Alternative solutions for efficient use of refused land in Shngjergj Commune in Albania

Lead and Contact Author: Dr. Xhevaire Dulja

Agricultural University of Tirana, Faculty of Economy and Agribusiness, Department of Agricultural Economy and Policies Koder Kamez, Tirana, Albania Email: xhdulja@ubt.edu.al Cell: +355 (0) 69 21 77 532

Prof. Dr. Galantina Canco

Agricultural University of Tirana, Faculty of Economy and Agribusiness, Department of Agribusiness Management Koder Kamez, Tirana, Albania Email: galantina2003@yahoo.com Cell: + 355 (0) 68 25 33 071

Dr. Ledia Thoma (Boshnjaku)

Agricultural University of Tirana, Faculty of Economy and Agribusiness, Department of Agribusiness Management Koder Kamez, Tirana, Albania Email: lediab@yahoo.com Cell: +355 (0) 68 20 97 859

Prof. Dr. Henrieta Themelko

Agricultural University of Tirana, Faculty of Economy and Agribusiness, Department of Agricultural Economy and Policies Koder Kamez, Tirana, Albania Email: hthemelko@yahoo.com Cell: +355 68 20 15 014

Alternative solutions for efficient use of refused land in Shngjergj Commune in Albania Abstract
The main goal of study was to produce recommendations to the government and extension services for interventions to an efficiently use of abandoned land in hilly and mountainous areas of Albania. The present research selected a mountainous area in district of Tirana. Cultivation of three groups of Medicinal and Aromatic Plant (MAP) species suitable to the territory were proposed followed by their cost-profit analyses. Through questionnaires fulfilled with the farmers, research collected information on farmer readiness to cultivate MAPs, their preferences for certain species, sources of information for taking decisions on farm and tested their knowledge on MAP cultivation techniques. Key-words: medicinal, aromatic, refused, land, Albania.

Alternative solutions for efficient use of refused land in Shngjergj Commune in Albania

Executive Summary
Agricultural land, in Albania, is scarce considering the fact that 76% of Albanias land consists of forest and pastures (Albanian Ministry of Agriculture, Food and Consumer Protection, 2010a). Independently of land scarcity, poverty and unemployment rate in the rural areas, still we find unutilized agricultural land especially in marginal areas. Cultivation of this land with cash crops or other traditional plants, many times is not possible because they are very exigent, unsuitable to this land or difficult to be marketed or low income-generating and labor-intensive plants. The present study was undertaken to find a solution and offer recommendations to policy-makers and extensionists, harmonizing together all above-mentioned characteristics together with good acceptance by farmers. Medicinal and Aromatic Plant (MAP) cultivation is proposed to be a good alternative. We arrived to this conclusion after a cross-study of written literature with information collected from interviews with experts and local people combined with cost-profit analyses. In the framework of the study were selected seven species divided in three groups: annual, four-five year and perennial species. The annual species (fennel and anise) need to be planted every-year and are not known in the area. The second groups (sage, and oregano ) have better revenues (especially sage) and seemed to have more acceptance by the farmers because of the revenues, moderated need for initial investment and low request for manual labor. The last group of MAPs (sweet bay and linden ) are long-live, generate less income, need higher initial investment and starts to produce after four or five years of establishment of orchards. There are cultivated in association with common thyme to compensate incomes especially in the first years. Furthermore, this study tried to explore and create an overview on the farmers profile, to understand their level of knowledge on MAPs and cultivation techniques, farmers information sources as well as their decision-making bases. Conclusion drawn after this study could offer to the decision-makers some indications on how to orient the policies and to the extensionists or other advisors on the content of their advices and communication channels.

Alternative solutions for efficient use of refused land in Shngjergj Commune in Albania

Introduction Problem statement

Albania is mainly a mountainous and hilly territory, with an average altitude of 704 m above the sea level. About 76% of Albanias land consists of forest and pastures and only 24 % of the total (696 thousand ha) is agricultural land (Albanian Ministry of Agriculture, Food and Consumer Protection, 2010a). Table 1: Land structure in Albania Surface (000 ha) Surface (%) Agricultural land 696 24 Forest, Pastures and meadows 1 464 51 Other 714 25 Total 2 875 100 Source: Albanian Ministry of Agriculture, Food and Consumer Protection, 2010a

Through the land reform, that took place with the changing of political and economical system in the early 90s, based on the law no.7501 entitled On land, Albanian farmers became owners of the agricultural land. According to this law, rural families received equally by size and quality the land of cooperatives that was formerly owned by the former socialist regime. The actual official data shows that most of agricultural land belongs to 353 486 farms which are very small farms with an average surface of 1.14 ha and fragmented in 4.1 parcels per farm. According to the same data, actually are 402 287 families living in these farms with an average of 1.1 families per farm (Ministry of Agriculture, Food and consumer Protection 2010a). The rural population in Albania comprises about 50% of the total population. According to official data, about 72% (1 004 254 out of 1 626 019 inhabitants) of rural population in Albania is between 15 65 years old and belongs to the total labor force (Albanian Ministry of Agriculture, Food and Consumer Protection, 2010a). Calculations referred to the previous data show that agricultural land per each labor force is about 0.6 ha. Based on data presented it is evident that agricultural land is a very scarce resource in Albania and rural population has very little land to farm and make a profitable return. However, some land was rejected by farmers since it had little or no potential for profit because of poor soil and other undesirable characteristics. This land together with undelivered land coming from agricultural state enterprises in Albania is often categorized as refused land a term which is similar to abandoned marginal land. The total area of refused land in Albania
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is calculated to be about 110,000 ha from which about 23,000 ha are available in bigger blocks (larger than 10 ha) (Albanian Ministry of Agriculture, Food and Consumer Protection, 2010b ). This situation asks for solutions for a better use of marginal land in general and the abandoned one particularly. The necessity of better use of land becomes more evident considering other social and demographic data regarding rural population. It faces unemployment which is more evident for vulnerable groups of the society such as women. Official statistics of Albanian Institute of Statistics indicate that the national unemployment rate in 2009 was 13.8 %, and about 52% of unemployed people are women (Institute of Statistics, 2010). Considering these facts, putting in use refused land will contribute to increasing farm incomes and reducing unemployment rate. A such possibility may be the cultivation of abandoned land with Medicinal and Aromatic Plants (MAPs) which do not require extensive labor and do well in poor soil. In general, soil in the mountainous areas is much poorer than in hilly areas and wild native MAP species go well in such soil and climatic conditions. MAP production can be on small acreage, marginal land, and without heavy machinery or with modified equipment (United States Department of Agriculture, 1995). Furthermore, MAPs cultivation represents an excellent employment opportunity for women since there are some important activities which are easily performed in home such as drying and initial packaging of the products. The success of MAP cultivation is hypothesized to be based in many factors such as Albania climate conditions and suitable territory characteristics which are fitting with MAPs, Albanian experience with MAPs and its privileged place in the international market, a growing demand and promising trends of the international market for them, etc. Considering the fact that refused land is wide-spread in Albania, it was necessary to decide and select a pilot area to be studied. The criteria for choosing the pilot area were the proximity of farmers to some of the most important MAP processing and exporting companies, their mountainous territory and presence of abandoned land. Tirana was selected to be the pilot district and Shngjergj commune was the subject of the present research. Shngjergj Commune was selected based on fact that it has highest surface and most hilly and mountainous of refused land in Tirana District and has big distance to the markets compared to other communes of the mentioned district.

Objectives
The main goal of this study is to produce recommendations to government and extension services for interventions regarding an efficient use of refused land in hilly and mountainous areas of Albania. The specific objectives of this study are: 1. To define some MAP species suitable to climate and soil conditions of the pilot area and to their economical efficiency; 2. To determine the socio-economic profiles of farm families living in Commune of Shngjergj and farmers readiness to cultivate selected MAPs; 3. To contribute to a better orientation of policy interventions and extension services regarding refused land.
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General overview on MAPs

According to the study of Center for the Promotion of Imports from Developing Countries, there is a growing demand for herbs and medicinal plants by pharmaceutical, cosmetic and perfume, together with food and beverage industries (2008a; 2008b and 2008c). MAPs remain still an important resource for health care and food consumption. At the international level, since 2000 exports from exporting countries keep increasing. In 2008, exports from Albania and Bulgaria scored over 8,367 Mt, for a value of 23 m. USD (United States Statistics Division) About 50 000 and 70 000 species of medicinal plants are respectively used in the traditional and modern medicine (Schippmann et al. 2006) and about 80% of world population bases its health care system on medicinal plants in the absence of alternative systems at the disposal of all population (Bennerman et al. 1983). Circa 3000 species of MAPs are commercialized at international level (Lange and Schippmann, 1997), while only 100 of them are cultivated regularly in agricultural production system (European Herbs Growers Association, 2006). Cultivation of some MAP species is realized mainly for economical and environmental reasons. Sometimes cultivation of these species ensures more incomes than the wild collection and for some other species it is necessary for protection from the extinction (plants of the red list). Balkan countries are a major source of raw material and half finished MAP products for many EU and US industries and among the Balkan countries, Albania and Bulgaria are the main suppliers (United States Statistics Division). Albania has a very rich flora with more than 3,200 species that make up about 29% of European and 47% of Balkan flora. About 350 Albanian wild species are collected and sold as MAPs in the international market (Ministry of Environment 2010). Albania is considered a privileged country because of the high quantity and quality (chemical content) of raw material available mostly of wild and natural origin and because of many years of the experience, efforts, tradition and the infrastructure established with EU and US buyers in the international market (Albanian Essence Producers and Cultivators Association, 2010). Especially four wild MAP species such as savory, sage, white oregano and thyme have very peculiar quality characteristics compared to the same species produced in other countries (United States Agency for International Development, 2010) . Albania has for more than 45 years, a relatively long experience, that is dealing with wild MAP collection and exports to the international market. Domestic market in Albania is very small and the international market remains a good opportunity for exporting companies (United States Agency for International Development, 2010) and rural population especially those living in the marginal area. During the last decade, the market for MAPs in Albania has experienced significant growth. There are about nine important processing and exporting companies located in different regions of the country to buy MAPs for exports (Albanian Essence Producers and Cultivators Association, 2010; United States Agency for International Development, 2010). In 2009 the quantity of MAPs produced and marketed was 6,007 tons with a value of 11.5 million (Albanian Ministry of Agriculture, Food and Consumer Protection, 2010). MAPs are one of the categories of agricultural products most exported from Albania to USA and European countries (Ministry of Agriculture, Food and Consumer Protection, 2010).
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Tab.2. Albanian Exports and Imports of MAPs (in 000) 2008 in All 2.057089 47.271 2009 in All 1.507.336 66.855,11

Albanian Exports Albanian imports

tons 9,042 0,4

in 16.746 384,71

tons 6 0,36

in 11.404,6 501

[Source: Ministry of Agriculture, Food and Consumer Protection; Ministry of Economy]

Description of pilot area

Shngjergj is the most hilly and mountainous commune of Tirana district and about 50 km far from the capital. It has twelve small villages that in years are become smaller because of emigration and internal migration. Table 3: Number of families and inhabitants in the villages of Shngjergj commune Village Number of inhabitants Number of families 1 Shngjergj* 417 153 2 Vrri * 887 256 3 Ur * 509 176 4 Shngjin 270 95 5 Shnmri* 494 176 6 Facesh 92 32 7 Biz 148 62 8 Fag 349 122 9 Parpunj 48 20 10 Vakumone 146 44 11 Dom 44 18 12 Derje 41 17 Commune 3445 1180 * Villages with higher number of inhabitants and families Source: Registry office of Shngjergj commune, 2011 From the interviews with the farmers it was evidenced still a high willing to migrate mainly to the big cities (unpublished own data). The average size of the farm and the cultivated land per capita is respectively 3.9 and 1.34 ha. From the quantity of 3.9 ha, only about 1 ha is cultivated for human consumption (vegetables and fruits). The rest is used as meadows and forage for animals. The main economical activity of the population of commune is farming in mixed farms of animal husbandry, vegetables and fruits. Most of the farms produce for self consumption while the
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poorest families and less-landed ones are based on collection of wild PAMs in the forests around the area. Commune of Shngjergj has the highest quantity of abandoned agricultural land in Tirana district. Actually, refused land in this commune is of the category IX and X which refers to the worst quality of land. According to official data provided by the Ministry of Agriculture, Food and Consumer Protection (2010b), the total area of refused land in blocks of about 10 ha or larger in Tirana District is 825 ha out of which 609 ha are located in mountainous areas of Shngjergj commune and spread out in 7 villages (Table 4). However, the quantity of refused and abandoned land is higher than the data presented here because detailed official data are available only for land in massive blocks. Table 4: Availability of refused land in Tirana District Blocks 10 ha or larger No. 1 2 3 4 5 6 COMMUNE Number Krrabe Dajt Preze Vaqar Petrele Shngjergj Total 1 2 4 6 2 18 33 Total area (Ha) 15 50 59 72 20 609 825 Number of villages holding blocks 1 2 1 2 2 7 15 Land Category VII VII VII VII VII - VIII IX - X

Source: Albanian Ministry of Agriculture, Food and Consumer Protection, 2010b Based on decision of Albania Ministers Council nr. 531, dt. 01.08.1998, the refused land passed to the administration of municipalities and communes. Communes can give this land to their farmers in use according to the number of family members or for rent according to farmers readiness.

Research Procedures
This research includes both primary and secondary data collection and analysis. Secondary data were obtained from different publications of national and international organizations (public and private). They include official statistics, official book and journal publications, scientific magazines, internet sources, etc. These data were necessary to: a) Determine the study area. Data were collected from publications of the Ministry of Agriculture, Food and Consumer Protection and Tirana Agriculture Directorate on the availability of refused land at national and commune level.

b) Establish a profile of Albanian rural area and population of the pilot study site. Publication of both Institute of Statistics and Ministry of Agriculture, Food and Consumer Protection at national level and other domestic and international research documents and articles, will among others sources helped to answer some basic questions with regard to the farm size, land available to each farm member, unemployment situation in rural Albania, number of farm families living in the study area, etc. c) Analyzes cost-profit of suitable plants for the area and creation of three MAP scenarios available to the farmers based on data of national and international literature and interviews (Aiello, 2011; DAndre, 2011a; DAndre, 2011b; Canco, 2001; Primavera, 2011; Vender, 2011; Vondolina and Vender, 2011). The product of these analyses, three main scenarios with seven plants, was presented to the farmers through cards along with the questionnaires to test their preferences for cultivation. However, secondary data were crossed with the primary data that were both qualitative and quantitative methods.

Qualitative data
Firstly, semi-structured interviews were conducted with the Mayer, experts and employee of Shngjergj Commune in order to collect all the necessary information related to: a) procedures farmers have to go through in order to use this type of land; b) number of farm families living in each village; and, c) other demographic, social, and economic data possessed by this institution necessary to the research. Interviews also were conducted with land and MAP experts on species suitable to be planted on the refused land located at Shngjergj Commune. Their opinions and data also helped to estimate MAP prices, theirs cultivation costs and profitability of selected ones. Three groups of plants were studied: annual, four to five- annual and multiannual plants in order to fit to different farm conditions and farmer preferences.

Quantitative data
The quantitative primary data were collected with the help of 205 questionnaires fulfilled with the families selected in a randomized way in four biggest villages of Shngjergj Commune: Shngjergj, Vrri, Ur and Shnmri (Table 3). Questionnaires were used as a basis for fulfilling the second objective of the research: socioeconomical analyses of farm families of the commune of Shngjergj. Through the questionnaires is drawn information on farming familys profile, their readiness and the preferences for cultivation of selected MAPs, market channels for MAPs, farmers knowledge about wild MAPs and cultivation techniques, sources of information for their decisions and role of extension services in the area. Statistical elaboration of data collected through the questionnaires was done with the program SPSS.

Results and Discussion Cost-profit analyses

The cost-profit analyses of three different scenarios with seven plants were prepared in order to give different alternatives and higher possibility of choices to the farmers. Different scenarios were necessary in order to fit to farmers knowledge, experiences, preferences and farm conditions. After literature review and interviews with national and international MAP experts (Primavera, 2011), MAP collectors, MAP exporters (Albanian Essence Producers and Cultivators Association, 2010) and commune agronomist there were selected three scenarios: Two annual MAPs that are fennel (Foeniculum vulgare var. dulce) and anise (Pimpinella anisum); Three species with medium-term duration of production cycle that are sage (Salvia officinalis), common thyme (Thymus vulgaris) and white oregano (Origanum vulgaris) (four to five annual); and finally perennial plants such as bay (Laurus nobilis) and linden (Tilia sp.) associated with common thyme. Agronomical criteria were the first and the economical and social criteria were the other ones considered for selection of the species. Species selected had to adapt to climate and difficult soil conditions of the area. They had to be relatively profit generating and demanded ones with a tendency for an increasing demand in the market. Different plants with different production cycles can offer different costs, profits, time of pay-off and labor demand. Plants of first scenario (annual plants) in general have productive cycles of six months; the second scenario offers four or five year species and the third scenario offer perennial trees of long production cycle (more than 30 years). The calculations for the revenues are based on prices collected as primary data from the interviews with different MAP processing and exporting companies (Albanian Essence Producers and Cultivators Association, 2010; Primavera, 2011). Costs are calculated considering official data from Year book (Ministry of Agriculture, Food and Consumer Protection, 2010a) and from Albania in figures (Institute of Statistics, 2010). According to cost-profit tables (Table 5; Appendices A; B and C) there was possible to go dipper with analyses and comparisons between different scenarios and species.

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Table 5: Cost-profit analyses of fennel and anise-Annual MAP (000 /ha) Fennel (000 /ha) Consumption* Seed Costs 0,79 0,79 Mechanized operations 0,25 0,25 Manual labor 0,23 0,23 Inputs 0,31 0,31 Revenues 3,00 5,50 Profit margin 2,21 4,71 Profit margin + Manual labor 2,44 4,94 * Seed used for consumption, not as multiplication material

Anise (000 /ha) 0,93 0,27 0,15 0,51 3,36 2,43 2,94

The criteria for further comparisons are: costs of establishment, average profit margin, time of pay-off of the establishment costs, total annual average costs with its voices, manual labor and sustainability of the investment over time.

Initial costs
In general costs of initial establishment for annual plants are lower than costs of other two scenarios. In consecutive order from the cheapest to the most expensive scenarios the initial costs are: annual, 4-5 annual and perennial associations. The exception for thyme, which has initial costs comparable to annual plants, comes from the lower quantity than other 4-5 year species of seeds necessary to establish the plantation. Perennial trees associated with thyme, are the most expensive plantations and the last combination with bay tree is the most expensive one (Table 6). Table 6: Establishment and average costs for seven species Aver. Cost Aver. Cost Plant species Cost Establ.* M.O.+I.** (M.O.+Inp+M.L.)*** Fennel 561,3 561,0 789,0 Anise 777,3 777,0 927,0 Sage 995,0 291,3 638,1 Thyme 642,8 215,2 412,5 Oregano 848,6 225,5 470,1 Linden+Thyme Association 1666,1 200,5 1525,5 Bay + Thyme Association 2696,4 239,4 1225,9 * Cost of establishment (initial); ** Average annual cost including Mechanized Operations and Input Costs; *** Average annual cost including Mechanized Operations, Input Costs and Manual Labor

The reason of the last is the highest number of plants per hectare because most of the initial investment consists of expenses for purchasing of the multiplication material (seed or young plants from nursery) and planting operations. Distances between trees in the bay plantation are much lower than those of linden increasing visibly the initial its costs. In general, costs for establishing plantations with the same plants in the future tend to be much lower, as long as seeds will be produced locally after the first time.

Average annual costs

Average annual cost is calculated dividing total respective costs with years of production cycle for annual and 4-5 year species (first and third scenarios) and with 12 years for perennial association (time when production becomes stable). Average annual costs of three scenarios, placed in increasing order are as following: thyme, oregano and sage (4-5 years); fennel and anise (annual); and then bay and linden association with thyme (perennial). When, in the average annual cost we do not consider the manual labor costs the situation seems different: all plants of second and third scenario have almost the same costs (Table 6) and much lower than costs of first scenario. As it is evident from the table manual labor costs in two last scenarios are higher. Graph 1: Initial and average annual costs

M.L.-Manual Labor M.O. Mechanise Operations Inp.-Input Manual labor in both scenarios is mainly for harvesting and in third scenario for planting and harvesting. This means that in the third scenario, after the initial investment with years the specific weight of costs and initial investment decreases.
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Time of pay-off
The first scenario of annual plants is able to pay-off and ensure profit every year of cultivation (Table 7). Four to five year species (second scenario) need higher initial investment and are able to pay off and ensure profit since the first year like the annual species. Perennial trees alone ensure longer duration of the investment and a very stable profit after ten years of establishment. The drawback of these cultivations can be considered high costs of orchard establishment and tardy pay-off (after the 5-th year). The last drawback can be corrected practicing associations with shadow-supporting plants such as common thyme. Linden-tree and bay-tree associated with common thyme can pay off after the second year of orchard establishment.

Profit margin
Based on average annual profit, the seven species are placed in a decreasing order as following: sage, oregano, linden association, bay association, anise, fennel and lastly thyme. Fennel can go to the first place for average profit margin if sold for multiplication material. Considering that most of manual labor costs belongs to harvesting or other activities for which farm do not spend financial resources but occupy free unemployed own working forces this can be calculated as farm income (Table 7 and Graph 2). Table 7: Average annual profit margin and time of pay-off for seven species Aver.Cost Aver. Prof. Marg. Pay off Av. Prof. Marg. Plant species M.L. + Cost M.L. Year 2210,0 (4710,0)* 2440,0(4938,0)* Fennel 228,0 1 2432,0 Anise 150,0 2582,0 1 3862,7 Sage 346,8 4209,5 1 1862,5 Thyme 197,3 2059,8 1 3429,9 Oregano 244,6 3674,5 1 3284,9 Linden+Thyme Association 1325 4609,9 2 2919,4 Bay + Thyme Association 986,5 3905,9 2 * Figures in the brackets belong to production for multiplication material (seed)

Duration annual annual 5 years 4 years 5 years perenneal perenneal

Then the order is: linden association, sage, bay association, oregano, anise fennel, and thyme. In case calculation was done for a period longer than 12 years, average annual profit margins for perennials tend to increase because they have not the same revenues during all the years. The first year revenues and profits are low but then, in the following years they increase concluding that after ten years their production tends to become stable. From the other side, need to be considered decrease of specific weight of cost belonging to initial investments because it has to be divided for higher number of years.

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Graph 2: Average annual profit margins and manual labor costs for seven MAP species

Considering all comparisions done, not a single specie can be sugested to the farmers. Fennel can be sugested as annual plant (when there is market for seed); Sage and then organo as five year plants and both linden and bay associations as perennial plants. Average annual profit margin of perennial species can be increased in years. Cultivation of refused low-fertility land in the mountainous area of Shengjergj with MAPs is cost effective (own study).

Socio Economic Farms Profile in Shengjergj Commune Farm structure and revenue sources
The average number of family members in Shengjergj Commune is 4,89. More than 80% of local farmers family are composed of 4 (25%), 5 (21%) or 6 (20%) members. Within family structure, almost all family members, excluding the ones under 16 years old, are engaged in agriculture and out of them about 48% are males and the rest (52%) females. The engagement in agricultural activities of both groups is almost equal, specifically: 80% males and 78% females of target groups belonging to work age are engaged in various agricultural activities (field work, domestic agricultural engagement or agricultural production marketing). In almost 20% of the cases, the farmers report that even members less than 16 years old are, in a modest way, engaged in agricultural work in field and at home. Based on survey results, family males are mostly engaged in field work as well as in production marketing (79% and 63% of the farmers interviewed accept that males in working age are very much engaged in the field work and production marketing respectively), whereas females are mostly engaged in agricultural activities which can be performed at home as well as in field work (88% and 67% respectively) (Graph3).
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Graph 3: Engagement in different agricultural activities of farm family members

The average area owned by the farmers interviewed in this commune is 5.5 ar or (0, 55 ha), and the average number of parcels is 4.4. Thus, farm size in Shengjergj is as much as of the national average in Albania. Such a big difference can be explained by the fact that at the moment the agricultural land ownership was refused due to the hard mountainous terrain, low possibilities in developing the most key agricultural activities such as plowing, irrigation and plants cultivation and/or even of the long-distances from the farmers house. What they confirm is also in tune with the generated output from the data processing of the questionnaire. About 34% (69) of interviewed farmers confirm that they have not used their own land last year because of above-cited reasons. (a- the quality of the land is not suitable for the plants I would like to cultivate (36%); b- the land is too far from my residence (settlement) (29%), c I am not able to carry out services like irrigation (6%). On the other hand, based on the fact that agricultural activities are the first priority of our targeted group (like in all rural areas in Albania), about 28 % of the interviewed confirm that they have made use of land of other families in the area. Some of last families have moved to live in urban areas; some cannot afford to cultivate the land. In our case study area there seem to dominate the mixed farms, which comprise as many as 88% out of the total. Out of this category, dominates farms with crops, livestock and fruit trees which comprise 46% out of the total. The range (variety) of crops, which farmers report to sell is pretty limited and include two types of vegetables: tomatoes and potatoes and less, cereals like corn and wheat. A considerable number of interviewed farmers report that the primary source of incomes is livestock and concretely, animal production of live animals like cattle and sheep as well as all kinds of dairy products such as milk, cheese, white cheese, butter, eggs, etc. The table below provides details on income sources (from selling) of the farm families in Shengjergj area according to the type of the farm. While going through the table below, it becomes evident that livestock products play a key role as income source compared to vegetables, corns and fruit trees including vineyard. Thus, about 169 (79%) of the target area farms have the livestock included in their structure. Out of these, 122 (75%) are able to insure incomes from selling the
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livestock products. Out of these, 44 (36%) of the farms insure incomes only by selling livestock products (live animals and / or dairy products). On the other hand, only 50 % and 40% of farms, which has in their structure crops and fruit trees including vineyard insure income from respective produce. At this point, it is quite understandable that the rest of the production of mixed farm in the study area is intended for self consumption (the one which is not sold in the market). Table 8: Data on farm structure and revenue generation Farms Structure of mixed farms Number Livestock Vegetables Fruit trees including vineyard 169 198 118 % 79 97 58 Number 122 100 48 % 75 50 40 Mixed sales Revenues source only: Number 44 23 9 % 36 23 18

Experiences with MAPs prior to 90s, when the state-owned agricultural cooperatives worked only according to geographic position and land characteristics, demonstrate that Shengjergji Commune was distinguished for cultivating and storing a great variety of MAPs. With the transformation of the political system, with the privatization of the land and introduction of market economy, farmers were mostly getting engaged in cultivating the crops and livestock breeding due to the market demands priority. At the same time, farmers in this area neglected cultivation of MAP since the market demand for a certain period became scarce. On the other hand, the cultivation of MAPs in the area became more and more limited also due to migration (in and out of the Country) of the families experienced in the field. In nowadays, while it appears that the demand for MAP species is deeply growing, the former tradition is obvious only in collection of wild MAPs. Out of 205 farmers interviewed in Shengjergj Commune, 98 (48%) confirm that they have collected MAPs last year in refused (not owned) and forest territory and have sold the products to the approached interested individuals on spot. From the processing of interviews data, it comes out that during last year in the four villages farmers families have collected more than fifteen MAP species. Species like mountain tea (Sideritis sp.), wild thyme (Thymus serpyllum), junipers (Juniperus communis and Juniperus nigra), salep (Orchis sp.) and elderberry (Sambucus nigra) are reported to have been collected in the four case-study villages. Only in Verri village of Shengjergj Commune about 61% of interviewed families have collected last year 17 MAP species, whereas in Burimas Village, it is reported to have been collected 6 MAP species, perhaps because of the lack of experience in the field. Table 9 provides a summary of number of farmers families that have collected wild MAPs as well as a summary of species collected from the farmers families in each case study area.

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Table 9: Families collects MAPs and MAP species Farmers Village Families Nr. * MAP species interviewed Wild thyme, junper, hawthorn, sage, dog rose, Shn Meri 50 24 (48) salep orchid, mountain tea sideritis, poppy, elderberry; Wild thyme, juniper, hawthorn, sage, dog rose, Ur 46 19 (41) salep orchid , mountain tea sideritis, elderberry, wild fern, balsam herb, iris; Wild thyme, juniper, hawthorn, sage, dog rose, salep orchid , mountain tea sideritis, elderberry, Vrri 64 39 (61) wild fern, balsam herb, iris, mallow, lemon balm, chamomile, oregano, mint; Wild thyme, juniper, mallow, salep orchid, Burimas 45 16 (36) mountain tea sideritis, elderberry. Total 205 98 (48) *Figures in brackets refers to the percentage over the total

Farmer perceptions on MAPs and their commercialization

Seventy percent of interviewed think that it is easier to find market for MAP species than other plants; 55% think it easier to cultivate them; 53% think MAP cultivation is not related to the tradition and 61 % think that it represent a good opportunity for additional income. Graph 4: Perceptions on MAPs.

There is a high number of farmers they think that cultivation of MAPs requests additional labor forces and other capacities which they do not posses.

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Knowledge and readiness on MAP cultivation

Despite this level of collection of MAP species in the study area, only 31% of farmers interviewed confirm to possess a good level of knowledge on the cultivation of MAP species (Graph 5). Graph 5: Farmers level of knowledge on MAP cultivation

. At the same time, farmers interviewed demonstrate a relatively low level of readiness to cultivate proposed MAP species (Graph 6) even though the vast majority of the farmers interviewed agreed that cultivation of MAP species represents a good opportunity to increase their family revenues and it is easier to cultivate and market them. Graph 6: Farmers preferences for MAPs to be cultivated (Commune)

This is probably due to the fact that the same farmers confirm: not to have neither sufficient labor force nor other capital and financial capabilities to cultivate such species; .not well and fair marketing. Even they think it is easier than vegetables or other species to cultivate MAPs, they
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are not satisfied with the revenues. There is not a collection or storing center in the commune; there are not contracts between them and buyers; above all, selling prices are very low. Farmers cannot influence selling prices of MAPs and buyers decide prices and whether to buy or not. However, for farmers answered positively for species they prefer to plant the first place belongs to Sage, followed by oregano (4-5 annual plant scenario); almost the same level of preferences was demonstrated for linden and bay association with thyme (perennial plant scenario); last preference were annual plants and thyme (in case fennel is sold for seedling it goes at the same level of third scenario). As it is seen, driving forces for selection of species and scenario is their economic performance and familiarization of farmers with plants. Oregano, Thyme and Salvia are found in their wild form in the area and farmers collect them to ensure incomes. Data regarding single villages, generaly speaking, coppy sumirised data presented on Graph 6. Respective graphs for single villages are presented into the Appendix D (Graph 7).

Conclusions
Considering climate conditions and soil characteristics of pilot mountainous area of Shengjergj and the international market demand for MAP species, three different time-scenarios were studied: annual; 4-5 annual and perennial. Species suitable to be planted are considered seven: fennel, anise, sage, oregano, common thyme, linden and bay. Based on on-desk cost-profit analyses, four MAP species result to be more profitable. Listed in a decreasing order these species are: sage, oregano and linden and bay association. Plants which seem to be less profitable are annual plants such as fennel and anise and four-annual specie of common thyme. The annual species need more fertile soil and higher mechanization than other multiannual plants; they have relatively low initial costs, immediate pay-off but low profit (exception of fennel for seed). From the other side common thyme has the same characteristics of sage and oregano but lower profit because of low production. Linden and bay association has lower profit especially first years, produce for longer period and pay off later (after 5 years); When first years are associated with common thyme, time of pay-off is shorten (after 2 years) and have higher profit margins being comparable with sage and oregano. Most of the farms interviewed in the pilot area were mixed with low incomes. Farmers were not satisfied with their incomes and were opened to find alternatives to increase them even (according to them) finding such alternatives was difficult because of little land, disadvantageous soil and terrain conditions, big distance from the market and absence of local marketing structures along with unfair prices. Regarding level of farmers engagement on different farm activities that consider gender issues it was concluded that males were engaged mainly on field and marketing activities while females were mainly engaged in agricultural activities at home and then in field. Level of Knowledge of farmers on MAP cultivation is low to moderate (41% and 28 % respectively). They base their decisions mainly on their experience and knowledge. It was not an effective advising service by private or public extension services. Acceptance of the interviewed farmers for MAP cultivation was low: about 34 % of interviewed had high acceptance for sage; 32% for oregano and 28% for linden. Regarding
16

marketing of MAP species including wild ones which people were collecting in the area, there was not a well established market infrastructure. MAP marketing was spontaneous through different intermediaries without any contracts and protectionist practices to farmers. They were not satisfied with the prices because, the prices were low. These prices were offered by intermediaries and not by transforming companies putting here another chain and reducing farmers profit margin.

Recommendations To Policy -makers:

Since the area was relatively poor, policy makers have to intervene to contribute to improvement of quality of life of farmers in the pilot areas. One of the first activities recommended for life improvement could be establishment of legal framework and procedures for giving refused land to farmers to put it under efficiency. Recommended forms could be all or one of the following: for rent, in use or property. Since international market for MAPs is still growing and Albania has good international presence in this market, policy makers need to intervene and support creation of local market infrastructure helping famers to arrive to processing and exporting companies and improve farmers negotiating power. Negotiation power of farmers is recommended to be increased through their collaboration and cooperation. It is recommended to promote cooperation between farmers in producing and marketing MAPs because in this way they can reduce their costs (sharing them), be sure to arrive to the market and increase negotiating power on the price of selling with transforming companies.

To Extensionists
Before an innovation diffusion campaign or advice (cultivation of MAP selected) it is necessary to be established different MAP spot trials to check their adoption to local conditions and harmonization of all technical and socio-economical issues. These trials have to be designed to serve as a test for the community and mean time as demonstration fields. It is recommended that farmers be trained on MAP cultivation and be advised for cooperation and collaboration between them for producing and marketing of MAPs.

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Acknowledgment:
The present research became possible by Albania/Hawaii Higher Education and Economic Development Project (AHEED). Many acknowledgments are dedicated to AHEED project which supported us technically and economically during realization of this research. Many acknowledgments are directed to Dr. Catherine Chan-Halbrendt for her continuous support to our working group starting at the first stages of writing and applying for the present research project.

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Appendix A
Table. 10: Cost-profit analyses of Sage (Salvia officinalis)- Five annual MAP (000 /ha) 1st Year 2nd Year 3rd Year 4th Year 5th Year Costs Mechanized operations Manual labor Inputs Revenues Profit margin Profit margin + Manual labor 1,26 0,18 0,26 0,82 2,14 0,88 1,14 0,47 0,07 0,40 0,00 5,36 4,89 5,29 0,47 0,07 0,40 0,00 5,36 4,89 5,29 0,64 0,07 0,36 0,21 5,36 4,72 5,08 0,36 0,05 0,31 0,00 4,29 3,93 4,24

Table. 11: Cost-profit analyses of Common Thyme (Thymus vulgaris var. album )- Five annual MAP (000 /ha) 1st Year 2nd Year 3rd Year 4th Year Costs Mechanized operations Manual labor Inputs Revenues Profit Profit margin + Manual labor 0,84 0,16 0,20 0,48 1,40 0,56 0,76 0,26 0,03 0,23 0,00 2,70 2,44 2,67 0,23 0,03 0,20 0,00 2,70 2,47 2,67 0,33 0,03 0,16 0,14 2,30 1,970 2,14

Table. 12:Cost-profit analyses of White Oregano (Origanum vulgaris )- Five annual MAP (000 /ha) 1st 2nd 3rd 4th 5th Year Year Year Year Year Costs Mechanized operations Manual labor Inputs Revenues Profit Profit margin + Manual labor 1,01 0,17 0,16 0,68 2,50 1,49 1,65 0,29 0,03 0,26 0,00 4,38 4,09 4,35 0,31 0,04 0,27 0,00 4,75 4,44 4,71 0,45 0,04 0,27 0,14 4,13 3,67 4,57 0,28 0,04 0,24 0,00 3,75 3,47 3,71

Appendix B

Table. 13:Cost-profit analyses of Linden (Tilia sp.) associated with Common thyme (000 /ha) 1st Year 2nd Year 0,24 0,02 0,22 0,00 2,00 1,76 1,98 3rd Year 0,21 0,02 0,19 0,00 2,00 1,78 1,97 4th Year 0,53 0,04 0,49 0,00 3,03 2,50 2,99 5th Year 0,28 0,04 0,64 0,2 3,19 2,32 2,96 6th Year 0,83 0,04 0,79 0,00 3,76 2,93 3,72 7th Year 1,04 0,08 0,96 0,00 3,39 2,35 3,31 8th Year 1,51 0,10 1,41 0,00 5,08 3,57 4,98 9 Year 1,82 0,11 1,71 0,00 6,21 4,39 6,10 10th Year 2,29 0,13 2,16 0,00 7,90 5,61 7,78 11th Year 3,23 0,17 3,06 0,00 9,60 6,37 9,43 12th Year 3,85 0,20 3,65 0,00 10,16 6,31 9,96

Costs Mechanized operations Manual labor Inputs Revenues Profit Profit + Manual labor

1,87 0,17 0,6 1,10 1,40 -0,47 0,13

Appendix C

Table. 14:Cost-profit analyses of Bay (Laurus nobilis) associated with Common thyme (000 /ha) 1st 2nd 3rd 4th 5th 6th 7th 8th Year Year Year Year Year Year Year Year Costs Mechanized operations Manual labor Inputs Revenues Profit Income 2,86 0,17 1,06 1,63 1,40 -1,46 -0,40 0,62 0,02 0,42 0,18 2,84 2,20 2,62 0,48 0,03 0,45 0,00 3,36 2,88 3,33 0,45 0,03 0,59 0,00 3,19 2,56 2,75 0,96 0,03 0,3 0,20 3,61 2,65 3,08 1,12 0,09 1,03 0,00 4,47 3,35 4,38 1,18 0,08 1,10 0,00 4,40 3,22 4,32 1,17 0,08 1,19 0,00 5,21 3,94 5,13

9 Year 1,34 0,08 1,26 0,00 5,43 4,08 5,34

10th Year 1,41 0,08 1,33 0,00 5,54 4,12 5,45

11th Year 1,41 0,08 1,33 0,00 5,14 3,73 5,06

12th Year 1,41 0,08 1,33 0,00 5,14 3,73 5,06

(Profit + Manual labor)

Appendix D
Graph 7: Farmers preferences for MAPs to be cultivated (Villages)