On shop shelves, import beats Kosovo product

It is a question that, inevitable, is posed by consumers in front of shop shelves, where, in many cases, local products cannot compete with the prices of goods coming from abroad.

For manufacturers, the reason is not related to the quality of products but to the cost of production.

They say energy, transport, packing, labour force and raw materials make production in Kosovo more expensive, while imported products often come with the advantage of state subsidies in the countries where they are produced.

In the milk industry, for example, only collecting and transporting milk to the factory costs about 60 cents per litre, says Aladin Field, owner of Abi's milk station in Prizren.

Then come processing, packing, energy and other expenses.

“Finally, a liter of milk in the bag should be sold about 80 to 85 cents just to cover costs”, says the Field for Radio Free Europe.

He shows that his products depending on the type are from 10 to 20 cents more expensive than imported ones.

But the phenomenon is not limited to milk.

In some stores in Kosovo, other local products are sold at similar or higher prices than imported ones.

In one case, a litre of imported oil cost 1.72 euros, while a litre of oil produced in Kosovo was 1.89 euros.

In the face of this situation, some consumers say that the origin of the product has gone second.

What you decide more and more often about what ends in the basket is cost.

Hannah says she would like to buy more local products, but the budget does not always allow it.

I usually get the local milk and yogurt, but if they're more expensive, I can't. I buy what's cheaper, even if it's imported. I'm sorry”, she says.

Gailana Shatri also says that during purchases it is important to place product origin, but only after seeing the price.

I see where the product comes from, but I normally see the price”, she says.

This trend, according to economists and business representatives, has become more evident at a time when citizens' purchasing power has come under pressure.

According to the Kosovo Statistics Agency, production costs have increased by 2.3 percent in the first three months of this year.

At the same time, inflation has reached 6.8 percent, driven mainly by expensive food, transport, energy, water, and housing.

Economists estimate how the average salary, which is 713 euros, such as the minimum one, which this month has increased to 500 euros, is insufficient to cope with the steady increase in the cost of living for many families.

Businesses Seek More State Support

Business representatives say local producers cannot win the battle with import only by cutting profit.

According to them, the problem lies with high production costs and lack of policies that would make Kosovo products more competitive.

Lulzim Rafuna, chairman of the Kosovo Economic Ode, says local products, under normal conditions, should be as much as 15 per cent cheaper than imported ones.

We have to convince the citizens of the Republic of Kosovo that it's patriotism to buy the local product, even though it's 10 or 20 cents more expensive... and these 10 or 20 cents should the Government see how to put down”, Rafuna says.

In this regard, the Economic Oda proposes increased financial support for producers, as well as changes in fiscal policy, including the VAT review for basic products.

What does the state do?

The Ministry of Industry, Trade, Trade and Innovation (MINTI) says the competitiveness of local producers is influenced by a variety of factors, including technology level, productivity, energy costs, financial access, certificates by international standards and dependence on imports of raw materials.

In a response to Radio Free Europe, the ministry says it is analyzing the main obstacles facing businesses, aimed at drafting measures that will increase their competitiveness.

According to her, one of the main forms of support are grants for the purchase of modern machinery, digitalisation, new technologies and improved production processes.

The machine's <x0.0m-euro grant value has increased from 425m euros in 2021 to 6.8m euros in 2025, while five million euros have been set before the ministry's response in 2026.

Despite these efforts, foreign trade figures show that Kosovo's economy continues to rely mainly on import.

During the first half of this year alone, Kosovo imported goods worth over 3.5 billion euros, while exports amounted to around 521m euros.

Even a year ago, the gap was deep: imports exceeded seven billion euros, while exports of Kosovo products stood at around 950m euros.

For Alajdin Fush, owner of Abi's milk cane, this indicates that local producers need more support.

The state must subsidize the processing of any milk liter. We can only become more competitive towards imported products”, he concludes. /Periscope/