TOBACCO COOPERATIVES IN BULGARIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600340406-3
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 16, 2011
• Sequence Number: 406
• Publication Date: September 12, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/17: CIA-RDP80-00809A000600340406-3
COUNTRY
SUBJECT
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
INFORMATION FRAM:
4PR fi;!QTS CD NO.
FOREIGN D000MENq'6 QR RAI 4A
CENTRAL INTELLIGENCE AGCY.... REPORT
CLASSIFICATION RESTRICTED RESTRICTED
Bulgaria
Economic - Agriculture, tobacco
Monthly periodical
Ankara
Mar 1950
-.
of no UNITIES STATUS llTnu .na ..???^_ -? -- --
1, S. C., III AND St. Al ANEROID. lil TSANSUISEIOl Ol TMl ll7luT1Ol
NOOUCTION OF THIS FORK Of F%OMI1AITto. It PRO'
N',:TS NY LAW. INIANT TO An
DATE OF
INFORMATION 1950
DATE DIST. ,;,Sep 1950
NO. OF PAGES 3
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
TOBACCO COOPERATIVES IN BULGARIA
The first-tobacco cooperatives in Bulgaria were established in the years
following World War I when'Bulgaris.n tobacco began to be- in demand nfthe
world marker ., At the time middlemen were -obtaining a large-p the
profits; and it-was decided-to establish tobacco cooperatives for tue.purpose
of completely eliminating the middleman in tobacco trade and confining all
profits to tobacco producers. The first tobacco cooperati-ves swestablished
in 1915 in Asenovgrad (Stanimaka). By 1933 76 more cooperatives
lished. However, many of these have now merged or have suspended activity
because they were in areas not suited to growing tobacco. In 1944 the number
of cooperatives financed by the Bulgarian Agriculture and Cooperatives Bank
was 19.
The chief aims followed in the establishment of tobacco cooperatives are
the following:
1. To unite tobacco producers in the area where the cooperative has
been established, to assemble the tobacco produced by them in exchange for ad-
vances,up to a maximum of 80 percent of current market prices, to collect this
tobacco in cooperative depo',s, to process it and maintain its good qualities,
and to sell it in a processed or nonprocessed state on foreign and inta_..a
markets on behalf of the producers.
2. To aid in procurement of the necessary means for fighting tobacco
diseases and field insects.
3. To improve and spread tobacco culture and to support materially and
morally state and'other institutions which are endeavoring to ensure a demand
for Bulgarian tobacco on the foreign market.
4. To establish and help experimental tobacco nurseries.
5. To attempt to develop tobacco production in the country by means of
publications, conferences, and demonstrations (exhibitions, fairs, etc.)
STAYS MAW NSRB
ARMY 1118 FBI
RESTRICTED
-RESTRICTED
Wont
77 -1 J
Sanitized Copy Approved for Release 2011/08/17: CIA-RDP80-00809A000600340406-3
 Sanitized Copy Approved for Release 2011/08/17: CIA-RDP80-00809A000600340406-3
REST," E
6.- To insure the members' tobacco crops against natural disasters such as
floods anc hail.
7? To give courses on proper harvesting, drying, and processing of tobac-
co, or to participate in these operations with the members and to secure the
sacks, nails, and other materials necessary in these operations.
8. To participate in the establishment of cooperative, cigarette and other
tobacco product factories.
9.. To create bureaus which will aid members in the event of accident,
disaster, old age, and other similar situations.
10. To endeavor -to aid the intellectual and cultural development of the
members,
Tobacco growers who are members of the tobacco cooperatives are obliged to
turn over to the cooperative warehouse all of their yearly crop. The cooperative
cannot accept poor-quality tobacco; accordingly, it attempts to have every mem-
ber grow good-quality tobacco. Only farmers concerned with growing tobacco in
the area of the cooperative can become members. Growers who do not plant to-
bacco for 3 successive years or who do not turn. over to the cooperative ware-
house the tobacco they have obtained from 2 years crops are expelled from the
membership.
The administrative organs of the tobacco cooperative are the general as-
sembly, the board of directors, and a director who administers cooperative af-
fairs within the framework of the decisions and directives of these councils.
There are also comptrollers who supervise the board of directors.
Of the annual net profits of the cooperatives, 50 percent is set aside for
a reserve fund, 1C percent for a fund for enterprises to serve the common in-
terest, and 20 percent for a cooperative warehouse fund. The remaining 20 per-
cent is returned to members who have fulfilled their commitments, depending
upon the amount and quality of the tobacco they have delivered to the coopera-
tive warehouse.
In 1937 the active tobacco cooperatives had 13,668 members. In the same
year the assets of these cooperatives .:ere., subscription capital 34,950,459
leva, funds on hand, 63,926,731 leva, fixed assets 87,339,060 leva, total
185,816,250 leva.. (At that time 66 leva equalled one Turkish lira.)
In 1945 the tobacco cooperatives were organized into a union of tobacco co-
operatives with headquarters in Sofia. This union has established two tobacco
factories, one in Sofia and the other in Aeenovgrad. The daily capacity of these
factories is '.out 500 kilograms. In 1944 the tobacco cooperatives belonging
to this union collected and processed 7,691,690 kilograms of tobacco.
All credit needs of the tobacco cooperatives are met by the Bulgarian Agri-
culture and Cooperatives Bank. Advances are given to producers while the to-
bacco is still in the curing stage, and final credits are distributed after the
crop has been delivered to the cooperative warehouse. These bank loans are cal-
culated on the price which will be obtained from the tobacco sales on the do-
mestic and foreign markets. The remainder is distributed to the producers after
warehouse, processing, and other expenses have been deducted. The bank also
makes loans for the purchase of necessary equipment. In 1943 the bank advanced
103,800,000 leva for the tobacco crop and in 1944 115,500,000 leva. On the
basis of these figures, tobacco is second only to grain in respect to agricul-
tural indebtedness.
Sanitized Copy Approved for Release 2011/08/17: CIA-RDP80-00809A000600340406-3
 Sanitized Copy Approved for Release 2011/08/17: CIA-RDP80-00809A000600340406-3
RESTRICTED
The tobacco cooperatives which are rather wealthy, are under the supervi-
s
sion and control of the Agriculture and Cooperatives Banks. This control
accomplished by means of the bank's inspectors and, since 1925, by members
a staff of tobacco experts which was created in the office of the director
general of the bank. The tobacco experts constantly supervise the pr,
crop from the time it is planted to its cutting, drying,
packaging and inspection. They are also charged with working to develop to-
bacco culture, and with following the tobacco markets. As a result of the
work of these tobacco experts, who have gradually been appointed to all to-
bacco cooperatives, the cooperatives have made important gains from a tech-
nical standpoint.
In tobacco-growing areas where, for financial or other reasons, tobacco
cooperatives have not yet been established, the Bulgarian Agriculture and Co-
operatives Bank has established bank tobacco warehouses. These warehouses a
also store, and collect it. One percent of theemoneygobtained fromethese tobacco
sales is set aside for a tobacco fund. The purpose of this fund is to im-
prove tobacco culture and to find suitable markets. Although the warehouses
are administered by the bank's tobacco experts, their salaries and the sal-
aries of technical and administrative personnel appointed by the bank are
paid by the tobacco producers. In 1944 there were 15 of these bank tobacco
warehouses, the chief one being in the Rhodope area. Bank warehouses are
abolished whenever a tobacco cooperative is established in a given area.
RESTRICTED
STAT
Sanitized Copy Approved for Release 2011/08/17: CIA-RDP80-00809A000600340406-3