09/2018
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36 S e r b i a Agriculture Bulletin RSD 100 million in grants for refrigeration equipment The future of agriculture is digital
Agro-business competition comes to a close
2018 production exceeds 10-year average
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6)
RSD 100 million in grants for refrigeration equipment ................................................................... 2 RSD 10 million allocated for organic producers in Vojvodina ......................................................... 2 The future of agriculture is digital ................................................................................................... 2 Farm survey to commence in October ............................................................................................ 2 RSD 200 million in assistance to Kosovo and Metohija ................................................................... 3 New complex agricultural cooperative in Gornji Milanovac ........................................................... 3
Foreign Aid ................................................................................................................. 3 7)
Agro-business competition comes to a close .................................................................................. 3
Private Sector.............................................................................................................. 4 8) 9) 10) 11) 12) 13) 14) 15) 16)
Raspberry producers protest as prices fall ...................................................................................... 4 2018 production exceeds 10-year average ..................................................................................... 4 Lack of labor force driving increased food prices ............................................................................ 4 Imlek provides 709 heifers to 96 farms ........................................................................................... 4 3 leading Russian retailers to import Serbian food products .......................................................... 5 Agreement signed to strengthen organic production ..................................................................... 5 Wheat to be imported despite surplus of domestic wheat ............................................................ 5 Smart watering systems come to Serbia ......................................................................................... 6 Fruit processing factory to be constructed in Priboj ....................................................................... 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 » BFC Max-Högger-Strasse 6 CH-8048 Zurich, Switzerland
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BFC Agriculture Bulletin
State Initiatives 1)
RSD 100 million in grants for refrigeration equipment
October 17th, 2018, http://www.agrosmart.net/vesti/pokrajina-opremanje-hladnjaca-dala.html
Vuk Radojevic, the Provincial Agriculture Secretary of Vojvodina, has awarded 68 grant contracts to beneficiaries within the framework of a competition intended for co-financing cold storage equipment for registered agricultural producers. The total value of the investment is approximately RSD 224 million, with RSD 100 million being provided by the Provincial Secretariat. The aim of the competition is to support agricultural producers in equipping small capacity refrigerators for the collection, storage and preparation of fruits and vegetables for distribution.
2)
RSD 10 million allocated for organic producers in Vojvodina
September 24th, 2018, http://www.rtv.rs/sr_ci/vojvodina/novi-sad/konkurs-deset-miliona
The Provincial Agriculture Secretary of Vojvodina has announced a competition for RSD 10 million in cofinancing funds. A maximum of RSD 1 million per application will be allocated to cover up to 80% of the costs associated with the control and certification of organic production as well as for the procurement of organic production machinery. To be eligible for the competition, an entity must be registered in the Register of Agricultural Holdings and have an active status. Machines purchased from the beginning of the year can also be considered within the competition; however, they must be documented with invoices, delivery notes, bank statements, warranty sheets and other supporting documentation. Applications for the competition will be accepted until November 1, 2018.
3)
The future of agriculture is digital
September 21st, 2018, https://www.danas.rs/ekonomija/popovic-digitalizovati-poljoprivredu/
Digitization is the future of agriculture, but it should also be its present as the digitization of agriculture has been shown to optimize yields while also reducing production costs 30-40%. During a visit to a digital farm in Krivaja, Nenad Popovic, Minister without Portfolio in Charge of Innovation and Technological Development, emphasized how new technologies can increase yields by 2-4 times and called for the government to undertake maximum efforts to apply new agricultural-related technologies across the country. The Minister also announced that the company BioSens plans on opening more digital farms throughout Serbia, including spending EUR 14 million on the construction a new building with adequate conditions and space for further research on agricultural technologies. The European Investment Bank (EIB) has also made EUR 200 million available to help connect agricultural actors with innovative technological solutions.
4)
Farm survey to commence in October
September 17th, 2018, https://www.danas.rs/drustvo/zrenjanin-velika-anketa-u-gazdinstvima/
The Statistical Office of the Republic of Serbia is expected to begin a survey of farms starting on October 1, 2018. The survey, being conducted over a three-year period, takes place between two agricultural censuses and is an important for the agricultural statistics system. In total, Survey interviewers will visit 120,000 farms throughout Serbia and collect data on used agricultural land, cattle, levels of
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mechanization, labor and production methods. The data will also serve as the basis for updating the Statistical Register of Agricultural Holdings. The survey is being financed through European Union (EU) pre-accession funds and the national budget.
5)
RSD 200 million in assistance to Kosovo and Metohija
September 8th, 2018, http://www.minpolj.gov.rs/pomoc-poljoprivrednicima-na-kosovu-i
The Ministry of Agriculture has provided RSD 200 million in aid to farmers in Kosovo and Metohija. Specifically, RSD 110 million was provided for the purchase of planting material, and RSD 90 million was provided for the procurement of agricultural machinery. The Ministry hopes that the aid will provide new jobs, help entrepreneurs get started in agricultural production and support existing development.
6)
New complex agricultural cooperative in Gornji Milanovac
September 7th, 2018, https://beta.rs/ekonomija/ekonomija-srbija/96687-krkobabic-u
Minister of Regional Development Milan Krkobabic announced that the next experimental complex agricultural cooperative will be formed in the Gornji Milanovac municipality next year. The cooperative will be responsible for processing raw materials into final products, uniting several specialized cooperatives in the process. Minister Krkobabic also noted the potential for Gornji Milanovac to develop organic production as a way of increasing value and taking advantage of an increasingly popular product sector. This year, RSD 825 million was allocated for cooperative development by the government; next year, that figure is expected to rise to EUR 25 million.
Foreign Aid 7)
Agro-business competition comes to a close
September 5th, 2018, http://www.agrosmart.net/vesti/produzen-konkurs-podrsku-razvoju-agro.html
A competition for agro-industrial businesses came to a close on September 10, 2018. 10 agro-industrial businesses will be selected to take part in activities tailored each’s individual needs. Support will include business training, mentoring, help in participating at selected regional food and beverage fairs and assistance with promotional and sales activities. Additionally, five businesses will be selected to receive international certifications (e.g. HACCP, ISO 22000, ISO 14001, etc.). Furthermore, at least five businesses will have the opportunity to participate in activities aimed at bolstering exports to new markets. The competition was held as part of the ‘Aid for Trade - Support to Strengthening the Production Capacity of the Agro-Industrial Sector in the Republic of Serbia’ project, which is funded by the Russian Federation and implemented by the United Nations Development Program (UNDP). The goal of the project is to strengthen businesses through improving their competitiveness and positioning in markets as well as by creating added value, helping businesses get certifications and promoting accesses to new markets.
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BFC Agriculture Bulletin
Private Sector 8)
Raspberry producers protest as prices fall
September 27th, 2018, http://www.021.rs/story/Info/Biznis-i-ekonomija/197640/Cena-maline-pala-na-40-dinara.html
Raspberry producers are once again protesting as the final price for second-class raspberry varieties has fallen to RSD 40-80 per kilogram and the price for first-class varieties has fallen to RSD 100-130 per kilogram. In general, producers expected prices between RSD 125-130 per kilogram and RSD 150-160 per kilogram. The discrepancy between the final prices and expected prices is the result of the anticipated quality of Serbian raspberries this year, especially in relation to raspberry production from other countries (e.g. Chile and Poland). Raspberry producers protested prices three months ago by blocking the main road to Montenegro in Prijepolje. The protests also come two years after the state had promised to reach an agreement with cold storage providers for prices of RSD 125-130 per kilogram.
9)
2018 production exceeds 10-year average
September 24th, 2018, http://www.rtv.rs/sr_ci/ekonomija/nedimovic-rast-proizvodnje
In general, 2018 agricultural production numbers are higher than the 10-year (2008-2017) average. Wheat production this year is 17.7% higher, as are corn production (15.2%), sunflower production (58.5%) and soybean production (47.2%). Moreover, apple and plum production are also expected to be higher this year than the 10-year average, by 21.8% and 1.8% respectively. On the other hand, sugar beet production is down 9.5% compared to the 10-year average. Compared to last year’s figures, production is up for wheat (29.3%), corn (73.3%) sunflowers (35.7%), soybeans (40%) and sugar beets (2.8%). The production of certain fruits is also up compared to last year, specifically raspberries (37.5%), apples (21.6%) and plums (30.1%).
10) Lack of labor force driving increased food prices September 20th, 2018, https://www.srbijadanas.com/biz/posao/niko-nece-da-radi-na
Many Serbian agricultural producers, especially fruit growers, are finding it more and more difficult each year to attract the labor force necessary for production and harvesting. There has been a mass exodus of young people in recent years from agricultural areas, many of whom find greater economic opportunities elsewhere in Europe. The problem is further exasperated by smaller agricultural households than in the past (i.e. smaller families). This has had the result of an increase of at least 10% in the price of domestically-produced fruits and vegetables, something starting to be felt by end consumers.
11) Imlek provides 709 heifers to 96 farms September 20th, 2018, http://www.novosti.rs/vesti/naslovna/ekonomija/aktueln
Serbian dairy producer Imlek has given 709 heifers to 96 Serbian dairy farms, a total investment of approximately EUR 1.1 million. In total, Imlek works with approximately 4,000 raw milk suppliers from around the country and is dedicated to helping them boost the quality of raw milk in the country. To this end, the producer also approves short-term loans of up to 12 months to milk producers as well as longer-term loans of 3-5 years for strategic investments in production development. Imlek has stated Page 4
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that they have seen a positive trend in recent years in terms of the quality of raw milk they receive for processing and are working to ensure that this continues into the foreseeable future. The company believes this especially important as consumers across Europe turn to dairy products for both healthy sources of fat and protein as well as for sources of desserts.
12) 3 leading Russian retailers to import Serbian food products September 18th, 2018, http://www.politika.rs/scc/clanak/411382/Vodeci-ruski-trgovinski-lanci-ugovorili-uvoz-hrane-iz-Srbije
Several Serbian companies participated at the World Fowling Moksva Fair, one of the largest international food industry fairs in the former Soviet Union. Serbian participants were able to use the fair to present their products to potential customers as well as improve relationships with existing customers. During the fair, Serbian companies were able to successfully negotiate new business arrangements with three of Russia’s largest food retailers (Magnit, Dixi and Lenta). The three Russian retailers are mainly interested in importing fresh and frozen fruits and vegetables from Serbia as well as some meat products. Negotiations also took place that could lead to Serbian companies providing various types of fresh salad mixtures to markets in Russia and the European Union (EU). The World Fowling Moksva Fair, which took place on over 56,000 square meters in Moscow, brought together over 1,600 exhibitors from 62 countries in total.
13) Agreement signed to strengthen organic production September 13th, 2018, http://www.agrosmart.net/vesti/sporazum-jacanje-nauke-prakse-organskoj.html
An agreement to strengthen organic production has been signed in Selenca as part of the 12th International Organic Production Forum. The agreement will strengthen capacities for scientific research and development activities as well as promote knowledge transfers regarding organic production to farmers wanting to start or switch to organics. There are a number of possibilities for research and scientific work to be significantly more intensive in this field, the results of which can be used to bolster work done by institutions, companies and organic food producers. Additionally, the agreement will work to provide theoretical and practical education to farmers via "open schools". These schools will feature education regarding the entire organic production process as well as how to market organic goods in different markets and take advantage of an increasingly organic-friendly world.
14) Wheat to be imported despite surplus of domestic wheat September 10th, 2018, http://www.021.rs/story/Info/Biznis-i-ekonomija/196601/I-pored
Despite an expected yield of 2.9 million tons of domestically-produced wheat (more than twice the amount necessary to meet domestic demand), there is a proposal to abolish customs protections and allow up to 40,000 tons of quality wheat from Hungary to be imported. The reason for this is that the quality of flour produced in Serbia has dropped drastically in recent years, and flour producers fear losing traditional markets to producers from other countries. Serbian wheat producers insist that there is high-quality domestically-produced wheat available for purchase; however, a lack adequate storage and sorting facilities make it difficult for processors to ensure the quality of what they are purchasing. This has led to a situation where flour producers are willing to pay more for imported wheat as a way of ensuring quality end products. Although using imported wheat is expected to contribute to the production of better quality flour and help Serbian producers preserve traditional markets, there are concerns over how sustainable this is for the long term. In the end, there needs to be a concerted effort to ensure quality wheat production in the country to protect both domestic wheat producers and domestic flour producers. Page 5
BFC Agriculture Bulletin
15) Smart watering systems come to Serbia September 5th, 2018, https://www.ekapija.com/en/start-up/2243833/controllers-manage
Remote control for irrigation is a developing product for agriculture around the world and has now entered the Serbian market. So-called smart watering systems operate by collecting data about the state of the land plot and using that data to manage the irrigation process. Such systems are advantageous as they allow users to have control them via mobile and web-based applications, meaning that they do not have to physically be in the field to monitor and adjust irrigation measures. The only requirement for the system is to have electricity and cell phone coverage at the land plot. Current systems available in Serbia target fruit growers with land plots of up to 50 hectares; however, producers are working to further develop their systems for use on larger areas and plan to integrate machine learning solutions with weather stations in order to eventually provide customers with fullyautomated irrigation solutions.
16) Fruit processing factory to be constructed in Priboj September 3rd, 2018, https://www.ekapija.com/en/news/2241138/italian-food-to-invest
Italian Food, a well-known fruit processing company, is planning to invest EUR 10 million in the construction of a processing factory in Priboj. The factory will be used for the production of fruit juices, purees and concentrates. Although the exact details of the new factory have yet to be publicly released, fruit growers in the area are optimistic that the factory will provide them with greater options for where to sell their products as, until now, they have been largely at the mercy of the conditions and prices set by the few cooling plant owners in the area. It is expected that the factory will be interested in purchasing, among other fruits, raspberries, forest fruits, apples, plums, cherries, apricots, peaches, strawberries and pears. The factory is also expected to employ 50 people once operational.
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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.