Denaj provided an overview of the sector, emphasizing that economic development in the agriculture sector is now a reality and an irreversible trend, as evidenced by the figures, such as: a 70% increase in greenhouse areas; a 2.6-fold increase in exports; and the twofold expansion of the rehabilitated irrigated area.

Making a reference to the 2025 draft budget, Minister Denaj stated that the largest share in the budget is allocated to investments, with 20% earmarked for irrigation and drainage infrastructure, as well as flood protection. This allocation has increased by 18% year-on-year, although investments should be in the focus due to the climate change conditions and the terrain in Albania.

One of the key aspects emphasized by the minister was the effectiveness of the National Scheme over the years, where, according to her, the focus will be on “the merger of operators.”

“The issue raised in all the roundtables and protests by farmers throughout this year has highlighted the need for legal effect in transactions through what is called a contract. We are considering moving towards a broader organization than a simple bilateral contract, focusing on the merger of operators both horizontally – the farmers – and vertically – the collectors, exporters, and hospitality business, which is known as ‘Contract Farming,'” said Denaj, adding that they are awaiting a legal proposal and the combination of this scheme with the subsidy scheme from FAO.

“By the end of the year, both elements will be part of the analysis for the new scheme, aiming to ensure that the merger of operators, formalization of transactions, and food safety are the three basic criteria of the scheme, where the inclusion of farmers and agricultural sectors will naturally align with their function,” stated Denaj.

One of the objectives of next year’s budget, which the minister mentioned as very important for the economic development of the Albanian agricultural economy today, is to promote competitiveness through a focus on marketable and high-value products, product quality, increasing the economic scale to reduce costs, as well as encouraging mechanization and innovation.

Regarding the 2025 draft budget, Denaj emphasized that this budget is expected to reach 15 billion lek, representing an approximately 4% increase compared to the 2024 budget. This additional funding aims to support and strengthen the financing of key policies, such as the sustainable development of agriculture, ensuring food safety, the sustainable development of the fisheries sector and the blue economy, as well as improving administrative and institutional capacities, cooperation among stakeholders, innovation, and digitalization.

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During the deliberation of the draft budget for 2025 in the Parliamentary Committee on Economy and Finance, Malaj responded to opposition MP Arbi Agalliu, who raised concerns about the government’s failure to support the agricultural sector.

According to the head of public finances, agriculture has received the highest level of support, surpassing even sectors such as infrastructure, healthcare, education, and social protection.

“In 2023, support for agriculture was 47 million euros; currently, it stands at 150 million euros, recording an increase of 180%,” he said.

The minister highlighted that agriculture budget allocation is 673 million lek more compared to last year, also citing other indirect benefits.

“If we also consider the indirect benefits from the reduction of tax rates on agricultural inputs or the exemptions from VAT, support for this sector increases by an additional 5 billion lek,” declared Malaj.

Analyzing the direction of budget expenditures, Malaj said that 2% of the budget goes to the agricultural sector.

He added that Albania tops the list of countries in the region for budgetary spending on agriculture.

“Montenegro spends 1.7% of its total budget expenditures on agriculture, Bosnia and Herzegovina allocates 1.8% of its budget to agriculture. Even compared to countries in the region with similar economies, Albania performs better,” he said. /j.p/sm/

Minister of Agriculture and Rural Development, Anila Denaj, emphasizes that the 2024 budget for Agriculture allocates a fund of 14.18 billion ALL and supports 9 development programs in all its sectors.

“We will implement our programs for: Salary raise; Expanding the map of exports for agriculture, livestock and fisheries; Improvement of the Irrigation-Drainage infrastructure; Strengthening food security; Increasing Funding from the National Support Scheme; Sustainable management of agricultural lands through digitalization; Advising and increasing assistance for farmers”, Minister Denaj said in a post on social media.
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