| CCP: HF 00/4 - JU 00/4
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| CCP: HF 00/4 - JU 00/4
|
COMMITTEE ON COMMODITY PROBLEMS |
JOINT MEETING OF THE THIRTY-FIRST SESSION OF THE INTERGOVERNMENTAL GROUP ON HARD FIBRES AND THE THIRTY-THIRD SESSION OF THE INTERGOVERNMENTAL GROUP ON JUTE, KENAF AND ALLIED FIBRES |
Rome, 12-15 December 2000 |
REPORT OF THE INTERSESSIONAL
CONSULTATION ON FIBRES
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II. CURRENT MARKET SITUATION AND SHORT-TERM OUTLOOK FOR SELECTED NATURAL FIBRES
III. MARKETS FOR JUTE/KENAF IN CHINA
IV. DEVELOPMENTS REGARDING PROJECTS FINANCED BY THE COMMON FUND FOR COMMODITIES
1. Following the recommendation of the Joint Meeting of the Thirtieth Session of the Intergovernmental Group on Hard Fibres and the Thirty-second Session of the Intergovernmental Group on Jute, Kenaf and Allied Fibres, in December 1998, an Intersessional Consultation on Natural Fibres was convened in Poznan, Poland, on 15-16 November 1999. It was hosted by the Institute of Natural Fibres and was attended by 21 participants from 10 countries in addition to delegates from the International Trade Centre UNCTAD/WTO and the Asian and Pacific Coconut Community (list of participants attached) and was chaired by Prof. R. Kozlowski, Director of the Institute of Natural Fibres. The agenda included market developments and short-term outlook for fibres, the jute market in China, a review of projects financed by the Common Fund for Commodities, a seminar on research into new uses of natural fibres and a visit to the various facilities of the Institute of Natural Fibres. The Consultation provided an opportunity for exchanging market intelligence between producers and consumers of natural fibres, for reviewing ongoing commodity development activities, and for considering a range of alternative applications for fibres.
2. The Consultation reviewed current market trends and the short and longer term outlook for selected natural fibres including jute, kenaf, sisal, abaca, coir as well as sisal twine, and a useful exchange of views took place. The Consultation also considered synthetic fibres competing against these fibres.
3. Jute, kenaf and allied fibres: participants noted that export prices of raw jute recovered considerably in the early months of the 1999/2000 season after remaining stable at a low level over the previous two seasons. The Consultation concluded that high levels of stocks have prevented prices from rising substantially. The stocks of the major producing countries, at about 970 000 tonnes at the end of the 1998/99 season were equivalent to some 44 percent of the level of mill use.
4. The Consultation observed that at growers' level, prices of jute relative to alternative crops, particularly rice, remained more remunerative in India than in Bangladesh. In view of continuous loss of market for jute, it was suggested that the development of a new strain of jute plants with shorter duration would make jute more competitive with alternative crops. The Consultation requested FAO to undertake a study on social cost/benefit of production and use of jute.
5. Sisal and henequen and allied fibres: the Consultation reviewed prices of both African and Brazilian sisal and noted that a sharp fall took place in these prices towards the end of 1999 reflecting a slackening of demand and an accumulation of large carryover stocks. It noted that export prices of sisal twine fell in line with those of fibre prices in 1999, and it expressed concern that continued adoption of advanced hay baling methods that need less twine led to a loss of market for both sisal and polypropylene twine.
6. Abaca: the Consultation reviewed abaca prices and noted that they recovered in the course of 1999 from a declining trend experienced since 1997, reflecting the effect of a typhoon in the Philippines in late 1998 which reduced supply.
7. Coir: the Consultation reviewed the world coir market and noted that the world production of brown coir fibre would recover sharply in 1999 to some 266 000 tonnes resulting from a further rise in production in India, the largest producer, which compensated for a decline of around 5 000 tonnes in Sri Lanka, the other main producer.
8. The Consultation noted that global coir fibre exports recovered slightly in 1998 to over 60 000 tonnes. Sri Lanka remained the dominant exporter with over 85 percent of the world total but exports from this country are forecast to decline in 1999 to some 48 000 tonnes.
9. Participants from India and Sri Lanka expressed concern that a recent sharp rise in ocean freight rates was affecting exports of coir fibre and products from their countries following a merger of big shipping companies. The Consultation requested the assistance of FAO in combating these costs.
10. Polypropylene: the Consultation noted that prices of raffia grade of polypropylene, the raw material for synthetic products competing against natural non-apparel fibres had declined between 1995 and early 1999, but this trend was reversed in the second quarter of 1999 when they increased to US$570 per tonne in western Europe from US$550 in the previous quarter.
11. The Consultation reviewed the market situation and prospects for jute in China on the basis of a draft document circulated at the Consultation. The Consultation noted that China imported an unusually large amount of raw jute in 1997 and 1998 due mainly to the adoption of a policy of transporting grain from three northern provinces to south China provinces. As this policy was not followed in 1999, the volume of imports fell to a more normal level.
12. The Consultation noted that the Chinese jute industry was suffering from over-capacity and lack of investments for diversification.
13. The Consultation reviewed developments with the various projects being undertaken with finance from the Common Fund for Commodities. The Consultation noted that the two projects on coir, which have been under way since 1994 and 1995, have been completed; work on a project on sisal was well under way; and a project on abaca had commenced. A new project to develop the use of coir for building and packaging boards was commencing.
14. A report on the outcome of the project "Product and Market Development of High Value-added Coir Products" was distributed and participants noted that considerable potential exists for increased exports of geotextiles, coir peat and rubberized coir. Some concern was expressed at slow progress with the project "Product and Market Development of Sisal and Henequen Products" and the Consultation hoped that activities on the project would soon be resumed with vigour.
15. It was agreed that a new project proposal on "Establishment of a Plant/Demonstration Unit/Training Facility for manufacture of brown coir fibre and products" should be submitted for consideration by the CFC.
16. On the second day of the Consultation a seminar took place on research into new uses for natural fibres and inspection of the various facilities of the Institute of Natural Fibres including a trip to its experimental factory outside Poznan which processes flax/hemp.
17. The seminar was opened with the presentation of a paper by Prof. R. Kozlowski, Director of the Institute, on "Green fibres and their potential and research into new uses". It was followed by presentations on the future for jute in diversified uses, the role of natural fibres like sisal and curau� in the 21st century, the potential of coir fibre in areas such as geotextiles, car seats and coir peat and on the various uses of hemp fibre and its waste material such as paper pulp, animal feed, horse bedding and poultry litter.
18. The Consultation emphasized the need for studying more closely the physical properties of various natural fibres and for assessing further the prospects for various non-traditional applications.
19. It was noted that the Committee on Commodity Problems (CCP) at its 62nd Session in January 1999 endorsed the convening of joint meetings of related IGGs, and requested that efforts be made to organize on a trial basis one or more ad hoc conferences dealing with related commodities. In line with the first of these recommendations, and following the success of the first Joint Meeting of the two Groups in December 1998, it had been determined by the FAO Conference in November 1999 that the two Groups should again meet jointly. The Consultation was advised that it had been tentatively proposed that the next joint meeting of these two Groups be held in conjunction with a commodity conference on natural fibres.
20. The Consultation welcomed the idea of holding an informal conference on fibres in conjunction with the next joint session of the IGGs on Hard Fibres and on Jute, Kenaf and Allied Fibres and requested that adequate separate time be allocated to discussions of individual fibres. One participant suggested that the Groups should hold sessions separately. The Consultation also requested another Intersessional Consultation on natural fibres in around two years' time.
21. Participants were informed of an international conference on "Bast Fibrous Plants on the Turn of Second and Third Millennium" in Shenyang city of China from 18-21 September 2001.
22. The Consultation thanked the Institute of Natural Fibres, as well as the Mayor and the City of Poznan for making arrangements and providing facilities for the Consultation, and for the warm welcome participants received to the city.
| BRAZIL ALLEGRO, Luca FERREIRA, Ismael LE�O, Alcides L. MOTA, Luiz BULGARIA BALABANOVA, Ms Alexandra CHINA WU Wei CZECH REPUBLIC PAVELEK, Martin SMIROUS, Prokop ECUADOR VILLAG�MEZ �LVAREZ, Hern�n SATORA, Ms Agnieszka GERMANY CLASEN, Peter KELLNER, Ms Susan R�PPELL, Rainer |
INDIA KUMAR, Ajit PAKISTAN PERACHA, Azhar M. VALJEE, Mazhar POLAND BURCZYK, Henryk KOZLOWSKI, Ryszard MACKIEWICZ TALARCZYK, Ms Maria SRI LANKA PIYASENA, Indrajith TILLEKERATNE, H.A. INTERNATIONAL TRADE CENTRE UNCTAD/WTO CHAND, Vinay SANDANA, Antony ASIAN AND PACIFIC COCONUT COMMUNITY PUNCHIHEWA, P.G. FAO LASKER, S.R. MOIR, B. |
