MEAT Sector Analyse
MEAT Sector Analyse
MEAT Sector Analyse
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SMEI II Inception Report page 1<br />
THE EUROPEAN UNION’S IPA 2008 PROGRAMME<br />
FOR THE REPUBLIC OF ALBANIA<br />
“Capacity Building for Implementing the Rural<br />
Development Strategy”<br />
Delegation Agreement No: 2009/212-470<br />
Analysis of Meat <strong>Sector</strong><br />
A project funded by<br />
the European Union and the Federal<br />
Government of Germany<br />
April 2010<br />
This project is funded by<br />
The European Union and The Federal Government of Germany<br />
A project implemented by<br />
Deutsche Gesellschaft für Technische<br />
Zusammenarbeit (GTZ) GmbH
ALBANIA<br />
“Capacity Building for Implementing<br />
the Rural Development Strategy”<br />
Support to the Albanian Ministry of Agriculture,<br />
Food and Consumer Protection<br />
Meat <strong>Sector</strong> Study<br />
Dr.Martin Mautner Markhof / office@agroservice.com<br />
Prof. Dr.Bahri Musabelliu<br />
Alban Zusi<br />
April 2010<br />
Meat <strong>Sector</strong> Study, page 1<br />
Meat <strong>Sector</strong> Study
CONTENT<br />
ABBREVIATIONS<br />
Meat <strong>Sector</strong> Study<br />
0) EXECUTIVE SUMMARY………………………………………………………………………..7<br />
1) BACKGROUND AND KEY FIGURES………………………………………………………..11<br />
2) PRODUCER/FARMERS……………………………………………………………………….14<br />
Cattle……………………………………………………………………………………………..14<br />
Sheep and goats………………………………………………………………………………..16<br />
Pigs………………………………………………………………………………………………19<br />
Poultry……………………………………………………………………………………………20<br />
Animal feeding…………………………………………………………………………………..21<br />
Animal feed producers……………………………………………………………………….22<br />
3) PROCESSING INDUSTRY…………………………………………………………………....23<br />
Slaughterhouses………………………………………………………………………………..23<br />
Keputa………………………………………………………………………………………….25<br />
Meat processing companies…………………………………………………………………..26<br />
EHW GmbH……………………………………………………………………………………27<br />
KMY…………………………………………………………………………………………….27<br />
Meat Master…………………………………………………………………………………...28<br />
Darb Univers Frigo Darb………………………………………………………………….....28<br />
TONA Co………………………………………………………………….............................28<br />
DEKON FRIGO…………………………………………………………………...................28<br />
EL FRIGO 2……………………………………………………………………………………28<br />
FRIGO ALBA………………………………………………………………….......................29<br />
FIX-PRO shpk………………………………………………………………………………...29<br />
HAKO…………………………………………………………………………………………..29<br />
ALBIDEA ………………………………………………………………………………………29<br />
ROZAFA KACI shpk………………………………………………………………………….30<br />
I.N.C.A Nord Fish…………………………………………………………………................30<br />
4) GOVERNMENT POLICY FOR THE SECTOR AND INSTITUTIONAL ISSUES………...31<br />
Cattle………………………………………………………………………………………..….31<br />
Sheep……………………………………………………………………………………….….31<br />
Land property and reform……………………………………………………………...…….32<br />
Mountain areas………………………………………………………………………………..33<br />
Value Added Tax……………………………………………………………………………...34<br />
5) MARKET AND TRADE………………………………………………………………………...34<br />
Availability of products……………………………………………………………………...….34<br />
Supply chain…………………………………………………………………………………….34<br />
Consumption pattern…………………………………………………………………….……..35<br />
Legal framework for trade …………………………………………………………………….36<br />
Agro-food trade balance……………………………………………………………………….37<br />
6) LEVEL OF ATTAINMENT OF RELEVANT EU STANDARDS …………………………...39<br />
Occupational health and safety………………………………………………………….……39<br />
Environment……………………………………………………………………………………..39<br />
Food safety ……………………………………………………………………………………..40<br />
Animal health and welfare……………………………………………………………………..42<br />
Competent authorities………………………………………………………………………….44<br />
National Strategy for Development and Integration (NSDI) 2007-2013………………….45<br />
Meat <strong>Sector</strong> Study, page 2
Meat <strong>Sector</strong> Study<br />
Agriculture and fisheries……………………………………………………………………….46<br />
Farm level……………………………………………………………………………………….46<br />
Processing level………………………………………………………………………………...47<br />
7) PAST TRENDS AND FUTURE DEVELOPMENTS IN TERMS OF INVESTMENTS…...47<br />
Past trends……………………………………………………………………………………....47<br />
Actual situation………………………………………………………………………………….47<br />
Future developments…………………………………………………………………………..48<br />
8) IDENTIFICATION OF POTENTIAL AND NEEDS FOR THE SECTOR…………...……..49<br />
9) IDENTIFICATION OF TRAINING NEEDS FOR THE SECTOR…………………………..62<br />
Training needs for farmers…………………………………………………………………….63<br />
Training needs for slaughterhouse’s staff……………………………………………………63<br />
Training needs for meat processor’s staff……………………………………………………63<br />
Training needs for the public administration…………………………………………………63<br />
10) OUTCOME………………………………………………………………………………………64<br />
Overview of the meat sector ………………………………………………………………….64<br />
Potentials and obstacles……………………………………………………………………….65<br />
Final recommendations in order to target the specific investments ……………………...66<br />
LITERATURE AND WEBSITES CONSIDERED…………………………………………………69<br />
Map 1: Land use in Albania<br />
Map 2: Administration in Albania<br />
Table 1: Sub-sector’s contribution to the agricultural added value (in Lek and %)<br />
Table 2: Output of animal products<br />
Table 3: Animals in Albania (heads in 000)<br />
Table 4: Meat production 2000 – 2009<br />
Table 5: Average live weight of calves when slaughtered<br />
Table 6: Revenues per sheep and year; meat vs. milk<br />
Table 7: Break - even points for milk and meat<br />
Table 8: Poultry meat farm<br />
Table 9: Investment of the agro-industry in Lek million<br />
Table 10: Sausage and ham production of the agro-industry<br />
Table 11: Average size of agricultural enterprises and cooperatives<br />
Table 12: Livestock production<br />
Table 13: Meat consumption<br />
Table 14: Agro-food import and export<br />
Table 15: Import of agricultural and food products by quantity and value<br />
Table 16: Export of agricultural and food products by quantity and value<br />
Table 17: Investments in Albanian agroindustry<br />
Table 18: Animals in Albania (heads in 000)<br />
Meat <strong>Sector</strong> Study, page 3
Map 1: Land use in Albania<br />
Meat <strong>Sector</strong> Study<br />
(Source: SHUNDI, Andrea Prof.: Country Pasture/Forage Resource Profiles Albania; 2006)<br />
Meat <strong>Sector</strong> Study, page 4
Map 2: Administration in Albania<br />
Meat <strong>Sector</strong> Study, page 5<br />
Meat <strong>Sector</strong> Study<br />
Albania is divided into 12 administrative divisions called counties or in Albanian qark/qarku',<br />
often also prefekturë/prefektura; furthermore there are 65 municipalities and 308 communes.<br />
No Regions Area km²<br />
1 Berat 1802<br />
2 Diber 2507<br />
3 Durres 827<br />
4 Elbasan 3278<br />
5 Fier 1887<br />
6 Gjirokaster 2883<br />
7 Korce 3711<br />
8 Kukes 2373<br />
9 Lezhe 1581<br />
10 Shkoder 3562<br />
11 Tirana 1586<br />
12 Vlora 2706<br />
ALBANIA 28703
ABBREVIATIONS<br />
Meat <strong>Sector</strong> Study<br />
ADAMA Albanian Dairy and Meat Association<br />
ATTC Agricultural Technology Transfer Centres<br />
BSE Bovine Spongiform Encephalopathy, a cattle disease<br />
CAP Common Agricultural Policy<br />
CARDS Community Assistance for Reconstruction, Development and Stabilisation<br />
CEFTA Central European Free Trade Agreement<br />
CESVI Cooperazione e Sviluppo, an Italian NGO<br />
EC European Commission<br />
FVO Food and Veterinary Office (Ireland)<br />
GAP Good Agricultural Practice<br />
GDP Gross Domestic Product<br />
GOA Government of Albania<br />
GTZ German Agency for Technical Cooperation<br />
HACCP Hazard Analysis and Critical Control Point<br />
IPA Instrument for Pre-Accession Assistance<br />
IPARD Instrument for Pre-Accession Assistance on Rural Development<br />
ISO International Organisation for Standardisation<br />
Lek Albanian Currency<br />
MAFCP Ministry of Agriculture, Food and Consumer Protection<br />
NFA National Food Authority<br />
NGO Non Governmental Organisation<br />
NSDI National Strategy for Development and Integration<br />
OIE World Organisation for Animal Health<br />
SLI State Labour Inspectorate<br />
SR Small Ruminants<br />
SWOT Strengths Weaknesses Opportunities and Threats<br />
VAT Value Added Tax<br />
WTO World Trade Organisation<br />
Exchange rate (1 st April 2010)<br />
Euro : Lek = 1 : 139,344000<br />
Source: http://ec.europa.eu/budget/inforeuro/index.cfm?fuseaction=currency_historique&<br />
currency= 6&Language=en<br />
Meat <strong>Sector</strong> Study, page 6
O. Executive Summary<br />
Meat <strong>Sector</strong> Study<br />
This meat sector study was prepared during January to April 2010 within the framework of<br />
the EU / GTZ project „Capacity Building for Implementing the Rural Development Strategy“ to<br />
provide a quantitative and qualitative description of the meat sector in Albania; starting from<br />
livestock keepers to slaughterhouses and meat processors. In addition a SWOT analysis<br />
accomplished the potential and weak points of the meat sector and summarized all the<br />
findings. This was necessary to have a sound base for upcoming decisions within the<br />
Ministry of Agriculture, Food and Consumer Protection (MAFCP), especially related to the<br />
envisaged Instrument for Pre-Accession Assistance on Rural Development (IPARD) support<br />
scheme. This scheme intends to assist financially investment in agriculture holdings, in<br />
processing and marketing of the agricultural products. Other recommendations which will not<br />
find IPARD support – as they do not fit the criteria of the two mentioned measures – have<br />
been made and eventually the Government of Albania (GOA) will find financing means<br />
trough national support programmes.<br />
The objective of this meat sector analysis was to give a quantitative and qualitative<br />
description of the Albanian meat sector, addressing both production and processing.<br />
The following methodology and approach were applied to write this study:<br />
a) Desk research;<br />
b) Intensive expert talks with MAFCP staff but also with the Agricultural Technology<br />
Transfer Centres (ATTC) and other institutions;<br />
c) Visit of more than 15 farms (see also ANNEX 1);<br />
d) Individual meeting with leading representatives of the meat processing industry<br />
(including visits of several processing plants and slaughterhouses), representatives of<br />
associations, traders and importers (see also ANNEX 1);<br />
e) More than 10 Focus Group meetings in all major geographical areas (political regions)<br />
to get immediate insight into the husbandry sector and to collect additional baseline<br />
data;<br />
f) Discussions with other internationally funded projects in this sector.<br />
In order to make the study transparent the focus was on cattle, sheep, goats, pigs and<br />
chicken only; other animal origin sectors (horse, buffalo, ostrich etc) have not been included.<br />
SWOT analyses have been made for each sub-group (farmers, slaughterhouses and meat<br />
processors) and the most important weaknesses in the sector are:<br />
• Unfavourable entity structures in production as most animals are kept by subsistence<br />
farmers on holdings with 1.2 – 1.8 ha;<br />
• High level of land fragmentation;<br />
• High fodder costs as almost all components have to be imported;<br />
• Low competitiveness and efficiency of production;<br />
• Unfavourable business environment for slaughterhouses which therefore are running at<br />
low capacity or not at all;<br />
• Unfavourable entity structures in processing especially for small meat processing<br />
plants slaughterhouses (the 5 - 10 big players are doing fine);<br />
• Insufficient attainment of national and/or EU standards at farm, slaughterhouse and<br />
small processing plant level;<br />
• Insufficient knowledge on modern production techniques / technologies and standards<br />
at farm and slaughterhouse level;<br />
• Insufficient professional advisory service.<br />
The outcome of the study shows very mixed results for the sub-groups. The results are<br />
astonishing.<br />
Meat <strong>Sector</strong> Study, page 7
Meat <strong>Sector</strong> Study<br />
The livestock husbandry deals on one side with ruminants like cows, sheep and goats and<br />
on the other side with pigs and poultry.<br />
The ruminants are taking advantage of the Albanian pastures which are plentiful available.<br />
However the number of all ruminants heads is going continuously down due to:<br />
• Limited farm size and dominance of subsistence farming with livestock farmers not able<br />
to invest;<br />
• As meat production with ruminants requires long production cycle we face a slow return<br />
on investment; (situation is better with dairy farmers as they get regular cash revenues<br />
by selling milk);<br />
• Poor premises and outdated technology, for example stables without windows and too<br />
little and old tractors;<br />
• Poor infrastructure; for example missing water holes in remote areas;<br />
• Poor marketing channels and no uniform offer regarding qualities and quantities;<br />
• Very limited demand from the slaughterhouses and meat processors;<br />
• Migration to urban areas.<br />
On the other side are the pig and poultry producers and the animal head counts are<br />
increasing continuously. Also here we have two different groups with quite different<br />
performances. There are the subsistence farmers again who keep a dozen chickens in the<br />
backyard for self-consumption and additionally often 2 - 3 piglets – also for self consumption.<br />
The more commercial pig farmers are struggling with the following handicaps:<br />
• No specialisation of pig farms because piglets of good quality and sufficient quantities<br />
(uniform groups) cannot be purchased on weekly markets so that farmers have to get<br />
involved in the whole process: mother sows – piglet production – fattening;<br />
• Consequently piglets have been imported (from Serbia and other countries) and as it<br />
was more profitable importers brought in 80 – 90 kg pigs almost ready for slaughtering;<br />
• Main reason why imports of ready pigs are cheaper is that fodder, if not produced on<br />
the farm, is expensive;<br />
• Poor marketing channels and no uniform offer of fattened pigs regarding qualities and<br />
quantities.<br />
The situation in the chicken sector looks much better as here are several investors active<br />
who have the funds for this capital-intensive business with fast returns on investments. Often<br />
these investors are already active in agribusiness for example with feed production<br />
companies or slaughterhouses. There is a trend to establish a complete integrated chain of<br />
operations, from chicken farms to feed mill and retail outlets. These new chicken farms of<br />
agribusiness type can therefore also use cheaper fodder as it is produced often in own feed<br />
mills.<br />
Coming to the processors we also see quite different performances; slaughterhouses<br />
underperform and meat processing companies do well.<br />
In Albania there are many slaughterhouses not in operation (see also UNDP Albania; The<br />
Agribusiness <strong>Sector</strong> in Albania, Inward Investment Opportunities; 05) and the active around<br />
20 slaughterhouses do daily slaughtering of 1 – 2 cattle and / or few pigs or small ruminants.<br />
All slaughterhouses are working far below their capacities because nobody forces the traders<br />
and butchers to slaughter there; this will be one of the main activities of the upcoming<br />
National Food Authority (NFA). Therefore slaughterhouses face no or limited raw material<br />
supply. Usually the facilities are outdated and in most cases they do not even comply with<br />
the Albanian law. Consequently EU standards on hygiene, public authority, traceability and<br />
HACCP are not fulfilled and liquid and solid waste material is just dumped into landfills or<br />
Meat <strong>Sector</strong> Study, page 8
Meat <strong>Sector</strong> Study<br />
washed away by the nearby river. The condition of the existing premises is poor so that most<br />
likely just new Greenfield investments in slaughterhouses will improve the situation.<br />
In contrast to the slaughterhouse sector the Albanian top meat processing companies like<br />
EHW, KMY, TONA and others are doing fine. The 10 biggest processing companies cover<br />
around 80 % of the market share, are financially strong and consider further investments with<br />
and without upcoming IPARD-support.<br />
Considering the whole meat sector under IPARD support schemes, there is definitely a need<br />
for financial support. In livestock farming the best potential is still within cattle and small<br />
ruminants as these livestock farms could make use of the natural advantages (i.e. pastures)<br />
which Albania has available. Less needs for financial support is required in the pig production<br />
and almost none in chicken farming.<br />
Also the processing sector has different stakeholders. Slaughterhouses will be needed in the<br />
future and as refurbishment is too expensive new slaughterhouses will have to be build.<br />
There is enough private interest in case that the competent authorities will start channelling<br />
all animals through slaughterhouses within the next months. Nevertheless IPARD funding will<br />
be needed.<br />
For the meat processing companies the authors see fewer necessities to support as the big<br />
players are doing fine and have a quite high level of standards already fulfilled. They are<br />
keen to export and need urgently improvements in the veterinary and food inspection system.<br />
Finally it has to be stressed out that Albania has no rendering plant and therefore all waste<br />
material from farms to slaughterhouses and meat processors are dumped into landfills. It is<br />
highly recommended to encourage the establishment of such a plant; this could be done also<br />
by the private sector especially of IPARD funding will be available and the NFA enforce<br />
relevant laws.<br />
Having covered the production side the study had also a look on the governmental<br />
stakeholders such as MAFCP, ATTC, NFA and others. These governmental bodies will need<br />
specific capacity building programmes to better understand the commercial side of the meat<br />
sector, IPRAD requirements regarding farmers and processors and their upcoming<br />
investment proposals and many more.<br />
For this meat sector study official data from MAFCP have been used wherever possible.<br />
Taking in consideration the overall situation in the sector and the results of the SWOT -<br />
analyses future interventions in the sector should be oriented mainly to:<br />
• Improve entity structure in production and processing and increase the competitiveness<br />
of the sector;<br />
• Increase overall competitiveness through investments for application of modern<br />
production techniques and technologies;<br />
• Improve status of attainment of national and EU standards on occupational health and<br />
safety, environmental issues, food and feed safety, animal health, animal welfare and<br />
more; these standards are closely related with the EU accession requirements;<br />
• Improve vocational training;<br />
• Improve performance and offer of service providers.<br />
Investment in Agricultural Holdings<br />
The following investments should be supported under IPARD:<br />
• Construction/extension/modernisation of animal shelters;<br />
• Construction and/or renovation of storage buildings and machine sheds;<br />
Meat <strong>Sector</strong> Study, page 9
Meat <strong>Sector</strong> Study<br />
• Silage handling equipment and machinery, on-farm animal feed preparation, handling,<br />
distribution systems and storage;<br />
• Automatic feeding & drinking equipment, watering, heating and ventilation, automating<br />
environmental control systems including energy-saving equipments authorised and<br />
defined under Directive 2007/43/EC;<br />
• Investments for manure handling, storage and treatment facilities;<br />
• Animal handling equipment and facilities (e.g. weighing, disinfection);<br />
• Transportation equipment compatible with Community animal welfare standards;<br />
• Watering systems;<br />
• Fences and gates;<br />
• Special equipment for weighing, health control;<br />
• Biogas facilities;<br />
• Purchase of specialized technological equipment including IT and software (herd<br />
management, animal registry, general farm management).<br />
The ranking of investment priorities according to the different types of animals should be as<br />
follows: sheep – cattle – goats – pigs – poultry.<br />
Investment in Processing and Marketing of the Agricultural Products<br />
The following investments should be supported under IPARD:<br />
• Construction or renovation of slaughterhouses;<br />
• Renovation of meat processing enterprises;<br />
• Equipment for improvement of hygiene and product quality, in full compliance with<br />
Community standards;<br />
• Investments for establishment of food safety systems (HACCP, GMP and GHP)<br />
including laboratories and equipment to improve the control of the product quality and<br />
hygiene;<br />
• Certification costs;<br />
• Improvement of environmental protection; equipment and facilities for reprocessing of<br />
intermediate products and processable wastes; treatment and elimination of wastes:<br />
waste water works in slaughterhouses and fat catcher facilities for meat processing<br />
establishments;<br />
• Investment for slaughtering animals in conditions compatible with animal welfare;<br />
• Purchase of equipment for packaging;<br />
• Cold storage equipment, purchasing refrigerated transport means of carcass and meat<br />
products;<br />
• IT hardware and software for product and process management, Software & tracking<br />
system to implement traceability of carcass and meat inside the processing<br />
establishment.<br />
The ranking of investment priorities in the processing sector should be as follows:<br />
slaughterhouses - (rendering plants) – meat processors.<br />
Beside IPARD funding the agricultural sector would need substantially more support from the<br />
GOA. The current allocation of the budget for the sector agriculture and rural development<br />
makes just 2.2 % while the agricultural sector still produces more than 15 % of the GDP.<br />
Despite progress in many sectors the agriculture and rural development sector is and will be<br />
in the near future the backbone of all economic development in Albania.<br />
Meat <strong>Sector</strong> Study, page 10
I. Background and Key Figures<br />
Meat <strong>Sector</strong> Study<br />
Albania has a population of more than 3 million inhabitants, and eventually the same number<br />
of Albanians who work and live abroad. The northern, north-eastern, south-eastern and<br />
central areas are characterized by hilly-mountainous terrain; whereas the north southern /<br />
costal area along the Adriatic and Ionian coast is lowland. It has a total land area of 28,750<br />
km² (equivalent to 2,875,000 ha); 696,000 ha are classified as agricultural land and<br />
2,179,000 ha as forestry, pasture and other fond. (Source: MAFCP; Statistical Yearbook<br />
2009) Out of the last group, around 423,000 ha are considered pastures.<br />
After 46 years of centrally planned economy, Albania’s agriculture has changed dramatically<br />
since the early 1990s. Before transition there have been 550 large state farms and<br />
cooperatives in Albania. After the collapse of the system and after the land distribution, which<br />
did not took place in the north, there have been about 467,000 very small family farms<br />
whereas today just 357,027 farm households are left with an average 1.5 ha - divided into 4<br />
parcels. On each farm live 4.8 people so that in total 1.7 million people are involved in<br />
farming activities; about 50 % of the population lives in rural areas.<br />
Despite being fragmented, this small farming agriculture has initially been vital to the<br />
alleviation of poverty in rural areas and provision to the urban markets with some elementary<br />
and indispensable foodstuff such as vegetables, meat and other dairy stuff. With 59 % of<br />
total labour and 21 % of GDP the agricultural sector, including also forestry, hunting and<br />
fishery, continues to be an important sector of the Albanian economy. Nevertheless the<br />
contribution to the GDP was continuously falling since 2005 (20.6 %), 2006 (19.4 %), 2007<br />
(18.9 %) and 2008 (16.5 %). (Source: INSTAT)<br />
Around 1.7 million people live on farms but the trend shows that many young people do not<br />
take over the subsistence farms of their parents or give up their farm activities and move to<br />
bigger towns; in these cases animals are sold or slaughtered but the land is kept as land<br />
property offers high financial security; sometimes the land is rented out to neighbours but<br />
often left alone without any use.<br />
Albanian farming is predominantly at subsistence level and most of the agricultural product is<br />
destined to home consumption. As a result only 18 % of crop production, 30 % of livestock<br />
products and a few percentages of off-farm processed products reach the market. Household<br />
income range differs between families living in mountain areas (poor) to those in the plains<br />
(less poor).<br />
As the centrally planned economy collapsed, the market-driven economy forced farmers over<br />
night to change their way of farming. Major shifts in agricultural production patterns have<br />
taken place with a significant increase of animal production that compensated the respective<br />
drop in crop and fruit production. Current production systems have mainly evolved as<br />
adjustment to the new situation with very small and fragmented farms which have to face<br />
other major constraints such as a poor physical infrastructure, lacking state or privately<br />
operated services, lack of food processing industries and an imperfect market.<br />
The agricultural sector’s contribution to the GDP can be allocated to the following subsectors.<br />
Table 1: Sub-sector’s contribution to the agricultural added value (in Lek and %)<br />
Nr. Description 2000 2006 2007 2008 2009<br />
Total mio LEK 126116 147306 149802 155669 159080<br />
Meat <strong>Sector</strong> Study, page 11
1 Livestock 71460 86633 90101 86882 87727<br />
2 Field crop 42483 42226 40482 45741 47352<br />
3 Fruit trees 12173 18446 19219 23046 24001<br />
Nr. % 2000 2006 2007 2008 2009<br />
1 Livestock 57% 59% 60% 56% 55%<br />
2 Field crop 34% 29% 27% 29% 30%<br />
3 Fruit trees 10% 13% 13% 15% 15%<br />
(Source: MAFCP; Statistical Yearbook 2009)<br />
Meat <strong>Sector</strong> Study<br />
Agricultural production and incomes contributes to the GDP; the major sub-group within<br />
agriculture is the livestock production with about 55 % of the total production of the sector,<br />
followed by field crops with 30 % and fruit production with 15 %.<br />
Over the last years the overall output of crops increased whereas the output of livestock<br />
(animal products) decreased.<br />
Table 2: Output of animal products<br />
Output in % 2007 2008<br />
Cattle 26 21<br />
Pigs 5 5<br />
Sheep and goats 15 13<br />
Poultry 4 5<br />
Milk 38 42<br />
Eggs 10 11<br />
Other animal products 2 3<br />
Total 100 100<br />
(Source: INSTAT)<br />
In the above table it can be seen that milk became more important but in total the meat<br />
sector is slightly ahead; within the different products cattle decreased the most, followed by<br />
sheep and goats whereas poultry increased and pigs remained stable.<br />
Since 1990 the total numbers for cattle, goats and chicken decreased whereas the<br />
population of sheep and pigs grew slightly. In the period 2000 – 2009 cattle, sheep and goats<br />
have been declining whereas pigs and chicken have been growing.<br />
Table 3: Animals in Albania (heads in 000)<br />
Livestock 2000 2005 2006 2007 2008 2009<br />
Cattle 728 655 634 577 541 494<br />
Cows 448 430 420 396 360 353<br />
Sheep & goats 3045 2701 2770 2729 2620 2540<br />
Sheep 1939 1760 1830 1853 1800 1768<br />
Milked sheep 1448 1312 1426 1378 1321 1309<br />
Meat <strong>Sector</strong> Study, page 12
Goats 1104 941 940 876 820 772<br />
Milked goats 800 701 700 620 610 574<br />
Pigs 103 147 152 147 161 160<br />
Sow 10 13 13 16 14 13<br />
Poultry 5291 6432 6200 7135 8100 8313<br />
Chicken 4087 4671 4572 4712 5000 5138<br />
(Source: MAFCP; Statistical Yearbook 2009)<br />
Table 4: Meat production 2000 – 2009<br />
000/Ton<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
Prodhimi i mishit<br />
Meat production<br />
2000 2005 2006 2007 2008 2009<br />
Gjedhi Cattle Te imtash Sheep$goat Derri Pig Shpendi Poutry<br />
(Source: MAFCP; Statistical Yearbook 2009)<br />
Meat <strong>Sector</strong> Study<br />
The meat consumption in Albania is already at 40 kg per capita but still far away from EU<br />
levels which are more than twice as high.<br />
Beside the farms there are in the value chain also the slaughtering and processing<br />
companies. With the exception of a few modern chicken slaughtering facilities there are<br />
almost no operating slaughterhouses in the country. The consequence or the reason for this<br />
fact is that animals are slaughtered generally on the farm or in some cases in primitive<br />
slaughter rooms on farms or in butcher shops.<br />
A different picture can be seen in the meat processing sector; there are several companies<br />
active and the bigger companies are very close to EU standards.<br />
As the local meat is limited and expensive, processing companies are importing 95 % of their<br />
needed raw meat mainly from Brazil and Canada, usually as deep frozen meat.<br />
In other words there is no link between Albanian livestock farmers and Albanian meat<br />
processing industry. More details in the next chapters.<br />
Meat <strong>Sector</strong> Study, page 13
II. Producers/Farmers<br />
Cattle<br />
Meat <strong>Sector</strong> Study<br />
According to MAFCP there are 297,418 farms keeping animals and out of them 226,442<br />
farms keep cattle. The total number of cattle is decreasing over the last years; from 634,000<br />
in 2006, to 577,000 in 2007 and finally to 494,000 in 2009; number of cows is 353,000.<br />
Major regions with cattle farms are Fier, Elbasan, Tirana and Shkoder.<br />
On Albanian farms the following – mainly milk oriented - breeds can be encountered; Jersey<br />
(35 %), Laramane e zeze (Black & White) (29 %), domestic breeds like (15 %), Holstein (13<br />
%) and Simmental (3 %) and others like Taranteze. (Source: MAFCP, 2008, Technical<br />
Report)<br />
The way the cattle are kept on the farms is quite different; on one side there are many small<br />
subsistence farms with 1 – 2 cows, mainly for milking. Albanian average herd size is 2.4<br />
cattle. Animals are staying in primitive tied stall barns, often without any windows. All the<br />
work is done by hand; feeding, removing the manure and also milking.<br />
On the other side there are specialised farms, many more on milk than on meat, with better<br />
premises, even of the majority uses old existing buildings which are slightly adapted.<br />
Nevertheless electricity is often missing, windows very limited so that it is quite dark in the<br />
stables and just a handful of farms has a dung removal installation – partly because labour is<br />
so cheap. Again with very few exceptions there are no manure handling, storage and<br />
treatment facilities.<br />
The number of farms having more than 5 heads is 2,904 and equivalents to around 1 % of all<br />
cattle farms. 20 farms in Albania have more than 50 heads; Lushnja is one farm with 200<br />
calves for fattening.<br />
Slaughtering of cattle is done partly on the farm by the farmer or the butcher who then takes<br />
the meat to his shop. Or the butcher does the slaughtering behind his shop as clients want to<br />
see live animals and are sceptical about readymade de-boned. The correct way foresees<br />
that cattle are slaughtered in approved slaughterhouses; but given the small number of<br />
slaughterhouses – around 20 – in operation and the fact that many of them process just 2<br />
cows a day, one may conclude that slaughtering is not properly done according to the law.<br />
The liquid and solid waste from slaughtering on the farm or in small slaughter points is<br />
bought into illegal landfills and taken away by nearby rivers.<br />
As most farmers are not specialised in meat production they slaughter their animals, calves,<br />
too young and before gaining sufficient weight. The average live weight of slaughtered calves<br />
is about 180 – 200 kg (150 - 170 kg), which is economically much too low; sometimes male<br />
veal is slaughtered with 3 - 4 months and a live weight of 100 kg! Reasons for to early<br />
slaughtering are the demand for very young animals (of all kinds) and the unavailability of<br />
cheap fodder.<br />
Interesting to note that the demand is not expressed in higher prices for younger animals;<br />
experts from the Agriculture Know-How Transfer Centre in Fushe Kruje mentioned that the<br />
sales price for 1 kg live weight is around Lek 300 regardless if the animals has 200 or 400 kg.<br />
To stop the trend slaughtering young animals the MAAR started recently an awareness<br />
campaign promoting 12 months old calves with 400 kg live weight as the ideal weight for<br />
slaughtering.<br />
Meat <strong>Sector</strong> Study, page 14
Meat <strong>Sector</strong> Study<br />
Actually the corresponding law is prepared but the draft version does not show any<br />
requirement regarding minimum live weight at time of slaughtering.<br />
The fattening is also correlated to the milk price as when the milk price is low in May and<br />
June, farmers tend to fatten calves longer and not to sell cheap milk.<br />
Table 5: Average live weight of calves when slaughtered<br />
Regions Calf (kg)<br />
Berat 160<br />
Dibër 160<br />
Durrës 240<br />
Elbasan 182<br />
Fier 200<br />
Gjirokastër 130<br />
Korçë 180<br />
Kukës 160<br />
Lezhë 83<br />
Shkodër 140<br />
Tiranë 180<br />
Vlorë 180<br />
ALBANIA 166<br />
(Source: MAFCP, , Technical Report)<br />
The Focus Group meetings showed a different picture as average live weight of bulls when<br />
slaughtered was between 200 and 400 kg, with a majority at 300 kg upwards; calves are<br />
between 6 and 15 months old.<br />
Price per kg live weight of calves, regardless if male or female is between 300 and 450 Lek;<br />
around Euro 2 – 3 per kg. Price for bulls and oxen is Lek 280 – 350, around Euro 2 – 2.50<br />
per kg. Farmers interested in fattening calves buy them often just a few days old for a price<br />
of Euro 120 – 150.<br />
Corresponding prices in Austria (March 2010) at farm gate are for bulls (live weight 680 kg!)<br />
and oxen Euro 1.64- 1.79, female calves Euro 1.21 – 1.37, cows Euro 0.80 – 1.06 and calves<br />
for slaughtering Euro 2.59 – 2.97; all prices without VAT, which is usually kept by the farmer.<br />
(Source: Kaerntner Bauer, Markt & Preis, No 9, 2010)<br />
The Focus Group meetings found out that farmers are selling their animals on specific animal<br />
markets, in a limited amount to traders, to a big deal to the local butcher shops and none of<br />
them to slaughterhouses, except one farmer.<br />
A meat classification system of carcasses of slaughter animals for cattle and veal (SEUROP)<br />
and related quality payment scheme is not in place and therefore farm output differs<br />
extremely in weight, colour, fat content and age.<br />
4 % of the farmers have no education at all, 16 % visited the primary school and 48 % also<br />
the secondary school. The educational background is limited as there are almost no<br />
vocational schools which would be needed to train small holders.<br />
Meat <strong>Sector</strong> Study, page 15
Meat <strong>Sector</strong> Study<br />
Financing for agricultural investment projects almost cannot be obtained from commercial<br />
banks, as land ownership and title are not always secure and banks are generally not much<br />
interested in agricultural land as collateral. Furthermore interest rates are high so that<br />
financing is brought up within the family, in case that there are investment projects at all.<br />
The cooperation between farmers, which is starting slowly in advanced countries like Austria,<br />
hardly exists in Albania. In the previous system farmers have been forced to cooperate and<br />
now farmers are staunchly independent, even though they could farm more profitably if they<br />
work together. Suggestions for cooperation could start in division of labour or specialising the<br />
cattle farms; one produces calves and the other one specialises in fattening them.<br />
Cattle, especially from subsistence farms, have usually no open yard and graze in the<br />
neighbourhood of the farm (and along the streets), regardless of the ownership of the land:<br />
Albania has around 423,000 ha of pastures and around 38 % are still owned by the state.<br />
The possibilities for expansion of natural pasture are limited due to the geographical situation<br />
in Albania with substantial mountainous area. Therefore increased feed must come from<br />
improved production of fodder such as lucernes, maize and other grasses, and improved<br />
utilization of industrial by-products such as olive cake, bran and soybean meal. Maize silage<br />
is almost unknown. Forage crops are now grown on 200,000 hectares (Source: MAFCP;<br />
Statistical Yearbook 2009), or 40 % of the cropped arable land, with lucernes comprising<br />
about two-thirds of this area. Most is harvested by hand – as agricultural equipment is too<br />
expensive - and there are problems with weeds and poor storage of hay.<br />
Generally there is room for improvements – especially on the small farms - concerning<br />
forage quality, management and feeding practices and also availability of clean seed.<br />
Grazing resources including pasture, forest, and some agricultural land are fundamental for<br />
livestock raising, but have degraded significantly over the last 20 years, particularly in land<br />
close to communities where over-grazing and over-cutting of wood have resulted in reduced<br />
productivity and soil erosion. (Source: SHUNDI, Andrea Prof.: Country Pasture/Forage<br />
Resource Profiles Albania; 2006)<br />
Bigger farms are managed better but have to purchase partly fodder from the market as<br />
farms are often too small to produce enough forage; that might start even with hay.<br />
Due to the small size of the herds biogas facilities are not in place.<br />
Governmental policy aims to stimulate just milk cow farmers. There is no support for meat<br />
production. Veterinary services are available to limited amount; actually only 61 % of the<br />
cows are artificially inseminated; one third of the Holstein and Jersey cows is inseminated<br />
with meat breeds such as Limousin and Charolais exclusively for meat production.<br />
Summarizing one might say that cattle farmers producing meat are oriented towards the<br />
fresh market, as imported deep frozen beef is much cheaper and therefore the meat<br />
processing industry is not interested in local beef.<br />
Cattle usually do not reach more than 420 – 460 kg live weight and average price therefore is<br />
Lek 320 -330 / kg.<br />
Sheep and goats<br />
55.942 of all farms in Albania keep sheep and 26.175 keep goat; the majority of sheep farm<br />
also keeps goats. The total number of sheep is almost constant; 1.830.000 in 2006,<br />
1.853.000 in 2007 and 1.768.000 in 2009; the number of milked sheep is always around<br />
400,000 lower. Figures for goats look as follows: 940.000 in 2006, 876.000 in 2007 and<br />
772,000 in 2009; the number of milked goats is always around 200,000 lower.<br />
Meat <strong>Sector</strong> Study, page 16
Meat <strong>Sector</strong> Study<br />
Sheep and goat farming plays a key environmental role that includes the natural upkeep of<br />
less fertile areas, the maintenance of biodiversity, sensitive ecosystems and water quality,<br />
the fight against erosion, floods, avalanches and fires. In Albania sheep and goat farming<br />
takes place in less favoured areas, where such farming is very often the only agricultural<br />
option and which therefore makes a crucial contribution to the economy in rural areas.<br />
Major regions with sheep and goat farms are Vlore, Gjirokaster, Fier and Elbasan. Goats<br />
prefer even more mountainous regions and better goat husbandry conditions are therefore in<br />
Kukes, Diber and Shkoder.<br />
Albanian farmers keep the following sheep breeds: Tsigaja (45 %), Komune (22 %), Merinos<br />
(12 %), Ruda (8 %), Mati (5 %), Bardhoka (5 %), Ile de France (1 %) and Awassi (1 %).<br />
Albanian farmers keep the following goat breeds: Muzhak (70 %), Mat (9 %), Has (6 %),<br />
Capore (5 %), Dukati (3 %), Velipoja (1 %), Dragobia (1%), Liqenasi (1 %) and Alpine (1 %).<br />
(Source: MAFCP, 2008, Technical Report)<br />
The average sheep flock size in the country counts 44 heads, the figure for goats is 45<br />
animals. Countrywide small flock sizes between 5 and 50 heads are still very numerous as<br />
many sheep are raised for self-consumption and just 3,177 farmers have between 100 and<br />
200 heads; only 797 have more than 200 heads. Corresponding goat figures are 914 and<br />
293. This is less than 10 % of all the farms with small ruminants and these 5,000 farms can<br />
be considered commercial small ruminant farms.<br />
Sheep and goats – when produced commercially - are kept in transhumance as long as there<br />
are enough opportunities for grazing; on some summer pastures farmers built very simple<br />
barns to shelter animals; in winter times the small ruminants are in better, but simple barns<br />
on the farm. Small ruminants of subsistence farmers are often kept on the farm.<br />
Husbandry of small ruminants can be done in several ways:<br />
1) Extensive system with transhumance from 6 to 8 months (all regions)<br />
2) Semi-intensive system with transhumance from 5 to 6 months (Gjirokastra)<br />
3) Grazing system on permanent pastures close to the holding<br />
4) Grazing on natural pasture in walking distance, with return of sheep or goats in the<br />
evening to the holding<br />
The feeding system in Albania is mostly based on grazing, at least for 5 months per year.<br />
Transhumance requires often daily distances of 30 km; this is very difficult for the animals<br />
especially if they cannot find water; cases are reported where animals have access to water<br />
holes every other day.<br />
In the winter period the “intensive” holdings feed animals with preserved forage (hay, alfalfa)<br />
and cereals, either produced on the farm or purchased; the harder the winter the more<br />
concentrates will be used. The feeding costs get also higher when animals must be kept<br />
longer in stables due to climatic conditions; animals must be fed in stables for a period of<br />
three to six months.<br />
In the current production system, the milk constitutes an important part of the breeders'<br />
income. The milk is either processed directly by the shepherd, or sold to small dairies for<br />
production of Kaskavall or Feta cheese. The milk makes up to 46 % of the total income from<br />
sheep. The income from meat is obtained through the sale of lambs and of cull-animals. The<br />
lambs are always sold by kilogram and best price can be achieved in December and the<br />
lowest price in August. (Source: UNDP Albania; “Strengthening the Marketing of Small<br />
Ruminants” Project, 2005)<br />
Meat <strong>Sector</strong> Study, page 17
Meat <strong>Sector</strong> Study<br />
A milk sheep could deliver 70 litres of milk annually which equivalents to LEK 7,000. The<br />
alternative would be to feed a lamb which could be sold with 20 kg live weight for LEK 7,000<br />
or eventually with 30 kg live weight for LEK 9,000.<br />
Table 6: Revenues per sheep and year; meat vs. milk<br />
Lamb (meat) 20 kg 350 Lek/kg 7000<br />
or 30 kg 300 Lek/kg 9000<br />
Sheep (milk) 70 l 100 Lek/l 7000<br />
(Source: Expert’s calculation, 2010)<br />
Milk versus meat, the utilization of milk<br />
The decision of using milk either for selling it to dairies or for fattening of the lambs should be<br />
based on the conversion rate milk to meat and the prices for the different products. The<br />
current conditions (2010) are summarized in the following table.<br />
Table 7: Break - even points for milk and meat<br />
Assuming 6 kg of milk, necessary to grow 1 kg of live weight in lambs, only a meat price of<br />
600 ALL/kg LW would valorise the milk with 100 ALL / kg of milk, currently paid by the dairy<br />
processors in Saranda. (right arrow).<br />
During the top season, at live weight prices of 450 ALL (Saranda, December 2009), the litre<br />
of milk would be valorised with 75 ALL through feeding, against the 100 ALL which are paid<br />
by the dairy, hence clearly in favour of selling the milk (central arrow).<br />
When meat prices fall to the level of 300 ALL / kg LW , the litre of milk is valorised equally<br />
(break - even) through feeding to the lamb and to selling of milk, at a milk price of 60 ALL /<br />
litre, which is close to the conditions reported in Korca in the southern part of the country (left<br />
arrow).<br />
Although – as shown above - the price relations are clearly in favour of milk production, the<br />
farmers however underlined that they intend to produce both: milk and meat, probably to<br />
Meat <strong>Sector</strong> Study, page 18
Meat <strong>Sector</strong> Study<br />
reduce risks and due to the need and the distribution of cash income (lamb before Christmas,<br />
monthly milk cash income during January and February). (Source: UNDP Albania / MOLLA A;<br />
Base Line Study on Production Systems and Economics of Sheep Husbandry in Southern<br />
Albania, 2010)<br />
The Focus Group meetings mentioned that lambs when slaughtered are between 3 and 6<br />
months old and have a live weight between 20 and 40 kg, but mainly between 20 and 30 kg;<br />
in case that lambs are slaughtered for religious holidays they are usually younger and not<br />
that heavy. Regular prices are Lek 300 – 350 per kg live weight, in Euro 2.20 – 2.50.<br />
Corresponding prices in Austria (March 2010) at farm gate are for lambs alive with 40 – 45<br />
kg are Euro 2.05 (very good quality) and the others for Euro 1.65 per kg. Cull ewe have a<br />
price of Euro 0.50 per kg alive. All prices are without VAT, which is usually kept by the farmer.<br />
(Source: Kaerntner Bauer, Markt & Preis, No 9, 2010)<br />
Average live weight of lambs when slaughtered is in many cases too low but often farmers<br />
sell lambs early as prices are good before religious holidays and others want to focus more<br />
on milk and try to sell lamb as early as possible – neglecting the opportunity to feed it with<br />
something else instead of mother milk.<br />
Slaughtering of small ruminants is done on the farms, by the butchers in the slaughter points<br />
and a few in slaughterhouses. Situation is worse than with cattle as animals are smaller and<br />
easier to slaughter.<br />
Pigs<br />
According to MAFCP there are 297,418 farms keeping animals and out of them 42,036 farms<br />
keep pigs. The total number of pigs is steadely growing and reached 160,000 in 2009 and<br />
out of them 13,000 mother sows. Most pigs are raised in these small farms and bigger units<br />
are rare; in 2008, there were about 330 farms with 6 - 10 pigs, 181 farms with 11- 50 heads<br />
and 17 farms with more than 50 heads. For example DRIZA, a mixed operation and an<br />
agribusiness key player, keeps 30 sows and thus fattens 600 – 800 pigs per year.<br />
Around 70 % of the piglets are produced in an extensive production system but 90 % of the<br />
pigs are grown in an intensive system.<br />
Some pig fattening farms imported in the past piglets with around 25 kg live weight; as<br />
animal feed is expensive and therefore the production costs high, they shifted the weight of<br />
imported animals from 25 kg to 80 kg! Almost finished pigs - 56,000 heads according to<br />
official statistics - are getting fattened until they are sold, generally within two weeks.<br />
In Albania the breeds large white and landrace and all cross-breeds can be found. Premises<br />
reflect the farmer’s attitude if the fattening is just for auto-consumption or a commercial<br />
business; from big brand new stables with automatic feeding technique to simple barns<br />
where beside the 2 cows and 5 sheep also 2 pig are fattened.<br />
Corresponding is also the slaughtering, which might take place in basic slaughter rooms next<br />
to the fattening stables or in so called slaughtering points close to high frequented roads or<br />
simply in the backyard of a farm. The slaughter-weights vary between 70 and 120 kg alive.<br />
Pig husbandry is both a profitable and fragile undertaking; prices are changing rapidly, also<br />
of imported animals and therefore the business is not predictable. As animal feed is<br />
expensive and farmers lack of financial resources, early slaughtering of underweight pigs is<br />
widespread and reduces the profitability. Other obstacle is that livestock farmers have just<br />
limited knowledge about low-fat meat production which is best preferred. Hence, 20-30 % of<br />
carcass weight loss because of fat, affects heavily profit reduction.<br />
Meat <strong>Sector</strong> Study, page 19
Meat <strong>Sector</strong> Study<br />
A family can make a living off 5 sows but pig production costs are high – this is because the<br />
majority of feed grains and all soya have to be imported plus these imported feedstuffs then<br />
attract a tax of 20 %.<br />
Farmers with 1 or 2 sows feed them on home grown feeds. Maize is commonly grown and<br />
dried in open racks. Most small farmers have a couple of cows with the milk being used for<br />
cheese production. The whey is then used as pig feed. Farmers who have 5 sows or more<br />
buy in pig feed. Buying and selling of pigs is done through numerous local markets.<br />
Feed is bagged in meal or pellets form and all feeding is done by hand. Most farmers dump<br />
all the slaughtering by-products and the liquid waste usually runs into the nearby river.<br />
(Source: LUMB, Stuart; Albanian Pig Production; 2004)<br />
Poultry<br />
The total number of poultry is steadely growing and reached 8,313,000 in 2009; out of them<br />
5,138,000 chickens – after 4,087,000 in 2000. The chicken (broiler) sector, even affected by<br />
the avian influenza in 2006, is growing fast. According to MAFCP there are 297,418 farms<br />
keeping animals and out of them 279,522 farms raise chicken.<br />
As the total number of chickens is around five million, in average there are 18 chickens on a<br />
farm (Source: MAFCP; Statistical Yearbook 2009).<br />
The small farmers have just 5 – 10 chicken and grow their own feed such as maize. Chicken<br />
are usually kept in small premises or together with the other farm animals. Manure storage is<br />
not known and slaughtering takes place on the farm. Consequently the productivity is low<br />
and just the surplus is sold in the neighbourhood.<br />
As it is seen from the data of the following table shows that there are 38 meat oriented<br />
poultry farms, 17 out of them keep more than 10,000 heads like “Driza Ltd”, Fier with an<br />
annual capacity of more than 1 million heads, “Uina Ltd”, Librazhd with an annual capacity of<br />
600 thousand heads, “Agrozo Ltd”, Lushnje, with an annual capacity of about 800 thousand<br />
heads, “Chicken Farm” Kavaje, with an annual capacity of about 1.5 million heads and<br />
“Shehu” Korce, with an annual capacity of about 600 thousand heads.<br />
Table 8: Poultry meat farm<br />
Poultry meat farm 2005 2006 2007 2008 2009<br />
Total numbers 23 20 29 36 38<br />
1000 - 5000 Head 11 8 7 17 16<br />
5000 -10000 Head 3 3 6 5 5<br />
over 10000 Head 9 9 16 14 17<br />
(Source: MAFCP; Statistical Yearbook 2009)<br />
Due to the expansion of these centres, broiler production increased from 4,000 tons in 2000<br />
to 16,000 tons in 2008 and 17,000 tons in 2009 (Source: MAFCP; Statistical Yearbook 2009).<br />
In 2009 total live weight production in Albania reached 143,000 tons; cattle 66,000 tons,<br />
sheep and goat 44,000 tons, pigs 16,000 tons and poultry 17,000 tons or 11,88 % of the total<br />
production.<br />
Meat <strong>Sector</strong> Study, page 20
Meat <strong>Sector</strong> Study<br />
This is substantially more than y few years ago but compared to the EU 27 with 23.1 kg /<br />
capita still low.<br />
There is no other sector in Albania where the difference between subsistence farmers and<br />
professional, commercial farmers is that vast like in broiler production. As this is a very<br />
capital intensive business, big players invest substantial amounts of money and can expect a<br />
high and especially fast return.<br />
The production is growing faster than the consumption and self-sufficiency is now at around<br />
50 %.<br />
During the focus group meetings 10 very different representatives of chicken farmers have<br />
been interviewed. There have been farmers producing up to 150 chickens a year and they<br />
can be considered as self-suppliers. On the other side there have been two farmers selling<br />
30,000 and 450,000 chicken a year.<br />
The breeds encountered are called “shot” and “red broiler”.<br />
The finished chicken had a live weight between 1 and 2 kg, in some cases up to 3 and 4 kg.<br />
According to the interviewees the chicken sales price per kg live weight varied between Lek<br />
170 and 700! The average poultry meat price per kg is between Lek 300 and 1,000!<br />
While small holders consume everything within their family and sell nothing at all, the biggest<br />
chicken farmer mentioned that he makes Lek 243 million per year; i.e. Euro 1.7 million!<br />
As mentioned above the small producers with around 100 chickens consumed all of them<br />
within their families; most of the chickens have been marketed in the village directly to<br />
consumers or in the next town to consumers – that includes also the farmer producing<br />
450,000 chickens a year. Rather small quantities have been sold to traders and<br />
slaughterhouses.<br />
The commercial poultry farms (layers, broilers, turkeys) use more than 80 % of the total<br />
150,000 t of finished feed sold in Albania. In an agribusiness sense poultry is the most<br />
developed, organised and updated sector.<br />
Through partnership between ENZY food processing company and ABDUA company a<br />
hatchery poultry farm has been established near Kavaja. The joint operation is producing<br />
one-day old broiler chicks and has started to supply several Albanian chicken producers.<br />
Other one-day old broilers are imported from Greece.<br />
Animal feeding<br />
The meat production is still done with a low level of inputs; the extensive system of<br />
production is dominant. Statistics show that about 85 % of cattle, 97 % of small ruminants, 70<br />
% of piglets and 50 % of poultry, are being bred extensively. This is the situation as the farms<br />
are very small and financing for improvements usually not available. Even inefficient, the<br />
husbandry systems, especially of small ruminants and cattle, are generating income.<br />
More advanced production systems using higher inputs can be found in pork production, 80<br />
% of the sows, 85 % of poultry, and 20% of cows. Almost 100 % of the poultry farms, 15 % of<br />
cattle farms and 90 % of pig farms are using high inputs. Cattle ranchers are sometimes<br />
feeding the animals intensively if they are focused on milk production.<br />
Animal feed producers<br />
Meat <strong>Sector</strong> Study, page 21
Meat <strong>Sector</strong> Study<br />
The three big fodder producers AGROTEK ALB shpk, Aiba Company shpk and Floryhen<br />
shpk control 70 – 80 % of the market in Albania. They offer different forms of concentrates,<br />
premixes, microelements, raw materials such as soya bean, fish meal, maize, wheat etc.<br />
Usually feed products are pressed into pellet forms. Wheat and barley is purchased mainly<br />
locally, but other inputs such as soya are imported from Greece, Italy and Serbia. Feed is<br />
produced for cattle, sheep, goat, pigs and poultry; main customers are chicken and pig farms<br />
with 40 % each; the rest of the products is for cattle, sheep and goat farms. Distribution takes<br />
place trough partly exclusive distributors and just big farms are served directly.<br />
Product prices vary between Lek 35 – 100 plus 20 % VAT per kg; estimated market volume<br />
is 50 – 60,000 tons annually. The feed producers are often certified in ISO 9001:2000,<br />
Hazard Analysis and Critical Control Point (HACCP) and other quality management<br />
programmes.<br />
As farmers have often limited access to extension services the feed producers provide also<br />
services in veterinary and zoo technical consulting or assist farmers in getting in touch with<br />
experts.<br />
The companies are also involved in “neighbouring businesses” such as egg production or<br />
slaughterhouses.<br />
Producers see a major threat for their sector in the limited availability of raw materials; as a<br />
consequence many products like soya have to be imported and transport costs are high.<br />
Fodder is cheaper for example in Serbia and as it is cheaper to transport 1 kg of pork meat<br />
(produced in Serbia) instead of 4 kg of cereals (for the production of 1 kg of pork meat in<br />
Albania), feed producers are afraid of the increasing competition in this sector; competition<br />
became stronger with the Central European Free Trade Agreement (CEFTA) and will get<br />
more intensive when approaching the European Union.<br />
The Albanian feed industry offers all kinds of feeds for the local livestock producers, except<br />
fish and pet food. A few feed mills offer the feed in both mash and pelleted form. Almost all<br />
raw ingredients are imported like soya (up to 24,000 to / year) and grains, except for<br />
limestone. The main sources for raw materials are neighbouring countries, mainly Italy and<br />
Greece but other countries, like France, Romania, Bulgaria, are also used. The biggest<br />
constraint for direct imports from big producers such as the USA, Brazil and Argentina is the<br />
fact that Albania’s main harbour, Durres on the Mediterranean Sea, can receive shiploads to<br />
a maximum of 12,000 metric tonnes. Therefore all ships have to be reloaded in Greece and<br />
that increases the costs.<br />
Albanian feed mills are quite familiar with the well-known companies such as: Bühler, Brock,<br />
Van Aarsen, Big Dutchman, Facco, Chore Times, Pas Reform, Farmer, Chemifarma,<br />
Lohman, Schauman, etc.<br />
III. PROCESSING INDUSTRY<br />
Slaughterhouses<br />
Meat <strong>Sector</strong> Study, page 22
Meat <strong>Sector</strong> Study<br />
During the communist regime, meat was a rare and rationed product. It was not even allowed<br />
to keep animals in private gardens and consequently the meat consumption was very low.<br />
Therefore also the need for slaughterhouses was limited.<br />
Today the meat consumption is already at 40 kg per capita but still far away from EU levels<br />
which are twice as high. With the increasing meat consumption the slaughterhouses became<br />
more important.<br />
According to MAFCP only few slaughterhouses in Albania are operating according to<br />
national legislation. In the 12 administrative regions the situation looks as follows:<br />
1. Berat<br />
Kucova: There is a slaughterhouse managed by the municipality which meets somehow the<br />
requirements.<br />
Çorovoda: The old slaughterhouse is out of function. A new slaughterhouse is under<br />
discussion and eventually financed by MAFCP and FAO.<br />
Poliçan: A new slaughterhouse will is under consideration, financed by MAFCP.<br />
2. Diber<br />
With the exception of KEPUTA shpk in Burrel no other slaughterhouse in this district fulfils<br />
sanitary-veterinary requirements.<br />
3. Durres<br />
Durres: There is a private slaughterhouse which somehow meets the requirements, but is<br />
still missing some equipment.<br />
4. Elbasan<br />
Elbasan: The municipality slaughterhouse does not correspond to the national requirements.<br />
A new slaughterhouse will is under consideration, financed by MAFCP.<br />
Gramsh: Municipality has a slaughterhouse which meets somehow sanitary-veterinary<br />
conditions.<br />
5. Fier<br />
This district shows 10 operating slaughterhouses, 3 in Fier, 2 in Patos (one for poultry), 2 in<br />
Ballsh, and three in Lushnja (one of them for poultry); except the one in Divjaka they are<br />
operating satisfactory according to national standards..<br />
6. Gjirokaster<br />
Gjirokaster: On district level, there is one slaughterhouse under reconstruction.<br />
Tepelena has one slaughterhouse which is approved by the veterinary service.<br />
In Permet an Italian NGO - Cooperazione e Sviluppo (CESVI) - established a<br />
slaughterhouse.<br />
7. Korce<br />
Novosella has one slaughterhouse provided with all the facilities in conformity with EU<br />
legislation (15 heads / hour); it is regularly inspected by the veterinary inspectorate.<br />
8. Kukes<br />
Kukes has one public slaughterhouse which is under the privatization process; it has been<br />
built by a project and meets the sanitary-veterinary requirements for such an activity.<br />
9. Lezhe<br />
Lezha has one acceptable private slaughterhouse for cattle and pigs.<br />
10. Shkoder<br />
No operating slaughterhouses in this district that fulfils sanitary-veterinary requirements.<br />
Meat <strong>Sector</strong> Study, page 23
Meat <strong>Sector</strong> Study<br />
11. Tirana<br />
Tirana has one private slaughterhouse (KMY/Yzberish), which meets all the requirements but<br />
is used only for the company’s needs.<br />
12. Vlora<br />
No operating slaughterhouses in this district that fulfils sanitary-veterinary requirements.<br />
UNDP is working on an MAFCP financed slaughterhouse with high standards, but it was not<br />
in operation by summer 2010.<br />
(Source: MAFCP; Slaughterhouses in Albania, present situation and prospect; 2006)<br />
In Albania there are many slaughterhouses not in operation and the remaining less than 20<br />
slaughterhouses – that correspond more or less to national standards - do often daily<br />
slaughtering of 1 – 2 cattle and / or few pigs or small ruminants. All slaughterhouses are<br />
working far below their capacities which often vary from 10 - 40 cattle and 20 - 100 small<br />
ruminants per day. One of the reasons therefore is that authorities do not force the traders<br />
and butchers to slaughter there. Therefore slaughterhouses face no or limited raw material<br />
supply. Usually the facilities are outdated and in most cases they do not even comply with<br />
the Albanian law. EU standards on hygiene, public authority, traceability and HACCP are not<br />
fulfilled.<br />
For example many slaughterhouses only separate the carcass from the entrails, leaving<br />
other operations to butchers, such as separation of internal organs from the carcass and<br />
breaking of the bulk and anatomical cuts, that are even harder for authorities to check and<br />
monitor. (Source: FAO / VERCUNI, A. et ZHLLIMA, E.: The food supply and distribution<br />
system of Tirana, Albania; 2008)<br />
As the costs of setting up slaughterhouses depend less on the walls and more on electricity<br />
and water supply, stainless steel equipment, modern machinery, sufficient space (away from<br />
housing areas), cooling rooms and more, it is not economically justified to refurbish (very<br />
poor) existing slaughterhouses.<br />
All the slaughterhouses in the country are considered Small and Medium Enterprises as they<br />
have less than 250 employees and a turnover not reaching Euro 50 million annually.<br />
Regarding the poultry sector there are three major slaughterhouses for poultry in rather good<br />
condition:<br />
• Chicken Farm in Kavaja (fully automatic slaughterhouse belonging to Frigofood<br />
company)<br />
• AGRIZOO in Lushnja region (half automatic)<br />
• DRIZA in Fier region (half automatic)<br />
Smaller ones are located in Korca, Fier, Lushnja etc.<br />
Slaughtering points<br />
In Albania there are more than 200 slaughtering points with primitive equipment and without<br />
control of local authorities. Very often these slaughtering points are located on the roadside<br />
of major roads like Tirana - Shkoder; usually the facility includes just one room with a<br />
refrigerator and the meat for sale is hanging outside so that it is good visible to all drivers<br />
coming along the road. This type of “slaughterhouses” does not correspond to Albanian law<br />
and several times such slaughtering points or butcher shops have been closed by the police;<br />
as these facilities are not registered the veterinary inspectors are not entitled to control them<br />
Meat <strong>Sector</strong> Study, page 24
Meat <strong>Sector</strong> Study<br />
and therefore the police has to intervene. On the other side it has to be mentioned that some<br />
of these practices look more hygienic than official slaughterhouses which are usually in a<br />
rather poor condition.<br />
Fees for slaughtering<br />
The fees for slaughtering in registered slaughterhouses have not been much increased since<br />
2004 and are now according to expert’s opinions as follows:<br />
• 600 Lek for grown up cattle<br />
• 500 Lek for calves<br />
• 400 Lek for sheep and goat<br />
• 500 Lek for pigs<br />
The corresponding meat inspection fees are as follows:<br />
• 400 Lek for cattle<br />
• 200 Lek for calves<br />
• 200 Lek for small stock<br />
• 100-200 Lek for pigs<br />
Municipalities are in most cases the owner of the existing slaughterhouses and therefore<br />
they are often poorly managed. In some cases the municipalities rent the facility out to the<br />
private sector. In both cases the low number of slaughters does not cover the investment<br />
cost, in many cases not even the running costs. For example there are slaughterhouses with<br />
adequate equipment to hang up the slaughtered animals but the equipment is not used as it<br />
does not pay off for a few animals per day.<br />
Veterinary inspections do not always take place according to the law and make thus doubtful<br />
slaughters statistics and control of epizootic situation. One reason therefore might be also<br />
the double authority in the veterinary inspection that source from the Law No.8652 dated 31 st<br />
July 2000 “On the organization and functionality of local government”. Because of that<br />
sometimes nobody takes the responsibility to enforce the proper inspections.<br />
In general, liquid and solid slaughter residues (waste) are not treated according to hygiene<br />
and environment requirements, but are directly disposed into sewer channels and dumped<br />
into landfills.<br />
Keputa<br />
The company KEPUTA shpk was established in 2003 in the city of Burrel, Diber county. Also<br />
the slaughterhouse is located there.<br />
Main activities include buying of live animals in the region and slaughtering; further activities<br />
are meat processing and trade of fresh meat. The number of employees is 4 and the annual<br />
turnover roughly Euro 65,000. All the required raw meat for processing is from the internal<br />
market.<br />
KEPUTA is the first and the only slaughterhouse in Albania that applied for an EU Number to<br />
export fresh meat; process still pending.<br />
Investment plan focuses on new equipment for processing.<br />
Meat processing companies<br />
In contrast to the slaughterhouse sector the Albanian top meat processing companies like<br />
EHW, KMY, TONA and others are doing fine. The 10 biggest processing companies cover<br />
Meat <strong>Sector</strong> Study, page 25
Meat <strong>Sector</strong> Study<br />
around 80 % of the market share; they are financially strong and consider further<br />
investments with and without upcoming IPARD-support.<br />
Table 9: Investment of the agro-industry in Lek million<br />
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />
Investments 121 105 100 67 92 426 170 119 174 35<br />
(Source: MAFCP; Statistical Yearbook 2009)<br />
Nevertheless the official investments of the agro-industry made just Euro 250,000 in 2009<br />
(equivalent to 35 million Lek).<br />
Assuming that the imported beef and pork meat is used by the meat processing industry<br />
(2007: 6.705 tons beef and 15.139 tons pork meat; 2008: 5.377 tons beef and 11.529 tons<br />
pork meat), the total raw material input into the meat industry makes 16,906 tons (2008);<br />
some very little volume of fresh meat could be added, for example for prosciutto.<br />
Table 10: Sausage and ham production of the agro-industry<br />
Year 2000 2005 2006 2007 2008 2009<br />
Sausage and<br />
ham production<br />
in tons<br />
4055 9485 9824 9145 10341 8878<br />
(Source: MAFCP; Statistical Yearbook 2009)<br />
All the 65 meat processing companies (Source: MAFCP; Statistical Yearbook 2009) in the<br />
country are considered Small and Medium Enterprises as they have less than 250<br />
employees and a turnover not reaching Euro 50 million annually.<br />
The meat processed is mainly pork, but also poultry and beef and sausage-making products<br />
prevail in the production structure. Companies use sophisticated technology in processing<br />
frozen meat but face limited know how in processing fresh meat.<br />
The leading companies have a sound documentation of their production including traceability<br />
and applied HACCP. Albanian standards according to Food Law and orders of MAFCP are<br />
often applied; even EU standards on hygiene, public authority, traceability and HACCP are in<br />
place at big companies which are almost ready for EU export licences.<br />
The premises of the top meat processing companies like EHW, KMY, TONA and others are<br />
very modern and fulfil in many cases already EC standards.<br />
A specific weakness is the waste disposal as there are nowhere liquid or solid waste disposal<br />
systems in place; all the leftovers are bought into illegal landfills and are running into the<br />
nearby rivers. The companies are aware of this deficit but as veterinary inspection do not<br />
insist on better technical solutions the situation remains as it is now.<br />
In Albania there are several important and successful meat processing companies and the<br />
major companies are presented here in brief.<br />
EHW GmbH<br />
Meat <strong>Sector</strong> Study, page 26
Meat <strong>Sector</strong> Study<br />
The company was established in 1992 on the Motorway to Durres, 4 k west of Tirana, is<br />
owned by the family Leka and an Italian partner at equal shares and has its main activities in<br />
processing meat into 70 kinds of salami (würstel, parizier, llukanik, milan, naples, saxony,<br />
montana and suxhuk salami) ham, ham with chicken fillet, chicken würstel, grill meatballs<br />
and an Italian San Daniele style ham (prosciutto). The products are sold in 13 EHW butcher<br />
shops (10 in Tirana) and according to the management EHW has 60 % market share in<br />
Tirana and 40 % in Albania!<br />
Due to the high local prices for meat all the required raw meat for processing is imported<br />
from Brazil, USA and Canada. The imported volume is around 3,500 tons per year what<br />
results in a daily processed amount of 10 tons. The company employs 200 people and<br />
makes an annual turnover of roughly Euro 20 million.<br />
IQNET and other international recognised certification companies have certified the company<br />
regarding quality management ISO 9001:2000, HACCP, food safety and others. Like the<br />
other Albanian meat processors also EHW is not importing the meat directly from abroad but<br />
uses the services of an international trader who purchases the meat on its own behalf or on<br />
behalf of EHW.<br />
Next steps will be an enlargement of the product range by additional trading products,<br />
especially cheese. But also fresh meat is sold in EHW shops; it is delivered there directly<br />
from 2 - 3 good local slaughterhouses. Main problem is limited supply of local meat and<br />
especially the inability to export due to non-enforcement of the veterinary law.<br />
Further investments could cover sewage water plant, especially to get rid of the fat swimming<br />
on top of this sewage water.<br />
KMY/Yzberish<br />
KMY is one of the oldest food processing companies in Albania. It started its activity in 1993<br />
in the city of Tirana where is located its factory. The number of employees is 330. The range<br />
of products has been increased over the years.<br />
Currently the company produces more than 30 high quality products such as salami, ham,<br />
fresh and frozen meat because the company has a slaughterhouse on its own which is not<br />
open to the public.<br />
The required raw meat for processing is imported from:<br />
• Brazil, USA ,Canada, Uruguay 90 %<br />
• EU countries 7 %<br />
• Internal market 3 %<br />
KMY owns also a farm which is not in operation due to higher costs for raising pork, beef, etc.<br />
Actually the farm is used only as a collection point.<br />
KMY’s investments plans are:<br />
• Capacity expansion<br />
• Certification according to International Quality Standards to get in line with norms<br />
required by EU<br />
Meat Master<br />
The company was established a few years ago by Mr. Nrdek KIMCA, General Director and<br />
his two brothers in Shkoder. With one shift the company can process weekly 1,500 pigs and<br />
500 cattle. The Albanian agriculture does not supply enough animals. Constraints are that<br />
Meat <strong>Sector</strong> Study, page 27
Meat <strong>Sector</strong> Study<br />
cattle are getting slaughtered too early, in Shkoder with 200 kg live weight; he would prefer<br />
500 kg. He furthermore mentioned that small livestock keepers face problems when<br />
accessing the market. Regarding slaughterhouses there is none of acceptable quality, not<br />
even the FAO prototypes, and therefore he will invest into a new slaughterhouse outside<br />
town soon; he will relocate the whole company in a Greenfield investment.<br />
Darb Univers Frigo Darb<br />
The company was established as a wholesale trading company by Mr. Rifat KOPLIKU and<br />
Mr. Ajet XHAFERI 1997 in Shkoder; trade volume is 6 – 7 tons per day. In 2004 they started<br />
additionally meat processing and nowadays they have a daily output of 2.5 tons. Product<br />
range includes prosciutto, würstel (to be cooked) and salami. Pork is their main product and<br />
chicken is just very limited. DARB UNIVERS FRIGO DARB employs 85 people. 60 % of their<br />
processed products are sold in own shops. But the role of supermarkets is getting more<br />
important.<br />
TONA Co<br />
TONA CO is one of the oldest food processing companies in Albania. It started its activity in<br />
1992 in the city of Korca. The product range has been increased through the years. Starting<br />
with only three traditional salami products that were produced before 1998, nowadays the<br />
company produces more than 40 high quality products such as: sausages, salami, ham,<br />
fresh and frozen meat, and recently canned meat. The number of employees is 70 and the<br />
annual turnover roughly Euro 1 million. The company is certified regarding quality<br />
management ISO 9001:2000, HACCP, food safety and others.<br />
70 % of the raw meat for processing is imported from America (Brazil, USA, Canada,<br />
Uruguay) and from 30 % from Europe (Italy, Spain). TONA meat products are now offered<br />
through a large number of markets and supermarkets to over 70 % of the Albanian<br />
population. TONA CO LTD has a distributing network spread in all the main cities of Albania.<br />
TONA CO is an active member of ADAMA (Association of Dairy and Meat Processing<br />
Companies). The investment plan focuses on a new slaughterhouse.<br />
DEKON FRIGO<br />
DEKON FRIGO was established in 1992 in the city of Elbasan; the company employs 20<br />
persons and is certified regarding quality management ISO 9001:2000, HACCP, food safety<br />
and others. The raw meat is imported from:<br />
• Brazil, Canada, New Zealand 90 %<br />
• Italy, France 10 %<br />
The company processes chicken, pork and veal and just started an investment phase for<br />
setting up a refrigerating chamber; financing will be needed for the second phase which will<br />
cover the completion of refrigerating rooms.<br />
EL FRIGO 2<br />
The company started its activities in 1991 and employs 150 persons; the annual turnover is<br />
roughly Euro 12 million. EL FRIGO 2 is certified regarding quality management ISO<br />
9001:2000, HACCP, food safety and others. The raw meat is imported from:<br />
• Brazil, Canada 92-93 %<br />
• Italy, France 7-8 %<br />
Meat <strong>Sector</strong> Study, page 28
Meat <strong>Sector</strong> Study<br />
EL FRIGO 2 produces 45 % of their produce based on chicken, 35 % on pork and 20 % on<br />
veal. The management is afraid that the EU will not allow imports from Latin America and are<br />
wondering where they might get their raw meat from.<br />
Investment plans are discussed to set up an HACCP system.<br />
FRIGO ALBA<br />
The company started its activities in 2005. The number of employees is 17 and FRIGO ALBA<br />
makes an annual turnover of roughly Euro 8 million. Raw meat is imported from:<br />
• Brazil, Argentina, Canada 90 %<br />
• Italy, France 10 %<br />
The company produces 5 % of their produce based on chicken, 75 % on pork and 20 % on<br />
veal.<br />
The next investment should focus on building of refrigerating chambers.<br />
FIX-PRO shpk<br />
FIX-PRO shpk was established in 2003 in the city of Korca. The range of products includes<br />
more than 50 high quality products such as: sausages, salami, ham, fresh and frozen meat,<br />
llukanik etc. The company employs 60 people and makes an annual turnover of roughly Euro<br />
2 million. The company is certified regarding quality management ISO 9001:2000, HACCP,<br />
food safety and others.<br />
FIX-PRO shpk has a distributing network covering all the main cities of Albania. The<br />
company bases its success in the provision of high quality meat processing ingredients,<br />
continuous investments in new technologies, promotion of new products, marketing,<br />
promotional campaigns, etc. The investments plans focus on a new cold storage facility and<br />
on the enlargement of the production capacity.<br />
HAKO<br />
HAKO is one of the oldest meat processing companies in Albania. It started its activity in<br />
1998 in the city of Tirana where also the factory is located. The company produces more<br />
than 60 high quality products such as: sausages, salami, ham, fresh and frozen meat, and<br />
recently canned meat. The number of employees is 120 and the annual turnover roughly<br />
Euro 1.8 million. All the required raw meat for processing is imported from Italy and other<br />
countries. HAKO meat products are now offered through a large number of markets and<br />
supermarkets.<br />
The investment plan covers:<br />
• Treatment of water systems<br />
• Air conditioning systems in working place<br />
• Chilling rooms<br />
• Enlargement of working places<br />
ALBIDEA<br />
The company ALBIDEA was established in Tirana 2002 and main activity is swine breeding,<br />
fattening and slaughtering of their own pigs. The number of employees is 10, and the annual<br />
turnover around Euro 200,000. ALBIDEA is one of Albania’s few fresh meat producers. The<br />
company sells its fresh meat through franchised shops and to other meat processors.<br />
Future investments plans include<br />
Meat <strong>Sector</strong> Study, page 29
1. Building a new slaughterhouse<br />
2. Increasing of production capacity from 250 sows to 500 until 2012<br />
BARDHI shpk<br />
Meat <strong>Sector</strong> Study<br />
The company started its activity in 1996 in the city of Tirana where also the factory is located.<br />
The range of products includes among others more than 15 high quality products such as:<br />
salami, ham, sausages, etc.<br />
BARDHI shpk employs 12 people and makes an annual turnover of roughly Euro 500,000.<br />
The company is certified regarding quality management ISO 9001:2000, HACCP, food safety<br />
and others.<br />
Actually all raw meat for processing is imported from:<br />
• 90 % from EU countries (Italy, France, Blegium)<br />
• 10 % from Brazil, USA, Canada etc.<br />
BARDHI’s investment plan covers<br />
• General reconstruction<br />
• Laboratory for minimal analyzes<br />
• Vacuum equipment<br />
ROZAFA KACI shpk<br />
The meat processing company was established in Shkodra in 2002. The company produces<br />
the most popular products such as salami, ham and others.<br />
ROZAFA KACI has 15 employees and makes an annual turnover of roughly Euro 200,000.<br />
Also this company is certified regarding quality management ISO 9001:2000, HACCP, food<br />
safety and others.<br />
The company processed exclusively loclally produce meat! The investment plan focuses on<br />
all kind of new equipment.<br />
I.N.C.A Nord Fish<br />
The company I.N.C.A Nord Fish was established in 2007 and the factory is located in city of<br />
Lezhe. The main activity is the selection and calibration of natural casing for sausage (pig<br />
casing, beef casing, horse casing, sheep casing). The number of employees is 30 and the<br />
annual turnover roughly Euro 700,000. Actually I.N.C.A Nord Fish is processing natural<br />
casings that origin from Italy, Holland, Poland, Hungary etc.<br />
The company is collecting and recycling just very small quantities because the waste from<br />
slaughterhouses is presently dumped illegally into landfills.<br />
Processing natural casings would help farmers to gain an extra Euro 10 per head of the<br />
slaughtered animals. Recycling would reduce waste which causes environmental pollution<br />
today.<br />
The investment plan includes<br />
• New equipment for selecting<br />
• Air conditioning systems in working place<br />
• Chilling rooms<br />
• Depurator for water system<br />
Meat <strong>Sector</strong> Study, page 30
Meat <strong>Sector</strong> Study<br />
Besides these industrial plants there are also crafts facilities (objects of a smaller production<br />
capacities) like Profast and Caca in Korca, Arani-Expres Tirana and Erda and Kenedi and<br />
Arilta-B in Tirana, Isai in Elbasan, Sauli in Fier, Gerosi in Lushnje and ALSA in Vlora finally<br />
and facilities in the framework of the farms; these two types of processors are not so<br />
important for the Albanian market.<br />
IV. Government Policy for the <strong>Sector</strong><br />
According to the Agriculture and Food <strong>Sector</strong> Strategy 2007 – 2013 the government policy<br />
for the sector has be characterised as a primarily indirect support, which has focused on the<br />
following main aspects:<br />
• Rehabilitation of infrastructure (irrigation and drainage, markets and laboratories)<br />
• Establishment of a business-friendly environment (privatisation and distribution of the<br />
land and properties of the former cooperatives and agricultural farms, as well as of the<br />
assets of the agro-processing enterprises, start of the land cadastre for vineyards, 50<br />
% completed; next steps will cover the olive cadastre and then the one for agricultural<br />
land)<br />
• Support to farmer services such as technical advice, for agricultural extensionists,<br />
through which thousands of farmers and agriculture specialists were trained and the<br />
agricultural extension service was restructured towards a new policy and system<br />
• Institutional strengthening by providing new technical and administrative knowledge<br />
and experience through training and formal qualifications to technical and<br />
administrative staff of the Ministry and its structures<br />
By indirect support is understood the relative lack of credit and grants directed by the<br />
government to farmers.<br />
Since 2007 Albanian farmers benefited from a grant scheme that supported fruit and grapes<br />
production everywhere in the whole country. Furthermore the interest rate for loans in storing,<br />
processing of farm products (crop, fruits and livestock products), and agricultural machinery<br />
has been subsidised with up to 70% of interest rate. For investments in the agro-processing<br />
and export related activities loan guaranties have been provided.<br />
Regarding livestock there are two further programmes in place since 2009.<br />
Cattle<br />
The GOA supported milk farmers with a premium per head for milk producing cows, if the<br />
farmer owns more than 10 cows, if they are ear-tagged and if the sales a verified through<br />
official bills. In 2008 Euro 889,000 and in 2009 Euro 1,218,000 have been paid to 843<br />
respectively 1229 farms; that corresponds Euro 1,055 per milk farm in 2008 and Euro 991 in<br />
2009.<br />
A similar support scheme is not in place for cattle meat production.<br />
Sheep<br />
The GOA supported sheep milk farmers with a premium of Lek 500 per head for milk<br />
producing sheep, if the farmer owns more than 50 animals, if they are ear-tagged and if the<br />
sales are verified through official bills.<br />
A similar support scheme is not in place for sheep meat production.<br />
Meat <strong>Sector</strong> Study, page 31
Meat <strong>Sector</strong> Study<br />
The milk farmer support is ongoing and nowadays the government policy as described in the<br />
Agriculture and Food <strong>Sector</strong> Strategy 2007 – 2013 sets one of their priorities in the promotion<br />
of high level of food safety of agricultural or agro-processing products. This can be realised<br />
along the following lines:<br />
• Introduction of obligatory requirements for the implementation of the self-control system<br />
HACCP and the adoption of ISO standards<br />
• Improvement of the control of hygiene and sanitation conditions of agribusinesses<br />
• Registration and effective supervision of animal health<br />
• Improvement of animal breeding conditions<br />
The 2010 Albanian budget for agriculture, food and consumer protection is around Euro 11<br />
million; that can be seen as a small budget compared to the sector’s contribution to the GDP.<br />
Actually the MAFCP is in the process to get restructured by the newly appointed Minister of<br />
Agriculture; among others this affects the independent NFA which will be in charge of all the<br />
veterinary and food control in Albania; but also the set-up of the Regional Directorates<br />
(RDAFCP) might be overhauled and the existing extension service improved – so that it<br />
might fit also in assisting farmers to apply for IPARD measures.<br />
Regarding the NFA there is an EC project “Implementation of the Establishment of National<br />
Food Authority Albania” (Ref: EuropeAid/122779/C/SER/AL; 2007 - 2011) in the<br />
implementation phase so that Albania will be in the position to adopt the EU legislation and<br />
enforce a national legislation on food safety and control issue. The project is dealing with the<br />
food inspection system, the veterinary and phyto-sanitary border control, the functional<br />
relations between NFA and Ministries, the capacity of the inspection and laboratory network<br />
at central and regional level, chain of command in case of emergency situations and other<br />
relevant issues.<br />
Land property and reform<br />
In Albania, land ownership and its redistribution in different historic moments has been the<br />
main issue accompanying the whole process of development in agriculture. Modification of<br />
property structures has always been made under the pressure of social-political factors.<br />
During socialism era, there were only two prevailing forms of land property: State owned<br />
agricultural enterprises and agricultural cooperatives. The following table offers information<br />
about the rates of their size increase.<br />
Table 11: Average size of agricultural enterprises and cooperatives<br />
Year<br />
Agricultural<br />
enterprise<br />
No Average<br />
size (ha)<br />
Agricultural<br />
cooperatives<br />
No Average<br />
size (ha)<br />
1950 19 668 90 245<br />
1960 32 1801 1484 212<br />
1970 50 2218 551 824<br />
1980 56 2690 422 1260<br />
1985 68 2557 416 1281<br />
1987 77 2343 416 1272<br />
(Source: Expert’s calculation)<br />
Meat <strong>Sector</strong> Study, page 32
Meat <strong>Sector</strong> Study<br />
Referring to the table it results that during a 30-year period (1950 - 1980) both agricultural<br />
enterprises and co-ops experienced a large concentration of land under their property. In<br />
1980, average size of an agricultural enterprise mounted to 2690 ha and for agricultural coops<br />
the analogue figure was 1260 ha. By the end of ‘90s, all agricultural land belonged to<br />
492 agricultural units (both enterprises and co-ops).<br />
Under these conditions, approval of a law for agrarian reform was a necessity. First moment<br />
that marked the initiation of the process was the approval by the Albanian Parliament of the<br />
“Law on land”, No 7501, 19 July 1991. This law conveyed the first steps of an agrarian<br />
reform law. It involved the issues of land distribution, but constituted ate the same time a law<br />
for land property. It paved the way to a series of laws that aimed, on one hand, to complete<br />
land property rights and on the other hand, to regulate normal implementation of the reform.<br />
Another important problem emerging during the implementation of the agrarian reform is the<br />
attitude towards Law on Land and the ways of its implementation in different areas of country.<br />
Attitude towards Law has been accompanied with some problems related to its<br />
implementation.<br />
• Law non-implementation or lack of full knowledge of law: In this case, farmers have<br />
returned to their former property before the socialist system. This phenomenon is<br />
predominant in some areas, especially in north Albania; interesting to note that the<br />
today’s average farm size is not bigger in the north than in the south.<br />
• Partial law implementation or partial knowledge on law: Partial implementation of law<br />
means that farmers have returned to their formerly properties, but they have seized as<br />
much land as defined by law. This phenomenon is predominant in central Albania.<br />
• Correct implementation of law or full knowledge of law means that all households own<br />
land according to the Low and they also own official documents for all land plots.<br />
These phenomena have laid the foundation for different conflicts. Most prevailing conflicts<br />
are:<br />
• Conflicts between ex-owners regarding property boundaries<br />
• Conflicts between farmers who didn’t own land, but became land owners during the<br />
implementation of 1945’s Reform, and the farmers that claim this land because of in<br />
heritage<br />
• Conflicts between native farmers and the ones that settled in after 1945<br />
Regardless of the attitude towards law implementation, process of land privatization<br />
preconditioned the presence of a minimal size and considerably fragmented farm. This was<br />
caused by proportional division of land and the amount of land available in every village.<br />
Implementation of land reform brought about the following picture as regards the farm size.<br />
Around 58 % of farms are up to 1 ha, 30.1 % has 1-2 ha and only 11.8 have over 2 ha. –<br />
Experts mentioned that many people giving up their farming activities do not rent out officially<br />
their agricultural land and therefore the statistics look worse that reality; nevertheless the<br />
average farm size is too small in Albania.<br />
Mountain areas<br />
The Albanian agriculture in mountain areas has its specificities related to their special land,<br />
climatic, natural, historic and social conditions. As a result of these conditions, farms in these<br />
areas are smaller, product and input markets are more distant, rural infrastructure is weaker,<br />
development opportunities are more limited, economic and social development is delayed,<br />
schooling and education are less advanced and poverty more widespread. For these<br />
reasons, there are harder development challenges and the policy approaches to agricultural<br />
development may differ from those applied in lowland areas.<br />
Value Added Tax<br />
Meat <strong>Sector</strong> Study, page 33
Meat <strong>Sector</strong> Study<br />
Farmers in Albania are usually not involved in the VAT scheme; that means they are selling<br />
their produce without VAT to registered processors. These processors will have to add 20 %<br />
VAT at the end on top of their final product. The consumer has to pay a 20 % higher price if<br />
purchasing at official channels instead of the informal market.<br />
As the government has already realised that the informal market must be transferred fast into<br />
the formal sector, also this VAT problematic has to be solved. Small farmers in Austria can<br />
pay their taxes as a lump sum and in this case they are allowed to issue invoices with VAT<br />
but the farmers do not have to transfer this tax to the government; they can keep it. For the<br />
farmer the scheme is the same with and without VAT but for the buyer it is better as they can<br />
deduct the VAT paid to the small farmers from the amount they have to transfer later on to<br />
the government when selling the final product.<br />
According to NSDI a value-added tax reimbursement up to 6 % is on its way. (Source: NSDI<br />
2007-2013)<br />
V. MARKET AND TRADE<br />
Availability of products<br />
In Albania meat of cattle, small ruminants, pigs and poultry is available from local production.<br />
The produced quantities from slightly more than 300,000 farms are as follows:<br />
Table 12: Livestock production<br />
Description 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />
Live weight in 000 tons 112 114 118 123 129 133 137 158 141 143<br />
Cattle 63 62 64 65 66 68 69 83 66 66<br />
Sheep & goat 35 37 38 38 42 41 44 46 43 44<br />
Pig 10 10 11 12 13 15 15 16 16 16<br />
Poultry 4 4 6 8 9 9 10 13 16 17<br />
(Source: MAFCP; Statistical Yearbook 2009).<br />
Above figures show that there was a substantial higher level of production in 2007 than in the<br />
last two years. Over the last 10 years Albania showed an increase of almost 30 % in the total<br />
livestock production, especially in poultry and also in pigs.<br />
Supply chain<br />
In most countries the primary producers – the livestock farmers – are linked to the<br />
slaughterhouses and meat processing companies as producers sell their products to the<br />
processors. The situation is different in Albania. Not many slaughterhouses are in function as<br />
farmers, traders and butchers are not forced by the MAFCP and the National Food Authority<br />
to make use of them. Therefore slaughtering is done illegally in uncertified premises; in the<br />
best case it takes place in primitive slaughter points as it can be seen right next to the<br />
highway Tirana – Shkoder.<br />
Meat <strong>Sector</strong> Study, page 34
Meat <strong>Sector</strong> Study<br />
Furthermore meat prices are high even when the meat comes directly from the farm –<br />
compared to imported deep frozen meat from Brazil, Italy, Greece and other countries. For<br />
cheaper prices, reliable supply, standardized quality (sometimes of questionable quality) and<br />
easier logistics all meat processors in Albania use imported meat which comes into Albania<br />
by a few importers who have a monopoly on this activity. A few meat processors buy<br />
additionally Albanian fresh meat on the market to sell it in their own shops eventually as loss<br />
leader for their main product range based on imported deep frozen meat.<br />
Summarizing one could say that the Albanian agricultural sector produces almost enough<br />
meat of ruminants but has huge deficits in pork and chicken. The production will not increase<br />
substantially as long as the processing sector will not buy the locally produced meat. The<br />
processors industry will switch to local meat if cheap imports are no longer available and if<br />
Albanian producers can compete pricewise with the EU member states.<br />
The links between primary producers and first and second processing companies are in<br />
practice not in place; investments in slaughterhouses will be a first step to make products<br />
attractive for meat processors in respect to quantities and qualities.<br />
Consumption pattern<br />
As in Mediterranean countries, the staples in Albania are cereals, particularly bread and<br />
spaghetti, and starchy roots. Potatoes are widely used baked, fried and boiled, especially in<br />
lower income families. The common foods usually complementing the staples are dairy<br />
products (milk, butter and cheese), meats (bovine, mutton and goat meat), fats and oils,<br />
vegetables (tomatoes, eggplants). The types of dishes are mainly cooked vegetables with<br />
meat (cattle and pig meat), oven-baked or cooked potatoes, cooked beans and leeks, and<br />
cabbage which is consumed predominantly in winter. Tomato salads with cheese and olive<br />
oil, along with fried potatoes, eggplants, peppers and lettuce are eaten in the summer.<br />
There is no significant variation among regions or ethnic groups in staples and dishes. The<br />
meat consumption is almost at the same level in all Albania. However, there is a higher<br />
consumption of pork in the catholic areas (Mirdita, Lezha, Shkodra and Burrel), compared<br />
with the rest of Albania and a higher consumption of mutton in the southern part of Albania<br />
(Përmet, Tepelena and Vlora).<br />
In Albania there are huge differences between urban and rural areas. In rural areas, because<br />
Albanian farms are subsistence farms with low cash revenues, the diet is based on<br />
consumption of fresh farm products such as tomatoes, lettuce, eggplants, cabbage, peppers<br />
and dairy products (fresh milk, butter and cheese). In urban areas the population is far more<br />
dependent upon imported food supplies, not only in respect to meat but also cereals,<br />
vegetables and oil.<br />
Between 1988 and 2002 the consumption of meat, fish, milk and eggs more than doubled<br />
and the meat consumption is still growing as seen in the next table.<br />
Table 13: Meat consumption<br />
Annual human consumption of certain agricultural products (kg/head)<br />
2002 2005 2007<br />
Total meat (without offal) 19,3 33,4 43,0<br />
of which: - Beef & veal 13,7 17,9 17,8<br />
- Pork 0,2 0,5 3,1<br />
- Poultry 3,0 8,5 7,9<br />
- Sheep & goats 1,9 1,7 2,0<br />
Meat <strong>Sector</strong> Study, page 35
Meat <strong>Sector</strong> Study<br />
(Source: INSTAT (Living Standard Measurement Survey (LSMS), 2002, 2005 and Household<br />
Budget Survey (HBS) 2006-2007)<br />
This table gives details about the various types of meat consumption but does not explain the<br />
remaining rest which was around 10 kg in 2007; most likely the given figures are based on<br />
local production and the missing difference is covered by imports of live animals and meat,<br />
often in deep frozen form. (See also below Table 13)<br />
As comparison the total meat consumption (including poultry) in Austria was 2007 100.2 kg /<br />
capita and 2008 98.4 kg / capita (Source: http://www.ama-marketing.at/home/groups/7/<br />
Pro_Kopf_Verbrauch_Fleisch.pdf)<br />
Actually the meat consumption is low, even compared to other countries on the Western<br />
Balkans. One important reason for low meat consumption is the high cost of meat products<br />
in comparison to other products; at the same time that explains why the consumption of<br />
relatively cheap poultry meat is growing so fast.<br />
The sheep and goat meat is expensive, mainly because keeping of small ruminants is not at<br />
the state of the art; breeding is not consequently done, fertility and reproduction rate is low<br />
and the slaughtering weight of lambs is too low; often just 11 kg – especially before religious<br />
holidays Furthermore as a result of migration – especially of young people - into the cities,<br />
the interest in keeping small ruminants is declining. Successfully pilot projects - as presently<br />
implemented by UNDP are supporting the establishment of a food chain for lamb meat – will<br />
present new ways of income generating opportunities trough lamb meat. Traditionally on the<br />
Western Balkans eat a lot of sheep and goat meat. Having in mind not so much the EU<br />
figures of average sheep consumption of 2.3 kg/capita (2009) but more the consumption<br />
habits in neighbouring Greece where the average sheep meat consumption reached 7.4 kg /<br />
capita in 2007, there is potential for further increase.<br />
The outlook for meat producers is very good if one assumes that the Albanian meat<br />
consumption will get closer to the Austrian one; that means the consumption might more<br />
than double in the future.<br />
Legal framework for trade<br />
Albania became in 2000 a member of the World Trade Organisation (WTO) and in 2007 it<br />
entered the Central European Free Trade Agreement (CEFTA). Regarding the EU accession<br />
Albania is a potential candidate country and submitted its application for EU membership on<br />
28 April 2009.<br />
The European Union generally allows imports of fresh meat and meat products into the<br />
European Union if the veterinary certification is in place which is based on the recognition of<br />
the competent authority of the non-EU country by the Directorate-General for Health and<br />
Consumer Protection. This formal recognition of the reliability of the competent authority is a<br />
pre-requisite for the country to be eligible and authorized for export to the European Union.<br />
Legally legitimate and adequately empowered authorities in the exporting country must<br />
ensure credible inspection and controls throughout the production chain, which cover all<br />
relevant aspects of hygiene, animal health and public health.<br />
For meat and meat products from all species, countries of origin must be on a positive list of<br />
eligible countries for the relevant product. The eligibility criteria are:<br />
• Exporting countries must have a competent veterinary authority which is responsible<br />
throughout the food chain. The Authorities must be empowered, structured and<br />
Meat <strong>Sector</strong> Study, page 36
Meat <strong>Sector</strong> Study<br />
resourced to implement effective inspection and guarantee credible certification of the<br />
relevant veterinary and general hygiene conditions.<br />
• The country or region of origin must fulfil the relevant animal health standards. This<br />
implies that the country should be a member of the World Organisation for Animal<br />
Health (OIE) and should meet that organisation’s standards and reporting obligations.<br />
Adequate veterinary services must ensure effective enforcement of all necessary<br />
health controls.<br />
• The national authorities must also guarantee that the relevant hygiene and public<br />
health requirements are met. The hygiene legislation contains specific requirements on<br />
the structure of establishments, equipment and operational processes for slaughter,<br />
cutting, storage and handling of meat. These provisions are aimed at ensuring high<br />
standards and at preventing any contamination of the product during processing.<br />
• A monitoring system must be in place to verify compliance with EU requirements on<br />
residues of veterinary medicines, pesticides and contaminants.<br />
• A suitable monitoring programme must be designed by the competent authority and<br />
submitted to the European Commission for initial approval and yearly renewal.<br />
• Imports are only authorised from approved establishments (e.g. slaughterhouses,<br />
cutting plants, game handling establishments, cold stores, meat processing plants),<br />
which have been inspected by the competent authority of the exporting country and<br />
found to meet EU requirements. The authority provides the necessary guarantees and<br />
is obliged to carry out regular inspections.<br />
• For the import of meat from bovine, ovine or caprine animal species (cattle, sheep and<br />
goats), exporting countries have to apply for determination of their BSE status. This<br />
status is based on a risk assessment and is linked to specific BSE-related import<br />
conditions.<br />
• An inspection by the Commission’s Food and Veterinary Office is necessary to confirm<br />
compliance with the above requirements. Such an inspection mission is the basis of<br />
establishing confidence between the EU Commission and the competent authority of<br />
the exporting country.<br />
Having all these requirements in mind it is clear that without a well established National Food<br />
Authority Albania will continue to face this trade barrier and will not be able to export meat.<br />
Agro-food trade balance<br />
The table below shows that an increased international trade also bears some risks. On one<br />
side Albania was able to export more products than in the past but also many more products<br />
came into the country due to missing or reduces import tariffs.<br />
Table 14: Agro-food import and export<br />
Trade Units 2005 2006 2007 2008<br />
Agro-food trade mill. EUR 428 502 735 651<br />
Agro-food exports mill. EUR 46 54 76 60<br />
Agro-food imports mill. EUR 382 448 659 591<br />
Agro-food trade balance mill. EUR -335 -394 -584 -531<br />
Share of agro-food trade<br />
in:<br />
- Total exports % 11 11 10 9<br />
- Total imports % 89 89 90 91<br />
Meat <strong>Sector</strong> Study, page 37
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Note: Agro-food trade according to Combine Nomenclature of Custom Tariffs (CNCT).<br />
(Source: General Directory of Customs, Albania)<br />
Table 15: Import of agricultural and food products by quantity and value<br />
Import of agricultural and food products<br />
Unit 2007 2008 2007 in 000 LEK 2008 in 000 LEK<br />
Livestock 7.391.160 9.023.400<br />
cattle 000 head 52 64 2.276.366 2.479.392<br />
poultry 000 head 4.476 5.574 210.316 268.586<br />
pigs 000 head 31 56 387.082 672.386<br />
equidae 000 head 0 0 9.300 670<br />
other live animals 000 head 92 113 48.794 72.005<br />
beef Ton 6.705 5.377 858.203 846.315<br />
pork Ton 15.139 11.529 1.796.132 1.594.187<br />
mutton Ton 596 599 80.163 90.697<br />
poultry meat Ton 14.968 19.295 1.515.161 2.203.047<br />
giblets Ton 1.002 1.805 145.318 670.778<br />
stomach animals Ton<br />
000<br />
240 366 47.273 91.544<br />
eggs<br />
pieces 81 91 10.109 21.124<br />
honey Ton 18 27 6.943 12.669<br />
If one assumes that the 64,000 heads of imported cattle are used for meat and if each cattle<br />
has around 380 kg meat, than that would result in 24,320 tons. Adding now the imported<br />
beef of 5,377 tons, the total import would come to 29,697 tons. This total import figure<br />
divided by 3 million inhabitants makes an extra 10 kg per capita and that figure could explain<br />
the missing difference in Table 11: Meat consumption (see above).<br />
Table 16: Export of agricultural and food products by quantity and value<br />
Export of agricultural and food products<br />
Unit 2007 2008 2007 in 000 LEK 2008 in 000 LEK<br />
Livestock 374.585 1.043.400<br />
cattle 000 head<br />
poultry 000 head<br />
pigs 000 head<br />
equidae 000 head<br />
other live animals 000 head 78 79 73.817 63.771<br />
beef Ton<br />
pork Ton<br />
mutton Ton<br />
poultry meat Ton 1 5 116 1.417<br />
giblets Ton 47 23 33.389 40.112<br />
stomach animals Ton<br />
000<br />
229 1.235 49.338 615.683<br />
eggs<br />
pieces 33.309 46.743 217.925 321.716<br />
honey Ton - 5 - 701<br />
Meat <strong>Sector</strong> Study, page 38
Meat <strong>Sector</strong> Study<br />
The government will have to create better export opportunities as the gap is getting much too<br />
wide and there are no more opportunities to stop the imports.<br />
VI. LEVEL OF ATTAINMENT OF RELEVANT EU STANDARDS<br />
This chapter deals with occupational health and safety, environmental issues, food and feed<br />
safety, animal health, animal welfare.<br />
Occupational health and safety<br />
In the staff working document entitled “Albania 2009 Progress Report” it is mentioned that<br />
there has been progress in the area of health and safety at work as the government adopted<br />
in May 2009 the National Strategy for Occupational Health and Safety 2009-2013 and its<br />
accompanying action plan. The Occupational Health and Safety section of the Ministry of<br />
Labour, Social Affairs and Equal Opportunities (MLSAE) was upgraded and entrusted with<br />
the implementation of the strategy and action plan. An internal audit department was<br />
established in the State Labour Inspectorate (SLI) in April 2009. The first of the 24 local<br />
inspectorates planned to strengthen the SLI was established in April 2009.<br />
The Albanian Law No 10138 dated 11.05.2009 for the Public Health passed recently the<br />
parliament but enforcement of occupational health and safety remains poor and the number<br />
of accidents at the workplace is high, particularly in the construction, mining and mineral<br />
processing sectors. The labour inspection system does not cover the agricultural sector and<br />
it becomes clear that the occupational health and safety requires substantial improvements,<br />
especially in slaughterhouses and Albania has to consider these issues for farmers and farm<br />
workers.<br />
Environment<br />
Regarding environmental standards the “Albania 2009 Progress Report” complains that there<br />
has been limited progress in the area of horizontal legislation. Albania adopted legislation in<br />
January 2009 to ratify the Protocol on Control of Emissions of Nitrogen Oxides or their<br />
Transboundary Fluxes to the 1979 Geneva Convention on Long-Range Transboundary Air<br />
Pollution. Two public hearings were held with regard to the project for the construction of a<br />
thermal power plant in the Durres area. Notifications of public hearings were published on<br />
the website of the Ministry of the Environment, Forest and Water Administration (MEFWA),<br />
the website of the Aarhus Centre and local newspapers. However, the new draft Law on<br />
Environmental Protection, which incorporates a number of important Directives such as IPPC,<br />
LCP, Seveso II, public participation and the Water Framework Directive, has not yet been<br />
adopted. The new draft law on Environmental Impact Assessment is also pending adoption.<br />
No progress can be reported as regards air quality, environmental noise and just some<br />
progress in the area of waste management. The rehabilitation of toxic hot spots progressed<br />
and 35 new untreated hot spots have been identified. The construction of new landfills is<br />
underway. However, legislative development is lagging behind. A strategy for waste<br />
management has not yet been established. Uncontrolled dumping and burning of waste still<br />
persists and is particularly acute in rural areas. Substantial efforts are required to reduce<br />
waste generation and promote recycling.<br />
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There has been some progress as regards water quality. Two wastewater treatment plants<br />
became operational, work on another one was completed and three more are under<br />
construction. However, surface waters are still affected by uncontrolled discharges of solid<br />
waste. The national strategy for water supply and sewerage has not been adopted.<br />
Implementing legislation and action plans for legislative approximation to the Water<br />
Framework Directive and the Nitrates and Urban Waste Water Directives are pending<br />
adoption.<br />
There was some progress on nature protection. The total coverage of protected areas<br />
increased to 12.58 % of the territory with the designation of the ‘Bredhi Hotoves-Dangelli’<br />
ecosystem as a national park. In January 2009 the government approved a decree on the<br />
criteria for the establishment of the biodiversity inventory and monitoring network.<br />
There was no progress as regards industrial pollution control and risk management. No<br />
developments can be reported in the area of chemicals and genetically modified organisms.<br />
Efforts are required to enhance inter-ministerial coordination to monitor the use of chemicals<br />
present on the market. There is no central register of chemicals and genetically modified<br />
organisms.<br />
Efforts continue to be required to strengthen the administrative capacity of all institutions<br />
involved in environmental policy making and to implement the 2008 cross-cutting strategy for<br />
the environment. Inter-institutional cooperation and coordination remain poor. Additional<br />
monitoring and inspection capacity continue to be required at regional level. Overall, there<br />
have been some positive legislative developments but implementation and enforcement<br />
remain weak. Preparations in the field of environment are advancing slowly but remain at an<br />
early stage for a number of sectors.<br />
Summarising one might say that there are no rules and regulations in place to improve<br />
environmental standards on farms in Albania. The CAP ensures that its rules are compatible<br />
with environmental requirements and that CAP measures promote the development of<br />
agricultural practices preserving the environment and safeguarding the countryside. Farmers<br />
are encouraged to continue playing a positive role in the maintenance of the countryside and<br />
the environment.<br />
This is achieved by a) targeting aid at rural development measures promoting<br />
environmentally sustainable farming practices, like agri-environment schemes and b)<br />
enhancing compliance with environmental laws by sanctioning the non-respect for these laws<br />
by farmers through a reduction in support payments from the CAP.<br />
Especially with regard to the storage of manure and slurry the level of environment protection<br />
is very low in Albania. Several visited farms had not adequate storage places for manure or<br />
slurry. First of all creating awareness on this issue by information and training will be<br />
necessary. But also on the processing side the handling of solid and liquid waste is in a poor<br />
state as there is usually no waste disposal system in place; leftovers are dumped into illegal<br />
landfills and run into nearby rivers. Finally it must be mentioned that Albania has no<br />
rendering or incineration plant!<br />
Food safety<br />
For the time being the national food hygiene laws and regulations in the Albanian meat<br />
sector are defined by the following laws and orders:<br />
• Law No 9308 from 4 th November 2004 “For the veterinary service and inspectorate”<br />
(Mbi sherbimin dhe inspektoriatin veterinar) which regulates hygienic conditions and<br />
food safety aspects;<br />
Meat <strong>Sector</strong> Study, page 40
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• Order of Minister No 292 from 12 th June 2006 „Sanitary conditions in fresh meat trade”<br />
(Mbi kushtet shendetesore per vendosjen ne treg te mishit te fresket)<br />
• Law No.9863 from 28 th January 2008 “Food law” (Per ushqimin) which deals with the<br />
norms and general directives for hygiene and food safety and feed for animals; this law<br />
is harmonized with the EU Regulation 178/2002 and has set a 5-year transition period<br />
for the full implementation of all its provisions;<br />
• Different internal orders and regulations from the ministry;<br />
• Law No 9135 from 11 th September 2003, “For the consumer protection” which defines<br />
the consumer‘s right, relationship between consumers and producers, shoppers,<br />
suppliers, service providers, and institutions of the market control, and standardization.<br />
The objective of the law is protection of the health, environment, assurance of the life,<br />
and the consumer’s right.<br />
The MAFCP is working within the framework of CARDS 2005 to produce a new order of<br />
minister on food safety for meat sector which will be composed according to the following EC<br />
regulations:<br />
• Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28<br />
January2002 laying down the general principles and requirements of food law,<br />
establishing the European Food Safety Authority and laying down procedures in<br />
matters of food safety<br />
• Regulation (EC) No 852/2004 of the European Parliament and of the Council of 29<br />
April 2004 on the hygiene of foodstuffs<br />
• Regulation (EC) No 853/2004 of the European Parliament and of the Council of 29<br />
April 2004 laying down specific hygiene rules for food of animal origin<br />
• Regulation (EC) No 854/2004 of the European Parliament and of the Council of 29<br />
April 2004 laying down specific rules for the organisation of official controls on products<br />
of animal origin intended for human consumption<br />
• Regulation (EC) No 882/2004 of the European Parliament and of the Council of 29<br />
April 2004 on official controls performed to ensure the verification of compliance with<br />
feed and food law, animal health and animal welfare rules<br />
The new Albanian formulation will reflect all the mentioned EC regulations, the GOA will<br />
transpose relevant EU legislation in national law which should enter in force by end of 2010.<br />
According to the “Albania 2009 Progress Report” there has been limited progress in the area<br />
of food safety and veterinary and phyto-sanitary policy. The National Food Authority was<br />
established, but it is not yet operational due to staffing problems (which is still true in May<br />
2010). In the food sector implementing legislation has been adopted mainly in the areas of<br />
import requirements for animal products (certificates), flavourings and food for particular<br />
nutritional uses. Some progress can be reported on laboratory capacity, particularly as<br />
regards histamine and residues. However, legal limits for microbiological contamination of<br />
raw milk are still significantly less stringent than EU standards.<br />
A very limited amount of legislation was adopted in the veterinary sector. The identification of<br />
bovines is not yet finalised and deficiencies in the registration of their movements jeopardise<br />
the utility of the current database. The current registration of small ruminants is not used for<br />
epidemiological purposes. No progress can be reported in the animal welfare sector. The<br />
legislative framework remained substantially unchanged in the phyto-sanitary sector. Only a<br />
few legislative acts were adopted, mainly in the area of plant protection products. Overall,<br />
there has been little progress in the areas of food safety and veterinary and phyto-sanitary<br />
policy. The legal framework improved, but compliance with EU standards remains poor.<br />
There has been some progress in the area of fisheries. ...<br />
Animal health and welfare<br />
Meat <strong>Sector</strong> Study, page 41
Meat <strong>Sector</strong> Study<br />
After the 1990s, the transition from big state enterprises to small home-based ones created<br />
favourable premises for the introduction and persistence of different pathogens and for the<br />
change of the general epidemiological situation in the country, as the risk for public health<br />
from zoonotic diseases increased. Moreover, the insufficient control of animal movement has<br />
brought about a rapid increase of animal disease prevalence in the whole country. Albania is<br />
currently free from foot and mouth disease, cattle contagious pleuromonia, small ruminants’<br />
pest, pig vesicular disease, as well as African swine fever.<br />
Some diseases included in the list of the World Organisation of Animal Health are present in<br />
the country and cause important economic losses to farmers, such as: Newcastle disease,<br />
classical swine fever, cattle anaplasmosis, cattle babesiosis, anthrax, tuberculosis, cattle<br />
brucellosis, brucellosis melitensis, contagious agalaxis, varoatosis in bees etc. As a result,<br />
human infection cases from zoonotic diseases have increased: about 400 cases of<br />
salmonelosis, about 700 cases of brucellosis, about 100 cases of leismanosis, and 60 cases<br />
of anthrax.<br />
The screening of animals for the above infections on more than a third of the total animal<br />
population (brucellosis of small ruminants, cattle tuberculosis) has shown a prevalence from<br />
0.64-5% for brucellosis melitensis and of 0.19% for tuberculosis. For this reason, even the<br />
control of these infections is very difficult.<br />
National programmes are prepared and implemented by the veterinary service for the control<br />
of animal diseases, especially for zoonotic diseases with risks also for humans. The<br />
veterinary budget is used for the control of diseases like tuberculosis, brucellosis, anthrax,<br />
and classical swine fever; the national programmes for the monitoring of residues, the<br />
monitoring of water and molluscs, and the animal identification and livestock farm registration<br />
system. About 10% of the total veterinary budget is used for emergencies (such as outbreak<br />
and elimination of illnesses, avian influenza). - All other illnesses present in Albania, whether<br />
infectious or parasitic of a non-endemic character are covered by the farmers themselves.<br />
Table ??: Status of main infectious diseases that affect animal health in Albania<br />
Disease Occurrence, Surveillance and Control<br />
Anthrax Occurs regularly. Control policy is to vaccinate animals in<br />
villages where disease has been confirmed and prophylactic<br />
vaccination in villages that have been classified as historical<br />
foci of disease.<br />
Bovine tuberculosis Could be increasing in frequency. Partial annual screening of<br />
cattle and removal of reactors<br />
Brucellosis in cattle Appears to be increasing in frequency, definitive diagnoses of<br />
Br. melitensis, Br. abortus not confirmed. Partial screening of<br />
cattle and removal of reactors, vaccination of young stock to<br />
Brucellosis in small<br />
ruminants<br />
be introduced<br />
Widespread and present in 22 districts. Partial screening of<br />
small ruminants and removal of reactors combined with<br />
vaccination of young replacement stock.<br />
Classical Swine Fever Reported since 1996 but believed to be enzootically<br />
established in small backyard pig herds in north Albania<br />
Newcastle disease Appear to occur each year causing serious losses in village<br />
backyard poultry flocks. Active surveillance implemented by<br />
owners in industrial flocks.<br />
Highly Pathogenic Avian<br />
Influenza<br />
Last reported in 2006, partial active surveillance implemented.<br />
Foot and mouth disease Last reported in 1996<br />
Meat <strong>Sector</strong> Study, page 42
Meat <strong>Sector</strong> Study<br />
Rabies Last reported in 2006, active surveillance in wildlife (foxes,<br />
wolfs and bats)<br />
Contagious bovine<br />
Last reported in 1933<br />
pleuropneumonia<br />
Sheep and goat pox Last reported in 1934<br />
Rinderpest Last reported in 1934<br />
Source: European Union – Albania subcommittee on agriculture and fisheries, Tirana, 2 nd<br />
March 2010<br />
The competent authority (AHPPD) for animal health covering the whole of the Republic of<br />
Albania approved the contingency plans for following diseases in 2008 and 2009:<br />
• Contingency plan of CSF disease is updated<br />
• Contingency plan of ND disease is updated<br />
• Contingency plan of AI disease is approved<br />
• Contingency plan of Rabies disease is approved<br />
• Contingency plan of FMD is update<br />
Source: European Union – Albania subcommittee on agriculture and fisheries, Tirana,<br />
2 nd March 2010<br />
Having visited several livestock farms in Albania it is obvious that Animal health and welfare<br />
issues are not taken serious by most farmers; there are many stables with no or too few<br />
windows, manure is not removed properly, animals are often not registered and not<br />
vaccinates and so on.<br />
The European Union intends to protect and raise the health status and condition of animals<br />
in the Community, in particular food-producing animals, whilst permitting intra-Community<br />
trade and imports of animals and animal products in accordance with the appropriate health<br />
standards and international obligations.<br />
• Preventive health measures on intra-community trade and imports of:<br />
• live animals<br />
• semen, ova and embryos<br />
• products of animal origin<br />
• Community legislation on animal diseases:<br />
• new Animal Health Strategy to improve the prevention and control of animal<br />
disease in the EU<br />
• control measures, to be taken as soon as the presence of a disease is suspected<br />
• eradication and monitoring programmes, for the diseases that are already within the<br />
Community<br />
• EU financial contribution<br />
• Other activities:<br />
• Community Veterinary Emergency Team<br />
• identification measures, to guarantee the traceability of the animals<br />
According to the European Union animals are sentient beings. The general aim is to ensure<br />
that animals need not endure avoidable pain or suffering and obliges the owner / keeper of<br />
animals to respect minimum welfare requirements.<br />
• Community Action Plan on the Protection and Welfare of Animals 2006-2010<br />
• EU legislation on the protection of animals<br />
• on the farm (European Convention for the Protection of Animals kept for Farming<br />
Purposes, protection of farmed animals (of chickens kept for meat production, of<br />
Meat <strong>Sector</strong> Study, page 43
Meat <strong>Sector</strong> Study<br />
laying hens, of pigs, of calves intended for slaughter and the keeping of wild<br />
animals in zoos)<br />
• during transport (community standards on staging points)<br />
• at time of slaughter or killing (European Convention on the protection of animals at<br />
the time of slaughter, protection of animals at the time of killing, protection of<br />
animals used for experimental purposes)<br />
• Related international issues<br />
• International Animal Welfare Issues<br />
• Council of Europe<br />
• OIE<br />
• Other activities like implementation control of legislation or scientific advice<br />
Since the beginning of 2010 an EU funded project “Improving the Consumer Protection<br />
against Zoonotic Diseases in Albania” (EUROPEAID/128304/C/SER/AL) is going on and is<br />
supporting beside many other aspects also the area of veterinary legislation to assist MAFCP<br />
in updating of the veterinary law taking into account the new legal and institutional framework<br />
of food safety in Albania.<br />
In Albania the legislation on animal health and welfare aspects as well as disease control is<br />
in place but often not enforced; for example animal movements are not controlled at all.<br />
However, very often policies remain insufficiently implemented and insufficiently enforced<br />
mainly due to a lack of advocacy groups and due to weaknesses of public administration. It<br />
seems that political ambitions are much stronger than what public administration can<br />
manage. (Source: SKRELI, 2007)<br />
Official statements are not available as the FVO had no missions to Albania in relation to<br />
animal welfare since 2004.<br />
Competent authorities<br />
The main organisations (competent authorities) in charge of control for food and feed safety,<br />
animal health and animal welfare in Albania is the Ministry of Agriculture, Food and<br />
Consumer Protection. For the time being there are the following institutions involved on<br />
regional and local levels involved:<br />
• Regional Directory of Agriculture, Food and Consumer Protection<br />
• Regional Directorate of Public Health<br />
• Local Veterinary Office<br />
Furthermore there are several laboratories dealing with the safety issues such as<br />
• National Reference Laboratory, Food Safety & Veterinary Institute<br />
• National Reference Laboratory, Public Health Institute<br />
• Regional Veterinary Laboratories<br />
• Regional Food Laboratories<br />
• Regional Public Health Laboratories<br />
Actually the NFA is in the process of getting active by hiring office space, staff and by taking<br />
over several functions which have been under several authorities in the past.<br />
The below chart demonstrates how the organisation of food safety, animal health and plant<br />
protection will look alike by the end of 2011; the upcoming 12 regional Food and Plant<br />
Protection laboratories will carry out all chemical and physical analyses on food of animal<br />
and non – animal origin.<br />
Meat <strong>Sector</strong> Study, page 44
SITUATION ON 2011<br />
MINISTRY OF EDUCATION<br />
AND SCIENCE<br />
(MoES)<br />
PLANT PROTECTION<br />
DEPARTEMENT(Albanian<br />
Agriculture University)<br />
MINISTRY OF AGRICULTURE,<br />
FOOD AND CONSUMER<br />
PROTECTION<br />
(MoAFCP)<br />
IFSV<br />
11 VETERINARY<br />
LABORATORIES<br />
LEGEND<br />
IFSV – INSTITUTE OF FOOD SAFETY AND VETERINARY<br />
NFA – NATIONAL FOOD AUTHORITY<br />
BIP- BORDER INSPECTION POST<br />
-MoAFCP<br />
-MoES<br />
DIRECTORATE OF FOOD<br />
SAFETY AND CONSUMER<br />
PROTECTION<br />
(Policy and legislacion)<br />
GENERAL DIRECTORATE<br />
OF FOOD SAFETY AND<br />
CONSUMER PROTECTION<br />
DIRECTORATE OF ANIMAL<br />
HEALTH AND PLANT<br />
PROTECTION<br />
(Still inspection)<br />
ANIMAL HEALTH<br />
SECTOR<br />
PLANT<br />
PROTECTION<br />
SECTOR<br />
12 FOOD<br />
LABORATORIES<br />
NFA<br />
GENERAL<br />
DIRECTORATE<br />
12 REGIONAL<br />
DIRECTORATES<br />
OF NFA<br />
9 BIP<br />
Meat <strong>Sector</strong> Study<br />
FOOD SAFETY<br />
INSPECTORATE<br />
ANIMAL HEALTH<br />
INSPECTORATE<br />
PLANT<br />
PROTECTION<br />
INSPECTORATE<br />
(Source: EC Health and Consumers Directorate-General, Directorate F - Food and<br />
Veterinary Office, DG (SANCO) /8127/2009 - CP Pre – Draft, Country Profile of Albania on<br />
Food and Feed Safety, Animal Health, Animal Welfare and Plant Health; 2009)<br />
National Strategy for Development and Integration (NSDI) 2007-2013<br />
Albania shows a low level of attainment of relevant EU standards. In the National Strategy for<br />
Development and Integration (NSDI) 2007-2013 the European Commission is quoted<br />
regarding progress against the accession criteria such as European standards: On fulfilling<br />
the European standards and establishing administrative and institutional structures to<br />
guarantee the implementation of the acquis communautaire, the creation of new structures to<br />
co-ordinate the substance of EU reforms and manage the resources to implement them is<br />
appreciated.<br />
The NSDI continues with strategic priorities and goals and states that the public programmes<br />
that support agricultural and rural development will be consolidated in accordance with EU<br />
practices, with the aim to support sustainable development in this area, and the Payments<br />
Agency will be established in the long term. Modern systems of food safety will be introduced<br />
gradually and the institutions that guarantee its standards will be consolidated.<br />
The challenges in agriculture are described as follows: The agricultural sector suffers from<br />
the small size of farms and the fragmentation of farm land, which is a barrier to production<br />
and marketing. This could be addressed through the development of a system of collection<br />
points and wholesale markets. Product competitiveness is low, as the cost is relatively high<br />
and output quality is low, which is caused primarily by the inadequate level of technologies<br />
and agricultural knowledge but also by the low level of farmer organisation, the relative lack<br />
of market information and the underdeveloped commercial infrastructure.<br />
Meat <strong>Sector</strong> Study, page 45
Meat <strong>Sector</strong> Study<br />
Currently, export opportunities for agricultural and agro-industrial products are very<br />
constrained as a result of the low level of agricultural and agro-processing industrial<br />
production; the lack of trade facilitations; the low food safety standards; and the weak<br />
competitiveness. Meeting the veterinary, phyto-sanitary and food security conditions of the<br />
SAA and Interim Agreement will be a difficult challenge. The standards to be achieved relate<br />
to a very broad area covering production, marketing, safety and quality certificate conditions<br />
for goods and services, processing, and inspection and control services.<br />
According to NSDI the agricultural policy of the GOA has the following strategic priorities:<br />
• Increase financial support<br />
• Improve the management, irrigation and drainage of land<br />
• Improve the marketing of agricultural and agro-processing products<br />
• Improve the level and quality of technologies, information and knowledge applied by<br />
farmers and agro-processing<br />
• Increase the quality and safety of agricultural and agro-processing products<br />
Agriculture and fisheries<br />
Some progress was achieved in the area of agriculture and rural development policy. The<br />
Agency for Agriculture and Rural Development was set up as the paying agency to manage<br />
direct support to agriculture and rural areas. The Agency has 86 staff and operates in all 12<br />
regions of the country. It provides a good starting point towards the establishment of an<br />
IPARD Agency. Preparations for IPARD advanced with the appointment of the prospective<br />
Managing Authority in June 2009. However, the Rural Development Strategy will require<br />
substantial improvements to serve as a basis for the IPARD programme.<br />
The 2009 budget for the direct support scheme remains stable at € 7 million. Direct support<br />
to farmers resulted in an increase in plantations of permanent crops such as fruit, olive and<br />
citrus trees and vineyards. Other direct support measures covered, among other things, drip<br />
irrigation, organic certification, mushroom culture and snail breeding. There have been efforts<br />
to improve quality and marketing overall. ... The Agriculture Information Centres received<br />
additional material resources and organised promotion activities. However, land<br />
fragmentation continues to hamper efficient farming and results in low productivity and<br />
incomes. Uncertainties about property rights hinder the development of a functioning land<br />
market. Structural weaknesses such as poor infrastructure and marketing systems, lack of<br />
cooperation between producers and business sectors and insufficient knowledge about food<br />
quality and safety standards hold back the development of the agricultural sector. The share<br />
of the total budget allocated to agriculture remains small. The trade deficit in agricultural<br />
products continued to increase. Overall, the agricultural sector remains weak. It lacks<br />
competitiveness and has difficulties facing competition from imported goods.<br />
Farm level<br />
Farmers often do not respect Albanian standards and regulations (for example environmental<br />
or occupational safety) and the authorities in charge often do not enforce them properly. Also<br />
the implementation of quality standards leave some room for improvements.<br />
Common EU standards such as the Good Agricultural Practice (GAP) have no equivalent yet<br />
in the Albanian law.<br />
Processing level<br />
Meat <strong>Sector</strong> Study, page 46
Meat <strong>Sector</strong> Study<br />
The performance of Albania on the areas of quality, hygiene, and food safety at farm and<br />
slaughterhouse level leaves room for substantial improvements. The situation is better with<br />
the meat processing companies, even if none of them has an EU approval for exports (EU<br />
export certificates).<br />
The GOA is aware of the requirements of the European Union and of the necessity to<br />
transpose EU legislation in national law. This has been partly done but even in cases where<br />
it was done the enforcement of these laws does not take place or just in a limited amount.<br />
VII. PAST TRENDS AND FUTURE DEVELOPMENTS IN TERMS OF INVESTMENT<br />
Past trends<br />
In former days the agricultural policy was not very much oriented towards meat production<br />
and processing as the average meat consumption was around 20 kg per year and capita.<br />
Keeping of private livestock was forbidden and all facilities like livestock farms,<br />
slaughterhouses and meat processing plants have been state-owned. After the collapse of<br />
the system none of the slaughterhouses and meat processors continued to operate.<br />
Actual situation<br />
On the farm level there are two categories of farmers; the subsistence farmer who was not<br />
investing in the past and who will not invest in the future simply because he has not the<br />
financial means to do so. Repair work is done to keep the small farms running but for<br />
additional, more future oriented investments there are no funds available. (This might also be<br />
the case for investments under IPARD measures for which the pre-financing capacity is not<br />
in place.)<br />
The other group of farmers are the commercial ones with more than 20 cattle heads or<br />
10,000 chickens, etc.; these farmers have the funds and invest in improved production<br />
facilities; especially the capital intensive poultry farms have invested substantial amounts of<br />
money and all these rather commercial farms will also apply for IPARD measures. The trend<br />
was to get bigger units and this will continue, eventually with investments in vertical<br />
integration such as fodder production (own feed mills) and / or slaughtering lines (and also<br />
steps towards better market access which could mean own shops). So far both groups have<br />
not invested in manure storage or environmental issues.<br />
Whereas there are no data available on the farm sector, some key figures could be found<br />
regarding the agroindustry in general and their investments.<br />
Table 18: Investments in Albanian agroindustry<br />
Description 2000 2005 2006 2007 2008 2009<br />
Agroindustry Investiment Mln. Lek 898 2917 2045 3052 2063 612<br />
Number of enterprises 1844 2060 2053 2040 2117 2081<br />
Number of meat processing enterprises 62 59 57 69 75 65<br />
Investments of meat processing sector Mln.Lek 121 426 170 119 174 35<br />
Number of employees 9076 9865 9995 10293 10919 10262<br />
Value of products (price of 2006) Mln. Lek 27990 42790 46431 47970 51353 51693<br />
(Source: MAFCP; Statistical Yearbook 2009)<br />
Meat <strong>Sector</strong> Study, page 47
Meat <strong>Sector</strong> Study<br />
The investments of the meat processing enterprises are quite balanced over the years, in<br />
sharp contrast to the remaining agroindustry.<br />
The processing sector can also be divided into two groups; the non-performing<br />
slaughterhouses which are hardly gaining any profit out of their (too limited) operations;<br />
refurbishment of existing poor slaughterhouse facilities would be too expensive and therefore<br />
the trend will go towards Greenfield investments, especially when supported by IPARD<br />
measures.<br />
The other sub-group are the meat processing plants which do economically fine, especially<br />
when thinking on the 8 big ones which control around 80 % of the market. The past and<br />
future trend goes towards improving the technology and fulfilling standards. When<br />
interviewed the management of these processing plants mentioned the following envisaged<br />
investments:<br />
• Capacity expansion;<br />
• Enlargement of working places;<br />
• Refrigerating and chilling rooms;<br />
• Air conditioning systems in working place;<br />
• Certification according to International Quality Standards to get in line with norms<br />
required by EU such as HACCP system;<br />
• Sewage water plant, treatment of water systems;<br />
• Complete new company as a Greenfield investment.<br />
So far both processing groups have not invested in manure storage or environment<br />
protection.<br />
As Albania has no rendering plant it seems logical that investors will show up as soon as the<br />
veterinary inspections are functioning and IPARD funds available.<br />
It might be assumed that especially the meat processing plants do some not registered<br />
businesses which would make it more difficult to speak officially about investments.<br />
The reaction on the announced IPARD programme was very positive from the already well<br />
performing companies and rather reluctant from the other ones.<br />
Future developments<br />
Also in Albania the future development will see the further commercialisation of livestock<br />
farming and meat processing.<br />
.<br />
The cattle farming will improve because it fits to the Albanian landscape with pastures; the<br />
future looks good if import prices for deep frozen meat will go up or import will cease at all<br />
due to uncertain origin of products and if slaughterhouses will improve and offer reliable<br />
services for the processing industry.<br />
The small ruminants might also improve as well also because the Albanian landscape with<br />
pastures fits even better for sheep and goats. Main target will remain the fresh meat market<br />
and to keep almost self sufficiency should be feasible; additionally export markets may open<br />
as soon as the NFA will perform their duties.<br />
The Albanian market is not ideal for pork meat as 70 % of the population are Muslims.<br />
However pig production might develop moderately with a slow increase in the number of pigs<br />
being produced for market, especially if the fodder costs will get cheaper. The production will<br />
include the whole production cycle including mother sows, piglets production and fattening.<br />
Meat <strong>Sector</strong> Study, page 48
Meat <strong>Sector</strong> Study<br />
Chicken farming will continue as long as the local demand will be satisfied; therefore<br />
substantial investment will be needed and certain investors, eventually from surrounding<br />
businesses like feed mills and slaughterhouses will enter the market.<br />
All farmers facing better market perspectives will invest to increase the profitability of their<br />
production.<br />
As the EU standards will request substantial investments especially for slaughterhouses and<br />
meat processing companies, almost all of the few operating slaughterhouses and a great<br />
part of small-scale meat processing companies will go out of business.<br />
As mentioned above there is a trend to establish a complete integrated chain of operations,<br />
from livestock farms to feed mill and retail outlets<br />
A few slaughterhouses might be refurbished like the one in Saranda. However, as Albania<br />
will need slaughterhouses according to EU food-safety standards, new slaughterhouses will<br />
be established on the green fields as this is more economically than rehabilitating the old<br />
ones.<br />
Due to chronically lack of finances MAFCP will - assisted by IPARD - also consider to<br />
encourage private investors to build and manage the new slaughterhouses; especially as the<br />
old system failed in which the government / MAFCP built the slaughterhouses and then<br />
handed them over to municipalities which rented them out to private entrepreneurs.<br />
Finally the big players of the meat processing sector will continue to invest also because they<br />
will have to partly switch from deep frozen meat as raw material to fresh meat which will be<br />
partially locally produced.<br />
VIII. Identification of potentials and needs of the sector<br />
This chapter provides a SWOT analysis. The section of the producers is divided into cattle,<br />
sheep and goats, pigs and poultry whereas the section processors will include the<br />
slaughterhouses and the meat processors.<br />
The SWOT analysis is in a certain way a black and white picture of the sector and will deal<br />
with analyse the internal factors (strengths and weaknesses) and the external factors<br />
(opportunities and threats).<br />
CATTLE S – Strengths W – Weaknesses<br />
Meat<br />
Animals<br />
Internal factors Internal factors<br />
Breeds, flock<br />
Breeds are more suitable for milk<br />
size …<br />
than for meat production<br />
Very few farmers focus on meat<br />
production<br />
Few farms with more than 50 heads 99 % of all cattle farms have less<br />
than 5 heads<br />
Stables Some modern stables Stables for 1-2 cows are primitive,<br />
dark, unclean, no air circulation etc;<br />
do not respect animal welfare<br />
standards<br />
Meat <strong>Sector</strong> Study, page 49
Manure<br />
handling<br />
Feeding Bigger farms produce own fodder<br />
and purchase feed concentrates<br />
from modern local feed mills<br />
Technology,<br />
mechanisation<br />
…<br />
Slaughtering<br />
(location, live<br />
weight …)<br />
Bigger farms have tractors and<br />
agr.equipment<br />
Meat <strong>Sector</strong> Study<br />
No manure removal systems in<br />
place; manure is used as fertilizer<br />
on the fields and slurry just runs into<br />
the nearby river; does not respect<br />
environmental standards<br />
On small farms cattle graze in the<br />
neighbourhood of the farm (and<br />
along the streets), little use of self<br />
grown maize and wheat; very little<br />
feed concentrates<br />
Also bigger farms have to purchase<br />
partly fodder from the market as<br />
farms are often too small to produce<br />
enough forage<br />
Small farms are still doing<br />
everything by hand - feeding,<br />
removing the manure, milking etc.<br />
a) on the farm by the farmer, b) by<br />
the butcher on the farm or in small<br />
butcher shops, c) in<br />
slaughterhouses - transport of<br />
animals does not fit standards<br />
Live weight of slaughtered calves is<br />
often too low and therefore low<br />
profitability; reasons are demand for<br />
very young animals (of all kinds)<br />
and the unavailability of cheap<br />
fodder<br />
Meat classification and quality<br />
payments do not exist and farm<br />
output differs extremely in weight,<br />
age and breed<br />
Farmer<br />
Education Educational background is limited<br />
as almost no vocational schools<br />
which would be needed to train<br />
small holders.<br />
Meat <strong>Sector</strong> Study, page 50
Meat <strong>Sector</strong> Study<br />
CATTLE O – Opportunities T – Threats<br />
Meat External factors External factors<br />
Land Pastures in Albania good for grazing;<br />
(climate, "alping" the cattle during summer not<br />
rainfall,<br />
mountains)<br />
in place yet<br />
Market<br />
Forage crops on 200,000 ha plus<br />
423,000 ha pastures<br />
Good climate, sufficient rainfall<br />
Extension of forage area limited<br />
Local Per capita consumption is increasing<br />
consumption but compared to EU level quite low;<br />
and beef for processing is mainly<br />
production imported and could be replaced by<br />
local production<br />
Price Price per kg is high Production costs are high<br />
Trade<br />
(import,<br />
export)<br />
Almost no export yet and imported<br />
beef could be produced locally<br />
No exports feasible due to non<br />
enforcement of food safety laws<br />
Legal base Laws and regulations not enforced<br />
Services NFA under preparation that will<br />
better coordinate the inspections<br />
Extension service underdeveloped;<br />
financial services for farmers almost<br />
not available<br />
Subsidies IPARD offers co-financing No budgetary support for meat<br />
production<br />
Public<br />
Public rural infrastructure<br />
infrastructure<br />
underdeveloped<br />
No market information system in<br />
place<br />
Farmer's<br />
Farmers not well organised, no<br />
organisation<br />
Producer Groups on the ground<br />
Meat <strong>Sector</strong> Study, page 51
Meat <strong>Sector</strong> Study<br />
SHEEP & S – Strengths W – Weaknesses<br />
GOATS<br />
Animals<br />
Internal factors Internal factors<br />
Breeds, flock<br />
Room for genetic improvements<br />
size … Average flock size 44 / 45 heads;<br />
small flock sizes are still very<br />
numerous as many sheep are<br />
raised for self-consumption and just<br />
3,177 farmers have between 100<br />
and 200 heads; only 797 have more<br />
than 200 heads; goat figures are<br />
914 and 293 = less than 10 % of all<br />
the farms with SR and these 5,000<br />
farms can be considered<br />
commercial small ruminant farms;<br />
total population 2.62 million SR<br />
Stables No stables except shelters when<br />
pastoralising, in winter poor dark<br />
stable, low ceiling etc not<br />
corresponding to animal welfare<br />
standards<br />
Manure<br />
No manure removal systems in<br />
handling<br />
place; manure is used as fertilizer<br />
on the fields and slurry just runs into<br />
the nearby river; does not respect<br />
environmental standards<br />
Feeding 4 systems: 1) Extensive system with Limited fodder production, therefore<br />
transhumance from 6 to 8 months no reserves. Generally low input of<br />
(all regions), 2) Semi-intensive<br />
system with transhumance from 5 to<br />
6 months (Gjirokastra), 3) Grazing<br />
system on permanent pastures<br />
close to the holding, 4) Grazing on<br />
natural pasture in walking distance,<br />
with return of sheep or goats in the<br />
evening to the holding<br />
feed concentrates<br />
Technology, Bigger farms have tractors and Small farms are still doing<br />
mechanisation agr.equipment for hay making etc everything by hand - feeding,<br />
…<br />
removing the manure, milking etc.<br />
Slaughtering<br />
Slaughtering on farms by farmers,<br />
(location, live<br />
by the butchers in the slaughter<br />
weight …)<br />
Farmer<br />
points and a few in<br />
slaughterhouses. Situation is worse<br />
than with cattle; live weight too low<br />
Education Educational background is limited<br />
as almost no vocational schools<br />
which would be needed to train<br />
small holders.<br />
Meat <strong>Sector</strong> Study, page 52
SHEEP & O – Opportunities T – Threats<br />
GOATS External factors External factors<br />
Land Pastures in Albania good for grazing<br />
Market<br />
Local<br />
consumption<br />
and<br />
production<br />
Forage crops on 200,000 ha plus<br />
423,000 ha pastures<br />
Good climate, sufficient rainfall<br />
2 kg / capita and year = 6,000 tons<br />
Price Prices are Lek 300 – 350 per kg, in<br />
Euro 2.20 – 2.50. Seasonal price<br />
Trade<br />
(import,<br />
export)<br />
Legal base<br />
fluctuations, best in December<br />
Import of 599 tons mutton - if the<br />
figure is correct than self-sufficiency<br />
just 90 %<br />
Services NFA under preparation that will<br />
better coordinate the inspections<br />
Meat <strong>Sector</strong> Study<br />
Extension of forage area limited<br />
Often not good timing in producing<br />
lambs: Price the same as in Austria<br />
(reduced export expectations)<br />
No exports feasible due to non<br />
enforcement of food safety laws<br />
Extension service underdeveloped;<br />
financial services for farmers almost<br />
not available<br />
Subsidies IPARD offers co-financing No budgetary support for meat<br />
production<br />
Public<br />
Public rural infrastructure<br />
infrastructure<br />
underdeveloped<br />
No market information system in<br />
place<br />
Farmer's<br />
Farmers not well organised,<br />
organisation<br />
Producer Groups just starting<br />
Meat <strong>Sector</strong> Study, page 53
PIGS S – Strengths W – Weaknesses<br />
Internal factors Internal factors<br />
Animals<br />
Breeds, flock<br />
size …<br />
Meat <strong>Sector</strong> Study<br />
Large white, landrace are good Cross-breeds and other breeds less<br />
profitable<br />
17 farms with more than 50 pigs; 40,000 farms with 1 - 5 pigs mostly<br />
DZIRA - 30 sows and 6 - 800<br />
fattening pigs per year<br />
for auto-consumption<br />
Stables Good stables at commercial farms Poor, dark premises at subsistence<br />
farms<br />
Manure First farms under construction with No manure removal systems in<br />
handling advanced technology, also in place; manure is used as fertilizer<br />
manure management<br />
on the fields and slurry just runs into<br />
the nearby river; does not respect<br />
environmental standards<br />
Feeding High input of concentrates, On small farms low input (low<br />
sometimes farms have on feed concentrates), home grown fodder<br />
mixing; expensive production - from limited fields; feed<br />
sometimes maize grown<br />
concentrates expensive as imported<br />
Technology, Bigger farms have tractors and On the farm small farmers do<br />
mechanisation agr.equipment<br />
everything by hand - feeding,<br />
…<br />
removing the manure, etc... On the<br />
fields machinery is missing,<br />
sometimes they buy (expensive)<br />
services from private tractor owners<br />
Slaughtering On farm slaughtering in basic For auto-consumption slaughtering<br />
(location, live slaughter rooms; on bigger farms takes place on farm without<br />
weight …)<br />
Farmer<br />
veterinary inspection takes place veterinary control (also relevant for<br />
local sales); much slaughtering in so<br />
called slaughtering points - often<br />
along major roads<br />
Slaughter-weights 70 - 120 kg alive;<br />
no uniform products - at least not<br />
from small holders; lack of<br />
knowledge about low-fat meat<br />
production which is best preferred -<br />
20-30 % of carcass weight loss<br />
because of fat, affects heavily profit<br />
reduction<br />
Education Educational background is limited<br />
as almost no vocational schools<br />
which would be needed to train<br />
small holders.<br />
Focus / Highly focused if commercially done Subsistence farmers have<br />
specialisation<br />
additionally few chickens for autoconsumption<br />
Meat <strong>Sector</strong> Study, page 54
Meat <strong>Sector</strong> Study<br />
PIGS O – Opportunities T – Threats<br />
External factors External factors<br />
Land Climate fits for pig farms Farms too small for fodder<br />
(climate,<br />
rainfall,<br />
mountains)<br />
Market<br />
production<br />
Local 56,000 pigs are imported plus<br />
consumption 11,529 tons meat (corresponding to<br />
and 230,580 pigs), mostly deep frozen<br />
production from Brazil; local production is<br />
161,000 pigs; = 7,45 kg / head and<br />
35 % self-sufficiency; consumer<br />
trend towards fresh meat and<br />
growing meat consumption offers<br />
new opportunities<br />
Price Average price live weight Lek /kg 2 - Imported deep frozen pork is very<br />
300, average live weight when<br />
sold/slaughtered 70-110 kg<br />
cheap (around USD 2 / kg)<br />
Trade<br />
Imports almost finished pigs with 80<br />
(import,<br />
kg; no exports feasible due to non<br />
export)<br />
enforcement of food safety laws<br />
Products<br />
Legal base<br />
Besides fresh meat also processed<br />
products, if imports can be<br />
substituted<br />
Services Bigger farmers have their own Extension service underdeveloped,<br />
experts and are internationally farmers need advice in fodder<br />
connected<br />
production and nutrition; financial<br />
services for farmers almost not<br />
available<br />
Subsidies NAF in preparation Veterinary inspections weak and not<br />
coordinated between MAFCP and<br />
municipalities<br />
Public<br />
infrastructure<br />
IPARD offers co-financing No budgetary support for pig farmers<br />
Farmer's<br />
Farmers not well organised, no<br />
organisation<br />
Producer Groups on the ground<br />
Cooperation No strategy for vertical integration<br />
Low level of cooperation between<br />
pig breeders<br />
Meat <strong>Sector</strong> Study, page 55
POULTRY S – Strengths W – Weaknesses<br />
Internal factors Internal factors<br />
Animals<br />
Breeds, flock<br />
size …<br />
Good breeds as 50 % of broilers in<br />
commercial farms<br />
36 farms with more than 1,000<br />
heads; out of them 14 farms with<br />
more than 10,000 heads; DZIRA<br />
produces 2,000,000 broilers per year<br />
(= 8 cycles = 250,000 broilers / cycle<br />
Meat <strong>Sector</strong> Study<br />
Many farms do not produce more<br />
than 100 broilers a year - but they<br />
keep other animals too<br />
Stables Good stables at commercial farms No specific premises at subsistence<br />
farms<br />
Manure<br />
Commercial farms produce much<br />
handling<br />
manure but just have limited land<br />
available<br />
Feeding Commercial concentrates as<br />
provided by Agrotec, Dzira, Aiba;<br />
bigger farms mix the fodder<br />
components themselves<br />
Extensively with left over in the farm<br />
Limited own fodder production,<br />
therefore high feed costs in general<br />
No quality schemes as finished<br />
chickens have live weight between 1<br />
and 2 kg, in some cases up to 3 and<br />
4 kg<br />
Marketing Professionally done by commercial<br />
producers<br />
Some good slaughterhouses for<br />
chicken such as Chicken Farm,<br />
AGRIZOO, DRIZA<br />
Farmer<br />
Education Well trained big producers, clear<br />
focus on broiler production<br />
Meat <strong>Sector</strong> Study, page 56<br />
No marketing activities, just sold on<br />
the farm or on weekly markets<br />
(Slaughtering on the small farms<br />
without any veterinary control)<br />
Educational background is limited as<br />
almost no vocational schools which<br />
would be needed to train small<br />
holders.
Meat <strong>Sector</strong> Study<br />
POULTRY O – Opportunities T – Threats<br />
External factors External factors<br />
Land<br />
(climate,<br />
rainfall,<br />
mountains)<br />
Market<br />
Not much space needed<br />
Fits for poultry farming<br />
Local Consumption approaching 10 kg /<br />
consumption capita, self-sufficiency now 50 % -<br />
and production and consumption<br />
production expected to growth - EU<br />
consumption 24 kg / capita<br />
Market will move towards fresh meat<br />
and away from imported deep frozen<br />
broilers<br />
Price Poultry meat farm sales price per kg<br />
is between Lek 300 and 1,000!<br />
Trade 50 % of broilers imported, mostly as No export feasible due to non<br />
(import, deep frozen meat<br />
enforcement of food safety laws -<br />
export)<br />
except Kosovo<br />
Products<br />
Legal base<br />
Development into other poultry<br />
productions – turkey breeding and<br />
processing, free range chicken,<br />
organic chicken<br />
Services NFA under preparation that will Extension service underdeveloped;<br />
better coordinate the inspections financial services for (small) farmers<br />
almost not available but needed as<br />
broiler production is capital intensive;<br />
big producers have often already<br />
other business and therefore<br />
collaterals<br />
Subsidies IPARD offers co-financing No budgetary support for meat<br />
production<br />
Public<br />
Public rural infrastructure<br />
infrastructure<br />
underdeveloped, also poor power<br />
supply; farms need generator<br />
Farmer's<br />
Farmers not well organised, no<br />
organisation<br />
Producer Groups on the ground<br />
Cooperation Low level of cooperation between<br />
poultry breeders; contract farming<br />
not in place yet<br />
No strategy for horizontal and<br />
vertical integration (from genetics to<br />
retail markets)<br />
Meat <strong>Sector</strong> Study, page 57
Meat <strong>Sector</strong> Study<br />
SLAUGHTER- S – Strengths W – Weaknesses<br />
HOUSES Internal factors Internal factors<br />
Management Cheap labour force available Municipalities are in most cases the<br />
and work force<br />
owner and therefore poor<br />
management; exception:<br />
municipalities rent the facility out to<br />
the private sector<br />
Labour force incl. management is<br />
not trained in traceability, HACCP<br />
…<br />
Finances Individual slaughterhouses face<br />
expenditures but no revenues<br />
Focus / 3 slaughterhouses for chicken are Pigs are usually slaughtered at<br />
specialisation working fine; Chicken farms<br />
(Frigofood), AGRIZOO in Lushnja<br />
region and DRIZA in Frier<br />
slaughtering points<br />
Facilities Outdated facilities, often not even<br />
complying the Albanian law<br />
Technology Outdated or not applied technology;<br />
running costs for cold rooms too<br />
expensive<br />
Quality control Quality is not an issue as payment<br />
does not depend on quality - just on<br />
quantity<br />
Standards Albanian standards according to<br />
Food Law and orders of MAFCP<br />
often not applied, EU standards on<br />
hygiene, public authority, traceability<br />
and HACCP also not applied<br />
Raw material Animals are raised all over the No or limited raw material supply<br />
supply country and so are the<br />
slaughterhouses located<br />
Waste (liquid,<br />
No waste disposal system in place;<br />
solid)<br />
leftovers bought into illegal landfills<br />
and runs into next river<br />
Meat <strong>Sector</strong> Study, page 58
SLAUGHTER-<br />
O – Opportunities T – Threats<br />
Meat <strong>Sector</strong> Study<br />
HOUSES External factors External factors<br />
Market No enforcement of veterinary law;<br />
inspections do not take place and<br />
slaughtering can be done<br />
anywhere<br />
Volume Increased local production and<br />
consumption will require also meat<br />
processing based on local<br />
production; furthermore<br />
slaughtering of imported live<br />
animals possible<br />
Sales price Slaughtering fees acceptable by<br />
slaughterhouses if volume<br />
increases strongly; furthermore<br />
additional revenues due to by-<br />
Slaughtering fees "higher" than if<br />
done illegally in the backyard; 600<br />
Lek for grown up cattle, 500 Lek for<br />
calves, 400 Lek for sheep and<br />
goat, 500 Lek for pigs<br />
Sales channels<br />
products like intestines<br />
Market outlets are looking for<br />
certified meat<br />
Trade (import, Exporters to EU will technically Imported meat does not require<br />
export)<br />
Policy<br />
have to use certified fresh meat for<br />
processing specialities<br />
local slaughtering plants<br />
Subsidies IPARD offers financial support of<br />
up to 50 % of investment costs<br />
No MAFCP support<br />
Public<br />
Existing public slaughterhouses No vocational "butcher" training<br />
infrastructure<br />
(vocational<br />
training, rural<br />
roads,<br />
slaughterhouses<br />
…)<br />
could eventually be upgraded available<br />
Food safety Food safety in place would improve No local interest, neither from<br />
tourism<br />
authorities nor from customers<br />
No rendering or incineration plant<br />
in the country<br />
Veterinary Veterinary inspectors available Control institutions in MAFCP and<br />
inspection<br />
National Food Authority not well<br />
(transport<br />
papers)<br />
coordinated yet<br />
Veterinary law not enforced;<br />
transport papers and slaughtering<br />
register during controls never<br />
required<br />
MAFCP strategy Slaughterhouses will face a revival To enable just one slaughterhouse<br />
if slaughtering point will be finally in the middle of each province; to<br />
closed by local authorities (NFA) believe that this slaughterhouse<br />
must be governmental owned<br />
Meat <strong>Sector</strong> Study, page 59
Meat <strong>Sector</strong> Study<br />
<strong>MEAT</strong><br />
S – Strengths W – Weaknesses<br />
PROCESSORS Internal factors Internal factors<br />
Management Cheap labour force available and More qualified manager are needed<br />
and work force existing management very qualified but engineers from university not<br />
suitable<br />
Finances Bigger companies financially Lek depreciation causes worries as<br />
strong; further investments all the input is imported and mostly<br />
foreseen<br />
paid in Euro<br />
Focus / Priorities are pork, poultry and beef Until now imported raw material is<br />
specialisation<br />
too cheap and local production<br />
cannot compete<br />
Facilities Modern premises at main<br />
Not one company has adequate<br />
companies<br />
waste disposal system<br />
Technology Sophisticated technology in Limited technology in processing<br />
processing frozen meat<br />
fresh meat<br />
Quality control Documentation, traceability, Laboratories missing and also<br />
HACCP applied at least at the smaller companies do not apply<br />
biggest companies<br />
HACCP rules, etc.<br />
Standards Albanian standards according to<br />
Food Law and orders of MAFCP<br />
often applied, EU standards on<br />
hygiene, public authority,<br />
traceability and HACCP also<br />
applied with the big companies;<br />
almost ready for EU export licences<br />
Raw material Cheap raw material available No linkage to domestic fresh meat<br />
supply through import (Brazil, Canada,<br />
India, Italy …)<br />
production<br />
Waste (liquid,<br />
No waste disposal system in place;<br />
solid)<br />
leftovers brought into illegal landfills<br />
and runs into next river<br />
Meat <strong>Sector</strong> Study, page 60
<strong>MEAT</strong><br />
O – Opportunities T – Threats<br />
Meat <strong>Sector</strong> Study<br />
PROCESSORS External factors External factors<br />
Market No enforcement of veterinary law;<br />
inspections do not take place and<br />
slaughtering can be done anywhere<br />
Volume Local meat consumption will grow<br />
On the long run there is export<br />
potential<br />
Diversification of products and<br />
substitution of high value imports<br />
such as prosciutto (hotels,<br />
restaurants)<br />
Sales price Rather low for the time being<br />
Sales channels Direct sales to supermarkets<br />
(Euromax, Conad, Big Market) and<br />
smaller retailers, furthermore<br />
company-owned outlets (EHW,<br />
Trade (import,<br />
export)<br />
KMY)<br />
Exports to EU as soon as National<br />
Food Authority will be approved as<br />
effective authority<br />
Policy<br />
Subsidies IPARD offers financial support of<br />
Public<br />
infrastructure<br />
(vocational<br />
training, rural<br />
roads,<br />
slaughterhouses<br />
…)<br />
up to 50 % of investment costs<br />
Supermarkets are just starting and<br />
will become more powerful<br />
Kosovo does not have pork<br />
imports; all other markets within<br />
Europe closed<br />
No MAFCP support<br />
No rendering or incineration plant in<br />
the country<br />
Food safety All smaller processors need<br />
improvements in food safety<br />
Veterinary Veterinary inspectors available Veterinary inspectors are not up to<br />
inspection<br />
date and veterinary inspection<br />
(transport<br />
needs improvement, especially in<br />
papers)<br />
documentation and traceability<br />
Veterinary law not enforced;<br />
transport papers and slaughtering<br />
register during controls never<br />
required<br />
MAFCP Gov.policy set priorities in the Institutional communication with the<br />
strategy promotion of high level of food private sector poor; lack of<br />
safety of agricultural or agro- involvement of businesses in policy<br />
processing products; Introduction of making; up-front consultations<br />
obligatory requirements for the<br />
implementation of the self-control<br />
system HACCP and the adoption of<br />
ISO standards; Improvement of the<br />
control of hygiene and sanitation<br />
conditions of agribusinesses<br />
missing<br />
No convincing strategy about future<br />
use of fresh and domestic meat<br />
Meat <strong>Sector</strong> Study, page 61
Meat <strong>Sector</strong> Study<br />
The above SWOT analysis shows that there are several weaknesses and it will require<br />
special efforts to make the sector competitive before participation in the EU market.<br />
Summarising it could be said that the Albanian meat sector will need:<br />
• More organised farmers; could be in joint companies or Producer Groups; PGs would<br />
be important preconditions for improving the economic efficiency of the farming<br />
community; experiences in other countries indicate that weakness regarding the<br />
producers' fragmentation and badly organised sales activities could be overcome<br />
considerably by forming producer and marketing associations;<br />
• More vocational training, starting in school (age 10 – 15) and including also specific<br />
courses for farmers; furthermore better management / business administration should<br />
be offered at university level as output of universities do not fulfil the meat industry’s<br />
requirements;<br />
• More commercially oriented livestock keeping with an orientation towards ruminants to<br />
avoid high fodder costs because fodder is presently imported;<br />
• New slaughterhouses as Greenfield investments;<br />
• Meat processing companies with better technology so that they will be able to process<br />
local fresh meat on the long run.<br />
A successful implementation of IPARD would require the following (not exhaustive list):<br />
• Farmers must get informed by MAFCP about the agricultural policy, projects and<br />
upcoming programmes, especially about subsidies;<br />
• Farmers will need support in preparing project proposals; courses should be arranged<br />
by MAFCP for their extension people as well as for interested private persons (farmers<br />
and/or private consultants);<br />
• Banks must get informed by MAFCP that farmers will apply for IPARD funds and<br />
therefore part of the on-farm investments can be considered as co-financed (=reducing<br />
risks for banks).<br />
The meat sector is yet not well prepared for participation in the EU market; but the sector<br />
could build-up strength to resist the resulting competition pressure by making better use of<br />
the natural resources (especially the availability of pastures for ruminants) and the cheap and<br />
motivated labour force at the processing industry. IPARD funds will be highly welcomed to<br />
achieve the goal of improved competitiveness.<br />
IX. IDENTIFICATION OF TRAINING NEEDS IN THE SECTOR<br />
Based on the previous analyses the meat sector in Albania is facing a number of challenges<br />
like awakening consumer food safety concerns, difficulties in attracting high calibre workers<br />
and managers, stricter regulations for the industry while adapting to EU requirements and<br />
increasing competition within a more liberalized market. Tailor-made training courses could<br />
overcome these deficits. As each stakeholder in the meat sector has to face different<br />
requirements the training needs might be grouped as follows:<br />
• Training needs for farmers<br />
• Training needs for slaughterhouse’s staff<br />
• Training needs for meat processor’s staff<br />
• Training needs for the public administration<br />
Meat <strong>Sector</strong> Study, page 62
Training needs for farmers<br />
Meat <strong>Sector</strong> Study<br />
First farmers must get identified who have the potential to produce livestock in a<br />
commercially viable way by the end of 2012. Based on today’s knowledge the following<br />
courses should be offered to farmers by the public extension service and private experts in<br />
the following fields:<br />
• Livestock management (animal welfare – also during transport, breeding, nutrition,<br />
GAP, veterinary issues, animal identification, hygiene concerning production and onfarm-slaughtering,<br />
basic food processing);<br />
• Manure storage and management;<br />
• Occupational health and safety;<br />
• Making use of market information systems;<br />
• Intensified cooperation among the farmers, for example by setting up producer groups.<br />
Training needs for slaughterhouse’s staff<br />
Courses should be offered to employees of slaughterhouses by the public extension service<br />
and private experts including ones from ADAMA (Albanian Dairy and Meat Association) in<br />
the following fields:<br />
• Management (writing business plans, financing, accounting, human resources<br />
development ...);<br />
• In-company training for workers, industrial abattoir workers and deboners / trimmers<br />
regarding new technology, food safety ...;<br />
• National and EU standards from animal welfare, occupational health and safety, food<br />
safety systems to environmental issues (like rendering plants).<br />
Training needs for meat processor’s staff<br />
Courses should be offered to employees of meat processing companies by the public<br />
extension service, ADAMA and private experts in the following fields:<br />
• Management (writing business plans, financing, accounting, human resources<br />
development, language skills, opening export markets ...);<br />
• In-company training for workers (new technology, food safety ...);<br />
• National and EU standards from animal welfare, occupational health and safety, food<br />
safety systems to environmental issues (like rendering plants).<br />
Training needs for the public administration<br />
The civil servants should be brought in the position to understand how commercial<br />
companies are functioning; just by understanding the farmers and processors the staff of<br />
NFA, MAFCP and other subordinated institutions will be in the position to advice and support<br />
them – also in respect to their upcoming IPARD applications:<br />
• Workshops on EU guidelines from farm to fork including directives for meat plants and<br />
their application in the meat industry;<br />
• IPARD applications (design and evaluation of investment projects, application forms ...);<br />
• Training in the practices of general food safety and HACCP application plus traceability<br />
in the food chain;<br />
• Laboratory requirements and techniques in the meat industry;<br />
• General business training to include such topics as overall cost control and analysis,<br />
cost price calculations, selling price setting and negotiation techniques, the importance<br />
of the market chain etc.;<br />
• English language courses;<br />
Meat <strong>Sector</strong> Study, page 63
• Computer training.<br />
X. Outcome<br />
Overview of the meat sector<br />
Meat <strong>Sector</strong> Study<br />
Since the collapse of the old system Albania has seen many changes and improvements.<br />
The agricultural sector was the backbone of all economic development and even as his<br />
importance is slowly decreasing, it is one of the most important sectors in the completely<br />
Albanian economy.<br />
Agriculture contributes nowadays around 16.5 % to the GDP (2008); the major sub-group<br />
within agriculture is the livestock production with about 55 % of the total production of the<br />
sector, followed by field crops with 30 % and fruit production with 15 %. Within the livestock<br />
sector milk production is as important as meat production.<br />
In the period 2000 – 2009 cattle, sheep and goats have been declining whereas pigs and<br />
chicken have been growing.<br />
Table 18: Animals in Albania (heads in 000)<br />
Livestock 2000 2009<br />
Cattle 728 494<br />
Cows 448 353<br />
Sheep & goats 3045 2540<br />
Sheep 1939 1768<br />
Milked sheep 1448 1309<br />
Goats 1104 772<br />
Milked goats 800 574<br />
Pigs 103 160<br />
Sow 10 13<br />
Poultry 5291 8313<br />
Chicken 4087 5138<br />
(Source: MAFCP; Statistical Yearbook 2009)<br />
Having the natural resources of Albania with more than 400,000 ha of permanent grassland<br />
in mind this situation is paradox as the animals which need pastures like cows, sheep and<br />
goats are getting fewer whereas the pigs and chicken, which depend heavily on expensive<br />
imported feed, are growing by numbers.<br />
This paradox might be explicable as chicken – despite being a capital-intensive business –<br />
enable a fast return on investments; this kind of investment is mostly coming from nonfarming<br />
investors.<br />
This situation regarding pigs is actually determined by big importers who do not import<br />
piglets with 25 kg like in the previous years but 80 – 90 kg pigs which are almost ready for<br />
slaughtering. Reasons therefore are that piglets are not available, at least not in sufficient<br />
quantities and qualities, and therefore the import of live animals is required. As it is cheaper<br />
to import a pig with 80 kg of live weight than a piglet with 25 kg plus substantial amounts of<br />
corn, Albania faces the situation of having imports of 80 kg pigs – almost ready for<br />
Meat <strong>Sector</strong> Study, page 64
Meat <strong>Sector</strong> Study<br />
slaughtering. In other words a big part of the increased local pig production is based on<br />
increased imports.<br />
Mainly subsistence farmer keeps sheep and goats and just around 5,000 holdings can be<br />
considered as commercial small ruminant farms. As people are moving to urban areas fewer<br />
people are interested to work with small ruminants, especially in transhumance. The price<br />
level is still high for sheep and goats and will not allow further substantial increase.<br />
Similar issues could explain the situation with cattle; there are few commercial dairy farms in<br />
Albania and even less cattle fattening farms; so most animals are kept by small holders for<br />
auto-consumption. Regarding the two main production opportunities – milk and meat –<br />
farmers often chose the milk production as it enables a small but continuously income<br />
whereas meat production requires one year minimum to get a well-fattened cattle and often<br />
farmers do not have the funds to bridge such a long period without income.<br />
In addition, the meat processing sector shows a very inconsistent picture. Under the former<br />
government the agricultural policy did not focused on meat production and therefore there<br />
have been very limited slaughterhouse capacities and meat processing companies. After the<br />
collapse most companies closed down – before and after the privatisation - and as a result<br />
there are not many slaughterhouses left in operation. Due to missing enforcement of<br />
appropriate veterinary inspections slaughtering of animals takes place all over the country<br />
except in slaughterhouses. The few remaining operating slaughterhouses do not generate<br />
profit as they are working far below their capacities and therefore no investment takes place.<br />
Experts are convinced that almost all the existing slaughterhouses – regardless if in<br />
operation or already closed – will not be upgraded to EU standards simply as a Greenfield<br />
investment would be cheaper. However these investments are not taking place yet as the<br />
law is not enforced and if farmers and butchers have the choice between official inspected<br />
slaughterhouse and an illegal slaughter point in the backyard of the farm or the butcher shop<br />
then they prefer the cheaper solution – in the backyards. In other words under the present<br />
circumstances slaughterhouses cannot be a profitable business.<br />
The situation is different with meat processors; all the big 8 – 10 companies depend almost<br />
exclusively on imported deep frozen meat from Brazil, Canada, USA and the European<br />
Union. This meat is very cheap and processing it enables a sound return on investments.<br />
The bigger companies are often close to EU standards and just need minor improvements.<br />
Exports towards the EU member countries but also other neighbouring countries do not take<br />
place because of the missing veterinary inspections in accordance with the EU regulations.<br />
Nevertheless these processing companies are willing and able to invest further into<br />
upgrading the standards so that they might export as soon as the legal environment will<br />
enable that.<br />
Potentials and obstacles<br />
From the point of self sufficiency there is room for increased production in all livestock farms<br />
except sheep and goats as Albania is almost self-sufficient in this category. As described<br />
above there is a big potential for new slaughterhouses – which should be build right from the<br />
beginning according to EU standards – as all the existing ions are outdated in respect of<br />
technology but more important hygiene, animal welfare and food safety. The most advanced<br />
stakeholders in this supply chain are the meat processing companies as they need just little<br />
further investments to fulfil EU requirements.<br />
There are several reasons why the listed potentials are not used (yet). The farming sector is<br />
too much struggling with subsistence farming and there are not many commercial farmers.<br />
Many older subsistence farms will come to an end as soon as the old owners will die and the<br />
young ones will move to urban areas to find better paid jobs. As soon as a sound cadastre<br />
Meat <strong>Sector</strong> Study, page 65
Meat <strong>Sector</strong> Study<br />
system will be in place transfer of agricultural land either by purchase or rent will increase.<br />
This will give motivated small holders the chance to increase their production and to make<br />
the step from subsistence to market oriented farming. Bigger farms will encourage a more<br />
commercial acting.<br />
Beside the size of agricultural holdings also their premises such as stables will need some<br />
upgrading and here IPARD funds will have a big impact as soon as they will be available.<br />
Furthermore it will be important to have well trained farmers who have a clear focus and<br />
good commercial understanding. The public extension service and private experts will face<br />
new challenges to overcome the actual deficits.<br />
As IPARD funds will require from farmers also a fulfilling of at national and soon of EU<br />
standards it will be crucial that farmers are aware of these standards related to occupational<br />
health and safety, environmental issues, food and feed safety, animal health, animal welfare<br />
and others.<br />
Actually fodder costs are too high. Also the fodder production is not as good as it could be<br />
and on the almost 200,000 ha there is a lot of room for improvements. Fodder must be<br />
produced in a larger scale to decrease the production costs. Then also the locally produced<br />
fodder like alfa-alfa, maize silage and others will become competitive towards the imported<br />
one.<br />
Investments in agricultural holdings as enabled by the upcoming IPARD programme will<br />
push the sector. The investments which will not be eligible under IPARD must find cofinancing<br />
in national support programmes.<br />
The same is valid for the meat processing sector and the investments will have to focus on<br />
newly established slaughterhouses and hopefully a rendering plant. The meat processing<br />
companies will also benefit from the IPARD programme but most likely the big ones will find<br />
their way also without support programmes like in the past. It should be mentioned that the<br />
enforcement of better waste disposal will find broader acceptance if co-financed by IPARD.<br />
Final recommendations in order to target the specific investments<br />
The farming community is urgently waiting for the IPARD support, at least the kind of farmers<br />
who are trained and motivated to make their living out of commercial farming. These farmers<br />
will find their way to pre-finance their investments under IPARD and will therefore benefit<br />
from the new support scheme. The majority will not be willing or able to do more than<br />
subsistence farming and will on the long run stop their farming activities.<br />
Concerning the meat processing sector the slaughterhouses must be newly build and<br />
managed by the private sector under strong monitoring by the NFA. Without prospering<br />
slaughterhouses the Albanian farmers will not find access to the meat processing sector. To<br />
make slaughterhouses profitable the NFA must stop all illegal animal movements and<br />
slaughtering as soon as possible. Then these slaughterhouses will be a bottleneck and will<br />
enable an improved veterinary control scheme. At the same time they will provide sufficient<br />
quantities in different certified qualities to the processing industries.<br />
The meat processors, especially the bigger ones, are doing fine and will not face many<br />
difficulties fulfilling EU standards. They also do not worry about more expensive imported<br />
meat as long as all competitors have to use the same raw material.<br />
It will be the big challenge for MAFCP to improve the livestock sector and to increase the<br />
food safety by channelling all animals to slaughterhouses. Having better local fresh meat –<br />
for fresh meat consumption but also for processing – the industry will make use of it.<br />
Meat <strong>Sector</strong> Study, page 66
Proposed Measures under IPARD Axis 1<br />
Investment in Agricultural Holdings<br />
Meat <strong>Sector</strong> Study<br />
The following investments should be supported under IPARD:<br />
• Construction/extension/modernisation of animal shelters;<br />
• Construction and/or renovation of storage buildings and machine sheds;<br />
• Silage handling equipment and machinery, on-farm animal feed preparation, handling,<br />
distribution systems and storage;<br />
• Automatic feeding & drinking equipment, watering, heating and ventilation, automating<br />
environmental control systems including energy-saving equipments authorised and<br />
defined under Directive 2007/43/EC;<br />
• Investments for manure handling, storage and treatment facilities;<br />
• Animal handling equipment and facilities (e.g. weighing, disinfection);<br />
• Transportation equipment compatible with Community animal welfare standards;<br />
• Watering systems;<br />
• Fences and gates;<br />
• Special equipment for weighing, health control;<br />
• Biogas facilities;<br />
• Purchase of specialized technological equipment including IT and software (herd<br />
management, animal registry, general farm management).<br />
Size of projects<br />
The maximum and minimum limits of total value of eligible investments per project are:<br />
• Minimum € 5,000<br />
• Maximum € 500,000<br />
Ranking<br />
Sheep – cattle – goats – pigs – poultry<br />
Investment in Processing and Marketing of the Agricultural Products<br />
The following investments should be supported under IPARD:<br />
• Construction or renovation of slaughterhouses;<br />
• Renovation of meat processing enterprises;<br />
• Equipment for improvement of hygiene and product quality, in full compliance with<br />
Community standards;<br />
• Investments for establishment of food safety systems (HACCP, GMP and GHP)<br />
including laboratories and equipment to improve the control of the product quality and<br />
hygiene;<br />
• Certification costs;<br />
• Improvement of environmental protection; equipment and facilities for reprocessing of<br />
intermediate products and processable wastes; treatment and elimination of wastes:<br />
waste water works in slaughterhouses and fat catcher facilities for meat processing<br />
establishments;<br />
• Investment for slaughtering animals in conditions compatible with animal welfare;<br />
• Purchase of equipment for packaging;<br />
• Cold storage equipment, purchasing refrigerated transport means of carcass and meat<br />
products;<br />
Meat <strong>Sector</strong> Study, page 67
Meat <strong>Sector</strong> Study<br />
• IT hardware and software for product and process management, Software & tracking<br />
system to implement traceability of carcass and meat inside the processing<br />
establishment;<br />
• …<br />
Size of projects<br />
The maximum and minimum limits of total value of eligible investments per project are:<br />
• Minimum € 10,000<br />
• Maximum € 500,000<br />
Ranking<br />
Slaughterhouses - (rendering plants) – meat processors<br />
Meat <strong>Sector</strong> Study, page 68
LITERATURE AND WEBSITES CONSULTED<br />
Meat <strong>Sector</strong> Study<br />
CEUENS / Centre for EU Enlargment Studies; Gjergji Vurmo, Institute for Democracy and<br />
Mediation, edited by Balázs Szent-Iványi; Relations of Albania with the EU; 2008<br />
Commission of the European Communities; staff working document “Albania 2009 Progress<br />
Report”; 2009<br />
SKRELI, E.: Project for Sustainable Agriculture and Rural Development in Mountain Regions<br />
(SARD – M); Assessment of strengths and weaknesses of mountain policies in South East<br />
Europe: National report of Albania; 2007<br />
European Commission – Agriculture and Rural development; Albania - Agriculture and<br />
Enlargement; 2009<br />
European Union – Albania subcommittee on agriculture and fisheries, Tirana, 2 nd March<br />
2010<br />
FAO / VERCUNI, A. et ZHLLIMA, E.: The food supply and distribution system of Tirana,<br />
Albania; 2008<br />
General Directory of Customs, Albania EC Health and Consumers Directorate-General,<br />
Directorate F - Food and Veterinary Office, DG (SANCO) /8127/2009 - CP Pre – Draft,<br />
Country Profile of Albania on Food and Feed Safety, Animal Health, Animal Welfare and<br />
Plant Health; 2009<br />
GIL, J.M. Gil, GRACIA, A. and ANGULA, A.M. Angula; Trends in the consumption of animal<br />
food products in Mediterranean countries; Unidad de Economía Agraria, SIA-DGA, Zaragoza,<br />
Spain; Departamento de Análisis Económico, Universidad de Zaragoza, Spain<br />
Kaerntner Bauer, Markt & Preis, No 9, 2010 (Austrian Farmer Magazin)<br />
Ministry of Agriculture, Food and Consumer Protection (MAFCP); Agriculture and Food<br />
<strong>Sector</strong> Strategy 2007 – 2013; 2007<br />
Ministry of Agriculture, Food and Consumer Protection (MAFCP); Statistical Yearbook 2009<br />
(preliminary version); 2010<br />
Ministry of Agriculture, Food and Consumer Protection (MAFCP); Technical Report; 2008<br />
Ministry of Agriculture, Food and Consumer Protection (MAFCP); Statistical Yearbook 2009<br />
Ministry of Agriculture, Food and Consumer Protection (MAFCP); Slaughterhouses in<br />
Albania, present situation and prospect; 2006<br />
National Strategy for Development and Integration (NSDI) 2007-2013<br />
SHUNDI, Andrea Prof.: Country Pasture/Forage Resource Profiles Albania; 2006)<br />
LUMB, Stuart; Albanian Pig Production; 2004<br />
UNDP Albania / MAUTNER MARKHOF, M. et al; “Strengthening the Marketing of Small<br />
Ruminants” Project, 2005<br />
UNDP Albania / MOLLA A; Base Line Study on Production Systems and Economics of<br />
Sheep Husbandry in Southern Albania, 2010<br />
Meat <strong>Sector</strong> Study, page 69
Meat <strong>Sector</strong> Study<br />
UNDP Albania; The Agribusiness <strong>Sector</strong> in Albania, Inward Investment Opportunities; 05<br />
World Bank; Albania: Strategic Policies for a More Competitive Agriculture <strong>Sector</strong>;<br />
Discussion Draft; 2007<br />
World Bank; Albania – Agro-processing development project, 1995<br />
http://ec.europa.eu/budget/inforeuro/index.cfm?fuseaction=currency_historique¤cy=6&<br />
Language=en<br />
http://www.ama-marketing.at/home/groups/7/Pro_Kopf_Verbrauch_Fleisch.pdf<br />
http://www.undp.org.al/index.php?page=detail&id=147<br />
http://www.fleischerhandwerk.de/upload/pdf/GB08_Fleischverzehr.pdf (about sheep<br />
consumption in Greece)<br />
http://www.animal-health-online.de/lme/2010/05/10/eu-pro-kopf-verbrauch-vongeflugelfleisch-leicht-gestiegen/4621/<br />
(about poultry consumption in the EU 27)<br />
Meat <strong>Sector</strong> Study, page 70