CHAIRMAN (interpretation frota Arabic): Good morning, gentlemen I wish to call to order the Third Meeting of our Commission.
J. H. FEINGOLD (observer for the International Federation of Agricultural Producers): Our Federation, representing family farmers-large and small-in most part of the world, is in general agreement with FAO’s assessment of the state of food and agriculture in 1979. Although concerned with many aspects of the subject our comments are confined, in view of the short time available, to one or two important areas which we find are either not mentioned in document C 79/2, or have not been fully covered in the debate, or should be more strongly stressed.
While the importance of various farm inputs is emphasized, little or no mentioning is made of the most important resource: the farmer and his family. Surely without their effective involvement and dynamic participation in the production process there will not be the hoped for rapid and sustained progress.
In this connection the involvement of farmers’ organizations and cooperatives is essential, not only as a vehicle of input distribution and marketing of output, but also as an instrument of making the farmer's point of view and his problems known to the planners and decision makers. Farmers, especially the small and subsistence producers, are often bewildered and perturbed by the advice they are given by extension workers, of how to improve their production methods. This is hardly surprising when farming techniques in developing countries are often imported with little regard to their suitability for local conditions. So instead of imposing new methods on farmers, the problems arising from substantial changes should first be discussed with them, through their representative organizations.
It will be found in many instances, that the result will be a blending of past experiences-traditional farming and livestock keeping systems-and modern technology which will be far more suitable to Third World conditions than techniques evolved under entirely different circumstances. Mixed cropping, inter planting, and an input level appropriate to the means and capabilities of the small farmer would achieve sustainable production and form a sound basis for further progress in future. Too often, so called comprehensive, ”packages”-seed, fertilizer and chemicals-designed and advocated by multinational companies are offered as the best way to increase production and to solve the problem of hunger. Multinational companies are obviously more interested in selling the maximum amount of their products and making the largest possible profit, than being concerned with the true welfare of small producer.
It is often not appreciated how far reaching the influence of these vast companies has become. In this connection FAO, and member governments, should study a book "Seeds of the Earth. A Private or Public resource?" published in Canada and dealing with the alarming domination by large multinational companies of the agricultural seed breeding and production industry.
It should also be stressed that many developing countries, being anxious, to ensure a secure and reasonable priced supply of fertilizer are persuaded by foreign based fertilizer manufacturing companies that they can build factories capable of producing good quality fertilizer at prices which compare well with those prevailing on the world market. A number of countries have either suffered serious financial losses or have been landed with uneconomic factories. FAO would provide a useful service to Third World countries, if they could make available studies and models of feasible and uneconomic production units, based on actual experiences in various countries.
In conclusion, the International Federation of Agricultural Producers, reiterates its believe that sufficient food and export crops can be produced provided closer cooperation between governments and their farmers is established and a mo e favourable world economic climate is created through negotiations within the frame work of the united Nation system. l /
CHAIRMAN: (interpretation from Arabic): You will recall that yesterday, at the end of the afternoon meeting, we had concluded the discussion on the World Situation of Food and Agriculture 1979 and we had decided that at the outset of this morning's meeting we would first listen to the comments and reactions of Dr. Nurul Islam regarding your statements yesterday on this first item of the Agenda. You will also recall that we had considered that with regard to the Problem of Trade and Commodities and Protectionism, we would continue discussions of that subject within the context of unofficial consultations. These consultations commenced yesterday evening, and we feel that these consultations will probably go on this morning once we have reviewed Point 6. 1, which we are dealing with now. I would like to ask my colleagues who took part in the consultations yesterday and who were unable to complete all these consultations yesterday, to meet again at the end of this meeting. I think the consultations could take place in the Canada Room (A 341). You will be informed about the way in which the situation develops regarding these consultations.
I should now like to give the floor to Dr. Nurul Islam so that he can be kind enough to tell us what his reactions and comments are to the debate and statements which we have heard.
N. ISLAM (Assistant Director-General, Economic and Social Policy Department): We in the Secretariat are thankful to the delegates for the very useful comments and suggestions they have made for the improvement of our Report on the State of Food and Agriculture. In the short time available here I will not go over all the suggestions and questions but I will confine myself to a few salient ones. For the rest of the points raised, we in the Secretariat would welcome an opportunity to discuss with individual dele gates during this Conference the various points specially raised by them and try to provide explanations as well as reactions to their suggestions.
At the outset I must reiterate that because of the brevity and the limited size of Mini-SOFA we do not intend to, nor were we able to, provide detailed explanations or elaborations on many of the statements in the document. Consequently, some of the statements because of their very nature and their being in summary form sometimes appear to be more of a generalization than they were originally intended to be or appear more sweeping than they are warranted by the analysis given or the facts provided.
This is certainly true in respect of the paragraphs on which the delegate of Libya has commented; that is, the subject of rising oil prices and its relationship to inflation and rising costs of production generally. We have taken careful note of his comments. This will help us in the preparation of our final report. Obviously, the question of rising oil prices has to be viewed in the context of general inflationary pressures caused by fluctuating exchange rates, expansion of monetary demand and the rise in other elements of costs of production. Not only the nominal price but the real price of oil in terms of other commodities has to be taken into account.
The recent rise, for example, in food prices is due to a shortfall in production in relation to the demand and it also has cverall inflationary consequences.
Secondly, I may also mention in this connexion that in some of the statements in that report, to which reference has been made by the delegates of Libya, the Arabic translation is far from satisfactory and this is liable to cause misunderstanding. This will be corrected in the final version.
Many delegates have noted the need for an analysis of the impact of energy supplies and energy cost on agriculture. I may remind delegates that we had a special chapter in SOFA in 1976 on this subject. In fact we are now engaged in a study of the interrelationship between food and energy, including an analysis of the potential of food and agricultural crops for the production of commercial energy and the implications of this on cropping patterns and food production. An expert consultation on this subject is planned by us in mid-1980.
Reference has been made by several delegates, especially those from Kenya and Angola, to the special problems and restraints on food production in Africa. The Secretariat is in full agreement with these
1/ Statement inserted in the verbatin records on request.
views, which will be reflected more adequately in the final version of the report. In fact this was the main theme of the report of the Africa Food Plan which was prepared by us for consideration at the last African Regional Conference. We are monitoring regionally the follow-up of the African Food Plan by the African countries in terms of action at the country level. The next Regional Conference in Africa will consider all aspects of the follow-up of the Africa Food Plan including production, rural development food security and food trade.
Mention was made of the importance of rubber and the need for analysis of this important subject in greater depth than is provided in the present document. I wish to inform the delegates that we have already undertaken a study on rubber jointly with the World Bank, which includes a detailed examination of supply, demand and future prospects for rubber as a raw material. We also intend to cooperate closely with the International lubber Council in Malaysia.
The delegate of Norway, and delegates from a few other countries, asked questions about our interest in and work on the role of human milk in the improvement of the nutritional status of children and on the advisability of the incorporation of infant nutrition, policy as a part of the overall and general food and nutrition policy. FAO is already supporting programmes in Member States for assisting them to promote infant nutrition policy as a part of food and nutrition policy and to encourage breastfeeding through nutritional education and training programmes.
A Codex Committee is working on dietary standards for processed food for children.
We have cooperated with WHO and UNICEF in recent meetings on this subject of infant and child feeding as well as maternal and child nutrition, to which the delegate of Norway made reference yesterday. We are also collaborating with them and other agencie s on a code of ethics to be formulated for the marketing of breast milk substitutes and supplements.
Some delegates have mentioned the need for more detailed analysis of investment.
In my opening remarks I have referred to our on-going work in this area and also to the difficulties we are facing in collecting information on this subject.
We are exploring cooperation with the International Monetary Fund and other agencies for collecting data relating to government expenditure in the field of food and agriculture. Many developing countries do not have readily available data on this subject. Often this data has to be collected from scattered sources and processed and analysed. I would appeal to the Members Countries to extend their utmost cooperation in responding to our questionnaire on public expenditures in agriculture. We are in the process of providing revised and more detailed instructions, which we hope will enable them to give a better response to our questionnaire. I am afraid that unless the Member Countries are willing to devote time, effort and manpower to collect and coordinate the data, from relevant ministries of the government, especially the Finance Ministry, and help in analysing this data for the purpose of making estimates, our efforts will not succeed.
In the countries where we have economists under our authorized assistance programmes we are calling upon their services to help Member Governments in working out answers to our questionnaire.
The delegate of Kenya referred to a possible contradiction in our analysis of the movement of sugar prices. It is true that sugar prices have recovered substantially since April 1979 when they were at extremely depressed levels.
This welcome improvement, however, reflects the hurricane damage in the Caribbean and the lower output in several other regions. Nevertheless FAO still forecasts heavy sugar stocks of 27 million tons to 28 millions tons at the end of the 1979-80 season, but we hope that sugar prices will continue to rise because they are still lower than their historical levels.
The delegate of the United Kingdom raised a very large number of questions and the Secretariat would be glad to have an opportunity to pursue some of these detailed questions with him separately and individually. The various specialists on the Secretariat would be glad to provide further clarification. But I will only touch upon one or two of the issues raised by him. For example, the need for an analysis of the differential performance of different countries in respect of agricultural growth has been referred to earlier by a somber of delegates, not only at the present meeting of the Commission but at the last biennial Conference as well.
We have tried to do something in this respect in our last session as well as the present one but I wish to make a clarification on this subject.
Firstly, we hope we have something more to say on this subject in the final version of the report but I am afraid not very much more at this stage of our work in this area.
Secondly, in respect of comparative analysis of agricultural growth in different countries we face two sets of problems-one is methodological and the other statistical. The methodological issue relates to whether it is really possible to have a satisfactory analysis or derive Meaningful conclusions as a guide to policy or action by means of an aggregative analysis based on macro-economic indicators. It appears that an analysis of the reasons for differential performance requires very detailed case studies in respect of a wide range of policy variables including magnitude and pattern of investment, institutional factors, technology as well as physical resources of land and water etc, to illustrate only a few aspects of the variables which are involved in the situation. To what extent ι for example, these causative factors or sources of growth are amenable to broad inter-country macro analysis and to what extent they would provide conclusions and generalizations more profound than we already are aware of is not quite clear. What is clear is that it is necessary to have in-depth case studies and they will indeed be worthwhile in view of the wide divergencies of specific conditions in different countries. And as the delegates are aware, these case studies are time-consuming and require a considerable amount of resources and manpowar. We very much hope that individual countries will undertake such analyses of thier own particular problems and prospects and we would aid the process and be willing to co-operate and assist. In fact, this is the kind of analysis we undertake in our planning assistance activities at the country level. We do indeed embark upon an anlysis of institutional factors, policies, resources contributing to growth when we analyse their potential and recommend policies for the future. Assuming, however, that a broad aggregative inter-country comparative analysis based on a few indicators could yield some insight in answering this question. The problem is how to get comparative data for a large sample of countries for a sufficiently long-term basis to detect differential trends in different countries. The gap in statistical information is unbelievably large.
Our experience just related to you on collecting information for making estimates of investments, not total investment but merely public expenditure in agriculture, illustrate how difficult the task is.
We have noted the suggestions made by many delegates, both here and in the Committee on Commodity Problems, that a permanent mechanism should be established in FAO to monitor developments in protectionism and agriculture.
We will carefully consider the ways in which FAO’s existing work within existing resources can be further strengthened in this biennium, always, of course, without duplicating the work done in other agencies. Here I might mention the kind of ideas we have in mind. Firstly, as the delegates are aware, we plan to issue a special study on agricultural protectionism including costs, in the forthcoming commodity review. In addition our commodity specialists are keeping changes in import policies under regular review as a part of their routine work. We shall explore ways in which this information can be made available to governments in a more regular and systematic way.
Thirdly, our intergovernmental commodity groups are also in several cases examining this question in respect of individual commodities development in which a few other points have been made by a number of delegates in calling our attention to the need for future work or calling our attention to the gaps in analysis or information. I will mention only a few of them and indicate our reaction.
For example, the role of consumer subsidy on food and its effect on food prices. This is indeed an important subject relevant to the formulation of food policy. It has wide economy-wise ramification as well. We indeed intend to cover this more adequately in our future work.
Special treatment of the least developed countries! we agree with the needs for special analysis, indeed we have a little bit of this already.
We have just prepared a special paper analysing the future perspectives of agriculture in the least developed countries in connection with the high-level expert consultation on least developed countries which UMCTAD is convening this month.
Use of food as feed for livestock production and the need for non-conventional sources of feed for livestock: this indeed is an important subject but also a very complex subject. We must resist the temptation to over-simplify this complex subject and we are strengthening our work in this area which we hope will be presented to the Intergovernmental Group on Grain. at their next meeting.
Scarcity of fuel wood and its impact on forestry development : this is a subject to which the Forestry Department is giving considerable attention in preparation for our contribution to the World Energy Conference ·
Mechanism in agriculture: this is a subject that was discussed in the last meeting of the Committe on Agriculture. We will have more of it in our Final Report on the State of Food and Agriculture.
Analysis of population problems in low-income countries and their relationship to food shortage and agriculture growth: we have done special studies on this subject on the past and indeed we have a few publications already in this area.
I will not cover all the points mentioned in the debate as I just stated, because many of these issues have been discussed in the earlier Reports on the State of Food and Agriculture. Unless there is a drastic change in the situation we thought we could wait until we again undertake to do a special study of some of these issues.
The State of Food and Agriculture 1979 in its final Report will have a special chapter on forestry and community development. As I stated earlier, in 1976 we had a special chapter on energy and agriculture and later we had a special chapter on environment and agriculture,
Lastly, the delegate from the United Kingdom mentioned that the document on the State of Food and Agriculture does not contain an analysis of FAO’s own activities and programmes in various problem areas which have been identified in this document. At this Conference we have two documents relating to this subject which are being discussed in Commission II, one a Review of Regular Programmes of FAO and the other a Review of FAO Field Programmes. These two documents can be considered as supplementary documents if you want to react this way, as they deal specifically with FAO activities in the field of food and agriculture.
CHAIRMAN (interpretation from Arabic): Thank you for this response-this very complete and lengthy response to yesterday is discussion and I would now like to put a question. Do you have any question you wish to put? Is there any elucidation you require from Dr, Islam? Is there anything you feel he has omitted in response? Apparently his answer has satisfied you all and there is no need for any further comment. My colleagues, I feel that we may well say that our discussion on the first item, the World Food and Agriculture Situation 1979, was an excellent point of departure as it were, for the work of our Commission. Practically everybody agreed that the documents prepared for this first item were excellent, despite the fact that some comments, which were always positive and constructive, were made in delegates’ statements and improved these documents. I also consider that all your statements. were most effective and demonstrated the interest you bear in these subjects. This is proven by the excellent answer from the Secretariat. This once again shows the excellent spirit in which this discussion was conducted, I do not think there is any need for me now to give you a summary of the debate. The very nature of the documents and of the discussion, make this redundant. Furthermore it will be very difficult for me to sum up so brilliant a debate. I am convinced that all the comments and all the remarks which were made were recorded and they will be found in extenso in the Report that the Drafting Committee will prepare.
And now let us say something about the second aspect of this particular item of the agenda which concerns trade and protectionist action. It is very natural that there should have been differing viewpoints. This has appeared in the course of the debate. Nevertheless, I think that it is encouraging that during the discussion everybody showed that they were willing to find a solution which would be acceptable to one and all. It is that which has encouraged me to start consultations, unofficial consultations, despite the fact that it is still too early for me to give you a report on the outcome of my informal consultations. Nevertheless I can say, now already, that the first round of consultations was carried out in an excellent atmosphere and that they were marked by a most constructive spirit and a sincere wish to achieve results that would be acceptable to all. I trust that I will very soon be able to report on the outcome of these consultations.
Distinguished delegates, dear colleagues, I think that we have finished discussion of the first item, except in respect of the second aspect, we have finished with 6. 1, and I think we should now go on to item 6, 2 of the agenda on Fertilizers.
I would like to ask the delegate from Grenada Mr. Alphonsus Antoine the Vice-Chairman to be good enough to come up to the rostrum in order to chair this meeting on fertilizers. I assume that discussion of the second item on our agenda today will occupy the whole of the remaining morning session. Let me state that we hope that the group, the Advisory Group, will be able to go to the Canada Room now already. This is Room A 341. And then I must tell you also that the Vice-Chairman, the delegate from Indonesia, will chair the meeting of this afternoon and that this afternoon's meeting will deal with 6. 3 Forestry-the "Jakarta Declaration".
Alphonsus Antoine, Vice-Chairman of Commission I, took the chair
Alphonsus Antoine, Vice-Président de la Commission I, assume la présidence
Ocupa la presidencia Alphonsus Antoine, Vicepresidente de la Comisión I
CHAIRMAN: We now pass on to sub-item 6. 2, Fertilizers-Action Arising out of the Fifth Session of the Commission on Fertilizers. The relevant document for the discussion is item C 79/19 and therefore, without further ado, I ask Dr. Dudal to introduce the item.
R. DUDAL (Director, Land and Water Development Division): Thank you Mr. Chairman. Honourable delegates, the document for this topic on the agenda C 79/19, I think it is very short and I think it is also self-explanatory, so I do not think there are elaborate comments required. I would only like to give you some additional information since the report on the Commission on Fertilizers, and this document you have in front of you, were also discussed by the Seventy-Fifth Session of the FAO Council and, as a result I should like to present to you the latest development in this field.
The Council gave full support to FAO’s fertilizer activities and endorsed the Commission on Fertilizer's report. It also supported the recommendations contained in it. In the light of the increase in fertilizer prices in the export market in recent months I should like to draw particular attention to the International Fertilizer Supply Scheme and to the Option System. You will recall that the International Fertilizer Supply System Scheme was initiated in 1974. Since then it has completed 135 supply operations to 51 developing countries, which involved 500, 000 tons of fertilizer material worth about $US 121 million. What is less known about the Scheme is that a number of recipient countries-24 up to now-have established counterpart funds worth $US 28 million. This is the proceeds of fertilizer sales provided under the IFS. In this way contributions to the IFS, by the donor countries had a multiplying effect and I think we should like to underline this that the aid provided through IFS has had a double effect, both from the point of view of counterparts in local currencies and the fertilizers themselves. These counterparts funds have been used by the governments in cooperation with FAO to support agricultural development projects, particularly those connected with fertilizers used for development by small farmers. An analysis of consumption in the most seriously affected countries receiving fertilizer assistance through the IFS indicates that for a number of countries IFS assistance constituted a major share of their fertilizer supplies. And in other countries IFS assistance resulted in higher rates of growth of fertilizer consumption than would otherwise have been possible. The reason for this is the lack of foreign exchange of MSA countries to support their fertilizer needs.
The Director-General continues to receive requests for fertilizer assistance through IFS but, unfortunately, he cannot favourable respond in most cases because the IFS resources at present are very low. A number of countries contributed generously to the IFS during the period of high international prices and tight supplies. The Director-General, therefore, has appealed to these governments for a replenishment of IFS resoures, but the response received so far has not been encouraging. On the other hand, I am pleased to acknowledge here that a new contributor, the Government of Ireland recently pledged assistance to the IFS. The need for replenishment of IFS resources is reflected by an estimate of fertilizer import requirements of the MSA countries for 1980-81. This will be 4, 400, 000 tons of fertilizer nutrient with a value at present prices and transport rates amounting to about $US 2. 8 billion for a one year period. If 20 percent of these requirements were provided through aid to the value of $US 550 million, and we sincerely hope that at least a hundred million dollars worth of fertilizer material could be channelled through the IFS through 1980-81 to assist in the most flexible and fast operational way to MSA countries who are in need of compensating exchange for import requirements.
Mr. Chairman, turning now to the option system we have to be aware that unlike the IFS the option system is not an aid programme. The purpose of the option system approved by the Commission on Fertilizers, and endorsed by FAO Council, is to ensure that MSA countries are able to purchase at least a share of their import requirement at prices comparable to those in the domestic markets of those fertilizer producers participating in the system. It will, therefore, only become operational if and when fertilizer prices in the international market rise above the level of those domestic prices.
As stated in document C 79/19 569 000 tons of fertilizer material have been committed in principle to the option system by fertilizer producers at the end of April this year. At the present time 469 000 tons of material have been committed by producers for the period of five years from January 1979 onwards. On behalf of the Director-General I should like to thank those producers for their commitment to the option system and trust that others will reconfirm their commitments. Mr. Chairman, the option system is now in place as requested by the Commission on Fertilizers and by the FAO Council, and it can become operational immediately if required. It is hoped, however, that it will not be necessary to operate the option system as work on fertilizer assistance provided through the IFS will aim at better ensuring adequate supplies of fertilizers and moderating the fluctuation in world fertilizer prices so that they will be stabilized at a reasonable level. I should like to take this opportunity to reiterate the Director-General's appeal for a replenishment of IFS resources which, as I indicated, have a considerable multiplying effect in terms of development aid and, therefore, we believe are a very effective form of aid to MSA countries. Thank you Mr. Chairman.
CHAIRMAN: Thank you Dr. Dudal for your introduction. Just before I open this subject for discussion I would like to ask you to make your discussions as brief as possible subject to the fact that you want to cover whatever you intend to say. The floor is now open for discussion.
V. DE ASARTA (Italie): La delegation italienne est très intéressée par le système d'option établi par la FAO, ainsi que par le Programme international d'approvisionnement en engrais. En tant que pays producteur d'engrais, l'Italie est ouverte à tout programme d'exportation le plus large possible et à des prix convenant aux pays en développement qui ont le plus besoin de tels moyens de production. Mais cette intention rencontre cependant des obstacles d'une certaine importance en raison de l'augmentation des charges d'exploitation, et, parmi celles-ci, du coût de la main-d'oeuvre qualifiée aussi bien que de la croissance très grave des prix des matières premières nécessaires au processus de production des engrais, par exemple les phosphorites que nos industries sont obligées d'importer à 100 pour cent de l'Afrique septentrionale et occidentale, notre pays étant totalement dépourvu de mines de ce genre.
Cependant, dans la limite du possible et compte tenu des difficultés que nous devons surmonter en la matière, l'Italie voudrait manifester sa disponibilité, étant susceptible d'offrir, même à des conditions de faveur, des engrais chimiques aux pays en développement qui en ont le plus besoin.
L. LAPEBY (Gabon): C'est la première fois que je prends la parole au sein de cette Commission, et je voudrais d'abord féliciter le Président et les Vice-Présidents qui ont été élus pour conduire ses travaux.
Le programme des engrais a été créé pour essayer de pallier une situation très difficile, notamment dans les pays en développement. Cependant, il faut reconnaître tout d'abord que les engrais constituent un intrant qui a pour objet de compléter, favorablement j'entends, la mise en oeuvre de pratiques agricoles modernes en vue d'un accroissement de la production par le biais d'un effet multiplicateur 'des rendements, comme cela a été souligné tout à l'heure. Ce programme a commencé depuis un certain temps, mais j'aimerais savoir-et ce point est très important à. mon avis, étant donné que les pays en développement ne vivront pas toujours de subventions, car j'appelle cela des subventions-si la FAO a entrepris une étude pour essayer de mesurer ce coefficient de multiplication. Je pense qu'il ne s'agit pas seulement de fournir des engrais en vue d'augmenter la production agricole; faudrait-il savoir encore si la quantité d'engrais fournie aboutit précisément aux résultats attendus, et cela à deux niveaux, notamment au niveau des petits producteurs qui n'ont souvent pas suffisamment de qualifications pour les utiliser. Il faudrait donc inclure les charges pour les amener à apprendre à utiliser les engrais. Au deuxième niveau, celui des grands ensembles dans le domaine vivrier, il ne faudrait pas que les engrais introduits dans les pays en développement servent plutôt aux cultures d'exportation.
S. A. PARVEZ (Pakistan): We have read document C 79/19 with interest and would like to compliment FAO on producing a brief but informative document. Before we proceed to comment on the contents, we would like to say a few words about the position relating to fertilizers as it exists in Pakistan. The use of fertilizers in Pakistan during the last six years has increased at a compound rate of 15. 8 percent. In spite of this increase, the overall application rate, even in irrigated areas, is only about 36-kg per. hectare, which is one of the lowest in the world. Thus, on the one hand we are faced with a situation in which there is a total realization of the fact that the use of chemical fertilizers in correct proportions, at an appropriate time and by suitable methods of application, is the most effective practice for increasing crop production and, on the other hand, a situation where this vital input is not available to the farmers in adequate quantities. While, hopefully, we expect to be self-sufficient in nitrogenous fertilizer by the end of 1981, the present domestic production of fertilizers is sufficient to meet only about 50 precent of the total requirements of fertilizer. The balance shortfall has therefore to be imported from abroad. Since the cost of imported fertilizer is much higher than the cost of fertilizer produced locally, the sale of fertilizer has to be heavily subsidized by the Government. This will indicate the extent of my Government's commitment to the use of fertilizers.
The farmer in Pakistan is highly sensitive to changes in fertilizer prices. After all, increased production and availability of fertilizer would be of no avail unless this vital input was brought within the reach of the small farmer, who constitutes a majority of the total farming community.
The cyclical trend in international prices, the recent sharp escalation in the prices of fertilizers and the formation of cartels of producers give rise to very serious concern. It is in this context that we have examined the whole matter. We would like to express our support for the efforts of the Commission, and especially of the Director-General of FAO, to complete the Options Arrangements in cooperation with interested parties, to facilitate its implementation once commitments by fertilizer producers have reached the target figure set by the Commission.
We would also take this opportunity of strongly recommending the International Fertilizer Supply Scheme and would suggest that a percentage of bilateral fertilizer aid of traditional donor countries might be channelled through this scheme to reactivate it and at the same time take full advantage of its establishment machinery and experience in this field. We also fully agree that high prices would adversely affect the capability of farmers in developing countries, particularly of the small farmers, to pruchase and use fertilizers in the required quantities, which would in turn adversely affect crop production in those countries.
This may perhaps not be the most appropriate forum to point this out, but we would like to stress that in developing countries like ours the use of fertilizer has a close relationship with the extension of credit facilities, particularly to the small farmer. Availability of fertilizer is sometimes by itself not enough. The extension of credit facilities brings this vital input within the reach of the small farmer.
I should like to say that the use of fertilizer in Pakistan is firmly established. The task of winning its acceptance by farmers is no longer necessary: in fact, now adequate availability is the cause for close and careful attention. The use of fertilizer has been assigned the highest priority by the Government of Pakistan. In this context, therefore, we would request that FAO extend its activities in Pakistan in the following fields:(i) training in fertilizer use development; (ii) study of environmental problems; (iii) study of the relationship between prices of agricultural products and fertilizers; and (iv) study on symbiotic nitrogen fixation.
We would like also to record our deep gratitude for FAO’s assistance to the National Fertilizer Development Centre in Pakistan and the offer of a possible fertilizer grant by the European Economic Community. We look forward to further positive developments in this regard. We would in conclusion like to say that there is an increasing need for aid-giving agencies and countries to extend fertilizer assistance to developing countries like ours.
J. PUERTA ROMERO (España): La delegación española, en relación con el documento C 79/19 desea hacer las siguientes puntualizaciones: Primero, la necesidad de clarificar los mercados tanto de primeras materias como de productos básicos y terminados al objeto de que los países productores exportadores de fertilizantes posibiliten la mejora de la tecnología de la fertilización en los países en desarrollo.
Segundo, la conveniencia de que la FAO canalice las ayudas en fertilizantes hacia esos países en desarrollo, haciendo hincapié en la divulgación técnica que permita asegurar la asunción de la tecnología por dichos países para hacerla realmente eficaz y así poder resolver de forma sostenida y continuada los problemas de producción que aquejan a los países en desarrollo.
Tercero, el ofrecimiento de mi país de su más decidida cooperación para el diseño y ejecución por FAO de programas de análisis de la fertilización y técnicas más adecuadas a utilizar en las diveras regiones del mundo y, en especial, en Hispanoamérica, donde dicha ccoperación, aunque desgraciadamente de forma esporádica, ya se plasmó hace algunos años en la donación de fertilizantes a algunos de los países andinos, que desearíamos continuar.
Por otra parte, quiero señalar señor Presidente, que la industria de fertilizantes en España, moderna, con plantas bien dimensionadas y buena tecnología, ha aumentado sensiblemente su capacidad productiva en el decenio 1965/75 de forma que la demanda interna supone solamente algo más del 50 por ciento de esa capacidad, por lo que cabría dedicar a la exportación el resto de su capacidad productiva. Sin embargo, es necesario tener en cuenta también que la industria española está sometida a los problemas internacionales derivados del suministro de materias primas para la fabricación de amoníaco y nitrogenados, problemas que vienen reduciendo sensiblemente la capacidad de trabajo de nuestras plantas industriales hasta el límite de cubrir sólo, y con dificultad y a precios elevados, la demanda interior, provocando consecuentemente un fuerte incremento de costes de los productos agrarios.
En resumen, señor Presidente, sería posible la colaboración española a efectos de instalación de industrias en países en desarrollo con nuestra propia tecnología; ahora bien, la aportación de fertilizantes a estos países sólo sería posible si se resuelven las dificultades de aprovisionamiento de materias primas en condiciones razonables de precio.
Para terminar, mi delegación ofrece a los países en desarrollo la posibilidad de formación técnica de personal en la propia industria española, junto a la cooperación que puedan aportar en ese campo otros países industrializados, apoyando, en definitiva, el documento C 79/19 sobre: medidas dimanantes de la quinta Reunión de la Comisión de Fertilizantes.
A. PAPASOLOMONTOS (Cyprus): My delegation has noted with regret the decline in support for the Scheme, and the non-response of governments to the appeal made by the Director-General on this issue. The International Fertilizer Scheme has played an important role in increasing production and productivity at relatively modest cost. My delegation, whilst fully realizing the deteriorating economic situation in some traditional donor countries, nevertheless wishes to urge those governments and organizations able to assist to do so, since such a contribution has a dual purpose.
whilst assisting developing countries most effectively with existing foreign exchange constraints, the emphasis has now been directed towards the small farmer. It will not only assist him in increasing his productivity, but will also have a demonstrable effect which would, over a long-term basis, act as an incentive for the small farmer who, with access to increased credit from IFS funds which are now available in most countries, can continue to make increased use of fertilizers in the future, thus increasing productivity over the long-term basis.
F. REDA (Egypt) (interpretation from Arabic): As my country is a developing country which has benefited from the International Fertilizer Programme, the IFS, I would first of all like to express my gratitude for those who helped in the implementation of this programme. I would also like to thank all those countries which sponsored this Scheme. Furthermore, I would like to highlight the problems which we have faced.
The quantities received were very helpful-we really benfited from them from two points of view. First of all we had the right quantity at the right time when agriculture really needed them. Then we took advantage of the income derived from selling these fertilizers to farmers at local prices, subsidized by the Government, so that international prices could be harmonized with local prices. So we took advantage of this to work out smaller scale projects in improving fertilizer utilization for small farmers, and also in other fields, as in the case of extentions, where we improved plant laboratories and plant equipment. There are other fields where improvement was achieved, but I shall not go into them here.
We have suffered a shortage in the last two wears; and we have also suffered the consequences of this general shortage of fertilizers. I would therefore like to associate myself with the Director-General in his appeal to donors to assist us so that we can obtain the necessary quantities of fertilizers.
P. KANGA (Angola): Ma delegation reprend de nouveau la parole pour quelques minutes afin de retenir un aspect très important pour notre pays et un certain nombre de pays en développement: le problème corrélatif aux approvisionnements en engrais chimiques. Nous avons lu avec une attention particulière
mais surtout avec une grande inquiétude le document sur la question et, dans le tableau VII, nous avons constaté une vérité toute relative. En effet, la croissance de l'utilisation des engrais n'a pas pris en considération le chiffre absolu de la quantité d'engrais par hectare cultivé. Le taux de croissance de la production alimentaire en Afrique, dont nous avons parlé hier, le démontre d'une manière très claire. Nous retenons aussi comme très important l'information qu'a donnée hier à cette Commission M. Horatio Mends, rapporteur à cette Commission. Nous avons écouté aussi et appuyé l'intervention du délégué de la Libye sur le mythe évoquant la montée du coût du pétrole. A la suite de tout cela, c'est avec perplexité que nous avons analysé le document CL 79/19. On peut dire que toutes les constatations établies dans les documents sont correctes. Cependant, on peut ajouter qu'il accuse aussi beaucoup d'insuffisances. Nous avons décidé de citer trois points: en premier lieu, le problème des prix. Nous ne sommes pas un grand consommateur d'engrais, on peut dire que notre capacité d'utilisation ne dépassera pas 150 000 tonnes, et nous essaierons d'atteindre les 200 000 tonnes; mais nous avons cette année payé le double de ce que nous avons payé en 1974 pour la même quantité et, selon le document, nous devrions remercier les pays producteurs exportateurs d'engrais pour la faveur qu'ils nous ont faite, semble-t-il, en raison des prix de session retenus: notamment (et je cite) le niveau des prix internationaux à l'exportation atteindrait ou dépasserait le niveau des prix antérieurs.
Le deuxième point concerne les affirmations qui ont été déjà faites ici établissant une relation entre le prix des engrais et le prix du pétrole. Pour cela, et pour en finir une fois pour toutes avec ce mythe, ma délégation propose que la FAO fasse une nouvelle étude générale pour nous dire exactement quelle est la réalité de la situation. Autrement dit, il importe de connaître exactement l'accroissement du coût des engrais lorsque les prix du pétrole sont appelés à varier. On pense qu'il ne sera pas difficile de trouver le financement pour l'élaboration de cette étude, qui sera d'autant plus facile à faire qu'il existe une information très détaillée, notamment chez les pays producteurs de pétrole.
Finalement, nous pensons que ces problèmes des engrais chimiques, facteur déterminant de la croissance effective de la production, se résoudront lorsque les pays en développement pourront s'approvisionner à des prix favorables et les pays producteurs doivent tout mettre en oeuvre pour aboutir à ce résultat, ou bien produire des fertilisants dans leur propre pays, afin que l'aide technique et technologique des pays développés établisse un régime de coopération. Pour cela, nous aurons besoin que l'aide des pays développés se traduise par le transfert effectif et désintéressé de la technologie. Nonobstant ces observations, nous approuvons le document.
M. M. MUKOLWE (Kenya): Fertilizers as an important input for increased yields is well recognized by many and this has already been pointed out under the International Food Policy Research Institute (IFPRI) where it is noted that. 'Fertilizers were responsible for 56 percent of the total increase in crop yields in developing countries in the years 1965 to 1976·''
Furthermore the growth in fertilizer use in developing countries has been within the range of 10 to 14 percent per year in the last 15 years.
The above observation is indeed very encouraging and so any factor or factors that would affect the supply would consequently depress yields correspondingly. The demand is already there as many countries aspire to increase food production.
Those who heard my Minister for Agriculture speaking at the Plenary Session yesterday will recall him state that the theme for the 4th Kenya Development Plan 1979 to 1983 is centred around alleviation of poverty particularly in the case of the small scale farmers, most of whom are trapped in poverty and live in rural areas. Therefore, the Government is laying great stress on the rehabilitation of coffee and tea (the chief foreign exchange earners) for increased production; intensive land-use to increase food production such as maize, wheat, rice, potatoes, sugar cane and horticultural crops.
Just to illustrate my point, the amount of fertilizers (all types but mainly phosphatic and nitro. genous) to be used this year, 1979/80, is about the same as pointed out by my Angolan friend: about 170, 00 metric tonnes, and we are hoping that this will rise. Last year it was about 150, 000 metric tonnes. This clearly shows that the farmer is increasingly out to utilize fertilizers, and it was also shown very very clearly during the coffee boom, when the coffee growers were able to spend substantial sums of money on the purchase of fertilizers. This situation is likely to slow down because the coffee boom is already over, and therefore it is going to be a hard time.
I would also like to make observations about certain types of fertilizer, such as DAP, which is extremely costly at the moment; also, various types os fertilizers vary in price between 4 percent to about 26 percent.
When looking at your document as you suggested, C 79/19, I am very grateful for your initiating contacts with fertilizer producers as well as exporters, and also the support which you gave to the option system, which at the end of April, as you said, has been about 569, 000 metric tonnes.
The only worry, as my Minister mentioned, is that of the International Fertilizer Scheme declining. This is going to be a very depressing factor, first of all because of the true price increase, and also because we have just set ourselves a target of an average rate of growth of 8. 3 percent per annum between now and the year 2000. This is going to give us a very hard time and therefore I would appeal to countries to support this scheme and really help us to come out of the problem in which we are just now.
A. RODRIGUES PIRES (Cap-Vert) Comme c'est la première fois que j'interviens dans le débat de cette Commission, permettez-moi de vous féliciter de votre nomination comme Président de votre Commission.
Ma délégation appuie sans réserves le Programme d'action d'engrais de la FAO et invite les Etats donateurs à soutenir ce programme.
Par ailleurs, j'aimerais attirer l'attention sur le fait que la priorité devrait être donnée surtout aux programmes dans les pays qui consacrent tous leurs efforts aux productions vivrières alimentaires de base. Ma délégation juge qu'il est également important que le programme d'engrais puisse être suivi par un programme d'encadrement sur l'utilisation des engrais pour aboutir à l'objectif tracé et par conséquent à l'augmentation de la production et, par là, à l'augmentation du niveau de vie des agriculteurs.
F. ZENNY (Jamaica): This is Jamaica's first and, hopefully, only intervention on this particular item so I would like to take the opportunity of congratulating you Mr. Chairman. Jamaica takes a special pride in noting that a fellow member of the Caribbean, despits its size, can be called upon to play its part in these debates and therefore we take some pride in Grenada's election, in your person, to the Vice-President of this Commission.
On the question of fertilizer, we in Jamaica are perhaps faced with what we consider to be a rather peculiar situation and which bears some mention. By the standards of other developing countries we would be considered a medium-scale consumer of fertilizer in the sense that our annual requirement at this point in time runs about 45 to 50, 000 tons a year. However, we are constrained by a number of limitations in that the growth of fertilizer use lies in the hands of the small farming population of the country which has the principal vocation of feeding the country and providing it with basic food and raw materials. However, they are conditioned by two factors. One of them obviously is price and the other is the availability of the fertilizer, and on both these aspects Jamaica is very seriously concerned.
We have been faced with escalating prices. Our foreign currency under the IMF conditions to which we agreed has suffered severe devaluation. Over a period of roughly twelve months we have witnessed a 40 percent devaluation in our currency. All of this has made it very difficult for our farming population to increase their use and their application of fertilizer. The Government is now considering as much as a 50 percent subsidy on the landed cost of fertilizer without any guarantee that this will result in the increased use of fertilizer by those who need it most. Therefore, though we are not directly concerned with the IFS, not being included in the most seriously affected countries, we do share the concern of the Secretariat, and we are even more concerned at the fact that there has been little or no response to the Director-General's Appeal. In fact we think that the whole Scheme is a bit too modest and that there should be a significant increase in it.
Having said that, there is one aspect I would like to mention for the Secretariat to note. Most of our domestic food production in Jamaica-and I am sure we are not alone, I know Grenada, for example, is in that category-the domestic food production, as I say, is in the hands of a small hillside farmer who uses very intensively with major constraints a small plot of land. It is usually a hillside plot, it is usually rain-fed, it can grow, with good husbandry, perhaps two or three crops a year. It has a multiple cropping system in the sense that he is seeking to maximize his farm. Therefore he is devoting his land area to the various traditional crops he knows best. I am not suggesting that research has not been done in this area in the use of chemical and organic fertilizer and both of them as necessary. What I am concerned about is that not enough consideration is being given by FAO to this kind of farming system with a view to bringing it within the reach of the small farmer -not the bureaucrats like myself - but within the reach of the small- farmer to optimize his production
and ensure increasing productivity. Maybe that information is in FAO. I am not aware of it personally and, if it is, I stand corrected. But, if it is, the onus is therefore even more on FAO to make sure this is available to us and that it can be provided through simple schemes to these small farmers within the constraints and within the systems that I have described so that we can try, in spite of rising prices, with the combination of what we have to increase the productivity and the standard of living of these farmers. I should like to hear a little more on that from the Secretariat.
S. M. CHOUDHURY (Bangladesh): My Government has noted with concern that international fertilizer prices, especially for phosphate and potash, have continued to rise in recent months. Diammonium phosphate prices were 45 percent higher in August than a year before, and the price of North American muríale of potash rose by 40 percent. The rise in prices is due not only to higher energy costs, but also to the recent tight supply of phosphate and potash for export in North America and Western Europe.
I repeat here the call of the leader of our delegation at the Plenary yesterday, that since fertilizer often is the mainstay of a viable strategy for accelerated increase in output, its continuous, steady availability at prices which are stable and within the reach of small farmers may be ensured through an action plan for fertilizers.
In the light of this we strongly recommend the International Fertilizer Supply Scheme whose decline in resources in recent years is of grave concern to us. We therefore join the Director-General of the FAO in appealing to traditional donors to contribute to this Scheme generously. Easy access to fertilizer at ''reachable'' prices would constitute an important step towards our efforts in achieving food self-sufficiency.
M. DUCOMMUN (Suisse) Concernant l’emploi des engrais, pour accroître les rendements des cultures, la Suisse accorde la priorité dans sa politique de coopération au développement, au recyclage des déchets organiques de toute nature. Nous pensons qu'une fumure organique basée sur le compostage, le fumier des animaux d'élevage et les déchets organiques accumulés en ville, permet d'atteindre des niveaux de rendement appréciables.
De plus, cette fumure organique accroît la qualité des sols.
Dans la mesure du possible, il faudrait promouvoir des modes d'exploitation combinant l'agriculture et l'élevage.
Tous ces procédés garantissent aussi une mise en valeur optimum des engrais minéraux.
Nous ne sous-estimons pas la valeur des engrais chimiques mais pensons qu'ils devraient être utilisés lorsque les cultures qui en bénéficient parviennent à couvrir les frais engendrés par leur emploi.
L'utilisation d'engrais et de tous les moyens de production achetés d'ailleurs devrait toujours être précédée d'un calcul de rentabilité économique et, de ce fait, nous sommes d'avis que les dons en engrais, au travers du Programme d'approvisionnement en engrais, ne se justifient pleinement qu'au moment ou les disponibilités sur le marché mondial sont insuffisantes et les prix internationaux particulièrement élevés. C'est ce que nous avons fait par le passé.
D. RICHTER (Germany, Fed. Rep. of) (interpretation from German):
The delegation of my country has adopted the Report of the Fifth Meeting of the Fertilizer Commission and I will therefore limit myself to a few aspects only.
We can reckon that demand and supply for fertilizers will develop in a harmonious manner over the coming years. Developing countries were able to substantially increase their consumption of nitrogen and phosphate fertilizers, but despite this favourable development, supported by the expansion of production capacities, MSA countries in particular are not yet able to supply their own agriculture up to the full extent required.
Against this background the option system to be established in FAO in respect of fertilizer is welcome. This scheme can contribute towards supplying developing countries on a continuous basis at adequate prices even in such situations where world prices are very high. In the Federal Republic of Germany it is the fertilizer industry which implements such a system. It negotiates on price fixing and other contract modalities with the respective contracting partner. The contracting parties will also decide on the manner in which the system will come into force.
According to the present FAO statistics the fertilizer aid to developing countries has been increased considerably, in particular within the framework of bilateral co-operation.
The Government of my country in 1978 increased its fertilizer aid to 80, 000 tonnes and has taken mainly into account MSA countries. This bilateral aid is in agreement with the objectives of the International Fertilizer Supply Scheme and FAO is notified of this. In the view of my Government the reciprocal information provided should be improved further so that donor countries can take projects requested by developing countries into account also within the framework of bilateral programmes.
A particularly important task of the Fertilizer Commission considered by my Government is the fact that efforts be made towards as economic an application of fertilizers as possible, so that despite the fact that energy and raw materials resources are limited, it is possible to reach the necessary increase in food production.
H. BAEYENS (Belgique): Ma delegation est convaincue de l'importance de l'utilisation des engrais si l'on veut espérer s’approcher des objectifs de développement agricole qui nous sont proposés. La contribution de la Belgique à l'action de la FAO en matière d'engrais se situe en ce moment principalement dans le domaine non pas du Programme international d'approvisionnement en engrais mais bien dans le domaine du Programme FAO des engrais et intrants connexes. La Belgique estime en effet qu'en raison de la situation actuelle du marché des engrais il serait préférable d'utiliser les ressources financières disponibles en les affectant à des projets du Programme FAO des engrais.
Ainsi que vous le savez, ces projets visent à initier les petits agriculteurs à l'usage des engrais, à démontrer l'intérêt de l'utilisation des engrais ainsi que d'autres intrants, de techniques culturales, d'organisations coopératives de l'approvisionnement, de la commercialisation des produits, etc. Si donc la Belgique concentre son action sur cet aspect du problème des engrais, ma délégation est néanmoins d'avis que le Programme international d'approvisionnement en engrais a rempli dans le passé une fonction importante et reste un instrument utile pour faire face aux situations d'urgence qui malheureusement ne manqueront pas de se produire dans l'avenir. C'est donc plutôt cet aspect d'instrument de secours d'urgence en matière d'engrais qui nous paraît justifier le maintien de l'IFS.
Enfin, je voudrais recommander que chaque fois que la possibilité existe, les opérations de l'IFS soient coordonnées avec les projets du Programme des engrais ou de programmes analogues, assurant ainsi que les engrais fournis par l'IFS servent effectivement à accroître la productivité des agriculteurs.
S. SHAMMOUT (Jordan) (interpretation from Arabie): As I am speaking for the first time I would like to congratulate the Chairman of this Commission and congratulate you personally also on your election as Vice-Chairman of this Commission.
As to the document we are discussing now there is no need for me to state that the availability of fertilizer for developing countries is considered as one of the main means of helping developing countries solve their food crisis, and there is no need either for me to recall that the increase of fertilizer prices on the international market has led to small farmers being unable to acquire the necessary quantities of fertilizer. I believe that it is for that reason that FAO has studied this matter in cooperation of course with the producing countries, donor countries- which have given a positive anwser to this FAO project.
As to the experience of the International Fertilizer Programme and the experience we have had with it, Jordan has already asked for assistance under that Programme in order to distribute such fertilizers to the small farmers. However, the Director-General did not attain the whole aim he required although he did everything he could to help my country in overcoming the difficulties we encountered, and this was due to the drought which hit my country. The Director-General was unable to provide this aid because the availability of fertilizers was nil and that is why we would like to have this project broadened so that other countries could also provide their support to this Scheme, so that the Director-General will be able to give assistance to countries that need aid.
M. KRIESBERG (United States of America): The United States Government wants to touch on only a few points because of the time constraints suggested by our Chairman. The United States recognizes the importance of fertilizers as part of the package of inputs to improve yields of food crops. The United States has, therefore, made substantial fertilizers contributions to the developing countries within the framework of our bilateral assistance programmes to their food and agricultural sectors. In recent years the United States has contributed some 20-30 percent of total world aid given to these countries in fertilizers. We are encouraged by the increasing usage of fertilizers by the MSA countries resulting in part at least from substantial improvements in multilateral and bilateral aid programmes. Much has been said thus far about rising fertilizer prices; we are aware of the relationship between the prices of oil-derived chemical feed stocks and the final price of manufactured fertilizers. Hence we believe, as suggested by the delegate from Switzerland that more might be done-that FAO might do more-to encourage organic fertilizer usage. FAO should encourage studies on ways in which optimum yields might be achieved through more careful application of available fertilizers and combinations of fertilizers-and particularly applying this kind of research to the farming practices of MSA countries.
While the United States recognizes the value of FAO's International Fertilizer Scheme we believe that FAO’s resources and substantial expertise might be better directed towards helping MSA countries in improving their fertilizer distribution systems, perhaps linking that with technical assistance on fertilizer usage and applications. Also FAO might help further in improving fertilizer consumption statistics, particularly in MSA, countries and thereby improve economic planning and aid in this vital input.
M. S. AL-SAYED AHMAD (Yemen Arab Republic) (interpretation from Arabic): I shall not repeat the arguments put forward by preceding speakers nor say how important fertilizers are for developing countries. However, I would like to state very briefly some home truths about the world situation in regard to fertilizers at the present time.
As you will know and as we can see from the document we are examining now, the targets of the development strategy for the Second Development Decade which provided for a 4 percent annual growth for developing countries, were not achieved and it is impossible to achieve them at this stage. Everything that was done until the end of 1978 achieved a 2. 9 percent annual growth rate only and that is why this Conference should examine a new strategy for the Third Development Decade. We must go beyond the purely academic stage where speeches are made, and set up a strategy that should make it possible for us to implement the aims we have set ourselves.
As several delegates said, the demand for fertilizers has increased by more than 10 percent over the last 15 years in developing countries. It seems to me therefore that there is a need to have a new look at the fertilizer situation during the Third Development Decade. If we look at FAO’s statistics on utilization of fertilizers-if we look beneath the surface-we find that this utilization is very slight when we compare it to the use of fertilizers in developed countries. This means that there is still an enormous capacity for absorption of fertilizers in developing countries which will make it possible to increase the yield. Of course we will have to take into account other production factors and other inputs.
The document we are discussing now, C 79/19 shows clearly that the increase of fertilizer prices was 10 percent in respect of phosphates and 20 percent in respect of potassium and the increase of these prices continued throughout 1979.
Now this, of course, is an additional burden on developing countries and, especially, on the Most Seriously Affected countries because this continuing increase in fertilizer prices and the increase in demand creates a problem and especially for the balance of payments of these countries.
And now, Mr. Chairman, I would like to say that I would like this Conference to adopt a recommendation in order to launch an appeal to the financing institutions, such as the World Bank and various financing funds so that they might give priority to fertilizer production in developing countries. I think this would constitute a very efficient and positive participation and would help developing countries in solving the difficulties that face them. These financial institutions should give priority to these production projects and provide the funds required for this at easy conditions and at the same time one should encourage projects at regional level as recommended by the Ministers for agriculture of the Arab and Gulf countries-this Conference decided a joint project for producing fertilizers in countries of that region, thus we know that some countries that produce potassium, others produce nitrogen, and regional projects will indeed be most useful to all countries.
The second item which was mentioned in document C 79/2 is that the world food production during last year was 105 million tonsm whereas the commitments for assistance to developing countries reached only 569, 000 tons. In other words, half a percent of world production. Now basing oneself on those figures we can support the appeal put forward by the FAO Director-General so that international commitments should be increased, and we propose that this Conference adopt a resolution in order to ask fertilizer producing countries to have a participation of 2 percent, that is to say 2 million tons in favour of developing countries. We feel that this would be a positive contribution within the framework of defining a new strategy for the third development decade.
M. BOUZIANE (Algérie): L'Algérie intervient une fois de plus sur cette question des engrais. Le fait de lier l'évolution des coûts des engrais à celle des prix du pétrole est naturel en soi, mais le fait aussi de mettre en relief la relation énergie/engrais par rapport aux autres facteurs qui influent sur le coût retient l'attention. Aussi, considérons-nous qu'il faut donner à cette relation sa juste dimension. Cette évolution ne saurait occulter en aucune façon le vrai problème qu'est la détérioration des termes de l'échange. Aussi est-il souhaitable de moraliser l'information en vue de démythifier la situation. Dans cet ordre d'idées, nombreux sont les dossiers qui existent au niveau de différentes instances dans divers pays pour répondre clairement et objectivement à la question. Nous appuyons en cela l'intervention de la délégation de l'Angola.
H. RIEM (Netherlands): My government thinks that the option shceme mentioned in document C 79/19, developed by the Commission on Fertilizers, is a valuable instrument to alleviate the difficulties that developing countries might eventually experience in the case of serious crisis. More generally we thind that the Commission on Fertilizers is doing very useful work and we are sure that the Commission will continue to do that in the future and to look into many of the questions that have been mentioned here by other delegations.
However, Mr. Chairman, my government does not consider that the present situation can really be called a new crisis and, for that reason, we do have some doubts whether we should share the concern of other countries and delegations here with regard to the low level of activity of the International Fertilizer Scheme. We think that with regard to the next few years, and development in world markets of fertilizers, account has to be taken of the increase in production in developing countries. In the meantime our government will continue to maintain bilaterally its fertilizer assistance to developing countries and we want here to thank FAO for its support of our operations.
Mrs. S. BENHUMAN (Yemen, People's Democratic Republic of) (interpretation from Arabic): Thank you Mr. Chairman, may I give the view of my delegation regarding the question of fertilizers. In spite of the increase in production and consumption of fertilizers in the developed countries we in Democratic Yemen find ourselves in a very delicate position like other countries in the region. Indeed we obtain very small quantities of fertilizer from the IFS-International Fertilizer Supply Scheme. But in spite of that the government buys fertilizer at very high cost and sells it to the farmers at very low cost because it is subsidized to the extent of 50 percent and that is why, especially since our country is going through a period of very serious drought, we feel it is very important to support what has just been said by the delegate of the Arab Republic of the Yemen in favour of these proposals so that the, Commission can pass racommendations along those lines. We feel developing countries, particularly MSA countries, must receive assistance at least equal to 2 percent of the world fertilizer production and that this aid should. be distributed on the basis of the area of the particular developing country.
CHAIRMAN: We have a problem here. Grenada needs to make intervention on the fertilizer issue. The present Chairman is the only member of that delegation so I am asking you to permit me to take off the Chairman's hat and put on the hat of the delegate of Grenada and make our intervention.
A. ANTOINE (Grenada): A while ago the Jamaican delegate-by the way I am now speaking as the Gre. iadian delegate-summarized for you the system of agriculture in Jamaica and Grenada and, indeed, in the Caribbean region. We endorse and we support moves to increase the use of fertilizers. We believe that one way of increasing the food supply is to increase the use of fertilizers. The Grenada delegation, however, wishes to make the point that we would like to see FAO put much more energy and much more
emphasis on the use and preparation of organic fertilizers in the system that we spoke about as existing in the Caribbean. We feel that in small-scale agriculture the use of composting, the use of mulching, the use of organic fertilizers generally will make an important and, in fact, a permanent impact on agricultural production in this region and in these systems. We believe that whereas the use of chemical fertilizers is critical, is vital, any method used by FAO to create a capacity on the part of the small farmer to make his own fertilizer-to make a part of the fertilizer he uses -will make a permanent, significant impact on food production. Indeed, we believe that generally in developing countries the small farmers can make a significant contribution in terms of creating, making their own fertilizer, and we are calling on FAO, in fact to put some emphasis on the manufacture of organic fertilizers, in particular on farms.
CHAIRMAN: Now speaking as Chairman there doesn't seem to be another speaker so I would hand over to Mr. Dudal so that he can make any additions or any comments.
R. DUDAL (Director, Land and Water Development Division): Thank you very mucy Mr. Chairman and I should first of all like to thank the Honourable Delegates for the very comprehensive review they have made to the major issue of the option system and International Fertilizer Supply Scheme and referring at the same time to the overall fertilizer activities which FAO is conducting with your cooperation.
If I may respond to the questions and comments which have been made and the four major items. First of all under the option system. We are grateful for the support which has been given to the Options System. I should like to stress that the Options Systems can now start operating immediately, because the target of 500, 000 tonnes set by the Commission on Fertilizers has virtually been reached and committed. The moment when the Options System can get into operation will depend on the relationship between domestic prices of the producers which have committed themselves and the international market price. Information will be issued in the next few days on how the Options System can become operational and giving further information on how MSA countries can take advantage of it.
On the International Fertilizer Supply Scheme, I should like to echo the appeal of the Director-General, which has been confirmed by a number of delegations present, to replenish IFS resources. I should like to express concern at the suggestion that the IFS should be kept dormant because there are fertilizers available on the market. This is correct, but they are available at prices at which a number of MSA countires - and I stress, MSA countries-have great difficulties in purchasing.
At present the IFS no longer faces an emergency situation, as it did in 1974, but there is a very derious gap in currency available to MSA countries to buy an input which is essential for their agricultural production.
There is an alternative; import more food. I do not think that this is the most effective way of going about it, because of the sheer physical transport difficulties. If we note that a tonne of fertilizer may produce, under favourable conditions, 8 tonnes of cereals, it is obvious that importing fertilizers and using them efficiently is much more effective than importing food instead. That is why I would like to dispelt, if I may, the idea that at present there is no need for the IFS: We feel there is a strong need for the IFS to assist MSA countries. One should not wait until prices are very high again, it will then be too late. We would like to advocate prevention, rather than cure when the patient is already starving. Thus the appeal made by the Director-General is most relevant in the present economic situation of MSA countries.
It was suggested that our resources, instead of being used in support of the IFS programme, could be better used for fertilizer-use promotion-which I think we do-used for improving infrastructure and distribution systems and for improving fertilizer statistics. I fully agree that these services should be strengthened but before we improve distribution systems there must be something to distribute; before we account and make statistics of fertilizer there must be some fertilizer to account for. I think we should not reverse the problem but probably address ourselves as to what comes first.
I would like to appeal to countries which have an important bilateral aid programme in fertilizers to share part of that bilateral aid through the multilateral IFS mechanism. We now have some five years' experience, we can reach recipent countries very quickly. Our mechanism is now in place and, if I may say so, seems to work very smoothly, so that needy countries can be reached in a very quick and rather effective way.
It has been pointed out that our IFS programme should preferably be linked with fertilizer-use promotion programmes. This is what we have been doing and this is now a general policy, that where IFS donations are provided they are linked to the extent possible with on-the-spot advice on fertilizer use promotion programmes, including credit, marketing, distribution, storage and pilot schemes.
We appeal to traditional donors, but we would also like to appeal to other donors. We were very encouraged by the statements made by the representatives of Italy and Spain, indicating that they have export facilities, and we would like to ask of them if they could consider joining the IFS, maybe initially on a token basis and as the programme develops further maybe on a more intensive basis.
The delegate of the Federal Republic of Germany asked us for better information on our IFS programmes. We are entirely at his disposal. We have been in contact with the bilateral development aid agency and authorities of his Government and have provided indications on possibilities for aid in this field.
I should like to inform delegations that every year we have a consultation on the fertilizer programme, where recipient and donor governments meet to exchange ideas and try to meet offer and demand in terms of fertilizer aid. Next year, this consultation will take place in March and it is open to recipient countries and, of course, to any country which would be willing to contribute to the IFS scheme.
May I now refer, very briefly because it is a very complex issue, to the question of prices, which was mentioned by almost all delegations. We share their concern about increasing prices and have therefore put very great emphasis on both the Options Scheme and the IFS, which are means available to us to try to alleviate the price pressure on a very important input. We would suggest, however, that prices of fertilizers be considered in terms of the price of the output and not looked at in absolute terms but in relation to the commodities produced with those fertilizers. I would say that a measure for discussing prices would be rather the input/output ratio than the absolute figures. Indeed prices have increased over the last months and the last year, considerably, but when comparing them with the prices of certain commodities I believe the price increases have been within, I would not say acceptable limits, but at least within reasonable limits. We do not know how this will develop next year or in the months to come, and that is why we would like to be prepared through the IFA scheme.
With regard to subsidies for fertilizer purchase by small farmers, FAO has made a study on subsidies and would be able to provide advice on the levels of subsidies which seem to be required to secure an incentive to farmers and producers at both ends.
It has been suggested that we make a study of the various elements which determine the prices of fertilizers at present, with special reference to energy inputs. I am very pleased to inform delegations that a document on the subject was prepared for the Commission on Fertilizers which met in January this year. It is available, and we will make it available to the honourable delegates from Angola and Algeria who specifically referred to this matter. We would be pleased to discuss the matter with them.
When discussing fertilizer prices, one element we have to keep in mind is the incentive required to encourage the establishment of new capacity.
We have made projections, as delegates know, for increased fertilizer use by the end of this century. The increased demand will require increased capacity, and that increased capacity will require an incentive to producers. So we have a kind of dilemma of, on the one hand, keeping fertilizer prices low so that they are accessible to small farmers and, on the other hand, providing a sufficient incentive for the production of fertilizers. So there, in between, lies the intermediate, I would say.
With regard to prices, reference was also made to the production of fertilizers in the developing countries themselves. Delegates are probably aware that in the FAO/UNIDO/World Bank working group FAO, in cooperation with UNCTAD, the United Nations and the UNDP, has carried out a number of studies over the last two years-in Latin America, the Near East, the Far East and Africa-on the possibilities of locating and establishing national and regional fertilizer production plants. Those studies are being brought to the attention of financing agencies, especially the World Bank which is encouraging investment in fertilizer production in developing countries. We are fully aware of this requirement and are addressing ourselves to it with the means available to us.
May I now refer to the last general topic, which is the effectiveness of fertilizers. The question was raised, how much fertilizers are being used for food crops on the one hand and for export crops on the other? This is of course the prerogative of Governments themselves. The way that fertilizers are used is of course entirely in the hands of national decision-makers. We have raised this question ourselves, because on a worldwide basis we have no precise figures of how much fertilizer is being used actually for food production. We have average figures per hectare and per country, but in only a few places do we have exact information about the proportion of fertilizer used for food. We shall be addressing ourselves to this question in our forthcoming Fertilizer Industry Advisory Committee session next March, where a number of studies will be presented on how much fertilizer is actually being used for food production.
Two delegations suggested that we make available to them experience in using fertilizer at small-farmer level, especially in small hill farms. We will of course make this experience available, but I should like to add that if so requested we could attempt to find extra-budgetary resources through donor governments for establishing a fertilizer programme in their country. The fertilizer programme, to which reference was made several times and which is directly addressed to small farmers in their own fields.
A last question, in terms of effectiveness of fertilizers, is the recycling of organic matter. I’ am pleased to inform delegates that we are launching a special programme in the Far East with the support of the UNDP to promote biological nitrogenous fixation, bio-gas production and the recycling of organic matter. We hope we will be able to do the same in other continents.
We have just concluded a meeting held, through the kind hospitality of the Government of India, at the end of last year, about the interraction between mineral fertilizers and organic matter to combine and reach the most effective use of both. We have published a bulletin on the experience which we gained through the study done in the People's Republic of China on organic material recycling and it is available in three languages. That means that we do attach importance to this issue. However, we feel very strongly that organic recycling can in most instances not entirely replace, and I would say in many places not even replace to a 20-30 percent share, the use of mineral fertilizers. I refer especially to tropical and sub-tropical areas, where, as you know, there is a problem with soil constraints. There are soils in the tropics which do not contain any considerable amount of Phosphorous and Potasium which as a result cannot be recycled-if we recycle zero and we end up with zero. We must keep this in mind, that experience gained, especially in temperate areas, can be only partially applied in the specific environment of the tropics. Taking this into account, I would like to assure you, Chairman, that we are giving our full attention to this very important problem which is at the same time related to making the most effective use of available energy, both renewable and nonrenewable.
At the last point know, which was touched upon, was the policy and strategy for the next development decade. I think this matter was brought up by both the Yemen Arab Republic and the Democratic Republic of Yemen, indicating that the time may now have come to give more thought to what will be the strategy for the fertilizer use in the next decade. We are very grateful for this suggestion, and will certainly follow it up.
We have dilemmas before us: on one side the requirement for food, on the other side the costs of inputs. We should like to bring it to the attention of the forthcoming Commission on Fertilizers.
If I may say so, the last 20 years of FAO’s involvement in fertilizer use promotion have been of great encouragement to us. We take a certain pride-and I think this has been acknoledged here-that we have reached probably thirty to forty million small farmers during this period. We take pride in the fact that our programme may be one of the few which have a standing order for bicycles for extension agents, to try to reach the farmers in their own fields, because this is not possible with cars and tractors. Transporting fertilizers on the head or shoulders is a very painful exercise. It is not effective, in spite of scientific recommendations and in spite of fertilizer subsidies. We have found that a bicycle makes it possible to reach the farmers from the extension side, and also makes it possible for the farmers to do ten miles rather than two to get his fertilizer to the village. We could call it "appropriate technology", but we do take pride that we are operating this programme at the farmer's level as you so often have recommended.
My colleagues are available: Mr. Mathieu, Chief of Fertilizer and Plant Nutrition Services, and Mr. Couston, Secretary of the Commission on Fertilizers, and Dr. Bommer, of course, who holds the overall umbrella, for overall activities in the various divisions. We are at your disposal for any further information which you may require-we are all here, in our offices, at any time during the period of this Conference.
CHAIRMAN: Thank you, Dr. Dudal, for your very effective and efficient summary of information and comment on this very important piece of work.
We have come almost to the end of this discussion. I would like to thank all those who have participated in the discussions in a very short time frame. They have given us a most effective discussion of the issues raised in the documentation as well as providing the FAO System with ideas. It was a good job, well done in record time. The meeting is now over.
The meeting rose at 12. 20 hours.
La séance est levée à 12 h 20.
Se levanta la sesión a las 12. 20 horas.
