#12 Serbia Agriculture Bulletin, BFC

09/2016

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12 S er b i a Agriculture Bulletin Canada and Serbia Work Towards Increasing Agri-Trade Meat and Dairy Exports to BiH to Resume Following Lumpy Skin Disease Outbreak EU: Serbia not Ready to Receive IPARD Funding Reduced Custom Duties for Pig Imports Extended until the End of the Year

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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7)

Canada and Serbia Work Towards Increasing Agri‐Trade ............................................................... 2 Lebanon Interested in Importing Live Animals and Meat ............................................................... 2 Meat and Dairy Exports to BiH to Resume Following Lumpy Skin Disease Outbreak ..................... 2 Ministry of Agriculture Committed to Online Subsidy Application Platform .................................. 2 Agriculture Budget to Increase by EUR 25.7 Million ....................................................................... 3 Belarus and Serbia to Cooperate in Several Agro‐Sectors .............................................................. 3 Dutch Embassy Organizes Dairy Cattle Breeding Seminar in Vojvodina ......................................... 3

Foreign Aid ................................................................................................................. 4 8)

EU: Serbia not Ready to Receive IPARD Funding ............................................................................. 4

Private Sector .............................................................................................................. 4 9) 10) 11) 12) 13)

Reduced Custom Duties for Pig Imports Extended until the End of the Year ................................. 4 Agricultural Output Increases 13.4% from 2007‐2015 .................................................................... 4 German Pork Producer to Invest EUR 300 Million Over Five Years ................................................ 4 Serbian Meat Producer to Export to Russia and EU ........................................................................ 5 Beekeeper Association to Build Packaging Facility .......................................................................... 5

Note: The Agriculture Bulletin presents a monthly roundup of headlines and news stories related to Serbia’s agricultural sector.

This bulletin is prepared by Business & Finance Consulting—a Swiss‐based development finance consulting company. Currently, BFC is implementing “Development of Financial System in Rural Areas in Serbia” programme for KfW.

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BFC. Agriculture Bulletin

State Initiatives 1)

Canada and Serbia Work Towards Increasing Agri‐Trade

September 21st, 2016, http://www.mpzzs.gov.rs/intenziviranje‐saradnje‐strucnih‐sluzbi‐srbije‐i‐kanade/

Minister of Agriculture Branislav Nedimovic held talks with Canadian Ambassador Philip Pennington to discuss trade and investment opportunities. Nedimovic extolled the export potential of Serbian berries to the Canadian market. Canada has a highly developed agriculture sector, noted the Ambassador, with both parties agreeing to facilitate marketing opportunities for each other’s products.

2)

Lebanon Interested in Importing Live Animals and Meat

September 21st, 2016, http://www.mpzzs.gov.rs/liban‐zainteresovan‐za‐uvoz‐juneceg‐mesa‐iz‐srbije/

Minister of Agriculture Branislav Nedimovic and Lebanese Ambassador Toufik Jaber discussed increasing modest levels of bilateral trade on the back of a recent agricultural cooperation memorandum signed between the parties. Lebanon in interested in importing meat products and live animals from Serbia, said Jaber. The parties also discussed other possible cooperation opportunities.

3)

Meat and Dairy Exports to BiH to Resume Following Lumpy Skin Disease Outbreak

September 20th, 2016, http://www.mpzzs.gov.rs/nedimovic‐od‐sutra‐nesmetan‐izvoz‐govedjeg‐mesa‐iz‐srbije‐u‐bosnu‐i‐ hercegovinu/

Following the recent outbreak of lumpy skin in Serbia, the country reached an agreement with Bosnia and Herzegovina (BiH) that will allow the resumption of beef and milk exports to BiH from September 21, with live cattle exports to resume shortly after, said Minister of Agriculture Branislav Nedimovic. The deal sees harmonization of quality and control standards. Two additional border crossings between the countries have been opened to increase the flow of trade, said Nedimovic. Amongst Central European Free Trade Area (CEFTA) members, BiH is Serbia’s largest economic partner, with trade reaching EUR 400 million and the surplus totaling EUR 350 million, said Nedimovic. Serbia, BiH and Montenegro have also agreed upon an economic and environmental regulation program along the Sava and Drina rivers, added the Minister.

4)

Ministry of Agriculture Committed to Online Subsidy Application Platform

September 16th, 2016, http://agrovizija.rs/index.php?id=4141

The government is committed to moving agricultural subsidy and incentive applications online, according to Minister of Agriculture Branislav Nedimovic. While such a platform has yet to be developed, it would allow farmers to follow their application status live. Moreover, the level of transparency would practically eliminate corruption, said Nedimovic.

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BFC. Agriculture Bulletin

5)

Agriculture Budget to Increase by EUR 25.7 Million

September 16th, 2016, http://agrovizija.rs/index.php?id=4142

The 2017 agriculture budget will increase by about EUR 25.7 million due to enhanced cooperation with international organizations and a jump in state agricultural land leasing revenues, according to Minister of Agriculture Branislav Nedimovic. Leased land now totals 460,000 hectares, a 120,000 hectare increase year‐on‐year, he added. A further 100,000‐150,000 hectares of state owned land can be made available for leasing, according to the Minister, with land usurpation still a problem. The Ministry hopes to bolster its inspection methods going forward, with a geographical survey database being developed in the long‐ term, added Nedimovic. A product by product analysis of the agriculture sector will begin in the coming weeks. Agrarian policies for 2017 will be developed following careful consideration of where value can be added, said Nedimovic.

The Minister also hailed the increased cooperation and communication between the Ministry of Agriculture and Vojvodina’s Provincial Department of Agriculture over the last four years. Vojvodina’s agriculture budget was depleted in the first 6 months of the year, said Provincial Secretary of Agriculture Vuk Radojevic. Revised funding levels, however, will increase the budget, with resources focused on hail nets, irrigation systems and beekeeping, added Radojevic.

6)

Belarus and Serbia to Cooperate in Several Agro‐Sectors

September 14th, 2016, http://www.mpzzs.gov.rs/nedimovic‐i‐grakun‐o‐unapredjenju‐poljoprivredne‐saradnje‐srbije‐i‐ belorusije/

Minister of Agriculture Branislav Nedimovic and Belarusian Deputy Minister of Agriculture Vladimir Grakunom discussed cooperation in veterinary and phytosanitary control, seed production, and agricultural education. Belarus is particularly interested in Serbian seed, said Grakunom. Cooperation on agricultural education is set to build on existing links between vocational agricultural and veterinary secondary schools in both countries. The Ministers also discussed market demand for each country’s agro‐products in their respective markets.

7)

Dutch Embassy Organizes Dairy Cattle Breeding Seminar in Vojvodina

September 8th, 2016, http://www.psp.vojvodina.gov.rs/VestiCyr.aspx?Id=20990

A seminar on the challenges facing the Dutch and Serbian dairy cattle breeding industries was held in Vojvodina. The seminar – organized by the Dutch Embassy – laid out problems and solutions facing the sector and discussed the Netherland’s agricultural production, education and extension systems.

Speaking at the seminar, Vojvodina’s Provincial Secretary of Agriculture Vuk Radovevic urged young farmers to form associations, and mooted replicating Dutch educational centers in the region. Larger, stronger associations, said Radovevic, would allow for representative and efficient communication with state and scientific institutions. Meanwhile, state subsidies should ensure young farmers are able to become self‐sustaining, while also helping established producers in times of need, added Radovevic.

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BFC. Agriculture Bulletin

Foreign Aid 8)

EU: Serbia not Ready to Receive IPARD Funding

September 24th, 2016, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:626671‐Ministarstvo‐Preduzete‐ mere‐da‐175‐miliona‐evra‐iz‐fondova‐EU‐budu‐dostupna‐poljoprivrednicima

A European Union (EU) delegation announced it is extending the suspension on Serbia’s access to the EUR 175 million Instrument for Pre‐accession Assistance in Rural Development (IPARD) fund. The delegation said Serbia is yet to address the issues put forward following a European Commission audit in May. The Serbian Ministry of Agriculture said it took immediate measures to address the remaining issues following the EU review. A special IPARD accreditation team has been set up to tackle perceived deficiencies in staff numbers and training, agricultural credit payment systems, and IT system security, said the Ministry. The necessary Administration for Agrarian Payments staff will be employed within the next two months, said Minister of Agriculture Branislav Nedimovic on September 15. The IPARD program runs from 2014‐2020, through which Serbia could draw a maximum of EUR 175 million.

Private Sector 9)

Reduced Custom Duties for Pig Imports Extended until the End of the Year

September 28th, 2016, http://www.agronews.rs/cadez‐otklanjamo‐barijere‐za‐vecu‐privrednu‐saradnju/

The government of Serbia announced that it has extended its reduction of custom duties on the import of pigs from the European Union until December 31, 2016. The decision was taken in order to contribute to more and better supplies of pork in domestic markets as well as to increase the competiveness of domestic producers of pigs and pork products in international markets.

10) Agricultural Output Increases 13.4% from 2007‐2015 September 19th, 2016, http://www.rts.rs/page/stories/sr/story/13/ekonomija/2457891/od‐2

The agricultural sector grew 13.4% from 2007‐2015, according to the Serbian Statistical Office. Average annual growth was recorded at 1.6%. Year‐on‐year growth varied considerably due to fluctuating climatic conditions. In 2008, for example, agricultural production grew by 10.6%, whereas it fell 17.2% in 2012. The highest growth was recorded at 16.5% in 2013. In 2015, output declined by 6.5%, according to the Statistical Office.

11) German Pork Producer to Invest EUR 300 Million Over Five Years September 13th, 2016, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:

Toennies – one of Germany’s largest meat producers and processors – entered talks with the Ministry of Agricultural on the construction of at least 10 pork farms in Serbia. The farms will require 15 hectares each for plant construction and a further 3,000 hectares each to grow feed. Mooted locations include Plandiste, Secanj, Odzaci, Calma and Apatin. Owner Clemens Toennies, who also met with Serbian Prime Minister Aleksandar Vucic, said the company would invest EUR 300 million over five years. Some farmers have expressed concern that the planned farms will strangle domestic pork producers. Toennies denies this, saying local producers will be able to sell to the company directly. Serbia adopted a new state agricultural land leasing law in December 2015 that forms the basis of the deal. The project has been delayed ever since it was first put forward in December 2014.

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BFC. Agriculture Bulletin

12) Serbian Meat Producer to Export to Russia and EU September 3rd, 2016, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:623356‐Mitros‐od‐ponedeljka‐ pocinje‐proizvodnju‐za‐trziste‐Rusije

Meat producer Mitros announced it has begun exporting to Russia and will begin exporting to the European Union (EU) by mid‐October. The company processes 800 pigs a day and has 116 employees, and hopes to add a further 84 employees by the end of September, said Director Ramo Adrovic. The company held an Open Day during which members of the public and journalists toured its new production lines and were presented with 52 new products. Worth about EUR 2.5‐2.8 million each, the processing lines are amongst the most modern in the region, according to Adrovic, with one further line being introduced this year and another in 2018. The company currently procures pork from about 100 subcontractors, and hopes to expand to 700 subcontractors by the end of the year. Mitros was purchased by Austrian holding “Gierlinger” in January 2015.

13) Beekeeper Association to Build Packaging Facility September 3rd, 2016, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:623333‐Srpski‐pcelari‐grade‐ sopstvenu‐fabriku‐meda

The Serbian Beekeeping Association announced plans to build its own honey packaging plant said President Rodolijub Zivanovic. The plant will be built in the municipality that provides the best finance and infrastructure assistance package, said Zivanovic. The plant is being built to remove middlemen, providing better price stability. Due to bad weather, very little acacia honey was produced this year, while beekeepers were offered only EUR 1.5 per kilogram for sunflower honey, with the real price standing at EUR 2.1, according to Zivanovic. Association beekeepers produced roughly 7,000 tons of honey in 2015, added Zivanovic.

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Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com In this bulletin, BFC provides extracts from articles that have been published by others and as a result cannot be held responsible for such content.

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