Programme description

Title: Supporting the food industry
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Kosovo
Lead executing agency: Ministry of Agriculture, Forestry and Rural Development
Overall term: January 2005 to December 2010

Context

About two-thirds of Kosovo’s young population live in rural areas. The greatest potential for these areas lies in the revival of the food industry. However, the agricultural associations and advocacy groups do not as yet have the capacity to press ahead with the development of the sector.  There is a lack of well-established trademarks and qualified services: for example, inter-company cooperation in procurement, sales and marketing as well as quality control and laboratories. These organisational, institutional and technical shortcomings, along with unfavourable framework conditions, prevent Kosovo’s food industry from realising its potential.

It is difficult for manufacturers to hold their own in the European price competition. As a result, very little of the food consumed in Kosovo is produced locally. The absence of food safety standards and other weaknesses in domestic marketing lead local merchants and consumers to prefer imported products.

Objective

Kosovo’s food industry is well-developed and integrated into the South-East European economic zone. The extent to which the population is self-sufficient has increased. Market links have been established and unemployment is accordingly reduced.

Approach

The project’s methodological approach is concentrated on value-added chains in various product groups.

The promotional measures centre on:

• promotion of agricultural enterprises in the first and second processing stages  
• establishment of production and marketing cooperatives
• promotion of exports, participation in trade fairs and development of quality  standards
• advising ministries and food industry service providers

The project supports introduction of international standards in business enterprises, leading to better product quality and productivity.

Results achieved so far

Companies were trained through individual consulting to make the maximum use of growth and earnings potential. Visits to various trade fairs in Europe led to commercial cooperation agreements. 

Capacity at the Ministry of Agriculture, Forestry and Rural Development was developed through training and consulting in Kosovo and abroad. Information trips to neighbouring countries and the European Union promoted sharing of expertise between ministries and created greater awareness of the need to introduce European standards.

The implementing organisations initiated the formation of groups and associations which actively participate in putting an integrated rural development strategy into practice.