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PRODUCTS: CONDITIONS OF MPETITION BETWEEN THE . AND CANADIAN USTRIES
ort on Investigation No. 332-31 O er Section 332(g) of the ff Act of 1930 as amended
PUBLICATION 2472 MBER 1991
States International Trade Commission Qton, DC 20436
UNITED STATES INTERNATIONAL TRADE COMMISSION
COMMISSIONERS Don E. Newquist, Chairman Anne E. Brunsdale, Vice Chairman David B. Rohr Carol T. Crawford Janet A. Nuzum Peter S. Watson Office of Operations Charles W. Ervin, Director Office of Industries Robert A. Rogowsky, Director
This report was prepared principally by Victoria Salin Project Leader John Pierre-Benoist, Maria A. D' Andrea, Alfred L. Dennis, Kathleen S. Lahey, and Joan Williams Office of Industries James Tsao and Stephen Tokarick Office of Economics Marc A. Bernstein and Sandra Franzblau Office of the General Counsel Chandrakant Mehta Office of Investigations Under the direction of Lowell Grant, Chief Agriculture Crops and Products Branch David L. Ingersoll, Chief Agriculture Division
Address all communications to Kenneth R. Mason, Secretary to the Commission United States International Trade Commission Washington, DC 20436
PREFACE On April 23, 1991, at the request of the U.S. Trade Representative, and in accordance with section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)), the U.S. International Trade · Commission instituted investigation No. 332-310, Alfalfa Products: Conditions of Competition Between the U.S. and Canadian Industries, for the purpose of providing the following information: 1. A description of the U.S. and Canadian dehydrated and sun-cured alfalfa products industries, including patterns of production, processing, and consumption sfoce 1981; 2.
3.
A description of the current conditions of trade in dehydrated and sun-cured alfalfa products between the United States, Canada, and the rest of the world, especially the Pacific Rim countries, and any recent changes in such conditions, including information on prices, exchange rates, transportation costs, and marketing practices (to the extent such practices have measurable effects); A description of the purpose, nature, and use of Federal, State, or Provincial Government (either U.S. or Canadian) programs and policies to assist alfalfa products, producers; and processors. Examples of such programs include programs that reduce fixed costs, programs that enhance revenues, and transportation assistance programs. When examining Canadian programs and policies, special attention should be given to:
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(a) Programs affecting Transportation Act;
transportation
costs,
including
the
Western
(b) Government-funded assistance for conversion of processing including the Western Economic Diversification Act;
Grain
facilities,
(c) Tax· rebates available to Canadian exporters of alfalfa products; (d) Government-subsidized loans to Canadian alfalfa growers, processors, or exporters; and (e) Other production, processing, transportation, and export assistance offered by Canada's national or Provincial Governments. (4) An analysis of the competitive factors in the U.S. and Canadian industries, including a comparison by market regions wherever obtainable, of prices and production costs. The USTR 's request, reproduced in appendix A, asked that the Commission provide a final report of the results of its investigation not later than December 31, 1991. Notice of the investigation was posted at the Office of the Secretary, U.S. International Trade Commission, Washington, DC, and published in the Federal Register of May 1, 1991 (91 F.R. 20021). There was no public hearing on- the investigation, although the Commission invited interested persons to submit written statements concerning the investigation.
CONTENTS Page •
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Executive Summary ...... ; . ; ...... ; .............................................. ~ .. .
i.
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·chapter 1. lnttoduction ...............· .. ; ................. ; ....................· ..... · 1-1 PurJ>Qse of study ..........................................................•........ 1-1 Overview ............· ...... , ...................................................... . 1-1 Industries and products .... ; ...................................................... . 1~1 ,t\Jfalfa pellets ................................ , ..... ·...................... , ..... . 1-3 · Alfalfa cubes .........·....................................................... ; ; . 1-3 Double-compressed bales ........................................................ · 1-3 1-3 Production and trade ....................................................... , ........ . l-7 Th.e concept of competitiveness ....................................................... . 1-7 Sttidy time frame ·and '11!1'====='1!1
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