12/2017
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27 S e r b i a Agriculture Bulletin New rules for small producers of traditional products RSD 10 million allocated for digital monitoring services EBRD announces “green economy” investment strategy Fish production in Serbia not meeting its potential
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7)
2018 Vojvodina budget increases support to young famers........................................................... 2 National Laboratory to regulate meat and milk in Serbia ............................................................... 2 Serbian government adopts position on fisheries .......................................................................... 2 New rules for small producers of traditional products ................................................................... 3 2018 agrarian budget higher than 2017 .......................................................................................... 3 More than 180 cooperatives formed over last six months ............................................................. 3 RSD 10 million allocated for digital monitoring services ................................................................. 3
Foreign Aid ................................................................................................................. 4 8) 9) 10) 11)
First call for IPARD program ............................................................................................................ 4 EUR 800,000 earmarked for fruit recognition project .................................................................... 4 EBRD announces “green economy” investment strategy ............................................................... 4 Training program aims to bolster Serbian exports .......................................................................... 5
Private Sector.............................................................................................................. 5 12) 13) 14) 15) 16)
Corn exports down 90% .................................................................................................................. 5 Organic workshop held in Krajisnik ................................................................................................. 5 Foreign potatoes flood the domestic market.................................................................................. 5 Farming association criticizes government ..................................................................................... 6 Fish production in Serbia not meeting its potential ........................................................................ 6
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)
2018 Vojvodina budget increases support to young famers
December 21st, 2017, http://www.agronews.rs/apv-budzet-za-2018-u-znaku-mladih-poljoprivrednika/
Beginning with the 2018 budget of the Vojvodina province, a focus on young farmers will be emphasized for up to the next 40 years. Financial support for this group has doubled in comparison to last year in order to support the survival of young people in the countryside as well as ensure the continued development of the agricultural sector.
2)
National Laboratory to regulate meat and milk in Serbia
December 18th, 2017, http://studiob.rs/nedimovic-nacionalna-laboratorija-za-bezbedniju-hranu/
The Minister of Agriculture Branislav Nedimović has announced that the National Food Safety Laboratory will, among other things, control and oversee the work of private laboratories throughout the country, in order to regulate food quality standards for both domestic consumption and for exportation. Nedimović said that both the meat safety lab and the milk safety lab will open their doors at the beginning of next year, addressing fears about repatriated pork and the lack of governmental control over milk safety. He added that the milk premium will remain the same next year and milk will sell for RSD 7 per liter, but that once the National Milk Lab is fully accredited in 2019, the price of milk will fluctuate based on the quality of each liter. Speaking about the agrarian budget for 2018, Nedimović said that the largest part of the funds would go towards procuring machinery and equipment and increasing warehouse and processing capacity, in order to strengthen the competitiveness of Serbia agriculture. He highlighted the importance of IPARD funds in the coming year (25% to 30% of which is Serbian money) and said that a chunk of the funds would be directed towards helping young farmers, as well as the construction of automated integral systems, water management and electrification of fences surrounding fields. Regarding the petroleum market, Nedimović stressed that he prioritized regulation between agricultural producers and oil companies, rather than the rapid distribution of vouchers which could be susceptible to forgery.
3)
Serbian government adopts position on fisheries
December 18th, 2017, http://www.agronews.rs/novci-za-izgradnju-kapaciteta-za-preradu-ribe/
The Serbian government has adopted a negotiating position on Chapter 13 of its accession the EU, covering the control of illegal, unreported and unregulated fishing, as well as the issuance of catch certificates in the fisheries industry. Mirko Novakovic, the head of fisheries at the Ministry of Agriculture, has indicated that the government’s position has been submitted to the European Commission and negotiations are expected to commence at the beginning of next year. Over recent years, processing of fish in Serbia has increased by 50%, as Serbian processors import from far eastern countries and process it onsite, before exporting it on to the EU. In this way, the state is more influential in stimulating production than financing it, although it has been suggested that some of the IPARD funds may be diverted towards increasing production capacity.
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4)
New rules for small producers of traditional products
December 18th, 2017, http://www.minpolj.gov.rs/omogucen-legalan-izlazak-mali
The Minister of Agriculture Branislav Nedimović announced new regulations surrounding the production and sale of small quantities of traditional products of animal origin in Sremska Mitrovica this month. To date, such produce has maintained a consistently high level of quality, but an absence of rules surrounding the sector had led to problems of legal entry into the market. From January 1st 2018, producers will be able to register and sell their products on the market. Furthermore, Nedimović added that rural development measures will provide subsidies for the procurement of equipment for such producers, with the financial support comprising at least 50% of the total outlay. In particularly impoverished areas, it could reach as much as 65%. A new rulebook surrounding the production and sale of traditional plant-based products is expected in 2018, and Nedimović is hopeful that the new regulations will reduce costs and shorten administrative procedures, as well as enhancing rural tourism, since producers will be able to sell their goods wherever they like.
5)
2018 agrarian budget higher than 2017
December 16th, 2017, http://www.rtv.rs/sr_ci/vojvodina/novi-sad/paori-zadovoljni-agrarnim-budzetom-za-2018._878679.html
According to the Ministry of Agriculture, the agrarian budget will be 11.8% higher next year than it was in 2017. Of the total agricultural budget, RSD 34.3 billion will be devoted to subsidies and incentives aimed at making Serbia more competitive in the international market, news which has been welcomed by farmers. All state supported measures will be finalized and defined in the Decree on Agricultural Incentives.
6)
More than 180 cooperatives formed over last six months
December 5th, 2017, http://www.rtv.rs/sr_ci/ekonomija/novi-ugovori-za-dodelu-sredstava-zadrugama_875689.html
The first cycle of allocation of funds for new cooperatives came to a close this month with the signature of seven new contracts in Belgrade. The project, named “500 Cooperatives in 500 Villages”, is part of a wider program aimed at stimulating regional development throughout Serbia and has resulted in the formation of 182 new cooperatives over the last six months. In total, RSD 200 million were allocated from the fund in 2017, helping more than 20 cooperatives across the country, and the Ministry has indicated that the budget allocated for this purpose will be four times higher next year.
7)
RSD 10 million allocated for digital monitoring services
December 1st, 2017, http://www.agronews.rs/19081-2/
The Provincial Secretary for Agriculture, Water Management and Forestry Vuk Radojević and the Director of the BioSens Institute Vladimir Crnojević have signed a contract allocating RSD 10 million for a project geared towards improving digital monitoring services in Serbian agriculture. Named “Monitoring using remote sensing in agriculture, water management and forestry”, the project will use satellite images to analyze the soil under various crops (including corn, soybean, sunflower and wheat), as well as for the detection of forested areas, hydrography and extraction data on the intensity of metabolic processes and plant stress. The contract will entail the adoption of a digital platform named AgroSens, capable of monitoring all vacancies for grants and an up-to-date overview of the state of agriculture in Vojvodina, thus improving Page 3
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efficiency within the Provincial Secretariat and bolstering emergency support during times of flood or drought. The platform will also be of use to farmers, as well, encompassing services and capabilities such as digital field books, drone pictures, land analysis, satellite images, weather forecasts and others. There is also the potential to develop a new bookkeeping service, through which farmers will be to record all costs and transactions and receive an automatic balance sheet for their business.
Foreign Aid 8)
First call for IPARD program
December 20th, 2017, http://www.danas.rs/ekonomija.4.html?news_id=365649&title=Prvi+poziv+poljoprivrednicima+u+ponedeljak
A formal call for farmers to apply for funding from the Instrument for Pre-Accession Assistance in Rural Development (IPARD) program for the purchase of tractors and machinery will be announced on Monday, December 25, 2017. Eligible parties are owners of family farms, entrepreneurs, agricultural cooperatives and companies with both less than 250 employees and an annual turnover of less than EUR 50 million. Those not registered in Serbia’s business registry, that are in the process of bankruptcy or liquidation or that have had a bank account blocked for more than 30 days are not eligible for obtaining IPARD funding. Additionally, those involved in the meat and dairy sector can apply if they have up to 1,000 cattle, 1,000 sheep/goats, 400 sows, 10,000 live pigs or 300 dairy cows. The total amount of funds to be used by 2020 under this program is EUR 175 million.
9)
EUR 800,000 earmarked for fruit recognition project
December 14th, 2017, http://www.minpolj.gov.rs/podrska-srbiji-u-ponovnom-otkrivanju-zaboravljenih-ukusa-starihautohtonih-sorti-voca-i-grozdja/
An IPA project using EUR 800,000 of EU funds has been launched for the classification of domestic and indigenous fruit and vine varieties. The project is being implemented through a partnership between the Directorate for Plant Protection within the Serbian Ministry of Agriculture and the Ministry of Agriculture, Food and Forestry Policy of the Republic of Italy. It is hoped that it will allow the Ministry to better recognize individual varieties of agricultural plants and to facilitate the adoption of best practices in the field of plant testing and registration across Serbia, in accordance with EU regulations.
10) EBRD announces “green economy” investment strategy December 5th, 2017, http://www.ansamed.info/ansamed/en/news/nations/serbia/2017/12/05/ebrd-announces-greeneconomy-investment-strategy-in-serbia_81e328f4-c1f9-40f6-b898-d9d4fef22309.html
The European Bank for Reconstruction and Development (EBRD) is preparing a new investment strategy for Serbia that will focus on the "green economy", EBRD Director for Serbia Daniel Berg has announced. Over the past 16 years, the EBRD has invested EUR 4.5 billion in projects in Serbia, with around EUR 2.2 billion still left to be distributed. Those figures were announced at a conference at the Chamber of Commerce and Industry of Serbia, where the EBRD's innovative “green voucher” scheme was also presented.
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11) Training program aims to bolster Serbian exports December 5th, 2017, http://www.agronews.rs/kako-da-srpski-seljak-stigne-do-evropskog-trzista/
A training program was held this month with the intention of educating Serbian farmers on how they can most easily access and become competitive on the European market. Entitled “Support for the development of export capacities of agribusiness companies”, the training focused on the importance of investment in watering systems, antistatic networks, refrigerators and modern packing machines. However, the organizers stressed that it is also important for farmers to have a knowledge of the conditions and regulations surrounding the European market, so that they can achieve compliance and, ultimately, success. The program was part of the UN Development Program “Aid for Trade”, which is funded by the Russian Federation.
Private Sector 12) Corn exports down 90% December 21st, 2017, https://www.ekapija.com/news/1979481/izvoz-kukuruza-u-oktobru-i-novembru-smanjen-za-90
In October-November 2017, only 59,440 tons of corn were exported from Serbia, 90% lower than the 569,000 tons exported in the same period of 2016. The reason for the drastic drop in corn exports is related to this year’s drought, which reduced overall agricultural exports this year by three times.
13) Organic workshop held in Krajisnik December 16th, 2017, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/odrzana-radionica-korak-po-korak-do-biobaste_878639.html
A workshop named “Step by step to bio-garden” was held in Krajisnik in Banat this month, as interested farmers learned more about the basic elements of the garden, where and how a biological garden can be designed, its agroecological specifics and what elements affect biological control. Realized with the Support of the Ministry of Agriculture, the workshop educated attendees about how the application of ecology within agricultural practices can help to preserve the human environment. Among other topics, farmers were most interested in hearing about methods of fertilization and how to create a protective belt around the perimeter of the bio-garden. The workshop is part of the project “Organic agriculture for VAS”, which will continue in 2018 and which aims to educate as many people as possible (and especially young farmers) on all facets of the production of organic crops.
14) Foreign potatoes flood the domestic market December 8th, 2017, http://www.stips.minpolj.gov.rs/sadrzajv/inostrani-krompir-preplavio-doma%C4%87etr%C5%BEi%C5%A1te
Domestic potato production has halved and the importation of foreign potatoes has flooded the market. According to data provided by PKS, there were 40,105 hectares dedicated to potato production in Serbia last year; in the same period, 7,438 tons of potatoes arrived in the country from abroad. The biggest exporting countries are Belgium and the Netherlands, while Bosnia and Herzegovina is the biggest importer of Serbian produce. However, with foreign potatoes being repackaged under a multitude of varieties and sometimes arriving without declaration, domestic producers cannot compete.
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15) Farming association criticizes government December 4th, 2017, http://www.agronews.rs/ratari-ukazuju-na-alarmantnu-situaciju-u-poljoprivredi/
The Association of Pančevo Farmers has released a press statement criticizing the Serbian government for what it believes is an underfunded agrarian budget. Pointing the current incentive law which denotes that the agrarian budget should comprise 5% of the national budget, the Association has complained that only RSD 40.5 billion were set aside for agriculture and not the RSD 60 billion it believes should have been. Moreover, with this year’s budget already spent and RSD 5 billion still missing for the payment of backlogs to farmers, the Association expects next year’s budget to suffer, which could cripple Serbian farmers affected by this year’s extreme drought. The Association also warned that prices of crops are falling across the board and a far more extreme slump than the one witnessed after the 2012 drought should be expected. It pointed out that the exchange rate of the dinar against the euro has risen from 100 to 120 since 2012, while diesel fuel was 50% cheaper in 2012, as well. Meanwhile, subsidies have been reduced by 15 times in that five-year window, from RSD 12,000 for 100 hectares in 2012 to RSD 4,000 for 20 hectares today. Instead of providing financial aid to overseas investors, the Association has requested that the government loan young farmers the funds to buy 20 hectares of land, repayable over a 20-year period and at 1% annual interest. This, they claim, is the way to revitalize Serbian agriculture.
16) Fish production in Serbia not meeting its potential December 3rd, 2017, http://www.021.rs/story/Info/Biznis-i-ekonomija/177165/Proizvodnja-ribe-u-Srbiji-25-puta-manja-odmogucnosti.html
The Serbian fish production industry is falling short of its potential by nearly 25 times, according to experts. At present, there are at least 8,290 hectares of fish farms for white fish in Serbia (primarily carp), although there is potential for 200,000 hectares to be devoted to the purpose. In order to meet that potential, Serbia must adopt the Law on Structural Support and Regulation of the Market in Fisheries and open negotiations on Chapter 13 of its accession to the EU, both of which are expected to take place over the course of the next year. Nenad Budimović, a senior figure at the Serbian Chamber of Commerce, said that two thirds of the 8,947 tons of fish harvested in Serbia last year came from fish farms, while the remaining third came from professional and recreational fishermen. While data from PKS shows that there was a large deficit between imports and exports last year (34,918 tons imported at a price of USD 89.2 million, compared to 2,853 tons exported at a price of USD 15.4 million), there has been a positive trend over the past five years. Compared with 2011, exports have increased by 300%, while imports have fallen by 12%, which has given Budimović cause for optimism.
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Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com Articles are taken directly from local sources without any fact-checking; they are provided as a convenience and for informational purposes only. Business & Finance Consulting (BFC)’s editing is limited to providing a short summary in English of the texts, highlighting the main points of the original articles. All rights reserved by the authors. BFC takes no responsibility and does not make any representation or warranty, express or implied, or assume any responsibility whatsoever for the content, accuracy, and reliability, or completeness of any of the articles.