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Investing in sustainable agrifood value chains and inclusive agribusiness in the Mediterranean region was the focus of a high-level forum on 21 September 2016 in the Albanian capital, Tirana.

The event was hosted by FAO’s Investment Centre, the European Bank for Reconstruction and Development (EBRD) and the International Center for Advanced Mediterranean Agronomic Studies (CIHEAM), in close collaboration with Albania’s Ministry of Agriculture, Rural Development and Water Administration (MARDWA).

The opening addresses were provided by H.E. Edmond Panariti, Minister for Agriculture, Rural Development and Water Administration and Mr Mohammed Sadiki, Vice-President of CIHEAM, followed by Mrs Victoria Zinchuk, Acting Director for Agribusiness at the EBRD and Mr Raimund Jehle, Regional Strategic Programme Coordinator at FAO. Following which, policy-makers and representatives of private sector companies, cooperatives, producer organisations, governments and academia took to the floor to identify areas where investment could boost sustainable agricultural production in the region and to share best practices.

“Sustainable food value chains are about people, profits and the planet,” said David Neven, Marketing Economist in FAO. “They are about creating jobs and stable incomes for farmers, processors and retailers, about enhancing competitiveness and profitability, about promoting the fair treatment of suppliers and workers throughout the value chain, and ultimately, about creating value for end-consumers in the form of more nutritious, safer and convenient food products. They are also about using water and energy more efficiently, while reducing food waste and its carbon footprint.”

Driving economic growth

Agriculture is a key economic sector in the Mediterranean employing nearly a quarter of the region’s workforce and has shown substantial growth in recent years. From 2003 to 2013, the production of fruits and vegetables increased by 24 percent, of dairy products rose by 8 percent and olive oil by 9 percent.

The Mediterranean faces a number of social and economic challenges. Youth unemployment is high and the region’s fast-growing population will likely reach 360 million by 2030, increasing the demand for food, jobs and energy. Water scarcity is another obstacle as is the increasing frequency of drought and other natural disasters caused by climate change.

The sustainable growth of the agriculture sector can help overcome these challenges: it can fuel economic growth and help increase job opportunities in rural areas. It can also decrease pressure on scarce natural resources.

Many producers in the region are already decreasing their use of potable water and energy through the use of treated waste-water and solar-powered pumping systems for better productivity and efficiency. Many companies have also introduced Sustainable Environmental Management as a corporate policy, with the objective of reducing the negative impacts on the environment. However, many challenges remain.

One way FAO and EBRD are working to make value chains more sustainable and inclusive is by developing geographical indications (GIs) – a sign used on high-quality goods linked to their specific geographical origin.  In Croatia, mandarins from Neretva valley and Kulen sausage from the Baranja region now have GI status. This global recognition communicates quality, safety and tradition to consumers, helping local producers tap into wider markets, both at home and abroad.

During the forum, participants discussed the importance of public-private dialogue, responsible agricultural investment practices and enabling policy and regulatory frameworks. They also looked at ways to improve access to markets and rural credit, establish linkages between agribusiness and farmers, strengthen capacities along the value chain and produce more with less.

Investing in Albanian agriculture

One panel discussion focused on Albania, the event’s host country, where nearly half of the country’s working age population relies on agriculture for a living.

As a candidate for European Union membership, Albania is creating a policy framework that strongly supports its agriculture sector and farmers. The country is working to increase agricultural productivity, strengthen its agrifood chains and reduce rural poverty. It is also making efforts to improve irrigation and natural resources management and adapt its agriculture to climate change.

Participants discussed public policies in Albania as well as investment opportunities – from making the country’s olive oil value chain more competitive and sustainable to improving food quality and safety standards in its dairy and meat sectors.

“Getting the private sector more actively involved in mobilising investment and promoting innovation can help strengthen the performance of Albania’s agricultural sector, and having more sustainable value chains will ultimately benefit all, from producers to consumers,” said Victoria Zinchuk, EBRD Acting Head of the Agribusiness sector.  

“EBRD is working closely with the Government of Albania and a number of commercial banks and micro-finance institutions to develop the country’s Agribusiness Support Facility, an initiative aimed at enhancing access to finance across the agricultural value chain in Albania,” she added.

Mr Cosimo Lacirignola, Secretary General of CIHEAM concluded the event by highlighting the importance of public and private sector partnerships to reach sustainable, responsible and inclusive development goals in rural areas. These issues are at the heart of the 11^th CIHEAM Ministerial Meeting, in which EBRD and FAO will participate, the day after the high-level forum.

The future of the region’s agriculture will be shaped by its sustainable growth. This will only be achieved if all players in the agricultural value chains work together to establish policies and practices and share knowledge and information to develop an equitable agriculture sector able to nourish 360 million people by 2030.