12/2016
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15 S e r b i a Agriculture Bulletin Women’s Organic Production Program to Launch Ban on Sale of Agricultural Land to Foreigners in Preparation IPARD Administration Law in Preparation
Serbia Launches First Non-GMO Labelling Scheme
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)
Women’s Organic Production Program to Launch .......................................................................... 2 Milk Duty Future to Be Announced on December 26 ..................................................................... 2 Ban on Sale of Agricultural Land to Foreigners in Preparation ....................................................... 2 RSD 3.2 Billion Increase in Agriculture Budget Announced ............................................................ 3
Foreign Aid ................................................................................................................. 3 5)
IPARD Administration Law in Preparation ....................................................................................... 3
Private Sector .............................................................................................................. 3 6) 7) 8) 9) 10) 11) 12)
Food and Agricultural Exports Total USD 2.61 Billion ..................................................................... 3 Budimovic: Only 40% of Milk of Highest Quality Standard ............................................................. 4 Serbia Launches First Non‐GMO Labelling Scheme ......................................................................... 4 Keserovic: Raspberries and Apples Serbia’s Top Exports ................................................................ 4 Agricultural Output Totals 5 Billion ................................................................................................. 4 Russian Agricultural Deficit Provides Export Opportunity .............................................................. 5 Serbia Confirms First Cases of H5N8 Bird Flu Virus ......................................................................... 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. Read more »
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BFC Agriculture Bulletin
State Initiatives 1)
Women’s Organic Production Program to Launch
December 22nd, 2016, http://www.agronews.rs/besplatna‐obuka‐iz‐oblasti‐organske‐proizvodnje‐za‐nezaposlene‐zene/
In February 2017, association of organic producers “Serbia Organica” will launch a free organic production training program for isolated, low‐income, self‐employed, and unemployed women living in Belgrade and its suburbs. The four‐day course will introduce production methods and technologies, certification processes, legislation, and marketing techniques. Beneficiaries will also receive practical training at successful, certified organic farms managed by women. Employment in organic production allows for flexible working hours, which is particularly suited to women with children. Belgrade has the highest demand for organic produce in Serbia. Coupled with easy market access and low transport costs, it is hoped this will allow participants the basis for creating a successful business. Following the seminar, a networking event will connect participants with producers. Through subcontracting, the producers will provide beneficiaries with further training and help with product placement, and domestic and international distribution. The program will be launched with the support of the Ministry of Labor, Employment, Veteran and Social Issues.
2)
Milk Duty Future to Be Announced on December 26
December 21st, 2016, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/istice‐rok‐prelevmanima‐na‐mleko_785700.html
The government will decide whether to repeal existing milk import duties on December 26, according to Minister of Agriculture Branislav Nedimovic. In March 2015, the duties were introduced to protect domestic production from a European Union (EU) milk glut. It was feared an influx of cheap EU milk would destroy the domestic dairy industry. Both Nedimovic and the Serbian Chamber of Commerce’s Secretary for Animal Husbandry and Livestock Nenad Budimovic reported an increase in EU milk prices, with neither expecting an abolition of duties to adversely affect domestic production. Serbian dairy farmers need prices of RSD 36‐37, or roughly EUR 0.30 per liter, to be profitable, according to President of the Milk Producers Association Ljubisa Jovanovic. Duties are not a permanent solution and must be abolished within two years according to the terms of the EU Stabilization and Association agreement, said Budimovic. The Farmers Association has requested that levies be lifted only once legislation increasing dairy farmer protections are introduced. The duties averted the crisis seen in Croatia, where EU milk imports increased 50% while livestock numbers fell by half, said General Manager of Imlek Ilija Setka.
3)
Ban on Sale of Agricultural Land to Foreigners in Preparation
December 21st, 2016, http://www.kurir.rs/vesti/biznis/ministarstvo‐poljoprivrede‐ne‐damo‐srpske‐njive‐strancima‐clanak‐ 2599013
An amendment banning the sale of agricultural land to foreigners is being prepared for the second quarter of 2017, said Minister of Agriculture Branislav Nedimovic. The Ministry is currently evaluating similar programs in other countries to determine the best solution for Serbia, added Nedimovic. A number of new mechanisms need to be introduced in order to enact the law, said the Minister. The announcements came during the Ministry of Agriculture’s yearly debrief. In addition to the amendment, a paid maternity leave program for women employed on farms and a EUR 10,000 loan scheme for married farmers under 40 were announced.
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BFC Agriculture Bulletin
4)
RSD 3.2 Billion Increase in Agriculture Budget Announced
December 20th, 2016, http://www.rts.rs/page/stories/sr/story/13/ekonomija/2567857/agrarni‐budzet‐kroz‐prizmu‐ poljoprivrednika.html
In 2017, the agriculture budget will increase by RSD 3.2 billion compared with 2016. Subsidies of RSD 5,000 per cattle head, RSD 10,000 per pig head and RSD 720 per beehive will be introduced. The pig subsidy represents a RSD 3,000 per head increase year‐on‐year. Crop incentives and milk premiums will remain stable, however, leaving farmers dissatisfied, according to Jovic Jaksic of the Independent Association of Serbian Farmers. Investment incentive schemes have increased fourfold, however, said Minister of Agriculture Branislav Nedimovic, with fruit growers receiving 50% reimbursements on tractor, cold storage and processing facility investments. Meanwhile, both crop and livestock equipment and machinery investments are eligible for 40%‐50% reimbursements, added the Minister. Nedimovic also introduced a new youth incentive, with beneficiaries receiving a grant worth 75% of their production. Until Serbia obtains money from the European Union (EU), the budget percentage allocated to agriculture must increase continually, argues agricultural economist Milan Prostran.
Foreign Aid 5)
IPARD Administration Law in Preparation
December 13th, 2016, http://bif.rs/2016/12/prvi‐konkurs‐za‐sredstva‐ipard‐fonda‐u‐2017/
An amendment to the Law on Agricultural Land regarding the administration of the European Union’s (EU) Instrument for Pre‐accession Assistance for Rural Development (IPARD) fund is in preparation, according to Minister of Agriculture Branislav Nedimovic. The amendment will establish approval procedures while ensuring their full transparency, added the Minister. The first call for applications for the EUR 175 million IPARD fund is expected next year, said Nedimovic.
Private Sector 6)
Food and Agricultural Exports Total USD 2.61 Billion
December 26th, 2016, http://www.agrosmart.net/vesti/izvescemo‐blizu‐tri‐miliona‐tona‐kukuruza.html
In the first ten months of 2016, food and agricultural exports totaled USD 2.61 billion, up 9.1% year‐on‐ year, reported the Serbian Chamber of Commerce’s Secretary of Agriculture Zarko Galetin. The surplus totaled USD 1.48 billion, a 31.4% increase year‐on‐year, according to Galetin. Cereals, fruits and vegetables accounted for 46% of the total, while other important sectors included: tobacco, at 11.8%; agricultural oils, at 5.9%; and sugar, at 4.2%, said the Secretary. Over the same period, added Galetin, meat exports fared poorly, with 15,000 tons of pork worth USD 37 million imported. To date this year, corn exports totaled almost 3 million tons, contributing to Serbia’s reentry into the world’s top ten grain exporters, according to the Secretary. The wheat harvest is estimated at 2 million tons. Total area sown with wheat dropped 12%‐15% year‐on‐year to 490,000 hectares, while yields are expected to fall short of the long‐term average 4.8 tons per hectare, said Galetin. For six consecutive months and only the second time in a decade wheat was cheaper than corn. The global wheat market is expected to improve however, with prices rising accordingly, according to Galetin.
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BFC Agriculture Bulletin
7)
Budimovic: Only 40% of Milk of Highest Quality Standard
December 24th, 2016, http://www.tanjug.rs/full‐view.aspx?izb=293647
Only 40% of Serbian milk falls within the highest quality standard, according to the Chamber of Commerce’s Secretary of Animal Husbandry and Livestock Nenad Budimovic. The remainder isn’t necessarily bad, added the Secretary; however, export to the European Union will require the figure to reach almost 100%. According to Association of Milk Producers President Ljubisa Jovanovic, the biggest problem is lack of competition in the dairy sector with technology and know‐how suffering as a result. This was compounded by poor government policy in the past, argues Jovanovic, adding that policy has improved markedly in the last two to three years, though it will take time for effects to be felt. Milk quality is best in Vojvodina. Training programs should focus on central Serbia, said the Secretary, while state subsidy programs should reward quality. The Food and Agriculture Organization (FAO) reports that Serbia’s small milk producers have an average of only 2.8 cows per farm, with only 5% of milk reaching the highest standard. The situation improves with medium and large producers, with 62% and 70% of milk meeting the highest standard, respectively. The dairy industry already receives 70% of state agricultural support, according to the FAO. Milk premiums will remain at RSD 7 per liter while the government will shortly announce whether import duties will be retained.
8)
Serbia Launches First Non‐GMO Labelling Scheme
December 22nd, 2016, http://www.agronews.rs/srbija‐dobila‐prvi‐domaci‐standard‐bez‐gmo/
Serbia’s first non‐genetically modified organism (non‐GMO) quality certification “Danube Soya” has been launched. The certification scheme is a major step in expanding value‐added produce in Serbia, according to the Serbian Chamber of Commerce’s Secretary of Agriculture Zarko Galetin. Non‐GMO products are in high demand in foreign markets; the label substantially increases the competitiveness of Serbian soybean abroad, added Galetin. State Secretary at the Ministry of Trade Vesna Kovac pointed out that the certification will allow retailers to provide more choice to the consumer while at the same time boosting consumer confidence in Serbian products. Soybean is the main component of animal feed in Europe; however, most of it is GMO, explains International Association of Danube Soya President Mary Kalentic. Coupled with the European Union’s (EU) voluntary labelling schemes, the label will give EU producers the opportunity to promote animal products as non‐GMO while highlighting its Serbian origin, said Kalentic.
9)
Keserovic: Raspberries and Apples Serbia’s Top Exports
December 13th, 2016, http://www.stips.minpolj.gov.rs/sadrzajv/malina‐i‐jabuka‐me%C4%91u‐najva%C5%BEnijim‐izvoznim‐ artiklima
During the past eight months, raspberries and apples were Serbia’s leading exports, said Professor Zoran Keserovic of the Faculty of Agriculture at Novi Sad University. Keserovic made the comments at a recent fruit production conference held at the university. Participants heard that the Serbian fruit industry has boomed in the past decade due to advances in science and technology. Farmers are increasingly turning to raspberry, blackberry, cherry and pear production.
10) Agricultural Output Totals 5 Billion Page 4
BFC Agriculture Bulletin December 11th, 2016, http://www.agrosmart.net/vesti/poljoprivredna‐proizvodnja‐2016‐pet.html
In 2016, agricultural output totaled USD 5 billion, an 8% increase year‐on‐year, according to Agrosmart sources. Crop output totaled USD 3.38 billion, a 13.46% increase year‐on‐year, while livestock output totaled USD 1.62 billion, slightly lower than in 2015. Crop and livestock output made up 67.57% and 32.43% of the total respectively, reported Agrosmart sources. The reduction in livestock output was due to disruption to the domestic pork industry caused by high levels of pork imports. While this year’s yields were significantly higher than in 2015, last year’s output was unusually low, with experts putting 2016 yields within the long‐term average. Agricultural output share leaders in 2015 were as follows: 20% corn; 3.5% soybean; 2.5% sunflower; and 1.6% sugar beet.
11) Russian Agricultural Deficit Provides Export Opportunity December 9th, 2016, http://www.stips.minpolj.gov.rs/sadrzajv/sve‐ve%C4%87‐trgovinska‐razmena‐rusije‐i‐srbije
Due to climatic conditions Russia cannot produce enough agricultural goods to meet domestic demand, especially with regards to fruit and vegetables, according to Russian Ambassador to Serbia Aleksandar Chepurin. This provides Serbia with a significant export opportunity, added the Ambassador. In the first nine months, Serbian exports to Russia increased 9.1%, with further growth expected in 2017, said Chepurin.
12) Serbia Confirms First Cases of H5N8 Bird Flu Virus December 6th, 2016, http://www.reuters.com/article/us‐health‐birdflu‐serbia‐idUSKBN13V1GX
Six swans found dead in northern Serbia were found to be infected with the H5N8 bird flu strain. The Ministry of Agriculture advised poultry be kept indoors and announced it would be observing farms closely going forward. Several cases of H5N8 were uncovered across Europe in recent weeks, including Romania and Croatia, were 10 swans were found carrying the virus in the east of the country.
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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. The articles do not necessarily reflect the opinions of BFC, its staff, its associates or its partners. Copyright of articles is retained by their authors.