I. INTRODUCTION

1. The Sub-Group of Sisal and Henequen Producing Countries held its Twelfth Session at FAO headquarters in Rome on 12 and 14 December 2000. It was attended by delegates and observers from the following producing countries: Brazil, Ecuador, Kenya Mexico, Morocco and Tanzania. Observers from the United Nations Industrial Development Oragization (UNIDO), the Common Fund for Commodities (CFC) and the London Sisal Association also attended.

2. The Sub-Group adopted the agenda as presented in document CCP: HF/SP 00/1.

3. Mr Wilson Andrade (Brazil) was elected as Chairperson and Mr Odhiambo Wilson (Tanzania) as Vice-Chairperson.

II. MATTERS FOR SUBMISSION TO THE GROUP

A. RECOMMENDATIONS REGARDING PRICES OF SISAL FIBRE AND HARVEST TWINE

4. The Sub-Group, assisted by documents ESC Fibres Consultation No 1 and ESC Fibres Consultation No 2, undertook a detailed discussion of market conditions and prospects for sisal and henequen fibre and products. It noted with some concern that prices of fibre and twine were below their levels of the previous year and below the indicative levels recommended by the Sub-Group at its Eleventh Session in 1998. However it also noted some grounds for optimism, as prices had firmed in the course of the current year, and further improvements were expected.

5. It also reflected on the practice of setting indicative prices for sisal as single values rather than specifying ranges as is the practice for some other hard and other fibres. As the Sub-Group, and its parent body the Intergovernmental Group on Hard Fibres, meet only every second year, and as markets for fibres can change markedly within that period, it was felt more appropriate to recommend ranges within which prices might move, rather than single values.

Consequently, it made the following recommendations:

1. The indicative price for Brazilian No. 3 fibre should be reduced from US$630 to the range US$550 to US$600 per tonne c.i.f. European ports;
   
   
2. The indicative price for East African UG fibre should be reduced from US$860 to the range US$700 to US$750 per tonne, c.i.f. European ports;
   
   
3. The indicative price for sisal and henequen baler twine should be reduced from US$20 to US$19 per 18 kg bale of regular runnage c.i.f. United States and western Europe duty paid, where applicable, if terms were cash against documents.

B. SISAL AND HENEQUEN PROJECTS FOR THE COMMON FUND FOR COMMODITIES

6. 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 of the project on the basis of document CCP: HF 00/3-JU 00/3, and with additional information provided by delegates and observers. It noted, in addition to progress described in the background document, that field equipment had now been supplied, that small-holder production was being developed and that a report on the 1998 sisal research workshop was expected to be completed early in 2001. Other elements of the project, including a market study for pulp and animal feed trials, were reported to be proceeding satisfactorily. Two alternative proposals to study the Korogwe Leaf Spot disease of sisal needed to be synthesised. On the basis of the information available to it, the Sub-Group 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.

7. The Sub-Group endorsed the proposal that a pilot biogas generating plant be established as part of the project or as a parallel activity. It noted that the intention is for a loan to be made to the Government of the United Republic of Tanzania, to be on-lent to the Tanzania Sisal Board, the governmental agency in charge of sisal development. The Sub-Group requested that if necessary and subject to its rules, the Common Fund should show flexibility in these lending arrangements in order to ensure that all elements of the project were able to advance.

8. The delegation of Brazil presented a proposal for a new project: Sisal Agriculture Business Project in North Eastern Brazil. This had been made available to delegates as document CCP: HF 00/CRS.2-JU 00/CRS.2. The Sub-Group endorsed the proposal and urged that the Secretariat work with authorities in Brazil and with the CFC to further develop the proposal in order to obtain CFC approval for the full proposal as presented or for specific components thereof, and to initiate implementation with as little delay as possible.

III. DATE AND PLACE OF THE THIRTEENTH SESSION

9. The Sub-Group recommended that its Thirteenth Session be convened at the site of and immediately prior to the Thirty-second 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 to the delegate of Brazil, who emphasised that the invitation he had made at the Eleventh Session for it to convene its next session in his country remained open.