Albania is facing a paradox, where food prices for the first time in history exceeded the European Union average, but meanwhile, the country has the highest share of agriculture in its economy compared to all countries in Europe.
The latest Eurostat data revealed that the “agriculture, fishing and forestry” sector contributed 17.9% to the creation of Albania’s overall economic value in 2024.
This share is much higher than the European Union average of 1.7%, but also more than double compared to the countries of the region.
In second place is Kosovo, where agriculture brings 8.8% of gross added value. In third place is North Macedonia, with 8.8%, followed by Montenegro with 6.5%, Turkey with 6.3% and Bosnia and Herzegovina with 5%.
In the region, the lowest share of agriculture is in Serbia, with 3.7%, being lower than even Greece, 3.8% and Croatia, 4.1%.
In Albania, the contribution of agriculture to the economy has been decreasing over the years, while in 2019, this indicator was 21%, but the country remains the most agricultural in Europe. However, the large share of agriculture has not helped at all for the country’s citizens to have cheaper food products.
On the contrary, other Eurostat data showed that for the first time since 2005, when the European statistics unit measures the data, the Food and Non-Alcoholic Beverages Price Index for Albania has easily exceeded the 100% level. This means that food prices in Albania are 1% more expensive than the European Union average, while incomes, according to the purchasing power parity method, are 41% of the EU average. The most expensive food products for Albanian families compared to the EU are eggs, cheese, and milk, which have jumped to 131% of the EU average, from 119.5% the previous year.
Albania also has the most expensive prices compared to countries in the region. Serbs buy food at prices that are 96.4% of the EU average. In Montenegro, food costs 84.4% of the EU average, in Bosnia, 83.2% and the cheapest, not only in Europe, but also in the region, are in North Macedonia, at 73.4% of the EU average.
Albanian agriculture suffers from deep-seated problems, starting from land fragmentation, which does not allow for economies of scale, lower subsidies than in the countries of the region, low competitiveness, disruption of the value chain, and emigration that has reduced the availability of labor. The latest INSTAT data shows that the livestock sector is in free fall both in terms of the number of heads and the amount of production. According to INSTAT, there was a decrease in the number of heads in all types of animals for meat and milk, including chickens, in 2024 compared to 2023.