INFLUENCE OF THE ECONOMIC CRISIS TO THE PRODUCTION PRICE OF WINE GRAPES IN THE REPUBLIC OF NORTH MACEDONIA
Journal
/
Date Issued
2022-11-30
Author(s)
Dimitrov, Lazo
Popovska Stojanov, Despina
Nedelkovski, Dushko
Abstract
The grape production together with the wine industry contributes about 20% of the total
agricultural GDP in the Republic of North Macedonia and occupation of around 30,000 rural
households. Due to the Covid-19 pandemic crisis and the instability of the world situation, the
prices of raw materials in agricultural production are constantly increasing. Hence, the main goal
of this paper is to assess the impact of the global economic crisis on the production price of wine
grape varieties. The main approach of the comparative analysis for the production prices between
the reference years 2020 & 2021 and estimated 2022 is based on established normative
calculations of grapes within the Institute of Agriculture. The total costs are calculated based on
variable and fixed costs of grape production. The investment and inputs costs are collected by
commercial companies, suppliers of raw materials and farmers. The findings demonstrate that
the average production price of grapes at total costs for 2020 & 2021 accounts in average 0.30
EUR/kg. The results from the estimations of the production price of grapes for 2022 show
increase by 20%, which implies that the economic crisis has a large impact on the viticulture and
wine industry. It is anticipated that the socio-economic situation of grape producers will be
negatively affected. Therefore, the public policies for development of this important sector for
the Macedonian agriculture should correspond to the new situation.
agricultural GDP in the Republic of North Macedonia and occupation of around 30,000 rural
households. Due to the Covid-19 pandemic crisis and the instability of the world situation, the
prices of raw materials in agricultural production are constantly increasing. Hence, the main goal
of this paper is to assess the impact of the global economic crisis on the production price of wine
grape varieties. The main approach of the comparative analysis for the production prices between
the reference years 2020 & 2021 and estimated 2022 is based on established normative
calculations of grapes within the Institute of Agriculture. The total costs are calculated based on
variable and fixed costs of grape production. The investment and inputs costs are collected by
commercial companies, suppliers of raw materials and farmers. The findings demonstrate that
the average production price of grapes at total costs for 2020 & 2021 accounts in average 0.30
EUR/kg. The results from the estimations of the production price of grapes for 2022 show
increase by 20%, which implies that the economic crisis has a large impact on the viticulture and
wine industry. It is anticipated that the socio-economic situation of grape producers will be
negatively affected. Therefore, the public policies for development of this important sector for
the Macedonian agriculture should correspond to the new situation.
Subjects
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