- 2 - 
due to the unfavorable prices ruling on dried prunes in recent years- 
Fresh prune exports show a notable increasing tendency. Improved methods 
of packing and shipping and the construct ion of standard gaue,e railways 
into the prune area are largely responsible for this increase. 
Germany is still the most important export market for Yugoslav 
dried prunes. Expansion of the more near-by markets such as Czecho- 
slovakia, Austria", Hungary and Italy has been encouraged in recent years. 
•Vhile smaller production totals in Yugoslavia have made the markets of 
western Europe less necessary it must also be borne in mind that the 
availability of large quantities of reasonably priced, good duality prunes 
from the Pacific Coast have made the markets of northwestern Europe less 
reliant on Yugoslav prunes. In spite of numerous government rules and 
regulations there has been much complaint in exports markets on the auality 
of the Yugoslav prune. Extremely dry summers, the drain upon tree vitality 
as a result of the scale and the shipment of the prunes in ba~s to distant 
points for water and steam processing, are ^iven as responsible for this 
condition. 
In view of the considerable reduction in the Yugoslav export sur- 
plus of dried prunes 5.n decent years it becomes of importance to ascertain, 
first, whether the Yugoslav industry can overcome the difficulties with 
which it is at present confronted or "-nether it must ultimately disappear; 
and, second whether the inauguration of an official rehabilitation program 
may make it possible to produce a prune of better quality and size which, 
under the existing lower production costs, might become a serious competi- 
tor with the Pacific Coast prune in European markets. 
Relative to the first point, certain well defined conditions in 
the Yugoslav prune industry indicate that the industry- will neither con- 
tinue to decline nor remain at its present low level, t lums in that 
country are grown primarily to supply an essential national beverage, 
prune brandy. The production of plums, therefore, will continue unless 
substitute sources for brandy are developed or restrictions are placed on 
the use of alcoholic beverages. The possibility of either of these develop- 
ments taking place is very remote. Grain alcohol has been used occasionally 
as a substitute for prune brandy but only in years of low crops. Fart of 
the crop losses in recent years have been due to unfavorable climatic 
conditions which may or may not occur a^ain for many years- 
It can be said with a fair decree of certainty that the Yugoslav 
peasants will not only continue producing prunes but will show a renewed 
interest in production whenever the world supply and demand situation 
results in higher prices. furthermore, the packing and export end of the 
industry has a relatively heavy investment in buildings, equipment, and 
personel trained in export selling. The packing and export industries 
as well as the government are giving every encouragement to the mainte- 
nance and development of the industry, : 
