Each food-processing trust engaged in the procurement of farm products
must establish a fund for the promotion of their production, for
improving farming methods, and for modernizing the farm's physical
facilities. The funds are to be used in the first place for stimulating
the output of products required on the domestic market and for export.
The allocation of promotional funds is to be in accord with a program
worked out jointly by the trust and the agroindustrial complex; the
program constitutes an integral part of the procurement contract.
Farms, individual farmers, and private agricultural producers may sell
some of their products at retail directly to consumers in cooperative
markets at prices not exceeding those charged by state retail stores. In
some instances and for some products sale on a commission basis through
state and cooperative outlets is also allowed. The sale of meat, meat
products, and alcoholic beverages in cooperative markets is prohibited
as is also the sale of any product through middlemen. Cooperative
markets are subordinated to the trade organs of municipal authorities.
Violations of applicable regulations are subject to penalties the
severity of which depends upon the nature of the offenses. Information
on the total volume of direct sales by agricultural producers is not
available. The share of collective farms in cooperative market sales,
however, declined from 53 percent in 1959 to 16 percent in 1970.
PRODUCTION
Growth and Structure
As a result of continued emphasis on the country's industrialization,
the share of agriculture in national income (net material product) was
only 22 percent in 1970, compared to 31 percent ten years earlier.
According to official sources, however, output continued to rise. It
increased at an average annual rate of 4.8 percent in the 1960-67
period, declined by 10 percent in 1968, and regained the 1967 level in
1970. An increase of 8 percent in the next two years raised the farm
output in 1972 to a level 50 percent above the output level in 1960. For
the entire period the average annual increase in farm output was 3.4
percent.
Livestock production was reported to have increased more rapidly than
crop production in the 1960-70 period; the respective average annual
rates of growth in output were 4.1 and 2.9 percent. Crop output in 1970
was 33 percent larger than output in 1960, whereas livestock output was
50 percent higher. Available data are inadequate to reconcile the
reported growth in the value of livestock production with a seemingly
inconsistent rise in the physical output of livestock products and
changes in livestock herds.
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