 Albania
In January 2004 IFDC completed a 5-year project that
built on its previous work in Albania aimed at
nurturing private sector-led growth in agriculture
and agribusiness. The Assistance to Albanian
Agricultural Trade Associations (AAATA) project
helped establish seven trade associations and worked
through them and individual progressive member
enterprises to develop industry clusters and improve
backward and forward linkages. Using their own
resources and bank credit, project clients invested
US $26.9 million in agribusiness, including poultry
operations, flour mills, state-of-the-art
greenhouses, and edible oil, meat, and fish
processing equipment. The hundreds of members in the
eight project-supported associations increased their
production and revenues by over 60% and employment
by 25%, while replacing imported food products and
exploring niche export markets. The project focused
on labor-intensive, high-value food products with
comparative advantages in the region, such as
rejuvenation of the herbs and spices industry. The
project established an effective federation of 18
agricultural trade associations to advocate policy
reform and a business and management center to
ensure sustainability of the institutions and
business services to support the AAATA platforms for
agribusiness growth. Technical assistance to public
institutions aimed to improve food quality and
regulations and the availability of reliable
agricultural survey and statistics information for
decision makers.
Further impacts of the AAATA project include:
• The Albanian National Farmers’ Union, which has
5,000 dues-paying members, was revitalized.
•
Access to credit for more than US $13 million by
agribusiness enterprises was facilitated.
•
The direct export of sage valued at more than US
$300,000 was arranged for a client.
•
Since 1998, farm income has increased by 64%, and
exports of fresh vegetables have increased by 247%.
•
During 2001-2003, agribusiness capital investments
amounted to approximately US $22 million.
•
Sales revenues induced by the project are estimated
at US $106 million and profits, US $23 million.
 Food
for Progress Program (FFP) in Albania—The
purpose of this project was to monetize commodities
and create a fund that could be used as an
agribusiness credit fund. IFDC monetized 10,000 tons
of maize and 6,000 tons of soybean meal in 2003/2004
in Albania. The objectives of the project are
two-fold. First, the project is supporting private
sector development of agribusiness enterprises
engaged in feed milling, meat, dairy, and egg
production by providing technical assistance and
linkages to world market sources and by promoting
market development programs. Second, the project is
establishing agribusiness credit guarantees by
providing an escrow account at financially sound
institutions that will be used as a guarantee for
loans to the target sectors and to other selected
agribusiness activities.
In a relatively short period of time, the FFP
project has succeeded in accomplishing the
following:
•
Successfully monetized 10,000 tons of maize and
6,000 tons of soybean meal; generated funds
exceeding US $4 million.
•
Generated net proceeds of approximately US $3
million, which is now being invested in technical
assistance, market development and credit
enhancement for agribusiness activities within the
livestock sector of Albania.
•
Introduced high-quality soybean meal (48% protein)
to the Albanian livestock feed industry.
•
Provided maize to the livestock industry (which
relies on grain imports) at a critical time when
regional maize production was significantly reduced
due to drought.
•
Provided livestock producers with access to improved
livestock feed formulations.
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