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

• Author: Merita Gecaj
• Position: Agency for Agriculture and Rural Development
• Pages: 139-145

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