But, the trade exchange liberalization resulted with greater trade deficit, which reach its pick in 2007 and 2008 as a result of increased demand of import and higher prices of the stock exchange food products, as the same trend is noted in 2009. 

 Trade deficit, for 2009 reached US$ 96 million, as a result of higher import growth by 14 percentage points from the export growth.

Agriculture (including fisheries) is the third-largest sector after services and industry. The share of the agricultural sector in total GDP has remained relatively stable at around 6–8%, while together with the food processing industry this share increases to 10–12%.

According to data from the State Statistical Office, 514,375 hectares of arable land were registered in 2023. Within the structure of arable land that year, a decrease was recorded in orchards by 2.5% and vineyards by 4.6%.

Chart 1: Structure of land used by agricultural holdings in the RM – by regions (Source: RNM SSO)

Table 1: Structure of land used by agricultural holdings in the RM – by regions (Source: RNM SSO)

Of the total arable land in 2023, ploughland and gardens accounted for 416,300 ha (81%), meadows for 59,299 ha (11.5%), vineyards for 22,353 ha (4.3%), and orchards for 16,423 ha (3.2%).

In the structure of sown areas in 2023, a total of 269,834 ha were cultivated. Of these, 58% (156,649 ha) were planted with cereal crops, 18.9% (50,995 ha) with vegetable crops, 15.4% (41,647 ha) with forage crops, and 7.7% (20,793 ha) with industrial crops.

According to the data, sown areas in 2023 decreased by 2% compared to 2022.

The decline was recorded in cereal crops by 1.5%, vegetable crops by 1%, industrial crops by 7%, and forage crops by 2.5%.

Cereals account for the largest share of land under ploughland and gardens (67%). Industrial crops account for 10.5%, forage crops for 10%, and vegetables and legumes for 8.5%. Among individual crops, wheat is the most represented with 34.2%, followed by barley with 16.1%, maize with 10.8%, and tobacco with 7.5%. Alfalfa and clover are represented with 5.3% and 3.4%, respectively (Source: State Statistical Office).

In 2023, the number of employees in the agriculture, forestry, and fisheries sector (53,476) decreased by approximately 22.3% compared to 2022 (69,143).

The share of the agricultural sector in total employment has shown a declining trend: 13.9% in 2019, 12% in 2020, 11.5% in 2021, 10% in 2022, and 7.8% in 2023.

Table 2: Structure of employees in the sector (Source: SSO, RNM in Figures, 2023)

The population in rural areas has stagnated over the past decade in terms of its share in the total population. Employment opportunities in rural areas remain limited, with agriculture dominating as the primary economic activity. These factors restrict job creation in rural areas and constrain economic growth.

In the RN Macedonia, there are 157,931 agricultural holdings, which utilize 579,118 hectares of agricultural land. These holdings possess 453,652 livestock units and 55,440 tractors. A total of 441,741 household members are engaged in these individual agricultural holdings and business entities.

The number of active business entities in the agriculture, forestry, and veterinary sector in Macedonia is slightly declining. In 2015, there were 2,827 entities, representing a 0.5% decrease compared to the previous year. By 2025, the number fell to 2,287 entities, accounting for 3.2% of the total number of active business entities. At the same time, the share of micro and small enterprises is increasing, while the share of medium-sized and large enterprises is declining. Statistical data show that companies with up to 9 employees dominate, representing 87.6% of all entities in the sector.

According to data from the Structural Survey of Agricultural Holdings, one agricultural holding on average uses 1.8 hectares of agricultural land and has 2.14 livestock units.

The total agricultural land used by agricultural holdings amounts to 320,738 hectares, and 60.8% of holdings use up to 1 hectare of agricultural land. Of the total utilized agricultural land, 77.4% consists of ploughland and gardens. Agricultural holdings possess 381,361 livestock units in total.

On average, 2.5 persons are engaged per agricultural holding. Household members and employees in business entities generated 242,988 annual work units, while 1.36 annual work units are generated on average per agricultural holding.

One agricultural holding generates 0.76 annual work units per hectare of agricultural land on average, while 0.64 annual work units are required per livestock unit.

Chart 3: Structure of business entities in the agriculture, fisheries, and veterinary sector – by municipalities (Source: RNM SSO)

Chart 4: Age structure of employees in the agriculture, fisheries, and veterinary sector (Source: RNM SSO)

According to data on the age structure of employees in the agriculture, fisheries, and veterinary sector, the dominant group consists of workers aged 50–59 years (37.8%), followed by those aged 40–49 years (26%), 30–39 years (21.5%), and 20–29 years (6.5%). Employees under 20 years of age account for 0.4%, while those over 60 years account for 7.1%.

Chart 5: Structure of employees in the agriculture, fisheries, and veterinary sector in 2023 by level of education (Source: RNM SSO)

According to the latest available data from the State Statistical Office of the Republic of North Macedonia, the educational structure of employees in the agriculture, forestry, and fisheries sector (which together form the main component of the agri-food sector) is as follows:

- Higher education (associate’s degree and undergraduate): Around 4.5% of employees in this sector hold a university degree, master’s, or doctoral degree.

- Secondary education: The largest group. Around 35% of employees have completed secondary education (vocational, general secondary, or four-year secondary school).

- Primary education: Around 32% of employees have completed primary education.

- Incomplete primary education or no formal education: Around 28.5% of employees have less than primary education or no formal education.

•          Dominance of low educational attainment: The sector is characterized by a very high share of workers with low levels of education (primary or less). Together, these two categories account for more than 60% of total employment.

•          Comparison with other sectors: The sector significantly lags behind the average educational structure of the overall Macedonian economy, where the share of highly educated individuals is much higher.

•          Informal learning and traditional knowledge: This structure reflects the nature of agricultural work, where traditional knowledge and skills passed from generation to generation often play a more important role than formal education.

•          Gradual changes over time: A slow increase in the share of individuals with secondary and higher education has been observed, indicating a gradual modernization process, although it is occurring much more slowly than in industrial or service sectors.

This structure is one of the key indicators of the challenges facing the sector, including the need to improve productivity, introduce modern technologies, and attract young and educated workers.

By educational level, the largest groups consist of employees with four years of secondary education and those with primary education (8,342). They are followed by employees with higher education (1,549), three years of secondary education (1,080), associate’s degree (247), incomplete primary education or no education (265), and master’s degrees (48).

Structure by Gender

-          Men: Approximately 68.4% of total employees in the sector

-          Women: Approximately 31.6% of total employees in the sector

Structure by Working Time

-          Full-time employment: Around 53.7% of employees

-          Part-time employment: Around 1.9%

-          Occasional/temporary employment: Around 44.4%

Male dominance: The sector is clearly dominated by male workers, which is typical for agriculture as a physically demanding activity in many countries.

High share of temporary employment: A very high proportion of workers (44.4%) are engaged in temporary employment. This directly reflects the seasonal nature of agricultural work (harvesting, planting, etc.), where many workers are employed only during certain periods of the year.

Low share of part-time employment: Part-time engagement is minimal (1.9%), indicating that work in the sector is primarily organized around full-time or seasonal employment.

Informal sector: It is important to note that this structure—particularly the high share of temporary work—is often associated with the large informal sector in agriculture, where employment is not always registered or protected by formal labor contracts.

A tabular overview of gender structure and working time is presented below:

Out of a total of 12,155 employees in the agriculture, fisheries, and veterinary sector in 2024, 2,848 employees (23%) are women. Of the total number of employees, 5,078 are employed on a fixed-term basis (41.2%), while 7,077 are permanently employed.

-          Individual sector (family farms):

This sector performs the majority of seasonal work. Families hire temporary workers for harvesting, planting, and other seasonal activities. Around 70–80% of seasonal workers are engaged in the individual sector.

-          Veterinary services and fisheries:

These subsectors require significantlyfewer seasonal workers and employ predominantly permanent staff. Their share in the total number of seasonal workers is minimal.

-          Agricultural enterprises (legal entities – companies):

Professional agricultural enterprises (companies, farms) also hire seasonal workers, though to a lesser extent than family farms. Around 20–30% of seasonal workers are engaged in this sector (approximately 1,015–1,525 workers).

Declining employment in agriculture

A significant decline in employment in the agriculture, forestry, and fisheries sector is evident (22.3% between 2022 and 2023). The sector’s share in total employment has also decreased (from 13.9% in 2019 to 7.8% in 2023).

The analysis shows that workers aged 50–59 years dominate (37.8%), indicating a shortage of young labor.

More than 60% of employees have primary or incomplete primary education, while only 4.5% have higher education.

Seasonal and informal employment

A large share of workers (44.4%) are temporarily employed, reflecting the seasonal nature of agriculture, while the informal sector remains widespread.

Fragmentation of agricultural holdings

More than 60% of farms use less than 1 hectare of land. Micro-enterprises dominate (87.6% with up to 9 employees).

Changes in agricultural land use

Areas under vineyards, orchards, and industrial crops are declining. Among cultivated crops, cereals dominate (67% of fields and gardens).

-          Support for modernization and diversification

It is necessary to intensively introduce modern technologies (precision agriculture, automation) to increase productivity.

At the same time, full support should be provided for crop diversification (organic production, high-value crops).

-          Education and capacity building

Educational programs in agriculture need improvement, including training in modern techniques. Young people should be encouraged to enter the sector through scholarships, subsidies, and mentoring programs.

-          Increasing formal employment

Measures should encourage the registration of workers and the reduction of informal employment. The state should introduce economic incentives for agricultural holdings that employ permanent workers.

-          Support for agricultural cooperatives, producer organizations, and inter-branch producer associations

Encouraging association would facilitate shared use of machinery, procurement, and market access, while also facilitating access to financing for medium-sized and large farms.

-          Monitoring and analysis of trends

Databases should be regularly updated to support better policy planning and the preparation of studies on market opportunities and consumer needs.