Evaluation of the USAID-Kosovo SME and Agriculture - Economic ...

Development Associates, Inc.THE MAJOR CONSTRAINTS (annual and seasonal variations in precipitation of course canalways be a constraint on agricultural production).The 26.5% customs + V.A.T. + 1 to 5% transit taxes makes for one of the highest animalfeed costs in the world.It is very difficult to obtain credit for agribusiness investments.The laborious process of obtaining acceptance to the Ministry of Agriculture’s NationalSeed List on a timely basis in order to effect the importation of high quality seed byplanting time seriously hampers the introduction of new varieties.Cheap imports of outdated eggs, spent hens, and chicken legs from neighboring countrieswith strong farm subsidy programs puts Kosovo producers at serious cost disadvantage.There is a shortage of low cost processing capacity for oil seeds for long-termdevelopment.Lack of confidence in the Government’s capacity to promulgate policies and regulationsthat promote local Kosovo agribusinesses and farm production quells the incentive offarmers to try new technologies and investments. The border tax policies that placeKosovo farmers at a competitive disadvantage with farmers in neighboring countries isthe policy that the farmers object to the most.IFDC has coordinated and worked well with associations such as KODAA, SHPUK, and AKA,and with other NGOs such as CARE. The IFDC staff has continually collaborated with the KBSstaff. The majority of the KBS cooperation has come with the training of poultry processors andfeed millers and on food policy issues such as quality control standards.IMPACTIFDC/KFPP has had measured success in achieving the desired results set out in the sub-grantagreement to increase agricultural production and farm incomes in certain locations:Working closely with input suppliers, they were able to increase the usage of fertilizer by1500 MT, quality seed by 200 MT, and farm chemicals (insecticides, herbicides andfungicides) by 11,000 liters. These are not spectacular numbers but they are good start oncreating a program. Seeding rates and rates of application of fertilizers and pesticidesvary widely throughout the country and from farm to farm, based on the crop, the variety,the soil fertility, whether it is irrigated or rainfed and other factors. Averages are equallymeaningless. The increase in input sales boosted profits for the suppliers as well, alongwith an increase in additional labor.Linked to the input suppliers success, feed grain production increased within the groupsof farmers resulting in 4,000 ha. being sown to quality feed grains, using recommendedinputs. This increased the aggregate marketable production of quality feed grain: maizeby 15,750 MT, soybeans-1,050MT and sunflower seed by 1,050 MT. The details of theseinitial efforts are spelled out in the projects progress reports and will not be repeated here.It is clear, however, the initial results of this program caused a direct increase on incomefor the participating farmers.Evaluation of the USAID/Kosovo SME 95 May 2004and Agriculture/Agribusiness ProgramsVolume I