March 24, 2014

Food Processing

There is a growing demand for the processed fruits and vegetables in Kosovo. Particularly, the demand for processed vegetables is high and increasing in urban areas. However, the majority of the domestic supply is imported, domestic processors still lack competitiveness to substitute imports, even though there is preference for domestic products. An important market for domestic processing companies is also the export market, processing companies are increasingly engaging in exports – especially through exporters that operate in Kosovo and target diaspora market in EU. There is high potential for domestic processors both in export and domestic expansion. To unlock this growth potential, domestic processing companies need to address problems related to weak product diversification, uncertain quality, low supply of processed products and underutilisation of capacities. Besides large-scale processing, there are numerous small-scale processors in Kosovo, which generally represent women associations and produce specific products known as “home-made” products.There is a growing market for such type of products in urban areas which could be exploited by overcoming problems related to quality inconsistency and standardisation. Based on team findings, the Vision of Change for the fruits and vegetables processing industry in Kosovo is based on two levels. The Market level with Increased productivity of producers, Increased utilization of capacities of processing companies, New final products offered by domestic processing companies, and Small scale processing companies access new market segments. As well as the services level with Improved system of product aggregation through collection centres, Provision of extension services by collection centres, and Feasible and appropriate planning and market research products are offered by private business consultanciesImproved market access is offered through private distributors. To tackle the constraints of the fruits and vegetables processing industry nine interventions are proposed. Interventions have been designed in order to achieve the Vision of Change for the sector. All interventions are designed to achieve ‘systemic’ market shifts that ensure sustainability. This implies that interventions will initiate market actors to tackle service weaknesses in the sector, who will then apply the necessary shifts in market systems.