Gorbachev’s statistics on the agricultural sector
The misery of Soviet agriculture and bureaucratic waste
| Mikhail Gorbachev |
By the mid-1980s, the acute problems afflicting the Soviet Union’s agricultural sector went far beyond the decades-old productivity problems at the stage of production. They formed part of a broader structural crisis encompassing the entire chain from field to table. Deficiencies in the harvesting, processing, storage, transport and packaging of agricultural produce meant that a significant proportion of output was wasted before it ever reached the consumer.
Shortly after his election as General Secretary, at a Politburo meeting held on 11 April 1985, Mikhail Gorbachev presented data on the agricultural and food system which showed that the Soviet food system was not merely inefficient, but had also become extraordinarily wasteful. The agricultural statistics presented by the newly elected General Secretary to the members of the Politburo may be summarised as follows:
- In the processing of agricultural produce, 50-60 per cent of the work was still done by hand. Labour productivity in this area was two and a half times lower than in capitalist countries.
- A total of 1,300 factories producing milk, cheese and butter, 200 meat-processing and packaging plants, 103 canneries and 60 starch and glucose syrup factories had been built without waste-treatment facilities. The result was serious damage to the environment.
- The weakest link in the processing of agricultural produce was storage. Existing storage facilities for fruit, vegetables and potatoes met only 26 per cent of the required capacity; moreover, even those facilities fell short of contemporary standards.
- Of the 11.2 million storage units, only one-third were equipped with cooling systems, and only 19 per cent with ventilation systems. In the sugar industry, only 20 per cent of sugar beet could be stored under suitable conditions.
- Many regions did not have enough grain silos. Some 140 meat-processing and packaging plants lacked refrigeration systems, while 42 per cent of the facilities were in urgent need of major repairs.
- Only 55 per cent of the demand for the modern machinery and equipment required to process agricultural produce was being met. As a result of these conditions, losses of agricultural raw materials could reach as high as 25 per cent.
- In the trade sector alone, storage and transport losses were enormous: 1 million tonnes of potatoes, around 1.3 million tonnes of vegetables, and 3-4 million tonnes of sugar beet were going to waste. In addition, 100,000 tonnes of meat was lost during the preparation of cattle for slaughter and their transport.
- Eight million tonnes of milk was being fed to calves; 18 million tonnes of skimmed milk and 6.5 million tonnes of whey were being used as animal feed. Because of insufficient processing capacity, up to 1 million tonnes of fish was going to waste.
- The food industry’s need for modern packaging methods was being met by only 50 per cent. For manufactured goods, the figure fell to 30 per cent, and for fruit and vegetables to just 10 per cent. Inadequate packaging led to the spoilage of fruit and vegetables and caused enormous losses.
- Gorbachev concluded by saying that, if cooperative workers had enough reliable transport vehicles at their disposal, they could increase purchases of agricultural produce from the population by 15-20 per cent - equivalent to 1.5 billion roubles.
On the basis of these bleak figures, Soviet agriculture in the mid-1980s could be likened to a giant with large-scale productive capacity, yet structurally half-paralysed. [*] Possessing some of the world’s most extensive agricultural land, the Soviet Union was nonetheless compelled in the 1980s to import colossal quantities of grain from the imperialist countries in order to feed its own population and sustain its livestock programmes. The record 55.5 million tonnes of grain imported in 1984/85 was not merely the outcome of a poor harvest; it was the reflection, in foreign trade statistics, of the structural blockages that had accumulated within the Soviet agricultural and food system over many years. [**]
To see the picture more clearly, it is necessary to compare it with the situation in the imperialist countries. Food loss and waste were, of course, by no means absent in those countries; within the logic of the capitalist mode of production, considerable waste was generated, particularly at the retail and consumer stages. Yet the nature of waste in the Soviet Union was different. The former may be called capitalist waste, the latter bureaucratic waste. In the Soviet Union, bureaucratic losses were concentrated above all at the stages of harvesting, storage, processing, packaging and transport.
Gorbachev’s 1985 observation that “the weakest link was storage” was no coincidence. It was the predictable outcome of a bureaucratic allocation of resources which, for decades, had treated agricultural infrastructure as a secondary priority. The Stalinist regime, with its emphasis on heavy industry, defence and large-scale production targets, had consistently pushed into the background the question of how agricultural produce was to be preserved after the harvest, processed, packaged and delivered to the consumer. This neglect was directly connected to the chronic shortages of consumer goods that became one of the fundamental problems of everyday life for broad layers of the Soviet population: even when output appeared, on paper, to have been produced, it often failed to reach either the table or the shelves because it could not be processed, stored or distributed in time. [***]
The Soviet food system bore a striking resemblance to the pattern which, many years later, the FAO would identify in its general classification of food losses for developing - or, in the older terminology, underdeveloped - countries: losses were concentrated not, as in industrialised countries, primarily at the retail and consumer stages, but rather after harvest, during storage, processing and transport. [****]
Another dimension of this colossal waste was the alienation produced by bureaucratic planning. In the absence of socialist democracy, workers who had no say in the planning process could not become the real controllers of production and distribution. Meanwhile, potatoes rotting in storage, meat-processing plants without refrigeration, or vegetables spoiling for lack of packaging remained mere entries in a bureaucratic ledger, losses for which no one was held directly accountable. For this reason, socialist democracy is not only a morally or politically desirable principle; it is also a vital condition for economic efficiency, for the preservation of social resources, and for the organisation of production in accordance with real needs.
History, however, is never short of ironies. From 1978 until his election as General Secretary in 1985, Gorbachev had himself been one of the highest-ranking party officials responsible for agriculture in the Soviet Union. Thus, the bleak picture he presented to the Politburo in the spring of 1985, in his capacity as General Secretary, was not merely a legacy he had inherited; it was also the product of the very bureaucratic apparatus in which he himself had been directly involved for years.
[*] By the mid-1980s, the problems of the Soviet agricultural sector were not confined to the statistics Gorbachev presented to the Politburo. There were numerous structural weaknesses, including design flaws in tractors and combine harvesters, frequent breakdowns of agricultural machinery, shortages of spare parts, and inadequate maintenance and repair services. A more comprehensive analysis of Soviet agriculture would require a far more extensive study; for that reason, these issues will not be examined separately in the present article.
[**] According to a 1986 USDA report, the USSR imported a record 55.5 million tonnes of grain in the 1984/85 marketing year. See United States Department of Agriculture, USSR Agriculture and Trade Report, May 1986.
[***] See, Stalin’s “theoretical contribution”; The testimony of Gün Benderli; The testimony of Vera Tulyakova Hikmet; The testimony of Anatoly Chernyaev; The testimony of Anthony Barnett; The testimony of Zekeriya Sertel (2); The testimony of Zekeriya Sertel (1); Queue etiquette in Stalinist Albania
[****] FAO, Global Food Losses and Food Waste: Extent, Causes and Prevention, Rome, 2011. The report notes that, while the overall level of food loss and waste in industrialised countries is comparable to that in developing countries, in developing countries more than 40 per cent of losses occur at the post-harvest and processing stages, whereas in industrialised countries more than 40 per cent occur at the retail and consumer stages.