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I have visited the former Soviet Union numerous times in the past two 

 years. All of the officials of the newly independent states with whom we have 

 met have placed assistance in reforming agriculture and food at the top of 

 their lists of priority needs. 



This emphasis on agricultural development and reform is shared by many, 

 although not all in the political and economic hierarchy. Supporters of 

 reform include mayors of cities, governors of oblasts, plant managers, and 

 very importantly, people on the street. 



Currently, the FSU countries experience a high degree of loss of certain 

 food commodities between field and table. U.S. experts believe that 

 distribution, more than production, remains at the heart of the FSU food 

 problem. Economic mismanagement and shortcomings of physical infrastructure 

 are endemic. 



There Is under- investment in the food distribution system, which creates 

 inefficiencies and bottlenecks. The physical plant is not structured 

 properly. Most facilities are outdated; others underutilized; and many 

 situated in the wrong location. There are no organized wholesale markets. 

 These structural problems are exacerbated by lack of confidence in the ruble 

 as a medium of exchange. FSU countries do not fully appreciate that part of 

 the value of food products is created in the distribution system. 



