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Agricultural Economics and Management Journal   ISSN 0205-3845
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Directions, activities and measures for tobacco production restructuring
Rumen Popov
Abstract: Bulgaria is interested in tobacco production conservation and development, by reason of evident economic, social and ecological reasons. The built production of highquality tobacco kinds, the cumulate production experience of several generations, the created traditions and the unique local natural conditions must continue to be used in favour of local communities. All the above-mentioned is a
reliable, but not sufficient base for this sector development, because the sector actual development conditions are too much different and require new solutions. The research purpose is to analyze world trends in the tobacco production, the EU CAP changes and the followed national policy and on this base, to identify the strategic aim of Bulgaria in this sector and directions, tasks and measures for its achievement. Taking in consideration the changed economic, social and institutional environment and its impact on tobacco
producers, the main strategic purpose of Bulgaria in this sphere has been formulated this way: “to support local communities in areas with tobacco production as main occupation, creating preconditions for this sector
sustainable development firstly and secondly, for local economy diversification”. For this strategic aim implementation were defined two
priority directions, namely:
• Creation of premises for sustainable tobacco production building, which has to be adapted to market changes and CAP development;
• Diversification of agricultural production and economic activities’ development from sectors of industry and services, aiming new jobs positions’ and incomes sources’revealing.
Sustainable sectors development means in practice to create conditions for stronger role of the market mechanism for production regulation; sector’s horizontal and vertical integration reinforcement; farms structural
adaptation through their consolidation and achieving of better competitiveness, mainly by production quality improvement. Economic activity diversification would be realized in the framework of a definite farm through the production of other agricultural products or nonagricultural activities and mainly though the creation of micro and mini enterprises from the industry and services.
Effective purposeful policy-making for local communities support in the tobacco production areas, production modernization and other economic activities development require changes of the Law of the agricultural ownership and land-use, effective application of Rural Development Program measures and creation of a separate measure in the framework of this program “Tobacco production
modernization and restructuring”.
Keywords: competitiveness; consolidation; diversification of agricultural activities; restructuring; sustainable tobacco production
Date published: 2017-12-20
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