Food prices in Montenegro are currently stable, with an adequate supply of basic food items, and no significant price changes are expected soon, said Milutin Đuranović, president of the Agriculture and Food Industry Committee at the Chamber of Economy of Montenegro (PKCG) and owner of the Lazine dairy. He commented on data from the United Nations Food and Agriculture Organization (FAO), which showed that global food prices in April reached their highest levels in the past two years, particularly for meat, milk, and dairy products.
The FAO food price index averaged 128.3 points in April, one percent higher than in March, marking the highest level since April 2023. Meat prices increased sharply by 3.2 percent compared to March, mainly due to a rise in pork prices. Dairy products also saw a significant price increase of 2.4 percent, with butter prices reaching a record high due to shrinking stocks in Europe. Grain prices rose by 1.2 percent compared to March.
Đuranović noted that the region currently has an abundance of milk and favorable spring weather conditions point to a good year for livestock feed production, which supports low production costs and good yields, reducing the likelihood of price increases for dairy products.
Regarding resilience to external shocks, Đuranović emphasized that production alone is not the goal—it only makes sense if what is produced can be sold. He stressed that promoting domestic production is effective only if domestic product consumption is also encouraged. Without consumer demand, investments in production are wasted. Market signals dictate what and how much to produce, making consumer preference for local products crucial for the sector’s development.
Montenegro’s rising food imports indicate a flawed approach to agricultural markets, according to Đuranović. Last year, the country spent 808 million euros on food imports, excluding beverages and tobacco, which is four percent more than the previous year. He blamed policymakers for this situation, stating that liberal market policies are unsuitable for agriculture. Countries typically protect their agricultural production through controlled market measures to maintain food security.
Four groups influence the reduction of imports: the domestic agricultural and food sector, the government, the retail sector, and consumers. Domestic products offer advantages such as freshness and absence of genetically modified ingredients, which favor them over imports.
The government’s role is critical and can influence import reduction and boost domestic production through budget support, administrative measures, and marketing campaigns. Đuranović pointed out that agricultural development correlates directly with the size of the agricultural budget. He noted that EU farmers heavily rely on subsidies, and Montenegro’s agricultural budget needs significant increases to support growth rather than just basic reproduction. Other tools include tariffs, quotas, and anti-dumping duties, as well as marketing efforts to promote local products.
He highlighted that some imported products are up to 40 percent cheaper than in their countries of origin, harming domestic producers and the state. Despite this, the government has yet to act decisively on this issue.
Opening domestic retail chains to local products is key to reducing imports. Đuranović warned that if retailers block local agricultural products, domestic agriculture will collapse. Conversely, if they give prominence to domestic goods on their shelves, the sector will grow rapidly. Consumer awareness of the price-quality ratio is essential, but visibility of local products in stores is equally important.
He noted that unlike developed countries where imports occupy marginal shelf space, Montenegrin stores predominantly offer imported products. Đuranović called on retailers to support domestic producers, expand shelf space for local goods, increase sales, and help develop rural areas.
He also emphasized that Montenegro lacks a strong national consumer consciousness or pride in buying domestic products compared to countries like Spain, Italy, France, or Croatia. The state could accelerate the development of such consumer awareness through systematic marketing campaigns, encouraging people to understand that buying local food is an investment in their country’s future, while purchasing imports benefits other nations.
Predrag Marojević, director of Monteklas, a company importing and distributing flour and bakery products, reported stable prices without significant increases. He noted that flour prices have fluctuated slightly by two to three percent since the start of the year. Global factors like the Russia-Ukraine conflict influence prices, but overall stability is maintained.
Marojević suggested that establishing strategic reserves of basic foodstuffs and properly managing them could help stabilize the market in the medium term, without creating monopolies. Currently, domestic flour production meets only about 20 percent of market demand.
Đuranović highlighted Montenegro’s potential to substitute imports with domestic production. Currently, for every euro earned from agricultural production, 1.33 euros of agricultural products are imported. Increasing domestic agricultural production by 17 percent could shift this balance in favor of local products, helping reduce the country’s trade deficit without increasing exports.
He stressed that if every citizen spent one euro daily on domestic food, 237 million euros would remain in Montenegro, cutting food imports by a third. Currently, 80 percent of money spent on imports leaves the country, while 80 percent spent on local products stays in the economy.
