The export/import coverage ratio for agriculture was at 17.4 percent which means Albania imports 5.7 times more than it exports, creating a huge trade gap in Albania agriculture balance sheet.
TIRANA, March 31 – Agriculture, a sector which employs around half of the country’s population but provides only around 20 percent of the GDP, is one of the least productive sectors in Albania’s economy. Although it has been the sector with the most stable growth in the past five global crisis year, the Albanian economy continues remaining largely dependent on agriculture imports which are around six times higher compared to exports.
Data published by the agriculture ministry show the export/import coverage ratio for agriculture was at 17.4 percent which means Albania imports 5.7 times more than it exports, creating a huge trade gap in Albania agriculture balance sheet.
In a meeting with exporters this week, Agriculture Minister Edmond Panariti promised to reduce barrier so that the current 1 to 5.7 ratio in favour of agricultural imports changes.
Exports of agricultural products rose by 17 percent to 15.2 billion lek (Euro 106 million) in 2013, fuelled by increases in canned fish and medicinal plants, the top Albanian agricultural exports, according to an annual report published by the Agriculture Ministry.
After the slight drop in 2013, exports of canned fish and anchovy top Albania’s agricultural and agro-industrial products with around 3.4 billion lek (Euro 23.7 million), up 14 percent compared to 2012. Second come medicinal plants with exports in 2013 climbing by 27 percent to (Euro 23.4 billion lek), almost the same to exports of canned fish.
Albania exported some 4,423 tonnes of canned fish and anchovies in 2013, up from 3,047 tonnes in 2012. Meanwhile, exports of medicinal plants grew to 11,221 tonnes, up from 9,776 tonnes in 2012. Exports of vegetables were the third most important agricultural export in 2013 with around 1.3 billion lek (Euro 9.5 million).
Data show Albania imported around 87 billion lek (Euro 609 million) in agricultural and agro-industrial and livestock products in 2013, down 0.4 percent compared to 2012, registering a deficit of 72 billion lek. Imports of agro-industrial products account for around 62 percent of total agricultural imports, followed by agricultural and livestock exports. In the third quarter of 2013, when the Albanian economy contracted by 2.3 percent, agriculture was the only sector to register positive growth rates.
Albania’s agriculture
Albania’s agriculture sector has the highest gross value added (GVA) and employment share among all nine EU candidate and potential candidate countries, according to a recent report by the Eurostat, the EU statistical office, on enlargement countries.
The Albanian agriculture sector accounts for around 20 percent of the gross value added by main sectors, and employs 44 percent of the country’s population, according to Eurostat data for 2011.
Latest data by the country’s state Institute of Statistics (INSTAT) show the agriculture employs 522,300 people, which is 47 percent of the total labour force.
Despite accounting for almost 20 percent of the GDP and employing half of the country’s population, the agriculture sector is one of the least financed sectors by commercial banks. Total lending to the agriculture sector at the end of September 2013 was at 5.8 billion lek, up 10 percent compared to a year ago but accounting for only 1.5 percent of total lending to businesses.
Agriculture is also the least financed among government priority sectors receiving only 0.5 percent of the GDP.
Despite the progress made during the last years, overall agricultural productivity in Albania is lower than in the agricultural sectors of its neighbours and the rest of Europe and lower than the average of the Albania’s economy as shown by the sector’s higher share in terms of employment than in terms of value added.
Experts say the small size of farms, lack of appropriate management of land and agricultural infrastructure and technology make the Albanian agricultural sector more problematic compared to other countries in the region.
Agricultural cooperatives are now legally recognized as joint enterprises created on a voluntary basis, giving the Albanian farmers more opportunities to maximize their production and benefit more in funding from government and financial institutions.
