EREA: Empowering Rural Economies in Agriculture

Project description / objective

To create sustainable and inclusive income generation opportunities in Kosovo's rural economies by improving the performance of selected agricultural market systems (NWFPs-MAPs, berries, fruits and vegetables), especially benefiting women and marginalised communities.

Market systems focus

Berries (e.g. raspberries, strawberries, blueberries)

The berry sector has export potential but struggles with low productivity due to outdated practices, limited advisory support and poor access to quality inputs, irrigation and certifications. These challenges particularly impact smallholders in hill regions.

Kosovo cultivates approximately 2,000–2,500 ha of berries, engaging 3,000–4,000 farming households, with exports mainly to EU markets. The sector has strong export potential but productivity remains below regional levels.

Non-Wood Forest Products – Medicinal and Aromatic Plants (NWFPs–MAPs)

This sector holds untapped export potential but is hindered by weak processing infrastructure, limited investment, lack of tailored grants, workforce shortages and climate-related risks affecting plant quality.

Kosovo exports over USD $11.7–17.6 million annually (approx.) in MAPs and NWFPs, engaging thousands of collectors and several hundred cultivators, particularly in rural and mountainous areas.

Domestic fruit & vegetable processing

Processing meets strong local and export demand, but growth is constrained by outdated equipment, energy inefficiencies, financing gaps and limited market access. These challenges disproportionately affect women-led and small-scale rural enterprises.

Kosovo's fruit and vegetable sector covers over 20,000 ha and supplies a growing processing industry of 100+ processors.

Programme approach

The programme applies a Market Systems Development (MSD) approach by facilitating change through market actors, co-investing in inclusive business models, and fostering systemic reform via partnerships with the private sector, civil society and government to drive sustainable, equitable agricultural growth.

Programme interventions

Berries

Supporting inclusive contract farming
EREA facilitated agreements between 89 berry farmers (40 women), eight agribusinesses, providing them with tailored input packages (seedlings, fertilisers, irrigation kits) and securing guaranteed purchase of produce. This improved farmer income stability and encouraged modern cultivation practices, with the intention that agribusinesses - rather than EREA - progressively take ownership of financing and scaling the input-package model commercially as it proves viable.

Climate-smart agriculture
A fog irrigation system was piloted in Peja with the Mjedra e Pejës Association to manage heat stress and water use. This climate-resilient technology demonstrated how localised cooling could enhance productivity in raspberry cultivation.

Pest management manuals
MeK (Berry sector national association - Mjedra e Kosoves) developed crop-specific manuals for raspberries, strawberries and blueberries, providing practical guidance on integrated pest management to help farmers reduce chemical use and align with eco-friendly practices.

Global GAP certification
Five berry farmers received support to meet Global GAP standards, including training on traceability, hygiene and sustainable farm management. This opened access to export markets requiring high compliance standards.

NWFPs & MAPs

Organic certification (ICS model)
Supporting producers in obtaining organic certification through a group-based Internal Control System (ICS), implemented with the Organika national association which organises participating farmers and develops the ICS as a member service, and FiBL, which provides technical expertise on organic production and EU compliance. The model reduces individual certification costs and strengthens local capacity, enabling small-scale farmers to access organic markets. EREA’s longer-term objective is for Organika to institutionalise and continue the ICS service beyond programme support and, where demand and a sustainable cost-sharing or financing mechanism are established, expand it to additional farmers.

Exchange and study visits in the region and to EU countries
Producers and agribusinesses participated in study tours to Albania, Romania, Germany, Switzerland and Spain. These visits facilitated knowledge exchange on production methods, quality standards, cooperative models and export procedures, while also fostering strategic linkages with international buyers and technical partners.

Policy advocacy
This involved engaging in targeted advocacy with national institutions to address systemic constraints within the agricultural sector. Key achievements include the promotion of financial support for MAP & NWFP processors, incorporation of sector-specific issues in agricultural grant schemes, and improved recognition of legal challenges related to processing losses.

Smart irrigation pilots
Pilot projects introduced smart irrigation systems across selected berry and MAP plots. These technologies deliver water based on real-time soil and crop needs, reducing resource waste and enhancing climate resilience. Comparative monitoring is underway to assess impacts on yield, resource efficiency and operational costs, with the goal of scaling adoption.

Domestic fruit & vegetable processing

Formalisation and support to processing enterprises
Facilitating the formalisation and capacity development of small-scale processing businesses. Support included legal registration, provision of production equipment and training in good hygienic practices (GHP) and good manufacturing practices (GMP). These upgrades enabled businesses to expand production, meet market standards and improve competitiveness.

Establishment of private label processing partnerships
A pilot initiative by the PePeKo association was launched to develop cooperative business models between small processors and medium-scale enterprises through private label arrangements. This approach supports market access for smaller actors by integrating their production into established supply chains, enhancing scalability and operational efficiency.

Infrastructure co-investments for processing upgrades
Nine agribusinesses received co-investments to upgrade their processing infrastructure. Investments included solar panels, automated packaging lines, improved sealing technologies and water-efficient systems. These upgrades led to enhanced productivity, reduced operational costs and the creation of new employment opportunities within the sector.

Exchange and study visits in the region and to EU countries
Processing companies participated in organised visits to Germany and Switzerland to explore export market opportunities, understand regulatory requirements and build commercial partnerships. These exchanges provided direct insight into European buyer expectations, quality standards and certification processes, supporting export readiness.

Exchange and study visits in the region and to EU countries
Through structured engagement with national institutions, this intervention addressed policy and regulatory issues affecting processors, such as tax penalties related to volume loss during food processing. It also contributed to ongoing discussions on subsidy design, certification incentives and the improvement of the business-enabling environment for food processors.

Environmental training and circular economy practices
Targeted training sessions introduced processors to waste management techniques circular economy principles. Participants learned practical strategies to reduce waste, reuse resources and align with EU environmental standards - strengthening the sector’s sustainability and compliance.

Notable results

Enduring systemic changes

Berries:

• Contract farming
  89 farmers, including 40 women, adopted contract farming models. This improved income predictability, strengthened relationships with processors and introduced more reliable planning and production cycles - laying the groundwork for sustained market coordination.
• Global GAP certification
  Five farmers achieved Global GAP certification, a key step in aligning with international food safety and quality standards. This not only opens export pathways but institutionalises quality protocols that will remain long-term with market actors.
• Smart irrigation
  Pilots demonstrated measurable results, including reduced water use and improved resilience to heat stress. Its value was further confirmed when additional agribusinesses applied for similar climate-smart technologies under the SAP Call, showing early signs of replication beyond the initial pilot. Participation generated two concrete partnership opportunities and three ongoing contract negotiations with EU buyers.

NWFPs & MAPs

• Organic certification (ICS Model)
  Nine farmers, including six women, began the organic certification process using the Internal Control System (ICS) model. This group approach reduces costs, institutionalises organic standards and lays a foundation for long-term access to premium markets.
• A B2B exchange resulted in Kosovo’s first blueberry export to Germany and sparked collaborations with Romanian MAP and mushroom processors. These relationships help scale market reach and diversify export channels for local producers.
• Policy advocacy
  Programme-facilitated advocacy led to the Ministry of Agriculture officially integrating mushroom cultivation into national grant schemes. This systemic shift enables more producers, especially rural and non-majority actors, to access public finance mechanisms at scale.

Domestic fruit & vegetable processing

• Business formalisation
  Three women-led businesses, including one Serbian-owned, were formally registered and supported with equipment, enabling legal market entry and long-term business growth, especially for marginalised entrepreneurs.
• Infrastructure investment
  Nine agribusinesses received co-investment for equipment upgrades, resulting in 74 new jobs, 66% of which were filled by women.
• Certification – ISO & HACCP
  Two processors achieved ISO 22000 & HACCP certification, positioning them to meet export-quality standards. These certifications institutionalise food safety protocols and open sustained access to higher-value markets.
• Private label pilot
  The pilot demonstrated the feasibility of a private label business model linking small-scale processors with established enterprises, creating new market opportunities and laying the foundation for wider adoption by PePeKo members.
• Export promotion
  Processing firms participated in trade visits to Germany & Switzerland, strengthening export-readiness and developing buyer relationships.

Impacts for target beneficiaries

In its first year, the EREA programme directly benefited 240 individuals across all value chains through job creation, contract farming, training and improved market access.

• 89 farmers secured structured contracts
• 74 new jobs were created (66% for women)
• 51 individuals received technical training

Participants also gained exposure through trade fairs and exchange visits, strengthening market linkages and business practices.

These interventions have enhanced income stability, self-employment and capacity for sustainable growth across Kosovo’s agricultural sectors.

[uploaded August 2026]