Challenges and Threats in Dairy Industry of Kosovo

AuthorIsak Berbatovci
PositionEuropean University of Tirana
Vol. 4 No.3
January, 2019
Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Graz-Austria
ISSN 2410-759X
Acces online at
Challenges and Threats in Dairy Industry of Kosovo
Isak Berbatovci
European University of Tirana
Livestock, milk and dairy products in Kosovo have been always in high demand and was main
and only source of income for many people in Kosovo due to high rate of unemployment,
therefore it is essential that to bring the a ention to this sector’s development and to analyse
dairy industry and its challenges and threats within the eld. Semi-structured questionnaires
were used to interview 61 respondents, mainly owners or managers of businesses in the dairy
In general, Kosovo dairy industry is characterised with slow development due to the limited
investments such as capital for lending as well as high interest in a banking sector which leads
unsuitable loans, shortage of nancial support that re ects the whole industry development.
In addition, as a result of high production cost due to poor infrastructure, lack of trust due to
poor formal business wri en contract, low production e ciency, limited economy of scale and
relationships between the actors the level development of dairy industry is not satisfactory.
In recent decades, the industry is demanding for the advanced and suitable government
regulations as the country’s growth in social and economic situation, therefore challenges,
threats identi ed and recommendation in this study could be taking into account and applied
into the dairy industry, in order to see the successful future on this sector.
Keywords: Challenges, Dairy Industry, Participants, Constraints, Threats.
Overall, the dairy industry in Kosovo and agriculture, in general, have a history
of dealing with di culties and threats. Before the 90s, in the socialist system, the
expressed concerns were the low milk production on farms, lack of technologies,
state ownership, and the small number of commercial private farms. But over time,
the nature of the di culties has changed, during the 90s the command production
system had broken apart and cooperatives had dissolved. Many families became self-
su cient units, producing what they could to meet consumption needs and trading
any surplus to procure other goods and services. Then, the violent con ict of 1998-
1999 destroyed much of the production base, damaged infrastructure, overall during
the 1990s riots, the dairy industry has been greatly destroyed (USAID, 2007). A er
this, almost the majority of farms and companies are starting from the rst, during
this time, except for the inherited concerns of the past, poor road infrastructure,
lack of technology, budget shortages, and education in this industry have emerged
as additional adventures of today such as competition from imported products,
hygiene standards compliance, lack of guarantee for products sale.
Livestock today is an important factor in developing the country's economy with
the livestock population of 261,689 ca le, 183,584 sheep and 8430 goats. According
to KSA, Agriculture, forestry and shing contribute about 10.33 percent of national
GDP, whereas the total value of livestock production for 2015 was 278.9 million which

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