Yugoslavia - The economy (Vol. 3 of 5) : Agriculture in Yugoslavia

R E S T R I C T E D Annex II EAI 12 Vol. 3 1 - 1~~~~~~~~~~~~~~~~~~ This report was prepared for use within the Bank. It may not be published nur may it 'u quu?eu as represenTing te Bank's views. hine oanK accepts no responsibility for the accuracy or completeness of the contents of the report. Tb r ILDI nT A P T 1T(kT A T D A TXT V VnD D LT2'Cn XTQPTD TT C rTnXT A XTT T- L T, 1 I T n D T#T4 VkTrT I JL:1 C% I'M rF L'4t1Li Ai EX L A .'.JL% 1XL Li.4-.JLqI VJ.XL JL.%.L1IV xi E1L- A.. L.a jV L, J iV L A 1 I A A At ('DTf'TTT 'T'TTD r' IN YUGOSLAVIA January 19, 1961  C 0 N T E N T S Chapter Page To. I - The Place of Agriculture in the Economy 1 Stagnation in-Agriculture 1 The Search for a Remedy 1 Population 2 II - Regional Characteristics and Uses 2 Climate 2 The Plains 3 The Hills 3 The Mountains 3 The M4editerranean Littoral L The Sub-tropical III - The Current Organization of Agricultural Production 4 The Federal Rermublic 1e4 The Peoplets Republic The District 5 The Commune 6 land Teniiur 6 The Socialist Sector 6 Sqt-q+tp wFqrM.Z 6 Organization 6 Branches Functions 7 Agri+Vual4. Vjoel 4ve 0 Peasant Work Co-operatives 8 General Agricult-ural Co-operatives 9 Functions 9 Scope 10 Specialized Co-operatives 10 The Private Sector 10 mT_ Area and 'Product-ion 1 L1%AQU V IUUU jU-LUI Changes in Land Use 12 Ihe Croppirng Pattern 12 Cereals 12 Area 12 Production 12 Comnrent 13 Industrial Crops 13 Area 13 Production 14 Fodder Crops 14 Area Production 1  -2 - Contents - Chapter r NO V - Fruits and Vegetables 14 Fruit lb Exports Viniculture 15 Future Plans Vegetables 16 VI - Livestock 16 Policy 17 Animal Health 17 Socialist Sector 171 Exports 18 Comment 18 VTT Forestry 19 Forest Reserves 19 Exploitation 19 Education and Training 19 Future Policy 19 VIII - Prices and Marketing 20 Prices t0 Guaranteed Prices c0 Agreed Prices 20 Subsidies -0 Marketing 20 TX- Iand Devel-rnment 21 The Danube-Tisa-Danube Project 21 nCh irn+.ive 2 1 Cost and its Distribution 22 Progress 22 The Macedonia Projects 23 Projects 23 Distribution of cost 2: Completion Program 24. Ex-ected Resuls+ 24 The Kosova-Metohija Project 24 Nature 2Lh Cost 21K SLcd IT,a - VU,-s2 Expected Results 25 Project-s uder -ozieagn2 Y T- ,nd TAxatin 26 VX01 - --A -,---4. The 5-Year Plan 1957-1961 26 Thle Target 2 Socialist Sector the Focal Point 27 Provisions Investments 27 Public 27 Private 283  Contents 3- UU4 _ _U~' UIJaPT, er Improved Seed 28 Tractors and Pichinery 28 Fertilizers 29 Storage 29 Working Credit 30 Achievements 30 Comments 31 Contrast between Sectors in Agriculture 32. The 5-Year Plan 1961-1965 32 Principle of the Plan 3c. Targets 33 Livestock Sector 33 Animal Population 31 Heat 3, Processing and Export 31 Production by Sector 35' Socialist Sector 35 Private Sector 35 Provisions envisaged for the Plan 36, Supplies 36 Investments 36 Comments 3'7 Special Requirements for the Plan 3'7 Harvesting Machinerv 3'7 Food Processing Plant 37 Livestock Feed Processing Plant 37 Technical Personnel 38 Disposal nf Prodie 313 Attainment 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 position in Yugoslavia. Until the rapid development of iLd-ust-y following W1iorld War 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 in that about half the population still finds employment in it and about 30% of the total national income is derived from it. In 1958 it contributed 606 billion dinars (33.1%) out of the total of 1,832 billion. According to estimates its contribution in 1959 was 660 billion dinars (29.80) out of a total of 2,331 billions. Stagnation in Agriculture Before the Second World War, the agriculture of Yugoslavia wras extremely backward. Modern methods and techniques were unutilized: modern machinery found almost no place in agricultural production and the wooden plough was still in use. Yields per hectare of crops and livestock were amongst 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 a serious fall in agricultural production: livestock numbers suffered a heavy reduction. From being an exporter, Yugoslavia became a heavy net importer 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 was able 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 nroducatior by some 50%. This was attempted initially by establishing more large state farms and large collective farms iiuu1ly from land that had been expropriated under the land reforms of 1946. These collectives had elements of the Riissian, ssvtem hut werre not exact. copi These measures, however, brought little iTmprovement. Modern techniques in production were little applied: fertilizer use was negli- changed: the agricultural stagnation of the earlier years continued. It was 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 to prLovinde not orA,',1y r Jncentiv bt44 -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 were CUU1UO.- llu P.L. LeLe j.:, LA bLC LV .A.L I