Western Balkans agriculture and European integration: unused potential and policy failures?

Abstract

The objective of this article is to provide an analysis of the development and current situation in agriculture and agricultural policy in Western Balkan countries (WBs) in relation to the EU accession process. Most WBs have quite high but unused potential for agriculture. The small-scale and fragmented nature of private farming remains a general characteristic of agriculture in all WBs. After a decline in the volume of agricultural production due to transition and armed conflicts an increase seems to have set in for WBs since 2000. However, yields still lag behind the EU average in all WBs, particularly in the livestock sector. In general, agricultural producer prices are rather high, mostly above the EU average, indicating weak price competitiveness for most WB products. Serbia is the only net exporter of agricultural and food products. Budgetary transfers to agriculture have been at a low level, except in Croatia, but mostly are increasing rapidly. The WBs lack a stable agricultural policy and a true strategy of reforms and adjustment to EU requirements.