EASTERN EUROPE'S 1983 GRAIN HARVEST

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP85T00287R000700010003-3
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
19
Document Creation Date: 
December 22, 2016
Document Release Date: 
August 2, 2010
Sequence Number: 
3
Case Number: 
Publication Date: 
December 9, 1983
Content Type: 
MEMO
File: 
AttachmentSize
PDF icon CIA-RDP85T00287R000700010003-3.pdf892.28 KB
Body: 
Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 09 DEC 1983 MEMORANDUM FOR: (See Addressees List) Acting Chief, Strategic Resources Division Office of Global Issues 25X1 SUBJECT: Eastern Europe's 1983 Grain Harvest 1. The attached memorandum assesses 1983 grain production in Eastern Europe and the resulting implications for grain trade and food supplies. 2. This assessment was produced by Agricultural Assessments Branch Strategic Resources Division, Office of Global Issues, and Regional East/West Economics Branch, East European Division, Office of European Analysis. 3. Comments and questions are welcome and may be addressed to the Chief, Agricultural Assessments Branch, or to the Chief, Regional East/West Economic Branch, Attachment: Eastern Europe's 1983 Grain Cro : Outlook and Implications GI M 83-10280, December 1983 25X1 25X1 25X1 25X1 J-0 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 SUBJECT: Eastern Europe's 1983 Grain Harvest Mr. Gerald A. Range Deputy Chairman, World Agricultural Outlook Board Department of Agriculture Mr. Elmer Klumpp Special Assistant to the Under Secretary International Affairs and Commodity Programs Department of Agriculture Mr. Richard A. Smith Administrator, Foreign Agricultural Service Department of Agriculture Mr. Donald Novotny Director, Grain and Feed Division Foreign Agricultural Service Department of Agriculture Mr. Edwin Cissel Director, Foreign Production Estimates Division Foreign Agricultural Service Department of Agriculture Mr. Keith Severin Foreign Production Estimates Division USSR/Eastern Europe Foreign Agricultural Service Department of Agriculture Mr. Harvey Shapiro DD/Office of East-West Trade Department of Treasury Mr. William Griffith INR/EC/CER Department of State Ms. Mary Ann Peters EUR/EE Department of State Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 ?'~JECT: Eastern Europe's 1983 Grain Harvest dressees List (continued): Frank Vargo .S for Europe nternational Trade Administration _-epartment of Commerce . Susanne Lotarski -;rector, Office of USSR and Eastern Europe _nternational Trade Administration .apartment of Commerce Jay Burgess _?irector, Eastern European Division '?f f ice of USSR and Eastern Europe _nternational Trade Administration =epartment of Commerce Sanitized Copy Approved for Release 2010/08/02: CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 I I SUBJECT: Eastern Europe OGI/SRD/AAB/1 Distribution: (AttachmE 1 - Each Addressee 1 - D/OGI 1 - DD/OGI 1 - C/SRD/OGI 5 - C/AAR/SRD/OGI 15 - EW/EE/EURA 8 - PS/OGI 25X1 vest 25X1 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 CIA-RDP85T00287R000700010003-3 I I Cents! Intdkgenct Agcnc,v DIRECTORATE OF INTELLIGENCE Eastern Europe's 1983 Grain Crop: Outlook and Implications Summary We estimate Eastern Europe this year will harvest a grain crop of around 97 million metric tons, the region's second highest crop ever, but down from last year's record 102-million-ton harvest. Near record production in the grain importing northern countries-- Poland, Czechoslovakia, and East Germany--will do little to improve food supplies because imports will remain below the levels of the recent past. In most southern countries--Bulgaria, Romania, and Hungary--production shortfalls will lower grain exports at a time when, these financially hard pressed regimes are attempting to boost sales to obtain hard currency. We believe retail food prices are likely to rise in most of the countries of Eastern Europe, and t%-e food situation will be worse during the coming year in Poland and Rom..-ira where already depressed meat supplies are expecte; to worsen. The impact of the production faZtoff on consumers will only. he partly blunted by likely grain imports in the 8 to 9-million-ton range. While this amount would he roughly 1 million more tons than last year, it is only about half of the average import levels of the early 1980s. We estimate that the United States will have a 20 to 25 percent share of the East European grain market in MY 1983/84, near last year's level but a far cry from the 55 percent share that it enjoyed in the late 1970s. The smaller share can be attributed to the general reluctance of private and governmental sources in the United States to provide financing for grain purchases. 25X1 25X1 25X1 This paper was prepared by I Agricultural Assessments Branch, Strategic Resources Division, Office of Global 25X1 Issues (AA8/SRD/OGI), and Regional Fast/West Economics 25X1 Branch, East European Division, UjTicle of European Analysis (EW/EE/EURA). Comments and questions may be addressed to the Chief,25X1 AAB/SRD/OGI or the Chief, EW/EE/EURA Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Eastern Europe's 1983 Grain Crop: Outlook and Implications Ever, with a record harvest last year, food consumption in Eastern Europe suffered because of financial constraints that forced a sharp decline in the region's net grain imports. Grain requirements were reduced by slaughtering livestock, reducing the grain content of feed rations, tightening rationing requirements, and raising retail food prices. Reaching planned grain production levels this year is once again out of the question and even if, as expected, the grain crop is better than average for the region as a whole it will do little to provide consumers with more or better food. Indeed, if the crop falls short of current expectations and exports of food continue to be pushed, cutbacks in consumption, particularly of meat, as well as further price increases, could be in the offing. Grain Production we expect 1983 grain production in Eastern Europe to reach some 97.4 million metric tons, the second-highest crop ever, but short of the 110-million-ton target for 1983 and below last year's record harvest of 102 million tons. All of the reduction is expected to occur in the southern countries,l which were hit hard by drought in May and July. In contrast, overall favorable weather and a large sown area helped the chronically grain deficient northern countries, where grain production is expected to reach near record levels. Eastern Europe Weather Conditions Dry weather helped the East European countries to gather in a record grain harvest in 1982, but it also set the stage for problems in 1983. Precipitation last fall was just adequate for the initial development of winter grains everywhere except in drought-stricken Poland. Over the winter and spring, mild temperatures and acceptable soil moisture levels improved prospects for winter grains jr the northern countries. The southern countries, or. the other hand, experienced very light precipitation, 1 The southern countries are Romania, Rulgaria, Hungary, and Yugoslavia. The northern countries are Poland, Czechoslovakia, and East Germany. We discuss the two groups separately because they differ in climatic conditions, crops, and degree of self- sufficiency in grain production. 25X1 25X1 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 whicy; failed to rechar,e depleted soil moisture ^cr, ~s, a~ severe~u rc. a-e:' potcvt al u el.ds ~. ; f tht T?o7,~' ar,d ul aria: z,i rater -zro r crops n A!au. June rainfall, which saved most winter rains in the affected areas of Hungary and ugoslavia, g1'eatly improved the outlook for orr, in all cr the southern countries. Continued favorable sun-.rarer weather further boosted corn prospects in Yugoslavia, Romania, and Bulgaria. Hot and dry conditions during July and August, however, dimmed the outlook for Hungary's corn crop, and for spring grains in Czechoslovakia and Southern Countries - A Falloff In Production. We expect the southern countries of Eastern Europe--Romania, Bulgaria, Hungary, and Yugoslavia--to produce about 55 million tons of grain this year. The crop, about average for the region but some 5.5 million tons below last year's record output, would have been larger, except that a drought in May reduced winter grain yields almost everywhere. In contrast, spring grains, which normally comprise 60 percent of the grain produced in this part of Eastern Europe, developed well except in Hungary. o Severe damage to Romania's winter grain crop in May is expected to result in a below-average total. grain. output of 17.6 million tons, far short of Bucharest's 25.3-million-ton goal. Production even at this level is dependent upon the final outcome of the corn harvest, which made good progress through most of the summer. Because of the May drought, Bulgaria has no chance of achieving the planned production goal of 10.3 million tons, and a below average grain crop of 7.5 million tons now seems likely. Losses from droughts in May and July will probably depress Hungary's output to an average level. The current crop is expected to total about 12.9 million tons, a decline from last year's record of 14.8 million tons and substantially below the 14.5-million-ton plan for 1983. Excellent conditions in Yugoslavia since late May have made an above average harvest of 17 million tons likely. Though falling short of the estimated 1983 plan of 17.7 million tons, this year's output would he surpassed only by the record 17.4-million-ton crop of 1982. Sanitized Copy Approved for Release 2010/08/02: CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 N,rthr rn Cr)untr1os--1 ear -' cnrr? Grain Okitpt]t.. The northern countries of Poland, Czechoslovakia, and Last Germany have experienced generally favorable weather during this crop season, 25X1 and they are headed toward a near record grain harvest of over 42 million tons, the best outcome since 1974. Winter grains, which comprise 60 percent of production, benefitted from mild temperatures and ample soil moisture and at the approach of 25X1 harvest they were in good-to-excellent condition. The winter grain harvest was complicated by early ripening, widespread lodging and local shortages of harvest machinery, but dry weather enabled farmers to keep operations going at a steady pace, holding losses to minimum levels. Some of the region's spring grains on poorer sandy soils were hurt by drought in July, but harvest reports indicate that damage was significantly lighter than had been portrayed earlier in local press accounts. We expect 1983 grain production in Poland to reach an above- average level of 21.6 million tons, overfulfilling the 21.2- million-ton plan. Farmers increased the sown area over last year's, and good to excellent yields for winter grains more than offset minor losses of spring grains from the July drought. o It appears that Czechoslovakia will produce 10.8 million tons of grain in 1983, somewhat less than the 11.0 million tons planned, but better than last year's output. o President Honecker announced in October that East Germany had harvested 10 million tons of grain and called this result the largest grain harvest in the country's history. Though production fell short of the 10.3-million-ton plan, 25X1 we estimate that a larger sown area in 1983 was a major I factor in surpassing the 1982 output. 25X1 Grain Trade We estimate that during marketing year (MY) 1983/19843 Eastern Europe will import between 8 and 9 million tons of grain, some 1 million tons more than last year but well below the 2 Lodging describes a condition resulting when, because of rain and wind, grain stalks bend or break and form a flattened or tangled mass that is difficult to harvest. It generally occurs during the later stages of crop development--when the grains are tallest and weighted down with mature heads--and when plant growth has been especially lush. 3 1 July 1983 to 30 June 1984. 25X1 25X1 A Sanitized Copy Approved for Release 2010/08/02: CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 16-million-ton average of the early 1980s.4 Our estimate is based on an assessment of each country's ability to finance imports as well as its estimated grain requirements. We expect 25X1 the region's grain exports to total 3 to 4 million tons, down sharply from the 5-million-ton level last year. Despite the increase in imports and cutback in exports, we estimate total grain supplies will be roughly 3.4 million tons lower in MY 1983/84 than last year due to this year's smaller harvest.[ j 25X1 The South - Increasing Import Costs, Declining Export Revenues. While the southern region as a whole will remain a net grain exporter, imports are expected to rise substantially and exports to decline sharply. The decline in exports comes at a time when the economically hard-pressed regimes are trying to boost exports for hard currency or to barter for hard currency goods. Higher world grain prices will only partially offset the expected decline in export volume. o Romania is expected to import between 0.8 and 0.9 million tons of grain in MY 1983/84, a sharp rise over the 320,000 tons imported in MY 1982/83 but some 1.5 to 2.0 million tons short of its estimated grain import requirements. Romanian officials reportedly have said that they can buy grain only if Western suppliers are willing to extend credit or to accept such items as cement, fertilizer, chemicals, and textiles in exchange. Unless Romania is able to secure financing or arrange such barter deals, it will have little choice but to reduce livestock herds. Despite unfulfilled domestic needs, we believe Romania will export 1.0 to 1.2 million tons of grain, largely to obtain needed hard currency or hard currency goods. Bulgaria, in a turnaround from last year, is expected to 25X1 become a net grain importer in MY 1983/84. Imports will rise to 400,000 to 500,000 tons--mostly corn--while exports will plunge to only 50,000 to 100,000 tons versus an estimated 1.1 million tons last year. Hungary, although suffering a large decline in grain export earnings, will remain a net grain exporter, partly because 4 The northern countries--Czechoslovakia, East Germany, and Poland--are traditionally net grain importers. In contrast the southern countries as a whole are net grain exporters. Hungary is the region's only consistent net grain exporter; Bulgaria is usually a marginal exporter, and Yugoslavia a net importer. Romania, a net exporter, is sometimes referred to as Eastern Europe's "grain broker," often exporting and importing large quantities of grain in the, same year, in order to take advantage of changing world prices. Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Ii J1 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 of large carryover stocks from last year's record harvest. Hungarian officials have already predicted that the shortfall in this year's grain production could cost as much as $300 million in lost export earnings. o Yugoslavia's good corn harvest should enable the country to increase grain exports to between 1.1 and 1.3 million tons. A large share of these exports is expected to be handled through countertrade arrangements, whereby Western firms will provide Yugoslavia with soybeans and meal products in exchange for corn. Utilizing US Commodity Credit Corporation (CCC) guarantees, Belgrade is expected to import between 490.000 and 500,000 tons of grain, almost entirely wheat. The North--Imports Remain Depressed. We expect that this year's near record harvest in the north will be augmented by imports of approximately 6.0 to 6.9 million tons. This level of imports is about on par with last year, but substantially below the 10.4-million-ton average of MY 1980-83. Total grain supplies are expected to rise only marginally (300,000 tons) above last year's level, but they nonetheless will remain helow the average of the late 1970s. Poland's imports in MY 1983/84 will probably range between 3.0 and 3.3 million tons, roughly 700,000 tons less than last year and well short of the amount needed to rebuild the 25X1 livestock herds reduced by distress slaughtering in 1982. Financing problems will dictate that the bulk of Poland's grain purchases be made for cash or through barter. To help replace imports from the West, the USSR is expected to deliver about 650,000 tons, about 140,000 tons more than it provided last year. Czechoslovakia is expected to import between 500,000 and 25X1 600,000 tons of grain in MY 1983/84, about 150,000 tons below that of last year. Because of reduced harvests in Romania and Hungary, Prague will likely be forced to purchase a larger share of its corn from sources requiring hard currency. MY 1982/83. East Cermany's grain imports are estimated between 2.5 and 3.0 million tons, roughly .5 million tons above the level of The Search for Western Financing Since the early 1970s, Eastern Europe began relying heavily upon Western credits to finance grain imports. By and large, these funds were easy to come by in the detente environment that prevailed. The situation was altered in 1982 when East-West political frictions, economic crises, and debt problems in Poland and Romania cast doubt on the creditworthiness of all of Eastern Sanitized Copy Approved for Release 2010/08/02 CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Europe. While East European access to Western credits generally has tightened, the availability of credit to purchase grain has been less severely affected. A number of Western governments, for example, have heen willing to play down the issue of Eastern Europe's creditworthiness for political reasons and to find outlets for surplus grain. o Canada has been particularly aggressive in expanding its sales to Eastern Europe through the use of government-backed commercial credits. Officially-backed loans paved the way for the one-million-ton sale to East Germany in January, East Berlin's first major purchase from Canada since the mid-1970s. More recently, the two countries signed a long- term agreement calling for East German purchases of one million tons per year in 1984-86 financed by officially guaranteed credits. Press reports indicate that Canada is also pursuing talks with Romania on a two-year agreement. Austria recently sold 200,000 tons of wheat to Poland on the basis of government-hacked credits and has reportedly been negotiating a 220,000-ton sale of wheat to East Germany. Last year Austria sold 285,000 tons of grain to East Germany (Austria's largest grain sale ever to East Germany), 170,000 tons to Czechoslovakia and 50,000 tons to Yugoslavia. All sales reportedly included government-backed credits. Despite France's failure to renew its long-term agreement with Poland, Paris has continued to provide Warsaw with short-term government guarantees for financing grain sales. the credits were promised before imposition of martin aw, and Paris will maintain them as long as Poland keeps payments current. Although concerned about East Germany's creditworthiness, France reportedly has continued to extend guarantees for grain shipments but at a lower level than in previous years. West Germany apparently has been encouraging domestic commodity traders to provide credit lines to East Germany. In contrast to their West European and Canadian counterparts, US banks and grain traders generally remain reluctant to extend credits for grain purchases. Further, the restrictions on Commodity Credit Corporation (CCC) credits to Poland, imposed after martial law was declared in December 1981, 7 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 1.! Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 will continue to sharply limit sales of US grain.5 Prior to the credit cut off, the United States supplied about half of Poland's grain imports. We estimate that US grain sales to Eastern Europe in MY 1983/84 will total only about 1.7 to 2.0 million tons. The bulk of these sales will go to East Germany, Poland, (on a cash and limited credit basis), and Yugoslavia (CCC credits). As a result, the US share of the East European grain market this year is expected to range from 20 to 25 percent, near last year's level but well below the 55 percent share it enjoyed in the late 1970s. Outlook for Food Supplies On balance East European consumers can expect little improvement in food supplies despite this year's good harvest. Indeed, further cutbacks in supplies and increases in retail food prices may he in the offing as agricultural imports remain depressed and exports of food continue. Shortfalls in food supplies will impact most heavily in Poland and Romania, where meat is already in short supply. In Poland, although food supplies have improved somewhat since the first of the year, prospects for the coming months t ' an s good harves medicate continuing shortages. This year her with exile^ted imports ..,i. a s oge should help to ease a shortage of flour and baked goods. eseeable f h or e Nonetheless, rationing is expected to continue in t future for such items as meat, animal fats, butter, sugar, flour products, chocolate, and coffee. Warsaw has already announced that food prices will rise, possibly 10 to 20 percent, as of the first of the year. Although Warsaw announced earlier this year that the meat ration in 1983 would go no lower than that of the second half of 1982, such promises appear unrealistic. Meat deliveries in 1983 are expected to be some 5 percent or more below last year. Despite increased meat imports, we estimate that per capita consumption this year may decline to about 5 Poland has been the region's primary recipient of LIS CCC export financing programs, receiving roughly $2.6 billion in credit guarantees and direct credits--more than 80 percent of CCC financed sales to Eastern Europe--during fiscal years (FY) 1970- 82. Since East Germany, Czechoslovakia, and Bulgaria do not have most-favored-nation status, they are not eligihle for CCC financing. Romania is eligible but did not receive any financing in FY 1983 and although Bucharest has made informal inquiries into credit availabilities for FY 1984, no formal request has been made. Hungary and Yugoslavia received $42 million and $240 million respectively in CCC financing in FY 1983. Yugoslavia has requested S341 million in CCC financing for FY 1984. Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 55 kilograms or less, roughly 2 kilogram less that last year and well below the 74 kilogram average of 1980. With livestock herds down sharply and feed supplies curtailed, no improvement in meat supplies is expected in 1984. Among the southern countries, Romania is in the worst condition. Over the past year and a half, consumers have faced sharp price increases, long queues, rationing, and shortages of meat, cheese and butter. In its attempt to gain tighter control over the supply and distribution of food, the regime has implemented a number of measures this year. Restrictions on the sale and resale of privately produced foods in public markets have been tightened; the private sale of meat has been banned; and the private transport of foodstuffs has been prohibited. These steps have only succeeded in reducing the supplies offered for sale, thus exacerbating shortages. In East Germany, Czechoslovakia, Bulgaria, and Yugoslavia, local shortages of meat, dairy products, vegetable oils, citrus, coffee and chocolate will continue and prospects for additional increases in food prices (except for East Germany) will make life uncomfortable, hut we do not expect the situation to become critical. In Hungary, food supplies are expected to he near normal hut more costly. Budapest, blaming this year's drought, recently ordered an immediate increase of lh to 23 percent in the retail prices of bread, sugar, cooking oil, and other basic foodstuffs. Some Issues Ahead So far the political fall-out from tight food supplies has remained muffled. On the surface, at least, it appears that the East European consumers are getting accustomed to long lines, selective food rationing and price hikes. We do not know, however, the extent to which their patience is wearing thin. We believe that the East European governments would move quickly to shift food supplies from surplus regions or state reserves to 25X1 specific areas if popular rumbling appeared threatening. The Romanians and the Poles have done this successfully in the past. Sudden sharp price increases and new or tighter rationing 25X1 requirements are the most serious potential flash-points. Polish authorities were recently stung by the wave of public criticism which took place over the reinstitution of Nutter rationing. Two high level officials in the Ministry of Trade and Services were fired for their poor handling of the matter. Nonetheless, Warsaw remains committed to food price hikes next year, and other regimes are likely to continue raising rices with an eye toward restraining domestic demand. 25X1 Unless Eastern Europe imports more grain than is now intended, food supplies in the region will not improve much if at all. Although most East European governments have pledged to sharply increase domestic grain production, numerous constraints Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 stand in the way of achieving this goal. In addition to largescale investments for modernization, the East Europeans would have to initiate institutional reforms designed to overcome management problems, inadequate incentives and low productivity. In our view, the requisite measures are not likely rain that t to g say to be taken any time soon. This is no production in any one year will not increase substantially nditions h . er co because of exceptionally good weat Sustained improvements in food supplies in the next few years, therefore, will depend largely on Eastern Europe's ability to boost grain imports. Financing will continue to be the critical factor in determining the volume and pattern of Eastern 25X1 Europe's agricultural trade. Because of their financial weakness, most East European countries will have limited leverage on major exporters and will buy from those suppliers willing to extend credit or to accept countertrade arrangements. Credit availability will often assume greater importance than price in ^r", Although the reduced US presence has given other countries the opportunity to increase grain sales to Eastern Europe, we expect that Canada will remain the only major grain exporter to use government-backed trade credits aggressively to expand its market share. Other large grain exporters--Australia and 25X1 Argentina--seem reluctant to jump in and fill the trade gap, either because of concerns over Eastern Europe's creditworthiness or because of their own inability to extend loans. France will probably continue to extend some credit on a selective basis, but Paris appears cautious about financing a major expansion of grain sales to Eastern Europe. While Austria stands ready to provide grain credits, it can be only an occasional and minor supplier of grain to the region. We expect West Germany to continue backstopping East Germany's grain requirements because of Bonn's strong interest in supporting the East German economy and improving political ties. As a net grain importer, however, West Germany is unlikely to stake out a long-term share of East Germany's grain market and would probably reduce its role if 25X1 other financing becomes available. 25X1 We believe that US exporters could quickly recoup much of their lost market share if US commerical and official lenders e eased their restrictions on new loans to Eastern Europ 25X1 25X1 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 25X1 Table 1 Fas t-ern Europ(' : rrn i n Productiona Million Mot_ric Tons 1977-81 Average 19 77 1978 1979 1980 1 981 1982 1qR3 Eastern Europe 93.8 93 .7 96.2 90.8 96.0 92.1 1.02.0 97.4 0 Southern countries 55.2 55 .3 53.9 0 55.4 19 3 57.4 2 20 54.0 7.5 1 60.5 19.7 55. 17.6 Romania 18.9 18 .6 19. . . . R 6d 5 7 Bulgaria 8.1 7 .8 7.7 8.5 7.8 8.7 12 A . 14 9 . 1 2. g Hungary 12.8 12 .3 13.3 1.2.0 13.8 . 2 . 4 17 0 17 Yugoslavia 15.4 16 .6 13.q 15.6 15.6 15. . . Northern countries 38.6 38 .4 42.3 1 5 35.4 17 3 38.6 18 3 38.1 19.8 41.5 21.2 42.4 21.6 Poland 19.3 Czechoslovakia 10.1 19 10 .4 .3 . 2 11.0 . q.2 . 10.7 9.4 9 10.3 0 10 10.8 10 0 East Germany 9.2 8 .7 9.8 8.9 9.6 8. . . a Grains include wheat, rye, barley, oats, corn, mixed grains; in the southern countries rice is also included;i-n Bulgaria, legumes. CIA estimate. C CIA esti.mate. Romania announced that total. 1982 grain production was 22.3 million tons, f orn and 6 5 million tons of wheat. However, dry weather h,nr* c t 25X1 25X1 ons o including 12.6 million grain yields, and much of the barley was chopped for fodder. These factors, in our judgm n 's record is 20.2 million tone. R i oman a 8luded a crop of 22.3 million tons, considering that CIA estimate. Although Bulgaria announced 1902 production as 10 million tons, Local press accounts were silent about the harvest. Weather conditions during the growing season did not seem nod enough for a crop of that size. Bulgaria's record production is 8.7 million tons. Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Eastern Fur-,)pc: Grain Production Plans 1982 Plan 1983 Plan Eastern Europe 104.4 110.3 63 7 8 67 . . Romania 24.0 25.3 Bulgaria 9.5 10.3 Hungary 14.2 14.5 Yugoslavia 16.0a 17.7a Northern countries 40.7 Poland 1 9 . 7 21 . 2 Czechoslovakia 11.0 11.0 East Germany 10.0 10.3 a CIA estimate. Yugoslavia announced 1982 and 1983 production plans for corn and wheat only. Our estimate of the total production plan consists of the corn and wheat plan, plus 1 million tons for other grains. Sanitized Copy Approved for Release 2010/08/02: CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Eastern Europe: (rain Tmportsa Million Metric Tons 1979/80 19 80/81 198 1 /82 1982/93 1PR3/R4h 17.50 15 .66 12 .36 7.80 7.7-1.n Southern countries 3.86 3 .82 3 .53 0.95 1.7-2.1 Romania 1.63 2 .15 1 .18 0.32 0.8-0.9 Bulgaria 0.82 0 .85 0 .72 0.33 0.4-0.5 Hungary 0.14 0 .15 0 .18 0.12 n.1-o.2 Yugoslavia 1.27 0 .67 1 .45 0.18 0.4-0.5 Northern countries 13.64 11 .84 8 .83 6.85 6.0-6.9 Poland 7.75 8 .16 4 .71 4.n 3.0-3.3 Czechoslovakia 1.87 0 .67 1 .37 0.65 20 2 0.5-0.6 0 5-3 2 Fast Germany 4.02 3 .01 2 .75 . . . a Marketing year 1 July to 30 June. Import data for r all marketing years, except 198304, are from the Foreign Agricultural Service, r1SnA. b CIA's estimate is based upon our projection of the countries' needs and ability to finance grain purchases. 25X1 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Tahle 4 Eastern Europe: Grain Exports" Mi llion Met ric Tons 1979/80 1900/81 1981 /82 19 82/R3 lgn3/84h Eastern Europe 2.93 4.58 4. 22 5.43 3.14-3.90 Southern countries 3.54 4.11 3. 82 5.03 2.05-3.50 Romania 1.25 1.75 1. 70 1.75 1.00-1.20 Su lgaria 0.60 0.40 0. 79 1.10 0.09-0.1n Hungary 0.49 1.55 1. 05 1.19 0.00-0.90 Yugoslavia 0.2n 0.41 0. 28 1.nn l.nn-1.3n Northern countries 0.39 n.47 0. 40 O.,in 9.2n-0.4n Poland 0 n,ni; 0. 02 n.n1 n.0-n.05 Czechoslovakia 0.01 n.04 0. 05 0.05 n n.na-n.n 0 30 n 25 East Germany 0.38 n.37 0. 33 .32 . . - a Marketing year 1 July to 30 June. Expert rlata for all marketing years, except 1 -1 1983/84, are from the Foreign Agricultural Service, USDA. b CIA estimate. 25X1 25X1 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3 Eastern Europe: Estimated Grain Production, Imports and Availability, MY 10R3/44 Million "lntric Tnns Production Imports Availability Availability Change In Avai1?-i!-Hi1ity 1983 1983/84a 1983/94h 1982/83 1983/84 - 1982/P3 Eastern Europec 97.4 8.35 106.4 109.8 Southern countries 55.0 1.90 57.7 61.4 -3.7 Romania 17.6 0.85 18.5 20.0 -l., Bulgaria 7.5 0.45 8.0 8.9 -n.e Hungary 12.9 0.15 13.A 14.9 -1.3 Yugoslavia 17.0 0.45 17.6 17.6 n Northern countries 42.4 6.45 48.7 48.4 Poland 21.6 3.15 24.7 25.2 Czechoslovakia 10.8 0.55 11.3 11.0 East Germany 10.0 2.75 12.7 12.2 0.1 -0. 5 0.- 0. 5 a Figures are based on mid-point of our estimated range of imports given in Table 3. b Available for domestic consumption or export. Availability equals production plus imports and beginning stocks in Hungary (500,000 tons) and Yugoslavia (100,000 tons). Because the bulk of the East European grain harvests occurs between 1 July and 31 necemher, annual production falls within the trade year 1 July and 30 June. The two may he added to give an approximation of grain availability for a common period--MY 1 July to 30 Jun-. C Totals may not add due to rounding. 25X1 25X1 Sanitized Copy Approved for Release 2010/08/02 : CIA-RDP85T00287R000700010003-3