Market food in Tirana

AGRICULTURAL MANAGEMENT,
MARKETING AND FINANCE
WORKING DOCUMENT 15
The food supply and
distribution system
of Tirana, Albaniaby
Arben Verçuni
and
Edvin Zhllima
Agricultural Management, Marketing and Finance Service (AGSF)
Rural Infrastructure and Agro-Industries Division
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 2008
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Contents
LIST OF TABLES, FIGURES, MAPS AND BOXES iv
ABBREVIATIONS AND ACRONYMS vii
EXECUTIVE SUMMARY ix
1. INTRODUCTION 1
1.1 WHAT IS A FOOD SUPPLY AND DISTRIBUTION SYSTEM? 1
1.2 THE CITY OF TIRANA 1
1.3 THE TIRANA REGION 4
2. THE SOCIO-ECONOMIC, INSTITUTIONAL AND LEGISLATIVE CONTEXT 7
2.1 POVERTY 7
2.2 THE LABOUR MARKET 8
2.3 TRANSPORTATION 10
2.4 WASTE MANAGEMENT 11
2.5 INFRASTRUCTURE 12
2.6 THE POLITICAL AND MACROECONOMIC CONTEXT 12
2.7 THE INSTITUTIONAL CONTEXT 13
3. URBAN FOOD DEMAND, FOOD INSECURITY, AND FOOD SUPPLY AND
DISTRIBUTION SYSTEMS 15
3.1 URBAN FOOD DEMAND AND FOOD INSECURITY 15
3.2 FOOD SUPPLY SYSTEMS 18
3.3 URBAN FOOD DISTRIBUTION SYSTEMS 22
4. THE CITY AND THE FOOD SUPPLY AND DISTRIBUTION IN THE FUTURE 33
4.1 THE CITY IN TEN YEARS 33
4.2 THE STATUS QUO SCENARIO 33
4.3 THE DESIRABLE SCENARIO 35
5. CONCLUSIONS 37
REFERENCES 39
ANNEX 41
The food supply and distribution system of Tirana, Albania iii
LIST OF TABLES
1. OVERVIEW OF THE CITY OF TIRANA 1
2. UNEMPLOYMENT IN THE TIRANA REGION 9
3. UNEMPLOYMENT IN THE CITY OF TIRANA IN 1990 (IN PERCENTAGES) 9
4. EMPLOYMENT IN THE CITY OF TIRANA (IN PERCENTAGES) 10
5. MAJOR MEANS OF TRANSPORTATION IN THE CITY OF TIRANA (IN PERCENTAGES) 10
6. ANNUAL HOUSEHOLD CONSUMPTION EXPENDITURES, 1993, 1994, 2000
(IN PERCENTAGES) 15
7. COMPOSITION OF THE HOUSEHOLD BUDGET ACCORDING TO THE HEAD OF
HOUSEHOLD CATEGORY (IN PERCENTAGES) 16
8. ANNUAL TRENDS IN PRODUCT SUPPLY PER CAPITA IN ALBANIA, 1965–2002
(GRAMS/DAY) 17
9. HOUSEHOLD BUDGET 18
10. PRODUCTION, CONSUMPTION AND FOOD BALANCE IN THE CITY OF TIRANA 19
11. PRICES AND MARGINS OF THE MAIN FOOD PRODUCTS IN WHOLESALE AND
RETAIL MARKETS, 2004 20
12. DIFFERENT TAXATION LEVELS, 2005 30
LIST OF TABLES IN ANNEX
13. PEOPLE INTERVIEWED 41
14. DATA ON THE TIRANA REGION 42
15. POVERTY AND INEQUALITY INDICATORS IN THE TIRANA REGION 43
16. MAIN ECONOMIC DATA, 1998-2004 44
17. POVERTY INDICATORS IN ALBANIA, 1998, 2002, 2003 44
18. MAIN AGROFOOD PRODUCTION, 2000–2004 45
19. PRODUCTION OF FRUITS PER CAPITA, 2003–2004 45
20. SUPPLY LEVEL, PRODUCTION AND IMPORTS/EXPORTS FOR THE PROCESSED
FRUITS AND VEGETABLES SUBSECTOR, 2000–2003 (IN KG) 46
21. SUPPLY LEVEL, PRODUCTION AND IMPORTS/EXPORTS FOR THE FLOUR
SUBSECTOR, 2000–2003 (IN KG) 46
22. SUPPLY LEVEL, PRODUCTION AND IMPORTS/EXPORTS FOR THE OIL SUBSECTOR,
2000–2003 (IN KG) 46
23. SUPPLY LEVEL, PRODUCTION, AND IMPORTS/EXPORTS FOR THE SOFT DRINKS
AND FRUIT JUICE SUB-SECTOR, 2000–2003 (IN LITRES) 46
24. DOMESTIC PRODUCTION OF AGRO-INDUSTRY AND MEAT SUBSECTOR (IN
MILLION ALL) 47
25. FRESH MEAT PRODUCTION (IN TONNES) 47
26. PRODUCTION PRICE LEVELS, 2002, 2003, 2004 (IN ALL/KG) 47
27. PRODUCTION PRICE LEVELS FOR FOOD PROCESSED PRODUCTS (IN ALL),
2002–2003 AND THEIR VARIATION (BASE YEAR 2002) 48
LIST OF FIGURES
1. PRICE LEVELS FOR TOMATOES, PEPPERS AND GRAPES IN DIFFERENT MONTHS
OF 2004 21
2. MARKETING CHANNELS 23
3. THE DYNAMICS OF THE TIRANA POPULATION, 2001–2016 33
LIST OF MAPS
1. DISTRIBUTION OF NEW HOUSING AMONG TIRANA MINI-MUNICIPALITIES 2
iv List of tables, figures, maps and boxes
2. POPULATION DISTRIBUTION BY MINI-MUNICIPALITIES OF TIRANA 3
3. THE RING ROAD OF TIRANA 3
4. THE CITY OF TIRANA AND THE TIRANA REGION 4
5. POVERTY AND INEQUALITY IN THE TIRANA MINI-MUNICIPALITIES
(IN PERCENTAGES) 8
6. THE PUBLIC RETAIL MARKET DISTRIBUTION IN THE CITY OF TIRANA 25
7. THE PUBLIC WHOLESALE MARKET DISTRIBUTION IN THE CITY OF TIRANA 28
8. SLAUGHTERHOUSE DISTRIBUTION IN THE CITY OF TIRANA 29
LIST OF BOXES
1. CONSUMER PROTECTION ASSOCIATION 22
2. ASTRIT, TRADER, 45 YEARS OLD 26
3. ZANA, HOUSEWIFE, 42 YEARS OLD 26
4. PETRIT, WHOLESALER, 40 YEARS OLD 28
5. NARDI, STREET VENDOR, 35 YEARS OLD 30
The food supply and distribution system of Tirana, Albania
Abbreviations and acronyms
ACIT Albanian Centre for International Trade
ALL Lek (Albanian Currency)
EU European Union
FAO Food and Agriculture Organization of the United Nations
FNAP Food and Nutrition Action Plan
FSDS Food Supply and Distribution System
GDP Gross Domestic Product
GTZ German International Cooperation Agency
INSTAT Institute of Statistics
KM Kilometre
LSMS Living Standards Measurement Survey
MAFCP Ministry of Agriculture, Food and Consumer Protection
MDG Millennium Development Goals
MOE Ministry of Economy
MOF Ministry of Finance
MOH Ministry of Health
NSSED National Strategy for Socio-Economic Development
SAR Stabilization and Association Report
UNICEF United Nations Children’s Fund
WHO World Health Organization
The food supply and distribution system of Tirana, Albania vii
Executive summary
Metropolitan Tirana has experienced a drastic demographic change caused primarily by internal
migratory flows. The demographic growth in Tirana has led to urban expansion and loss of productive
land to the point that the regional food balance is now negative. An analysis of poverty distribution
shows that urban areas have lower poverty levels and higher consumption rates per capita than rural
areas. Tirana also has the highest socio-economic inequality rate: poverty levels average around 18
percent of the city population, vary considerably and are higher in the suburban mini-municipalities.
The poor in Tirana are food-insecure. In 2005 the population of Tirana consumed 215 151 tonnes
of food and is expected to consume 282 783 tonnes by 2016. The population is expected to reach
528 750 by 2016.
This report discusses a number of problems encountered in the effective management of food supply
and distribution systems (FSDSs):
• City supply and distribution channels are characterized by fragmentation and confusion regarding
role specialization.
• Consumers appear to be demanding higher standards of service in the food market
(55 percent think that they have inappropriate market facilities and 68 percent see street selling
as a problematic issue).
• There are 15 public markets in Tirana, although only 70 percent of this surface is currently
exploitable, only 50 percent of the capacity is exploited in the meat market.
• Transport infrastructure near markets is also poor and is likely to deteriorate as food demand
increases.
• Hygiene and maintenance conditions vary from market to market, but are generally poor.
• Sixty percent of fruits and vegetables sold year-round are imported from other countries, while
rural areas of the Tirana district contribute only seven percent of the total supply.
• The lack of a medium-term regulatory plan for Tirana adds confusion to the markets’
organization.
Some steps have been taken to address these market problems and growing demands. For example,
in 2004, ALL2 456 million (US$24 560 000) were allocated by the municipality for public investments
(the largest allocation in the last four years) in transportation and market improvement and upkeep.
The purpose of this document is to recommend other ways of improving the market system:
• Setting up and opening markets will obviously require involvement of public funds and/ or
powerful donors. Investments in already established markets should be aimed at re-planning
location and redesigning offered service mixes,and upgrading necessary infrastructure. Increased
efficiency of the market system will create opportunities for eliminating the abusive and
speculative component of marketing margins, thus allowing for a reduction of retail prices; if
costs are lower, lower margins will be needed to cover them.
• Suburban ‘informal’ areas should be legalized and become attractive locations to establish
markets and slaughterhouses. Central and local governments would lead programmes aimed at
supply regulation and would work together in developing local capacities.
The food supply and distribution system of Tirana, Albania ix
• Municipality staff should urgently be given some guidelines on effective management of the
markets.
• Foodstuffs wholesale markets and fruit and vegetable wholesale markets should be in different
locations and well distributed throughout the city – both of which are not the case at present
– in order to allow better planning of public retail markets, which get their supplies from
wholesalers.
• Meeting the increased food demand of the urban population will be problematic if links between
rural and urban areas are not strengthened.
• Special attention should also be paid to the establishment of other local markets and collection
infrastructure, which would improve the overall efficiency of the market system.
• Currently there is only one wholesale market for fruits and vegetables in Tirana, the Dinamo
wholesale market. This market cannot adequately face food flows coming into the capital city.
Upgrading and modernizing this and future markets is vital for future demographic growth,
otherwise the growing needs of Tirana will be satisfied by informal markets that emerge
spontaneously around the city.
If the central government does not show any special interest in investing in market infrastructure
improvements, in ten years the capital city’s market will be in the hands of imported goods and rural
areas will see their unsold products go to waste.
This document will discuss the food supply to cities subsystem, which includes all the activities
required to produce food and bring it to cities: production (including urban food production),
imports, processing, storage, assembling, handling, packaging and transport, etc. Also discussed is the
urban food distribution subsystem, which includes all the formal, informal, traditional and modern
activities that are required to distribute food within the urban area: wholesale, intra-urban transport,
retailing, street food, restaurants, etc. The document will also examine the institutional framework,
waste management, and urban food demand and food security in Tirana.
Executive summary
1. Introduction
1.1 WHAT IS A FOOD SUPPLY AND DISTRIBUTION SYSTEM?
FSDSs to cities are complex combinations of activities, functions and relations – production, handling,
storage, transporting, processing, packaging, wholesaling, retailing – enabling urban areas to meet their
food needs. Activities are performed by different economic agents, including producers, assemblers,
importers, transporters, wholesalers, retailers, processors, street vendors, service providers, packaging
suppliers, public institutions, and civil society organizations (FAO, 2001).
Dynamic and efficient FSDSs have a direct impact on living standards and on the quality of life. The
various functions performed by a FSDS can be grouped into two subsystems:
• the food supply to cities subsystem, which includes all the activities required to produce food and
bring it to cities: production (including urban food production), imports, processing, storage,
assembling, handling, packaging and transport;
• the urban food distribution subsystem, which includes all the formal, informal, traditional and
modern activities required to distribute food within the urban area: wholesale, intra-urban
transport, retailing, street food and restaurants, etc. (FAO, 2001).
While previous research focused on parts of the FSDS of Tirana, this study attempts to undertake a
comprehensive analysis of the FSDS, using a systemic approach.
1.2 THE CITY OF TIRANA
Tirana, the capital city of Albania, is situated in the centre of the country, at only 40 kilometres (km)
from Durrës, the largest port in the country, and 26 km from Mother Theresa Airport, the country’s
only civil airport. Table 1 presents some facts on the capital city.
Table 1. Overview of the city of Tirana
City’s total surface area (km2) 41.8
Tirana Region’s total surface area (percentage) 4.0
Population (2005) 402 290.0
Tirana Region’s total population (percentage) 54.0
On Albania’s total population (percentage) 13.0
Population density (persons/km2) 9 624.0
Tirana’s population density compared with Albania’s average 80 times higher
No. of households 105 876.0
National total (percentage) 12.3
The food supply and distribution system of Tirana, Albania
Tirana has experienced a drastic demographic change caused primarily by internal migratory flows.
The population increased by 43.4 percent between 1989 and 2001; up to 51 percent of the capital city’s
housing was built between 1991 and 2001. In Map 1, the dark areas show high levels of new housing
built after 1991.
Map 1. Distribution of new housing among Tirana mini-municipalities
Source: INSTAT, 2001
Demographic growth has been both a cause and a consequence of uncontrolled urban development,
which has been characterized by the chaotic building of housing (including illegal housing) in the
suburbs. In these newly populated areas, referred to as informal areas, roads, water and electricity
supply and sewage systems are in poor condition. The same is true for markets, processing and storage
facilities and transport infrastructure, which are all required to carry out food supply and distribution
activities. Since typical food outlets are often small and inconveniently located, consumers have to
invest time and money to reach the shops and bring food back home.
Map 2 shows the distribution of Tirana’s population in 2001 and its concentration in minimunicipalities
situated in the central part of Tirana, particularly within the ring road. The ring road is
the circular road shown in map 3, which ideally delimits the city’s core.
Many households living in the ‘informal areas’ get their food from:
• their own family gardens and plots;
• farm activity in their rural place of origin;
• local retail outlets.
For most of these households, access to food has deteriorated because of the financial constraints.
The practice of buying food on credit from small retailers is widespread.
Introduction
Map 2. Population distribution by mini-municipalities of Tirana
Source: INSTAT, 2001
Map 3. The ring road of Tirana
Source: INSTAT, 2001
The food supply and distribution system of Tirana, Albania
1.3 THE TIRANA REGION
The Tirana region is divided into two districts: Tirana (which includes the city of Tirana proper) and
the Kavajë district (see map 4). The region, one of the largest and most populated in Albania, is
situated in the central part of the country and is considered the most developed area of the country.
(See in the annex Table 14)
The Tirana district has three municipalities and 16 communes; the Kavajë district has two municipalities
and eight communes.
Map 4. The city of Tirana and the Tirana region
Source: INSTAT, 2001
Tirana is the largest manufacturing, commercial and administrative centre of Albania. There are
20 152 active enterprises in the Tirana region compared to 51 945 countrywide, or 39 percent of the
national total. Food processing is the most developed manufacturing sector in terms of contribution
to gross domestic product (GDP) at the national level, followed by building materials and clothing.
Some of the most important products include flavourings, cookies, sausages, dairy products, alcoholic
beverages and edible oils. Both the trade and the services sector play an important role in employment
generation. Trade of goods (45 percent) and services in bars/restaurants (10 percent) are important
self-employment and family business alternatives. Agriculture serves as a self-employment alternative
�������������������������������������������� The ����������������������������������������population density is 718 inhabitants/km2, and migration from other parts of the country is still growing.
Communes and municipalities are the first level of local government and regions form the second level. All these bodies are run by councils. Members of communal and
municipal councils are elected directly by citizens, whereas those of regional councils are elected by the representatives of communal and municipal councils of the region.
The mayors and the chairs of communal councils are mandatory members of their region’s councils. A law passed in 2000 gave regional councils special functions in local
activity planning and harmonization, and distribution of public services, which may be delegated to them by the central government. Communes are mainly rural, but also
include parts of urban outskirts. The administrative division in communes and municipalities have been based on population and on other socio-economic factors, but as
these have grown over time, the administrative division of the country requires modification.
About 35 percent of manufacturing companies, 32 percent of construction companies, 45 percent of services companies and 40 percent of trade companies of Albania
are located in the Tirana prefecture.
Introduction
for most of the rural population (26 percent of the active population in the Tirana region). Also, it
partly supplies local and national markets and food service outlets in the region. Livestock rearing is
an important activity and is primarily based on cattle, sheep and poultry; pigs and goats have a less
important role.
The food supply and distribution system of Tirana, Albania
2. The socio-economic,
institutional and legislative context
2.1 POVERTY
The situation in the Tirana region
The analysis of poverty distribution shows that urban areas have lower poverty levels and higher
consumption rates per capita than rural areas. Tirana also shows the highest inequality rate in Albania,
its Gini coefficient being 29.5 percent (see in the Annex Table 15). The average poor household
consists of a family with more than five members, low education levels and low employment rates.
The unemployment rate in poor families is almost twice that of better-off families.
Living and working conditions are the toughest in the poorer and more remote communes such
as Vaqarr, Shëngjergj, Baldushk and Zall-Herr, where income-generation capacity is limited by
insufficient production, processing and marketing skills and facilities. A potential source of income
may be the improved production of typical food, intended as a niche product, whose importance
should be further emphasized.
Communes situated in flat areas such as Ndroq and Kashar – located along the roads connecting
Tirana with Durrës and Kavajë, to the north and southwest respectively – have better access to
markets, because of better communication and transport infrastructure. In these communes, off-farm
activities are far more common than in other, more remote areas, and their high productivity enables
workers to generate greater incomes.
The situation in the city of Tirana
Tirana shows marked social-economic inequalities. About 18 percent of the city population lives in
poverty. Poverty levels vary considerably and are higher in the suburban mini-municipalities. Evidence
shows that most people who run businesses are above the poverty line, whereas those that rely on
wages suffer the most from poverty. Migrants also make up a large part of the poor population.
Many state-owned enterprises collapsed in the early 1990s, and the workers who lost their jobs then
are still in poor living conditions, with no security and stablity.
The official poverty line in Albania is set at ALL4 891 a month. However, since price levels in Tirana
Referring to the 2002 Living Standards Measurement Survey (LSMS) (INSTAT and World Bank, 2002), most of the households in Albania live on income generated
from work (approximately 41 percent). Private transfers to urban areas, namely, remittances and humanitarian aid, account for 6 percent of the income, whereas the
percentage reaches about 11 percent for rural areas. Public transfers, such as economic assistance, pensions and unemployment benefits, are estimated to make up 11 percent
of the households’ income in urban areas and for 10 percent of the households’ income in rural areas. Income from property transfers, businesses or other assets accounts
for 36 percent of the households’ income in urban areas and 10 percent in rural areas. Evidence shows that most people who run businesses are above the poverty line,
whereas those that rely on wages suffer the most from poverty.
See in the Annex Table 17 for more information on poverty levels in Albania. Approximately 25 percent of the Albanian population is considered poor, i.e. their income
lies below ALL4 891 per capita per month. Five percent of the population is considered ‘extremely poor’, having an income below ALL3 471 per capita per month. If the
poverty line were increased by ten percent, then approximately 50 percent of the population would drop below it and thus be considered poor.
The food supply and distribution system of Tirana, Albania
are higher than in other towns and areas of the country, households in Tirana could well be over the
official poverty line but still have a hard time satisfying their basic needs.
Map 5. Poverty and inequality in the Tirana mini-municipalities
(in percentage)
Source: INSTAT and World Bank, 2002.
In order to reduce poverty, in 2004 the Tirana municipality provided economic assistance to 3 529
disabled people and to 508 caregivers living in Tirana. Additionally, 6 468 families received ALL3 310
each month in economic assistance. This was not adequate, however, especially when considering that
bread alone – a staple food in Albania – may cost a family in this category ALL1 800 per month.
In spite of these forms of assistance, it has become more difficult for the poor, the unemployed and
retired people to access food. Most of the poor are elderly people with greater needs for medicine.
Pensions and social security payments are small, and drugs and medical prescriptions are not covered.
Many of the poor are indebted to shopkeepers or get meals in centres established by religious or
charity institutions.
2.2 THE LABOUR MARKET
The Tirana region
The labour market in the Tirana region is characterized by gender- and age-related inequalities.
Women only account for 38 percent of the working force, with little difference between rural and
urban areas.
The socio-economic, institutional and legislative context
Table 2. Unemployment in the Tirana region
Total unemployment Rural Urban
Total population 24.18 19.00 42.00
Male 19.5% 18.0% 19.0%
Female 30.8% 21.0% 35.0%
Source: INSTAT, 2001
Clearly, the unemployment level in urban areas is higher than in rural areas. On the other hand, rural
areas are more easily affected by hidden unemployment, which is facilitated by the small size of
farms and the high degree of agricultural seasonality. In any case, the influx of working force from
neighbouring villages into the capital city has considerably increased the unemployment rate in the
city of Tirana.
City of Tirana
Determining the employment or unemployment rate in the city of Tirana is very complex since any
comprehensive analysis must take into consideration the following:
• formality or informality of the working force (whether or not workers are registered as
employed);
• utilization or non-utilization of unemployment/employment services;
• working force mobility from one job to another;
• the working force inflow into the city.
According to administrative data provided by employment offices, the unemployment rate in the city
of Tirana is seven percent. Significantly, the civic network for information provides a higher figure,
showing how official data is commonly unreliable in Albania.
Table 3 provides data from the 2002 Living Standards Measurement Survey (LSMS).
Table 3. Unemployment in the city of Tirana in 1990 (in percentages)
Unemployment rate
Total 20.0
Male 18.9
Female 22.2
Source: INSTAT and World Bank, 2002
With regard to the employment rate, Table 4 shows the big gap between male and female employment,
largely because many women abandoned the labour market in the 1990s in order to devote themselves
to housekeeping. In recent years, however, women are returning, so the gap will decrease in the
future.
The food supply and distribution system of Tirana, Albania
Table 4. Employment in the city of Tirana (in percentages)
Employment rate
Total 38.2
Male 52.0
Female 26.0
Source: INSTAT and World Bank, 2002.
In the city of Tirana, 85 percent of the working force is wage/salary-dependent; only 15 percent is
self-employed (family businesses included).
2.3 TRANSPORTATION
Public and private transport in the capital city represents a complex issue, largely because of the rapid
demographic growth, the constant increase in the number of vehicles, and the poor road conditions.
As shown in Table 5, the population of Tirana uses a variety of means of transportation. During
2004, the regional directorate of Tirana registered as many as 13 382 vehicles.
Table 5. Major means of transportation in the city of Tirana (in percentages)
Means To reach the workplace Leisure
On foot 41.0 52.3
Public transportation 38.7 33.4
Private vehicle 26.0 21.8
Bicycle 5.9 4.5
Motorcycle 2.7 2.8
Source: Co-PLAN, 2002
The municipality of Tirana manages 160 km of roads, which include 258 road axes. There are
140 km of paved roads and 20 km of unpaved roads. These figures do not include unnamed roads
and driveways.
A variety of vehicles, either privately owned or hired from third parties, are used for food
transportation:
• large trucks used for bringing food into the city of Tirana, mostly from neighbouring countries
or from Durrës port;
• medium-size vehicles usually used for bringing food into the city of Tirana from other areas of
Albania or for transportation within the capital city;
• small vehicles or even automobiles used for food transportation inside the capital city.
Railways are almost all out of business in Albania, so food does not reach Tirana by train, except for
a marginal part brought in by farmers who go to Tirana to sell their own produce.
Recently, after many years of total neglect from former administrations, the current municipal
administration has invested considerably in infrastructure improvement by widening, fixing and
modernizing roads. This was possible because of an increase in available funds, mainly because of
improved tax collection and a stronger focus on the issue by the central government.
10 The socio-economic, institutional and legislative context
Nevertheless, there is still an unmet and increasing demand for infrastructural improvement (concerning
mainly secondary and suburban roads), which suffer from a low ranking in the government’s priorities
and therefore receives little funding. In spite of radical road improvement, according to surveys
conducted by the municipality (Tirana Municipality, 2004a), 24 percent of the residents consider the
roads in their neighbourhood to be inadequate.
The road network is based on the ring road (see Map 3 ), whose key points in Elbasani street, Vasil
Shanto, 21 Dhjetori, Zogu i Zi, Stacioni i trenit (railway station), Dinamo wholesale market and
Medreseja are very congested and extremely polluted. Traffic jams are frequent, especially where
the ring road intersects with main road axes such as those connecting Tirana with the important
neighbouring cities of Durrës, Elbasan and Kavajë.
The lack of parking spaces only worsens the already troublesome traffic situation, adding confusion
and blocking entry to markets. More than 80 percent of the people interviewed are concerned with
this issue.
Given the many food outlets in the capital city, people do not usually need public transportation to
reach the markets, but can easily walk. The situation is different for those who live in the informal
areas, which are cut-off from the main retailing facilities; they use buses or automobiles to reach
special markets. A newly opened supermarket at 12 km from the city of Tirana provides free bus
transportation from the city to the supermarket.
There is a need to improve environmental protection standards in view of the expected population
growth and the subsequent increase in food demand, the number of vehicles, and the quantity of
garbage and organic waste from markets and slaughterhouses. Since it is impossible to widen roads,
food wholesale markets and slaughterhouses must be relocated in suburban areas, near the city’s
entrance points (again, refer to Map 3 ).
2.4 WASTE MANAGEMENT
During the past decade, garbage production in Tirana has doubled and is now 0.8 kg/day/person. Tirana
produced 116 000 tonnes of waste, 22 percent of the country’s total. The amount of inert material in
urban waste is about 12 percent. All the garbage resulting from trade activities ends up in containers,
which are commonly used by both businesses and individuals. Garbage collection in the city of Tirana is
managed by two private firms and a municipal company, Kuartalla, which is also in charge of removing
debris resulting from demolishing of illegal constructions and provides cleaning services for Tirana
suburbs. Garbage is removed with special vehicles and brought to the Sharra urban garbage deposit in
the outskirts of Tirana. Sharra does not have a garbage treatment facility so all garbage from Tirana
is simply burnt, causing pollution and great harm to the local population. Not surprisingly, Sharra is
classified as an environmental hot spot by the Ministry of Environmental Protection.
Another alarming fact is that all organic matter resulting from market and slaughtering activities is
discharged directly into the city’s sewage system, with no preliminary treatment – none of Tirana’s
slaughterhouses have any organic matter treatment facility. In order to improve waste management and
enforce discipline in the markets, new regulations have been introduced concerning 2 640 traders located
in 18 roads.
The food supply and distribution system of Tirana, Albania 11
However, regardless of the many improvements made, Tirana is not yet a clean city. One of the problems
is that neither food traders nor citizens respect the regulations restricting waste garbage discharge in the
late afternoon and early night hours. This regulation was introduced to allow the waste management
companies to remove garbage from the city during the night, leaving it clean for the following day. As
these rules are systematically ignored, the city’s bins are always full of garbage, becoming unmanageable.
Fines are imposed on those who are caught discharging garbage in hours where it is not permitted, but
monitoring is infrequent, so the problem is still far from being solved.
2.5 INFRASTRUCTURE
The only regulatory plan in force in Tirana dates back to 1989, but because of political, social and
economic changes, they are outdated. A new regulatory plan is under preparation. In 2004, the
municipality of Tirana carried out several partial urban studies on construction permit issuance and
tried to regulate the chaotic development of a number of areas by ensuring the presence of public
facilities such as schools. The municipality allocated ALL2 456 million for public investments (the
largest allocation in the last four years) in transportation and market improvement and upkeep (Tirana
municipality, 2004b). Further, 73 percent of construction investments were undertaken in suburban
areas as part of a set of investments in recent years by the local government. Data on private
investments related to FSDSs are not available.
2.6 THE POLITICAL AND MACROECONOMIC CONTEXT
By the late 1990s, several structural reforms were implemented in Albania, such as a banking
sector reform, land reform and privatization. Almost all small- and medium-size enterprises were
privatized and considerable progress was made in privatizing strategic sectors of the economy such
as telecommunications.
Regulations on the financial sector and fundamental functions of the public sector were strengthened
and the government approved a new law on bankruptcy and a deposit insurance scheme. Registration
of fixed assets was established and progress has been made in developing the property market.
Noticeable actions were taken in public administration: a general law on civil service was approved;
a salary structure developed; a medium-term budget programme established; legal and judiciary
capacities and accountability regulations strengthened and the anti-corruption plan of action in effect
was revised.
During the last five years, Albania has experienced a good economic performance with an annual
growth rate of over seven percent in most of the period, combined with low inflation rates of less
than four percent. In the same period, both exports and imports have constantly increased (see in the
Annex Table 16 for more information at the country level).
Nevertheless, both the sustainability of economic growth and the country’s capability to reduce
poverty are being threatened by political instability and limited reform in some sectors. Albania’s
economy still remains largely informal (30 percent of the economy, according to INSTAT, 2004b) and
the business environment is not enabling. Corruption, organized crime, lack of the rule of law and
the slow pace of reforms are all obstacles to the further development of the country, which affects
both domestic and foreign investment.
12 The socio-economic, institutional and legislative context
2.7 THE INSTITUTIONAL CONTEXT
The institutional structure of FSDS consists of public, private and civic components.
The public component has undergone a series of legal and institutional reforms, the most important
being decentralization. Decisions are made at the central and local level. The main programmes and
institutions of central decision-making directly relating to FSDS are those incorporated into the
Ministry of Agriculture, Food and Consumer Protection(MAFCP) – Marketing Directorate, the Quality
Control and Food Inspection Directorate (Food Inspection Sector, Labelling and Counterfeiting
Sector); the Ministry of Health (MOH) – Hygiene Directorate; the Ministry of Finance (MOF) – Tax
and Taxation Directorate, Customs Directorate; and the Ministry of Economy(MOE) – Competition
Directorate, Directorate for Stimulating Small and Medium Enterprises.
The main programmes and institutions of local decision-making are the municipality (Directorate of
Territory Control, Directorate of Taxes and Markets Administration, Urban Directorate, etc.) and the
mini-municipalities, which make a valuable contribution to the FSDS through their agricultural and
rural infrastructure support programmes.
These institutions are responsible for planning, establishing and maintaining the market infrastructure.
They work with the private sector to help develop its role in food trade, but this is hardly done in
practice.
The private component is represented by regional chambers of commerce and business development
associations. Chambers of commerce play a significant role in preparing laws and regulations on food
trade activity. Also associations try to make their own contributions to the creation of the markets’
status. Unfortunately, in recent months, government activities concerning both the preparation and
implementation of laws have suffered from the political changes that occurred in Albania.
Finally, consumer protection associations, organic agriculture associations and local development
centres around and beyond Tirana, such as Lushnjë and Fier, form the civic component of the
institutional structure of the FSDS.
Even though these institutions have generated programmes and sub-programmes that have partially
influenced the FSDS, they have never developed a coordinated strategy or medium/long-term
programme to involve all the components of the FSDS and approach the system as a whole. As a
result, programmes developed by these institutions are partial since some of the components of the
FSDS are not consulted or show no interest in participating.
No concrete and visionary plan for the future has been presented that would be immune to political
change. Consequently, the FSDS lacks both a legal basis and a real development strategy for the
future.
Governmental programmes such as the Green Strategy, the National Strategy for Social-Economic
Development, the Rural Development Strategy, the Regional Strategy, as well as other sector strategies
and national documents signed by the Albanian Government, such as the Stabilization and Association
Report (SAR) and the Millennium Development Goals (MDG), have had a partial, if any, effect on
the FSDS.
The food supply and distribution system of Tirana, Albania 13
This municipality is also in charge of activities and initiatives related to the establishment or expansion
of the FSDS, including:
• the planning and construction of markets on land that it administers;
• the choice of space designed for trading activities;
• logistics in partial urban plans;
• the establishment of a physical regulatory frame for markets, i.e. regulating road construction,
parking spaces, electricity and fire fighting services, security and expulsion of informal vendors.
With regard to long-term investments in important projects for the FSDS development, there have
been no positive signs of cooperation (except for some consumers’ protection initiatives) between
the municipality and central government institutions, chambers of commerce or other local funds
interested in improving market infrastructure.
The legal framework is based on the following:
• Law, No. 7 941 of 1995, concerning food in general;
• Law No. 9 308 of 2004, regarding veterinary service and the setting up of a veterinary
inspectorate;
• other laws, articles and standards introduced to comply with European Union (EU)
requirements.
All the institutions in charge of implementing these laws must regulate the entire range of issues
on production, processing, storage, distribution, control and marketing of foodstuff for human
consumption. The aim is to protect consumers’ health and to ensure the implementation of sanitary/
veterinary instruments for products of animal origin and other foodstuffs.
Albania has developed a Food and Nutrition Action Plan (FNAP) for 2002–2007, under which
different projects aim to improve nutrition and public health conditions.
A maternal and child health project implemented by the MOH with support from the United Nations
Children’s fund (UNICEF), between 2001–2005, focused on infant feeding and caring practices, and
on iron, folacin and micronutrient deficiencies, especially among young women (WHO, UNICEF and
FAO, 2002).
Other projects aimed at:
• poverty alleviation;
• rural and suburban infrastructure improvement;
• protection of more vulnerable groups;
• qualitative and quantitative improvements of the food supply for the urban population.
14 The socio-economic, institutional and legislative context
3. Urban food demand, food insecurity,
and food supply and distribution systems
3.1 URBAN FOOD DEMAND AND FOOD INSECURITY
The Household Budget Surveys conducted in the city of Tirana in 1993, 1994 and 2002 show changes
in expenditure distribution among different items of household consumption (see Table 6).
Table 6. Annual household consumption expenditures, 1993, 1994, 2000
(in percentages)
Patterns of expenditure 1993 1994 2000
Cereal products 17.0 12.9 8.9
Vegetables 9.1 10.2 6.2
Fruits 5.7 3.4 4.6
Meat and other animal products 11.1 11.7 11.3
Chicken and eggs 5.1 3.8 2.5
Fish 0.2 0.3 0.8
Milk and dairy products 11.7 12.3 7.8
Different products 6.8 7.7 4.8
Eating out (restaurants, fast-food restaurants, etc.) 0.2 0.5 4.7
Food products total 66.9 62.8 51.6
Beverages 3.4 3.8 3.3
Food and beverages total 70.3 66.6 54.9
Tobacco 1.8 2.0 2.9
Clothes and footwear 2.8 2.4 5.3
Rent and utilities 2.7 3.2 6.0
Interior home renovations 2.9 1.9 1.2
Furniture 2.5 3.3 1.1
Equipments 4.4 4.2 0.8
Maintenance 0.9 2.3 0.4
Health 0.9 0.9 2.6
Transportation 1.6 1.3 1.7
Automobile maintenance 2.0 5.3 4.5
Personal communications 1.2 0.6 1.7
Leisure 0.5 0.0 2.4
Education 0.5 0.4 2.5
Culture 3.7 4.0 5.4
Personal care 0.3 0.8 1.9
Jewellery 0.1 0.2 0.4
Other expenses 1.7 0.8 5.5
Totala 99.8 100.2 101.2
a Totals may not equal exactly 100, caused by data approximation.
Source: INSTAT, 2002
The food supply and distribution system of Tirana, Albania 15
The household’s overall expenditure on food has decreased considerably, but eating out is increasingly
common; few Albanians could afford to do so in 1994, whereas almost five percent did in 2004.
The percentage of expenditure on food, drinks and tobacco varies among social groups. There is
a positive correlation between these percentages, on the one hand, and the number of children per
household and the unemployment rates among household members, on the other. In contrast, all
these factors tend to be negatively correlated with education, i.e. more educated people tend to spend
a smaller percentage of their budget on food, beverages and tobacco, have fewer children and are less
affected by unemployment.
Table 7. Composition of the household budget according to the head of
household category (in percentages)
Expenditures Employed
persons
Unemployed
persons
Retired
persons
Housekeepers Emigrants
Food, tobacco, beverages 55.90 61.60 60.80 83.80 57.40
Clothes, footwear 5.60 4.70 4.90 n.a. 6.20
Rent, electricity, water 6.40 6.70 8.10 9.00 7.70
Equipment, furniture 6.20 6.00 6.60 4.50 7.60
Health care 2.10 3.50 3.50 1.00 1.80
Transport, communication 9.30 5.70 5.60 0.20 7.40
Education, entertainment 6.40 4.30 3.40 1.20 5.20
Personal care 2.40 2.30 2.10 n.a. 1.60
Other 5.70 5.20 4.90 0.20 5.20
Totala 100.00 100.00 99.90 99.90 100.10
a Totals may not equal exactly 100, caused by data approximation.
Source: INSTAT and World Bank, 2002
The Albanian diet is a typical Balkan diet characterized by many fresh fruits and vegetables (depending
on the season), cereals, potatoes and vegetable oil. Alcoholic beverages are consumed sparingly and the
consumption of sea products is still low (Berisha and Mara, 2005).
For religious reasons, consumers discriminate among types of meat (e.g. Muslims do not consume pork).
There are also differences between rural and urban diets. Rural consumption is based on fresh farm
products, while urban consumers are sometimes forced to rely on processed fruits and vegetables, including
frozen and preserved products, particularly during the off-seasons (FAO, 2005). In all cases though , there
is an undisputed preference for fresh produce, as shown in the frequency of consumers’ purchases: 33.3
percent of consumers surveyed in Tirana’s city markets buy food on a daily basis (Centre for Rural Studies,
2005).
Before 1990, the per capita supply mainly consisted of cereals (wheat and maize) as a result of the
communist government’s policy of pursuing self-sufficiency in the production of staple foods. Since all
efforts and resources were concentrated on this goal, the production of other food items – fruits and
vegetables, meat, dairy products – was not high on the government’s priority list.
The collapse of the regime in the early 1990s and the consequent opening up of the economy brought
about many changes. ( See in the annex table 18 to table 27). Increased import flows and changes in
per capita income and lifestyle all had a great impact on food diversity. The immediate effect was dietary
improvement, with significant increases in the consumption of fresh fruits and vegetables, meat, eggs and
16 Urban food demand, food insecurity, and food supply and distribution systems
dairy products. Table 8 shows that the daily supply of these products more than doubled from 2000 to
2002, compared to 1986–1988, while cereal consumption was reduced by about one-third.
Table 8. Annual trends in product supply per capita in Albania
1965-2002, (grams/day)
1965-1967 1972-1974 1979-1981 1986-1988 1993-1995 2000-2002
Cereals 529 579 611 601 550 457
Starchy roots 38 45 50 39 55 87
Sweeteners 38 44 48 50 80 70
Pulses, nuts, oil crops 26 22 19 21 21 38
Fruits and vegetables 291 324 339 290 461 679
Vegetable oils 9 14 27 21 22 23
Animal fats 13 9 9 12 10 7
Meat and other animal products 48 45 50 47 79 103
Fish an seafood 6 10 9 9 5 11
Milk and eggs 273 310 373 363 708 818
Other food items 20 24 24 30 52 60
Source: FAO, 2005.
Most people have three meals a day – breakfast, lunch and dinner – but rapid changes in society such
as urbanization, time constraints and irregular working schedules have affected their eating habits.
With no time to cook food at home, more people tend to skip breakfast, and take-away food is
becoming popular.
Food insecurity
According to the World Bank, food insecurity in Albania is not an issue anymore, but supply
shortages are the result of the poor general economic situation of households. Many cannot afford
to buy all the food they need, especially in rural areas. According to the 2002 LSMS, one-third of the
households in rural areas are not able to obtain even the minimum quantity of basic food.
Food consumption in Tirana
It is difficult to present a clear picture of the food consumption situation in Tirana. The analysis needs
to be based on:
• data on domestic food flows to Tirana;
• data on imports at the regional level;
• data on food stocks and evaluating losses during the year.
These figures are difficult to measure and are not currently available. For these reasons, food
consumption cannot be calculated using FAO’s methodology for calculating food balances, which is:
Per capita supply = (production + imports - exports + stocks)/population.
Albania has experienced shortages in food supply in particular moments during the transition period (1991), but the situation has currently stabilized.
The food supply and distribution system of Tirana, Albania 17
The MAFCP does provide statistics on production regional balances, but does not consider food
imported to Tirana from other regions, so this data is also unsuitable. The only tool for estimating
food consumption levels in Tirana is the household budget table (see Table 9).
Table 9. Household budget
Item kg/per
capita/month
in 2005
kg/year
in 2005
kg/year in 2011
(projection)
kg/year in 2016
(projection)
Staple food 16.11 77 780.360 90 196.520 102 230.640
Meat and Fish 1.81 8 737.739 10 132.550 11 484.450
Dairy and other animal products 8.29 39 995.670 46 380.230 52 568.330
Edible oil 1.77 8 539.810 9 903.030 11 224.310
Fruits and vegetables 10.24 49 452.710 57 346.900 64 998.180
Water and fresh drinks 0.78 3 765.430 4 366.520 4 949.100
Eggs 0.56 2 703.389 3 134.934 3 553.200
Other 1.79 8 617.050 9 992.600 11 325.830
Food outside home 3.22 15 558.970 18 042.660 20 449.940
Total 44.57 215 151.128 249 486.944 282 783.980
Source: INSTAT and World Bank, 2002.
Statistics show that the capital city’s population consumed 215 151 tonnes of food in 2005 and is
expected to consume 282 783 tonnes in 2016. Total consumption is therefore expected to increase by
31.4 percent in 11 years.
Increased and diversified food consumption calls for relevant changes in the supply and marketing
system. Infrastructure should be upgraded to handle increased transportation flows; new market
facilities should be built and existing ones should be improved in terms of quality, hygiene, safety
and services for both traders and consumers. Retail outlets and wholesaling facilities should also be
improved.
3.2 FOOD SUPPLY SYSTEMS
Demographic growth in Tirana led to urban expansion and loss of productive land to the extent that
the regional food balance is now negative. As research has shown, Tirana is unable to feed itself. Table
10 shows Tirana’s food deficit in quantitative terms.
The lack of an urbanization plan for the suburbs and the increased opportunity costs of having green
areas in the city make the contribution of urban agriculture to the overall production irrelevant so
much so that no one has ever even tried to assess its importance on the regional food balance. Some
households own small gardens in peri-urban areas and grow small quantities of fruits and vegetable,
which are normally consumed within the household or given to friends and relatives. These garden
products – particularly fruits and flowers – rarely reach the market.
The table lists the per capita consumption for different foodstuffs, calculated on the basis of a household’s food expenditure over a two week period. Data are collected
by the households in notebooks. The total food consumption of the Tirana population was calculated as follows: annual food consumption = sample persons’ average
monthly consumption × 12 months × total population. For 2011 and 2016, calculations were made using forecasts and estimates provided by INSTAT.
18 Urban food demand, food insecurity, and food supply and distribution systems
Table 10. Production, consumption and food balance in the city of Tirana
Vegetables Potatoes Fruits Total
Production (tonnes) 50 800 5 475 4 608 60 883
Consumption (tonnes) 151 945 35 593 18 392 205 930
Food balancea (tonnes) –101 145 –30 118 –13 784 –145 047
a Figures are based on FAO estimations on local consumption levels: consumption of vegetables, 188.37 kg/per capita; consumption of potatoes, 44.13 kg/per capita;
consumption of fruit, 22.8 kg/per capita.
Source: MAFCP, 2005
The Dinamo wholesale market in Tirana shows that the capital city’s contribution to its overall supply
accounts for no more than seven percent of the total. Systematic supplies from other areas (particularly
Lushnjë, Fier and Saranda) or imports from neighbouring countries (Greece, Macedonia and Italy) are
required. Exchanges with these three countries account for about 85 percent of Albania’s international
trade (INSTAT, 2005).
Marketing margins and prices
To date, no relevant study concerning marketing margins has been conducted in Albania. Marketing
margins for fresh produce vary on average between 30 and 40 percent of the farmgate price. For
other foodstuffs, margins vary on average between ALL10 and ALL1 000. Higher margins should be
attributed to factors such as:
• location of the retail outlet;
• level of the offered services;
• type of product.
Value-addition along the marketing channel is often perceived as abusive, but experts affirm that a
major part of price increases (margins) is necessary for retailers to sustain the costs related to product
handling and sorting, and the uncertainty associated with the food sale, which must also take into
account factors such as product spoilage. However, these experts do admit that a fraction of these
margins is abusive. Table 11 shows the increase in value at the retail level of the food chain.
The food supply and distribution system of Tirana, Albania 19
Table 11. Prices and margins of the main food products in wholesale and
retail markets, 2004
Product Wholesale price Retail price Difference in price Retail margin
(in percentage)
Tomatoes 59.4 94.0 34.6 36.8
Peppers 73.1 120.0 46.9 39.1
Onions 42.6 63.0 20.4 32.4
Garlic 134.6 200.0 65.4 32.7
Beans 112.0 161.0 49.0 30.4
Potatoes 33.8 55.0 21.2 38.5
Apples 65.7 112.0 46.3 41.3
Grapes 92.0 197.0 105.0 53.3
Oranges 84.3 120.0 35.7 29.8
Eggs 9.0 11.0 2.0 18.2
Flour 51.0 56.0 5.0 8.9
Sugar 60.0 64.0 4.0 6.3
Edible oil 123.0 130.0 7.0 5.4
Noodle 93.0 107.0 14.0 13.1
Tomato sauce 46.0 60.0 14.0 23.3
Source: MAFCP, 2004b and authors’ calculations.
Wholesalers tend not to apply higher margins when under pressure of product spoilage, because they
manage to make satisfactory profits by trading in larger quantities.
Improving the marketing system in order to increase efficiency will create opportunities for eliminating
the abusive and speculative component of marketing margins, thus allowing for a reduction of retail
prices. If costs are lower, lower margins will be needed to cover them.
Together with seasonal variations, price fluctuations are especially high during holiday seasons,
especially for vegetables and fruits. Figure 1 shows three products that display seasonal price
fluctuations, depending primarily on fluctuating import inflows.
For more information on production prices of different food products, see in the Annex Table 26.
20 Urban food demand, food insecurity, and food supply and distribution systems
Figure 1. Price levels for tomatoes, peppers and grapes in different
months of 2004
Source: MAFCP, 2004b.
The above trends are common for vegetables and fruits; price fluctuations for staple foods such as
wheat and maize follow different patterns, mostly shaped by external factors rather than by production
periods in the country.
Consumers’ protection
Administrative and legal structures responsible for ensuring the competitive nature of markets, and
protecting consumers from abuses are still fragile.
Research showed that 55 out of 61 retail outlets are legal , i.e. they obtained an activity license by
the municipality, but only 14 of them met basic hygiene and sanitary standards (Institute of Public
Health, 2002). Product counterfeiting is a common practice in the production and marketing of food
products, particularly for alcoholic and soft drinks, milk and dairy products and edible oil. Labelling
is inappropriate, often lacking information on product content, nutritional facts, use instructions and
expiry date.
Food sold illegally on the street is a major source of income for many households, particularly in the
countryside, and butchering animals is done with little regard for sanitary and veterinary regulations.
The law establishes fines ranging from ALL5 000 to ALL300 000 for sellers, butchers and other
sellers caught breaking the law, but there is great confusion over the division of responsibilies
between the Food Control Inspectorate and the Veterinary Inspectorate (which depends from the
MAFCP), the Sanitary Inspectorate (which depends from the MOH) and the municipality’s territory
control directorate. The lack of a strong enforcing authority inevitably leads to a low and ineffective
protection of the consumers’ rights.
The food supply and distribution system of Tirana, Albania 21
Box 1. Consumer Protection Association
“As an association for consumer protection, we have positioned ourselves on the consumers’ side. In every
holiday season we did our best to raise the awareness of institutions and have them take appropriate
measures against abusive price increases by traders. These abusive price increases trigger strong
inflationary fluctuations, thereby turning [this situation] into both a micro and macro issue. Also, in order
to draw consumers’ attention, we distributed flyers advising them to use the expression “How do you
dare?” whenever they faced abusive price increases by food retailers.”
Business, 24 December 2005
3.3 URBAN FOOD DISTRIBUTION SYSTEMS
Markets
In Tirana, city supply and distribution channels are characterized by fragmentation and confusion over
role division. Often, small producers, retailers and wholesalers try to sell their products at the same
urban marketplace, while instead they should sell in different locations and to different targets.
Key actors in food distribution are intermediaries who represent a strong reference point
between small farmers and wholesalers. Some collectors prefer to establish links only with
suppliers from their area, whereas others move from one area to the other, depending on
season and opportunity. Some intermediaries sell the products that they collect in markets,
while others bring them to wholesalers. In some cases, the intermediaries are producers
themselves, integrating their crops by purchasing other producers’ production, and then bringing
everything to the market or to wholesalers. Figure 2 depicts various marketing channels.
22 Urban food demand, food insecurity, and food supply and distribution systems
Figure 2. Marketing channels
Direct marketing systems
Direct marketing between producers and consumers occurs when short distances make it possible.
Farmers who sell directly to their consumers always face a trade-off between the benefits of direct
sale and the opportunity cost of not working in the fields. About 77.8 percent of the farmers identify
transportation as one of their biggest problems; given the small quantity of marketable product that
they handle, transportation accounts for most of their costs. Storage is also a major problem: 75.6
percent of the producers cannot keep their products for long periods of time because of the lack of
silos and cold rooms (Centre for Rural Studies, 2005).
Surveys reveal that 70 percent of the farms in Tirana’s municipality sell directly to final consumers
(INSTAT, 2002). The remaining 30 percent sell mostly to wholesalers and retailers, but also direct
a small percentage to final consumers. Accordingly, the percentage of farmers that sell directly to
consumers sums up to 85 percent of the total.
Many consumers demand higher standards of service in the food market, as some indicators point
out:
• 55 percent of consumers think that they have inappropriate market facilities in their
neighbourhood;
• 68 percent see street selling as a problematic issue;
Data from the 2002 LSMS showed that two-thirds of an average rural household income is derived from agriculture, with increasingly more cash income deriving from
the sale of livestock products, milk, vegetables, fruits and grapes.
The food supply and distribution system of Tirana, Albania 23
Wholesaler
Full service wholesale
Retailer Limited service wholesale
Agricultural merchants
Supermarkets
Direct sales Grocery stores
Own sales force
Own sales outlet
Agribusinesses, farmers, fishers, manufacturers
Customers
• 68 percent believe that business activities in residential areas should be limited to certain hours
of the day, whereas only 21 percent think the opposite (Tirana Municipality, 2004a).
Given these opinions, regulating street selling activities and business activities should be a priority in
the municipality’s agenda. Unfortunately, for many reasons, including financial constraints, very little
is moving in this direction.
Furthermore, sectoral policies do not support state budget investments for slaughterhouses and
refrigerated space, but rather suggest that such investments be taken over by private enterprise
(MAFCP, 2003b). It should be borne in mind, however, that if operated by the public sector, these
investments would provide better hygiene, fewer losses and reduced risks of food transmittable
diseases.
A major concern from the local establishment is that institutional, urban development and demographic
factors should not be the only ones considered; the effects that the establishment of new markets
would have on family budgets for either consumers or sellers should also be taken into account.
Retail
Many types of retailers operate in the capital city, ranging from retailers who have their permanent
shops and sell fresh produce, to farmers who sell alongside roads near their plots and fields.
The retail sector includes a wide range of outlets such as public retail markets, spontaneous markets,
formal and informal shops and supermarkets.
Currently, there are 15 public markets in Tirana, which are administered by the General Directorate
for Local Taxes and Tariffs of the Tirana municipality and by the mini-municipalities. These public
markets consist of 22 685 m2 of total surface area, although only 70 percent of this surface is
currently exploitable. These markets can potentially accommodate 1 870 traders per year, but current
exploitation levels do not exceed 850 traders per year. The situation is critical in markets such as
5 Maji, where only 15 traders engage in their activity, or in the meat market where only 50 percent of
the capacity is exploited.
24 Urban food demand, food insecurity, and food supply and distribution systems
Map 6. The public retail market distribution in the city of Tirana
In addition to public markets, there are privately administered markets that apply charges in exchange
for very basic services to traders. Despite permanent controls exerted by municipality inspectors
(their number doubled in 2005), hygiene and sanitary conditions and associated infrastructure are so
poor that neither public nor private markets offer storage or handling space that comply to hygiene
requirements. Transportation infrastructure near markets is also poor, especially when considering
that future needs will be greater than present ones.
The inability to fully exploit all the marketable space in public markets should not be attributed solely
to the above factors, but also to the fact that many vegetable and fruit traders tend to sell outside these
markets in order to avoid paying market occupancy tax. Furthermore, they consider it more attractive
to sell outside these markets for there is less competition.
The food supply and distribution system of Tirana, Albania 25
Box 2. Astrit, trader, 45 years old
“The market occupancy tax we pay is high. We duly pay the taxes, but in exchange we do not get
adequate services, as many are not offered. Even though we pay ALL3 000 per month, this market doesn’t
attract many consumers and traders. Many consumers are lured by farmers who sell on the streets near
the market. They place the products on the ground and this total lack of hygiene doesn’t disturb the
buyers at all since they appreciate slightly lower prices (farmers don’t pay taxes) and are deceived by the
image of freshness conveyed by the farmers’ products”.
The municipality is making efforts towards promoting public markets and stopping consumers from
buying on the street, with awareness-raising actions such as distribution of flyers or use of other
promotional instruments. However, the large dispersion of informal traders and the low number of
municipality police officials to stop them make on-street selling activities still very significant.
Box 3. Zana, housewife, 42 years old
“I often buy from the farmers. They offer lower prices for vegetables and fruits produced in their farms.
Actually, I do not buy any processed products from farmers because I am not sure about their quality and
safety. However, they offer better prices than vendors in public markets; there most of the goods are
imported and prices are higher.”
Hygiene and maintenance conditions vary from market to market, but are generally poor. Municipality
staff should urgently be given guidelines on effective market management.
Supermarkets
Supermarkets are part of the radical change brought about by private enterprise in their efforts
to better serve consumers. Such services are still scarce and in their initial stages, but their growth
rates show great potential and indicate that more western-style purchasing behaviour is slowly being
adapted.
In the capital city there are about 30 supermarkets, although their size and the selection of articles
offered are far more limited than in the western world. The sector’s development is very dynamic and
the number of supermarkets is constantly increasing.
An interesting model is the Univers shopping centre, which started its activity in September 2005; it is
12 km from Tirana and offers all the required standards in a pleasant atmosphere, in addition to offering
a shuttle service for those without private vehicles from the city of Tirana to the supermarket.
26 Urban food demand, food insecurity, and food supply and distribution systems
Wholesale
Tirana has 69 wholesale points as well as 63 outlets that act as a cross between a wholesale point and a
retail outlet. This reflects Albanian consumers’ buying behaviour, which is generally diffident towards
prices offered by retail outlets and supermarkets – 23.3 percent of food purchases by final consumers
take place directly at wholesale markets, because products are deemed fresher (in the case of fruits
and vegetables) and cheaper (in the case of staple foods) (Centre for Rural Studies, 2005).
Since the wholesalers’ normal role in the distribution chain is to obtain large quantities of goods from
farmers and other sources, and to prepare and deliver them to retailers, the problem is that by offering
lower prices, wholesalers end up distorting prices throughout the marketing chain.
Currently, there is only one wholesale market for fruits and vegetables in Tirana, compared to three in
the past. It is situated on the remains of the former Dinamo factory, from which it takes the name,
and its total surface area amounts to five hectares. The property of the Dinamo wholesale market is
divided as follows:
• 62 percent is private;
• 5 percent belongs to the former employees of the factory;
• 33 percent is owned by the state agency for privatization.
In addition to a number of occasional traders who sell food products on a daily basis, 170 permanent
traders operate in this market. Sixty percent of fruits and vegetables sold year-round are imported
from other countries, while rural areas of the Tirana district contribute only seven percent of the
total supply.
The market offers services such as parking, product handling and weighing, storage and transportation.
Traders pay taxes for rent, cleaning, occupancy, electricity fees and other services. Electricity is paid
twice: to the market’s owners and to the Albanian electric corporation.
Among the more problematic issues, waste management is inappropriate and traffic around the
market is congested, especially during the day, even though municipality regulations state that all
activities with a high impact on traffic should take place during night hours.
Upgrading and modernizing this market is vital for future demographic growth; otherwise, the
growing needs of Tirana will be satisfied by informal markets that would spontaneously emerge
around the city.
The food supply and distribution system of Tirana, Albania 27
Map 7. The public wholesale market distribution in the city of Tirana
Box 4. Petrit, wholesaler, 40 years old
“The Dinamo wholesale market cannot adequately face food flows coming into the capital city. Even
though we pay all the charges, neither private enterprises nor public institutions are committed to further
improvements. There is no space for parking. We try to clean up the space ourselves or we pay other people
to do so and we also pay for loading and unloading.
Handling operations are non-existent, except for some kind of sorting. Of course, opening up another
market would be a solution, but there are still uncertainties about moving to another location, as there is
the chance that it would not attract an adequate number of traders. Opening up such a market requires
public funds or the involvement of powerful donors.”
In order to correct the negative aspects shown in the Dinamo wholesale market, the possibility of
establishing mixed markets – both for fresh products and other foodstuffs – was considered. Even
though a specific location was identified, the establishment costs would have made utilization tariffs
higher than the ones currently charged to wholesalers. Initially, it was planned that the establishment
of a new market would go together with the closing of the Dinamo wholesale market. In fact,
compensation costs (to be paid to the Dinamo market wholesalers) were extremely high to the
28 Urban food demand, food insecurity, and food supply and distribution systems
extent that shutting down the market was no longer considered a viable solution. As a result, the best
solution considered was to have the two markets co-exist.
Slaughterhouses
In Tirana there are six improvised locations for slaughtering activities, which do not meet hygiene and
sanitary standards. The only slaughterhouse approaching such standards belongs to the Yzberish Meat
Company. Moreover, many slaughterhouses only separate the carcass from the entrails, leaving other
operations to butchers, such as separation of internal organs from the carcass and breaking of the
bulk and anatomical cuts, that are even harder for authorities to check and monitor.
In addition to sanitary problems, the fact that the sector is largely made up of informal businesses
also means that no tax is paid. It does seem, however, that buying meat from the informal sector
is a common practice because the products can be cheaper (since the businesses pay no taxes) and
are perceived as fresher. On the other hand, people do not seem concerned by the possible health
consequences; Albania is experiencing an increase in brucellosis�,10 which, although not widespread,
has alarmed authorities.
Map 8. Slaughterhouse distribution in the city of Tirana
10 A disease transmitted through contact with animal tissue or through the ingestion of contaminated milk or dairy products.
The food supply and distribution system of Tirana, Albania 29
Street vendors
This category can be divided in:
• vegetable and fruit vendors;
• fast-food and refreshments sellers.
Since their activity is largely informal, potential problems related to food safety, environmental
concerns and, finally, tax evasion may arise.
Box 5. Nardi, street vendor, 35 years old
“I come almost every day to sell in Tirana. It is not worthwhile to sell in the market since you have to pay
to be there. I try to sell on the street or in nearby apartment blocks. There are many other vendors like
me. My goal is to sell milk and small quantities of vegetables and fruits by noon. We are afraid of the
municipality police’s controls, so we change the location of our activity every day. Anyway, we manage
to sell milk because it is fresh, clean and unprocessed, just like the packaged one, and the buyers prefer
it. Furthermore, our price is lower than packaged milk. Official propaganda on the safety of our milk is
nothing but sheer palaver. Our animals are lively and kicking, and we do not milk them if they are sick,
but we immediately call the veterinarian.”
Taxes and charges
Local tax levels for food sellers in general, and for fruit and vegetable sellers in particular, have been
reformed over the years.
Local governments are responsible for many forms of taxation and their levels are defined on the
basis of where the business is located and how much space it occupies. The income that they generate
should cover the costs of both waste removal and green space regeneration and should be used to
provide market services.
Unfortunately, traders complain about the quality of the services offered by the local government,
deeming them poor and inadequate compared to what they pay for them. Table 12 provides three
examples of taxation imposed by local government on food sellers.
Table 12. Different taxation levels, 2005
Category of business Cleaning tax/year
(ALL)
Green tax/year
(ALL)
Dairy, meat, fish 20 000
Fruits, vegetables and other foodstuffs 15 000
Service outlets 5 000 – 20 000 7 000 – 10 000
Itinerant sellers 1 500
Fast-food sellers 10 000 – 12 000
Sellers outside the public market
Source: Authors’ estimations.
30 Urban food demand, food insecurity, and food supply and distribution systems
Taxes are paid annually, but the level of taxation is reduced by 50 percent for activities that are
operational only in the second half of the year. Payments are usually due within the first months of
the year, even when referring to the second half of the year.
The food supply and distribution system of Tirana, Albania 31
4. The city and the food supply and
distribution in the future
4.1 THE CITY IN TEN YEARS
A demographic forecast by INSTAT predicts that the population of Tirana will increase by 31 percent
from 200511 to 2016, reaching 528 750. Figure 3 shows the demographic growth trend.
Figure 3. The dynamics of the Tirana population, 2001–2016
Source: INSTAT, 2004a.
The following section will present a projection of Tirana in ten years; section 4.2 presents the future
situation assuming that no major change will occur, whereas section 4.3 presents the situation that
would occur if positive changes were made.
4.2 THE STATUS QUO SCENARIO
From the point of view of satisfying basic needs through an efficient and reliable food supply and
distribution system, demographic growth is an issue that causes a number of concerns. Tirana already
11 There are various demographic projections for Tirana according to differences in sampling and methodology. A high number of voters who did not appear in the lists
of their area of residence were found during the last update of administrative records (before general elections). A possible explanation is that administrative records do not
keep track of migratory flows, which involve approximately 60 000 individuals per year. This is an example of how the city’s population can easily be underestimated.
The food supply and distribution system of Tirana, Albania 33
has some problems with its FSDS, and difficulties can only grow in the future unless a new long-term
approach to food supply is used.
The lack of a medium-term regulatory plan for Tirana adds confusion to the markets’ organization.
Foodstuffs wholesale markets and fruit and vegetable wholesale markets should be in different
locations and well distributed throughout the city, ( not the case at present), in order to allow better
planning of public retail markets, which get their supplies from wholesalers. This is a particularly
urgent need since newly populated areas of Tirana are very often not well served as a result of the
lack of urban standards on the establishment of market infrastructure.
If the development of a clear urban plan were to neglect population size, its density, and the associated
necessary services, the currently chaotic situation in the capital city suburbs will only get worse, and
people would have no alternative to the informal sector to satisfy their basic needs.
Another factor hampering the creation of efficient new markets or service facilities is the high price
of land, especially in urban areas. Legislative action appears to be the only long-term solution to this
problem.
Meeting the increased food demand of the urban population will be problematic if links between
rural and urban areas are not strengthened. There is an urgent need for action relating to market
organizations, collectors and other intermediaries.
In addition to the four already established wholesale markets in the country (only one of which
is in Tirana), special attention should also be paid to the establishment of other local markets and
collection infrastructure in different areas, which would improve the overall efficiency of the market
system.
If the central government does not show any special interest in investing in market infrastructure
improvements, in ten years the capital city’s market will be in the hands of imported goods wholesalers
and rural areas will see their unsold products go to waste.
In addition to its bleak consequences on the economy of rural areas, the reliance to a large extent
on imported rather than on domestic foodstuffs is also risky for the overall economy, because supply
will always depend on external, uncontrollable factors. In time, customs procedures will be alleviated,
hence facilitating the flow of imported products in the market, but high bureaucracy levels and high
corruption levels could always create problems in the supply inflow.
Concerning the transport of imported goods, important arteries such as Zogu i zi, 21 Dhjetori, Vasil
Shanto, Medreseja or Rruga e Elbasanit will become congested if they are not modernized. Furthermore,
operations such as loading or unloading in markets are restricted to night hours by municipal
regulation; while this alleviates traffic problems, it makes it harder for traders and truck drivers to do
their job.
A 30 percent increase in the city’s needs is predicted for 2016, and the only way to ensure regular
supplies will be by either lifting restrictions on the truck’s access to the city, which does not seem a
viable solution, or upgrading the road system.
Finally, decentralization could benefit the city’s situation, as local governments are normally seen as
knowing more about local needs and expectations. However, at its current levels, decentralization is
34 The city and the food supply and distribution in the future
still too limited to offer interesting opportunities in terms of public investments aimed at substantially
improving the quality of life in the capital city.
4.3 THE DESIRABLE SCENARIO
If the desired positive changes were made in ten years, Tirana would look completely different. If the
city were to apply a clear development plan for the FSDS within the next two years, it would be in the
final phase of its short-term implementation by 2016.
A necessary condition for the establishment of markets was that the institutions in charge of
territorial planning would have already clarified the division of responsibilities between districts and
municipalities and had defined standards for markets and services.
The markets would be located according to population density, the available space and access to
roads of a given area. They would be run privately, but the public sector would act as supervisor and
monitor the services offered by the markets.
Suburban ‘informal’ areas would be legalized and become attractive locations to establish markets
and slaughterhouses. In addition to having more selling space, they could also function as collecting
points, thus facilitating the flow of products along the marketing chain and better serve residents of
these areas, which up until now had been poorly served by markets.
Central and local governments would lead programmes aimed at supply regulation and would work
together in developing local capacities.
The goal would be to reduce bureaucracy in the market sector in the hope that this would trigger
other positive outcomes:
• corruption along the supply side would diminish, creating a more enabling environment for
businesses;
• private enterprises would be stimulated to invest more in the sector since it would be less
troublesome and more convenient;
• supply channels would diversify;
• price discovery would be more transparent.
From the consumers’ point of view, a clear-cut role division in the supply chain (e.g. having retail and
wholesale markets in different locations) and the growing presence of supermarkets – which bring
more competition to the system – would lower prices and reduce opportunities for the small retailers
to apply abusive margins, which would put them out of the market.
The food supply and distribution system of Tirana, Albania 35
5. Conclusions
Tirana is and will remain the most important city of Albania and will continue to play a key role in the
political, economic and social progress of the country. Growing demographic flows and the chaotic
settlement of people in the suburbs will play a relevant role in the capital city’s future development. This
is a consequence of the political and socio-economic changes that took place in the last 15 years and of
the precarious institutional scenario that still exists. Tirana’s suburbs accommodate many people who
emigrated mostly from Northeastern Albania; this new population demands appropriate transportation,
education and health infrastructure, as well as full access to products and services markets.
Since the population of the capital city is expected to increase by 31 percent in the forthcoming
decade, a clear urban plan for the suburbs must be urgently prepared. In ten years, the ring road (see
Map 3) delimiting the capital city’s central area is expected to change and cover a surface double that
of the current area. Increased demand for better and more diversified services of food supply and
distribution requires improvements in the markets’ infrastructure, location and area coverage, which
are still inadequate and fail to meet the populations’ demand.
Improvements in infrastructure are badly needed and should take into account not only central
urban areas (those located within the old ring road), but also newly populated areas in the suburbs.
The establishment of bigger and more efficient markets are difficult in areas where the population’s
settlement has been chaotic, yet these are the areas that most need such markets. If action is not taken
and such infrastructure is not implemented there, the problem will only worsen, and the area will
never be well served. In this case, food supplies will be totally dependant on the private sectors’ will.
It is difficult to imagine a positive development of the FSDS if sensitive issues are not addressed,
including: the presence of informal areas; a lack of clear-cut institutional responsibilities; the
poor financial situation of local government; the lack of long-term urban planning and political
instability.
Decentralization is still at the initial stage, so there are frequent inefficiencies and shortcomings in the
implementation of the central government’s programmes at the regional and municipal level. Role
division, namely in fund management, is not clearly defined. Local governments are in charge of the
maintenance and development of the market facilities and the establishment of new markets, but
seldom have the financial and technical means to fulfil their duties properly.
Policies set on the basis of sectoral and regional strategies that also affected the FSDS appear to be
hampered by institutional apathy. Relations between the government and private enterprises must be
made more effective; there is a lack of dialogue and joint decision-making, and the government often
fails to provide adequate information to the enterprises - i.e. to the main beneficiary of these planson
regional plans and programmes.
Investments in already established markets should be aimed at re-planning location and redesigning
offered service mixes, upgrading necessary infrastructure, if needed. These tasks are delegated to
municipalities, but there are no special funds allocated to them by the central government for this
The food supply and distribution system of Tirana, Albania 37
purpose. As a result, financial constraints make it difficult-if not impossible-for local governments to
fulfil their goals. It is necessary for the municipality to actively improve its administrative capacities
and its monitoring of mini-municipalities. Since lack of governmental funding is a problem, action
should be taken to involve the private sector and civil society to recognize the value of promotion,
external resources and capacities.
38 Conclusions
References
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tr_urban.htm).
Berisha, A. & Mara, V. 2005. ��������������������������������������������������������������������Role of diets in Balkan countries as part of Mediterranean diets in
people’s health. Albanian Journal of Agricultural Sciences. Agricultural University of Tirana, Tirana.
Centre for Rural Studies. 2005. Marketing with dignity. �������������������Tirana. (in press)
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FAO. 2005. Nutrition country profile – Albania. Rome. (Available at www.fao.org)
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x6996e00.HTM)
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INSTAT & World Bank. 2002. Living standards measurement survey (LSMS). (Available at www.
worldbank.org/LSMS/country/alb2002/alb02home.html)
Institute of Public Health. ������2002. 2002 Report. Tirana.
Kohls, L.R. & Uhl, N.J. 2002. Marketing of agricultural products, Ninth edition. MacMillan Publishing,
New York.
Ministry of Agriculture, Food and Consumer Protection (MAFCP). 2002. Agro-industry survey.
Tirana.
MAFCP. 2005. Public markets’ infrastructure development plan, by J. Tracey-White. �������Tirana.
MAFCP. 2004a. Agro-industry survey. �������Tirana.
MAFCP. �������2004b. Statistical yearbook. �������Tirana.
MAFCP. �������2003a. Agro-industry survey. �������Tirana.
MAFCP. �������2003b. Rural development strategy. �������Tirana.
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Tirana Municipality. 2004b. Statistical bulletin 2004. Tirana.
The food supply and distribution system of Tirana, Albania 39
Annex
Table 13. People interviewed
Name Institution Department
1 Roland Cela GTZ Project Manager of GTZ
project “Modernization of
Agriculture and Food Sector-
EU Approximation”
2 Erald Lame GTZ Expert on Marketing
Information Systems.
“Modernization of
Agriculture and food sector-
EU approximation”
3 Niko Zherdi Market and Traders
Protection Association
President
4 Leka Filto INSTAT Agricultural Sector
5 Anila Shehu Municipality of Tirana Territory administration
directory
6 Vjollca Bimo Ministry of Agriculture, Food
and Consumer Protection
Marketing Sector
7 Hermiona Hajdini Municipality of Tirana Directorate on territory
control, veterinary sector
8 Aida Gega Municipality of Tirana Finance chief, directorate of
tax and tariffs collection
9 Dritan Belegu Meat Producer Association Director
10 Luan Dervishej GTZ Municipality
Development Project
Director
11 Ten retailers Lapraka, Mine Peza,
Pazari
12 Ten consumers Consumers from different
areas with differentiated
incomes and professions
13 Ten wholesalers Dinamo wholesale market
food units
The food supply and distribution system of Tirana, Albania 41
Table 14. Data on the Tirana region
Region District Municipality Commune No. of
villages
Population Total area
km2
Tirana Region
District of Tirana + District of Kavajë
District of Tirana
3 municipalities
16 communes
Municipality of Tirana
(11 mini-municipalities)
Population: 402 290
Area: 41.8 km2
Municipality of Kamze
(1 town +
6 villages)
Population: 71 500
Area: 21.8 km2
Municipality of Vora
(1 town + 8 villages)
Population: 16 207
Area: 36.7 km2
Zall-Bastar 12 6 520 52.5
Zall-Herr 9 9 529 55.9
Pezë 10 6 076 87.0
Farkë 6 9 089 21.2
Vaqarr 10 8 000 39.4
Ndroq 11 9 370 20.3
Bërxullë 3 6 898 8.8
Shëngjergj 12 4 718 29.6
Prezë 7 6 062 24.0
Baldushk 14 6 100 11.0
Petrelë 17 6 800 21.1
Dajt 13 8 561 114.5
Kashar 7 17 050 40.8
Krrabë 3 3 750 1.9
Bërzhitë 11 6 152 16.0
Paskuqan 8 29 921 70.4
District of Kavajë:
2 municipalities
8 communes:
Municipality of Kavajë
(Kavajë Town)
Population: 35 988
Area: 18 km2
Municipality of
Rrogozhine
(1 town + 1 village)
Population: 10 789
Area: 15 km2
Helmës 10 4 988 64.4
Kryevidh 10 8 810 42.2
Sinaballaj 9 2 550 28.0
Golem 11 10 246 20.8
Luz i Vogël 4 9 335 23.7
Gosë 5 7 335 44.7
Synej 7 9 618 20.8
Lekaj 9 9 503 44.0
Source: Ministry of Local Government and Decentralization, 2005.
42 Annex
Table 15. Poverty and inequality indicators in the Tirana region
District Commune Head counta
(percentage)
Gini coefficient (percent) Consumption
(ALL/capita/month)
Kavajë Sinaballaj 43.20 22.85 5 658.50
Gosë 41.33 25.76 6 028.76
Helmës 40.28 26.76 6 196.93
Kryevidh 38.62 24.88 6 158.33
Lekaj 36.83 25.66 6 357.54
Luz i vogël 34.96 26.63 6 616.27
Golem 32.16 26.44 6 820.02
Synej 29.26 25.16 6 912.36
Rrogozhine 27.95 29.47 7 676.52
Kavajë 12.90 28.26 10 026.09
Tirana Vaqarr 47.41 26.75 5 699.30
Shëngjergj 45.65 23.98 5 648.27
Baldushk 44.02 25.06 5 818.35
Petrelë 42.72 27.03 6 036.59
Zall-Herr 42.23 24.39 5 880.84
Pezë 41.22 25.54 6 045.98
Krrabë 41.15 25.46 6 020.20
Prezë 40.39 27.10 6 243.29
Dajt 35.88 27.98 6 711.93
Zall-Bastar 34.68 27.95 6 848.38
Bërzhitë 33.53 27.16 6 769.70
Bërxull 33.04 27.82 6 939.43
Farkë 32.86 25.80 6 693.55
Ndroq 32.74 29.24 7 179.32
Paskuqan 27.76 26.59 7 288.45
Kashar 25.65 26.99 7 542.32
Kamzë 27.09 25.76 7 236.27
Vorë 23.50 25.73 7 574.76
Tirana 17.84 29.32 9 003.02
a Head count is the proportion of all individuals whose level of consumption is below the basic needs poverty line.
Source: INSTAT and World Bank, 2002.
The food supply and distribution system of Tirana, Albania 43
Table 16. Main economic data, 1998–2004
Unit 1998 1999 2000 2001 2002 2003 2004
Population Million 3.35 3.37 3.23 3.08 3.10 3.10 3.12
Inflation Percentage 20.90 0.40 0.00 3.10 5.20 2.40 2.90
Exchange rate ALL/US$ 150.60 137.70 143.70 143.50 140.20 121.90 102.80
GDP US$ billion 2.70 3.40 3.70 4.10 4.50 5.70 7.60
GDP real growth Percentage 12.70 10.10 7.30 7.20 3.40 6.00 6.00
GDP per capita US$ 816.00 1 021.00 1 143.00 1 334.00 1 450.00 1 837.00 2 431.00
Total income Percentage of the GDP 24.90 26.00 24.60 24.70 24.50 24.10 23.60
Total expenditure Percentage of the GDP 34.30 34.90 32.10 31.60 30.60 28.90 28.50
General deficit Percentage of the GDP -9.50 -9.00 -7.50 -6.90 -6.00 -4.90 -4.90
Internal debt Percentage of the GDP 36.20 37.40 42.60 39.60 38.80 40.40 37.80
External debt Percentage of the GDP 36.90 32.30 31.60 28.20 24.40 21.10 18.30
Trade balance US$ million -604.00 -663.00 -821.00 -1 027.00 -1 155.00 -1 336.00 -1 579.00
Exports US$ million 208.00 275.00 255.00 305.00 330.00 447.00 603.00
Imports US$ million 812.00 938.00 1 076.00 1 332.00 1 485.00 1 783.00 2 182.00
Export growth Percentage 31.10 32.30 -7.20 19.30 8.40 35.40 35.00
Import growth Percentage 17.00 15.50 14.80 23.70 11.60 20.10 22.40
Source: Ministry of Finance, 2005.
Table 17, Poverty indicators in Albania, 1998, 2002, 2003
Indicator 1998 2002 2003
Percentage of population that consumes below the level of basic needs n.a. 25.40 n.a.
Percentage of population that consumes less then the minimal level of calories
considered sufficient for a healthy lifestyle
n.a. 4.70 n.a.
Percentage of population that consumes below 60 percent of median consumption 29.60 13.50 n.a.
Percentage of population that consumes below 40 percent of median consumption 16.20 2.50 n.a.
Percentage of population whose income per capita is below US$2 per day 46.60 10.80 n.a.
Gini coefficient 0.43 0.28 n.a.
Percentage of population living below the poverty line n.a. 20.00 17.00
Percentage of population with running water at home n.a. 50.00 40.00
Source: INSTAT and World Bank, 2002.
44 Annex
Table 18. Main agrofood production, 2000–2004
Description Unit 2000 2001 2002 2003 2004
Sausage and ham tonnes 4 055 4 395 5 444 5 893 7 245
Jam and compote tonnes 218 116 369 450 438
Canned vegetables tonnes 105 283 586 683 414
Oil tonnes 2 229 9 748 14 026 21 530 24 528
Milk hl 33 169 46 500 46 325 34 720 25 275
Butter tonnes 440 334 762 467 790
Cheese tonnes 8 404 8 056 10 336 12 055 13 301
Yogurt tonnes 5 310 4 222 6 345 8 600 14 478
Flour tonnes 269 000 270 000 273 391 283 755 286 997
Bread tonnes 198 000 200 000 205 000 211 000 215 000
Noodles tonnes 124
Beer hl 85 837 116 720 154 681 144 042 298 326
Wine hl 7 413 14 228 6 625 9 164 14 024
Other alcoholic drinks hl 28 767 29 681 46 062 39 666 34 123
Soft drinks hl 420 448 369 990 423 069 508 567 661 136
Mineral water hl 386 559 334 064 321 238 469 674 815 903
Cigarettes tonnes 372 126 47 15 15
Tobacco tonnes 2 988 4 013 2 174 2 919 752
Soap tonnes 77 366 164 38 n.a.
Source: MAFCP, 2004b.
Table 19. Production of fruits per capita, 2003–2004
Region kg/capita
2003 2004
National average 24.7 27.2
Berat 47.8 56.6
Dibër 40.5 48.6
Durrës 22.1 22.0
Elbasan 19.1 24.0
Fier 20.2 21.0
Gjirokastër 25.1 29.7
Kukës 52.3 60.7
Korçë 36.9 41.3
Lezhë 26.2 33.7
Shkodër 30.1 30.3
Tirana 10.6 10.0
Vlorë 18.0 18.7
Source: MAFCP, 2004b.
The food supply and distribution system of Tirana, Albania 45
Table 20. Supply level, production and imports/exports for the processed fruits
and vegetables subsector, 2000–2003 (in kg)
Years Demand Production Imports Exports
2000 13 855 764 323 000 15 091 313 1 558 549
2001 12 398 680 399 000 13 035 229 1 035 549
2002 14 024 591 955 000 14 287 613 1 218 022
2003 11 583 831 1 133 000 11 283 128 832 297
Source: MAFCP, 2004b.
Table 21. Supply level, production and imports/exports for the flour subsector,
2000–2003 (in kg)
Year Demand Production Imports Exports
2000 382 011 770 269 000 000 113 011 770 n.a.
2001 380 164 921 270 000 000 110 196 674 31 753
2002 390 541 894 273 391 000 117 150 894 n.a.
2003 351 764 396 283 755 000 70 763 636 2 754 240
Source: MAFCP, 2004b.
Table 22. Supply level, production and imports/exports for the oil subsector,
2000–2003 (in kg)
Years Demand Production Imports Exports
2000 30 980 067 2 229 000 28 789 196 38 129
2001 43 932 716 9 748 000 34 189 000 4 284
2002 47 681 000 14 026 000 33 655 000 n.a.
2003 56 672 869 21 530 000 35 294 288 151 419
Source: MAFCP, 2004b.
Table 23. Supply level, production, and imports/exports for the soft drinks and
fruit juice subsector, 2000–2003 (in litres)
Year Demand Production Imports Exports
2000 47 471 405 42 044 800 12 850 649 7 424 044
2001 50 758 873 36 999 000 15 917 535 2 157 662
2002 1 071 120 618 42 306 900 65 693 403 888 242
2003 70 831 706 50 856 700 20 653 028 678 021
Source: MAFCP, 2004b.
46 Annex
Table 24. Domestic production of agro-industry and meat subsector
(in million ALL)
2000 2001 2002 2003
Meat derivates production n.a. 1 717.0 2 452.0 2 248.0
Gross value in the agrofood industry 27 834.0 29 994.0 33 914.0 37 699.0
Percentage of the meat subsector n.a. 5.7 7.2 6.0
Source: MAFCP, 2004b.
Table 25. Fresh meat production (in tonnes)
Year Marketa Domestic productsb Imports
2000 69 374 608 68 766
2001 91 727 545 91 182
2002 89 306 623 88 683
2003 83 245 1 776 81 479
a Total market = domestic production + imports (export is not included)
b Domestic production is measured by the output levels from the registered butcheries in by part of the animals imported.
Source: MAFCP, 2004b.
Table 26. Production price levels, 2002, 2003, 2004 (in ALL/kg)
Product 2002 2003 2004 Variation in percentage
(2002 –2003)
Variation in percentage
(2003–2004)
Fresh cattle meat 487 545 n.a. 11.9 n.a
Frozen cattle meat 585 600 544 2.6 -9.3
Fresh pork 221 299 251 35.3 -16.1
Frozen pork n.a. 200 200 0.0 0.0
Goat meat 450 600 n.a. 33.3 n.a.
Innards 531 333 521 -37.3 56.5
Fresh poultry 111 145 180 30.6 24.1
Frozen poultry 164 193 117 17.7 -39.4
Cured meats and bacon 490 459 422 -6.3 -8.1
Salami 447 352 330 -21.3 -6.3
Ham 452 400 468 -11.5 17.0
Hamburgers, meatballs 169 201 219 18.9 9.0
Source: MAFCP, 2004b.
The food supply and distribution system of Tirana, Albania 47
Table 27. Production price levels for food processed products, (in ALL),
2002–2003 and their variation (base year 2002)
Products Measurement unit Average price
2002
Average price
2003
Variation (%)
Processed vegetables and olives kg 120 127 5.83
Salted olives kg 136 161 18.38
Fruit jam kg 120 125 4.17
Marmalade kg 79 103 30.38
Processed fruits kg 114 125 9.65
Fruit juice litre 69 78 13.04
Tomato sauce kg 118 122 3.39
Refined sunflower oil kg 122 120 –1.64
Olive oil kg 288 337 17.02
Flour kg 58 27 –53.45
Source: MAFCP, 2003a and 2004a.