GRANTEE SPOTLIGHT INTERVIEW: SUZANA DIMITRIEVSKA, PRESIDENT OF THE MACEDONIAN ASSOCIATION OF AGRICULTURAL COOPERATIVES
The Macedonian Association of Agricultural Cooperatives (MAAC) was established in 2012 as a national umbrella organization for the agricultural cooperatives in North Macedonia. As such, MAAC is an organization that consolidates the work of agricultural cooperatives and their members in order to achieve their individual and mutual rights and interests. To get started, could you please tell us more about the origins of MAAC and why it was established?
After the dissolution of the old cooperative system in our country, there was a period when no one talked about cooperatives at all. The donors who have donated in our country have always prioritized the joint action of the farmers, which is why the cooperative has been supported on several occasions with large funds by foreign donors.
In 2006, with the support of the Swedish project for the support of agricultural associations SFARM2, the first cooperatives were formed and they are members of MAAZ. From the beginning of their work the first cooperatives incorporated in their work democratic principles which differ from the old centrally managed cooperatives. When later, with the support of another Dutch project, more cooperatives were formed, then the need for the formation of an umbrella organization was clear, and in 2012 MAAZ was formed. At that crucial moment, the need to form an association that will advance the work of cooperatives, lobby and represent them before the institutions in the system and develop services for member cooperatives was realized.
For more than 10 years, MAAC has been implementing project activities supported by various development partners working in North Macedonia aimed at improving the legal framework, and promoting and supporting the work of agricultural cooperatives. What are some of the MAAC milestones since its founding?
The key moments in the work of MAZZ during these 10 years that made changes are:
- The passing of the law on Agricultural Cooperatives when the existing cooperatives were re-registered and the new law was adopted. Members representing agricultural cooperatives were involved in the drafting of the law on agricultural cooperatives. With the law, measure 131 was passed for direct support of cooperatives and some of our members received support for mechanization and salary for managers.
- The European project for the Support of Agricultural Cooperatives also made changes. Through the project, 20 cooperatives received technical support of 800,000 euros for the development of their business ideas, and 10 new cooperatives were also formed, which are members of MAAZ.
- Macedonian Center for International Cooperation with its institutional support project when we got two employees and office space.
- Representatives of MAAZ are now members of various working groups in the Ministry of Agriculture, Economy and Forestry.
- And of course, the project USAID EDGE for the approved production of selected fruits and vegetables which will show its changes, and the new project from the European Union for Competitive Cooperatives.
As one of the USAID EDGE grantees, together with your partners from Vojvodina and South Serbia, you are implementing the Improved Production and Quality of Selected Fruits and Vegetables Project aiming to increase capacity and income for the cooperative members from North Macedonia and Serbia by improving their productivity and competitiveness and strengthening market linkages for their products. What kind of activities are being implemented in order to achieve the desired outcome?
The Macedonian Association of Agricultural Cooperatives together with the Union of Vojvodina and South Serbia had an exceptional opportunity through several activities to improve the quality of apples and peppers in their countries. First, with the support of the project, they introduced the Global Gab standard, which is the basis for exporting to the European market. Through two joint trips, they had the opportunity to see excellent experiences in apple production in Italy and pepper production in Hungary. They got to know each other and had the opportunity to exchange experiences on how they produce and where they stand in relation to European countries. At the moment, we are working on two manuals for apple and pepper and another very important activity is coming up, which is the official meeting where we will discuss how we will continue together on our way to the European market.
Recently, representatives of 12 agricultural cooperatives — pepper and apple producers, members of the Macedonian Association of Agricultural Cooperatives and the Cooperative Unions of Vojvodina and South Serbia had the opportunity to visit some of the biggest agricultural cooperatives for pepper and apple production in Europe, such as Assomela in Italy, and Délalföldi in Hungary. What have they learned from these visits, and what should the agricultural cooperatives in the Western Balkan countries pay the most attention to?
The member cooperatives visited major apple and pepper producers and there was much to learn. Standardized production unites all farmers, even the smallest ones, the association goes both horizontally and vertically. The appearance before the market is common, they have formed a special sales department, the packaging is digitized up to 80%, the cooperation with scientific institutes is at the highest level, we are constantly working on the development of new varieties that will conquer the market. They boast organic production and minimal use of preservatives. The production of apples and peppers has been reduced and incorporated as an important part of the state interest and all state resources are used (such as apple storage caves in Italy). The marketing is amazing and the stories woven through the apples evoke incredible emotions that this product is the right one for you. A large part of the employees who work in the companies themselves also have their own small apple orchards and this shows how much confidence they have in what they do.
Backed by the USAID EDGE project, a Project Advisory Board (PAB) was established with representatives from all agricultural cooperatives from North Macedonia and Serbia to monitor the project implementation process, but also perform policy analysis, joint lobbying and advocacy. Can you underline some of the major results from their work? How has the PAB contributed to improving the functionality and competitiveness of the agricultural cooperatives?
As for the Project Advisory Board, I, as one of the representatives, believe that we are at the beginning, we still need to work on policies for joint performance and preparation of a joint strategy and performance towards certain markets. What we have seen in highly developed countries can only be achieved together with a joint plan for entering the market and joint investments. Only in this way can we present our small productions, involve the scientific institutes and through joint marketing show the unique taste of the Balkan products and use the available resources and knowledge and bridge this period of underdevelopment
Agricultural production in the Western Balkan countries is still characterized by small and scattered production plots, below-than-optimal productivity and significant variations in product varieties. This current situation impedes further growth of vegetable and fruit production and international competitiveness of the sector. Based on your expertise, what kind of strategies and interventions can improve the competitiveness of the agricultural sector in the countries of the Western Balkans? And, what would be the most prominent agricultural trends to look out for in 2023?
As for the future, European markets demand fresh production and first-class, standardized production, and individual countries also have specific additional standards that exporters need to meet. Specifically, the organic standard is desired and good environmental practices and protection is important. Keeping the products fresh is challenging and requires large investments and using technology is important to preserve fresh quality products. We shouldn’t see each other as competitors here in the Balkans, but we need to prepare a strategic joint approach and communication with the European markets. For this reason, it is better to have joint investments and not to compete directly with each other. Our key competitive advantage is the superior taste of our products, and still in many places, traditional way of production that can be matched with digital technology and marketing to better promote the products. Selling our traditional varieties of apples and peppers with organic standards to the European market is our big export opportunity. However, our main impediments are the climate change, the high costs of agricultural production, the old age of farmers and the emigration of young people to European countries.
