El modelo actancial

The income structure in Berat region si quite inequal. Rural household make up from agricultural activates from 16 up to 90% of their incomes (Table 21). It can be identified clearly two group of farm types those: i) farms type with a clear agricultural objective (poly culture for market, self- sufficient, livestock, specialist fruit trees), and ii) farms with diversified activities where agriculture is one of the activities and not necessarily the most important one.

Farms in Berat region continue to be over-populated in terms of both household members and workforce. The main characteristic of the farms in this region is the domination of family labour. About 90 % of the farms satisfy their labour needs from family members. The small farm size offers little opportunity for full-time employment.

8.4.1 Farm productivity

Farm net income per annual work unit

As can be seen in Figure 55, the clusters of poly-culture for market, fruit trees diversified, arable crops for market and livestock farms are better performing in terms of FNI/AWU than the other clusters. Labour productivity is higher in these clusters, because it is known that one of the advantages of production diversification and livestock production is the full usage of labour. As can be seen, in Albanian agriculture, farms that are diversified are better performing than specialised farms in terms of FNI/AWU.

Labour productivity is lower in self-sufficient and specialised clusters. Regarding self-sufficient farms, as a result of their main purpose of producing mainly for home consumption, they can justify their poor performance in terms of FNI/AWU. This is because these farms are not much interested in being economically effective in terms of FNI/AWU but more so in providing food for the family household.

Concerning specialised farms, such as specialist fruit trees, with regard to investment they are not yet effective because of the production cycle of fruit trees. A single activity should be more profitable to justify unused labour and production resources during certain periods of the year.

Table 21: Income structure by farm type in Berat region (ALL)

Farm type Net income per farm (FNI)

Off farm income per farm

Household net

income % of farm income

1 2 3 4 = 2 + 3 5 = 2/4

Poly-culture for market 777 370 105 066 882 436 88

Self-sufficient 244 476 25 928 270 404 90

Livestock 599 111 107 642 706 753 85

Fruit trees diversified 406 981 963 210 1 370 191 30

Leisure 217 858 1 181 738 1 399 596 16

Arable crops for market 543 797 910 967 1 454 764 37

Specialist fruit trees 214 128 123 700 337 828 63

Farm net income per utilised agricultural area

Effective land use is higher on diversified farms and livestock farms (Figure 56). This is because vegetables and livestock products have high added value. Land productivity is lower on subsistence farms, leisure farms and specialised fruit farms. Poly-culture for market and livestock farms will need financial support from government in the future in Berat region.

It is a known fact that on part-time farms (leisure farms), farm income does not constitute the main source of income for the family. The low level of income on specialised fruit farms has is because in new orchards production is low in the early years of their economic life.

Figure 55: Farm net income per annual work unit in (ALL)

194961   86141   179037   183674   79393   124029   90341   0   50000   100000   150000   200000   250000  

Poly  culture  for  

market   Self  Suficiency   Livestock   diversified  farms  Fruit  trees   Leisure  farms   Arable  crop-­‐market   Specialist  fruit  trees.  

Source: calculations based on the survey.

Figure 56: Farm net income per utilised agricultural area (ALL/ha.)

37553   14246   36504   21736   11069   19600   9400   5000   10000   15000   20000   25000   30000   35000   40000  

8 . B e r a t r e g i o n : a g r i c u l t u r a l c h a r a c t e r i s t i c s

8.4.2 Farm viability

Farm net income/annual work unit (AWU) compared with minimum wage: AWU repayment

The effectiveness of the agricultural labour force in Berat region is very low. Work in agriculture is paid less than the minimum wage for all farm types (Figure 57).

Only for poly-culture for market farms is labour paid nearly 94 % of the minimum wage. On livestock and arable crops for market farms, work is paid at 75 % of the minimum wage. The other farm types pay agricultural work at from half to two-thirds of the minimum wage. The limited repayment for labour, as well as the abundant workforce in the rural areas, lead us to the conclusion that the rural areas in Berat will be an important source of migration of the workforce to urban areas in the future.

Farm net income/total household income per household member and extreme poverty

Agricultural activity in the region of Berat manages to provide incomes above the extreme poverty threshold. The only exception is the specialist fruit tree farms, where the

income level is low owing to the low productivity of fruit trees in the first years after planting. Analysis of the extreme poverty threshold allows us to draw similar conclusions as those drawn for the region of Elbasan. Firstly, the farm types that try to maintain and develop agricultural activity on farms are among the poorest in terms of THI by household member. It seems that the less the farm type contributes to agricultural development, the richer the household members are (leisure farms). Secondly, the high level of self-funding of agricultural investments has a direct impact on the household poverty level (specialist fruit trees). Thirdly, it seems that the poly-culture farms perform better than those trying to specialise in one crop.

FNI/THI per household member in complete (full) poverty

Regarding the standard of living of household members, in terms of complete poverty, with regard to the FNI, we can say that household members of farm types such as poly- culture for market, livestock, fruit trees and arable crops for market are living above the complete poverty level. In contrast, the household members of farm types such as self-sufficient, leisure and specialised fruit trees are living below the complete poverty level.

Figure 57: Annual work unit repayment

8.5 Conclusions

The economic performance of agricultural units in Berat region, in terms of productivity and viability, still does not justify their importance. Hence, as has been argued, some farms were repaying the workforce but not making most efficient use of their agricultural land. For example, clusters such as leisure and specialised fruit trees have a lower agricultural viability indicator (extreme and complete poverty) compared with other clusters. Furthermore, considering the viability of agricultural units in Berat region, except for the poly-culture for market and livestock clusters, all other clusters do not make a significant contribution to the standard of living of the household members. Therefore, when FNI per household member is analysed in terms of extreme poverty, its role is not significant in all clusters, with the exception of the poly- culture and livestock clusters because the coefficients are

close to 1 (the line of extreme poverty). Considering the role of THI in terms of extreme poverty, all farm clusters make a significant contribution to the standard of living of household members. This means that the THI remains a very important source of income for farm household members in Berat region. Furthermore, even in terms of complete poverty, the role of THI remains significant for farm household members in Berat region.

Poly-culture in agriculture can have several positive effects, but it is not likely to be a long-term strategy for agricultural development due to the low level of specialisation of this strategy. The development of livestock, particularly cattle and small ruminants, should be considered and evaluated as a long-term strategy for agriculture development in Berat region.

Figure 58: Farm net income/total household income per household member and extreme poverty

3,69   1,12   2,48   1,82   1,09   2,43   0,93    4,19      1,24      2,93      6,13      7,00      6,51      1,46     0,00   1,00   2,00   3,00   4,00   5,00   6,00   7,00   8,00  

Poly  culture  for  

market   Self  Suficiency   Livestock   Fruit  trees  diversified   farms  

Leisure  farms   Arable  crop-­‐

market   Specialist  fruit  trees.   FNI/HM  Extreme  poverty   THI/HM  Extreme  poverty  

9 . L e z h ë r e g i o n : a g r i c u l t u r a l c h a r a c t e r i s t i c s

9.1 General information about