R E S T R I C T E D

Annex II

EAI 12Vol. 3

1 - 1~~~~~~~~~~~~~~~~~~This report was prepared for use within the Bank. It may not be publishednur may it 'u quu?eu as represenTing te Bank's views. hine oanK accepts noresponsibility for the accuracy or completeness of the contents of the report.

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At ('DTf'TTT 'T'TTD r'

IN

YUGOSLAVIA

January 19, 1961

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C 0 N T E N T S

Chapter Page To.

I - The Place of Agriculture in the Economy 1Stagnation in-Agriculture 1The Search for a Remedy 1Population 2

II - Regional Characteristics and Uses 2Climate 2The Plains 3The Hills 3The Mountains 3The M4editerranean Littoral LThe Sub-tropical

III - The Current Organization of Agricultural Production 4The Federal Rermublic 1e4The Peoplets RepublicThe District 5The Commune 6land Teniiur 6

The Socialist Sector 6Sqt-q+tp wFqrM.Z 6Organization 6BranchesFunctions 7

Agri+Vual4. Vjoel 4ve 0

Peasant Work Co-operatives 8General Agricult-ural Co-operatives 9

Functions 9Scope 10Specialized Co-operatives 10The Private Sector 10

mT_ Area and 'Product-ion 1L1%AQU V IUUU jU-LUI

Changes in Land Use 12Ihe Croppirng Pattern 12

Cereals 12Area 12Production 12Comnrent 13

Industrial Crops 13Area 13Production 14

Fodder Crops 14AreaProduction 1

-2 - Contents -

Chapter r NO

V - Fruits and Vegetables 14Fruit lb

ExportsViniculture 15Future Plans

Vegetables 16

VI - Livestock 16Policy 17Animal Health 17Socialist Sector 171Exports 18Comment 18

VTT Forestry 19Forest Reserves 19Exploitation 19Education and Training 19Future Policy 19

VIII - Prices and Marketing 20Prices t0

Guaranteed Prices c0Agreed Prices 20Subsidies -0

Marketing 20

TX- Iand Devel-rnment 21The Danube-Tisa-Danube Project 21

nCh irn+.ive 2 1

Cost and its Distribution 22

Progress 22The Macedonia Projects 23

Projects 23Distribution of cost 2:Completion Program 24.Ex-ected Resuls+ 24

The Kosova-Metohija Project 24Nature 2LhCost 21KSLcd IT,a -VU,-s2

Expected Results 25Project-s uder -ozieagn2

Y T- ,nd TAxatin 26

VX01 --- A -,---4.

The 5-Year Plan 1957-1961 26Thle Target 2

Socialist Sector the Focal Point 27Provisions

Investments 27Public 27Private 283

Contents3- UU4 _ _U~'

UIJaPT, er

Improved Seed 28Tractors and Pichinery 28Fertilizers 29

Storage 29Working Credit 30

Achievements 30Comments 31

Contrast between Sectors in Agriculture 32.The 5-Year Plan 1961-1965 32

Principle of the Plan 3c.Targets 33Livestock Sector 33

Animal Population 31Heat 3,

Processing and Export 31Production by Sector 35'

Socialist Sector 35Private Sector 35

Provisions envisaged for the Plan 36,Supplies 36Investments 36

Comments 3'7Special Requirements for the Plan 3'7

Harvesting Machinerv 3'7Food Processing Plant 37Livestock Feed Processing Plant 37Technical Personnel 38

Disposal nf Prodie 313Attainment of the 1961-1965 Targets 33

Tales T 6. YTTT

AGRTCUITTIPRE TI lTjrQqT.A1TTA

I. THE PLACE OF AGRICULTURE IN THE ECONOMY

Agriculture has occupied historically a most important positionin Yugoslavia. Until the rapid development of iLd-ust-y following W1iorldWar II, it both provided the principal means of occupation and livelihood

n the country and contr-ibuted the largest proportion oT the national in-come. Although from both these aspects it has now had to yield to industry,agriculture continues to be of basic importance in the national economy inthat about half the population still finds employment in it and about 30%of the total national income is derived from it. In 1958 it contributed606 billion dinars (33.1%) out of the total of 1,832 billion. Accordingto estimates its contribution in 1959 was 660 billion dinars (29.80) out ofa total of 2,331 billions.

Stagnation in Agriculture

Before the Second World War, the agriculture of Yugoslavia wrasextremely backward. Modern methods and techniques were unutilized: modernmachinery found almost no place in agricultural production and the woodenplough was still in use. Yields per hectare of crops and livestock wereamongst the lowest in Europe. Nevertheless, Yugoslavia exported appreci-able quantities of wheat, maize and livestock products.

The war years saw a considerable reduction in crop acreage and aserious fall in agricultural production: livestock numbers suffered aheavy reduction. From being an exporter, Yugoslavia became a heavy netimporter of agricultural products. Thus, during the four years 1955-1959,the average annual import of wheat alone amounted to 1.03 million tons.It was not till the unprecedented harvest of l959 that the country wasable to recover from this position.

The Search for a Remedy

Yugoslavia's first Five-Year Plan of economic development, 1947-1951, set the ambitious target of raising national agricuiltural nroducatiorby some 50%. This was attempted initially by establishing more largestate farms and large collective farms iiuu1ly from land that had beenexpropriated under the land reforms of 1946. These collectives hadelements of the Riissian, ssvtem hut werre not exact. copi

These measures, however, brought little iTmprovement. Moderntechniques in production were little applied: fertilizer use was negli-

changed: the agricultural stagnation of the earlier years continued. Itwas evident that a fu-ndamental change in agric ltu al -olywasessentl1

Tn 19<3i col lectives- wer abllhe 4by4 la.Intei -lae

agricultural co-operatives were established and, in the light of sub-sequent achievements, it is clear thatu uiy hiave utbe Ul III4LUc more s fl.

State farms were retained. At the same time other measures were taken toprLovinde not orA,',1y r Jncentiv bt

44 -4- 's,o t .,.es t 4mncreaed ar.il+

LJV.LI~ L~U .ki,J GUL L L V . J L4~ u v O~~ V.&, JIL~04OL VWd LLI ~_production. Compulsory deliveries of farm produce by the cultivators wereCUU1UO.- llu P.L. LeLe j.:, LA bLC LV .A.L I±LD ij.JiJLLUV W a,.L Lalvu vLCUaUL%04

laws were altered and put on a fairer basis: agrarian reform further re-UUt.U tble itId.LIUIj1 O." Vsz c%.L.LVLL.LUuxSl hoUJU.L1gs. U GovernLL,ent 'nvest.ment -;, L

agriculture was greatly increased: supplies of modern agricultural machinery,fertilizers and other requisites to hi.gher agricultural output were prE-vided. These various measures produced quick results and increased produc-tion markedly on the limited sector on which several of them were concen-trated.

Population

For some decades there has been a steady movement of populationfrom agricultural to non-agricultural activities. This movement hasaccelerated greatly since the last war, but particularly owing to the drivegiven to industrial development in the last decade. The once predominantlyagricultural population is now about equally divided between agriculturaland non-agricultural occupations.

Despite this movement the rural areas are still over-populatedand official opinion considers that a further 1.5 million persons couldtransfer from agriculture without adversely affecting agricultural develop-ment.

II. EGIONAL CHARACTERISTICS AND USES

Yugoslavia is predominantlv a mountainous countrv: some threequarters of its area consist of highlands and mountains; only one quarterof plains and river valleys.

Tt is a countrv Of many r vers whnse waters r!re little ilizedfor irrigation of the soil. Estimates indicate that r..ver ard under-ground water suonlies would suffice to irrigate three million hectares ofland: only about 100,000 hectares are irrigated at present.

Climate

There are mainly two types of climate - Mediterranean and con-tntental.The a eier-.n.c4,t pe ail on +Inn4d aticMAn n Sea q ca+

and in some regions near the Aegean Sea. Along the river valleys and overlow .,,ont4ai t-pe tat,-nes- 4t p, e _I-bP of +hn cont,y.a.'. '.*aWUUVo.a,n .a. U V ~ A.. I.. , v'.- W .'' Wfl V$'. .. I4 w j

Characteristic of this climate are dry, warm summers and rather mild andwet winters. Conti-ental climate prevails in the other arts of the coun-try and is maiked by warm summers and cold winters. Rainfall in the ex-t,,enne nor-L-Jll-west dalnd soutilWh--west, is fair.ly.J.gli ardU inI te eastI - anr.d south4rather low.

- 3 -

For agricultural purposes the country can be divided into fivecharacteristic regions:

% oftotal area

1. the fertile plains 172. the hills 293. the mountains 364. the Mediterranean littoral 12'5. the sub-trooical 6

1. The Plairns

The North-East in twhich are lorated the Vonvodina and Slavonia;constitutes the richest and most fertile land. Though it represents onlyone sixth of the cou ntnry_s totl area, contains rl neal +.oe hi-i of' thearable area and produces more than half its total wheat and maize and overthree quarters of its s-garbeet.

37% of the maize and 43% of the sugarbeet. Over a considerable area the.dergroc .wabez taule -Lo 11,811 isiu hLghu _nl 1jj.L-rovefL,rLu uy IL. 0)(Udrair L dVU.LL duu

matel ally to agricultural production. A large drainage and irrigationproject - the D'ube-Tisa-Danube is under execution at present.

4e 1>au IsD±±iL '11,T I- 11 It

This region, consisting of country under 500 meters altitude, iswidespread and occupies much of Serbia and Slovenia and parts of Bosnia.Livestock raising and the production of fruit, particularly plums, :arespecial features of the region; cereals are grown widely in the rivervalieys. Mrore than half the total orchard and vineyard areas of Yugoslavialies in this region which contains one third of its total arable land.

Forests occupy one third of the region as a whole, though inSlovenia the proportion of forests to total area is 47% and that republicproduces 20% of Yugoslavia's total timber needs.

3. The Mountains

The territories included in this region are scattered widelyover Yugoslavia. They are generally unfavorable to crop production. Theexistence of extensive pastures and meadows marks them out for livestockraising. Arable land represents less than one fifth of the total area.Cultivation in the outlying tracts is still primitive and the wooden ploughis still used. Cereals are the chief crop. Forests occupy about half thetotal area of the region.

- 4_

4. The M4editerranean Littoral

The lands along and close to the Adriatic Sea constitute thisregion. Only a very small proportion is arable land: pastures and vine-yards are special features. The hot, dry sunmers and mild but dampwinters make the region specially suitable for such fruits as olives, figs,and some citrus in the south. Early vegetables are of special importance.Livestock rearing, particularly sheep, is common. Forests cover about onethird of the area.

5. The Sub-Tropical

This region lies in the extreme south of the republic. It isparticularly mountainous and only some 5o of its total area is devoted tcagricultural production. Forests cover about one quarter of the region.

Its warm and dry climate suit it for the growiLng of sub-tropicalcrops and it is the main producer of Yugoslavia's cotton, rice, opium andtobaceo. Early vegetable groring for domestic consurmtion and exoort isof special importance, notably in the most southerly tracts. Extensiveareas are wrwier vinmnards-

Gcp irrigation.is practise on sme 35,fn hetae which re-present 5% of the total arable land of the region and about 35% of the tctalarea under tLirrigation in Yugoslavia.

III. THE CURRENT CRGANIZATION OF AGRICULTURAL PRODIJCTION

The Federal Republic

In agriculture, as in other aspects of the economy of YugoslaviLa,uhe Federal RLepubllc makes lavs, regul'ations IU UaL, d rs aiu pULb.Lise

rules for the country as a whole: it frames policy in consultation with thesinglesPolicy for tVahleus LnbtituUioUL1s and organiizations and WOrKs OUt asingle policy for the agricultural development of the whole republic.

It does not engage directly in agricultural education or resea:rchLUJ .VL .LAJV.LUt;: ±U.I±U,- LV.EL c~1±~Iul Ut:;Vt LQPjJ[i"_I1UIi ±11 , ± U tgVJALu Ura U UU

get and for agricultural education in its general education budget. Itgives subsidies for agricultural industries, grants long-term investmentloans for the development of underdeveloped areas, without a local contr:i-bution and participates with the local authorities in financing develop-ment projects, usually on a fixed proportion basis, though sometimes itmeets the entire cost.

The Federal Secretariat of Agriculture makes proposals for newlaws and regulations to the Federal National Assembly, controls the applica-tion of Federal legislation in agriculture, sees that Federal and republicanlegislation is coordinated, co-operates with the Federal Institute forEconomic Planning of the Federal Executive Council in working out plans foragricultural development.

The Peoplets Republic

Within the framework of the federal pLan for agricultural develop-ment, each of the six republics works out its own plan for development with-in its own territories. Each has independence in this connection and makes

its plan on lines suited to local conditions.

The Republic oversees the carrying out of development plans andassists organizations finiancially in carrving them out: it enforces theapplication of federal laws locally. It gives grants to the UniversityFaculty of Agriculture and organizes agriciltura1l schools. It providesfunds for research: it approves and supervises research plans; contractsvwith researc-h institutions, which are independent enterprises, for researchon specific problems of local importance but not already covered, and paysfor the work. L+ does n.ot under+ 1-e ag-cultral extension work dire tlVbut its extension centers are linked to centers set up by the Federal Re-pub'_lic.&

in m,an-y respects the functoions of the dist,rct in relation toagricultural development follow those of the republic but they differ alsoin being mo.re detailed, I'Ts ixnspection Lunetions are wide. They includethe quality of improved seed produced on contract for subsequent sowingpurposes; the quality and analysis of chemical fertilizers and of plantprotection materials; livestock health and sanitation activities; plantsanitation to ensure that protective measures are applieu at the propertime, and the local fulfillment of all legislation applicable to the dis-trict. The district makes rules to give effect to republic laws in itsown territory and suited to its own conditions but not conflicting withexisting laws.

I'he district controls the financial activities of all agricul-tural organizations from state farms downwards, as well as those of theagricultura,l processing industry, but it has no right to influence themanner of the expenditure of these organizations. It sees that the lawforbidding the use of working funds for investment is observed.

It establishes and equips agricultural stations or centers andappoints personnel, including the directors, for them: it has no researchstaff of its own and does not finance research, except when it sets prob-lems for solution by independent research institutions.

The district brings research institutions into practical rela--tionship with state farms and co-operatives: it co-ordinates the work ofthe state farms in its area and discusses problems and experiences withthem: it approves salaries and wages on state farms and sees that rulesapplicable to them are observed: it makes rules for the cultivation ofland under state farms.

In education the district gives scholarships, establishes agri-cultural high and mziddle schools and organizes centers for short coursesfor agricultural personnel and workers.

The Commune

The commune does not work directly on agricultural development,but works through the agricultural organizations such as state f arls andco-operatives. Like the higher authorities, it prepares a plan for agri-cultural development on the basi.s of the plans of individual organizatiOncsin the commune. At stated periods - three, six and twelve months - itanalyses the progress being made in the execution of the plan. The shortperiod analyses keep watch on the financial activities of the organiza-tions: achievements are analyzed annually at harvest and compared vwith thetargets set in the plan. It makes its own rules, in harmony with higherorgans, for carrying out tasks of various kinds.

The commune deals with its own budget. It determines how mucheach organization will contribute to community funds and can absolve co-operatives from such payments provided they use the money for their owndevelopment: it allots funds to state farms and co-operatives for pro-viding equipment for production: it gives scholarships for agriculturaleducation at different levels,

It establishes schools for training agricultural workers in crcpproduction and livestock management: it provides nurseries for the produc-tion of seedlin.s, not only of fruit trees bu.t of such plants as poplarsinve:-ded ult-imately for paper imanufacture.

The foregoing outline is intended to illustrate the types offunctions nerformed for agriculture at the different levels of adminis-tration. It makes no claim to be exhaustive,

Land Tenure

Land tenure and agricultural pxoduction in Yugoslavia fall intotwo sectors - th. socialist nnd the pmivate The former consists of statefarms and co-operatives of different kinds and farms 10% of the total cul-t_vae nrea in -t-he pA,1l+.1-y: +he~ late 1.isj~ -i .poe o (rn~if pmi vatep cu,lt~ivantors

only and farms the remaining 90% (see Table I).

A. THE SOCIALIST SECTOR

1. State Farms

Organization

Although the land constituting these farms was mainly expropri.-

it to public enterprise for self-management. Each state farm is an in-de ine,tCLG agricU.LUUrL. ' er.te1se, naged uy Ule workz1ers U1ihe,-,svIs un.LUr

the usual Wlorkers' Council. Each farm has its ovin Workers' Council,iriaaging BoardU andu Diector.

T rhe eoirmurity Owns the land but it is farmed permanently by theenterprise. All the means of production - machinery, etc. - also areowned by the community but held by the enterprise. The workers own theproduce. From the income earned they pay interest on the Working Fund, con-tribute to Ute Commune 'und (equivalent to income tax but not so called),

and repay credits. The balance of the total receipts is their own and isdistributed by the Workers' Council. Part goes to an Investment Fund, tcrewards to employees, education of personnel, improvement of living stan-dards and to a Reserve Fund.

According to the latest statistics there are 713 state farms andthey operate a total area of 640,000 hectares.

Branches

Whilst the average area of all state farms in the country isonly 900 hectares, the largest farm is 22,000 hectares, of which 16,000hectares are arable. A state farm of this size is usually organized indifferent branches, each of which is completely independent, except thata central administration handles all investment matters, plans and prob-lems associated with production, and all matters connected with salariesand wages.

Branches may include croT production. dairv farming. poultryfarming. A large farm may dispose only of its wheat production of bestauality, all other farm produce being processed on the snot and utilizedfor livestock feed, providing estate requirements, or sale ultimately assugar. meat. dnirv nrnciie. et' forn dnmestin use or epnort. He4ne;eadditional independent branches may be a meat processing factory, a dairyprMiintst factory, a slaug.hterhoulse comp~lete with cold storage, a sugar-beet factory, a hemp fibre factory and even a factory to produce milkingmachin.es annd a sprinkling plan.t for irriga+on.

Functions

GhIL v.'v4 p , w._ nc; r4 p.C P q4-4- nC :--- 4- 4- e *n rnA.n * nn.4

.L. U.InV.e'L

products and sell them, but they also serve other purposes, the natureandL exAtentU of whlbch Va,y accord-Ug tJo0 the t-L i e of.j farm,, ± LiL tu he La4ci±liuies

available to it. They may include any of the following:

1) to shaw farms and co-operatives what to developan d

2) to) demoL n. sUtrabe tA J UU ±Utd. r ,u-L 0 d tuho1 o1IIt h. U!organization and production;

3) to supply good seed, pedigree cattle and poultry,semen for artificial Insemination;

4) to co-operate with private farmers (usuaily ntroughco-operatives and not directly) in the productionof industrial crops, such as sugarbeet and hemp;

5) to give direct help to private farmers in combineharvesting, crop protection services, etc. withinthe limits dictated by availability of equipment.

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State farms are by far the most progressive element in thedevelopment of agriculture today. They have taken the lead in large-scaleapplication of modern practices and techniques in agricultural productionin both the crop and livestock sectors. Area for area their output farexceeds that of any other crop producer in Yugoslavia. They possess theirown expert technical staff and the larger farms are self-sufficient inmost directions. Whilst primarily serving their own interests, they areincidentally performing valuable services for others. They and theirpartners in the socialist sector, agricultural co-operatives, are beingused by the State as the focal point for the development of agricultureand the increase of production.

2. Agricultural Co-operatives

Agricultural co-operatives in Yugoslavia are of three types.

a) Peasant Work Co-operatives

These are unions of private farmers who pool their land, or part,of itf. in a r-o-perative for nprnpoe of Mrrn+. farming thf'rough mitfinIwork, with the means of production - land, livestock, machinery, etc. -shnred in cornon. Joining these co-operatives is a pureyr voluntary actand there is no coercion.

During rmembership the farmer retains ownership of the land hepoo's and recei-ves, n r.eal rert for Jt. The M11nt of +Ihe + r ntcanno+

by contract be less than a certain minimum, but the rent actually receivedusm nily exce,eds +,at+ . ,wm T4. AIt -Ae 4-1,d o4 t -n-ac,i1 -ults 4 P +t,h

co-operative during the year.

A farmer contracts to pool his land for three years. At the encdof that period he can withdraw it or contraact again, for another period ofthree years. On withdrawing his membership, the farmer receives back only-what he put into the pool originally and not any snare oI the accumuLa-tions in the meantime. The land he receives, however, may not be physica-Llythe fields he pooled but an equivalent area on t-he perimeter of the farmin order to mnaintain the solidarity of the block.

manly farmers, on joining a peasant work co-operative, do not pooltheir entire holdings but retain a part for continued private use and grolwvegetables or maize or forage for feeding some livestock. All land re-tained by members of a co-operative is consolidated in a single block.

After poo-ling his land, the farmer and his family work on theco-operative farm as ordinary laborers, no different from laborers whohave not contributed land, except for the rent they receive. A standardwage is set for each farm operation and the farner-worker is paid accord-ingly. His monthly wage is made up of the sum he earned on each operationon which he was employed during the month. According to Federal law, eighthours constitute a working day, but this may be reduced at some seasons oCthe year and increased at others and the worker is paid accordingly.

At the end of the year when the balance sheet is drawn up the farrrer-worker, lilke all others, receives a "reward" or bonus based on the financialresult of the work of the co-operative during the year and on the usual wagesprirciple in Yugoslavia of "renuneration according to work done'!.

The popularity of co-operatives of tnis type is deciining andtheir number is decreasing. In 1958 (the latest available statistics) itwas 384 and they operated 206,320 hectares. The corresponding figures in1954 were 1,236 and 329,000 respectively. A copy of the contract betweena peasant work co-operative and its members is provided as an Appendix.

b) General Agricultural Co-operatives

Co-operatives of this type are economic entexprises, founded bythe peasants on their own initiative. The direct cultivation of land isnot the main purpose, though many co-operatives actually engage in it.The land which they hold belongs to the local commune, was obtained eitherby expropriation under the land reform law or by direct purchase, or both,and was ceded to them for management.

The special importance of co-operatives of this type lies in theirbeing the chief, and usually the only, source from which the private farmercan obtain the supplies of materials and credit which he requires and theservices which are essential for improved agricultural production.

Functions

The basic function of general co-operatives is to promote im-provement in agricultural production and to create conditions favorable toit by making available to the private farmer the required facilities, sup-plies and services. Thus, they:

1) Assure him the services of modern agriculturaltechnicians;

2) Place the services of tractors and agriculturalmachinery- at his disposa7;

3) I'ke available suppli es of go ed etlzrand plant protection requirements; some supplyconsur.er goods al'so;

4) Prorir-a id n *prgoed live sc+.rck;

production needs;

6) Provide substantial investment funds for large-scale landd ii-L.o-v.ent schemses;

7) Purchase surplus agricultural produce and assureto the private farmer a fair price for it;

8) Undertake the cultivation of private lands, managingtIheri eULiUI aloUnI o JV.LUy wid± the Uw4ICLeD, pro-

viding the required supplies and services andsharing trle produce in proportion to the contribu-tions of landowner and co-operative to its produc-tion.

- 10 -

Scope

These co-operatives are popular. Their land cultivation activi-ties are two-fold: they operate farms of their owm and they cultivateprivate farms in partnership or in conjunction with their ownmers, Theirnumber in 1958 (the latest figures available) totalled 5,2U2, of which3,003 cultivated and held 289,643 hectares of land: the remaining 2,239confined activities to the supply of agricultural requirements. The areaheld in 1954 was 132,000 hectares.

In 1958 general agricultural co-operatives collaborated withpeasant farmer in cultivating 748,364 hectares. They provided services -ploughing, sowing, harvesting, threshing - on a further area of 585,000hectares, and supplied*) approximately 31,000 tons of selected wheat seed,6,ooo tons of maize seed, 500,000 tons of fertilizers and several millionsof orchard and vineyard plants. They also artificially inseminated some125,000 cows and 400.000 sheep.

In recent years the equinment of these co-operatives has increasedconsiderably. In 1958 they possessed 10,200 tractors out of a total of20,500 in the country, and it is thought that they added a further 3;000in 1959.

The relationship between a general agricultural co-operative andits members snd the obligations and responsibilities Of each partr arelaid down in an annual contract which is executed between them. The termsare exacrt, te details considerable and the penalties incurred for fai-rto comply heavy. A copy of an actual contract is given in the Appendix.

c) Spcalized Co-operatives

Co-operatives of this type are relatively few; they total only1- n arl .anl_ associ ated Y.T.i,h 1 u-u, livestiock breeding, dai,-ing, beekeeping and other specialized branches of agriculture.

B- T E P M.AEE SECTOR

Formerly the territories now included in the Republic oL Yugo-slavia contained some large estates, as well as many small holdings, but

4 the years following the war, estates be longing to those -who had col-laborated with the enemy were confiscated and were either divided intoE;mal holdngs for- lardless peasaInt's or converted into state or co-operativefarms. Later the land reform measures of 19t6 restricted the maximum sizeof a. individual holding to 25 hectares and further subdivision of landtook place.. Finally in 1953, the maximum area of a holding was again re-duced b-y la-w to its present size of 10 hectares. Thus, Yugoslavia is ncwessentially a country of small holdings.

*) Figures relating to supplies are provisional.

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Table I gives details of the number and size of private holdingsin Yugoslavia. Important features are:

1) The number of private farms in Yugoslavia exceeds2.,5 millions;

2) These farms comprise 90% of the total cultivated area;

3) The average size of a private farm is 4.4 hectares;

h) The percentage of holdings in different categoriesof size to holdings in this sector and of area tototal area in it are:

Percentage of:Total Holdings Total Area

O - 2 hectares 35 92 - " 37 3n5-8 - 15 238 - in tI 13 38

Agriciltu.re in the privxate sector isbackward. Recpnt develop-ments have concentrated on the socialist sector and the potentialities ofthe private farm. for increased 'ro,r'+3ron~' are1 still a1rgl +uvr,t.;p

v,n^e thi seto represents4 an of~ +)-e toa culi,vate .- -area

of the country it is obvious, in the light of what has been achieved inU-the scl s uco in the pasu few yarasF' UJW, tUt U1the pUt.LU±C11% here is

enormous. Even recently, 85% of th-e total agricultural production came.fro.mIi UIteI L±C2ltL-far,,L FJriVCted U U.LU UsoLoLy 1L5, .LU. Ul socialist.

IV. AREA AND PRODUCTIONI

The total area of Yugoslavia is 25,580,000 hectares. Roughlyth1±ree -INI.Uh11 is consist Of U U L ±L11U laUr Uaitd o IAILU thr oLf forest. VI

the agricultural area two thirds are arable and one third is occupied bype-,,aneint pa st-ureUs.

Hectares % Of T Otal

Cultivaole iU,2U0,UUI.Permanent pastures 4,720,000 18.4Forests 8,831,000Uncultivable 1,829,000 7.2

Total 25,580,000 lC0.0

Serbia and Croatia have the highest proportions of cultivableand arable land; Macedonia and Montenegro the highest pastures and Slovenia,Bosnia-Hercegovina and Montenegro the highest proportions of forests.

Changes in Land Use

Agriculture received a considerable set-back during the yearsof World War II and, apart from the heavy losses in livestocK wnicn weresuffered, the area under cultivation fell by nearly a million hectares, orabout 10% of the total. During the postwar years, much of the lost grounc:has been recovered, though a change is noticeable in the pattern of agri-cultural land use. The cultivable area is short of the postwar figures:the arable area is almost a quarter of a million hectares less than in 1935:orchards and vineyards have increased materially in area: pastures are con-siderably more and meadows less.

The Cropping Pattern

Yugoslaviats crop economy is essentially cereal growing in nature.80% of the total sown area is occupied by cereal crops; less than 9% byfodders; under 5% by industrial crops, and 7% by vegetables. The passageof years has brought little change in the pattern. Cereals have lostlittle of their superiority in the last two decades and other crops havegrown very slightly in importance (see Table II).

CerealsArea

Maize has always been the principal cereal crop in the region.Before the last war, it was the staple bread cereal of the country. 80%of average Yu.goslav bread was made of maize flour and only 20%/ of wheatflour. In thle intervening years, with a large movement of populationfrom rural to industrial and urban areas, and with an improved standardof living, m.aize lhas been replaced largely in the diet of the people andthe foregoing nronorftJons have now been comnletelv reversed. Despite thischange in diet, the area under maize remains currently at its prewar leve:Land the production, which is now vsty1 greater; finds its main disposalin livestock feed and export.

Fo:llowing the war, there was a fall of a quarter of a millionhectalires in the area nn-ider wheat Recoverv has been slow and irregular.and it was not till 1959 that the prewar level of area was reached again.

Production

Whilst the total area under the five principal cereal crops to-day ShoAMMis lttnle change fnomr the averagn of 4-the -nar dscade, the -nrdu.-

tion has undergone a transformation (Table III). Comparing the figuresfor each Of the last three yea-"-s wL the average Or the years1 9

the results speak for themselves.

Variation from 1930-1939

Area Production

1957 - 2.6%- + 35.5%±y5o - 7.±j, + 12.0%

1959 - 2.0% + 61.0%

- 13 -

Climatically, 1957 and 1959 were very favorable years for cropproduction: 1958 was much less favorable.

This comparison shows clearly that the increased production isthe result of greater yield per hectare. Though 1958 was an adverse yearclimatically, the increase in production was still large. In general theeven years of the 1950's were unfavorable years for agriculture, and theodd years were good.

It is only since 1957, however, that increases in average yieldshave become marked. These increases correspond with the initiation of the5-Year Plan 1957-1961 for increasing agricultural production and are due invery large neasure to the greatly increased application to crop production,particularly of wheat and maize, of modern methods and techniques since1956 - better cultivation, better quality seed, heavv dressings of ferti-lizers, better crop protection from pests and diseases. The introductionand spread of Italian wheat varieties and of hybrid maize seed made a largecontribution.

Comment

An intensity of cereal growring such as Yugoslavia follows isfaulty economically and technically. EonTOmicay11 it almost. excldes othecrops needed for industrial and domestic use, e.g. oilseeds much requiredto provide oil for human consumption and oilcakes for livestock feed. I1Tmay also pnrduce excessive surpluses of some grains for which it may bedifficultj -if r not % to find prftal export'+ r.arkets. Tech- nically it is unsound for the maintenance of soil fertility. The croprotation of wheat-aize *hich is widely pcs can 1o- la to soil exhaustion and a fall in production. To such extent as foddercropns are growr-n t-Ine posit-ion is less rgLooi,ay, sin-ce theu fodders1_ areLeg-,lnous, but fodder crops occupy no more than 10% of the total area underw-he'at end m4a-ize.

Tnut-zl CrS.L_uUUs -.LaL± CroupsArea

The principal industrial crops occupied no more than 4.7% of thesown. area in l9-/. The proportion of area which each contribUted to tnetotal under industrial crops was approximately:

Sugarbeet 24Touacco ±4

Cotton 4H-emp 11Sunflower 25

Small areas of hops, rapeseed, soybeans, castor oil, poppy and sorghummade up the remainder.

Though now more than double its prewar figure, sugarbeet has

war. Sunflower increased strikingly in area in the immediate postwaryears, but has fallen steadily- in ; Le 1eanriie±l. Tobacco U IvJ ocupies r,or

than three times its prewar area. Cotton area has fluctuated considerablybut is now muuch less than that of a decade ago,

rrodu.ction

SugarDeet production in the last three years nas followed thepattern of the cereals and for the same reasons. Though the area underthis crop has shown no increase in the last 10 years, tne production inthat period has increased by more than 70% (Table IV).

The performances of the other industrial crops have not equalledthat of sugarbeet, though increases in average yields are apparent, butthey have not yet received the same degree of attention. There is noreason to feel that when that attention is directed to them they will notrespond similarly.

Fodder CropsArea

Lucerne and olover for green fodder and silage are the twqo prin-cipal cultivated fodder crops. The area currently under each is approxi-mately doubLe its prewar average. IMeadow land for hay shows little chanp;ebut pastures for grazing have increased in area annually and now exceedtheir prewar area by about half a million hectares (see Table V).

Production

No spectacular changes are observable in the production of thesecrops in general. Production has increased considerably in some cases, butso too has area. Per hectare yield shows little change on the whole whenseasonal fluctuations are taken into account.

V. FRUITS AND VEGETABIES

Fruit

Climatic and soil conditions in Yugoslavia are very favorablefor growing a wide varietv of fruits. rangine from cold region to sub-tropical. Plums account for 70% of its fruit production and apples for 8%.Pears. cherries. anricots. walnuts. neaches. sour cherries. olives and figsfollow in descending order of production. Even citrus fruits find a smallplae . Serhbia Bosnia and Hercegovina are the largest nvnducers of plunnsand walnuts: Slovenia produces most apples (see Table VI).

Yugoslavia is among the world's largest producers of plums, Partof t)he nriir-+Aivn Nncein.tdip 1 nsla fresh frii-. Adomet.icnallTr and a r

part is dried and sold as prunes for which there is a substantail exportdema-nd. Some 0,000n tons of dried pr-nes were produced in 19Q9. The mjo.rpart of the plum crop is converted into "Slivovitz", the Yugoslav brandy.

ol4.' 4J T-.- frAui- 44. 14. the-A- .L4 Or.) brandy i)s ashhas n 4 onLs

Peaches have a long tradition of cultivation in Yugoslavia thoughthe production, now double the average annual prewar output, is stilll smalland far below the possibilities. Export has been increasing steadily andamounted to 5,900 tons in 1959. The quality of the fruit is good but theyield poor. Current effort is directed to increase the yield by introducingwell-known and commercially suitable varieties on large-scale orchards.

Exports

Yugoslavia exports fresh, dried and processed fruits in fair quan-tity. The volume of export fluctuates considerably from year to year.

Viniculture

Natural conditions play a primarv role in viniculture. By reasonof its varied climate in different regions - alpine, temperate continentaland Mediterranean - and its range of soils - sand. gravel. red earth andlimestone - Yugoslavia is very favorably placed for successful grape growingand a -rosnerous wine industrv.

The area uinder grapes has been innerpsing steadily, and now standsat about 280,OCO hectares. Production of grapes, which has fluctuated-wirlpl- hnrz r'n n- +Jbi vrtHrl ni-P rna yenllin +nQ n niinll-r in -nr-h n-f t.hc

last three years. Wine production has also been variable in quantity. Thehighest production in a single year has exceeded six m-illion liters, but inrecent years production has been more usually between 4 and 5 millions\ .LV.ij4.._ V a .1J S

Production of stanudard- w-,-Ies foar genteral %con110'U1i.onL1 Jls pnev al en -1t.Its quality is good and said to be superior to the world average in thissectJ.or. r£,Ig k4Ual_LU-y W-Lles alVso ar.e- jJ.L0UUULAU. SomIie L± ±tl!eli have ar. excel-lent reputation and are well-known beyond the borders of Yugoslavia.

Future Plans

Special efforts are being made to modernize horticulture and toauju frLui p.ouUc.on to theL -- e-uirIrL of the frign r L, . VVWihILLI

this program, one of the main purposes is to gradually replace small-scalei-ndivid-ual production by culti-vation of selected var-ieties OI I-Ufits onlarge-scale specialized orchards. Peach growing is assigned a specialplace in tne development plan.

in the i961-15965 Pian, the socialist sector is to piay a iargerpart in fruit growing and viniculture. Up to the end of 1959, plantings onstate farms, peasant work co-operatives and general co-operatives amountedto about:

Orchards 14,500 hectaresVineyards 19,000 hectares.

It is proposed to increase these areas extensively by a project to be con-pleted in 1968 for planting high quality fruit trees and the best vines in:

Orchards 67,000 hectaresVineyards 23,000 hectares.

- 16 -

The total investment in this project is estimated at 87 billiondinars, of which 52 billion dinars are to be invested by 1965.

It is estimated that when full production is reached from the in-vestments to be made up to 1965, the percentage increases in the total vaLueof fruit production in the socialist sector, as compared to that in 1959,will be:

Fruit 1.3Lh%Grapes 420%

Vegretables

There has been singularlylittle increnae in +.he area iinc1er nny

of the principal vegetables since the war. Remarkable increases in produc-tion, -howre ,- over- _h-n veaeotu r.o +'he prewa r l deaa reJI--..V -. A J ~V-'4. .I J4L..L av'.4 '.34.1J LL.--L --J4 -3 -'- ---

being obtained from the largely static area (Table VIII).

Conditions are particularly favorable for vegetable growing insome region; 4ThL5i.s 4s espec i '.ly> - f4o early v '.3a

on the Adriatic Coast. In the former region a considerable increase inarea o.f vege. sUabdlU.eL± as Uo11templated onU VUIL LI of. Var.L-VU.s .LGI CLL-UL

and irrigation projects now under construction or shortly to be constructed.

Early vegetables find a ready and profitable export market. 70%of th tZomato and papriKa prodUucTio in insouth r'aceuomia is exjirted to W'et'and East Genmany, Austria and Czecho-Slovakia. Since 1953, the annual ex-port of all vegetables has varied from 14,700 to 51,800 tons annuaily.

VI. LIVESTOCK

Large regions are well suited to livestock raising. Of the agri-cultural area as a whole, pastures comprise 31% and meadows 13%. Livestockfared no better in its development in past years than did crop productio:n.it suffered a severe decrease in numbers during the war and did not regainits former levrel for several years thereafter (see Table IX). During thepast decade there has been little increase in numbers, except of poultryand pigs.

The annual production of meat did not reach the prewJar level till1956. From 1952 when compulsory meat deliveries were abolished, productionbegan to rise but it is only since the current 5-Year Plan came into beingthat production has shown a real upward movement. In 1959, the year ofgreatest production so far, meat increased by 32% over the last prewar year,and fats by 43%. All sections of livestock, except sheep, contributed tothat result (Table X). The gap still remaining between the 1959 meat pro-duction and the plan target for 1961 seems too wide to bridge in the twc,years which remain.

- 17 -

Policy

Livestock improvement policy is based on the introduction of we:Ll-known good breeds from abroad, rather than on the much slower method of imn-proving local stock by selective breeding within itself, though research isin progress on the latter method at some livestock research institutes.

In pursuance of this policy the import of high grade foreigncattle, which began soon after the war, has been stepped up. East Friesian,Red Danish, Hereford and Aberdeen Angus are imported for crossing with localcattle, the former two breeds for milc production, the latter two for meat.Some purebred herds also are maintained. Merino sheep are being crossedwvith local for wool and meat. Pork and bacon production are centered on thebreeding of Large White Yorkshire and German and Swedish Landrace: the lastnamed is regarded as best for bacon Droduction.

To speed up the imnrovement of local livestock, the artificialinsemination of cattle and sheep is practised largely and is spreadingrapidlv. In some extensive regions 60An- of the cows are artificially in-seminated annually; in some more restricted areas 90%. State and co-operativefar.ms adont the npratine 100%. Lea-slati--n or rel ml*lati nv nvit hyr wc-w alocal author.ity can prohibit any other method of fertilization within itsbo1unda ries w hen it i satis-ied that adequate staff, n an" facili.=ties exist.

Animal Health

Livestock health in Yugoslavia is excellent and serious diseasesare largely absen.t Much of the credit for this position is attributed toa very efficient veterinary service. The incidence of tuberculosis isplaced at less tlan 1%: cows are exmarned every third year for tubercu.lO.sisand are inocculated, if necessary. Three institutes exist for the prepara-tion of livestock sera and vaccines; the largest alone prepares 100,000liters of different sera and 50,000 liters of vaccines annually.

There is an increasing tendency on state farms to house largecattle herds, both milk and beef, in open-sided sheds with thatched roofs.The season of severe weather conditions is limited to about one month inthe winter and the loss of about 10% in milk and beef production, whichresults frcm outdoor life during this short period, is calculated to bemore than compensated by the saving in capital investment on buildings. Inaddition, the health of the animals is said to be better in the open.lifeconditions.

Socialist Sector Drive

Ifmch of the recent increase in livestock production has originatedon farms of the socialist sector which is taking the lead in improving pro-duction both quantitatively and qualitatively. The scale is illustratedby stating that one state farm last year produced 3,000 heads of baby beef,30,000 fat pigs and 300,000 broiler chickens: its 1965 plans propose to in-crease these numbers to 9,000, 70,000 and 1,700,000 respectively. Anothlerfarm fattens 40,O00 pigs and produces 800,000 to 1,000,000 broilers annually.

i N

- 10 -

The productioin of baby beef is growing rapidly in popularity andincreasing in intensity. The recent prohibition of the slaughter of malecalves under three months and of females under six months of age will givevaluable assistance.

The manner of paying livestock staff salaries on some state farmsillustrates the intensity of the drive. On one farm, whilst salaries arepaid on the usual principle of remuneration according to extent of servicesrendered and wtork done, the actual basis is on (a) the production of milks,(b) the production of manure, and (c) the calf output. On another generalco-operative farm the customary monthly basic salary is not paid: the entireremuneration is determined on the increase in milk or on meat output.

Exports

Livestock exports are both live and dead, fresh and canned. Babybeef is exported live to Italy, Greece and Western Germany. The last-namedcountry is the chief market for "broiler" poultry.

Exports of livestock have shown wide fluctuations in the yearssince increased agricultural production became a main aspect of policy. Onthe other hand, the export of meat, both fresh and canned, has increasedsteadily as follows:

(in thousands of metrin tons)

T.;lrestoc'k Meat,f Fro.h T.st C.anned

1QtQ a r1 Q n P

1954 53.6 21.4 2.81955 32.3 18.4 2.91956 49.3 24.2 7.41O&f7 An07 25.5 1.

1958 40.4 28.1 14.659 7 LU .6 7 24.94 L * .

C o

iKI-xed Farm "ing

minded and tends more and more to a mixed-farming economy, the privatesector i1 agriculture is still iniadequately interested in livestock. Cn oneof the best private farms it was found that no livestock at all were kept.uu..L vaLLofl wab ,,irt1rC.LIZUU aria everU. tUhe 1.LUZ' Ufr iestc.w use -wasL purchasd

outside.

Apart from the contribution to the greater production of live-stock and its products which the plan requires Irom The prIvaTe farmer, itis to the interests of crop production also that special efforts be made toincrease livestock rearing in the private sector. Arable and livestock farm-ing are mutually dependent. Thus, a good sugarbeet crop produces 50 torLs ofsugarbeet per hectare. On processing this becomes 30 tons of leaves and ]4tons of offal for cattle feed, plus 6 tons of sugar. This forage sufficies tofeed five heads of cattle during the year. TIhey produce 50 tons of farrmyardnmanure which is an adequate dressing for more than one hectare of land f7or

subsequent cropping.

- 19 -

VII. FORESTRY

Of the total area 34.5 % or 8.8 million hectares are under forests.They are distributed over all s3x republics of the federation and occupyproportions varying from 26% of Serbia to 45% of Slovenia. Only 5.) millionhectares of the total are conserved forests: the remainder consists of des-troyed areas, scrub and maquis. Approximately two thirds of the total forestarea are state-outned and one third privately owned.

Forest Reserves

Forests represent considerable material wealth for Yugoslavia.Total timber reserves have been estimated at 880 million cubic meters but asurvey has indicated that they may be 30% greater. Broad-leaved species, ofwhich beech and oak are the chief, represent some 70% of the total and coni-fers the remainder.

Exploitation

No special effort has been made so far to exploit timber resourcces.Arnual fellings of wood are of the order of 13 million cubic meters. of wjhich7 to 8 rnillions are timber. The volume of timber currently reaching maiinlulmber yards is much less than a decade ago (TPhle XT)' Although the targetset for 1960 in the 1957-1961 Plan was far below the actuals of 10 to 12 years

prewSous1y; he 1959Q nn+inI vTnliinin W2Sq nnly R7,~ Of thatf taqrget-t The. taPrget.for the new 1961-1965 Plan is 70% higher than the 1959 performance, and 58%more thnn the 19#S TIndrex.

Fores+s cont1ribut+ le-ss ty 1.5% K r +of a thetotal na+tinal i onome

annually. There is a considerable export of round timber and of wood invranous fo^,s *; ch nclu, -e , cellulos-Ae- wood, -IA * and Y produc+s.

VA - -4. --A IP--4-.;-- ~ ~ ~ ~ ~ ~ ~ ~ ..4J.% J*fl. a,'.. f'.fl -A fJd .A '

A;4%.LW CU_.LU..'.1 Ci±J'L 4. L Q.l1±JJ±- ,

£d. ±±U±L__U_t:z ±0±.L ±UIJt u.L-Y t_UU.%_CUdLVI1 J l± C UIU -U" 4 CLV fJl_'..% CU Ca.4.J.

levels. RLve -universities have fac-ulties of Forestry 'which award degree!Sa L Llr 'oryears of study . TLhley appar adequate to ±±.L±- 1£-3 U reuireenusI .L) r

senior technical staff at the present level of needs.

Four forestry middle schools cater for training of lower grade.IIi-, nIUn )-yUarvd CQuX5U I QEtrairs oi elemeritay eUduLLon suaridarduVitursall aspects of forestry and qualifies for employment as managers of foreastryenterprises or in forest exploitation and the timber industrye -a 2-yeatcourse trains employees of forestry enterprises for promotion to foremen andanother course of equal duration gives a rore general forestry training tomen of lower grade also employed by enterprises.

Future Policy

Future policy aims at greater exploitation of natural forests,more attention to the timber industry, greater efforts to increase forests,and the area under poplar trees for paper pulp. Plans for the next twentyyears propose to increase the tLnber ready for cutting from 20 million cubicmeters to 4O million cubic meters annually.

- 20 -

VIII. PXICES AND IWARMET ING

Prices

Price policy is designed to maintain the prices of agriculturalproducts at a level likely to stimulate a rapid increase in agricultural pro-duction. In general, prices are left to find their own level in the freemarket on the basis of supply and demand, but special measures have beenapplied to certain products which it is particularly desired to encourage.

Guaranteed Prices

Guaranteed minimum prices have existed since 1957 for cereals -wheat and maize: rice has been included more recently - for cattle for fat-tening and for pure breeds of sheep and pigs. Broiler poultrv also are nowincluded.

Agreed Prices

For some other agricultural products, incltuding industrial cropsnnd som.e fru.its and vegethl "lcagreed" prices are qrranaed hy the Tlnion ofChambers cf Commerce between agricultural organizations and the processingand distriuting industies. The prices finallyagreed are embodied in corn-

tracts between the farmer-producers and the processing industries.

Subsidies

Subsidiss are also paid by Government for certain types of farnproducts, eog. for all types of bacon pigs/ -14 - - -or pr baby beePcattle and fattened calves. These subsidies include imported animals - bulls,cows, hefers, pigs and sheep for breeding.

undier the present S,rUCtUre Of exchazre coe(Tficient, the prlcsof agricultural products ars generally related to world market prices ataround the present settlement rate of 632 dinars per dollar. If the ratewere depreciated, as is contemplated, the need for any support prices and sub-sidies for agriculturaL prod-ucbs should viLsh and, in fact, domestic agri-cultural prices may rise compared to prices of industrial products.

Marketing

Producers are free to sell their surplus farm produce on the cpenmarket or otherwise, e.g. privately to co-operatives, commmercial enterprises,the processing industry and private consumers, as they desire, Privatefarmers who work in association 'with general agricultural co-operatives arerequired by their contracts to sell agreed amountE to the co-operatives.

Some large state farms have their own processing factories anddirectly convert their sugarbeet into sugar, maize into animal feed, hempinto fiber, grapes into wine and milk into dairy products. Like commercialenterprises they can export raw and processed produce freely after firstbecoming registered as exporters. Other farms of the socialist sectorwhich do not possess such facilities dispose of their produce like priv.atefainmers.

IX. IAND DEVBLCOPIZN

A large area of agricultural land in Yugoslavia suffers fromfloods and a high underground water table affects the productipn adverselyon further extensive areas. Reclamation measures are associated, there.fore, with prpteptive embankments and drainage. Improvements in thesefields have been undertaken for many years, but it is estimated that morethan 600,000 hectares of land still need drainage and more than half thatarea flood prptection, Soil salinity is found in Vojvodina No remedialmeasures are in hand.

Yugoslavia considers land reclamation of secondary importance atpresent and large-scale land improvement by drainage and irrigation ig notcontemplated. The process is costly and involves heavy investment, Fresentpolicy leaves more expensive projects for some time in the future and con..centrates investment on means to obtain maximum production from land not inneed of reclamation.

Land improvement measures, when undertaken on a large scale, aresponsored and initiated by the Federal Republic which passes lepislation tobring them into being and assists financially in carrying them out. Republicsand lower admnistrations take part andinsome cases undertake small proxectsindependently.

Major land improvement projects are under construction in three

regions-roec 41- Dannn'

2. Some smaller projects in Macedonia,

3. The Koso Ml-.eoi atr,o,,u 'g!

1.* iTle J.CU,ULbe _Ti_sa_ inU1e l*uJeCI,

TIh Fuedera1ia GoverniTent inJitiated this prOJect anu handed it overto the Serbian Republic for execution; it is being carried out by the WaterAssociation.

The project has three objectives:

(a) the drainage of 760,000 ha. of agricultural land;(b) tne irrigation of 360,000 ha. of land;(c) the navigation of 500 km. of new canal, and 185 km.

of old canal by boats of 1,000 tons.

The water table in the area stands at depths varying from surfacelevel to two meters below. The main project aims 4t lowering it to anaverage of -two meters throughout. Only 60,000 hectares of marsh land willbe reclaimed.

Irrigation will be partly by flood and partly by the sprinklersystem,

For navigation purposes the main canals will be five meters deep.They will mike possible the direct transport of produce from this, theC-reatest agricultural region, to Western European markets.

- 22 -

Cost and Its Distribution

Total cost: 143 billion dinars.

The cost of the main canal system - 574 kilometers in length -is 52 billion dinars at 1956 prices. It is being financed by the FederalRepublic.

The subsidiary canal system and the provision of irrigation willcost 91 billion dinars on the same basis. The cost will be met by variouEslocal authorities but the contribution of each is still under discussion.

The cost of branch canals from the subsidiary canal system hasto be borne by the owners of the land which will benefit from the branches.

Estimated Results

The project is based on increased agricultural production of thefollowing estimated dimensions, when the treated land is in full production:

Wheat (tons) 339,000Maize 8h8,000Su%iarbeet 2.558.000Hay 1,076,000Silage" 6.600.000Vegetables " 1,318,000Meat A 60n1j40Milk 3,188,900

Total cattle increase (heads) 1,512,500Total -g -/re ( it ) AnnHorses (decrease) ( " ) 59,900

The a' ofP 4the 4total1 Jncreased proodu -i4on ar,alyat15I'l V JL UlL uU U J .]L±0 I- VJUUM0LU± CITUUCL-.Y Ly U 17.L)Ju

prices was esstimated locally at 223 billion dinars.

Progress

The project came into being in 1957. The legislation concern-ing its construction en.v-saged i%… ___ cor,Zpleto by __ -" en of 1966 lwentykilometers of main canal have been constructed so far and 65 kilometers of

smrall canal not for navigation.

Assumini-Julg hnatu prgress in c ructton pIoUCeUs aUcOrdUng To p:Lan,this project will not be completed till one yrear after the end of the newi1961-1965 Plan. Mlaximum increased production from it is unlikely to beachieved before 1970, though its influence on production should begin to befelt in the closing years of the 1961-1965 Plan period.

- 23 -

2. The Macedonia Projects

The area of arable land in Macedonia currently is only some690.000 hectares; of which 91% is cultivated by nrivate farmers. It issaid that a further 100,000 hectares could be converted from non-arable

nn.t.lr..: .n pm'hlp ii.zp mp-rpl-r 'hvr nlnjiiahi-no nnri q:ptprlina_

V~~~- u r--'< ---

lhltconsidemUse ir.cease _r proA-toz nf Clops e, +beand livestock are expected from the arable area during the period of the1961-1965 Plan by the greater use of the modern agiulta ""'c.>iyues'

and practice.s which are the basis of the development plan, local opinionexpnects t.he greatest ach-vre,-er.t 4to re sult 4from 1-anrel io ndirut ta, t uv. t, 1UJ..C JILVU IU A.C tJL .'IL .Lt~4 0 v.4L.IJ..* 01 &..-

gation. When accompanied by the full use of moderm methods of cultivation-,land A,AF1)ove:ment measures of this 4>-,-e ar- cac-" cuated locall1-y to iLncreaseproduction four to seven-fold over that of untreated land. The greatestpa. of new r,-vISUMEnS 111 alaceUoiL±a in Ulmthe U neVx fiveyear L UV b in

land drainage and irrigation. After completion of the program, 80,000 hec-tares o° land wi-11 u- under irrigatiun i1n iced(rU01i1.

Projects

The following projects are under construction or contemplated inthe near future:

Ara / Dollar ElementArea Total Cost-- (rmiiiionsj Comple-

Project Nature (Hectares) (million dinars) (included in cost) tion

Pelagonita Drainage 54,000 4!,628 .6 1962Struga Drainage 2,680 1,572 -1(2Tikves Irrigation 20,110 11,027 1.96 19?68Skopje Drainage 6,600 2,052 - 1962Bregalnica Irrigation 28,000 12,212 1.5 1'368Strumica (Irrigation, 22,100) ( .9 1968

(drainage 9,000) ( 13,351 1968(included.) ) (

44,842 4.96

1/ At 1957 prices.

Twro of the projects will provide some hydro-electric power;

Tikves will produce 200 million KW/hours per annum in 1964,Bregalnica " " 70 million KW/hours per annum.

Nine additional irrigation projects are contemplated but havenot yet received the approval of the Agricultural Bank. They cover anarea of 130,700 hectares and are estimated to cost 37,t445 million dinarsat 1957 prices.

- 24 -

Distribiution of Cos-t

The cost of the six projects is being financed as follows:

73.5% of the total cost by the Federal Republic7.0Co 1I " 1 " t " I II I" " acedonia "

19.5% "1 "1 Ii it "I " Union of Water Associations.

Only the Water Association's contribution is repayable, the costbeing recovered from the land owners who benefit from the work.

Completion Frogram

The construction program contemplates completion of the projectsin the following stages:

Total Area 1960 1961- 1965 After 1965(hectares) (hectares) (hectares) (hectares)

Pelagorita 54,000 16,000 38,000Struga 2,680 - 2,680Tikves 20,110 2,000 7,000 11,110Skopjie 6,60o - 6,600 -Bregal ca 28,000 - 13,000 15,000Strumica 22;100 - 1L.63 7.L65

do. 9,000 - 9,000

Expected Results

Thae region is sub-tropical and the estimates contemplate thatdouble cropping will be possible on 70 of the irrigated area. Availablnedetailed data are out of date. Increased production from the projectswJas calculated on the basis of crop yields obtained before the large-scaleapplication of modern techniques to agricultural production. A measureis af forded bk I ^i c ui ons made in t>e project-s which show th changes

in cropping expected to result from. the pro.jects.

Before After CompletionProjects of Projects

(hectares) (hectares)

Area under crops 76,o60 119,317Area fallow 30,10 n-.L

Area double-cropped 2,.40o 79,900

Nature

This project involves the clearance and reclamation of about50,000 hectares of unproductive moorland, which will be transformed into30,000 hectares of arable land and 12,000 hectares of plantations.

*'he estiinated cost, at 1956 prices. is 37 billion dinars.

- 25

Status

By the end of 1960, 13,000 hectares will be cleared and will provide9,000 hectares of arable land, 1800 hectares of modern orchards and 2200 hec-tares of vineyards. Completion of the whole project is due at the end of 1965.

Expected Results

The project estimates that new agricultural production of the annualvalue of 23.5 billion dinars will result when the land comes into full produc-tion after reclamation.

4. Projects Under Consideration

Three major land improvement projects are under consideration forinclusion in the 1961-1°65 Plan. They comprise the works and involve theestimated en)enditures shown below:

1. Tn the Sava River Basin(billion dinars)

(a) Regulation of the Cou-rste of the river over a lengthof 1,013 kilometers 31.9

(b) Regulation of flood waters on an area of 317,000 ha= 6p8(c) Drainage of 1,224,000 ha. 53.0

Total estimated cosT 91.7

9, Tn the V;- r!. rnv Pi Ter BasiPn

(a) Relation of he course of the river over a lengthof 887 kilometers 20.3

(b) lood -roect-o work on -area) about 189 ha 8.7\LI/ P.LSJ1U U ;UU.LV1 WU±±V.0 UJl1 d.IVC ZUVUU~ ..LU7,.qJu'J Ild. Us .

Cc) Regulation of flood waters on about 610,000 ha. 15.9(A4\ n_ _ or _i -~ > _ O

\A/ 'jL C-LLJ.LtGt U1 Ull t1ctares . o J U

(e) Irrigation of 79,000 hectares 28.6Total cost 76.88

3. In the Neretva River Basin

(a) RegLlation of river course over a length of 55 km. 2.7'sUJ 1 .LU)vtU JJ.LV U L j±UII VPU±1S.o .LUJ.- -)4eUs ilo L1.U

(c) Regulation of flood waters on 32,000 hectares 1.6(ud Dr auL-nage o'i 74jp0V he s 6.o(e) Irrigation of 67,800 hectares 23.5

37.8

According to the estimates tne value of agricultural production onthe areas affected is expected to increase on completion of the projects asfollows:

(in billion dinars)

Present Value AfterProject Value Completion

Sava River Basin 17.9 61.0Morava "" 2.1 23.0MTeretva " 2.9 20.0

22.9 104.0

- 26 -

X. IAN TAXATION

Until a few years ago an income tax was paid on agriculture. Thesystem proved difficult to administer fairly, since no one kept accounts aridexact knowledge of actual incomes from the land was lacking. It was replaced,therefore, in 1954 by a cadastral tax on the agricultural income.

The present system operates on the basis of a standard incomeaccording to the quality of the land. All land in Yugoslavia is classifiedinto one or other of eight classes, according to soil quality, and the taxpayable annuallv bv an individual cultivator is determined by the class ofhis land and the area of his holding. The rate of tax varies from 2,000 to15,000 dinars per hectare according to class of soil: the total tax payableper holding is considered to be from 8 to 12% of the realized income.

The amount of the tax annually is constant, irrespective of theeffect of season on the vield of the crops or of the intensity of effort putinto production by the cultivator. Hence, in a good season and for a progress-ive cultivator, thr e tax may be comparativel'y light in relation to the totaloutput obtained, whilst in a bad season with indifferent cultivation it mayhtn relativeolyr henavy w^hen r;Ted on the sam.e basi.-

Aill statene fm rd, p trn+ia fa-.Q spayr a Ian tax. + Gor perativ

farms should paythis tax to the comnmunity funds but they are excused payment-P +-thr pu ar e von -alent am.on ot in a Spe-c nF I d for pu-chasing more land

or for developing their own estates. In practice, therefore, no co-operativefarm pr~ssrc then land tax

A lax is '1so payablle on m,ovea"le ag` ubslpoe> uha

working horses, plough cattle and carts: cows and pigs are not subject to tax.

In addition to these Federal taxes there are also local taxes pay-able bo the cosrnunue at rates fixeed by the commune itself ,ithin maximum limitsprescribed by the Federal Government.

X!. PLAN-NIED DJJVEMPIEWrI

A. T1g 5--YEAR PlAN 1957-1961

The intensification of all production, but with wheat and maize asthe main agricultural products, where natural and economic possibilitiesexisted, was the basis of the 1957-1961 Plan for agricultural development.This was to be achieved by the encouragement of those means of agriculturalproduction which can give quick results and, more especially, in those sectorswhere the most rapid rate of development could be expected.

The Target

The target set was an increase in agricultural production duringthe five years of the Plan of 41%- over the 1956 output. 1956 was not a goodyear agriculturally. A drought reduced the average yield of wheat to 9.9quintals per hectare against 12.8 quintals the previous year and an ave:-ageof 10.5 quintals in the preceding quinquennium. Agriculture as a whole con-tributed only 25% to the total social product against 28.6$ in the previousyear and an average of 26.6% in the previous quinquennium.

- 27 -

Socialist Sector the Focal Point

The socialist sector was selected as the Local point on which effortwas concentrated. State farms and co-operatives clearly constituted the bestfield and offered the greatest possibilities in the shortest time since theyalreadv had under direct control large areas of land which could be used notonly for ordinary production but for the production and multiplication ofbetter seed i'or distribution. used modern machinerv and eauipment to such ex-tent as it was used in the country, applied fertilizers and protected cropsto snme extent. i d hetter cultivation -and- mnst imnortant. nossessed experttechnical staff0

Provisions1) Thr vesmo^n±.

Tr1h, f4,g-wres bel-JM. show t1he rapid rise X . argmc,atural- f-i rd assets+since 1952. They are at current prices and do not include private invest-r.ets nor t'hose -in4 food pvcs^gpar.ts, fertl4 ze fatoie -P-4-ricul=

tural machinery factories.

Investments in Fixed Assets.LL1 I.,Le" A.-)00± LU±_U O)t,0UUJ.- 01aU ±U 4-U

PVropo 'tUon oLf Agricultlur,!-(in billion dinars) to Total Fixed Assets

io7Ja± Federal Ot,er 'e-ve's ves-en'sa* , n Io _ , 1 1 -

.Ll.0 n,a. n.a. 4.01953 15.6 3.2 12.4 601i954 20.2 11.5 8.7 6,51955 26.5 15.2 11.3 6.91956 35.2 18.1 17.1 10.71957 55.7 30.0 25.7 13.71958 76.5 47.8 28.7 17.81959 114.7 79.3 35.4 20.8

The contributions of the different sources to these total fixedassets were:

(in billion dinars)

Agricultural Republics, Districts AgriculturalTotal Bank and Communes Organizations

1953 15.6 10.7 n.a. n.a.1954 20.2 13.2 3.4 3.61955 26.5 "64 3.9 6.21956 35.2 18.4 9.2 7.61957 55.7 36.3 7.2 12.21958 76.5 53.3 7.9 15.31959 114.7 88.3 10.1 16.3

It will be seen that while the major increases originated annuallyfrom central funds, all other levels also increased their contributions.aiterially.

- 28 -

(b) Private

In addition to investments by the socialist sector, it is estimatedthat the investments in agricultural fixed assets by private farmers amountedto:

(billion dinars)

1952 31.51953 33.01951 32.51955 32.51956 33.51957 37-01958 36.01959 36,0

Se lso_ T'hle XII.

T. toj a ya a t+he levrel ofC i.rre+.vnp+. i-n agriicultura+.i f;'jed

assets was considered in Yugoslavia to be more or less adequate but thepace Or developm.er.+ recer.+lyhasincreas sogetl tI.hat ito

be no longer sufficient.

2) Improved Seed

As a result of trials of various wheats from a number of coun-4- r* V,- - -4 - A ' A -A 4 I- Ju -1U U. l1 -J -4 ' A -- A *- 4 4- - - A 4-,s± D LUt2LWDa-V.La UIec;eU Ud. LV ,eLG1it3>U Y;g.e Urer~J. ;. U o ;Lo

were certain Italian varieties. The plan centers on providing seed andscuriLrjg UI,h wiLUepredU gj-L)wirLg of tIhese V-i±eLs.Mx. £lyU.L !U IIIa±zLe aLso

gave outstanding yields and provides the basis for the planned increase inthal crop.

3) Tractors and ivhchinery

Tractors were relatively little used prior to the last war.Immediately after the war their number was some 2500. By 1951 it had reachedonly 6,266. The 5-Year Plan counted much on a large increase in the numberand use of tractors and associated implements to make possible the deepploughing necessary to obtain high yields of crops. This was achieved inthe subsequent years largely by imports but partly by founding a tractormanufacturing industry within the country. In 1959, the total number oftractors was 26,500 and the current estimate exceeds 30,000.

The most common and most popular tractor in Yugoslavia is theFerguson. It is manufactured, as are several other classes of farmmachinery, on licence from the present manufacturers. Present output byone firm is1 4,000 a year. The model currently manufactured will be partlyreplaced shortly by a new and heavier (51 HP) model more suitable for deepploughing. It is estimated that in the next five years 50-60% of alltractors in agricultural use in Yugoslavia will be the present type Fergusonand 20-30%o the newa model.

- 29 -

Concentration on one make of tractor has enabled Yugoslavia tomake good arrangements for servicing it all over the country. At present122 service stations exist and 52 more are under construction. Most stationsdeal with the lighter type of repairs but heavy repair stations are alsodotted over the country. In general a tractor is within 50 kilometers atmost from a heavy repair station and within onl.y a few kilometers from alight repair station.

No record of the power implements in the country is available.Requirements are partly manufactured nationally on licence. One enter-prise has an annual output of 5.,370 tractor ploughs and 8h0 cultivators andseed drills: another now produces 1.200 wheat combines annually: anothermakes 20 types of attachments for agricultural tractors. The local manu-facture on licence of Perkins diesel engines for agricultural and other ptr-poses is assuming considerable proportions: one firm is producing 12,000in the current year,

Theo 1airgp majoitnyi+AT nf' t.rnactors ndl npowe.or manrhine; anre useprd onstate farms and by co-operativest relatively few are owned by private farms,which obtai- increasing use anually of power -r-ine of -- nu 1"1

collaboration with general agricultural co-operatives.

I) Fertilizers

The application of fertilizers in heavy doses produces significzmtincreases llheyefi e etr t Deplcia cosThueoftese~~ .UI L~ yL ' --±LU jJt-,± li-L;U1 .LU UJ. Ul,iI' jJJ.L±IIU4JCL.L t..Lup * l±ilt-, t UQiJ V. W

ferti'izers in large quantities is a major item in the 5-Year Plan. Thecurrent rate of utilzation - 1,23 million -tons -in 197 - 5 m5ore than, thUirtytimes the prewar figure and already in 1958 exceeded by thirteen times theqcuantity used five years previously.

By far the greater proportion of the fertilizers iE; provided byimport, but Yugoslavia has already undertaken their manufacture domestica:Lly.Local production in l959 is said to have been 300,000 tons (2ilQ000 tonsphosphatic and 40,000 tons nitrogenous). A new super-phosphaL.e factory of575O000 tons annual capacity is due to begin production this month: twonitrogenous factories of 500,000 tons combined annual capacity are underconstruction and a third to produce 360,000 tons annually is contemplated.

It is for consideration whether less concentration on heavy ferti-lizer application and more on the greater adoption on private farms of mixedcropping and mixed farming which would provide more farmyard manure wouldnot be in the better interests of maintaining soil fertility in the long run.

5) Storage

Storage capacity for agricultural produce was not a problem whenagricultural production in Yugoslavia was at a low level but it became aserious one as production increased. The plan provided for the construc-tion of increased storage but all sorts of makeshift aiid unsuitable arrange-ments for storage, such as the use of restaurant, cinezria and school buildings,became necessary when a bumper harvest was reaped in 1959.

- 30 -

The present storage capacity is 800,000 tons and a further b00,0200tons now iunder construction and due to be completed next year will give atotal capacity of 1.2 million tons in 1961. This, however, will be insuf-ficient for rnepds on hot+.1 thep food grain nrd rePfrigeration sides.

6) Workin Credit

Sho.t-te+m.s. g cry enl+. is an essentia1 roniiiremPnt of the cul-tivator but during the years when agricultural production was stagnant, its

,ir- I k~ I-p ,, I +ne rPI.,4 - I- ~ QE,- 9 niznl ,-r : I k I I io n ~i +.i r .,, -rt- nwrp li -!------ The- plar. madeY -rvso.frgetyi.crae r tt eaa].L,10 F.LO.fl JILOtA R C LJI.J~..~SL ,I *- - -- -

able to cultivators through co-operatives. The co-operatives obtain thefULIunds f1.rom thJ.-e Agri4.cUJ1 L,U1)ra1L B'aAk an(. give cr e. 4. 4U. such .r'Re f -s a

collaborate by selling surplus farm produce to them. A large proportion ofp ivate faLxLers rLoUw co-oper-ate in th"lJs Wany i1 the Udl sal.Pdj. ± Uh1ei.L. r.L

oilseed, sugarbeet and livestock surpluses. Fruit, vegetables, poultry,eggs, ailk and its prvdu-cts are m-ore u .ually sold direct to the cons-,er.

In 1959 the total working credit used was i8O.6 billion dinars,of which the Agricultural Bank provided 102.8 billions and agriculturalorganizations 15.8 billions from their own funds. Official opinion con-siders that this provision was sufficient to meet all needs, in both thesocialist and private sectors.

AchievementsOverall Results

Agriculture as a whole and including all sectors, gave an increasedproduction over the 1956 base of 66% in 1959 at the end of the third yearof the plan, against the plan target of 41% for the full 5-year period dueto bnd in 1961. It is a coincidence that in 1956 the production for agri-culture as a whole, though not for its branches, was exactly equal to thatof the preceding 10-year average. Individual sectors gave the follolingresults:

% Increaseover 1956:

Total Agriculture 66

Crop production sector 81Crops 88Fruit 228Viticulture 44Meadows 2

Livestock sector 25Cattle 24Pi Ps 3lSheep 16Pmilt.rv 5Beekeeping 47

Domestic processing sector 93

- 31 -

C o m m e n t s

The very high increase of 66% in the overall production of agri-culture at the end of the third year of the plan was the combined resultof two factors - the greater use of improved agricultural techniques andthe weather. For the former the plan of development and the action takenon it were responsible; the latter was beyond human control. There can beno doubt that the effect of each of the two factors was considerable.

1956. the Dlan base vear, was a drought vear with crop vieldsbelow normal. 1959, on the other hand, was an exceptionally favorable yearclimatically and produced record crnnp vieldq These two fortuitous. butfavorable circumstances when considering the achievements of the first threeyears of fhe pnl - nnm1inzri +.n nto rcilpP p vrp.ri11+. whi vih wounii hhvp. heen essspectacular had both years been more nearly average climatically.

This analysis is not intended to detract in any way from the ex-tent of the achl.-ievMm.J. t resulVirg fr*r the tehia reaure w we.bJ4re

adopted on an annually increasing scale under the plan. One result ofVl4-"- iILK,O'.UJ. ,_ LI U UV DZU±1 L±I 4.UILV PJLJJ.AU%UUA..U11 "I _L± JU. VWII_L~.11.k Ulu JX.'.'V

a drought year, was dry and climatically unfavorable to crop production._L71 UIU~ ±L.i.... .LL1 atgr±LLU_LU.ura±_ jJ.L-UuQuu L±Ui± ±L.L-UIL UAlc.LU 0±L UliU ±C.V'J.Ld:U±L PJLVV.LUJL!

year was much less than had occurred in former unfavorable years. It isclear thlat thLe better agricultural tecnniques whrich are being eUmploQyed inthe plan will help to neutralize the effect of unfavorable seasonal condi-tions on crop production in tne futures thougn tney can never eliminate italtogether. It would be unwise to believe that the adverse effect on cropyields of unfavorable weather conditions has been completely overcome bythese techniques.

In the livestock sector the increase of 25% in production withinthree years must be considered satisfactory. Measures to improve live-stock take much longer to showJ results than do those applied to crop pro-duction and for some years to come the latter sector must continue to makethe major contribution to the overall increase in agricultural productionexpected from the plan. Further, the plan concentrated special effortinitially on increased crop production as the sector which would give quickresults, Livestock improvement was intended to be secondary to it in thi,stage of agricultural development.

Contrast between Sectors in Agriculture

The development which has taken place in the socialist sector ofagriculture in the first three years of the pla'n has produced a remarkablecontrast in the average yields per hectare obta.iied from the principalcrops by that sector andx by private farms. A d:i.fference already existedin favor of the former even before the plan years, but it has been greatlymagnified in. the last three years, as Table XIII shows.

The pa;-'t wh ch general agri.cultural c-.)per'i;,ves play in reducingthe degree of this difference when rT'-ivatae farmers avail of tne facilitiesand services which they can mzovide is illustrated by the following data for1959 which were collected in the regions named:

- 32 -

Average Yields

(quintals per hectare)

Vojvodina Croatia Osije-kWheat Maize Sugarbeet Wheat 14aize Wheat

State farms 44.2 54.0 334 ( ) 9 I hn 4.80Co-operative farms 42.6 50.5 322 ( 41.6Private farms, cooperating 28.3 45.8 290 30-3 39.0 38.C)

" not " 19.2 33.4 290 17.9 24.1 29.9

A target for future production for private farms is afforded bythe average vields obtained in 1959 on large areas of wheat and maize bvsome state farms which sowed only Italian wheat varieties and only hybridmaize see.d. cgrnwn inmerr mTndrn nultivation nractices

Wheat M4aizeState Farm (quintals per hectare)

A 55 73B 58 69C 56 70

nr MfltV C VrAD flTMA T -C~1OQ1 - C'fB). T.Zi )±-ff~.i' PIX 1961-196,7'

ThJE 2e _).Lear l ±19i6 hasjLL not yet been firalize nor submitUed

for approval to the Federal National Assembly by whom it must be approved.iIary aspecus of' hle pla-ri ar-e still in thue stuages ofL U.Va±ilg and dlsUUussln.

The outline wqhich follows represents only the lines of current thought:modifications and changes may take place before finality is reached.

Principle of the Plan

Th-e basic principle un-derlying Government policy in the field ofagricultural production is the quickest possible intensification of prodtlc-tion in this sector of the economy. This is to be achieved by:

a) the introduction and spread of modern production methods onas large areas of land as possible, and to the greatestextent possible in the field of livestock. The result isto be reflected in the rise of the yield of crops perhectare and in the increase of productivity per head oflivestock;

b) a change in the pattern of agricultural produlction, withgreater emphasis on the more intensive production branchesand products, initially by expansion of animal husbandry,industrial crops, vegetables and fruit;

c) a corresponding expansion in the investment per hectare of:Land.

- 33 -

Targets

Yugoslavia considers that every condition exists for agriculturalproduction to grow during the plan neriod bv somewhat more than 8% annuallyover the 1959 level, thus raising total agricultural production by 1965 byabout %0t ov er that level.

The targets of nrocthcfion pnrnnoseA for the nrincipal crops andlivestock products and their comparison with last yearts production are:

1 9 5 9 1 9 6 5 Percentage DicreaseProduc- Average Produc- Averau e in 1965 over 1959

tion Yield tion Yield Produc- Average{non 4^n) (qu>no/ha (00n+ns (qn,jnt/inn t-i V YlPIrl

WhA?sEZeat 46,130 19. 5 2. i, 3,Maize 6.,670 25.8 10,000 45.0 50.0 74.4

'~ ~ ~ ~~0 I fnC)\ tff 'n r -I ~o 0 ~ 7 t -1

Potuatoes 2.,757 93.0 4.,0O0 133.0 146.0 143.0

~Thlk 1/ 2:,700 1,200.0/1 4.,580 1,500.0/1 67.0 -

Eg9s 2n - 3,OC_ - 82.0 -

i/ Lit,ers per cow.2/ In millions.

Livestock Sector

Speclal attention is to be devoted to the livestock sector. Afeature cf present agricultural production in Yugoslavia is that this sectorcontributes less than 30% of the annual total production. The ultimate aimis to raise the productive capacity of this sector at least to equality wiiththat of the crops sector.

Animal Population

One of the measures to this end is to increase the livestock popula-tion which is planned for 1965 on the following lines:

1960 1965 % of Increase(thousand heads) in 1965

Cattle 5,309 6,000 13Sheep 11,1475 12,500 9Pigs 6,198 7,000 13Poultry 30,171 35,000 16

Meat

The Dlan proposes to increase meat production from about 582,COOtons in 1959 to 1,100,000 - some statements say 1,250,000 - tons in 1965. Ofthe total rroduction the plan expects one third to come from each of the threesectors - farms of the socialist sector, private farms which collaborate withgennral agriculhural tnooDrnteives and Drivate farms which do not cooperate.

- 34 -

The planned distribution of production is:

(in thousands of tons)

Private SectorSocialist Cooperating Non-Cooperating

Total Sector Farms Farms

Total meat output 1,100 360 370 370

Beef 300 60 170 70Pork 580 250 180 150Mutton 90 10 15 55Poultry 120 0 5 75Horses 20 - - 20

Processing and Exnort

Of the planned total output of' principal agricultural products :Ln1965 the respective quantities expected to be processed domestically and tobe exported are:

(in thousands of tons)

Planned PlaLned Percentage AvailableTotal Quantity for to be- forProduct-on Processing Processed Export

Wheat 1.9300 2,000 44 320Maize 9,600 500 5 1,500Sugarbeet, 4,000 14,OOO lOG-Soybeans 300 280 914Sunflower 130 130 10 -Meat 1,060 580 55 200rJ.I.Trl- L43)0O 1,700 39 -

TIe output of processed products is to be stepped up as below,as an essential measure for the disposal of the greatly increased produc-tion of' raw materials,

1959 1965 % Increase7in tonsT in 1965

Fats, vegetable and edible oils 67,295 148,500 120Processeci meat 178,566 580,000 225fruit 24,630 94.o0 281a vegetables 12,500 80,000 5b0

Flour for confectionery industry 15,320 50,000 226

The plan contemplates the annual production of 1.35 million torts ofconcentrated livestock feed by 1965. Its fulfillment will involve heavy ex-penditure. The one existing super-concentrate factory in Yugoslatvia may notafford a reliable index of the amount. Its annual output is 20,000 tons., ofwhich 601P is poultry feed, and its total cost at 1957 Prices wtas 450 ,'n0 i iondinars, of which the foreign currency element for equipment was equivalent to120 million dinars.

- 35 -

Production by Sector

Socialist Sector

The 1961-1965 Plan is based on the diagnosis that the maximumpotential for higher average yields and increased production on the farmsof the socialist sector is still far from reached and that half the privatefarmers of the country do not yet collaborate with co-operatives. It proposes,therefore, to follow the current policy and to continue to use the socialistsector as the main instrument for achieving the new targets. Officialopinion thinks that in this way not only a radical transformation and moderni-zation of production, but also a complete preponderance of social productionrelations in agriculture can be achieved.

The plan expects the socialist sector's share in the production ofthe main aprinultural commodities to increase by 196q to the following:-

SOi21 iSt. Sector Share

1959 1oA5

Wheat 19 28Manie 1), 30Sugarbeet 42 50Potatoes 2 16Meat 12 33

Eggs 1 e

In, order that the socialist sector may increase its contributionto UOUdcL UULU. iI UUO UlI±L ULtoU Phis degeic bL1s p cVtepashth eL

yield per hectare of each of these crops on socialist farms will increaseas follows:

(quintals per hectare)

Act-ua.l F arlrle

1959 1965

Wheat 38.4 50Mvaize 50.0 75Sugarbeet 331.0 600Potatoes 170.0 325Milk 1/ 2600.0 3000

1/ Liters per cow.

Private Sector

Though the plan expects the share of the socialist sector in totalproduction to increase very'-materially by 1965, the onus of providing by farthe greater part of the production of cereals, potatoes and meat will stillrest on the private farmer. His sugarbeet production will also have to bemore than doubled, The extent of the increases in production which the planexpects of him in 1965,in comparison with his actual achievements in 1959, iscalculated as follows:

- 36 -

(in thousand metric tons)

19N9 1965 Planned Inctease or DecreaseActual Planned Production Percentage

W4heat 3,323 3,100 - 223 - 7MA; 77. e '7 7,O0 4- 1,233 + 91Sugarbeet 1,399 3,000 + 1,601 +114Potatoes 2,703 3,350 + 6M47 + 21,Meat 477 740 + 263 + 514

,Nh'llr2,4|60 2j080 - 380 - 15Eggs 1/ 1,635 1,500 - 135 - 8

1/ In millions.

Provisions Envisaged for the PlanSupplies

Information is not yet available regarding Ule exact extent of t;heprovisions which it is intended to make for carrying out the plan, but cu.rrentestimates of some of them are given below. The corresponding figures for 1959are shown for comparison:

1959 -1965

Tractors, total. 26,500 75,000Combines, total 4,850 15,000Fertilizers (tons) 1,231,000 3,200,000Tractors, domestically manufactured 5,000 20,000Fertilizers, " (tons) 400,000 2,000,000Animal feeding stuffs ' (tons) 59,030 1,350,000

Investments

The estimated total investment during the plan amounts to 910 bil-lion dinars, of which 750 billions will be provided by the socialist sectorand 150 billions by the private sector. Approximately 45% of the total in-vestments in the socialist sector is expected from federal resources, 10% fromrepublican and local funds, 35% from agricultural organizations, and 10% frombudget funds.

Of the estimated total investments required, the plan foresees thatthe socialist sector of the livestock plan will account for 240 billion dinars,allocated as follows:

(a) 140 billion dinars for additional livestock, buildingsand equipment, other than poultry;

(b) 25 billion dinars for establishing modern poultry farmsto raise about 80 million fowls:

(c) 75 billion dinars for fodder processing plants, slaughter-houses and meat processing factories-

Tlhc +n+.nl irm&i ii ef- 1 ¶r+c+.r-wr1' rnicor1 -r c:1 ni1h+(Mr i'Z PnPmr.+.PrA hr

the plan to increase by 99% from 146 billion dinars in 1959 to 290 billionS; nnrc 1 CAcl

- 37 -

C o m m e n t s

Though the current 5-Year Plan of agricultural development didnot neglect livestock, it aimed at obtaining the largest total increase inproduction in the shortest time. In view of that aim, the concentrationof main effort on the crop production sector could not fail to follow auto-matically.

The 1961-1965 Plan is being conceived on broader lines and aimsat a better balanced production. It still expects the major contributionto the plarned increase in the coming years to result from crop production.But it also takes special steps to raise livestock production in its variousbranches, both auantitativelv and qualitatively. At the same time. it pro-vides for a large increase in the domestic processing of agriculturalpnrOncts as a means of diisnnOa1 ^f the Large voliume of certfain classes ofraw materials which will be surplus to internal requirements.

Specia m Rlq, re 4-en foyr +Ihe Plan

1. 11aresting M 4 M.nac.nrM^;_ n7 i z eA Ad C--po pr4 AA 4C4-4 _Ai_4 S_ Croas4" 1-

though not absolutely, on the farms of the socialist sector. In some direc-ti-;or- t-he provision for h1ArIves-tln-g ma-C11ine.y is ver-y -;-- -Uat ar.dunsts

factory. This relates specially to combines and transport suitable forhandling large productions anid heavy torinages of forage crops9 maize andsugarbeet. Iack of such equipment both increases cost of production throughthe necessity to use haund labor and in some impo-utant eases, as in forage,causes large losses in the nutritive value of the crop through inability toharvest by optimun date. This serious lack should be made good early. Tnemore numerous and better quality livestock which the plan will produce,necessitates the production of very much larger volumes of fodder than azegromri at present and requires fodder of best quality if maximum output ofmilk and meat is to be obtained. The greatly increased production of maizeand sugarbeet will add correspondingly to the present difficulties of har-vesting these crops.

2. Food Processing Plant

It is indispensible to the economic and profitable disposal ofithe additional agricultural production, both dead and alive, which willresult from the plan that much of it should be processed for both home con-suLmption and export. This has been fully realized in the plan. Require-ments inclu,de additional slaughterhouses, refrigeration, meat and dairyprocessing plants and fruit and vegetable processing machinery. Of allrequirements for the success of the plan this is one of outstanding importance.

3. Livestock Feed Processing Plant

One of the greatest obstacles at present to the production of meat,milk and their derivatives is the almost total lack in the country of con-centrated livestock feeds. The demand is very great but, apart from onesmall factory in Slovenia with an annual output of 20,000 tons, and a numberof small cornTercial units throughout the country which produce various mixedfeeds in small quantities, there is no supply of processed feeds.

WAitlhout suitable concentrates in adequate quantities it is not possible tohope to attain the 1965 targets. This cannot be stressed too strongly.With provision of the necessary factory and manufacturing capacity, Yugo-slavia should be able to go far in livestock production, dead and alive.

At the same time, entire dependence should not rest on concen-trates. Correspondingly adequate forage and silage must be produced and led.In the foreign market Yugoslavia has to compete with grass-fed beef and ccistof production by concentrates can prove expensive in competition.

4. Technical Personnel

The drive for increased agricultural production, which began in1957, requires technical advice and guidance if it is to be fully effectivre.This is not sufficiently available at present. In one important agricul-tural district it was stated that only 25% of its staff requirements can befilled. Special efforts have been and are being made to increase teachingfacilities and to produce a greater output of technical staff at all levels.If reauirements are to be met within a reasonable period, still greaterprovision of Lacilities must be arranged.

Disoosal of Produce

The 1961-196q Plan -will prduce a considerable volume of' someagricultural commodities for disposal by export. Amongst them, meat, wheat,nnd miaze are rm.portavnt- The quantities of meat and wheat likely to beavailable are not sufficient to cause serious concern for their profitables.I Thes npl -nnA export-able a plus o-cf' 1 m- II i i?n +tonsq or° maizem, 7ry b

less easy tc, market, at any rate in Western Europe, in view of the compe-tition.. i-nhese Marnk-e from "n' er large 1 mr-iz-n -pndc countries. TUnless

other means of utilization or other territories for marketing can be found,the disposal of so large a volun.e of .ize may actuaily pro%v-e to be a problem.

Attainment of the 1961-1965 Targets

The realization of the targets of increased production in generalshloulld be fLeasible, - ie averag -lmai 4od s the 4rviio 4of

adequate supplies and services and sustained effort by all concerned inits achievemient. Ths -view i9 s-upported by the extent of the accomplish--ments up to date, by the magnitude of the yields per hectare which thesocialist sector has proved to be obtainaDle from the main crops wnen grcwnunder modern techniques and by the 11 million hectares of private farmsstill prducing low unit yields Dut having a large potential for increase.Individual targets are high in some instances. That for meat will be moredifficult to attain within the period proposed than those for crops. Onthe other hand, the wheat target has almost been touched already in a goodyear.

- 39 -

The degree of increase in crop yields per hectare expected ofthe socialist sector is considerable but the standards of yield set do notseem unattainable. The standard for wheat has already been surpassed onlarge areas on many state farms: current maize yields on the best farmsare close to that now set: sugarbeet vields have reached 500 quintals perhectare already on the most progressive farms. The planned average milkvield of 3,000 liters per cow per annum is alreadv being exceeded on somefarms, while some co-operatives have almost reached it. Though these highcrop vields were obtained in a verv favorable year climatically, past per-formance indicates that the socialist sector can meet this new challenge.

The contribution towards total production required of the privatesector in agricu1.l tu re is npavqrtA nm Inrlv imnnr'tnnt. not. ,n]Iv hpnmisn of i t1greater dimensions but because it necessitates an adjustment in the presentproduction pattern of thesec+or. Sugarbeet must constitute in future agreater and wheat a smaller proportion of its total crop production. M~oreforage also rust be produced. On the livestock side the sector is requiredto produce much more meat and less milk than at present. The sector un-do ubot hac th pottial to p rd ueC, the i ncrases r eq u d of; imt * 1 f

remains for the general agricultural co-operatives of the socialist sectorVt peAru Qade '.UL Z ai 4t . .kU .h4 JUAI sU O a..Ljv sUO WJ1U-LUOO

TAND TEITUTE TN 1954L

Number of AreaH-old i rgs (her.tares0OO)

Total~~~~~~~~~~~~ 250,35 12436

General SQocial Hol ings 1,00-) 750State agricultural farms 713 64oAM9 I ultuaal instituutions and schols 291 110

Co-operative Holdings 7 496Peasant work co-operatives 384 206ueneral agricult- -a'l co-operatiVeS '42 290SDecialized co-operatives 103

Private Holdings 2,563,619 11,190Agriculturists 1,749,149 8,296Non-agriculturists 814,124 2,894

Size of Holdings

Up to 2 hectares - Total 904,503 1,076Agriculturists 500,379 602Non-agriculturists 404,124 474

2 - 5 hectares - Total 946,632 3,335Agriculturists 704,632 2,475Non-agriculturists 242,000 860

5 - 8 hectares - Total 391,203 2,521Agriculturists 295,203 1,941Non-agriculturists 96,000 580

Over 8 hectares - Total 321,281 4,258Agriculturists 249,281 3,278Non-agriculturists 72,000 980

2/ Land tenure wiill be subject to new census in 1960.

Source: Federal Statistical Institute Yearbookand unpubli'sh.ed dAta.

Table CII

ALLOCATION OF A.ABLE IAI'

(in thousand hectares)

S o w n A r e aTotal IndustrialArea Total Clereals Crops _ ' Fs,cler Nu-arseries Fallow

1938l 7,800 7,26C 6,260 1B8 8|5 365 ... 404

1935 7,9Cc 7,232C 6,3CO 205 ')i-7 370 386

1948 T7,2(c 6,1620 5,340 39 0 4 7 480 2.3 583

19)49 7,3140 6, 66c 5,120 1489 1478 573 3.2 67C

95() '7,231) 6,)630 5,190 444 46o 545 3.2 59i'

195:L 7,170 6,158C 5,180 388= 453 5522 3.4 593

1952, 7,15! 6,584 5,26 319 446 554 3.2 615

1953 7,C3O 6,690 5,38 321 440 540 3.4 613

195)4 T,142o 6,750 5,390 366 449 545 3.9 663

1955 '7,530 6,860 5,470 371 482 535 4.7 67(

1956 7,600 68c00 5,1420 325 480 543 4.1 822

1957' 7r,630o 7,130 5,740 3.50 502 541 4.C 485

1958 y7,6550 7,0220 5,56C 337 490 616 4.1 619

19559 17,66c0 7)24( 5,750 3)42 518 627 3.7 423

Source: Federal Statistical Institute Yearbook.

AREA AND PRDWUCTION OF THE P'RINCIPAL C'SREAL CROPS Table fIi

W h ei a t M a i 2 e 0 a t a___ B a r 1 e yR y Area Averaget Area =verage Area Average Area Average Area AverageHar- Produe- Y'ield Har- Prcduc- Yield Har- Prodac- Yield Har- Produc- Yield Har- Produc- 'Yield

vested tion &ir ha. vested tion pEr ha. vested tion per ha. vested tion _ per Lia. vested tion Er ha.

1930/39 2,140 2,243 U.4 2,600 4,300 16.4 366 310 8.5 423 410 9.7 250 212 8.5

1948 1,89C' 21,530 33.4 2,370 4,o8M 17,1 348 345 9.9 319 353 11.1 249 251 10.1

1949 1,790 2,520 14.1 2,240 3,710 16.6 35B 384 10.7 313 381 12.2 250 269 10.4

1950 1,79C0 1,830 10.3 2,210 2,090 9.4 389 195 5.10 3215 266 8.2 256 219 8.''

1951 1,770 2,280 12.9 2,360 4,040 17.1 339 29.3 8.65 331 359 10.9 287 277 9.6

1952 1,840 1,680 9.2 2,290 1,47C7 6.4 334 215 6.5 317 258 8.2 295 225 7.6

1953 1,89C) 2,510 13.3 2,410 3,840 25.9 339 352 10.14 360) 458 12.7 298 309 10.4

1954 1,850 1,380 7.5 2,460 3,000 12.2 341 233 6.8 331 253 7.6 276 191 6.9

1955 1,90C0 2,1430 12.8 2,470 3,900 .5.8 321 278 8.7 3318 390 11.6 278 263 9.5

1956 1,620 1,600 9.9 2,570 3,370 13.1 37.3 324 8.7 353 344 9.7 252 205 8.2

1957 1,97t 3,100 15.8 2,590 5,66c 21.9 4C2 484 12.C 4o3 604 14.8 256 28C 1l.0

1958 1,990 2,450 12.3 2,390 3,950 16.5 347 259 7-5 390 470 12.1 248 241 9.7

1959 2,13K; 4,130 19.4 2,58C 6,670 26.8 338 404 12.0 378 575 15.2 236 265 U1.2

1960o 3,800 16.0 6,200 25.0 470 550 - 200 -

3965 LOO4,300 24.0 1.000 M 41.2 50O 15.10 900 24.0 200 _

l Plan. surce: Federal Statistical Institute Yearbook;&t Iistimste. Area in thousands of hectares Federal Institute for Economic Planning.

Averageti yn in tqOusairs pe hzet.are.Average yield in quintals per hect-e-3

AREA AND PRODUCTION iOF THE PRINCIPAL INDUSrRIAL ' WoXS

S u± a r B e o t _ T o b a o ao C o t t o n _ _ p S ui n I 1, e --Trea Average Area Average Area Average Are-, A-verng Area AverageHar- Produe- Yield Har- Produc- Yield Har- Praduc- Yield H&a- Froduc- I'Y:eld Har- Pro-uc- YLeld

vested tion per ha. vested tion per 'ha. ves-fid tion per ha. vc,;-,t6 _it >n pur ha. vested tion er ha.

1930/39 35.0 616 176 14.9 14.7 9.9 2.11 1.35 6.4 42 25$ 59 6 9.1 15.2

1948 79.3 1,500 389 34.0 29.3 8.6 15.6 5.35 3.4 76.4 383 50 117 31,0 10.3

1949 89.5 1,1 C 322 34.2 30.8 9.0D 42.1 14.20 3.4 108.0 464 43 L30 130.0 10.0

195u 5,8.4 851 86 33.6 15.8 4.7 26.10 4.79 1.8 71.2 175 25 110 69.3 6.3

1551 100.0 1,940 393 37.1 27.8 7.5 15.9 3.63 2.3 50.4 204 41 10] 94.4 '3.4

1i952 76.1 512 67 28.8 14.8 5.2 7.2 1.80 2.5 46.1 120 26 88 50.9 '.8

15'53 El4.2 1,510 180 35.9 30.9 8.6 7.2 2.99 4.2 44.1 220 50 93 113.0 12.1

15'54 78.7 1,250 159 36.8 32.3 8.8 11.8 5.32 4.5 57J3 272 47 125 125.o 10.0

1555 69.5 1,380 198 41.7 43.3 10.4 14. C 8.90 6.4 62.'0 332 55 L04 102.0 9 .9

i5'56 70.0 1,130 ]63 41.2 30.7 7.4 13.2 6.1D 4.6 L9.1D 220 45 73 59.0 8..1

19357 E82.6 2,030 246 56.4 63.3 11'2 12.6 9.95 7.9 51.!9 312 60 82 92.7 I L.4

1558 71.3 1,480 207 53.0 39.2 7.4 13.1 6.52 5.0 51.6 262 51 74 7r9.6 l).8

1959 81.0 2,420 297 49.0 46.0 9.3 13.0 9.0 6,7 39.0 241 62 86 1L4.0 13.2

196I 0 2700 400 55.0 - 15.t - 250 - 120.

196 5a 4,000 5;00 65.0 12.0 40.0 15.0 250 70 130.0 17. 0

Man. Source: Federa:l Statistical In3titute Yearbook.LAO D> bt9c. *14. ian thoSusa,-sttO of. heo"C-res. FedSeral l4stu t--ut fO. V TEIIAOI.A oJ" ±L4iLI16.

Iroduction in thousands of* metric tons.Average yield in quintals per hectare.

AREA AND PRCUCTIC)N OE ThE PFUAi'!CIPAL FOInjA jOjtOP Tao.Lc V

.u eae r n e C 1 o v e r V e t c h _ ForaEe Be& - _ M e a d o w s P a s t t. r e sArea Pro- Aver. Area Plro- Aver. Area Pro- Aver. Irea Pro- Aver. Area Pro- Aver. Pro-. Avor,Har- duc- Yield Har-- (luc- Yie:Ld Har- duLo- Yield Har- duo- Yield HOr- duc- Yield Area duL- YieXdA

vested tion p6ia. vesteed tion dha. vested tion p/ha, vested tion p/ha. vested tion E Grazed tiOrL p/ha.

1930/39 1)0 372 39 112 396 35 34.8 .11 32 31 1468 143 1,5930 3,370 18 4,300 - -

19148 157 680 143 86.4 344 40 64.1 2014 32 25.2 45,9 182 1,750 3,300 17 3,760 1,700 4-.5

9149 1132 708 38 104 399 314 96.1 1307 32 32.3 922 173 1,8l10 3,500 18 3,870 1,7hI 4.7

ig!. I;O 383 25 87.4 216 23. 65 98 15 29.7 7599 102 1,8160 2,350 12 4,230 1, 160 2.9

19,1 1716 826 146 98,4 426 313 31.2 88 28 35.7 9598 156 1,8120 4,o65 21 3, 880 2,170 5.8

15952 1137 491 26 112 280 23 50.2 85 17 27 5c01 88 1,8E00 2,41.0 12 4,CeO 1,360 3.5

1953 211 939 143 103 1419 365 46.3 ].47 32 30.8 964 166 1,870 3,730 20 4,240 2,210 5'.2

1954 2:L6 925 142 106 431 36 52.5 254 29 31.3 965 157 1,880 3,290 19 4,4 10 2,130 4.8

195!5 198 960 147 122 583 14L 54 1.69 31 31.4 800 188 1,860 3,500 19 4,510 2,]Jco 4.7

195;6 169 75C 1414 150 6oo 365 56 1]77 32 31 882 153 1,5 10 3,60 19 4,660 2,230 L4.8

1957 173 880 50 170 789 40 59.8 207 35 31.8 1,250 207 1,910 3,59o 19 4,660 2,330 5.0

1958 196 865 143 227 767 31 48 ]19 25 31.2 1,zLO 173 l,9CtS 3,C10 16 4,790 1,910 4.0

1959 23t5 :L,360 !56 - - - - - 33.0 1,150 209 - - - - - -

196C - 1L,200 1,200

1 6552 L ,700 1, 3CC

:L/ PLan. Area in thsusands of' hectares./ b3timate. Production in thousands cof metric tons.

Average yi.eld in quintals per hecta-e. Source: Federa:l Statistical Institute Yearbook.

Federal Tn-tituto for Eernomi.c PI-nr '.ng.

Table VI

PRODUCTION OF THE PRINCIPAL FRUITS

(in thousands of metric tons)

SCIOllrPlmsns Apples Pears Cherries Walnuts Figs Cheo r'es Olives Quince Citrus Peaches Apricots

L930/39 5105 141 64 30 35 11 9 33 7' .46 15, 9

1948 610 230 69 31 25 17 -4 25; 9 .12 1' 9

:1949 3IB6 171 64 33 29 15 21 4E 12 .12 16 14

1950 2:22 103 42 28 31 10 16 6 1( .U 14 10

:1951 1,153 180 107 48 34 15 24 32' 12 .21 17 16

:1952 2,37 164 62 57 32 UL 24 25; 14 .18 171 22

:L953 1,0:22 185 98 5° 36 19 23 1C) 18 .24 20 35

:1954 402 90 48 33 38 18 13 65; 1() .29 15, 13

1L955 904 249 56 55 36 21 25 1; 13 .56 15, 2

1L956 180 140 4o 36 18 25 14 21 3 .21 6 7

1L957 588 106 60 51 19 21 0 27' E .32 23 32

1]958 544 306 87 51 36 24 21 20 8 .18 16 4

1959 1,2LO :236 86 61 34 23 32 31 11 1L.09 32 43

Source: Federal Statistical Institate Yearbook.

UTfTT'P TTT 1T7P

AREA AND PRODUCTION

Area/l Production /2Vineyards Gralpes Wines

1930-39 226 790 4.0

1948 258 843 4.0

1949) 253 854 4.14

1950 257 749 3.35

1951 258 2,210 6.06

1952 261 678 3.15

195:3 267 847 3.82

1954 274 586 2.85

1955 280 1,150 5.30

1956 273 656 3.22

1957 271 907 4.21

1958 275 1,190 5.7$

1959 277 954 4.59

1/ In thousands of hectares.g/ Grapes in thousands of tons.

Wine in millions of liters.

Source: Federal Statistical Institute Yearbook

A AND PRCDUCTIONV OF THE PRINCIPAI VEGETABLE CROPSTalie VII J

Onions and e:lons and

]potatoes Beans P e a a Garlic Cabbage Paprika Toraboes WatermelonsProduc- Produc- Produc- P^od-ac - Prod-ac- Produc- Produc- Frod-ac-

Area __tion krea tion Area, tion, Area tion Artsa ticn Area tion Area ticn Area tion

1.930/39 275 l,65o 37 1.34 4.8 6.o 20 77 35 243 9 22 7 44 21 157

1948 197 1,480 28 1.47 7.3 7.1 25 157 21 384 10 67 :11 154 24 272

1949 234 2, 1Co 38 ]58 10.1 12.8 31 1.97 32 5Co6 15 102 :15 177 22 232

195C 241 1,o5o 33 63 8.7 5.7 23 58 214 2CI1 14 55 L4 1C3 16 1C4

1951 226 1.,650 .30 1.88 8.0 10.1. 25 119 29? 376 16 97 :15 173 23 252

1552 24C 1.,150 22 50 5.5 4.1. 28 95 25 207 14 56 -13 85 21 119

1953 245 2,100 22 ]50 6.2 7.-6 27 152 29 436 14 86 14 154 30 338

195k 256 ]1,880 25 1.73 7.3 8.6 30 1.47 27 319 17 87 :15 151 28 275

1955 261 2,270 30 227 8.5 10.95 35 1.81 29 460 21 110 :14 101 29 265

1956 268 2,190 30 1.68 7.6 6.31 31 131 31 330 19 108 19 203 28 257

1957 285 31,310 32 179 9.4 10.3 34 200 3:2 553 21 143 21 278 30 438

1958 277 2,620 28 119 7.9 5.3 33 1.35 31 394 21 122 20 243 29 276

l Area in thousasds olr heotares.] Production in thousands of metric tons.

SorwCet ]Federal Slatisatical Institute Yearbook.

TAME TX

LI. t POPULU TTON

(in thousands)

Cattle Buffaloes Horses Shee Fis Poultrv

1939 4,332 _ 1,274 10,282 3,564 22,450

1947 4,240 - 973 9,970 3,439 n.a.

1948 5,083 - 1,021 11,392 4,661 n.a.

1949 5,278 78 1,050 11,654 4,135 19,354

1950 5,248 66 1,097 10,046 4,295 20,207

1951 4,740 60 1,095 10,276 3,917 17,174

1952 4,834 64 1,103 10,522 3,999 20,440

1953 5.007 71 1,126 11,404 4,527 19,665

1954 5,097 71 1,193 12,112 4,310 25,450

1955 5.290 71 1,242 11,979 4,780 24,837

1956 5,206 67 1,296 11,360 4,655 25,938

1957 4,947 67 1,307 10,622 3,725 25,992

1958 4,863 59 1,296 10,633 4,243 28,504

1959 5,038 51 1,274 11,247 5,656 27,721

1961/1 5,285 - 1,272 11,460 6,208 30,088

1 9 6 6 /2 6,300 - 850 13,300 7,000 40,000

/ Plan January 1.2/ Estimate JTi,.-ar 1.

CJl LJ.- U ± ,J -1t- -4- -- I., T -4±iI, -L eU cea.J. J'do-urce: Federal l Institute Yor cnoc anrbng.Federal Institute for Economic Planning.

I o os , I N cSs rN u' >t , 9o -4 r- N_ (V (D U IrJ, J C ' H' v. t- D r w r . ro ce w ~ Io ! r1 rH rH r1 rH Hff r (:Y

4-4E- 4 H r H r- H H r1 r-l rH (V )f -C\ 4 'O r0Cl)

I)~U) OQ

Er-f

h- 41.' (Vi 0) ') t) '-) -t e. CD C' (>l '. (V fX -4 Ifo 0 ' 0" C' CO A) as to , r-lc r- X r-1 r- rH H r-I r r Hr(Vt

(12 ~ r s e rl i CJ '-0 0-D- etO r-I C'.' CY cr C' (V CD

.Cs c'\ (v.' ( CY.' C( -4 -4 C)

.~~~~~C tr o_ ON cs cx o r, 'OeD CD r-l - C- (D 0D O rD° . (; ri ri 04( r r r H C\V ( (I (V 4 -4 '-. (VN

.3) +[ E~ 4Ct h W u~s 0s t cX as V c' uo CD as to 0 HD (V (D tA (D 4 )E-l ¢ (V CC\ Cr (V -'\ u 4 oot W\. \ .0 N o r0 H

00 O

4-3 24 u c c\f co- utr e:z zt j ol t W CN L D\ rl\ CHi( ir >

~~~~~~~~~r2 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-

.Z u. C' r .l 'C 0 C) r O (C rtl r(V . ' - I C) 'C' 0

O O r-4 u-,o cr, (D r in kJrl\ o ^ r0 >_OO gr- ~ar co? a) aD ax cb~~ ~~~~ r -i r r)-N rH rff r-r gt r i3

cr3 r o Do'i r-4 .H

4 C'a C' N crO 'C'r tr N^ N4> C) CO '0 -4 H to IC' 4r. o cOIl)-4r-l Hi r Hi r- Ht Hi Hi Hd (V HQ Hi (Vi r-i .riC rlr C/)i-4t

(I) U.' r'C'' - C CD'' to ci CD CZ) C) ca) 0 -4' as C'' C\ O to C' C"r --- (Vi Cr'\' C'. '0 C' 0 4)

3, *r-i Ca

rN to c ' ' H ( l', -' ' to CY, *) -4 -? -4 In\ In' xr,\ ix.' '-' IJrN xIC' I.4.' 4-Cs',\

0' a', all CT all ON a' Cl'N Cl C' C' C'% '1 C's C'NH H H H H H H H H H~~~~~~~~r- H- H- H- H- H- H- HI(VIC41c4

TABLE XI

FORST EXPLOITT.T I)N

TimberTransported

to MainProduction Index Lumber Yards

1956 = 100 (cubic meters)

19°48 129 9,824

1949 164 12,326

1950 126 9,756

1951 105 8,241

1952 114 8,776

1953 93 7,202

1954 87 7,058

1955 85 6,882

1956 100 8,052

1957 96 7,717

1958 87 6,998

1959 93 7,479

1960/a 107 8,601

1965Z2 158 12,728

,/ Pla.n.2/ Estimate.

Source: Federal Statistical Institu.te YearbookFederal Institute for Economic Planning

Tadle XII

INESTMENT IN AGRICULTURE

(billions of' dinars at 1956 prices)

Of W h i c h:Goneral

Total State Agricuiltural Waterworks1952 1953 1954 1955; '1956 1957 195 8 1959 ' L9/t9 Farms Cooperatives Cooperatives

A. Out of SociaL Resources

1.. Ilyrotechnical projects imlen d improimment and waterminagements 2.8 5.4 4.-4 6.3 9.9 :L. 9 16.,0 20.2 76.9 - _ 76.9

2. Equipment 4.3 4.0 5.-4 4.8 10.8 25.0 34-.5 41b.5; 130.3 90.0 4o. _

3. Perennial plantationo 1.2 2.0 2.6 2.9 3.2 :3.4 31.0 4.5 22.8 15.0 7.8

4. Othe r (farm buildings,ULvestock, etc.) 5.2 9.1 9.0 9.6 1.2 13.0 15.4 31.8 104.3 65.3 39.0 _

Total 13.5 20.5 2144 23.6 35.1 53.3 68.,9 98.0 334.3 170.3 86. 8 176.9

B. AgLcultural ServicesResearcE a-nd Training 1.0 1.2 1.,2 1.3 1.7 5.1 4.4 3.2 19.1 - - -

C. Out gf Resources of frivato Producers

1. Ecpqipmeint 3.5 3.0 3.0 3.0 ' 3.0 3.0 2.,0 2.0 22.5

2. Perennial p:lantationis 4.5 4.5 4.5 Sc) 5.0 6.0 6.o 6.c 41.5

3. Other (farm buildingsI and 23.5 25.5 25.o 24.5 25.5 28.0 28.0 28.C 208.05 tcst=vS

l'otal 31.5 33.0 32.5 32.5 33.5 37.0C 36.0 36.o 272.0

Source: National Bank of Yugoslavia.Investment Bank of Yugos}avia.

TABLE XIII

AVJ± YIE b OFF CROSU ON THE SOIALI1ST MIJ I PRIVATE SEC1TUS

(quintals per hectare)

S O C I A L I S T S E C T O R

STATE FARIB

Year Wheat & Rye Maize Sugarbeet Potatoes Hemp

1954 9.6 19.2 149.2 76.oi 54.2

1955 17.9 20.1i 195.2 98.0 62.1

1956 15.0 21.5 158.6 99.0 62.1

1957 23.8 39.3 29h.0 1h78 1221.0

1958 2)4-A _2_0 277?0 lrn-7 7P21

95q 9A 3= 52 2 3 E2A 9Q19C

PRASE1T 1W0r J RKCO .MPJRdAT TR LITM r.nY14TGR.AL COOPE.FATIVETpS

i,7L r' r1. 17

1957 22.6 37.4 274.0 129.0 79.0

1958 21.3 38.7 245i1 93.3 71.5

19> 37e9 4-7o-7 31.0 119.0 92.0

P R IV A T E S E C T O R

1954 7.3 11.8 160.0 74.0

1955 12.0 15.5 199.0 87.1 51.4

1956 9.3 12.7 143.1 81.4 38.4

1957 13.0 20.8 235.0 11)14. 51.0

1958 11.2 14.8 188.1 93.4 41.5

1959 17.3 24.0 277.0 93.0 53.1

Source: Federal Institute for EconuQL-ic Planning.

A,ppeadex I

CONTIRACT BETWEIEAN A PLASA-1TTS UIORK COOPEERLT1±VE A1\1D ITS KK1BERS

On the basis of the provisions concerning cooperatives in

agriculture /Official Gazette "Sluzbeni list F`NRJ" No.5/54/ and

of Article 6 of the statutes of the "Njegos" Peasants lUork

Cooperative in Lovcenac, in order to regulate ownership relations

between the cooperative and the persons who contribute, and/or

lease their property to the cooperative, the following

OWNERSHIP CONTRACT

is concluded.

Lessee: "Njegos", Peasar.ts Work Cooperative in Lovcenac,

hereinafter called the Cooperative.

Lessor: . . . . . from Lovcenac, residing in . . . .

street, house No. . . district . . .

OBJECT CF TrFASE:

Trhe Goo-perative. takes. nver hy ear

Arabhl landTotal irea . . . . cadastral units, .hectares

PFRIOD OT F TCi' T.71 LSF.

Theo Goopratve+, takes orV tec nuire o,f thep above mrentioc.ned8

acreage for a pe-riod of at l eca-st th+rehei ye-ars froym nO-cthobr 1, .

to October 1, .

-2

TERM-3 OF L-- EAQ

Th>e Cooperative shall pay the lessor as follows. Lo thel

-4t4l-zation of lthle above mentioned lan-d:

Per cadastral -Unit ot land held under lease for one

economic year

200 kg of wheat and 200 kg of wheat straw

or, in so far as the lessor desires settlement in money, the

valne of these quantities of wheat and straw in cash, on

the basis of prices which will prevail on the mnarket at

the time of the harvest of the product in question.

The amount of the lease will be paid to the lessor before

the end of the year for which the contract has been signed and

according to the following schedule: 50 per cent before August 1

of that year and the remaining 50 per cent before December 31 of

the same year.

TAXATION

The Cooperative undertakes to pay the basic taxes. The lessor

pays the additional income tax in respect of the lease.

DISCONTINUANCE CF THE LEASE

In the case of discontinuance of the lease a written notice

shall be E;iven. The notice is to be submitted before Jlyv 1 of

the year in which the lease contract expires The withdrawal of

land is effected on October 1, and the Cooperative ulndertakes

cover all the exprenses in cor-o ection with the withdraw^ral of land

from. the Coo-erat-ire when one of its decides to leave the

Cooperati-e.

If t,he discontinuance of the contradt is not notified as

described above, the validity of the contract is prolonged for the

period of time for which the contract was concluded.

COGPETENCE IN CASE OF DISPUTE

In case of dispute arising from this contract the competent

court is the district court in Backa Topola.

The existing legal provisions are to be applied in the

event of a dispute.

FINAL CLAUSES

This onntract is dr-a-wn up in two identical copies one of

wahTh is retained hv the lessor and the other hy the lessee.

To thizs ton+.ract is also attached the form of a power of attomrney

.r.Thich is~+r c to -be givr. to the e=d,rentu 1essrvv h~ the~ owr.er~ ovf the

land, ther.+ 1" lar does "no nclude the ntract personlly.

In .LJv,eenac, . . .*9 . .

For the Cooperative:T essor:

Appendex II

-uONITERACT

EETWEEN A GENERAL AGRICULTURAL COOPERATIVEAND ITS IvEIERS

CONTRACT NO. PRM OCER:

concerning production and delivery of cereals from the 19... harvest,concluded on ......, 19... between the General Agricultural Cooperativefrom ....... House no. ... (hereinafter called "the Agricultural Organi-zation") and producer .. ..... from . .House no. .. ......(hereinafter called "the producer").

1. The producer undertakes to sow in time, and until ...... 19...at the latest, the following crops on the area of ..... cadastral units:

*~~---- - *~~ ilArea Total Value of

In Cad. In Production | ProductionUnits Ha. Crop Neighbor in Quintals in Dinars

I t | | ~~On the left side ll| t | I On the riaht side I I

IOn the left sideI On the right side

_ _ _ __ ___ 1w__ 12. In order to realize the highest possible yieldj the producer

shall apply agro-technical measures according to the recommendations ofthe agricultural service and/or according to regulations issued by thecompetent people's committee of the commune or the district on the basisof the law on the utilization of land.

3. To conmlv with the nrovi_sions of Section 2 above the producershall use the following:

S E E D-I qu_aiy ner __ _-_

Sort of Seed Cadastral Unit Total Price per kg. | Total ValueI 1-kg Tg. Dirnas DInarshi

_ _ I _I _-1._ ,ii l __l

- 2 -

F E R T I L T Z E Rjsuaiitity per -

Sort Cadastral Uniit Total Price per kg. Total Valuekig. kg. I Dinars Dinara

1.7.77K - 7K77_ 111111]=I __ T I 1 r

INSECTICDES AND PLANT SPRAYS

I L__,.I __,_ I _ _O T (¶1Mrr1' fnt ?1ftMI'1r A1,T?fr%A T 1.TrTPII)T."1Jr7 A71Y TV?kr%MTr1 (V' 14An UTITtDV

S.U" VI OF W rALZ%K'-tUr4.LjxtJl.Jl Aaunin £'!L1±J ±± "il> d -- L

t ste6 t PriceIl per ,Total Valueof Servic:e Quantity ULit of Wtork of Service

1-_-I ~ ~~~~~~~~~~~~~~~~~~~ -1L _ _ TOTA _

L4 J.Ut1 UU aEwu.LUuraj. v LZJM.Od.IALt W4 f L.VICDZO UV tiU.Lt diiU biLUppj.y .1IA

due time to the producer, either in the form of an advance or agaiast pay-mient inr casl, the fol-owing: seeds, fertiiers, services of m -eca icalworkshops and leading of machinezy, insecticides and plant sprays,stipulated Ln tne present contract.

The total amount of the advance may reach the following per-centages of the total value of contracted production: up to 70 per centin the case of wheat; up to 60 per cent in the case of maize; and up to30 per cent in the case of livestock and livestock products.

5. The producer authorizes the agricultural organization to insurethe contracted production, as stipulated in Section 1 of the present con--tract, against hail damage at the State Insurance Institute (DOZ) at thepremium rate of .... per cent.

All rights and obligations on the basis of the contract ensuingfrom the preceding paragraph are assumed by the agricultural organization.

The Droducer is obliged to reuort to the aigricultural organiza-tion within 24 hours any damage that may arise as a consequence of hail.

The agricultural organization is obliged to include in its finalsettlement with the prOdnuer all the eventual navments made to it by theDOZ in respect of hail damage.

6. The agricultural organization is obliged to extend help to thenrnArin_wnj wb4;>h ho nomc>n 4ni +.Hm f;oIA mf' rvrrf'aQai;%n_q nlrrno nnrl t.n advp

all the instructions and suggestions how to solve problems in order toachieve the highest pvssible yielAs.

7. Ir. -the f.LJaLO.L Q leL lth LVlo. .procedure A...l. be f%,ll

lowed in connection with the recognitsion of the advance made to him:

For the seeds Dinars.For fter rs.L , UIectcide d.L±c jJ.. .i s . .

For the services of mechanical workshops and.LeZ.dUIg of. 1[i chL.Lery !

For the advance made in cash ".,

Total Dinars ..........

A)n this sum, .... per cent of interest will becharged for the period over which the credit hadbeen granted, and to it will be added the amount of:

Insurance premia Dinars ...The expenses in connection with professional

services of agricultural experts Dinars ..

GRAND TOTAL Dinars ..........

8. The producer undertakes to deliver on the basis of the receivedadvance, and the agricultural organization to take over the followingquantities ,and kinds of cereals or livestock products:

I Minimum Guaranteed J TotalKind of Cereal or Quantity Price Value Date ofLivestock Product in kg[ in Dinars per kg I in Dinars Delivery

9. In case the producer fulfills the delivery of contracted productswithin the time stated in the contract, and does not settle the advancereceived by him. he will be obliged to pay to the agricultural organiza-tion the amount of the said advance plus 12 per cent interest and in addi-tion to this a sum in respect of the restitution of damages for lostprofits. The amount of interest and damages is calculated after the ex-niration of the terms set for the final settlpment-

10. The agreed price of crops and livestock products which con-stitute the object of sale and/or purchase under this contract is under-stood to be for delivery at the storehouse of the agricultural organi-zation or mill, railway, truck or barge. The agricultural organizationcarries out the taking over of goods on the basis of the followingcriteria:

For wheat: weight: 76 kg per hectoliter with 2 per centof various impurities and 13 per centmoisture content.

For maize in grains: lh ner cent moisture content and up to2 per cent of defective grains.

For maize in ears: without defective ears, ripe, sound,11 per cent of moisture content.

For any higher content of imnprities, defets or mristurp_ theagricliltural organization shall deduct 1 kg. 'er 100 kg. of cerealsdelivered by the producer. In cases when the weigh+. per hectoliter ofcereals is more or less than mentioned above, the price is increasedor reducedby hr n K ape cet,

For all ki,nds of impurities appearing to a more marked degree,as well as for smeared and smudged grains, us to 5 per cent of the con-t|r avt-- pri cew 4 WL.Ln - A -4-4-A

t If the -wheat UUMorLtaln 2 per cent~1L rlore rao'stu-e thn-u- is stipu-

lated in the contract, the agricultural organization is not obliged totake over thre wheat from the producer. Brokenl grains of size less thanone-half of the normal grain, will be considered as defective.

In the case of maize, if the percentage of defective grains ishighn 2 to 5 per cent will be deducted in the proportion 1:1; if thepercentage of defective grains is above 5 per cent, the deduction willbe contracted by mutual agreeiaent.

The price of maize in grains or in ears, temporarily dry, iscalculated on the basis of a special table attached to the Instructionfor the conclusion of contracts for the production of spring crops in1960; at the time of conclusion of the contract, every producer isacquainted with this table in order to be able to choose freely thedate of delivery. The agreed upon and fixed date of delivery and thecorresponding price are inserted in the contract (Section 8, the table).

If the producer has to settle the advance received by him bythe delivery of livestock or livestock products, the qualitative andquantitative taking over and settlement are carried out by a specialcommission according to the usages in force on the day of delivery.

Insofar as the regulations issued by competent authorities(laws, decrees, orders and decisions) regulate the elements oI thiscontract in a different way, the contract will have to be subsequentlyadjusted to comoly with these provisions.

12. In the case of a dispute arising from this contract thedistrict court in ......... is recognized as competent for its settlement.

13. This contract is drawn up in three identical copies, one ofwhich remains with the producer and two with the agricultural organiza-tion.

14. The contract becomes valid on the day when it is signed.

For the General AgriculturalCooperative: Producer:

(Seal and Signature) (Signature and number ofidentification card)

\ A a s r P / A g s 1KW r H U A( G A R Y

0. -- OV :E N I A 3C8rLE ;_. LJELJANi \ _ Sur lS

? 9ERFAX,;t~~~-E \'},AL S\ R U A Az IV A

< ; \ S 0 ea/r tT C T IoRv 'IJEKA---..........,-.,-,

AGRICULTURAL~~~~~~~~~SEE PROUC 4 -Am- t Sr*r.s ^Am4

i~~~~~~~~~L CI cgiulue cireq Luko.i'f .tJ/^ :

IJ~~~~~~~~~~~~~~~~ ~~~~~~~~~ voley cdctn only liie il rppouto.2 a c v ac.,i

JULY ~~~~~~~~~~~.c SHE0 IBR 71