Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) September 2015 Vol. 4(8), pp 325-332

Copyright © 2015 Global Advanced Research Journals   

Original Research Articles

The Impact of Tobacco Production on Economic Size of Agricultural Holdings in Republic of Macedonia

Mile Pesevski, Sanja Stojoska, Bajdo Bajdevski

Institute of Agro Economics, Faculty of Agricultural Sciences and Food, University “SS Cyril and Methodius”, P.O. Box 297, 1000 Skopje, Republic of Macedonia; E-mail: milepesevski@yahoo.comFaculty of Agricultural Sciences and Food, University “SS Cyril and Methodius”, Skopje, Republic of Macedonia

Accepted 16 September 2015

Abstract 

Republic of Macedonia is an independent country located within the Balkan Peninsula that stepped out of Socialist Federal Republic of Yugoslavia as a result of national referendum held in 1991. Tobacco growing in Macedonia has been a part of tradition for more than 400 years now. In country’s more recent history (1991-2014) there are 36,257 tobacco growing family farms, or 6.5-10% of total population. Over an area of 18,537 ha (mainly in Pelagonia region), more than 25,000 tons of Oriental tobacco are produced. The total number of agricultural holdings is 170,885 (2013), out of which 24.8% grow tobacco on average land area of 0.44 ha. Using “face-to-face” method for our research we concluded that holdings which, among other cultures, grow tobacco have 68.8% stronger economy when compared to other non-tobacco growing farms. The average value of standard output generated by 82 agricultural holdings is 11,521.4 EUR, out of which 28.2% goes to tobacco.

Keywords: Tobacco Production, Economic Size, Agricultural