VZCZCXRO5587
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHNEH RUEHPW RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHAH #0047/01 0131251
ZNR UUUUU ZZH
P 131251Z JAN 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 2111
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 4670
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2473
RUEHKO/AMEMBASSY TOKYO PRIORITY 2338
RUEHIT/AMCONSUL ISTANBUL PRIORITY 2918
RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEHRC/USDA WASHDC

UNCLAS SECTION 01 OF 02 ASHGABAT 000047 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
ANKARA FOR AGRICULTURE COUNSELOR 
 
E.O. 12958: N/A 
TAGS: EAGR ECON SOCI TX
SUBJECT:  TURKMENISTAN'S GRAIN PRODUCTION: THE GOVERNMENT 
STILL MAKES FARMERS TO GROW GRAIN BY COMMMAND METHODS 
 
¶1.  (U) Sensitive but unclassified.  Not for public 
Internet. 
 
¶2. (SBU) SUMMARY: In 2008 Turkmenistan produced 920,000 
tons of grain.  This is much lower than the amount 
required for domestic consumption.  In order to improve 
grain and also cotton production, President 
Berdimuhamedov announced in early 2007 his intention to 
reform state agriculture.  According to Berdimuhamedov, 
the key to the success of the reform was releasing 
farmers from official interference.  However, the 
government continues central command management in 
agriculture by setting timeframes for  planting and 
harvesting start-ups and other farming activities.  This 
practice discourages farmers and has a negative impact on 
the harvest.  END SUMMARY. 
 
GRAIN FIGURES ANNOUNCED IN DECEMBER 
 
¶3.  (SBU) President Berdimuhamedov announced at the 
December 15 Cabinet meeting that Turkmen farmers had 
harvested around one million metric tons of grain.  This 
figure is for the so-called bin weight, which experts 
believe to be seven or eight percent higher than the 
actual weight of the commodity following cleaning and 
dehydration.  If this is taken into account, the actual 
figure for the 2008 grain harvest is 920,000 tons.  It 
appears that this is also the maximum that Turkmenistan 
can currently produce, based on the total area of 900,000 
hectares used to grow wheat and the average yield of 1.2 
tons of wheat per hectare.  It is much lower than the 
amount required for domestic consumption, which Minister 
of Agriculture Esenmurat Orazgeldiyev estimated as 
1,600,000 tons. 
 
CHANGE IN AGRICULTURE POLICY FROM EARLY 2007 -- IN NAME 
ONLY 
 
¶4.  (SBU) In order to improve grain and cotton 
production, President Berdimuhamedov announced in early 
2007 his intention to reform state agriculture, adding 
that the most important provision for the success of the 
reform is "to make a farmer the real owner of the land 
and free him from numerous instructions and 
supervisions."  According to an independent source, some 
Turkmen farmers had complained that official interference 
and ineptitude impaired agricultural productivity, which 
may have influenced Berdimuhamedov's decision to change 
agriculture policy.  A farmer in Dashoguz told the source 
he wanted to till the land in early November -- when 
weather conditions made the job easier -- but he was told 
to stop his work because the order to begin had not been 
received from Ashgabat.  The Ministry did not send the 
order to begin work until mid-December, at which time 
harsh weather conditions made it "impossible to get 
anything done." 
 
MANY CITIZENS STILL DEPEND ON SUBSIDIZED BREAD 
 
¶5.  (SBU) Residents of provincial towns, which cannot 
afford to buy expensive commercially-supplied bread and 
depend on state-supplied or so-called "social bread", 
often experience shortages due to an insufficient supply 
of subsidized bread.  (NOTE: The price of this subsidized 
bread is 1,000 manat or 7 cents per loaf.  Commercially- 
supplied bread costs 5,000 manat or 35 cents per loaf at 
the current exchange rate.  END NOTE.)  Because of short 
supply, state bread stores will sell each customer a 
maximum of two loaves of "social bread" -- and only if 
that person is registered as a local resident.  According 
 
ASHGABAT 00000047  002 OF 002 
 
 
to Pol/Econ Section contacts in Lebap and Mary provinces, 
people have to stand in long lines from 6 a.m. to 8 a.m., 
if they are to have any hope of buying rations of "social 
bread". 
 
¶6.  (SBU) COMMENT: Despite President Berdimuhamedov's 
promise to stop official interference in the farming 
sector, provincial officials maintain the practice and 
the policy of central command management in all sectors 
of the national economy, including agriculture, 
continues.  In this case, as is common, the official 
statements of reform lag far behind continued practice, 
because it is difficult for officials to give up control. 
END COMMENT. 
 
MILES