The Importance of Alternative and Complementary Business in the Economics of Southestern Lithuania (in Lithuanian language)

2010-12-27
The Importance of Alternative and Complementary Business in the Economics of Southestern Lithuania (in Lithuanian language)

This article presents analysis on alternative business and accessory activity of rural residents in South East Lithuania. The analysis of the period of 1995-2009 shows that the increasing number of rural residents (unemployed or those receiving low in­come) join the development of accessory businesses. The study was con­ducted for Varėna region, which characterizes with the largest forest cover, and the poorest soil fertility. In this way, the rural residents can carry not only agriculture, but also forestry. The article points that the businesses have been known for long ago. They were analyzed yet in the years 1939-1940. Before independence, the forest used to satisfy not only persona l needs, but also served more for rest than for development of business. Today, the forest resources are the strong support for local residents. They render assistance to economically weak farms receiving low in­come from agriculture, to residents of smaller towns, who have temporarily lost their employ­ment, also to people receiving low in­come, and unem154 ployed residents. The article analyzes that a significant part of farmland in Lithuania consists of low-productivity soil (up to 32 productivity points). The agricultural activity of farmers farming the low-productivity lands situated in Varėna , Šalčininkai, Vilnius, and other loca­lities attributed to those less favourable for agriculture, also in loca­lities with specific natural disadvantages, has decrea­sed, as well as agricultural activity of small farms, rural residents, and pensioners. It must be assu­med that rural residents receive their in­come from some other subsidiary businesses (Table 1). Try­ing to receive money for maintena n­ce and to remain in market, the farmers developed their farmland area s by lea­sehold. Du­ring that period, also some other farmers and rural residents used to develop the area s for more profi­table cultures, for example, buckwhea t, oat, and triticale, and used to sell their stockbreeding production in markets. Moreover, every country­man own ing a plot of land of 1-3 hecta­res, grows vegetables for his own needs. One of the most important seasonal works, which can be attributed to alternative ones, as well as to accessory activity, is picking mushrooms and berries for selling purposes. Another important commercial activity rela­ted to use of forest resource is preparation of timber, resin, and secondary wood materials. Some other resources are also picked: nuts, herbs, and sap. The article shows that the mea­ning of picking and use of forest resources is infinite for a countryman, - an endless potential milieu (spread), when a countryman can carry some accessory activity. Survey s state that not considering if the countryman is a farmer, a pensioner, an unemployed, or a countryman receiving low in­come, before and after independence, he has always been next to agricultural activity (produced alimentary products for himself), and some accessory activity used to be and still remains a significant factor, which improves social and economical conditions of rural residents. However, social and economical differences between ru­ral residents still increase, not reduce. Though country life shows that agricultural activity and altern ative activity are balanced. It will continue for many years. A signifi­cant part of rural residents (farmers) has used the supporting mean s provided by structural funds of EU, was able to modernize production, and to master some new technologies. Therefore, following the programme of 2007-2013 (KPP), it is necessary to try that the people who have used the means of “Development of economical farming and promotion of alternative in­come” would develop occupation and increase in­come not as the source of additional in­come, but as the main source of in­come, for example, ha­ving reactivated the enterprise of processing fruits and vegetables in Varėna , having collected the production of forest resources, they would be provided to a shopper with no intermediary, having bought the forest resources, the grown vegetables would reach the hands of a single person with no intermediary.

Keywords:alternative business, complementary economic activity, in­comes, profitability.

Batuliavičiūtė, L. Alternatyvių ir papildomų verslų svarba ir ekonominiai uždaviniai pietryčių Lietuvoje. Ekonomika ir vadyba: aktualijos ir perspektyvos. 2010. 3(19). p. 147-154, Mokslo darbai: Kaimiškųjų vietovių socioekonominė plėtra, I tomas. ISSN 1648-9098. EBSCO sąrašas (Business Source Complete; Central & Eastern European Academic Source).