09/2017
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24 S e r b i a Agriculture Bulletin Series of lectures planned on reducing mycotoxin risks Serbia can emulate Poland’s agricultural budget Ministry of Agriculture publishes IPARD regulations Belgrade Fair features 70 exhibitors and 140 firms
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6)
Series of lectures planned on reducing mycotoxin risks ................................................................. 2 Krkobabić: Co-operatives could connect 630,000 farms ................................................................. 2 Serbia can emulate Poland’s agricultural budget ............................................................................ 2 Construction of Vrsac irrigation system now underway ................................................................. 3 Young farmers awarded 165 million dinars .................................................................................... 3 SAA nearing completion, says Nedimović ....................................................................................... 3
Foreign Aid ................................................................................................................. 4 7) 8) 9)
Ministry of Agriculture publishes IPARD regulations ...................................................................... 4 EBRD targets food waste in Western Balkans ................................................................................. 4 Registration of Vlasina honey GI now complete ............................................................................. 5
Private Sector.............................................................................................................. 5 10) Despite drought, exports are rising ................................................................................................. 5 11) Belgrade Fair features 70 exhibitors and 140 firms ........................................................................ 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)
Series of lectures planned on reducing mycotoxin risks
September 27th, 2017, http://www.vet.minpolj.gov.rs/srb/vesti/vesti-o-dogadjajima
The Veterinary Directorate, the Plant Protection Directorate and the Agricultural Inspection Agency of the Ministry of Agriculture are working in cooperation with agricultural expert services to organize a series of lectures on safe animal nutrition and the measures necessary to prevent mycotoxins. The goal of the lectures is to provide information about the importance of taking preventive measures to prevent mycotoxins in food for animals and in products of animal origin. The Veterinary Directorate has also prepared information that will be shared during the lectures and is available through veterinary stations and agricultural expert services; it can also be downloaded from the Veterinary Directorate’s website. The lectures will be held throughout Serbia and will be announced to potentially interested parties ahead of time.
2)
Krkobabić: Co-operatives could connect 630,000 farms
September 20th, 2017, http://beta.rs/ekonomija/ekonomija-srbija/73600-krkobabic-zadrugarstvo-povezuje-630-000poljoprivrednih-domacinstava
The Minister without portfolio for regional development Milan Krkobabić has stressed the importance of connecting rural farms in Serbia through the development of co-operatives. Speaking at a public debate in Kraljevo, he pointed to the establishment of 70 co-operatives throughout the country since April of this year as proof that confidence in the practice was beginning to return to Serbian farmers. He went on to say that up to 1,400,000 people across 630,000 family farms in rural Serbia could be united through pursuing further co-operatives in the future. In addition to improving the economy in remote agricultural areas, he also highlighted the cultural and social effect that co-operatives could have. He mentioned the government’s plans to introduce ten strong new raspberry co-operatives within the next 12 months, allocating between EUR 3 million and EUR 5 million for the establishment of a wellpositioned co-operative.
3)
Serbia can emulate Poland’s agricultural budget
September 18th, 2017, http://www.politika.rs/scc/clanak/389063/Srbija-moze-da-sanja-poljski-budzet-za-agrar
In the last 12 years, Polish farmers have received approximately EUR 60 billion from the EU in aid. With Serbia due to undergo the final evaluation to assess its eligibility to access the IPARD funds in late November, it may also soon receive its own funding – but a mere fraction of that which Poland has received. The amount designated to help the Serbian agricultural industry for the period of 2014 to 2020 is EUR 175 million, with farmers able to access EUR 15 million in 2018. For the same period, Poland is estimated to receive EUR 37.2 billion. Only Romania has taken better advantage of EU funds than Poland. The reasons for the massive discrepancy are twofold: firstly, Poland has spent the last decade setting up an infrastructure to facilitate the withdrawal of non-returnable funds to help its agrarian sector; and secondly, it only received more than 90% of those funds since joining the EU. Once Serbia’s accession has been confirmed and it complies with EU conditions (namely, amending the law on Agriculture and Page 2
BFC Agriculture Bulletin
Rural Development, increasing the number of employees in the Administration for Agricultural Payments and modernizing the headquarters of that Administration), it too will be in a position to benefit. Furthermore, one of the heads of the Polish Agency for Modernization and Development of Agriculture Maugožata stoldman has volunteered her country’s advice to Serbia and other nations seeking accreditation, which could be invaluable in securing similar investments in the future.
4)
Construction of Vrsac irrigation system now underway
September 15th, 2017, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/nedimovic-srbija-30-godina-nije-gradila-sisteme-zanavodnjavanje_854967.html
Minister of Agriculture Branislav Nedimović has announced the beginning of construction on the first irrigation system to be built in Serbia in 30 years. Until now, the country has simply maintained its existing systems, but Nedimović and Prime Minister Ana Brnabić were onsite in Vrsac to oversee the commencement of labor on the new network, which is approximately 50,000 hectares in size. Nedimović said that the government will be increasing their current irrigation capacity to between 300,000 and 400,000 hectares over the next six or seven years. Nedimović said that preventing the harmful consequences of drought was far preferable to addressing them after the event, which is why he encouraged farmers to join the irrigation system for a fixed water fee. He said that farmers always asked for state aid in the event of a drought but never volunteered contributions during good years. However, he said that the state would subsidize 50% of installation costs of irrigation systems in Vojvodina and beyond. He also identified viticulture as a key area in which the country could progress and highlighted the government aid that had been provided to winemakers across the country. At present, the Ministry of Agriculture is subsidizing the purchase of all viticulture equipment up to 50% of its total cost.
5)
Young farmers awarded 165 million dinars
September 15th, 2017, http://www.rtv.rs/sr_ci/vojvodina/novi-sad/mladim-poljoprivrednicima-165-milionadinara_854846.html
The Provincial Secretariat for Agriculture in Novi Sad has awarded 94 contracts to young farmers in rural areas, with a total value of RSD 165 million. The measure, which has been introduced this year for the first time, is intended to incentivize young people to stay in rural areas and boost agricultural performance across the province. 63 agreements were signed for plant production, while 28 contracts were agreed upon for livestock breeding and three contracts were awarded for the processing of fruit, vegetables, meat, milk and viticulture. The scheme is scheduled to continue until 2018.
6)
SAA nearing completion, says Nedimović
September 6th, 2017, http://beta.rs/ekonomija/ekonomija-srbija/72362-nedimovic-stize-pomoc-poljoprivrednicima-za-stetu-odsuse
Minister of Agriculture Branislav Nedimović has claimed that the state has managed to overcome most of the obstacles to the completion of the Stabilization and Association Agreement (SAA), which will allow foreigners to purchase Serbian land. Under the proposed conditions, foreign investors will be able to buy up to two hectares of land after having lived in the country for a period of ten years or more. He added that the state retained the right to give priority to Serbian buyers, but that the price tag of the most attractive land (EUR 12,000 to EUR 15,000 per hectare) had put off many native landowners.
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Foreign companies were first allowed to establish holdings in Serbia in 2008. To date, between 80,000 and 90,000 hectares of land are owned by Serbian subsidiaries of foreign businesses, mostly located in Croatia, Hungary and the United Arab Emirates. Speaking about the arrival of German company Tonnies in the country, Nedimović said that they had leased land in Zrenjanin, Kikinda and Sečanj with the explicit purpose of constructing farms. When quizzed on whether Serbia would change its GMO laws to comply with World Trade Organization (WTO) regulations, he said that the Food Safety Council was currently assessing the situation and that a decision had yet to be reached.
Foreign Aid 7)
Ministry of Agriculture publishes IPARD regulations
September 23rd, 2017, http://www.agrosmart.net/subvencije/ipard-sve-blizi-ministarstvo-poljoprivrede.html
The Ministry of Agriculture has moved one step closer to accessing the funds from the Instrument for Pre-Accession Assistance in Rural Development (IPARD) program by publishing the regulations with which Serbian farmers will have to comply to obtain the aid. Worth a total of EUR 175 million, the IPARD funds are designated to help farmers with investments in the construction and reconstruction of warehouses, silos and greenhouses, as well as for the purchase of tractors with a capacity of up to 100kW and other agricultural equipment. They can also be used for investments in the production of energy from renewable sources in the farm. Applications are scheduled to open at the end of this or the beginning of next year, with holders of commercial family farmsteads, entrepreneurs, agricultural companies and co-operatives eligible for the funds. Beneficiaries can receive up to EUR 1.5 million in a single application, with 60% of the total cost being supplemented by the EU funds (65% for young people and 70% in areas with difficult working conditions). The program is due to run until 2020 and each user cannot obtain more than a total of EUR 2 million throughout its duration.
8)
EBRD targets food waste in Western Balkans
September 21st, 2017, http://www.ebrd.com/news/2017/boosting-the-use-of-food-and-beverage-residues-in-the-westernbalkans.html
The European Bank for Reconstruction and Development (EBRD) has launched a study of potential uses for food and beverage byproducts in the Western Balkans. Conducted in conjunction with business consultancy EY and with financial backing from the Central European Initiative (CEI), the study has found that there is significant potential in the meat and dairy industries of Serbia. At present, annual meat production in the country stands at around 450,000 tons, 120,000 of which end up as byproduct. The majority is already being used to manufacture pet food, fertilizer and fuel, but the EBRD study reveals that greater efficiency could boost the use of waste products by up to 50%. Meanwhile, the dairy industry could also stand to benefit from better practices. In 2014, fresh milk processed by the dairy industry accounted for roughly 55% of the country’s total milk production; of the 800,000 liters of milk processed each year, only 10% of the waste is reused (mostly in the form of whey, which is concentrated into animal feed or processed into butter). As the market grows, newer technologies can encourage improved use of waste resources and make the Serbian dairy industry greener. The EBRD study was part of its Green Economy Transition, which aims to invest 40% of its total business volume by 2020.
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9)
Registration of Vlasina honey GI now complete
September 14th, 2017, https://europa.rs/%D0%B5%D0%B2%D1%80%D0%BE%
Thanks to the financial support of the EU and the Government of Switzerland, the honey of Vlasina has completed the registration of its geographical indication (GI), meaning that approximately 80 honey producers in the region will be able to benefit from the mark of quality that the GI bestows. Vlasina honey is held in high regard due to the special aroma of medicinal herbs that are harvested by bees grazing on the Vlasina plains. With the GI stamp on their products, beekeepers from the Matica Association in Surdulica will be able to demand a higher price on the market for their produce and become more competitive in Europe, as well as guaranteeing their customers better quality. It’s also hoped that it may encourage a growth in the number of young beekeepers in the area. In addition to the honey, Serbia is currently seeking GI registration for potatoes from Ivanjica and cow’s milk cheese and lambs from Sjenica.
Private Sector 10) Despite drought, exports are rising September 11th, 2017, http://www.politika.rs/sr/clanak/388644/Prave-posledice-suse-tek-naredne-godine
In spite of the 15% decline in production brought about by this year’s drought, Serbian agricultural exports reached USD 1.9 billion in the first seven months of 2017. Compared to last year, that represents a growth of 6.5%. Certain commentators have speculated that the main reason for this growth is the export of last year’s stock of cereals and frozen fruit, which may make the damage brought by the drought more noticeable next year. However, others (including agricultural advisor to the Serbian Economic Chamber Vojislav Stanković) have said that the growth was largely caused by increased exportation to the EU and Russian markets, and that there is no cause for concern. Stanković predicts that even with the fall in production, this year’s exports will reach a record USD 3.5 billion (up 300 million from last year), but that the country’s potential exceeds USD 5 billion. In the first seven months of the year, exports were dominated by fruit and vegetables (USD 503 million) and cereals (USD 425 million), but the biggest jump in exports was seen in the meat industry, which grew 40% from last year. This is partly down to increased exports to Montenegro and a lucrative tourist season, but mostly because of increased interest from the Russian market brought about by a four-month growth in the ruble. However, Stanković pointed out that there is little stability in the Russian market and that the Russian currency has decreased over the last two months, so a corresponding dip in Serbian exports to Russia should be expected in the near future.
11) Belgrade Fair features 70 exhibitors and 140 firms September 11th, 2017, http://www.blic.rs/vesti/ekonomija/sajmovi-o-agraru-sve-sto-ste
This year’s Belgrade Fair featured two parallel exhibitions aimed at educating Serbian farmers about upcoming opportunities on the world market for homegrown fruit and vegetables and how to treat and preserve their products optimally. Fruveg Expo, entering its fourth year at the festival, concentrated on the latest technology in the production, processing, packaging and storage of fruit and vegetables. Meanwhile, Cool Expo made its debut at the Fair and featured manufacturers and distributors of refrigeration, air conditioning, ventilation and heating equipment. Together, the two exhibitions combined 70 exhibitors and 140 specialized firms over the two-day festival, which took place from the 13th to the 15th September. Attendees also had the chance to learn more about co-operatives at a specially organized forum on the opening day of the festival. Page 5
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