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Competitiveness of milk and wine production and processing in Albania

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  • Petrick, Martin
  • Schreiber, Catrin
  • Weingarten, Peter

Abstract

This study provides an empirical assessment of the competitiveness of Albanian dairy and wine production, based on specifically collected survey data. For both product groups, the analysis is carried out on two levels: farm level production of raw material and processing and manufacturing of the final product in the food industry. In a third step, both levels are aggregated to analyse the competitiveness of the entire production chain for each product group. Overall, the wine sector appears in an economically more favourable situation than the milk sector. Although there is currently no relevant export of wine, there has been considerable in-vestment activity at the farm level and the harmonisation of quality standards with EU legislation is currently pursued. Grape processing is currently profitable. Small farm and herd sizes limit the profitability and efficiency of dairy farming. Fragmented and dispersed production units increase the costs of milk collection. International quality standards are by far not met. This is partially due to the high share of informally traded milk and the importance of direct sales to consumers. It is therefore unlikely that Albanian dairy products will become internationally competitive in the near future.

Suggested Citation

  • Petrick, Martin & Schreiber, Catrin & Weingarten, Peter, 2004. "Competitiveness of milk and wine production and processing in Albania," IAMO Discussion Papers 68, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:zbw:iamodp:14877
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    References listed on IDEAS

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    1. Cungu, Azeta & Swinnen, Johan F M, 1999. "Albania's Radical Agrarian Reform," Economic Development and Cultural Change, University of Chicago Press, vol. 47(3), pages 605-619, April.
    2. Frohberg, Klaus & Hartmann, Monika, 1997. "Comparing measures of competitiveness," IAMO Discussion Papers 2, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    3. Trzeciak-Duval, Alexandra, 1999. "A Decade of Transition in Central and Eastern European Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 283-304, August.
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    1. Ramanovich, Mikhail, 2010. "Zur Bestimmung der Wettbewerbsfähigkeit des weißrussischen Milchsektors: Aussagefähigkeit von Wettbewerbsindikatoren und Entwicklung eines kohärenten Messungskonzepts," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 53, number 94739, September.

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    More about this item

    Keywords

    Agricultural sector; competitiveness; milk; wine; Albania; Agrarsektor; Wettbewerbsfähigkeit; Milch; Wein; Albanien;
    All these keywords.

    JEL classification:

    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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