Final Deliverable Kosovo Agricultural Opportunities Strategy Pristina, Kosovo February 10, 2010 DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government 0 Table of Contents Overview of Deliverable…........................................................................................2 Baseline Analysis of Agriculture Sector……………………………..…………………..7 – Quantitative Baseline of Kosovo’s Agriculture Sector……...……………………8 – Overview of Constraints and Opportunities……..………………………………40 – International Best Practices Assessment………..…………………………….102 Recommendations to Improve Kosovo’s Agriculture Sector…......………………...142 – Overview…………………………………………......……………………………143 – Recommended Diversified Crop Mix for Kosovo…......………………………144 – Initiatives & Action Plan for Implementation………….....…………………….210 – Reaching Kosovo’s Overall Potential………………………….……………….268 1 Table of Contents Overview of Deliverable Baseline Analysis of Agriculture Sector Recommendations to Improve Kosovo’s Agriculture Sector 2 The objective of this document is to present details of the Agricultural Opportunities Strategy, including findings from the analysis and recommendations for Kosovo’s agriculture sector Document Objectives Over the course of nine weeks, the Booz Allen team, including an agronomist, analyzed in detail Kosovo’s agriculture sector. The team developed findings along three main areas, including a quantitative baseline of Kosovo’s agriculture sector, current constraints facing the sector and an assessment of best practices in agriculture around the world Based on the analysis, the team developed recommendations in three main areas including: 1) a crop diversification initiative, including strategic crops of focus for Kosovo; 2) initiatives to address constraints in Kosovo’s agriculture sector; and 3) impact analysis showing the impact of the program on agricultural production and employment The team has briefed the US Ambassador to Kosovo, members of the USAID Mission, “EU Plus” donor group and representatives of the Government of Kosovo on the findings of the analysis 3 The Agricultural Opportunities Strategy (AgStrat) comprised five steps that spanned a total of nine weeks Kosovo AgStrat Project Approach Overall Project Duration: 9 weeks 2 CompleteComplete QuantitativeQuantitative BaselineBaseline andand ConstraintsConstraints AnalysisAnalysis Examine Kosovo’s export 1 performance according to 4 5 supply and demand DevelopDevelop ActionAction PlanPlan GaugeGauge StakeholderStakeholder RecommendRecommend CropCrop Study local and global trends && PrioritizePrioritize AspirationsAspirations && DiversificationDiversification forfor Examine current constraints InitiativesInitiatives forfor ConfirmConfirm ObjectivesObjectives and opportunities KosovoKosovo ImplementationImplementation Aggregate and review all Complete a study of the Recommend the actions GoK and USAID Kosovo 3 natural environment in and initiatives that will be reports, studies, Kosovo to determine what required to help Kosovo documentation ConductConduct can be grown in the reach its agricultural Reconfirm stakeholder InternationalInternational BestBest country potential objectives, guiding PracticePractice AssessmentAssessment Prioritize crops that can be Prioritize actions based on principles and priorities grown based on economic their impact in terms of Test initial hypotheses Examine successful attractiveness, economic value of production and concerning agricultural initiatives of other countries to feasibility and production employment strategy improve agricultural and marketing chain Recommend timeframes, Synthesize implications on performance considerations sequencing and key objectives and guiding Undertake analysis of the Recommend a short list of counterpart participation principles competition landscape high-value crops that should be introduced 1 week 3 weeks 2.5 weeks 2.5 weeks Source : BAH Analysis 4 We interviewed a number stakeholders, reviewed studies, documents and reports… List of Interviewees & Documents Reviewed IntervieweesInterviewees ReportsReports ExaminedExamined HEHE IdrizIdriz Vehapi, Vehapi, MinistryMinistry ofof AgricuAgriculture,lture, MinisterMinister ofof AgricultureAgriculture AgricultureAgriculture HouseholdHousehold Survey,Survey, 2007,2007, StatisticsStatistics OfficeOffice ofof KosovoKosovo RifatRifat Blaku, Blaku, MinistryMinistry ofof PublicPublic Administration,Administration, ViceVice MinisterMinister AgricultureAgriculture LandLand UtilizationUtilization ProjectProject Report,Report, 2008,2008, GFAGFA ConsultingConsulting GroupGroup HakileHakile Xhaferi, Xhaferi, MedihaMediha Halimi, Halimi, FetieFetie Muriqi, Muriqi, XhevatXhevat Lushi: Lushi: MinistryMinistry ofof GmbHGmbH // BVVGBVVG // DFFEDFFE // EuropeanEuropean UnionUnion Agriculture, Forestry and Rural Development Agriculture, Forestry and Rural Development TheThe KosovoKosovo GreenbookGreenbook – – A A StrategyStrategy forfor SustainableSustainable AgriculturalAgricultural andand IsufIsuf Cikaqi, Cikaqi, MinistryMinistry ofof Agriculture,Agriculture, DirectorDirector ofof PlantPlant ProtectionProtection Rural Development in Kosovo, 2003 Department Rural Development in Kosovo, 2003 Department Study on the State of Agriculture in Kosovo, 2006, ARCOTRASS SyleSyle Tahirsylaj, Tahirsylaj, MinistryMinistry ofof EnvironmentEnvironment andand SpatialSpatial Planning,Planning, DirectorDirector Study on the State of Agriculture in Kosovo, 2006, ARCOTRASS Consortium/European Commission Dr.Dr. ShukriShukri Fetahu, Fetahu, UniversityUniversity ofof Pristina,Pristina, FacultyFaculty Consortium/European Commission Dr.Dr. SkenderSkender Muji, Muji, UniversityUniversity ofof Pristina,Pristina, DeanDean KosovoKosovo PovertyPoverty Assessment,Assessment, 2007,2007, WorldWorld BankBank FlamurFlamur Kadriu, Kadriu, FoodFood andand VeterinaryVeterinary Agency,Agency, ChiefChief ofof VeterinaryVeterinary PublicPublic ReportReport onon PotentialPotential ofof GreenhouseGreenhouse IndustryIndustry inin Kosovo,Kosovo, 2008,2008, HealthHealth SectorSector IntercooperationIntercooperation BujarBujar Haxhidauti, Haxhidauti, Customs,Customs, ManagerManager ofof PerformancePerformance andand PlanningPlanning HorticultureHorticulture StrategyStrategy ofof Kosovo,Kosovo, 2009-20132009-2013 Department Department OutputOutput PricePrice IndexIndex andand PricesPrices inin Agriculture,Agriculture, 2008,2008, StatisticsStatistics OfficeOffice ofof Haki Kurti, Statistical Office of Kosovo, Chief of Agricultural and Haki Kurti, Statistical Office of Kosovo, Chief of Agricultural and KosovoKosovo EnvironmentalEnvironmental DivisionDivision TheThe RapidRapid RiseRise ofof SupermarketsSupermarkets inin CentralCentral andand EasternEastern Europe:Europe: IsmetIsmet Kastrati, Kastrati, PejaPeja Institute, Institute, DirectorDirector ofof AgricultureAgriculture ImplicationsImplications forfor thethe AgrifoodAgrifood Sector Sector andand RuralRural Development,Development, 20042004 BardhBardh Begolli, Begolli, PejaPeja Institute, Institute, HeadHead ofof LaboratoryLaboratory Audit of the Kosovo Fruit & Vegetable Sector (KPEP), 2009 AgranAgran Halimi, Halimi, AGROVETAGROVET Laboratory,Laboratory, MasterMaster ofof SoilSoil ScienceScience Audit of the Kosovo Fruit & Vegetable Sector (KPEP), 2009 DemeDeme Abazi, Abazi, Iber-Lepenc,Iber-Lepenc, DirectorDirector HorticulturalHorticultural strategystrategy ofof KosovoKosovo 20092009 –– 2013 2013 ArberorArberor Prekazi, Prekazi, Iber-Lepenc,Iber-Lepenc, DirectorDirector HorticulturalHorticultural PromotionPromotion inin Kosovo,Kosovo, 20082008 AvniAvni Kastrati, Kastrati, StatisticalStatistical SectorSector ofof Kosovo,Kosovo, DirectorDirector ProfileProfile ofof thethe MacedonianMacedonian FreshFresh VegetableVegetable ValueValue Chain,Chain, 20082008 Maliq Gjyshinca, Intereuropa Maliq Gjyshinca, Intereuropa ProfileProfile ofof thethe MacedonianMacedonian TableTable GrapesGrapes Industry,Industry, 20082008 Shefqet Kelmendi, Kelmendi Company Shefqet Kelmendi, Kelmendi Company VegetableVegetable ValueValue ChainChain Assessment,Assessment, 20082008 ArtanArtan Osmani, Osmani, EUEU CommissionCommission Training Interns in Milk Quality Field Work (KPEP), 2009 AntonAnton Selitaj,Selitaj, UNDP,UNDP, AssociateAssociate Training Interns in Milk Quality Field Work (KPEP), 2009 Audit of the Kosovo Fruit & Vegetable Sector, 2008 LuanLuan Hoti,Hoti, Intercooperation,Intercooperation, MarketingMarketing OfficerOfficer Audit of the Kosovo Fruit & Vegetable Sector, 2008 BetimBetim EmraEmra -- Manager Manager ofof CargoCargo Departament,Departament, PristinaPristina AirportAirport BusinessBusiness ConsultingConsulting inin AA GrowingGrowing KosovoKosovo WorkshopWorkshop Materials,Materials, 20092009 ArlindaArlinda Arenliu,Arenliu, PestovaPestova RespondingResponding toto SubsidizedSubsidized DairyDairy ImportsImports IntoInto KosovoKosovo (KPEP),(KPEP), 20092009 HabilHabil Zeqiui,Zeqiui, MinistryMinistry ofof AgricultureAgriculture StandardsStandards ofof IdentityIdentity forfor MilkMilk andand MilkMilk Products,Products, 20092009 Taulant Koshi, Eurofood Taulant Koshi, Eurofood VegcoVegco Business Business Model:Model: AA VegetableVegetable Packing,Packing, CoolingCooling && SalesSales Feim, Rexhepi, Perdrini Feim, Rexhepi, Perdrini Enterprise,Enterprise, 20092009 SelmonSelmon Shala, Shala, AgroqyshkuAgroqyshku