DEVELOPMENT OF TOBACCO ECONOMY IN THE REPUBLIC OF MACEDONIA

Abstract

Tobacco production is an important part of the Macedonian tradition, the Macedonian agriculture and economy in general. The aim of this work was to provide a clear picture of tobacco production and processing in Macedonia for a past period of twenty five years; for that purpose there were mainly used published statistical data by the State Statistical Office of the Republic of Macedonia, Analysis of the Ministry of Agriculture, Forestry and Water Economy. During data processing, many methods common for such research were used, mainly the comparative-analytical method. The production of tobacco takes place on an area of above 16.000 hectares, where farmers mostly use relatively poor, low productivity class soil. Today, the whole process of tobacco production includes more than 30.000 households and large number of family members. Tobacco industry in Macedonia has great importance for the overall economy of the state. The tobacco industry is also important as
primary production, although less than 50% of the available capacities are not utilized. The production of cigarettes since independence of the country has a major reduction because of declining demand, which previously consisted of consumers from the ex-Yugoslavia. Today, part of the tobacco industry is transformed into private enterprises. The industry employs about 3.500 workers per year, has a relatively high share in the creation of domestic GDP and exports tobacco and cigarettes whose value exceeds the value of imported tobacco and cigarettes for domestic factories and direct customers with over 130 million US dollars annually. Tobacco is the most widely cultivated cash crop and, it seems that in Macedonia, tobacco will remain to be an interesting and profitable crop for many generations further.