 |
| |
COMMITTEE ON COMMODITY PROBLEMS |
JOINT MEETING OF THE
|
Rome, 7-9 December 1998 |
REPORT OF THE ELEVENTH SESSION OF THE SUB-GROUP OF SISAL AND HENEQUEN PRODUCING COUNTRIES |
II. MATTERS FOR SUBMISSION TO THE GROUP
III. DATE AND PLACE OF THE TWELFTH SESSION
1. The Sub-Group of Sisal and Henequen Producing Countries held its Eleventh Session at FAO Headquarters in Rome on 7 and 8 December 1998. It was attended by delegates and observers from the following producing countries: Brazil, Kenya, Madagascar and Tanzania. Observers from the United Nations Industrial Development Organization (UNIDO) and the Common Fund for Commodities (CFC) also attended, and informal consultations were held with observers from Portugal, Sweden, the Federation of European Rope, Twine and Netting Industries (EUROCORD) and the London Sisal Association.
2. The Sub-Group adopted the agenda as presented in document CCP: HF/SP 98/1.
3. Mr Kenneth S. Mukuna (Kenya) was elected as Chairperson and Mr José R. Andrigueto (Brazil) as Vice-Chairperson.
4. The Sub-Group had the benefit of an informal discussion with trade and industry experts. It expressed its appreciation to them, and affirmed that the exchange of information and views which had taken place had been most valuable.
5. The Sub-Group, assisted by documents CCP: HF 98/2-JU 98/2 and CCP: HF 98/3-JU 98/3, undertook a detailed discussion of market conditions and prospects for sisal and henequen fibre and products. It noted with some concern that, in the light of intense competition from polypropylene coupled with weakening of economic growth in a number of markets, prices of both fibre and twine might experience some downward pressure. At the same time, the Sub-Group did not wish to give the wrong signal to the market regarding prospective market conditions, and it decided therefore to recommend that indicative prices should remain at the level set at the Twenty-ninth Session of the Intergovernmental Group on Hard Fibres in 1996, that is:
6. The Sub-Group was pleased to note that the duty imposed by the European Community on imports of sisal baler twine, applicable mainly to shipments from Brazil, had been reduced in November 1997 from 25 percent to its former level of 12 percent. It felt, however, considering the strong competition currently evident from synthetics, that the duty on this environmentally-friendly product should be abolished entirely. It also noted that the potential market for sisal baler twine was limited by the availability of haymaking equipment which is designed mainly to use other materials. It recommended that attempts be made to persuade manufacturers to provide machinery suitable for a wider range of twines.
7. In order to support the Intergovernmental Group on Hard Fibres in its role as Supervisory Body of the project "Product and Market Development of Sisal and Henequen Products", the Sub-Group reviewed progress on the project on the basis of document CCP: HF 98/8-JU 98/8, and with additional information provided by delegates and observers. It concluded that the project was making good progress, and it looked forward to the advantages which would accrue to the industry following its successful conclusion. The Sub-Group endorsed the decision which had been made at a meeting of the Project Coordinating Committee in November 1998 to include in the project a survey of the Korogwe Leaf Spot disease, in order that a proposal to combat the disease might be developed. It also requested that information on the use of sisal in various non-traditional applications be compiled if sufficient resources were available to the project. It requested that the report to be made to the CFC on behalf of the IGG as the Supervisory Body reflect these views.
8. In considering new projects which might be developed for submission to the Common Fund, the Sub-Group had before it two project ideas, "Agricultural Production and Processing of Curauá Fibre for Use in the Automotive Industry" (CCP: HF 98/CRS.1-JU 98/CRS.1) and "Program for the Development of the Sisal Pole of the State of Bahia" (CCP: HF 98/CRS.2-JU 98/CRS.2). With respect to the project idea "Agricultural Production and Processing of Curauá Fibre for Use in the Automotive Industry" however, it noted that virtually no curauá fibre was produced, and it did not consider it appropriate to develop applications for this fibre at a time when other hard fibres, already produced in considerable quantities, faced difficulties finding remunerative markets. The Sub-Group endorsed in principle the project idea "Program for the Development of the Sisal Pole of the State of Bahia", although it recognized that some elements of the proposal were no longer relevant, and that the project should, if possible, be directed at more than one country. The Sub-Group recommended that a proposal suitable for submission to the Common Fund be developed from this project idea by Brazil, in consultation with UNIDO, the CFC and FAO. It recommended that an element to develop the use of sisal and other hard fibres in the automotive industry be included in this proposal, and that the cooperation of the Mercedes-Benz company be sought in this work.
9. The Sub-Group recommended that its Twelfth Session be convened at the site of and immediately prior to the Thirty-first Session of the Intergovernmental Group on Hard Fibres, and taking into account any decisions reached by the Committee on Commodity Problems regarding the functioning of its subsidiary bodies. The Sub-Group expressed appreciation for the invitation extended by the delegate of Brazil to convene its next session in his country.