Yugoslavia - Current economic position and prospects (Vol. 2 of 3) : Annexes 1 & 2 : Agricultural situation and prospects, and industry

17 RESTRICTED rlJRn ToITLr Report No. EA- 162a RC PC)R- r3 r FILE COPY ONE We This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION CURRENT ECONOMIC POSITION AND PROSPECTS OF YUGOSLAVIA (in two volumes) VOLUME II ANNEX I: AGRICULTURAL SITUATION AND PROSPECTS ANNEX II: INDUSTRY September 8, 1966 RETURN TO ARCHIVES IN MC C3-120 ISN #______o _ _ACC#3 Europe and Middle East Department BOX # I;;)AC i) 3 NUS LOCATION tO l~~~~~~~~~~~~~~~~~~~~~  CURRENCY EQUIVALENTS U.S. $1.00 = 12. 50 dinars 1 dinar = U.S. $0. 08 (All figures are in new dinars)  TABLE OF CONTENTS ANNEX I - AGRICULTURAL SITUATION AND PROSPECTS ANNEX II - INDUSTRY This report is based on the findings of a mission to Yugoslavia in Narch/April 1966 composed of Mr. N.A. Sarma (Bank),Professor Joel Dirlam (Consultant), Claude Mouton (Consultant), Claude Hubert (Consultant), and J.A. Simmons (Bank).  ANNEX I AGRICULTURAL SITUATION AND PROSPECTS Page No. Introduction 1 1 Structure and Organization 1 1 The GrowJth of Output 3 Investment and Other Aspects of Agricultural Policy 6 The 1966-70 Development Plan for Agriculture 7 Conclusion Statistical Tables: 1 - 21.  AINF,X I AGRICULTURAL SITUATION AND PROSPECTS Introduction 1. In the period between the two wTars agriculture was the largest sector in the economy. Even with the rapid development of industry follow- ing WTorld War II, agriculture continues to contribute a substantial share, about 25 per cent of total gross product. The contribution of private agriculture is about 75 per cent of agricultural output or 20 per cent of national product. 2. Yugoslavia is predominantly a mountainous country where the 1/ share of plains and river valleys is about 25 per cent of the total area.- About three-fifths of the country is agricultural land while a third is covered by forests. Of the agricultural land two-thirds is arable and the rest permanent pastures. The soils in Yugoslavia, particularly in Vojvodina and some of the northern regions of Croatia, are more fertile than in other Southern Eropean countries. The climate is mainly continental, with warm summers, cold winters and a lack of rain in the summer. A Mediterranean climate prevails only on the Afdriatic coast and in the south of Macedonia. 3. The fertile plains of Vojvodina and Slavonia in the north-east represent only one-sixth of the country's total area but contain nearly a third of arable land and produce more than half the country's output of wheat and maize and over three-quarters of its sugarbeet. The hills (land up to 500 meters in altitude) covering much of Serbia, Slovania and Bosnia are important in livestock raising and fruit production, while cereals are grown in river valleys. The mountain region covering 44 per cent of the country is generally unfavorable for crop production, but extensive up- land pastures make possible livestock raising, which alone in this region provides some surplus for the market. 4. After World k4r II agriculture started from a low technical level. Yields were among the lowest in Europe before 1940. Moreover, agriculture suffered material damage during the war. To try to solve the agricultural problem, as part of the growth of the whole economy, the government decided on a policy of applying modern technology and mechani- zation in large, socially-oTpmed, farms. WAhile this objective has been pursued since the war, since 1953 no compulsory measures have been employed in transforming privately-oTwned farms into collective organizations. Structure and Organization 5. Yugoslav agriculture may be divided into two parts: the social sector and the private sector. The social sector comprises two different 1/ For a detailed description see the report of the IBRD, "Agriculture in Yugoslavia 1961".  -2- categories of units: a) social estates, social farms, agro-industrial enterprises, and peasants' working cooperatives, making up the social sector in the strict sense; and b) general cooperatives. The first category occupies about 90 per cent of the total arable land area of the social sector and consists of autonomous economic enterprises, working with socially-owned means of production and on socially-owned land. These enterprises are organized on the same lines as economic enterprises in other sectors: workers elect members of a workers' council on the basis of competition. "Estates" engage in various kinds of agri- cultural production, while "farms" specialize in livestock breeding. Agro- industrial enterprises combine agricultural activities and the production of processed foodstuffs. The latter sometimes have their own retail mar- keting system, with stores in the cities. For several years, there has been a trend to increase the size of holdings, and to decrease the number of enterprises, particularly through the purchase of arable land. 1/ An increasing number of agreements and contracts for business and technical cooperation have been concluded by enterprises in various sectors (agri- culture, industry, marketing), resulting in a degree of vertical integra- tion. 6. The general cooperatives have become increasingly important in recent years. They are not cooperatives as defined in Wiestern terminology, but rather enterprises whose purpose is to coordinate the production of many small units. The management of a general cooperative is essentially in the hands of its workers. The participation of farmers in the workers' council of a general cooperative is limited by the fact that membership is restricted to farmers who conduct a minimum amount of business with the cooperative and who pay registration and membership fees. Many co- operatives have some land of their own which is used largely for experi- mentation and demonstration purposes. Some general cooperatives offer interesting cases of vertical integration: the small farms specialize in the production of meat (poultry and pigs) and eggs, their cereal and sun- flower requirements being supplied by the larger farms working in associa- tion with the same cooperative. At the present time, general cooperatives represent the main source from which private farmers may obtain, on a con- tractual basis, machinery, credit and technical services. 7. The private sector proper is the backward part of Yugoslav agriculture, with a large degree of self-sufficiency for output and inputs. It obtains to a greater extent in the less developed and mountainous re- gions. The private sector is composed of owmer farmers who held 72 per cent of the total agricultural area. According to the last census (1960), 1/ There has been a free market of land since 1953.  there were about 2.6 million private farms, of an average size of 4.2 hectares. In 1953, the maximum area of a private holding was reduced by law to its present size of 10 ha. of arable land. Private holdings are not only small, but often are also fragmented. Table 1. Structure of Private Holdings Blumber of Holdings Area in 000 ha. 1956 1960 160 2,319,709 2,618,103 10,921 11.108 Total private holdings (100) (113) (100) (101.7) Structure in (0-2 ha 30 35 7 8 Per cent of (2-5 ha 40 36 31 29 Total .. (5-8 ha 16 16 23 24 (8-10 ha 14 13 39 39 The Growth of Output 8. From the end of lWorld T'ar II until 1955, agricultural develop- ment was slow, output levels for some items being lower than in the pre- war period. Since then, as a result of higher investments, production increased, mainly in the social sector, which received the largest part of new inputs (tractors, mineral fertilizers, protein feeds, high-yielding seeds). However, yields still depend largely on climatic conditions, as in 1959 which was a very good year and in 1961 and 1965 which were rela- tively poor years. Production trends are shown in table 2 and 3: Table 2. Production of Some Commodities Average Production in 000 tons Commodity 1930/39 1942/53 1953/55 1963/65 Wheat and rye 2,646 2,336 2,362 3,729 Mlaize 4,284 3,371 3,581 6,236 Sugarbeet 616 1,248 1,381 2,707 Sunflower ^ 106 U3 252 Potatoes 1,648 1,643 2,017 2,740 Heat 399 357 422 668  Table 3. Indices of Agricultural Production 1960 = 100 1961 1962 1963 1964 1965 Agriculture (total 97 100 111 117 108 Social sector 101 123 142 164 170 Private farms 96 97 106 110 100 9. The stage of development of Yugoslav agriculture would appear to be between that of Northwestern Europe and that of Southern Europe. Table 4 gives a comparison of yields of maize and wheat for Yugoslavia and some WJestern European countries, and it is apparent that the yields in agricul- tural estates and even in the cooperative sector are quite high in compari- son with yields in these countries. 10. Yugoslavia is self sufficient in cheese, milk, potatoes and vegetables; is deficient in wheat, sugar, butter and fats and oils; has surpluses in coarse grains (mainly maize), meat (cattle and pigs), fish and fruit (prunes). While agricultural exports represent a decreasing share in the value of total exports (23 per cent in 1961 and 17 per cent in 1965), the share of agricultural products in total imports has been stable (about 15 per cent). 11. Meat is the most important item of exports, and wheat of imports,and in trade with the convertible currency areas, these items together with maize are the main commodities. 12. Yugoslavia imports every year a large quantity of wheat; in 1965 wheat imports amounted to 1.2 million tons, valued at $86 million. While total per capita cereal consumption has remained stable, there has been a switch in consumption from maize to wheat. There has also been an increase in the use of wheat for feed; while only 4 per cent of output was used for this purpose in 1953-55, in 1964 it was 9 per cent. Consumption of wheat has thus risen, but production particularly in the private sector has re- mained at low levels. 13. Maize has always been the principal cereal crop in Yugoslavia. Before the last war, it was the staple bread cereal of the country. Now, despite the change in diet, and a small decrease in area under maize, pro- duction is about 50 per cent higher than before the war. It is used for livestock feed, for domestic consumption, and for export. Exports were substantial in 1961, but have since fluctuated at much lower levels, vary- ing with the crop. There has been a large increase in the yield, mainly in the social sector but also in that part of the private sector which is in cooperation with the social sector. 14. Large regions are well suited to livestock raising. For several years, there has been a considerable development of pigs and baby beef production, mainly for export. The value of meat exports rose from $92  Table 4b. Wheat and Maize Yields in Yugoslavia and Selected Countries (quintals per hectare) Y U G 0 S L A V I A ITALY FRANCE NETHERLANDS SWITZERLAND GEPRMNY Agricultural P r i v a t e f a r m s (F.R.) Estates in cooperation: without cooperation n,~at 1959 39.4 29.4 16.1 18.2 26.0 41.0 30.9 33.7 L960 32.8 23.8 14.3 14.9 25.2 46.6 34.7 35.6 1961 32.6 21.3 12.9 19.1 23.9 39.3 26.9 28.9 1962 32.0 18.4 13.2 20.8 30.7 45.5 37.9 34.8 1963 34.2 21.3 14.6 18.5 26.6 42.0 28.4 35.1 _Jp64 27.0 19.4 14.4 1965 34.0 29.3 15.8 Maize 1959 50.3 37.2 23.1 32.5 25.9 23.4 42.6 27.8 1960 46.1 34.1 21.0 32.1 34.0 38.1 32.6 31.3 1961 38.7 24,3 15.9 32.9 25.3 39.0 4700 30.7 1-962 44.9 30.3 18.2 29.2.1 21.5 38.0 45.4 33.6 1963 45.8 31.3 17.3 33.2 39.4 42.6 48.8 36.4 1964 54.1 41.7 22.2 1965 49.1 34.2 16.9 Source: OECD Statistical Yearbook (except for Yugoslavia).  - 6 - million in 1961 to $166 million in 1965, comprising mainly beef and veal, pork, and canned meat. A large part was exported to Western Europe, mainly to Italy and the United Kingdom. Yugoslav meat production is based on the introduction of well-known breeds from foreign countries and also on a policy of high quality for pigs and baby beef. Investment and Other Aspects of Agricultural Policy 15. Since 1950, there have been some changes in both investment levels as well as in the emphasis on particular categories of investment from time to time. By and large, total investment in agriculture has been relatively low and has been mostly concentrated on development of social farms with particular stress on equipment. The main results of the policy in 1961-65 are: wider use of improved seed, more tractors and machines of all kinds (from 36,000 tractors in 1960 to 45,000 in 1965, and from 3,000 combines in 1960 to 10,500 in 1965), and a doubling of fertilizer use to 2 million tons in 1965. The increase of areas under irrigation and drainage was relatively small. There was also a substantial increase in short-term credit facilities for agriculture. 16. Price policy aspects of the economic reform have been discussed in the main report, where reference was made to the correction of the dis- tortions between agricultural and industrial prices. Agricultural and other producers of raw materials benefited from the reform mainly as a result of the increase in prices. Before 1960, the prices of many agri- cultural commodities were at a very low level (30-40 per cent below world prices). From 1963, the price levels increased sharply. Producers' prices in 196h/65, before the reform, were close to the world level. The reform, by increasing internal price levels and devaluing the dinar, did not have any further net effect on the level of agricultural prices in re- lation to the world market. 17. Prices for some commodities - cereals, meat, industrial crops - are guaranteed. The guaranteed levels are very close to present world prices in the case of wheat, maize and meat. The prices of industrial in- puts are not subsidized except for fertilizers (36 per cent of factory or import price) and animal protein feeds which must be imported. 18. The price changes of recent years have been very favorable to agricultural producers, and it is reasonable to expect that the correction of price distortions between agricultural and industrial goods provides an incentive both for increasing agricultural production and for marketing a larger share of production, both in the social sector and on private farms. Another consequence of the increase in agricultural prices is a decrease in the burden of direct tax on (private) agriculture. It is also reasonable to expect, for the social sector, a more economical choice of investments and production patterns and more effective management, and for the private sector, a larger degree of cooperation with the social sector. At the same time, it is necessary that part of the increase in income should be saved and invested in expanding production. The new banking system should institute a specific organization to channel agri- cultural savings to provide loans to private farmers and to small enter- prises in the social sector.  19. The other main aspects of Yugoslav agricultural policy are: a) to promote cooperation, particularly through the general cooperatives, be- tween the social sector and the private sector; b) to develop further the socialist holdings as highly productive farm organizations. Efforts are now being made to "disengage" agricultural organizations from government controls as much as possible. There will be competition between the social holdings and private farms - all will buy on the same conditions the main inputs and sell their output in the same markets. Moreover, private farmers may now buy small tractors, which they were not allowed to do before. It would appear that the role of general cooperatives must be enlarged in the next several years; the present structure of the marketing system and the lowi level of management of private farms do not allow total autonomy in the field of private farming. Through contract farming (with general co- operatives, or combines) it would seem possible to increase the marketed production of the private sector, provided that specific inputs such as fertilizers, improved seeds, tractors and credits are made available. The 1966-70 Development Plan for Agriculture 20. In the 1966-70 Plan period, total agricultural production is to increase, as compared to the average for 1964 and 1965, by 25.5 per cent (by 4.6 per cent annually). Output in different sectors is projected to increase as follows: on social holdings by 11.1 per cent annually; on those private farms cooperating mith the social sector by 14 per cent annually, and on other private farms by 3 per cent annually. Of the pro- jected increase in total agricultural output, roughly one-half is expected to result from greater use of chemical fertilizers, of which consumption is estimated to double to reach 4 million tons by 1970. The share of the active population in agriculture will decrease from 54.1 per cent in 1965 to 49.5 per cent in 1970. Average yields are expected to rise from 19 quintals per hectare to 24 quintals for wheat, and from 26 quintals to 32 quintals for maize. (See Table 5). 21. At the end of the Plan period, the contribution of agriculture to the balance of trade is expected to be as follows: self-sufficiency in wheat, and, for other commodities, exports as shown in Table 6. 22. As noted in the main report, there is to be a rise in the pro- portion of total investment devoted to agriculture. Within the total for agriculture itself, priority is to be given to quick-yielding investments, particularly in equipment and fertilizers. The number of tractors is pro- jected to increase from 45,000 in 1965 to 60,000 in 1970, and, as already mentioned, the consumption of chemical fertilizers is expected to double. Investments for small irrigation and reclamation schemes will be greater in the next period than in recent years, but investments in large reclama- tion projects (including irrigation) will decrease. However, the Danube- Tisa-Danube channel will be completed by 1970 adding about 50,000 ha. of irrigated land and some irrigation projects will also be carried out in Macedonia. Floods and the high level of underground water in Vojvodina and Slavonia wqill continue to be a problem, and it is intended to provide funds for longer-term planning in irrigation and reclamation.  - 8 - Table 5. Targets of Production for the Main Commodities 1964/65 1970 Production Production Production Index (OOOt) (ooot) 1964/65 = 100 Wheat 3,580 4,600 125 Maize 6,1440 8,000 125 Cereals, total 11,175 13,900 125 Sunflower 263 400 150 Grapes 1,185 1,220 103 Fruits 1/ 1,025 1,700 165 Vegetables 1,918 2,650 140 Meat 2/ 698 965 140 Beef and veal 385 515 140 Pigs 3/ 615 850 140 Sheep 3/ 85 100 120 Milk (million liters) 2,334 4/ 3,160 135 Eggs (million) 1,736 V/ 2,440 140 1/ Average production 1959-65 is 1,300 t. 2/ Carcass weight. 3/ Live weight, and estimates 1965. 1TI 1964 only. Table 6. Export Projections in 1970 (in 000 tons) Agricultural Products Products of Processing Industry Maize 700 (48) 1/ Tobacco 35 (22) Hops 6 (4.9) Fish (processed) 30 (19) Fresh fruits 54 (35) Canned meat 40 (37) Grapes 25 (15) Smoked meat products Prunes 25 (13) and bacon 10 (3) Vine 65 (41) Meat 2/ 228 (172) 1/ Exports of maize fluctuated widely; they were as high as 376 in 1961 and as low as 18 in 1964. 2/ Meat includes also processed meat (carcass weight). Figures in ( ) are for 1965.  - 9 - 23. The value of total investments in agriculture is estimated to increase from Din. 11.4 billion in 1961-65 to Din. 16.8 billion in 1966-70, an increase of 50 per cent. The share of the private sector would increase from h0 per cent to h5 per cent. For 1966-70 the amount of fixed asset formation in the private sector (Din. 7.6 billion) will be higher than that in the social sector in 1961-65 (Din. 6.7 billion). These are rough estimates of the likely direct (gross) investments in fixed assets. There will also be sizeable indirect investments for agriculture, through the fertilizer industry, the agricultural equipment industry, storage and refrigeration installations, and secondary roads, in which investments are expected to rise from Din. 2.6 billion in 1961-6E to Din. 3 billion in 1966-70. Conclusion 2h. Agricultural development will depend mainly on using a larger quantity of industrial inputs - fertilizers, improved seeds, and tractors and combines, as there is little scope for increasing the area under cultivation, and manpower in agriculture is expected to be almost the same in 1970 as at present. The comparative figures of yields in the social and private sectors show a large potential for increasing yields, particularly in the private sector and especially for wheat and maize, and it appears that substantial progress in increasing output could result fran allocating more resources to the private sector and relatively less to the social sector. 25. Some enlargement of the areas to be cultivated through the social sector is projected and a greater role for the general cooperatives would seem to be an effective way to achieve this. The system of con- tracts between the general cooperatives and the private sector can give to private farmers the possibility of buying needed inputs and provide for better management through the extension service. Institutional arrange- ments for mobilizing and investing farmers' savings and also for giving them the necessary credit either through the commercial banks or through agricultural cooperatives would be required if the gains to agriculture from the economic reform are to be consolidated and become a basis for further development. 26. While the 1970 production and export targets for agriculture appear rather ambitious, if appropriate measures are taken and given average seasons, the production targets for cereals seem feasible. Export possibilities, notably for meat and maize, will depend largely on policies of the E.E.C.. The production targets for meat and fruit may be harder to reach. Much of the increase in livestock production, mainly for the export of meat, has originated on the farms of the social sector, but with less than 9 per cent of all cattle and 15.5 per cent of pigs the share of the social sector is too small to expect any quick or large increases in the next few years. Moreover, livestock raising and its further improvement face certain difficulties; lack of refrigerated storage, in particular for the meat-packing industry; the unsatisfactory situation of some slaughter-houses; and the large deficit in animal protein feeds. To achieve the planned increase it would also be necessary  - 10 - to improve selective breeding to obtain on a large scale the calves for the production of baby beef. 27. The expansion of fruit production and exports also raises com- plex problems of irrigation, processing industries, refrigerated storage and transportation. Taking into account the competition in Western European markets, and the rather unfavorable climate in Yugoslavia com- pared to other producing countries, the increasing production of fruits and vegetables would be more appropriate for internal needs and for export to Eastern European countries. 28. If the 1970 targets are to be achieved, investment in the food- processing industry, mainly in enterprises of packing meat for export and processing vegetables and fruit, must get a high priority. As the new price structure associated with the economic reform has drastically reduced profits in food-processing and the capacity of the industry to finance its om investment, credit will be needed. There is a clear need also to increase storage capacity, particularly cold storage, which with the lack of refrigerated railroad cars and trucks appears to be a bottle- neck to further development. The poor state of rural roads and the resulting high costs of transport constitute another impediment to development. 29. While there are obvious difficulties in achieving the agri- cultural targets of the Plan, some could be overcome quite quickly. There are also favorable factors, not least of which are the stimulus pro- vided by the increases in agricultural prices and the emphasis to be given to quick-yielding investments, enlarged credit, and technical services to farmers over the next five years. A more precise formulation of these policies and a definitive allocation of the requisite resources would help to consolidate the gains flowing from the economic reform and help forward the production and export goals of the 1966-70 Plan.  STATISTICAL APPENDIX Table No. 1 Land Tenure in 1963 2 Structure of Production and Sales, 1965 3 Some Basic Agricultural Data in 1963-1964 4 Production of Major Agricultural Commodities 5 Agriculture - Area Harvested 6 Yield per Hectare of Major Crops 7 Yields per Hectare in Social and Private Holdings 8 Structure of Cereal Production 1963 and 1964 9 Production of Principal Fruits 10 Number of Heads, Livestock 11 Cattle Breeding in Yugoslavia, Social Sector 1960-1966 12 Supply of Meat and Animal Fats 13 Food Consumption Levele 14 Domestic Production as per cent of Total Availability 15 Consumption of Main Foodstuffs 16 Index of Prices in Yugoslavia (1963 = 100) 17 Prices of Agricultural Products in Yugoslavia and some Selected Countries 18 Agricultural Machinery and Implements 19 Manufactured Fertilizers Available 20 Investments in Agriculture (Social Sector) by Main Components and Sources of Financing 1961-1964 21 Investments Planned for 1966-1970.  Table 1: LAND TENURE IN 1963 Number of Area in thou- holdings sands of hectares Total 2,621,259 13,536 General social holdings 3,156 2,428 - State agricultural farms 348 1,096 - Peasantso work-cooperatives 39 55 - Other agricultural institutions 331 378 - Other cooperatives 2,438 899 Private holdings 2,618,103e 11,108 Up to 2 hectares 915,811 894 From 2 to 3 hectares 392,820 985 From 3 to 5 hectares 558,294 2,206 From 5 to 8 hectares 421,947 2,659 Over 8 hectares 329,231 4,365 Source: Statisticki godisnjak, 1965  Table2: STRUCTURE OF PRODUCTION AND SALES, 1965 (in per cent) Social holdings Private holdings Private holdings,out- in cooperation- side of cooperation with social sector with social sector Wheat and rye Production 26 25 49 Sales 74 19 7 Maize Production 15 34 51 Sales 36 31 33 Sugarbeet Production 67 33 - Sales 78 22 - Fattened cattle Sales 45 42 13 Fattened pigs Sales 35 54 11 Milk Production 18 82 Source: Agricultural Yearbook of Yugoslavia  Table 3: SOME BASIC AGRICULTURAL DATA IN 1963-1964 Bosnia M Serbia Total Herze- Croatia Macedonia Slovenia Total Vojvodina A ricultural Area (000 ha) 14900 2620 587 3430 1420 911 5890 1830 of total (100.0) (17.7) (3.9) (23.1) (9.6) (6.1) (39.6) (12.3) Social Sector 16.2 7.3 2.9 10.7 31.8 12.1 21.6 39.5 (% Agricultural Area) Arable land (000 ha) 7650 1200 66 1690 623 299 3880 1580 % of total (100.0) (15.3) (0.6) (22.0) (8.0) (3.4) (50.7) (20.7) Social Sector (% Arable land) 14.0 5.1 6.3 13.9 16.3 8.8 16.6 30.8 Social holdings (number) 2729 312 67 606 414 163 1167 398 % of total (100.0) (11.5) (2.5) (22.3) (15.3) (5.6) (42.8) (14.6) Fertilizers (000 t) 1904 108.5 8.4 452.5 65.9 127.1 1141.6 704.6 % of total (100.0) (5.7) (0.4) (23.8) (3.5) (6.7) (59.9) (37.0) Social sector (% Fertilizers) 56.3 45.8 63.1 23.8 64.7 67.5 55.6 64.7 Tractors 43264 2464 312 9193 3437 2418 25440 16120 % of total (100.0) (5.?) (0.7) (21.3) (7.9) (5.6) (58.8) (37.3) Social sector (% tractors) 93.1 97.1 73.1 93.8 82.5 93.5 94.1 95.2  Table 3:(continued) SOME BASIC AC-RICULTURAL DATA IN 1963-1964 Bosnia Herze- Monte- Croatia Mace- Slo- Serbia Total govina negro donia venia Total Vojvo din a Horses (000 head) 1143 208 31 282 89 51 482 243 % of total (100.0) (18.9) (0.3) (25.2) (8.6) (4.9) (42.1) (21.3) Fertilizers 7c-iaI sector 1963 1106 939 916 1469 458 2212 1053 1054 kg/ ha. arable land 1964 1000 800 1269 1242 939 1744 989 936 Private Sector 1963 120 45 50 110 54 279 151 262 kg /ha. arable land 1964 126 52 51 110 76 269 156 227 Yields of wheat Social sector 1963 32,0 29.9 21.0 36.3 17.5 28.0 32.5 33.1 1964 25.7 22.3 22.3 29.7 22.0 30.6 25.0 23.0 Private sector 1963 16.9 14.7 16.9 17.9 11.5 18.5 17.3 19.7 1964 15.8 11.6 17.5 22.7 16.5 25.3 17.1 14.5 Yields of Maize Social sector 1963 42.1 34.2 22.2 50.5 20.2 52.0 40,5 42.6 1964 51.3 40.5 28.3 57.9 26.6 65.5 50o1 51.8 Private sector 1963 20.8 13.6 15.7 22.7 13.9 26.3 21.6 34,1 1964 26.8 15.8 17.0 29.8 16.1 30.8 30.2 45.2 Livestock heads 1/ per 100 ha. of agri- cultural land Social sector 1964 18.9 10.1 19.0 28.6 34.o 68.2 19.4 24.9 Private sector 1964 46.3 49.3 32.2 38.9 37.3 64.0 50.3 46.1 1/ Cattle and horses Source: Agricultural Yearbook of Yugoslavia  Table 4 FRODUCTION OF I4AJOR AGRICULTURAL CON14ODITIES (Thousand metric tons) Commodity 1930-39 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 Cereals I.'heat 2430 1680 2510 1380 2430 1600 3100 2450 4130 3570 3170 3510 4140 3700 3460 Nsaize 4300 1470 3840 3000 3900 3370 5660 3950 6670 6160 4550 5270 5380 6960 5920 Oats 310 216 352 233 278 324 484 259 404 373 432 305 341.5 293 337 Rye 212 225 309 191 263 205 280 241 265 233 191 169 156 175 156 Barley 410 258 458 253 390 344 604 470 575 529 571 475 524 534 682 Fibers lIemp 250 120 220 272 342 220 312 262 241 201 255 278 256 292 306 Flax 54 10 18 14 22 18 22 20 27 22 19 12 13 12 12 Cotton 1 2 3 5 O.' 6 10 7 9 7 6 6 9 7 6 Other industrial crops Sunflouxer 9 51 113 125 102 59 93 80 114 98 117 161 231 260 265 Sugar beet 616 512 1510 1250 1380 1130 2030 1480 2420 2290 1730 1870 2670 2830 2620 Tobacco 15 15 31 32 43 31 '63 39 46 31 15 30 54 66 49 Vegetables Potatoes 1650 1150 2100 1880 2270 2190 3310 2620 2760 3270 2690 2630 3020 2820 2380 Carrots 30 9 10 18 25 24 31, 25 32 n.a. n.a. n.a. n.a. n.a. n.a. Deans 134 50 150 173 227 168 179 119 226 216 184 178 205 233 ZlK Peas 6 4 8 9 11 6 10 5 11 11. 9 12 14 12 1 Cabbage and Kale 243 207 436 319 460 330 553 394 564 628 468 457 523 569 481 Tomatoes 44 85 154 151 101 203 278 243 269 271 272 305 293 302 283 kaelons 167 119 338 275 265 257 438 276 363 355 245 319 407 474 420 Fodder Alfalfa 372 491 939 925 960 750 388 865 1350 1460 1330 1390 1680 1860 1830 Forage beet 468 501 964 965 800 882 1250 1140 1140 1370 1050 950 949 1110 945 Source: 6tatisticki Godisnjak  Table 5 t AGRICULTURE - AREA HARVESTD (Thousand hectares) Corimodity Avee934 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 Cereals l;heat 2128 1840 1890 1850 1goo 1620 1970 1990 2130 2060 1960 2130 2140 2100 1680 liaize 2655 2290 2410 2460 2470 2570 2590 2390 2580 2570 2510 2460 2410 2430 2560 Oats 362 334 339 341 321 373 402 347 338 334 355 310 315 306 320 itye 252 295 298 276 278 252 256 248 236 213 180 177 157 157 146 Barley 4231 317 360 331 338 353 408 390 378 363 371 351 350 369 405 Industrial CroPs Sunflowrer 38 88 93 125 104 73 82 74 86 74 86 97 140 146 159 Sugar Beet 27 76 84 79 70 70 83 71 81 78 8o 75 96 89 80 Hemp fiber 49 46 44 57 62 49 52 52 39 37 44 49 44 45 47 Cotton 3 7 7 12 14 13 13 13 13 12 10 9 10 10 8 Tobacco 1511 29 36 37 42 41 56 53 49 39 31 38 52 65 61 Vegetables Potatoes 200 240 245 256 261 268 285 277 290 288 292 301 321 320 320 Dry Beans 48}M 22 22 25 30 30 32 28 30 31 31 32 36 35 36 Cabbage and Kale 35-' 25 29 27 30 31 32 31 34 36 36 35 37 37 38 Tomnatoes 711 13 14 15 14 19 21 20 21 21 23 25 25 25 26 Fodder Alfalfa 100J 187 211 216 198 169 173 196 235 253 261 271 301 334 346 Forage beet 31I/ 27 31 31 31 31 32 31 33 33 34 34 34 33 35 11 1930 - 1939 Source: Ltatisticki Godisnjak  Table 6. YIELD PER II{EJCTiARE OF r 'JOR CRtOPS (Quintals per hectare) Commodity 1934-382/ 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 lheat 10.8 9.2 13.3 7.5 12.8 9.9 15.8 12.3 19.4 17.3 16.1 16.5 19.3 17.6 20.5 Maize 17.0 6.4 15.9 12.2 15.8 13.1 21.9 16.5 26.8 23.9 18.1 21.5 22.3 28.6 23.1 Oats 8.6 6.5 10.4 6.8 8.7 8.7 12.0 7.5 12.0 11.2 12.2 9.8 10.9 9.6 10.5 Rye 8.1 7.6 10.4 6.9 9.5 8.2 11.0 9.7 11.2 10.9 10.6 9.5 9.9 11.2 10.7 Barley 9.7 8.2 12.7 7.6 11.6 9.7 14.o 12.1 15.2 14.6 15.4 13.5 14.9 14.4 16.8 Soya Beans 10.7 5.6 9.6 10.1 12.1 8.5 13.2 8,6 16.6 12.5 7.7 10.4 13.0 16.7 11.9 Sunflower 15.5 5.8 12.1 10,0 9.9 8.1 11.4 10.8 13.2 13.3 13.7 16.5 16.4 17.8 16.7 Sugar beets 188.0 67.0 180.0 159.0 198.0 163.0 246.0 207.0 297.2 294.0 215.0 251.0 277.0 320.0 329.0 Hemp Fiber 522/ 26.0 50.0 47 0 55.0 45.0 60.0 51.0 62.3 55.0 58.0 57.0 57.0 65.0 67.0 Cotton 2.4 2.5 4.2 4.5 6.4 4.6 7.9 5.q 6.7 6.7 6.o 6.5 8.6 7.6 6.7 Tobacco 9.9?15.2 8.6 8.8 10.4 7.4 11.2 7.4 9.3 8.5 5.7 8.0 10.2 10.1 8.0 Potatoes 602.0 48.0 84.0 72.0 86.0 81.0 115.0 94.0 94.5 112.0 91.0 86.0 93.0 86.0 73.0 Dry Beans!/ 10.,9 3.0 10.1 9.8 11.1 7.4 8.0 6.8 12.3 11.8 9.7 10.0 9.2 11.3 9.1 Cabbage and Kale 692) 68.o 127,0 97.0 132.0 95.0 142.0 108,0 145.0 153,0 113.0 10220 117.0 126.0 105.0 Tomatoes 66.9 65.0 110.0 102.0 72.0 110.0 135.0 121.0 125.0 130.0 121.0 124.0 119.0 125.0 108,0 alfalfa 392/ 26.0 43.0 42.0 47.0 44.0 50.0 43.0 56.0 56.0 49.0 50.0 54.0 54.0 52.0 Forage Beet 14j/ 88.0 166.0 157.0 188.0 153.0 207.0 173.0 209.0 224.0 176.0 161.0 169.0 184.0 163.0 l/ Grown alone 2/ 1930-1939 2/ Average Source: Statisticki Godisnjak  Table 7 s YIELDS PER HECTARE IN SOCIAL AND PRIVATE HOLDINGS (Quintals) 1955 1956 1957 1558 1959 1960 1961 1962 1963 1964 1965 Wheat 12.8 9.9 15.8 12.3 19.4 17.3 16.1 16.5 19.3 17.6 20.5 b 17.6 15.0 22.7 23.1 38.9 30.6 30.5 28.9 32.0 25.7 32.5 c 12.5 9.5 15.2 11.4 16.5 14.4 12.8 14.2 16.9 15.8 18.0 Maize a 15.8 13.1 21.9 16.5 25.8 23.9 18.1 21.5 22.3 28.6 23.1 b 19.9 21.4 36.4 39.2 49.9 45.4 34.8 44,9 142.2 51.3 44.9 c 15.6 12.7 20.8 1l.8 23.2 20.7 15.9 19.7 20.8 26.8 21.3 Sugar beet a 198.0 163.0 246.0 207.0 297.0 294.0 215.0 251.0 277.0 320.0 329.0 b 204.0 173.0 273.0 246.0 329.0 337.0 248.0 298.0 330.0 365.0 379.0 c 199.0 160o0 234*o 188.0 277.0 238.0 189.0 203.0 221.0 258.0 258.0 Sunflower a 9.9 8.1 11G4. 10.8 13.2 13.3 13.7 16.5 16.4 17.8 16.7 b 12.5 9.4 13.5 15.7 15.0 15.9 16.7 21.5 18.9 20.1 19.0 c 9.2 7.9 11.1 10.1 12.9 10.4 9.9 14.5 15.1 16.0 14.1 Milk per a 1,055 1,062 1,103 1,098 1,122 14107 1,063 1,078 1,091 1,176 /1,200/ cow (liters) b 1,867 1,955 2,297 2,386 2,224 2,103 2,064 2,258 2,621 2,815 /3,000/ c 1,032 1,038 1,043 1,050 1,064 1,038 979 980 970 1,046 v a - total b - social holdings c = private holdings Source: Statisticki godisnjak  Table p STRUCTURE OF CERELL PRODUCTION 1963 AND 1964 Bosnia - Serbia Total Bosnia _zlviontenegro Croatia hacedonia Slovenia Herzegov2na Total Vojvodina 1963 1964 1963 1964. 1963 1G64 1963 1964 1963 1964 1963 1964 1963 1964 1963 1964 I 'heat Total Production (ooo tons) 4140 3700 400 319 14 14 915 823 175 264 106 121 2530 2160 1160 731 (percent ) (l00.0)(L00.0) (9.6) (8.6) (0.4) (0.4) 22.1)(20.2) (4.2) (4.1) (2.6) (3.3) 61.1)(58.4) 28.0)(19.8) Social Production as percent of total production 26.8 26.9 12.0 12.3 0.7 1.0 32.5 33.5 28.0 35.6 6.7 11.3 28.1 26.4 45.1 50.6 Y~iaize Total Production (ooo tons) 5380 6960 514 595 26 28 1250 1500 89 98 126 136 3330 4610 2080 2770 (percent ) (o00.0)(o00.0) (9.8) (8.6) (0.5) (0.4) M3.4)(21.5) (1.8) (1.4) (2.6) (2.0) 61.9)(66.2) 38.7)(39,8) Social Production as percent of total production 13.4 13.5 3.6 4.6 0.3 0.3 15.0 15.3 6.5 4.5 4.8 6.7 15,1 14.4 19.8 19.4 Source: agricultural Yearbook of Yugoslavia  Table 9: PRODUCTION OF PRINCIPAL FRUITS (in thousanas of metric tons) Sour Plums Grapes Apples Pears Cherries Walnuts Figs Cherries Olives 1930/39 505 790 141 64 30 35 11 9 33 1948 610 843 230 69 31 25 17 14 25 1949 386 854 171 64 33 29 15 21 48 1950 222 7h9 103 42 28 31 10 16 6 1951 1,163 1,210 180 107 48 34 15 24 32 1952 237 678 164 62 57 32 11 24 25 1953 1,022 847 185 98 50 36 19 23 10 1954 402 586 90 48 33 38 18 13 65 1955 904 1,150 249 56 55 36 21 25 5 1956 180 656 140 40 36 18 25 14 21 1957 588 907 106 60 51 19 21 30 27 1958 544 1,190 306 87 51 36 24 21 20 1959 1,210 954 236 86 61 34 23 32 3 1960 209 732 158 68 44 17 22 25 21 1961 1,130 952 343 93 68 37 28 36 28 1962 874 1,130 177 101 61 41 23 31 18 1963 776 1,220 280 80 59 36 24 32 63 1964 760 1,250 159 96 56 35 24 32 17 Source: Statisticki godisnjak  Table 10: NmUBER OF HEADS, LIVESTOCK (Thousands) Beginning Horses Pigs Cattle 1/ Sheep 2/ Poultry of year 1934-38, average 1,229 3,095 43097 9,529 21,955 1952 1,103 3,999 4,834 10,522 20,440 1953 1,126 4,527 5,007 11,404 19,665 1954 1,193 4,310 5,097 12,112 25,450 1955 1,242 4,780 5,290 11,979 24,837 1956 1,296 4,655 5,206 11,360 25,938 1957 1,307 3,725 4,947 10,622 25,992 1958 1,296 4,243 4,860 10,626 28,508 1959 1,274 5,657 5,038 11,249 27,721 1960 1,272 6,208 5,295 11,460 30,288 1961 1,220 5,804 5,709 10,842 28,885 1962 1,226 5,161 5,884 11,143 28,304 1963 1,175 5,013 5,355 10,055 29,940 1964 1,143 6,106 5,106 9,726 32,514 1965 1,109 6,978 5,219 9,433 31,749 1/ Cattle and calves 2/ Sheep and lanbs Source: Statisticki Godisnjak  Table 1 CATTLE BREEDING IN YUGOSLAVIAt SOCIAL SECTOR 1960-1966. (in thousands of heads) Cattle Pigs Sheep Poultry In cooperation between Coop. farms Year total social total social total social total social i and indiv. holdings holdings holdings holdings holdings 'cattle sheep pig poultry 1960 5,297 398 6,210 539 11,449 502 30,343 575 1 139 19026 124 509 1961 5,702 504 5,818 630 10,823 472 28,878 843 ' 104 780 47 467 1962 5,884 489 5,161 657 11,143 501 28,304 894 ' 144 762 27 426 1963 5,355 456 5,013 711 10,055 499 29,940 1,085 ' 199 958 91 370 1964 5,106 441 6,106 796 9,726 459 32,514 1,658 ' 216 1,679 64 2,365 1965 5,219 453 6,978 945 9,433 456 31,749 2,527 ' ,.. 1966 5,581 479 5,103 708 9,892 459 31,580 3,129 ... ... ... Source: Statisticki godisnjak SFRY 1965. For 1966: Information SZZS br. 46/66.  Table 12: SUPPLY OF SEAT AND ANIMAL FATS (Thousand metric tons) Year Supply of meat Supply of Fats Total Beef Pork Mutton Poultry Other ' Total Pork Beef 1952 303 82 117 48 42 14 65 64 1 1953 378 91 167 52 50 18 74 73 1 1954 401 90 188 54 49 20 111 110 1 1955 454 126 200 54 48 26 t 119 118 1 1956 493 140 210 55 56 21 '117 115 2 1957 493 159 175 56 61 41 132 127 5 1958 498 147 193 48 62 49 ' 138 133 5 1959 575 146 244 63 65 55 ' 179 175 4 1960 635 156 293 64 68 54 ' 192 186 6 1961 644 182 276 54 67 65 ' 175 170 5 1962 651 226 240 58 64 63 170 160 10 1963 648 231 238 48 67 64 ' 165 158 7 1964 687 189 323 42 73 60 , 173 165 8 1965 710 1/ n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1/ Preliminary Source: Statisti6ki godisnjak  Table 13 FOOD CONSUMPTION LEVELS (kg, per capita, per year) 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 Bread grain 133.1 132.7 129.6 132.0 122.4 132.2 130,6 14o,4 148.2 153.4 159,4 159,0 162,5 Coarse grain 59.8 52.2 57.8 50.2 57.3 48,9 50,4 45.9 35.4 26.6 33,2 32,2 31,0 of which,naive58.5 50.14 56.7 148.6 55.8 L46,8 48,6 4.3,2 32.6 23.8 30,6 29,7 28,5 Rice 0.5 o.6 1.0 1.6 2.3 1,5 1,7 2,4 2,14 2.3 2,3 2,4 2,5 Potatoes 60.0 67.9 63.9 60.3 56.6 61,9 65,1 73,4 69,7 67.2 65,0 66.1 65,3 Refined sugar 8.o 8.2 9,2 10.8 11.3 13.1 13,5 14,1 114,9 17,4 16,6 18,2 19,9 Vegetables 30.5 32.6 37.9 38.8 40.3 47.9 50.5 50,4 56,6 54,8 55,0 64,0 61,7 Fresh fruit 35.14 56.3 35.6 56.8 29.5 47,8 145,2 68,6 35,9 46,5 140,0 56,0 56.2 Citrus fruit 0.1 0.2 0.3 0.5 o.6 0,7 1,0 1,4 2,1 2,4 1.3 2.4 3,1 Total meat 1/ 17.7 22.1 22.0 23.5 24,2 22,8 23,7 26,2 29,7 27,8 26,5 25,1 27,0 Beef and vealV Y4 .8 5.3 4.9 5.9 6.2 7,0 6,6 6,4 6,7 6,4 7,2 6,2 6,2 Pig meat 1/ 6.7 9.6 10,0 10.9 70,8 8,5 9,6 11,3 12,9 12,0 11,1 10,7 12,5 Eggs 2.3 2.2 1.7 2.6 2,9 3,5 3,2 3,6 3,3 3,1 3.2 3.4 3,8 Poultry 2 4 2.9 2.7 2.5 2,9 3.2 3,2 3,3 3,5 3,4 3,2 3,4 3,7 Fish 1.2 1.3 1> 2 1.3 1,2 1.4 1.2 1,3 1,4 1,3 1,1 1,3 1.3 Whole milk 58.0 59.o 60.0 65.0 72,0 84,0 83,0 80,0 78.0 73,0 71.0 64,0 67,0 Butter 2/ 0.7 0.8 0.8 1.2 0.8 0.7 0.8 0,7 0,7 0,8 0.9 1,10 0,9 Cheese 3.8 4.4 4.14 4.3 LL,1 5.4 5.2 5,0 5.3 44,9 4.8 5.4 14,9 Other fats and oils 2/ 6.6 9.5 9,8 9.6 9 4 9,5 9.2 9,7 10.3 11,0. 11.3 12,4 13.4 1/ Carcass weight 2/ Fat content Source: Federal Statistical Institute.  Table 14: DOMESTIC PRODUCTION AS PER CENT OF TOrAL AVJAILABILITY 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 Bread grain 77 79 66 74 58 75 77 81 100 81 82 89 78 Coarse grain 130 97 103 99 100 100 117 105 108 107 107 108 112 Maize 58 135 86 112 98 148 95 139 112 90 101 103 115 Rice 71 75 76 44 32 33 31 27 28 75 39 33 30 Potatoes 100 100 100 100 101 100 101 99 100 101 100 101 96 Refined Sugar 137 82 100 72 58 78 64 94 88 72 70 90 82 Pulses 102 95 98 102 113 102 101 96 100 105 106 Vegetables 102 101 102 102 101 101 100 101 102 101 101 86 99 Fresh Fruit (incl. citrus fruit) 103 102 103 103 105 107 105 104 103 102 102 99 102 Total meat 1/ 110 107 114 110 115 120 116 118 114 128 128 137 132 Beef & Veal 1/ 121 113 127 121 128 128 123 125 125 147 166 194 158 Pig meat 107 101 114 105 109 115 111 118 126 123 115 117 134 Eggs 107 112 142 129 133 115 123 112 120 125 125 115 112 Fish 109 108 110 100 104 97 97 94 84 142 133 142 152 Cheese 102 101 103 100 96 89 91 101 100 101 100 101 98 Butter 2/ 100 100 100 67 93 100 100 100 105 100 100 90 88 Other Fats and oils 2/ 70 67 85 77 73 73 69 75 90 82 82 92 80 1/ Carcass weight 2/ Fat content Source: Federal Statistical Institute  Table 15: CONSUMPTION OF MAIN FOODSTUFFS Total quantities Indices Per capita quantities Indices in 000 tons 1970 Kg, lit, units 1970 1965 1070 1965 1965 Wheat and rye 4,1oo 4,050 98.8 210.0 196.0 93.3 Maize and other cereals 600 450 75.0 30.7 21.8 71.0 Rice 51 56 109.8 2.6 2.7 103.8 I Cereals all 4,7511/ 4,556 95.9 243.3 220.5 90.6 Potatoes 1,173- 1,700 144.9 60.0 82.2 137.0 Beans 1601/ 175 109.4 8.2 8.5 103.6 Other vegetables 1,087- 1,720 158.2 55.7 83.2 149.3 II Vegetables all 2,4201/ 3,595 148.6 123.9 173.9 140.4 III Fruit all 1,090-' 1,470 134.9 55.8 71.1 127.4 Meat 532 767 144.2 27.2 37.1 136.4 Fish 27 50 185.2 1.4 2.4 171.4 IV Meat and fish all 559 817 146.2 28.6 39.5 138.1 Animal fats 135 167 122.2 6.9 8.0 115.9 Vegetables fats 120 150 125.0 6.1 7.3 119.7 V Fats all 255 315 123.5 13.0 15.3 117.7 VI Milk/all kinds/ mil. lit. 2,310 3,000 129.9 118.3 145.1 122.6 VII Eggs, mill. units 1,660 2,240 134.9 85.0 108.0 127.0 VIII Sugar/all _ kinds 425 580 136.5 21.8 28.0 128.4 1/ 1964/65 average. Source: Data submitted by the Yugoslav authorities.  Table 16: IUDEX OF PRICES IN Mr3OSIAVIA (1963 = 100) 1954 1958 1960 1961 1962 1964 1965 1965 1960 1964 1965 1954 1954 1960 1.9 I Producers' Prices 1lanufactured goods 87 93 95 99 99 105 121 139 109 110 115 (total) - food industries 72 87 87 94 99 111 147 204 121 127 131 - chemicals for use in agriculture 70 100 103 103 103 103 133 190 147 106 122 - agricultural machines and implements - 100 100 102 102 100 108 - - 100 108 h.Rricultural Products 51 66 69 79 91 124 172 337 135 179 139 (total) - cereals 46 72 70 78 92 132 179 38 9 152 188 136 - vegetablas 46 50 59 73 110 115 204 502 128 195 177 - livestock and poultry for slaughter 49 68 70 77 88 129 166 339 143 184 129 - milk 63 72 77 85 124 204 _ - 170 162 - rood 52 71 76 81 91 117 155 298 146 154 131 II Retail Prices General index 64 77 83 90 96 109 139 217 130 131 129 (with seasonal agri- cultural products) 1-gricultural products - seasonal products 46 62 69 78 90 118 172 373 150 171 145 _ other products 46 60 67 76 89 117 164 357 146 175 140 i'anufactured froods 75 85 89 93 98 107 133 177 119 120 125 (total) bource: tatisticki godisnjak bFtY 19G5 Statisticki Kalendar SFRY 1966  Table 17: PRICES OF AGRICULTURAL PRODUCTS IN YUGOSLAVIA AND SOMiE SELECTED COUNTMIES (U.S. Dollars) 1958/59 1959/60 1960/61 1961/62 1962/63 1963/64 1964/65 1965/66 14heat A 5.69 5.69 5.69 5.05 6.12 6.12 7.98 7.68 B 5.15 4.74 1.88 4.64 5-.4 5.72 7.58 C 6.28 6.29 6.32 6.67 8.98 7.31 7.68 Rye A 5.21 5.21 5.21 5.05 6.12 6.12 7.98 IMaize B - 3.81 3.93 3.72 4.42 4.84 6.65 5.04 (A) C 5.83 5.76 5.74 5.63 5.61 6.27 6.41 Potatoes B 1.67 2.68 2.20 2.30 3.86 3.19 4.16 4.40 (A) B1 3.28 4.38 2.88 3.95 3.75 2.85 L.13 Sugarbeet B 0.78 0.82 0.96 0.85 0.96 0.93 1.46 B1 1.01 1.54 1.15 1.24 1.41 1.47 1.38 Cattle B 18.96 20.22 24.17 21.68 23.57 28.85 40.17 46.40 (A) B1 39.71 39.41 38.79 0.14 40.03 41.57 45.06 Pigs B 31.60 30.34 29.98 29.16 35.62 38.97 44.02 40.00 (A) B1 47.11 13.69 46.85 46.68 48.61 59.94 54.96 Whole Nilk B 3.96 1.10 4.47 1.12 4.42 5.19 6.38 7.60 (A) B1 5.63 6.28 5.92 5.50 6.48 6.71 Source: U.N. - E.C.E/F.A.0. IWTheat A Basic fixed price paid to producers 100 kg B Wleighted average price received by farmers per 100 kg for all types and all sales C Average unit value of imports (cif) by Netherlands Rye A Same as for wyheat Maize B Same as for wheat C Average unit value of imports (cif) by Italy Potatoes B Sale as for wheat B1 Prices in Western Germany Sugarbeet B Average price realized per 100 kg for the whole of the harvest B1 Prices in France Cattle B Weighted average price received by farmers per 100 kg live weight for all types and grades of beef cattle (excluding calves) Bl Prices in United Kingdom Pigs B1. Same as for cattle Bi Prices in Netherlands Milk B Weighted average price received by farmers per 100 kg for all types of sales B1 Prices in Denmark  Table 18: AGRICULTURAL MACHINERY AND IMPLEMENTS (Units) I t e m 1951 1957 1958 1959 1960 1961 1962 1963 1964 1965 Tractors 6,266 14,696 20,500 26,500 31,700 35,779 38,045 40,367 h3,264 45,364 Ploughs (thousands) 1,179 1,399 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Harvesters and mowers 28,000 42,900 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Motor Threshers 17,616 20,320 21,200 21,700 22,200 19,161 18,080 17,255 16,920 16,892 Fodder cutters 125,000 189,000 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Portable sprayers n.a. 446,000 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Combines - - 639 1,334 3,092 L,921 6,642 8,360 9,488 10,518 Source: Statisticki godisnjak  Table 19: MANUFACTURED FERTILIZERS AVAILABLE (ThousancL metrfc tons) Nitrogenous Phosphatic Potash Mixed Year Total fertilizers fertilizers fertili- ferti- zers lizers 1952 79.2 25.2 48.7 5.0 0.2 1953 108.o h1.2 44.2 22.6 1954 284.3 105.4 144.1 33.7 1.1 1955 406.7 144.5 205.6 56.6 59.9 1956 478.4 205.0 215.5 58.0 86.9 1957 8h2.1 311.7 391.6 138.8 132.0 1958 1,152.7 426.9 525.8 199.9 142.7 1959 1,231.2 h17.2 624.2 189.8 174.5 1960 900.7 409.7 318.6 172.3 155.9 1961 846.2 388.0 341.2 117.0 227.2 1962 1,335.9 622.1 587.1 126.7 367.8 1963 2,243.3 840.o 1,083.3 319.9 586.0 196h 2,320.8 892.6 1,032.2 396.1 600.3 1965 1' 2,780.0 1,156.0 1,279.0 345.o n.a. 1/ Preliminary Source: Statisti6ki Godisnjak.  Table 20: INVESTMENTS IN AGRICULTURE (SOCIAL SECTOR), BY MAIN COMPONENTS AND SOURCES OF FINANCING 1961 - 1964 (in millions of dinars at current prices) A. By main components Equ i p e n t Total Construction q p Other Total Domestic Iriported 1961 1073 376 388 380 8 309 1962 1186 419 460 439 21 306 1963 1400 547 412 393 19 k42 1964 1713 n.a. n.a. n.a. n.a. n.a. B. By sources of financing social l'esources of Total Investment economic and Housing Budgets Special Banks Funds other funds unsoca ak Funds organizations funds 1961 1073 811 199 1/ 39 24 - 1962 1186 755 333 22 15 20 1963 1400 829 379 1 12 50 128 1964 1713 n.a. 394 n.a. 11 56 n.a. I/ Included in social investrent funds Source: Sitatisticki Godisnjak  Table 21: INV'r4STMENTS PLANNED FqR 1966-1970 (in billion dinars at 1965 prices) Index 1966-70 1961-65- 1966-70 (1961-65 - 100) Total Social Privrate Total Social Private Total Social Private Direct Investments 13.62 7.52 6.10 18.70 9.91 8.79 140 130 145 Agriculture 11.40 6.70 4.70 16.80 9.20 7.6C 150 140 165 Tobacco industry 0.25 0.02 0.23 0.10 0.01 0.09 n.a. n.a. n.a. Food processing industry 1.97 0.80 1.17 1.80 0.70 1.10 n.a. n.a. n.a. Indirect Investments 2.58 1.08 1.50 3.00 1.21 1.79 115 110 120 Fertilizers industry 1.10 n.a. n.a. 1.50 n.a. n.a. 135 n.a. n.a. Equipment it0.50 n.a. n.a. 0.25 n.a, n.a. 50 n.a, n,a, Trade organizations 0 (storage, refrigerating installations) 0.50 n.a. n,a. 0.80 n.a. n.a. 160 n.a. n.a. Secondary roads in rural areas 0.48 n,a. n.a. 0.45 n.a. n.a. 95 n.a. n.a. Total Investments 16,20 8.60 7,60 21.70 1112 10.58 135 130 140 Source: Data submitted by the Yugoslav authorities.  ANNEX II INDUSTRY Page No. Growth of Industry and Foreign Trade 1 Characteristics of Yugoslav Industry 3 Nature and Working of the Enterprise System 5 Price and Tax Policy Changes 6 The 1966-70 Developmeiit Plan for Industry 8 Conclusion 9 Statistical Tables: 1 - 8.  ANNEX II INDUSTRY Grovth of Industry, and Foreign Trade 1. Manufacturing and mining contributed 37 per cent of gross social product in 1965. Construction accounted for 7 per cent. Some 18 per cent of the active population is employed in industry. If the private farm sector is excluded, 38 per cent of the workers were employed in mining and manufacturing, and 9 per cent in construction. From 1952 until 1965, the annual rate of growth in industrial employment has been about 7.5 per cent. Investment in industry and construction has also been high but it has dropped as a share of total economic investment from 73 per cent in 1952 to 54.5 per cent in 1964. Large investments and the fast growth of the labor force in industry enabled Yugoslavia to maintain a rapid growth of industrial output, averaging 12.4 per cent annually from 1452 through 1965. 2. Gromth rates in industry have been diverse. The electrical apparatus industry has expanded more rapidly than any other, with a growth rate of 21.5 per cent annually from 1952 through 1965, while some industries like building materials and textiles have lagged. The rates of growth for each industry branch are shomn in Table 1. Output per worker moved ahead comparatively sluggishly compared with industrial growth. From 1952 through 1965, the increase was 4.5 per cent annually for all industries, while in rubber and textiles productivity rose only 2 per cent annually. In those industries where there was relatively heavy investment per worker - petroleum, electric energy, and chemicals - there was a rapid rise in productivity. 3. At present the leading industries in terms of their contri- bution to social product are metal fabrication, textiles, wood products and chemicals (Table 2). Table 3 compares investment rates with return on the invrestment and share in exports for major industrial branches. 4. In the immediate post-war period, there was heavy emphasis on developing infrastructure and capital goods industries. More recently, a growing portion of investment in manufacturing has gone into consumer goods industries which now contribute about 50 per cent of manufacturing output by conparison with approximately 45 per cent in 1960. The ready availability of textiles, furniture, footwear and processed foods, and the appearance in recent years of a growing range of consumer durables such as automobiles, motorcycles, refrigerators, washing machines and television sets reflect the increasing diversification of consumer goods manufacture.  5. While in the earlier post-war years the spur to the growth of industry was import substitution, and export markets continue to take a relatively small share (10-15 per cent) of total manufacturing output, some industries are largely export-oriented. Among finished and semi- finished products, approximately 80 per cent of the value of output of ships is exported; 60 per cent of refined lead; 50 per cent of rolled aluminum products and alloys; 44 per cent of inorganic chemicals; 44 per cent of rolled copper products; and 30 per cent of electrical machinery and equipment. As the capital goods industry developed, founded on extensive imports of machinery and technical know-how (Yugoslavia is producing such complex machinery as electric generators, telephone swith- boards and air compressors), the domestic market proved too small to absorb total output. The demand for capital goods is volatile and no Yugoslav industry is so large that its replacement demand for equipment is stable from year to year. Hence, to achieve even the minimum econom- ies of scale, producers of electrical and heavy industrial machinery, for example, depend heavily on the export market. Exports of machinery and transport equipment are now as diverse as those of Italy. 6. Yugoslavia has been successful in selling capital goods on a variety of markets, although the more complicated industrial and electrical machinery has not as yet had full acceptance in Western Europe or the United States. Some articles, such as electronic tubes, television sets, telephones and equipment, paper mill machinery, small electric motors, and travelling cranes, have been marketed from time to time in moderately large quantities in Western European countries and the United States. 7. While exports of machinery and equipment have grown rapidly, consumer goods account for a higher proportion of exports of manufactures. Here the industries concerned have established themselves successfully on the basis of the home market and have found that they could then compete successfully abroad. A substantial part of the output of some consumer goods is exported; for example, 30 per cent of footwear produc- tion and about 20 per cent of the output of cotton and rayon fabrics. 8. The growth of industry has not made Yugoslavia less dependent upon imports, either of manufactured goods or raw materials. Coking coal, iron ore, cotton and wool, crude petroleum, iron and steel rolled products are among important imports of materials. Moreover, the import content of exports of major products is quite high. This is true not only of the engineering industry but of ship building, textiles and footwear. In 1965 the share of industrial raw materials, components and machinery in total imports was about 80 per cent; imports of finishes consumer goods were less than 5 per cent (Table 4). 9. In spite of the development of the engineering industries, Yugoslavia must still import a sizeable proportion of the equipment necessary to modernize industry and expand output. The total program of  - 3 - accelerated investment in modernization projected for the next few years will require at least a 30 per cent import content for industry in general. The import requirement for investment in equipment is high; through 1963, it was about 50 per cent. The modernization program planned for the next few years will accordingly have to rely at least to this extent on imports of capital goods. Characteristics of Yugoslav Industry 10. The Yugoslav market is rather limited and the number of firms in most industries is small. There are in all some 2500 industrial enterprises. The numbers of enterprises in each industry are shown in Table 5. Three characteristics of Yugoslav enterprises must be noted. First, in some industries, particularly steel and petroleum, vertically integrated firms have until recently been the exception, although elsewxhere in the world in these industries the production of raw materia'L. and its processing has typically been carried on by the same firm. Secondly, Yugoslav firms are clustered in size classes that are much larger than in other industrialized nations. In the United States, roughly 90 per cent of manufacturing establishments have less than 100 workers; in Yugoslavia, less than one-third of the firms (a very few of which have more than one plant) are in this category (Table 6). In West Germany and Austria, about 6 per cent of the metal-processing firms have more than 500 employees; in Yugoslavia, 43 per cent. Thirdly - and this is less surprizing - many firms, sometimes even the largest ones in some industries, are less than of optimum size; textile mills, automobile plants, petroleum refineries and even steel mills are in this category. At the same time, the limited number of firms in most industries makes it difficult for competitive pricing to prevail, unless imports enter freely, and oligopolistic or monopolistic pricing is probable. 11. In most instances the Yugoslav firm produces a wide range of products. Specialized equipment is often unused for much of the time. Workers have to turn fraq one job to another, and this has in turn led to low productivity. According to studies provided the mission, and reproduced in Table 7, Yugoslav industrial output per man-hour was considerably below a 13-country average in 1960. 12. Paralleling and contributing to low productivity is the extent of unutilized capacity. Yugoslav estimates of unused capacity in 1963, reproduced in Table 8, are based on the proportion of the labor force working on the second and third shifts, on the relation of actual output to the maximum output if production were at the rate of production of the highest month's output, and on the number of hours' use of electric motors. Agricultural machinery  producers operated at less than 50 per cent of capacity, and electrical equipment and transport vehicles did no better. Shipbuilding, which is ordinarily operated on at least a two-shift basis in most countries, has 90 per cent of its labor force on the first shift in Yugoslavia. While averages are particularly suspect where utilization of capacity is concerned, it is of interest that the Yugoslavs estimate that manufactur- ing operations in 1965 were at about 70 per cent of capacity. Reduction of idle capacity would raise output wfithout requiring more investment. 13. To realize the benefits of specialization, some Yugoslav enter- prises have moved towards integration. This need not take the form of outright merger. Somewhat looser forms of association have been used such as the "associated enterprises", or trusts, which convey a high degree of financial, marketing, and production planning authority to a central body. Another form is the so-called business association which does not require enterprises to give up so much independence as the trust. Membership in business associations is voluntary, and the authority of the association depends upon what is contractually conceded to it by the members. The business associations can act as selling agent for their members, allocate production so as to minimize duplication of output, and program investments. For instance, the business association of tool makers (Alat) takes orders and assigns output among its members; INGRA, an association of electrical machinery producers, has selling offices in foreign countries offering a full product line and negotiatescontracts for power stations; both the shipyardst and the steel producers' associations have prepared expansion and modernization programs for their members. 14. Even writhout membership in a business association, some manufac- turers have obtained the benefits of specialization by assembling the components of independent suppliers. For example, Crvena Zastava, an auto- mobile producer, assembles components produced by about 60 suppliers. Industrija Nlotora Rakovica, producing Perkins-licensed engines, has about 50 suppliers of components. 15. A further characteristic of Yugoslav industry is its rather wide dispersion through the country. While there are industrial concentrations in Belgrade, Zagreb, Ljubljana, 14aribor and Sarajevo, new plants have in many instances been built in isolated locations, at a very considerable distance from the more developed industrial centers. They have been hampered by the absence of supporting service and supplier firms. In locating plants, a number of influences have been brought to bear, not all of them economic. Underdeveloped regions have pressed for the establish- ment of new industries to provide employment and raise incomes. Communes, even in developed areas, have been strongly motivated by local interests, and have devoted their own funds and attempted to get assistance from the central government to build up their industries. The authorities have been responsive to regional pressures. They have also concluded, on the basis of cost-benefit analyses, that it may be cheaper to set up refinery and processing plants close to the raw materials, such as the non-ferrous  metals, and to set up coal-chemical complexes at the mines, than to ship the raw materials to new plants in already established regions. Furthermore, there are substantial costs in moving workers from the underdeveloped regions to industrial centers. On the whole, therefore, the location of industry generally does not appear unduly distorted. The Nature and Working of the Enterprise System 16. The enterprise system of Yugoslavia is unique among systems of industrial organization. Production units are managed by their employees, although the assets of the firms are legally social property. In the basic enterprise law of April 1965, the first article asserts the "independence": of the enterprise, as the basis of the sociai and economic system of Yugoslavia. A Workers' Council serving a two-year term, elected by all those who are direct employees of the enterprise, selects an Executive Committee which charts policy lines. Enterprises are required to adopt by-laws setting up the internal organization and financial management rules for labor relations, and for wage scales. The enterprise also must adopt an annual financial plan. Except for price ceilings and other controls and general directives (appearing in the Constitution or federal statutes on enterprise organization and labor relations) preventing voluntary liquidation of the enterprise, protecting workers against arbitrary dismissal, and establishing broad relations between wages and productivity, the enterprises are nominally free of direct controls. The top executives of the enterprises are selected by competition; the general director is nominated by a committee of the Workers' Council, with one member appointed by the commune where the enterprise is located. The Council can, however, reject the recommend- ation and appoint another candidate. With the abolition of the social investment funds in recent years, the direct influence of government on the enterprise has been greatly reduced. Nievertheless the commune, according to the basic enterprise law, has the right to review the enter- prise by-laws, to make recommendations with respect to them, and to con- sider reports on policy, plans and accounts. 17. It is the general director's responsibility to see that the assets of the business are used in the public interest, a duty that can sometimes bring him into conflict with the Workers' Council. However, the charge to the director is usually interpreted as equivalent to making the enterprise profitable, as long as price and other regulations are observed. 18. The Workers' Council decides each year what proportion of net incomes after payment of all costs other than wages will be retained in the business, and what proportion distributed as personal income. Percentages vary among industries. Financial transactions of the enter- prises are reviewed by the Social Accounting Service, to which are attached the financial inspectors. It can compute taxes and contri- butions, question payments before they are made, and has sometimes blocked accounts to ensure payment of legal obligations.  - 6 - 19. Personal incomes are distributed on the basis of a point system determined mostly by educational or technical qualifications. Until recently bonuses over base pay for output in excess of norms were reserved for production workers, but efforts are nowi being made to devise produc- tivity bonus schemes for executive personnel. Under prevailing wage schemes, it is possible in some enterprises for the skilled mechanic to earn more than the general director. Wage differentials between firms for similar levels of skill are substantial. On the whole, workers' earnings in recent years have been increasingly related to productivity. FollowTing the economic reform, wage differentials within firms are likely to be expanded to reflect more adequately the scarcity of skills and the greater degree of responsibility of the manager. 20. The most important areas for decision in industrial firms other than prices, wages and personnel relate to new investment, to product mix, to marketing and to purchasing. The Executive Committee of the Workers' Council reviews investment and marketing strategy in these areas. Where there are highly technical decisions to be made the Committee is unlikely to challenge the general director; the initiative in proposing the lines of expansion and modernization is his, although he must justify his proposals. It is necessary, of course, for the Executive Coimmittee to be convinced that the program will offer a reasonable possibility of increas-Lg the workers' income, and there is evidence that the directors prepare the-r proposals very carefully for submission to the Executive Committee for approval. 21. Although the enterprises have in theory been free to set their own prices as they see fit in their own interest, price controls have been in force for much of the period since 1952. By 1964, about 70 per cent of industrial prices were either fixed in specific tariffs, were limited by ceilings, or could not be increased without prior approval by the Price Control Office. In reviewing price increases, the Price Control Office determined if orderly marketing or the cost of living would be endangered. After increases in industrial prices from January 1964 through March 1965 all industrial prices were frozen, as were retail margins, at the end of March 1965. Although the freedom of the individual enterprise may appear to have been seriously compromised by the price controls, it should be emphasized that the controls have always been relaxed when inflationary pressures eased; they have not been rigorously enforced and, except for the March 1965 freeze, they have not been general. The general freeze was removed in July 1965 but 90 per cent of manufactured products are still under ceilings set under the reform. Price and Tax Policy Changes 22. The elimination of most of the taxes on enterprises and the com- prehensive shifts in price relationships carried out in July 1965, have had major consequences on the relative financial position of enterprises in different industries. The complete elimination of two taxes, including the 15 per cent levy on enterprise income, and the reduction in the rate applied to personal incomes more than tripled the funds remaining at  - 7 - the ultimate disposition of the enterprises between 1963 and 1965, and doubled their share of money saving. The abolition of subsidies on exports and the devaluation of the dinar can be regarded as mutually offsetting factors for the average firm. An additional financial reform contributing to gross money savings is the increase in minimum depreciation rates from 10 per cent to 30 per cent. Changes in depreciation regulations also contribute to the financial liquidity of enterprises; minimum rates have been raised, and maximum rates are at the discretion of the firms. 23. For over a decade, the prices of raw materials, energy and transportation were kept depressed, and the fabricating industries enjoyed apparent prosperity; this encouraged inefficient practices and excessive investment. The differential price increases of July 1965 1/ redressed the balance, putting a financial squeeze on fabricators, though this ias to some extent offset by the tax relief available to all firms. The financial pressures on the fabricating firms, largely in the metal fabricat- ing and electrical machinery industries wqere intended to have two salutary effects; the first to spur efforts to achieve greater internal efficiency and the second to stimulate efforts to seek out foreign markets with even greater persistence. 24. Financial statements for 1965 have not yet been processed, so that it is not possible to say whether sizeable losses have been incurred by many Yugoslav firms as a result of the reforms. Some of them have been forced to give up independent operations and merge with other firms. Others, whose losses had been subsidized by local communes, may be forced to liquidate. But already increased efficiency in many firms has resulted: production within plants has been re-organized, norms have been recalculated there has been harder bargaining with suppliers, and there are numerous examples of increased output in almost every line of industry by firms with the same or a smaller labor force. 25. The devaluation of the dinar provided a significant stimulus to exports, though one, which is likely to prove only temporary, and the steps taken to increase the competitive efficiency of enterprises will be of greater importance in the longer run. Such increases in efficiency will be all the more necessary as in the past firms have exported sometimes at a loss in order to secure the foreign exchange needed for essential imports, and wihen imports are liberalized, this pressure to export will be relaxed; 26. Increased efficiency will be necessary also in the contest of cooperation with foreign firms. Yugoslav firms are turning toward foreign firms in increasing numbers to set up permanent relationships for exchang- ing technology and management know-how for parts and components. Whereas 1/ Raw material prices were raised on the average by 24 per cent; fabricated products by 8 per cent.  - 8 - it has been customary in the past for some Yugoslav firms to take 5- to 10-year licenses from foreign firms to produce copies of the foreign machine or product, to be paid for in convertible currency, there now seems to be agreement on both sides that permanent arrangements are preferable. The foreign partner would establish the Yugoslav firm as a supplier of parts and components, to be delivered to third countries. Ideally, the receipts from the sale of parts in third countries, or even from completely assembled units, would more than cover the costs of the license or continuing supervision fees, and the Yugoslav firms would be able to participate in the expanding sales of their partners. IIIR has set up a license agreement of this kind with Perkins Engines; IMT has reached a similar agreement with Massey-Ferguson, as have TAM and Deutz, and EI (Nis) and Phillips. Of the 3)0 license agreements now in effect, a growing proportion offer greater scope for exports of products under license, and import of know-how. The Yugoslav authorities and the enter- prises themselves are searching for institutional arrangements that will permit even closer relations, approaching financial partnerships between foreign and Yugoslav firms, and a law on foreign investment in Yugoslav enterprises is under preparation. The 1966-70 Development Plan for Industry 27. In the next five-year period, extensive investment will be checked. Few new enterprises will be established. Replacement of obsolescent equipment and investment in depth will complement the program of specialization. The program over the next five years will give first priority to electric energy to ensure an adequate supply by 1971. Secondly, investment funds will be channeled into certain basic industries: non-ferrous metallurgy, chemicals, and petroleum. The decision to emphasize thermal electric power production entails a decision to expand the production of coal, and the program provides for location of large plants at pit-head. The expansion and modernization programs currently underway in steel will be carried through, but there is no intention of making Yugoslavia self-sufficient in steel. It is assumed that continued import of steel and expanded export of fabricated non-ferrous metals, particularly aluminum, will assure a better use of resources. Basic chemicals, petro-chemicals, and artificial fertilizers (hitherto com- paratively neglected) will receive particular attention. 28. According to the targets of the proposed plan, the total investment in industry during the years 1966-1970 will be Dinars 45.7 billion compared with Dinars 35.8 billion in 1961-65 (at comparable prices). During the same period, the yearly growth rate of industrial output has been estimated at 9 per cent to 10 per cent. The physical output targets for the more important industrial products are as follows:  -9- 1965 1970 Electric energy (billion kwh) 15.5 30.5 Coal (million tons) 30.0 41.5 Crude petroleum (million tons) 2.1 3.2 Steel (million tons) 1.8 3.2 Aluminum (thousand tons) 41.0 100.0 Copper (thousand tons) 56.0 80.0 Lead (thousand tons) 102.0 160.0 Zinc (thousand tons) 46.0 110.0 Ships (thousand dead weight tons) 253.0 400.0 Conclusion 29. Certain deficiencies in Yugoslav industry are obviously of long- standing. Low productivity, inexperience with management responsibility, insufficient capacity utilization, cannot be cured overnight. But the reform program appears to be carefully and skillfully designed to apply relatively simple remedies towards resolving many of the difficulties by simultaneous interaction. 30. The reforms have left with the enterprises a much larger pro- portion of earnings and a greater measure of discretion in determining future investment. Moreover, parallel with the fiscal and banking reforms that have cut the receipts of the local government units (communes) and reduced their role in the operation of banks, has come a deflation of their status vis-a-vis the enterprises. The authorities recognize that the enterprises, if they are to survive on the basis of their own efforts, must have authority commensurate with their responsibility. Interference by communes both directly and through banks has been sharply reduced. 31. Specialization by firms will improve efficiency, and higher productivity and higher quality will follovw in the train of specialization. Lower costs and higher quality in turn will improve export possibilities, particularly to convertible currency areas, from which most new equipment and components must be imported. Since the investment funds of the banks will be allocated to those firms whiich can demonstrate that they will be able to use them effectively and priority will be given to expanding exports, competition among firms for fi7nds will also tend to improve internal management and labor performance. 32. Thus, there are reasons to expect that the broad objectives for industrial growthl and the growth of industrial exports can be achieved in the next several years, and the impressive record of past growth sustained. The program of modernization, further specialization and continuous improvement in the quality of products is clearly vital to the realization of these objectives, particularly in the export field.  STATISTICAL APPENDIX Table No. 1 Annual Rates of Growth in Employment, 1952-1964 and Output 1952-1964, 1952-1965, and 1960-1965, by Industry Branch 2 Distribution of Investment, Fixed Assets, Employment, and Social Product by Industry Branch, 1964 3 Rates of Return on Net Investment, and Average IMonthly Net Income of' Workers, by Industry Branch, 1964 4 Distribution by Industry of Imports and Exports of Manufactured Products, 1965 5 Distribution of Number of Firms by Industry, 196)4 6 Distribution of Manufacturing and Mining Enterprises by Number of Employees, 1963 7 Level of the Average Labour Productivity in Yugoslav Industry, in Relation to Other Countries, 1960 8 Industrial Branches According to the Degree of Utilization of Capacity, 1963.  Table 1: ANNUAL RATES OF GROWTH IN EMPLOYMENT, 1952-1964 AND OUTPUT 1952-1964, 1952-1965, AND 1960-1965, BY INDUSTRY BRANCH Employment Output 1952-196h 1952-1964 1952-1965 1960-1965 Electric Energy 4.2 14.8 14.4 11.8 Coal 1.8 6.9 6.4 4.1 Petroleum 6.9 19.2 19.2 17.4 Iron and Steel 6.3 13.8 13.3 5.6 Non-Ferrous Metals 3.3 9.4 9.2 8.6 Non-Metals 10.4 16.0 15.5 12.7 Metal Fabricating 9.5 14.0 13.6 10.0 Shipbuilding n.a. n.a. n.a. 11.1 Electric Apparatus 14.9 21.5 21.5 17.0 Chemicals 12.1 19.6 19.4 18.3 Building Materials 5.8 8.8 8.5 6.2 Wood 7.2 10.7 10.4 11.9 Paper 9.9 17.9 17.7 20.0 Textiles 7.8 10.5 10.3 9.7 Leather and Shoes 7.8 11.9 11.5 11.4 Rubber 14.4 11.6 13.4 9.5 Food 8.3 13.8 13.3 9.6 Industry 7.3 12.7 12.4 10.7 Source: Statisticki Bilten 357; Indeks, 4, 1966  Table 2: DISTRIBUTION OF INVESTMENT, FIXED ASSETS, EMPLOYMENT, AND SOCIAL PRODUCT BY INDUSTRY BRANCH, 1964 Invest- Fixed Employ- Social ments Assets ment Product Electricity 19.6 21.7 2.6 5.0 Coal and Coke 5.3 7.2 5.9 4.6 Petroleum 4.0 4.4 0.8 4.6 Iron and Steel 16.0 7.7 3.6 4.4 Non-Ferrous Metals 4.1 6.5 1.5 4.6 Non-Metals 2.2 2.1 3.2 3.5 Metal Fabrication 10.0 11.6 18.4 18.0 Shipbuilding 0.8 1.4 1.5 1.6 Electrical Apparatus 4.3 2.6 5.6 6.1 Chemicals 6.4 6.5 4.6 6.5 Building Materials 2.1 3.4 5.3 2.1 Wlood Industry 3.6 4.2 10.5 6.4 Paper 4.9 4.0 1.7 2.3 Textiles 6.5 7.6 14.9 12.0 Leather 0.8 1.1 3.9 2.5 Rubber 0.9 0.5 1.0 1.9 Food Processing 4.4 5.2 8.3 5.5 Printing 1.6 1.4 3.1 3.0 Tobacco o.8 0.7 1.7 4.4 Film 0.0 0.9 Prospecting 0.2 0.4 0.5 Miscellaneous 1.7 0.0 0.6 0.5 TOTAL 100.0 100.0 100.0 100.0 Source: Statisticki Godisnjak, 1965; Statisticki Bilten 382, 1965.  Table 3: RATES OF RETURN ON NET INVESTMENT, a/ AND AVERAGE MONTHLY NET INCONE OF W4ORKERS, BY INDUSTRY BRANCH, 1964 Industry Branch Rate of Return Net Monthly Income b Electricity 3.5 590 Coal and Coke 3.7 410 Petroleum 5.9 610 Iron and Steel 4.3 5