July 2012
We introduce Possibilities for Development of Clusters in Montenegro Clusters are defined as sectoral and geographical concentration of firms (mainly SMEs) that produce a distinctive range of identical or similar goods and services whilst facing similar opportunities and threats/risks. Intensive activity in the process of cluster development in Montenegro started in 2011 when mapping was done on the whole territory of Montenegro; 15 diagnostic studies were made. In May 2012, the Government of Montenegro adopted the "Strategy of Sustainable Economic Growth Through the Introduction of Clusters Until 2016 " along with an action plan for its implementation. The action plan divides the activities from the strategy to be implemented into the following areas: incubation phase, ie, implementation of pilot projects (up to the end of 2012), capacity building phase (during 2013), and full implementation of the strategy (2014 to 2016). Pilot projects, where CEED Consulting is included as the Cluster Development Agent, cover two potential clusters: I. Cluster for the collection and processing of mushrooms, II. Cluster for the organic production of buckwheat.
Cluster for the collection and processing of mushrooms The cluster for the collection and processing of mushrooms is located in six municipalities of the northern region (Rožaje, Berane, Mojkovac, Kolasin, Bijelo Polje and Podgorica). The mapping process included 15 active companies in the business of collecting and processing mushrooms. This potential cluster is one of the largest mapped clusters in Montenegro. During the process of preparing diagnostic studies for this cluster, great potential for its development was observed. In Montenegro 13 types of mushrooms can be found, collected and processed; among these four species are dominant (about 80% of the total volume): Boletus edulis, Lactarius deterrimus, Morchella conica, Cantharellus cibarius. During the period 2009 - 2011, more than 3,000 tonnes of the aforementioned mushrooms were collected; every year more and more mushrooms are collected. This cluster may gain special advantage from exporting. During the period 2006-2011 almost every company had the opportunity to export a certain amount of mushrooms; some operated continuously during the whole of the observed perid. Looking back over the period 2006- 2008, exports were fairly stable. However, in 2009, the level of exports grew by 53%. Although it fell in 2010 (by almost 10% in comparison with 2009) due to the effect of the crisis in key importing countries, it is still significantly higher than it was in comparison with 2008 (57%). Considering the possibilities for the development of the cluster, which means primarily the development of the companies that make up the cluster, significant results can be achieved in the area of exports. This is because mushrooms from Montenegro are of high quality and their price in foreign markets (in retail) can reach 5-10 times more than they can in Montenegro. Of the total amount of collected mushrooms, about 40% are mushrooms for processing, while 60% are sold as fresh mushrooms. Over 45% of the total quantity of mushrooms were sold on the local market at prices ranging from 4-7 Euros / kg, while 55% were exported and reached prices of up to 20 Eur/kg (France). Table 1. Type of mushroom Year
Total
2009
2010
2011
Boletus
690 t
515 t
1.365 t
2.570 t
Cantharellus cibarius
240 t
270 t
462 t
972 t
Morchella conica
32 t
25 t
57 t
114 t
Craterellus cornicopiodes
15 t
12 t
32 t
59 t
-
10 t
10 t
1.926 t
3.725 t
Lactarius deterrimus TOTAL
986 t
822 t
Source: Agency for Environmental Protection of Montenegro
Cluster for organic production of buckwheat This cluster is located over seven villages in the territory of the Municipality Pljevlja. The cluster’s main product is flour obtained by grinding grain. Today, this cluster is made up of 26 manufacturers, represented by the same number of households. The main activity is agriculture and all of those who are involved are directly dependent on this type of production. Potentially there is also a cluster made up of NGO "Zdravko Zrno", NGO "Stara Kosanica" and NGO "Rodni Glibaći“. The potential for the production of buckwheat in this area is great. Capacity and income keep increasing. Arable land in the Municipality of Pljevlja increased by up to 245% during the period 2008 - 2010. In this cluster a trend of constant increase is evident in arable land area sown by buckwheat, a crop which increases the yield. In 2008 buckwheat covered 12 acres; only three years later the area increased to nearly 30 acres. Also, the number of producers of organic buckwheat production has nearly doubled from 14 in 2010 to 26 today. All these facts speak in favor of agricultural production and its potential for development and investment. The high nutritional value of cereals is also well known. Therefore, the local name for buckwheat is "golden grain". The price of buckwheat flour in relation to widespread wheat flour is several times higher in retail. Export activities have also recorded a positive trend. During the period 2006 - 2010, exports increased; export markets included mainly Albania, Germany, Serbia and Bosnia and Herzegovina. Table 2. Cereals and cereal preparations (exports) Exports Cereals and cereal preparations (in 000 EUR)
2006
2007
2008
1,843
1,037
1,734
2009
2010
2011
2,505
2,523
3,886
Source: Monstat
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