ANALYSIS OF THE TOBACCO PRODUCTION IMPACT ON THE ECONOMIC SITUATION IN THE COUNTRY

Abstract

Agriculture is exceptionally important economic industry and it enjoys a very important treatment in the global EU policy. The contribution of agriculture to the Union's gross domestic product (GDP) is below 3%, but this industry employs about 5% of the employed working age population of the Community and is a major source of income in many rural communities. Food, beverages and tobacco represent about 20% of the average household expenditure in Europe and their contribution in the Union's international trade and export is very significant. The EU own production of basic agricultural products is vital both for its citizens and the political independence of its member countries. The economic, social and political importance of agriculture outweighs the contribution to the Union's GDP. Tobacco cultivation and tobacco production are part of the most important economic activities in Macedonia. Our country is a well-known producer of high-quality oriental type of tobacco, which is part of the recipes for manufacturing best quality cigarettes. Tobacco production is of economic importance and it should be sustained, despite the reduced production imposed by the EU in many countries. Many types and varieties of tobacco which are well-known for their specific properties, participate in obtaining the expected properties. According to the aroma, tobacco is divided into aromatic and non-aromatic. The term “aromatic tobacco” usually refers to the oriental types and they contain essential oils and other aromatic substances, due to which, their leaves become fragrant after the process of drying. The Balkan countries, including Macedonia together with Greece, Bulgaria, and Turkey, are the largest traditional producers and exporters of quality oriental tobacco. That is why the primary production of oriental small-leaf aromatic tobacco is of great economic and social significance for us. Due to its high quality, the Macedonian oriental tobacco is highly valued on the international market and together with the tobacco products, it is a significant export product that provides foreign exchange inflow into the state budget.