Macedonian agriculture will be modernized through a EUR 50 million investment, including the construction of distribution centers, strengthening of IPARD capacities, setting up a system for removal of byproducts of animal origin and training for farmers.
The World Bank will provide EUR 46 million, while the European Commission is set to grant EUR 4 million. The project is part of the four-year partnership framework with the World Bank.
Farmers, processors, retail chains and consumers will benefit from the project, while impacting the entire economy.
Minister of Agriculture, Forestry and Water Economy Arjanit Hoxha said the first component of the project, worth EUR 32 million, would have largest significance for farmers. It includes the construction of a agriculture-food platform in Skopje, distribution centers in Strumica and Resen, as well as increase of access to advisory services for agriculture producers and the agro-business sector.
“The agriculture-food platform in Skopje, which will also cover the Polog and Kumanovo regions, will incorporate a distribution center, contemporary dry storehouses, freezers, and technical center containing a truck cleaning and disinfection station, auxiliary equipment for filtering station and waste recycling station,” Minister Hoxha told a press conference.
A plant for byproducts of animal origin is also planned.
Finance Minister Fatmir Besimi said the project is of exceptional importance for the entire economy, considering that agriculture share in GDP stands at about 10 percent.
“If we take into account that half of the country’s territory is under agriculture fields, the potential for agriculture’s contribution in GDP is much bigger. We need systemic solutions that ensure a more comprehensive, quality and competitive production, networking and a good system for secure distribution of agriculture products and improvement of institutional capacities, especially with regards to the use of European funds,” noted Besimi.
The World Bank funds are secured under favorable terms, with a 12-year repayment period, including a 4-year grace period and a six-month EURIBOR rate currently standing at 0.1 percent.
“This project is expected to contribute to more jobs in rural environments and increase revenues through improved market access, high-quality training and advisory services,” said World Bank Country Director Massimiliano Paolucci.
He added that agriculture’s potential is still not fulfilled due to several restrictions such as poor productivity, lack of access to opportunities and limited knowledge in business management and markets by small agriculture producers.
