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Republic of Macedonia THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA OPERATIONAL PROGRAMME UNDER THE EU INSTRUMENT FOR PRE-ACCESSION FOR RURAL DEVELOPMENT (IPARD) NATIONAL PLAN FOR AGRICULTURE AND RURAL DEVELOPMENT 2007-2013 (Final Draft Version) Skopje, 14 December 2007 PART I - IPARD - AGRICULTURE AND RURAL DEVELOPMENT PROGRAMME, 2007-2013 TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS...................................................................... 11 PREFACE................................................................................................................. 14 EXECUTIVE SUMMARY OF THE PROGRAMME................................................... 16 PART I – SITUATION OF AGRICULTURE AND RURAL AREAS.......................... 17 1.1. COUNTRY PROFILE......................................................................................... 17 1.1.3.1. POLITICAL PROFILE..................................................................................................... 22 1.1.3.2. GOVERNANCE CONTEXT ............................................................................................. 22 1.1.3.3. ADMINISTRATIVE SYSTEM AND TERRITORIAL ORGANISATION................................... 22 1.1.4. MACRO-ECONOMIC SITUATION................................................................................... 23 1.2. DESCRIPTION OF RURAL AREAS ................................................................. 25 1.2.1. ADMINISTRATIVE DEFINITION OF RURAL AREAS ........................................................ 25 1.2.2. DEFINITION OF THE RURAL AREAS FOR RD POLICY IMPLEMENTATION.................... 26 1.2.4. EMPLOYMENT AND UNEMPLOYMENT STRUCTURE OF RURAL POPULATION ........... 28 1.2.5. RURAL INFRASTRUCTURE DEVELOPMENT................................................................. 28 1.2.5.1. SOCIAL AND HEALTH CARE INFRASTRUCTURE.......................................................... 28 1.2.5.2. TECHNICAL INFRASTRUCTURE ................................................................................... 29 1.2.6. REGIONAL DEVELOPMENT DISPARITIES ..................................................................... 30 1.3. OUTLINE OF THE SITUTATION IN THE RURAL ECONOMY......................... 33 1.3.1. GENERAL DESCRIPTION OF THE ECONOMIC ACTIVITIES AND LEGAL BASIS ............. 33 1.3.2. CRAFTSMEN SECTOR................................................................................................... 36 1.3.3. MICRO AND SMALL ENTERPRISES IN SPECIALTY/NICHE FOOD PRODUCTS SUB- SECTOR ................................................................................................................................... 38 1.3.4. RURAL TOURISM.......................................................................................................... 39 1.4. AGRICULTURE AND FOOD PROCESSING.................................................... 50 1.4.1. ROLE OF AGRICULTURE AND FOOD INDUSTRY IN THE NATIONAL ECONOMY ........... 50 1.4.2. AGRI-FOOD TRADE ...................................................................................................... 51 1.4.3. AGRICULTURAL LABOUR............................................................................................. 56 1.4.4. AGRICULTURAL LAND ................................................................................................. 57 1.4.4.1. LAND RESOURCES AND LAND USE......................................................................... 57 1.4.4.2. LAND OWNERSHIP AND FARM STRUCTURE ........................................................... 58 1.4.5. IRRIGATION................................................................................................................... 59 1.4.5.1. WATER RESOURCES ................................................................................................ 59 1.4.5.2 IRRIGATION SYSTEMS AND WATER MANAGEMENT................................................. 60 1.4.6. PLANT PRODUCTION ................................................................................................... 62 1.4.6.1. CEREALS ..................................................................................................................... 62 1.4.6.2. INDUSTRIAL CROPS AND FODDER................................................................................ 63 1.4.6.3. FRUIT PRODUCTION..................................................................................................... 64 1 Final version of the IPARD programme for the former Yugoslav Republic of Macedonia (14.12.2007). PART I - IPARD - AGRICULTURE AND RURAL DEVELOPMENT PROGRAMME, 2007-2013 1. 4.6.4. VEGETABLE PRODUCTION.......................................................................................... 66 1. 4.6.5. OTHER CROPS............................................................................................................. 68 1. 4.6.6. VITICULTURE ............................................................................................................. 69 1.4.6.7. ORGANIC FARMING ..................................................................................................... 71 1.4.6.8. GOOD AGRICULTURAL PRACTICES............................................................................. 73 1.4.7 ANIMAL PRODUCTION ............................................................................................... 73 1.4.7.1. DAIRY FARMING ......................................................................................................... 74 1.4.7.2. CATTLE BREEDING...................................................................................................... 75 1.4.7.3. SHEEP AND GOAT BREEDING ...................................................................................... 77 1.4.7.4. PIG BREEDING ............................................................................................................. 79 1.4.7.5. POULTRY BREEDING ................................................................................................... 80 1.4.7.6. BEEKEEPING................................................................................................................ 82 1.4.7.7. MILK SECTOR PRIORITIES ........................................................................................... 83 1.4.7.8. MEAT SECTOR PRIORITIES........................................................................................... 84 1.4.7.9. ANIMAL WASTE RENDERING....................................................................................... 85 1.4.8. AGRICULTURAL MARKETS AND MARKET POLICY ..................................................... 85 1.4.8.1. AGRICULTURE MARKETS............................................................................................ 85 1.4.8.2. COMPETITIVENESS OF AGRICULTURAL PRODUCTS ..................................................... 86 1.4.8.3. MARKET POLICIES ...................................................................................................... 88 1.4.8.4. AGRICULTURAL PRICES .............................................................................................. 88 1.4.8.5. PRODUCTION –CONSUMPTION BALANCE .................................................................... 89 1.4.8.6. TRENDS IN DEMAND AND DISTRIBUTION .................................................................... 89 1.4.8. BIODIVERSITY AND ENVIRONMENT RELATED TO AGRICULTURE.............................. 90 1.4.8.1. GENERAL FEATURES OF BIODIVERSITY....................................................................... 90 1.4.8.2. AGRIBIODIVERSITY..................................................................................................... 92 1.4.7.3. AGRO-ENVIRONMENTAL PROBLEMS........................................................................... 94 1.4.7.4. NATIONAL BREEDING PROGRAMME (INCL. SPECIES AT RISK OF LOSS) ..................... 99 1.4.9. AGRICULTURAL KNOWLEDGE AND INFORMATION SYSTEM.................................... 100 1.4.9.1. EDUCATIONAL SYSTEM OF AGRICULTURE................................................................ 100 1. 4.9.2. AGRICULTURAL RESEARCH...................................................................................... 100 1. 4.9.3. ACADEMIC AND VOCATIONAL EDUCATION.............................................................. 101 1. 4.9.4. CONCLUSIONS ON EDUCATION AND RESEARCH ....................................................... 103 1. 4.9.5. AGRICULTURAL EXTENSION AND ADVISORY SERVICE ............................................ 103 1. 4.9.6. AGRICULTURE KNOWLEDGE POLICY........................................................................ 104 1.4.10. AGRICULTURE AND RURAL FINANCING ................................................................. 105 1.4.11. FOOD PROCESSING INDUSTRY ............................................................................... 106 1.4.11.1. GENERAL OVERVIEW .............................................................................................. 106 1. 4.11.2. AGRO PROCESSING INDUSTRY................................................................................ 107 1. 4.11.3. DAIRY INDUSTRY ................................................................................................... 109 1. 4.11.4. MEAT INDUSTRY .................................................................................................... 113 1. 4.11.5. FRUIT AND VEGETABLE PROCESSING INDUSTRY.................................................... 115 1. 4.11.6. WINE INDUSTRY....................................................................................................
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