MEAT Sector Analyse

Meat Sector Study
The three big fodder producers AGROTEK ALB shpk, Aiba Company shpk and Floryhen
shpk control 70 – 80 % of the market in Albania. They offer different forms of concentrates,
premixes, microelements, raw materials such as soya bean, fish meal, maize, wheat etc.
Usually feed products are pressed into pellet forms. Wheat and barley is purchased mainly
locally, but other inputs such as soya are imported from Greece, Italy and Serbia. Feed is
produced for cattle, sheep, goat, pigs and poultry; main customers are chicken and pig farms
with 40 % each; the rest of the products is for cattle, sheep and goat farms. Distribution takes
place trough partly exclusive distributors and just big farms are served directly.
Product prices vary between Lek 35 – 100 plus 20 % VAT per kg; estimated market volume
is 50 – 60,000 tons annually. The feed producers are often certified in ISO 9001:2000,
Hazard Analysis and Critical Control Point (HACCP) and other quality management
programmes.
As farmers have often limited access to extension services the feed producers provide also
services in veterinary and zoo technical consulting or assist farmers in getting in touch with
experts.
The companies are also involved in “neighbouring businesses” such as egg production or
slaughterhouses.
Producers see a major threat for their sector in the limited availability of raw materials; as a
consequence many products like soya have to be imported and transport costs are high.
Fodder is cheaper for example in Serbia and as it is cheaper to transport 1 kg of pork meat
(produced in Serbia) instead of 4 kg of cereals (for the production of 1 kg of pork meat in
Albania), feed producers are afraid of the increasing competition in this sector; competition
became stronger with the Central European Free Trade Agreement (CEFTA) and will get
more intensive when approaching the European Union.
The Albanian feed industry offers all kinds of feeds for the local livestock producers, except
fish and pet food. A few feed mills offer the feed in both mash and pelleted form. Almost all
raw ingredients are imported like soya (up to 24,000 to / year) and grains, except for
limestone. The main sources for raw materials are neighbouring countries, mainly Italy and
Greece but other countries, like France, Romania, Bulgaria, are also used. The biggest
constraint for direct imports from big producers such as the USA, Brazil and Argentina is the
fact that Albania’s main harbour, Durres on the Mediterranean Sea, can receive shiploads to
a maximum of 12,000 metric tonnes. Therefore all ships have to be reloaded in Greece and
that increases the costs.
Albanian feed mills are quite familiar with the well-known companies such as: Bühler, Brock,
Van Aarsen, Big Dutchman, Facco, Chore Times, Pas Reform, Farmer, Chemifarma,
Lohman, Schauman, etc.
III. PROCESSING INDUSTRY
Slaughterhouses
Meat Sector Study, page 22