Ст.н.с. д-р Виолина Хаджиева
Институт по аграрна икономика - София
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Institute of Agricultural Economics - Sofia
The aim of the paper is to outline the development of CAP on the development of farms producing vegetables during the period of application of the Single payment scheme. Vegetable production in Bulgaria is organized in small-sized farms that cover 1.5-2% of the exploited farming land but it forms about one third of the gross plant growing production which reveals the importance of the sub-sector not only for the satisfaction of consumption but also as a source of incomes. In 2003, about 408 579 vegetable farms have been found, which accounts for 67% of all farms and shows the rife distribution of horticulture in the country. At the same time, 406 724 farms are owned by physical persons with average size of 0,97 da, 1 265 are farms run by sole proprietors with average area scale 15 da. Regarding the legal subjects, 190 are cooperatives with mid size 106,5 da, while other legal entities are 289 with average area of 79 da, along with 111 partnership entities with mid size of 15,4 da.
The feature of small vegetable producing farms is that they rely predominantly on own land, financing and family labor and regardless that nowadays they are profitable after accession of Bulgaria in EU they will face serious hardness due to lack of enough liquidity for investment in modernization and further enlargement. Besides, these farms are not yet able to solve their obstacles in terms of adoption of advanced technologies; following the standards for quality, hygiene and safety environmental practices and market adaptation.
The chief tools of CAP, which pertain to vegetable-producers are: direct payment of single area in first three years after accession, the marketing standards for quality and compliance control, interventions, foreign trade regime and producers' organizations (PO). The expected impact on the vegetable producers will evince in following aspects:
- The first three years after accession the size of horticultural farms will be ultimate factor for the impact of CAP on their development. Since the margin of the subsidies is 1-2% supposing the net income of those farms, the subsidies in fact will not influence on their development thus their sustainability will be determined and limited by farms' general competitiveness and their ability to respond adequately to market signals;
- The adherence to the marketing standards is an element of CAP. It can temporarily hinder the producers but indisputably high quality products find better reception on the market;
- The foreign trade regimen ensures a specific protective clause that aims to avoid the influence of the factors that are unfavorable for the foreign market and to follow better the trade flows of some sensitive products;
- The producers' organizations provide possibility for solving their market problems. Their creation in Bulgaria is hampered by various factors, such as: lack of markets; lack of concentration of plantations in one region; small-sized plots; lack of the necessary start -up capital; inability to provide the required production of 1,000 t per year; breach of law by the agricultural producers; deficiency of experts; insufficient motivation.
Regardless of the fact that the mechanisms of CAP are generally positively disposed to the producers the accession of our country to the EU is not expected to provoke sudden vitalization of vegetable production. Those farms that are most quickly and best adapted to the market mechanisms by effective production and adherence to the requirements and standards will continue to exist in the sector.
Key words: Common Agricultural Policy, vegetable-growing farming, development.
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Статията е постъпила в редакцията на 21.03.2007 г.