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An Albanian individual spends an average of 267 euros a year on eggs, milk and cheese, according to data published in the Eurostat data system.
Compared to other countries in the region, nominal costs for these products are the highest in the region.
Serbs spend 163 euros on the same products, or 40% less. Northern Macedonia spends 198 euros, Montenegro 263 euros and Bosnia and Herzegovina 249 euros. The data refer to 2020, while Kosovo is not included in these statistics.
In relation to gross domestic product, spending on these products is the highest in Europe, at 5.8% of GDP, much higher than the European Union average of 1%. Second after Albania is Bosnia and Herzegovina, with 4.9% of GDP, followed by Northern Macedonia, with 3.8% of GDP.
But, more than high consumption, the increased costs turn out to come from the more expensive prices of these products, even though they are almost domestically produced. According to Eurostat data, Albania’s price level index for the group of eggs, milk and cheese in 2020 compared to the European Union average (with 27 countries) was 109, which means that domestic consumers buy these products 9% more expensive than in most European countries.
While in the region, eggs, milk and cheese are cheaper in Northern Macedonia, with an index of 78.1, or about 22% less than the EU average and 31% cheaper than in Albania. In Montenegro the index is 91, in Serbia 94.1 and Bosnia 82.5. Thus, Albania is the only country in the region where households buy these basic products more expensive than the European Union average, although their income is as much as 30% of the EU average.
Industries in difficulty
The dairy processing industry in Albania, for several years is facing great difficulties in the market, causing a part of the milk processing companies to go bankrupt or to be in financial difficulties, due to various problems, lack of livestock support schemes, the unfavorable VAT scheme, the promotion of imports, increased export barriers, the poor quality of farm milk, the informal market and rising costs in recent weeks from supply constraints stemming from Russia’s attack on Ukrainian.
For a long time and systematically, this industry has raised its voice regarding the real capacities of livestock farms, which are not able to meet the needs of dairy processing plants, both in terms of quantity, quality, including food security.
According to INSTAT, in 2020, milk production on farms was 1.05 million tons, with a decrease of 5.4% compared to 2019. The amount of milk collected for processing in 2020 is reported to be about 119 thousand tons, or 11% of the amount of milk produced on farms, marking a decrease of 14.8% compared to 2019.
The dairy industry is supplied with cow’s milk in an amount of about 897 thousand tons, or 85% of the milk produced on farms. The rest of the supply is divided almost equally between sheep milk and goat milk (about 76 thousand tons). Only 22% of milk for consumption is sold in the formal market, 33% of dairies are formalized, 15% of farms have NIPT.
The egg production industry in recent weeks, in addition to rising costs of raw materials and energy is suffering from the consequences of bird flu, which has so far led to the death of 350 thousand chickens. In the country, according to INSTAT there are a total of 5 million chickens. So far, 7% of them have been damaged./ Monitor
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