The Consultation provided an opportunity for exchanging market intelligence between producers and consumers and reviewing ongoing commodity development activities. The Consultation reviewed current market trends and the short and longer term outlook for the three fibres, as well as sisal twine, and a useful exchange of views took place. Participants noted that prices of sisal remained generally buoyant, although there had been some weakening in recent months. Demand remained sound, but producers had been unable, for different reasons, to increase supply in response to the improved prices. It was noted that the duty applied by the EU to imports of sisal twine, applicable mainly to shipments from Brazil, had been reduced in November 1997 from 25 percent to the former level of 12 percent.
Carpets represent an important outlet for higher quality fibre.
Some concern was expressed at the weakening of demand for carpets which had occurred during 1997, and at competition at the lower end of the market. Good quality sisal yarn required for carpet making had been in short supply, which added to the difficulties faced by carpet makers. Demand for other products such as sisal dartboards was stable. The Consultation reviewed the situation in the various producing countries. Privatization of the industry in Tanzania had been completed, and a small regulatory body was to be established by the end of 1997.