Business Practice in Socialist Hungary, Volume 2 by Philip Scranton

Author:Philip Scranton
Language: eng
Format: epub
ISBN: 9783031239328
Publisher: Springer International Publishing

In case of a larger-than-expected 1964 crop, purchasing agencies must “organize storing the grain outdoors.” To prevent decay, “measures are needed to ensure a sufficient number of sacks, pallets and plastic sheets, with the aid of which it will be possible to keep the grain from getting wet.” As for fruits and vegetables, most more fragile than wheat, “in years past” inadequate transport and storage caused significant spoilage, 20,000 to 30,000 tons each summer. Half a billion forints had been budgeted for upgrading “storage, processing and distribution” in 1964, but 350,000 m2 of new warehouse space was immediately needed. Perhaps half of this might be available in time. Not enough: “temporary solutions” for “emergency storage” were required. In the emergency, TSZs, buyers, and food processors tried to install “numerous important organizational and coordination measures,” especially timely scheduling of packing and shipping as produce reached ripeness.37 A worthy initiative, perhaps, but it was no substitute for adequate warehousing. Three years later, TASZI (Marketing Office for Producer Co-ops) commenced an effort to overcome logistical shortcomings. Tasked initially with supplying Budapest markets, the agency “eliminate[ed] the intermediate trade,” directly delivering 500 million forints of farm produce in 1967. TASZI also began sales to the People’s Army, Közért retailers, and state restaurants, though it continued to struggle with storage.38 Overall, the consequences of uneven development in the various components of national purchasing distorted agricultural practices, though manufacturers faced comparable disparities. Understandably, trying to avoid massive losses and the waste of human and natural resources was a key motivation for those advocating broad economic reforms, which culminated in the New Economic Mechanism.39

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