The role of farm households in the development of rural areas of Bulgaria (2007-2014)

Висвітлено основні проблеми та чинники, що впливали на ефективний розвиток фермерських господарств. Доведено, що використання ресурсів дрібних та середніх фермерських господарств призвело до покращення стану сільських територій та населення, збільшенню обсягів виробництва аграрної продукції та зменшенню частки безробіття на селі, зростанню реальних доходів сільських жителів.

Розглянуто заходи державної підтримки фермерських господарств та їх інтеграцію в систему європейської підтримки. Зокрема, в статті проаналізовано динаміку фінансування модернізації та технічного оновлення матеріальної бази господарств.

Автором розкрито основні переваги та недоліки функціонування дрібних та середніх фермерських господарств порівняно з великими аграрними корпораціями, в контексті підвищення їх конкурентоздатності.

Доведено, що в зазначений період, було відсутнє законодавство, що чітко регламентувало діяльність фермерських господарств, їх спеціалізацію та районування, доступ до оптових ринків для реалізації виробленої продукції без посередників.

Водночас, існував і цілий ряд факторів, що гальмували розвиток і функціонування фермерських господарств, серед яких: обмежений доступ до національних та європейських фінансових ресурсів, до участі в державних замовленнях, європейського ринку збуту. Крім того, в аграрному секторі економіки Болгарії було впроваджено принципи органічного виробництва, що передбачало використання виключно екологічних засобів захисту рослин та посадкового матеріалу, що зменшувало рентабельність галузі та унеможливлювало його дотримання дрібними та середніми фермами.

Ключові слова: фермерські господарства, Спільна аграрна політика, державна підтримка, Болгарія, аграрний сектор, Європейський Союз.

The defining feature of the Bulgarian countryside after 1989 was the emergence of small and medium-sized enterprises. It is worth noting that the formation, development, and establishment of entrepreneurship in rural areas were naturally connected with the implementation of agrarian reform. It was she who became the factor that contributed to the transformation of social relations and led to the formation of new social strata in society, among which not the last place was given to those persons who were able to quickly orient themselves and adapt to the new economic realities of the economic development of the village, became owners of agricultural enterprises, as well as enterprises from the processing industry, which were located in the territory of Bulgarian villages and belonged to the agro -industrial sector. Work on the privatization of land and agricultural enterprises was actively carried out in the northern, eastern and central regions of Bulgaria, particularly in the Plovdiv, Pazardzhik, and Smolyan regions [2].

Some elements of the birth of entrepreneurship were already noticeable during the beginning of the agrarian reform, when land ownership was transferred from state to private ownership, namely in the early and mid-1990s of the 20th century. They were facilitated by the first attempts to divide the property of collective farms, reform land relations and transform collective farms into other organizational and legal formations - peasant unions, agricultural firms, etc. [1]. Further development was also received by various agro-industrial structures, which were formed as a result of approval in the spheres of production integration projects for the processing of agricultural products, as well as bringing food products to the consumer (in 1993, 41 agro-industrial complexes were created in Bulgaria). However, due to the reorganization of the state administration system, changes in the legislative framework regarding agro-industrial production, and other objective and subjective reasons, by the beginning of 1995, only 12 of them remained.

These were the same factories that were created not as a «tribute to fashion», but on the own initiative of agricultural, processing, service and other enterprises (organizations) and were led by proactive, enterprising managers. Among them, we can single out the agricultural complex «EkoMes» (Velichkovo village, Pazardzhik region), «Agro Mel» (Dobroplodno village, Varna region), «Sylvrsan Bulgaria» (Haskovo region) [1].

In the first years of their activity, agro-industrial plants were characterized by significant positive changes in terms of increasing the volume of production of agricultural products and products of their processing, expanding their assortment and improving quality. To a large extent, this was due to the search for rational methods and forms of production organization, building up and improving its technical potential, infrastructure development. Experience has confirmed that agro-industrial corporations, which were voluntary contractual non-departmental associations of economic subjects of various forms of ownership - legal (agricultural, processing, banking, infrastructure, scientific, etc.) and natural persons (including foreign ) on the basis of a combination of their industrial, commercial and scientific interests, with the delegation of separate powers of centralized regulation of the activities of each of the founders, defined in the founding documents.

The founders of the agro-industrial corporation retained the status of legal entities, as well as economic and legal independence with regard to industrial and economic, entrepreneurial and other types of activities not prohibited by law. For example, at the beginning of 1996, the agro-industrial complex «Agro Mel» (Varna region) was reformed into an agro-industrial concern, which united more than 10 enterprises and organizations.

Agricultural firms were also very popular among the population, in which industrial relations were already based on the principles of state self-sufficiency.

In addition, agricultural cooperative associations and small enterprises arose. In May 1998, the Law «On the Support of Agricultural Producers» was adopted, which determined the general legal, economic and social principles of entrepreneurial activity (entrepreneurship) by citizens and legal entities [416].

And in September 1999 - the Law «On Small and Medium-sized Enterprises», which confirmed the main provisions of the Law «On Property» and indicated that the following types of enterprises can operate: an individual enterprise based on the personal property of an individual and exclusively by his labor; a family enterprise based on the property and labor of citizens - members of the same family who live together; a private enterprise, based on the property of an individual citizen, with the right to hire labor; a collective enterprise based on the ownership of the labor collective of the enterprise, cooperative, other statutory society, public and religious organization [4].

Undoubtedly, the attraction of foreign investments played a positive role in establishing entrepreneurship in the agro-industrial complex. In the agricultural sector, they were used mainly for the purchase of agricultural machinery and spare parts for them, such as: 186 forage harvesters, seed cleaning machines, beet harvesters, milking and refrigeration equipment, spare parts for agricultural machines, grain harvesting machinery of the German companies «CLAAS» and «MDW» was delivered to Bulgaria. At the expense of a special credit line in the amount of 125 million US dollars, more than 700 combine harvesters of the «John Deere» company were purchased [5; 6].

In the same period, the association of traders and manufacturers of agricultural machinery «Agrotech» established relations with foreign companies: a protocol was signed to establish the production of precision seed drills, grain harvesters and other machines on cooperative principles. Attracting foreign investments was also supposed to help solve the problem of modernization of processing industry enterprises. At the beginning of 1991, a Bulgarian-German oil extraction enterprise began to operate in the Pazardzhik region. In 1992, the «Zakhira» concern concluded an agreement with the Austrian company «Agrana» on technical cooperation on the modernization of sugar factories in Bulgaria. As of November 1, 1992, in Bulgaria, in addition to the above, there was another joint Bulgarian-Czech enterprise (Sugar Factories), which had its branches in rural areas [8; 6].

The state did not stand aside either. In 1993, at meetings of government committees under the Council of Ministers, the creation of the Directorate «Market Activities and Organization of Agricultural Producers» under the Ministry of Agriculture was supported in order to provide consultations on issues related to the development of Bulgarian entrepreneurship [3]. Her work was aimed at developing and streamlining the legislative framework. Its meetings were attended by specialists from scientific research, production and government representatives, who made proposals regarding the privatization of food and processing industry enterprises. They believed that the main subjects of privatization of all food and processing industry enterprises should be cooperatives, peasant farms that supply them with raw materials. Moreover, in their opinion, 51% of these institutions should have been allocated to the ownership of agricultural enterprises, since the largest profit in the overall technological chain of manufactured products was received by the one who stood near the final product [6].

As it turned out, the proposal was quite correct and was confirmed by practice, because in 1995, 1,071 enterprises located in rural areas became private property. This figure was 70.3% of the total number of privatized enterprises in this field. In addition, in the same year, 452 processing, agricultural service and other non- agricultural enterprises of the agro-industrial complex were privatized [7]. This process has practically been completed in the canning and dairy, tobacco, oil and fat, confectionery industries.

The work of the Directorate «Market Measures and Organization of Agrarian Producers» also provided consultations on the development of a number of regulatory and legislative acts adopted in subsequent years. Among them, it is worth noting the resolution of the Council of Ministers dated January 29, 1999 «On the creation and maintenance of the register of agricultural enterprises», the implementation of which was supposed to contribute to the state's provision of sustainable development of small entrepreneurship as an integral sector of the market economy and the creation of new jobs [4; 10].

In 1998, amendments were made to the law «On Support of Agricultural Producers». According to them, in order to increase the level of support for entrepreneurship and ensure the coordination of activities related to the formation and implementation of state policy in this area, the creation of a separate division of the Ministry of Finance of Bulgaria was announced, the task of which was to ensure the work of small enterprises and simplify the procedure for their liquidation if necessary [10].

At the end of the 20th-at the beginning of the 21st century the work of government structures to improve legislation in the field of small and medium-sized businesses has intensified even more. After the amendments adopted in 1998, the development of entrepreneurship in the agro-industrial complex accelerated significantly. In all regions, new organizational forms were created on the basis of former collective agricultural enterprises, among them a certain percentage of enterprises. Thus, 72 agricultural formations were founded in the Plovdiv region, of which 9 (11%) were private rental enterprises, 34 (46.9%) were limited liability companies, 19 (2.6%) were peasant farms, 29 (42.1%) - production cooperatives [5; 7].

Agricultural production became the main activity of agricultural enterprises. In addition, along with the main activity, 22% of such enterprises provided grain milling services, 12% provided agricultural machinery rental, and 11% provided grape processing [7].

Agricultural firms have become one of the forms of successful functioning of enterprises. A vivid example can be the activity of the private agricultural company «Bulgarian Property - Agro 98 OOD», founded in 1998 on the basis of a cooperative economy. It also included a poultry plant and a poultry farm named after Dimitrov in the city of Plovdiv [2]. More than 1,500 people, including 700 pensioners, belonged to the collective of the agricultural company. The enterprise had 2.4 thousand hectares of agricultural land, from which it annually received more than 9 thousand tons of grain, 4 thousand tons of vegetables, 4 tons of potatoes, more than 10 thousand tons of fruit and grapes, and 3 thousand melons. At the same time, processing divisions were operating: a) a cannery (20 million conventional cans); b) a wine and juice factory; c) a poultry farm that produced 150 kilograms of high -quality dietary meat from each square meter of area.

Poultry processing plant with slaughterhouses and canneries, equipped with Dutch equipment from the Stork company, a feather and down factory that produced 6 types of blankets, duvets, pillows, sets for newborns. The meat processing plant, equipped with the latest German equipment of the Kirchfeld company, produced 25 types of sausages and various smoked products per shift of 5 tons of products [8]. During the period of independence, the agricultural company showed itself as a fairly economically strong enterprise.

Another agricultural company in the city of Etropole, «Gary-2», was established on the basis of cooperative farms «Lyuben Karavelov» also during the transition period, namely in 1990. At that time, 370 people worked in it. The agricultural firm had 509.1 hectares of land, including 429.8 hectares of agricultural land, 33.2 hectares of arable land, and its machinery and tractor fleet included 70 units of equipment [3].

Poultry farming was developed, in particular, there were 2,400 quails, 2,250 chickens, and 1,000 geese. A meat processing plant, a greenhouse plant, a construction plant, a food products plant, a glass container plant, a repair and mechanical workshop, a technical service station and other structural subdivisions functioned. Since 1990, the agricultural company began to cooperate with the American company «Pioneer Overseas» in the field of growing corn for grain [10].

The result of their cooperation was the creation of a joint venture «Gary EOOD». A seed laboratory and a quail incubator were equipped here. According to the agreement, a calibration plant with an annual capacity of 4,000 tons of seeds was built between the two companies. Together with the seeds, the company received a competent agronomic service: recommendations for processing and preparing the soil for sowing, plant protection, harvesting, and based on the preparation of high-energy fodder for corn grain, grain cob mass, and silage [8].

Since 2000, the implementation of the European Program for the Development of Rural Areas was started in the country, which was aimed at supporting small entrepreneurship. According to this program, the support of small and medium-sized business entities included financial, informational, consulting types of support [10].

Streamlining the legislative framework that regulated the activities of entrepreneurs in Bulgaria had a positive impact on the growth dynamics of this category in rural areas. Small entrepreneurship was especially widespread at this time. After all, it became obvious that in the conditions of limited financial resources, it was the subjects of small businesses that did not need large initial investments, were characterized by quick payback of costs, and were capable, with certain support, of stimulating the structural restructuring of the economy, the development of economic competition, promoting the weakening of monopoly, creating additional working places, provide wide freedom of choice, supply the market with goods and services.

In 1992 there were 14 small enterprises per 10,000 people, but in 2002 their number reached 31 [2], and in 2011 - 40 units. At the beginning of May 2003, the share of small enterprises in the agricultural sector of Bulgaria was more than 30%, and already in 2010 - 79% [5; 7]. The number of those who wanted to organize their own business, i.e. entrepreneurs, also increased. According to the Ministry of Agriculture of Bulgaria, at the beginning of 2003, more than 700 thousand such persons were registered, and at the beginning of 2012 - more than 900 thousand.

Small entrepreneurial activity was one of the means of self-realization of the younger generation. And therefore, in order to direct young people living in rural areas to organize their own business, various courses, special seminars, etc., were held in various regions of Bulgaria, the task of which was to help with selfdetermination regarding the future profession. For example, a specially developed mechanism operated in the Population Employment Center of the Plovdiv region [7]. First of all, various informative, thematic seminars on the basics of rural tourism organization were held, to which everyone was invited. This type of work was popular among the population of rural areas.

During the period 2007-2010 alone, more than 1,200 seminars were held, in which about 16,000 unemployed people took part. Regional employment services also organized 318 seminars on rural green tourism with the participation of 4,277 people and 212 seminars on the development of entrepreneurship in rural areas, which were attended by more than 3,000 people who lost their jobs and received information on self-employment [3], choosing professions suitable for entrepreneurial activity for a specific region, information about the steps that should be taken to start your own business.

Then those who wanted to open their own business applied for help to the district basic employment centers, which had the obligation to promote entrepreneurial activity by organizing vocational training in professions and areas oriented towards self-employment, as well as to provide one-time assistance designed to ensure a start in this business. Only in 2009, 19 young people living in rural areas received an on-time payment of unemployment benefits in the Smolyan region to start their own business.

The most attractive areas for the organization of entrepreneurial activities in rural areas for the younger generation were the industries that required little initial capital and had a quick turnover of funds, namely: agriculture, processing, trade, service, etc. [9]. There were many examples of successful small business management by peasants throughout the territory of Bulgaria.

For example, the former unemployed Krasimir Panov Stavrev, a resident of the village of Karlovo, Plovdiv region, opened his own enterprise in the agricultural sector for raising pigs and selling meat products. Renting empty collective farm premises, he organized a powerful pig farm, supplying the district market with high- quality meat products [6].

At the end of the first decade of the XXI century, non-traditional types of entrepreneurial activity in rural areas have become quite common: breeding decorative birds, quails, purebred dogs, growing mushrooms, Chinese cabbage, flowers, manufacturing wall building materials, carpentry, revival of folk crafts and crafts, harvesting mushrooms and berries, fishing, development rural «green» tourism.

Understanding the role of small and medium-sized entrepreneurship in the economic sector of Bulgaria, the Strategy for the Socio-Economic Development of Rural Areas was adopted at the state level in 2012 to support it [5]. According to officials, the project envisaged shifting the focus of state support to medium-sized commodity and small-scale producers who were the basis of the country's food security. Therefore, in this period, the creation of a special service for assisting newly formed private agricultural enterprises and individual landowners for effective business management, as well as increasing the level of productivity in the agro - industrial complex, contributing to improving well-being and increasing incomes, became very relevant.

When solving this issue, the experience of the functioning of the agricultural advisory service in the USA, England, Scotland, Finland, and Poland was taken into account. Based on their example, the following institutions were created in a number of regions of Bulgaria, in particular, the Pazardzhik and Trade Advisory Services, created with the support of the European Union TACIS program [9]. Its founder was the Ministry of Agriculture and regional councils, which united more than 30,000 owners of land shares. 100 private manufacturers used the services of the mentioned service. She conducted seminars and courses on agribusiness management for managers and specialists of reformed enterprises and peasant farms.

ABC-AgroBusinessConsulting (Sofia), EuroConsultingGroup (Plovdiv), which operated with the support of technical assistance projects of the British Ministry for International Development, and the Center for Training and Support of Private Agricultural Producers in the Plovdiv Region, established in Plovdiv Agrarian University with the support of the US Agency for International Development.

Currently, similar centers functioned at the Agrotechnical University (Sofia), the Dobrudzha Agrarian University.

In order to coordinate the activities of these institutions, the National Agricultural Service was also created. Its main functions were to provide services to newly created private agricultural enterprises and individual landowners:

1) on issues of agricultural production organization (agribusiness management);

2) on technological issues.

Thus, the formation of entrepreneurship in the agricultural sector of Bulgaria became one of the consequences of the country's transition to a market economy. Its foundations were laid in the late 1980s of the 20th century. Initially, the enterprises mainly belonged to the medium-sized business unit. They were divided into those engaged in the production of agricultural products, as well as those that processed them. Since the end of the 1990s, small business structures have also gained special popularity in rural areas, which have significantly expanded the range of their activities. In addition to agriculture, entrepreneurs began to engage in activities atypical for a Bulgarian village, namely: breeding decorative birds, purebred dogs, growing mushrooms, flowers, making furniture, etc.

As the practice of real-life showed, the role of small and medium-sized enterprises in the country was quite important, because rural businessmen, in addition to providing their own employment and raising the material level, began to create additional jobs for their fellow villagers.

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