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UNITED STATrS TEPARTIMET OF AGRICULTURE
Bureau of Agricultural Economics
. .oE.A OTi
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October 12, LLS93EPOSITORY
,WOQJELD :DG AND PORK PROSPECTS
S" "..Sui E .2ry
An advance in hog prices occurred during September in both the United
Mtee and Europe. Reduced slaughter supplies were largely responsible for the
$kK rise in this country. Prices of pork w:re steady to higher, on both
,|Atlc and foreign markets during the mon Th. Lard prices were sharply higher
4 rany in September, but in the United States and Great Bfltaid ;prices
Inspected hog slaughter in the United States during the 1i32-43 .market-
.m..year totaled 47,103,000 head, not including pigs and sows purchased on
PiA *nant account. This was the largest slaughter for ar year since 1928-29.
,e of the relatively large number of pigs purcharcd under the emergency
~utn ,pro&rcn of the Federal Government, a material reduction in commercial
."iJ1anghter during the first half of the present marketing year apo ers prob-
British bacon imports in Scptember were larger than in August, but they
*l'o011 uni.cr those of a year earlier. The status of the quota on bacon and
I...imrortc into thc Unitud Kindo'n runains unsettled, although sniplunentp from
E:a countriess apparently are now bcin., nmde on the basin of a further reduc-
;,On In the qrota. This redaction ,aB3 originally schdaul'd to become effective
ft bomber 15.
United States exported of both pork and lard during August wcrJ slightly
jiler tnan in July, but thoy weru larger than in August 1932. Total la-rd
Oqrts for the first 11 months of the 1932-53 marketing year were 2 percLnt
.i. or da pork exports were 6 percent larger than in corresponding months i:.
4A., AL- ,
A matcricl reduction in slc.ghtcr supplies aed scanonably cool-r weather
resultj.l in c si-;rp .:dvancc i,? prices d'rring Suptember. The top price of
hogs nt Ch:-anco tril.a early Octcr of $5.55 Wv.s the hi-ghest price paid at
that .nrkot thus i-.- in 1933, a-i it hias not bo;cn xcccded since October 1931.
Prices of ::,ll .-tintsof butcher 'og? and packing sows advrjced during. SoptArr.bor
but ;rices of liiht end medium w. i;.t bogs are still relativel,- high i o. Com-
pared vi.t'1 ;-prccE of other kinds of ho s. TLe c.vcrge rice of hogs at
Chic-.oJ in Sey tcrbr" w-.s $4.24 per 100 polnds comp)ar-ed with $3.?'7 in August and
$4.00 i S3L.j t.-r.;._r, 1932.
I n. c :,.. elau.-htc.r of ho,.; during Sr-ctrbe.r tot,-lin 3,038,000 .cead
w-3 12.f ... :.,it :;'.llci thn,: in Au.ust id 6.6 percent zr.iallcr thn the record
Si'pt.'no r r -.r t ler lact :-icr. Slt,..:t.r d',rin-: St.pt...mnbLr this year, however,
was the fort.: lcr .. t for the :?.0nt. on record. For thz first time since :,i:rch
sliaut-. r -'-.j r I d l.1 iin.-pertion 3 small r thaL. i:L t he correspoading month
a y0.r cr." .:r. S-; ...t-. i-nd.cr Fc..r:.l inspectio:i during the 5 months iryi to
Septc .;j.r, t1. r.c.nr';.ti:i. c,-'son for th. fall, pi,, crop, totaled 19,341,000 head,
which r,--vsr ..ted ar. i.-cr.-asc of 18.6 porcc:it over that acricd last .ear.
Slru;nter doaiiL-. t.h '.;e,- to Scpt -.or period t:iis :'e-.r '.v-- the second largest
for ti)-scz i,. .;:s on rc rcor, r a. it coastitutc:d the seco.di lirgt.st proportion of
the tot-1 .ic.ri- tin-_ yc-r s1-ir nt, r .wn rcc-ri.
I.:. ;cct I ..:l;.ntcr du-ri., the :nar!:.ti in nr wnicn ueded Scntc'nbcr 30,
1933 arn iteid to 17,103,0.0 iac.d, th !.:.t.r L3t f -r any yc-'r since 1928-29. The
incre-.7, 'v.. r I 91-32 wrs -bout 148,000 icvd or 1 percent. The avcra.e live
:'it t rf '-o .- s.u ;..tcIred in t":w 1932-33 mrnrx.ctinj y.:rr wrs about 2 perc-nt
lor ;r t.::. i:: 1931-32, eand ns r~ result the increase in the totnl liv-' weight
of h :cs sl .uitercd under Federal i.s section was relatively ;re.xter than. the
iucr,-3c i:n the nu.nbc.r of head slr( itc:red.
The cr.-.r,_eLy pr.:_.r-.t, incu,1,urr.ted b;. t.:: Department of .Agriculturc in
late .oufast to rdu'.-:c ',ho:::. marketin-s duri:.-, trhe 19o3-34 marketing year wv-s
tcrminitc- SeptA.1br 29, 1933. Under this program approximately 6,200,000 'pi'
weighi.., ics t::arn 100 pounds .nd .about 200,0.0 cows due to farrow this fall
oad woeihini. in c-xcei.s cf 240 p:xlnd:. wcre purchased for slaughter. Oily a sma
proportion of this siau ;hter ivas used for th3 production nf edible products,
and tic-m- ),r,.ucts -re not entering- the regular distribution ch-nnols.
Corn- prices -vcr,-..jged lower in Sentc:ibe-r th.n in Au.ust. The average pr
.f No. 3 Yellrv. c'rn -.t Chicc. a for th..- r.,ont' was 47.5 cents per bushol corr-
pared c.ith 01 cc:.ts in A: ust and 30 c.--ts in Septemb.r 1932. Based on farm
prices :. of the 15th f the cmnth, the ho -c. ni price ratio in the North Cen
or C)r-: B.it States w.s 9.2 in September, .v.ile in Aungust it wa.s 8.9, .-';d in
Scpte:nb:r l.-st ,year, 15.6. The rel-tioiship between hoL, prices .aid c)rn pric
has be-a relPtively unf:avorable for h'h production since early in the smncr. o
T1e3 JunL- Pig Report ir.nicarted L- l.r,;: i::cr-:e.se in the number of sows to
farrow iL; t-hc frll season of 1933, but developments si.ice June 1 indicate a
material c.i-:.,c ini fall farrowinrw plans from tnnse indicated at that time.
Drou-ji.t ,v:.r widespread nrea.s resulted in .a narked reduction in the 1933 cdrn=
crop, w'.ic.i is abjut 20 percent siall r thnas the 1932 crop and is the third
smallest in at lest 35 years. The relationship between ho0; prices m2id corn
prices, as indicated in the preceding paragraph has been unfavorable for her
production since June. From July 1932 to April 1933 the- hr'g-cor price r-.tio
was relatively hihJ.. The unfavorable rleltionj hip betw..en ho; prices and
corn prices .which irs prevailedr during tLhe sumr:.r, to.jothcr with t-i purchrlse
of about 200,000 pre;-ant sows under emrcrgncy rr.,duction cc-itrol or );rtm is
likely to result i:: little if .::/ increc.se in t':. 1933 fell pi crrop over thv.t
of 1932, with decrease not iI.!-r)bablc.
SWh';lc-sOElc prices )f fresh pork ..dv;.i,c-d duri;.-: m~;_ t of Septc.::br. Cured
pork jricccs ;:d lard tJriccs were sterd:.' to ioWdcr durir., the ':.or.th. T:2
composite w'-.olesrl. price of h.e,' prolucts at Icwv York a.-.s $11.C5 ,.r 100
pounds in c- -;t-r.bor compared with $11.33 i. A..t-ust .:;-d $11.60 in Sctenbcr,
Exo ,rtz of both pork and lard Ilrin. A. ar-t wvcrC :li .htly sr.:all-r ti;.
in July. -a'rk exports, however, were c::.sidcrably larger thln in A'.,.. st IC32
and lard cxn-rts -..;re sli.;htly lar .or. 1Tt-i I-.rc. e:z.prts for the first 11
months -f t:-. 1922-33 r.ar:eting yecr ',erL 2 perce.it l.r.,er erni -ork e::orts
were 6 pcrc.::.t l.r.. r t--i in the corresponding months rf 193_1-32. T.:c in-
crer.se iLn c-:: irts, ihocv..r, has b;c.n relatively rmuch lss tl-h tu.c inrcLi ?.s ir
ho- sl.t'ui>t.-r Turinr this period.
E:p-;rts of hr:;..s -~i shou- lders -a:d :-1,sj b-'co:i in A;-iju.t '.ore !..-i.tri.lly
lar-er t .hra. ri the correr.pondinr- m7.t}h las !t year. Ship::---its of ha!n!s .-:d
shoulders :.'..untin. to 7,631,000 ,pou'.ls wo.re ore thn 80 pcrcn-t lar or than
a yerr c-rliLr, but they vwerc about 20 prc,-r.t less th.e.' in July. T-.:si' cuts
are e.portc.d chiefly to the Unitcd Kin..dom. Bacon exports in Au;.xst totalrn.
1,841,000 pounds were about 200,000 pounds larger th:.n in JUly:. ri-d .-b)at
800,0)0 pcun:..s lr.r;;.r tr.an in Au ust Irst yea'.r. Sweden, Cub., the hUitcd
Kin-d-Lia ?..d It:.ly :orc the princip.I importers of bacon Jurin; tht- mnntl- i: the
order nr-mL-. United Str..t.s -::pc-rtr of bac-n aret still relatively smn1ll cor.
pared '.ith shipr.L.A.ts pri-r to 1931.
E::;orts of l:.-rd during : Ai. ust r.:u--it.-' to 36,195,0.30 po-unds. Shipi:acts
to tha Unit. Kin Jo:.i durin tar. ..o.nth total-in 21,277,000 v.crc about 9 por-
.cent s -.llr thrn in July, out the; w re more thrn 40 percent lar ,r t.nn' in
Aueust 1932. Lr-3.l experts to G..r-.-ny in Au:uist of 4,425,000 pounds ivere about
2,000,0:3O j'-inds -:rent-'-r thl,- in the precedin -:..onth, but they were- lasr tlha
half as Il.r.l; rs i;L Au:,ust Inst year. T..c :ns-rk,-d decresen i.: o.i-pr.:::ts Jf
lard tb GL-rmr-ny in recent r.nti.s co.:.Tparei with "- year r;.o is l:vtrJly a reflcc-
Stion 3f t.: sl.r.rp i.ncrrases in Gerr.n import duty on cl.rJ since J-':uarry of
Wit:i rcspcct to prfbabl, :'.or:-rtic si:.l: htt r rup'lics d;rin..: the cr..::i
fall .vl wiL-.tc-r, the follow, :- stat-. rrnt ap) xarcd i. the Septe. b. r i-:s ci -f
this publica-.tn: "The narl:ctin,- scas)n for the spring. pi" crop is 1-r .-:ly
.from Octob, r to April, incluzivc. Bnaed )n tlhc esti.::.tes of the! spring pi
crop as of last June, inupectcd slawj.~tur fror, Octob. r 1933 to April 1934
nor:.aally '.cual.,! h:rve buen cxpocctcd t,' sr.ow a sli_'ht incrt..se tovLr t..et )f t.he
same perio:. a ye-r earlier. H ; ev r, btc .L;i -if prcsLnt emner;c.cy. pr'- ;r:- of
buyin. sprin,; pics, a reduction in ho.; slna'h.. ter during; tl"-se mointhis )f about
10 percent secr.ts pr.,bable." Siace this str.tcm:nt was prepared the n'~L.ber of
pigs purchased .d n governmrunt account w-.s increased fro:. r1bout 4,000,000 to
. .......... ...... .
approximately 6,200,000. As a consequence the decrease in slaughter daring
the October to April period probably will be larger than that indicated in
the Septerber issue. The following paragraphs taken from a statement on the
"United States Hog Situation" recently
issueI b:, this B-.reaa indicate briefly the situation as to prospective hog
"B3: fnr thie greater part of the decrease in inspected hog slaughter
from October 1, 1933 to May 1, 1934 from that of the same period a year earlil
is expected to occur after January 1. How this reduction will take place,
however, *wIil. depend upon hog .irod.ucers' reactions to the unusual situation
prevailiin4 -.,d upon what action, if" any, is taken by the Hog Production Contrc
Administr. ..-n to penalize heavy wc-iht ho-, V.-ry few of the pigs bought
for .govern.u:nt account would have been sla;...htered until after January 1, and
these purch..ass have male little change in the supply that would otherwise
have ben slaughtered from October 1 to January I."
"In v;.i: of the sharp curtailment in slaughter supplies of hogs for the
.? months (C -ober 1, 193, to May 1, 1934) a rather substantial advance in hog
prices dI.r'.; this period scums certain. 'hen this advance will take place,
and its extent, will depend considerably on how the marketing of the remained
of the snrin6 p"" crc; 'ill be distributed."
There '.Eas a decline in bacon hog prices at Toronto between the beginning
and end of Septcmber, in Canadian currency, but when converted to American
dollars the reverse is shown due to the depreciation in the United States
currency. In the western provinces the price in Canadian currency remained
fairly stead:.. The price of bacon hogs at Toronto for the weeK ended Septem bi
28, in Amcrican dollars, was $6.69 per 100 pounds compared with $6.66 for the
first week- of the month. Tnh average for the 4 weeks ended September 28 was
$6.62 compared vitn $6.23 for the month of August and $4.61 for September a
Coiimparatively heavy receipts during the month seemed to indicate that
the usual ,au-turn liquidation period had arrived according to the Canadian
Governmnent Livestock Report for September 28. Marketings at all stockyards
and ..acl:in: plnts of Canada for the week ended September 28, amounted to
203,000 read compared with 179,000 head for the same period last year. From
the beginning of the year to Secte.imber 28 marketing amounted to 2,290,000
head, a dc-cr.:rse of 1 percent compared with the unusually heavy supplies last
Official estimates of ho. r.urbrrs on June 1, 1933 are now available for.
the three Prairie Provinces, and they show a falling-off in hog numbers in
all thr'e provinces, the total being only 1,865,000 head a decrease of 21 per
cent as compared with 1932. The number in each of the three provinces on Jun.
1, 1933, with percentage of last yuar in parentheses, is given as follows:
Alb.rt-., 954,000 (85.3) Saskatchewan 649,000 (72.2) and Manitoba,62,000 (77.,
Durin.- 1932 these threr' provinces produced 1,781,000 of the 3,180,000 hoogs
marketed in Crm.n.da that year, or 56 percent. During the first 9 months of th
Uurreat year 1,173,000 hogs have b.ee marketed in the packing plants or
stockyards of these three provinces or 4 percent less than in the corresponding
period last year. The number graded as "selectsu" the quality suitable for
the British market, was 117,000 head, an increase of 4 percent above the same
period last year. There was also an increase in the number graded as bacon
hogs of about 4 percent, the number being 393,000 head. Of the total number
graded as selects in Canada a little less than a third were graded in the three
Prairie Provinces. This is the part of Canada where practically all of the
feed grains in Canada, not now used for feeding livestock, are produced, 'and
the ho industry in these provinces is considered capable of considerable
Bacon exports to the United Kingdom continued large during August. For
the 8 months ended August 31, total exports of bacon and hams from C-in.da
amounted to 45,000,000 pounds, 97 percent of wnich went to the United Kingdom.
Last year for the same period only 26,000,000 pounds were exported, 84 percent
of which went to the United Kingdom. Exports of pork, other than bacon and
hams, for the same period was only about one half as large as the quantity
exported last year, the total amounting to only 4,279,000 pounds.
The further reduction of 12 percent in the British quota on imports of
bacon add hams from non-Empire sources, which was scheduled to become effective
September 15, was not at that time supported by most of the exporting countries
involved. Shipments of bacon and hams to Gr-at Britain throughout September
-apparontly were made on the basis of the quota prevailing prior to September 15.
According to crbled advices from Agricultural Attache E. A. Foley at London,
Denmark will probably agree to ship bacon to the United Kingdom during October
on the basis of the reduced quot.. Conferences of the representatives of the
various countries supplying the British market with bacon and hmns and the
British Government probably will be hold to determine the basic quota which will
prevail cfter November 1.
The advance in bacon prices on British markets during August was maintain-
ed through September. The average price of Danish Wiltshire sides at Liverpool
for the month was $18.44 per 100 pounds compared with $17.09 in Auust, ad it
was highest average in dollars for any month since September 1930. Prices of
Canadian grCoon sides also advanced during September, the average price for the
month of $16.14 was higher than for any other recent month. Part of the in-
'crease in baccon prices in Septenmbr compared with Aurust was due to the deprecia-
tiion of the dollar in terms of sterling, but prices in British currency rlso
The advance in prices occurred despite thu fact that receipts of bacon
Into the United Kindom from foreign s-urces were lar.ser in September c.nri in
auast. Tc t.l bacon imports during August into the United Kingdom mnu;.ted to
;,361,300 pounds, which represented a decr;.rtse of about 5 oprcent from: slip-
ts in July c-d a reduction of 30 percent from August 1932. Imports of br.con
rom Denmark in August totaled 3J3,152,000 pounds, which was about tne srjr.c
s in July and represented 63 percent of tr.c tot.r. British 0r.co:t im!oJrts during
Prices of hams on British markets advanced during August, and th'e ristl;
was partially maintained in September. The average price of American short
cut green hams at Liverpool in September was $15.36 per 100 pounds compared
with $14.34 in August and $11.86 in the corresponding month of 1932. Ham
imports into the United Kingdom during August, amounting to 8,489,000 pounds
were sharply reduced from July and were slightly smaller than in August last
year. The United States is the principal source of British ham imports,
although in recent months shipments from Canada have been of increasing im-
British lard prices in terms of United States currency were steady to
slightly lower compared with August, but in terms of sterling prices declined
somewhat. The average price of-American refined'lard at Liverpool (importer'
to wholesaler quotations) was $7.62 per 100 pounds in September, while in
August it was $7.83 and in September last year it was $7.58. Imports of lar&i
into the United Kingdom in August totaled 31,403,000 pounds, which was 9.5
percent largest than in July and about 90 percent greater than in August 1932i
Supplies of British and Irish pork on London central markets during
September, amounting to 6,055,000 pounds, were about twice as large as in
August, but they were about 22 percent smaller than in September last year.
Most of the increase during the month over August apparently was usual for t .
time of the year. Supplies of pork on the Smithfield market during September4
were also larger than in August and larger than in the corresponding month |
Bacon exports from Denmark totaled 52,165,000 pounds during August,
whicn represen-ted a reduction of about 5 percent' from July and a-decrease of"
nearly 20 percent from August 1932. Danish bacon exports in August were the'b
smallest since June 1930. During the period si:ce November 1932, when re-
striction on bacon imports into the British market became effective, exports
of bacon have been reduced to a level abbut 20 percent below that of the
corresponding months' a year earlier.
Hog production in Denmark apparently had begun to decline before re-
strictions were placed on imports of bacon into Grcat Britain, the chief market
for Danish hog products. The British restrictions to imports however, nave
resulted in further decline in hog production in Denmark. Total hog numbers
in mid-Jaly 'wre about 10 percent smaller than a year earlier 'and 20 percent-
less than those in July 1931, when numbers were the largest on record. Even
with this reduction, numbers apparently were too large for the reduced export
outlet. In order to facilitate further adjustment of hog numbers to the
smaller export outlet, the Danish Government has instituted a program for hog.
production control. This plan was put into effect in July of this year, and':
details concerning it appeared in the August issue of this publication. Furthi
information concerning the Danish program will appear in forthcoming issues.
Lard prices in Germany advanced:sharply during September. The aver-
age price of lard at Hamburg: daty unpaid, was $13.17 per 100 pounds in
September compared with $11.67 in August and $8.19 in September a year ago.
Part of the advance during the ronth was due to a further depreciation in
dollar exchange, but prices :in :~rms of reichmarks also advanced."The price
during September was the highest monthly average in dollars since November
1930. Lard imports into Germany during August were the smallest for any month
in recent years. The very high .German import duty on lard of 100' reichsmarks
'per 100 kilograms (about $16.50 per 100 pounds at the prevailing .xchnnge
qubtations) 'ias greatly restricted imports cf lard into Germany during recent
Hog prices.in Germany advanced during September both.in terms.Qf marks
Sand in'terms of dollars. The average price of heavy hogs at Berlin was $13.96
per 100 pounds compared with'$11478 and it was also the highest monthly aver-
Sage in terms of dollars since November 1930. Receipts of hogs at 14 markets
during the first 3 weeks of September were larger than in that period .during
August, but marketing were about the same as in September :last year. Slaughter
of ho;s at 36 centers in Germany during August totaled 344,000 head, which
was about 4 percent larger than in July, but was about the same as in August,
1932. Slaughter during- other recent months has been running considerably
below that of a year earlier.
According to a recent report from Consul Schnare at Hamburg, a.new pro-
cess or method of lard production'has been introduced in Germany. 'This new
process involves the treating.of hog fats with a solvent, frequbntly--i.soline.
It was indic-.ted that this new process makes possible a substanti-a increase
In lard production in Germany. Under the new method, .a larger proportion of
hogs produced would be utilized for lard production. It follows, therefore,
that the proportion of hog production used as pork would be reduced. Further
details concerning this new method of lard production will appear in an early
issue of this publication.
Hogs nd pork products: Indices o foreign supplies and dem
Hogs and pork products: Indices of foreign supplies and demand
: : Ut. -tug.
Country : Unit : 1909-10 : 1924-25 :
and item : :tol913-14:tol928-29: 1Y29-30
: : average : veruge :
UNITED KINGDOM :
domestic fresh : 1000 :
pork, London ..:pounds:
Denmark ...,.: : 225,518:
Irish F.Stute.: "
United States.: 169,355:
Canada .......: : 38,920:
Others ......: : 39,755:
Total ......: :473,548:
Ham, total ....: : 89,072:
Lard, total ...: :198,095:
Bacon .........: "
Slaughter- : :
Hog receipts :
14 cities ....: "
Hog slaughter : :
36 centers ...: : 4,061:
Imports- : 1000
Bacon, total ..:pounds:u/ 2,411:
Lard, total ...: :/181,568:
Hogs, inspected:1000's: 29,749:
Bacon- : 1000:
United Kingdom:pounds: 120,385:
Germany ......: : 1,371:
Cuba .........: : 7,421:
Total ....,: : 163,915:
United Kingdom: : 130,542:
Total .....: :151,831:
United Kingdom: :157,933:
Germany ......: 126 ,40:
Cuba ........: : 34,883:
Netherlands ..: 33,382:
Totil ......: : 30 446:
1930-31 : 1931-32 : 193
: *: :
: : :
: : '
: 64,092: 84,674, .
746,576: 816,31.: 64
: 23,703: 7,555:
2 ,592: 20,233: 3
: 311,146: 306,545: 328
:1, 112,550: 1,178; 590:1 ',3S(
: 85,771: 84,267: W
S288,733: 251,556: 271
: : : .
: 740,620: 809,236: &6&
: : :
a/ Four-year average only.
Nbga and pork products: Foreign and domestic average prices per 100
pounds for the month indicated, and stocks at the end of each month
Item : 1909-1913 : 1925-1929 : Aug. 1932
Average : average :
basis packers' :
No. 3 Yellow ...
Potatoes, Breslau :
Feeding ....... :
SBarley, Leipzig ...
Cured pork -
cut green hams
i American green
Dollars :Dollars :
8.00 : 11.04
1.25 : 1.76 :
12.31 : 17.11 :
.33 : .62
1.72 : 2.11 :
10.89 : 15.42 :
12.10 : 1.558 :
19.33 : 16.17 :
15.70 : 26.49
16.60 : 26.08 :
15.67 : 23.28 :
1,000 : 1,000
pounds : pounds
Dollars : dollars : dollars
4.21 : 4.41 3.97
.57 : 1.00 : .91
9.42 10.29 : 11.78
.31 .53 : .4
1.67 : 2.22 : 2.10
7.00 : 7.53 : 6.65
7.54 : 8.78 : 7.83
8.05 : 12.73 : 11.67
11.93 : 16.44 : 14.84
8.16 12.50 : 12.05
10.88 : 15.63 : 17.09
a : 11.49 : 13.85
1,000 : 1,000 : 1,000
pounds : pounds : pounds
United States- : :
Processed porkl/: : 674,941 : 578,876 : 807,855 :
Lard in cold : : : : :
storage ...... : : 158,190 : 100,527 : 218,267 :
a/ No quotation, b/ Dry salt cured and in process of cure; pickled,cured
and in process of cure, and frozen.
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INGEST IEID E7MNTPHQB_4QGKZ0 INGEST_TIME 2013-02-14T15:05:47Z PACKAGE AA00013004_00027
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC