Small‑Scale Apple Farmers’ Willingness to Invest – The Case of Korça Region Farmers in Albania

Abstract

In this study we aim at assessing the willingness to invest of small‑apple farms in Korça region‑Albania. Furthermore, we want to identify and assess what are major determinants, as percept by farmers’, willingness to invest. To this purpose we used data collected through face‑to‑face interviews with apple farmers. We used descriptive statistics, as well as classical and multinomial logistic regression. Most of farmers are willing to invest in view of their positive expectations for investment climate. Other important factors of willingness to invest are access to loans, advisory extension services, market competition, willingness to cooperate and willingness to take loans, and farm income, while socio‑demographic factors such as age, education, and farming experience do not have significant effect on willingness to invest. Large farms are generally more willing to invest. We present also a general framework of constraints and policy levers to improving the investment climate which is almost valid also for Albania. Improving farmers’ access to private credit sources, policy stability, providing information and public advisory services to small farmers, support farmers to adopt new technology, support to the creation of farmers’ formal and informal groups, and mitigate risks of various type are some but essential policy measures to motivate farmers to invest more in apple.

Keywords

• willingness to invest
• investment climate
• risk
• apple farm
• cooperation
• access to loans