An Innovative Inclusive Approach to Enhancing Agricultural
Sustainable Development in Albania:
The Case of Nucleus Albania
MERITA TOSKA1, ETLEVA DELIA2, ASHLI SIPRI1
1Faculty of Planning, Environment and Urban Management,
POLIS University,
ALBANIA
2Faculty of Agriculture and Environment,
Agricultural University of Tirana,
ALBANIA
Abstract: - Agriculture has been essential for humanity's survival, progress, and well-being throughout history,
and yet it remains an essential and challenging sector of the global economy. While under a continuous
transformational process, advancement towards inclusive and sustainable development of agricultural practice
remains a challenge for the sector. In Albania, the agricultural sector is vital to the economy (particularly in the
rural areas), accounting for a large share of gross value added, employment, and exporting activity in the
country. Rooted in the early 90s land reform law and decollectivisation policy, multiple structural and non-
structural challenges hinder the agricultural sector's full potential exploitation. This paper aims to assess the
impact of Nucleus Albania's (NA) innovative nuclei approach in strengthening the MSME market position and,
in turn, the agricultural sector and sustainable development in Albania. The impact assessment was conducted
using a mixed methods approach, including secondary and primary data analysis (collected through a structured
questionnaire and direct interviews). Combined findings suggest a positive impact of the NA-tailored support
package on MSME business activity, including improved product quality and diversification, expansion of
production capacities and customer base, increased employment and annual turnover, and investments in
technology. In addition, the collaborative platform established through NA plays an important role in
promoting innovation in agriculture and facilitating knowledge exchange among participants, making a
substantial contribution to the overall development of the agricultural sector in Albania. Our findings support
the NA approach's effectiveness and its role in modernizing and transforming the agricultural sector,
contributing to long-term sustainable development in Albania and beyond.
Key-Words: - Albania, agriculture, sustainable development, access to finance, nucleus approach, SDG2.
Received: April 14, 2023. Revised: November 7, 2023. Accepted: December 23, 2023. Published: December 31, 2023.
1 Introduction
Agriculture has been one of the most fundamental
activities throughout history, essential to human
survival and progress. The United Nations included
agriculture in the Sustainable Development Goal
No. 2: "End hunger, achieve food security and
improve nutrition, and promote sustainable
agriculture", [1]. Agriculture and rural development
are important for a small economy like Albania and
have drawn the attention of policymakers and
policymaking over the years. In this realm, the Inter-
sectorial Strategy for Agriculture and Rural
Development translates the general vision of the
sector stated in the National Strategy for
Development and European Integration 2030 stated
as "to make possible an efficient, innovative and
sustainable agro-food sector in Albania, which can
better withstand the pressures of the national and
international market and respond to the challenges
of climate change and sustainable management of
natural resources while contributing to improving
the quality of life of the inhabitants of rural areas
and further increasing the attractiveness to exercise
economic activity that guarantees sufficient income
to live there and provide products and services to
agricultural and non-agricultural consumers
visiting rural areas and beyond rural areas." Efforts
towards vision fulfillment call for important
inclusive interventions, ensuring economic,
environmental, and social sustainability
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equilibriums. In addition, aspirations of EU
integration are an added force for sector
performance improvement to face single-market
competitive pressures (the EU is Albania’s main
trading partner) for food and agricultural products,
[2], [3]. Albania's agriculture sector is of multi-
dimensional importance, from providing food for
households and alleviating extreme poverty to a
significant contribution to GDP (app. 20%),
employment (more than 40%), and export activity of
the country (about 11.3%), [3]. Progressive
improvements in the sector have not necessarily
translated into increased competitiveness trailing
behind regional competitors, [3], [4], with Albania
being a net importer of agri-food products (export-
to-import coverage ratio averaging at about 28%
over the last five years based on INSTAT data) on
the back of imports increasing at an accelerated rate
and sluggish export activity. Despite the relative
importance and interventions, several factors hinder
international growth and competitiveness, largely
stemming from its transition into a market economy
in the early 90s (in particular, the early 90s land
reform law and de-collectivisation policy, [5]). Land
fragmentation (small farm size) and property rights
uncertainties, [3], [6], insufficient investments in
supporting agricultural infrastructure, limited
technological penetration in the sector, low
productivity, [7], instability of policy and legal
framework, low market integration, and intensive
import competition, and restricted access to finance,
[3] and hedging are among the main problems
hindering competitiveness and the efficient
development of the sector, [8]. Due to the variety of
issues characterizing the sector, policy response and
strategy have also been diverse (ad-hoc,
inconsistent, and mildly orientated towards EU
Common Agricultural Policy). In particular, being a
sector dominated by more than 98% of family-
owned small businesses/farms, operators in the
sector find it difficult to participate and compete for
support in national and international programs such
as the pre-accession instrument of IPARD or others.
That is because these kinds of businesses do not
fulfill the condition of the land plot size/farm size,
present a high level of informality, [8], [9], [10],
cannot provide for requested documentation, and
often are not informed, or the information does not
penetrate remote areas and in some cases do not
have the capacities of preparing the necessary
documents requested by a call. In addition, public
financial support for the sector is low, assessed at an
average of about Eur 29 million or 1.5% of sector
GVA during 2007-2018, [2], [11] the lowest
compared to Western Balkan and EU countries
average support, [8]. In this context, there is a
mismatch between the designed schemes for support
and the typology of agricultural activities embedded
in the local fabric, failing to produce the expected
results at the sector level. Therefore, implementing
alternative, small-scale, and broad geographical
coverage initiatives might benefit participants and
the sector. In this study, we investigate through a
mixed method approach the impact of an innovative
approach in fostering development in MSME in the
agricultural sector and the sustainability of the
results achieved, the appropriateness of the
approach, and the replicability of the best practice in
other sectors of the economy using the case of
Nucleus Albania. The study sheds light on how
small-sized but capillary interventions can have
accelerating effects on agricultural activities, even
in the most remote areas.
While internationally recognized (its genesis
can be found in Latin America in the early 90s), NA
represents an innovative methodology and approach
in Albania. The project was launched in 2015,
aiming to support micro, small, and medium-sized
enterprises (MSME) in Albania's agricultural sector.
The NA nuclei approach groups MSMEs with
similar core activities within a region into nuclei.
The members of the formed nuclei are invited to
participate in a series of activities and services
tailored to their sectoral-specific needs – a tailored
support package (more information can be found at
www.nucleus.al) aiming at improving business
performance, employment, integration in value
chains, and contributing to overall agricultural
sector development. Monitoring the effectiveness
and sustainability of the results achieved by NA at
different points in time advances knowledge
regarding long-term results and outcomes of the
intervention. It provides a best practice that applies
to other sectors of the economy, promoting
inclusion and sustainable development practices.
Being a sector dominated by small-size farms,
designing and implementing technical and financial
support schemes must bear in mind this feature for
effective environmentally sustainable interventions.
2 Methodology
Assessing the NA impact in fostering agricultural
activity in Albania employs a mixed methods
approach, combining secondary and primary data
analysis. Secondary data relate to official statistics
from national and international statistical agencies,
providing insights into agricultural sector
developments and contribution to economic growth,
employment, and trade. Primary data are collected
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through two survey rounds with all participants in
all nuclei (the targeted population) and interviews
with a restricted number of members (therefore, no
sampling technique was used). In two consecutive
rounds at different points in time, all participants in
all nuclei were invited to participate and provide
insights on different aspects of the NA approach and
their experience using a structured questionnaire
(the same questionnaire was used in both rounds of
the survey to ensure comparability). Participation in
the survey was voluntary upon a clear explanation
of the scope of the survey and informed consent on
the use of the data for study purposes. Intentionally,
the questionnaire was supplied at the end of the
periodic meetings (to maximize response), and
nuclei members filled it out autonomously and
anonymously (paper and pen system). Nevertheless,
in each meeting, a trained member of NA was
present for any clarification and support needed in
filling out the questionnaire.
2.1 The questionnaire
The structured questionnaire used in the survey
included 27 questions (non-symmetric and
symmetric Likert scale, dichotomous, and one open-
ended question) organized in four sections: section 1
including six questions aiming at exploring the
socio-demographic profile of the nuclei members;
section 2 included six questions aiming at exploring
aspects of doing business in the agricultural sector
such as overall business performance, investments,
employment and their expectations on business
activity over the next year; section 3 including 11
questions assessing NA approach impact on
products and services, access to raw materials and
finance, technology and production efficiency,
diversification of agricultural products and services
and other aspects; section 4 including five questions
aiming at gathering feedback on the innovative NA
Albania approach and perceived relative importance
of activities and services carried out.
The first survey round was conducted in 2018
and included 529 NA members. The second survey
round was conducted between 2019 and 2020,
totaling 1,000 members distributed across 90
micronuclei.
Cumulatively, 34% of the members joined NA
during 2015-2017 and about 66% during 2018-
2019. In this paper, only the second-round survey
results will be presented since the second round
includes the members of the first round. Ten direct
(semi-structured) interviews with nuclei members
and the NA team were conducted in 2023 to
understand better the sustainability of the effects of
the NA approach in the agricultural sector. The
information from the interviews will be blended into
the results obtained from the survey.
The information in the questionnaire was duly
coded and digitalized for processing purposes. The
database was cleaned from errors (typing) and
processed in the SPSS program, summarising
information using frequencies, net balances, and
simple averages (based on question typology). In the
case of missing values, only valid percentages are
presented (including the number of respondents for
that question).
2.2 Reliability Test
The reliability of the information gathered through
the questionnaires was evaluated using the
Cronbach Alpha test, [12]. Cronbach's (α) is a
widely employed metric for assessing the
consistency of responses within a set of questions
sharing a similar structure, often characterized by
using a symmetrical Likert scale with three
alternatives. In the context of survey data, an
acceptable range for Cronbach's alpha is considered
to be 0.7 ≤ α ≤ 0.8. Lower alpha coefficient values
(α ≤ 0.7) indicate a lower quality of survey
responses, while higher values (α ≥ 0.8) signal good
to excellent reliability in the obtained survey
responses.
3 Results
Participation in the survey was high, and the
response rate registered almost 100% of participants
in all nuclei (all submitted questionnaires were
returned fully or partly filled and were included in
the analysis). The Cronbach's (α) test results show
an excellent internal consistency of the information
collected with the survey presented in Table 1, with
small differences on a gender basis.
Table 1. Cronbach alpha tests by gender
Source: Author’s processing
General information on respondents. The data from
about 80 micronuclei are grouped into 17
aggregated nuclei, with the largest represented by
livestock and olive farmers (18% of total
respondents, respectively), as presented in Table 2.
Men predominate livestock and olive farming
activity (96% and 93%). Artisans represent the third
largest nuclei, with 15% of total respondents. In
Men Women
Section 2: P2.1; P2.2; P2.4 0.724 0.796
Section 3: P3.2-P3.10 0.969 0.953
Section 4: P4.2; P4.3 0.960 0.959
Cronbach's (α)
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contrast to livestock and olive farming activity,
artisans' activity is dominated by women at 99% of
the total respondents. Beekeeping, accommodation,
and food services account for about 10% of
respondents. Men mostly carry out beekeeping
activities, while in local tourism services, women
represent about 51% of nuclei members. It is to be
noted that there is no women's participation in
apple, onion, pomegranate, and vineyard farming.
The lower participation of women in some nuclei, as
shown in Table 2 and affirmed during the direct
interviews, is mainly associated with local
traditions, culture, and physical labor intensity
required by the activity to be performed.
Table 2. Respondents by nuclei and gender
Source: Author’s processing
In line with NA's general approach and working
philosophy, nuclei members are well distributed at
the region's level (covering 9/12 regions/qarks in
Albania). The highest concentration is noted in the
Korça region, aligning with the region's significance
in agriculture, livestock, and tourism activities.
Conversely, lower participation in nuclei is noted in
the regions of Tiranë, Durrës, and Vlorë, as
presented in Table 3. From a gender point of view,
women's participation is higher in the regions of
Korçë, Gjirokastër and Vlorë. On the contrary,
women's engagement in agricultural activities is
absent in Durrës and low in the regions of Elbasan
and Tiranë.
Nuclei members affirm being approached
directly by counselors (about 85%) and, to a lesser
extent, being invited by partners/colleagues,
advertisements, chambers of commerce, and others,
both for men and women (Figure 1). Access through
chambers of commerce might be improved,
indicating a potential lack of guidance regarding
development opportunities in the agricultural sector.
The rationale for joining NA is driven by the
possibility of networking and sharing experiences
(with a higher percentage among women), the
curiosity to explore the approach to business in the
agricultural sector, and the hope of getting loans or
subsidies (higher among men).
Table 3. Respondents by region and gender
Source: Author’s processing
Fig. 1: Rationale for joining NA by gender
Source: Author’s processing
Information on business activity. Since participating
in NA, nuclei members affirm witnessing positive
developments across several aspects of the business
as presented in Figure 2: overall business
performance and employment have improved
among men and women (net balances recorded
positive values). The positive effects on business
activity seem to be perceived more by women than
men (for both aspects, net balances recorded higher
values.
Fig. 2: Business activity aspects by gender
Source: Author’s processing
Nuclei No Frequency No %No %
96 10% 47 49% 49 51%
Apple Farmers 25 3% 25 100% 00%
Arable Crops 13 1% 11 85% 215%
Artisans 146 15% 11% 145 99%
Beekeepers 96 10% 84 88% 12 13%
Cherry Farmers 32 3% 28 88% 413%
Fig Farmers 32 3% 27 84% 516%
Greenhouses 56 6% 54 96% 24%
Livestock 176 18% 169 96% 74%
Local tourism services 11 1% 545% 655%
Olive Farmers 183 18% 170 93% 12 7%
Olive Oil Producers 11 1% 873% 327%
Onion Farmer 24 2% 24 100% 00%
Pomegranate Farmers 15 2% 15 100% 00%
Vineyards 46 5% 46 100% 00%
Wellness 38 4% 34 89% 411%
Total 1,000 100% 748 75% 251 25%
Nuclei members
Total
Men
Women
Regions No Frequency No %No %
Berat 135 14% 108 80% 27 20%
Durrës 15 2% 15 100% 00%
Elbasan 161 16% 157 98% 42%
Fier 157 16% 119 76% 38 24%
Gjirokastër 98 10% 59 60% 39 40%
Korçë 232 23% 132 57% 100 43%
Shkodër 135 14% 107 79% 28 21%
Tiranë 33 3% 30 91% 39%
Vlorë 33 3% 21 64% 12 36%
Total 999 100% 748 75% 251 25%
Nuclei members
Total
Men
Women
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The affirmed improvement in overall business
performance is reflected in a higher level of
investments implemented and positive expectations
for future developments (net balances shown in
Figure 3 are positive in both cases and higher values
reported by women). To a large extent, women's and
men's responses converge into channeling funds into
investments to increase production capacity and
technological upgrades.
Fig. 3: Typology of investments by gender
Source: Author’s processing
The NA support impact. The approach adopted by
NA for the agricultural sector support includes
bundled services and activities such as consultancy,
training and technical assistance, study visits,
engagement with businesses conducting similar
operations, information about financing
opportunities, and others. The members
participating in the survey assessed the importance
of these activities on a scale from 1 (least important)
to 3 (very important) and results are presented in
Figure 4. According to women respondents’, the
most important activities are related to monthly
consultative meetings, training, and technical
assistance (average 2.9). Male respondents assessed
the most important activity as facilitating
participation in fairs (to reach a broader market) and
less important benchmarking activities (2.4).
Participation in nuclei has contributed positively
to different aspects of the business (in particular
women–led businesses), as measured by the net
balances (Figure 5). Since participating in NA, both
categories of respondents affirm improved quality of
products, increased number of customers, and
annual turnover. The latter has enabled nuclei
members to increase the number of employees to
respond to the increased business activity (market
demand). In addition, with the support of technical
expertise, NA members affirm diversification of
product portfolio, better access to raw materials and
finance, and technological improvement. On the
contrary, the nuclei members affirm that
participation in NA has not brought new financial
opportunities (net balance is negative for men and
slightly positive for women), an aspect also stressed
during the interviews. While benefiting from a
positive momentum, information from interviews
pointed out that the COVID-19 pandemic caused a
deterioration of business activity in the agricultural
sector with a sluggish recovery to date.
Nevertheless, the network and collaborative
relationships established during the NA support are
still in place, mutually helping and exchanging
information and resources.
Fig. 4: Importance of services received by gender
Source: Author’s processing
Fig. 5: NA participation impact on different aspects
of the business (1)
Source: Author’s processing
The nuclei methodology. The NA methodology
includes blending a series of services and activities
to improve the business activity of its members (no
funding scheme is included). Participation in these
activities, and services were free for nuclei
members. Independent of gender, the advisory
monthly meetings are the most frequented activities,
followed by hands-on training and technical
assistance by national and international experts
(Figure 6). B2B meetings and benchmarking are
activities less frequented both by men and women.
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Fig. 6: NA activities and services assessment
Source: Author’s processing
The method and approach adopted by NA are
innovative in the Albanian context, and based on the
assessment of respondents, both are deemed
appropriate (net balances are positive as presented
in Figure 7). The appropriateness of the method and
approach is also confirmed by respondents agreeing
to recommend NA to a friend or a business they
work with (98% of male and 94% of female
respondents). Information from direct interviews
confirms the positive feedback and effectiveness at
a three-year distance.
Fig. 7: NA methodology and approach assessments
by gender
Source: Author’s processing
During the interviews, it was affirmed that the
techniques and lessons learned are still applicable
and shared with peers in the respective field. In
addition, the interviewees suggested that the NA
approach is very suitable, particularly for the micro–
small farmers / agricultural enterprises who have
limited capacities to access both information on
support schemes and modern technical knowledge
for the agricultural sector and in remote areas. At
the same time, during the interviews, it was stressed
that a higher intervention's effectiveness would be
achieved if a financing scheme was included. That
is particularly important for the micro- and small-
sized farmers who cannot access bank loans and
other more complicated financial instruments (often,
the requirements to access financing are impossible
to fulfill for this category).
4 Conclusions
Findings from primary data and direct feedback
from the interviews suggest the effectiveness and
sustainability of the results achieved with the
support of NA, affirmed by men and women. In
addition, NA fostered women's participation and
promotion of their activities (survey results show
that women respondents consistently assessed more
positively the effects achieved through participating
in NA). Respondents affirm a qualitative
improvement in products and services provided and
diversification of product/services portfolio to
satisfy customers' demands better. Improved supply
of products and services was welcomed and
reflected in an increase in the number of customers
and annual turnover of the involved enterprises in
the agricultural sector. Better access to raw
materials, increased production capacities due to
technological improvement, and increased
production efficiency overall contributed to an
ameliorated performance of the nuclei members. In
addition, the NA activity incentivized women's
participation and representation. Networking and
collaboration within and between nuclei members
are still in place through sharing important
information and experience, identifying novel
markets, and sharing/pooling resources.
The bundling of products and services in a single
assistance package is assessed as appropriate to
support micro, small, and medium-sized
farmers/enterprises in the agricultural sector. The
capillary intervention in a large part of the Albanian
territory (particularly in remote areas) is assessed to
have matched the interests and expectations of
participants during and beyond the project duration.
In addition, training and technical assistance
activities are valuable and should be provided
regularly by public authorities to guarantee the
legacy of authentic agricultural products and
services.
NA's innovative approach has proven effective
by providing collaborative platforms that support
the growth of agricultural businesses and foster
sustainability in the sector. The method and
approach might also be applicable in other sectors of
the economy, ensuring broad outreach and effective
and sustainable interventions. Nevertheless, these
efforts should go hand in hand with other policy
actions addressing major structural issues to harvest
the agricultural sector's embedded value potential.
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Acknowledgement:
The survey was carried out on behalf of NA
Nucleus Albania, and permission was granted to use
the database for study purposes.
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
The authors equally contributed to the present
research at all stages, from the problem formulation
to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflicts of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
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WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.133
Merita Toska, Etleva Delia, Ashli Sipri
E-ISSN: 2224-3496
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