Impact of Covid-19 on agriculture sector – the case of Albania

Drini Imami ¹, Orjon Xhoxhi ¹, Edvin Zhllima ¹*, Engjell Skreli ¹

¹Faculty of Economics and Agribusiness, Agriculture University of Tirana, Albania

Abstract
In addition to the major health global crisis that it has caused, Covid-19 pandemic has had serious consequences in every economy regardless of their income level. The restrictive measures generated large disruptions, which in turn resulted in a decline in employment, decrease of demand for goods and services, shortages in supply, reduction in trade volumes, and overall GDP contraction. Covid-19 also affected the Albanian agriculture sector. As a result of Covid-19 situation, exports of seasonal agricultural products have been hampered, thus putting pressure on farmers that grow crops in greenhouses, causing total sales drop, at a time when the intensity of production is appreciably higher than the previous years.  Limited mobility and restrictions in the access of markets, especially in the beginning of pandemic in March, made farmers reduce the prices of fruits and vegetables at the lowest levels in history, while a considerable amount of them even rot in greenhouses or cultivated fields. Farmers have experienced lack of labor force in processes like harvesting and planting in greenhouses production as well as in different services for the medicinal plants. There is limited in-depth understanding on the Covid-19 impact on the agriculture sector. This paper tends to cast light in this direction and provide a better understanding of Covid-19 impact on the agriculture sector by focusing on Albanian export-oriented value chains.

Keywords: Albania, agriculture, Covid-19, exports, market disruptions
JEL Codes: N50