USEFUL ALGAE CHASE 447 



cient raw material is obtained in 1 picul for the manufacture of li/^ 

 bales of agar with approximately 4,000 pieces to the bale. In 1939 

 the industry was still insufficient to m«et domestic requirements but 

 the two factories in operation hoped eventually to produce a surplus 

 for export. The Japanese output of agar fluctuated only slightly 

 from 3 million pounds annually during the period 1923-31. It then 

 rose from 3.3 million pounds in 1932 to 5.5 million pounds in 1937, 

 when the output was valued at about $2,800,000. 



For the year ending June 30, 1938, Japanese production of agar was 

 estimated at about 750,000 pounds less than in the preceding year, 

 although the quality was better. For 1938-39 the yield was still 

 lower, and even lower yet for 1939-40. The sudden reduction in 

 1938 was due to the stormy weather of the previous summer, which 

 resulted in extensive damage to the seaweeds. The Japanese also 

 attributed the lower yield to difficulty in obtaining sufficient labor 

 to harvest and dry the seaweed and, later, to bleach the crop. 



The principal primary markets for imported agar in the United 

 States are New York, Indianapolis, and Detroit, where it is inspected, 

 cleaned, and repacked for distribution by manufacturers of pharma- 

 ceutical and biological products. One food-supply house in Los 

 Angeles used 43,000 pounds of agar in 1938. 



The limit to which agar has been imported into the United States 

 has been in the past governed only by Japan's ability to supply this 

 product. Normally, Japan was able to supply agar in sufficient 

 amounts to meet world requirements at reasonable prices. The prices 

 have varied from year to year; within the past 2 years the prices 

 have risen to record levels owing to a scarcity of supplies in Japan. 

 During the first 9 months of 1939, the United States imported 377,355 

 pounds of agar valued at $266,331. Since the outbreak of hostilities 

 in Europe in September 1939, the United States has imported a total 

 of 54,898 pounds valued at $46,233. It is very likely that the ship- 

 ments making up this total were cleared from Japan early in August 

 1939. 



The war in Europe has had little effect upon the wholesale prices of 

 agar in the United States. Prices prior to the hostilities had risen to 

 high levels, owing to the scarcity of supplies already mentioned, 

 thereby probably forestalling further advances in prices. Except 

 for the Netherlands Indies there is little prospect of American im- 

 porters being able to obtain agar from other countries of the world 

 in the near future. During the first 9 months of 1939, Japan supplied 

 all the agar imported into the United States except 40 pounds which 

 came from China. Since the war began, Japan has continued send- 

 ing agar to Germany by the Trans-Siberian Railway. It is interest- 

 ing to note that Germany was the largest single purchaser of Jap- 



