PRESS CLIPPING (Jan-March 2011) AgBiz Program PRINT Media Medium: RCI Newsletter Journalist: n/a

Website: Date: Feb edition http://www.rciproject.com/rcihome.html

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ELECTRONIC Media Medium: Strumica TV Journalist:

Title: Featuring AgBiz’s CoP; statements for PHH Manual Presentation in Strumica

Web:n/a Date:15 March 2011

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Electronic Media Medium: FFRM’s website Journalist: N/A

Title: Promotion of the Manual for Fresh Fruit and Vegetables’ Postharvest Handling Technologies

Translation:

Promotion of the Manual for Fresh Fruit and Vegetables’ Postharvest Handling Technologies Wednesday, March 16, 2011, written by FFRM

Due to the low awareness of Macedonian producers for postharvest handling technologies practiced to improve the production and income, a manual was promoted in Strumica. This manual was prepared by PhD Krum Boshkov from the Faculty of Agriculture and Food in Skopje, and it will help farmers to improve harvesting and storage of grapes, apples, tomatoes, peppers, potatoes, cherries, cucumbers, onions, plums and peaches. The presentation was organized by the Federation of Farmers in Republic of Macedonia in cooperation with the USAID’s AgBiz Program. “This manual is especially important for us, the gardeners. Its main goal is to help us to learn how we

3 could store our production to be more productive and not to lose in quality, and yet to make a profit of it”, said Vasil Mitev, member of the FFRM’s Supervisory Board. The USAID’s AgBiz Program’s Chief of Party, Vasko Hadzievski, noted that the manual is a result of several years of joint work of foreign experts from the United States and South America and Program’s employees. In cooperation with AgBiz, the “Moja Zemja” magazine is releasing 10 brochures for fresh fruits and vegetables’ harvesting and post-harvesting technologies.

Web: http://www.ffrm.org.mk Date: March 16 2011

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PRINT Media Medium: KAPITAL (Daily Edition) Journalist: Maja Bajalska - Georgievska

Title:

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Translation: WHY MACEDONIAN WINERIES DID NOT PARTICIPATE IN THE LARGEST WINE FAIR IN THE EU – PROWEIN?

WITH NO SUPPORT FROM THE GOVERNMENT MACEDONIAN WINES WILL BE REMOVED FROM THE GERMAN MARKET!

Why Macedonian wineries missed the opportunity to exhibit at the largest wine fair in the EU - Prowein in Düsseldorf? Does the Government neglects the importance of the German wine market, which is the second largest one, while Greece disputes the geographical origin of Macedonian wines?

The biggest wine fair in Europe - Prowein was held in Düsseldorf last week. But there was not any winery from Macedonia to exhibit this year. While 11 Macedonian wineries jointly exhibited at the national stand last year, this year the most important wine fair for the European market was visited by representatives from several wineries only.

Kapital analyzes: For what reason Macedonian wineries missed the opportunity to exhibit at the largest wine event in the EU this year, in the second largest wine import market for Macedonia? And why the Government does not consider Germany as a target market for Macedonian bottled wine export in a period when Greece disputes Macedonian wines’ geographical origin on this market? Some of the wineries’ managers said that the reason for not exhibiting is that they did not coordinate for a joint presentation. Others believe that the Government should bear the responsibility, given that it did not provided financial support for participation at this fair. The truth is probably somewhere in the between. According to the informal communication among the wineries, it is said that the competence for export promotion passed from the Ministry of Economy to the Agency for Foreign Investment last year, and they were told that there will be no budget for financial support KATERINA KOSTOVSKA for presentations at trade shows abroad in 2011. According EXPORT DIRECTOR IN TIKVESH to them, the transition of competency for export promotion between the two state agencies made the “time gap” that resulted in lack of financial support for promotion of the “Regardless of the lower segment of wineries at the German market. They said that the personnel Macedonian wine as it is recognized in the department for export promotion were cut off, and on in Germany, we are totally the other hand, the Agency for promotion of foreign uncompetitive as a wine country at investments’ plans and budget were not approved yet in the UK market. But both French and September - October last year, when was the time for Italian wines are also low-priced at applying for participation at this Fair. that market. Therefore, I believe that

with the smallest investment in “USAID’s AgBiz Program organized the exhibition of the Germany we can achieve more, but Macedonian wineries at the fair in Düsseldorf last year. The the Government should promote the Ministry of Economy cost shared the space for exhibition; Macedonian wine brand.” while AgBiz and the Dutch Center for export promotion from developing countries (CBI) conceptualized and financially supported the joint stand. The rest of the cost was shared by the wineries themselves,” said Goran Damovski, Deputy Chief of Party Technical Operations at AgBiz.

According to him, it’s a misfortune that Macedonian wines were not present at the fair this year, especially because of the difficulties that Macedonian wineries are currently imposed on while exporting to the German market due to the protected geographic origin of the region “Macedonia” registered by Greece.

“It is a pity to lose the continuity from the last year, given that the presentation of Macedonian wineries at the fair in Düsseldorf was the first joint and most organized event. I think that Macedonia was very

6 well presented and it was also supported by the German buyers,” noted Damovski. Last year in Düsseldorf at a joint stand of 120 square meters exhibited Tikvesh, Skovin, Stobi, Bovin, Vardarska Dolina, Lozar, Imako Vino, Popova Kula, Dalvina, File and Ezimit.

Wineries alert that beside the former Yugoslav markets, ¾ Germany is traditionally the Germany is their most important European market. They say second largest wine export that Government support to increase the export of branded market for Macedonia. bottled wine to Germany is required! According to Skovin Although almost 100 % of winery that had a representative at ProWein, the Macedonian Macedonian wine export is wine export to Germany is continuously decreasing from year in bulk, the export decreases to year. continuously from 2007! “According to the recent information received from the German institutions, Macedonian wine export to the German market decreased by 20.3% in volume, and 12.2% in value in 2008. On the other hand, the sales of Macedonian wine in Germany decreased by 18 %,” said Mile Kostov, commercial director of Skovin.

According to him, the reason for this situation is the substitution with the German red wine, which the Germans prefer more; regardless it is from 30 to 40 percent more expensive than the Macedonian wines. “I anticipate that the total export of Macedonian ¾ According to the export director in wines to Germany will continue to decrease. Everyone Tikvesh, Katerina Kostovska, wants to penetrate in that market. So, I think that the Germany should be one of the key key for Macedonia to succeed is to export more bottled wine,” said Kostov. wine markets for Macedonia. He explains that the largest portion of the quantities that Skovin exports to Germany annually is bulk and the wine is sold in retail chains under a private label. Skovin also exports wines under their own brand, but it is a smaller percentage and mainly sold into the specialized wine stores and Balkan restaurants in Germany.

“Given that Germany is one of the largest wine importers in the EU, the competition is huge. Therefore, I think that Macedonian wines can succeed only if they manage to break through as high quality wines. That is the only way to be recognized, but to achieve this, wineries should participate in wine competitions, and specialized wine journalists to write about them,” said Kostov. He explains that any foreign wine is evaluated and scored by a special wine commission prior entering in the German retail chain store. Only the wines that are evaluated with a minimum of 12 points (out of possible 20) enter at these markets.

According to Kostov, regardless of these criteria, the German market is important and should not be neglected. “It is easer to strengthen the position at markets we are already recognized, like the German one, rather than to attempt to penetrate in new markets where Macedonian wines are not known at all. We only have to work on improving the quality,” adds Kostov.

“Regardless of the lower segment of Macedonian GORAN DAMOVSKI wine as it is recognized in Germany, we are totally AGBIZ DEPUTY CHIEF OF PARTY TECHNICAL uncompetitive as a wine country at the UK OPERATIONS market. But both French and Italian wines are also low-priced at that market. Therefore, I “It is a pity to lose the continuity from the last believe that with the smallest investment in year, given that the presentation of Macedonian Germany we can achieve more, but the wineries at the fair in Düsseldorf was the first Government should promote the Macedonian wine joint and well organized event. I think that brand”, said Kostovska. Macedonia was very well presented and it was also supported by the German buyers”.

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However, she doesn’t believe that the wineries can rapidly achieve serious success at the German market, primarily due to Macedonian wines are not included in the European list of wine classification.

The new Law on Wine envisages wines registration by geographic origin, which complies with European practices for wine classification, but Kostovska is warning that it will take time to implement the registration.

WHAT ARE THE SPECIFICS OF THE GERMAN WINE MARKET? German wine market experts say that wine is generally purchased at big supermarkets - discounts. The largest quantities of bottled wine are sold at very low retail prices, predominantly French and Italian wines, and wines from the countries as known as the New World as well, such as South America, Chile, New Zealand, and Slovenian and Hungarian wines. In addition, according to the experts, the Austrian and domestic German wines as well, are experiencing expansion on the German market lately. On the other hand, Germany imports large quantities of bulk wine from all over Europe which is packed in their famous factories. The Government protects its own wines, and at the same time by increasing the production at domestic factories adds value to the gross domestic product accordingly. Otherwise, the average retail price per liter of imported bottled wine in Germany is 1.3 Euros. Due to these specifics, high quality wines hardly penetrate at the German market. They are sold at specialized wine shops exclusively, which is an insignificant percentage share of the total German wine market sales.

“As long as Macedonian classification is not established and incorporated into the European list of wines classified by geographic origin, Macedonian wines will be considered as table wines. Regardless of Tikvesh wines “Bela Voda” and “Barovo” originate from micro location, we are not able to register them under such classification at the German market, but they are treated like wines from the lowest segment,” said Kostovska.

According to her, the Macedonian branded wines will not attain a serious success at the German market until Macedonia resolve issues related to the geographic origin, wine region registration, vineyards and specific locations.

“Tikvesh’ goal for the German market is export of MILE KOSTOV branded bottled wine, but we estimated that it COMMERCIAL DIRECTOR OF SKOVIN would be a great expense if we are the only one that would investment in bottled wine promotion, “Given that Germany is one of the largest wine while others continue to export bulk wine. importers in the EU, the competition is huge. Therefore, I believe that the Government should Therefore, I think that Macedonian wines can focus on supporting Macedonian wines’ succeed only if they manage to break through as promotion at this market”, adds Kostovska. high quality wines. That is the only way to be recognized, but to achieve this, wineries should participate in wine competitions, and specialized wine journalists to write about them”.

Web: www.kapital.com.mk Date: March 31 2011

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PRINT Media Medium: CBImagazine Journalist: Sara Sharpe Issue 327/March 2011

Title: The Uniqueness of Macedonian Wine

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Website: N/A Date: March 2011

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