Industry development now geared to a sustainable fishery sector

Albania has had a troubled course over the last 10 years as is true for many of it’s neighbours. The collapse of communism in Albania came later and was more problematic than in other Eastern European countries. The transition to democracy and to an open market economy began in 1991. The ‘new’ period was marked by a dramatic breakdown of public order and a mass emigration of people to Italy and Greece, while the country remained dependent on food aid for its survival. During the period 1990-92, overall GDP fell by over 50% from its peak in 1989. Industrial production fell by 74% and inflation rose to 226% in 1992. Much of the infrastructure, which was already in need of repair due to a lack of investment during the 1980s, was severely damaged as a result of the social unrest and general destruction of state property.

In 1996 the country was rocked by the well publicised collapse of several unregulated ‘pyramid’ investment schemes. The crisis has led to a major slowdown in economic activities and a sharp deterioration of the macro-economic framework with higher inflation (estimated at 28% in the first six months of 1997 alone), substantial depreciation of the exchange rate (with a fall in the value of the Lek against the USD of over 40% in the first six months of 1997) and a further deterioration of the fiscal deficit. GDP fell substantially.

At the micro-economic level, the crisis severely affected the manufacturing and service sectors and to a lesser extent the agricultural sector. The agricultural sector has been affected mainly by the restrictions to transport and trade resulting from the widespread insecurity.

The restoration of a sufficient level of security in the country, macro-economic stability and essential public functions is a key element to enable the revival and development of economic activity. The private sector is estimated to have contributed over 70% of the GDP in 1996, and its development is a top priority to promote sustained economic growth and employment in Albania.

Things are now changing with the Government committed to developing a sound sector strategy and in delivering effective public services focused on the sustainable growth of the industry.

Capture Fisheries

During the eighties Albanian’s fisheries traditionally produced around 14,000-17,000mt of fish and shellfish annually (about 8000-9000mt of marine fish; 3000mt harvested from lagoons, inland waters and aquaculture; and 3-5000mt of molluscs).

The capture fishing sector in Albania has substantial potential for development. Such development may both create sector employment and contribute to GDP. Although the size of marine resources off Albania are relatively contained due to the size of the country, several species appear highly valued in the world market. One other advantage is that Albania is physically well placed for marketing its products into the EU market.

However, over the last decade or so sector development has stagnated and lost direction as state-owned properties were privatised in the absence of proper and effective fisheries resource control and sector strategies.

Aquaculture

Aquaculture of freshwater and marine fish, molluscs and crustaceans is considered an important business in Albania with good developmental potential. The industry began at the end of the 60s. Until now fish farms have concentrated on the rearing of table size carps as well as fingerlings for re-stocking natural and artificial water bodies throughout the country. In addition a number of trout farms exist (mainly in the vicinity of Sarande and Dibra) as well as state-run facilities for the reproduction of the koran or Ohrid trout (Salmo letnica). Mussel cultivation takes place at a reduced scale in Butrintit lagoon, while shrimp are cultivated extensively at Kavaje fish farm.

Fish Processing Industry

Until the beginning of the 1990s the fish processing industry in Albania consisted of two factories producing preserved fish. However, since the beginning of the 1990s, and as a result of private enterprise and free competition, many fishing, marketing and processing enterprises have been established.

Today there are 34 approved establishments (for export to the EU) that carry out processing and marketing activities for fish and fish products. All these establishments are private companies.

The fish processing industry in Albania is mainly concentrated in areas near the main harbours. These are (from north to south) Shengjin, Durres, Vlore and Sarande. The main species caught are hake, mullet, cuttlefish, squid, seabream and seabass. The companies receive, process and export fresh fish products, mainly to Italy and Greece. There are also several large companies producing salted anchovies (canned or bottled - not sterilised) for export. Raw material is imported, mainly from Italy, Spain, Greece, Morocco and Argentina, and either arrives as frozen block or already salted in barrels. Part of the fish produced is sold on the domestic market. However, fish and fish products are not traditionally an important part of the diet of the Albanian consumer, with Albanians only consuming around 2.5 kg of fish per capita per year.

Marketing and trade

The main strength of the industry relates to its harmonised status as a fully approved "third country” for the "placing on the (EU) market of fishery products”. Albania has enjoyed this status for several years, and was one of the first Central and Eastern European countries to gain this status.

This allows the fishing industry to export to its near neighbours, Greece and Italy, which they do on a daily basis. With the full implementation of the shellfish monitoring system and subsequent (hopefully) lifting of the EU ban, live mussels will also be able to be exported to the EU.

This puts Albania in a strong position compared to its neighbours.

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