SUMMARY OF THE DETAILED PRESENTATION ON POLISH AGRICULTURE, FRIDAY,1 MARCH.

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CIA-RDP61S00527A000200040024-6
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RIPPUB
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S
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13
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November 9, 2016
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July 10, 1998
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24
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Publication Date: 
March 7, 1957
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MF
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Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 rorA VUmnryarwir fr 7 March 1957 MIM1RAW211 FOR: Assistant Director for Beseareh and. Reports SWAM: Summary of the Detailed Presentation on Polish Agriculture, Friday, 1 March. 1. The presentation was made by W. Twaahkiewiez who is the "agricul- ture" man on the Polish National Planning Commission. Zie is a very thorough bureaucrat with an unusual penchant for detail and has seemed very anxious "to please" in the course of the talks thus far. The abstract presented below follows the order of presentation by the speaker and has been expenaed to include Answers to the questione raised by the U.S. delegation, thus some repetition and lack of orgaelzation is inevitable. 2. Speaker first turned to a description of the division of the land. Eighty percent of agriculturel area is in peasant holdings, 12 percent in collectives end 8 percent in state farms. There are about 30oosrloo peasant holdings averaging about 6 hectares compared to an average peasant holding prewar of balf this land area. Poland has virtually no land reserve at present; only About 4000000 hectare..' could possibly be reclalmed and this only with large capital. eenmditure. Poland must rely epon iaereasing the intensity of her egriculture for future gains in production. 3.. Polish agricultural production increased by 19.5 percent for crops and 14.5 percent for animals from. 1949-55. Per capita agricultural pro- duction increased by only 12 percent during the same period. At the end amoomPosio. mmeormistrammomeliew Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 41141.11141eimilem VE11935sommemeas of this period do percent of available hectares were planted to grain, 17 percent to potatoes, 5 percent to industrial crops. Remainder was not identified so that it could be understood. 4. Production (1.955) per hectare was givens for grain, 3.4.3 quintals; for potatoes, 100 quintals (135 in 1954 which was more normal); 136 quintals for sugar beets. Production data were given fur certain basic agricultural products: 000 NT poo,coo head Grain 13,300 Cattle 7.9 Potatoes 27,000 Bogs 10.9 Beets 7,300 Sheep 4.2 Rape seed 151 Flax 275 Re indicated that animal product output was greater than the increase in anirala because of reductions in slaughter weight aimed to achieve a more nearly optimum slaughter weight. 5. BO also Averred that the hog-cattle ratio was too high but that plans were now laid to increase the cattle population at a higher rate. The present relationship results in loss of butter and beef for eXport and loss of manure for small farms as well as an inordinate requirement of fodder for the hog population. Mr. Iwashkiewicz stressed the fact that Poland was short of fodder, especially protein fodder. MOreover, animal production was beteg hampered by a lack of buildings for livestock. 010111111111M1MIWOME111111111m, Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 991041041100 6. The caloric intake of Poles was characterized as 32 percent from anima3. products and 68 percent from crop products. Per Capita consumption In Poland for 3.955 with the appropriate increase over prewar was given: Per Capita Ccmamian mg= Grain 166 Kilo 121 percent Meat and Animal Fats 37.7 Kilo 192 percent Milk and Milk Products 322.6 Liters 123 percent Eggs 135 Thins 135 percent Sager 23.4 Kilo 233 percent Vegetables 84 Lila 124 percent 7. The current FY? looks toward more rapid expansion of agricultural production in an effort to reduce the disproportions which have been built up by, Poland's previous emphasis on heavy industry. Gross agricultural output is expected to increase 25 percent and real agricultural wages 30 percent; crop production to increase 22 percent and animal production by 27 percent. The cattle population will increase from 7.9 to 9.9 million head, hose from 10.9 to 12.4 million head. In addition Polish agriculture must receive more fertilizer machinery and building materials. 8. Major attention will be devoted to increasing incentives to peasants and other farm labor. Price increases have been and are being initiated, eogpulsory deliveries will be reduced and more manufactured consumer goods are to be made available to the peasant. - 3 - iiiidasawarem CF i1LEL - IF Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Tormearrewe sengrenswareinms 9- Certain changes use being. made in agricultural administration. There will be an initial slow-down In the rate of organizing new collective farms. Collective farms with poor production records will be disbanded. The central government must remove itself from the internal affairs of . the peasants and. collectives. Mditiona.1 aid (money and materials) will be made available to collectives with good production records. The system of WS will be reorganized to permit additional machinery to go to the private farmer cooperatives and to secure more direct control of machinery for the collective farm. Collective farms will become increasingly special- ized. and collective processing and marketing organizations will be en- couraged. Private handicraft production in the village will again be encouraged- 10. The price paid for compulsory delivery of grain has been raised from 61 to 120 zloty per kilo. A gradual reduction in compulsory delivery will be carried out with the objective of eventually eliminating compul- sory deliveries. Compulsory deliveries will be reduced to 630,000 MT of grain far 1957, a reduction of 30 percent from 1956. To do this Poland will require 1.2 miLUon tons of grain as a reserve (3 maths) for Urban liveain consumption. W. Twashkievicz pointed out that for the early period, at least, the farmers will probably hold. back grain and that the urban bread supply must be assured. My attempt to buy withheld grain would seriously disturb prices and markets. Prices paid. for wool and raw hides alimaah041011"' sarAiligialidi4110011111Pm Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 41914110Wimills arnmniTENNOPRIMINIEN have been increased and they hope to increase the prices paid for milk and milk products. The agricultural land tax is also to be reduced in 1957. 11. The speaker characterized the most urgent needs of Polish agri- culture as the need for buildings, labor, machinery, fertilizer, drainage and electrification, which leaves little "unneeded." The government has allocated twice as much building material to the agricultural sector as in the previous year(s?), and efforts are to be made to produce building materials from local material for an additional boost to construction. He said Boland had few tractors, only .39 (13 horsepower units) per 100 hectare a for private agriculture and 1.7 for state farms. More tractors must be produced and sold to private farmers and cooperative machinery centers as well as to state farms. Poland will have to import tractors or the equipment to manufacture additional tractors. They have little in the way of planting and harvesting machinery. The Poles have never been able to build a satisfactory sprayer and need such evipment seriously. The speaker stressed the need for motors, especially electric motors, for all such equipment. Production of fertilizer is planned to increase 77 percent in 1956-60, but this will not be enough. Fertilizer is presently used almost exlusively on commercial crops, e.g. sugar beets, flax, etc. Present fertilizer applications would permit an import of one dollar in fertilizer to yield about two dollars in grain output. - 5 - ammiemem Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release.: CIA-RDP61500527A000200040024-6 fmrimrrifilmiaidE 12. The Polish:delegate emphasized the critical nature of the fodder problem. Poland must import large quantities of protein fodder to sustain her current animal population. 82,000 MT was *ported in 1956, by 1960 imports of protein supplement should reach 180,000 MT -per year. The high ratio of amall holders in Poland favors animal production and such a pro- grammust be carried out to secure an optician agricultural program. 13. To question on the statistical base, barn or biological yield, Iwashkiewioz flatly stated Poland had always used produCt harvested and in the barn. He proposed that a statement of the statistical techniques used in agriculture be prepared and be furnished to the working group deal- ing; with agricultural problems. 14. A question was raised on the long-run effect of Poland's new agri- cultural policy upon foreign trade. The Polish delegation either had not thought this one through fully or they wantedto hedge. Much quick whispered discussion came out, "they would export some commodities and import others." They thought that they would continue for several years to import about 1 million MT of grata. Even as fodder production increased, they would have to import 33-35 percent of their fodder and a higher proportion of Protein supplement such as oil seed and oil oaks. Their principal exports would be meat products and sugar. Agricultural products would Comprise only about 10 percent of their total future exports. - 6 - aertedimpaitille=m Wiliaismilui?vammemay Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 4,DIMPOROWE 4,04A Amtonnom utast %mama 15. OnMomday, March 1957, questioning on the Polish agricultural situation continued. Ma7. lwashkiewicz began by the major com, modities and volume of Polish trade in agricultural products for 1955, 1956 and plans for 1960. imports 000 MT 1956s 1955,dity Oil seeds and fats (units of pure fat)68.9 76.2 117.0 Cotton (all types of fiber) 95.0 85.0 128.0 Wool 16.6 16.0 25.0 Grain (bread and fodder) 1200.0 1100.0* 1100.0* Rice 30.0 32.0 . 100.0 * Does not include grain stock requirement for compensation of expected Shortfall from the reduction of compUlsory deliveries (1,200,000 MT). ? Exports Meat products 73.2 77.2 70.0 Bacon 118.0 Ram 13.0 Poultry 8.6 Eggs . Shell (million units) 344.0 400.0 frozen Sugar Barley Malt (Barley) (1950) 15.0 - 7 - samirmiamBEINIIIND 4." JAMOMMIAL VOM ViMai 1.9 372.0 32.0 2.7 350.0 30.0 16.0 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved Fc' Viely inIA-RDP61500527A000200040024-6 qiwrimoriftimmisor 16. Mt. Drashkieuicz then gave production, consumption (other than export) and stocks of Poland's principal agricultural products for 1955 and 1960. BO had like data for minor crops Which he thought might be better presented later in the agricultural working group. 000 fir 1222 Grain Production 13,300 Consumption (Almost all urban consumption, with limited rural purchases.) Bread 1,800 2,000 Wheat flour 3313 441 Other flour 566 661 Groats and cereals 274 366 Grain stocks po (1 Aug 56) 1,200* * 3 months' supply for the urban market in 1957. Sugar Production 980 1,350 Sugar Consumption (All types, domestic most) 493 700 Export 373 350 Sugar stocks are considered adequate. - 8 - VINVIRMIND.. selkIMMEMppeneepenip Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 IPPEREMellelEme. WIWINISIEMMEMBERIMP 000M2 L222. ? Meat Production 628 910 Domestic Consumption Fresh meat 160 300 Meat products 220 300. Export meat 73.2 70 Meat Stocks Only enough to assure the market supply In non-slaughter season. Butter Production Butter stocks Consumption of oils and fats Domestic edible fats Soaps " 9 61.o 95.9 1.6 (mast be higher than 1956) (1958) 127.0 180.0 (1960) 52.0 66.0 (1958) 38.0 62.0 Saiakanlimeen ?61.8111.1PENERMIraltrf Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Several major problems exist in the area of fats and oils. 1) Poland must increase its production and import of oil seeds and decrease Imports of refined oils. 2) Poland must increase use of oil for margerine and reduce domestic use of butter, then export the butter to got foreign exchange. 3) Poland must increase the use of vegetable oils in soap making and increase the production of detergents so as to reduce the required imports of oil aid their cost to the minimum practicable level. 17. To a questimq on internal prices for agricultural prices, /washkiewicz produced four pages of commodities with their procurement and retail prices. 2hese data were to be given to thell.S. side in the agriculture working group which is headed by Mt. Gordon Frazier, Mr. Gus Burmeister is the Agriculture representative on the U.S. Delegation. 18. A long hypotheticalTJ.S. question was raised dealing with the extraordinary success of Polish agriculture based upon the "impression" Polish statistics would give you if not carefully analyzed. Iwashkiewiez was quick to alloy the impression other than for the real gains achieved which are quite limited except in animal production. Gross agricultural production in Poland had increased only 8.7 percent over 1938 by 19,6 rather than the 15-.20 percent which might be teemed from piecing to- gether announcements. Crop production has increased only 3.1 percent in the same period of time. Grain production is almost equal to 1938, - 10 - 41ellealellielnellellei Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release ? CIA-RDP61500527A000200040024-6 12.6 million tons in 1938 and 12.7 million toes in 1956. There are, how- ever, maay fewer Nags to feed so that per capita production has increased sharply, about 30 percent over the same period. The apparent improvement of the grain position has been mitigated by the rapid increase in animal production. Hoge increased from 7.5 million in 1938 to 11.6 million in 1956. Although the slaughter weight of bogs has been reduced it still requires 250-300 kilo of grain to bring a hog to slaughter weight. He added that putting the grain (even the feeding of a good deal of more expensive bread grains) Into animals gave Poland much more foreign exchange than would the export of the greia. 19. Questioned about the possible necessity to add storage oapacity to carry over the additional 1.2 million ton stock for urban consumption, the Poles indicated that their present storage would cover them. They have 1.5 million tons of storage capacity in processing centers and an additional 400,000 tons of storage capacity at procurement points. U.S. agricultural representatives thought that should they succeed in buying the grain stock they're negotiating for that much of it might be stored abroad and moved in as needed. / would add that the purpose of the stock (to guard against farmer's withholding grain after reduction of compulsory delivery) maybe dissolved by the very act of accumulation of the stock. When the farmer finds that there is no shortage and prices fail to rise, saw of the hoarders will probably move their grain to market at the State's price. - 1/ - 4WiEsaimPaimi G116721231111Waikaniki Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release: CIA-RDP61500527A000200040024-6 allitriffiMMMIW/111110111111? 20. Production data were given for cotton textiles for 1955 and 60. Cotton textiles - Running meters 558,000 Sqpare meters 487,000 681,000 600,000 Poland exports about 10 percent of its total production of textiles, most of the export to Bloc countries, none to the United States. The Polish Delegation will prepare for the As. Working Group, a breakdown of these exports by country. 21. TO a question on the agricultural labor force, Ivashkiewicz indi- cated that they may have to increase their agricultural labor force to meet the terms of the 1960 plan, but certainly no reduction is planned at present. As the labor force increases rapidly at present, this situation maybe expected to produce a decline in the share of gainfully employed Jedividuals in agriculture. 22. Ie dizeussing the above labor force question, Iwashkiewicz men- tioned that labor force neMbers and allocations do not play a large part in the five year term planning. He said that the Planning Commission was "working (drafting) on a long-term, 20 year, plan" which is modeled very closely on Changes in the labor force and on developing a detailed system 12 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6 EPOPMERIMPOIIIMINI of allocation of the labor force. Re emphasized that the 20-year plan was largely developed from labor force data although the five-year plan was largely developed fraa specific production targets. There would be a meshing of the two planning systems presumably in the translation of the long-term plan into five-year plans.. 25X1A9a Office of Research and Reports - 13 - Sanitized - Approved For Release : CIA-RDP61500527A000200040024-6