The effect of economic policies on North Macedonia’s food system

¹ Department of Agricultural Economics, Faculty of Biotechnical Sciences, St. Kliment Ohridski University, Bitola, Republic of North Macedonia
² Faculty of Economics, Branch Prilep, St. Kliment Ohridski University, Bitola, Republic of North Macedonia

^* Corresponding author: nikolce.jankulovski@uklo.edu.mk

Abstract

The agriculture system is a significant contributor to North Macedonia’s Gross Domestic Product (GDP), but with substantial influence by economic policies. In 2020, the sector contributed 9.09% against 7.87% in 2017 and the years before, contributing to past political insecurities. Agriculture performance needs to be reinforced with suitable economic policies, which would solve the prevailing complications in food systems. The temperate of North Macedonia is not favourable for food production, and irrigation is an effective means of providing water. The total arable land in North Macedonia is about 665,000 hectares, which is 50% of the total available land. Only about 163,700 hectares are provided with water through several government irrigation schemes. Aside from the country being water deficient, the mean temperature of the region is also high and is continually on the increase. It is estimated that in 2050, the mean annual temperature would have increased 1.90°C and a decline of 5% in precipitation. North Macedonia can achieve more by having an increased growing season and changing cropping patterns to adapt to climate changes. Since the agricultural sector is less profitable, the government needs to enact more policies to improve the food system performance to experience positive returns.