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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7

'''FIGURE 5. Use of arable land, 1970 (U/OU)''' (chart)

world prices by fairly restrictive, though variable, import duties and quotas. A 3-year price and market agreement in effect since 1 July 1971 calls for a US$132 million increase in gross farm income over a 3-year period. In addition, a biannual adjustment of income is made on the basis of increases in the consumer price index. Direct subsidies to producers are of small and declining importance, about 2.5% of the gross agricultural income in fiscal year 1971 (1 July-30 June).

Agricultural price policy, however, has become subordinate to a production target corresponding in the maintenance of 80% self-sufficiency (in calories) by the late 1970's. This level is the minimum regarded as sufficient to see the country through a national emergency such as war or blockade. To prevent overstimulation of production, Swedish price policy keeps agricultural producer prices from rising as fast as other prices. Between 1968 and late 1971, farm producer prices increased only half as much as consumer prices.

Livestock raising and dairying are Sweden's most important agricultural activities. Excluding earnings from forestry, almost three-fourths of gross cash agricultural income usually is derived from the sale of animal products (over US$900 million in 1969 for holdings of more than 2 hectares). Most of the numerous small farms outside the major agricultural belt in central and southern Sweden can subsist only by supplementing their basic farming activities by engaging in such labor-intensive activities as milk, meat, and egg production.

The emphasis in livestock production has been shifting from cattle and sheep to hogs and poultry. The decline in the number of cattle on Swedish farms since World War II resulted from the substantial decrease in the number of milk cows as smallholdings were closed down. The number of horses, meanwhile, has fallen sharply as a result of mechanization. Changes in the livestock population between 1951 and 1970 were as follows, in thousands of head:

The decline in the number of milk cows has been offset to some extent by increased milk yields per cow; between 1951 and 1970, the milk yield per cow more than doubled. The average carcass weight of cattle slaughtered fluctuated irregularly during this period. The output of principal meat and dairy products for 1951 and 1970, in thousands of metric tons, was as follows:

Because of the importance of animal husbandry, much of the agricultural land is used for the production of feed grains and grasses, a large part of which is consumed on the farms where they are produced. Cropland used for growing feedgrains, hay, and other fodder, together with meadows and pastures for grazing, comprise about four-fifths of the agricultural land. Land devoted to wheat, potatoes, and sugar beets comprises a significant portion of the remainder. Oilseeds, particularly winter rape, supply much of the domestic need for vegetable oils. Apples, pears, and plums are the main fruit crops. The most

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7