The agribusiness industry in North Macedonia is one of the fastest-growing sectors, with over a 10% increase in recent years. Adding value to the country’s high-quality agricultural products, which meet the demands of major European markets, is a core business in North Macedonia. The Government of North Macedonia considers agriculture a target area for future investment, growth, and development, with a focus on attracting increased foreign direct investment. Key government priorities include improving living and working conditions in rural areas, enhancing access to knowledge, and investing in human capital within the agriculture sector.
The sector’s competitive advantages include a unique combination of Continental and Sub-Mediterranean climates, environmentally friendly production practices, advanced food processing technologies, and a qualified labor force available in rural areas. North Macedonia enjoys good access to regional markets and is known for producing high-quality food products. The country’s natural conditions, coupled with its agricultural tradition and newly developed skills, create diverse opportunities in agriculture, from high mountain pastures at elevations over 2,000 meters to rich, water-fed valleys with Mediterranean climates.
The agribusiness and food processing sector is North Macedonia’s most important and promising economic sector. Nearly 435,500 people, out of a population of 2.1 million, derive all or part of their income from agriculture. In December 2020, the average gross monthly salary in this sector was €524. The agriculture sector benefits from a well-developed educational system, which includes 7 faculties specializing in agricultural fields, along with secondary schools in 10 cities throughout North Macedonia that focus on agriculture and forestry.
Fresh fruit and vegetable production
Fresh fruit and vegetable production accounts for 45.8% of agricultural output and is export-oriented. Almost 80% of this production is exported as fresh, preserved, or processed products.
Preserved fruits and vegetables
The food processing industry in North Macedonia consists of 50 companies, with a processing capacity of approximately 180,000 tons of fruits and vegetables annually. Over 80% of production is exported to the EU and neighboring markets for further processing.
Investments in Purchasing and Distribution Centers
To boost investment in improving the physical infrastructure for marketing agro-food products, the Government offers attractive locations in rural areas of particular importance for producing fresh fruits and vegetables. These locations are available to foreign investors interested in building purchasing and distribution centers.
Cattle
Lamb meat is the most important export-oriented product in the cattle sector, with the majority of lamb being exported to EU countries, generating over €10 million in revenue.
The development of fresh broiler chicken farms has been promoted in the last decade, making North Macedonia one of the region’s leading producers with almost unlimited export potential in neighboring countries.
Meat Processing Industry
With high regional consumption of meat, there are significant investment opportunities in the meat processing industry, particularly in lamb meat processing and sales in the EU markets.
Industrial crops and Oriental Quality Tobacco
Industrial crops include 88% tobacco, 11.1% sunflower, and 1% poppy. Tobacco is the most important industrial crop, with domestic varieties known for their specific oriental quality.
Wine industry
The production of high-quality wine is ensured through strict control of grape varieties, vine plantations, harvest, and advanced processing technologies. Macedonian wines are highly competitive in international markets. Wine is one of the country’s most important export products, both regionally and to EU countries.
Organic Food
North Macedonia has significant potential to develop its organic sector due to its extensive traditional agricultural production, favorable climatic and soil conditions, and the use of traditional farming methods. Synthetic fertilizers and pesticides are used minimally, and large areas remain free from pollution, making it an ideal location for organic agriculture.
The top markets for agricultural and food products include the EU (50.5% of total exports, with Greece at 17.9%, Croatia at 12.7%, and Germany at 12.1%) and CEFTA countries (33.98%). Major export products include tobacco, confectionery, fresh and processed vegetables and fruits, and wine.