03/2018
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30 S e r b i a Agriculture Bulletin First Digital Farm in Serbia opens to visitors
New animal feed monitoring program launched First green innovation vouchers awarded in Serbia The state of agricultural insurance in Serbia
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7)
Survey of agricultural holdings to be conducted ............................................................................. 2 First Digital Farm in Serbia opens to visitors ................................................................................... 2 Livestock breeding incentives regulations amended ...................................................................... 2 Subsidized fuel only for those engaged in agriculture .................................................................... 3 Subsidized loans available to farmers ............................................................................................. 3 New animal feed monitoring program launched ............................................................................ 3 Digital opportunities open to Serbian farmers ................................................................................ 3
Foreign Aid ................................................................................................................. 4 8) First call for applications under IPARD’s Measure 3 ....................................................................... 4 9) First green innovation vouchers awarded in Serbia ........................................................................ 4 10) GIZ launches free software for organic farmers .............................................................................. 4
Private Sector.............................................................................................................. 4 11) 12) 13) 14) 15) 16)
Seminar on agricultural cooperatives held...................................................................................... 4 The state of agricultural insurance in Serbia ................................................................................... 5 NLB Bank grants subsidized loans ................................................................................................... 5 EU apple shortage represents chance for Serbia ............................................................................ 5 Family company pioneers fruit-drying technology.......................................................................... 6 Lack of organic matter a problem for Vojvodina............................................................................. 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)
Survey of agricultural holdings to be conducted
March 29th, 2018, https://www.dnevnik.rs/ekonomija/poljoprivreda/od-oktobra-anketa
The Statistical Office of the Republic of Serbia is planning a survey on the structure of agricultural holdings that will take place between October 1, 2018 and November 30, 2018. The results obtained by the survey will be particularly useful for the Ministry of Agriculture to use in analyzing the overall agricultural situation in the country as well as for planning agricultural policies. The results will also be useful for others interested in Serbia’s agricultural sector, such as agricultural facilities, institutions and experts. The EUR 2.2 million study is being funded from the state budget and European Union (EU) pre-accession funds. The survey is part of a three-year set of surveys that are being conducted between two agricultural censuses.
2)
First Digital Farm in Serbia opens to visitors
March 21st, 2018, http://agrovizija.rs/Index.php?id=3791
The first Digital Farm in Serbia opened its doors on March 20th this year, with Minister of Agriculture Branislav Nedimović extending an open invitation to farmers across the country to come and learn more about the agricultural opportunities offered by new technologies. Working in conjunction with the BioSense Institute in Novi Sad, the Ministry founded the new farm in the village of Krivaja near BaÄ?ka Topola. Farmers are invited to attend seven open days throughout the year, beginning on April 27th and ending on October 28th, with each event focusing on a different specialized topic of digitalization. Farmers will be able to learn more about the impact of IT, artificial intelligence, satellites, robotics, drones, sensors and advanced agricultural mechanization on every aspect of the agricultural process, from land preparation through sowing, irrigation, nutrition and plant protection, until harvest. Visitors will be able to experience firsthand, free of charge, how new technologies make agricultural production more efficient and cost-effective, through viewing and testing the equipment themselves and talking with scientists and farmers familiar with the technology. Transportation for interested parties can be arranged by the Ministry of Agriculture. Additionally, the opening of the Digital Farm also coincides with the launch of its online platform Serbia AgroSens, the basic services of which are available for free at www.AgroSens.rs or via the mobile app. Among other features, the platform allows farmers to monitor the amount of precipitation on their land, analyze revenue by holdings, field or crop, assess water, nutrient and photosynthesis levels of plants, calibrate spreaders and seeds, access precise weather reports, take pictures of their crops, and schedule land analysis or seek advice from professional agronomists. Farmers can receive training on AgroSens at the Digital Farm open days or at several other training locations across Serbia.
3)
Livestock breeding incentives regulations amended
March 21st, 2018, http://www.agronews.rs/nema-podsticaja-za-vise-od-300-krava-manje-od-10-krmaca/
The Ministry of Agriculture has amended the regulations surrounding livestock breeding and beehives. The new legislation now dictates that eligible persons can apply for incentives for at least three and at most 300 quality breeding dairy cows. Cattle breeders can also receive incentives for 30 quality breeding sheep or rams, 10 quality breeding nannies or goats and 10 quality breeding sows or hogs. Meanwhile, beekeepers must have between 30 and 200 beehives to qualify for their own incentives. Page 2
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4)
Subsidized fuel only for those engaged in agriculture
March 20th, 2018, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:
The Minister of Agriculture Branislav Nedimović has said that his department is working closely with the Ministry of Finance to locate a solution that will allow those farmers exclusively engaged in agricultural production to gain access to subsidized fuel. At present, there are 650,000 different registered farms and holdings, but only an estimated 370,000 of those are engaged exclusively in agriculture. As a result, Nedimović insists a new system must be implemented to ensure it is only available to those entitled to it and to avoid abuse of the initiative.
5)
Subsidized loans available to farmers
March 19th, 2018, http://agrovizija.rs/Index.php?id=3783
The Minister of Agriculture Branislav Nedimović announced a new line of subsidized loans are now available from March 19th and every agricultural holding in the country is eligible. Farmers can apply for loans of between EUR 300 and EUR 5,500, with preferential interest rates available. Those under the age of 40 will only have to pay 1% interest, while all other categories must pay 3%. In comparison to the standard bank interest rate of 7% or 8%, that represents a very favorable proposition. In contrast to other years, the Ministry is not interested in seeing fertilizer bills, but has stated it will pay RSD 4,000 per hectare to every agricultural producer. With regards to the IPARD funds that are now available to Serbian farmers, Nedimović said that two rounds of calls had already been held, garnering a total of 476 applications, and that five more would follow before the end of the year.
6)
New animal feed monitoring program launched
March 17th, 2018, http://www.agrosmart.net/vesti/program-mera-ocuvanje-bezbednosti-hrane.html
The Ministry of Agriculture has announced the adoption of a new program aimed at monitoring the safety of animal feed throughout Serbia for 2018. The new guidelines will apply to feed of plant and animal origin in all facilities dealing with production, storage, distribution and sale of the product, and establishes a protocol for what actions must be taken in the event of the discovery of biological, microbiological or chemical contamination. Under the new program, it will be possible to stop traffic to and from the affected facility, prohibit parts of its operation or request a complete closure of the entire facility for a specified period of time. The program will be funded by the Ministry to the tune of RSD 200 million.
7)
Digital opportunities open to Serbian farmers
March 1st, 2018, http://www.agrosmart.net/vesti/digitalna-poljoprivreda-nije-skupa.html
Despite the fact that many Serbian farmers believe that digital technologies are too expensive for an average-sized agricultural holding, there are many opportunities available to them. BioSense Institute in Novi Sad has launched the SMART-Akis platform, which provides farmers with all the necessary information on technological solutions in agriculture, allowing them to leverage these developments to their advantage. Meanwhile, two new projects under the EU program Horizon 2020 have been announced for this year, entitled Internet of Food \u0026 Farm 2020 and DIATOMICS. Applicants from across the EU are invited to send in their own ideas for new technological innovations in agriculture and the events follow two previous projects which took place at the BioSens Institute, FRACTALS and CATANA. Previous applicants have attested that the application process was simple and stress-free. Page 3
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Foreign Aid 8)
First call for applications under IPARD’s Measure 3
March 27th, 2018, http://uap.gov.rs/vesti/vesti-2018/raspisan-prvi-javni-poziv-za-ipard-podsticaje-u-okviru-mere-3/
The first public call for applications under Measure 3 of IPARD funding for investments in physical assets related to the processing and marketing of agricultural and fishery products has been made. Successful applications will receive funding for investments in the amount of up to 50% of the total investment cost, with an additional 10% allowed for investments made in the fields of waste and wastewater management. The minimum amount given to a successful application is EUR 10,000, while the maximum amount is EUR 1,000,000, with the investment projects in the dairy sector eligible for up to EUR 2,000,000.
9)
First green innovation vouchers awarded in Serbia
March 13th, 2018, http://www.ebrd.com/news/2018/first-green-innovation-vouchers-awarded-in-serbia-.html
The Green Innovation Voucher Scheme was launched this month in Belgrade, with 10 companies receiving a total of EUR 150,000. A joint project between the European Bank for Reconstruction and Development (EBRD), the Central European Initiative and the Delivering Resource Efficiency Investments program (DRIVE) from Austria, the scheme aims to increase the capacity of small- and medium-sized enterprises in the field of green technologies and resource efficiency. Winners of the vouchers will work with local universities and other research providers to better prepare for climate change and support the long-term economic competitiveness of the country. Winning applications can receive a voucher of up to EUR 20,000 and some of the areas being investigated include smart irrigation systems and improved waste management.
10) GIZ launches free software for organic farmers March 6th, 2018, https://www.danas.rs/ekonomija/giz-poljoprivrednicima-besplatan-softver/
German development agency GIZ has announced the launch of free software Agrolife, which was developed by Greensoft as part of the German-Serbian Development Coordination Program. Aimed specifically at organic producers, the software allows farmers to upload data into a digital database, monitor administrative activities in the field and reduce the margin for error when keeping records and compiling reports. In this manner, organic producers can significantly save on time when keeping track of complex data and avoid the inconvenience of paying large sums of money to a third party to look after their accounts for them. Training for the new system started this month and it is hoped that by the end of 2018, as many as 70% of organic producers in Serbia will organize their bookkeeping using the software.
Private Sector 11) Seminar on agricultural cooperatives held March 29th, 2018, https://jugpress.com/kako-stojimo-sa-zadrugama/
The Agricultural Union of Jablanica held a seminar on agricultural cooperatives and how they can help revive agriculture in Serbia. At the seminar, it was observed that only one in every 300 farmers is a cooperative member in Serbia, whereas this figure is one in three in Western Europe. If Serbian farmers come together into cooperatives, they will be able to better take advantage of increased market Page 4
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opportunities and realize greater profits. This, in turn, will help revive agriculture in the country. In order to encourage farmers to join cooperatives, however, the state needs to be more proactive by offering incentives and working with developed countries to bring their experience with cooperatives and consolidated farming to Serbia.
12) The state of agricultural insurance in Serbia March 28th, 2018, http://www.rtv.rs/sr_ci/vojvodina/banat/neophodnost-osiguranja-u-poljoprivredi_905095.html
Agricultural production is becoming increasingly expensive, as are the costs of investments in the sector. Moreover, agriculture is subject to greater losses from weather conditions, a state that is likely only to increase due to climate change. In fact, estimates from meteorological stations have observed that, with regards to precipitation, 40% of years are too dry and 30% are too wet, leaving only 30% of years as having the right amount of precipitation necessary for an ideal harvest. This leads to a question: why are farmers not insuring their crops? The most common reasons are a lack of trust and, to a certain extent, a mistrust of the insurance industry. However, these issues need to be overcome as production losses in some years can be high, even total for some farmers. In order to help farmers understand the necessity of agricultural insurance, a reframing of how it is viewed is needed. Instead of considering agricultural insurance an additional (and optional) expense, it should be thought of as an investment in production, just like seeds, fertilizers and protective agents. It should be noted that farmer attitudes regarding agricultural insurance are likely to shift in the near future, especially as greater protection of agricultural production in general become more evident, such as with the construction of anti-hail networks and the introduction modern irrigation systems. Moreover, as farmers are increasingly being offered favorable loan conditions for improvements and the general stimulation of the sector, agricultural insurance is likely to become more popular due to financial institutions wanting to minimize risks by protecting investments.
13) NLB Bank grants subsidized loans March 22nd, 2018, http://www.agronews.rs/nlb-banka-odobrava-subvencionisane-kredite/
NLB Bank Belgrade has granted the first subsidized loans to Serbian farmers from the Ministry of Agriculture’s development program. Loans from this program are intended for investment in agricultural machinery and equipment, crops, flower growing, fruit growing, livestock, the supply of animal feed, vegetable growing and viticulture. All loans will be approved in RSD with no currency clause, with a repayment term of up to 12 months for short-term loans and 36 months for long-term loans. For certain types of agricultural machinery and equipment, it is possible to extend the repayment term up to 60 months, and a grace period of up to one year is available as well. Young farmers and those from undeveloped areas will receive an interest rate of just 1%, while all other beneficiaries will pay 3%.
14) EU apple shortage represents chance for Serbia March 16th, 2018, http://www.politika.rs/scc/clanak/400226/Nestasica-jabuka-u-EU-sansa-za-Srbiju
Last year’s poor harvest has resulted in a shortage of apples in the EU, affording Serbia the chance to capitalize upon this gap in the market. 2017 apple production in the EU fell by a third, equating to around a one-million-ton deficit and the weakest harvest in 10 years. With Belgium, Germany, Italy and the Netherlands all suffering particularly poor yields, buyers have turned to Serbia and the Ukraine and are willing to pay EUR 0.23 per kilogram. The main reasons for the deficit are a lack of labor and an Page 5
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unseasonably cold spring last year, as well as extended sanctions against Russia from the EU. Russia is one of the biggest markets for apple exportation, importing 700,000 tons annually. However, an EU embargo placed upon the Soviet country has allowed Serbia to capitalize and become the biggest exporter to Russia since 2015. Indeed, Serbia’s apple exports have grown impressively over the last few years, from just 65 million tons in 2012 (and 21st in the list of global exporters) to almost double that in 2016 (and 11th in the overall leaderboard). However, it should be remembered that EU sanctions against Russia will not last forever. Furthermore, Russia has set itself the goal of becoming self-sufficient in apple production over the coming years; in the last 12 months alone, it managed to reduce imports by 4% and that self-sufficiency is expected to improve going forwards. With that in mind, Serbia and other countries must look for new markets elsewhere.
15) Family company pioneers fruit-drying technology March 1st, 2018, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:714030-Suse-voce-a-ono-kao-sveze
Family-run business Drenovac from Arilje in southwestern Serbia is the market leader in lyophilization, a state-of-the-art drying process which allows dried fruits to remain fresh and retain the majority of their nutrients. The process works by first freezing the fruit, then removing excess frozen water through sublimation and increasing desorption levels to a point where microorganisms and chemical reactions are not supported. In this manner, Drenovac are able to maintain crispiness and dryness in their produce which retains the majority of its nutritional value, including the easily-lost vitamin C. Founded 26 years ago, the company had its origins in simply freezing fruit, with its biggest focus being on raspberries. However, increased competition over the years forced Drenovac to investigate innovative technologies, including lyophilization. Since adopting the process in 2011, the family have never looked back, increasing their operations to include apricots, apples, blueberries, plums, sour cherries, strawberries and others, as well as making additional products such as chocolate fruits, fruit pieces and powders. Today, many household healthy food brands source their raw materials from the company for the manufacture of condiments, honey, muesli and oatmeal, and Drenovac exports about half of its production to the EU and the US. The company plan to expand further in the coming years.
16) Lack of organic matter a problem for Vojvodina March 1st, 2018, https://www.danas.rs/ekonomija/kako-zaustaviti-ubijanje-srpske-poljoprivrede/
Experts have warned that levels of organic matter, otherwise known as humus, have fallen below their optimal concentration of 3%. As recently as 50 years ago, organic matter in Vojvodina stood at 5%; in the last 20 years, that level has fallen from 3.5% to below 3% and a mere 1% in some areas. This is having a detrimental effect on crop yields and if the concentrations continue to fall, it could result in permanent land impoverishment in the province and in the whole country, as well. The decline in humus has been caused by intensive agricultural production over the last half a century and a gradual switch away from natural fertilizers (such as manure) to mineral ones. While experts have welcomed the advances in irrigation across the country (3% of Serbia’s 4.1 million hectares of arable land are now irrigated), they warn that those developments will mean nothing if the levels of organic matter do not increase. Harvesting crop residues instead of burning them could alleviate the situation, while subsidizing farmers who cultivate mushrooms would also help. Another solution could be the rejuvenation of the cattle industry. Jovica Vasin, an expert from the Institute of Field and Vegetable Crops in Novi Sad, notes that the four largest landowners in the country own over 120,000 hectares of arable land between them. If Page 6
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just a single cow was placed on each hectare, Serbia would boast a livestock fund of 120,000 cattle (at present it only has 15,000 to 20,000 cattle). This would not only provide abundant fertilizer to increase humus in the soil, but also open up export opportunities for beef and veal – both of which are markets Serbia has never fully capitalized upon. In this manner, Vasin believes the nation could solve several agricultural problems in one fell swoop.
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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.