Agricultural development remains a priority for all economies, not only in response to the essential resource needs of a growing population but also due to its substantial contributions to total employment and GDP. The chapter analyses the performance and trends of agriculture policies across three sub-dimensions. The first sub-dimension, rural development and infrastructure, assesses strategies and programs related to rural infrastructure, livelihood support, and irrigation systems. The second sub‑dimension, agricultural support systems, covers the agricultural sector's policy, governance and instruments. The third sub-dimension, food safety and quality, focuses on the policy framework regulating food safety and the food quality legislation and agencies, which are key tools in an economy’s path towards productive and sustainable agriculture.
Western Balkans Competitiveness Outlook 2024: North Macedonia
Abstract
North Macedonia has increased its overall agriculture policy score since the previous CO (Table 15.1). This improvement is primarily attributable to the economy’s strides in strengthening its policies and standards related to food safety and quality. However, less progress was made in improving rural development and infrastructure, causing North Macedonia’s score in this sub‑dimension to remain below the regional average.
The key findings are:
While the government of North Macedonia has supported several small-scale projects to expand rural infrastructure, most recent advances have been propelled by donor projects, namely those financed by the World Bank and the German Government. However, road and irrigation systems in particular remain underdeveloped and inadequately maintained, underscoring the need to sustain efforts to further improve this infrastructure.
The IPARD III programme (2021-27), backed by EUR 97 million in financial support, is pivotal for North Macedonia as it strives to boost innovation and reinforce the economic sustainability of rural areas in alignment with EU Common Agricultural Policy standards. While there is a commitment to address challenges from the previous programme, ensuring smooth execution requires careful monitoring and adequate resourcing of the implementation process.
Ongoing efforts to strengthen agricultural information systems, including updates to the Land Parcel Identification System and a new plan to expand data collection for the Farm Accountancy Data Network, have resulted in full alignment with the EU acquis. This distinguishes North Macedonia’s integrated administration and control system as one of the most robust in the region.
There is significant scope to improve North Macedonia’s agricultural research, innovation, technology transfer and digitalisation (RITTD), as the economy lacks both an overarching policy framework and government programmes promoting RITTD. However, its participation in a regional project to develop Agriculture Knowledge and Innovation Systems marks progress toward better fostering collaboration and knowledge exchange in the agriculture sector.
Recent developments, including amendments to the Law on food safety and a new Law on animal health as well as the acquisition of a new veterinary information software, represented notable advances in enhancing the economy’s food safety, animal and plant health policy framework and aligning it with EU regulations.
Despite having comprehensive legislation and the necessary control bodies, North Macedonia’s organic sector is still in its early stages, with only 0.5% of its total agricultural area dedicated to organic farming. While the government provides substantial legal and financial support, there is untapped potential in the sector that could be harnessed through increased technical and/or educational initiatives.
The agricultural sector is a significant part of North Macedonia’s economy, substantially contributing to both GDP and national employment. In 2022, agriculture accounted for approximately 8.1% of GDP, amounting to approximately EUR 858 million (USD 917 million) in real terms (World Bank, 2022[1]). However, this figure has been declining since reaching a relatively high level of 10.4% in 2014 (Figure 15.1). The decrease is partly attributable to the stagnation of the agricultural sector, compounded by faster growth of the overall economy. Indeed, agricultural productivity in North Macedonia is restricted by inefficient use of resources and the limited adoption of technologies (FAO, 2023[2]). Moreover, in the aftermath of the COVID-19 pandemic, disruptions to supply chains, mobility restrictions, and rising prices of inputs like fuel and fertiliser contributed to lower production quantities and the varying quality of agricultural products (Stojcheska, Nacka and Tuna, 2021[3]).
Employment in the agricultural sector followed a comparable pattern, falling from 18.7% in 2011 to 10.8% in 2021. The absolute and relative decrease in these employment rates is primarily attributable to increased agricultural productivity reducing labour demand within the sector, while productivity improvements in the wider economy encourage labour movement into other sectors. Demographic changes in the population as well as the modernisation of the agricultural sector are also contributing factors – a trend observed across the Western Balkans.
In percentage of total employment and value added
Source: World Bank (2024[4]).
Beyond the metrics of GDP and employment, the agricultural sector of North Macedonia also significantly influences the economy’s trade dynamics. Specifically, the international trade of agrifood products plays a central role in shaping the sector’s trajectory and economic contribution. In 2022, the export of agrifood products increased by 17% compared to the yearly averages of 2020 and 2021 (Figure 15.2). However, during this same period, imports of these products rose by 29%, resulting in a 56% growth in the trade deficit. Despite this trend, the proportion of agrifood products in total imports and exports has slightly decreased over the years, as trade in non-agricultural goods has grown faster.
In EUR millions
Source: SWG RRD (2023[5]).
North Macedonia boasts a relatively robust rural infrastructure policy framework. The key frameworks guiding this policy area in the economy are the National Programme for Rural Development (NPRD) and the EU’s Instrument for Pre-Accession Assistance for Rural Development (IPARD III). The NPRD includes initiatives related to modernising and expanding road, water, and electricity infrastructure, whereas IPARD III’s Measure 6 is specifically allocated for investments in rural public infrastructure.
Despite these clearly defined national policies, the economy struggles to improve its infrastructure capacity. Developing road networks in rural areas – defined as settlements within a municipality with a population not exceeding 30 000 residents or a population density of less than or equal to 150 inhabitants per square kilometre according to the national census of households in North Macedonia (FAO, 2011[6]) – presents a significant challenge. Roads in North Macedonia are considered poor compared to EU standards, largely due to ageing infrastructure and inadequate maintenance (World Bank, 2020[7]). Moreover, transport and service delivery challenges are one of the main factors driving the migration of rural residents to urban centres. However, several efforts have been initiated to address this issue. Since 2021, 34 small projects have been designed and implemented to support the development of local roads, such as macadams and terrestrial roads. Additionally, the World Bank is currently funding the Local Roads Connectivity Project, scheduled to conclude at the end of 2024, to strengthen the capacity of all levels of government to manage local roads.
Conversely, while transportation infrastructure only partially addresses agricultural and rural development needs, electricity and ICT infrastructure are better developed. Electricity is available to 99.75% of the population in rural areas; the primary exceptions are arable land areas and pastures where a lack of electricity prevents processes that require electrical power (like irrigation). Similarly, access to the Internet remains high: approximately 85% of rural households had Internet access in 2023, compared to nearly 90% in the EU (Eurostat, 2023[8]; MAKCTAT, 2023[9]). The use of ICT technologies can enhance farmers’ access to information, leading to improved decision making, increased productivity, and innovation in agricultural practices.
Farmers’ availability of information is further facilitated through two platforms. The first is the national electronic agriculture platform (E-Agri),1 developed and managed by the Ministry of Agriculture, Forestry and Water Economy (MAFWE) with the technical support of the Food and Agriculture Organization (FAO) (Box 15.1). The platform aims to offer access to information on the latest weather and market conditions. The other platform is the Agricultural Market Information System,2 which connects consumers and buyers through registers containing information on products, quantities, and prices.
In 2023, the MAFWE in North Macedonia, in collaboration with the FAO, introduced its innovative “E‑agriculture” platform as part of ongoing initiatives to digitalise its agricultural information systems, enhancing sector productivity and sustainability. This platform acts as a centralised hub, providing easy access to various relevant platforms, including the Agricultural Market Information System.
The key features of the E-agriculture platform include:
Weather and market conditions access – The primary objective of this platform is to furnish users with up-to-date information on both weather forecasts and market conditions.
Spatial data with Earth Map integration – Notably, the “Maps” section of the E-agriculture platform grants users access to national and international spatial data on agro-ecological conditions. North Macedonia is the first economy to have its sub-domain on Earth Map, a collaborative open-source platform by Google and the FAO. These spatial data not only aid farmers in decision making but also empower policy makers to design or modify agricultural policies at local and national levels.
“My Farm” tool for farm management – The platform includes a “My Farm” tool, enabling farmers to monitor input costs and income from their agricultural activities. This tool is designed to enhance farm management practices and overall productivity.
Food price monitoring and analysis tool – There is a dedicated tool for monitoring and analysing domestic and international food prices, providing valuable insights for market participants.
As such, the E-agriculture platform in North Macedonia stands as a strong example of leveraging digital technology to enhance information accessibility, decision making, and overall efficiency in the agricultural sector.
Note: The E-agriculture platform can be accessed here: http://e-zemjodelstvo.mk.
Source: Slavkova (2023[10]).
North Macedonia’s approach to promoting rural livelihoods is limited by the absence of a well‑articulated national policy framework and comprehensive government programmes. Specifically, no programmes address economic development, taxation, education or health – essential elements for a holistic approach to preserving and improving rural livelihoods. However, in 2023, the government of North Macedonia introduced two new programmes: the first focuses on providing social security to women engaged in agricultural activities during maternity, while the second offers grants to agricultural food producers for equipment and expert assistance, facilitating compliance with product placement requirements in local markets. Although these two programmes are in a pilot phase, their permanent integration into the NPRD requires securing sufficient financial resources, a challenge facing many areas of the agricultural sector.
Local Action Groups (LAGs) serve as key actors in rural development, as they bring together local stakeholders and help plan and implement local development initiatives. As of January 2024, there are 13 LAGs in North Macedonia that are registered and operational. Under the NPRD, LAGs are potential beneficiaries of two support measures: the measure for support of the project activities, and that for supporting operational costs. These groups also participate in stakeholder consultations with state, regional and local government actors regarding the regulatory framework addressing rural livelihoods, showcasing their central role in influencing policies for rural communities.
North Macedonia’s irrigation policy framework is moderately developed, although inadequate financial resources have limited further progress. The main legal base guiding irrigation policy is the Law on Water.3 This document primarily addresses the construction of new irrigation systems and dams and the extension, maintenance and rehabilitation of existing systems. As evidenced by the priorities delineated in this law, the government emphasises implementing measures related to pressurised systems and pipeline distribution networks for rehabilitated and new systems, particularly as part of its focus on mitigating water stress.
Several government institutions are involved in the economy’s irrigation policy. The MAFWE’s Directorate for Water Economy is primarily responsible for policy formulation. The Ministry of Environment and Physical Planning (MoEPP) is tasked with managing water resources, although the Administration for Water Economy of the Joint Stock Company Water Management handles the operation and maintenance of public irrigation and drainage systems. Finally, the Agency for Financial Support of the Agriculture and Rural Development (AFSARD) implements state support for investment in irrigation (along with other investments for agriculture and rural development, which are detailed in Sub-dimension 14.2: Agriculture support system). Apart from these government actors, there are some agricultural co-operatives for irrigation and farmers associations, but no water use associations exist in North Macedonia.
External donors play a significant role in supporting the development and enhancement of North Macedonia’s irrigation infrastructure. One recent development was the launch of the economy’s Irrigation Programme, a EUR 80 million project funded by the German Government. Set to conclude in 2027, this initiative focuses on the rehabilitation and extension of four irrigation schemes in the Vardar River Basin to improve the availability and efficiency of water resource use. Moreover, several ongoing projects are supported by EU funds under the IPARD programmes. These efforts include the construction of seven small irrigation systems (EUR 8.3 million), several new water systems in the municipalities of Konopnica, Pishica and Tearce (EUR 2.3 million), and new irrigation hydro systems in Sopot and Novaci (EUR 3.5 million) (MAFWM, 2022[11]). Between these three initiatives, North Macedonia is expected to irrigate an additional 2 205 hectares of agricultural land.
The agricultural policy framework of North Macedonia is moderately robust, supported by strong monitoring and evaluation practices and well-developed information systems. The framework itself is composed of two key documents. The first is the National Strategy for Agriculture and Rural Development (NARDS) 2021-27, the major long-term strategic document guiding agricultural and rural development. Its three primary objectives are improving agricultural holdings' competitiveness and income sustainability, applying environmental practices that incorporate climate change mitigation and adaptation measures, and ensuring the sustainable development of rural areas. Despite strategic attention to environmental considerations, translating these goals into concrete measures has yet to be fully realised. The NARDS aligns with the EU Common Agricultural Policy’s (EU CAP) strategic programme periods as well as seven of the ten EU CAP objectives.4
The NARDS is accompanied by a multi-annual National Programme for Rural Development (NPRD). The most recent NPRD, which encompasses the period 2023 to 2027, is designed to streamline the implementation of the NARDS through planned measures and budgetary allocations. In general, these multi-annual programmes serve as the basis for the ongoing implementation of yearly support initiatives in agriculture, rural development, fishery, and aquaculture. The government adopts each NPRD after it is proposed by the MAFWE.
The MAFWE is the primary institution responsible for designing agriculture and rural development policy. Within this ministry is the Rural Development Department, which oversees the formulation, monitoring and evaluation of policies under the national support programmes. The MAFWE also houses the Department for the Management of EU Pre-Accession Funds for Rural Development, which handles policies and measures related to the EU’s Instrument for Pre-Accession Assistance for Rural Development (IPARD) programme. The third body, the Agency for Financial Support in Agriculture and Rural Development, implements and oversees the distribution of national and IPARD funds to support national agricultural policy. Finally, the State Agricultural Inspectorate’s mandate is to serve as the key inspection entity.
Building on experience from previous IPARD cycles, North Macedonia has continued to benefit from the newest cycle, IPARD III (2021-27), and is expected to receive EUR 97 million in EU contributions. IPARD III aims to boost investments in the primary and processing sectors, promote farm diversification, and foster business development. In 2023, the European Commission granted North Macedonia entrustment for implementing IPARD III funds, granting accreditation for Measures 1, 3 and 7.5 Since then, AFSARD initiated its inaugural public calls for Measures 1 and 7, which concluded in late October 2023 (AFSARD, 2024[12]).
IPARD implementation has, however, been hampered by the limited administrative capacity of the Agency and limited transparency in the processes – recruitment of new staff has largely stalled, and training for the existing staff has been limited. Moreover, the lack of electronic access to registers and complicated administrative procedures have raised transparency and efficiency issues in the programme’s execution (Republic of North Macedonia, 2021[13]).
North Macedonia’s national agricultural policies and programmes undergo regular impact assessments and revisions based on monitoring activities. Specifically, the MAFWE annually reviews the implementation of the NARDS, and on a multi-annual basis, the policy is assessed with technical assistance from external donors. The most recent revision occurred in early 2023 and involved several changes to the Programme for Direct Payments following consultations with local stakeholders. However, while these annual assessments are important tools for ensuring the continued efficacy of policies, there is still room to expand their scope. For instance, North Macedonia has yet to evaluate the impact of climate change on the agricultural sector and, consequently, has not incorporated any findings into the formulation of new measures. Moreover, despite a robust strategic framework, it is the only economy in the region that lacks specific policies related to climate change adaptation and mitigation in agriculture.
Of the Western Balkan economies, North Macedonia has one of the most robust agricultural information systems. Its integrated administration and control system (IACS), which plays a pivotal role in managing payments within structures mimicking the EU CAP system, includes all necessary components and is fully aligned with the EU acquis (European Commission, 2023[14]). Specifically, the economy has succeeded in establishing a farm register, a Farm Accountancy Data Network (FADN), and a Land Parcel Identification System (LPIS). The FADN currently comprises a sample of 949 farms, and there is a new plan to select representative agricultural holdings, aiming to expand the data collection sample. The LPIS relies on a Geographical Information System (GIS), with data consistently updated to include newly registered parcels and changes to existing ones.
Concerning producer support instruments, there is still room to improve their design in North Macedonia to align more closely with EU standards. These instruments are outlined in three programmes: the National Programme for Direct Payments, the National Programme for Rural Development, and the IPARD III programme. The two national programmes are the vehicles through which the key strategic objectives of the NARDS are implemented, meaning that support instruments are fine-tuned based on this overarching strategy. These support policies and programmes are partially aligned with the EU CAP. However, they maintain a link between income support payments and commodity production, whereas the EU CAP encourages gradually decoupling such payments from specific production.
Budgetary support to the agricultural sector has been increasing, rising from EUR 109 million in 2013 to EUR 154 million in 2022 (Table 15.2). Of the total budgetary support throughout this period, 97% involved transfers from the national budget, while the remaining funds stemmed mainly from the IPARD I (2007-13) and IPARD II (2014-20) programmes. Beyond the upward trend in nominal terms, support per hectare (ha) has also steadily risen, exceeding EUR 130/ha in 2022 (Stojcheska et al., 2024[15]). Yet despite this increase, these levels of budgetary support are much lower when compared to the EU levels (which averaged at least EUR 200/ha in 2023) (European Commission, 2023[16]). On the other hand, since most of these funds are dedicated to income support, the impact on structural improvements, modernisation and, most importantly, environmental and societal benefits remains limited. Most notably, support schemes currently lack conditionality for environmental and social considerations, yet there is some ongoing work to align policies with the Action Plan on the Green Agenda for the Western Balkans.
The main support form is direct payments, which are available to farmers based on numerous criteria, including land area, number of livestock heads, output, and input use or purchase. This direct support aligns with the first pillar of the EU CAP,6 which encompasses payments granted directly to farmers. Approximately 60% of direct payment support in North Macedonia is linked to factors of production, primarily measured by the area of agricultural land or per head of livestock. Additionally, these payments are contingent on compliance with GLOBALG.A.P. (Good Agricultural Practices).7 However, eligibility for these payments is not conditional on meeting environmental or food safety standards.
The remaining 40% of total direct payments are linked to output, defined as per unit of agricultural product. They are mostly tied to production outputs supplied to the processing industry. Conversely, for certain strategically important groups of agricultural products, support is still determined by paying premiums per unit of product sold in processing facilities. In 2023, premium payments were applicable to tobacco, fruit, and vegetables, as well as to milk, cattle, pigs, and broilers slaughtered in a registered slaughterhouse.
Farmers and agricultural producers also have access to various instruments supporting risk management, notably subsidised agricultural insurance. In particular, state assistance for insurance premiums partially covers the expenses related to ensuring primary agricultural production against natural disasters and adverse climatic events. This aid is capped at 60% of the insurance premium cost, with a maximum limit of MKD 150 000 (EUR 2 440) per agricultural holding for damage resulting from unfavourable climatic events.
Russia’s war of aggression against Ukraine has led to shortages and rising prices of food and fuel, prompting the government of North Macedonia to restructure some of its policies and measures. Examples included the introduction of subsidies to offset rising fertiliser prices and lower the fuel cost (required for agricultural machinery) for farmers. The government also prioritised grain storage and its associated costs, offering preferential electricity prices to the agrifood industry. Additionally, the government adopted the National Plan for Food Production, which led to establishing an Intervention Fund worth MKD 400 million (EUR 6.5 million) to support the production of strategic crops. In the end, farmers received 40% additional assistance to buy fertilisers for corn and maize in addition to MKD 2 500 (EUR 40) per hectare for soybean and barley cultivation (Dimitrievska, 2022[17]).
North Macedonia also offers support aligning with the second EU CAP pillar, rural development. Between 2020 and 2022, financing for structural and rural development measures in North Macedonia exceeded EUR 35 million. Most of this funding sought to enhance the competitiveness of farming and agricultural entrepreneurship. Despite this emphasis, support for rural populations remains relatively limited, and payments for environmental and social services are not yet included in this funding.
Agricultural trade policy in North Macedonia is marked by ongoing liberalisation. While there are no import tariffs on inputs, tariffs are applied to agrifood products, with higher tariffs applied to products deemed “highly sensitive”, such as meat products, wine, and select produce. The duty rates and tariff quotas for agricultural products, as outlined in the relevant free trade agreements, are available on (Republic of North Macedonia Ministry of Finance Customs Administration, 2024[18]). On the other hand, since its 2003 accession to the World Trade Organisation, North Macedonia has refrained from applying export subsidies, credit support, duties, or taxation to any agricultural product.
Although no changes to trade policies have been made since 2021, strategies and legislation related to agricultural trade policies are monitored every few years as part of the broader evaluation of the national agriculture strategy. These policies are then revised based on the outcome of evaluation activities, namely the feedback given by business operators and the results of the analysis of market conditions. This assessment is jointly carried out by the MAFWE, the Ministry of Economy and the Ministry of Finance. In 2023, the government of North Macedonia adjusted its free trade agreement with Ukraine. Through this revision, North Macedonia opens its market to certain agricultural products from Ukraine, including, among others, cattle and pork meat, chicken meat, milk, cream and butter, barley, maize, oil, sugar and confectionery products8 (Government of Ukraine, 2023[19]).
With respect to the agricultural tax regime, the policy and legal framework for agricultural taxes in North Macedonia is limited. Individuals who receive income of up to MKD 1 000 000 (EUR 16 250) from the supply of their agricultural products are exempt from personal income taxes under Article 46 of the Law on Personal Income Tax. Apart from this stipulation, no specific tax provisions exist for farms, co-operatives, or agriculture-related businesses. Moreover, the government does not assess the impact of tax policies on natural resources and the environment, nor are there taxes on agricultural emissions.
North Macedonia does not have a well-defined policy framework or government programmes related to agricultural RITTD. Investments in research and development (R&D) and innovation are crucial for enhancing the productivity, sustainability, and resilience of agricultural production. However, the government is currently adopting a Law on Advisory Systems in Agriculture and Rural Development; while this legislation does not encompass all potential RITTD areas, it would provide a formalised framework for offering agricultural extension and advisory services. Currently, these services are provided for free by the public sector, primarily through the National Extension Agency (NEA). Activities mainly target small-scale farmers. However, of the 150 000 farmers enrolled in the national farm register, fewer than 700 have received support from the NEA, which has only 70 agricultural advisors. To help address this gap, the NEA engages more farmers through group activities that aim to transfer knowledge and skills to adopt technologies and practices for competitive and sustainable production. The NEA also supports agricultural producers in understanding and aligning with the standards required to achieve the requisite conditionality for receiving IPARD and national funds. Private advisory services for agriculture could improve the economy’s coverage; however, no regulated or institutionalised private services exist in North Macedonia.
One major development has been the MAFWE’s participation in a regional project that aims to develop an Agriculture Knowledge and Innovation System (AKIS) (Kasimis et al., 2022[20]). As part of this project, North Macedonia has developed a roadmap for developing a functional and integrated national AKIS with three main pillars: introducing new structures, strengthening the capacities of AKIS actors, and cultivating relationships among these actors. Given that the government of North Macedonia has already made efforts to adopt a law governing advisory services, the next milestones would be establishing private advisory services and an academy for certifying experts.
Beyond participating in this regional AKIS project, the MAFWE also participates in several other forms of cross-border, international collaboration in agriculture RITTD. For instance, the MAFWE engages in numerous training courses, workshops, scientific visits, and fellowship and technical meetings, primarily through the International Atomic Energy Agency’s Technical Cooperation programme.
Overall, North Macedonia is fairly advanced in aligning food safety, animal and plant health legislation with international standards. The national policy framework concerning food safety and animal health endeavours to align with relevant EU legal principles, including establishing maximum residue levels (MRLs) following EU regulations. In December 2022, the government of North Macedonia amended its legislation to better align with the EU acquis on specific requirements for microbiological criteria for food (European Commission, 2023[14]). Moreover, a new Law on animal health was recently drafted to align with the latest EU regulations; its adoption is still pending. Policies in these areas are revised annually, which helps to promote a high degree of alignment with EU regulations.
However, regulations safeguarding plant health and protection only partially align with EU standards. The current Plant Health Law was harmonised with the EU Directive 2000/29, but in 2016, a new EU Plant Health Law was put in place, and additional reforms were introduced, with the current Plant Health Law of North Macedonia not totally aligned. However, a new Plant Health Law in North Macedonia is currently the subject of working group consultations. The law intends to transpose two key EU regulations – Regulation (EU) 2016/2031 and Official Control Regulation (EU) 2017/625. There is also no national strategy for phytosanitary policy.
Multiple institutions collaborate to oversee and manage the national food safety, plant protection, and veterinary policy framework. The Food and Veterinary Agency (FVA) is the primary authority for food safety and veterinary matters and is responsible for liaising with EU institutions on related policies. While the FVA operates independently, other central entities, including the Phytosanitary Directorate and the State Agriculture Inspectorate, operate under the Ministry of Agriculture, Forestry, and Water Economy (MAFWE), each with distinct responsibilities. Institutional co-ordination ensures effective formulation and implementation of food quality policies, with ministries overseeing geographical indications (GIs) in specific sectors and inspectorates conducting official controls, supported by ad hoc thematic groups and expert committees facilitating collaboration with external entities such as universities and consumer organisations.
Apart from these government bodies, another key actor in the food safety and animal and plant health field is the laboratories responsible for monitoring and safeguarding agricultural and food products. In North Macedonia, there are a total of 30 laboratories under the competency of the FVA that test products. They are all accredited under the MKS EN ISO/IEC 17025:2006 standard,9 which defines the competency requirements for testing and calibration laboratories. The results of these laboratories are recognised by both Central European Free Trade Agreement (CEFTA) parties and the EU in the fields of food safety and phytosanitary health. Recognition from the EU stems from a multilateral agreement (following the “once accredited, accepted everywhere” principle) signed between the Institute of Accreditation of the Republic of North Macedonia and the European Accreditation Organisation. Moreover, the economy has established a food safety, veterinary and phytosanitary reference laboratory network through a memorandum for technical co-operation between the MAFWE’s State Phytosanitary Laboratory and several other countries’ counterparts (including in Greece, Italy, and Bulgaria).
North Macedonia employs risk-based inspections in the field of food safety. These risk assessment and management procedures align with SPS rules and utilise the International Plant Protection Convention, Codex Alimentarius and European Food Safety Authority (EFSA) methodologies.10 In 2020, a new risk assessment methodology was adopted for each subject-operator based on the severity of harmful consequences and the probability of occurrence of harmful consequences. Based on this assessment, operators are categorised as low, medium or high risk.
In recent years, the economy has made several adjustments to its risk-based inspection system, particularly by upgrading technical standards. One example is the recent transfer of a new veterinary information software under a new project with the FAO (United Nations in North Macedonia, 2023[21]). As North Macedonia’s original veterinary information system is more than a decade old, it was outdated in terms of its technological capacities and its alignment with EU legislation. This new software is harmonised with EU standards and seeks to improve animal traceability and food safety. Another development was the preparation of standard operating procedures for phytosanitary inspection in 2022. Additionally, the State Agriculture Inspectorate is currently working to upgrade its IT system with a specific module on risk-based border phytosanitary inspection. These advances ensure that agricultural products adhere to quality standards and regulatory requirements.
North Macedonia's food quality policy is structured within a comprehensive national framework outlined in NSARD 2021-27. The MAFWE oversees Geographical Indications (GIs) in the agrifood and wine sectors, while the State Office on Intellectual Property manages GIs in the spirit drinks sector. National standards on food marketing are only partially harmonised with those of the EU;. However, standards related to obligatory marketing are harmonised, and the perceived complexity of implementation by small producers has hindered complete alignment. The legal base on GIs, consisting of three laws guiding GIs for agricultural products, spirit drinks, and wine, is only partially harmonised with EU regulations. Once again, full alignment is hindered by the perception among some agricultural producers that these standards entail more costs (i.e. through more frequent inspections) than benefits. Food quality regulations are generally harmonised, but specific measures have not been implemented in certain sectors – namely the dairy milk sector.
North Macedonia’s legislation on organic foods, as outlined in the Law on Organic Agricultural Products,11 mostly aligns with the EU acquis. However, a new law on organic farming has yet to be adopted. Additionally, the national law on genetically modified organisms (GMOs) is by EU regulations. There are two local organic certification bodies: Balkan Biocert Macedonia and Pro Cert Control and Certification OKS, both authorised by the MAFWE. Yet despite the high degree of policy alignment and presence of certification bodies, organic agricultural production remains relatively limited, with less than 0.5% of the total agricultural area in North Macedonia used for organic production (SWG RRD, 2022[22]). There is significant scope to strengthen the domestic organic market further, taking advantage of the economy’s favourable climatic conditions and notable government and donor support (Association of Agricultural Economists of North Macedonia, 2022[23]).
North Macedonia has achieved moderate progress in implementing most of the past CO Recommendations. Moderate improvements in the establishment of a monitoring and evaluation system have been made, while some notable strides were also made in strengthening institutional co‑ordination and improving farmers’ access to information. Below, Table 15.3 shows the economy’s progress in implementing past recommendations for agriculture policy.
Considering the gaps in the implementation of the previous recommendations, there are still areas in which North Macedonia could strengthen the policy environment for agriculture, including the area of rural development, infrastructure, the agriculture support system and food safety and quality policies. As such, policy makers may wish to:
Continue to improve processes and capacities to ensure smooth implementation of the new IPARD III programme. In line with evaluation findings by (Ecorys, 2021[24]), it is vital that the government of North Macedonia, particularly the Agency for Financial Support in Agriculture and Rural Development, ensure the efficient use of IPARD III funds, particularly in support of the measures for which the MAFWM has recently obtained entrustment. This would allow the national agriculture sector to benefit from this additional investment.
Enhance support for the ongoing development of rural infrastructure, particularly roads. Despite advances supported by funding from external donors (such as the World Bank), limitations in the financial resources of the MAFWE have impeded a more rapid pace of progress. As such, the continuation and expansion of efforts – either independently or co-implemented by the government of North Macedonia – to improve this infrastructure would likely improve connectivity of and service delivery to rural areas. This, in turn, could reduce migration pressures, which are a major challenge currently impacting the economy’s agricultural sector.
Establish a well-defined framework for agricultural RITTD. The government of North Macedonia should develop a policy framework and allocate increased resources to support research and development initiatives supporting innovation and technology transfers for farmers and agricultural producers. Additionally, the government should continue to work toward the adoption of the formalisation of its novel AKIS.
Continue to align food safety and quality regulations with the EU acquis. While North Macedonia has succeeded in aligning its regulations on animal health and food safety with the relevant EU legal bases, there is still room to achieve better harmonisation with EU standards in the fields of plant health and food quality. For instance, the government should focus on aligning its draft Law on Plant Health with the most up-to-date EU regulations. As the economy advances on its EU accession journey, achieving alignment in this area is vital for ensuring the competitiveness of agricultural products and fostering a seamless integration into the broader European market.
Further develop the organic farming sector. North Macedonia remains well below the EU average in terms of total agricultural area under organic farming (Box 15.2). As such, the MAFWE should develop and support programmes that aim to strengthen the provision of administrative and technical assistance that can reduce barriers to entry to the sector. Additionally, the NEA could offer advisory services that seek to improve farmers’ skills or competencies in order to ensure sufficient professional knowledge to succeed in organic farming consequently (World Bank, 2022[25]).
Integrate environmental standards into agricultural policies and programmes. There is significant scope to better incorporate environmental concerns, such as requiring compliance with environmental standards for eligibility for producer support instruments or creating specific policies or targets related to climate change adaptation or mitigation in the agricultural sector. By mainstreaming environmental considerations into policies and programmes, the economy could promote a more sustainable, resilient agricultural sector.
The European Union has increasingly prioritised organic farming, which has emerged as one of the fastest-growing areas of European agriculture. This emphasis is notably reflected in two key policy frameworks: the European Green Deal’s Farm to Fork Strategy and the 2030 Biodiversity Strategy. Both initiatives aim to foster fair, healthy, and environmentally sustainable food systems across Member States. Within this strategic framework, the EU has set an ambitious target for 25% of its agricultural land to support organic farming by 2030 – even though only 9.9% of this land was certified organic in 2021. Nonetheless, that goal underscores the EU’s dual commitment to improving the sustainability of its food systems and safeguarding biodiversity.
To effectively work toward this target, the European Commission introduced the Action Plan for the Development of Organic Production. This plan guides EU Member States, urging them to incorporate national values or thresholds into their Common Agricultural Policy strategic plans. The objective is to meet the Green Deal’s targets and comprehensively analyse national agriculture sectors. This approach acknowledges the distinct starting points of each country – some, like Austria, Estonia, and Sweden, have already surpassed the 20% threshold, while others, including Ireland and Bulgaria, lag at less than 5%. As such, this tailored strategy promotes a nuanced and effective pathway toward enhancing organic farming across the diverse landscapes and contexts of the EU Member States.
Sources: European Commission (2021[26]); OECD (2023[27])
References
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[17] Dimitrievska, V. (2022), “Shortages force North Macedonia to change its farm policy”, BNE IntelliNews, https://intellinews.com/shortages-force-north-macedonia-to-change-its-farm-policy-243184/ (accessed on 25 January 2024).
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[16] European Commission (2023), Income Support Explained, https://agriculture.ec.europa.eu/common-agricultural-policy/income-support/income-support-explained_en#:~:text=Payments%20are%20at%20least%20EUR,EUR%20215%2Fha%20in%202027 (accessed on 24 January 2024).
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[1] World Bank (2022), Agriculture, Forestry, and Fishing, Value Added (Constant 2015 USD)- North Macedonia, https://data.worldbank.org/indicator/NV.AGR.TOTL.KD?end=2022&locations=MK&start=2010 (accessed on 7 June 2024).
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[7] World Bank (2020), Implementation and Results Report: National and Regional Roads Rehabilitation, https://documents1.worldbank.org/curated/en/638831586199221804/pdf/North-Macedonia-National-and-Regional-Roads-Rehabilitation-Project.pdf (accessed on 26 January 2024).
← 1. To access the E-Agri platform, refer to https://e-zemjodelstvo.mk/.
← 2. To access the Agricultural Market Information System, refer to https://ponudapobaruvacka.zpis.gov.mk/Default.
← 3. To read the Law on Water, refer to www.moepp.gov.mk/wp-content/uploads/2014/10/LAW-ON-WATERS.pdf.
← 4. The seven EU CAP objectives covered by the NARDS are ensuring a fair income for farmers, increasing competitiveness, improving the position of farmers in the food chain, climate change action, preserving landscapes and biodiversity, protecting food and health quality, and fostering knowledge and innovation.
← 5. The EU framework for IPARD III programming provides for 13 different measures, explained in the sectoral agreement concluded between the European Commission and each of the IPARD beneficiary countries. For more information, see https://agriculture.ec.europa.eu/international/international-cooperation/enlargement/pre-accession-assistance/overview_en.
← 6. The CAP is divided into direct support and market measures (first pillar) and rural development (second pillar). For more details, see www.consilium.europa.eu/en/policies/cap-introduction/.
← 7. For more information about GLOBALG.A.P., please see: www.globalgap.org/.
← 8. For more information on the trade agreement concluded in 2021, refer to https://wits.worldbank.org/GPTAD/PDF/archive/FYROM%20-%20Ukraine.pdf
← 9. MKS EN ISO/IEC 17025:2006 is a specific accreditation standard in North Macedonia. EN refers to European Standards, indicating alignment with European norms. ISO refers to the International Organization for Standardization, responsible for developing and publishing international standards. The IEC, or the International Electrotechnical Commission, is involved in standardising electrical and electronic technologies. The ISO/IEC 17025 standard refers to the testing and calibration of laboratories. For more information, please see www.iso.org/ISO-IEC-17025-testing-and-calibration-laboratories.html.
← 10. The International Plant Protection Convention (IPPC) addresses all aspects of plant pests in food. The Codex Alimentarius, or "Food Code," is a collection of standards, guidelines, and codes of practice adopted by the Codex Alimentarius Commission. The European Food Safety Authority (EFSA) is an EU agency that provides independent scientific advice on food-related risks.
← 11. Law on Organic Agricultural Production, Official Gazette of the Republic of Macedonia Nos. 146/09, 53/11, 149/15, 39/16 and 132/16).