World Markets and Demands 



by Stewart L. Udall 



Secretary of the Interior 



Washington, D.C. 



Mr. Chairman, Distinguished Guests, Ladies and Gentle- 

 men : I am grateful for the invitation to meet with you today 

 to discuss a subject of growing importance to all of us — World 

 Markets and Demands. 



In the short time available, we can take only a broad view, 

 possibly identifying some of the key factors in world demands, 

 and the hopes of all people for a better life. I propose to out- 

 line some of the major forces bringing changes in the world 

 market and to indicate the challenge that world trading pre- 

 sents to the North American fishing industry. 



The stark realities of nuclear-age politics compel most leaders 

 to be world-minded. The United States is committed on all 

 continents to a struggle to demonstrate the benefits of a free 

 society. 



President Johnson in his State of the Union Message ex- 

 pressed this so well when he said, "For today the State of the 

 Union depends in large measure upon the state of the world. 

 Our concern and interest, compassion and vigilance extend to 

 every corner of the dwindling planet." To emphasize his 

 interest the President has proclaimed this to be a year of Inter- 

 national Cooperation. The concern and interest of the North 

 American Fisheries also are worldwide. Markets no longer 

 are isolated. The world market is available and at the same 

 time the domestic market is part of the world market. 



I would like to discuss world demand for fishery products in 

 two parts. Let us look first at the present effective world 

 demand — that is, the consumer demand coupled with purchas- 

 ing ability that creates international trade. Then I would like 

 to turn to that part of the world population which does not 

 have the money to buy what it needs. 



World fish production and consumption have doubled every 

 10 years for the past several decades. The world catch of 

 marine fish was about 25 million metric tons in 1955; today 

 it is about 50 million metric tons and is expected to increase 

 significantly in the foreseeable future. However, the North 

 American fisheries catch has not kept pace with the increase 

 in world catch. In 1953 North America produced about 14 

 percent of the world supply of fish, while in 1963 North Ameri- 

 can nations took only 9 percent of the total world catch. The 

 main reason for this is the fact that many countries have become 

 aware of the increasing potentials for food production from the 

 sea. For example, Japan and the Soviet Union launched 

 vast high seas fishing fleets during the past decade, while the 

 North American fisheries have confined for the most part their 



efforts largely to traditional waters. The countries of North 

 America and Europe have been leaders in introducing techno- 

 logical developments for better utilization of catches but 

 increases in fisherv production have been far less spectacular. 

 Fishery catches in North America increased only 1 6 percent be- 

 tween 1950 and 1962. The increase in Europe was 38 per- 

 cent. In contrast, an increase of 1 ,500 percent was achieved 

 in Latin America, 150 percent in Africa, 130 percent in Asia 

 and 120 percent in the Soviet Union. 



Granted, the increase in Latin American production has 

 been mainly in anchovy for the Peruvian fish meal industry. 

 Nevertheless, the trends are significant — the North American 

 industry has not carried out a vigorous policy toward increas- 

 ing the use of high seas fishery resources, while other nations 

 have intensified their efforts. Our fishery industry has been 

 largely static. However, there are indications of technological 

 advancements which could spark a new growth. 



International trade in fishery products is growing. The 

 volume of world exports in 1963 was almost three times as 

 great as in 1948 and was 60 percent larger than in 1958. In 

 1963, fishery exports of some 130 countries were valued at 

 more than $1.5 billion, 50 percent higher than 1958. 



The importance of purchasing power in developing new 

 world markets Is reflected in the pattern of world trade. North 

 America and Europe combined, bought about 83 percent of the 

 total volume of world imports of fish in 1963. In contrast, 

 Africa, Latin America, and Asia together — countries with a 

 relatively low purchasing power — accounted for only about 14 

 percent of the world import total. 



As incomes and populations grow in North America and 

 Europe, there is a pronounced increase in the demand for fish. 

 However, equally important is the change in the type of pro- 

 ducts desired in these countries. Rising incomes are reflected 

 in a demand for higher priced products. As a result of this 

 shift, producers of the lower valued products are seeking and 

 finding markets in some of the lower income areas of the world. 

 This tendency for a change in income to be reflected in con- 

 sumption patterns is a significant factor for the North Ameri- 

 can fishing industry to keep in mind. And the European 

 Common Market has potential for further increases in per 

 capita disposable income. Thus we can expect increased de- 

 mand from this market area for such high valued items as crab, 

 lobster, and shrimp, the more desirable species of groundfish, 

 salmon, halibut, and the flatfishes. 



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