01/2018
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28 S e r b i a Agriculture Bulletin RSD 825 million allocated for cooperatives in 2018
Climate change leads to greater need for insurance
Serbia steps up partnership with FAO and EBRD
Technology revolutionizes agricultural production
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7) 8)
Grants available for development of cooperatives ......................................................................... 2 The National Raspberry Council is established ............................................................................... 2 RSD 825 million allocated for cooperatives in 2018 ........................................................................ 2 National Milk Lab begins work ........................................................................................................ 2 300% more money for young farmers in 2018................................................................................ 3 Nedimović launches agrarian policy ................................................................................................ 3 Commercial bank loans under review ............................................................................................. 3 Climate change leads to greater need for insurance ...................................................................... 4
Foreign Aid ................................................................................................................. 4 9) Serbia steps up partnership with FAO and EBRD ............................................................................ 4 10) 15 more irrigation systems to be built in 2018 ............................................................................... 4 11) Tractor subsidy submission deadline is Feb 26th ............................................................................ 5
Private Sector.............................................................................................................. 5 12) 13) 14) 15) 16)
The impact of climate change on agriculture .................................................................................. 5 Credit Agricole Bank to present at Tara Farmer Winter Seminar ................................................... 5 Nedimović: Difficult to predict price of raspberries ........................................................................ 6 Technology revolutionizes agricultural production......................................................................... 6 Telekom Srbija launch free app AgroLIFE ........................................................................................ 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)
Grants available for development of cooperatives
January 29th, 2018, http://agrovizija.rs/Index.php?id=3630
Milan Krkobabic, the Minister in charge of regional development, has announced that there will be 60 grants made available on a competition basis for the development of cooperatives in the country. New cooperatives can apply for funding support of up to EUR 50,000, while existing cooperatives can apply for support of up to EUR 100,000. Under the first phase of this program last year, 182 cooperatives were formed, with 22 of them receiving grant support.
2)
The National Raspberry Council is established
January 26th, 2018, http://www.stips.minpolj.gov.rs/sadrzajv/osniva-se-nacionalni-savet-za-malinu
The President of the Raspberry Association of Serbia Dobrivoje Radović has reached an agreement with the Minister of Agriculture Branislav Nedimović to establish a National Raspberry Council. The Council, which will feature representatives of the Ministry, the producers and industry experts, aims to stamp all raspberries and blackberries with a geographical indication (GI) to solve problems in the production and export of the fruits. Radović also expressed regret that the Minister of Trade Rasim Ljajić did not attend the meeting, as Radović sees his absence as a missed opportunity to discuss imports and as a contributing factor in the falling prices of local produce.
3)
RSD 825 million allocated for cooperatives in 2018
January 24th, 2018, https://beta.rs/ekonomija/ekonomija-srbija/82411-krkobabic-ove-godin
The Minister for Regional Development and Coordination of the Work of Public Companies Milan Krkobabić has announced that the Serbian Government will allocate RSD 825 million towards the establishment of new and development of existing cooperatives in 2018. The budget is four times higher than last year and a new program aimed at developing complex cooperatives is expected to be launched on March 1st. The increased allocation is geared towards helping to create new collectives and facilitate connections between existing ones, thus encouraging balanced regional development.
4)
National Milk Lab begins work
January 20th, 2018, http://agrovizija.rs/Index.php?id=3609
The National Milk Quality Control Laboratory has begun its operations and is expected to receive accreditation this September, according to the Minister of Agriculture Branislav Nedimović. Experts from the laboratory are already collecting samples in the field and testing the quality of milk from primary producers, at no cost to the farmers themselves. While the price of milk will remain at RSD 7 per liter this year, it will fluctuate depending on quality from January 1st 2019. Vojvodina farmers applauded these announcements but bemoaned the lack of subsidies with regards to agricultural land, claiming that 20 hectares of subsidized land are not enough to sustain livestock farmers who have more than 20 cows.
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BFC Agriculture Bulletin
5)
300% more money for young farmers in 2018
January 19th, 2018, http://www.minpolj.gov.rs/za-meru-podrske-mladim-poljoprivrednicima-tri-puta-vise-novca-u-2018-godini/
The Minister of Agriculture Branislav Nedimović has announced that the government will allocate three times the amount of money for young agricultural producers this year than in the last one. In 2017, 667 applications were approved from farmers under the age of 40 years, totaling a government payout of RSD 459 million. Nedimović has indicated he intends to devote even more financial aid to young workers in the fruit and vegetable sector in Central Serbia, since it’s an industry which requires hard work and all-day engagement from those involved. The announcement took place during a visit to the Institute of Fruit Growing in Čačak, where Nedimović has previously said he wishes to create a modern experimental center for fruit growing to allow education in best practices and modern developments.
6)
Nedimović launches agrarian policy
January 19th, 2018, http://www.agronews.rs/poljoprivrednicima-subvencije-od-1-marta/
The Minister of Agriculture Branislav Nedimović has announced the government’s agrarian policy for 2018, notifying farmers that they will receive the first subsidies in early March and pointing to a RSD 6 billion increase in the budget. The chief beneficiary of the increased budget will be subsidies for rural development, which saw their coffers swell from RSD 22.7 billion to RSD 26.7 billion from last year, while subsidies for livestock cattle have doubled from RSD 5,000 to RSD 10,000 per head. Nedimović said that in the wake of the heavy droughts of 2017, it was imperative that farmers received their subsidies before springtime, while he added that the EUR 50 million of Instrument for PreAccession Assistance for Rural Development (IPARD) funds had helped to increase the budget. He is hoping to provide discounts for farmers on diesel fuel, as well as complete registration for all 600,000 of Serbian farms. At present, only half of that total are registred.
7)
Commercial bank loans under review
January 3rd, 2018, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/uslovi-i-pogodnosti-pri
Nikola Djukic, an advisor in the Department for Education of Financial Services for customers of the National Bank of Serbia, is undertaking a full review of the circumstances in which commercial banks give loans to farmers, the kinds of loans available and the manner of their approval. A basic prerequisite to being approved for a loan is having a valid registration of agricultural holdings, and farmers can apply for financial help in purchasing fixed assets, working capital or the development of agriculture, viticulture, livestock and other types of agrarian industry. Loans are available over a one to three-year period (repayable monthly, quarterly, bi-annually or annually) or three to five-year period (repayable bi-annually) and must be paid in RSD. They carry a fixed interest rate of 3%, except for women, men under 40 or those living in a place with difficult working conditions, for whom the interest rate is only 1%. Those interested can learn more about various loan opportunities from different banks at the website www.nbs.rs and all banks are obliged to supply basic loan information on demand and answer further questions when necessary.
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BFC Agriculture Bulletin
8)
Climate change leads to greater need for insurance
December 26th, 2017, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/osiguranjem-ublaziti-stete-paorima_881029.html
Financial consultant Nikola Djukic has warned that the unpredictability and volatility of our current climate due to global warming means that there is an increased likelihood of natural disasters in the future. This, coupled with the heightened risk of disease among domesticated animals, means that it is more important than ever for farmers to take out adequate insurance on their crops, animals and farmland. With the Serbian government earmarking approximately EUR 4 million for insurance premium subsidies (up to 50% of the total premium), there are insurance packages to suit every budget. The term “agricultural insurance” is a broad umbrella which protects against damage, death or disease to animals, fruits, vegetables, equipment and holdings on a farm, and farmers can pick and choose the level of coverage they would like to receive. Premiums on insurance policies are conducted on a caseby-case basis and depend on the number of items being insured, the level of coverage chosen and the location and nature of the business in question. Djukic recommends that those keen to learn more should visit the website www.tvojnovac.nbs.rs, where they can find a complete list of insurance companies and the various policies they offer.
Foreign Aid 9)
Serbia steps up partnership with FAO and EBRD
January 26th, 2018, http://www.ebrd.com/news/2018/serbia-steps-up-partnership-with-fao
Representatives of Serbia’s Ministry of Agriculture, Forestry and Water Management, the Food and Agriculture Organization of the United Nations (FAO) and the European Bank for Reconstruction and Development (EBRD) met this month to sign a Memorandum of Understanding (MoU) dedicated to strengthening Serbia’s agrifood sector. The agreement will focus primarily on three areas of interest: promoting agricultural exports, modernizing the country’s water management systems and implementing geographical indication (GI) schemes. The FAO and EBRD have resolved to help analyze the infrastructure and logistics of various export markets, including the domestic grain and oilseed sector. Employing more than 180,000 people in the country, the sector is vital to the Serbian economy but has yet to fully tap into global grain markets. Meanwhile, the fact that under 4% (less than 100,000 hectares) of arable land in Serbia is irrigated is proof that the national water management systems require investment, especially in the light of recent floods and droughts. And finally, the implementation of GI on various Serbian fruits, such as raspberries, blackberries and cherries, will allow producers to charge a price worth their quality all over the globe.
10) 15 more irrigation systems to be built in 2018 January 26th, 2018, http://rs.n1info.com/a359716/Biznis/Nedimovic-U-2018.-gradnja-jos-15-sistema-za-navodnjavanje.html
The Ministry of Agriculture Branislav Nedimović has said that Serbia expects to exhaust all of the capital from the United Arab Emirates Fund loan by the end of 2019 in improving its national water management systems. With 14 projects already underway and 15 more in the pipeline for 2018, Nedimović hopes to have more than 12% of arable land irrigated by 2020. At present, less than 4% of the country’s land has an irrigation system in place. To help with this ambitious target, Nedimović also announced an agreement of a three-year loan from the EBRD, equating to a grand total of RSD 150 million. Through investing in irrigation and road infrastructures, the Serbian government hopes to safeguard the financial future of the agricultural sector and make a similar profit from its agrifood industry as Croatia does from tourism. Page 4
BFC Agriculture Bulletin
11) Tractor subsidy submission deadline is Feb 26th January 8th, 2018, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/zahtevi-za-nabavku
Farmers wishing to apply for a subsidy from the newly-available IPARD funds in order to purchase a tractor or accompanying equipment and machinery must submit their request by February 26th. The Administration for Agricultural Payments announced the new deadline on January 4th and expects to devote in excess of RSD 500 million to the project. Farmers can receive between 60% and 70% of the total cost of the tractor in government subsidy, depending on their age and geographical location, and those working in the milk, meat, fruit and vegetable sectors are eligible for the fund. The size and power of the tractor available will depend on the investment sector and volume of production for each individual case. For example, fruit growers with less than 10 hectares of planted crops will be eligible to receive funding for a tractor under 60kW in power, while those with between 10 and 50 hectares can apply for a more powerful tractor up to 80kW. All purchased tractors must comply with the EU environmental regulations and can be any model from to the T1 to T5 or S1 to S5 range. Those working in the fruit and veg sector can receive incentives of up to EUR 700,000, while those in the meat and milk sector are eligible for funding up to EUR 1 million.
Private Sector 12) The impact of climate change on agriculture January 29th, 2018, http://www.agronews.rs/ocigledan-uticaj-klimatskih-promena-na-poljoprivredu/
In the last few years, the impact of extreme weather conditions associated with climate change on agriculture has become obvious. Long dry periods and the uneven distribution of precipitation during the growing period, especially for small crops, has reduced yields for almost all cultures. Also, for several years, the mean air temperature has increased during the winter months, which has affected the development of winter crops. During spring months, weather conditions have slowed the development of crops, meaning that additional protective measures need to be taken to ensure their healthy development. To solve the problems in agriculture resulting from climate change, short-term and long-term measures need to be taken at all decision-making levels — from government institutions and international organizations to farmers, input suppliers and processors. Perhaps key among them are the roles of education and science in terms of educating policy-makers and the general public on issues related to climate change as well as providing viable solutions to mitigate the effects of extreme weather on the agricultural sector.
13) Credit Agricole Bank to present at Tara Farmer Winter Seminar January 29th, 2018, http://www.agronews.rs/ca-banka-i-ove-godine-na-zimskom-seminaru-farmera/
Credit Agricole Bank Serbia will organize lectures and presentations on its latest products for farmers at the 14th Tara Farmer Winter Seminar. This includes a new offer from the bank regarding long-term loans for raising hazelnut production. Credit Agricole Bank supports the production of this product in cooperation with Agriser doo (a subsidiary of the Ferrero company), which provides farmers with the necessary training, technical support, high quality seedlings and contracting for the purchase of hazelnuts. These loans have a repayment period of up to ten years, a fixed interest rate and a grace period. Page 5
BFC Agriculture Bulletin
14) Nedimović: Difficult to predict price of raspberries January 27th, 2018, http://www.021.rs/story/Info/Biznis-i-ekonomija/180941/Nedimovic
The Minister of Agriculture Branislav Nedimović has said it is difficult to predict whether the 2018 price of raspberries will be higher or lower than last year, since it depends largely on a fluctuating market. He indicated that new markets could contribute to a greater demand for the product, which in turn would result in a higher price, but at this moment it is impossible to say with certainty how things would work out. However, the flourishing raspberry industry in Chile – which has shown a price increase of 15% this year and which represents Serbia’s biggest competition in the Western market – could provide a clue of how the market will develop in Serbia.
15) Technology revolutionizes agricultural production January 2nd, 2018, http://www.agronews.rs/sateliti-i-dronovi-menjaju-poljoprivrednu-proizvodnju/
The application of modern technologies in agriculture can greatly optimize production, says the director of the BioSens Institute in Novi Sad Professor Vladimir Crnojević. In much the same way that the introduction of machinery and the first use of chemicals in agriculture helped increase efficiency in production, the use of automated machinery and other technological advances will revolutionize the way in which the world farms. Serbia is not lagging behind in this respect, says Professor Crnojević, pointing to the widespread use of satellite monitoring and GPS navigation for precise sowing of seeds and spreading of fertilizers. Professor Crnojević added that satellite imagery offers a much wider range of technical data than is visible to the human eye (for example, the intensity of photosynthesis in individual plant leaves) and give a much more comprehensive picture of crop health. Meanwhile, drones offer a smaller but much higher definition overview of crop placement and have the added advantage of being able to operate in any meteorological conditions. Together, the twin technologies greatly increase human knowledge and allow for improved efficiency. To this end, the BioSens Institute have signed a contract with the Provincial Secretariat for Agriculture, Water Management and Forestry in order to improve satellite monitoring and thus better organize and implement resources and programs aimed at optimizing agricultural production.
16) Telekom Srbija launch free app AgroLIFE December 25th, 2017, http://www.021.rs/story/Info/Biznis-i-ekonomija/178600/
Telecommunications company Telekom Srbija has teamed with tech company GreenSoft to launch AgroLIFE, a new app aimed at allowing Serbia farmers to harness the power of technology to optimize agricultural production. Downloadable for free from GooglePlay until September 1st 2018 (and available for a monthly subscription fee thereafter), AgroLIFE offers the ability to transform any tractor into a GPS navigational device via the use of a Smartphone. Since the app does not require the purchase of a GPS unit (often costing in excess of EUR 1,000), it represents great value and can equip Serbian farmers with the tools necessary to compete in a global marketplace. Meanwhile, the app also provides a range of other services, including land registration, agricultural machinery route mapping, advanced weather forecasts and a comprehensive production statistics log.
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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.