Agri-Food Processing in Albania

This chapter explores how Albania’s agri-food sector is attempting to upgrade under conditions of limited state capacity, fragmented institutions, and strong donor influence. Applying the Developmental Network State (DNS) framework, it examines how governance, learning, and coordination operate within a context of structural dependence and policy discontinuity. The analysis highlights the growing importance of agri-food value chains as a testing ground for institutional learning and cross-sector collaboration. It identifies three critical dynamics: the gradual emergence of collective action among producers, the growing role of intermediaries and donor-supported networks, and the experimentation with new standards and certification mechanisms. Despite persistent weaknesses in coordination and limited integration between farmers, processors, and knowledge institutions, the sector has developed adaptive mechanisms that facilitate incremental capability building. The chapter argues that Albania’s agri-food transformation depends on connecting fragmented initiatives through stronger network governance and long-term learning systems. By linking sectoral upgrading to institutional innovation, Albania can transform donor dependence into a source of capacity development. The findings contribute to broader debates on how latecomer economies can align economic modernization with inclusive and sustainable rural development through adaptive governance.