this arrangement was theoretically capable of producing 30000 boxes of eggs annually which,under proper conditions,would yield 800 tons of fresh cocoons,or 120 tons of raw silk fiber.Adverse developments had cause actual results to fall short of these targets,however.An infestation of flying insects and fungi severely reduced egg output in 1991,and drought the following year devastates the mulberry crop,causing contact farmers to demand fewer eggs. This decline in demand force JT to place a large inventory of unsold eggs in cold storage.A subsequent surge in world supply of raw silk, accompanied by a corresponding drop in price, further eroded contract farmers'demand for JT's eggs.These adverse developments had caused the amount of cocoons JT repurchased from contract farmers to decrease from a peak of 290 tons in 1990 to only 173 tons in 1993