Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans

KOSOVO
Agriculture & Food Industry
The Lie of the Land: The Government
Is Overseeing the Commercialisation
of the Country’s Farms
Agriculture has always played a
prominent role in Kosovo’s economy.
With more than half a million
hectares of cultivable land and 60%
of the population living in rural
areas, the country is well set up for
further investment in this crucial
sector. With the ongoing privatisation
process, Kosovo’s larger farms,
under the stewardship of the Kosovo
Trust Agency, present particularly
good opportunities for investment.
The government has laid out
a detailed strategy to further
stimulate agricultural development
in the country. After assessing
the topographical and climate
conditions in the country, the
Ministry of Agriculture, Forestry and
Rural Development will be targeting
high value crops such as fruit and
vegetables. The government is
also keen to make the transition
from a largely subsistence base
to a commercial base with the
development of the land market
to increase the size of farms.
Moreover, the ministry hopes
to develop knowledge transfer
that will raise the productivity of
the land. In parallel with these
practical measures, the country will
be looking to bring its legal and
regulatory framework in line with
the highest EU standards.
With over 250,000 hectares of
meadow and grassland, Kosovo is
well placed to expand its agricultural
base. Currently, grains such
as wheat and maize account for the
largest share of the sector in terms of
land use. However, the government
is keen to re-align the focus to fruit
and vegetables which presently
account for just over 38,000 hectares
of arable land.
Kosovo’s viticulture industry is well
established. The public sector has
a wine processing capacity of 112
million litres while the private sector
processes approximately 30,000
litres. The government is also looking
to revitalise its livestock production
industry so that the country can
become increasingly self-sufficient
in meat and dairy production.
For all segments of the agricultural
sector, the government has provided
incentives to bring further investment
to the country. Most agricultural
inputs and capital goods are tariff free
which is supported by VAT exemption
for a wide range of agricultural
inputs. The government hopes that
this will increase production dramatically
allowing the country to become
a significant agricultural exporter.
This is no pipe dream. Kosovo has
a series of competitive advantages
in the agricultural field including
high yields and cheap labour. With
local production currently only
covering 30% of domestic demand,
the potential for growth is sizable.
The stimulation of the sector should
allow the government to both bring
down its reliance on imports as well
as create a liberal environment to
become a major agricultural exporter
to the EU.
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