Country agricultural strategy and policy concept

25 and smaller amount to Serbia and Croatia. With regard to imports for agro-food products from EU, again Germany, Slovenia, Italy and Bulgaria are the main partners covering more than 60%

of the total agro-food imports. Within the WB countries, Kosovo imports agro-food products mainly from FYROM, Croatia and Bosnia and Herzegovina.

26 through effective and profitable partnerships between the private sector, central/local government and local communities within the European context” (ARDP 2007-2013, 2010). The stated vision of the ARDP 2007-2013 was interpreted into the following main objectives:

 “additional income for farmers and rural dwellers, leading to improved living standards and working conditions in rural areas;

 improved competitiveness and efficiency of primary agricultural production, in order to achieve import substitution and take advantage of export markets;

 improved processing and marketing of agricultural and forestry products, through increased efficiency and competitiveness;

 improved on-farm/in-factory quality and hygiene standards;

 sustainable rural development and improved quality of life (including infrastructure) through promotion of farming and other economic activities that are in harmony with the environment;

 creation of employment opportunities in rural areas, particularly through rural diversification; and

 alignment of Kosovo’s agriculture with that of the EU” (MAFRD, 2010).

In order to make these objectives achievable, specific measures were identified on which policy, financial, legal, administrative and human resources were concentrated. The identified policy measures targeting ARDP objectives constitute of direct support measures and rural development support measures. The first pillar covers direct payments for the sheep and goat sector, the dairy sector, the crop sector, payments for beehives and support of fuel for harvesting. Whereas, the second pillar consists of rural development measures with a composition of four axes and eight measures presented as below:

Axis I → Competitiveness

Measure 1: Development of vocational training to meet rural needs;

Measure 2: Restructuring physical potential in the agri-rural sector;

Measure 3: Managing water resources for agriculture;

Measure 4: Improving the processing and marketing of agricultural products;

27 Axis II → Environmental and improved land use

Measure 5: Improving natural resource management;

Axis III → Rural diversification and quality of rural life

Measure 6: Farm diversification and alternative activities in rural areas;

Measure 7: Improvement of rural infrastructure and maintenance of rural heritage;

Axis IV → Community-based local development strategies

Measure 8: Support for local community development strategies.

The MAFRD has established relevant operational structures such as the Monitoring Committee (MC) M. d 01/99/09, the Managing Authority (MA) M. d 01/84/89 and the Paying Unit (PU) A.i No 01/2010 responsible for ARDP 2007-2013 implementation.

28 Figure 10: Operational structure of the MAFRD

Source: MAFRD.

29 Supported by the twinning project, the MAFRD prepared manuals on rules and procedures on the functional structure of the MC, MA, manuals on programing, monitoring and evaluation, and an organization chart and strategy for the further development of the PU. The MC, MA and PU were established in accordance with the Law on Agriculture and Rural Development No.03/L-098. In 2012, the PU was upgraded into the Paying Department (PD) which is now transformed into the Paying Agency which is in full compliance with the Instrument for Pre-Accession Assistance for Rural Development (IPARD) rules and procedures. The main duty of the PD is an execution of the supported schemes drafted by the MA and funded by Kosovo’s Government, bilateral and multilateral funds by the EU and other donor organizations. The Annual National Program for Agriculture and Rural Development was the key implementation document of the stated measures in ARDP 2007-2013. An implementation of the identified measures was also supported with an extensive information campaign, aiming at the increase of farmers’ awareness and promoting measures under the implementation.

An annual report of the Farm Accounting Data Network (FADN), annual monitoring and implementation reports prepared by the MAFRD, respectively by the Division for Monitoring and Evaluation and Paying Agency, are the key implementation and monitoring documents of the ARDP. In September 2012, the MAFRD in cooperation with the Kastner International and the Austrian Federal Institute of Agricultural Economics on behalf of the EU Twinning Project, elaborated a Mid-Term-Evaluation (MTE) in implementing the ARDP. The MTE assesses all implemented measures of the ARDP during the period of time 2007-2011. Based on the results and recommendations drawn by the MTE as well as through an intensive discourse with socio-economic partners, local action groups, agricultural producers and other organizations, the MAFRD supported by the EU Twinning Project prepared the first draft strategy for the ARDP 2014-2020. On May 23^rd, 2013 the draft strategy was firstly presented to the Steering Committee and later on (3^rd June, 2013) in conferences to all partners at interest. The conferences offered valuable opportunities to engage the vast array of stakeholders and interest groups in discussions and contributions to the agricultural policy debate and planning of the strategy for ARDP 2014-2020. The Rural Development Policy of Kosovo 2014-2020 will be oriented according to the new strategic directions of the EU Rural Development policy, by taking into consideration the earned experiences during the ARDP 2007-2013 implementation as well as the Country Strategic

30 Paper Kosovo (09.2013). The stated objectives of the ARDP 2014-2020 are closely based on the Instrument for Pre-accession Assistance II (IPA II) strategic policy objectives but also focus and reflect country strategic objectives for development and specific needs of the Kosovo’s agri-food sector, forestry and rural areas.

“Kosovo’s Rural Development Program 2014-2020 takes into account EU’s strategic objectives for rural development and focuses on the following six priorities:

1) Fostering knowledge transfer for innovation in agriculture, forestry and rural areas;

2) Enhancing competitiveness in all types of agriculture and enhancing farm viability;

3) Promoting food chain organization and risk management in agriculture;

4) Restoring, preserving and enhancing ecosystems dependant on agriculture and forestry;

5) Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in the agriculture, food and forestry sectors;

6) Promoting social inclusion, poverty reduction and economic development in rural areas”. (MAFRD, 2013).

The overall objectives of the ARDP 2014-2020 were defined as follows: “(i) to develop competitive and innovation-based agrifood sector with an increased production and productivity capable of producing high quality products and meeting the EU market standards, contributing to the security and safety of the food supply, pursuing economic, social and environmental goals by fostering employment and developing human and physical capital; (ii) to protect natural resources and environment in rural areas, addressing the challenges of climate changes by achieving sustainable and efficient land use and forestry management and by introducing agricultural production methods which preserve the environment; (iii) to improve the quality of life and diversify job opportunities in rural areas by fostering employment, social inclusion and balanced territorial development of those areas”. (MAFRD, 2013).

The strategic objectives of the ARDP 2014-2020 will be achieved through an implementation of the rural development priorities and measures under the EU IPA II and the National support measures addressing income, land use and irrigation infrastructure financed by national budget

31 and donors initiatives. Table 12 presents the selected measures which will be implemented in Kosovo, categorized under the four priorities of the EU IPA II for rural development.

Table 12: Selected measures to be implemented in Kosovo for the period of time 2014-2020 Priorities Measures Enhancing farm viability and competitiveness Investments in the physical assets of

agricultural holdings;

Investments in the physical assets of the processing and marketing of agricultural and fishery products.

Restoring, preserving, enhancing ecosystems Agri-environmental measures and organic farming;

Establishment and protection of forests.

Promoting social and economic inclusion Farm diversification and business development;

Preparation and implementation of local development strategies (LEADER).

Transfer of knowledge and innovation Improvement in training;

Advisory services;

Technical assistance.

Source: ARDP 2014-2020.

In out of nine selected measures, more than 60% of the ARDP resources will be allocated to the measures under the priority one (enhancing farm viability and competitiveness). Budget concentration into the priority one was based on strengths, weaknesses, opportunities, and threats (SWOT) analysis of the Kosovo’s agriculture and food processing sector.

32