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Manufacture of slivovica (prune brandy) 
Among the few simple wants- of .the Yugoslav peasants, slivovica, a 
'brandy made from the fermented juice of the prune, is an absolute necessity. 
This is typically illustrated on market days when peasants on their way to 
market will be found enjoying a breakfast of a loaf of coarse bread and a. 
bottle of slivovica. It is a national drink and is consumed in large 
Quantities. The prune season is not considered at an end until the needs 
in this respect are taken care of. The other uses of the prune whether 
dried, turned into jam or shipped out fresh are entirely secondary to this 
primary need. Once this is felled ruling market prices determine whether 
additional Quantities of prunes are to be distilled or whether they shall 
be used for other purposes. Very often the packing plants operate a still 
in connection with their packing activities to take care of fruit unsuitable 
for shipping. 
Before tka war from forty to fifty carloads of slivovica were exported 
annually to Austria-Hungary from Bosnia alone but high import duties have 
now practically closed those outlets. It is stated that before the war 
brandy production in Bosnia amounted to 500 car loads per annum.. Daring 
the war many of the copper kettles used in distilling this brandy were con- 
fiscated by authorities although in • 1923 there were still 3,710 of such 
kettles in use in Bosnia alone. There is no tax on the production of prune 
brandy in Serbia or Bosnia as long as the brand,'" is for home consumption. 
When sold, however, Bosnia levies a tax, so if a peasant receives 12 dinars 
(21 cents) a liter (about one quart) the tavern will charge 22 dinars (40 
cents) a liter, due largely to the tax levied. There is a tendency on the 
part of authorities in Yugoslavia to urge a reduction in the quantity of 
prunes going into brandy and using, more of the fruit for drying, on the 
argument tha^< local consumption of prunes in the form of brandy is an eco- 
nomic loss while prune exports bring money into the Kingdom. The habit 
is so ingrained, however, and the life of the average peasant so simple 
and unvaried, that no progress has been made in that direction. 
Bag shipments vs. b o xes 
7ith only twenty of the Kingdom's thirty-six packing plants in 
partial operation in 1928, the practise of exporting unprocessed prunes 
in bags to be packed in the foreign markets is of great concern to the 
domestic packing industry. America, in this respect, has a point in 
common with the Yugoslav industry. For some time, the Yugoslav packers 
have been demanding a heavy export tax on prunes exported for packing in 
the foreign markets. A rather insignificant export tax of 2k dinars (4 
cents) per 100 kilograms (220 pounds) or 125 dinars ($2.20) per carload 
(22,050 pounds) "'as allowed in. 192V. This tax, however, does not apply 
to the very small sizes. Moreover it applies only to prunes in bags and 
n t to those in boxes. ' * . 
It is still too early to determine what the effect of this tax hag 
teen on relative 'exports of bags and boxes although northwestern Germany 
is far less of an export market in 1927 and 1928 than formerly. "1. ether 
