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Trading of Agricultural Products between Countries from Balkan Region

Ilaz Ameti*, Naser Raimi, Oriola Vukaj

State University of Tetovo, Faculty for bussines administration, Shkolla Fillore, “Kongresi Manastirit” Çair Shkup, Republic of Macedonia

Abstract: Republic of Macedonia has solid trade relations with many countries in the world. The most important trade partners for Macedonia, when considering trading volume and value, are member states of EU and countries from Balkan region. Trade value of agro complex products is on average 556, 2 million $; 63, 9% goes to food; 15, 55% to beverages and 25, 7% to tobacco. Import value exceed export value by 721, 2 million $. In view of export value for both aforementioned values, goes to Serbia and the least to Moldova. In the same time, when considering export value per person of agro complex products first place goes to Kosovo, and last to Moldova while fruits and tobacco comes from Serbia, and the least from Romania. In general Macedonia´s most important trade partner in Balkan region is Serbia, second place Kosovo while trading with Moldova is nearly insignificant

Keywords: Balkan, agro complex, export, import, cost, average, ranking list

Received February 25, 2015; Revised April 02, 2015; Accepted April 08, 2015

Citation: Ilaz Ameti, Naser Raimi, Oriola Vukaj, Trading of Agricultural Products between Countries from Balkan Region. World Journal of Agricultural Research, 3 (2). 86-90. January 2015. doi:10.12691/wjar-3-2-10

1. Introduction

Food production is the most important human activity, first for its own existence, and secondly for animal nutrition. Larger number of agricultural products is used in their basic form, while other products are processed in food industry. Also, some products are transformed into high-quality livestock products.

Agricultural production in the Republic of Macedonia has relatively high economic value. When expressed in current cost, agricultural production in Macedonia in 2013 reached 556, 7 million $ out of which 70% goes to vegetable products, and the rest to livestock products.

Agricultural surpluses are subjects of national and international trade exchange.

The Republic of Macedonia has import-export relations with almost every country in the world. Macedonian agro complex, i.e. food sector, had continuously imbalance between export and import, according to Anakiev B., N. Georgiev [1] who conclude that, because of the relative proximity, traditional or easily available links and other advantages over other markets, the Balkan countries is especially suitable for fresh products such as vegetables and fruits, grapes for eating, early vegetable products, and products intended as raw material for canned industry.

The flow of goods, which is already growing during the accession discussions, will intensify between the old and new member states, especially in case of agricultural and food products. This is fully anticipated also because of the prior experiences of those CEECs who joined in 2004 and 2007 (Kazlauskiene, Meyers, [6].

To increase export of agricultural and food products Vlahovic B. et al. [4] is recommend modernization of agricultural and food industry as well as different attitude toward farm subjects in the agro-industry. The most important partner for the Republic of Macedonia is EU, and right behind are the countries from Balkan region.

2. Data Source and Working Method

In this thesis, along with data from the literature, as well as official data from the state institutions, mainly from State Statistical Office, and Ministry of Economy in the Republic of Macedonia, there are also information provided by web pages of statistical offices of countries in the Balkan region. Some of them are taken from FAOSTAT and EUROSTAT. When compared with national statistics, these information showed some differences. This is because national statistics and international institutions use different methods for interpreting the data.

Therefore, to provide objective researches, their tendencies, common correlations and validity, the following methods were used: Description, interdisciplinary approach, history analogies, comparative method and theoretical analysis. The goal of this thesis is to provide an analysis of the structure of unprocessed agricultural products trade exchange with the countries in Balkan region, with an emphasis to vegetable, fruits and tobacco because the Republic of Macedonia has positive trade balance only for these specific products [2].

I. Avarage volue or arithmetic calculation using the formul;

II. Production value in a free ecomomy using the formula;

III. Bilans success formula;

2.1. Merchandise Trade between the Republic of Macedonia and Countries from Balkan Region

Average value of export of agricultural products from agro complex in countries from Balkan region (2009-2013) is 386 559 000 $, which is almost 64, 51% of total agro complex export (599 191 000 $). The good thing is that export value rises every year Table 1.

Table 1. The export value of agro complex (000 $)

The other bad thing is that export of vegetable, fruits and tobacco also decrease every year, but according to relative share in agro complex export, it has very weak intensity.

The most important trade partner for the Republic of Macedonia when considering export of agricultural and food products is Serbia with almost 37, 04% share in total export in the region Table 2. On the other side is Moldova with which Macedonia has the least 0, 01% export value.

The value of agro complex products export between neighboring countries of the Republic of Macedonia is on average 599 191 000 $.

Table 2. Ranking list of the countries in the region considering export value

According to the export value of vegetable, fruits and tobacco (group of products formed by SITC [14] Macedonian most important partner is Serbia with average export value of 36 450 000 $. Second place goes to Greece, third Bulgaria and Bulgaria switched places. Kosovo was on the second place by the agro complex export value, and this indicator shows that place on the ranking list now belongs to Greece. Moldova is on the last place with average share of 0, 03% in total value of vegetable, fruits and tobacco export.

Macedonian neighboring countries also have great meaning according to this indicator, because their share in total value of vegetable, fruits and tobacco export goes as high as 90%. When calculating the export value in EUR per capita for countries in the region, Kosovo becomes the most important trade partner for Macedonia. Every citizen of Kosovo in last period of time (2009 – 2013) purchased agro complex products from the Republic of Macedonia worth 29, 26 $ and 3, 06 $ worth products like vegetable, fruits and tobacco Table 3.

Table 3. Ranking list for the countries in the region, according to export value

On the other side, citizens from Moldova and Romania spent at least money for buying Macedonian agricultural and food products.

2.2. Import from Countries in the Balkan to the Republic of Macedonia

Table 4. Agro complex import value (000 $)

Besides exporting agricultural surplus, the Republic of Macedonia imports agricultural products, mainly when natural (climatic) conditions are not in accordance with optimal values (for example during winter). The countries in the region are valuable trade partners because total value of agro complex products which are imported from these countries is on average (2009 – 2013) 348 716 000 $, or 43, 49% of total import value in the country. In the period we researched, there was continuous increase of import value only in the last year of the research period had little of about 1% from the previous year in 2012 Table 4.

First place, obviously, goes to Serbia. But comparing import and export values from Serbia, import value exceed export value by 54, 6 million $.

Table 5. Ranking list of the countries in the region, according to import value

When considering Bulgaria, Macedonia imports vegetable, fruits and tobacco the most. But, import value exceed export value by 77%.Vegetable, fruits and tobacco import value from Moldova is of minimum value, i.e. only 0, 02% share of total import value from the countries in the region.

Average agro complex products import value from neighboring countries of the Republic of Macedonia is 348 716 000 $, which is almost 43, 49% of import from all countries in the region. If the meaning of trade partners is rated by relative share in total vegetable, fruits and tobacco import, then the most important are first neighbors (Albania, Bulgaria, Greece, Kosovo and Serbia) from where comes near 90% of total import.

Exchange balance with countries in the region

When trading agro complex products with countries in the Balkan region, the Republic of Macedonia has positive trade balance Chart 1. The analysis of balance by the country shows that there are countries from where Macedonia imports products with higher value than export value. This deficit has unstable value, i.e. it differs from year to year.

Contrary to the agro complex composition, Macedonia has surplus as high as 95 billion $ from the exchange of raw vegetable, fruits and tobacco Table 6. The higher positive balance is with Greece, opposite to Moldova.

Table 6. Balance of export and import for vegetable, fruits and tobacco (000 $)

3. Conclusions and Recommendations

Based on the results from the research of the organization of market of agricultural products in Balkan region, following conclusions can be made, as well as the recommendation for external exchange with foreign countries:

1. The market for agricultural and food products in the countries from the Balkan region is relatively high, because the region encompasses about 8% of total territory of European continent, and 10% of total European population.

2. The most interesting agricultural products import, considering degree of population are Kosovo, Albania, and then Moldova, Bulgaria, Serbia and Greece, because in the country with higher population the distribution of the products is faster and cheaper.

3. In the countries from the region, the highest agro complex export (according to the value indicator) is with Serbia, and the least with Moldova. Vegetable, fruits and tobacco exports the most in Serbia, and the least in Moldova.

4. If the total export is in correlation with the number of citizens in the import countries, then the first on the ranking list is Kosovo, and the last Moldova.

5. According to the agro complex import, the first on the ranking list is Serbia, and Bulgaria is the first in vegetable, fruits and tobacco import. The least import comes from Moldova.

6. Positive balance in the region comes from external trade exchange with vegetable, fruits, grapes, wine and tobacco, because of higher import and export value.

References

[1]   | Anakiev B. Sekovska Blagica (2005): Macedonian imbalance between exports and imports of food. Proceedings: Access the products agro complex to external and internal market, 38-51, and MAFWE Skopje.
[2]   | Ameti I. (2013): Organization of the market for agricultural products in the Balkan region. Doctoral dissertation, Ss, Faculty of Agricultural Sciences and Food, Skopje.
[3]   | Blazhevski B. (1999): Removal restructuring agrokompleksot. Proceedings: Third Scientific Meeting of Agrarians of RM 87-96 16-17 April 1999, Bitola.
[4]   | B. Vlahov, D. Tomiħ, Gorgeviħ M. (2011): Foreign trade of agro-industrial products Danube region countries. EP, no. 58, SB-1, 284-291, Belgrade.
[5]   | Lampietti, J., Lugg, D., Van der Celen, P., Branczik, A. (2009): The Changing Face of Rural Space - Agriculture and Rural Development in the Western Balkans, World Bank, Washington, USA.
[6]   | Kazlauskiene, N., Meyers, W. H. (2004): Implications of EU Accession for Trade Regimes and Trade Flows of CEECs, Agricultural Sciences, Lithuanian Academy of Sciences,
[7]   | Mizik, T. (2011): A Snapshot of Western Balkan’s Agriculture from the Perspective of EU Accession, Studies in Agricultural Economics.
[8]   | Volk, T. (ed.), (2010): Agriculture in the Western Balkan Countries, Studies on the Agricultural and Food Sector in Central and Eastern Europe, Vol. 57, IAMO, Halle/Saale, Germany.
[9]   | World Bank (2013): Albania. World Bank Group Partnership – Country Program, March, 2013, Washington D.C., USA.
[10]   | Zeneli M., Melani P. (2012): Nxitja e produktiviteteit të agro-industrisë në Shqipëri. Konferencë shkencore ndërkomtare: Eficienca dhe konkurueshmëria e prodhimit në sipërmarjet e agrobiznesit, Tirana,Albania.
[11]   | http://www.stat.gov.mk/
[12]   | http://www.instat.gov.al/al/home.aspx
[13]   | https://ask.rks-gov.net/
[14]   | www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF 8#q=standard%20international%20trade%20classification.