[ad_1]
Agriculture in Albania is going through difficult days, as a result of the global crisis that has affected the two to three times increase in the price of agricultural inputs.
Experts say that this sector, with an impact of about 20% on Gross Domestic Product, inherits old problems, which lead to low productivity. It, according to them, is characterized by a spontaneous development, disorganized and with a high fragmentation of the land. The Ministry of Agriculture and Rural Development is applying some subsidy schemes, but farmers say they are insufficient.
Agriculture in Albania holds a high share in the structure of the economy, with 20% of Gross Domestic Product and employment rate of about 40% of the labor force in the country. But even though it has this weight, almost three times the region, the agricultural sector has low productivity and does not meet the needs in the country. In Albania, according to official statistics, only 14% of 350 thousand farming families have over 2 ha of land and are considered with productive potential. Experts say that agriculture is characterized by a spontaneous, unorganized development and with a high land fragmentation, which according to them constitute serious obstacles in the organization of large productive farms. But the old problems in this sector are compounded by several others as a result of Russian aggression in Ukraine. Agriculture is facing rising oil prices, and two to three-fold increases in the prices of agricultural inputs, which are fully imported. According to official statistics about 30% of chemical fertilizers are imported from Russia. But farmers say that beyond price increases in global markets, there are abuses in the domestic market.
“We eat two punches, the global punch and that of domestic market speculators. We get the most standard price, 140 thousand old lek 1 kv of fertilizer from 70 that was, while the purchase was made 72 thousand lek. “There is something wrong here,” Misir Haxhiu, administrator of the United Agricultural Society “GRAMES”, told VOA.
The Competition Authority in March this year fined three companies for importing and trading chemical fertilizers. She found them in violation of competition with each other, as they had fixed selling prices. The Minister of Agriculture and Rural Development also told VOA that she has set up a working group to verify allegations of abuse and clientelistic policies in the chemical fertilizer market in the country. But despite the difficulties over the years in the agricultural sector, Ms. Frida Krifca says that the improvements are visible referring to the narrowing of the export-import ratio, from 1 to 7 in 2013 to 1 to 3 last year, while making an export balance. in the first 4 months of this year.
“There are almost 30 million euros more exports in the first 4 months of the year alone. This makes us optimistic, for the fact that farmers have strongly withstood the current crisis of rising prices of agricultural inputs. “Every year we are seeing a gradual increase towards the target that we have to have 1 billion euros of exports per year, until 2030,” Frida Krifca, Minister of Agriculture and Rural Development, told VOA.
To support agriculture and mitigate the effects of the crisis, the government is implementing several subsidy schemes for farmers. Last year out of about 63 thousand formalized farmers, half applied and received subsidies 25. 618 of them or about 80% of applicants. Officials say the support schemes have led to a 25% increase in farmers’ formalization for 2022 and almost a doubling of applications to benefit from these subsidies, compared to last year.
The authorities explain that the funds for agriculture around 34 million euros for 2022, are 3 times higher than a year ago, while the EU funds of 112 million euros, in support of agriculture through the Ipard program have increased by 56%. And yet experts think that subsidy schemes are not enough. A farmer in the Kavaja area who manages 20 hectares of land told VOA that the rise in the price of agricultural inputs and oil has doubled production costs.
“I need 10 thousand liters of oil per year to carry out works with agricultural machinery, the right services for the land. I benefit from the support scheme 1 thousand liters, how can you say help to this “- said for VOA Mersin Lika, farmer.
Misir Haxhiu, administrator of a joint agricultural company, also says that subsidies are low. This company has built a greenhouse with an area of 2.5 ha near Lushnja, supported by the Ipard program of the EU.
“We got the fuel, it is very little but it is good that it comes and so little. We are in the seedling subsidy phase, there is little money, but we welcome it. “Government policies in the field of agriculture should be more aggressive, not to give us alms, but to create opportunities for us in subsidies” – continued Misir Haxhiu, administrator of the United Agricultural Society “GRAMES”
Albania manages to produce, according to official statistics, over 100% of the country’s needs for vegetables and fruits, and even to export. Government policies are mostly focused on increasing the area of greenhouses. Greenhouse vegetable production, according to Instat statistics, has doubled compared to 10 years ago, but experts think these policies should be comprehensive.
“Investing in greenhouses is necessary but without leaving out other sectors. If we talk about the northern areas, Kukësi, Dibra, Tropoja, Malësia e Madhe, they do not have the right access to subsidize their production. Even in the southeast, fruit trees are another sector that needs to have greater support, in
subsidies, without forgetting the great tradition of Përmet, Tepelena, Saranda and Gjirokastra in the south of the country, in livestock breeding “- said to VOA Ilir Pilku, expert in the field of agriculture.
Livestock is a sector that in recent years has taken steps back. Only 10% of farms in the country have over 10 cows and over 100 sheep and goats. In the last 5 years, according to INSTAT data, the number of cow heads has decreased by 20%, and that of small sheep and goat heads by 18%. As a result, milk production has fallen by 7%. Experts say this is a huge loss for livestock, although officials say that again about 95% of milk needs are produced locally. Experts in the field of agriculture and livestock think that the change of the VAT refund scheme for farmers several times in a short time, as well as the introduction of 10% VAT from 0 that was for agricultural inputs, has put farmers in difficulty. Authorities say the funds will now go directly to the farmer, arguing that the schemes were changed due to abuses. Minushe Stafa, a farmer in the Kavaja area, tells VOA about the financial difficulties she is facing in providing food for her 28 cows on her farm.
“Every year the cost of food went to 2 million 800 thousand old lekë up to 3 million. Only a 4-month season has now cost me 3 million old lekë. I also have a lot of ongoing needs for trash. “Think how much it will cost me, to calculate everything in seeds, roots, silage, how much food comes to cows has a high price” – said for VOA Minushe Stafa, farmer in livestock.
Minister of Agriculture and Rural Development Frida Krifca said that the expansion of livestock farms remains one of the challenges for the institution she leads, and added that the processing industry in livestock is gaining importance. According to experts, this explains the doubling of milk imports in the last 10 years, according to data provided by the General Directorate of Customs.
“We need to expand the size of farms, 90% of them have less than 10 heads. It is economically difficult to have the right productivity to bring about sustainable economies. We have made an intervention, we have a support measure for farms over 10 cows and over 100 small heads, we subsidize them directly per head, precisely to increase the size of farms. To have the opportunity to buy both inputs and animal feed cheaper, because by joining they have the opportunity to set prices and be able to sell more expensive at processing points “- said Ms. Frida Krifca, Minister of Agriculture and Rural Development.
Officials say that as a result of the global crisis caused by the war in Ukraine, attention is being paid to increasing the production of wheat and cereals in the country, given that Albania provides about 70% of wheat imports from Russia and Ukraine. They say about 85% of cereal needs are met locally, but over the past 10 years their production has shrunk by 2.5% based on INSTAT data, while wheat has fallen by 21%. Albania today produces about 50% of the needs for wheat and according to officials its cultivation is conditioned by small areas of plots. But in addition to the problems carried, the agricultural sector is expected to face many difficulties this year due to the global crisis, the effects of which in weak economies such as Albania, come even stronger./ VOA
top channel
[ad_2]
Source link