Turkish Journal of Agricultural and Natural Sciences Special Issue: 2, 2014

TÜRK TURKISH TARIM ve DOĞA BİLİMLERİ JOURNAL of AGRICULTURAL DERGİSİ and NATURAL SCIENCES

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Direct Marketing for High Nature Value Products – The Bulgarian Approach

Yulia DZHABAROVA a, Mariya PENEVA b a University "Paisii Hilendarski", Department of Marketing and International Economic Relations, 24 Tzar Assen str., Plovdiv 4000, b University of National and World Economy (UNWE), Department of Natural Resources Economics, Student “Hristo Botev, 1700, Bulgaria Sorumlu yazar: [email protected]

Abstract The survey is carried out on the example of Bessarapski Hills in the Central south part of Bulgaria. This area is under Natura 2000, designated as Specially Protected Area, and contains entirely a proposed Site of Community Interest. For the purpose of the analysis the regional factors of sustainability are identified. An increasing part of the farms in the region are applying the High Nature Value (HNV) System. They are predominantly small-sized farms, developing traditional farming, and delivering their products mostly to the local markets. Unfortunately, the market for these value-added products is still not developed, and the farmers cannot get extra price. The main goal of the paper is to propose a market-delivery system for HNV products with a contribution to the sustainable local development. Such a system will enable farmers to get greater flexibility, a big choice in planning and realizing the sales, as well as reducing their dependence on intermediaries. The study is based on the research findings of the Bulgarian team in the frame of FP7 project entitled “Farming transitions: Pathways towards regional sustainability of agriculture in Europe” (FarmPath).

Key words: High-nature-value system, direct farm marketing, sustainable local development biodiversity protection, and nature conservation Introduction in HNV areas in Europe. HNV farming tends to The EU is committed to the protection of generate lower market profits for the farmers, biodiversity and nature conservation.This idea is so they receive payments under Axis 2 of the reflected in its policies and measures for RDP - Natura 2000 payments (for agricultural environmental protection in all EU Member land) and Agri-environmental payments. The States. challenge is how to stimulate the HNV farmers A European Commission report (2008) indicates seeking better returns, not to abandon or to that the a variety of pressures resulting from the intensify their farming system (Beaufoy and population growth, urbanisation, increase in Marsden, 2011). Overall EU policy measures are agricultural land, climate change, tourism addressed to support the development of a growth, poor land management and many other modern, competitive and sustainable factors leads to loss of biodiversity in the 27 EU agriculture, delivering value-added products to countries, and governments must take the final consumers. measures for its protection. Thus has arisen the On the other hand, in recent years we need for sustainable management of High have witnessed the emergence of new forms of Nature Value (HNV) farmlands through HNV dynamism in agricultural commodity markets farming. This is a top-down approach (Renting et al, 2013). Food markets are emphasized in the EU directives for HNV areas becoming more differentiated on the basis of a protection; it designates broad categories of range of socially constructed food quality low-intensity farming and livestock breeding criteria, resulting in the emergence of new that use environment-friendly land quality-food markets in addition to existing management practices for HNV grassland, anonymous mass food markets (Marsden,

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Turkish Journal of Agricultural and Natural Sciences Special Issue: 2, 2014

1998). The food chain dimension has become a scale plots of land managed with low-external key element enabling us to understand better inputs and often requires high labour input. new patterns of rural development (Marsden et Traditionally well developed in the region are al, 2000) and, potentially also, a significant fruit and vegetable production, as well as sheep building block for future policies designed to and cattle breeding. The area is characterised by influence these. a majority of farmers who have smallholdings of In this paper we explore the possibility to arable land (0.5 to 1.5 ha). Most of the farms are combine distinctive “quality” food products as semi-subsistence ones, and farmers apply HNV-products and the regional factors of traditional practices. They use small quantities sustainability through proposing an adequate of fertilizers. Their production is both for family market-delivery system for them. (including extended family) consumption and for the market. There are also a few larger family Materials and Methods farms operating for the market. Some of the The survey is based on the case-study approach, farmers are interested in organic farming. The provided via the frame of FP7 project entitled agriculture and food industry in the “Farming transitions: Pathways towards municipalities include: production and regional sustainability of agriculture in Europe” processing of fruits, vegetables and herbs and (FarmPath). A combination of two methods for essential oils plants (including roses for rose oil) collecting primary information is applied: semi- and livestock production and processing of meat structured interviews with representatives of and dairy products. The agricultural production different parties in the region, and field is dominated by vegetable crops (early observations. vegetables, pepper, cabbage, leeks, lettuces etc.), orchards (mostly apples and peaches) as Results well as vineyards. In Bratsigovo municipality Bessarapski hills - study area description strong apple production has developed (in the The study area is situated in a village of Byaga there is a plantation of about transitional zone between the lowlands of the 100 ha). Roses are grown in the villages of Thracia valley and the northern hills of the Rozovo, Byaga and Bratsigovo town as well. In Phodope Mountains. Administratively it is the mountainous villages (e.g. village of divided between two districts (NUTS 3 level) Ravnogor) potatoes and cranberries are grown. with the majority of area falling within Pazardjik In the villages of Stamboliiski municipality the district and less than 20% of the area - in Plovdiv vegetable-growing is quite well developed in district. small greenhouses of size 0.3 up to 0.5 ha each. The study focuses particularly on the In the last two years new plantations of area designated as Specially Protected Area perennials (mainly pears and apples) have been under the Birds Directive – Bessaparski Hills created. The village of Kurtovo Konare is famous (Code BG 0002057) with a total area of 14 765 with the production of its Kurtovska red ha. Geographically, this area contains entirely a peppers. proposed Site of Community Interest under the Habitats Directive (code BG 0000254) which High nature value system covers 6 743 ha. Nowadays it is largely discussed that Administratively, the two Natura 2000 zones fall the agriculture is under the public consumer within the boundaries of five municipalities pressure for a larger variety of distinctive (LAU1 level) – Bratsigovo, and “quality” food products (Renting et al, 20013). In Pazardjik in Pazardjik district and Stamboliiski this paper we explore the incidence of a certain and in Plovdiv district. The municipality agricultural system that delivers products of with the largest area in the Natura 2000 zone is such origin and with a distinctive nature-system Bratsigovo and as such it is in the main focus of impact, e.g. the High Nature Value (HNV) the study. farming system. HNV system is extensive, The overall regional economy, despite protecting the nature-systems, the biodiversity, some differences at municipal level, is largely and moreover developing the local agricultural determined by the existing natural production economy in a sustainable way, and supplying conditions. The semi-intensive conventional consumers with products of high value. It is in farming spread in the region (Bessaparski Hills conformity with the regulations of the Natura 2000 zone) is characterized by small- territories under Natura 2000 and other

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requirements of the protected areas. It implies buyers, unreasonably low farm gate prices, high grassland management with benefits to the quality requirements, etc. There is also unequal biodiversity. Some of the farmers are interested distribution of power and value added across in organic farming and the process of conversion the established agrifood system. Milk and meat has been started. processors have a dominant role; they lay down In 2007 the implementation of the rural the rules (in particular the pricing) and usually development policy first introduced the concept the rules are unfavourable for agricultural of HNV farming in Bulgaria. The agri- producers. environmental measure (AEM) in the RDP 2007- As an essential marketing tool for sustainable 2013, Axis 2 comprises five main packages one local development, the direct delivery system of which was focused on maintenance of HNV favors the producers’ easy market access, better grasslands. Thus, HNV farmland was identified linkages with the consumers, possibility to for the needs of the implementation of the AEM. perform and participate in local producers’ The approach that was used followed the EEA initiatives. Fred Gale states that direct marketing (European Environmental Agency) approach for plays a role in rural development by encouraging mapping areas which potentially can be a climate of entrepreneurship and innovation, considered as areas of High Nature Value attracting agricultural tourists, and promoting complemented by the available biodiversity alternative forms of agriculture. (Gale, F., 1997) geo-referenced data at national level. At present Direct marketing has many advantages that approximately 33% (around 1, 7 million ha) of complies with the specifics of HNV-products, the agricultural areas in Bulgaria were defined as and additionally can foster the vital community potential areas of high nature value, of which development: pastures and meadows were eligible for support  Small-scale producers can gain under the AEM. In general, if an area is necessary assets to compete efficiently recognized as a biodiversity valuable place – in a local market. national protected area, Natura 2000 zone,  Puts power back into the hands of the Important Bird Area, Important Plant Area, producer by eliminating the Primary Butterfly Area, etc,, and there are intermediaries. extensive farming practices – then, it is highly  Can increase the value of farmer’s likely that it was mapped as HNV farmland in products through delivering high Bulgaria. product quality and freshness. HNV farming in Bulgaria is a top-down approach  Provides a good possibility to add value and the agriculture practices were adopted to the products by additional according to the requirements for the respective processing and authentic packaging. designation of the territory. In 1998 35% of the  Maintains customer-oriented sales and territory was designated as CORINE site because services built on mutual trust of its significance for conservation of rare and relationship. endangered habitats, plants, and animals. In  Ensures direct feedback, and high 2005 Besaparski Hills was proclaimed Important market transparency. Bird Area by Birdlife International. The territory  Provides a link between urban was included in Important Plant Areas network consumers and rural food producers (IPA). Since 2008 it has become part of the that can be valuable in developing Bulgarian and European ecological network sustainable communities. Natura 2000.  Adds value in knowing where food comes from and how it is produced - a Direct marketing – an effective regional chance to educate the customers about marketing tool the benefits of the valued-added HNV farming delivers added-value products. products that are more labor-intensive, require  Bolsters farmers’ income by increasing more the farm gate prices, and thus management and investment. The SME’s that preserving small farms. are predominant in the observed region are  Strengthens economic and social ties facing many difficulties. Marketing problems between farms and urban residents. identified by producers are often attributed to the market and the capacity to access it: lack of

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 Promotes rural development by The Mobile Advisory Centre of GEF promoting agricultural tourism and project stimulates farmers to sell directly, they local traditional products. inform them about good hygiene practices and It appears that direct marketing can be improvement of milk and milk products quality, recognized as an outlet for HNV products. There advise farmers to use one and the same shape are many different forms of direct marketing of the jars and labels, link farmers to consumers schemes that can be applied, delivering strong organizing joint visits of the fairs and exhibitions. impact on the sustainable local development. A future option is to propose multi- Direct sales through farmers’ markets, farm level approach, combining the value-added stands, on-farm shops or box-delivery itself products of HNV farming, the local assets within might deliver HNV products as agricultural local tourism activities, and the advantages of commodities or foodstuffs directly from the direct marketing. Fred Gale generalizes “To producers (or farmers’ organisations) to the benefit from direct marketing, the communities consumers. Moreover, local producers can be need to make a concentrated effort to draw facilitated in organizing multiple farm outlets or urban consumers to take advantage of the a local farmers’ market based on a common growing interest in travel, tourism, and theme related to a distinct local products. Direct ecological/environmental issues” (Gale, F., marketing may also be undertaken through 1997). door-to-door campaigns or over the phone and on-line. Mail order can overcome the distance The cohesion of the regional factors of problem for farms far from the consumer, and sustainability, the HNV system, and the direct thus enlarging the market place. A diverse mix of marketing approach direct marketing methods could be a future Market Process option for local farm entrepreneurs developing The Farm Path initiative facilitates the an innovative local farming. local market development, and the supply In general, there are two main mechanism by which farmers can make direct possibilities for farmers to reach the market sales. A new local brand program, already using the direct marketing approach: launched in another region, will start in this a. By their own efforts; municipality as well. Farmers are already aware b. By participating in local that the Ordinance, in compliance with the farmers‘groups, gaining more power and commercial laws, will entitle them to direct sale advantages, or by establishing Farmers’ Market (about 30% of the quota) of their own small Coalition for HNV-products, and thus to advance stock. This will enable them greater flexibility the segment of HNV-products, and the farm and choice in planning and realizing their sales, direct marketing industry as a whole seeking the best conditions for reducing their (www.nafdma.com). dependence on intermediaries. Regardless the two options above, through the Project assistance (Farm Path Innitiative), Social Activities and Movements farmers can obtain many specialized services Regarding the impact on market that could overcome a big range of marketing development through delivering fresh and high- constraints, such as: quality products with added-value – on one • Capacity building of groups through hand, and on the other – supporting farmers in management and financial training. their activities, and ensuring higher incomes, the • Assistance in identifying problems. direct marketing system has a huge social • Assistance in identifying and developing impact as well. In addition, it can gather solutions by: adherents of localism – of ecologically clean - Providing training and market products, local traditions, habits, cuisine, etc. information; Moreover, it is a big opportunity to establish - Facilitating linkages between farmers linkages not only on local level, but on regional and consumers, between farmers themselves, as well, and thus to expand the idea on a huge and between farmers and government and non- scale. government institutions; Farmers start to participate in group visits to - Developing improved delivery demonstration farms with similar activities, visit systems. fairs, and attend different trainings. The initiative fosters the organization of traditional

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and cultural groups and feasts in order to development strategy. However, this study also promote local ecologically clean products and to shows that if HNV system is to be viable for low- encourage the direct sales (feast of potatoes in resource people, it may be necessary to Ravnogor, feast of bread in Isperihovo, festival promote both resources and techniques in local of strawberry in Rozovo, feast of peppers in initiatives. Additionally, a focus on building Kurtovo Konare etc.). The key actors in strong relationships both within the farmers organizational issues are the local so called group and linkages with local and wider “Chitalishta”. stakeholders may enhance long-term With the expansion and promotion of the sustainability of the region. The relationship initiative (Farm Path) originated an informal between the farmers and other stakeholders is movement/group of consumers of products becoming more powerful and targeted in order produced by these farmers who directly order to enforce the direct marketing initiative, and to and buy products from them (most of them are sustain the long-term vital local development. city dwellers, higher educated). The initiative also strengthens the relationship farmer-consumer – the latter already sustained Consumer preferences buying directly farmers' products. All farmers’ efforts have focused on to New bridges have been created attract customers by creating a market between within HNV system and direct attractive appearance (jars, packing, labelling marketing: i) agriculture and food processing etc.) for their products, provoked by consumers and rural tourism sub-regimes; ii) farmers and needs and behaviour. This creates possibilities consumers (support and solidarity of the latter on local level for linking and integrating the against the mediators). processes of production, processing, marketing and sales in one cycle. References Beaufoy, G. and Marsden, K.K. (2011). CAP Intensification reform 2013 last chance to stop the The aim and scope of the initiative is to decline of Europe’s High Nature Value stop/reduce the intensification and to preserve farming. [Accessed 2014] Available from biodiversity and for conservation of rare and http://www.efncp.org/download/policy- endangered habitats, plants and animals. The cap-reform-2013.pdf. initiative made progress in spite of the violations Draganova, M., M. Peneva, Y. Kazakova, P. that overstep the prohibitions and restrictions Mishev (2012). Case Study report: High for farming in the protected areas. Nature Value Farming in Besaparski Hills (Natura 2000) (Bulgaria). FarmPath Homogenisation of products working report. The Farm Path initiative enables the European Commission (2008). The Economics diversification in the production of various of Ecosystems and Biodiveristy – Interim products and services; enables expansion of the report. Available from diversification of products, by-products some of http://ec.europa.eu/environment/natur which have become art works (toys of straw, e/biodiversity/economics/pdf/teeb_repo fruits carving, puppets from fruits and rt.pdf vegetables etc.). European Commission (2009). Report on Article 17 of the Habitats Directive: Conservation Conclusion Status of Habitats and Species of The HNV system enhances farmers to Community Interest (2001-2006). develop diversified on-farm activities and to http://ec.europa.eu/environment/natur apply additional forms of commodity sales, such e/knowledge/rep_habitats/index_en.ht as processing, direct sales of own produce, m various tourist services etc., and significantly to Gale, Fred (1997). Direct Farm Marketing as a develop and promote a local brand. Most of Rural Development Tool, Rural them are providers of local environmental Development Perspectives, vol. 12, no. 2, friendly products. The implications for future pp 19-25. initiatives are, firstly, the tremendous potential IFOAM (2003). Developing Local Marketing for farmers and wider rural communities to Initiatives for Organic Products. benefit from value-added marketing as a local

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[Accessed 2014] Available from supply chains in rural development. http://shop.ifoam.org Environment and Planning A 2003, Marsden, T. K. (1998). “New rural territories: volume 35, pp 393–411. regulating the differentiated rural Tronstad, Russell et al (1995). Direct Farm spaces”, Journal of Rural Studies 14 (1), Marketing and Tourism Handbook, pp 107–117. Tuscon: Arizona Cooperative Extension, Marsden, T. K, J. Banks, G. Bristow (2000). Food [Accessed 2014] Available from supply chain approaches: exploring their http://ag.arizona.edu/arec/pubs/dmkt/d role in rural development, Sociologia irectfarmmarket&tourbook.pdf Ruralis 40, pp 424–438. http://ag.arizona.edu/arec/pubs/dmkt/dmkt.ht Renting, Henk, Terry K. Marsden, Jo Banks ml (2003). Understanding alternative food www.nafdma.com networks: exploring the role of short food

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