Links in the Value Chain, Cooperation and the Impact of Government Subsidies in Medicinal and Aromatic Plants Sector

AuthorMerita Gecaj
PositionAgency for Agriculture and Rural Development
Pages139-145
139
Vol. 3 No. 1
May, 2017
Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Graz-Austria
ISSN 2410-759X
Acces online at www.iipccl.org
Links in the Value Chain, Cooperation and the Impact of Government Subsidies
in Medicinal and Aromatic Plants Sector
PhD (C.) Merita Gecaj
Agency for Agriculture and Rural Development
Abstract
The objective of this paper is to identify links in the value chain, cooperation and the
impact of government subsidies for medicinal and aromatic plants sector taking into
consideration farmers who cultivate Medicinal and Aromatic Plants, furthermore to
present a descriptive analysis of data in MAP sector. An analysis of subsidies in the
sector of medicinal and aromatic plants in Albania through years is conducted and
also is performed a survey, through a structured questionnaire, with 200 farmers who
cultivate MAP, in order to asses links in the value chain, cooperation and the impact
of government support. The studied period is from 2012-2016. Survey data for 200
farmers are entered into a database, and they are statistically analysed. Initial analysis
consists of descriptive statistics, which is combined with clustering and multivariate
statistical analysis. As a result of survey we came into conclusion that the need for
cooperation with other farmers and the need for cooperation with buyers, during the
last f‌i ve years, have increased. It is conf‌i rmed that Government subsidies have an
impact in cooperation between farmers.
Keywords: Subsidies impact, Value Chain, Cooperation, MAP Sector.
Introduction
The purpose of the study is to identify some of the main results of the policy of direct
support for the sector of medicinal and aromatic plants in Albania, to identify links
in the value chain, cooperation and the impact of government subsidies for medicinal
and aromatic plants sector for farmers who cultivate MAP. The scheme of planting
in block of medicinal and aromatic plants like sage, lavender, thymus oregano,
according to areas previously def‌i ned in regionalization is supported as early as in
2012, 50% of the total project cost, but no more than 200,000 (two hundred thousand)
lek/ ha. Medicinal and aromatic plants are found throughout the country but some
regions are more widespread and they have organized collection, here it is included:
Malesi e Madhe, Shkodra, Skrapar, Elbasan, Berat, Permet and Durres. The income,
from the collection of medicinal and aromatic plants account for 35% of income in
families in northern Albania. In recent years, it is estimated that the production of
MAP cultivated, has signif‌i cantly exceeded the levels of MAP wild collected in value
and quantity (no statistics, but actors of the sector contact, conf‌i rm this trend) and
expected role the cultivation grow more due to increased area planted. From 2013
have been planted 371.19 ha, which is a signif‌i cant increase in area compared with
274.69 ha, planted in 2012. This increase in area planted is driven by subsidies, as
well as the creation of a relatively basic modern processing in the country, and by

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