AGRO-INDUSTRIAL COMPLEX

Agro-industrial and food sector is one of the key sectors in the Macedonian economy or third significant sector after the industry and services, with a share of 16-17 percent in the GDP – out of which the agriculture share is around 12 percent and food industry share by 4-5 percent.

In the overall economy export, agro-industrial complex share is 17-18 percent, out of which export of food products of 7-8 percent, and beverages and tobacco with tobacco processing of 8-9 percent (in particular years up to10 percent).

In 2009 the overall foreign trade with agriculture and food products reached the amount of one billion US $, out of which 444 million by export and 550 by import, and a deficit of 106 million US$.

Generally, the foreign trade is significantly increased in the last six years, as a result of the decreasing of trade barriers in accordance to the WTO requirements, the signing of the free trade agreements and the Stabilization and Association Agreement with the European Union (enters into force in 2001), which cut the tariff to large number of products progressively.   

But, the trade exchange liberalization resulted with greater trade deficit, which reach its pick in 2007 and 2008 as a result of increased demand of import and higher prices of the stock exchange food products, as the same trend is noted in 2009.

EXPORT-IMPORT OF AIC /in 000 000 US$

Trade deficit, for 2009 reached US$ 96 million, as a result of higher import growth by 14 percentage points from the export growth.

Anyhow, in AIC the import coverage with export is over 80 percent (on economy level up to 60 percent), and it could be higher or to have a surplus, if we use the unutilized potentials in this sector.

The foreign trade analysis sends clear signals to domestic agriculture and food producers that we have products which are already positioned on external market, for which there is a market for significantly larger quantities.  

AGRICULTURE AND FOOD PROCESSING INDUSTRY ASSOCIATION

Production of food in every country is of strategic interest. Therefore the organization of food producers and representing of their interests aimed at providing and upgrading of food production has special importance.

In Macedonia, the agriculture together with the food industry employed 10 percent of the overall employees by legal entities, and in the total GDP participates with 18 percent, out of which only for agriculture and fishery by 12 percent, and by 6 percent in food industry. With production and processing of food in Macedonia are engaged 5100 enterprises.  

The Agriculture and Food Industry Association, pursuant to its more precise activity and interests, in the scope of their roof association – Branch Association, are organized in special organization forms-groups which represent the interests of the branch they belong to, among which:

- give proposals and represent its members` interests in bringing economic policy measures by the state bodies,

- participate in elaboration of the legislation in agriculture and food industry by providing views, proposals for their amendments in the process of enactment,

- initiate and propose certain system’s measures and legal solutions aimed at upgrading of the food production conditions,

- organized joint appearance on relevant fairs, business forums and other promotion activities in the country and abroad,

- mutual assistance in some practical actions such as (common export, joint purchase of raw materials from import etc.),  all that in the interest of upgrading of the production and disposal on domestic and foreign market.