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Albania has the most underdeveloped agro-industry in the region, Kosovo is first

Politiko 2025-05-13 14:43:43

Albania has the most underdeveloped agro-industry in the region, Kosovo is first

Albania is competitive with the Region for early agricultural production, but on the other hand, it ranks last in terms of agro-industry development, a sector that multiplies the value of agricultural products.

A recently published comparative analysis by the Regional Cooperation Council showed that the per capita agro-industrial production capacity in Albania was USD 76 per capita in 2022, with a large difference with each of the other 5 Western Balkan countries.

Kosovo and Serbia lead the Region in strong agro-industrial development. These two countries generate over 70% more value per capita than the Region average and have developed sustainable food processing bases.

In Kosovo, agri-food production per capita was 387 USD in 2022, the highest level in the Region, in Serbia it was 278 USD per capita, followed by North Macedonia with 177 USD per capita, Bosnia with 158 USD, Montenegro with 129 USD and Albania with only 76 USD.

As a result of these developments, Albania has the lowest share of agri-food exports. Serbia is the only economy that leads the Region in this field in both production and exports, significantly increasing its position in global agri-food markets, on the other hand Albania has the lowest share of exports in the world. Our country is also based on a narrow range of export products.

In 2023, Albania had a trade deficit in agri-food items at -1% of GDP, an improvement from 2010 when the deficit was -4%.

The Regional Cooperation Council's analysis suggests increased diversification of products and markets for Albania. Also, a regional traceability system for food safety increases the confidence of European buyers.

Investments in technology and the circular economy can boost bio-based production, the demand for which is growing.

Expanding agri-tourism with farm-to-table products is an efficient way to increase the value of local products, especially in Albania.

The agro-industrial sector in our country has been developing rapidly in the last 6 years, but the fall of the euro has severely damaged factories, which have been forced to reduce their activity due to the losses created by the exchange rate./ Monitor

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