The agriculture and agro-industry sector "continues to be burdened by numerous structural challenges"

These challenges require a systemic response from the state and all participants in the food production and distribution chain, it was announced at a session of the Board of Associations of Agriculture and Food Industry of the Chamber of Commerce.

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From the board meeting, Photo: PKCG
From the board meeting, Photo: PKCG
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Despite positive indicators in certain production segments, the Montenegrin agricultural and agro-industrial sector is still burdened by numerous structural challenges that require a systemic response from the state and all participants in the food production and distribution chain, it was announced at yesterday's session of the Board of the Association of Agriculture and Food Industry of the Chamber of Commerce of Montenegro (PKCG).

The session discussed the results of the sector's operations in the first half of this year, the implementation of the IPARD III program, as well as the possibilities of including the economy in the University of Montenegro program "Scholarships for the best. Jobs with the best", the Chamber of Commerce announced.

The Chairman of the Board, Milutin Đuranović, pointed out that the sector has achieved encouraging results, primarily thanks to increased domestic production and increased milk purchases, but that the recent crisis with milk surpluses shows how vulnerable domestic production is if it is not accompanied by adequate processing capacities and a secure market. He stressed that it is unacceptable that domestic producers are forced to waste milk, while at the same time imported dairy products are on the market.

He particularly pointed out the importance of the "Buy Ours" campaign, which contributes to raising citizens' awareness of the importance of buying domestic products, assessing that it is consumers who can make a strong contribution to the survival of domestic farms and the development of Montenegrin agriculture through their choices. As he pointed out, preserving livestock production also means preserving life in the countryside, because behind every domestic product are families who invest a lot of work and effort every day to maintain production.

The Secretary of the Committee, Lidija Rmuš, presented the Information on the Business Operations of the Agricultural Sector for the period January–June 2026, stating that favorable weather conditions contributed to a good production year, especially in fruit production, while an increase in the value of the purchase and sale of agricultural products, an increase in the purchase of milk, as well as an increase in production in the food industry were recorded. She assessed that the growth of primary production must be accompanied by the development of processing, logistics and market channels, in order to avoid similar situations in the future.

She also pointed out that, despite the growth in exports of certain products at a higher stage of processing, Montenegro still records a high foreign trade deficit in food exchange, which confirms its strong dependence on imports.

"Therefore, stronger connections between agriculture, the food industry and tourism are needed, increased use of domestic raw materials, greater investments in the development of processing and storage capacities, more efficient use of European funds, as well as greater allocations from the national budget for agricultural development," said Rmuš.

She particularly emphasized that for long-term development it is necessary to keep the population in rural areas, create better conditions for young farmers and develop food production with higher added value. In this process, she adds, the promotion of domestic products and their better positioning in retail chains and tourism offer play a significant role, recalling that the Chamber of Commerce successfully implemented this year's prize game "Let's Buy Ourselves", which, as part of the campaign "The Strength is in All of Us", contributed to raising citizens' awareness of the importance of buying domestic products and supporting Montenegrin producers.

During the discussion, businessmen said that this year's milk procurement crisis has revealed the structural weaknesses of the domestic agricultural and food industry sectors. They also pointed out the paradox that Montenegro, despite its heavy dependence on food imports, is finding itself in a situation where domestic producers cannot market the quantities of milk and other products they produce.

They agree that the growth of primary production must be accompanied by the development of processing and storage capacities, better market organization, and stronger connections between producers, processors, retail chains, and the tourism sector.

Businessmen also pointed out the challenges brought by harmonization with European standards, especially in the production of traditional dairy products, assessing that producers need additional institutional support in order to successfully respond to these requirements.

They believe that the coming period should be used to modernize production, better plan and strengthen the competitiveness of domestic products, in order to better prepare for business conditions in the single European market.

The priorities were the adoption of a law prohibiting unfair trade practices, improving tax regulations, and adapting labor legislation to the specifics of agricultural production. They also emphasized that the promotion of domestic products, through campaigns such as "Buy Ours", along with their stronger positioning in retail chains and the tourist offer, is one of the key prerequisites for strengthening domestic agriculture.

The representative of the Ministry of Agriculture, Forestry and Water Management, Mirsad Spahić, informed the members of the Committee about the activities in the preparation of two important legal solutions that should improve the business environment in the agricultural sector. He pointed out that the preparation of the Law on the Prohibition of Unfair Trade Practices in the Supply Chain of Agricultural and Food Products is in the final stage, which will further protect the position of domestic producers, improve contractual relations and strengthen their negotiating position in the market.

He also announced the drafting of the Law on State Aid in Agriculture, which will define the future model of support for domestic producers after Montenegro's accession to the European Union and harmonisation with the EU's Common Agricultural Policy. As he pointed out, the aim is to identify measures that the state will be able to maintain as support for domestic producers after joining the EU, especially in situations where interventions are needed due to market disruptions or natural disasters. He stressed that representatives of the Chamber of Commerce will be involved in the drafting of both legal solutions.

Speaking about European integration, Spahić pointed to the significant changes expected by the domestic agri-food sector from July 1, 2027, when the import of animal products will be allowed only from facilities approved in accordance with European Union standards.

"This change represents an opportunity for domestic producers to improve production and take a more significant place in the domestic market, and it is already necessary to plan production and prepare for business conditions in the single European market," he said.

Representatives of the Paying Agency, Danka Božović and Edita Mahmutović, presented the results of the implementation of the IPARD III program so far, emphasizing that the interest of agricultural producers and processors in the available measures continues to grow despite the demanding procedures. They emphasized that projects from Measure 3, intended for investments in the processing of agricultural products, as well as Measure 7, are currently being successfully implemented., which supports the development of rural tourism and processing on agricultural farms.

They pointed out that a significant number of projects and millions of euros worth of grant support have been contracted within these measures, while new public calls for proposals for rural tourism and on-farm processing are expected by the end of the year. They stated that the interest of beneficiaries confirms that producers recognize the importance of European funds for modernizing production, improving competitiveness and increasing the added value of domestic products.

They also informed the members of the Committee about the activities that the Agency is carrying out as part of preparations for full accreditation and the establishment of the systems necessary for the implementation of the future Common Agricultural Policy of the European Union, emphasizing that the development of the IACS system is one of the key steps in that process. They emphasized that Montenegro is successfully using funds from the IPARD III program, that there is no risk of their being returned due to non-use, and that the goal is to continue the high level of utilization of available European funds in the coming period.

Finally, the Rector's Advisor for Financial and Economic Affairs at the University of Montenegro, Marina Banović, presented the UCG program "Scholarships for the Best. Jobs with the Best", which provides companies with the opportunity to provide future professionals through scholarships for students, while developing long-term cooperation between the economy and the academic community.

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