GENERAL AGREEMENT ON TARIFFS AND TRADE

Transcription

1 RESTRICTED GENERAL AGREEMENT ON TARIFFS AND TRADE COM.AG/W/35/Add.l/Supp. 20 November 969 Special Distribution Agriculture Committee Original: Spanish ARGENTINA Information Supplied in Respect of DAIRY PRODUCTS Supplement Page List of amendments to the information given in do cument COM.AG/W/3" 5/Add. A. Production: Production measures and policies B. Protection and support measures and policies C. Consumption and internal prices D. International trade and prices

2 COM. ÀG/w/3 5/Md. l/supp. Page 2 ARGENTINA Information Supplied in Respect of DAIRY PRODUCTS Amendments to the information given in document COM.AG/w/35/Add.l A.l. figures added. Previous figures readjusted. Statistics for casein and "dulce de leche" (a sweetmeat made of hypercondensed milk and sugar) have been incorporated. Figures for milk powder have been quoted separately. A.2. Information has been updated to include trends observed up to, and estimates for 970 production have been readjusted, and include casein and "dulce de leche". A.3. figures have been included and also cover casein and "dulce de leche" and those for I967 have been readjusted. B.I.U> figures have been included and those for I966 and have been readjusted. B.II. The information on import duties negotiated in LAFTA has been brought up to date. C.l. leche". figures have been included. Further information has been given by including casein and "dulce de C.2. Information already supplied has been brought up to date and the estimated consumption figures for 970 have been readjusted. C.3. The information has been brought up to date by adding the figures for, together with information en new maximum price measures for bottled pasteurized milk, butter and Quartirolo cheese. D.l. Information has been included on Argentine imports of dairy products and the corresponding export figures have been brought up to date by including the figures for and readjusting those for. Information on casein exports has also been included. D.2. Prices for have been added and those for I967 adjusted. Information on casein has been included.

3 COM. AG/W/3 5/Md. l/supp. Page 3 A. Production: DAIRY PRODUCTS Production measures and policies A.l. Statistical data on total volume of production Total milk production, in accordance with the readjustment, made in July 969, is estimated as follows according to use: ESTIMATED MILK PRODUCTION r ' "]'! Years Consumption Industry,490,498,589 3,00 2,737 2,953 (million litres) Total 4,590 4,235 4,542 The following quantities of derivatives wore manufactured during the three years considered: Years Butter Cheese Milk powder 46,220 40,57 39,289 74,022 57,029 77,998 MILK PRODUCTS (in tons^ 26,907 2, ,466 Condensed milk 2,93 0,520 0,30 Casein 2,563 9,002 6,387 Dulce de leche 28,024 3,59 34,97 The figures given for cheese include the three principal types as follows: Years THE! Hard cheese j» 52,528 37,456 5,4 CHEESE PRODUCTION (in tons) Semihard cheese 53,386 54,340 54,596 Soft cheese 68,08 65,233 72,288 Total 74,022 57,029 77,998 The totals given for milk powder include whole milk and partly or completely skimmed milk as follows: Whole milk 2,843 3,030 24,933 Partly skimmed,636 l,4>5,9 MILK POWDER (in tons) Completely skimmed 3,428 2,533 2,342 Total 26,907 2,998 28,466

4 COM. ÀG/V/3 5 Add. l/supp. Page 4 As can be seen the bulk of the production consists of whole niik, which accounts for nearly 84 per cent of the total. Similarly, and for the sane period, 89 per cent was of the "spray" type and the remaining per cent of the "roller" type. A. 2. Trends in production and estinates for Ç7C No definite trends are discernible with respect to overall production of niik, which has held steady at around 4,500 million litres. Variations are mainly attributable to climatic factors the influence of which is considerable in view of the method of farming used in Argentina. The manufacture of processed products shows varying trends which result in raw material transfers from one industry to another. In recent years, the transfer of milk normally used for butter to the manufacture of cheese and milk powder has increased as a logical consequence of the world crisis affecting trade in this product. Since 956, when national output reached a record volume of 65,977 tons, butter production has been declining almost continually, reaching the figure of 39,289 tons in, equivalent to 59.5 per cent of the peak figure. To find comparably low production figures of a permanent character it is necessary to go back to before 940» There is no reason to expect this trend to change to any extent in the near future. The casein industry, a subsidiary of the butter industry, shows a similar, if not more pronounced, downward trend as the production figures are equivalent to the level reached in the first quarter of this century. The cheese and powdered milk industries, on the other hand, show a decided upward trend and the figures are the highest the country has known to date. The production of "dulce de lèche", a traditional product destined almost entirely for domestic consumption, shows similar characteristics. Condensed milk production remains virtually stationary without showing any definite trend. Although no official estimates have been made, the trend of production figures over the past few years would indicate that by 970 the figures for milk products vail be as follows: Butter Cheese Milk powder Condensed milk Casein Dulce de leche (tons) 42,500 85,000 32,500 2,500 6,500 35,000

5 A.3. Statistical data on carryover stocks COM.AG/W/35/Add./Supp. Page 5 Stocks of processed products at the end of each ycar were as STOCKS AT 3 DECEMBER (in tons) follows: Years Butter Cheese Milk Condensed Casein Dulce de powder milk leche 4,606 20,76 4,650,.22 9,633,33 3,057 4,60, , ,280 22,549 4, , All these stocks of processed products are held by private undertakings. A.4. Factors which affect production In Argentina the factors that affect production are of two kinds: (a) climatic and (b) economic. (a) Climatic factors: Having regard to the characteristics of dairy farming in Argentina semiintensive farming in pasture land, with very little use of food supplements production is affected by climatic factors such as rain, drought, cold, heat, etc. that affect the growth of grass (the principal foodstuff) and the physiological functions of the producing animal. That is why the production volume, which set an alltime record for the country, was not the result of any clear upward trend but of a contingent situation resulting from the extremely favourable environmental conditions prevailing in that year, particularly during the winter season, which was mild and with sufficient rainfall. (b) Economic factors: Dairy farming in our country is an exclusive activity, in other words the producer has practically no other income than what he earns from selling his produce to consumers or to industry. He obtains the best returns from milk sold for fresh consumption, which represents less than one third of the total production volume. In general, prices for frosh milk are more or less stable and moderately remunerative and production is assured, except in the evant of unforeseeable fluctuations due to weather conditions. The value of processed products depends essentially on domestic market demand because these products are not of great significance in our foreign trade, and determines the price that the processing industry is prepared to pay to the primary producer and the volume of raw material that it can take up, consequently its capacity to increase production. Farm prices are therefore extremely sensitive to any fluctuations in domestic demands, and despite upward movements at certain times, these wide fluctuations are a cause of market disturbance that tends to discourage the producer.

6 COM.AG/w/3 5/Add.l/Supp. Page 6 Another economic factor that affects production is the price relation between milk and other agricultural and livestock products which shows a constant deterioration GO far as milk is concerned. Dairy fanning is therefore giving way tc other farming activities that offer better economic prospects and are more profitable for 3xample 5 livestock breeding } wintering of cattle, or crop cultivation. A. 5. Policies and neasurss of governments or other bodies likely to influence production In Argentina there are no measures by the Government or other bodies that are considered likely to affect production of milk and milk products.

7 COM.AG/X/3 5/Add./Supp. Page 7 PROTECTION AND SUPPORT MESURES «iflp POLICIES B.I. Internal support measures and policies B.,. Inventory of the instruments of support Neither auring the period covered by this report, that is, nor in previous years has Argentina followed any policy providing for guaranteed or support prices, subsidies or other measures directly or indirectly affecting returns to producers. There is no stock management policy administered by the Government or by quasigovernmental entities or representatives of the private sector, nor have there ever been any measures to limit the production of dairy products or processed products. B.I.2. Levels of guaranteed prices or support prices B.I.3» Amount of producer subsidies It is not possible to give any information on Sections B.I.2. and B.I.3. for the reasons given. B.I.U' Average returns to producers Over the past, three years, average gross returns of milk producers are estimated to have been as follows (in Uc4): Year US& 7,52 5,208 9b8 6,76 B.I.5. Method of determining the returns for producers First of all, the total gross returns have been calculated by adding to the estimated overall value of dairy production in the years under consideration including milk sold to consumers and to industrythe estimated proceeds from sales of producing animals or culls. The figures obtained in national currency have been converted into United States dollars on the basis of the annual average purchase rate for the dollar (source: Argentine National Bank) and the figure obtained was then divided by the number of dairy farms in the country.

8 COM. AG/w/35Add. l/3upp. Page 8 B.II. Measures at the frontier In Argentina there are no protective measures at the frontier other than those deriving from the application of customs duties. There are no quantitative restrictions, minimum import prices or other measures affecting the quantum or price of imports. Having regard to the fact that i^rgentina is a member of the Latin American Free Trade Association (luiftri.), different rates of duty are applicable to LeiFTn countries and to the third countries as indicated in the following table: Outies xn Per Cent on the c.i.f. Value Milk and fresh crea^i Condensed milk and milk powder butter Cheese Third countries 7C IOC LAFTii countries There is no duty whatsoever on Coloniatype cheese within LAFTA and special conditions exist, which are not applicable to the other countries, for imports of condensed milk and cheese from Uruguay. From 2 June3 July in pursuance of Decree No. 3,3$, import duty on SiCimmed and whole milk powder (spray) was reduced by 20 to 40 per cent, on butter and frozen cream by 20 per cent and on hard and semihard cheese from third countries by 50 per cent in order to facilitate imports of dairy products during a period which, owxn e to adverse climatic conditions, was critical for local industry.

9 COM.AG/W/3 5/Add.l/3upp. Page 9 CONSUMPTION AND INT^INAL PRICES G.I. Statistical aata on consumption Total consumption of dairy products during the threeyear period /68 is indicated below: TOTAL CONSOMPTION (in tons) Years Butter oneess Milk powder 39,56 j 63,507 23,863 36,645 j 58,06 I 24,9 I 35,827 j 67,88 I 30,873 Condensed milk Casein 2,86,853 0,52,307 0,34 2,038 Dulce de leche ~27,358~ 3,433 34,03 During the sane period per caput consumption was as follows: PJJC CAPUT CONSUMPTION (in kgs.t" I Years Butter Cheese [ l a 73! 7.2 Î.59 i 6.69 I I.49 ' 6.78 Milk powder Condensed milk! Dulce de leche C.2. Trends in consumption and estimates.for 9?Q butter consumption is clearly tending to decline. Per caput consumption diminished from a maximum level of 2,44 kga. in 954 to,494 kgs. in, this being a redaction of 40 per cent and the lowest per caput figure recorded to date. On the other hand there is a definite upward trend in consumption of cheese, milk powder and "dulce de leche". Per caput consumption of cheese in Argentina makes it one of the principal consuming countries in the world. Although per caput consumption of milk powder has risen considerably in recent years, i.e. by 22.3 per cent between and and by almost 300 per cent over the past decade, the figures are fairly low in comparison with those of other countries where liquid milk consumption also is high. Consumption of condensed milk may be considered to have levelled off.

10 COM. KG/ W/3 5 Add. l/supp. Page 0 No substantial changes in these trends are expected over the next few years. Therefore, on the basis of these data above, consumption for 970 can be forecast as follows: Butter 39,500 tons Cheese 75,000 " Milk powder 32,000 " Condensed milk 2,250 " C.3 detail and wholesale prices on major internal markets In order to indicate seasonal fluctuations the tables below (Tables 7) show monthly retail and wholesale prices for the threeyear period 68 in Buenos ij.res and the surrounding area the principal consumer market in the country for bottled pasteurized milk, butter, cheese (classified according to type), whole milk powder (spray) and condensed milk. The values in national currency have been converted into United States dollars as indicated above. As indicated, during the period covered by this report (68), the State intervened, on a number of occasions to assure the purchasing power of consumers by fixing maximum prices for fresh milk and certain milk products. BOTTLED PaSTtiURIZJliD MILK. Decree No. oil of fixing maximum wholesale and retail prices. This Decree remained in force until Decree No. 5,904. of fixing maximum retail prices. This Decree remained in force until Decree No. 2,354 of fixing maximum retail prices. This Decree remained in force until BUTTER AND g.uabtirolo dkjsjb,. Decree No. 503 of fixing maximum retail prices. This Decree remained, in force until

11 COM.ÂG/w/35/âdd.l/Supp. Page Âv Table i v l o. BOTTLED PâSTEURIZH) MILK erape Price s in United States Cents Per Litr 3 Month Wholesale j I Re bail (shop)! January February March April May June July August September October November December / z , j j b Average Table No. 2 BUTTER Ave rage Pr3 ces ; in United States Doll ars Per Kilogramme 9,68 Month i! Wholesale i Retail January February March April x»iay June July AUgUEt September October November December.0 i. i..!.4 :.07! , j ' U.8S j j Average I.04 i >

12 C OM.AG A//3 5/Add.l/Supp. Page 2 Average }rices Table No. 3 SBRINZ CHEESE in US Dollars per Kilogramme ~ 96S HARD CHEESE Month Whrlesale Retail January February March April May June July kuguq b September October No ; ember Du : ember , , C ,09.02, O , Average 0.89 I , Table No. 4 PATEGRAS CHEESE Average Prices ir US Dollars per Kilogramme 266 SEMIHARD CHEESE Month i960 Wholesale Retail January February March April May June July August Sept Tiiber October î'ovenber December O O.48 O.46 O , O , Average

13 Table No. 5 CUARTIROLO CHEESE Average Prices in US Dollars per Kilogramme SOFT CHEESE COM.AG/to/35/Add.l/Supp. Page 3 Month Wholesale Retail i January February March April May June July August September October November December Average Table No. 6 MILK PONDER Wholesale and Retail Price in US Dollars per Kilogramme of Whole Milk (Spray) Month Wholesale Retail January February March April May June July August September October November December I Average

14 COM. AG/W/3 5/Add. l/supp.. Page 4 Table No. 7 CONDENSEE MILK Wholesale and Retail Frice in US Dollars per 400 Gramme Tin ' Month Wholesale Retail January February March April May June July August September October November December " , ' 0.23 ' 0.23 ' Average :

15 COM. ikg/w/3 5 Add. /Supp. Page 5 C.4.. Factors which condition the evolution of internal consumption Since there are no promotion measures (see section C5), domestic s consumption of milk and dairy products is mainly affected by price trends and fluctuations in the purchasing power of the population. So far as butter is concerned, mention should also be made of the recent campaign to promote sales of margarine, launched by wellknown orands that carried out an intelligent and aggressive publicity programme. Although no statistics are available on margarine consumption, the consumption ratio as between margarine and butter is estimated to be 0.25 to. C 5«Policies, and measures affecting consumption There are no subsidies on consumption of milk and dairy products, and no measures or policies arj applied to promote domestic consumption. There are no external welfare schemesj domestic schemes are carried out through the Ministry of Public Health motherandchild welfare plan which provides for the free distribution of skimmed milk powder for infant feeding, financed by credits made available within the limits of availabilities. No measures to promote domestic consumption of dairy products have been applied other than those connected with the application of ceilingprices to prevent price increases, as indicated in detail in 0.3.» and those measures only affect a small numoer of products during limited periods... No sales operations of a noncommercial character have been carried out.... ' "

16 COM..AG/W/3 5/Add. l/supp. Page 6 D. INTERNATIONAL Tdt )h AND PrilCiiS D.l. Statistical data on the volume and value of imports and exports (a) Imports Product Year Volume (tons) Value (USl'000) Cheese Butter, Mi Hi powder Condensed milk 5,47, as can be seen from the above figures, Argentine dairy product imports are negligible. Because of exceptionally unfavourable weather conditions, there were some sporadic and temporary imports in. All imports are of a commercial character. (b) Exports Product Year Volume (tons) Value (tjs$»000) Butter Cheese Casein Milk powder Condensed milk 5,722 5,475,709 7,282 5,030 3,723 5,622 8,990 9, , , , , , ,898. 8,469. 8, All these transactions are of a commercial character; of exports is shown in Tables 8 and 9. the destination

17 Ta oie 8 EXPORTS OF BUTTER, CHEESE AND CnSiJN BY COUNTRY OF DESTINATION (in tons) COUNTRY Germany, Fed. Rep. Belgium Brazil Canada Colombia Chile Spain United States France Italy Japan Mexico Norway Paraguay Netherlands Peru United Kingdom Sweden Switzerland Venezuela Other countries Total ,575 5,722 Butter ,02 5,475. 3,596, , ,969 Ill ,282 Cheese Ill 78 2, , , , , ,622 Casein , , , , , , ,582 P O > S

18 d o P3 o CD H o EXPORTS OF MILK POWDER AND CONDENSED MILK BY COUNTRY OF DESTINATION (tons) I Milk powder Condensed milk COUNTRY Bolivia Brazil Colombia Paraguay United Kingdom Uruguay M Total

19 COM.AG/w/3 5/Add.l/Supp. Page 9 D.2. Levels of export prices For the principal destinations, average export prices f.o.b. Buenos Aires was as follows for the products under consideration, during the threeyear period /68. Product i Destination US& per kilogramme! Butter Cheese Casein Milk powder Condensed milk United Kingdom Peru Chile United States Italy Peru Belgium United otates Japan United Kingdom Bolivia Uruguay Paraguay Chile Bolivia Paraguay i D.3. Export aid measures and policies (a) There are no subsidies or other export aid measures for dairy products. (b) There are no stock management policies relating to exports. (c) No noncommercial transactions take place. During the threeyear period covered by this report, i.e. to, the only aid to exports derived from the arrangements to promote nontraditional exports, under Decree No. 2,93/62 and amendments thereto, providing for the reimbursement of internal taxes on these products, based on the f.o.b. value. The reimbursement could be used only for the settlement of tax debts. This system was in operation in I966 and the first quarter of, and was sporadically applied to dairy products.

20 COM.AG/w/3 5/Add.l/3upp. Page 20 From March, on the other hand, dairy products were subject to an export duty which was originally at the rate of 6 per cent and which in November was reduced to 3 per cent and was ultimately eliminated in September. D 4 Descriptxon of bilateral agreements affecting imports or exports There are no bilateral agreements affecting imports or exports of dairy products.