Frameworks regulating Albania’s agricultural cooperatives need reform to support agricultural sector

The Food and Agriculture Organization of the United Nations (FAO) in collaboration with the Ministry of Agriculture and Rural Development of Albania, held an important meeting to address the challenges faced by the country’s agricultural cooperatives and farmer associations. The event took place within the framework of the FAO project “Support for the amendment of the existing law on organizations of agricultural cooperation,” assisting to provide technical assistance for the final revision of the law and for the necessary institutional capacities building to ensure sustainability of the project’s objectives. Participants represented the line Ministry, FAO and various cooperative and agribusiness associations.

Deputy Minister of Agriculture and Rural Development, Arian Jaupllari underscored the vital role that cooperatives play in the sustainable development of Albania’s agricultural sector. He emphasized the importance of collaboration among all actors in the rural areas, stating "Our aim is to work closely with our partners, FAO and academia, to empower the cooperatives and create an environment where they can thrive."

The ad interim Assistant FAO representative in Albania, Aysegul Selisik, also highlighted the significance of ongoing collaboration. 

"FAO is committed to supporting Albania in strengthening its agricultural cooperatives and farmer associations, which are essential for creating a more organized and productive food system in the country," she said. Selisik noted the need to shift mindsets from the past experiences to contemporary organizational approaches, advocating for a new reform solutions able to improve the current situation.

The meeting served as a platform for national and international experts to present data on the current state of cooperatives, highlighting the sector's challenges and opportunities. The international expert from FAO, Goran Zivkov, shared best practices from both European Union (EU) and non-EU countries, offering valuable comparative insights applicable to Albania’s agricultural context. During his presentation, Zivkov highlighted successful value chains in the western Balkans, such as cereals in Serbia, cheeses in Montenegro, wine in North Macedonia, and olive oil in Croatia, noting that these successes stem from effective direct value chain organizations and farmer associations. He stated that establishing a proper farming registration system will be crucial for developing clear and effective policies in Albania. FAO expert, Shpresim Domi, pointed out the complexity of the technical and legal challenges that cooperatives face. He suggested that cooperatives should focus on pooling resources, asserting that collaboration and resource-sharing could help them overcome many obstacles.

In an interactive session, representatives from cooperatives across Albania raised several concerns, initiating constructive dialogue aimed at finding solutions. Key issues discussed included the fiscal burden faced by cooperatives, government subsidies, organizational rigidity, and land ownership challenges in mountainous regions. The Head of Agricultural Federation in Elbasan expressed frustration regarding discrepancies between cooperatives and companies, noting that the financial obligations and taxes imposed on cooperatives make it difficult for them to operate effectively in the market.

Deputy Minister Jaupllari acknowledged the informality prevalent in the country and stressed the importance of formalizing farmer associations to gain a clear understanding of the agricultural organizational structure. He encouraged cooperatives to comply with the law.

The meeting concluded with both the Ministry and FAO reaffirming their commitment to work closely with cooperatives and other partners. 

“FAO remains committed to supporting Albania’s agricultural development by applying lessons learned from other countries, and we are confident that together we can overcome the challenges ahead,” stressed Aysegul Selisik.