For the past 2 years, your Ministry has been endeavouring to set new agricultural standards according to the EU requirements. In what has consisted that reorganization?
The Macedonian agro-complex is the most life-giving sector of the Macedonian economy. This was the case during the period of separation from the Yugoslav Federation when this was the only sector where the physical part of the production in all areas kept the level before 1990. Even then, more than 80% of the soil was in the hands of the individual producers. So, the common production and the development of agriculture is a process that started decades ago. When it comes to production in this area, I can say that we are in our region, in terms of quality, ecological production, as competitive as the rest of the world. Our main concern in the reform process is the adoption of a marketing strategy. That means that we have to prove what already exists really exists, but it has to be proved with documents. In that direction, all our efforts are focused on forming centres for control of the primary production and a process of harmonisation of the Macedonian legislation with the laws of the EU, we also work on the stock-exchange mediation between the demand and offer. We are working on quality forms of presentation of our products on fairs around the world. We also work in the area of good wrapping according to the world standards. So, basically we are working on the legislation according to the EU and new marketing strategies focused on the presentation and distribution of the primary products.
Just to be more precise regarding the responsibilities of your Ministry, we heard that the responsibility of the Department of Engineering was shared between the Ministry of Agriculture and the one for Environment. Can you enlighten us on your role in the engineering sector?
Our touching points with the Ministry of Engineering are the waters in the Republic of Macedonia, and with the Ministry of Environment basically everything because the touching points are waters, forestry and soil. We have joint issues when it comes to water with all this ministries. We have prepared the overall national strategy on the water, including all waters, above ground, underground, lakes, also the paths from the factories to the purification station, to the river, to the lake etc, while the area that is covered by engineering includes construction, with our approval, of water pipelines from the source to wherever it goes. So we are working on all the strategic areas of the water resources, while the tactics of the utilisation of water, whether it is going to be drinking water or for watering areas, or for production of electricity is something that we work on together, because when we are talking about the production of electricity out of water, the Ministry of Economy has some authority.
On the European level, do you have to comply with new regulation, quality controls such as veterinary control, cattle marking and fitosanitary control?
This is a part of the projects that have been previously started with the EU, through the PHARE projects, and are now continuing with the new CARTZ programme. Everything that you have mentioned is a project that started through the PHARE programme in 1995 and now they are in the final phase. For example, the cattle's marking is in its final phase; also the border control, the sanitary and the veterinary control are also in their final phase. 90% of all these border controls are already functioning; there is only a problem towards Kosovo, having in mind the situation there.
What is the strategy implemented to enhance exports of domestic production?
The Macedonian Academy of Sciences and Arts has already prepared the strategy on the domestic product and it covers the period until 2020. The chapter on agriculture has been prepared very well. We are also working on the development of agriculture until 2005 with the World Bank. What are the basic points of this strategy? First of all, the waters. Macedonia is settled in a dry area which lacks water, and a very small portion, about 15% of the ground is watered, and this is the priority task which means the providing of top quality systems and reconstruction of the existing ones. Also, we are working on the enhancement of the services when it comes to the individual production, with the final aim to form associations, which would use the technological acquirements of contemporary machines. And the third point is to work on the systems of elimination that existed regarding Macedonia from the EU, and are now withdrawn, with the Agreement for Stabilisation and Association that was signed, even though there are certain aspects within this agreement that are not in our favor, for example wine.
What are today your export markets?
Answer: Our biggest partner within the EU is Germany, and I think this will be the case in the future as well, because in a way we are most complementary with the German products and I think that the demand will grow, little less with the Scandinavian countries and Switzerland and Austria. These are basically the EU countries where we are present, while regarding the candidates for admission in the EU, we have excellent relations with Slovenia, Poland, Czech Republic, Bulgaria, and there we have a significant export of our agricultural products. The most present exporting products are wine, stone fruits, sour cherries, apricots, different kinds of blackberries, the early-gardening products, apples, all different kinds of processed products, dry products and canned products. Certainly, tobacco is a strategy in this area as well, but there are always problems. Basically, this is the strategy for the expansion of our markets. These are the products, which we believe, could be competitive on world markets. | Do you expect significant results from the free trade agreement signed with Ukraine?
With the Ukraine and in general with all ex-Soviet Union countries we have good relations in terms of exchange of agricultural products. Simply, everything that is produced here is not produced there, and there are possibilities for presentation in those countries. For example, with the Ukraine, exporting is easy because we do not have different productions and we have been buying from them in the past as well, wheat, corn, sunflower and we have always been exporting apples, early vegetables, tobacco, so basically these are already established ways of exchange. Free trade agreements are a part of the direction towards the World Trade Organisation, but we have a long history with Ukraine.
As former Manager of the Privatization Agency, What is your evaluation of the privatization process of the agro-complex ?
The privatisation of the agro industry represents only a small part. There were around 400 enterprises that cover around 15% of the soil of the Republic of Macedonia. These were the former agriculture associations and agriculture combinates, so in our country this process is not so significant in agriculture production. The privatisation is important for attracting investments, and not in the part of increasing production, because a large part of the production is done in the private sector which already exists, that is why the legislation, putting the legal procedures, and adapting everything to the EU, while in the part of the privatisation of the big agricultural combinates there is progress, for example in the tobacco industry there are American and Greek companies, for example Diamond, Greek companies, also in Bitola, Gallagher, Phillip Morris were interested in buying, Messer from Germany, Holland is interested in production of non-virus material for flowers, and this is the aim of the whole privatisation process, everything is directed towards finding the agricultural combinate a strategic partner and investor, which would bring new ways of working, new ways of behaviour, new markets, new ways of thinking.
Are you looking towards specific countries to find those investors?
We do not have specific targets, Macedonia is an open country. Certainly, we have neighbours, we are a small country in transition, and investors should come from all countries, from Slovenia, Germany, Greece, Turkey, Bulgaria, Yugoslavia, maybe the Ukraine, we'll see. However, the perspective of Macedonia should be open towards everyone. There is a wrong picture in Macedonia. It is a small country and big countries do not show a great interest in it. For example, Phillip Morris would show interest in Macedonia only if it buys Bulgartabak and the tobacco industry in Yugoslavia, and this is the way things develop, so we are quite aware of this and that is why we are open. These are multinational companies, there aren't any borders for them and we respect this. Our task is to adjust to the legislation, and to join the way of globalisation.
What still has to be done to comply with the European legislation?
We are already in an advanced phase. Many acts are already identical with the ones of the EU, the essential ones, the Act for Soil, for Waters, for Forestry.
Basically, what are the main incentives brought in by your Ministry to attract foreign investors within your sector?
First of all, we are wonderful people, it is difficult to find better ones. I'm joking, but it is significant. We are hospitable, we have a highly developed work force, especially in the agro-complex, we have a cultivated work force, cheap one, with long tradition, we have a lot of sun, which means a lot of comparative advantages for many crops. We are close to sea- ports, we have good transport communications with the Middle East, with Central Europe, Eastern Europe. So, these are the advantages that are present.
You have been Minister since the new Government took power in '98. Can you tell us about your previous experiences?
My whole professional background is connected with the agricultural complex. First of all, I was born in an area where the agriculture is an essential profession, Tikves, where 90% of the area is based on the growing of vine, i.e. production of grapes, wine, brandy, juices, so from the early age I have been involved in this area. I worked in a Bank for many years, in the part of agriculture development, crediting the agro-complex, collecting funds for the development of the agriculture, credit lines, big projects and it was logical that I should continue working as a manager of a big agriculture combinate here, which dealt with milk processing and all processing products. I worked there for five years, then two years as manager of an organisation which dealt with agriculture products and due to my cooperation with many people in that organisation, the idea for me to be proposed for the Mayor of the county came up, I was elected by the people, Kisela Voda which has around 150,000 people. Of course, I was mostly interested in agriculture. Then, our party won the elections and due to my experience in all those projects, the credit lines, foreign investments, it was logical that I should become the manager of the Agency for privatisation and afterwards I became Minister. Afterwards, there is nowhere else to go, but to go back, in Kavadarci. |
V.I.P. INTERVIEWS 
