Decision making pattern of subsistence farmers in Bulgaria

Economic research by and large is dominated by a ‘rationality’ paradigm. Economic decision making within this paradigm is viewed as a maximising procedure. In general the latter represents the decision-making as a choice amongst a well defined set of alternatives. In this paper we question this and analyse the options of the small-scale subsistence farmers in Bulgaria in the way they see them. By applying mental accounting methodology we deduce some significant characteristics of Bulgarian subsistence agriculture.

Structural changes and labour adjustments in rural Bulgaria

The rural areas in Bulgaria cover more then 80% of the country territory and account for about 29% of the population. Their development depends strongly on agricultural sector. The paper examines structural changes in agriculture, labour market situation in rural areas and presents the main results of the survey performed in three region of Bulgaria. The study shows a substantial decline in the number of farm with economic size between 0,5 and 3 ESU and a stable increase in the number of large farms. Major factors having impact on farm restructuring are: improvements in economic situation, in particular the increase in real income, positive developments of land market, deterioration of age structure of rural population and the habits of rural population to keep some agricultural activity. An important development of subsistence and semi subsistence farms is observed indicating two opposite processes: a process of transforming of a small part of semi-subsistence into commercial farms or into higher economic size group and another part of them converged to subsistence farms. The number of subsistence farms with economic size 0,5 – 1 ESU also declined as the reduction is either due to reduction of farm activity or due to exit from the sector. The most important option for employment and source of income in villages studied is agriculture, but the earned income is much below the national average The most important factor having impact on a decision to start a job outside agriculture is “To ensure households leaving standards/ generate cash income”. Generally the respondents do not think that they will have possibility to start their self employed business outside agriculture in the next 5 years. Only 25% of them expect to stay in agriculture as nearly 50% of the commercial farms will keep operating and only 17% - 26% of small farms will remain in the sectorrural development, farm restructuring, labour markets, Community/Rural/Urban Development, J21, R23,

The quality and safety through organic foods supply chain in Bulgaria

The organic food market in Bulgaria is newly emerging and is comparatively small. The share of realized Bulgarian organic produce in the country is below 5 %. The purpose of this article is to determine the effect of the structure, management and functioning of food supply chain upon the quality and safety of organic food regarding consumer demand. The scientific research was based on Delphi’s enquiry method and 26 Bulgarian experts were interviewed. The results show that the nature and character of organic food production is one of the most secure and sustainable agricultural productions, which determines the high quality and safety of the final produce. According to experts, food safety in addition to taste and nutritional value is the most important quality criteria for organic products. The main objectives of the current GMP (Good Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Point systems) are to ensure product safety and compliance with the visual size and labelling specifications and to maintain traceability. However, they are thought to be less well developed and implemented in organic food supply chains, and are almost never used in short local (e.g. direct sales or farm shop) supply chains and regional (e.g. farmers market) supply chains, that are popular in Bulgaria. The systems of quality assurance and management (ISO 9000, etc.) may be successfully adopted for organic foods as well by adapting them to their production and processing specifics and to the characteristics of the chain of supply

D2.2 Report on analysis of biographical narratives exploring short- and long-term adaptive behaviour of farmers under various challenges

The Horizon 2020 project Towards Sustainable and Resilient EU Farming Systems (SURE-Farm) defines resilience as maintaining the essential functions of EU farming systems in the face of increasingly complex and volatile economic, social, ecological and institutional risks: Meuwissen (2018) suggests that resilience over time is achieved across the increasingly fundamental attributes of robustness, adaptability and transformability, representing system responses to short, medium and long-term external drivers, respectively. Maxwell (1986) also recognised that external drivers vary significantly in time and space and distinguished four different types of perturbations: noise, shocks, cycles and trends. Analysis of narratives (Rosenthal, 2004; Riessmann, 2008) can be used to enable researchers to gain indepth understanding of the rationale surrounding farmer decision making when faced with drivers of change (e.g. MacDonald et al., 2014), and how farmers manage critical decision points in their farming businesses. This understanding is crucial for developing the tools and policy measures needed to support the sustainability and resilience of European agriculture. We have used personal histories of family farms, and business histories of corporate farms, to identify phases in the separate production, demographic and policy adaptive cycles (and consequences of interactions between them) as they have impacted on the individuals concerned and their business enterprises. Biographical stories were collected from nine to ten narrators (early-, mid- and late-career), in each of five case studies chosen to represent a range of regions and farming systems in Europe. These included large scale family and corporate arable farms in Northeast Bulgaria (BG) and the East of England (UK); dairy farms in Flanders (BE); small-scale perennial crop (hazelnut) farms in central Italy (IT) and high value egg and broiler systems in Southern Sweden (SE). A single question was used to initiate the narrators’ stories, without qualification beforehand, supported only with expressions of interest and encouragement in the first part of the interview, with subsequent exploratory questions devoted to clarifying the internal structure of the narrative. Narratives were transcribed and analysed to identify the drivers and responses to critical decision-making points in the stories. Comparisons across the five regional farming system cases have also been made to generate wider insights into how the narrators responded to different challenges. The drivers leading up to critical decision points in the narratives were grouped according to themes which followed a spectrum ranging from internal (those arising from within the farm system), to external (those acting on the farm system). Internal drivers included health, relationships, intergenerational change, retirement, redundancy. The more intermediate drivers included financial pressures, skills, labour, disasters, land issues, water. External drivers included supply chain factors, markets, technology, policy and regulation. Some drivers and responses were observed to relate to the farmer whilst others related to the farming system. Key findings from cross-narrative analysis distinguished inertia as the predominant response to system challenges, and that incremental changes (or creeping change, as we have termed it) in the system over a long-time frame rather than a definable critical decision point, is widely evident in the narratives. Climate change was not identified as being a driver and was only mentioned at all in two of the 45 narratives. Farmer identity ranged broadly across the narratives with the extremes being represented by those who farmed because it was their vocation, to those who perceived themselves first and foremost as business operators. To an extent, these identities reflected the degree of attachment to land, with the more vocational farmers having a strong attachment to their farmed land (particularly in the Flemish case) and the more business-minded (particularly in Northeast Bulgaria and the East of England) having less attachment. The long-term nature of the hazelnut crop in Central Italy meant that attachment to the land was strong, regardless of farmer identity. Family support, whether perceived as positive or negative by the narrator, was found to influence decision-making, and changing work/life balance expectations, particularly amongst early-career farmers with young families, was also influential. The narratives revealed different approaches to risk alleviation, both within and across case studies. In instances where land availability was not restricted (for example, Northeast Bulgaria, and to some extent, East Anglia), scale enlargement was predominant, but where land was restricted, diversification was the predominant response (for example, in the Flemish narratives). There were strong similarities and distinctive differences across the narrative contexts. Similarities included the dominance of internal drivers, intergenerational change as a major critical decision point, the perception of many external drivers as noise, and more frustration with policy drivers compared with weather events. There were few mentions of insurance by the narrators. The findings indicate that robustness is demonstrated in response to many drivers classified as cycles and shocks, whilst prolonged trends result primarily in adaptation. Transformations were relatively infrequent in the narratives and those identified were not radical in nature. The main policy related conclusions from the study suggest that farming systems are ill-equipped for a rapid move from direct payments to income insurance. They also appear to be unprepared for climate change. Long-term, coherent strategies required for dealing with intergenerational change were not apparent, confirming parallel literature that suggests that legal, social welfare and policy obstacles to farm succession need to be addressed

Development of Agricultural Market and Trade Policies in the CEE Candidate Countries.

This synthesis report focuses on the evolution of agricultural market and trade policies in the Central and Eastern European (CEE) candidate countries in the period 1997 to 2001. The developments were crucially influenced by (OECD, 2000a): ⢠the situation in world agricultural markets; ⢠the overall macroeconomic development in the countries considered; ⢠the prospective EU accession; ⢠bringing domestic agricultural policy in line with the Uruguay Agreement on Agriculture (URAA). High 1997 agricultural prices on world commodity markets were followed by a marked depression in 1998. With the exemption of milk products this trend continued in 1999. Likewise the economic and financial crisis in Russia had a considerable impact on agricultural policies. It hit the regions´ exports resulting in a decline in industrial as well as agricultural output1. Thus, compared to the previous years most of the CEE candidate countries experienced a slow down or even negative rates of growth in their Gross Domestic Product (GDP) in 1998 and 1999. In addition those countries felt increased budgetary pressures. Agricultural market and trade policies largely reacted to these developments. Border protection was increased in many countries in 1998. This was combined in some cases with export subsidies, and ad hoc producer aids to mitigate the adverse effects. The prospect of EU accession also had an influence on the agricultural policy design in the region with many countries implementing EU-type policy instruments. Thus, the importance of per hectare and per head payments increased in the region, quota like measures were implemented in some countries and as part of this development Estonia introduced tariffs for agro-food imports. Finally, many countries also continued to adjust their policies to comply with their commitments agreed to in the World Trade Organisation (WTO). Despite these general tendencies there are also differences in the development of agricultural policies between the various CEE candidates. Chapter 2 therefore provides an overview of the changes of agricultural market and trade policies in each of the 10 accession countries. It addresses the policy issues market access (e.g. tariffs, special safeguard measures), export subsidies (value and quantities) and domestic support (intervention policies, direct payments, input subsidies, production quotas). Chapter 3 provides a brief assessment of recent policy developments in the region in the light of EU accession and WTO commitments. The development of prices and values, e.g. export subsidies, agricultural support expenditure, were presented in the background papers provided by the country experts in current prices in national currencies. In this synthesis report they are in addition converted in Euro. This firstly allows for a better comparison among the CEE candidate countries as well as between those countries and the EU. Some of the accession countries still suffer from high inflation and thus a strong depreciation of their currency. Thus secondly, the conversion to Euros allows the comparisons to be made in real terms.Industrial Organization, International Development, Productivity Analysis,