Albanian farmers who grow wheat on their land will receive financial assistance to the tune of 30,000 ALL (EUR 256) per hectare in a bid to stimulate local production as prices rise, causing many bakeries to shutter.
Bread prices have increased more than 70% in a year due partly to the rising cost of wheat, fuel, energy, and labour shortages caused by mass emigration. The Albanian government announced plans to help farmers up local production through subsidies as most of the country’s wheat is currently imported.
According to Prime Minister Edi Rama, applications for the scheme will be made through e-Albania, the government’s online portal and can be made between 1 and 23 September.
“Starting from September 1 to September 23, applications will be made online in e-Albania, and the beneficiaries will be both individual farmers and Agricultural Cooperation Associations, as well as natural or legal persons,” he wrote.
After Russia invaded Ukraine in February, Albania struggled to find a replacement source for the grain it consumed from Ukraine, instead continuing to import from Russia and Serbia.
Prices rose significantly, causing some bakeries to close and citizens of one of Europe’s poorest countries to feel the pinch even more.
The increased cost of wheat has meant that many bakeries have found themselves unprofitable. A bakery in the capital of Tirana that spoke to Exit said that he could not pass cost increases on to customers as they cannot afford it, so he is closing and moving abroad.
“If I increase my prices, my customers cannot afford it. I am losing money and throwing away bread. My electricity bill also worries me,” he said.
Another issue facing the wheat product sector is emigration, as both skilled and unskilled workers are leaving en masse. In 2021, over 42,000 people left the country officially, although the number is likely much higher when considering thousands of asylum seekers and those who emigrate through illegal means.,
Gezim Peshkopia, president of the Association of Doughs and Pastries, said, “We are suffering the problem of workers because Albanians do not want to work in their country. We have increased wages and care for workers. I think Albanians are still connected to the mindset of the 90s to leave the country, while bakeries need specialists, both in bakeries and in pastry,” he told Monitor.
Experts have warned that labour shortages could lead to the industrialisation of bread production, which goes against the Albanian tradition.
“This system would require a new production line; it would require cold rooms and more production costs. In addition, Albania will lose a tradition, that of bread production in artisanal condition,” said Peshkopia.
Currently, Albanian bread is produced mainly in bakery shops which produce for their own stores, while some produce a limited amount for sale in other shops. There are not large, industrial bread factories like in other European countries. But this could soon change, even considering the government’s new subsidy plan.
