In the region of Serbia there are more than 3000 of plant species, a lot of them expressing medicinal or aromatic properties. Favorable environmental conditions have significantly contributed to the recent diversity of such plants. However, available natural resources of medicinal plants are not sufficiently exploited in the context of economy development of the Republic.

On the basis of acquired experiences, available natural conditions, actual market demands, achievements in science and technology development, number of educated personnel of different profiles, it follows that there are optimal economic conditions in Serbia for the further expansion of medicinal and aromatic plant production.

In the realization of economic aims it is very important to activate all available capacities of private farms. Global solutions and means of economic policy of a society may also improve the widening and promotion of this production type.

This paper deals with the following problems: 1) medicinal and aromatic plants in economy development and realized economic effects; 2) the position of economy subjects, especially agricultural ones, in the expansion of medicinal and aromatic plant production; and 3) global solutions for expansion and promotion of medicinal and aromatic plant production.

Medicinal plants in our country have firstly been collected from natural habitats serving for human healing or protection of different illnesses. This means that in the beginning, medicinal plants didn't represent separate branch in economic activity of society. However, modern science development discovers useful characteristics of many plants for human health protection and for economy development of society. Nowadays, the production and finalization of medicinal and aromatic plant products create the modern sector with dynamic trend in developmental policy of many developed countries. The development of industries, such as: pharmaceutical, food, cosmetic, industry of spirit and non-spirit drinks etc., continuously contributes to the market expansion of final products on medicinal plant basis.

In our country medicinal plants have been for a long time put on the margin of developmental policy of society and economy subjects. Former results in medicinal plant collecting, production and finalization designate that available natural and social resources still haven't been optimally utilized.

In Serbia, about 500 of medicinal plants have been identified, as well as, the production capacities of more than 150.000 tons. This data show that in Serbia exists great natural fortune, which could be adequately used for different needs, although it has not been sufficiently investigated, especially on the basis of determination of medicinal plant useful features. It may be pointed out that well distributed medicinal plants represent our "gold-mines", which haven't been sufficiently utilized. It is obvious that nature gives us more than we are taking from. In fact, we don't accomplish possible social and economic effects.

The production of medicinal and aromatic plants is distinctly orientated toward the export. Primary products of medicinal and aromatic plants and remedies are very demanded on world market, especially from countries characterized by unpolluted environment, like Serbia, as well.

The export value of both medicinal and forest plants, according to the export and import balance of accounts of raw and processed plant products represents only minor part of our potential in growing medicinal plants on plantations.

According to the presented data (Tab. 1) the following may be stated:

• The range of medicinal plant and forest treasure (berries and mushrooms) export in observed period had increasing tendency. Namely, the average value for period 1996-1999 was higher for more than three times (index of 332) in comparison with the average value from period 1989-1992. Such tendency of export growth of these products designates that market isn't the limiting factor for medicinal plant production;

• Through the export of medicinal plant products is achieved significantly higher clear profit relating to the total export of raw and processed plant products;

• The import was covered by export in extent of 1280 % and 1313% in the period of 1989-1992 and 1996-1999, respectively;

• The participation of such products in total export of raw and processed plant products increased from 2.17% (period 1989-1992) to 7.09% (period 1996-1999). This also points out on comparative advantage of these products in import, comparing to the other products of raw and processed plants.

Beside the positive trend which reflects in economic effect achievement by medicinal plant export, it could be noticed a positive tendency in medicinal plants finalization into the various products within the pharmacy and cosmetic industry, as well as, the expansion of medicinal and aromatic plant utilization in food and drink industry. However, the whole available potentials of medicinal and aromatic plants, as a basis for strategic aims achievement in Serbia (growth of foreign currency supply, higher utilization of processing capacities in pharmaceutical, cosmetic and food industry, as well as, the increase of employment of rural employable population) designate that existent production potentials are still not sufficiently utilized.

The main reasons for insufficient utilization of existent potentials of medicinal plants could be summarized as follows:

First, the importance of this field in economy development of our country has not been sufficiently observed. Namely, there is the fact that medicinal plant production has not been equally treated in developmental and economic policy of Serbia and Yugoslavia.

Second, the stimulus for expansion of such plant production comes, in the first place, from foreign market and influence of the processing industry is unsatisfactory. Our industry has been more orientated on import of this branch products, since the OUN sanctions were introduced and only minor attention has been paid to the organizing of medicinal plant production for our own needs. From the other side, our import-export companies do not encourage the continuos medicinal plant production because of their low coordination for common presentation at foreign market. Third, low level of organizing, i.e. connection of all interested subjects (farmers, collectors, exporters, etc.) also represents huge reason for poor realization of optimal effects in this economy branch. In the presence, everybody works for himself which doesn't contribute to the continual growth of production, processing and export of medicinal and aromatic plant ware. Fourth, inadequate treatment of medicinal plant production on plantations, by global strategy and means of economic policy, also doesn't contribute to the expansion of such production. There have not still plans and programs created by society in the aim of optimal farm machinery utilization. Republic of Serbia creates programs for main crop production but these plans don't comprise medicinal and aromatic plant production.

Farms have dominant position in agricultural structure of Serbia considering the property of input funds. They dispose with more than 85% of agricultural land, 95% of cattle fund and 98% of total mechanization. The proper conditions for expansion of medicinal plant production appear from the structure of agricultural sector.

The total number of farms in Serbia is about 1.115 thousands with average size of 3.2 of cultivated and 4.7 of whole agricultural land. Usually, the property is divided into 9 separate lots with average area of about 0.32 ha.

In property structure the highest participation have farms of size less than 5 ha (75%), while farms of 5-10 ha size (23%) are less represented. The lowest participation have farms with property greater than 10 ha (4%).

Such a structure of property and lots represents serious difficulty for rational application of modern agro-technique, as important mean for high productivity and economical agriculture. Low production based on the unit of capacity (ha) and high production expenses based on the unit of main crop products (wheat, maize, etc.), which are not accepted by the market, are important reasons for lower farmer's profit, insufficient to provide better standard of living comparing to the workers of other social affairs.

In such unfavorable conditions for economical production of traditional crops, there is a need for small agricultural property to adjust to production structure, i.e. to orientate on products which are lucrative.

Former practice and scientific research have confirmed the economic payability of organizing the medicinal plant production on plantations. Investigations by Vukomanović and Stepanović (1992) presented on Tab.2., have showed that in all cases a positive financial effect was achieved. The realized profit in all analyzed medicinal plants was significantly higher comparing to the profit accomplished via traditional crop production (wheat, maize, etc.). This fact evaluates the social and economic justification of medicinal plant growing. Certainly, positive productive and economic results could be realized only if organization of plant production is properly organized and controlled by well trained professional stuff.

Medicinal plant production programs at farms ought to be defined in accordance with the breeding technology specific for each plant species. The fundamental criterions for creating the dimension of plant production program are available farm conditions (farm size, the soil quality, available working personnel, proper mechanization and equipment, storage capacities, etc.). The repositories of these programs could be farmers' cooperative connected with associate industries or export companies. Such programs have to be supported by stimulate activities of economic policy, because after the realization, all participants should accomplish their direct aims, like:

• farmers could acquire the extra income,
• society could gain higher foreign currency profit,
• industry would be supplied by material of proper quality for it's processing capacities.

For more organized and faster expansion of medicinal plant production is of importance to create the production of seed and seedling material. The main subjects of this program ought to be exclusively scientific and professional institutions controlled by competent state offices for agriculture. Serbia disposes with numerous professional personnel for good production of seed and seedling (transplant) material.

On the basis of interpreted data, as well as, other scientific results, could be noticed that Serbia manages with sufficient economic conditions necessary for market demands by both collecting and expansion of medicinal and aromatic plant production. This tendency has an increasing trend, higher than it is at the moment.

The long-term aims in agriculture and other economy fields are being realized through the developmental policy. It usually defines long-term program of certain production branches development, as well as, the group of products and measures of its accomplishment.

The position of medicinal and aromatic plants has been for a long time placed at the margin of our developmental policy in agriculture. However, in the recent decade, together with the affirmation of market system, in the Republic has been more attention paid to market valorization of natural and other agricultural resources. However, many comparative advantages in this field are insufficiently utilized. One of comparative advantage in agricultural region of Serbia, especially in hilly-mountainous area refers to the possibilities for greater high-quality medicinal and aromatic plant production, valorizing the part of agricultural land, work of rural population, higher utilization of industrial capacities for raw processing from domestic production and an increase of foreign currency supply by the export. The Republic of Serbia has a long term orientation of supporting such programs, whose products are assigned for export by creating the means of developmental and current policy (export stimulation, taxes allowance, credits for development under favorable circumstances, etc.). Development of medicinal and aromatic plant production and processing is depended on governmental funds assigned for program realization of rural area revitalization.

Solutions based on the tax-policy are stimulate for medicinal and aromatic plant production and processing, as well. Tax-payers under certain circumstances have rights to:

• Accelerated amortization of permanent incomes, with rates that can be up to 25 % higher than ascribed;

• Free tax on profit gained by establishing a new company in insufficiently developed communes during the period of 3 years in amount of 100 %, ranging from 30 % to 70 % for other regions;

• Diminishing the income tax for companies that invest this taxes in their development;

• Diminishing the income tax during the period of 5 years in the case when foreign capital would be invest in company;

• Free income tax during the period of 5 years for land becoming useful, due to the investment of tax-paying person.

According to the above mentioned data, it may be noticed that development of medicinal and aromatic plant production has been treated in the same manner as is the whole plant production, due to the measures undertaken by developmental and current policy of the Republic. However, it is evaluated that some solutions from income tax-policy can be enlarged to improve this production, such as:

1. the funds invested in seed and transplant production should be deducted from the sum of land-register income;

2. the tax-income shouldn't been paid if one invest in new plantation for seed and transplant production during the period of 10 years;

3. the bonus and other financial allowances should be introduced for seed and transplant material production.

Having in mind the importance of some normative solutions for long term development of high-quality medicinal and aromatic plants, would be worthwhile providing the following solutions:

1. better defining of plots (parcels) for seed and transplant production in creating the regulative for soil protection, utilization and arrangement;

2. in the frame of long term improvement of agricultural production, as the basis for the work of professional agricultural offices, the concrete activities have to be better understood;

3. utilization of agricultural budget of the Republic should provide the funds that will enable the soil, which are utilized for medicinal and aromatic plant production, to have a treatment as re-cultivated one. Thereby farmers, collective farms and companies could utilize the stimulate funds of the Republic.

Production and processing of medicinal plants represent an important strategic agro-industrial grouping. Available natural resources and market potentials (both domestic and foreign) designate the possibilities for this economy branch development.

The medicinal plant raw production represents specific agricultural branch, relying directly on diversity, abundance, the structure and utilization manners of these plants. This fact designates that in creating the developmental programs of medicinal plant production, there has to be provided the coordination between activities and production technologies and environment protection policy. The concept of policy of sustainable agricultural development ought to be applied in accomplishment of such aims.

It is necessary to apply the modern technologies of intensive growing of different sort of medicinal plants, especially on private farms, in order to provide sufficient quantities of raw material.

In forming of an ambitious economic and developmental program in this agro-industrial grouping, it is important to introduce the modern technique-technological methods into the primary plant production, while in the processing phase the processing capacities should be amplified, especially for obtaining the high-quality final plant products.

In the botanicals circulation sphere should be elaborated the strategy and provided even higher circulation of final products of medicinal plants.

The specific global conditions should be elaborated and stimulate activities of agriculture and economic policy should be defined in achievement of designated economic and developmental aims.

Through the developmental programs in the frame of this agro-industrial grouping can be provided the more permanent basis for incorporation of our country into the international labor division on the principle of profit accomplishment.

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4. Bogdanović J., Vukomanović L. (1995): Lekovito i aromatično bilje u strategiji dugoročnog razvoja privrede i zdravstvene zaštite stanovništva. Lekovite sirovine 14, Institut za proučavanje lekovitog bilja "Dr Josif Pančić", Beograd.

5. Bogdanović J., Simić J. (1997): Ekonomski aspekti proizvodnje, prerade i prometa kamilice. Poglavlje u monografiji "Kamilica", Institut za proučavanje lekovitog bilja "Dr Josif Pančić", Beograd.

6. Simić J., Bogdanović J., Vukomanović L., Babović J., Maksimović S. (1998): Ekonomski aspekti proizvodnje, prerade i prometa nane. Poglavlje u monografiji "Menta". Institut za proučavanje lekovitog bilja "Dr Josif Pančić", Beograd.