Comparative analysis of the socio-economic developments and competitiveness of the agri-food sector at a sectoral and macro level in the pre-accession countries :Executive summary

This study is a part of a project “Comparative analysis of agricultural sectors and rural areas in the pre-accession countries: Agricultural policy developments, situation of the agri-food sector and economic context” funded by Directorate-General Agriculture and Rural Development of the European Commission. The study's main objective is to conduct a comparative analysis of the socio-economic developments and competitiveness of the agri-food sector in the IPARD (Instrument for Pre-accession Assistance rural development programmes) countries (Albania, Montenegro, North Macedonia, Serbia, and Türkiye) at the sectoral and macro levels. The study collects and analyses data on market prices, output values, yields, rural/urban disparities, and various indicators of competitiveness. The study provides insights into the state of the agri-food sector in IPARD countries, identifies areas for improvement, and offers recommendations to enhance competitiveness and rural development. At the macro level, the study finds that IPARD countries are still far behind the EU average in terms of macro-economic developments. The COVID-19 pandemic has negatively impacted the GDP growth and exports of agri-food products in the respective countries. The agricultural sector in IPARD countries is crucial for their economies and has the potential for competitive advantage. However, small farm size and low productivity, limited export quality, and compliance with standards are challenges that need to be addressed. The study highlights specific subsector strengths and weaknesses, such as high fruit and vegetable yields and low cow milk yields in most IPARD countries. Rural-urban disparities are evident, with difficulties in accessing education in rural areas and gender inequalities. Migration and brain drain contribute to rural depopulation, and poor infrastructure negatively affects competitiveness. The study recommends investing in trade and transport infrastructure, creating incentives for youth in rural areas, and increasing yields through technological innovation, education, and cultivation of unused lands, while maintaining a balance between efficiency improvements and sustainability.