 |
| A farmer in the Myzeqe Field harvesting lavender |
Albania has accumulated around 4,000 tons of medicinal plants due to the non-export of these crops, driven by falling prices and a lack of markets.
The majority of the unsold stock consists of wild and cultivated sage from the Malësia e Madhe region, with 80% being cultivated and 20% wild. Unsold quantities also include blackberry, red apple, and various tea plants, Monitor reports.
Filip Gjoka, the chairman of the Association of Medicinal and Aromatic Plant Exporters, stated to Monitor that the accumulated stock is considered high, accounting for 20% of the production value of exporting companies. Gjoka emphasizes that this situation is entirely a result of the depreciation of foreign currencies such as the euro and the dollar, which have lowered the selling price of medicinal plants.
Over the past year, the dollar has depreciated by about 12%, while the euro has depreciated by 9%. The high depreciation of the dollar has influenced a 20% drop in selling prices, as all industry costs are in local currency, while sales are in foreign currency.
Gjoka stated that it is essential for farmers to orient themselves through a campaign in collaboration with state institutions to cultivate plants for which there is a market demand, such as sage, which makes up the majority of the remaining stock. The non-sale of cultivated plants, according to him, has started to demotivate farmers.
Additionally, Gjoka added that to address this situation, the Association of Medicinal and Aromatic Plant Exporters has initiated a series of meetings with Albanian institutions, including meetings with representatives of foreign embassies (meetings with foreign embassies start on Thursday), aiming to promote and encourage the sale of Albanian products.
"The quantity of the stock accumulated due to non-sales is high, accounting for around 20% of the value of the production of exporting companies. I believe this has come entirely from falling prices in foreign markets influenced by the high depreciation of the dollar and increased demand post the Covid-19 pandemic. We will start a series of meetings with state institutions as well as foreign embassies to promote Albanian products, as one of the measures to reduce the accumulated stock slightly. Finding all the mechanisms to 'drain' the high stock created is a challenge for this sector," stated Mr. Gjoka.
The drop in prices has also been affected by the sharp decline in demand for medicinal plants in European and U.S. markets. Until the end of December 2023, operators reported that foreign market demand fell by 50% compared to 2022, entirely influenced by oversupply during the Covid-19 pandemic. Meanwhile, prices for plants such as sage, blackberry, and various teas have experienced significant declines.
"During the Covid-19 pandemic, many companies dealing with medicinal plants and various food products, due to fear of restrictive measures, stocked up on large quantities of products. The high warehousing created unsold stock in American markets, European states, and even Turkey, despite being a significant exporting country," previously stated Kujtim Zere, the administrator of "Albanian Herb."
He added that the issue of stocks, coupled with declining demand, will last for 2 years. Market stabilization is expected to begin in September 2024.
The main destinations for exports in the group "Oilseeds, industrial or medicinal plants, animal feed" continue to be Germany, the U.S., and Italy.
In total, around 11,000 tons of products in the group "Oilseeds, industrial or medicinal plants, animal feed" were exported in 2023. Exports for the January-November period fell by 21% compared to the same period in 2022, according to INSTAT data.
The lack of investments continues to keep the processing of medicinal plants at low levels. Among potential collectors, processors, and exporters, only 25% can produce the final processed product, while 75% are sold as raw materials without processing, losing a significant portion of the potential value that could be retained in the local economy.