1nes Singapare Th!dlBDl

Area Total

Exports (thousam

metric tons)

6.8 9.1

lS.9 -2.7

26.9 0.5 0.2 L2.

~

140.3. 18.8 80.9 58.1 17.5/d

172.8 -

488.4

EurxSa: Mlddle last au:! North Africa I.!l a . 20.6 t.!

Oreece 42.9 Israel 74.1 Ital1' 395.7 Jordan 1.4 Horocco 73.S ,ortugal 66 .7 : Spain 210.7 Syria 2.2 Tunisia 27 .1 U .A.R. 5.8 IUgoslavia 45.2

Area Total 985.9 I

Table V - 2:: _. EEporteof Canned Fruits aDd Vegetables ••• (page 2)

EEports (thoWlam

Area and Country _trie tons)

Western H8IIisl!!!ere Arpntliii ~.o Jauiea 20.2 Hu:1.co 8,.6 TriDidad. aDi Tobago 13.6 lJDited States (g)

Area Total 124.4

TOT~ 1,644.9

~ SITe cmaoditles 0.$.3 (Fruit, prepared or preserved) and 0.$.$ (Vegetables, preserved or prepared).

~ Consists of sago, sago flour, ..moe and tapioca.

t!:. Mal.qsia. exported 44.7 lli11ion Malqan dollars worth of prepared .tr1t1ts in 1966J siDee weight figures are DOt given for 78&rs 1Dclmeci, IIalqsia is OId.tted fro. the 'able.

& Sinlapore's exports of prep&red fruit are valued at .$4.3 m:l.ll1.on Malqan dollars, but DO wight figures are given. 'l'hie figure, therefore, onq includes prepared Tegetable exports.

&. South Africa gives no weight figures but exports of prepared fruits and vegetables are valued at 44.53 million rands in 1966.

If 1963 figure, termed "vegetable preparations". (not classified by SITe categories)

. . I.B. Weight not given; value given as $113.4 million.

Source. U.N. Yearbook of International Trade Statistics, 1966.

-.',

TABLE V.- 3

, .'tmport.orc.tmed ,,"it. ad·. V.ptableaL!.

by Major Importing Countries, 1966 .

,Area and Countrl:.s

EI.~stern Africa

Imports (thousand metric tons 1

Congo (Dem. Rep" 01' ) Sanalia Zambia

Area Total.

Western Africa

Cameroon Central African Republic Chad Congo (Brazzaville) Dahomey Gabon Iyo17 Coast Mali Niger SeIIegal. Togo Upper Volta

Area Total

East Asia and Pacific ~

China (Taiwan) Hong Kong SiDEapore

Area Total

EUrope, MldcUe East and North J.tr.lca

Gemat11' Icel.and Iraq Kuwait I4b7a Swaden United Kingdom

Area Total

0.7 /b 0.3 -0.2 0.9 1.) 0.9 3., 0.2 0., 9.) 1.2 0.6

o.s ,1.6 37.0~

89.1

aaS.7 1.7

U.S /b 9.8 -8.1

,2.0 ,67.0

1.flS,a

Table V - 3:- Imports or CauDad Fruits uid V.set&blesLa : (page 2)

Area and Country

Western H8Id.sphere a Dard.nican Republic Chqana Panama

Area Total.

Total

I90rts (thousand _trio tonsl

2.5 0.6 5.0 tL

SITO cOJlllodit1es 053 (trait, prepared or presert'ed) aDd 05S ('Yeg.table., preaerYed or prepared).

196$ tigure.

Papua lists $188,000 (.lutra11u dollars) worth ot proc ...... frIl1 t '1IIp0rts, bat 1s Dot listed •• DO ve1ght tigan 1s gi",en.

This doea not include proc.ssed tra1t iJlports, 'Yalue4 .t $S8.9$ Dd.llioD (MalaJall dol.lars), as DO weight figure is gt",.n. The 37 thousand tons ot processed 'Yegetables listed are 'Yal .. ed at $21.41 mllion.

Cll:Dada g1 'Yes no .eight figures, bo.t her illports ot prese"ed tnt t8 were valued at $60.7 1I11l1on (Canadian dollars) in 1966.

1964 figure.

\'

Sources U.N. Yearbook of International Trade Statistics, 1966.

~ .. '. .

TABLE VI - 1 /a

MILK PBODUCTIONa SUPPLY AND OONStHPTION- IN 36 nlVItbPIIJ AND 4 lJ!iV1!l5Pln "l)YIfttIs :r9~-o2

Area and Production Supply Available Per Capita

Couatry (thousand Locally ConsumPtion .tric tons) (thousand metric tons) (kg/year)

DEVELOpma COUNTRIES

Eastern Africa

Ethiopia 2,726 ~ 82.1 Whole milk 1,930 1,91 m Skim milk 6So 650 21.7' Other 146 146 7.0

Malasssl ReEublic ~ ,ll W Whole milk 29 '29 .0 'Products 4 0.7

Mauritius 21 24 36.8 Whole milk 21 21 32.2 Products 1 1.9 By-products 2 2·7

Sudan ~ .2'ID 92.1 Whole milk 32·3 Camel milk 400 400 )0., Other 253 253 --Skim 350 .350 26., Cheese 35 .35 2.8

Uganda ~ ~ 20.3 Whole milk 2 3 20·3

South Asia

AfgAanistan l'g~ l'g~g ~ Sheep milk o. Whole milk ,00 499 32.5 Other . 123 123 8.0 ..

Ceylon 92 108 10.7 Whole milk 10 70 T.9 Buffalo milk 22 22 2.2 By-products 16 1.6

India 20a~)~ 211~1~ 47.2 .' Buffalo milk 11, .3 11, 3 2b.2

Whole milk 8,542 8,.922 19.7 Goat milk . 559 559 1·3

See end of table tor notes

, ,

Table VI-I: ·Milk Production, Supply'and Consumption (page ?)

Area and Per Capita Country Production Supply Available Consumption

South Asia ( continued) ','

Iran 2,770 2,787 5°.9 Whole milk 900 ) Sheep milk 540 ) 1,831 12.8 Other 375 ) Skim milk 880 880 34.4 Cheese 75 76 3.7

fakistan 1~,38.3. 11,38) ~ Buffalo milk ,719 5,719 23.4 Whole milk $,014 5,014 45.8 Goat milk 650 650 6.7

East Asia

China (Taiwan) f 17 ~ Whole ,milk ~ 0. Powdered milk 12 0.8

PhiliEEines .2 347 ~ Dried skim milk lb7 .9 Evaporated milk 91 3.2 Other milk and products 9 89 3.4

Middle East and North Africa

k.!9. 501 511 M Sheep milk 200 210 Whole milk 168 168 26.4 Other 133 133 19.6

Jordan 48

* 27.7

Sheep milk ~ 10.1 Goat milk 17 17 9.6 Whole milk 10 10 4.5 Other milk and products 3 6 3.5 ..

Lebanon ~ ~ 41.2 Cow, goat and sheep milk 33.8 Products and by-products " 12 7.4

Libya l- 48 M Whole Milk ~ 32.) Products and by-products 3 2.2

'. " .. ;

Table VI-I: Milk ProductioD, SUDD1Z and COll8uJllDtion (page 3) Per Capita

Production Supply Available Consumption Middle East and North Urica (cont)

Syria ~ ?i 51.0 Sheepm:llk 17 ~ Whole milk 92 92 8.7 Skim milk 70 70 14~0 Other milk and products 55 56 11.8

• Turkey ~ ~,9'4 162.4 Whole, goat and sheep mdlk ,192 ,192 103·0 Skim milk 2,604 2,604 43.8 Cheese 158 158 15.6

U.A.R. 1,129 1,188 44·2 Buffalo milk 732 732 27·2 Whole milk 393 452 16.8 Other 4 4 0.2

Western Hemisehere

Argentina ~.6~ ~!6~ tH Whole milk ,3 ,3 ·3 Cheese 132 142 1.0 other products 144 128 6.0

BoliviA H 104 9.3 Whole milk ~ '4.9 Sheep milk 32 32 other milk and products 20 27 4.4

!razil ~2~§ ~'2a~ ~ Whole milk ,1 ,1 3 .7 Milk products 1,014 1,086 14.2

Chile m .§24 ~ Whole milk 790 57. Products and by~products 38 58 6.1

• . Coiombia l'~~g l'~Jg 102.3 Whole milk 1, 1, 101.7. other milk and products 1, 15 0.6

I

Costa Rica 121 ill... 97.2 Whole milk ffi 121 95.2 Products 2 2.0

Ecumor 320 ~ 69.1 Whole milk 320 69.1

El Salvador 214 220 84.5 Whole il:l.1k 214 215 82.4 Products 5 2.1

Table VI-I: Milk Product1o~, SupplY .. and Con81D1J)t1on (page 4)

Western Hemisphere (cont).·

Guatemala Whole milk Products

Honduras Whole milk Cheese Products

Mexico Whole milk Products and by-products

Panama Whole milk Products and by-products

Paraguay Whole milk Products

Peru -whole milk

Products and by-products

Surinam Whole rriilk ·Products and by-products

Uruguay Whole milk Cheese

Venezuela Whole milk Products and b,r-products

DEVELOPED COUNTRIES

France Whole, goat and sheep milk Skim milk Cheese Products and by-products

Germany Whole milk Skim mi1,k Other milk products and

by-products

Production

110 ITO

~ 10

~ 59

60 ~

9

132 132

~ 45

B 'S

1Q2 m

8

221 i94

27

34,596 24,431 9,381

492 301

3ll~es 20, 10,"'76

1,039

SupplY Available

113 109

4

J1§ I2Ii

10 2

~ 75

60 ~

9

m 132

2

m 54

9 "B 1

1§2 m

8

278 194

84

34,4H 24,.3 9,405

471 206

32,0' 20,12

10,776

1,158

Per Capita Consumption

~ 20.4 1.0

112.9 110.8

2.1

3~.g 2 • 7.6 .

.~ ~ 3.3

2g.1 1 .9 6.2

23.2 19.0 4.2

209.4 206.3

3.1

M 22.1 9.4

117.9 9773

7.1 10.1 3.4

137.6 109.0 10.4

18;2

,,'

•

•

Table VI-I: Mi~k Production, Supply and Consumption (page 5)

DEVELOPED COUNTRIES ( continued) Production SUEEll Available

United Kingdom 13,&90 ~ Whole milk 12, 12 12, 12 Cheese 114 245 other products and by-products S64 684

United States 60,961 ~~r Whole milk 56,609 3, 3 Ice Cream 1,521 1,485 Other products and by-products 2,825 2,332

Per Capita Consumption

165.4 148.0

4.6 12.8

112.3 126.5

8.2 31.6

/ a In this table, whole milk means fresh liquid whole cow's milk; other means liquid whole milk other than from a cow; milk products include evaporated, condensed and skim milk unless listed separately; and milk bY-Eroducts in­clude cheese and cream unless listed separately. See Table III-l (fats and oils) for butter.

The major milks and products are listed in order of importance for each country.

Source: FAO, Food Balance Sheets, Average 1960-62, Rome, 1966 •

Table YIl-l: Meat ,Production, Supply. and CoD8uJll)tion (page 2:) .

,Area and Country

Vi East Asia' - China(Taiwacl

pork other

,Philippines pork other

MittUe East and North Africa

Irag. .mut ton and lamb

beef' and veal other

Jordan Sheep and goat other

Lebanon mut ton and lamb beef other

Libya camel

. mutton and lamb other

. Production (thousand _tric tone)

182 109

13

h22 307 102

~ 32 45

1i 7·0

10 1

2 7

18 .b

6 6

Syria .§l mutton,lamb and 'goat 114 other \ 23

TUrkey \'

mutton and lamb beef other

U.A.R. beet and veal )buftalo other

m 118 141

316 100

98 118

Supp17 & ... ail&ble looall,.{ tbCNtland .tria tOll8)

m 13

Y1& )07 111

~ 32 45

20 10 10

JQ 11

8 11

18 -0

6 6

~ 19

m 118 . 141

~ 98

124

.Per Capita Consumption ( ks/l!ar) .

16.0 14.0

2.0

20.1 B.I 5.0 7.0

11.9 "T.9 6.0

•

,.

Table VII-I: Meat Production, SupplY and Consumption (page 3)

Area and frotluct-icil Supply available Per Capita Country (thousand locally(thousand Consumption

metric tons) metric tons) ( kg/year)

Western HemisEhere Argentina 2641 22g30 ·9ge8

beef and veal 2!059 1, 30 ~ « other 582 ,00 23·)

Bolivia 90 90 ~ beef and veal Jli 34 llama and alpaca 15 1, 3·9 other 41 41 10.6

Brazil 2,000 1297~ 27., beef and veal 1,361 1,33 rs:b other 639 636 8.9

Chile •. r,~ 22, 267 ll:l -beef 100 139 17·7

other 125 128 15.6

Colombia ~ ~ 34.9 beef and veal. 2).2 other 193 193 11.7

Costa Rica Jl 26 20.9 beef 27 20 16.2 other 6 6 4.7

Ecuador ji * 20.8

beef a:sr pork 30 30 6.1 other 2, 2, ,.6

E1 Salvador 22 22 12.8 beef 17 17 7·0 other 1, 1, ,.8

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Guatemala

* ~ 12.6 beef B:7

., other f.\ 16 15 ).9

Hondul-as H 21 10.8 beef 12 b:"2

other 8 9 4.6

Mexico 821 800 22.6 beef and veal m m 11.5 other 380 )8, 11.1

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Table VII .. I: Meat Production, SupPly and Consumption (page 4)

·Area and Production Supply available Per Capita Country (thousand locally(thoueand t;onsumption

metric tonsl metric tonsl l kgL~arl ,,'

Panama J.!t J!! .ll!.2-beef and veal 23 23 20·3 other 11 15 13.6

E!!agu!J.: 80 ao 44.9 beef and veal ~ ~ 30~2

other 26 26 14.1

Peru 179 184 ~ef and veal 77 79

mutton, lamb and pork 77 78 other 25 27

Surinam 1 1 ~ prepared meat 1 3.2 beef 1 1 3·1 other 1 2.0

Urugual Wo m 11§.g beef and veal 202 7 • sheep 55 55 21.4 other 42 42 16.3

Venezuela 18) 194 fH beef 132 133 17. other 51 61 7·9

DEVELOPED COUNTRIES

France ~ ~ 1§.:l beef and veal 1, 29 1, 0 30 • .3 pork, bacon, ham 982 999 21.4 other 1,118 1,162 25.0

German:! r ~ 3,4li~ ~ pork, bacon, ham I, 2 1,7 30. • beef and veal. 987 1,143 20.2 other 306 531 9.,

"

United Kingdom ~9f ;3,158 10.0 beef and veal. 1,222 22.9 mut ton and lamb 257 6e6 11.1 other 1,215 1,930 )6.0

Table VII~l: Meat ProductioD, Supply ad Collln.ption (page 5)

~ea and . Production j • Supply available Per' Capita Country (thousand local ly(thou san d Consumption

Mtric:toll8) .tric tons) . Us/year)

United States ~ 17,071 82.9

beet and veal 7,3 2 7,633 3r.9 pork, bacon 5,273 5,215 26.8

c chicken and turkey 3,156 2,983 16.4 other 1,246 '1,240 7.8

Source: FAO rood Balance Sheets, Average 1960-62, Rome 1966

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TABLE vrn - :1

,-FISH PROOOCTION IEVEIDPING

A.'ID 2

Supply Avail- Per Capita ... ' Area and Coun~rx Production able local ConsurnEt1on

(thousand thousand metric tons) metric tODS) (Kg/year)

~

DEVEIDPING COUNTRIES ~

Eastern Africa

Ethiopia 1h. 11. ~

Malaga!l Republic kl !!J 1.:.2. Mauritius ! k 6.9

(Freshi frozen; dried, salted and smoked) 1 3 4.1

Oanned 1 1.6 Shelf'ish '0.6

Sudan 11 11 l:!i.

Uganda ~ 21. 8.3

South Asia

Ughanistan

Ceylon 11 113 7..:£ · Freahl!..., dried and

,alted 71 lOS 6.4 Canned 8 0.8

India ~ ~ 1,00$ 2.0

• J2. bi Iran jQ -(' Pakistan la 318 302 hl ft

.~

last Asia

China (Taiwan') Fresh ~ ~, 310 m ~

22.9 D!~-1ed 1 0.1

. She11t1sh 11 17 1.4

I

Table VIII-l. l~.lsh Production. Supply and COIlS'pption (page 2)

SupPll' Avail- Per Capita Area and Count~ Production able Local!:.! Consumpti..2!!

East Asia (c on tinued)

Phili;eEines Fresh 7a fgt m ~ 1 .0 Ca:rmed ,C"'~ ,9 2.1 Shellfish ,2 ,2 1.8

Middle East and North Africa

Iraq 1Q !Q. 1.6

Jordan £ !.J:. Fresh; salted, dried, and

snoked 0.6 . Preserved or prepared 0.,

Lebanon 2 6 2.0 Fresh I.!:. 2" 1; 1.2 Canned 2 0.8

Libya J. l 1.8 Fresh L2. 1 1 0.0 Canrted 2 2 1.2

SUi!! 1- 0.1 -Turkey 129 12.3 J.:1

Fresh,l! frozen, salted, 107 101 2.0 dried and smoked

Canned 22 22 0.8

U.A.R. !J2. itt ~ Fresh ~ and salted 139 Canned 4 0.2

Westers Hemisphere

.,\rgentina fA !& ~ h.:l •

Bolivia ~ ! 2 2.:.2. - ,. Brazil J!£L ~ ~

Fresh I.b dl7, 8&lted at smoked 309 .333 2.1 ,Canned 16 16 0.2 Shelfish 42 41 0.4

. Chile a. hZ2. hJ.Q 12.5

Table VIII-,ls 118h l!:odu.cttda. SutmQ:: and COJlauaDtl'on 'PM8 Jl :.~

Supp13' A. vail- Per Capita Area and t:ount17 Production' , able LocalJaI Consumption

Westem H-nsphere (continued) " ,

ColClllbla ~ ~ J.:.l

Freah and cured 2.9 ,canned 1 1 0.1 Shellfish 2 1 0.1

.. Costa Rica l l ~ Fresh 1 1 1.1

Tinned 1 0.6 ~

Shrimp 2 1 0.8

lcuador ~ k§. 9'.0

Il. Salvador 8 t 2.1 Fresh 1; W Tinned 1 0.3 Shrimp 4 0.1

Q..uatemala ~ 1 2.:J. Fresh r 0.2 Shrimp 1 0.1

Honduras i i 1.2 Fresh 9.2 Canned 0.2 SIu~p 1 1 0.8

Mexico I.A 216 m ~ Panama 12 10 ~ rresh and dried -7 -U

Canned 1 1.0 Shellfish S 1 0.9

Paryuq i l 0.6 -P8r\{

~ ~ M-O '.' - Fresh .3

Canned 31. 7 0.7

Surinan Ii ,t 12.:2 Freah, dried, salted" aoked 3 11.7 Canned 1 2.8 She lt1 ah 1 1.4

Urucua"y, b:. §. 8 3.1 -

t.A Round weight

~ Fillet weight

~ Oross weight

a Landed weight

.:-" ;

Source. "~, rood Balace Sheets, .lpry. 1960-62, ... 1966.

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