An economic analysis of the Macedonian viticulture : a competitiveness view of the grape and wine sectors

Abstract: The study deals with an analysis of the competitiveness characteristics of the Macedonian grape and wine sectors during the period 1995 to 2004. The study is based on theoretical tool, the Diamond model (Porter, 1998, 127) on which qualitative and quantitative competitiveness parameters are incorporated. In addition the SWOT analysis has been used as a diagnostic tool for identifying the strengths, (sectors' areas that need further development, and area that could seriously impact the ability to stay competitive), and the problematic areas, which need additional adjustment to the market conditions. The research showed that the basic strengths of both sectors are due the existence of favorable factor conditions, and that the roots of the sectors weaknesses come from the lack of infrastructural investments (lack of capital) and application of inappropriate management strategies. Significant sectors benefit is the possibility given by the European Union, by which the wine production is classified as highly sensitive product. The specifically applied measures minimise disruption to existing wine markets and protect the Macedonian wine sector during a prolonged transition period to 2011, when the beneficial treatment will be terminated.