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14 rope. Portugal is still dependent on imports possibly reaching 600,000 metric tons. By for most of its machinery and fuel, and is in November 1948 the estimate was only 282,000 the precarious position of having to market metric tons. It was, therefore, necessary to luxury goods, such as wines and canned fish, import approximately 300,000 metric tons of to pay for a large part of its essential imports. wheat during the 1948 crop year. Drought conditions were intensified in the closing 2. Description of Present Economic Situation. months of 1948 and have continued through a. Agriculture. the early months of 1949. On 31 May 1949 the wheat yield was estimated at 363,000 met- Portugal's economy is based on agriculture ric tons or 12.6 percent over 1948 production. and fishing, and more than half of the total According to this estimate Portugal will have number of employed persons is engaged in to import approximately 350,000 metric tons agricultural pursuits. Its principal crops are of wheat for 1949. As a result, wheat availa- wheat, grapes, and olives. bilities for 1949 are expected to be further Only 38 percent of the total area of Portugal is under cultivation. Maximum utilization curtailed. Of the supplementary cereal crops, of land is hampered by lack of capital, primi- local production of rye and barley normally satisfies domestic requirements. tive farming methods, and the concentration of population in the north and coastal areas. Portugal is one of the world's greatest vine- In addition to this the rapidly growing popu- yards, and port wine is one of its most valu- lation is constantly pressing against the able exports, accounting for 10 percent of the means of subsistence. Portugal could become country's export total. By Portuguese law, more nearly self-sufficient in agricultural pro- port wine is made exclusively from grapes duction if flood control and irrigation facilities grown in a clearly defined area in the upper were adequate and farming methods were Douro region in northern Portugal. This modernized. The most striking feature of the area, which begins about 40 miles inland from agricultural picture under present conditions the city of Oporto and ends at the Spanish is the lack of agricultural "know-how" and frontier, includes about 556,000 acres. Of this organization, poor and badly tended soils, and total, however, only about 64,000 acres are lack of equipment. The government now has under intensive cultivation. For the period under construction several drainage, flood 1937-1946, wine production in Portugal aver- control, and irrigation projects which, when aged 9,299,000 hectoliters anually. Total completed, will materially assist in the stabili- wine production for 1947 was 10,111,000 hecto- zation of agricultural production. liters; for 1948, 7,195,000 hectoliters. Wheat production during the past few years Olive oil is another important product of has not been sufficient to meet domestic re- Portugal. The annual yield of olives, how- quirements, mainly because of unfavorable ever, is subject to exceptionally large varia- weather conditions. Wheat production in tions. For example, olive oil production for 1947 was 350,000 metric tons as compared 1948 was approximately 30 million liters, less with 506,000 metric tons in 1946. In 1945, than one-third of the 1947 production. In production reached only 315,000 metric tons. 1949 olive oil production is estimated at 78.8 Average wheat production for the period 1935- million liters. 39 (harvest years taken as normal) was 477,- Because Portuguese farming depends al- 000 metric tons. Wheat consumption in 1947, most exclusively on animal traction, livestock though limited by a low ration, averaged some plays an important part in the agricultural 425,000 to 450,000 metric tons. To maintain system. The OX is the principal draft animal, this ration, therefore, Portugal had to import for the average peasant cannot afford a horse wheat from Argentina, in addition to the allo- or mule. cations from the International Emergency At least 90 percent of the owners of livestock Food Council. Adverse weather conditions are peasant smallholders who pay little atten- throughout the summer of 1948 caused a re- tion to scientific stockbreeding. A lack of vision of early estimates of a bumper crop, pasturage and feed, resulting from the serious ECRE

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    "ocrText": "14\nrope. Portugal is still dependent on imports\npossibly reaching 600,000 metric tons. By\nfor most of its machinery and fuel, and is in\nNovember 1948 the estimate was only 282,000\nthe precarious position of having to market\nmetric tons. It was, therefore, necessary to\nluxury goods, such as wines and canned fish,\nimport approximately 300,000 metric tons of\nto pay for a large part of its essential imports.\nwheat during the 1948 crop year. Drought\nconditions were intensified in the closing\n2. Description of Present Economic Situation.\nmonths of 1948 and have continued through\na. Agriculture.\nthe early months of 1949. On 31 May 1949\nthe wheat yield was estimated at 363,000 met-\nPortugal's economy is based on agriculture\nric tons or 12.6 percent over 1948 production.\nand fishing, and more than half of the total\nAccording to this estimate Portugal will have\nnumber of employed persons is engaged in\nto import approximately 350,000 metric tons\nagricultural pursuits. Its principal crops are\nof wheat for 1949. As a result, wheat availa-\nwheat, grapes, and olives.\nbilities for 1949 are expected to be further\nOnly 38 percent of the total area of Portugal\nis under cultivation. Maximum utilization\ncurtailed. Of the supplementary cereal crops,\nof land is hampered by lack of capital, primi-\nlocal production of rye and barley normally\nsatisfies domestic requirements.\ntive farming methods, and the concentration\nof population in the north and coastal areas.\nPortugal is one of the world's greatest vine-\nIn addition to this the rapidly growing popu-\nyards, and port wine is one of its most valu-\nlation is constantly pressing against the\nable exports, accounting for 10 percent of the\nmeans of subsistence. Portugal could become\ncountry's export total. By Portuguese law,\nmore nearly self-sufficient in agricultural pro-\nport wine is made exclusively from grapes\nduction if flood control and irrigation facilities\ngrown in a clearly defined area in the upper\nwere adequate and farming methods were\nDouro region in northern Portugal. This\nmodernized. The most striking feature of the\narea, which begins about 40 miles inland from\nagricultural picture under present conditions\nthe city of Oporto and ends at the Spanish\nis the lack of agricultural \"know-how\" and\nfrontier, includes about 556,000 acres. Of this\norganization, poor and badly tended soils, and\ntotal, however, only about 64,000 acres are\nlack of equipment. The government now has\nunder intensive cultivation. For the period\nunder construction several drainage, flood\n1937-1946, wine production in Portugal aver-\ncontrol, and irrigation projects which, when\naged 9,299,000 hectoliters anually. Total\ncompleted, will materially assist in the stabili-\nwine production for 1947 was 10,111,000 hecto-\nzation of agricultural production.\nliters; for 1948, 7,195,000 hectoliters.\nWheat production during the past few years\nOlive oil is another important product of\nhas not been sufficient to meet domestic re-\nPortugal. The annual yield of olives, how-\nquirements, mainly because of unfavorable\never, is subject to exceptionally large varia-\nweather conditions. Wheat production in\ntions. For example, olive oil production for\n1947 was 350,000 metric tons as compared\n1948 was approximately 30 million liters, less\nwith 506,000 metric tons in 1946. In 1945,\nthan one-third of the 1947 production. In\nproduction reached only 315,000 metric tons.\n1949 olive oil production is estimated at 78.8\nAverage wheat production for the period 1935-\nmillion liters.\n39 (harvest years taken as normal) was 477,-\nBecause Portuguese farming depends al-\n000 metric tons. Wheat consumption in 1947,\nmost exclusively on animal traction, livestock\nthough limited by a low ration, averaged some\nplays an important part in the agricultural\n425,000 to 450,000 metric tons. To maintain\nsystem. The OX is the principal draft animal,\nthis ration, therefore, Portugal had to import\nfor the average peasant cannot afford a horse\nwheat from Argentina, in addition to the allo-\nor mule.\ncations from the International Emergency\nAt least 90 percent of the owners of livestock\nFood Council. Adverse weather conditions\nare peasant smallholders who pay little atten-\nthroughout the summer of 1948 caused a re-\ntion to scientific stockbreeding. A lack of\nvision of early estimates of a bumper crop,\npasturage and feed, resulting from the serious\nECRE"
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