Agriculture falling behind in regional competition

Though considered as a country with an agricultural profile, Albania does not have any competitive advantage over any of the countries in the region, writes the local press (Albania, 15.07.2009). This information from a series of statistical data that the newspaper believes were withheld from publication. A lecture regarding recent information issued by the Ministry of Finances has led Albania’s business editor Ervin Ko詠to track undisclosed information by the Ministry of Agriculture, Food and Defense of the Consumer (Ministria e Bujq촩s묠Ushqimit dhe Mbrojtjes s롋onsumatorit) (MBUMK). He speaks of a regressive situation for Albanian agriculture in 2008 and a fall-back in competition terms.
Albania does not have any advantage over any of the countries in the region and has lost ground even in agricultural exports to Kosovo. It is facing increasing competition from other countries in the region, writes Ko詮 Neighboring countries are rapidly investing in the development of agriculture, in improving quality and in development of pricing advantages. They have reached a rapid expansion in target markets such as markets open to expansion. From 24 groups of product that Albania trades, only 4 result in a positive balance sheet, states Ko詬 who explains that over 55 % of the value of exports is realized by only 2 % of the groups of products.
He reports that after an increase of exports by 20 % in 2007, the trend experienced a cool-off with an increase of exports of only 2 % in 2008. The Ministry of Finances believes this to be a consequence of the droughts and lack of electric power, while the Ministry of Agriculture believes that the agricultural sector is experiencing growth.
Though Albanian products are of a high quality level, they have not been able to make it in the regional competition asserts Ervin Ko詬 who explains that fruit and vegetable exports do not cover more than 7.5 % of the exports and represent a value of nearly 6 million US Dollars. Exports of alcoholic beverages have also been decreasing, except for beer which is increasingly popular in the regional market.