Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans

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KOSOVO Agriculture & Food Industry Ministry of Agriculture, Forestry and Rural Development Talking Shop: The Ministry More Goods for Market The Ministry of Agriculture, Forestry and Rural Development is charged with overseeing the crucial transition from largely subsistence rural farming to a modern industrialised agricultural sector. The Ministry has long been working with UNMIK to achieve these goals and since independence has stepped up its efforts to attract foreign investment to the potentially lucrative sector. In parallel to such incentives, the Ministry is coordinating its efforts with the European Union to ensure that legislation and regulations governing the sector are harmonised with the EU’s standards. Idriz Vehapi, Minister of Agriculture, Forestry and Rural Development Here, ET talks to Idriz Vehapi, the Minister of Agriculture, Forestry and Rural Development, about the future of agriculture in newly independent Kosovo. From wine-making to land consolidation and employment generation, Mr. Vehapi believes that agriculture will play a vital and prominent role in the future economic success of his country. ET: How important is the agricultural sector for the economy of Kosovo I. Vehapi: The agriculture sector is a very important part of Kosovo’s economic development, not least because of the fact that more than 50% of the population of Kosovo lives in rural areas. Moreover, the majority of this population is young, so this means that agriculture can provide a firm basis for economic growth. However, we recognise that in the future other sectors will develop and that less people 46
KOSOVO Agriculture & Food Industry Talks About Producing will be involved in agriculture. For example, in the UK, a small percentage of the population is involved in agriculture now and a similar trend will also take place here in Kosovo. ET: Tell me a little bit about the development that has taken place in the sector since the declaration of independence in 2008 I. Vehapi: Before the declaration of independence there was the new election, in which the future Prime Minister made agriculture one of his campaign priorities. Subsequently, after the declaration of independence, we laid out our agricultural priorities for our donors. Within this program, the new prime minister has made agriculture an absolute priority which was stressed at the Donors Conference in Brussels. Of course, there are also private investors from Switzerland, The Netherlands, Germany, Italy, and other European countries interested in Kosovo’s agricultural sector. ET: What is the most important role that European investors can play in Kosovo’s agriculture sector I. Vehapi: We need them to bring technology and know-how but also the finance for new initiatives. On top of this, we are looking to develop commercial farms endowed with modern technology, higher yields and higher efficiency so that labour can be put to work in other sectors. Most importantly, Kosovo wants to make it as easy as possible for outside private investors to invest in the agriculture sector. We already have some commitments to invest in the agriculture sector, primarily from private investors, because agriculture is one of the top five sectors of Kosovo’s economy. ET: What challenges do you see ahead for the agriculture sector I. Vehapi: Firstly, the most important challenge is that the farms are very small and thus less competitive and profitable than those in neighbouring countries. Therefore, the main challenge is land consolidation which will create larger farms in the future. Beyond this, Kosovo needs more capacity in processing agricultural products. Also, food storage is an issue as currently farming is determined by the seasons. This is certainly one area where investors can get a high return on investment. ET: How do you plan to confront these challenges I. Vehapi: First of all, these challenges are certainly a priority. Bigger farms are necessary to compete and achieve the necessary productivity. To this end, we always advise our farmers to unite in associations and cooperatives to be stronger. ET: How do European investors look at the investment opportunities with regard to this consolidation I. Vehapi: For land consolidation, one of the main investors was the World Bank and EU which is also investing in the irrigation system. Since the consolidation and irrigation are our priorities, we increased our budget regarding these two areas. The investments in these sectors will create opportunities for farms to be more competitive which will attract foreign investors. We have a target of 70,000 hectares and so far 12,000 have been recovered. ET: Why should Europeans invest in Kosovo rather than neighbouring countries I. Vehapi: My opinion is that investors should look at Kosovo because we have a young population that wants to work and for less money than in other EU countries. So it is a low-wage country compared to neighbouring countries. However, at the same time, we have an educated workforce, a significant percentage of which has studied and lived abroad. Most of them would like to work here, which is a great opportunity for foreign companies wanting to set up business here. 47
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Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans

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