Evaluating the Impact of Small Farmer’s Inclusion in Agricultural Value Chain for Sustainable Rural Development in Albania

The rural sector is one of the most important and largest sector in Albania, referring to the contribution to economic growth, gross domestic product, level of employment in the country and increasing the welfare of the population living in rural areas. The average small farm sizes, combined with the excessive land fragmentation, the low level of investments, poor infrastructure, and the loss of agricultural land due to the change of use, have been major structural challenges for the agriculture sector in Albania. The farm structures are dominated by smallholders with many small farms (1.2 ha/farm) and few large farms. Farmers and smallholders are critical for food security, as well as for poverty reduction of rural areas. The smallholder farmers facing a number of challenges such as lack of access to reliable and timely data on market prices as well as markets, inability to access appropriate infrastructure such as storage facilities leading to post-harvest losses or low prices as a result of low-quality produce. One way to counter the above challenges is through the agricultural value chain. If a strong market linkage is created, then it can lead to the development of the value chains, and stimulate an increase in the productive base of the smallholders. An effective market linkage increases opportunities for value addition which can benefit the farmers as well as the smallholders. This paper is intended to highlight the importance of farmers and smallholders in the value chain as a key to sustainable development for the rural sector.