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Domestic production becomes non-competitive/ Food import increases by 8.5% by 2023

2023-12-28 08:03:00, Ekonomi CNA

Domestic production becomes non-competitive/ Food import increases by 8.5% by

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Production deficits and rising costs are increasingly making domestic production uncompetitive.

INSTAT's foreign trade data show that in the 11th month of 2023, food imports in quantity experienced an annual increase of 8.5%, while food exports in quantity remained unchanged with an increase of only 0.7%.

During the 11th month, food imports were 2.8 times higher than exports, while in the same period of 2022 this ratio was 2.6%.

The contraction of production on the one hand and the increase in demand from large tourist flows are regenerating import channels, which are likely to influence the further weakening of production.

In some categories, especially in dairy, imports are often coming at competitive prices with local products. This competition is also helped by a mindset of Albanian consumers who trust foreign products more than domestic ones.

During the last decade, exports of Albanian products have increased in quantity more than imports. This progress has been helped by the expansion of investments in export channels, collection, storage and transport.

As a result of these developments, the gap in foreign food trade was significantly reduced. In 2012, food imports were 6 times higher than exports, while last year it was 2.6 and this year it was 2.8.

Tourism is seen as a stimulus for local production, but there is a lack of policies that mediate the interaction of the sectors. INSTAT data show that agricultural production has fallen in a steady downward trend in the last two years, unprecedented for the transition period.

Thus the rural areas of Albania have great potential for sustainable tourism, but this potential has not yet been fully exploited nor connected with other sectors of the local economy, such as agriculture and the processing of traditional and typical products to support agrotourism .

Tourists have put pressure on restaurants for recipes based on local produce, but on the other hand agriculture is suffering from low budget support, blocked EU funding, reduced workforce, high labor and input costs and a lack of advice. and orientation. / Monitor

Domestic production becomes non-competitive/ Food import increases by 8.5% by