30 April 2019 - Montenegrin domestic food producers are confronted with a big competition of foreign products, which is why local businesspeople consider that they need the help of the state to better position domestic gastronomy in tourism, as well as to strengthen competitiveness, says the report from Montenegrin Chamber of Economy.
"The fact is that we import a lot of products for which we have comparative advantages, so that domestic food production is confronted with great competition from foreign products," said the representatives of the Montenegrin Chamber of Economy in an interview for Mina Business Agency.
The businesspeople from Montenegro, as assessed by the Chamber, are very well aware that they have to increase production and produce high-quality products, as well as to determine a price that must be competitive both on the domestic and foreign markets. Still, because of the high competition of international products, they feel that they need the help of the authorities for better positioning in the domestic market, supplementing the tourist offer with domestic gastronomy, and to strengthen the competitiveness.
"The coverage of import by export, high import dependence and the growing deficit are characterized by the overall foreign trade operations of Montenegro, especially in the case of food trade, which is directly related to the growing tourist demand. This requires higher imports of food especially in the summer months, as often installed capacities cannot satisfy the demands of tourists, which is confirmed by the fact that about a quarter of the total import of food relates to July and August," said the representatives of the Chamber of Economy.
According to the statement by the representatives of the Chamber, during the tourist seasons, domestic businesses do increase production and placement, which is, in fact, the so-called "export on the threshold" or "invisible exports", but the value of this export cannot be precisely determined, so that there is actually no coverage of import by export "real data".
"Bearing in mind the need for better positioning and placement of domestic products, the project "Buy Local" was launched last year with the aim to improve the position, visibility and placement of domestic products in the Montenegrin market, by special marking of products in the facilities of large retail chains," the Chamber specified. The representatives of the Chamber also emphasized that this is a long term product which has already shown results, and it will be continued in the future as well.
