MEMORANDUM
PRODUCTION AND UTILIZATION OF SUGAR IN THE SOVIET2
CIA/RR43
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THIS MATHRIAL CONTAINS INFORMATION AFFECT! NATIONAJi DEFENSE OF THE UNITED STATES WITUifi IHE MEANING' OF THE ESPIONAGE,, THy TRANSMISSIOJf OR REVELATION OF WHICH IN ANY MANNER TO ANRSON IS PROHIBITED BY
CENTRAL INTELLIGENCE AGENCY Office of Research and Reports
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PRODUCTION AND UTTJJZjg'ION OF SUGAR IN THE SOVIET
Summary
The Soviet Bloc accounts foroercent of the world sugar supply and Is second In importance only to Cubaroducer of sugar. Roughlyercent of the sugar produced In the Soviet Bloc comes from thc Ukraine and the European Satellites. SugarIn tho Soviet Bloc has steadily Increased olnoe World War II,igh ofillion metric tons of1 but dropping2 approximatelyercent below1 total because of adverse weather conditions in the European Satellites. The2 production was estimated atillion metric tons as compared withillion tons before thc war. All Soviet Bloc sugar, with tho exception of cane sugar from Communist China, lo produced from sugar beets. Sugar-beet acreagehich remained almost the same asercent above thc prewar Sugar yieldo for tbe Bloc, however, are still below the prewar
and approximations. The range of error in tbe estimates is at least plus or minusercent.
of raw sugar, basedatio of raw to refined sugaroaw sugar is sugar processed from auger beets or sugar cane but not yet refined. Estimates of utilization are in terms of refined sugar.
acreage.
The term sugar yield indicates the quantity of raw sugar which was processed fromectare of sugar beets or sugar cane. Such variations as sugar content, which may differ from year to year and
The USSR, which accounted for aboutercent of the total Soviet Bloc production of sugarroducedillion
wctrlcpercent Increase above1 levelper-cent Increase above the prewar level. Thc European Satellites, which accounted forercent of the total Soviet Bloc production of sugarroducedillion metric tons of sugar, adecrease below1 levelpercent decrease below the prewar level. Communist China, which accounted for only 8of the total Soviet Bloc production of sugarroducedetric tons, whichpercent Increase over1 levelercent below tbe prewar level.
All countries producing sugar In thc Soviet Bloc have plans for increasing production, butarge extent, these production plans appear unattainable. The Soviet Fifth Five Year, for examplo, callspercent increase in the production of sugar. Since no plans were given for acreage Increases, the-assumption is that any increase in production will result primarily from increased yields. The goal of the Fifth Five Year Plan appears to bebecause it would require yields of unrealistic proportions, which even under the best of conditions could not be attained In soeriod of time.
boutercent ofillion metric tons (refinedf sugar produced in the Soviet Bloc was utilized domestically;ercent,etric tons, was exported to non-Soviet Bloc countries; and theercent,etric tons, either was available for state reserves or constituted an-exportable surplus available for future commitments. .
* Utilization figures are In terms of refined value. The raw value productionillion metric tons la equal, therefore,illion metric tons refined,
Thc sugar available for domestic consumption in the European Satellites is on the average less than before World War II, though it would be greater were It not for the USSR's policy of expropriatingquantities of the European Satellites' production under forced trade agreements and reparations and. In addition, encouraging thr Satellites to export as ruch sugar as possibleeans of acquiring hard currency, raw materials, and industrial commodities frca non-Soviet Bloc countries. In some Instances, this policy has resultedugar
shortage which hao necessitated rationing among the general population. Only military and othor preferred personnel continuallyation which reachoe an Important caloric level in the diet.
Even though sugarelatively perishable item requiringstorage conditions. It is apparent that some of the Soviet Bloc countries areortion of each year's production to be placedeserve for either strategic purposes or future comitaents. The quantities maintained each year In the state reserve above those quantities normally held for Industrial, consumer, and trade purposes nre not known. In any case the sugar probably is rotatedlret-in first-out basis so as to minimize storage losses.
1 - Po:.tvar Trends In Production.
P^uctlon of sugar in the Soviet Bloc increased after World Warrom annual production ofillion metric tonsroduction of about 5million netrlc tons Prevar average production of sugar In those areas now constituting the Soviet Bloc totaledillion metric tons. (See Table
The acreage producing sugar In the Soviet Bloc increased steadily after the end of World War II and was estimated'million hectares ot the beginningpcrcent increase over the prewar acreageillion hectares. (See With the exception of production froa sugar cane In Communist China, Soviet Bloc -sugar is produced from sugar beets.
ollows on p. 4.
Although production of sugar has Increased since World War II, the yields for the Soviet Blochole are still below prewar yields. Increased acreages have accounted for the gain In production. Yields for tbe Bloc19 centners of raw sugar per hectare as cocrpared to the prewar yield7 centners per hectare. Sugar yields remained high during World War II but began to drop soon after tbe waresult of fertilizer shortages throughout the Bloc andpposition to the land reform program. In some of the European Satellites.
Table 1
Acreage of Sugar Seete, Yields, end Production of Bav Sugar in the Soviet Bloc Prevar aa Corn-pared12
Ccun-.ry
USSR
European Satellites PolandOerusy
Bulg*Xl*
Albania
Total SXtropeen
Coenuolat Calea d/
Total Soviet Bloc
Hectarei
/
V
negligible
CO.0
Tlelds (Ceotaere per
0
1
c/Negliglble
0
Production
&.1
8 Negligible
*/
(CeotnereH-ctei-*)
(Ketrlc
To )
(Ce&tnere per Hectare)
i (Metric Tone)
9
0
S3
9
0
82
3
Production of sugar in the Soviet Bloc2 is estimated ot aboutillion metricecrease ofillion metricelow1 production ofillion metric tonsillion metric tonsercent) below the prewar productionillion metric tons.
2 production of sugar, distributedopulationillion,ross per capita supply"ilograms, whichlightly lessilograms per capita Indicated by theof1 productionillion people, although roughly equal to the average gross per capita Bupplyilograms availableillion people during the prewar years.
2 sugar-beet acreage in the Soviet Bloc is estimated* million hectares, equal to1 total andercent above the prewar averageillion hectares.
Yields for the Soviet Bloc2 aro estimated9 centners per hectare as compared with1 ylold9 centners per nod thc prewar yield7 centners per hectare.
a. DSSR.
Production of sugar in the USSR2 is estimated atillion metricpercent Increase over1 productionillion metric tons and an Increase'or more
pCrCent over thc Prevar Productionillion metric tons,3 su&nr-beet acreage is estimatedillion hectares, approx irately equal to1 and prevar acreages. (See
rt is estimated that the USSR produced aboutercent of the totto. Scwiet Bloc sugar production2 fromercent of the total Soviet cloc sugar-beet acreage.
As seen in, sugar beets are grown throughout thc USSR In %aryI=iS acreages with the exception of the Northwestorthern
The gross per capita supply indicates the supply available per person far all purposes including industrial use, export, stockpiling, and hnmman consumption as contrasted with the net per capita supply whichhe supply available per capita after deducting the exports
and sLcctollng quantities from the gross supply.
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European USSRhat part of the Urals (Vlll) which lies In Asia, and East Siberia (XI) economic regions.* The greater part of the sugar industry Is located In European USSR, which2 accounted forercent of the total production ln the USSR anftercent of the total sugar-beet acreage. Of these totals, the Ukraine (ill) accounted forercent of the production andercent of the acreage and Central European USSR (Vll} accounted forercent of both theand the acreage. In Asiatic USSR the largest sugar-producing area is located in Central Asiahich accountedercent of the total productionercent of the total acreage (See
ugar production in the European USSRpercent increase over prewar production, although acreage increasedercent during that period. In thc Asiatic USSR, sugarand acreageercent respectively over prewar, with the most significant Increase taking place in Central Asia (Xb). This Increase indicates the shift in acreage and production from tbe western to the eastern areas of the USSR following the destruction during the war of sugar factories in the Ukraine and Central USSR. In spite of this shift In acreage, the continued heavy concentration of sugar-beet acreage and processing facilities in the western areas of the USSR, particularly lo the Ukraine, again places the Soviet sugar supplyelatively more vulnerable position than most other crops ln the event of another
Yields of raw sugar in the USSR increased0 centners per hectareercent increase over1 yield6 centners per hectareperceot increase over the prewar yield5 centners per hectare. (See These increases were the result primarily of the use of improved seed varieties,and thc acquisition of more favorable arable land, coupled with improved processing techniques and facilities acquired from the European Satellites under reparations.
b. European Satellites.
Production of sugar in thc European Satellites2 isatillion metric tons,ercent belowillion metric tons endercent below theillion metric tons. (Sec This large decrease
* The term region in this memorandum refers to the economic regions defined and numbered on CIASSR: Economic Regions.
In production resultedeavy decrease ln sugar-beet yields brought about by unfavorable veother conditions throughout Eastern Europe during2 beet-growing season. The combinationong summer drought and extremely cold, rainy weather during the harvesting season resulted ln the worst crop
The harvested acreage of sugar beetb2 was estimated atillion hectares, whichercent below1 acreage5 million hectares althoughercent above tbe prewar acreageillion hectares. (See The decrease in2 acreage below1 level was caused primarily by the abandonment of that sown acreage which was destroyed by spring frosts. This was particularly true ln Czechoslovakia and Poland,2 acreages decreasedercent, respectively, below1 total.
Sugar beets are cultivated throughout the European Satellites In varying degrees. Poland, East Germany, and Czechoslovakia account for the largest share of the acreage and production. (SeeJTable
As seen in Tableungary has ah own the greatestIn relation to the other European Satellite countries asof sugar.Whereas In prewar years Hungary accounted forpercent of the production,12 it has2 percent,f total* sugar production. decrease from prewar production in Knat Germanyndin relation to Satellite production was because importantgrowing regions were transferred to Poland after the endWar
Tbe yield of raw sugar In the European Satellites2 dropped4 centners per hectare, ercent below1 yield1 centners per hectare andercent below the prewar yield9 centners per hectare. (See These lOBoea were caused primarily by the weather conditions mentioned above. Sugar yields for the European Satelliteshole during the postwar period have failed to reach the prewar level. Hungary was the only country to exceed the prewar yield during the postwar As shown ln Tableho average sugar yield in the European Satellites is still higher than in thc USSR, in spite of Soviet developments. The weather and soil conditions which prevail In the Satellites are moreto the growing of sugar beets, and the Satellites are sore experienced in growing the crop and In developing better varieties
follows on p. 9.
Tabls 3
Distribution of Acreage of Sugar Beets sad Production of Raw Sugar In the European Satellites
Prewar as Coo pared12
-suited to their weather and polln addition, the higher extraction rate of sugar in these countries points to processing facilities and personnel superior to those in thc USSR.
C. CoExainlst China.
Production of sugar In Communist China2 Is estimated atetric tons, whichpercent increase over1 production ofetric tons, although itercent below the prewar average productionetric tons The acreage*2 ie estimated atectares, whichpercent increase above1 acreageectaresercent below the average prewar acreageectarea. (See
Communist China is estimated to produce onlyercent of the total Soviet Bloc production of raw sugarromercent of the total acreage.
Sugar cane, which accounts for aboutercent of tbe sugar produced In Communist China, Is grown principally ia the southeastern areas of the country, whereas only sugar beets ere cultivated in Manchuria. Only aboutercent of China'o production of sugar Is refined. The remainder, which is produced In native mills, is consumed in an unrefined state. Rwangtung and Szechwan provinceb and Manchuria ore at present the only areas In the country that have modern sugar mills. These areas and Kwangsl and Fuklen provinces are "tbe only commercially Important sugar-producing areas. " *
Yields of raw sugar, estimated for sugar beets and sugaraveraged aboutentners per hectare during the postwaryields, which are high In comparison with some of theBloc countries, are attributed to the higher sugar contentcane as compared with that of
3. Planned Production.
Includes ;ugcr-bect acreage. '* All Plena are5 with the exception ofnd AU flgurci are Included In5 total.
Production of sugar in the Soviet Bloc Is planned toillion metric tonshich would result in anof aboutercent over1 productionillion metric tons and eboutercent over the prewar production
cr-iric torn, (see Table This goal Is ooDildered to be unrealistic in that moot increasce are apparently to be obtained largely through an increase in yields. Several factorsfertilizer shortages; the lackufficient area of suitable soIIb; and, in coseeneral resentment toward the land reformin tend to hold yields down. Production5 is therefore estimated atillion metric tons. (See
a. USSR.
As shown in Tablehe Fifth Five Yearf the USSR is directed toward Increasing production byercent over the prewar level. Tho Plan envisions that gross production willduring this span of years byercent." Attainment of thiB goal is to be achieved mainly by Increasing yields through Improved agrotechniques.
The5 Plan does not mention specific acreagepeech. Mikoyanowever, does mentioneneral way the necessity of increasing the planting of sugar beets throughout tbe USSR as well as of increasing yields.
To achieve tho5 production Plantons on the basis of) acre ago would requireyield ofentners per hectare. This increasepercent increase over2 yield of
The soils of the USSR now utilised for the production of sugar beets arc not particularly eulted to the growth of tho crop but ore the best available. It appears likely that Soviet sugar-beet acreage will not tend to expand materially above23 million hectares). It is probable, therefore, that, unless there Is anfavorable combination of weather factors, production of auger5 will not materially exceed the upper limit of expectancy, orillion metric tons. (See
b. European Satellites.
* ollows oh The Plan percentage figure Is based on an Increase over0 Soviet eatimatos.
The European Satellites also have plane for Increasing tbe production of sugar primarily through an increase in yields. Planned
Table 4
Planned Production of Rav Sugar in .the* Soviet Bloc Including Percentage Cooparlaona vithroduction* ana Estimated Production* for the last Years of Respective Plana
Hi"
Country
USSR
Satellite* Poland East Ger&anyngary Rimer.ln Bulgaria Albania
Total Europeanoamunlet China Total Soviet Bloc
OffIclal Planned Production for Ute Last Yearf1 {Tbouaand Wntrlo Tons)-
-i 0 ';
/ l-
**
/ ' i
Production for tbe Iant Years of Respective Plans (Tacieand Metric Tspb)
;
!
"
.
/
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o
f/
-'
-
.
tl
f/
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reduced because of land reform and'collectivisation. *
r. '. .,
f"
beie are not true totals, sincedlvldual"re.for differentto indicate aggregate
They axe given, however. In
production of sugar lo tho Europeanie estimated atillion metric tons.* Because of the lack of suitable arable land, fertilisereneral deterioration in the processing facilltlea in many of the countries,eneral resentment on the part of the peasants toward the land reform program, it is unlikely that their Plans can be accomplishedotal annualof moreillion metric tons can not be expected during this period. (See
c. Communist China.
Plans for the production of sugar In Communist China do not extend The Chinese plan3 calls for an Increase In the production of sugar toetric tons (seelthough production of sugar Is being stressed In Communist China with an emphasis upon improving agrotec uniques and increasing the processing capacity of mills, it is unlikely that this increase in production can be realizedear period. s therefore estimated to remain at about20 metric tons). (See
Ofillion metric tonB of refined sugar produced in the Soviet Bloc countries2 (basedaw valueillion metric* million metricercent) weredomestically,illion metricercent) were exported to non-Blocnd tbeillion metric tonsercent) were left available as either state reservesurplus available for future comoltments. (See* Because of the stringent conditions necessary for storing sugarong period of time, the capabilities for storing large quantities probably are limited in most of the Bloc countries, and whatever quantities are held ere most likely rotatedlrat-ln first-out basis so as to minimize storage losses.
* All Plans arewith the exception ofnd All Plana are included in5 Plan total. ** Sugar trade among the Soviet Bloc countries haa been deducted from the gross trade and Included in either the reserves or food supply ollows on
h. Current Utilization.
Except In Coominist China, where much sugar Is eaten in the raw atate, practically all of the sugar in the Soviet Bloc countries is consumed at table as refined sugar, and most of the remainder is converted by industry Into beverages ond confections for human
Soviet Bloc consumption of sugar duringonsumption year* Is estimated at somewhat overmillion metric tons,ercent belowonsumption; of lessillion metric tons andercent below the prewar averageofillion metric tons. (See In terms of net per capita supply this consumption amounts. kilograms per years comparedilograms per year, respectively,nd in the prewar period. (See The decrease in the average consumption of sugar in the Soviet Blochole duringonsumption year was the result primarily of the poor harvest in the European Satellites.
The supply of sugar available for food in the USSR duringconsumption year Is estimated to beilograms per capita per year) as compared with thenet supply ofillion metric tonsper capita per year) and the prewar average net supplyBillion metric2 kilograms por capita per year).nd .
The supply of sugar available for food in theonsumption year is estimated to be aboutilograms per capita per year) as compared withavailable net supply ofillion metric tonsper capita per year) and the prewar average netillion metricilograms per capita (Seend
* Consumption year extendsuly toune. ** ollows on
Communist China, which has the lowest consumption rate of sugar in tbe Soviet Bloc,et supply estimated atillion metric8 kilograms per capita per year) duringonsumption years as compared with the prewar average net supply ofillion metric2 kilograms per capita per year). (Sec
Coaauerptlon of Refined Sugar In tho Soviet Bloc Prevar aa Comparedonsumption Yeare
L5SR
Europeon Satellites Poland East Oermacy CtechoelovaJtia Saigary Rumania Solgarla Albania
Total European Satellites
ConauniBt China
Total Govlet Bloc
The per capita oupply of sugar available for food was obtained by dividing the supply available for consumption by the total populations, and are, therefore,rue reflection of the consumption patterns within the various Soviet Bloc countries. For example, the self-suppliers (producer) of sugar beetsarger per capita share of the supply than do the non-eeIf-suppliers since part of the payment to the producer is ln kind. As previously mentioned, military and other preferred personnelarger per capita share of the available supply than do thc general population. In addition, when sugar is in short supply end placed on the ration list, certain categories of the population are apportioned their ration according to Party and working status. This practice generallyery small ration for the remainder of the population, and such sugar as is available is sold at higher prices.
The small amount of sugar consumed per capita ln Soviet Bloc countries can be pointed up by comparison with2 US consumption of sugar ofillion metric tons,er capitaofilograms per year.
One of the principal by-products of production of sugar is molasses, which can be further processed into the production of alcohol. Although grains and potatoes have ln the past been the chief sources of production of alcohol in thc Soviet Bloc, sugar molasses is growing in Importance. The Increase ln alcohol-processing facilities at many of the sugar factories ln the Bloc as well as the construction of additional facilities mayesire by thc Communists either to substitute molasses In place of the more valuable grainsource of alcohol or to increase the over-all alcohol potential of the Bloc by augmenting the present sources of production.
Since sugar is one of thc important agricultural export commodities of the Sovietreater emphasis ia placed upon maintaining this trade than on providing for the civilian populations. This policy in many Instances has resulted in serious shortages of sugar throughout thc Bloc, particularly in the European Satellites. This deficit of sugar, which laeal deficit, has necessitated the need for rationing sugarime when considerable quantities of sugar were cade available for export purposes.
Tills situation was evident duringradehen LOtalc exports of sugar wereercent of the total Bloc
tradextendsuly toune.
exports duringrade year (see* even thoughof sugar2 wasercent below1 total.
Duringrade years the Soviet Bloc countries exported an averageetric tons of sugar>ofetricercent) were exported to various non-Bloc countriesetricercent) were traded within the Bloc. (See During the prewar years the countries now constituting the Bloc exported on an averageillion metric tons of sugar each year, with practically the entire trade destined for non-Bloc countries. (See
This prewar trade accounted forercent of the shipments of sugar controlled by the International Sugar Council, which allocated export quotas to the sugar-producing European Satellite countries as well aa to the USSR. These countries had well-established markets before'the war, and, since the close of hostilities, the Satellite' governments particularly have struggled to regain their previous markets arid their prewar export status.
* ollows on* Imports by the USSR and Communist China were obtained by adding net trads (Tableo exports to non-Soviet Bloc countries
Duringrade years, shipments to the USSR accountedargeercent andercent, respectively) of the sugar traded within the Soviet Bloc, and the remaining quantities were sent to Communist It is worthy ofi note that export of sugarnjunlst China duringrade yearercent increasexports." This seems toesire by the Bloc countries to expand their trade with Conraunlst China In order to obtain desirable commodities through the bartering of sugar at favorable exchange rates.1
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APPENDIX
p-ju^es and evaluation of sources
Except for the sources noted below, all data relating to sugar-beet acreage and production of sugar aren estimates made by CIA and the Foreign Agricultural Service, US Department of Agriculture. These estimates, in turn, are based upon Soviet statistics collated and used in previously published CIA and FAS studies.
The Soviet Fifth Five Year Plan is basedeport published by theimes, U. Eval..
iam Chinese Ccxasunist Plan3 is based or.eking, r. Eval..
Original document.
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