ESTIMATE OF 1953 GRAIN PRODUCTION IN THE SOVIET BLOC

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September 13, 1954
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VM Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 INTELLIGENCE MEMORANDUM ESTIMATE OF 1953 GRAIN PRODUCTION IN THE SOVIET BLOC CIA/RR IM-395 13 September 1954 THIS MATERIAL CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECS. 793 AND 79k, THE TRANSMISSION OR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW. CENTRAL INTELLIGENCE AGENCY Office of Research and Reports Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E-C-R-E-T FOREWORD A study of grain acreage, yields, and production is most essential to an appraisal of the Soviet Bloc's capability to support its popu- lation under conditions of peace or war. Although shifts in the grain production pattern within the Bloc from year to year are not of themselves valid positive indicators of intentions, it is possible that the Bloc countries would not launch a major military campaign during a protracted drought or with an empty granary. This memorandum deals with the production of grain in the Soviet Bloc as a whole and in each of its major components -- the USSR, the European.Satellites, and Communist China. It primarily highlights the current situation regarding acreage, yields, and production. of bread grains (wheat and rye), coarse grains (barley, oats, and corn), rice, and several minor grains in 1953 and gives comparisons with pre-World War II and recent postwar years. This memorandum does not analyze the relation of grain production to the economy of each country concerned, but attention is drawn to certain of these rela- tionships, particularly population numbers, in their broadest sense. An analysis of the utilization of the production of each grain (seed, feed, industrial use, human consumption, trade, reserves, and waste), is being made in a separate report on the food balance of each Bloc country. Although the emphasis of this memorandum is on production in 1953, some consideration has been given to long-te_'m trends and the plans of the Bloc countries to increase grain production. Crop production plans for Communist China are vague and do not seem to have the same degree of importance as they have in the USSR and the European Satel- lites. Therefore, instead of a section on "Plans" for China, there is presented a section on "Problems of Supply and Distribution." The numerical data contained in this memorandum do not represent measured or weighed quantities -- they are at best estimates and sometimes approximations. The estimated range of error in most cases is ? 5 percent. S-E -C -R-E -T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Nwr CONTENTS Page Summary . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 1 I. The Soviet Bloc . . . . . . . . . . . . . . . . . . . . .. . 3 A. 1953 Grain Production . . . . . . . . . . . . . . . . . 4 B. Significance . . . . . . . . . . . . . . . . . . . .. . 4 II. The USSR . . . . . . . . . . . . . . . . . . . . . . . .. . 5 .A. 1953 Grain Production . . . . . . . . . . . . . . . . . 1. Bread Grains . . . . . . . . . . . . . . . . . . .. 5 2. Coarse Grains . . . . . . . . . . . . . . . . . . . 5 3. Rice and Other Grains . . . . . . . . . . . . . . . 6 B. Plans . . . . . . . . . . . . . . . . . . . . . . . . 6 C. Significance . . . . . . . . . . . . . . . . . . . . . 7 III. The European Satellites . . . . . . . . . . . . . . . . A. 1953 Grain Production . . . . . . . . . . . . . . . . . 10 1. Bread Grains . . . . . . . . . . . . . . . . . . 11 2. Coarse Grains . . . . . . . . . . . . . . . . . . . 12 B. Plans . . . . . . . . . . . . . . . . . . . . . . . . . 12 C. Significance . . . . . . . . . . . . . . . . . . . . 13 IV. Communist China . . . . . . . . . . . . . . . . . . . . . 14 A. 1953 Grain Production . . . . . . . . . . . . . .. . . . 11 B. Problems of Supply and Distribution . . . . . . .. . . . 15 C. Significance . . . . . . . . . . . . . . . . . .. . . . 17 S-E -C -R-E -T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79 S-E-C-R-E-C Appendixes Page Appendix A. Ll~tatistical Tables . . . . . . Appendix B. Methodology . . . . . . . . . Appendix C. Sources and Evaluation of Soure Tables ........ 19 ........ 37 s ....... 43 1. Soviet Blcc: Estimated Acreage, Yield, hand Production of Grain, Prewar and 1950-53 . . . . . ? . . . . ? . . . 20 2. Soviet Bloc: Per Capita Production of Gain, Prewar and 1950-53 . . . . . . . . . . . . . . . . . 21 3. USSR: Estimated Acreage, Yield, and. Pro uction of Gratin, Prewar ani 1950-53 . . . . . . . . . . . . . . . . . . 22 4. USSR: Estimated Acreage, Yield, and. Production of Grain, Selected Prewar Periods . . . . . . . . . . . . . . . 5. USSR: Per Capita Production of Grain, Prewar and 1950-53 . . . . . . . . . . . . .. . . . . . . . 211 6. European Satellites: Estimated Acreage, Yield, and Production of Grain, 1935-39 Averag , 1952, and Prelininary 1953 . . . . . . . . . . . . . . 25 7. Albania: :estimated Acreage, Yield, and !reduction of Grain, 1935-39 Average, 1952, and Pr liminary 1953 ? 8. Bulgaria: Estimated Acreage, Yield, and Production of Grain, 1935-39 Average, 1952, Preliminary 1953, and 1957 Man . . . . . . . . . . . . . . . . . . 27 S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP791j00935A000300020001-9 I..r Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E-C-R-E-T Page 9. Czechoslovakia: Estimated Acreage, Yield, and Pro- duction of Grain, 1935-39 Average, 1952, Preliminary :L953, and 1953 Plan . . . . . . . . . . . . . . . . . 28 10. East Germany: Estimated Acreage, Yield, and Pro- duction of Grain, 1935-39 Average, 1952, Preliminary 1953, and 1955 Plan . . . . . . . . . . . . . . . . . 29 11. Hungary: Estimated Acreage, Yield, and Production of Grain, 1935-39 Average, 1952, Preliminary 1953, and 1956 Plan . . . . . . . . . . . . . . . . . . . 30 12. Poland: Estimated Acreage, Yield, and Production of Grain, 1935-39 Average, 1952, Preliminary 1953, and 1955 Plan . . . . . . . . 13. Rumania: Estimated Acreage, Yield, and Production of Grain, 1935-39 Average, 1952, Preliminary 1953, and 1955 Plan . . . . . . . . . 14. European Satellites: Per Capita Production of Grain, Prewar, 1952, and 1953 . . . . . . . . . . . . . 33 15. Communist China: Estimated Acreage, Yield, and Pro- duction of Grain, Prewar and 1950-53 . . . . . . . . 34 16. Communist China: Per Capita Production of Grain, Prewar and 1950-53 . . . . . . . . . . . . . . . . . 35 Map Fol:Lowi f Page Western USSR: Spring Wheat Acreage . . . . . . . . . . 10 S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 CIA/RR IM-395 (ORR Project 21.142) S-E-C-R-E-T ESTIMATE OF 1953 GRAIN PRODUCTION IN THE SOVIET BLOC* Summary Considering the Soviet Bloc as a whole, the 1953 total. grain pro- duction,** estimated at 225 million metric tons,*** was 12 million tons below production in 1952 and 24 million tons, nearly 10 percent, less than the production immediately before World War II. The decline in production is more serious than the absolute figures indicate, when they are considered in relation to the over-all increases in population that have taken place. The European Satellites, considered as a unit area, had the largest decline in absolute tonnage (more than 11 million tons), and production per capita fell from 486 to 376 kilograms, or 23 percent. Per capita production in the USSR de- creased 18 percent and in Communist China, 4 percent. For the Bloc as a whole, bread grain production was only 5 percent below prewar production; but coarse grain production was 19 percent lower than prewar production. Per capita production of all grain fell from 325 to 303 kilograms in 1952 and to 286 kilograms in 1953. The USSR and Communist China have established high goals for grain production in their respective long-range economic plans, but little has been accomplished in actually attaining them. Grain production goals in Eastern Europe have been at about prewar levels and have generally not been achieved. The USSR, after admitting failure to achieve its agricultural goals, has launched a program to extend grain production to new lands, to idle land in presently cultivated areas, and to lands * The estimates and conclusions contained in this intelligence memorandum represent the best judgment of the responsible analyst as of 1 July 1954. ** The grain crops considered in this memorandum are wheat, rye, oats, barley, corn, rice, and the miscellaneous minor grains -- millet kaoliang, buckwheat, spelt, and (in the USSR) pulses. XXX Throughout this memorandum tonnages are given in metric tons. S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP791100935A000300020001-9 S-E -C -R-E -T that have not proved to be well adapted to the production of perennial grasses. Judging from past experien e in extending grain production into submarginal areas, the Soviet program of seeding grain crops on virgin lands holds little promipe of increasing pro- duction by 18 million to 20 million tons as planned. An appraisal of all factors, including climate, which :s of paramount importance, indicates that increase in production is more Likely to be within the order of 6 cr 7 million tons, with a possibility of reaching 9 million tons if climatic conditions are unusually favorable. Some success can be expected from the much more lim .ted program to ex- pand the production of grain on idle land and Land formerly used to a considerable extent for grass crops, but his program will have :Little effect on the total grain production situation in the USSR. I The USSR appears to be in serious difficulty with respect to the production of grain -- not only for food, but also for nonfood use. The new program is a desperate move which may,lwith favorable weather, stave off the time when the country will no longer be self sufficient in grain production. Unfavorable weather may cause crop production to fall short of the country's requirements in the near future. In that event, imports -- largely from Bloc countries -- will be necessary to maintain the present levels of consumption., The situatioa in the European Satellites is also serious. Un- favorable climatic conditions have been a major factor in restricting production during the past few years. Lower production has also resulted from such other conditions as peasantiresistance to col- lectivization, compulsory delivery of productsito the State, the low prices paid for those products, and high taxes!-- all of which have reduced individual incentives. With normal we ther conditions and the successful prosecution of a program of rea~ incentives to peasants, the Satellite ar,sa not only could become self-sufficient in grain but also could regai:l its status as an area of sur~lus production. The per capita grain production in China 16 clouded by the great variation in population estimates. Because ofllack of bette informa- tion, China's po.rpulation count is presently beng held static. As far as productio:l is concerned, there appears o have been less change in China (a decrease of about 4 percent) betweOn the late thirties and 1953 than in the other countries of the Bl~c. On the basis of a static: populatio:i, per capita production of gr in in 1953 was about 229 kilograms -- far lower than in other Bloc gountries. Moreover, S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E -C -R-E -T population may be greater than that being currently estimated, which would make the grain situation even less favorable than it appears. In spite of internal exhortation designed to increase grain produc- tion in Communist China, it is improbable that in the long run any significant increase in per capita production can be attained. The long-term-view of the grain situation in the USSR is not optimistic. The European Satellites probably can improve their situation somewhat, but at best the quantity of their surpluses cannot be expected to equal those enjoyed before the war. The Chinese situation is more or less static with the possibility of becoming worse. Therefore, except in years of unusually favorable climatic conditions, the Soviet Bloc as a whole may be expected to be not more than self sustaining. I. The Soviet Bloc. Grain is the most important class of food and feed products in the Soviet Bloc. As food, grain contributes, on the average, more than half the caloric value to the average diet in the European Satellites, about two-thirds in the USSR, and up to nearly three- fourths in Communist China. The importance of grain as feed is greatest in the European Satellites and -- because of human compe- tition for grain as food -- of least importance in China. Although all of the countries in the Soviet Bloc are allied politically, each has its own economic aspirations, goals, and problems. Inclusion in the Bloc has not resulted in free exchange of goods among the countries, nor has it resulted in "Bloc unity" in economic policy and planning. The production and utilization of agricultural products is not planned for the Bloc as a whole, and there is enough "rigidity" in each country's agricultural economy to preclude a "leveling" of per capita production and utilization. It must be recognized, however, that in time of emergency the centralized political and military power of the USSR will attempt -3- S-E -C-R-E -T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00!935A000300020001-9 S-E -C -R-E -T to mobilize the resources of all Bloc co-intri;es* for a common cause. It is therefore necessary to consider Bloc capabilities and achieve- ments in the aggregate and to make comparisons when desired between these factors :'or the Bloc and for the NATO car for other groups of free countries. A. 1953 Grain Production.** Total grain production in the Soviet!Bloc in 1953, estimated at 225 million tons, was about 5 percent below the production of 237 million tcns estimated for 1952 and 10 prcent below prewar annual production. The greatest reduction occurredjin the USSR, whereas production in China was about the same as in!1952. Production in Eastern Europe was, however, higher than in 1952, an unfavorable crop year. I Although grain acreage in 1953 of 215 million hectares was 1.5 million hectares above 1952, adverse weather in most regions of the USSR and China resulted in less favorab e growing conditions for crops in 1953 than in 1952. Yields for 195 , which averaged 10.5 centners per hectare for all grains, were l w in comparison with 11..1 and 11.3 centners per hectare in 1952 nd in prewar years, respectively. B. Significance. Bloc population, estimated at 787 million people in 1953, is 4 million greater than in 1952 and 20 million greater than prewar population fcr the same area. Because of the increase in population and the decrease in grain production, the sipply of grain for food in 1953 was rot so favorable as it was in 1952, and much less favorable then in prewar years. For example, the gross grain pro- duction per (zapita is estimated at 286 1ilograms in 1953, The USSR, Communist China, Albania, Blgaria, Czechoslovakia, East Germany; Hungary, Rumania, and Poland! * See Table 1, p. 20, below, for grain tatistics by raajor Bloc area and type of grain. aE Althoug:i gross production per capita s a hypothetical concept which is not appropriate for making quantitative deductions concern- ing actual food supplies, it is a factor that is useful for making comparisons of different years. It is a dTvice that changes the unfamiliar production measure of million mgtric tons to kilograms 1 S -E -C -R -),:P -T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E-C-R-E-T compared with 303 kilograms in 1952 and 325 in prewar years. (See Table 2.*) II. The USSR. A. 1953 Grain Production. The rainfall pattern in the USSR in 1953 was generally un- favorable for crop production. Drought conditions prevailed in the southern Ukraine, a most important winter-wheat region. The drought, coupled with a continuation of the general shift in acreage from coarse grains to wheat, resulted in a decrease in total production. Production in 1953, estimated at 81 million tons, was about 12 per- cent below the production of 92 million tons estimated for 1952, and 9 percent below the production of 89 million tons in :prewar years. (Tables 3 and )+.**) If the total grain production for 1953 is re- lated to the total USSR population, the resulting factor, gross production per capita, is considerably below similar factors for 1952 and the average for the late prewar period. (Table 5.) 1. Bread Grains .)()()(x The 1953 production of bread grains was estimated at ap- proximately 53 million tons compared with 61 million tons in 1952. Low yields were the chief cause of the difference in production be- cause the acreage seeded to these crops in 1953 was only slightly less than in 1952. Yields in 1953 were about one centner per hectare, or 12 percent, lower than in 1953. Both the acreage and production of bread grains were still below the prewar- acreage, the acreage by 7 million hectares and production by about 8 million tons. 2. Coarse Grains. Coarse grain production in 1953 is estimated at about 21 million tons compared with about 25 million tons produced in per person, a smaller measure that is far easier to visualize and one that makes allowance for changes in population. Table 2 follows on p. 21. Tables 3 and 4 follow on pp. 22 and 23, respectively. Table 5 follows on p. 24. Wheat and rye. 1938. Barley, oats, and corn. S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP797 S-E-C-R-E-T 1952, although the acreage seeded remained the same. Prewar acreage and production were about 7 million hectares and 7 million metric tons larger, respectively, than those estimat d for 1953. Although the acreage and production of all grains have been. below late prewar averages, the emphasid placed on the pro- duction of wheat in the postwar period by the USSR has been a major cause of the decrease in the acreage utilize for coarse grain pro- duction. Unfairorable weather in 1953 was a jor cause of the decrease in yields; it is estimated that yields averaged only 7.8 centners per hectare compared with an average yield of 8.8 centners per hectare in 1952. 3. Rice and Other Grains. From an acreage of about 200 hectares, rice production is estimated to have been about 400,000 tons in 1953, about the same as the acreage and production of 1952 and of~late prewar years. Yields in 1953,, estimated at 20 centners per hectare, also remained about the same. In comparison with bread an coarse grains, rice production in the USSR is insignificant. The production of "other" grains in 1953 is estimated at about 6 million tons. This is about the Jame production that was estimated for 1952, but it is some 2 million tons below prewar levels. In 1913, however, almost 1 million more hectares were sown to these grain,; than in 1952. Compared to tije 11 million hectares sown. during the late prewar years, the 1953 acreage represents a decrease of 2 iiillion hectares. The Fifth Five Year Plan (1951-55) c4lled for an increase of 4+0 to 50 percent in grain production over 190. During the first 3 years of the p'-an, annual production has not increased significantly. In fact, production in 1953 was about 4 mill on tons, or 4,.7 percent, below production in 1950, the base year, despite the fact that ap- proximately 4 izillion more hectares were seeded in 1953 than in 1950. Recent decrees which are intended to increase grain production were announced after the 1953 harvest, when production fell- to the Buckwheat, millet, legumes, and vetch. en reporting grain pro- duction, the U3SR includes legumes and vetch S E -C -R E -T Approved For Release 1999/09/21 : CIA-RDP791J00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 *We lowest levels since 1949. The most important decision on the expan- sion of grain production issued recently was on 2 March 1954, when the plan to reclaim idle land and extend the production of grain in new areas was announced. l/* The plan provides for an expansion of the grain acreage- by 2.3 million hectares in 1954 and by 10.7 million hectares in 1955, bringing the total expansion to 13.0 mil- lion hectares. Envisaged in this acreage expansion is a production increase of nearly 20 million tons. The following discussion indicates that although the acreage goal may be reached, only exceptionally favorable climatic conditions could result in an increase in production of 20 million tons. If normal conditions prevail, however, production can be anticipated to increase by less than half this amount. In addition, some 4 million hectares more are expected to be seeded to coarse grains and other crops on land that has recently been used for low-yielding perennial grasses. 2/ This is a less ambitious project than the plan to expand seedings on virgin land and is more likely to succeed. C. Significance. The USSR depends greatly upon agriculture for food, feed, and fiber: about half of its population depend directly upon agri- culture for their living. The failure to increase or even maintain production presents an alarming picture to Soviet leaders. Soviet grain production, in particular, has failed to return to prewar levels. The significance of stagnation in grain production becomes most apparent when it is contrasted with total population which has been increasing by about three and one-half million each year. With a 1953 population of 214 million, the quantity of grain produced in the USSR in 1953 indicates a gross per capita production of 377 kilograms for the consumption year 1 July 1953 through 30 June 1954. The gross per capita production for 1953 is 1;3 percent less than the 435 kilograms indicated for 1952 and almost 18 percent below the 461 kilograms produced per capita in the late prewar period. * Footnote references in arabic numerals are to sources listed in Appendix C. Chiefly wheat and millet. Population is estimated at 211 million for 1952 and 192 million for 1939. S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP791f00935A000300020001-9 S-E -C -R-E -T Althouga not so dramatic as are compa isons of grain to popu- lation, similar comparisons of coarse grains o livestock cambers would indicate in even less favorable ratio o feed per animal, which is a factor terming to reduce productivity significantly. Except for hogs, livestock numbers will not be affected ~s directly by grain shortages as wiLl animal weights and the production of dairy products. Horses, cattle, and sheep -- the roughage con with little or :.o grain if coarse feed suppli all decreases i:i grain production, whether gr umers -- can subsist s are available. Over- atest in bread or coarse grains, impinge upon the food supply -' bread grain directly and coarse grain indirectly as it reduces animal productivity. The pro.;ram to expand wheat productio into the lower Volga (Economic Region VI) and North Kazakh SSE (Ec nomic Region Xa) indicates that -.;he USSR is putting greatest e~phasis upon bread grain production. 3/ An interlinear reading Of recent Soviet decrees, however, indicates that some balance between bread and coarse grains will be maintained by reducing the seeding of ;bread grains in their traditional areas of production as expansion akes place in the new marginal areas. Part of the land formerly usd for wheat in European USSR may be used for coarse grains. A shift gtrongly in fa'ror of bread grain production would be counter to the aims of the Soviet consumer goods program, which is aimed at improving th4 level of living by providing highe:- quality foods. It is axiomatyic that more mouths can be fed with the grain produced from an acre o~ land than with the products from animals fed the same amount of train, but the latter provide on the whole, a more palatable, and possibly healthful, diet. A balance between these two extremes appears o be the course the USSR is taking. If, however, expansion of the grain a~reages into marginal areas fails, as it is apt to do unless extremely favorable climatic conditions prevail, and population continues i;o increase as it most likely will for some time to come, the consumer goods program will be hampered. Ao a result the Soviet planners may be forced into a position of hav:Lng to produce for survival. his eventuality will demand great increases in the directly consumed crops, chief of which are bread grains, at the expense of indirectl consumed crops, such as coarse grain;; and other feed crops. Possitly the only alternative under these conditions would be for the USSR to become an importer of staple foodstuffs. As an importer, the USSR could be vulnerable to ecorromic sanctions imposed by the food export.ng nations. - 8 - S E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP791t00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E-C-R-E-T The lower Volga and. North Kazakh SSR regions, where most of the expansion is to take place, are in a belt where the soil is poor and rainfall uncertain.* The program, however, entails the re- assignment of manpower, including managers and specialists already employed on productive collective farms. Some machinery being al- located to the new areas could be used effectively in the old. areas of production. The new area is supposed to get 120,000 tractors (in 15 horsepower units) in 1954. This compares with 139,000 similar general purpose tractors (15 hp units) which were the total deliveries to all of agriculture in 1953. 4/ The USSR appears., therefore, to be taking a great risk with its manpower and capital. Rainfall in the new area ranges between 12 and 16 inches per year. Experience has shown that two complete crop failures usually occur in each 5-year period in these regions of Russia receiving an annual precipitation of 12 to 20 inches. 5/ In the past, extensions to acreage customarily seeded to spring wheat in Asiatic USSR have proceeded slowly because of low yields and frequent crop failures. Yields have been about 7 centners per hectare in the years when the crop could be harvested. 6/ Increased production from this extension of acreage in 1955 probably will be no more than 6 million to 7 million tons, in con- trast to the 18 lhillion to 20 million tons calculated by the Soviet government, on inflated and unrealistic yield estimates. Consequently, the cost of this production will be inordinately high. The more modest program to restore grain crops to idle land and land that has recently been used for perennial grass crops in the better agri- cultural areas of European Russia should be relatively more success- ful. The scale of this program, however, is too limited to bring about a significant increase in total grain production. III. The European Satellites.** Excessive precipitation in the European Satellites in the autumn of 1952 delayed fall plowing and seeding, which resulted in a, decrease in sown area. In addition a dry and cold spring in 1953 reduced the yield of grain below earlier expectations. 7/ In East Germany, See the map, Western USSR: Spring Wheat Acreage, following p. 10. Include Albania, Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, and Rumania. S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP791j00935A000300020001-9 S -E -C -R-E -T Czechoslovakia, and Poland, root crops are ha vested at approximately the same time that fall plowing and sowing oc,urs. This high seasonal workload combired with a reduction in farm labor that has taken place in recent years has resulted in a serious dro in winter wheat and rye acreage. :Because of the favorable sowing condtionL existing during March and April, early estimates indicated that theiloss of acreage devoted to winter grairs would be made up with spring1grains. The shortage of farm labor and machinery, unpopular collecltivization programs, and peasant resistance, however, resulted in disorganization in carrying out spring sowing plans. Government announcements of plan fulfillment and its criticism pertaining to support of the "new course" indicated that the planned acreage goal for bread grain was not fulfilled. The 1952 planned acreage of bread grain was also underfulfilled. A. 1953 Grain Production. Grain* production in the European Sat llites in 1953 has been estimated to be 34.8 million tons or 103 perc nt of the poor crop year of 1952, tut only 76 percent of prewar. The 1953 grain acreage of 28.5 million hectares was less than 1 perc nt larger than 1952 and 12 percent below the prewar average of 32,.5 million hectares. Acreage of bread grains was below 1952 as a r suit of adverse sowing conditions in the fall of 1952 and lack of se d in the spring of 1953. Coarse ?xain acreage increased by 3.4 ercent over 1952 as a result of increased plantings of oats and cor . Yields of bread grain in 1953 averaged approximately the same as for 19;2. In the northern area* gro ing conditions were not as satisfactory for grains as in 1952. Tiese conditions resulted in yields of wheat and rye remaining at or slightly below 1952 levels, while coarse grain yields were unchanged,. In the southern area*** yields of all grains were higher than in the poor crop year of 1952. The most significant increases over 1952 were] in the yields of corn. * See Tables 6-13, pp. 25 through 32, below, for acreage, yield, and :production by country. I Eastern Germany, Czechoslovakia, and Pold. Hungary, F,umania, Bulgaria, and Albania. 7 S E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79100935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 SECRET Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S E-C-R-E-T The gross per capita production* of grains estimated at 376 kilograms for 1953 is only a slight increase over the 1952 level of 367 kilograms. The prewar average per capita production of grain was 487 kilograms. When compared with 1952 and 1953 this decline readily indicates the failure of the Communist governments to in- crease the production of grain at a rate commensurate with the growth of population. 1. Bread Grains.** The bread grain acreage in 1953, estimated at 14.9 mil- lion hectares, was 300,000 hectares or 2 percent less than the acreage utilized for bread grains in 1952 and 14 percent less than prewar. The greatest reduction in the 1953 acreage occurred in East Germany with a 16 percent decrease as compared with 1952? The average yield of bread grains for 1953 was 12.7 centners per hectare as compared with 12.9 in 1952 and 14.3 in pre- war. Rye yields in Poland and East Germany showed the greatest reduction, while wheat yields remained approximately the same as 1952. The yields of wheat and rye in the other European Satellites showed increases over 1952, but they still remained below their pre- war average. Bread grain production for 1953, estimated at 19 million tons, is 650,000 tons or 3 percent less than 1952. The 1953 pro- duction was also 5.8 million tons or 23 percent below the prewar average of 24.8 million tons produced in the average prewar year (1935-39 average). The gross per capita production of bread grain, in.1.953, estimated at 205 kilograms, is 96 percent of the gross per capita production in 1952 and 78 percent of average prewar years. Diff i- culty was experienced by some Satellite governments during 1952-53 in adequately supplying their people with bread. With a decrease in per capita production for 1953, as indicated above, it appears probable that the situation will show no improvement unless wheat and rye are imported in sizeable quantities. Poland and Hungary, normally net grain exporters, have been negotiating for significant imports of grain, including bread grain. See Table 14, p. 33, below. Wheat and rye. MEN See Table 10, p. 29, below. S-E -C -R-E -T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 I Approved For Release 1999/09/21 : CIA-RDP79IT00935A000300020001-9 S-E-C-R-E-T 2. Corse Grains.* Thy 1953 production of coarse grains, in contrast with bread grain, i3 estimated to have been larger than 1952, but is still below 1951 and prewar levels. Production isiestimated to have been approximately .L5 million tons or 13 percent above 1952, but it is still 27 percent below prewar averages. The production of both oats and barley show increases over 1952, but the,most significant in- crease is that of corn, which increased by approximately 33 percent over 1952 as a result of increased acreage ar4d yield. The total acreage of coarse grains for 1952 is estimated at 12.9 million hectares compared with 12.5 rcillion in 1952 and 14+.4+ million in preirar years. The increase in 1913 acreage over 1952 came as a result of a favorable spring for sowing and less of a loss in the corn acreage due to summer drought than occurred in 1952. The average yield of coarse grains in 1953 is estimated at 11.6 centner?s per hectare or 109 percent o 1952 and 82 percent of prewar yielc.s. Yields of oats and barley in 1953 were approxi- mately the same as 1952, but the corn yield increased by 2.8 percent as a result of more favorable growing and harvesting conditions during 1953. B. Plans. Grain production in the Satellites ha not been meeting planned goals for the past 2 years. The Five and Six, Year Plans for agri- culture announced by the various governments,lcalled for grain pro- duction to reach and in some areas to exc:eed.irewar levels 'by the end of the plan.** The increased production of grain was to be'accom- plished by holding the grain acreage generally below prewar levels and increasing the yields significantly. Thelplan goals, however, have not been r?~alized to date. The anncuncent of the "hew course" in agriculture "!~y the various governments is aken to mean an ad- mission of previous failures. The "newwr course" in agriculture for Estern Europe places great; emphasis upon the necessity for increas ng livestock numbers Barley, oat;;, and corn. Albania, 19!55; Bulgaria, 1953; Czechoslov kia, 1953; Hungary, 195+; Poland, 1955; and Rumania, 1955. S-E -C -R-E -T Approved For Release 1999/09/21 : CIA-RDP79T;00935A000300020001-9 ... Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S -E -C -R-E -T and slaughter weights of meat animals. Accomplishment requires an increase in the feed supply, in which grain plays a significant role. Although there is to be a slight increase in acreage,* mostly of the bread grains, the increased production of both bread and coarse grains is to be primarily a result of increasing yields per hectare. It is planned that the increased yields will result from increasing the incentives to the peasants, increasing the use of chemical fertilizer and agricultural machinery, and a more cautious collectiviza- tion program during the next two years. C. Signif icance. The European Satellites, as a result of a below-average grain harvest for the second year in succession, now find themselves in the position of drawing on reserves and of having to be net importers of grain, if they hope to fulfill recent promises to the population of a higher standard of living. Bread grain production in 1953 in East Germany, Poland, and Czechoslovakia was below 1952. With an increased population, this situation necessitated increasing imports of bread grains for East Germany and Czechoslovakia, and a resumption of im- ports for the first time since 19+7 for Poland** in order to maintain 1952 levels of bread consumption. Coarse grain production, although more favorable than 1952 because of the increase in corn production in the Balkans, still was below government expectations. Hungary and Poland have negotiated for imports of feed grains from Western countries. Normally these two countries are exporters of feed grains. The net effects of low grain production in 1953 are estimated to be: (1) an increase of grain imports by Eastern Europe over pre- vious years; (2) a decreased ability of some Satellites to implement fully their consumer goods programs as a result of having to import grains; and (3) inability of most Satellites to replenish state re- serves of grain from which withdrawals were made last year without endangering food and fodder supplies. * Hungary plans to increase the area sown to bread grains by 5 per- cent. Poland plans to expand grain acreage by some 400,000 hectares. 8/ ** The Minister of Agriculture, Jan Dab-Kocial, in December 1953, claimed that "in order to secure the food supply of the country .. we had to import some grain. 9/ S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP791T00935A000300020001-9 S-E-C-R-E-T :EV. Communist China. A. 1953 Grain Production. Estimates of grain production for Communist China include the following: rice, wheat, kaoliang, corn, millet, barley, and oats.* All of these grains excepting kaoliang and milet are shown separately for consolidaticn into Soviet Bloc totals.. (See Table 15.**) Kaoliang, the millets, and a miscellaneous grain class are included under the general classification of "other grains." Thelarea covered by the estimates of grain production exclude the auto omous regions of Tibet and Inner Mongolia, the province of Sikang and, except as noted, Sinkiang.xxx Adverse weather in 1953 resulted in less favorable growing conditions for crops than in 1952. During they growing season, rain- fall was irregular and apparently below normal in much of the rice growing area. In May and June, for example, drought delayed. rice transplanting in no fewer than six provinces.j This subnormal rain- fall area extenLed in a rough semicircle :?rom Xunnan in the south- west to Kiangsu on the east coast. In much of the winter wheat area, a generally adverse winter was followed by a ]gate and severe frost that lowered yields in some of the important wheat producing; provinces. An expansion in the acreage of both rice and wheat, however, served to compensate for adverse growing conditions. The tentative estimate of 1953 grain production in Communist China, is 109,860,000 tons. This is less than a 2 percent decrease from the lll,881i,000 tons estimated for 1952. tut is 4 percent below the prewar average of 114,471,000 tons. The ice acreage expanded roughly 4 percent in 1953, and the wheat acre ge increased by about 6 percent. The combined production of these drains represented 64 percent of all grain production. * The Chinese Communists report a grain pr duction tonnage that includes the grains as given here, plus peas, pulses, soybeans, and potatoes. It i?s not known if the potatoes are included in this aggregation on an absolute or on a grain equivalent basis. Un- fortunately man;r intelligence publications us the same or similar tonnages for China under the same imprecise h ading. ** Table 15 fellows on p. 34. XXX The wheat production of Sinkiang is included in the grain pro- duction estimate for the first time in 1953. As this is less than 500,000 tons, iiteryear comparisons are not s giiificantly distorted by this additioc. - 14 - S-E -C -R-E -T Approved For Release 1999/09/21 : CIA-RDP791j00935A000300020001-9 ,,, Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E-C-R-E-T In terms of total grain production the increases in wheat and rice acreage were extremely important in offsetting the adverse con- ditions of the 1953 growing season. Wheat and rice constituted about two-thirds of total grain production. As long as this proportion of the total is maintained, the total grain output will tend to remain relatively stable.* Although the rice and wheat acreage was expanded in 1953, it is unlikely that any of the other grain acreages expanded sig- nificantly. Total acreage for the listed grains in 1953 was ap- proximately 7 percent over the prewar average. Moreover, it is difficult to credit an expansion of principal crop acreages larger than the 3 percent expansion that occurred from 1952 to 1953. 'Under these circumstances the grains other than rice and wheat are carried at 1952 acreage levels. Adverse weather resulted in decreased yields and thus in lower production of grains other than rice and wheat. This decrease was approximately 6 percent. Grain production in 1953 also was lower than the Chinese Communists had planned. On 4 February 1953, Chou En-Lai in a re- port to the Chinese People's Political Consultative Conference stated that the grain production goal for 1953 was 109 percent of 1952. 10/ Adverse crop conditions during the spring and summer caused a revision (in September 1953) of this target to 106 percent of 1952 production. 11/ By September 1953 it would seem that even this goal was optimistic. According to CIA estimates, actual grain production in 1953 was only 98 percent of 1952 grain output. Although not all Chinese claims of recent production are known, the Communists have announced that grain production in northeast China in 1953 was only 93 percent of the grain production in 1952. 12/ B. Problems of Su ply and Distribution. On a per capita basis the production of grain in 1953 was 229 kilograms as compared to 233 kilograms in 1952. This is a decrease of about 2 percent and is below the prewar production of grain per capita by about 4 percent. Table 16** gives per capita production for the various types of grain. * The acreage, yield, and production of grain in Communist China are given for a prewar year and for each year from 1950 through 1.953 inclusive in Table 15, p. 34, below. *'* Table 16 follows on p. 35? S-E-C-R E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP791j00935A000300020001-9 S-E-C-R-E-T Rice production in 1953 reached 100 kilograms per capita for the first time Eince the Communists gained control of China. The production of wheat per capita has remained repatively stable at about L7 kilograms, or approximately at the prewar level. It is to be noted that a constant population figure was em- ployed in calculating these per capita production data. If the census currently being conducted by the C:aineEe Communists indicates a population growth, the per capita grain output figure will. be even less favorable than that shown in Table 16. The quantities produced in 153 do not in themselves of grain indicate a deter?iorated food position. Food 4hortages in a number of localized country districts apparently hav4 resulted from adverse weather in 1953, but the problems of interpro\incial movement of foodstuffs probably have been made more diffi4ult. Food shipments to urban areas may be an even greater problem' since the traditional surplus areas o:f rice and of coarse grains wee affected most ad- versely in 1953. To supply the urban population, it may have been necessary to draw foodstuffs from areas which normally are more or less self-sufficient. The government is encroaching to an iicreasing degree on the food distribution field. Estimates of the nu~hbers of people dependent to some degree upon marketing functions performed by the government range as high as 200 million. Because of thetgovernment's assumption of marketing functions and delays in its pric(b stabilization activities, lags in supply adjustment have resulted. A g6od crop year or a plen- tiful supply of grain tends to obscure the economic strains resulting from controlled prices and inept distribution{ The slight fall in total grain production in 1953 tended to reve .l or emphasize the prob- lems inherent In the Communist practice of controlling prices and supply movements. In like manner the failure of the 19);3 crop of grains to equal or exceed the 3.952 production probably has re4cted unfavorably on the government's storage or reserve program. Storage or reserve plans were likely bae,ed on the achievement of the foodstuffs output goal in 1953, of 1952. Since pro- duction was scheduled to be 109 percent duction decreased rather. than increased, maintenance of the reserve plan would have further worsened the already1precarious food position of the population. - 16 - S-E-C-R-E-T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 1 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E -C -R-E -T The size of the reserves that the Communists wish normally to carry are unknown. Various indications have pointed to 20 mil- lion to 30 million tons of grains above commercial stocks. Such reserves, however, are believed to be relatively small as yet, and the 1953 crop does not appear to offer a favorable opportunity for their expansion. C. Signif icance. The failure of the 1953 grain crop to increase or even to equal the production of 1952 probably hinders government operations in several ways. Exports to the USSR in payment for industrial capital are made more difficult. Although grain output was not down sufficiently to indicate that the Chinese Communists could not obtain the quantities of grain desired for export, internal dis- content with the regime's procurement and export program would probably have been less if a larger grain crop had materialized. Because significant additions to grain reserves are considered to have been unlikely in 1953, price stabilization of basic foodstuffs and the build-up of strategic reserves for military use may have proceeded at a slower than desired pace. Because the Chinese Communists have firm political control internally, the decrease in amain output in 1953 is not likely to have significant effects on their intentions. Any plans of suf- ficient importance probably will be carried out. Nevertheless, some delay may result in the implementation of those plans having a low priority in the economic field. S -E -C -R-E -T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 S-E-C-R-E-T STATISTICAL TABLES S -E -C -R-E -T Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 CIA-RDP791100935A000300020001-9 N rI M O N Ol N N 1000 M pl 0 0 N 00 N iu 0I vO1 N N GD fpp-11 pOp~1 ~n 1Np N 1+11D 1p N OI rl 0 ca 0i C F U O (y v a ro W Y [, m 0~) 1 I+ rl - M_Y M NI 0 010 0 [- O O C 0 0I M~ O N QppN N~ C~ r-1~> M MI O.MC nll 01(1110 -0 r1-7 .3 0 C?1 C~ E N N ~~iO rn0 [- N 10 N 0 10 1)4' .-I t: [T ~~~ 0 ml 049 N.Y 1 0 7 X N N r{~~I O110M 0 -7 C~,~ 1 O- H N 010 .{ ~ O N [-NOJ [ml N0NN !TI M0 N~~IN~ OI7I7 rl 0110 M N O M rl ri ri N W 0 H N 1 M 10 p M N -3 19cv1N N 010.0 04 N v, Ol 10II In000- IR CRNry N -M1 1" $I' N .+r{ rl ? NII NMO,-IO 0 N~ N~ O fl ~ .I (~ ~I 01.0.0O mil b oc fi II MN10 lO M 0 O { r{ M -U' 0001 uN N~ 0 MO ml N N -0 00 M0 NI 10 m ~ .{ 0 0 O , 0 0 10 (J N -Y 7 1 -11 0 O M D0 -0 N 1n 010 1p N.-1Nr{ N N N N 0 ON Nvl M r-IN NN .-1 MO t0 C UI q u N 0 m m 0 m 44 i + G N of .1~ N PO 1) a O S Uai !~A V O N~ U O mu f0 ~ N VO] U V ?0O M O VIA 1 - O1 M co 0010 N O OO ~p jO C-N 11OW ~ Approved For Release 1999/09/21 CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 0 CC) u-,j , C~N tQ ?,~ p Nf~I C7rrril ~I ~ C" O~ CH 0 I Yj faC8 N 0 m ?1 m a) IA 0 O y -4 'c(d p U] r-i a) 0 o pq 08 ' q a m Ol cal -_ FEI N M ?0 H N ti rr '+ o r-I .,q H 0 r r-+ a 0 O 0 0 O\N 0 0 Q\ ri ?r4 0 ,A r-i tv 4--1 rd q WI Q) ON co O\ r-I cd r-I ~- Ry a I P4 1 r. t^ 41 ^ 0 1 W I rnN ?'C)0d a rn Cal rnrn +H O r-i .. r'{ U.1 ^ O F1 H Q+ r-f a l p: p I I -I Cr\ (11 ti co N 41 0 ^ ?rH-1 ?rW-I N r~-1 O ^ -P 0 rH-{ 0 t~ WWl ra ?rl CQ ^ r1 L r\ O N rH-I LIB O ON *r-A O1 A H a Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T00q35A000300020001-9 d~ r~'IN ~ri~ NI l Oi X11 ~,^ Y v Wo {a,.~ N ~o m ~o m rn o N a ~ v3 y ai ~ N O I N~ N ~~ c0I O I O~ T 3 4 x O ~ G N m W s 4 O m o,~ I m .v m m o 1O u. a`~ N o c~ it d # x i~"1pO C~Cd t`I of m0. O~ rnl NI NI' N ^ N~i ++ N ~ ~N ; O ~OIIN'' N ri HN CV O.i Gi O } V .-1 UI M~ inI [_-~ ni NI NI OI - ~y I. 1111 ~ { { LL~~ Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 i' ' Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 IW N cO N M ~I NI N11 Id N .~ U) N Q1 ~ .O ?i -IP 4+ v p -j r m I -N H H H y Fa r-Il~~i O U P+ ad W F U b Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 Approved For Release 1999/09/21 : CIA-RDP79T009i5A000300020001-9 L.C\I N C- O\j r-4 LO N Owl 'D co N M Lr rI UI\1 co 'Dc0~ OG\ cO O r-I ~ M \O r-I H M 0 E }.t v LC\ i ~ Lf\ rd LC 0 01% ~ 0 H c H 10 I~ ! E-i -+-) cd Cal W a) p4 Ch co ri C\j r~-I O r-i N CO N Ci p ?H Cd Lh v W P WI to 0 O H al H H OJ 0 1 O wI cA 0 L4I cd N N r-I c5 LOC\1 -Fp N O O H O O H P-4 N . O cdr-IN Approved For Release 1999/09/21 : CIA-RD1 79T00935A000300020001-9 '- Approved For Release 1999/09/21 : CIA-RDP79T00935A000300020001-9 i0a U' 0 0 O M 0 I0 M 0 O H tiI H H r-I N N - -7 L