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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070030-5

and fertilizers in Poland than in most other East European Communist countries. On the other hand, private ownership presents the Polish Government with unique problems of control. The government sets goals for production and marketing of farm commodities as well as for raising the level of technology by increasing the use of machinery, fertilizers, and improved types of seed. It can achieve these goals only by indirect methods such as price incentives, allocation of industrial inputs, and peasant education.

The government had relied to some extent on compulsory deliveries of agricultural products to guide farm output, but abolished them as of 1 January 1972. This was an important step toward improving efficiency of farm production, because it eliminated state interference in the farmers' sphere of decision-making as regards specialization. The bulk of state procurement of agricultural commodities is now made through "voluntary" sales by private farmers. These sales are made in part under contract, in which the farmer agrees in advance of harvest or livestock slaughter to sell certain quantities of produce or livestock products to the state of a specified price. The farmer may also sell commodities to the state in quantities over and above those contracted. In an effort to encourage the signing of contracts, the state has generally offered a slightly higher price for contract than for above-contract sales. Farmers who sign contracts with the government are generally given priority in obtaining supplies of fertilizer, feed, seed, and building materials in state or cooperative stores.

Since taking power in late 1970, the Gierek regime has also stimulated output in the private sector by raising prices of slaughter livestock on three separate occasions, abolishing state control over sales of coal to farmers, settling land property rights, reforming the tax system, initiating a rural health service, and establishing new local administrative units. The success of these policy changes is most evident in the sharp increase in procurement of livestock in 1972, as well as in gains in total livestock output compared to 1970 and 1971. With retail food prices frozen, however, the subsidy cost to the government for livestock products is rising rapidly, as are farmers' incomes. This situation could lead to some upward adjustment in prices that farmers pay for industrial inputs and services.

The Polish caloric intake (over 3,000 calories per day) is among the highest in Communist Eastern Europe and compares favorably with that of the United States. The share of starches in the diet, however, is considerably higher than in most other northern European countries, and the share of meat, dairy products (except milk), fruits, and vegetables is correspondingly lower. Demand for pork has exceeded supplies since 1968; per capita annual meat consumption increased nearly 4 kilograms between 1968 and 1971 to 56 kilograms. By 1975, meat consumption is planned to rise to 63 kilograms per capita.

b. Fisheries

Poland's fishing fleet has almost tripled in size since 1960, reaching 141,700 gross register tons in 1971. Coastal and deep-sea fishing netted a new high of 488,500 tons of fish in 1971 — mainly cod and herring — nearly 3 times the catch in 1960. All of this increase was derived from Atlantic Ocean catches. In addition, commercial fisheries caught 13,600 tons of fresh-water fish. The total catch of fish in 1972 was 520,400 metric tons. Polish exports of fish averaged about 53,000 tons annually during 1969-71, compared with only 7,000 tons in 1960. Imports of fish — about 40% from the USSR — amounted to 13,400 tons in 1971. Per capita consumption of fish was 5.7 kilograms in 1971, among the highest in Eastern Europe.

c. Forestry

Forests covered about 8.5 million hectares in 1971, or more than one-fourth of Poland's land area (Figure 11). More than 80% of the forest land is under state control. Timber resources, mainly coniferous wood, are adequate for domestic needs and have been an important source of hard currency earnings. Since 1965, the annual timber cut has ranged between 16.4 million and 18.5 million cubic meters. Sizable timber exports have been achieved by cutting timber at a rate in excess of natural growth and by holding down domestic use. Exports of sawn wood were a record 952,000 cubic meters in 1964, but they dropped to 820,000 cubic meters in 1970 and 714,000 cubic meters in 1971. Most of the sawn wood has been sold to Western countries. In recent years sales of timber, furniture, and paper accounted for about 5% of Poland's total hard currency earnings. Poland imports some cellulose for its paper and textile industries.

2. Fuels and power (U/OU)

a. Hard coal and coke

Poland is one of the world's largest producers of both hard coal and coke. Output of hard coal in 1971 reached 145 million tons, and coke production

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070030-5