Impact of COVID-19 on Agricultural Markets and Supply Chains in North Macedonia

The COVID-19 pandemic has affected agricultural markets and linkages in North Macedonia, with disruptions in transport, farm production, and sale of products. Issues included shortages of parts, transportation challenges, and price drops in sectors like meat, dairy, and fruits. Specific sectors hit hardest were beer, wine, sheep, flowers, and fruit/vegetables. The EU implemented measures to support the agricultural sector, such as aid flexibility and transport management.

• COVID-19 impact
• Agricultural markets
• North Macedonia
• EU measures
• Supply chain

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1. AGRICULTURAL MARKETS LINKAGES AFFECTED BY THE COVID-19 PANDEMIC NATIONAL CONVENTION ON THE EUROPEAN UNION IN THE REPUBLIC OF NORTH MACEDONIA J n BAR V RY, Slovak Chamber of Agriculture and Food 24thNovember 2020

2. HOW COVID-19 AFFECTED AGRICULTURE? Transport of production and supplies Farm production Sale of products

3. TRANSPORT OF PRODUCTION AND SUPPLIES Problems with transport during the 1stCOVID wave due to the closed borders: shortages of parts and technicians for agricultural and food industry machinery problem with cross-border transport solved with green lines problem with export to some countries preference of their own production Shops were supplied fluently No problems reported during the 2ndCOVID wave yet

4. FARM PRODUCTION No serious problems detected in Slovakia During the 1stwave farms adopted special measures to reduce the risk of infection On-farm accommodation in many animal production farms

5. SALE OF PRODUCTS Problems with sale of production in some sectors closely related to gastro and tourism Drop of prices in many sectors: pork milk sugar beet fruit and vegetables, potatoes

6. WHAT SECTORS WERE AFFECTED THE MOST? Beer sharp decline of sales dependent on HORECA Wine historically lowest sale of wine dependent on HORECA Sheep problems with export of Easter lambs to Italy sale of sheep cheese is dependent on HORECA Flowers flower shops closed during the 1st wave Fruit and vegetables problem with seasonal workers

7. WHAT MEASURES EU ADOPTED (1)? Temporary framework for strate aid exceptional flexibility (March 2020) Transport management (green lines) Free movement of employees in cricical infrastructure Higher advances of direct payments (from 50% to 70%) and rural development payments (from 75% to 85%) Reduction in the number of physical on-the-spot checks

8. WHAT MEASURES EU ADOPTED (2)? Private storage aid for dairy (skimmed milk powder, butter, cheese) and meat (beef, sheep and goat meat) products Flexibility for market support programmes for wine, fruits and vegetables, olive oil, apiculture and the EU's school scheme (milk, fruits and vegetables) Exceptional derogation from EU competition rules New RDP measure max. EUR 7 000 per farm and EUR 50 000 for SME processing company Next Generation EU Slovakia should get approx. EUR 7 billion

9. WHAT MEASURES SLOVAKIA ADOPTED? New COVID measure under RDP for food industry limited to certain sectors and SMEs call EUR 20 mil. approx. EUR 7 mil. spent (unpaid yet) up to EUR 50 000 per enterprise Simplification of seasonal employment of long-term unemployed people Special regime for pendlers Increased costs for disinfection and preventive measures weren t refunded

10. THANK YOU! J n Bar v ry Slovak Chamber of Agriculture and Food Director of Department of Agriculture and Services +421 914 330 001 barsvary@sppk.sk