BRIEF OVERVIEW OF THE WORLD PRODUCTION OF MEDICINAL PLANTS 2015 -2021
ALBANIA
POSITION IN GLOBAL EXPORT AND THEIR DESTINATION
According to ITC, Albania is part of the group of 15 leading BMA exporters in the world. For 2021, it ranks 14th in the world with a specific weight in the world totaling 1.4%
Based on ITC statistics as well as comparisons with data on the world's largest producers and importers of medicinal plants, including Albania, we can draw some preliminary conclusions:
Export in value and weight in % of total world export
Albania, with a quantity of 13,727 tons and a value of 54,086 million dollars for 2021, ranks 14th in the world with a specific weight of 1.4% in total. While for the years 2019 - 2020 we have the respective values of USD 21.1 million and USD 39.27 million
For 2021, the world's largest exporter of medicinal plants was China, with a total quantity of 130 514 tons and an export value of 949.9 million dollars, accounting for a specific share in the world of 24.6%, while in second place followed. from India with a quantity of 116,423 tons and a value of 414.6 million dollars, and with a specific weight of 10.7%. Next come Germany, USA, Egypt, Canada, Spain, Poland, South Korea, Mexico, France, Morocco, Hong Kong, and then Albania in 14th place, leaving many countries behind the Balkan countries. in Europe and Turkey.
The main destination of exports is the USA by value. Germany, France, while from the quantity Germany, France and the USA which comprise about 80% of the total exports.
Today, Albania has become an important world actor for the production and export of several medicinal and aromatic plants, especially for sage, thymus, oregano and thyme.
💐Albania: A Key Global Player in Medicinal and Aromatic Plants
Today, Albania has emerged as a significant global contributor to the production and export of medicinal and aromatic plants, particularly sage, thyme, oregano, and chamomile. These high-quality products have gained recognition in international markets, positioning Albania as a trusted supplier in this industry.
These figures highlight Albania’s growing importance in global trade, where its medicinal and aromatic plants have become indispensable for some countries. For example, sage constitutes 65-70% of all sage imported into the USA, demonstrating the trust and reliance on Albanian agriculture for quality and consistency.y.
Increase in percentage of exports
The increase in the percentage of exports for some countries has been different - for the years 2017 - 2021
About 160 types of medicinal plants are exported from Albania, from less than 50 that were exported in the first years of the country's free market economy.For the years 2017 - 2021, Albania has a significant increase in the value of exports; 323%. While in this period, Bulgaria had an increase of 24%, Poland 57%, France 9% and China - 2.5%.
This achievement shows that there is significant progress in this direction by all market actors, such as business and associations, but also public and non-public structures, for this important field of our export.
Despite the progress made over the years, there is still more to be done in many directions, but the main one remains the addition of value to aromatic - medicinal plants in export. This is one of the external challenges that come from the increase in international competition. from other Balkan and Mediterranean countries.
What are the sectors export potential according to target countries or markets?
Albanian exports of medicinal plants - The markets with the greatest potential for Albanian exports of live plants and mushrooms are Italy, Montenegro and Serbia. Serbia shows the biggest absolute difference between potential and actual exports in value, leaving room to realize additional exports in this sector..
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Albania - average map export price
The average export price of Albanian MAPs has increased over the years, but generally remains low. This fact is clearly illustrated by the dollar per unit indicator. To illustrate, let's make some comparisons with the technical indicators between the countries we compete with, so we notice that while we have the average export price of MAP, about 4090 USD/ton for exports in the amount of 13,727 tons, or worth 54 million dollars , France has an average price of 9614 USD/ton, about 3 times higher, So, France with a smaller amount of export in quantity, 7,239 tons, so it has a 13% higher export value (69,591 mln USD).
It is known that a large part of the Albanian exports of aromatic medicinal plants goes to Germany, the USA, France and from there they are re-exported processed, that is, with added value multiple times the imported value. This shows that exports of medicinal plants do not increase the value of the export after collection, so they have no added value because they are not processed enough. It is important to mention how in all Balkan countries we continue to be mainly exporters of raw materials and large importers of processed products, which highlights the declining role of food processing industries.
Key findings - Most of our exports, about 80%, are exported to the US, Germany and France, where they are further processed and then re-exported at a multiple of the imported value. This is related to the lack of further processing of the raw material that is sold to many other countries. They then re-export it at a multiple of the value purchased from us. For example, France has almost double our dollar figure per unit/ton!?.
External challenges also come from increased international competition from other Balkan and Mediterranean countries. Currently, the two main issues to be addressed are:
• Improving quality, adopting standards and quality controls throughout the value chain. Currently, the average export price of Albanian MAPs is generally lower than that of the main competitors, despite the high organolectic qualities of wild Albanian MAPs.
Such a situation is mainly due to inadequate post-harvest practices, leading to inadequate quality standards.The need for a new and more efficient governance of the sector, to prevent its decline.
Possibilities and prospects
• Stable and growing demand for wild and cultivated MPA and essential oils is observed. From all the latest market reviews demand for MAPs and essential oils derived from MAPs is increasing and the most valuable market segments (those related to wild MAPs) also offer particularly good prospects. The addition and displacement of processing plants for the processing of MAPs is presenting new challenges, but also offers more opportunities to increase the value in export, provided that the new trade flows that can be generated are properly directed.
A typical example is given by our cooperation triangle in sage trade between Albania, Turkey and the USA. For example, Important sage stems are now that it is exported from Albania to Turkey, processed there (eg better graded, pasteurized, etc.) and then re-exported to the US as a Turkish product.
This challenge for prominent producers in the US market of sage that can be turned into an opportunity through appropriate trade agreements.
Conclusion
Currently, around 80% of our medicinal and aromatic plant exports go mainly to the USA, Germany, and France, where they are further processed and then re-exported at much higher values compared to their initial import price. This happens because the raw materials exported from Albania are sold at a relatively low price, leaving room for greater profits in the destination countries.
For example, France achieves a dollar-per-unit/ton indicator nearly twice as high as Albania's, thanks to further processing and value addition in their country. Despite improvements in recent years, our exports still do not sufficiently increase the added value post-collection.
Improving quality, adopting standards, and implementing quality controls throughout the value chain should be a priority. Currently, the average export price of Albanian MAPs is lower than that of key competitors, despite the high organoleptic qualities of wild Albanian plants.
A decisive step towards this goal is increasing support for farmers, including the installation of drying machinery for medicinal plants, which is essential for preserving quality and adding value. This situation primarily reflects inappropriate post-harvest practices, leading to insufficient quality standards. To improve this condition, it is essential to invest in enhancing processing methods and post-harvest treatment, ensuring high-quality products for international markets. Due to the importance of MAPs for the economy and employment, experts recommend supporting MAP exporters in boosting production and improving access to high-value markets. To achieve this objective, the following measures should be taken and implemented:
Consultant | Professor
1ySome interesting statistics. Thanks for sharing.