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There has been an over-emphasis on agricultural production with too little 

 attention given to post-harvest activities. Even a normal harvest, let alone 

 a record harvest, entails astounding losses due to the poor location and 

 inefficient use of storage infrastructure and processing facilities. 



Food that moves through the state system is not privately owned and is 

 treated carelessly— a phenomenon which is intimately related to the failure to 

 appreciate the value added through distribution and processing. 



Although the number of private farms is growing, the operators face 

 tremendous difficulties such as declining supplies of agricultural tractors, 

 combines, gasoline, lubricants, fertilizers, and pesticides; the lack of clear 

 land laws; the lack of marketing channels other than the state farm system; 

 and inadequate financing. 



Agricultural reform has unquestionably moved more slowly than reform in 

 most other major economic sectors. This is not a surprise as agriculture is 

 traditionally conservative. While the Russian government is committed at high 

 levels to reform of the agricultural sector, the sector is replete with 

 barriers to the efficient functioning of the market, reflecting the continued 

 large role of the state. The commitment of middle and lower level officials 

 to reform is less clear. The government procured over one-quarter of Russia's 



