APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 SECRET 26 GS E U S S R April 1974 NATIONAL INTELLIGENCE SURVEY SECRET APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 NATIONAL INTELLIGENCE SURVEY PUBLICATIONS The basic unit of the NIS is the General Survey which is now published in a bound-by-chapter format so that topics of greater perishability can be updated on an individual basis These chapters-Country Profile The Society Governmf'nt nd Politics The Economy Military Geography Transportation and Telecommunications Armed Forces Science and Intelligence and Security provide the primary NIS coverage Some chapters particularly Science and Intelligence and Security that are not pertinent to all countries are produced selectively For small countries requiring only minimal 1'115 treatment the General Survey coverage may be bound into one volume Supplementing the General Survey is the NIS Basic 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government or international body except by specific authorization of the Director of Central Intelligence in accordance with the provisions of National Security Council Intelligence Directive No 1 for NIS containing unclassified material however the portions so marked may be made available for official purposes to foreign nationals and nongovernmerat personnel provided no attribution is made 1 ' National Intelligence or the National Intelligence Survey Subsections and graphics are individually classified accordin to content Classification control designations art U Ol Unclassified For Official Use Only q Confidential S Secret APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 This chapter was prepared for the NIS by the Central Intelli1eace Agency Research was mbstantially completed by November 1973 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 U S S R CONTENTS ThlJ chapter supcr edei the econo tc COl t'r• age in the Gmeral SV n t'I daled March 1971 A Gene 'al 1 Introduction 2 Resourc e position 3 Economic growth 4 International cconom relations B Economic policy and de elopment 1 Goals and policy 2 3 4 5 1 1 2 4 6 7 7 Economic adminisi ration and control 8 Manpower IO a Size and composition of the labor force 10 b Factors affecting productivity 11 Finance 12 Development 14 a Planning 14 b The 1971-75 plan 14 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 Page Page 2 Defense production 3 Civilian pi oduction a Capital goods b Shipbuilding c Civilian motor vehicles c Chemicals and allied products d Textiles and wearing apparel 1 General 2 Production e Food processing 1 Procurement and distribution 2 Production C Structure of the economy 18 1 Agriculture fisheries and forestry 18 a Problems and policies in agriculture b Main characteristics of Soviet agriculture 1 Land use 2 Resource base 3 Fann organization 4 Crops 5 Livestock and livestock food products 6 Natural fibers c Fisheries d Adequacy of food supply and diet e Forest resources and products 2 Fuels and power a Primary energy b Coal c Petroleum d Electric power · 3 Minerals and metals a Minerals 1 Iron ore 2 Ferroali ing materials 3 Nonferrous ores b Metals 1 Ferrous metals 2 Nonferrous metals 4 Manufacturing a General b Machinery equipment and fabricated metal products 1 Competition between military and civilian production 18 19 19 19 20 20 23 24 24 24 25 26 26 27 27 33 33 34 36 36 42 43 46 46 46 47 47 47 5 Construction and construction materials 48 a Construction 48 b Construction materials 49 6 Domestic trade 49 50 a Producer goods b Consumer goods 1 State-controlled stores a State stores b Cooperative stores 2 Collective farm markets c Illegal activities 29 31 31 31 32 32 38 39 39 42 50 50 50 51 51 51 51 1 Introduction 51 D International economic relations 2 Foreign trade organization and control 51 3 Geographic distribution of foreign trade 52 4 Commodity composition of foreign trade 53 36 5 Exchange rate and international pay- 37 6 Soviet foreign aid 55 ments position 54 FIGURES Page Page Fig I Fig 2 Fig 3 Strategic supply position table Indicators of economic growth table Industrial output and factor productivity chart Fig 4 · Gross National Product by end use U S and U S S R chart Fig 5 Gross National Product U S and U S S R chart Fig 6 U S and U S S R per capita production table 3 4 Fig 7 6 Fig Fig Fig Fig Fig Fig 6 Fig 14 5 5 8 9 10 11 12 13 Civilian employment by sector TJ S and U S S R chart Labor productivity chart Changes in labor productivity table State budget 1973 plan chart Indicators of the 1971-75 plan table Sown area by crop table Grain production U S and U S S R chart Crop production and yields table Ii APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 11 11 11 13 17 21 21 22 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 Page Fig 15 Livestock numbers table 22 Fig 16 Food production table 23 Fig 17 Average diets U S and U S S R chart 25 Fig 18 Production of primary energy table 26 Fig 19 Production of fuels table 28 Fig 20 Production of petroleum products table 28 Fig 21 Production of iron ore and ferroalloying materials table 32 Fig 22 Pig iron and steel production table 33 Fig 23 Supplies of principal nonferrous metals chart 35 Fig 24 Production of principal nonferrous metals table 35 Fig 25 Distribution of manufacturing chart 36 Fig 26 Growth in manufacturing branches table 37 Page Fig 27 Growth of machine building and metalworking table Fig 28 Distribution of machinery production chart Fig 29 Production of capital goods and consumer durables table Fig 30 Merchant shipbuilding table Fig 31 Production of basic chemicals table Fig 32 Production of textiles and wearing apparel table Fig 33 Contract construction table Fig 34 Production of construction materials table Fig 35 Retail sales table Fig 36 Value of foreign trade table Fig 37 Main trading partners chart Fig 38 Commodity composition of foreign trade table 38 38 40 42 44 47 49 50 50 52 52 54 iii APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 C Structure of the economy I Agriculture fisheries and forestry U OU a Problems and Policies in Agriculture Agriculture is the most seriou abiding and intractahle problem area of the Soviet economy Even in years of bumper harvests Soviet farms have nut produced as much food as desired or in the vari' 'ty and quality demanded hy the consumer In particular only a fraction of the demand for meat fruit and most vegetables has been met forcing the Soviet diet to be heavily weighted with bread products 11 11d carbohydrates such as potatoes Production has fluctuated widely moreover with serious shortfalls often following good harvests Most of the leading agricultural - m as are handicapped by short growing seasons low rainfall and extremes of temperature In addition the regime's insistence on controlling and directing farm operations from above and its failure to provide both adequate incentives and sufficient supplies adversely affect the productivity of the nation's farmers Developments in agriculture under Khrushchev illustrate how swings in policy together with sharp variations in weatLer created an unstabk situation in food production During 1953-58 the regime accorded substantially higher priority to agriculture resulting in increased allocations of machinery to the farms as well as numerous incentive measures such as a sharp rise in real income to induc -c Soviet farmers to work longer and harder Khrushchev's campaign to develop virgin and long-fallowed lands also c ·ontributed to an almost 50% increase in farm outp11t After 1958 however the failure to sustain these policies led to a drastic slowdown in the growth of farm output Farm r oduction and incomes stagnated during the early l960's and Khrushchev's plans for expanding sown acreage were not attained Continuous cropping in the new lands resulted in the deterioration of the oil structure severe infestations of weeds erosion and a depletion of soil moisture reserves When combined with extensive droughts in 1963 and 1965 ihesc policies led to a decline in the grain harvest and 11 million tons of grain had lo be imported lo maintain food supplies at a barely adequate level In March 1965 the Brezhnev-Kosygin leadership unveiled a far-reaching program for accelerating the growth of agricultural output and for reducing the annual fluctuations in yields The program for 196670 included a doubling of investment in agriculture compared with the period 1961-65 higher prices to producers for major agricultural products and lower prices for nonagricultural goods sold to the farms The new regime also proposed a reduction in the party·s interference in farming operalio1 s Generally successful implementation of these policies and an extended period of favorable weather led to an increase of more than one-fifth in agricultural output during 1966-68 compared with farm production during the last 3 years of Khrushchev's regime 196264 As with Khrushchev however the early success of the Brezhnev program led to a considerable weakening of the farm sector's priority in subsequent years The rapid increase planned in the supply of industrial products to agriculture did not occur The original plan for deliveries of im· tment goods tractors trucks and other agricu rnral machinery and industrially produced materials fertilizers lubricants electricity and the like was cut back in 1967-69 but l'ven these reduced plans were not met with the exception of fertilizer In 1970 the last year of the first Brezhnev program nonagricultural inputs rose by almost 2 5% or as much as the total increase achieved during 1967-69 This growth in the resource base in 1970 coupled with generally favorable we ither boosted net farm output to a record level Despite the shortfall in deliveries of tractors and other agricultural machinery lo the farms during 196670 the U S S R has achieved a fairly high level of mechanization in such husic field operntior J as the plowinr seeding cultivation and harvesting of grain crops Raising the level of mechanization in other operations particularly in the livestock sector has received special emphasis in recent years hut progress has been slow Deliveries of new equipment have been sufficient to continue the buildup of nvt t rics of a number of major items although the rate was lower in the early 1970' tha11 a decade earlier For certain other categories in- entories have declined because of insufficient output or production delays as new models were introduced Inventories in selected years of the more important agricultural machines arc as follows in thousands of units as of l January 1961 Tractors · 1 122 Trucks 778 Crain combines 497 Ensilage combines 121 Beet combines 34 Potato combines 10 Cotton pickers 11 Windrowers ' ' 281 Tractor plows 782 Tractor· drills 1 049 Crain cleaning macl es 95 18 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 1986 ' 13 1 52 52 205 68 24 34 401 960 1 274 129 1972 2 046 1 243 639 149 56 40 40 327 942 1 218 156 APPROYED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 A major factor contributing to the inefficient utili1 ation of equipment and the conscque11t high c osts of production in Soviet agriculture is the poor stall• of maintenanc1• and repair work Moreover spare parts are in short supply highly prit ed and often of poor 1111ality During 1966-70 the production of spar ' parts for tmctms and agricultural machinery was only almut 80% of officially estimated requirements improvement in the supply of parts in D71-72 was marginal at best Deliveries of fertilizer to agric lture were scheduled to reach 55 million tons in W70 more tlmn double the quantity supplied in 1965 hut th 'y amounted lo only 46 milliiJn tons hccuuse the introduction of new fertilizer munufacturing capacity during 1966-70 was suhstantially behind schedule The plan for 1971-75 calls for an int·rcasc of 40 million tuns in fertilizer production capacity if the target for 1973 is ml'I ulmost half of this goal will have been achieved Even before the results of the 1970 l 1rvcst were known it was clear that the regime was eoncerned over tlw situation in the agricultural st•ctor The Second Five Year program for improving Soviet agriculture was first spdlC'd out al a party plenum in July 19 0 almost a yt•ar before the balance of the ove all l'Conomic plan for 1971-75 was announced Despite the c1JP1ccrn over food supplies however the agricultural output targets for 1971-7 ' i apprar only mo lerately ambitious Net agricultural output is slakd to incre isc by 3 7Yi ann11ally compared with avcrag • annual incrt•ments of ahoul 4 5% registered during 1966-iO The plan for additions to farm n·smlrl'l'S calls for an cstimakd incr ·asc of IO r hetwt•t•n HJiO and 19i 5 with a marked emphasis on industrially produced items As a rrsult the capacity in selected branches of industry is to he expanded to provide the flow of producer durables construction materials agricultural chl'micak mid other products necessary to support high1 r levds of direct invcstnwnt in a i riculturc The hi i hlights of the new program are as follows I lnve tment In agriculture is scheduled to grow an nv ragt of 9 5% a year nnd to rise as a share of total inveshnent from 23 5% in 1970 to 27 5% in 1975 2 Total investment in fnrm 1a1achiner ' and equipment Is projected to Increase 54% over the value of such deliveries in the last half of the 1960's 3 About me-fifth of total investment in agriculture i to be expended on land amelioration largely for reclamation by irrigation 111 d dra nage This will expnnd the stock of irrigated and drained land by about 30% 4 Inclustrial items used in farm production arc p nnned to rise at an average annual rate of 6 5% during 1971-75 Althou i h certain aspects of the program W 're slightly hchind schedule of mid-1973 important stq s were taken in 19il and 1972 to implement the 1971-75 plan Total inputs in reasl'd at an average annual rate of ahout 2% or slightly ahove the growth required to meet the 1975 goal Hence despite the urge in output in 1970-aj ricultural production rose I 3 5S'r over 1969-followed by another record output in 1971 the re ime has remained firm in its resour •e commitir ent lo the agr cultural sector Farm output in 1972 declined by about 71Jf from the high level of 1971 largely as a result of unfavorable weather conditions The difference in the regime's response to harvest disasters in 1963 and 1972 graphically illustrates a fundamental shift in the leadership's agricultural policy In the earlier year Khrushchev minimized his foreign commitment choosing instead to allow consumers to suffer and livestock herds to lw reduced sharply In 1972 thPBrezhnev-Kosygin regime chose to spend vast sums on foreign grain 28 million tons in the period 1972-first half 1973i in a rnccessful effort to save herds and maintain fond supplies Moreover continued adherence by the leadership to developinj the livestock sector means that the U S S R probably will become a net importer of feed grains in the year alwacl b Main characteristics of Soviet agriculture l Land ttse- The U S S R is the largest country in the world with a totaflancl area of 8 6 million square milt•s About one-half of Europe and one-third of Asia lie within Soviet boundaries Of the total land area however only about 11 % is suitable for cropping see the Land Use in et on the Summary Map at the end of this chapter Another 16% can he used only for meadows and pastures because of poor soil or low precipitation Mori' than two-thirds of the U S S R is comprised of forests deserts and wasteland Much of the latter is suitable for limited grazing of livestock ranging from raising reindeer in the north to nomadic herding of sheep and goats in the arid regions of the south 2 Resource base-The U S S R has more than twice the land area of the United States bi t its arable is onlv a third larger The Soviet Union 111Mcover has no ar as that correspond to the most productive farm regions in the United States which until recently had hccn redu ing the area under cultivation In 1971 the sown area in the U S S R amounted to 512 million acres compared with the 301 million acres in the United States 19 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 Harsh climatic conditions impose severe restrictions on Soviet agriculture The basic environml•ntul problems are low temperature and excess soil moisture in the north comhirll'd with unusual heat 111d aridity in the south The short growing season and the extremes of temperature limit the types of crops that can he rown even in the critical fertile triangle ' of Soviet agriculture extending from the Ukraine eastward nearly to Irkutsk 3 Farm organization-Soviet agriculture is divided into a socialized sector which predominates and a private sector The former consisting primarily of state and collective farms accounts for roughly twothirds of the total agricultural output The private sPctor consists of about 30 million m 111 private plots one of the last legal remnants of private enterprise in the U S S R As all land is owned hy the state the hu ic difference between these two types of org nization lies in the ownership of assets other than lam in the method of capital formation in the payment for lahor and in till' system of marketing agric11lt11rnl produce Bl'twcen IH58 and l9il the number of slate farms increased from j 002 to 15 502 and the numher of collectiw farms dl'clincd by m re than half-from ii i00 to 32 300-partly through the amalgamation of snmllcr collective farms and partly through co11versio11 to state farms As the following tabulation shows hy W7 I state forms and other state-owned agricultural enterprises accounted for half of the total sown ar •a iu Ill ' U S S R 1958 PERCENT MILLIOS PERCENT ACRES OF TOTAL ACRES OF TOTAL Socinli1 d sector StP e agriculture State forms Other state agricultural organi zalions Collective farms Private Total 1971 MILUOS 465 3 140 6 129 6 96 3 29 1 26 8 495 7 256 4 233 3 96 8 50 1 45 6 4 5 46 8 100 0 11 0 324 7 18 1 67 2 3 1 23 1 239 3 16 5 463 4 100 0 512 2 2 3 3 2 Small-seal ' private forming 1111 plots avrraging little more than an aere in size has hcen tolerated hy the rq inw for pragmatic rcasous dcsj Jite the ideological contrndiction inherent in this capitalistic activity In 197 l private farr11ing supplied 63% of the potatnl's half of the eggs 37% of th • vegetables and 35% of thl' milk and meat produced The privutc plots howcvl'r tend to compete with thl' socialized sector for feed supplies and for the lahor of the farmers consequt•ntly then• have· he 'll periodic attempts hy the stall' In decrease the importance of the private sector through discriminatory taxes and rcductitm in the size of plots and the number of animals permith•d Nevertheless the fact remains that almost 30 1 of total agricultural output originates in the private sector which directly holds only slightly more than 3% of the total sown area The private sector however has access to some land controlled hv the socialized sector and uses it for pasturing privatc1 owned livestock and growing hay If the area in the socialized sector that directly or indirectly produces foeclstuffs for the private sector is added to the relatively small amount of land dircctlv held bv households the land area supporting priv te farmi l equals roughly one-fifth of the country's total urable land 4 Crops-The U S S R grows most crops common to the temperate zone hut grains dominate the pattern accounting for 5i% of the total sown area in l9il In the same year forage crops accounted for 31 % of the total industrial crops 7% and potatoes and other vegetables 5% Figure 12 The total crop area has expanded significantly since 1950 with most of this growth attrihutahlc to the New Lands program larg ly in Kazakhstan In 1950-63 a drastic reduction of clean following from i9 l million acres to '5 6 million acres aided this expansion By 1968 the area in cbm follow had increased to its present level of 45 0 million acres although it declined again to 40 0 million acres in l9i2 As a result the regime has been unahle to raise this figure to u planned amount of almul 50 million acres because of the country's eon tin uing critical need for grain In clean fallowing the land is not planted and is cultivated only as needed to prevent the growth of weeds this permits moisture and nutrient accumulation in the soil to raise crop yields in the following year The distribution of area sown to major grain crops including pulses for 195 '3 and l9i2 is shown in the following tahulation as percentages of the total Bread grains Wheat Rye Total Other grains Barley ' Com ' ' ' ' Miscellaneous•• Total 1972• 45 3 19 0 48 1 6 8 64 3 55 5 9 0 3 3 23 4 22 1 3 3 18 5 35 1 Total groins ' 1953 -100 0 44 5 -100 0 • Preliminary estimates ••Primarily pulses beans peas lentils oats millet buckwheat and rice 20 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 FIGURE 12 Sown area by crop U OU Million acre 1950 Total ar a 1955 P rcent• Grain including pulses Industrial crops•• Potatoes and other vegetables Forage cropsu• 254 2 30 2 25 8 51 3 70 S Total • ······ 361 5 Total area 1960 Percent• 66 4 6 6 7 1 14 2 305 0 30 4 28 3 95 5 100 0 459 2 8 4 Total area 1 0 8 285 5 32 3 27 7 156 1 100 0 501 6 6 J 1965 Percent• Total area 1 171 Percent• Total area Percent• SJ I 316 4 37 9 26 1 136 3 61 J 7 8 5 1 1 6 4 291 4 35 2 24 5 161 1 4 8 31 4 100 0 516 7 100 0 512 2 100 0 57 0 6 4 5 5 56 9 6 9 •Based on unrounded data Includes food crops primarily sugar beets and sunflower seed and nonfood crops primarily cotton fiber flax and hemp •••Cultivated annual and perennial crops supplying hay silage pasture and other feeds of a similar nutrient content Although the area sown tu j rain in thl• Soviet Union is greater than in the United Stutes total production is much lower in the U S S R Figure 13 Soviet grain production moreover is subject to murkecl flut'luations The 1958 level of output was not matched until H 6-t and not surpassed until 19fi6 in I 9fi3 and H 65 severe droughts resulted in nearly disastrous harvests The bumper j rain harvest in 1968 howl Ver ranked second only to the 1900 level of prod Jclion until both were surpassed by record crops in 19i0 and 1971 The shortfalls in 1969 and IH72 were caused by above normal winter-kill of winter grains followed hy unusually cool and wet growing and harvesting seasons in Hlfi9 und by a severe drought in European U S S R in 1972 Data for the average annuul production und yields of principal crops arc shown in Figure 14 After wheat und rye potatoes constitute the most important Soviet food crop especially in the western and ccntml regions of the European U S S R Since 19 i0 however the urea planted tu potatoes has been fulling In 1972 19 8 million acres were devoted to Millions of Metric Tons 1958 1962 1963 - 19 4 1965 1966 '' S S R U S official stimates 1968 1967 • 19 9 197D lffl 1972 11ted Slates FIGURE 13 Comparison of U S and U S S R grain production U OIJ 21 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 FIGURE 14 Average amual production and yields of principal crops U OU 1956-60 1966-70 1961-65 1971-72 ------ - - M ii ion metric Ions - Production • Total grain and pulses • • Br· grain whaat and rye Other grain barl •y corn oats pulses millet rice bu ikwheat and miscellaneous • • • Sugar beets • Sunflower seed • • Potatoes • • Other vegetables • ----- 104 7 71 3 106 1 64 5 135 0 83 1 141 2 83 9 32 4 45 6 3 4 88 3 15 1 41 6 59 2 4 7 81 6 16 9 51 9 81 1 5 9 94 8 19 5 57 3 73 9 4 9 85 2 20 0 ------Yields •• Total grain and pulses Breau grain Other grain • Sugar beets • • Sunflower seed Potatoes • • Other vegetables • ·- M elric Ions per acre 0 35 0 35 0 36 7 43 0 34 3 79 4 08 0 34 0 32 0 37 6 66 0 42 3 82 4 69 0 45 J 43 0 48 9 22 0 49 4 66 5 35 ------0 48 0 49 0 48 8 84 0 44 4 35 5 06 •Figures for grain crops an sunflower seed are U S official estimates all other production data are given as officially reported by the U S S R ••Average annual yields based on ofricial Soviet data on the sown area for the respective crops potato production more than 6% less than in 1950 Although yields have increased moderately the average anmml production of potatoes in 1961-72 was only 10% greater than the average during the preceding decade In part the small increase was the result of adverse weather during 1972 which C' 1llscd a record dedinc of 16% in the output of potatoes Tlie principal industrial food crops arc sunflower seed and sugar heels The main industrial nonfood crops-cotton and fiber flax-arc treated below undl r natural fibers Of the 35 6 million acres sown tu industrial crops in 1972 sunflower seed accounted for about 30% and sugar beets exclusive of sugar beets sown for livestock feed claimed 24% Oil from sunflower seed is the basic edible vegetable oil used in the U S S R accounting for roughly three-fourths of the ve etahlc oil proclucecl in state industrial enterprises The acreage planted to sunflowers expanded rapidly after 1963 reaching a peak of 12 4 million acres in 1966 before declining to 10 8 million acres in 1972 This reduction has been offset partially l y higher yields attributable in part to the development of new varieties with a higher oil content The U S S R is the world's leading producer of sugar 11ccts producing more than one-third of the global output or roughly three times as much as the United States the second largest producer Expansion of sown area and improving yields resulted in an upward trend in sugar beet production until 1968 but reduced plantings and lower yields have since cut production to less than 80% of the 1968 level FIGURE 15 Number of livestock U OU Millic ns CATl'LE INCLUD• SHEEP AND ING YEAR• 1928•• 1950 1958 1963 1964 1970 1971 1972 1973 cows 66 8 58 1 66 8 87 0 85 4 95 2 99 2 102 4 104 0 cows SWJNE 33 2 24 6 31 4 38 0 38 3 40 5 41 0 41 2 41 7 27 7 22 2 44 3 70 0 40 9 56 1 67 5 71 4 66 5 Data not available •Census date is 1 January ••Present boundaries JIii 22 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 GOATS 114 6 93 6 130 146 4 139 'I 135 8 143 4 1-15 3 144 5 HORSES 36 1 12 7 11 9 9 1 8 5 7 5 7 4 7 3 na 5 Livestock and livestock food products-Since 1950 livestock numbers often have been incr ased without regard to the available supply of feed F gu I '5 Thr total s1•pply of feed in standard feed units f one ton of oat grain averaged an estima cd 200 million metric tons per year during 1950-62 but it declined to less than 180 miliion metric ton• in 1963 and 1964 Feed supplies have trended up h1rd since 1964 however reaching a peak in 1971 when the supply of available feed units was two-fifths greater ti an in 1964 As a result total livestock herds increased moderately during this period achieving a peak level in 1971 it was nnt until 1972 however that hog numbers as well as sheep and goats were restored to the level prevailing h• forc the 19F 3 agricultural debacle Although overall livestock numbers appear unchanged in 1972 the amount of us 1ble product attained per animal of most categoric of livestock suffered because of feed shortages during the year Estimated total production of basic livestock food pn duC't is shown in Figure 16 4 Wool is trrated below under natural fibe s The greatest increases in output occurred during 1950-60 before tapering off in 1960-64 After 1964 temporary improvements in the available feed supply provided the basis for more rapid increases in the production of meat and milk The decline in meat production in the late 1960's reflected not only the decrease in livestock numbers hut also the policy of expanding depleted herds Better feed supplies permitted both output of livestock products and the number of animals to expand during 1970 and 1971 before the disastrous harvest of 1972 led to a decline in meat production during the early months of 1973 'Because a hir c portion of Soviet livestock is privately owned verification of Soviet statistics especially for th · production of meat and milk is difficult Moreover no attempt has been made to make l ie st •istics mnform to U S lcfinitio -s of pmclucts Information on the output of meat milk and oth r food products proccsS •d in state industrial enterprise is presented in Suhscrtion C 4 c FIGURE 16 Output of principal food products U OU Millions c-1 melric Ions unless olherwise indicoled ---- 1950 Livestock product s Meat• Whole milk Eggs millions of units Fish catch including marine animals Output of food industry •• Meat Beef Pork Mutton Poultry Other Milk products Butter Cheese Sugar granulated Vegetable oil Margarine and margarine compounds Canned foods billions of cans t Flour Bread and bakery products Macaroni products Beer millions of decaliters 4 9 35 3 11 7 1 8 1 6 1 0 0 3 0 2 Insig 0 I I I 0 3 0 I 2 5 0 8 0 2 1 5 22 0 12 4 0 - 130 8 1960 8 7 61 7 27 5 3 5 1965 10 0 72 6 29 1 5 8 1970 1971 1972 12 3 83 0 40 7 7 9 13 3 83 2 45 1 7 8 13 6 83 2 48 2 • 4 4 •••5 2 •• 7 I 2 0 2 4 3 5 2 2 1 4 1 8 0 4 0 4 0 4 0 2 0 2 0 4 0 5 0 5 0 7 19 7 8 3 11 7 0 7 1 0 I I 0 2 0 5 0 3 11 0 10 i 6 4 1 6 2 8 2 8 0 4 J 7 0 8 7 1 10 7 4 9 35 0 37 0 42 0 20 0 15 5 19 7 1 0 1 2 J 3 419 0 249 8 316 9 8 2 3 7 2 9 0 4 0 4 0 8 19 7 1 0 0 5 9 0 2 9 0 8 11 3 43 0 20 0 1 2 441 0 8 7 na na na na na na 20 0 1 1 0 5 8 9 2 8 na 12 0 na 20 0 na na na Data not avai able •slaughter weight including edible offal ••The sugar and margarine series cover total production The milk product s series is equivalent to state purchases of milk The butter and vegetable oil series exclude household production The meat and cheese series exclude hocsehold and collective farm production The bread and bakery products seri excludes household collective farm and industrial cooperative production The scope of the remaining series is not defined •••Figures do not add to totals because of rounding t400-gram or 353-cc cans 23 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 6 Natural fibers-The most important natural fibers produced in the U S S R arc cotton flax and wool The following tabulation shows domestic production meets pmclically all the country's n•quircmcnts fur these fibers l9il data in thousands of metric tons FLAX FIBER WOOL WASHED 2 414 Production Imports 243 41l i 0 214 2 657 Total availability Exports ' 547 Apparent consumption 2 110 485 9 300 14 286 GINNED COTrON 476 86 kilograms prr capita compared with 8 9 kilograms in 1959 Production of canned fish incr ·ascd from 200 million cans ahout 71 000 tons in 1950 to 1 500 million cans ro11ghly 500 000 tons in 1971 In addition the U S S R has become a net exporter uf fish and fish prod11cts although such ports represent only a small share of the total fish catcii Further le•1clopmenl of the fishing inch 1slry is planned during the course of the Ninth Five Year Plan for 1971-75 us shown in the following tahulation in thousand metric tons unless otherwise indicated 1970 Jo ISH PRODUCTS Imports of cotton and wool provide higher grades f fibers than arc gcner·- llf produced domestically Th Soviet Uninn also exports natural fibers predominantly to East Europe with some of the cotton shipped lo these countries returning as finished cotton goods Cotton is the leading filwr crop and principal irrigatt•d crop in the U S S R with production second only to that of the United Stutes The output of cotton more than doubled luring the period 1950-72 became of increases in the irrigated urea sown to cotton greater application of fertilizer more effective price incentives and improved production practices The U S S R produces more than two-thirds of the world output of Flax fiher even though the area planted to this crop declined from 4 2 million acres in 1962 to 3 1 million icn in 1972 Although production of wool in 1971 wus 19% above the average annual level of l96i-65 it was still inad quatc to meet the requirements of the wool textile industry Preliminary cstimult•s indicate that output in 1972 was ahout 2% below the 1971 level hccuuse the harsh winter increased mortality rules for sheep c Fisheries With a large and modern fishing fleet the U S S R ranks among the leading fishing nations of the world In 19il the Soviet Union accounted for about 10 5% of the world's fish cutch und ubout 14% of the global whale catch in tll ' 1970-71 season The total Soviet catch of fish und marine animuls amounted to 7 8 million metric tons in J9i I The catch has more than do11hl1•d since 1960 as the result of expansion of fishing on tht• high st'as '' this portion of the catch rose from about 65% of the total in I9 i0 to roughly 85% in 1971 The nvicls have relied heavily on the fishing indusiry lo increase the share of animal production in the Soviet diet In 1971 cons11mption of fish was 14 8 l'h · l ·rm hi1th m refers tu oceanic fishinl areas and thn 1•wl11d 1111' llhll'k Mc1lill'rra11t•an Cas1 ia11 Aw · and Aral S1•as ACTUAL Live and frozen fish 184 Smoked and dried fish 148 Salt herring 406 Fish and whale meal for livestock feed 393 Canned fish products million standard cans 1 405 PLAN 295 282 554 675 1 900 As competition for the world's fish resources has become more intense the U S S R has begun to participate in international programs to regulate fishing practices and conserve world fish resources As in other areas however Soviet national interests will prr dominatc and further - xaccrhation of international fishing tensions and problems can he expected The Soviets arc likely to concentrate increasingly on fishing in the waters of the Southern Hemisphere as the rich northern grounds arc depicted ' r become potential causr s of conflicts with the lcadin nonCommunist powr rs d Adequacy of food supply and diet The Soviet population consumes about 3 200 calorics per clay per capita or almost as much us average per capita consumption in the United itatcs Figure 17 The Soviet figure has not changed appreciably during the past decade but the Soviet diet has improved markedly since the curly l9 50 s although it is still deficient in terms of the share of cnlorics supplied by quality foods such as meat VC etahlcs and fruit Per capita consumption of meal fish and fats and oils has doubled since that time and sugar consumption more than tripled Conversely the share of calorics suppib l by the basic starchy foodsgrain products and potatocs--droppccl from roughly 70% in 1950 to about 52% in 1971 this share is still more than l 'icc as large as its counterpart in the United Stales Furthcr111orc the lack of any sizable area in the U S S R suitable for the winter produc tion of fruits and vegetables the shortage of refrigeration facilities and the general inadequacy of the 2-1 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0 Es lmated number of ra orier per r erson per day 3200 3320 Meat and Fish Vegetables Fruits Eqs Milk Milk Products E•cluding Butter Sugar Fats Oils Grain Produtts and Potatoes 25'l USSR us FIGURE 17 Composition cf U S and U S S R diets 971 U OU clistrihution network havt• imposed a monotonous dil'I on most of 1111' population during a large part of the yt•ar The Brezhnev-Kosygin regimt• is genuinely c·1mccrrll'd ahout mising tlw quality of the Soviet lit• In 19£i5 Brczhne ' committed tlw leadership to incr 'asing s11pplil's of high quality foods t•spccially li 'l'slol'k products and Ill' decreed u costly inwstmenl program lo stimulate agril'ultuml production ac ross the hoard Nt·verthdcss meal production grew rdatiwly slowly during the rest of the l9fiO's Fueled hy rising inl'onws however demand for meat heeame particularly strong and heginning in H i9 them were sporadic reports of prolm1g1' d local shortages Early in Hl70 lht• leadership augnwntcd domestic supplit•s hy importing 1 15 000 Ions of mcut The rt•gimt• continued its comrnil1111•11t to raising the availability of nwal s11ppli1·s l y importing a furtlwr 225 000 tons in Hi I an inen•us1· in domestic production also t·asl'd the meal upply silmllion In 1972 largl' meut imports werl' not nredrd as dnmestic production gri•w sufficil'ntly to pNrnit a J i- increase in per capita consumption of llll'al Because of hoth tht• institutional problems lwsetting Soviet agriculturl' aml the vagaries of tlw wcalhl'r l'rop production fluctuates widely occasionally m•cc-ssitaling imports of foodstuffs othN than meat Grain was imported after poor harvests in 196 3 196 5 and 1969 and a record amount was again purchased abroad in 19i2 For the next several years substantial imports of grain are likely to become the rule mthcr than the exception to the extent that the leadership adhcn•s to its program of raising the share of meat in the Soviet diet This is because the country produces inadequate- amounts of feed grains to support rapidly growing herds of livestock even in the best of crop yt• irs Grain import in the early 19iO's permittC'd the regime to maintain livt•stock hi -rds as well as the quality and assortment of bread products Furthermore imports of substantial quantities o'· citrus and tropical fruits in rC'cent y •ars are farther evidence of the d •termination by the authorities to raise the dietary 11mility e Forest resources and products Forests cover almost l 8 50 million acres or about one-third of the total land area of the U S S R Nearly one-fourth of the world's forest land capable of producing crops of induslri •I wood and about one-half of the world's conifers lie within Soviet boundaries The Soviets however have not been ahl ' lo satisfy their combined needs for home consumption und export despite the enormous volume of standing timber and the fact that ti ' U S S H produces more timber and lumber than any other country in the world total log mmovals in 1971 amounted to 384 8 million cubic meters This failure is in large part clue lo the unfavorable geographic location of the U S S R 's forests in relation II the major consumption centers thret•-fourths of the countrr's forest resources arc located cast of the Ural Mountains The movement of wood products imposes a considerable and increasing burden on the lmnsportation system As a result of the logging industry's concentration in more remote areas the average length of haul pc-r ton of wood shipped hy rail incrc-ascd from ahout j30 miles in 1950 to almost twice this distance 20 years later the hi1d1est average lc11gth of lmul for any commodity moved hy mil in the- U S S R Exports of logs soured from 3 million cubic meters in 19 j8 to 14 fi million cuhic meters in 1971 gxpnrts of lumber however grew less rapidly during this prriod-from 3 6 million cuhie meters to i 9 million euhic meters Exports of wood products arc an important ramcr of hard currency with Japan the largest eustomer for logs taking-15% of such exports A suhstanti 1 increase in timher exports is sc heduled during HJ m-73 in rl'lurn for Japanese technical aid in the development of the timhcr industry in tlw Soviet Far East 25 APPROVED FOR RELEASE 2009 06 16 CIA-RDP01-00707R000200090033-0