Transcript Agriculture in Bulgaria - Youngfarmerproject.ceryc.eu

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
Economic Indicators
2004
2005
2006
2007*
2008*
Population (in 1000 th)
7761
7719
7679
7679
(est.)
7679
(est.)
GDP (in Billions BGN)
38.275
41.948
49.091
54.864
(est.)
61.711
(est.)
GDP per capita
4919
5434
6392
7144
(est.)
8036
(est.)
Industry %GDP
29.9
30.4
Agriculture %GDP
10.8
9.3
Economic growth
5.7
5.5
6.1
6.4 (est.)
6.4 (est.)
Inflation
4.0
6.5
6.5
7 (est.)
6.9 (est.)
Balance of Payment:
Current Account (Mill Euro)
-1131.4
-2621.9
-3934.7
-5898.0
(est)
-6914.3
(est.)
Exports (Mill BGN)
22 192
25 766
31 420
15717
(q2)
n.a.
Imports (Mill BGN)
26 115
32 692
40 741
21640
(q2)
n.a.
Employment rate
27.17
28.94
46.7
n.a.
n.a.
Unemployment rate
12.2
10.7
9.0
7 (aug)
n.a.
Gross value-added in agriculture EU
600000
500000
400000
EU 15
300000
EU 25
EU 27
200000
100000
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Gross value-added in agriculture
Bulgaria
Bulgaria
2000
1800
1600
1400
1200
1000
Bulgaria
800
600
400
200
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Dynamics in Gross Value-added
Indicators
2001
2002
2003
2004
2005
2006
Gross value-added in the
national economy (million
levs)
26 356
28 526
30 227
32 942
42 797
49 091
Gross value-added in
Agriculture (million levs)
3 520
3 446
3 484
3 567
3 308
3 400
Gross value-added in
Agriculture as a percentage
of national gross valueadded
13,4
12,1
11,6
10,9
9.4
8.6
Change in overall value-added
(%)
0.3
5.5
-1
2.2
-9,5
- 1,7
Labour force in Agriculture as a
percentage of overall labour
force in Bulgaria
25,8
25,8
25,5
25,0
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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.