Only 25 percent of Albanian farms generate more than €5,500 a year from agricultural activities. More than a quarter generate less than €750. Around half generate an average of €1,700 per year, or around €500 per person of working age.
This is according to a study by the World Food Organization.
The results mean that some three-quarters of Albanian farmers generate a very low income from agriculture, well below the economically viable level.
Data shows there are some 350,000 farms in Albania and around 160,000 are less than 1 hectare. 142,084 are up to 2 hectares and only 49,000 are more than 2 hectares. In order for a farm to provide income for the minimum wage of two people and some surplus for investment, it must generate €5,000 a year. The FAO said that a 1 hectare farm can produce this income if the product is chosen carefully and has secured sales.
Agriculture is the sector with the highest share in the economy and employment, while agricultural products meet only 50 percent of domestic demand. According to official data from INSTAT, agriculture, hunting, forestry and fishing accounted for 18.63 percent of GDP in 2019. The sector grew by 1.35 percent in real terms last year.
The agricultural sector employs 36.4 percent of the workforce. Despite this, it has much lower productivity than in other countries in the region where this sector, although having a lower share in the economy, has higher productivity in farm profits and in exports.
Albania was ranked 36th in the world for the high share of agriculture in the economy, alongside African countries.
