Albania's Imports of Food Products Show Significant Growth

Person shopping in supermarket
 Person shopping in the supermarket
 Food products ranked among the top 20 most imported commodities in the country during the first seven months of 2023, in terms of value.

Customs collected around 8 billion lek from food import tariffs in the January-July period this year, which accounts for approximately 10% of the total customs revenue during this period.

While the country's trade balance for food improved this year, certain food imports saw a notable increase. In the first seven months of 2023, food imports were 2.3 times higher in value than exports, compared to the same period in 2022 when the ratio was 2.9.

However, while imports of cereals and sugar decreased on an annual basis, products like meat, dairy, beer, and processed foods experienced substantial growth due to higher demand, driven by positive developments in the tourism sector, Monitor reports.

For instance, food products were the fifth most imported commodity by value this year, generating 3.4 billion lek in taxes and tariffs.

In terms of taxes paid at customs, fuels topped the list with around 26.2 billion lek, representing 22% of customs revenues during this period. Cigarettes followed as the second most imported product, accounting for approximately 15.4 billion lek, or 12.6% of total customs revenue in the first seven months of 2023.

Tobacco is one of the most globally traded products due to its widespread consumption. In the 1980s, Albania used to produce 18-20 thousand tons of tobacco annually, almost four times the current annual consumption.

Our country has a favorable climate for cultivating this plant to reduce costly imports. However, strategies undertaken by governments during the transition period have not been successful. Currently, tobacco production is 1,200-1,400 tons per year, mostly for self-consumption.

Imports are increasing even in some food products, such as beer, despite the many local units and breweries in the country. Rising internal costs have made Albanian factories non-competitive with imported products. Imports have been increasing rapidly in recent years, a trend that continued into 2023.

The increase in meat imports is being driven by the crisis facing the livestock sector, where the number of animals is declining rapidly, while demand is increasing due to tourism, as Albanian traditional cuisine is heavily based on meat.

Fruits and vegetables continue to be the most imported group in the country, even though domestic production in greenhouses and collection and processing chains has improved.

Local production, which is largely intended for export, is increasingly leaving more room in the domestic market, a gap that is being filled by imports.
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