The Agricultural Situation in Western Europe: Review of 1973 and Outlook for 1974

Agricultural output in Western Europe hit a new high in 1973, led by a record grain crop. Red meat production was up from the low level of 1972, but still below 1971. Pork, poultry meat and milk production set new records. Further increases in livestock and crop production are expected in 1974. Prices of most agricultural products rose in Western Europe but not as much as surging world prices. The value of agricultural trade increased sharply, mostly due to higher commodity prices; U.S. agricultural exports to Western Europe rose by 67 percent to $5.6 billion. The West European economy continued strong but was much troubled by inflation. As a result of the energy crisis, a low rate of economic growth is expected in 1974 along with severe inflationary and balance of payments problems. The European Community and other governments increased price supports and other aids to farmers in 1973. Major decisions are pending on agricultural and trade policy