The agrifood sector, a solid pillar of the Macedonian economy
The agriculture sector contributes to GDP for nearly 10% and is relatively stable. The main export products from Macedonia are tobacco, confectionary products, fresh and processed vegetables and fruits, and wine. Almost the totality of the Gross Agricultural Output (70%) is generated by crop production, where vegetables are the main contributors. Tomatoes, peppers and melons dominate the vegetable production. Other important agricultural products are fruit, cereals, tobacco and grapes for wine production as well as for direct consumption. Livestock output has a lesser importance; dairy farming with cow milk production dominates this sub sector.
Room for Improvement
The structure of the agricultural sector is characterized by small-sized family farms, owned or leased, and highly fragmented into small parcels. The state firms, generally much larger, are either not operating or in difficulties, often due the fact that their privatization is not completed.
The low amount of food processing in Macedonia due to problems with the supply of quality raw materials and unsophisticated suppliers, lack of skilled workers, and difficulty accessing financing.