10/2018
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37 S e r b i a Agriculture Bulletin First modern greenhouse under the Agrinno project presented Serbian fisheries have great potential Cooperation agreement between FAO, EBRD and Serbia Grains Plums are most popular in Serbian orchards
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5)
First modern greenhouse under the Agrinno project presented .................................................... 2 Regulations adopted for investment incentive programs ............................................................... 2 311 cooperatives established in the past year ................................................................................ 2 Farmers not required to keep business books ................................................................................ 2 Serbian fisheries have great potential............................................................................................. 3
Foreign Aid ................................................................................................................. 3 6) 7) 8) 9)
Cooperation agreement between FAO, EBRD and Serbia Grains ................................................... 3 New call for IPARD incentive funding announced ........................................................................... 3 Nearly 1,300 IPARD grant applications from young farmers .......................................................... 3 Israeli companies to invest in Serbian agriculture .......................................................................... 4
Private Sector.............................................................................................................. 4 10) Plums are most popular in Serbian orchards .................................................................................. 4 11) Serbia’s wheat quality problem ....................................................................................................... 4 12) New irrigation systems being constructed ...................................................................................... 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)
First modern greenhouse under the Agrinno project presented
October 24th, 2018, http://www.psp.vojvodina.gov.rs/VestiCyr.aspx?Id=21865
The first modern greenhouse under the Agrinno project was presented to participants at the ‘Growing Vegetables in Innovative Greenhouses’ workshop. The project plans on setting up three more such greenhouses at secondary agricultural schools in Futog, Ruma and Vrsac (Vojvodina). The greenhouses will be used as educational and motivational tools and will all be equipped with the latest equipment and technology. The Agrinno project aims to strengthen innovative approaches and the entrepreneurial spirit of young people in the field of agribusiness. The project has a total value of EUR 325,000 and is a partnership between the European Union (EU) and Provincial Secretariat for Agriculture.
2)
Regulations adopted for investment incentive programs
October 22nd, 2018, http://uap.gov.rs/vesti/vesti-2018/novi-pravilnik-o-podsticajima
The Ministry of Agriculture has adopted regulations regarding agricultural investment incentive programs in the milk, meat, wine, beer and strong alcoholic beverages sectors. The new regulations detail all aspects of the investment programs, including an RSD 5 million maximum allowed per beneficiary. Going forward, beneficiaries will also be required to be registered as active in the Register of Agricultural Holdings or an agricultural cooperative with at least five different commercial members registered as active in the Register of Agricultural Holdings.
3)
311 cooperatives established in the past year
October 19th, 2018, https://beta.rs/ekonomija/ekonomija-srbija/99315-krkobabic-za
Milan Krkobabic, the Minister of Regional Development, announced that 311 cooperatives have been formed in Serbia with the last year. The Minister credited the work of the ‘500 Cooperatives for 500 Villages’ program for the results. He added that the government has allocated RSD 825 million this year and expects RSD 3.3 billion next year for the development of cooperatives in the country. The Minister also noted the importance of forming complex cooperatives for increasing the production of valueadded products and establishing strong brands. Two such cooperatives were formed this year, and the Minister plans on proposing EUR 5 million for the establishment of more in the coming year. The state believes that cooperatives are crucial for revitalizing rural areas of Serbia as the average farm in Serbia is only 2.5 hectares. State funds are available to cooperatives for the procurement of basic herds, mechanization and perennial plants.
4)
Farmers not required to keep business books
October 17th, 2018, https://beta.rs/ekonomija/ekonomija-srbija/99151-nedimovic
Speaking during a radio interview, Agriculture Minister Branislav Nedimovic cleared up some confusion, announcing that not all agricultural holdings are obligated to keep business books. The Minister clarified that only those that are in the VAT system and registered as entrepreneurs are required to do so. The Minister also noted that the country is active in exploring greater market diversification for its agricultural products, especially potential opportunities in China, India and North Africa. Page 2
BFC Agriculture Bulletin
5)
Serbian fisheries have great potential
October 8th, 2018, https://www.danas.rs/ekonomija/pks-iskoristiti-potencijal-srbije-za-razvoj-ribarstva/
Although not initially considered of great importance for Serbia when it first started on the path towards the European Union (EU), experts and government officials have come to understand the potential of developing Serbia’s freshwater aquaculture. If Serbia is to take full advantage of this sector, it must take advantage of EU projects related to the processing and export of fishery products and ensure that all segments of control and inspection are aligned with EU regulations. Although 16 fish processing facilities currently have an EU export license, it will be important for the sector to continue along this path, especially as Serbia exports 40.6% of its fishery products to the EU. Experts stress that the most important items for Serbia to concentrate on are: market organization, the development of the aquaculture sector, proper data collection and the control of illegal, unreported and unregulated fishing.
Foreign Aid 6)
Cooperation agreement between FAO, EBRD and Serbia Grains
October 29th, 2018, https://www.ekapija.com/en/news/2294597/new-cooperation
The Food and Agriculture Organization of the United Nations (FAO), the European Bank for Reconstruction and Development (EBRD) and Serbia Grains have signed a cooperation agreement regarding the continuation of institutional, professional and financial support for the development of the Serbian agricultural and trade sectors. Specifically, the agreement establishes the ‘Development of the Capacities of Associations in Agribusiness in New Markets’ project, which aims to increase successful exports from Serbia to foreign markets via participation in the Global Grain Geneva 2018 Conference. The agreement also envisages the organization of a one-day grain conference in Serbia in the second half of 2019 as well as the organization of a crop tour ahead of the next harvest.
7)
New call for IPARD incentive funding announced
October 24th, 2018, http://uap.gov.rs/vesti/vesti-2018/raspisan-treci-javni-poziv-za-ipard-podsticaje-u-okviru-mere-1/
The Ministry of Agriculture has announced the third public call for Instrument for Pre-accession Assistance Rural Development (IPARD) applications regarding incentives for investments in physical agricultural assets. Applications will be accepted for investments in physical assets as well as eligible costs related to construction and the purchase of new equipment (except tractors) in the spheres of milk, meat, fruit, vegetable and other crop production. Funding will cover 60-70% of the total cost of investments, which will range between EUR 5,000 and EUR 1,000,000. In total, more than RSD 3 billion has been allocated for this round of applications. The deadline for the submission of applications is January 9, 2019.
8)
Nearly 1,300 IPARD grant applications from young farmers
October 12th, 2018, http://www.minpolj.gov.rs/pristiglo-gotovo-1300-aplikacija-mladih-poljoprivrednika/
Speaking at the Agrosirm agricultural fair in Sremska Mitrovica, Agriculture Minister Branislav Nedimovic announced that 396 producers have applied so far for Instrument for Pre-accession Assistance Rural Development (IPARD) funds to help farmers receive new tractors. A new round of applications is also Page 3
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planned within the next two months. The Minister also noted that 1,276 applications have been received from young farmers (40 years old or younger) for grant funds to startup their businesses. The Minister expects that 500-600 of these grant applications will be paid out in the near future. The Minister added that favorable bank loans are also available to supplement the grants and help others get started in agriculture.
9)
Israeli companies to invest in Serbian agriculture
October 11th, 2018, http://www.minpolj.gov.rs/nedimovic-sa-izraelskim-kompanijama
Agriculture Minister Branislav Nedimovic reached an agreement with four Israeli companies for the investment of EUR 30 million into Serbia’s agricultural sector. The investments will be made into the slaughtering industry, fruit and berry processing and flower growing. Such investments are extremely important for agricultural producers in Serbia as they help open new markets and ensure better prices for their products.
Private Sector 10) Plums are most popular in Serbian orchards October 29th, 2018, https://www.dnevnik.rs/ekonomija/poljoprivreda/srbi-i-dale-najvise-vole-da-sade-slivu-29-10-2018
The Republic Institute for Statistics, in cooperation with the Ministry of Agriculture, conducted research on orchards in Serbia in 2017 and found that the most abundant fruit species in Serbian orchards is the plum. Plums were found to occupy 72,116 hectares of orchards, 39% of total orchard space in the country. Raspberries were found to occupy 26,360 hectares (14%); apples occupied 25,281 hectares (14%); and cherry trees occupied 18,956 hectares (10%). Plums, apples and raspberries were most common in the Sumadija region and in Western Serbia, with the two regions accounting for 89% of plum orchards, 69% of raspberry orchards and 39% of apple orchards. The most abundant variety of apple in Serbia was found to be the ajdared variety (41% of total apple orchards). The most abundant variety of pear was the viljamovka variety (58% of total pear orchards). Yellow meat peaches accounted for 88% of the total peach orchards, with white meat peaches accounting for the remaining 12%.
11) Serbia’s wheat quality problem October 27th, 2018, http://www.politika.rs/scc/clanak/414362/Trazili-najkvalitetniju-psenicu-u-Srbiji-prodavaca-nije-bilo
Although Serbia produced record volumes of wheat this year, it is difficult for buyers to find high quality (A1) wheat for purchase. The problem stems from a combination farmers largely avoiding producing higher quality wheat in order to get higher yields as well as storage facilities in Serbia not storing wheat based on quality. The end result is wheat of various qualities being mixed together and only average or below average wheat being available for export or processing. The lack of quality wheat could lead to problems with retaining traditional markets as well as with opening up new ones.
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12) New irrigation systems being constructed October 26th, 2018, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno
New irrigation systems are being built in Serbia using a USD 100 million credit line taken out by the government with the Abu Dhabi Fund. The credit line, extended to the state at an interest rate of 1% per annum, will enable new irrigation systems to cover 23,000 hectares in Vojvodina and 11,000 hectares in Macva. Irrigation systems are important for the development of agriculture in Serbia as currently only about 3% of Serbian arable land is covered by an irrigation system. Experts warn, however, that Serbia must also work to resolve the fertilizer problem in the country or face increasingly smaller yields and an unviable agricultural sector.
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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.