Hand holds various herbs (Albania)

Albania Producer of natural extracts promotes organic farming

Europe
GIZ
Classic
Sustainable supply chains

In Albania's rural regions, jobs are few and far between. The lack of economic prospects is causing more and more people to migrate to cities or leave the country. But farming, particularly the sustainable cultivation of medicinal and aromatic plants, offers great potential for generating new sources of income. FLAVEX Naturextrakte GmbH, a German manufacturer of plant extracts, and its Albanian supplier NATURAL ALBA shpk have achieved this in a development partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and have strengthened their own supply chain in the process. On the Cape of Rodon peninsula, they established an organic and socially sustainable farming enterprise in accordance with EU standards. The develoPPP project was financed by the German Federal Ministry for Economic Cooperation and Development (BMZ).

With more than 360 indigenous species, the Cape of Rodon on the Adriatic coast offers vast biodiversity, making for excellent conditions for organic farming. However, many areas lie fallow and have been used primarily for pastoral farming since the end of the socialist regime in 1990. In the traditional family structures, working people – most of them men – eke out a living, mainly from fishing. Other than that, the region offers very few economic prospects. Many men migrate to the cities or work as seasonal labourers in Italy. The cultivation of aromatic and medicinal plants such as thyme, balm and oregano, which grow wild in the region and which people collect for their own needs, offers new employment opportunities, especially for women. The develoPPP project aims to promote organic cultivation of medicinal and aromatic plants and conserve and strengthen local resources. FLAVEX thus secures a stable supply source for the sought-after herbs, contributing to long-term business opportunities and economic development in the region.

The aim of the project partnership was to conserve the natural resources and biodiversity on the Cape of Rodon peninsula and establish organic and socially sustainable farming in line with EU standards for organic farming. To this end, the following measures were implemented between 2016 and 2019 with a total budget of EUR 475,000:

  • Lease of around 22 hectares of plots on previously uncultivated land belonging to smallholder families.
  • Test cultivation of additional plant varieties in a newly created biodiversity nursery.
  • Training of local smallholders in good agricultural cultivation methods.
  • Provision of EU organic seed and seedlings.
  • Financing of a cutting instrument for high-quality processing of the raw materials.
  • Purchase of a minibus for female workers.
  • Investment in off-road work machines and accessories.

 

NATURAL ALBA leased the land and carried out the test cultivation. FLAVEX financed the technical equipment for the harvesting measures and processing activities, provided the seed and organised the training courses. FLAVEX also established organic operations for EU organic cultivation of oregano and lemon balm on the leased properties, for which GIZ ensured the water supply. FLAVEX and GIZ joined forces to introduce a voluntary organic code of conduct among the participating smallholder families.

Our joint project has shown that organic cultivation of medicinal and aromatic plants creates new skilled jobs in Albania and ensures our long-term supply of raw materials.
Dr Dieter Gerard, Managing Director of FLAVEX Naturextrakte GmbH
Field workers grow spice and medicinal plants (Albania)
The cultivation of aromatic and medicinal plants is creating new employment opportunities in Albania, especially for women. Photo: Natural Alba
Organic oregano grows on a field (Albania)
The fields on the Cape of Rodon are farmed in line with EU organic farming standards. Photo: FLAVEX Naturextrakte GmbH

Ten percent of the cultivated area on the Cape of Rodon is now used for organic farming of medicinal and aromatic plants. Natural Alba and the smallholder families involved are certified under EU standards to farm organically the areas leased and cultivated through contract farming, thereby guaranteeing companies like FLAVEX high-quality organic products. Thanks to the medicinal and aromatic plants produced by the smallholders, who are either employed or work as contract farmers, the average annual income from formal labour has doubled, from around EUR 800 previously to EUR 1,600, as women are now also contributing to income to a greater extent.

 

  • 30 women farmers are permanently employed with the company
  • 8 smallholder families are farming 8 hectares of land on a contract basis
  • A total of 64 hectares are certified according to EU standards for organic farming

DEVELOPMENT SUCCESSES

Workers

More employment

Stacked coins

Higher family income

Globe with pin

Enhanced economic attractiveness of the region

BUSINESS SUCCESSES

Factory, people and truck in a circle

Expansion of supply chains and higher-quality organically farmed raw materials

Woman working at a loom

develoPPP Classic

develoPPP Classic is aimed at medium-sized and large companies that want to invest sustainably in a developing or emerging country and expand their operational activities locally. Suitable projects receive technical and financial support of up to two million euros in public funding.

FLAVEX logo

FLAVEX Naturextrakte GmbH

FLAVEX Naturextrakte GmbH is a small and medium-sized enterprise (SME) that produces extracts from plant-based raw materials. Since 1986, it has specialised in the gentle production of natural fragrances and active ingredients for the cosmetics, perfumes and food industries through extraction using supercritical carbon dioxide.

GIZ logo

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

As a German federal enterprise, GIZ has been a service provider in the field of international cooperation for sustainable development and international education work for more than 50 years. It supports the economic development and promotion of employment and develops strategies for sustainable business together with the private sector.

Flavex logo
Carsten Quirin Rohstoffeinkäufer FLAVEX Naturextrakte GmbH
Marina Rivero Reimers
Marina Rivero Reimers Project Manager develoPPP Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH