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Grain and Flour Market in Albania, Bosnia-Herzegovina and Montenegro

14 October 20169 min reading

Corn is the most interesting grain product in Albania, Bosnia-Herzegovina and Montenegro. According to the corn production data of Albania between the seasons of 2006 and 2014, it can be seen that approximately 215 thousand tonnes to 380 thousand tonnes were produced. Corn production in Bosnia-Herzegovina is seen to be 530 thousand tons and 1 million tons between 2006 and 2014. Montenegro exceeded 10 tonnes in corn production in 2009, the production in 2011 reached at 11 thousand 600 tonnes. However, since 2012 with the reduction in the corn production, the production has weakened to 3 thousand tonnes in 2014.

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In the southern east of Europe, Albania located in the west side of Balkan peninsula, neighbors with Montenegro and Kosovo at the north and northern east, Macedonia at the east, and Greece at the south and southern west The capital city of Albania which is one of the smallest countries of Europe, Tirane has a population with approximately 2,8 million people. The capital city of Bosnia-Herzegovina which is located at southern east side of the continental Europe and the northern west side of the Balkan peninsula is Sarajevo. Bosnia-Herzegovina gaining its independence from Yugoslavia in April 1992 has applied to the European Union for the full membership in 2015 and has been accepted because of fulfilling the necessary benchmarks. Montenegro which a country from Southeast Europe, neighbors with Albania and Kosovo at the east, Serbia at the north, Croatia, Bosnia-Herzegovina at the west. Its capital city is Podgorica and has a population with nearly 700 thousand people.

GENERAL ECONOMIC VIEW In Albania having an economy with a planned and centralized system until 1990, critical reforms have been begun since 1991, a privatization programme has been implemented, prices have been made free-state run and trade has been liberalized. Albania has been regarded as a model for Balkan countries in terms of progresses of economic reforms in 1990s and rapid growth rates.

Bosnia-Herzegovina was at the position having heavy industry infrastructure before the war and the biggest ten industrial institutions of the country were so big to meet total employment and the half of the production. Heavy industry in Bosnia-Herzegovina focused mainly on metallurgy and chemistry industry. In this period, production was made in order to meet the needs of Yugoslavian internal market in general. However today, due to the war, industrial plants have had several damages, machinery and equipment in these plants have been stolen, and the industry-based economic structure of the country has been broken down as well as the market loss. Unemployment is one of the main problems of Bosnia-Herzegovina. Due to the unregistered employment, unemployment rate is shown lower than its actual value. Another important problem of the economy of Bosnia-Herzegovina is to have high and continuous foreign trade deficit and borrow. According to estimated values of 2015, GDP consists of %7,9 agriculture, %26,5 industry and %65,6 service sector.

Economic structure of Montenegro which is a very small country, is mostly based on service sector including tourism. Especially aluminum, except for a few product, manufacturing sector is not in the forefront. Agriculture sector falls behind of the services sector. Then, Montenegro joined in World Bank and IMF in January 18, 2007. In October 2007, it entered in to the International Trade Union and signed a membership agreement with EU. Montenegro applied to EU for membership in December 15, 2008. Unemployment and regional inequality in the country are among the political and economic key problems.

POSITION AND IMPORTANCE OF AGRICULTURE Mountainsides and hills covering %77 of Albania territories is the main reason of the isolation coming from the history of the country. The country’s total 2,9 million hectare territory is consisted of forests %36, arable lands %24, grasslands and meadows, rest of them are inefficient or for non-agricultural usage. Albania which has heritage of old technology and insufficient agriculture production from cooperative system in the communist period, has witnessed a reduction in the production efficiency due to the distribution of agriculture lands into little parcels.

According to estimated values of 2015, %7,9 of GDP consists of agriculture sector in Bosnia-Herzegovina. Agricultural lands availability of Bosnia-Herzegovina is 2.450.000 hectares. 1 million hectare of this land are kept for field crops agriculture and %40 of it is still not being used. In %54 of the handled lands, grain production is made, wheat and corn are the main products of them. Forage plants composes %29 of cultivated areas, and %15 of handled lands are composed of vegetable growing areas. Industry plants take place as %2.

Total square measure is 13.812 kilometer square, approximately %38 (515.798 hectares) of this square measure are covered with agriculture areas. These agriculture lands are important economic sources for Montenegro. %37 of agricultural lands are arable agriculture lands. %65 of agricultural lands are at personal property. Average operation size is 5 hectares, only %12 of agriculture lands are separated for especially corn, wheat and potato and one-year plant production and fruit gardens and vineyards. Resting %88 of these agriculture lands are composed of meadows and pastures.

GRAIN PRODUCTION IN ALBANIA According to data of United Nations Food and Agriculture Organization (FAO), corn is the mostly produced grain in Albania. According to the corn production data between the seasons of 2006 and 2014, it can be seen that approximately 215 thousand tonnes to 380 thousand tonnes were produced. This amount of 366 thousand tonnes corn in 2011 weakened to 360 thousand tonnes in 2012. Production increasing up to 372 thousand tonnes in 2013, reached to 380 thousand tonnes by showing a 8 thousand-ton increase. Another important grain product made in Albenia is wheat. It is seen that the wheat production is made at variable amounts between 230 thousand tonnes and 280 thousand tonnes. Wheat production recorded as 335 thousand tonnes in 2009, weakened to 280 thousand tonnes by decreasing since 2010 until 2014. Another important product after wheat is oat. Oat whose production was 22 thousand tonnes in 2006, increased to 30 thousand tonnes in 2014 by increasing since 2009.

GRAIN PRODUCTION IN BOSNIA-HERZEGOVINA According to FAO data, the mostly produced product in Bosnia-Herzegovina is corn. Corn production is recorded as changing between 539 thousand tons and 1 million tons between 2006 and 2014. Corn production weakening to 635 thousand tonnes in 2007, increased to 1 million tonnes with a high increase in 2008. However, since this year, the corn production weakened again and the production was made as 799 thousand tonnes in 2014. Another important product produced in Bosnia-Herzegovina is wheat. Wheat production in 2011 was 210 thousand tonnes. The production increasing to 225 thousand tonnes in 2012, continued to increase and reached to 265 thousand tonnes in 2013. However, the production weakened to 170 thousand tonnes with a sharp decrease in 2014. Rye and oat production of Bosnia-Herzegovina could not reach even to 100 thousand tonnes. GRAIN PRODUCTION IN MONTENEGRO Corn is leading in Montenegro’s grain production. Montenegro exceeded 10 tonnes in corn production in 2009, the production in 2011 was recorded as 11 thousand 600 tonnes. However, since 2012 with the reduction in the corn production, the production has weakened to 3 thousand tonnes in 2014. Another important grain product made in Montenegro is wheat. Montenegro making production with amounts of 3 thousand tonnes between 2006 and 2014 produced 2 thousand tonnes of wheat with an approximately 800 ton sharp decrease in 2014. After wheat, Montenegro produced barley at amounts of 1 or 2 thousand 500 tons tonnes between the years of 2006 and 2014. The rye and oat production of Montenegro is made around 400-500 tonnes.

GRAIN TRADE IN ALBANIA Grain trade of Albania is mainly wheat and corn weighted. In order to meet the domestic demand, parallelly increasing wheat production of Albania which is focused on import rather than export, import amount is decreasing. According to FAO’s data, while the wheat import of Albania was 272 thousand tonnes in 2012, this amount showed a reduction and weakened to 254 thousand tonnes in 2013. Regarding the corn import, 47 thousand tonnes in 2012, 64 thousand tonnes in 2013 was recorded.

GRAIN TRADE IN BOSNIA-HERZEGOVINA It is seen that the grain trade of Bosnia-Herzegovina is generally wheat and corn weighted. The import amount in the country shows a fluctuating graphic in accordance with the unsteady condition of wheat and corn production. While 344 thousand tonnes wheats were imported in 2011, this amount weakened up to 279 thousand tonnes in 2013. An increase in corn import is the matter of concern. While 133 thousand tonnes corns were imported in 2011, Bosnia-Herzegovina increased this number up to 223 thousand tonnes in 2013.

GRAIN TRADE IN MONTENEGRO Just as Albania and Bosnia-Herzegovina, wheat and corn are also two main product for the grain trade in Montenegro. While 27 thousand tonnes corns were imported in 2011, Montenegro increased this number up to 32 thousand tonnes in 2012. Recorded import amount in 2013 decreased and weakened to 31 thousand tonnes. Recorded amounts of corn import of Montenegro changed between 9-20 thousand tonnes. While 19 thousand tonnes corns were imported in 2009, Montenegro decreased this number up to 12.9 thousand tonnes in 2012. Recorded import amount in 2013 decreased and weakened to 10.9 thousand tonnes.

FLOUR TRADE IN ALBANIA, BOSNIA-HERZEGOVINA AND MONTENEGRO According to FAO’s data, the flour import of Albania has changed between 29-48 thousand tonnes in the last five years. 29 thousand tonnes wheat flour were imported in 2009, Albania increased this amount to 40 thousand tonnes in 2010, and decreased to 33 thousand tonnes in 2011. While recording 48 thousand ton import in 2012, import amount recorded in 2013 reached to 48 thousand tonnes. Flour export of Albania remains at minute amounts and any export is not made in some years.

Import of Bosnia-Herzegovina has remained at variable amounts between 55-72 thousand tonnes in the last five years. 55 thousand tonnes wheat flour were imported in 2009, Bosnia-Herzegovina increased this amount to 64 thousand tonnes in 2010, and decreased to 61 thousand tonnes in 2011. Flour import weakened to 60 thousand tonnes in 2012, increased in 2013 and it was recorded as 72 thousand tonnes. Flour export of Bosnia-Herzegovina has remained at variable amounts between 1-7 thousand tonnes in the last five years.

Flour import of Montenegro has remained around 50 thousand tonnes in the last five years. Import amount recorded as 54 thousand tonnes between 2009 and 2010, weakened to 53 thousand tonnes in 2011, to 52 thousand tonnes in 2012, and to 51 thousand tonnes in 2013. In flour export, changing numbers between 1-7 thousand tonnes are matter of concern.

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