Albania: Albania Agriculture Profile

Albania Agriculture Profile

Though its relative importance has declined, farming is still a mainstay of the economy. Agricultural production has greatly increased in recent decades; however, crop yields are still relatively low and production insufficient to meet amount the needs of the country. Mechanization and new farmland, which has been put into use by reclamation projects along the coast, account for much of the increase in production.

Grains, mainly wheat and corn, are the chief crops. As well significant are vegetables, especially potatoes; sugar beets; tobacco; and grapes, olives, oranges, and other fruit.

About half of the agricultural land is used for pasturing livestock. Sheep and goats, which are able to graze far up the mountain slopes, are the majority numerous livestock. Poultry is as well widely raised.

Albania - Agriculture and Enlargement

Albania is a parliamentary republic with a people of 3.2 million. The Constitution in force was adopted by referendum in 1998.
The Albania's GDP has been increasing at a relatively strong and stable rate (near 6 % per year in 2003-2008), with a low and stable inflation rate of around 2.5 %. The EU is the major trading partner (in 2009 – 79% of exports and 64% of imports).
Albania signed the Stabilization and Association Agreement with the EU in 2006. It entered into force in April 2009.

With 58% of total labour and 19 % of GDP the agricultural sector continues to be of the majority significant sectors of the Albanian economy. About 56 % of the people live in rural areas, where agriculture is the major activity.

EU agricultural trade with Albania

The Interim Agreement and the SAA put into contractual provisions the preferences granted under the Autonomous Trade Measures applied since 2000, by which most Albanian agricultural products had
duty and quota free access to the EU. Exceptions were: live bovine animals and meat of bovine animals, sugar and wine (for sugar and wine tariff quotas were agreed). Regarding imports from the EU Albania agreed on:

- Elimination of the customs tariffs for the products defined as non-sensitive
- Gradual liberalization for the mid sensitive products in the transition period to 2010
- Constant customs protection for the highly sensitive products, and duty free quotas for common wheat and wine.
In spite of the EU preferences Albania has a significant and increasing trade deficit in agricultural products with the EU.

In 2009, the product groups accounting for the major share of agricultural and food imports (in price) of Albania are Live animals, Fruits and nuts and Fats and oils.
Out of Albania’s total agricultural and food exports, Raw hides and skins, Other animal products and Oilseeds and oleaginous fruits are the chapters with the major price.
The country remains a net importer of agricultural and food products.

Albania-EU: trade performance of agricultural products