Monthly

Macedonian Business
Established 2001

No. 160 Vol. XVI, 2016

INVEST IN MACEDONIA
NEW BUSINESS HEAVEN
IN EUROPE

ROAD INFRASTRUCTURE

he overall road network of the country

totals 13,278 km of roads, with
continuous investment in roads in accordance
with the National Road Transport Strategy,
prepared by the Ministry of Transport and
Communications with assistance from the EU.
New projects and network maintenance are
carried out according to the Public Investment
Program annual updates. The backbone of the
countrys road network consists of the two PanEuropean corridors VIII and X.
The Railway infrastructure in the Republic
of Macedonia has been put in place since
1873, when the first Railway Track from
Skopje to Thessaloniki in Greece has been
constructed. Today the railways network is
about 900 km in single track lines and normal
gauge. Macedonian railway network system
is connected north-south with the railway
network systems of Serbia and Greece. The
total length of the railway infrastructure in
Corridor 8 (east-west) is about 306 km on the
territory of the Republic of Macedonia and 154
km (or 50%) are constructed and operational.
Therefore, about 89 km or 29% of the total
length are remaining to be constructed on the
link with Bulgaria.

Page 2 >

Published monthly by MIC

With support of the
Macedonian Ministry of Foreign Affairs

GERMAN AKOMPLAST TO BUILD

A PLANT IN PRILEP

he cornerstone for the construction of the plant of German Company

Akomplast was laid in the Technological Industrial Development Zone
Alinci. It is an investment worth three million euro and will create 150 new jobs.
The facility, which should be completed in the summer, will manufacture modern
car parts for export on the European market and for major automotive brands
such as BMW, Daimler Audi, Volkswagen Mercedes, Bentley, and
Jaguar.
Akomplast representative and manager of their company formed in
Macedonia Injection Holding Prilep Ines Andre stressed that the decision
to invest in Prilep was adopted because they were offered the best conditions,
support from the municipality, well-educated staff and Governments openness to
cooperation.
Minister for Attracting Foreign Investments Bill Pavleski stressed in his
address that Macedonia received another member in the family of foreign
companies in the automotive sector. Macedonia was chosen as new business
destination, from several countries in the region, given the favorable business
climate, quality workforce and excellent infrastructure.
-With this investment, Macedonia acquired another trusted and reliable
procurer of high-quality products that are used in the automotive industry and
will enable us to attract company carmaker in order to complete the whole
process of production, which is our final goal - stressed Pavleski.

Macedonian Business MontHly

INSIDE

MacedonianInformationCentre

Macedonian Information Centre

page 5 F ORBES

RANKS MACEDONIA
39TH FOR DOING BUSINESS

Director
Dragan Antonov

page 8 X -TRADE,

Address
Naum Naumovski Borce 73
1000 Skopje
Republic of Macedonia

page 11 O NLY

Phone/Fax
+389 2 311-78-76
+389 2 311-78-34

page 14 H OTEL

NEW FOREIGN
INVESTMENT TO ENTER SKOPJE
0.2 PERCENT UNSOLVED
CADASTRE CASES
KEEPING TO FLOURISH
THIS AND NEXT YEAR

www.micnews.com.mk
contact@micnews.com.mk
mic@micnews.com.mk

page 16 S OLVING THE

PROBLEM WITH THE

LENGTH OF SERVICE FOR FARMERS

No. 160, Vol. XVI, January 2016

Macedonian Business Monthly
Founded in 2001
Editor

Sonja Kiridzievska
Translator

Ema Trenevska
Contributor

Sonja Efremova
Published monthly in the

Republic of Macedonia
2001-2016 MIC, All rights reserved
No parts of this publication may be
reproduced in any form without
permission form the Macedonian
Information Centre. The content
published in the Macedonian Business
Monthly do not necessarily represent
the views of the publisher. The
publisher is not liable for errors.

ROAD INFRASTRUCTURE

Continued from page 1

he overall road network of the country totals 13,278 km of roads, with

continuous investment in roads in accordance with the National Road
Transport Strategy, prepared by the Ministry of Transport and Communications
with assistance from the EU. New projects and network maintenance are carried
out according to the Public Investment Program annual updates. The backbone
of the countrys road network consists of the two Pan-European corridors VIII
and X.
The Railway infrastructure in the Republic of Macedonia has been put in
place since 1873, when the first Railway Track from Skopje to Thessaloniki in
Greece has been constructed. Today the railways network is about 900 km in
single track lines and normal gauge. Macedonian railway network system is
connected north-south with the railway network systems of Serbia and Greece.
The total length of the railway infrastructure in Corridor 8 (east-west) is about
306 km on the territory of the Republic of Macedonia and 154 km (or 50%) are
constructed and operational. Therefore, about 89 km or 29% of the total length
are remaining to be constructed on the link with Bulgaria. About 63 km or
21% of the total length on the link with Albania remain to be constructed. The
railway transport is managed by the public owned Macedonian Railways and at
present, the company is the only provider of railway services in the country.
There are two international airports in Skopje and Ohrid.There are regular
direct connections to several larger European transport centers.Turkish TAV
is the new operator and manager of the Macedonian airport system since
2008, after receiving the right to a 20-year concession from the Macedonian
government. Under the concession agreement, TAV is to modernize the
international airports Alexander the Great in Skopje and St. Paul in Ohrid, and
to build a new cargo airport in Shtip.

Macedonian Business MontHly

ritish Company Endava employed

over 100 full time IT professionals in
their representation office in Skopje. This
Company anticipates that the number
of employees will reach 400 in the next
three to four years.
-We are excited to be part of Endavas
successful story of exploring innovations
especially on the competitive IT market.
We work with well-known figures in full
expansion of industries and we are certain

that our staff is the driving force of developing personal careers. Also, we change
the traditional approach to new technologies, said Andrew Brown, manager of the
delivery center in Skopje.
According to British Ambassador
Charles Garrett, this British Company is
very successful in Macedonia.
-I hope that Endava will continue
to contribute to the development of the

IT sector in Macedonia and in the wider

economy of Macedonia, stressed Garrett.
Skopje Office was opened in 2014 and
expanded the same year in November.
Endava is a private company for IT
services with more than 2.500 employees
and offices in New York, Atlanta, New
Jersey, London and Frankfurt and has six
delivery centers in Romania, Moldova,
Macedonia and Serbia.

REASONS TO INVEST IN MACEDONIA

IT AND FREE HEALTHCARE ZONES Government adopted
laws that anticipate creation of IT zones within the technological
industrial development zones, separated with a fence, and regulated with special projects. Certain steps are being undertaken and
projects are being prepared for developing the IT zones given the
increased interest.
Export of Textile Products The garment industry in
Macedonia exports mainly to EU countries. 93 percent of the production
is organized by the CM or CMT (Cut, Make& Trim) system for foreign
markets. Full production and own brand production is partly exported
and the rest is placed in the domestic market.
THE PROJECT FOR land purchase As of 2009, is possible
for the land purchase to be realized under favorable conditions with
a discount of 30% if the companies pay it in cash at affordable price.
So far, more than 2,500 companies have used the opportunity for land
purchase under the Government Project launched in 2009, and such
support and assistance to the business community will continue.
AGRICULTURAL LAND INVESTMENT OPPORTUNITY The
Ministry of Agriculture, Forestry and Water Economy as an authorized
body has intensively been distributing agricultural land of good
quality which is in state ownership, that is granted under lease (for
use during the period of several years) to the interested investors,
including foreign entities with established branch offices in the
Republic of Macedonia.
Textile Industry With a long, rich tradition in clothing and
textiles, this sector is the second largest export industry in Macedonia.
The competitive export advantages include short delivery periods,
flexibility of delivery size together with exceptional value for money.
In addition to garments, there is manufacturing potential for cotton
thread and fabric, wool yarn, fabric and knitted fabric.
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT The
Constitution of the Republic of Macedonia guarantees an investors
right to property. No person may be deprived of his/her property or
the rights deriving from it, unless the use of that property affects the
general welfare of the public.
Why Invest in Agribusiness in Macedonia? Challenges Opportunities the agriculture production and agribusiness
sector are the most important economic sectors of Macedonia.
Almost 435.500 people, out of a population of 2.1 million, make
whole or part of their income from agriculture activities. The great
natural preconditions and an existing tradition enriched with newly
developed skills create a variety of opportunities in agriculture, from
high mountain pastures of over 2000m high, to the rich water valleys
with a Mediterranean climate.
CONSTRUCTION COSTS Numerous Macedonian construction
companies can build factories quickly to international standards and at
the most competitive prices in Europe. The average cost of constructing a factory building shell is between 170/m2 210/m2. The sale
price of state-owned construction land for industrial and production
facilities varies depending on the location, from 5/m2 to 40/m2.

Macedonia a business supportive environment Given the need for speed in todays global marketplace,
Macedonia is fast becoming a major European service and distribution
hub. You can set up a company here in just four hours! The World
Bank Ease of doing Business 2014 report shows that Macedonia is
a regional heavyweight and 25th country in the World. Macedonia
has also had a positive Forbes review coming 36th in a ranking of
Best Countries for Business.
EXPORT PROMOTION STRATEGY In the process of preparation
for the exports, the companies need to conduct a research that will
help them choose a market which will contribute to the maximization
of the benefits and minimization of the risks. The same research will
also help the managers decide not only on the markets to enter but
also on the modes of entry.
EXCELLENT INFRASTRUCTURE Macedonia is at the crossroads
of South Eastern Europe, which makes it an ideal transit and distribution center for products for European markets. The developed road
and railway infrastructure, in combination with the small area of the
country enables access to every inhabited place in Macedonia in less
than 3 hours. The Railway infrastructure in the Republic of Macedonia
has been put in place since 1873, when the first Railway Track from
Skopje to Thessaloniki in Greece has been constructed. Macedonian
railway network system is connected north-south with the railway
network systems of Serbia and Greece.
LABOR LEGISLATION The recently enacted new Labor Law,
prepared in accordance with the EU standards, provides increased
flexibility of the labor market by offering and promoting flexible
and different employment contracts and flexibility of working time.
Also, reforms in this sphere have introduced training programs,
support for entrepreneurs, as well as improvement of the overall business climate. The average gross monthly salary in 2013is
502.This amount includes the net salary, personal income tax and
social contributions for pension and disability insurance, health
insurance and employment insurance. The minimum salary for
each professional branch is defined by Collective agreements.
free healTH zones Health tourism, attracting foreign capital
to introduce new health methods and procedures, transfer of new
technology, increased competitiveness, employment and quality of
the higher education offer in the field of medicine are part of the
benefits expected from the establishment of free health zones. The
whole concept is designed to establish a health zone over a greater
territory which is likely to be in Skopje on 1520 acres for hospitals
founded and built by foreign companies.
INCREASED SUBSIDIES FOR TOURISTS FROM SERBIA, BULGARIA AND BOSNIA AND HERZEGOVINA The Government
decided to increase the amount of subsidies for attracting tourists
from Bosnia and Herzegovina, Serbia, and Bulgaria from 25 to 35
euro per tourist. Subsidies for tourists from 6 other states i.e. the
United States, England, Germany, Kazakhstan, Azerbaijan and Qatar
are announced for 2015.

the software industry has emerged as one of the

most dynamic sectors In recent years, the software industry
has emerged as one of the most dynamic sectors of the Macedonian
economy. With a growth rate of 7.7% in 2009, the Macedonian software
industry outran the development pace of the overall economy and
became an engine for growth, innovation and competitiveness.
Like several other transformation countries in South East Europe,
Macedonia has discovered the strategic importance of the software
industry and its enormous potential for exports.
modern digital telecommunications network The
Macedonian Information Technology market has marked another
significant growth in 2009 of 7.7%, reaching $164.5 million. Over
the five-year forecast period, the countrys IT market is expected
to expand at a compound annual growth rate (CAGR) of 5.2%, and
reach $212 million in 2014. Hardware is the largest and most dynamic
segment of the Macedonian IT market, with a striking yearly growth
of 84.7%, taking up nearly 62% of the total IT market.
FREE MARKET ACCESS Duty-free access to a market of over
650 million customers through three multilateral (SAA, EFTA and
CEFTA) and two bilateral (Turkey and Ukraine) Free Trade Agreements.
EUR 500,000 IN STATE AID FOR INVESTORS IN INDUSTRIAL
ZONES Up to 500.000 can be granted as incentive towards
building costs depending on the value of the investment and the
number of employees. Land in a TIDZ in Macedonia is available under
long-term lease for a period of up to 99 years.
400,000 EURO INVESTMENT THE ROAD TO OBTAINING MACEDONIAN CITIZENSHIP Foreign nationals who are residents of the
EU and OECD countries and have purchased real-estate (house or flat)
in Macedonia in an amount of over 40,000 euro will get the chance to
be immediately granted one-year stay in the Republic of Macedonia.
LOW TAXES Flat corporate and personal income tax rates at
10%; 0% tax on retained earnings.
LOW OPERATIONAL COSTS One of the most cost-competitive
locations in Europe.
EXCELLENT GEO-STRATEGIC POSITION Goods delivered within
a day to Central and Eastern Europe and Turkey, and maximum two
days to Western Europe.
FAST COMPANY REGISTRATION One-stop-shop system for
company registration within 4 hours.
EXCELLENT INFRASTRUCTURE Wireless national backbone
infrastructure, digital telecommunications system, extensive highway
network, two international airports with regular connections to main
European transportation centers.
RESPONSIVE EDUCATIONAL SYSTEM Universities willing to
collaborate with incoming investors in meeting the required skills.
EXCELLENT FOREIGN LANGUAGE SKILLS English widely
spoken, French and German embedded in the education system,
regional languages in wide use.
AVAILABLE SKILLED WORKFORCE A young (42% under the
age of 30) and educated workforce with a strong work ethic and
excellent industrial relations record.

investment climate

BRITISH COMPANY ENDAVA

EMPLOYED OVER 100 IT PROFESSIONALS

Macedonian Business MontHly

MACEDONIA WILL CONTINUE TO HAVE

STABLE BANK SECTOR IN 2016
BANKING

Foreign risks are gradually reducing and we surpassed the danger for entering the debt crisis, showed the National Bank at the end
of 2015, when it decided to cancel the safety measures, given the positive balance of payments, and cash flow to Greece

ast year was hard, unstable, and

uncertain and affected the bank sector. In addition, the political risks and
culmination of the Greek debt crisis
significantly reduced the anticipations for
bank credit and deposit growth. Banks
preferred citizens to companies for crediting. In the first 10 months, citizens loans
increased for 11 percent, while company
loans for 1.2 percent. Besides the slow
growth, deposits marked an increase of
4.4 percent in November. The National
Bank expects that 2016 will be a difficult
year, but the bank sector will remain
stable.
In 2015, the National Bank introduced
several extraordinary measures and conditions. At the beginning of the summer,
in the midst of the Greek debt crisis,
the National Bank introduced safety
measures in order to prevent increased
cash flow. By the end of August, banks
were liberated from compulsory deposit
reserves for natural persons with over one
year validity, in order to stimulate longterm savings. Banks found this measure
very satisfactory.
Contrary to the low scope of credits for
companies, consumption loans increased
reaching two-figure rate and at the same
time their payment was late so, banks
had to slowdown the pace. Therefore, the
National Bank of the Republic of Macedonia introduced restrictive measures,
not increasing the interest rates for consumption loans.

The interest rates of deposits and credits reached the lowest level in history. The
basic interest rate for last year was 3.25
percent, and banks dont expect it to increase this year.
Foreign risks are gradually reducing
and we surpassed the danger for entering the debt crisis, showed the National

Bank at the end of 2015, when it decided

to cancel the safety measures, given the
positive balance of payments, and cash
flow to Greece.
Still, this year the National Bank expects gradual inflation growth of one and
a half percent given the increased food,
energy and oil prices.

Structure of restructured corporate loans, by activity

in millions of denars

in percentage
22

17,500
20.3
19.0

14,000

18
10,500

16
14

7,000
10.6

3,500

ccording to the monthly report of

the Macedonian Stock Exchange for
December, the most traded shares are of
Komercijalna Banka (254 transactions),
Alkaloid (125) and Granit (100).
Most traded shares for this period are
the shares of Makedonijaturist, Fersped,

12
10.4
10.3

10.1

10
8

0
12.2014

3.2015

6.2015

Industry (left scale)

Construction and real estate activities (left scale)
Wholesale and retail trade (left scale)
Electricity, gas, steam and air-conditioning (left scale)
Other activities (left scale)
Share of restructured in total loans to industry (right scale)
Share of restructured in total loans to construction and real estate activities (right scale)
Share of restructured in total loans to companies (right scale)

Source: NBRMs Credit Registry, based on data submitted by banks.

THE MOST TRADED SHARES ON THE MACEDONIAN

STOCK EXCHANGE IN DECEMBER

20

Prilepska pivarnica, Makpetrol, Makedonski telekom, TTK Banka and Replek.

The highest average growth of share
price in December was marked by Tikves
winery with 36.84 percent increase.

Macedonian Business MontHly

2015 WAS THE BEST INVESTMENT YEAR

T

hirty-some investments announced

opening of over 17,000 work places.
That was the epilogue in the rat race of
investors in 2015. According to experts,
last year was the best investment year for
Macedonia. Most of these companies
already started operating and some of
them signed investment agreements and
are getting ready for starting with their
production.
Germanys ODW Elektrik started
operating in an existing facility while
is constructing a plant in the economic
zone in Ohrid.KSS works as brown-field
in Kicevo and their new plant will be finished this summer. Diatec, Technical Textiles and the second plant of Tehnohoze
started operating as well. Gentherm in

Prilep started employing staff for the new

plant that will be finished in March. US
Lear Company is constructing a plant in
the economic zone in Tetovo and started
with production in an existing facility in
Gostivar.
Marquardt in Veles, Antura and Amphenol in Kocani and Cap-Con in Skopje also started with their production.
Several other companies have already
signed agreements and will start operating this year.
US Delphi will invest in the economic
zone in Skopje, Johnson Controls signed
an agreement for constructing a second
plant in Strumica. German Company
Kostal is preparing to invest in the economic zone in Ohrid.

FORBES RANKS MACEDONIA

39TH FOR DOING BUSINESS
M

acedonia is ranked 39th on the

list of the best countries for doing business that the business magazine
Forbes published toward the end of last
year. According to that tanking, of the
countries of the region, Macedonia is
ahead of Serbia, Albania, Bulgaria, Croatia, Montenegro and Bosnia and Herzegovina.
Denmark ranks first. This country has
one of the highest tax packages in the
world in exchange for its broad services
in a largely market-based economy.
Forbes ranks 144 countries in the
world by 11 criteria including: right to
property, innovations, tax, technology,
corruption, freedom (personal, financial,
market), and protection and security of
investors.

Source:
http://www.forbes.com/places/macedonia/

German Company Akomplast in Prilep

will start the construction of their plant;
Italian Company Kondevo is constructing a plant in the economic zone in Stip,
while Italian Company Montante Group
is preparing to invest. Agreements for
investment realization have been signed
with the first two domestic companies,
High-tech and Te-Te Plast which plan
to employ a total of 500 people. This
positive trend will continue. It was announced that by the 15th of January several new investments will be presented,
one of them will be realized in Veles and
anticipates to employ 1000 people. It is
expected that this year, 35 new investments will be realized in Macedonia.

ECONOMY

According to experts, last year was the best investment year for Macedonia. Most of these companies already started
operating and some of them signed investment agreements and are getting ready for starting with their production

Macedonian Business MontHly

TEXTILE FIRMS MAKE GOOD START

extile firms are having a good start
this year. Toward the end of 2015,
they took foreign orders until the end
of April for the next summer season and
the making of the ordered products is
underway.
Aside from the traditional partners
from the Western European countries,
in recent months many companies from
Turkey, redirecting themselves toward
Macedonia and other closer markets due
to the blockade of the Russian market,
have taken a keen interest in cooperation.
According to the President of the
Customers Organizations and owner of
the textile firm Moda of Sveti Nikole,
Angel Dimitrov, in addition to being
interested in striking cooperation with
Macedonian partners, Turkish firms are
also interested in making investments in
the textile sector.
However, the problem is that they
are interested in opening companies for
production of large amounts of textile
for export, for which they need at least
600-700 employees, and they cannot
find that many workers in Macedonia. A
considerable number of textile workers

are already employed in the numerous

factories across the country. On the
other hand, the young are not at all
interested in getting employed with our
textile factories chiefly because of the low
wages, says Dimitrov.

He also explains that unlike from

before, recently European partners have
been placing increasingly more orders for
the so-called boutique goods. This means
production of two or three designs of
clothes in four colors and 10 sizes.

Value of Textile and Apparel Production & Average Salaries

in Textile Industry
600

500
450

500

400
350

400

300

300

250
200

200

150

Millions of dollars

Values in $

ECONOMY

According to the President of the Customers Organizations and owner of the textile firm Moda of Sveti Nikole, Angel Dimitrov, in addition to
being interested in striking cooperation with Macedonian partners, Turkish firms are also interested in making investments in the textile sector

100

100

50

0
1954

1959

1964

1969

1974

Average salaries
in textile industry

1979

1984

1989

1994

1999

2002

Value of Textile
and Apparel Production

NBRM: CREDITING OF ENTERPRISES INCREASED

At an annual basis, overall deposits in November increased by 6.5 percent

n increase in crediting of enterprises

was recorder on the market in November 2015. In the last report of the
National Bank of the Republic of Macedonia it was noted that the overall loans
in November increased for 7.9 percent,
surpassing the October projection for the
fourth quarter by 7.7 percent. Regarding
September, the total credits increased for
37.2 percent from the anticipated growth
for the fourth quarter.
According to NBRM, the crediting structure in November registered a
growth in crediting of enterprises compared to the significant decrease in the

previous month and continued increase

in household loans with moderately
weakened dynamics compared to the
previous month. November included the
projected crediting growth for the fourth
quarter, of nearly 40 percent, was realized. The realized annual growth of overall loans was a result of the increase in
denar loans, while foreign currency loans
registered a decrease at an annual basis.
In November, the participation of
dysfunctional loans moderately dropped
compared to the previous month, standing at 11.2 percent. According to the
published report, growth was also regis-

tered in deposits, as a result of the growth

of household deposits by 42 percent
mainly in foreign currencies. Deposits in
the corporative sector continue to grow
but have slightly slowed down compared
to the previous month.
At an annual basis, overall deposits in
November increased by 6.5 percent. The
report reads that there was a gradual economic growth in the third quarter in line
with the October projection. Construction was the leading sector and in terms
of demand, the growths structure showed
that domestic demand was the key driver
of economic growth.

Macedonian Business MontHly

LOW INVESTMENT CONTRIBUTION TO GDB

T

he contribution of direct investments to GDP is reduced. In the period July-September 2015, 169.8 million
euro were invested in Macedonia which
is 30 million more compared to the same
period last year, but its contribution to
GDP in the third quarter is several times
lower compared to the contribution registered in the second quarter. According to
economists, figures show that Macedonia
is in a worse position than Montenegro
and Serbia and is leveled with Kosovo.
The GDP contribution shows that it
is a matter of activities that dont influence the GDP and arent productive,
which left the country or reduced their
capacity, said Zoran Vitanov from the Association of Managers of Macedonia.
Government is satisfied with the improved conditions for starting a business
and with the facilitated conditions for
attracting foreign investments. In 2015,
thirty companies decided to invest in
Macedonia and in 2016 this number is
expected to increase.
Foreign investments are one of the pillars of Governments economic policy,
numerous road shows are being organized
and there is opening of new technological
zones, but the amount of subsidies, spent
for direct and indirect support of facto-

ries which boost the domestic economy,

is still uncertain.
The cost effectiveness is at stake because most of them use subsidies, so the
total net effect should be calculated and
correct this policy, considers university
professor Saso Arsov.

Most of the investments come from

Saint Vincent and Grenadines, Germany
and Switzerland, and the highest contribution to GDP, 8.3 percent, was registered in 2007.

Gross fixed capital formation

million denars

90 000
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0

2013
Equipment

2014
Construction

Other
Source: State Statistical Office

ILOVICA PROJECT TO KICK OFF

IN SECOND HALF OF 2016
The annual capacity is 10 million tons and the average annual chargeable production is
estimated at 83,000 ounces of gold and 16,000 tons of copper

he feasibility study on the Ilovica

gold and copper mine shows how
economically stable the project is, says
the management of Euromax Resources,
the company that owns the mine.
With a life span of 20 years, this is
an important project for Macedonia that
can strengthen the countrys economic
profile. The massive support that we

keep getting from all stakeholders enables

us to firmly move toward our set goal of
launching construction toward the end of
this year, says Steve Sharp, president and
CEO of Euromax Resources.
The implementation of the Ilovica
project is set to begin in the third quarter
of 2016. The administrative activities
for developing studies and taking out a

building permit are underway. Estimates

are that the mines life cycle will be 20
years. The annual capacity is 10 million
tons and the average annual chargeable
production is estimated at 83,000 ounces
of gold and 16,000 tons of copper.

ECONOMY

Government is satisfied with the improved conditions for starting a business and with the facilitated conditions for attracting foreign
investments. In 2015, thirty companies decided to invest in Macedonia and in 2016 this number is expected to increase

Macedonian Business MontHly

OVER 500 DOMESTIC COMPANIES COOPERATE

WITH FOREIGN INVESTORS
M

ore than 500 Macedonian companies directly cooperate with foreign

investors. This cooperation increases the
work of domestic companies, they get
transfer of knowledge and are introduced
to new technologies and standards, their
competitiveness increases and they have
the opportunity to export on foreign
markets. The increased cooperation between foreign investors and domestic
companies will be the priority of the
Council of Foreign Investors this year.
Irena Jakimovska, Vice President of the
Council, stressed that foreign investors
not only contribute for increasing the
competitiveness of domestic companies
and boosting the export and bolstering
new employments, but also carry out
new practices, introduce technological innovations and knowledge and have more
efficient corporative management.
Foreign investors are interested in
finding local suppliers to satisfy their
needs instead of importing ones from
abroad, stressed Jakimovska highlighting
that the number of Macedonian companies that cooperate with foreign direct
investors continuously increases.
She said that local suppliers are more
stable, more flexible and swiftly adjust to
the demands of the foreign partners. On

the other hand, foreign companies enjoy

other benefits from the cooperation with
domestic companies - they have lower
procurement expenses and swift delivery
time.
Some of the recommendations for improving the cooperation between foreign
investors and local supplies presented
by the Council of Foreign Investors are:
creating unified and integrated online
database of domestic companies which

are potential supplies, initiating regular

business meetings, detecting the existing
problems and eliminating the red tape
procedures for the supplies when operating and entering the free economic zones,
engaging international consultants and
providing technical support to domestic
companies for improving the quality of
work, active inclusion of banks and financial institutions for securing favorable
credits.

Assessment of the present present financial situation and expectations for

orders and number of employees in the next 3 months
30.0
25.0
20.0
Balance %

ECONOMY

Some of the recommendations for improving the cooperation between foreign investors and local supplies
presented by the Council of Foreign Investors are: creating unified and integrated online database of
domestic companies which are potential supplies, initiating regular business meetings

15.0
10.0
5.0
0.0

IV'13

I'14

II

III

IV

I'15

II

II

IV

Assessment of the present financial situation

Expectations for the orders from domestic and foreign suppliers during the next 3 months
Expectations for the number of employees during the next 3 months

Source: The State Statistical Office

X-TRADE, NEW FOREIGN INVESTMENT

TO ENTER SKOPJE
X

-Trade is an international company

X working in the field of online trading on the global foreign exchange market and this company entered Macedonia
in mid-January and started operating in
Skopje, anticipating engaging hundred
highly educated young persons.
Foreign Investment Minister Jerry
Naumof stressed that this investment

will help reduce the unemployment and

will preserve the highly educated young
people in the country. He stressed that
employees will be trained and well paid.
The entire investment realization took
less than a year.
Sheila Campagnano, representative
of the international company, stressed
that three months after registering the

company they started operating in Macedonia. They already engaged and trained
32 persons, out of the 100 anticipated
ones. Campagnano stressed that they also
considered other countries, but eventually decided to invest in Macedonia. The
Company will operate on the French,
English, Slovenian and Italian market.

Macedonian Business MontHly

ITALIAN COMPANY CONDOTTE IS BUILDING

HYDROPOWER PLANTS IN MACEDONIA
I

talian construction company Condotte will build four small hydropower plants in Macedonia, an investment
worth 19 million euro, money which will
directly enter the Macedonian energy
sector.
CEO of Condotte, Duccio Astaldi
informed that they consider expanding
their capacities in Macedonia, given the
favorable conditions for leading a business.
We are particularly pleased with the
framework prepared by the Macedonian Government for foreign investors,
stressed Astaldi, adding that Condotte
is interested to further invest in Macedonia.

Economy Minister Bekim Neziri

informed that the hydropower plant on
River Estericka near Probistip is completed and is expected to start operating
in the winter, while the other three plants
- two stations on River Zrnovska in the
Kocani area, and one on River Kadina in
Skopje region, are in different stages of
construction.
The Condotte investment will
engage many local companies and will
contribute for reviving the local economy, and it is very encouraging that even
though the company is investing only 19
million euro, it is a potential investor that
will continue investing in Macedonia,
stressed Minister Neziri.

Condotte officials also discussed about

reviving the hydropower plants Cebren
and Galiste and the road Skopje-Blace.
The Italian construction company
is one of the leading companies in the
world and entered the Macedonian market two years ago. It has 130 year long
tradition in infrastructure projects all
over the world and makes annual turnover of 1.2 billion euro.
Condotte is receiving so called feedin tariffs from the state, the same as the
remaining 64 concessioners in Macedonia. The ultimate goal is production of
power from renewable sources and enabling Macedonia to get cheaper electricity in medium-term.

UP TO 30 PERCENT ENERGY SAVINGS

C

ompanies can reduce their energy

expenses up to 30 percent if they
invest in energy-efficiency projects. For
three years now, USAID program helps
Macedonian Companies to invest in such
projects, as well as in installing systems
for monitoring and managing the energy
consumption. Depending on the scope
and type of production, this way Companies reduce their expenses and increase
their profit.
Industrial Companies pay 20 to 60
thousand euro annually for energyefficiency. Some of their expenses are
covered by USAID, and this project for
introducing systems for energy saving
was implemented in 17 manufacturing
plants.
This project will be implemented for
another year and will costs 1.6 million
dollars, and anticipates preparation of
studies for changing the production fuel,
exploiting waste heat, thermal isolation,
and selection of equipment and systems
for heating and cooling.

Share of the number of households with built-in insulation

in the total number of households, by regions

Source: The State Statistical Office

ENERGY

Condotte is receiving so called feed-in tariffs from the state, the same as the remaining 64 concessioners in Macedonia. The ultimate
goal is production of power from renewable sources and enabling Macedonia to get cheaper electricity in medium-term

10

Macedonian Business MontHly

RAILWAY MODERNIZATION
TRANSPORT

The new passenger train with a capacity of 200 passengers was procured from China in line with highest
European standards, and was promoted last year. This is the first out of the six passenger trains that Government
ordered from Chinese CSR Corporation which will start operating in regular traffic in January

n investment worth 600 million euro

will entirely change the image of
the Macedonian railway. New passenger
trains were procured to Macedonia, and
freight coaches will also be imported,
new rails will be constructed and the old
ones will be reconstructed, black points
will be fixed and railway stations will be
reconstructed. Citizens will be offered
high standard service, exporting companies will have new business opportunities
for expanding their business, the rail traffic will gradually improve and become
recognizable. For thirty years we havent
had such a capital investments in the
railways.
The new passenger train with a capacity of 200 passengers was procured from
China in line with highest European
standards, and was promoted last year.
This is the first out of the six passenger
trains that Government ordered from
Chinese CSR Corporation which will
start operating in regular traffic in January. This capital investment is worth 25

million euro, secured through the European Bank for Reconstruction and Development. All six trains will be imported by
April, which will cover 60 percent of the
train lines in Macedonia. Government is
reviewing a plan to procure new trains in
order to cover the entire rail network. Efforts will be made to procure new trains

in 2017, with the help from EBRD. At

the same time railway stations are under
reconstruction. The reconstruction of
Skopje railway station is worth 2.6 million euro, and stations in Veles and Prilep
are also being reconstruction after 42
years.

Energy consumption by transport mode, 2013

Source: State Statistical Office

CITIZENS ENJOY NO BENEFITS

FROM TUMBLING OIL PRICE
The low oil price, however, does have a positive effect on the performance of the firms whose
production and transport costs are closely related to the oil price

he steady oil price drop is not going

to have any major effect on the peoples budgets this time either. Aside from
petrol stations, the effects of the price
decline are not to be felt elsewhere. The
low oil price, however, does have a positive effect on the performance of the firms
whose production and transport costs are
closely related to the oil price. Nevertheless, despite their lowered costs, these
businesses hardly ever decide to lower the
costs of their products and services.

The low petrol price benefits most

transport companies but at the moment
they are not considering cutting their
fares. They explain that their fares are affected by the decrease in the number of
passengers considering private transporters are not yet included in the government free transport projects.
International transporters do not expect the lower oil price to lower the price
of their services yet competition, they say,
may have a dramatic effect on how much

they charge. Our transporters will have

to adjust to the situation on the market,
says Biljana Muratovska from MAKAMTRANS.
Economists comment that if businesses
follow the economic logic, wherever oil
plays a significant role in production,
prices should also be expected to fall, yet
they also agree that businesses react to
what their market competition does.

11

Macedonian Business MontHly

ONLY 0.2 PERCENT UNSOLVED CADASTRE CASES

M

acedonian Real Estate Cadastre

Agency registered 5,329 transactions by the end of September last year,
3,362 of which for selling and 1,967 for
rents, most of which were registered in
Skopje and least of which in Kratovo.
From the total number of registered
sales and purchases, it mostly accounts
for facilities and less for land - informed
the Director of Real-Estate Cadastre
Agency Slavce Trpeski. According to the
registry of real-estate sales and rents, the
average price for meter squared in Skopje
is somewhat less than 1,000 euro, followed by Bitola and Ohrid.
Last year 1,189,967 cases were registered in e-cadastre, which is a record
number in the history of this institution,
leaving only 0.2 percent of the cases unsolved - stressed Trpeski. This year, it is
expected that over one million cases will
be registered and solved in the given legal
deadline, especially regarding the cases
for legalizing of buildings and privatization of yards.
The annual program for realization
of the strategic plan of the Cadastre is
expected to initiate the new procedure
for registration of property in three steps.
By the end of March, it is expected to
complete the digitalization of cadastre
plans for the entire territory of Macedonia, while the construction land register

will be operational by June - added

Trpeski. By the end of last year, Cadastre registered 139,070 legalized illegally
constructed facilities and issued 4,501

free geodetic analyses for legalization. In

2015, 1,498 infrastructure facilities were
registered, recorded and marked.

NUMBER OF NEWLY RECEIVED APPLICATIONS IN COMPARASION WITH THE

NUMBER OF BACKLOG APPLICATIONS, for the period 20152013
1.160.691

1.200.000

1.027.282

1.000.000

838.434

800.000

636.798

600.000
400.000

323.695

200.000
0

1.040.268

337.040

21.990
2005

389.447

19.329
2006

651.432

8.929
2007

4.054
2008

4.814

2.862
2009

Newly received applications

2010

3.894
2011

1.967
2012

1.299
2013

Backlog applications

Percentage of backlog application in comparison with the newly received applications

10,00
8,00

6,79%
5,73%

6,00
%
4,00

2,29%
0,64%

2,00
0,00

2005

2006

2007

2008

FOREIGN INVESTORS INTERESTED

IN INVESTING IN SKI CENTER ON GALICICA

0,44%
2009

0,57%

2010

0,34%
2011

0,19%
2012

0,12%
2013

Source: Real Estate Cadastre Agency

The construction of the ski center would cost around 76 million euros and the promotional activities for the implementation of the project continue

he plan of constructing a ski center

on Mt. Galicica is still on the table
after two years ago one of the worlds
most renowned companies gave it a
green light. Foreign investors from Switzerland, Norway, France, Germany, Italy,
Israel and Russia expressed interest in
investing in a ski center.
However, according to the local authorities, no companys bid is close to the

required sum of money for this major

investment undertaking. The construction of the ski center would cost around
76 million euros and the promotional
activities for the implementation of the
project continue.
Transport Minister Vlado Misajlovski
said that two months ago he considered
with potential investors the locations
where a modern ski center should be

built. The project would be carried out

in several stages covering 12-km long ski
slopes, 2 gondolas, 7 ski lifts and highly
secured conveyer belts for children and
beginners. There will be tracks for both
alpine and cross-country skiing. However, local mountain climbers, nongovernmental organizations and experts are
divided over the idea of constructing a
ski center.

CONSTRUCTION

The annual program for realization of the strategic plan of the Cadastre is expected to initiate the new procedure for
registration of property in three steps. By the end of March, it is expected to complete the digitalization of cadastre
plans for the entire territory of Macedonia, while the construction land register will be operational by June

12

Macedonian Business MontHly

METAL PRICES CONTINUE TO DROP

Oil prices are expected to continue dropping this year. On the other hand, it is expected that in
2017 the increase of oil prices will be higher than in our last projection

industry

etal prices on the global markets

will continue to drop, even more
than expected. This was shown with the
most recent anticipations of the National
Bank of the Republic of Macedonia in
their January report on macroeconomic
indicators.
The unfavorable condition of high
offer and insufficient demand caused
metal prices to drop, especially nickel
and copper. That brings more somber
forecasts for the metal prices this year.
On the other hand, the projected drop
of metal prices for 2017 is minimally
lower than the previous expectations,
reads the most recent forecast of the
central bank.
Maksim Prohorov, Head of Development and Investments in Sasa mine

recently stressed that the metal prices

continuously drop on the global stock
exchange. Hence, the price of lead and
zinc which was 2,200 dollars per ton
one year ago, dropped to 1,650 dollars
i.e. 1,520 dollars, and the price of silver
which was 21 dropped to 14.8 dollars
per ounce.
We are continuously asked what
is the bottom price for the mine to
stop profiting and we say that we
cannot know because we are dealing
with natural substance. In the past
several months, we dig deeper horizons
in exploitation which increases our
expenses, said Prohorov. NBRM
announced that not only the metal prices
but also other prices of primary products
mark a downward trend.

Oil prices are expected to continue

dropping this year. On the other hand,
it is expected that in 2017 the increase
of oil prices will be higher than in our
last projection. Last year, wheat and corn
prices were lower than anticipated. From
the central bank explain that the global
economy is gradually healing, but the
growth rate is unsatisfactory given the
global uncertainty and tense geopolitical risks. In terms of the influence of the
global economy on the domestic one,
the anticipations for foreign effective demand are almost the same.
In the third quarter last year, construction was the main driver of growth, as
well as the domestic demand. NBRM
expects solid growth for the last quarter
of last year.

THE DROP OF OIL PRICES LEADS TO DEFLATION

S

econd year in a row that Macedonia

ends in deflation. The most recent
data published by the State Statistical Office show that in 2015, the living expenses were lower by 0.3 percent compared
to 2014 and 2014 ended with a negative
rate of 0.3 inflation. The trend of decreasing living expenses in Macedonia in the
past two years, according to the National
Bank of Macedonia, are a result of the
global low oil prices and reduced prices
of foodstuff products.
Citizens complain that they dont feel
the lower prices, showed in the statistics,
to the contrary, their living expenses are
even higher and they cannot indulge in
basic products in the markets.
Listed by years, 2013 ended with 2.8
inflation rate, which was 3.3 percent in
2012. In 2011 the living expenses increased by 3.9 percent and in 2010 we
had positive inflation rate of 1.6 percent.
In 2009, the deflation rate was 0.8 percent and in 2008 the inflation rate was
8.3 percent.
The National Bank of the Republic
of Macedonia anticipated this trend of
deflation to end in 2015, forecasting

that 2015 will end with an inflation rate

around zero, but the final result was minus 0.3 percent. For this year, the central
bank expects that living expenses will

increase, i.e. the inflation rate will be 1.5

percent, mainly as a result of the low oil
prices and reduced food prices.

INFLATION
12
10
8
6
4
2
0
-2
-4
2007

2008

2009

2010

2011

2012

2013

Annual rates, in percent

2014

2015

2016

forecast

2009

2010

2011

2012

2013

2014

2015

2016

-0.8

1.6

3.9

3.3

2.8

-0.3

0.0

1.5

Source: State Statistical Office and NBRM

ACTIVE TOURISM A CHALLENGE

FOR BALKAN COUNTRIES
Active tourists stay longer at their destinations, where they travel and waste more money,
stressed executive director of the Association for Active Tourism ATTA, Christopher Doyle

acedonia will try to become leader

in tourism in Southeast Europe
by practicing active tourism. The International Association for Active Tourism
in Skopje organized training in order to
provide additional support for developing
active tourism on the Balkans.
The training was held before the upcoming regional conference which will
be held in Ohrid in May this year. It is
a Summit which is anticipated to attract
300 European and global tour-operators
and media. From the Agency for Promo-

tion and Support of Tourism in Macedonia stress that the training was organized
for the tour-operators which will attend
the Conference in Ohrid and present
their offers.
-We believe we have found a way to attract foreign tourists by promoting Macedonia as favorable destination for active
tourism, stressed Director of the Agency
for Promotion and Support of Tourism in
Macedonia, Lela Krstevska.
From the Association of Active Tourism
ATTA explain that active tourism is glob-

13

ally represented with 263 billion dollars

and it is the fastest growing sector in the
world.
-Active tourists stay longer at their
destinations, where they travel and waste
more money, stressed executive director of
the Association for Active Tourism ATTA,
Christopher Doyle. The assessment for
massive tourism is that 17 cents remain
in the destination of visit from every dollar spent, and active tourism accounts for
65 cents i.e. 65 percent of every dollar
remains at the tourist destination.
Otherwise, the Ohrid Conference will
bring together more than 200 representatives of the public and private sector from
12 destinations in Southeast Europe. The
Conference aims at promoting the Balkan
region as one of the best and undiscovered
destinations for active tourism in Europe.

TOUR-OPERATOR TOMAS COOK NETHERLANDS

TO ENTER MACEDONIA
The Agency for Promotion and Support of Tourism (APPT) promoted Macedonia on the Tourism Fair in Utrecht
Netherlands, which took place in the period 13-17 January, together with 500 global destinations

fter Belgian Tomas Cook recently

signed agreement with Macedonian
hotelkeepers, Thomas Cook- Netherlands, big tour-operator on the Dutch
market, intends to enter Macedonia. The
Agency for Promotion and Support of
Tourism (APPT) promoted Macedonia
on the Tourism Fair in Utrecht Netherlands, which took place in the period 1317 January, together with 500 global destinations. Macedonia was presented on
the Dutch tourism market for the sixth
time, which is one of the most recognized
tourism markets, and Dutch showed
great interest in Macedonias culture, history and nature.

TUI and Corendon, the biggest

tour-operators that bring Dutch tourists to Macedonia, are optimists for the
upcoming tourist season, regardless the
unfavorable geo-political events in certain parts in the world, stressed from the
Agency. During the fair, they discussed
the possible for joint representation on
the markets of third world countries with
some Balkan countries, in order to attract
more tourists.
Macedonias tourist offer was presented
by Macedonian hotelkeepers and touroperators Ohrid holidays and Bohemia which expect to have a successful
tourist season.

Great recognition goes to the Republic of Macedonia as an attractive travel

destination, after ANVR, Dutch Association of Tour Operators announced that
this years annual congress for the best
tourism students from all faculties and
schools for tourism in Netherlands will
take place in the most popular Macedonian resort Ohrid in the period 21-28
May 2016 in Ohrid, and Dutch students
will have the opportunity to exchange
knowledge and share experience with
their colleagues from Macedonia, stressed
Macedonian Ambassador to Netherlands
Igor Popov.

TOURISM

Macedonian Business MontHly

14

Macedonian Business MontHly

HOTEL KEEPING TO FLOURISH

THIS AND NEXT YEAR
TOURISM

According to Mihajlo Kolev, General Manager of Opera House Hotel, the expectations and anticipations for this and for next year
are positive. In 2017, Skopje will host a global event and out metropolis will be put on the map of sport mega powers hand in hand
with the European cities. The Football Federation of Macedonia arranged the UEFA Super Cup to be organized in Skopje

n the past few years, the Macedonian

capital city became leader in construction and opening hotel and catering
facilities in Macedonia. Data shows that
the hotel and catering facilities in Skopje continuously increase, as well as the
number of foreign visitors. The increased
number of tourists who decide to visit
Skopje is a result of the numerous landmarks, which increase from year to year.
Statistics show that this year Skopje will
be visited by more tourists compared to
last year, and the upward trend of visitors
will continue next year when the number
of visitors is anticipated to be recordbreaking, mainly due to 2017 UEFA
Super Cup.
According to Mihajlo Kolev, General
Manager of Opera House Hotel, the expectations and anticipations for this and
for next year are positive.
The hard work and investments in the
hotel keeping business were worth it. Last
year, Skopje had a tourist revolution and
hotel keepers saw the most of it. There
is continuous demand for extra rooms
and hotel capacities are increasing, said
Kolev.
In 2017, Skopje will host a global
event and out metropolis will be put on
the map of sport mega powers hand in

hand with the European cities. The Football Federation of Macedonia arranged
the UEFA Super Cup to be organized in
Skopje.
This kind of vast global event will
definitively attract enormous wave of
tourists, worldwide. It is a fact that while
organizing this global event we will need
to improve and boost the hotel and ca-

tering services in the capital city and in

the whole country. Starting from airport
capacities, providing accommodation,
luxury hotel rooms, available and wellarranged hostels and also smaller accommodation facilities. However, it will
definitively present a great chance to promote our country and make profits in the
entire catering business, added Kolev.

Structure of tourists and nights spent, November 2015

Tourists

Nights spent

0%

10%

20%

30%

40%
Domestic

50%

60%

70%

80%

90%

100%

Foreign

Source: State Statistical Office

THE FIRST HOTEL TO BE CONSTRUCTED

IN DEMIR KAPIJA
T

he local self-government of Demir

Kapija sold construction land
which will hold the first hotel in this
Municipality.
The hotel will be constructed
between the two existing wineries and
near the third winery that will soon be

constructed. This is near the juncture

entrance to Demir Kapija from highway
Skopje-Athens, informed Mayor Trajce
Dimitriev.
The hotel construction is a domestic
investment of Goce Gjorgievski from
Skopje, who stressed that the hotel will

be located on 1.500 meters squares and

will have 50 beds, restaurant, swimming
pool, spa center, summer terrace and
childrens playroom.

Macedonian Business MontHly

15

FARMERS DONT INSURE THEIR CROPS

L

ast year, only six percent out of a

total of over 192 thousand individual
farmers in Macedonia have insured their
crops. Insurance companies offer policies
for insuring the property, crops, cattle,
etc, but the interest of Macedonian farmers is to the minimum compared to the
interest in developed countries, even if

the state gives 60 percent subsidies for

the insurance policy.
Insurance is the most effective way for
compensating agricultural damages, stress
from the Insurance Supervision Agency.
Climate changes have direct influence
on crops and on the quality of agricultural production. Last year, the number

of sold policies increased for 63 percent,

but it is still far beyond European average. The political and economic stability
of the country and the living standard
of citizens play an important role in the
insurance segment.

FLOUR PRODUCERS CALL

FOR URGENT MEASURES
T

he Group of Flour and Bread Producers at the Economic Chamber

of Macedonia calls for urgent measures
to protect the home flour industry, full
control of the flour imports through
control markings, implementation of the
flour quality regulations and additional
subsidies for domestic wheat producers
by quality.
Vasko Ristovski from the Economic
Chamber of Macedonia said the conditioned import of flour and wheat, the
control markings and the regulations of
flour quality control did not produce the
expected results.
The analyses of the flour industry show
that in a period of four years, the import

of flour increased by some 30 percent

annually. In the eleven months of 2015,
40,511 tons of flour were imported,

which surpasses the total import in 2014

of 40,361 tons.

ADDITIONAL SUBSIDIES FOR PIG-BREEDING

G

iven the increased import from

Serbia and the disruption on the
Macedonian market, the Ministry of Agriculture will this year provide additional
support for pig-breeding, through the
program of direct payments.
Competent Minister Mihail Cvetkov
stressed that the additional subsidies will
aim to preserve this sector.
In the period October-May, when
the demand for pork decreases, the state
will provide additional subsidies for storing the meat in freezers, explained the
Minister.

Number of livestock
800 000
700 000
2013

600 000

2014

500 000
400 000
300 000
200 000
100 000
0

Cattle

Pigs

Sheep

Goats

Source: The State Statistical Office

AGRICULTURE

Insurance is the most effective way for compensating agricultural damages, stress from the Insurance Supervision Agency

16

Macedonian Business MontHly

MERCHANTS DEMAND CULTIVATION

OF PUMPKIN AND PLUM
AGRICULTURE

Experts are decisive that the soil in Strumica region is very favorable for these attractive croppers

erchants demand the pumpkin,

plum, Japanese apple and chili
pepper to again be cultivated by farmers.
They stress that market lacks certain
agricultural crops as a result of the
negative influence of the climate changes
and given the fact that farmers are only
orientate to certain croppers.
We recommend 45 new products
to be included in order to have variety
of products. We suggest farmers to start
cultivating plums and Japanese apples.
We have already negotiated and agreed
upon the production and export of
pumpkin for 2016, and the chili pepper
is almost sold out because it was barely
produced in 2015, said Aco Stoilkov
merchant of agricultural products.
Stoilkov considers that the agreed
production and the efforts for stimulating
the young people to return to the
farmer land will boost the agricultural
production. In addition, he considers
that more purchase points in Strumica
region for production, packing and
placement of agricultural products
pursuant to European standards.
Experts are decisive that the soil in
Strumica region is very favorable for these
attractive croppers.
There is great interest on the German
market for the dried plum. In Strumica

region there are favorable conditions for

several types of plum. Japanese apple
is expanded in Strumica region, except
in Valandovo region where it is sold for
2,000 to 3,000 tons per year, explained
PhD Risto Vuckov, agriculture expert.
Experts advise that production
shouldnt be spontaneous, but organized
with professional surveillance and expert
advice in order to have better quality and

bigger price. According to merchants,

last year, the red pepper, plum and peach
had great placement success, while for
tomato producers it was one of the
worst years due to the climate changes
which damaged the crops and due to the
competion of foreign markets.

Structure of orchards
Almonds and hazelnuts
3%

Pears
3%

Other
3%
Apricots
2%

Cherries
5%
Walnuts
5%
Apples
44%
Sour cherries
8%

Peaches
12%
Plums
15%

Source: State Statistical Office

SOLVING THE PROBLEM WITH THE LENGTH

OF SERVICE FOR FARMERS
T

he legal decisions that enables farmers to calculate their length of service

and get insurance, entered into force this
year, pursuant the law on pension insurance for farmers which was implemented
in the period 1978-1988, in order for
farmers to complete the precondition for
having a minimal length of 15 years of
service and receive a pension.

The legal decision was proposed by the

Government in August last year, entered
the Assembly procedure and was adopted
by MPs. It gave legal opportunity to
around 400 individual farmers who had
problems with the lack of length of service for receiving a pension.
The law was prepared in order to meet
the demand of the association of farm-

ers, trade unions and numerous citizens,

who had this problem and were unable to
receive a pension.
Government annually allocates around
34 million denars for this measure.