ilL FOOD AND AGRICULTURE ORGANIZATION OF TIIE UNITED NATIONS SPECIAL CHAPTERS In addition to the usual review of the !scent world food and agriculture situation, each issue of this report f..-om 1957 has included one or more special studies of problems of longer term interest. Special chapters in earlier issues have covered the following subjects: Factors influencing the trend of food consumption Postwar changes in some. institutional factors affecting agriculture Food and agricultural developments in Africa south of the Sahara The growth of forest industries and their impact on the world's forests Agricultural incomes and levels of living in countries at different stages of economic development Some general problems of agricultural development in less developed countries in the light of postwar experience Proaraming for agricultural development Land reform and institutional change Agricultural extension, education and research in Africa, Asia and Latin America The role of forest industries in the attack on economic underdevelopment The livestock industry in less developed countries Basic factors affecting the growth of productivity in agriculture Fertilizer use: spearhead of agricultural development Protein nutrition: needs and prospects Synthetics and their effects on international trade Agriculture and industrialization Rice in the world food economy Incentives and disincentives for farmers in developing countries The management of fishery resources Raisingagriculturalproductivityindevelopingcountriesthroughtechnological improvement Improved storage and its contribution to world food supplies Agricultural marketing improvement programmes: some lessons from recent experience Modernization of institutions to promote development Agriculture at the threshold of the Second Development Decade Water pollution and its effects on living aquatic resources and fisheries Education and training for development Accelerating agricultural research in the developing countries Agricultural employment in developing countries Population, food supply and agricultural development HE STATE OF F001 AND AG CULTURE 1975 FAO Agriculture Series No. 1 e landarculdre, WORLD REVIEW THE SECOND UNITED NATIONS DEVELOPMENT DECADE: MID-TERM REVIEW AND APPRAISAL FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS The statistical material in this publication has been prepared from the information available to FAO up to November 1975. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or con- cerning the delimitation of its frontiers or boundaries. In S0171Ctables,the designation "developed" and "developing" economies isintended for statistical convenience and does not necessarily express a judge- ment about the stage reached by a particular country or area in the development process. © FAO 1976 Printed in Italy CO ITS Foreword vii UNITED NATIONS CONFERENCES AND SPECIAL SESSION 41 Follow-up to the World Food Conference 41 Seventh Special Session of the United Nations Explanatory note ix General Assembly 45 Conference on the Law of the Sea 46 World Conference of International Women's Highlights Year 47 1.World review 1 Z.The Second United Nations 4 evelopment Decade: AGRICULTURAL PRODUCTION Mid-term review and appraisal 49 Production 1974 4 Production 1975 8 INTRODUCTION 51 AGRICULTURAL TRADE 12 Trade in 1974 12 PRODUCTION 53 Trade outlook for 1975/76 13 Effects of the weather on agricultural produc- Longer term issues 13 tion 54 Food production and population 56 Agricultural production in relationto DD2 15 STOCKS OF AGRICULTURAL PRODUCTS and national targets 58 Production of main agricultural commodities 60 CONSUMER FOOD PRICES 17 Fishery production 63 Forestry production 64 DEVELOPMENT ASSISTANCE 19 The flow of aid 19 INTERNATIONAL TRADE 66 Development assistance to agriculture 23 Main recent developments 66 The most seriously affected countries 23 Agricultural exports 67 Food imports 69 AGRICULTURAL PRODUCTION REQUISITES 25 Trade in fishery products 70 Energy supplies 25 Trade in forest products 71 Fertilizers 26 Pesticides 29 CEREAL SUPPLIES AND STOCKS 72 World food security 73 FISHERIES 30 Production and trade 30 FOOD CONSUMPTION AND NUTRITION 75 Policies and other issues 32 Consumer food prices 78 Outlook 34 FARM PRICES, INCOMES AND EMPLOYMENT 78 FORESTRY 35 Farm prices 79 Production and trade 35 Farm incomes 79 Policies and other issues 39 Agricultural and rural employment 81 Vi CONTENTS PRODUCTION RESOURCES 84 Education, training and extension 95 Agricultural investment 85 Research 97 Inerea.sing areas and yields 85 Irrigation 86 INTERNATIONAL POLICIES 98 Improved seeds 86 Development assistance 98 Fertilizers 87 Food aid 99 Pesticides 89 International trade policies 100 Farm machinery 90 Regional economic integration 101 Resources for livestock production 90 CONCLUSIONS 101 RURAL INSTITUTIONS AND SERVICES 91 Implications for the International Develop- Land tenure 92 ment Strategy 103 Credit 93 Marketing and related services 94 Annex tables 109 WORD This issue of The state of food and agriculture concentrates mainly on FA 0's mid-term review and appraisal of progress in the food and agricultural sector during the Second United Nations Development Decade (DD2) covering the 1970s.This is a revised version of the document submitted in the course of 1975, as the Orga- nization's contribution to the overall review and appraisal of DD2 carried out by the United Nations systetn.While its main emphasis is on the analysis of infor- mation available for the first four years of DD2, it also reviews the longer term trends since the start of the First United Nations Development Decade. The assessment gives no cause ,for complacency or even for satisfaction.In some instances, progress has been made during DD2.However, it has generally slowed down in comparison with the previous decade and in many crucial aspects the situation has deteriorated.Even with the subsequent good harvests in most develop- ing countries in 1975, food and agricultural production in the developing world has increased much more slowly than during DDI, and has fallen behind the growth of population.The food imports of the developing countries have risen much faster than their agricultural exports, and many of them face grave difficulties in financing essential imports of food and fertilizers.Stocks of basic cereals have fallen well below minimum safety levels.The nutrition situation has deteriorated further in many countries.Although there has been increased recognition of the need for far- reaching changes in the structure of rural institutions and ser vices, there is little evi- dence of concrete progress except in isolated cases.International development assis- tance for agriculture has recently shown an encouraging expansion, yet it remains far below the levels necessary for the attainment of the DD2 agricultural production target.Food aid has recovered, but is has not yet reached the minimum target called for by the World Food Conference. Such is the situation at the mid-point of the Second United Nations Development Decade.It is a context in which, as a newly elected Director-General of FAO, I undertook a review of the policies, programmes and structures of the Organization in response to Conference Resolution 16175.It also defines the challenges which face Member Nations and FAO in overcoming the disappointments of the agricultural sector and in enabling it to respond to the aspirations of governments and thepeoples. EDOUARD SAOUMA DIRECTOR-GENERAL EXPLANATORY NOTE The following symbols are used in statistical tables: All indices are calculated independently for the value, volume and unit value of exports and of im- none or negligible ports. Value indices represent the changes in the current ...not available values of exports (f.o.b.) and imports (c.i.f.), all ex- pressed in U.S. dollars.If some countries report 1971/72 signifies a crop, marketing or fiscal year imports valued at f.o.b., these are adjusted to ap- running from one calendar year to the next; 1971-72 proximate c.i.f. values.This method of estimation signifies the average for two calendar years. shows an error whenever the trend of insurance and Figures in statistical tables may not add up be- freight diverges from the commodity tmit values at cause of rounding.Percent changes from one year export level. to another have been calculated from unrounded Volume and unit valueindicesrepresentthe figures.Unless otherwise indicated, the metric sys- changes in the price-weighted sum of quantities and tem is used throughout. of the quantity-weighted values of products traded between countries.The weights are respectively the price and quantity averages of 1961-65, which is the Production index numbers base reference period used for all the index number series currently computed by FAO.The Laspeyres The indices of agricultural production are calcu- formulas were used in the construction of the index lated by applying regional weights, based on 1961-65 numbers. farm price relationships, to the production figures, which are adjusted to allow for quantities used for feed and seed. The indices for food products exclude Regional coverage tobacco, inedible oilseeds, animal and vegetable fibres, and rubber.They are on a calendar year basis and The regional grouping used in this publication