1. AGRICULTURAL SECTOR IN MONTENEGRO

2. Macroeconomic data 20022003200420052006 GDP (mil €)1,301.501,433.001,535.001,644.001,778.81 GDP per capita €2,109.112,317.902,472.992,638.002,790.50 GDP growth (%)1.702.303.704,10 6.50 Inflation9.406.704.301,802.5 Unemployment rt.30.4525.8222.617,0015.5 Average wage193271302.81326.50376.37 Investments182.90213.62111.08382.82502.00

3. Agriculture sector in Montenegro Strenghts Favorable and various agro - climate conditions Preservation of land, water, and air Big idle area of arable agricultural land (0.80 hectare agricultural and 0.29 hectare arable land per capita); Existence of a large number of Montenegrin products with export potential; Market existence – local and tourist request; Stable currency; Favorable law frame foreign capital arrival; Availability of the Work force. Traditional pursuit with agriculture ; SWOT analysis

4. Agriculture sector in Montenegro Weaknesses Technological standstill Low level of domestic accumulation Small sizes of agricultural husbandries Poor infrastructure Insufficient manufacturing capacities and finalization of product Long standing shut from international market Insufficient professional education of agricultural manufacturers Understanding agriculture as add-in activity Complicated approach to credit capital Non-entity of competent council office Undefined marketing strategy SWOT analysis

5. Agriculture sector in Montenegro Opportunities Initiating cooperative relations to exceed the problems of the informational unbalance; Joining together agriculture and tourism; Standardization with WTO and EU; Initiating production specialization of some authentic products; Concept of Montenegro as an ecological state and producer of genetically unmodified food; Attract foreign investments in agricultural sector. SWOT analysis

6. Agriculture sector in Montenegro Threats Competition of highly subvention foreign products; PDV concept that seriously loads product liquidity SWOT analysis

7. Agriculture sector in Montenegro Reduce the state’s role in agriculture and lower common transaction costs; To intensify the usage of international standards in agricultural activity; To liberalize export – import regime; To develop and recuperate cooperative relations through the Agricultural Producers Association To intensify the promotion of agricultural products in Montenegro; To improve accessibility of statistical data about agricultural production; Defining status of agricultural producers and their professionalism. Objectives

8. Agriculture sector in Montenegro In the period from 2000-2005, Montenegro adopted several laws that regulate the area of agriculture. Law on Olive Production Law on Marine Fishing Law on Veterinary Law on Organic Agriculture Law on Tobacco Law on Wine, Brandy and Other Alcoholic Beverages Institutional ambient of agricultural sector