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WORLD AGRICULTURAL PRODUCTION, PART TWO

January 1997

This reports includes the weather briefs, production briefs, and commodity feature articles from the full World Agricultural Production circular, with the exception of some of the statistical tables and charts. This report draws on information from USDA's global network of agricultural attaches and counselors, official statistics of foreign governments, other foreign source materials, and results of office analysis. Estimates of U.S. acreage, yield, and production are from the USDA Agricultural Statistics Board, except where noted. This report is based on unrounded data;numbers may not add to totals because of rounding. The report reflects official USDA estimates released in the World Agricultural Supply Estimates (WASDE-322) January 10, 1997.

The report was prepared by the Production Estimates and Crop Assessment Division, FAS, AGBOX 1045, 14th and Independence Ave., Washington, DC 20250-1000. Further information may be obtained by writing to the division, or by calling (202) 720-0888, 9516, or by FAX (202) 720-8880. We plan to issue PART 2 of this circular every month, normally 5 working days AFTER the release of Part 1. The next issue of World Agricultural Production, Part 1, will be available electronically after 3:30 pm local time on Febvruary 13, 1997.

WEATHER BRIEFS

ARGENTINA: MOISTURE ADEQUATE IN ALL GROWING AREAS

During November 1996, near- to slightly above-normal rainfall favored winter wheat and summer crops in central Argentina. During the first week of December, showers in central Argentina favored germinating-to- vegetative corn, soybeans, and sunflowers. Isolated heavier showers caused some flooding and possible wheat lodging in northern La Pampa. The moisture slowed winter wheat maturation and harvesting except in southern Buenos Aires, where wheat was still filling. The following week, December 8 - 14, saw widespread moderate showers fall again across La Pampa and Buenos Aires. The heavier rainfall and cool weather slowed winter wheat maturation and harvesting and possibly caused quality damage in some wheat, especially across the northern portions of this region. The moisture benefited vegetative summer crops throughout the area and late-filling winter wheat in southern Buenos Aires. Moderate to heavy rain fell across northern Argentina, increasing moisture supplies for cotton but causing some local flooding. During December 15 - 21, intermittent showers favored summer crop development in central Argentina, but this moisture caused some delays in winter wheat harvesting. Dry and warm weather favored winter wheat harvesting in central Argentina during the week of December 22 - 28. The warm weather also aided soybean and corn development. Later that week, light to moderate rain slowed wheat harvesting but increased soil moisture for summer crops. Moderate showers also fell that week in northern Argentina, increasing moisture supplies for cotton. During December 29, 1996 through January 4, 1997, warm weather across central Argentina aided winter wheat harvesting and summer crop development. Occasional light to moderate showers fell across Buenos Aires, maintaining soil moisture for vegetative-to- reproductive corn and vegetative soybeans. Periods of dryness between the showers allowed winter wheat harvesting to progress in Buenos Aires. However, southern Santa Fe and Cordoba received little or no rain, where the warm weather increased evapotranspiration rates. During January 5-11, widespread showers eased dryness across these regions. As of the end of December, about 70 percent of the winter wheat crop had been harvested.

EUROPE: BITTER COLD TEMPERATURES PREVAILED DURING DECEMBER

December 1996 was highlighted by wet weather in the south of Europe and abnormally cold weather in the north. During December 1 - 7, moderate rains favored winter grains in southern France, northern Spain, and Italy. Light to moderate showers also replenished soil moisture reserves in Romania, Bulgaria, and eastern Yugoslavia. Winter grains in Germany, Poland, the Czech Republic, Solvakia, and Hungary were dormant. Unusually cold weather developed across northern Europe, from the United Kingdom to Poland during the week of December 8 - 14. Also during that week, moderate to heavy rain continued across Spain, southern France, and Italy. The heavy rainfall in northern Italy and southeast France caused severe localized flooding. During December 15 - 21, unseasonably cold weather continued in northern Europe. Minimum temperatures ranged from -8 to -12 degrees Celsius. Snow cover provided some protection for winter grains from these extreme temperatures. Spain, southern France, and northern Italy again saw moderate to heavy rainfall. During December 22 - 28, unseasonable cold continued to dominate large portions of eastern and northern Europe. Low temperatures that week reached -15 to -25 degrees C from eastern Germany eastward through Poland southward to Romania. Moderate rain fell that week across southeastern Europe. Bitterly cold weather continued for the fourth week across northern Europe during the week of December 29, 1996, through January 4, 1997. Minimum temperatures ranged from -15 to -20 degrees C in the west, while temperatures in eastern Germany, the Czech Republic, and Poland ranged from -20 to -27 degrees. Variable snow cover in eastern Germany and central Poland created the potential for some crop damage, especially to winter oilseeds and barley which are less resistant to extreme cold than winter wheat or rye. That week, near to below-freezing temperatures plunged as far south as northern citrus areas of Italy and Greece; temperatures did not fall low enough to cause significant damage to fruit or trees. Temperatures in citrus areas in Spain remained above freezing.

NORTHWESTERN AFRICA: MOROCCO IS FAVORABLY WET, WHILE ALGERIA AND TUNISIA ARE DRY

December 1996 was highlighted by wet weather in Morocco and unfavorably dry weather in Algeria and Tunisia. During the week of December 1 - 7, soaking rain in Morocco provided highly beneficial moisture for emerging winter grains. Farther east, only light, scattered showers fell in Algeria and Tunisia. Winter grain planting, which is usually well underway by December 1, was progressing slowly this year in Algeria and Tunisia due to unfavorable dryness. Generous rains continued in Morocco during the week of December 8 - 14. Light to moderate rains covered southern Morocco's growing area, while moderate to heavy rain fell in the north. Rains in Algeria and Tunisia that week were limited to widely scattered showers, usually 10 millimeters or less.

During December 15 - 21, wet weather continued to provide abundant-to-excessive moisture for winter grains in Morocco. Heavy rain in the north likely caused some late-season planting delays and created the potential for localized flooding. Portions of Algeria and Tunisia received light rain, but for the most part precipitation accumulations since the beginning of the growing season continued to trend well below normal. Moderate to heavy rain continued in Morocco during the week of December 22 - 28. Northern and western Morocco saw the heaviest rainfall that week. Moderate showers, the highest seen this season, fell across coastal northern Algeria and Tunisia during this week. Crops in western Algeria received light and somewhat scattered rainfall. December ended and January began with this same rainfall trend. Heavy rain in Morocco, during December 29, 1996 through January 4, 1997 kept soils waterlogged, causing further delays in late-season winter grain planting and increasing the potential for some flooding. Light rain fell that week in western Algeria; however, dry weather prevailed over central and eastern Algeria and Tunisia. Rain is needed soon to avert significant declines in crop production.

PRODUCTION BRIEF

FORMER SOVIET UNION: WEATHER AND CROP DEVELOPMENTS

In December, above-normal precipitation fell in the southern and western Ukraine, the North Caucasus Region in Russia, Belarus, and the Baltics, increasing moisture reserves. Precipitation was below normal in northeastern Ukraine and the remainder of Russia. Following a prolonged period of unusually mild weather, temperatures in late-December fell sharply in Ukraine, Russia, Belarus, and the Baltics. The lowest temperatures occurred during the period December 24, 1996 through January 4, 1997, ranging from -20 to -36 degrees Celsius in most areas. The exceptions were in southern Ukraine and the western North Caucasus region in Russia, where temperatures ranged from -10 to -20 degrees Celsius. In most areas, snow accompanied the bitter cold, providing some protection from the extreme cold. However, snow cover was thin and patchy in a band that stretched across northern Ukraine eastward into Russia (northern tip of North Caucasus and central Volga Valley), leaving winter grains vulnerable to potential freeze damage. Since January 5, light snow accompanied a moderation in temperatures in most areas, improving overwintering conditions for crops; however, temperatures remained below normal.

FEATURE COMMODITY ARTICLES

WORLD RICE CROP OUTLOOK FOR 1996/97

World rice production for 1996/97 is forecast at a record 376.8 million tons (milled-basis), up 6.0 million or 2 percent from 1995/96. Harvested area is estimated at 148.4 million hectares, down marginally from last season. Yield continues to trend higher and for 1996/97 and is estimated at a record 3.76 tons per hectare (paddy basis). Larger production in China and India is the primary reason for the record crop. Refer to Table 10, Rice Area, Yield, and Production for 1996/97 country detail.

United States: Rice production in the United States is estimated at 5.6 million tons, down nearly 1percent from a year ago. Harvested area is down 10 percent from 1995/96, but a record yield of 6.86 tons per hectare buoyed output. The Delta States (Arkansas, Louisiana, Mississippi, and Missouri) had a banner crop year in 1996/97, according to USDA's National Agricultural Statistics Service. Ideal weather prevailed during the entire growing season. Plantings were completed on time, spring rains were timely, and there was little evidence of insect or disease problems. In California, yields declined from the previous season due to late plantings, disease and rice blanking ; however, more area was harvested. In Texas, rice crops enjoyed good growing conditions and virtually no disease or insect problems.

China: Rice production for 1996/97 is estimated at a record 132.0 million tons, up 2.4 million or 2 percent from last year. Harvested area is estimated to be similar to 1995/96 at 30.7 million hectares, and rice yields are estimated at a record 6.14 tons per hectare. China produces three rice crops; early rice is planted in April and harvested in July; single-crop rice is planted in May and harvested in September; and late double-cropped rice is planted in June and harvested in October. Excessive rainfall caused flooding and some damage to the early-rice and single-rice crops in southern and central China, but these losses were mainly along the waterways and were offset by higher yields in other areas. The early-rice crop reached an estimated 30.8 million tons, up 1.26 million or 4 percent from last year. Flooding delayed the planting of late rice in the Yangtze River Basin, but the weather was generally favorable for crop development and estimated yields are slightly higher than last year.

India: Rice production for 1996/97 is estimated at a bumper level of 81.0 million tons, up 1.5 million or 2 percent from 1995/96. Harvested area is estimated slightly higher than last season at 42.5 million hectares as land suitable for irrigation continues to expand. Rice area and yield are dependent on monsoon performance, with only 45 percent of total area being irrigated and about 85 to 90 percent of the crop planted at some point during the monsoon. The monsoon was generally favorable this season; however, excessive rainfall caused by consecutive typhoons hitting the eastern coast in October reduced production potential. In addition, the state of Orissa had some dry periods which caused a reduction in yield potential.

Bangladesh: Rice production for 1996/97 is projected at 18.0 million tons, slightly higher than last year. A favorable monsoon improved yield to a bumper 2.71 tons per hectare. (Only 28 percent of total rice area is irrigated, making rice particularly dependent on monsoon rainfall.) Supplies of fertilizer and other inputs have been adequate this season. Favorably dry December weather has aided the planting of the Boro crop and harvesting of the Aman crop. Yield is reportedly good for the Aman crop which was planted in May/July and harvested on November/December.

Pakistan: Rice production this year is projected a record 4.3 million tons, up 8 percent from 1995/96. The increase is attributed to favorable weather during the growing season, an early start of the monsoon in Punjab, timely water availability, and normal rains in Sindh Province. Minor pest problems were reported in some areas, but these fields received timely applications of pesticides. In addition, this record crop was achieved by a 5-percent increase in yield and a 3-percent rise in area. Nearly all rice is irrigated, drawing on both surface and groundwater resources. The harvest is virtually complete.

Thailand: Rice production for 1996/97 is estimated at 14.4 million tons, virtually unchanged from last season. Harvested area is estimated at 9.2 million hectares, near the 1995/96 level. A dry spell at seeding delayed planting of the main crop, but heavy rains later in the season maintained yield potential near last season's level. Floods in the lower-north and central plains caused minimal crop losses but may have affected crop quality. The second-season irrigated crop, which is currently being planted and accounts for about 18 percent of the total, has sufficient water to produce an above-average harvest.

Burma: Rice output for 1996/97 in Burma is estimated at 10.4 million tons, up 4 percent from 1995/96. A favorable monsoon maintained area at last season's level and boosted the estimated yield to another record. The wet-season crop comprises about 80 percent of total production. The second crop is mostly irrigated and comprises about 20 percent of the total rice area, while 10 percent of the main crop is irrigated. Input shortages, such as fertilizers, continue to constrain yield although the government is still pushing expansion of irrigation resources.

Indonesia: Rice production for 1996/97 is projected at 33.5 million tons, up over 2 percent from 1995/96. The Government is continuing to open new rice area, especially in central Kalimantan. Harvested area is up 200,000 hectares from last year to 11.6 million hectares. Favorable weather, new rice varieties, and improved farming methods have contributed to record yield prospects for 1996/97, estimated at 4.44 tons per hectare. About 55 percent of the total crop is harvested on Java and nearly 25 percent on Sumatra. Planting of the 1996/97 crop began last fall.

Vietnam: Production from Vietnam's three rice crops for 1996/97 is estimated at 17.0 million tons, down 3 percent from in 1995/96. Harvested area is projected to decline to 6.9 million hectares, down 4 percent from 1995/96. Heavy flooding in the Mekong River Delta earlier this season reduced quality and quantity, while lingering floods have delayed planting schedules and may force producers to use short- season varieties for the next two crop seasons. In addition, the Red River provinces of Thai Binh and Thanh Hoa suffered damage from excessive rainfall this fall. Because of the market demand for high quality rice, farmers are expected to plant higher quality, lower yielding varieties this season which could mitigate yield growth seen in recent years.

Japan: Rice production for 1996/97 is estimated at 9.4 million tons, down 0.4 million or 4 percent from last season. Area decreased slightly to 2.0 million hectares as producers responded to the Government's program to reduce area. Japan's growing season was favorable and yield is estimated at 6.56 tons per hectare, up 3 percent from last season's level, but 3 percent below the record set in 1994/95.

Brazil: Rice production for 1996/97 is estimated at 6.2 million tons, down 9 percent from last season due to a change in government policies that reduced credit to producers. The Bank of Brazil reportedly is being more selective about extending credit because many farmers have been unable to payoff outstanding loans. Producers in Rio Grande do Sul are affected most since they irrigate rice, which has higher input requirements, thus higher costs. Yield is estimated lower this season at 2.46 tons per hectare due to the reduction in input use, especially in the high-yielding irrigated areas. (Slightly more than half the rice produced and a quarter of the area is affected by the credit problem.) Planting in the Center-South region is nearly complete and the weather has been favorable.

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


PROCESSING TOMATO PRODUCTION IN SELECTED COUNTRIES

The revised 1996 production estimate for processing tomatoes in 11 major producing countries is 21.89 million tons, down slightly from the June estimate (WAP 06-96) of 22.07, but up 2 percent from 1995. The downturn from the June estimate reflects significant downward revisions in the United States and Brazil, which were partially offset by increases in Italy and Spain.

WESTERN HEMISPHERE

United States: Processing tomato production in 1996 is estimated at 10.28 million tons, down 6 percent from the June forecast, but up slightly from 1995 due to higher yields. The downturn from the June estimate was precipitated by hot weather in July and August in northern California which induced maturity and reduced crop quality. The estimate for 1996 includes the actual amount of tomatoes processed in California as reported by the California Board of Tomato Processors, plus adjustments for uncontracted production in California and production in other states. The official USDA estimate from the National Agricultural Statistics Service will be available on January 17, 1997.

Mexico: Production of processing tomatoes in 1996 is estimated at 140,000 tons, down 49 percent from 1995 because of diminished water availability due to drought. Additionally, 2,200 hectares of tomatoes planted for processing were harvested for fresh consumption, driven by the attractive tomato export market in the United States.

Early-season assessments of the 1997 crop, to be harvested in the spring, indicate output will rise to 200,000 tons, up 43 percent from 1996, but substantially below the initial November forecast (WAP 11-96) of 245,000 tons. The production upturn in 1997 is based on an increase in the forecast for harvested area--from 3,800 hectares in 1996 to 5,500 hectares in 1997. However, the area harvested for processing will depend upon the demand for fresh tomatoes domestically and in the United States and Canada.

Brazil: Processing tomato production for 1996 is estimated at 680,000 tons, down 27 percent from 1995. The significant decline is due to the combined effects of higher prices for table tomatoes--which led producers to shift supplies of processing tomatoes to fresh market sale--and disease problems in some regions which reduced yields. The preliminary forecast for 1997 is 1.0 million tons, an increase of 47 percent from last year. Harvested area is forecast to increase to 21,145 hectares in 1997, up from 15,513 in 1996 because of additional plantings in the states of Goias and Minas Gerais precipitated by increased investment and the close proximity to processing facilities.

Most production of processing tomatoes is done on a contract basis. In the states of Bahia, Pernambuco, and Sao Paulo, the contract price is negotiated by an "agro-industry committee" based on the estimated costs of production made by IEA (Sao Paulo Institute of Agricultural Economics) plus some margin for profit. An agro-industry committee does not exist in the states of Goias and Minas Gerais, so prices are negotiated on a company-by-company basis. Indications are that prices for the 1997 crop will be in the general range of those in 1996--US$61/ton in Bahia and Pernambuco and US$71/ton in Sao Paulo. The average farmgate price paid to producers in Goias and Minas Gerais is estimated to be around US$76/ton in 1997. Under the typical contract, companies provide seeds and other inputs as well as extension and technical assistance to growers.

Chile: Processing tomato production in 1996 is estimated at 1.0 million tons, up 11 percent from 1995 because of a 10-percent increase in harvested area resulting from favorable export prices relative to other crops and the planting of improved, higher-yielding varieties. However, output of processing tomatoes in 1997 is forecast to decline 11 percent because of severe drought which is affecting all tomato-growing areas from Region IV through Region VII. Total planted area is forecast to decline 11 percent in 1997, to 11,700 hectares, from 13,450 in 1996. A lower-quality product is also a possibility since it is undetermined how much water will be available for planting.

MEDITERRANEAN AREA

European Union: The 1996 harvest of processing tomatoes in the major producing countries of the European Union (EU) is estimated at 7.75 million tons, up 16 percent from 1995 because of significantly larger crops in Italy and Spain. The EU's 1996 minimum grower prices for processing tomatoes, in ECU terms, were unchanged from 1995 at 9.549 ECU per 100 kilograms for tomatoes to be processed into paste, juice, or non-whole products; 15.807 ECU per 100 kilograms for whole San Marzano variety tomatoes; and 12.161 for whole Roma variety tomatoes and tomatoes for producing flakes.

In October 1996, the EU reformed the Common Organization of the Market (COM) for Fruits and Vegetables. The new COM favors groups of producers rather than individual producers because all the contracts currently entered into with individual processors will have to be signed by producers' groups beginning in the year 2002. For tomatoes, the new COM modified the production quota for processing tomatoes for 1997 and 1998. The total EU production quota will rise from 6.561 million tons in 1996 to 6.836 million in 1997 and 1998, expanding the quota for tomatoes for paste production and reducing the quota for whole tomatoes for canning. After the 1998/99 year, production quotas will vary and will be recalculated according to historical references of the three previous years. The total EU quota will remain the same, while each EU member state quota will vary according to whether or not they fulfilled their quota during the reference years. Minimum grower prices for 1997 have not been set under the reformed COM.

Italy: Processing tomato production in 1996 is estimated at 4.15 million tons, up 17 percent from the June estimate (WAP 06-96), and up 20 percent from the 1995 volume of 3.45 million. The production upturn since June reflects larger-than-estimated planted and harvested areas and ample rainfall during the growing season. The production quota for Italy was increased to 3.47 million tons beginning in 1997, from the 1996 quota of 3.30 million.

Spain: Production of processing tomatoes for 1996 is estimated at 1.26 million tons, up 28 percent from the June estimate and up 39 percent from 1995. Despite a 10-percent decline in harvested area from last year, favorable weather, including abundant rainfall, contributed to significantly higher yields. The severe drought that affected most parts of Spain during the past 5 years is over. In general, tomatoes were not affected by the drought as much as other less profitable crops because farmers allocated available water resources to tomatoes.

Greece: The 1996 production estimate for processing tomatoes in Greece is 1.15 million tons, down 4 percent from both the June forecast and the 1995 estimate. The current 1996 estimate is lower because of excessive rainfall, which reduced yields.

Portugal: Output of processing tomatoes in 1996 is estimated at an all-time high of 905,000 tons, up 7 percent from the June estimate and up 9 percent from 1995. The previous record of 865,000 tons was set in 1994. Despite early-season concerns about the heavy rains and cold weather that delayed planting of the 1996 crop, yields are considered very good. Crop quality and coloration are also reportedly above average.

The 1996 crop year was marked by ongoing changes at the farm level. The traditional small-scale "seareiros" continue to be displaced by larger farms. An estimated 3,000 hectares of tomato area now consist of large-scale farms with direct-seeding technologies, drip irrigation systems, and mechanical harvesting capabilities. The proportion of large farms is expected to increase in the future because of the need to attain economies of scale.

France: Production of processing tomatoes in 1996 is estimated at 290,000 tons, unchanged from the June forecast, but up 4 percent from 1995. The production quota for 1997 was reduced 6 percent for France, to 369,608 tons. The majority of the reduction came from the quota for whole tomatoes for canning, which France has not traditionally utilized.

Turkey: The revised estimate for Turkey's 1996 processing tomato crop is 1.8 million tons, up 6 percent from the preliminary forecast in June, but down 12 percent from 1995 due to large carry-over stocks. The upturn since June reflects increased plantings by farmers without contracts in expectation of higher returns from tomatoes than from competing crops, including cotton and sugarbeets. A significant portion of these tomatoes were utilized by small processors. Although the tomato crop was planted about two weeks late due to cool, wet spring weather, improved weather later in the season extended harvesting through the end of October.

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


AVOCADO PRODUCTION IN SELECTED COUNTRIES

Avocado production in seven major producing countries in 1996/97 is estimated at 1.14 million tons, down 9 percent from 1995/96. A 20-percent decline in Mexico's production is expected to be partially offset by increases in the Dominican Republic, Chile, Israel, the United States, and South Africa.

Mexico: The 1996/97 crop (harvested August 1996 through July 1997) is forecast at 635,000 tons, down 20 percent from the revised 1995/96 estimate because of excessive rainfall, hail, and low temperatures during the flowering season of the Michoacan crop. The inclement weather caused early fruit drop, lower yields, and smaller-sized fruit.

The area planted to avocados in 1996/97 is forecast at 93,000 hectares, virtually unchanged from last season; harvested area is forecast up slightly, to 90,100 hectares. Harvested area is likely to remain stable over the next few years because the state of Michoacan, which accounts for approximately 85 percent of Mexico's annual avocado output, has run out of land suitable for avocado cultivation. However, given the significant number of new trees planted in the late-1980's and early-1990's, total production is expected to expand approximately 30 percent between 1998 and the year 2000 as trees reach full maturity.

Farmgate prices for export-quality fruit are averaging 60 to 70 percent above last season, well above the 26 percent rate of inflation. The average farmgate price for 1996/97 is estimated at about 1,200 pesos per ton (US$156 per ton) for the peak season (November through April). During the off season (May through September), growers may receive over 2,500 pesos per ton (US$325 per ton). Growers have succeeded in commanding superior prices this season because of the short crop and skillful price negotiations.

United States: Avocado production in the United States for 1995/96 is estimated at 168,100 tons, up 5 percent from 1994/95. A 5-percent increase in yield boosted output in 1995/96, despite a slight decline in bearing area. Preliminary assessments for 1996/97 indicate production of approximately 173,000 tons--up 3 percent from 1995/96. However, strong winds in December and the threat of January frosts may temper the initial 1996/97 projection of a 2-percent increase in the California crop.

Avocados are harvested year-round in California, which accounts for approximately 89 percent of total U.S. production. The main harvest in Florida runs from July through February. The official 1996/97 estimate of total U.S. avocado production will be available from USDA's National Agricultural Statistics Service (NASS) in July 1997.

Vominican Republic: Avocado production in 1996/97 (June/May) is forecast at 97,940 tons, up 31 percent from 1995/96 because of improved weather and an increase in bearing area. Of total output, export production is estimated to comprise about 15,000 tons. Continued growth in the industry is expected as global awareness and demand for avocados expands.

Production of avocados occurs nearly year-round (June through April) in the Dominican Republic, but the main harvest period runs from early-November through late-December. Although there are 18 grafted varieties of avocados cultivated in the Dominican Republic, the varieties most popularly grown for export include Simmonds, Popenoe, Semil No. 34 and No.43, Melendez, Hass, Hall, Booth, Lula, and Choquette.

Israel: Avocado production for 1996/97 (October/September) is forecast at 85,000 tons, up 9 percent from the revised 1995/96 estimate of 78,100 because of favorable weather. However, declining profitability and water scarcity are likely to keep output below the 100,000-ton mark for the foreseeable future.

The area planted to avocados is estimated at about 8,000 hectares. Because of high production costs and water shortages, some plantings in marginal areas have been uprooted over the past several years. Production by the year 2000 is projected to stabilize at approximately 90,000 tons, of which approximately 70 percent will be exported.

Chile: Avocado production for the 1996/97 season (January-December 1997) is forecast at an all-time high of 59,400 tons, up from 51,200 in 1995/96. The previous record was set during the 1995/96 season as a result of near-perfect weather throughout most of the growing season. A further increase is forecast in 1996/97 as a large number of orchards reach bearing age. Production is projected to surpass 90,000 tons by the year 2000, with the Hass variety comprising approximately 70,000 tons of the total.

The area planted to avocados in 1996/97 is forecast at 13,610 hectares, up 6 percent from last season; harvested area is forecast at 6,880 hectares, up 13 percent from 1995/96. The increase in plantings reflects the stimulus provided by high producer prices during the past few years and a favorable export climate. Harvested area should continue to expand over the next five years as previously planted trees mature.

Avocados are harvested year-round in Chile, but the principal harvest period extends from September through December. Approximately 95 percent of all commercial avocado trees are planted in the central part of the country--from Region IV through Region VI, including the Metropolitan Region. Most of the expansion in the industry can be attributed to increased plantings of the Hass variety, which comprises over 55 percent of Chile's total avocado area.

South Africa: The 1996/97 (November/October) avocado crop is estimated at a record 57,000 tons, up 8 percent from 1995/96. Rains during the later part of 1995 significantly improved production in 1995/96 and alleviated irrigation water shortages experienced prior to the 1995/96 season. Dams are currently full, which means that water supplies are guaranteed for the next few years.

The South African avocado industry is in an active growth mode. As of the 1995/96 season, 30 percent of the area planted to avocados had not yet come into production and 48 percent had not yet reached full production. Consequently, output is projected to increase over the next few years, even if the rate of new plantings slows.

Avocados are harvested year-round in South Africa, depending upon the variety, with most of the crop harvested from July through October. The Fuerte and Hass varieties normally account for about 75 percent of the South African crop; the remainder is comprised of the Ryan, Edranol, and Pinkerton varieties. Approximately 11,050 hectares are planted to avocados in South Africa, mainly in the Eastern Transvaal.

Spain: Avocado production in 1996/97 (July/June) is forecast at 34,000 tons, 15 percent below last year's output of 40,000 because of an off-year in the bearing cycle and lingering drought damage sustained by orchards during the past few years. The area planted to avocados is forecast at 8,500 hectares, down slightly from 1995/96; harvested area is forecast up slightly, to 8,000 hectares.

Although avocados are harvested October through June, the bulk of the crop is taken off between November and January. Spain's avocado industry is concentrated in Andalucia (mainly in the provinces of Granada and Malaga), which accounts for about 90 percent of the total area under cultivation. The balance of the crop is produced in the Canary Islands and, to a lesser extent, in the Levant. The total area devoted to avocado production will likely remain stable over the long term, vacillating in sync with the availability of irrigation water supplies.

 AVOCADO PRODUCTION IN SELECTED COUNTRIES
                      (1,000 Metric tons)

                    1993/94          1994/95       1995/96       1996/97 1/

Mexico              709.0               799.0         790.0         635.0
United States       130.4               159.9         168.1         173.0  2/
Dominican Republic   40.0                48.0          74.8          97.9
Israel               49.0                57.8          78.1          85.0
Chile                50.0                48.0          51.2          59.4
South Africa         52.2                48.2          53.0          57.0
Spain                51.7                35.1          40.0          34.0

Total              1,082.3             1,196.0       1,255.2       1,141.3

1/ Forecast.

2/ The official, survey-based 1996/97 estimate of U.S. avocado production will be available from USDA's National Agricultural Statistics Service (NASS) in July 1997. The estimate in the table above is derived from a preliminary estimate for California provided by the California Avocado Commission and FAS estimates for Florida and Hawaii.

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


DAIRY PRODUCTION IN SELECTED COUNTRIES

World milk production for 1997 in selected countries is forecast at 386.86 million tons, up 1 percent from 1996. Production increases are projected for most countries other than the European Union and Russia.

Milk cow numbers continued trending downward in 1996, to 133.93 million head, but rising output-per-cow due to genetic improvements maintained milk production at a relatively stable level. The beginning 1997 milk cow inventory, at 133.38 million head, is down slightly from 1996, but the upward trend in milk yield continued, boosting total milk production.

Cheese production in the selected countries during 1997 is forecast at 12.09 million tons, up 2 percent from 1996. In a majority of the producing countries, output is projected to remain stable or show a modest increase due to expanding milk supplies and rising demand.

Butter production in the selected countries during 1997 is forecast at 5.30 million tons, up marginally from 1996 largely due to increased production in Argentina, Brazil, Germany, India, Japan, and Oceania.

Nonfat dry milk production for 1997 is forecast at 2.99 million tons, down 2 percent from 1996. The downturn is due to reductions forecast for the United States and the European Union.

In contrast, production of whole milk powder is forecast up 4 percent from 1996, to 2.29 million tons, mainly because of increases in Argentina, Brazil, China, and Oceania. The upturn reflects strong demand and expanding productive capacity in these countries.

Arthur Hausamann, Agricultural Economist, Phone: (202) 720-8883, E-mail: hausamann@fas.usda.gov

           COW MILK PRODUCTION IN SELECTED COUNTRIES
                         (1,000 Metric tons)

                  1992          1993          1994       1995        1996 1/   1997 2/

Canada           7,633         7,500          7,750     7,920       8,000      7,930

Mexico          10,700        10,720         11,010    11,120       11,450    11,500
United States   68,440        68,303         69,701    70,599       70,100    70,675
NORTH AMERICA   86,773        86,523         88,461    89,639       89,550    90,105

Argentina        7,000         7,400          7,800     8,500        8,900     9,500
Brazil          15,538        16,250         16,700    18,375       19,845    21,432
Chile            1,590         1,700          1,844     1,950        2,030     2,190
Peru               620           630            641       665          721       780
Venezuela        1,575         1,655          1,359     1,300        1,300     1,350
SOUTH AMERICA   26,323        27,635         28,344    30,790       32,796    35,252

Austria          3,254         3,237          3,245     3,116        3,053     2,991
Belgium-Luxembourg                                                  
                 3,775         3,612          3,607     3,645        3,560     3,508
Denmark          4,605         4,661          4,641     4,673        4,650     4,625
Finland          2,467         2,494          2,510     2,473        2,446     2,423
France          25,315        25,049         25,322    25,491       25,420    25,430
Germany         28,106        28,080         27,866    28,621       28,900    28,600
Greece             690            75            750       690          695       680
Ireland          5,588         5,529          5,598     5,655        5,690     5,617
Italy           11,300        10,400         10,365    10,500       10,300    10,000
Netherlands     10,901        10,953         10,964    11,294       11,180    11,202
Portugal         1,490         1,453          1,485     1,680        1,730     1,780
Spain            6,000         6,130          5,900     6,000        5,900     5,900
Sweden           3,200         3,287          3,357     3,250        3,240     3,230
United Kingdom  14,428        14,645         14,920    14,700       14,600    14,550
EUROPEAN UNION 121,119       120,282        120,530   121,788      121,354   120,536
    
Switzerland      3,873         3,862          3,887     3,913        3,883     3,883
OTHER WESTERN EUROPE
                 3,873         3,862          3,887     3,913        3,883     3,883
Poland           13,060       12,650         11,822    11,420       11,550    11,800
Romania           4,346        4,585          5,215     5,885        5,985     6,030
EASTERN EUROPE   17,406       17,235         17,037    17,305       17,535    17,830

Russia           46,776       46,300         42,800    39,300       35,200    32,500
Ukraine          19,114       18,377         18,138    17,181       16,700    16,500
FORMER SOVIET UNION
                 65,890       64,677         60,938    56,481       51,900    49,000

China             5,031        4,990          5,288     5,764        6,200     6,700
India 3/         29,400       30,600         31,000    32,500       33,500    34,500
Japan             8,581        8,627          8,388     8,382        8,650     8,700
   ASIA          43,012       44,217         44,676    46,646       48,350    49,900

Australia 4/      6,918        7,530          8,300    8,433         8,957     9,352
New Zealand 5/    8,603        8,735          9,719    9,684        10,405    11,000
   OCEANIA       15,521       16,265         18,019   18,117        19,362    20,352

TOTAL           379,917       380,696       381,892  384,679       384,730   386,858

1/ Preliminary.

2/ Forecast.

3/ Year beginning April 1 of the year shown.

4/ Year ending June 30 of the year shown.

5/ Year ending May 31 of the year shown.

January 1997 Production Estimates and Crop Assessment Division, FAS, USDA

              MILK COW NUMBERS IN SELECTED COUNTRIES
                                       (1,000 Head)

                          1992   1993   1994  1995  1996 1/ 1997 2/

    Canada               1,297  1,263  1,267  1,276  1,279  1,280
    Mexico               6,470  6,480  6,480  6,440  6,440  6,500
    United States        9,688  9,589  9,500  9,461  9,360  9,255
     NORTH AMERICA      17,455 17,332 17,247 17,177 17,079 17,035

    Argentina            2,100  2,200  2,300  2,350  2,300  2,400
    Brazil              17,800 18,000 17,500 17,500 17,200 17,220
    Chile                  700    740    760    770    778    782
    Peru                   550    553    563    580    600    610
    Venezuela            1,181  1,267  1,150  1,100  1,100  1,150
     SOUTH AMERICA      22,331 22,760 22,273 22,300 21,978 22,162

    Austria                841    818    804    747    710    689
    Belgium-Luxembourg     849    792    754    720    680    668
    Denmark                746    708    699    703    712    705
    Finland                427    423    415    413    399    395
    France               4,968  4,674  4,615  4,754  4,672  4,630
    Germany              5,365  5,365  5,301  5,273  5,229  5,170
    Greece                 235    233    230    210    205    200
    Ireland              1,293  1,262  1,274  1,269  1,267  1,275
    Italy                2,535  2,317  2,287  2,167  2,100  2,030
    Netherlands          1,739  1,747  1,698  1,709  1,700  1,695
    Portugal               404    381    375    368    366    364
    Spain                1,600  1,360  1,379  1,351  1,213  1,200
    Sweden                 490    490    490    475    470    465
    United Kingdom       2,287  2,279  2,318  2,268  2,202  2,160
     EUROPEAN UNION     23,779 22,849 22,639 22,427 21,925 21,646

    Switzerland            768    753    761    759    755    752
     OTHER WESTERN EUROPE  768    753    761    759    755    752

    Poland               4,363  4,111  3,866  3,715  3,555  3,600
    Romania              1,710  1,530  1,780  1,778  1,800  1,810
     EASTERN EUROPE      6,073  5,641  5,646  5,493  5,355  5,410

    Russia              20,600 20,243 19,800 18,400 17,400 16,100
    Ukraine              8,263  8,057  8,078  7,818  7,529  7,425
     FORMER SOVIET UNION
                        28,863 28,300 27,878 26,218 24,929 23,525

    China                1,542  1,715  1,885  2,138  2,400  2,600
    India 3/            31,000 31,000 31,500 33,000 33,500 34,000
    Japan                1,081  1,084  1,052  1,034  1,035  1,040
     ASIA               33,623 33,799 34,437 36,172 36,935 37,640

    Australia 4/         1,652  1,760  1,762  1,786  1,822  1,924
    New Zealand 5/       2,642  2,723  2,808  2,994  3,153  3,260
     OCEANIA             4,294  4,483  4,570  4,780  4,975  5,184

    TOTAL              137,186 135,917 135,451 135,326 133,931 133,379 
  

1/ Preliminary.

2/ Forecast.

3/ Year beginning April 1 of the year shown.

4/ Year ending June 30 of the year shown.

5/ Year ending May 31 of the year shown.

January 1997 Production Estimates and Crop Assessment Division,FAS, USDA

              BUTTER PRODUCTION IN SELECTED COUNTRIES
                             (1,000 Metric tons)

                          1992   1993   1994  1995  1996 1/  1997 2/

    Canada                  86     83     88     93    100     95
    Mexico                  28     22     22     22     22     20
    United States          619    596    588    572    530    515
     NORTH AMERICA         733    701    698    687    652    630

    Argentina               37     36     43     51     55     65
    Brazil                  65     65     60     65     70     75
     SOUTH AMERICA         102    101    103    116    125    140

    Austria                 43     43     42     42     45     46
    Belgium-Luxembourg      75     73     73     91     89     91
    Denmark                 62     59     59     54     56     55
    Finland                 56     54     54     53     53     53
    France                 454    444    444    455    475    470
    Germany                474    480    461    486    475    490
    Greece                   7      7      6      6      5      5
    Ireland                142    135    136    150    154    150
    Italy                   76     73     77     81     81     81
    Netherlands            191    184    159    132    125    123
    Portugal                16     17     17     19     21     23
    Spain                   29     25     19     25     22     20
    Sweden                  37     39     32     34     34     34
    United Kingdom         127    152    154    126    125    124
     EUROPEAN UNION      1,789  1,785  1,733  1,754  1,760  1,765

    Switzerland             38     38     41     42     41     40
     OTHER WESTERN EUROPE   38     38     41     42     41     40

    Poland                 180    180    160    163    165    160
    Romania                 20     14     13     16     17     17
     EASTERN EUROPE        200    194    173    179    182    177

    Russia                 762    732    488    419    350    350
    Ukraine                303    312    254    219    200    190
     FORMER SOVIET UNION
                          1,065  1,044   742    638    550    540

    Egypt                    4      5      7      6      7      8
     NORTH AFRICA            4      5      7      6      7      8

    India 3/             1,060  1,110  1,200  1,300  1,400  1,450
    Japan                   95    108     80     80     86     91
     ASIA                1,155  1,218  1,280  1,380  1,486  1,541
    Australia 4/           116    131    147    138    153    159
    New Zealand 5/         268    276    297    301    285    300
     OCEANIA               384    407    444    439    438    459

    TOTAL                5,470  5,493  5,221  5,241  5,241  5,300

1/ Preliminary.

2/ Forecast.

3/ Year beginning April 1 of the year shown.

4/ Year ending June 30 of the year shown.

5/ Year ending May 31 of the year shown.

January 1997 Production Estimates and Crop Assessment Division, FAS, USDA

        CHEESE PRODUCTION IN SELECTED COUNTRIES
                             (1,000 Metric tons)

                         1992   1993   1994  1995  1996 1/  1997 2/

    Canada                 262    271    282    277    275    275
    Mexico                 390    395    410    400    405    400
    United States        2,943  2,961  3,054  3,122  3,255  3,340
     NORTH AMERICA       3,595  3,627  3,746  3,799  3,935  4,015

    Argentina              310    350    385    370    370    400
    Brazil                 296    310    330    360    390    415
    Venezuela               70     72     74     76     77     76
     SOUTH AMERICA         676    732    789    806    837    891

    Austria                 84     84     84     79     78     78
    Belgium-Luxembourg      51     54     56     54     58     60
    Denmark                290    321    286    309    290    295
    Finland                 76     77     80     83     83     83
    France               1,489  1,509  1,541  1,576  1,585  1,590
    Germany                783    821    855    880    910    915
    Greece                 200    203    202    200    195    190
    Ireland                 95     94     92     80     90     90
    Italy                  890    885    913    942    945    945
    Netherlands            634    637    648    680    688    695
    Portugal                65     65     69     70     71     72
    Spain                  154    162    160    165    160    160
    Sweden                 117    126    133    130    134    132
    United Kingdom         324    331    326    353    355    345
     EUROPEAN UNION      5,252  5,369  5,445  5,601  5,642  5,650

    Switzerland            141    138    137    132    138    135
     OTHER WESTERN EUROPE  141    138    137    132    138    135

    Poland                 101    113    129    123    130    135
    Romania                 95     90     91     90     92     95
     EASTERN EUROPE        196    203    220    213    222    230

    Russia                 299    313    285    217    200    205
    Ukraine                113    102    105     72     85     82
     FORMER SOVIET UNION   412    415    390    289    285    287

    Egypt                  290    300    305    310    315    317
     NORTH AFRICA          290    300    305    310    315    317

    Japan                   30     32     30     30     30     30
     ASIA                   30     32     30     30     30     30

    Australia 3/           197    211    234    241    268    278
    New Zealand 4/         142    145    192    197    236    260
     OCEANIA               339    356    426    438    504    538

    TOTAL               10,931 11,172 11,488 11,618 11,908 12,093

1/ Preliminary.

2/ Forecast.

3/ Year ending June 30 of the year shown.

4/ Year ending May 31 of the year shown.

January 1997 Production Estimates and Crop Assessment Division, FAS, USDA

            NONFAT DRY MILK PRODUCTION IN SELECTED COUNTRIES
                        (1,000 Metric tons)

                          1992   1993   1994  1995  1996 1/  1997 2/

    Canada                  55     52     59     71     75     70
    Mexico                  12     18     20     30     30     30
    United States          396    433    558    560    480    420
     NORTH AMERICA         463    503    637    661    585    520

    Argentina               25     22     27     37     42     55
    Brazil                  55     50     45     60     64     73
    Chile                    4      5      6      6      6      6
    Venezuela                3      3      3      3      3      4
     SOUTH AMERICA          87     80     81    106    115    138

    Austria                 28     25     23     20     18     17
    Belgium-Luxembourg      54     52     50     52     50     48
    Denmark                 13     20     21     18     28     24
    Finland                 15     14     15     13     11     10
    France                 359    346    347    356    375    380
    Germany                395    427    374    399    390    380
    Ireland                131    139    135    119    126    120
    Netherlands             50     58     38     32     28     26
    Portugal                12     10     10     12     13     14
    Spain                   23     15     13     20     18     16
    Sweden                  30     37     34     30     30     30
    United Kingdom         102    125    128    116    118    105
     EUROPEAN UNION      1,212  1,268  1,188  1,187  1,205  1,170

    Switzerland             26     25     28     29     30     29
     OTHER WESTERN EUROPE   26     25     28     29     30     29

    Poland                 139    156    112    128    121    125
     EASTERN EUROPE        139    156    112    128    121    125

    Russia                 247    230    210    190    180    180
    Ukraine                 59     53     40     35     30     30
     FORMER SOVIET UNION   306    283    250    225    210    210

    China                   34     30     34     35     37     40
    India 3/                65     75     95    100    105    110
    Japan                  206    222    184    190    202    210
     ASIA                  305    327    313    325    344    360

    Australia 4/           160    179    221    210    229    235
    New Zealand 5/         162    150    168    178    196    198
     OCEANIA               322    329    389    388    425    433

    TOTAL                2,860  2,971  2,998  3,049  3,035  2,985

1/ Preliminary.

2/ Forecast.

3/ Year beginning April 1 of the year shown.

4/ Year ending June 30 of the year shown.

5/ Year ending May 31 of the year shown.

January 1997 Production Estimates and Crop Assessment Division, FAS, USDA

           WHOLE MILK POWDER PRODUCTION IN SELECTED COUNTRIES
                                         (1,000 Metric tons)

                          1992   1993   1994  1995  1996 1/  1997 2/

    Canada                  11     10      8      5     10      9
    United States           76     70     76     78     59     63
     NORTH AMERICA          87     80     84     83     69     72

    Argentina               78     81    102    146    166    190
    Brazil                 170    160    175    200    220    240
    Chile                   47     51     54     61     61     62
    Peru                     1      1      3      3      4      4
    Venezuela               67     72     63     60     52     45
     SOUTH AMERICA         363    365    397    470    503    541

    Belgium-Luxembourg      40     50     66     73     80     85
    Denmark                103    103    114    109    105    105
    France                 183    210    212    216    205    205
    Germany                224    202    202    221    195    195
    Ireland                 29     32     36     34     34     35
    Netherlands            130    143    135    122    120    121
    Portugal                 7      7      7      6      6      5
    Spain                   17     17     18     18     17     17
    United Kingdom          84     71     83     90     86     84
     EUROPEAN UNION        817    835    873    889    848    852

    China                  306    265    265    317    333    350
     ASIA                  306    265    265    317    333    350

    Australia 4/            67     80     93    104    113    118
    New Zealand 5/         274    308    333    342    326    355
     OCEANIA               341    388    426    446    439    473

    TOTAL                1,914  1,933  2,045  2,271  2,247  2,343

1/ Preliminary.

2/ Forecast.

3/ Year beginning April 1 of the year shown.

4/ Year ending June 30 of the year shown.

5/ Year ending May 31 of the year shown.

January 1997 Production Estimates and Crop Assessment Division, FAS/USDA


Last modified: Thursday, December 11, 2003