YEAR IN REVIEW 2000: AGRICULTURE

Fisheries World production of fish, crustaceans, and mollusks again showed a rise in 1997, the latest year for which figures were available, with a 1.8% increase above the 1996 level to 122.1 million metric tons. (See Table.) The major share of production came from capture fisheries, which remained stable at 93.3 million metric tons, or 76% of the total world production, while aquaculture provided a further 28.8 million metric tons, a 7.6% rise over the 1996 figure. This growth in production volume, however, could not be matched by the growth in the current value of the total world production. Lower average first-sale prices caused the value to grow by just 1% on average compared with 1996. A total of 92.9 million metric tons, slightly above two-thirds of the total production, was utilized for direct human consumption, while 29.3 million metric tons went for reduction into fish meal, a decrease of 6% from 1996. Statistics from the UN Food and Agriculture Organization (FAO) indicated that the nutritional contribution of fishery products to the human diet was around one-sixth of the animal protein intake. Nearly half of fishery production was consumed in a fresh/chilled form, while a further 30% was consumed as frozen products. The remaining 25% was salted, dried, smoked, or canned. China still dominated world fishery production; its capture fishery increased by 1.5 million metric tons over 1996 to reach 15.7 million metric tons of fish caught. Huge efforts and resources were devoted to developing the country's fisheries operations in both the capture and aquaculture sectors. Total production output, including aquaculture, reached more than 35 million metric tons. Peru continued as the second largest fishing nation; however, its mainly meal or reduction fishery saw a cut of 1,650,000 metric tons from 1996 to 7,870,000 metric tons. With the onset of the worst-ever El Nio weather pattern in the Pacific Ocean, the figures for the fishery in 1998 were predicted to be even lower. Japan climbed into third place with 6,688,833 metric tons, despite recording a slight fall from 1996. Chile dropped to fourth, mainly because the effects of El Nio reduced the catch of jack mackerel by some 880,000 metric tons. Anchoveta, Alaska pollock, and Chilean jack mackerel retained their positions as the top three species landed, but all showed decreases in tonnage caught. The next four speciesAtlantic herring, chub mackerel, Japanese anchovy, and capelinall showed rising trends in tonnage landed. Although anchoveta retained its place as the most prolific species, during 1997 the full effects of El Nio had yet to take effect. Forecasts for 1998 production figures already predicted a fall to a total of around 115 million metric tons, down 6% from 1997. The fish meal industry was also feeling the effects of El Nio, with a drop in output of some 2 million metric tons from the previous year. The FAO pointed out that catches in the Northwest, Southeast, and the Eastern Central Atlantic Ocean reached their maximum production levels one or two decades ago and are now showing a declining trend. It also stated that the main areas where total catches still follow an increasing trend and where, in principle, some potential for increase still exists are the Eastern and Western Indian Ocean, the Western Central Pacific and the Northwest Pacific. Martin Gill Agriculture and Food Supplies National and International Issues In 1999 world agricultural markets were affected by continued large food supplies and the lingering effects of Asian financial problems. Prices for major agricultural commodities such as wheat, corn (maize), soybeans, and pork were the lowest in recent decades. World agricultural production and food output were 1% above 1998 levels, and few countries experienced reduced agricultural and food production. (See Table I.) The few exceptions included Japan, which was liberalizing its agricultural import restrictions, and Russia, still labouring under economic and political turmoil. The increase in food output was less than the rise in global population, so per capita food production fell slightly in 1999. U.S. Policy. During 1999 the U.S. provided additional support to farmers to compensate for low commodity prices. Legislation passed in 1996 was intended to provide farmers with fixed annual support payments through 2002. Those laws anticipated rising global commodity prices, but because prices had remained low, farmers had to ask for additional support. During 1998 and 1999 several billions of dollars of additional emergency relief were given to farmers. Until 1999 swine farmers had received no support, but during the fall of 1998 and the spring of 1999, prices for live swine fell to levels unseen since the Great Depression. Some experts blamed overproduction by swine growers for the depressed pork prices, while others blamed limits on slaughter capacity or an increased concentration of meatpacking firms. The problems in the swine sector led to a debate over the effects of increased concentration of agricultural processing industries generally. Many farmers believed that concentration disadvantaged independent farmers, and they pressed for legislation to limit mergers of agricultural processing plants.