THE ECONOMICS OF PEANUT PRODUCTION IN BULGARIA DURING THE TRANSITION PERIOD

Abstract

We examined peanut production systems and selected factors affecting the development of commercial peanut enterprises in Bulgaria. A survey of 220 individual farms and farm cooperatives engaged in the cultivation of peanuts was conducted during 2000 and 2002. Poor farm structure, low level of technology, and nonconformity to farm decision making impede the financial and economic development of Bulgarian peanut production and farm growth, thus limiting farm enterprises emergence into competitive economic units financially operative in a freemarket economy. The underlying cost structure, couple with small farms, averaging 0.8 ha in size, prevent farmers from capturing economies of scale, limit farm profitability and hence farm modernization. The lack of owned farm machinery, equipment and storage facilities renders the restructuring and specialization extremely difficult. However, peanut production is still a viable farm enterprise for Bulgarian farmers.

Keywords

• bulgaria
• transition
• economics
• peanut production