Profitability and energy efficieny of agricultural production – current situation and perspectives for development of organic production in Macedonia

PROJET TITLE PROFITABILITY  AND ENERGY EFFICIENY OF AGRICULTURAL PRODUCTION – CURRENT SITUATION AND PERSPECTIVES FOR DEVELOPMENT OF ORGANIC PRODUCTION IN MACEDONIA
Implementation period Project coordinator Partners Financed by
2011-2012 Integrated Business Institute N/A Ministry of agriculture, forestry and waters
Project description
The main goal of the project is researching the current situation and perspectives of organic agriculture in Macedonia, and recommending the improvement of profitability of organic agricultural production in Macedonia.
As a part of the project implementation, a research of the current agricultural situation in Macedonia has been made, as well as a research on the perspectives of developing organic agricultural manufacturing in the future. In addition, the project involves research on the level of energy efficiency of agricultural production in 2011 in Macedonia, as well as the profitability of agriculture. In order to establish economic results, e.g. profitability in both organic  and conventional agricultural systems, analytical calculations of corn production are employed. These calculations are made based on the data from corn manufacturers in the Ovce Pole region. By analytical calculation, average annual revenue and expenses, as well as financial results are given, for both production systems. Comparing these calculations, it can be established that there are differences in production methods and operations, protective agents, fertilizers, harvesting, machinery, workforce and contributions. It can be concluded from the results of the research that there are differences in revenues, expenses and financial results, which leads to concluding which agricultural system is more profitable.
Conclusions and recommendations
Although the conventional agricultural system shows better results in terms of financial results, organic production system shows better energy efficiency and eco-friendly results, which should be an asset to its increase in employment and dissemination.

Organic agricultural production is justified form of production, which is verified by its fast development worldwide. Macedonia, following the global trends in agricultural production, should support organic agricultural production as a concept of sustainable agriculture.

Research team
Natasha Danilovska, PhD
Ivana Nikiforovska, MSc
Petar Kletnikovski, MSc