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Agriculture in Bulgaria. Atanas Kiskinov National Dairy Board of Bulgaria Co-financed by the European Union within the programme "Europe for Citizens" 2007 – 2013. Macroeconomic indicators. Gross value-added in agriculture EU. Gross value-added in agriculture Bulgaria.
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Agriculture in Bulgaria Atanas Kiskinov National Dairy Board of Bulgaria Co-financed by the European Union within the programme "Europe for Citizens" 2007 – 2013
Agriculture in Bulgaria after 1990 • Fundamental reform in agriculture; • Privatization; • Destruction of old production structures; • State withdrawal from agriculture; • Lack of sufficient governmental assistance during the period of reforms; • Lack of sufficient financial assistance for farmers.
Results: Agriculture is no longer an engine of national economy • Gross value-added in Agriculture stays constant or decreasing whereas gross value-added in industry is increasing. • Agriculture plays as burden in economy. • Labour force in agriculture is going down. • Managerial capacity in agriculture is extremely poor. • Low effectiveness and efficiency in agriculture. • Low interest in investments in agriculture.
Results: Extensive and dependable production • Serious unsolved structural problems • External competition puts the sector under pressure. • Low competitiveness leads to extensive but expensive (not enough technologies) production. • Strong dependency on environmental and climate change. • State efforts oriented mainly to formal reforms in legislation and meeting the CAP requirements.
Results: Trend to unbalanced agricultural structure • 78% of arable land is covered by grain and oil-bearing crops. Low production and low employment are essential for these sectors. • Almost dead sugar-beet sector => high rates of import. • For 2002-2006 land used for vegetables decreased with 14%. • Trend from export-oriented vegetable and fruit sector to import-oriented structure. • Less land for vineyards and decrease in wine production. • Unbalanced agricultural structure is typical for developing countries or for countries with unfriendly environmental conditions. Both are not supposed to apply to Bulgaria.
Results: Stock-breeding • Decrease in number of animals (May 2007 – May 2008: • cows – 2.8% down; • sheep – 6.2% down; • goats – 7.8% down. • Low productiveness. • Small-sized farms. • Insufficient row production for the processing industry. • Monopoles established in some sectors (pigs and fowls).
How this situation could be improved? • Bigger farms, higher technologies, increasing investments; • Improvement of quality and strong marketing on the Internal market; • Funds form Rural Development Programme; • Organic farming development; • Improvement of managerial knowledge and experience in farming; • Establishing and development of strong farmers’ organizations, to whom government should delegate responsibilities and real authority; • Higher state and NGO assistance considering legislation, financial aid, advisory service.