Characteristics of farming systems in Albania

190 Pages·2015·35.15 MB·English

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J R C S C I E N C E A N D P O L I C Y R E P O R T S
Characteristics of farming
systems in Albania
Fatmir Guri,
Ilir Kapaj,
Bahri Musabelliu,
a
ni
a Maksim Meço,
b
Al Eneida Topulli,
n
s i Remzi Keco, Natasha Hodaj,
m
e Shpresim Domi,
st
JRC Mission sy Gentjan Mehmeti,
ng Sergio Gomez y Paloma
As the Commission’s mi
ar
in-house science service, of f
the Joint Research Centre’s s
c
mission is to provide EU sti
policies with independent, eri 2015
evidence-based scientific ct
a
and technical support ar
h
throughout the whole C
policy cycle.
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Directorates-General,
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Report EUR 27260 EN
doi:10.2791/967875
ISBN 978-92-79-48387-5
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E-mail: [email protected] Title: Characteristics of farming systems in Albania
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Fax: [phone] Authors: Fatmir Guri, Ilir Kapaj, Bahri Musabelliu, Maksim Meço, Eneida Topulli, Remzi Keco, Natasha Hodaj, Shpresim Domi,
Gentjan Mehmeti, Sergio Gomez y Paloma
https://ec.europa.eu/jrc
https://ec.europa.eu/jrc/en/institutes/ipts Luxembourg: Publications Office of the European Union
Legal Notice 2015 – 186 pp. – 21.0 x 29.7 cm
This publication is a Technical Report by the Joint Research Centre, the European Commission’s in-house science service.
It aims to provide evidence-based scientific support to the European policy-making process. The scientific output expressed EUR – Scientific and Technical Research series –ISSN 1831-9424 (online)
does not imply a policy position of the European Commission.Neither the European Commission nor any person
acting on behalf of the Commission is responsible for the use which might be made of this publication. ISBN 978-92-79-48387-5 (PDF)
JRC95833 doi:10.2791/967875
EUR 27260 EN
ISBN 978-92-79-48387-5 (PDF) Abstract
ISSN 1831-9424 (online) This report is based on information collected from a face-to-face survey of more than 1 000 farmers from three regions of
Albania (namely Berat, Elbasan and Lezhë). To identify a representative sample of Albanian farming systems, a three-step sample
doi:10.2791/967875 design was used. A group of 11 variables dealing with the socio-economic characteristics of farms was selected to build up the
farming system typology. Two typologies are used: one for the whole sample (three regions) and a second one for each region. The
Luxembourg: Publications Office of the European Union, 2015 differences between the two typologies are considered to be a proxy indicator of different characteristics of farming systems in
each region. The farm types identified are (1) poly-culture, mainly for the market; (2) leisure farms; (3) arable crops; (4) fruit trees;
© European Union, 2015 (5) self-sufficient; and (6) livestock. The farm typology is slightly different for the regions of Berat and Lezhë.
The farm types’ strategies are constructed according to the land, infrastructure facilities and the investment availability of
Reproduction is authorised provided the source is acknowledged. farms. Non-agricultural incomes (remittances, income from the construction, trade, pensions, etc.) appear to provide an important
economic support for the farm household.
Farming structures in rural areas are characterised by the use of more labour and lower inputs. The farm types that tend to
specialise in one activity are not always those that make the best use of labour and land.
Farming does not provide enough income to repay the work put in at the official minimum wage level. Non-agricultural work is
better paid. Albanian farms provide at least a minimal income that is enough to keep the household members above the threshold
of extreme poverty.
The farm types that base their incomes on agricultural activities are poorer than those that base their income on non-agricultural
activities. Income structures and the low incomes generated by work in agriculture suggests that rural migration towards urban
areas and abroad is a phenomenon that will persist into the future.
Characteristics of
farming systems in
Albania
Fatmir Guri1, Ilir Kapaj², Bahri Musabelliu²,
Maksim Meço², Eneida Topulli², Remzi Keco², Natasha
Hodaj², Shpresim Domi², Gentjan Mehmeti²,
Sergio Gomez y Paloma1
1European Commission, Joint Research Centre, Institute for Prospective Technological
Studies, Seville, Spain
²Agricultural University of Tiranë, Faculty of Economics and Agro-business, Tiranë,
Albania
2015
Joint Research Centre

Contents
1. Preface 9
2. Executive summary 11
3. Introduction 13
4. Characteristics of Albanian agriculture and methodological issues 15
4.1 Characteristics of Albanian agriculture 15
4.1.1 General information 15
4.1.2 The importance of the agriculture sector 17
4.1.3 Farm structure 18
4.1.4 Production characteristics 19
4.1.5 Agricultural policy framework 22
4.2 Farm typology in Albania 22
4.2.1 Introduction 22
4.2.2 Is a typology really needed in Albania? 23
5. Methodology 27
5.1 The sample design 27
5.1.1 Selection of three representative regions (prefectures) 27
5.1.2 Farm selection 31
5.1.3 Regional up-scaling 33
5.2 Farm household typology 33
5.2.1 Farm household typology indicators in Albania 33
5.2.2 Clustering farms 34
5.2.3 Cluster analysis 36
5.3 Methodology of farm viability analysis 36
5.3.1 Farm net income calculation 36
5.3.2 The farm type viability analysis 38
6. The farm typology results 39
6.1 Sample analysis results 39
6.2 The cluster analyses on a regional level 41
6.2.2 Farm typology for the Elbasan region 43
6.2.3 Farm typology for the Lezhë region 45
6.2.4 Comparison of sample-based and region-based farm typology 47
7. Elbasan region: agricultural characteristics 49
7.1 Administrative organisation 49
7.2 Description of the natural resources and geography 50
7.2.1 Land area 50
7.2.2 Natural resources 50
7.2.3 Population 50
7.3 Socio-economic situation 52
7.3.1 Economic development 52
7.3.2 Analysis of the regional farm typology 52
7.3.3 Farm family structure 53
7.3.4 Education level 53
7.3.5 Type of farm labour 55
7.3.6 Land structure and farms size 56
7.3.7 Irrigation 57
7.3.8 Equipment and tool inputs 58
7.3.9 Farm agricultural production structure 58
7.3.10 Livestock production structure 59
7.3.11 Income and cost 61
7.4 Analysis of farm economic performance 63
7.4.1 Farm productivity 63
7.4.2 Farm viability 64
7.5 Conclusions 66
8. Berat region: agricultural characteristics 67
8.1 Geographical characteristics 67
8.1.1 Berat district 68
8.1.2 Kuçovë district 68
8.1.3 Skrapar district 68
8.2 Rural and urban infrastructure 68
8.2.1 Economy, infrastructure and geography 68
8.2.2 Economic development of the region 70
8.3 Agricultural development of the region 70
8.3.1 Farms and production capacities 70
8.3.2 Farms and development of agricultural activities 71
8.3.3 Family structure 72
8.3.4 Farm structure 73
8.3.5 Irrigation 74
8.3.6 Equipment and tool inputs 75
8.3.7 Extra-farm activities 76
8.3.8 Crop production 77
8.3.9 Livestock production 78
8.3.10 Income and costs 81
8.4 Analysis of farm economic performance: Berat region 83
8.4.1 Farm productivity 83
8.4.2 Farm viability 85
8.5 Conclusions 86
9. Lezhë region: agricultural characteristics 87
9.1 General information about the region 87
9.2 Natural resources and geography 88
9.2.1 Land resources 88
9.2.2 Natural resources 88
9.3 Population 88
9.4 Socio-economic situation 89
9.4.1 Economic development 89
9.5 Analysis of the regional farm typology 89
9.5.1 Family structure 90
9.5.2 Farm structure 92
9.5.3 Crop production 94
9.5.4 Livestock production 94
9.5.5 Incomes and costs 96
9.6 Analysis of farm economic performance: Lezhë region 99
9.6.1 The farm type viability analysis 99
10. Conclusions 103
11. References 105
12. Annexes 107
12.1 Annexes 1 Farm household questionnaire 107
12.2 Annexes 2 Agenda and presentation of the first workshop 123
12.3 Annexes 3 Agenda and presentations of the second workshop 155
List of tables
Table 1: A non-exhaustive table of typologies applied in Albania 24
Table 2: Regional ranking 28
Table 3: Region selection 30
Table 4: Definition of the primary sampling units 31
Table 5: Area definition for each stratum 31
Table 6: Region sample 32
Table 7: The results of the Kaiser–Meyer–Olkim test and Bartlett’s sphericity test 35
Table 8: Method of calculation of work and land productivity 38
Table 9: The results of cluster analysis for the whole sample 39
Table 10: Farm typology for the Berat region 41
Table 11: Farm typology for Elbasan region 43
Table 12: Farm types for Lezhë 45
Table 13: Statistically important variables for the whole sample and for regions 47
Table 14: The farm types for the sample and for each region 48
Table 15: Districts and distribution of questionnaires 52
Table 16: Types of farms and their number identified in the region of Elbasan 52
Table 17: The land use in Berat region (ha) 68
Table 18: Poverty indicators, Berat 2012 70
Table 19: Agricultural production evaluated by sector and activities for 2012 71
Table 20: Number of different types of farm machinery owned 75
Table 21: Income structure by farm type in Berat region (ALL) 83
Table 22: Districts and number of questionnaires returned 89
Table 23: Farm structure (land) 92
Table 24: Surface measurement units 119
Table 25: Agricultural crops (Q) 120
List of boxes
Box 1: Main indicators of the Albanian economy 15
Box 2: Farm household income calculation 37

List of figures
Figure 1: Agro-ecological areas in Albania 16
Figure 2: The structure of Albania’s gross domestic product in 2011 17
Figure 3: Farm size (ha) for 2012 and sales income distribution (value) 18
Figure 4: Distribution of livestock production (in value) for 2000 and 2012 19
Figure 5: Breakdown of harvested area by main crops for 2000, 2005 and 2012 20
Figure 6: Breakdown of the value of crop production for 2000 and 2012 21
Figure 7: Import–export ratio over the period 2000–2012 21
Figure 8: The development of fruit tree production (1996–2012) and greenhouse area (2006–2012) by region 23
Figure 9: Region classification 29
Figure 10: Sample distribution at commune level 32
Figure 11: The dendogram of cluster analysis 36
Figure 12: Regional representation of farm typology 40
Figure 13: Proportion of each farm type in Berat 42
Figure 14: Distribution of farm types in Elbasan 44
Figure 15: Distribution of farm types in Lezhë region 46
Figure 16: Map of Elbasan region 49
Figure 17: Population distribution according to the size of administrative unit 51
Figure 18: Population trend in Elbasan region 2001–2013. 51
Figure 19: Farm family structure 53
Figure 20: Education level of farmers 53
Figure 21: Education level according to typologies 54
Figure 22: Farm size according to the size of the labour force 55
Figure 23: Types of farm labour according to typology 55
Figure 24: Farm size and number of plots 56
Figure 25: Farm size according typologies 56
Figure 26: Percentage of farms using irrigation within cluster 57
Figure 27: Crop production structure (in value) among farm types as a proportion of total agricultural production 58
Figure 28: Livestock production structure (% of farms within cluster) 59
Figure 29: Livestock production structure (% of farms among clusters) 59
Figure 30: Structure of livestock production in value (as percentage of total livestock production) 60
Figure 31: Farm net income and off-farm net income and their proportion of the total household income 61
Figure 32: Farm main expenditure structure in absolute values per hectare 62
Figure 33: Means of financing farm expenditure 62
Figure 34: Farm net income/annual work unit 63
Figure 35: Farm net income/utilised agricultural area (ALL) 64
Figure 36: Annual work unit repayment as a proportion of the minimum wage 64
Figure 37: Extreme poverty level analysis in terms of farm net income and total household income per household member 65
Figure 38: Map of Berat region 67
Figure 39: Land use structure in Berat region 69
Figure 40: Structure of the cultivable area in Berat region 69
Figure 41: Percentage of farms according to size, within the district 70
Figure 42: Family farm structure 72
Figure 43: Average farm size (dyn) and average number of plots per farm 73
Figure 44: Farm size according to the clusters (in %) 73
Figure 45: Use of irrigation according to cluster (%) 74
Figure 46: Average non-farm incomes (ALL) among the farm types 76
Figure 47: Farms according their activities and clusters 77
Figure 48: Structure of sales (ALL/farm) 78
Figure 49: Structure of livestock production in terms of value 79
Figure 50: Livestock production structure (% of farms within cluster) 79
Figure 51: Proportion of farms selling milk by farm type (percentage of total farms within farm types) 80
Figure 52: Meat sold by farm type (%) 81
Figure 53: Farm net income and off-farm net income as a proportion of total household income 81
Figure 54: The structure of family expenditure 82
Figure 55: Farm net income per annual work unit 84
Figure 56: Farm net income per utilised agricultural area 84
Figure 57: Annual work unit repayment 85
Figure 58: Farm net income/total household income per household member and extreme poverty 86
Figure 59: Map of Lezhë region 87
Figure 60: Population trend: years 2001–2013 88
Figure 61: Proportion of farms in each region 89
Figure 62: Farm family structure for each cluster 90
Figure 63: Number of farms and the level of education of the farmers 91
Figure 64: Distribution of the labour force between clusters 91
Figure 65: Type of labour for each cluster as a percentage of working age family members 92
Figure 66: Number of farms and their land area among clusters 93
Figure 67: Crop production by cluster as a percentage of total agricultural production 94
Figure 68: The structure of livestock production (as a percentage of total livestock production) 95
Figure 69: Livestock production structure (percentage of farms within farm type) 95
Figure 70: Livestock production structure (percentage of farms among clusters) 96
Figure 71: Farm net income and off-farm net income: proportion of the total household income 97
Figure 72: Main farm expenditure structure in absolute values per hectare 97
Figure 73: Means of farm expenditure financing 98
Figure 74: Farm net income as a proportion of the minimum wage 99
Figure 75: Farm net income/total household income per household member and extreme poverty 100
Figure 76: The full poverty line 100
Figure 77: Farm net income per utilised agricultural area 101

List of abbreviations
AWU: annual work unit
Dyn: surface measure used in Albania, 1dyn=0.1 ha
FNI: farm net income
GDP: gross domestic product
HM: household family members
IC: input costs
INSTAT: Albanian Institute of Statistics
MAFCP: Ministry of Agriculture, Food and Consumer Protection MBUMK:- Ministria e Bujqësisë Ushqimit dhe Mbrojtjes Konsumatore
MW: minimum wage
OV: output value
Exchange rate
EUR 1 = ALL 139.38