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Export-Oriented Wine Grape Farming with Geographical Indications

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Export-Oriented Wine Grape Farming with Geographical Indications

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Beverages
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in ROI)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Responsible Consumption and Production (SDG 12)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Life on Land (SDG 15) Industry, Innovation and Infrastructure (SDG 9)

Business Model Description

Register Geographical Indications (GIs) and establish organic-certified vineyards to supply premium wineries through direct export contracts. Focus on land consolidation, sustainable viticulture, and modern vineyard restructuring. Invest in organic certification, premium branding, and value-added processing (organic grape juice, dried grapes) to enhance export competitiveness.

Expected Impact

Export-oriented wine grape farming transforms the wine sector by promoting organic-certified, premium viticulture, and enhancing competitiveness.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Republic of North Macedonia: Vardar
  • Republic of North Macedonia: Southeastern
  • Republic of North Macedonia: Skopje
  • Republic of North Macedonia: Eastern
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
Country's agricultural sector requires modernization and sustainable practices. It needs integrated support for adopting eco-friendly technologies, improving resource efficiency, and scaling organic production. Emphasis should be placed on reducing chemical use, enhancing biodiversity, and empowering women farmers to lead in climate-smart practices . (1, 2)

Policy priority
Strategy for Viticulture and Winemaking 2023-2033 prioritizes vineyard replanting, premiumization, and market diversification, aligning with the goals of and for export-driven agribusiness growth. (1,3,4,5,6)

Gender inequalities and marginalization issues
Despite comprising 39% of the agricultural workforce, women manage less than 10% of agricultural holdings, highlighting a significant gap. Traditional norms often relegate women to unpaid family labor, limiting their access to land ownership, resources, and decision-making roles. Additionally, women have restricted access to education, information, healthcare, and public services, exacerbating their social exclusion and economic vulnerability. (46)

Investment opportunities introduction
Food and beverage sector offers broad investment opportunities in processing, packaging, and value-added production. The country has seen increased interest from international partners, with investments targeting modernization, supply chain integration, and product diversification (1, 7)

Key bottlenecks introduction
Outdated infrastructure, limited access to finance, and gaps in quality standards and certification. These challenges hinder competitiveness, scalability, and integration into high-value export markets, especially for small producers and rural enterprises. (1, 2)

Sub Sector

Beverages

Development need
The Republic of North Macedonia’s beverage sector, particularly wine, needs to transition from bulk exports to premium, value-added products. Introducing Geographical Indications (GIs) and organic certification can increase global competitiveness and align with shifting consumer preferences for sustainable, high-quality beverages.

Policy priority
NDS 2024-2044, Smart Specialization Strategy and National Strategy for Viticulture and Winemaking 2023-2033 prioritize high-value wine production, export market expansion, and sustainable farming practices. Country's main policy is to support export growth and improve competitiveness of the wine sector. (1, 2, 3)

Gender inequalities and marginalization issues
Women are underrepresented in vineyard management and high-level decision-making in the wine industry. Expanding training programs, financial support, and entrepreneurship opportunities for women and small-scale producers can promote inclusivity and sectoral growth (43, 44, 46)

Investment opportunities introduction
Increasing demand for organic and sustainably produced beverages presents opportunities for investment in organic viticulture and premium winemaking, and international market positioning. Expanding production capacity, certification infrastructure, and direct export contracts with boutique wineries can drive long-term profitability. (7, 8)

Key bottlenecks introduction
Key challenges include fragmented vineyard ownership, slow adoption of organic certification, limited access to financing for small producers, and vulnerability to climate variability. Strengthening financial and financial incentives, technological modernization, and market access strategies will be critical for sectoral expansion. (9)

Industry

Alcoholic Beverages

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Export-Oriented Wine Grape Farming with Geographical Indications

Business Model

Register Geographical Indications (GIs) and establish organic-certified vineyards to supply premium wineries through direct export contracts. Focus on land consolidation, sustainable viticulture, and modern vineyard restructuring. Invest in organic certification, premium branding, and value-added processing (organic grape juice, dried grapes) to enhance export competitiveness.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 50 million - USD 100 million

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

5% - 10%

The wine market in North Macedonia is projected to reach $297.8 million in 2025. In 2023, North Macedonia exported $63.8 million worth of wine, positioning it as the 27th largest wine exporter globally. (13, 14)

The country's wine market is expected to experience a CAGR of nearly 4.8% through 2029, with an incremental increase of $178.5 million. (16)

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

10% - 15%

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

> 25%

Organic-certified wine grapes command 30-50% higher prices than conventional grapes, enhancing profitability. (16)

Comparable organic vineyard investments in Southern Europe report ROI of 10-12% p.a., aligning with expert projections for North Macedonia’s premium wine segment. (17)

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Newly planted vineyards require 3-4 years to reach full production, impacting initial revenue streams. (19)

The transition to organic viticulture takes at least 3 years for full certification, delaying access to premium pricing. (19)

Establishing Geographical Indications and securing premium export contracts typically takes 5+ years. (47, 48)

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

Vineyard modernization, organic certification, and Geographical Indication registration require high upfront investments, delaying returns. (40)

Market - Highly Regulated

Compliance with EU organic standards, Serious country-name problems with Geographical Indications, and export requirements adds complexity and costs. (22)

Business - Supply Chain Constraints

Limited processing infrastructure, labour shortages and dependency on external certification bodies may slow scalability. (41)

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Export-Oriented Wine Grape Farming reduces chemical pesticide and fertilizer use through organic farming, preserving soil health, biodiversity, and water quality while mitigating climate change impacts. (49, 50, 51, 52)

Organic-certified vineyards create jobs, increase farmer incomes, and promote sustainable agribusiness, supporting rural communities and preventing depopulation. (42)

When harmful chemicals in grape production are eliminated, organic-certified wine grapes ensure safer, high-quality wine products for consumers while promoting sustainable consumption practices (49, 50, 51, 52)

Gender & Marginalisation

Women are underrepresented in vineyard management and wine production. Targeted support, training, and financing can enhance their role in the sector. (43)

The wine sector can provide stable jobs for marginalized rural populations, particularly young people and women. It will reduce the need for immigration and foster local economic growth. (43)

Expected Development Outcome

Export-Oriented Wine Grape Farming promotes organic viticulture, reducing pesticide use, improving soil health, and enhancing biodiversity while aligning with EU sustainability goals.

Expanding organic-certified vineyards increases farmer incomes, supports smallholder integration into high-value markets, and creates stable rural jobs. (42)

Organic certification ensures safer, chemical-free wine production, benefiting both producers and consumers while promoting sustainable consumption practices. (3)

Gender & Marginalisation

Targeted training and financial incentives encourage more women to engage in vineyard management, winemaking, and agribusiness leadership roles. (43)

Expanding organic viticulture provides stable employment opportunities for marginalized groups, including rural youth and women, reducing migration and economic disparities. (3)

Primary SDGs addressed

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

8.2.1 Annual growth rate of real GDP per employed person

Current Value

Annual growth rate of 3%. (45)

Target Value

Annual growth rate is targeted to reach 4.7%, in line with the National Development Strategy 2024-2044. (1)

Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production

12.2.2 Domestic material consumption

Current Value

In 2019, domestic material consumption was 8.6 t per capita. (27)

Secondary SDGs addressed

Life on Land (SDG 15)
15 - Life on Land
Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

Directly impacted stakeholders

People

Rural vineyard workers (men and women, ages 18-60) benefit from stable employment and higher wages. Smallholder grape growers (primarily middle-aged, 35-60) gain access to premium markets through organic certification and export contracts.

Gender inequality and/or marginalization

Women (18-50) in vineyard management and winemaking gain employment and leadership opportunities.

Planet

Organic viticulture reduces chemical inputs, improving soil health, biodiversity, and water quality. Sustainable land management mitigates climate change effects by enhancing vineyard resilience and reducing carbon emissions.

Corporates

Wineries and wine exporters benefit from high-value organic grape supply.

Public sector

The Ministry of Agriculture, Forestry and Water and regulatory bodies (State Office for Industrial Property) oversee organic certification and GIs, while government agencies provide financial incentives and infrastructure support for vineyard modernization.

Indirectly impacted stakeholders

People

Consumers (men and women, all ages) benefit from responsible consumption of organic, chemical-free wines. Local communities (all ages) experience economic growth through job creation and improved rural infrastructure.

Gender inequality and/or marginalization

Women entrepreneurs in agribusiness (25-50) gain new opportunities in vineyard ownership, processing, and wine distribution. Youth in rural areas (18-30) benefit from skills development and career pathways in sustainable agriculture.

Planet

Reduced pesticide and fertilizer use lowers groundwater contamination and improves biodiversity in vineyard regions. Sustainable farming mitigates climate change effects, improving long-term land productivity.

Corporates

Wine tourism businesses (hotels, restaurants, tour operators) benefit from increased demand for organic and premium wines, strengthening North Macedonia’s global reputation. Logistics providers gain from expanded wine exports.

Public sector

The government budget benefits from increased export revenues and international trade agreements. Agricultural research institutions receive incentives to develop and promote sustainable viticulture practices.

Outcome Risks

Increased water demand for organic viticulture may reduce resources in drought-prone parts, leading to potential conflicts over water use among farmers and local communities.

The high costs of organic certification and vineyard conversion may exclude small-scale farmers, leading to market concentration among larger producers and reducing equitable industry participation.

Seasonal labor demand in vineyards may lead to unstable employment conditions, creating income insecurity for rural workers and increasing reliance on temporary labor.

Gender inequality and/or marginalization risk: Without targeted inclusion policies, women and smallholder farmers may face barriers in accessing financing, training, and leadership roles.

Impact Risks

If organic certification adoption is slow, conventional farming practices may persist, limiting the expected reduction in pesticide use and environmental benefits.

Limited access to financing for small-scale farmers may slow vineyard modernization, reducing the sector’s ability to scale organic viticulture and meet export demand.

If country's organic wine sector fails to differentiate itself in global markets, price competition from larger wine-producing countries may undermine profitability.

Increased climate variability (droughts, temperature fluctuations) may reduce grape yields, affecting the long-term sustainability and profitability of organic vineyards. (19)

Gender inequality and/or marginalization risk: Without targeted support, women and smallholder farmers would struggle to compete with larger enterprises, limiting their participation

Impact Classification

C—Contribute to Solutions

What

Export-Oriented Wine Grape Farming with Geographical Indications generates positive outcomes by promoting organic viticulture, rural employment, and export competitiveness.

Who

The primary beneficiaries include smallholder farmers, vineyard workers, and women in agribusiness, who face structural barriers to financing and market access.

Risk

Impact realization faces challenges from climate variability, slow certification uptake, financial barriers for small producers, and trade dependency.

Contribution

Without this initiative, North Macedonia’s wine sector would remain heavily dependent on bulk wine exports with limited value addition.

How Much

Expected employment growth includes few thousands of rural jobs, with 30-50% price premiums for organic grapes, improving farmer livelihoods and sustainability (44)

Impact Thesis

Export-oriented wine grape farming transforms the wine sector by promoting organic-certified, premium viticulture, and enhancing competitiveness.

Enabling Environment

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Policy Environment

The National Development Strategy 2022-2024 prioritizes agribusiness modernization, export diversification, and sustainable agriculture, supporting investment in organic-certified viticulture. (1)

The Smart Specialization Strategy identifies wine production and agribusiness as key sectors for innovation and export growth, emphasizing organic certification, technological modernization, and value-added processing to strengthen competitiveness. (2)

The strategy on viticulture and winemaking focuses on vineyard modernization, Geographical Indications, organic certification, and export market expansion, aligning with the business model's premiumization strategy. (3)

The Export Promotion Strategy also aims to enhance country's presence by facilitating direct export contracts, branding initiatives, and streamlined certification for premium wine exports. (5)

Financial Environment

Financial incentives: Even though the wine sector can rely solely on commercial financing, there is a possibility for micro, small and medium-sized enterprises to apply for subsidized loans from the Development Bank of North Macedonia. (28)

Fiscal incentives: There is a 0% excise tax on wine sales (Art. 58 of Law of Excise Taxes). Direct payments for financial support are above 12,000 MKD for one hectare under vineyards, The amount of additional direct payments is >28,000 MKD per hectare, or above 48,000 MKD per hectare, for family farms. (9)

Regulatory Environment

The Law on Wine regulates quality standards, production practices, and Geographical Indication labeling, which are essential for enhancing the competitiveness and export potential of wine grape farming. (4)

Law on Excise Taxes provides for a 0% excise tax on wines to encourage the wine sector growth. (6)

The Law on Organic Agricultural Production sets the legal framework for certification, labeling, and compliance, enabling organic wine grape farmers in North Macedonia to access premium export markets and meet international standards. (7)

The Law on Agriculture and Rural Development establishes the framework for planning, supporting, and regulating agricultural activities, including measures that enhance the competitiveness of export-oriented sectors like wine grape farming. (8)

The regulation on detailed criteria for direct payments to agricultural producers of grapes stipulates the criteria for eligibility and amount of financial support for wine producers. (9)

Marketplace Participants

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Private Sector

Bovin, Tikveš, Kamnik, Stobi, Chateau Sopot are leading wineries investing in premium, organic, and export-driven wine production in North Macedonia

Government

Government: Ministry of Agriculture, Forestry, and Water, State Inspectorate for Agriculture, Agency for Financial Support to Agriculture and Rural Development

Multilaterals

The European Union (IPARD 3 2021-2027),EBRD provide funding, technical assistance, and policy alignment for sustainable viticulture and organic certification.

Non-Profit

Slow Food Macedonia and the Wine Association of North Macedonia promote sustainable viticulture, organic practices, and Geographical Indications to enhance market access.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Republic of North Macedonia: Vardar

The Vardar region (part of Povardarie) is country's largest and most important wine-producing area, benefiting from a continental-Mediterranean climate with hot summers and mild winters. The Vardar region has over 10,900 ha under vineyards. (15, 21, 24)
rural

Republic of North Macedonia: Southeastern

The Southeastern region has over 5,780 ha of land under vineyards and accounts for 34.5% of the total wine production (15,20).
rural

Republic of North Macedonia: Skopje

The Skopje region has over 5,780 ha of land under vineyards. It accounts for 3.3% of the total wine production. (23)
rural

Republic of North Macedonia: Eastern

The Eastern region produces 5.8% of the total wine production and has 1,571 ha under vineyards. (15, 20)

References

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