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MERGING PROPERTY IN SERBIA AND COMPETITIVENESS OF AGRICULTURE
© Kotur Gordana*
High Business School, Serbia, Novi Sad
The size of agricultural land on which crops are produced affect the production costs of final products. The small holdings cannot possibly organize production in Serbia, which has a long tradition of agricultural products in small family farms (Table 1). A significant part of total agricultural land in the ownership of such households whose members participate in the production and there by achieve a small volume of production which meets only their basic living needs. And this production is unprofitable and uneconomical and is accompanied by high costs.
Table 1
Family farms, the total area in Serbia (List 2002)
do 1 ha 1,01-3 3,01-5 5,01-8 8,01-15 above 15 ha
number of farms 208100 254832 135161 96843 62326 15341
Source: [6, p. 21].
According to the data of Table 1 shows that most of the family farm has a small agricultural area to 3 hectares. Constraints in the development of production in small areas are numerous. First of all, it is not possible to apply modern technology and machinery or the effective protection and care of sown crop.
* Specialized studies student.
Economic effects are modest and insufficient to keep the population in rural areas resulting in an outflow of the rural population. To the mostly poor households that often lack adequate means of transport, which hinders the delivery of products to a wider market absorption capacity of local markets is insufficient for the sale of surplus products that the issue needs households.
Large estates have greater opportunities for improving production, purchase of modern machinery, the application of innovative approaches in manufacturing. Competitiveness can only be achieved through productive and profitable production and on small family farms it is not possible.
In the process of developing the agricultural sector and strengthening the competitiveness of the creation of larger agricultural properties will be necessary. Merging property realized more easily access lots. Surface lots more regular shape suitable for planting and harvesting crops. In addition, by reducing the empty strokes machines and workers, and thus shortens the duration of treatment and reduce overall production costs.
Merging fragmented and inaccessible parcels of agricultural land and improvement of rural infrastructure should be part of plans for agricultural production in Serbia. One way is by enlarging properties of association of farmers. Pooling reduces insufficient power of individual farmers, and its inability to follow modern trends.
Joining of farmers creates the possibility of cooperation with the conditions that facilitate production, access to inputs, capital, information, technology, market, credit, investment, transfer of knowledge. By joining farmers can lower costs and prices to jointly offer a huge amount and be competitive in the market. Joint market greatly facilitates agricultural production of the individual participants.
Small holdings and farmers with their production can only meet the basic living needs but can not achieve competitiveness. Development and creating competitive Serbian agriculture contributed to the joining of farmers.
One of the aspects of agricultural cooperatives are agricultural cooperatives. Agricultural cooperatives provide a variety of cooperative benefits. With the help of favorable lending cooperatives, weak banks lend to small farms due to lack of a guarantee or take a big commission. Joint cooperation allows members exchange knowledge and experiences, and various forms of mutual assistance. The cooperative provides that certain activities of common interest do so efficiently and at lower cost, to raise awareness of members about the state of the market, to ensure effective protection of the common.
Individual farmers with small farms are able to develop economic activity needed to achieve a satisfactory standard of living. The non-competitiveness of their production focuses on producing them for their own purposes, which are much less able to purchase other products and services. Merging land and association is paramount because it becomes the general condition to improve life
in rural areas of Serbia. It would be a way that would allow the agricultural production in Serbia, which would become more competitive in regional and wider international market.
Agricultural land is done through consolidation, regrouping, irrigation and other forms of regulation. Among these the most important agricultural measure is consolidation under which parcels of land combine and group together in order to more rational production. Scarce and fragmented plots and their shape is the main obstacle to the development of Serbian agriculture. One way of overcoming this problem is through the consolidation process.
Consolidation involves different set of measures which includes legal, technical, organizational and economic measures. United measures contribute to the improvement of working conditions in agricultural areas. With the help of consolidation measures, solving the problem of small and fragmented holdings is reflected in the changing conditions of life in the countryside. One goal of consolidation is to create conditions for the application of modern methods of cultivation and increase profitability of agricultural production.
Segmented and inaccessible agricultural land which consolidates thus improves rural infrastructure. So it gradually contributes to reducing economic disparities between urban and rural areas bearing in mind the effects of the economic activities of resource usage. It is therefore necessary to educate farmers about the importance of enlarging possessions of the opportunities in this way provides Education and information can be achieved by raising awareness of farmers which facilitates consolidation process that is possible with informed consent.
Land consolidation, in addition to improving the properties of agricultural land, is achieved and other effects are regulated by irrigation canals and drainage where necessary to remove the bushes and undergrowth, resolve property relations and disputes, if any, to arrange rural roads. Consolidation is a measure that reflects the yield per unit area of crops and reduces the cost of production per unit area and per unit of product.
Measures for the implementation of land consolidation are necessary to provide funding to the budget of the Republic of Serbia as well as in municipal budgets. There is a necessity for cooperation of the Ministry of Agriculture and Water Resources, Ministry of Public Administration and Local Government, the Republic Geodetic Authority to develop plans and programs for development of agricultural land.
The implementation of land consolidation is achieved by the improvement of agriculture, an increase in productivity, efficiency and thus competitiveness of the agricultural sector. This allows for the successful planning and land management, increases the number of new jobs, attracting investment in this area. The process of consolidation is changing the social structure of villages and
also provide more favorable conditions for life and work, which the young remain in the country.
Merging farmland, increase property and association of farmers and contribute to overall economic development of the country, and raising the economic and social security of rural populations in Serbia. Through association and enlargement of arable land could be achieved by increased supply of agriculture products with the help of agricultural production, given its economic effects, it becomes attractive for future generations of entrepreneurs in situations where the selected field of their activities.
This would allow the new conditions of European integration and the Serbian plans to join other countries in the European Union held in rural areas, to become more attractive to young people. This would contribute to preserving and many other values that are traditionally cost, cultural heritage from the past, and everything connected with the traditions and customs of national life.
References:
1. Avramovic M. Redistribution of agricultural land in Serbia // Surveyors. -2004. - № 33. - P. 54-68.
2. Arsenovic B., Krstic B. The competitiveness of agricultural holdings / Faculty of Agriculture. - Belgrade, 2002.
3. Sevralic M., Nikolic M. The role of agricultural cooperatives in reducing unemployment and poverty in rural areas of Serbia // Agricultural Economics. -2011. - № 2. - P. 39-48.
4. Markovic K. Factors of agricultural development and their impact on world food situation // Agricultural Economics. - 2011. - № 51. - P. 49-58.
5. Cvijanovic D. Focuses and objectives of recent reforms of agricultural and regional policy of the European Union // Agricultural Economics. - 2011. -№ 58. - P. 359-371.
6. Statistic almanac Republic Serbia, 2011
