Montenegro has imported around €11 billion worth of food since independence, while the number of agricultural holdings has declined by more than 30%, despite an estimated €400 million investment pipeline through 2027. An analysis by the Montenegro Chamber of Commerce estimates that food exports over the same period were roughly ten times lower than imports, producing a cumulative food trade deficit approaching €10 billion.
The number of agricultural holdings has dropped from 38,798 to 26,711 over about 15 years. At the same time, tourism growth is estimated to increase annual food-import requirements by 20%-25%, as hotels, restaurants and seasonal visitors generate demand that domestic producers and processors cannot fully meet.
€400 Million Agricultural Investment Pipeline
Agricultural investment from international institutions, the state and private sector through 2027 is estimated at around €400 million. The funding includes approximately €97 million through IPARD II and III, €45 million from World Bank MIDAS programmes, around €25 million through IFAD, and roughly €40 million from EIB, EBRD and bilateral financing, alongside other public and private investment.
Despite these programmes, Montenegro’s agricultural base remains fragmented, with many small farms, divided land plots and relatively low levels of mechanisation and processing capacity. These conditions make it difficult for individual producers to supply the volume and consistency required by major hotels, supermarkets and food distributors.
Tourism Creates a Large Domestic Food Market
Montenegro imports substantial quantities of meat, dairy products, fruit, vegetables, processed foods and beverages, despite the sizeable domestic market created by tourism. Hotels require consistent deliveries during defined periods, while small-scale production can fluctuate with weather and seasonal conditions. Importers can consequently offer more predictable logistics even where local products are available.
Stronger links between agriculture and tourism could provide producers with a stable commercial customer base. Hotels, resorts and restaurants collectively purchase significant volumes of food, while longer-term contracts could provide farmers with greater certainty to invest in greenhouses, irrigation, livestock, cold storage and processing. Supermarket chains could similarly provide stable demand, although suppliers must meet requirements for quality, traceability and delivery schedules.
Processing and Rural Labour Remain Constraints
Agricultural value depends not only on primary production but also on slaughtering, packaging, refrigeration, storage, certification and distribution. Limited processing infrastructure makes it harder for domestic producers to compete with integrated international suppliers. The decline in agricultural holdings also reflects demographic pressures in rural areas. Younger workers have moved towards Podgorica, the coast or abroad, while agriculture competes with construction, tourism and services for labour. Higher wages in those sectors can reduce the attractiveness of farming unless productivity and farm incomes increase.
EU Accession Adds Market Opportunities and Competition
EU accession could provide Montenegrin farmers with access to a larger market and additional agricultural support, while also increasing competition from EU producers. IPARD and other programmes are intended to support farm modernisation, processing capacity and food-safety standards. Smaller farmers can nevertheless face difficulties preparing projects and financing their own contributions before grant reimbursements.
Access to credit remains another factor. Small farms can face higher perceived lending risks because of uncertain cash flow and limited collateral, making guarantee schemes, concessional loans and agricultural insurance relevant to investment.
Climate Risks Increase Investment Needs
Drought, higher temperatures and irregular rainfall can reduce agricultural output and increase irrigation requirements. Investment in water management, protected cultivation and more resilient crops will therefore be important for reducing dependence on imported food. Montenegro is unlikely to achieve food self-sufficiency, and imports will remain necessary given the country’s small market and limited agricultural land.
The cumulative €11 billion food-import bill indicates the scale of domestic demand currently being supplied from abroad. The €400 million investment pipeline provides funding for agricultural development, while the key investment areas include larger and more productive farms, processing capacity and supply chains capable of consistently serving Montenegro’s tourism and retail sectors.
