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WILD GATHERED PRODUCTS VALUE CHAIN ANALYSIS IN MACEDONIA

WILD GATHERED PRODUCTS VALUE CHAIN ANALYSIS IN MACEDONIA. Workshop Oteshevo 14-16 May 2018. Wild gathered products value chain analysis. Approach and methodology

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WILD GATHERED PRODUCTS VALUE CHAIN ANALYSIS IN MACEDONIA

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  1. WILD GATHERED PRODUCTS VALUE CHAIN ANALYSIS IN MACEDONIA Workshop Oteshevo 14-16 May 2018

  2. Wild gathered products value chain analysis • Approach and methodology • Primary data collection – analyzing trends, traders issues, market requirements, demands, supply-questioners with direct beneficiaries processors, traders and exporters-interviews • Secondary data collection-State statistical office-customs office-past researches

  3. Wild gathered products value chain analysis • Collection trends-traditional activity for people in under developed areas-never considered as a significant commercial activity and export potential-pharmacological company increased collection till the 90’s-early 90’s increase collection of wild mushrooms, berries, lichens and mosses when private companies start export to Italy-market increase since then – market requires more quantity that current supply-collection period – early spring till late autumn-4 main product groups: wild mushrooms, medicinal and aromatic plants, lichens and berries

  4. Wild gathered products value chain analysis • Import-small import compared to export values • Processing -processors usually exporters -semi final products for exportmushrooms: fresh, chilled, frozen, fried, driedBerries: fresh, frozenLichens: driedMAP: dried

  5. Wild gathered products value chain analysis • Export value per product group1. Wild mushrooms-fresh or chilled -dried-regional market less significant (Serbia, Bulgaria fresh – Serbia, Slovenia, Romania - dried)-European market large • Most significant export partners -Italy (>50%), France, Germany, Austria and Spain

  6. Wild gathered products value chain analysis • Export value per product group2. Lichens-Export mostly Morocco, Spain ,France • 3.Wild berries*fresh berries -EU market less significant – almost all export to regional market in Serbia *processed berries -European market – mostly Austria and Italy

  7. Wild gathered products value chain analysis • Export value per product group4. Medicinal and aromatic plants-increasing export value in past years-EU market >60% Germany, than Italy and France-Regional market mostly Serbia, than Croatia, Slovenia, Bulgaria-Overseas USA and Australia

  8. Wild gathered products value chain analysis • MAP • Value chain of WGP in Macedonia not very well organized and structured • Easy to determine links and how to improve • This value chain is supply driven as everything depends on the supply that cannot be predicted • Large export market – unlimited quantity for Macedonia

  9. Wild gathered products value chain analysis Analysis of the stakeholders in value chain • Gathers / collectors-number increases (registered and not registered – certified)-usually sell products fresh and dried-most collector do not have equipment, skills and will for adding value to the product • Traders / agents-all time traders-season traders – un loyal competition not registered 30% of buy out quantity, sells to processors • Processors-main players with power in the chainalmost all product export by them – value chain depends on them-investments for business capacities, standards, buy out stations, identify export markets

  10. Wild gathered products value chain analysis Stakeholders in value chain • Domestic sales companies-small quantities of medicinal and aromatic plants-mainly production of tea and medicinal supplements-small quantity mushroom for restaurants and supermarkets-small insignificant players for the sector • Importers – traders and processing companies-buy semi finalized products for packing and selling in supermarket or raw material in pharmacological and cosmetics industry-they define product need, price and quantities-they move the market and development of the sector-poses greatest power in value chain

  11. Wild gathered products value chain analysis Employment in the value chain • Collectors- not all registered collectors, mostly seasonal workers-collection was traditional activity in past, but diminished in phases of industrialization-reintroduced in 90’, since then number is increasing-middle aged, unemployed, lost jobs in large bankrupted companies, local population-app 12.000 (2008) • Buy out companies and traders-app 80 companies-app 100 not registered traders(2008)

  12. Wild gathered products value chain analysis Employment in the value chain • Processing and export-app 20 -30 companies - permanently employing app 600 persons -app 3000 person in season of processing -organize export of products • General overview app 20.000 families have regular links in the sector • Large employment opportunities – depending on regulation and organization • Need for integrated system Collection processing export monitoring

  13. Wild gathered products value chain analysis Pros in the value chain • WGP generates income for locals, quickly sold product • Sector provides employment (possibilities for rural women) • One of the highest quality products recognized in EU and regional market • Products have more than one buyer • Different price for different quality • Price differential depending on quantity • No need for pro harvesting activities • Its nature sustainable activity • Existing supply chain connecting producers and consumers • Increases export earnings on national level

  14. Wild gathered products value chain analysis Cons in the value chain • Supply depends mainly on climate conditions • Sector is not organized • Legal framework not clear and not operational (licenses, taxes) • System on integrated management of natural resources not applied • No mapping of the collection areas and quantities • Prices are market driven • Weak marketing and promotion of the sector • Limited traditional markets • No / low final products • Absence of branding

  15. Wild gathered products value chain analysis Conclusions and recommendations • Sector provides income for most vulnerable groups • Country rich in biodiversity • Need for mapping , valorizing importance of WGP and developing mechanisms for it’s protection • Need for monitoring mechanisms and protection of threatened species • Need adequate mechanisms for future management and sustainable use of available resources • Potential for establishing system of price control, common market approach, branding and protection of species • Limited market – problems with fair prices • Potential for increase markets and value added for the product • Strong recommendation to solve the problem with taxing collectors

  16. MEDICINAL AND AROMATIC PLANTS VALUE CHAIN ANALYSIS IN ALBANIA Workshop Oteshevo 14-16 May 2018

  17. MAP value chain analysis • FOCUS • Value chain on sage and lavender -huge importance of economy -largest export commodity-farmers income • MethodologyThe value chain analysis was divided into two parts – one for the domestic value chain and another for the international value chain. • Analysis -Primary data – interviews and field visits(seedling producers, harvesters, processors, exporters)-Secondary data – past studies and researches

  18. MAP value chain analysis • Economy importance-MAPs continue to be a large export earner for the country at a size of $28 million, or about 18% of total agricultural exports-In northern Albania, income from MAPs contribute to 35% of total income • MAP species-In Albania there are about 200 species of MAPs that are traded in the international market -sage contributing to about 33% of the total export (about 50% five years ago)-reasons for this is the unsustainable practices carried out in harvesting sage.

  19. MAP value chain analysis • Wild harvesting versus cultivation-sage and lavender are the most prominent MAPs amongst new farmers who undertake cultivation-sage is harvested/ cultivated twice a year -lavender is cultivated only once a year • Cultivation of MAPs has been on the rise due to shortage of wild harvested MAPs, many times due to unsustainable harvesting practices of wild MAPs, and at the same time due to encouragement given by the government in the form of subsidies.

  20. MAP value chain analysis • Domestic value chain analysis-primary value chain – production, cultivation, harvesting, processing, export-support services – include service provided by agriculture technology transfer center ATTC , financial and quality support institutions

  21. MAP value chain analysis • Primary value chain analysisSeedling production -sage is still most wild harvested-government provides subsidies for cultivation of MAP-quality of Albanian seedlings is much higher than foreign seeds -as productivity is lower and revenue is determined by quantity with no reference to quality, cultivators prefer foreign seeds Harvesting/ cultivation-wild harvesters undertake improper harvesting practices, affecting long term sustainability of wild sage (uprooting whole plants, using sickles to cut the plant-bad practices lead to extinction of sage-lack of proper drying and storage facilities lead to a reduction in the quality of MAPs.

  22. MAP value chain analysis • Primary value chain analysisProcessing / export-processor are also exporters-about 60% of sage is processed and finally exported-40% is processed by some exporters into essential oils -organic certification is sufficient for export (EU and USA)

  23. MAP value chain analysis • Support service value chain analysisAdvisory services-consultancy from ATTC for quality of seedlings and knowledge hub-advisory services by Directorate of Agriculture by leaflets and fields visits (not efficient due to lack of experts included) Finance services-limited access to finance (high interest rates)-less finance need for cultivators-more finance support need for processors – they do not have financial flexibility for new technology and new marketsQuality related institutions-MAPs need to undergo phytosanitary and component tests to be able to qualify for export-organic certification can be done in Albania

  24. MAP value chain analysis • Export markets for Albanian MAP-Germany is the largest importer of Albanian sage (2- USA, 3 –Turkey) • USA increasing MAP export destination-Sage forms about 90% of overall imports of MAPs from Albania by the USA-Albanian sage consistently constitutes about 50% of sage import by the US. In 2013, the share increased to 70% of imports. • Albania is the second largest exporter of MAPs in the region after Bulgaria

  25. MAP value chain analysis • International value chain analysis • MAPs leave the Albanian boundary they go through agents who either act as middlemen just buying and selling MAPs or add value primarily in the form of further processing and quality control. MAPs undergo further processing to suit the needs of different consumers • Value addition-there is a value addition of about 4 times the procurement price -In other words, Albania is at the short end of the value chain for sage

  26. MAP value chain analysis *Albania has a mature sage market but that it is working at the short end of the value chain Recommendations

  27. MAP value chain

  28. Thank you for your attention !

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