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    An Economic Analysis of Plums Production: The Case of Gradacac, Bosnia and Herzegovina
    (Selçuk Üniversitesi, 2021) Vukojevic, Sumedina Spahic; Direk, Mithat
    The production of plums has an important economic significance in BiH. By this product, Bosna Hersek is recognizable for a long time, since significant quantities of fresh and dried plum, besides for supply of domestic market, have been exported to the European and Global market. Municipality of Gradacac has a significant role in all of this, because takes the first place in the production of plums in BiH. This study investigates the economics of production of Plums in Gradacac. For this purpose, primary data were collected from plums farmers using a (multistage random sampling technique / stratified randomly sampling technique/simple random sampling technique). Date were analysed using economic analysis and descriptive statistical techniques. Results show that, the capital structure of the enterprises surveyed in the research area was classified according to their functions and the average active capital of the enterprises was calculated as 284.125,49 KM (Average 1$=1,67 KM in 2017). 91,76% of this is the farm capital and 8,44% is the fixed enterprise capital. The average of gross production value realized at the surveyed farms is 17366,41 KM, of which the value of the cattle production belongs to 19,75 %, while the plum’s production value is 80,25 %.
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    The structural analyses and development opportunities of plum production in gradacac province, Bosnia and Herzegovina
    (Selçuk Üniversitesi Fen Bilimleri Enstitüsü, 2019) Vukojevic, Sumedina Spahic; Direk, Mithat
    Plum production in Bosnia and Herzegovina is an agricultural activity which has an important economic significance. Bosnia and Herzegovina has a remarkable position concerning plum production. Plum is a domestic product and it is consumed domestically and exported as dry and fresh both in Europe and in the world. Gradacac province is a municipality and part of the Tuzla Canton. Gradacac has rugged terrain which allows not only plum production but also the production of other types of fruits successfully. In this respect, Gradacac province takes the leading position in Bosnia and Herzegovina fruit production. There is a very long tradition in the production of plums in Gradacac province but high yield levels which Gradacac deserves cannot be reached due to lack of fruit growing investment. Plum covers half of the fruit production in Gradacac. 6,167 tonnes of plums was produced in 2017 and the plums yield per tree in Gradacac province was only 4.5 kg. This indicates a low level of productivity. There are lots of reasons for the low level of productivity. Plum cultivation techniques are not performed by modern conditions, the continuation of the traditional structure, the application of traditional varieties and techniques instead of modern techniques, low product prices, inadequate processing facilities are obstacles of the production. The study aimed to analyze the state of production of plum in Gradacac province; to determine current production technologies and socio-economic structures of the plum production; to analyze economic results of plum production at farms. Accordingly, it was determined that the production of one kg of plum costs 1.89 KM, compared to 0.73 KM sales price. It is seen that farmers do not have any gain from plum production and therefore production continues in traditional dimensions. Therefore, measures should be taken to turn plum production into a lucrative production activity in the province. Otherwise, it is not possible to invest in the establishment of new plum orchards and existing gardens do not seem to be able to perform adequate and modern maintenance practices. Besides, SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis was conducted with the current production model of plum production, and infrastructure of strategic transformation of the future or plum trademark was established. With the SOR (strategic orientation) analysis, important information was presented to policymakers. In the study, as well as secondary sources data, data gathered from 65 farms which were randomly selected around the Gradacac province were used. The average annual gross production value of plum farmers was 17,366.41 KM.The average total costs at the surveyed farms is 17,743.79 KM, gross margin was 9,925.27 KM, the net product was 3,370.63 KM and agricultural income was 5,266.25 KM. Producers sold their plums mostly (94.98%) as fresh, (3.01%) as dried plums, and the rest (2.01%) were returned to local drink. In light of the information obtained, producers should be encouraged to modern production methods and supported to develop plum production. In particular, the plum processing facilities should be constructed and the sales price/cost balance should be established and producers should benefit from this production activity. So, the Gradacac plum could be transformed into a trademark. This will contribute to the worldwide recognition of the province, which is very suitable for plum production, and farmers will be able to earn more and more. Key Words: Plum production, gross production value, gross margin, production cost, total cost, SWOT analysis, SOR analysis, Bosnia and Herzegovina.