$Unique_ID{COW04072} $Pretitle{373} $Title{Federal Republic of Germany (West Germany) Chapter 5. Agriculture} $Subtitle{} $Author{Darrel R. Eglin} $Affiliation{HQ, Department of the Army} $Subject{percent farmers production farm agricultural farms million hectares west prices} $Date{1982} $Log{German Beer Stein*0407201.scf } Country: Federal Republic of Germany (West Germany) Book: Federal Republic of Germany, A Country Study Author: Darrel R. Eglin Affiliation: HQ, Department of the Army Date: 1982 Chapter 5. Agriculture [See German Beer Stein: German Beer Stein] Since Industrialization began more than a century ago, farming's share in the economy has been declining. In 1980 agriculture, including some forestry and fishing, contributed only 2 percent to gross national product and employed less than 6 percent of the labor force. Most farm activity was oriented toward livestock production; and milk, beef, and pork accounted for over 60 percent of the value of farm output. Small farm size, combined with other structural problems, made it difficult for farmers to support a family by farming alone. The agricultural policies of the government and of the European Communities provided high commodity support prices and a protected market to help maintain farm incomes and improve rural living conditions. In 1980 the Federal Republic of Germany (West Germany or Federal Republic) was the world's largest importer of agricultural commodities. Large imports were necessary to compensate for deficiencies imposed largely by nature. Cotton and most other natural fibers had to be imported, and more favored areas abroad supplied the bulk or all of the oilseeds, rice, coffee, tea, and spices because domestic commercial cultivation was not feasible. About one-fifth of imports were commodities for livestock feed. The country's degree of self-sufficiency in foods was nearly 90 percent if production from imported feed was included but only 70 percent from purely domestic output. Land Use Almost two-thirds of the country is hilly or mountainous, placing narrow limits on land use and on the organization of farming. The country has a variety of soils, most of which have low fertility but respond to careful management. A relatively late spring and summer limit possibilities for crops requiring warm temperatures. Even though natural conditions are not particularly favorable for agriculture, farming is conducted throughout the country. The states (Lander) with the largest amounts of agricultural land are Bavaria, Lower Saxony, North Rhine-Westphalia, Baden-Wurttemberg, and Schleswig-Holstein (see fig. 1). The first three states accounted for about three-fifths of agriculture's contribution to the gross national product (GNP). The country's total area amounts to nearly 24.9 million hectares, according to the classification system adopted in 1979. Forests and woodland account for 7.3 million hectares, about 30 percent. Urban areas, building sites, wasteland, and lakes and marshes occupy 3.5 million hectares. By the new classifications, in 1980 agricultural land totaled 14.1 million hectares (57 percent of total area) but only 12.2 million hectares on the basis of the former system. Opportunities for bringing new land under cultivation were very limited. Farmers had long ago made the effort to drain and develop areas that would support crops. In 1980 nearly 4.8 million hectares of the 12.2 million hectares of agricultural land were permanent pasture and grassland. The cropped acreage (called arable in official statistics) was 7.3 million hectares, 29 percent of the total area. In addition vineyards occupied 96,000 hectares, fruit and tree crops 54,000 hectares, and other horticultural uses 75,000 hectares. Since the late 1930s the cropped or arable acreage has slowly declined by nearly 1.5 million hectares, but the figure was imprecise because of changes in definitions over the years. The decline of the cropped area resulted from spreading urbanization, fewer farmers and farms, and withdrawal of some marginal plots from cultivation and a return to grass or woodland. Organization of Agriculture West German agriculture has consisted primarily of independent farmers operating very small holdings. Farming has been intensive rather than extensive. In 1980 there were just under 800,000 farms of one hectare or more. The average size of these farms was 15.3 hectares. About 51 percent of farms were between one and ten hectares; only 13 percent of the farms were thirty or more hectares; and less than 0.4 percent of the farms exceeded fifty hectares. In addition there were about 100,000 or more holdings of less than one hectare. The small farm size hampered adoption of modern production techniques and realization of economies of scale. Moreover incomes of farmers with small holdings were usually insufficient to support a family. Many factors contributed to the problems of agriculture. Over the centuries partible inheritance in several regions of the country reduced farm size and caused considerable fragmentation of holdings. Fragmentation was most severe in the southern and southwestern parts of the country where the Napoleonic Civil Code (Code Napoleon-civil law of France) had become the basis for equal sharing of family land and buildings among all of the children on the death of the head of the household. A study in 1960 showed the average farm consisted of nearly ten separate plots, each averaging 0.8 hectares. Variations from these averages were considerable, however, with a high number of plots and smaller average size on farms with ten hectares or fewer. Fragmentation reduced efficiency because of the time wasted in travel between widely separated plots and difficulties in the use of machinery and the application of chemicals on such small areas. Compounding the problems of the small farms was the development in the latter part of the nineteenth century of large-scale grain production under far more favorable conditions in parts of the world such as the United States and Canada. The concurrent growth of the German transportation system facilitated the distribution of imported agricultural products. The needed structural adjustments in German farming to these changing conditions were postponed by various government measures that enabled farmers to survive. Distortions were aggravated under Hitler. Agricultural autarky became government policy, and numerous controls over production, prices, and marketing were instituted. The regime enacted measures to promote and preserve a large farm population but did prohibit the sale and further fragmentation of many of the country's farms. Even with the small farms, German agriculture introduced modern practices wherever possible as they became available in the twentieth century. Rotation systems, chemical fertilizers, insecticides, and other developments raised yields but also costs. When the Federal Republic was formed in 1949, agriculture was in need of considerable structural adjustment. Many of the controls over agriculture were removed, and market forces began to exert pressures to rationalize farm activities. Nonetheless the government adopted several programs to ease the problems of adjustment for farmers (see Agricultural Policy, this ch.). Since formation of the republic, the number of farms has fallen by more than one-half, and the average size has risen. In 1949 there were more than 1.6 million farms of one hectare or more. By 1980 there were 797,500 such farms. The average size increased from 8.1 hectares in 1950 to 15.3 hectares in 1980. The number of farms fell most sharply among those of ten hectares or less, while there was an increase in farms of twenty hectares or more. Farmers withdrawing from farming usually did not sell their land, fearing that they might need the land in the future. In earlier years substantial amounts of this land were left uncultivated (called social fallow). In the 1970s such land was increasingly leased to active farmers. By 1981 perhaps as much as one-third of the land utilized on farms of one hectare or more was leased. The agricultural authorities approved the consolidations and increasing farm size but feared that it was not occurring fast enough for the changing conditions in world agriculture. The decline in the number of farms was accompanied by a fall in agricultural employment by about 3.5 million workers. In 1950 about 20 percent of the employed labor force worked in agriculture. By 1980 the percentage was 5.9, and the number of workers was 1.5 million. The bulk of farm work was done by family members; hired labor made up less than 10 percent of those employed in agriculture. The young in particular sought nonfarm employment, causing the average age of those engaged in farming to rise. Location of industry throughout the country attracted many of the men, leaving women the majority in the agricultural labor force and often the only workers on very small farms. A rising farm output from a declining number of workers meant increased labor productivity. Farming was modern and productive. Research and extension services were readily available and widely used. Greater use of machinery accounted for much of the increase in labor productivity. West German farmers ranked near the top in the world in application of fertilizer per hectare; they achieved yields from many crops substantially above those in the United States, for example. But high productivity did not yield sufficient profitability for many farmers to remain in farming. In the 1980s continuing structural adjustments would be necessary for farm incomes to increase to match those available in other parts of the economy. Farmers were highly organized to promote their common interests. A number of associations existed, focused on the general welfare of farmers or on specific farm activities. Associations for specific purposes frequently were based on such particular products as sugar beets, fruits, vegetables, or livestock. Federated at the regional, national, and international level, these associations represented members' interests. Cooperatives formed for specialized functions were important farming associations. Cooperatives had a long history in Germany, and in the late 1970s more than three-quarters of the farms were linked in cooperatives. Many farmers belonged to more than one, resulting in cooperative membership substantially exceeding the number of farmers. Credit cooperatives were an important part of the financial system and the major source of funds for agriculture. Cooperative use of machinery helped offset small farm size. Cooperatives played an important role in marketing, although their share varied from one commodity to another. Marketing cooperatives had been traditionally strong in dairy products and grains. The small holdings of many farmers made part-time farming an important aspect of rural living. In 1980 only about half of the farm households derived at least 90 percent of their income from farming, although they accounted for 77 percent of the farmland. Full-time farms averaged 23.6 hectares each in 1980, nearly one-fifth larger than in 1970. About one-half of all farms were operated as a part-time avocation. Eleven percent of farm households received between 50 and 90 percent of their income from farming; they accounted for 10 percent of farmland, and the average size of their farms was nearly fourteen hectares. Thirty-nine percent of the farm households received 50 percent or less of their income from farming; the average size of their farms in 1980 was five hectares, accounting for 13 percent of farmland. Studies in the early 1970s indicated that less than one-third of farm households lacked some nonfarm income and that for many, farm earnings were only 25 to 33 percent of total income; moreover, farmers working small holdings part-time often had higher total incomes than full-time farmers. Agronomists considered part-time farming too diversified and labor demanding. Most part-time farmers kept a few dairy cows and pigs as well as attempting some cropping. During the 1970s extension services advised part-time farmers to simplify the production process to reduce management problems and their labor effort. The part-time farmers adopting the suggestions usually reduced the amount of their labor while gaining additional income. Agricultural Policy The years immediately following World War II were very difficult for the population. The disruptions in the economy and the industrial policies of the occupation forces limited inputs and contributed to a decline in agricultural output between 1946 and 1948. The flood of refugees, which had increased the population by about one-fifth by the early 1950s, added to the demand for food. The daily food intake between 1945 and 1947 averaged about 1,300 calories, and it varied between about 1,100 and 1,500 calories. The food available was less than half that considered necessary by nutritionists. Underfed workers found it hard to perform heavy physical tasks, and many in the urban population made forays into the countryside to barter or steal food. About one-third of the country's inadequate food supply came from aid imports and food parcels from private individuals. Not until the end of 1948 was the food situation considered adequate, even if barely so. Immediately after the creation of the republic in 1949, authorities focused primarily on reconstruction of industry and the transportation system. Many controls were retained on food and its distribution to ensure as equitable a supply as possible for consumers because domestic production remained inadequate, and sufficient imports became available only gradually during the early 1950s. Special agencies were created with a monopoly in foreign trade of agricultural commodities. These trading firms at first provided the mechanism to subsidize food imports for consumers when world prices were above those in the domestic market. When international prices fell below domestic prices after the Korean War boom, these agencies shielded domestic farmers from the effects of foreign competition. In 1955 the government passed an agricultural law that replaced the ad hoc process that had preceded it. The broad aims of agricultural policy were to be a steady increase of farm productivity, a raising of farm incomes and other benefits to the level in the rest of the economy, and an adequate supply of food to consumers at reasonable prices. These policy goals, although desirable, appeared incompatible if not mutually exclusive in view of other economic goals, such as low unemployment. Nonetheless a comprehensive policy framework was established to guide individual steps and to measure progress. In addition the government had to prepare annual statements on agricultural conditions and means to improve them. These annual reports (often referred to as the Green Reports) supplied a valuable source of information on developments in the countryside. German agriculture had labored for about a century under policies that stressed production with little concern for its costs. These policies contributed to the small farm size, perpetuated the fragmentation of plots, and postponed adjustment of farm operations. In the 1950s officials recognized that changes were long overdue but that abrupt changes would have undesirable social and political consequences. If agricultural imports were freely allowed, in line with the general policy of opening the economy, causing domestic farm prices to fall to the international level, many farmers would have been forced off their farms, and those remaining would have had smaller incomes in the short run. Officials opted instead for a gradual adjustment over time. It was obvious that the country could not approach self-sufficiency in many agricultural commodities (it produced no cotton, for example) or even in basic foods if prices to consumers were to be kept at reasonable levels. Substantial imports would be necessary to meet consumer demand. The policy options adopted were to import as necessary while supporting farm prices for basic commodities and encouraging structural adjustments and efficiency on farms. Since the mid-1950s programs have been implemented to achieve the long-term goals. Price supports stimulated production and promoted increased farm incomes. The government at the federal and state levels aided farmers, mostly through financial means, in consolidating plots and adding to their holdings, although the high costs of land acquisition combined with budget constraints to keep consolidation and expansion slower than planned. Subsidized loans and tax incentives encouraged various farm investments and modernization. Social legislation promoted retirement of older farmers, provided job training for farmers seeking nonfarm employment, incorporated farmers in the national health system and other programs, and made education more accessible to rural residents (see Health and Welfare, ch. 2). Government expanded such infrastructure as roads and water systems while encouraging industry to locate away from established centers in part to provide alternative employment for farmers. Farmers received direct (such as income supplements for some) and indirect subsidies. Rail freight rates, for example, subsidized the movement of grains from the southern region to consumption centers to support production and incomes in the south, and fuel taxes were less for farmers. Since the formation of the Federal Republic the government has supported joint action by the West European countries, including the creation of the European Economic Community (EEC or Common Market-see Glossary), which subsequently became part of the European Communities (EC-see Glossary). A basic objective of the EEC was the free movement of goods, labor, and capital between members after a period of adjustment by each. In the bargaining on common policies for specific sectors, each of the founding members sought favorable treatment for those sectors more economically and politically important to them. Thus West Germany was primarily concerned with industry, the Benelux nations with commerce and transit trade, and France with the formulation of the Common Agricultural Policy (CAP). West German farmers also favored high support prices and protected markets, and their associations effectively lobbied for such measures. Since the early 1960s West Germany's agricultural policy has been increasingly regulated by CAP (see The European Communities, ch. 8). The founding members of the EEC were modern industrialized nations. The role of the agricultural sector in each country, although minor, varied. The national policies toward the social, political, and economic needs of the rural population also varied. The basic goal of CAP was to harmonize and unify the six different national farm policies so that agricultural commodities could move freely between them without advantages occurring from policy measures. Additional objectives, original or subsequently added, included: increased farm incomes, an adequate supply of food to consumers at reasonable prices, stability in markets, advantage to EEC exporters over those from outside countries, consolidation of farms toward an optimum size, modernization of farming techniques, and alternative employment opportunities or retirement for the farmers whose land was needed in the consolidation process. The so-called basic pillars of the CAP were common pricing, community preference, and common financing. Common pricing meant a regulated system of prices for major agricultural commodities, in essence support prices, that would permit dismantling of import restrictions in member countries and the free flow of farm produce from the main EEC producing areas to members requiring agricultural produce. EEC preference meant that prices and levies would ensure that EEC products had an advantage over imports from outside. Common financing meant that the costs of agricultural support would be paid by all members. In the early 1960s CAP began formulating a complex pricing system for various commodities that would support production of major produce, promote intra-community imports but not from nations outside, and help stabilize and increase farm incomes of EEC farmers. Implementation of the pricing formulas was held up for a number of years while some members made major adjustments to the new pricing. West German support prices for grains, for example, had been considerably above those of CAP; even three years after the CAP grain price system became effective in 1967, West Germany was still permitted to make compensation payments to its farmers to avoid excessive hardship. Later, when the international monetary system experienced wide fluctuations, CAP organizations developed mechanisms to maintain the uniform pricing system, partly by using accounting units and administrative exchange rates-the so-called green rates of exchange. The CAP programs effectively stimulated productivity and intra-community trade of agricultural commodities. Between 1968 and 1976 real incomes of EEC farmers increased an average of 2.8 percent a year, matching the rise in other branches of the EEC economy. Although CAP achieved notable results, it was strongly criticized almost from the beginning, including its efforts at restructuring. One failing had been the lack of a mechanism to match production to consumption. The success in stimulating production through stable support prices resulted in mounting stocks of surplus commodities, particularly milk, beef, processed fruit and vegetables, cereals, and sugar. Support, storage, and disposal costs of stocks were expensive. By 1981 support prices had been reduced for production above specific levels for a few commodities such as milk and sugar to bring output closer to demand. Another major criticism had been that commodity support prices had been high to support production and incomes of inefficient farmers, with a corresponding high level of protection from imports from nonmembers of the EEC. The result was high consumer prices, accompanied by large support payments to well-to-do and relatively efficient farmers. By 1981 pressure for revamping CAP was again strong; CAP's difficulties contributed to a growing disillusionment with the program in member countries. One criticism was the excessive and mounting costs of CAP. Of total EC spending in all fields in 1980 of about US $25 billion, two-thirds was spent on CAP programs (74 percent in 1979). Community budget revenues came from a 1 percent value-added tax (VAT), agricultural levies, and custom duties; by the late 1970s total EC spending was approaching the revenue limits. In 1979 West Germany supplied 30 percent of the total EC revenues, by far the largest contributor. More important, however, was the net position, i.e., the funds a country turned over less what it received. West Germany and Britain were the only net contributors to the EC budget. West German net payments reportedly were US $2 billion or more annually in 1980 and 1981. West German leaders accepted the fact that their country would be the largest net contributor to the EC, but they argued that controls and limits had to be imposed on CAP costs because of constraints on the West German budget. In mid-1981 EC officials drafted reform measures for CAP. The main features included a slowing of price increases and a narrowing of the gap between EC and world agricultural prices, reduced support for production above specified limits for nearly all commodities, and direct income subsidies for poor farmers hit by the reduced support programs. In November a meeting of EC heads of government failed to reach agreement on guidelines for revising CAP. Officials anticipated that discussions about CAP reforms would continue in 1982 and that differing national interests would make reform difficult to achieve. The combined national and EC agricultural policies had been effective. The size of West German farms was increasing. West German farmers were better educated and more able to handle the complex management required in modern farming. Amenities were more available to rural inhabitants. Farm incomes were increasing. During the 1970s incomes more than doubled, averaging a 7 percent rise each year. In 1980 and 1981 real farm incomes fell somewhat however, because of a faster increase of prices for inputs than for farm products. Moreover the averages hid considerable variation between regions and between kinds of farming. Generally farmers in the south and those relying primarily on pastures and fodder crop to support livestock had lower incomes. National policy narrowed the gap between farm income and that for nonfarm employment. In the 1970s the rise of farm incomes matched that in other parts of the economy but a gap remained. In 1980 income of full-time farmers averaged about DM24,300 a year (for value of the deutsche mark-see Glossary), about 18 percent below wages of industrial workers. Parity in earnings was still a goal to be achieved in the future. In spite of the progress achieved under national and community policies since the 1950s, basic structural changes in farming had been largely postponed by these policies. The long tradition on small farms was a mixed operation in which some cropping, usually of grains, was accompanied by raising a few cows for milk, a few pigs for family consumption, and whatever else space and climate allowed. Farming tended to be diversified as a hedge against price and climatic uncertainties. For nearly a century government policy had shielded farmers from the adjustment necessary for efficiency. Except on commercial pig and chicken farms, where techniques approached the industrial process, farmers moved slowly toward the specialization in production practiced in many parts of the world. Several observers thought that farmers in some neighboring West European countries under similar climatic conditions were more efficient than most in West Germany. Continuation of a policy of high support prices and a protected market appeared unlikely to alter appreciably the existing pattern of farming. Cropping and Production During the 1970s real growth of the value added by agriculture increased an average of 1.4 percent a year. Most of the increase resulted from improved techniques, such as greater use of fertilizers, high-yield seeds, and machinery, as well as qualitative and quantitative improvements in livestock stimulated by high support prices and a protected market. The amount of agricultural land changed slowly, but cropping patterns were more dynamic. In 1979 about two-thirds of the value of agricultural production came from animal products. An even higher proportion of cropping was associated with livestock. In normal years approximately three-quarters of coarse grains, about two-fifths of bread grains, about half of the potato crop, and all of the fodder beets were consumed by livestock; the acreage for these crops plus pasture and permanent grasslands approached three-quarters of total agricultural land. Farming was strongly oriented toward the raising of livestock. Cropping Patterns and Production Grains occupied the bulk of cropped land (see table 20, Appendix). Rye had been the traditional German bread grain, but after World War II wheat became the most important. By 1981 rye acreage and production had dropped substantially below that of the 1950s (see table 21, Appendix). Wheat is largely a winter crop and does well in the rotation system after clover, rapeseed, and root crops. Although it is grown in many places, the central and southeastern parts of the country are the main producing areas. The wheat acreage grew fairly continuously after the 1950s, but production expanded even faster as a result of high-yield seeds and the increased applications of fertilizers. Yields were about double that in the United States because farming was more intensive. Peak production in 1980 was an estimated 8.2 million tons. Although some wheat was exported, the country was usually a net importer of small amounts of wheat. By the 1980s coarse grains, primarily for livestock feed, exceeded bread grains in both area and production. Barley had become the largest cereal crop, used partly for livestock feed and partly for malt to make beer. In the 1950s barley, which has the shortest growing season of all the grains, was primarily a spring crop. Winter barley largely replaced the acreage in rye and oats, partly because of higher yields when sufficient fertilizers were used. Acreage and production of corn had increased from a very small base in the 1950s; by 1980 corn had become an important crop in the preparation of livestock feed. The total area planted in grains expanded slowly after World War II, but because of greater yields, production increased more rapidly. Potatoes remain an important crop, although area and production has fallen by more than two-thirds since the 1950s, partly because of changing dietary habits. Sugar beets exhibited the opposite trend because of the growing affluence of consumers. Since the 1950s sugar beet acreage expanded slowly, but increased yields greatly expanded production. By the end of the 1970s, sugar production from beets amounted to about 3 million tons (in raw equivalent), permitting exports of about one-quarter of sugar production. For many years the country has had a serious deficiency of fats and oils, the so-called fat-gap. Largely since World War II, rapeseed has been added in the crop rotation, stimulated by the prices under CAP. By 1980 oil from rapeseed supplied the raw material for 12 percent of domestic requirements of vegetable oils, but it was almost the only source of domestic vegetable oils. The climate largely excluded cultivation of other sources of vegetable oils. A small amount of tobacco was grown, accounting for only 4 percent of the used in tobacco products in 1980. In 1980 vineyards occupied about 96,000 hectares, close to the limit imposed by a federal law that took effect in December 1981. The harvested area was 19,000 hectares. Nearly all of the vineyards were along the banks of the Rhine River and its tributaries (see fig. 7). Domestic grapes were used to make wine; table grapes were imported. West Germany was the northernmost of the major wine growing countries, and vintners faced extreme growing conditions. In the 1970s considerable investment went into introducing new varieties better adapted to the country's short growing season and relatively cool climate. Production of wine was 4.2 million hectoliters in 1980, a poor year, compared with 10.4 million hectoliters in 1977. The new varieties were expected to have higher yields, permitting wine production to increase. A small area was devoted to fruits, vegetables, flowers, and ornamental plants, some of which were grown in greenhouses. Flowers and ornamental plants were more important in value, reflecting an affluent society's interest in essentially luxury goods. Production of the major fruits, such as pears, cherries, and plums, was rather widespread. Fruit growing usually was only one of the activities on mixed farms, rather than the main activity on a specialized farm. Growing vegetables for commercial sale was a minor farm activity, although many small plots were used to raise vegetables for home consumption. Since the 1950s, commercial vegetable growers shifted toward such vegetables as asparagus and peas and away from the more traditional ones, such as cabbage. Commercial fruit and vegetable growers found it difficult to compete with producers in favored regions such as the Mediterranean Basin and the highly organized and efficient growers in the Netherlands. Livestock Farming was primarily oriented toward producing livestock products, largely milk and pork meat. In 1979 milk accounted for 24 percent of the value of total farm production and 36 percent of the value of the livestock products produced; milk was substantially ahead of all other farm produce in value. Hog raising was next, accounting for 19 percent of the value of all farm production in 1979, followed by cattle raising, which contributed 18 percent. About three-fifths of the value of agricultural activities were associated with raising cattle and pigs. Historically cattle served three functions for the farmer-as a draft animal, as a producer of milk, which could be turned into cheese for storing, and as meat when the animal became old. Fodder was available on grasslands and from crop stubble. Many centuries ago it became a widespread practice for small German farms to keep one or more cows. Tradition dies hard, particularly under the high support prices for milk and beef that have prevailed since World War II. In the 1980s many small farms still kept a few cows although only rarely were they used as draft animals. West German beef and dairy industries showed little propensity to specialize with large beef or dairy herds. The dispersion of milk production among many small producers reflected the social, economic, and political difficulties in the larger European community of adjusting support prices to match production of dairy and beef products to demand; it affected many small farmers in northern Europe. In the 1960s and 1970s the number of cattle increased slowly, from 12.9 million in 1960 to 15 million in 1980. These included milk cows, which declined in number from 5.9 million to 5.4 million over the same years. Despite fewer milk cows, milk production increased from 19.2 million tons in 1960 to 24.8 million tons in 1980. Upgraded herds and improved feed raised average milk production per cow from 3.4 tons annually in 1960 to nearly 4.6 tons in 1980. Most milk was marketed for processing into cheese, cottage cheese, butter, and nonfat dried milk. In 1980 West Germany was able to reduce its surplus butter stocks to normal trade levels through CAP export subsidies, which could amount to 80 percent of the purchase costs. CAP subsidies also permitted substantial reduction of stocks of surplus dried milk, largely through its use in livestock feed mixtures. The growth in the number of cattle primarily reflected greater efforts to increase meat production to meet consumer demand. Production of beef and veal rose from 926,000 tons in 1960 to nearly 1.6 million tons in 1980. Pork was the usual meat in most diets, probably reflecting a pattern set long ago when Germans were predominantly farmers, and nearly all households kept pigs for family consumption. Although many of today's farmers still raise hogs, since the 1950s pork production has shifted toward a highly specialized commercial operation similar to that of modern chicken farming. The number of pigs increased from 15.8 million in 1960 to 22.4 million in 1980, whereas pork production went from 1.8 million tons to 2.7 million tons in the same years. Consumers preferred low-fat meat, which was reflected in breeding; four breeds predominated. Several other kinds of animals were slaughtered for meat, including sheep, goats, and horses, but they were minor and declining sources. Poultry, however, had become an important meat source since the 1960s as highly specialized chicken farms, similar to those in the United States, were established. In 1980 production of poultry meat amounted to 370,000 tons, primarily from chickens. Before the development of modern chicken farms, poultry were raised largely for eggs on small to medium-sized farms. Foreign Trade in Agricultural Products In 1978-80 West Germany averaged nearly 90 percent self-sufficiency in food products. This calculation, however, included livestock production from imported feed components. Excluding imported feedstuffs, domestic food production in 1980 amounted to 70 percent of internal consumption. In 1980 self-sufficiency was 127 percent for sugar, 103 percent for bread grains, 105 percent for beef, and 116 percent for milk and dairy products, making the country a net exporter of these commodities. Self-sufficiency was 89 percent for pork and 62 percent for poultry. Germans farms were only able to satisfy domestic demand in fats and oils by 12 percent, in fruits and vegetables by 34 percent, and in feed grains by 77 percent. In addition there was complete dependence on imports for such warm climate commodities as coffee, tea, cocoa, rice, and many spices. In 1980 West Germany was the world's largest importer of agricultural products, amounting to US $25.8 billion. Imports were largely products of plant origin (see table 22, Appendix). About one-fifth of imports were associated with livestock feed. Imports included more than food products. West Germany imported all of its cotton and most other natural fibers, for example. Moreover part of its agricultural imports were reexported after processing, such as cocoa products, vegetable oils, and some livestock feed mixtures. The CAP fostered a major shift in West Germany's trade in agricultural products toward other EC members. The proportion of West Germany's agricultural trade with the members of EC amounted to 34 percent for imports and 40 percent for exports in 1955 compared with 51 percent for imports and 63 percent for exports in 1980. The large deficit in total agricultural trade, however, (exports only amounted to US $10.8 billion in 1980) contributed to the deterioration of the country's balance of payments in the late 1970s and the weakening of the deutsche mark against other currencies. Forestry In 1978 forests covered about 7.3 million hectares-over 29 percent of the total area-but only about 5.3 million hectares were considered commercial timberland. The states with the largest forests were Bavaria, Baden-Wurttemberg, Hesse, and North Rhine-Westphalia. Public forestland amounted to nearly 4 million hectares, and the rest was privately owned. Public afforestation programs expanded the government-owned forests. The government, acknowledging the environmental and recreational aspects of forests, passed a law in 1975 to preserve and promote forested areas. The law required approval by the states for clearing of forested land and established principles for forest management. Private companies were required to replant trees after cutting. In 1978 a total of 28 million cubic meters of wood was cut, 70 percent of which was conifers. West Germany also imported large quantities of logs, sawn lumber, and pulp to meet domestic requirements. Fishing Fishing is a minor and diminishing activity. In the 1970s the fishing fleet and its catch declined. In 1979 the fish catch totaled 343,200 tons, compared with 591,400 tons in 1970. The main fishing grounds were in the North Sea and around Greenland, although West German fishing boats operated in the Baltic Sea and the South Atlantic Ocean. Overfishing by many countries and the expanded claims to exclusive fishing rights throughout the world hampered fishermen. In 1970 the EC established a joint policy for fishing and a common market for fish products. A 200-nautical-mile fishing zone in the North Atlantic and the North Sea was established for use by members, but by the late 1970s quotas and other regulations had not been negotiated among members. * * * Agriculture is such a small part of the economy that relatively little is written about it in English. The primary German-language source of information is the annual report on the status of agriculture: Agrarbericht der Bundesregierung. The government's annual Statistisches Jahrbuch fur die Bundesrepublik Deutschland provides current statistical data on many aspects of agriculture. The Organisation for Economic Co-operation and Development periodically publishes a survey, the most recent of which in early 1982 was Agricultural Policy in Germany (1974). The EC publishes various materials concerning the CAP and its operation. Readers interested in the mechanics of the CAP with respect to the pricing and protection of EC grain production should consult the United States Department of Agriculture's publication titled "European Community Grain Policies and Development," (For further information see Bibliography.)