Problem record harvests

Press, 22 October 1986, Page 15

Problem record harvests

NZPA-AFP Rome Developing countries had record harvests in 1985, but had problems getting rid of their excess production as world agricultural prices fell, the annual report of the Food and Agriculture Organisation said. The report said total food production went up 1.4 per cent last year, and 2 per cent in the developing countries. World cereal harvests hit record levels for the second consecutive year, although wheat production fell and rice output was almost static. On the other hand, the maize, millet and rice crops in Africa showed a strong recovery, the organisation said. In Africa generally, the situation improved, with above average harvests, better livestock production, an increase in areas under cultivation and higher yields. As a result, the 21 countries which were suffering severe shortages at the end of 1984 were no more than six at the end of 1985. Some countries produced surpluses totalling almost 3.5 million tonnes of secondary cereals, while in the drought-af-fected Sahel countries harvests soared from 3.8 million tonnes in 1984 to a record seven million last year.

The organisation said average food consumption should increase in the 65

countries classed as of low income and with food deficits. But this general improvement concealed great differences, as in 31 countries consumption was down. The record harvests have also not brought in substantial export revenue. World agricultural trade reduced in value in 1985, and imports fell 14 per cent last year. Growth of trade by volume is expected to remain very slow until the

end of the decade, the report said. World prices have tumbled suddenly and sharply, reaching the same as 20 years ago in real terms. Wheat and maize prices fell to their lowest level for five years, while rice has dropped by half since 1981. The situation is even more alarming in that many developing countries relied on exports of such produce to bring in foreign currency and im-

prove their trade balance, said the organisation’s director-general, Mr Edouard Saouma. In 1984, Africa’s agricultural exports enabled the countries concerned to buy only 75 per cent of the manufactured goods and oil which they bought in 1974-76. The organisation noted that protectionism was still strong in the agricultural markets, and efforts to reduce it had made little progress.