14,1978
Grain market opportwiities explored
BALTIMORE, Md. - The
United States will remain
the world’s granary, with
this country producing and
storing grain to capitalize chi
developing market op
portunities, a grain export
executive said recently.
Clarence D. Palmby, vice
president of Continental
'Grain Company, em
phasized that any alter
native to such a posture
“would simply not be ac
ceptable public policy.”
Palmby described the
global grain market as
uncertain, adding “it will be
almost automatic that the
U.S. will in some years
accumulate inventories.”
He advocated grain stocks
held by producers, with
government as an owner of
last resort. “By maintaining
title, at least the decision on
when to sell will be in the
hands of the farmer.”
Palmby pointed out that
On Monday night at the Farm Show, visitors
were treated to an award-winning riding exhibition
put on by the Zembo Mounted Patrol. The group
grain surpluses in the United
States have, in the past, been
utilized to build markets.
“Let’s focus on opportunities
not only this year, but over a
longer period of time,” he
told the Mid-Atlantic No-Till
Meeting sponsored by the
Cooperative - Extension
Service of the University of
Maryland.
He recalled that huge
inventories of wheat in the
United States in the 1950’s
and 1960’s caused Japan to
increase greatly con
sumption of bread and wheat
products.
“Stocks of corn and
sorghum in this country
during the 1960’s brought an
increase in feed manufac
tured and consumed in
Japan from practically
nothing some 20 years ago to
20 million tons today.”
He said that without this
assured feed supply, com
mercial layer, pork and
broiler industries could not
have been developed. “As a
direct consequence, Japan
has become the number one
market for U.S. farm
products.”
Palmby noted the direct
effect of recently established
200-mile fishing zones on
both Soviet and Japanese
protein intake.
“More then half the
protein needs of the
Japanese have been met
through fish consumption,
six times the per capita
requirement of Americans..
Fish likewise forms a major
source of protein in the
Russian diet.”
With the new international
policies, he went on, the
volume of fish available to
the Japanese is smaller, and
the price higher. The
Russian fishing fleet also is
recording lesser catches.
The marketing im
plication, as Palmby sees it,
is that with lower levels of
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fish-derived protein, these
countries must turn to other
high profein food items, such
as poulhy, pork, eggs, dairy
products and beef. “With
world fish catch down, less
fishmeal is available for
livestock and poultry feed.”
“The replacement can
didate is soybean meal.”
According to Palmby, the
probability of price controls
or ceilings on the country’s
raw agricultural com
modities will vary in direct
relation to price protection
or support levels on the low
side. He cited broad public
support for farm programs,
particularly from consumer
oriented legislators.
Another' factor, he con
tinued, is the “flutter which
occurs in the executive
branch of the federal
government as raw
agricultural prices are
impacted by foreign
demand.”
ETC.
CONTACT:
MELVIN WEAVER
Manheim, PA 17545
(717)569-6576
.. , A.
NORTHAMPTON
FARM BUREAU
CO-OPERATIVE
ASSOCIATION
TATAMY, PA
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255 PLANE TREE DRIVE
LANCASTER, PA. 17603
(717) 393-5807
Route 30 West at the Centerville Exit
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