Economic analysis of fruit tree nurseries in Albania

Abstract

Production of healthy and certified nursery trees is one of the primary conditions for intensive and stable development of the fruit tree sector. In the last decade, fruit tree production in Albania has drastically increased with more than a thousand hectares per year. The nursery production has attempted to follow with the same pace with about 150 nurseries in the country and more than 2 million nursery trees planted and only 9 percent imported. The purpose of this research, conducted from 2008–2009, was to undertake an economic analysis of these nurseries in view of potential subsidies offered by the government. Thirty-six nurseries were interviewed having quite an intensive production of nursery trees located in the Vlora, Fier, Durrës and Tirana regions. Twenty nurseries are specialised, producing only one species of fruit trees, 8 nurseries producing two species and other 8 producing three or four species. The data showed that all the nurseries studied are profitable. On average, their net income is 20000 EUR/farm. The ratio between incomes and costs is 1:0.45. Furthermore, farms producing up to two species of nursery trees have better financial indicators than those producing 3 to 4 species. Moreover, the specialised nurseries have lower costs of more than 3 percent for all categories of nursery trees.