11/2018
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38 S e r b i a Agriculture Bulletin 73 contracts signed for grants for cooperative development Radojevic opens dialogue on better organic production Serbia among top 10 exporters of wheat and corn BionSens Intitute bringing new technology to small farms
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7)
First Italian-Serbian forum held on green and circular economies ................................................. 2 Grants to empower 52 rural women ............................................................................................... 2 73 contracts signed for grants for cooperative development......................................................... 2 Serbia, UAE harmonize certificates and improve trade .................................................................. 3 Data on state-owned agricultural land available online ................................................................. 3 Serbia working to revive cooperatives ............................................................................................ 3 Nedimovic to push processing center to raw material sites ........................................................... 4
Foreign Aid ................................................................................................................. 4 8) Radojevic opens dialogue on better organic production ................................................................ 4 9) Funding for agricultural development on the rise .......................................................................... 4 10) Call for more land consolidation efforts .......................................................................................... 5
Private Sector.............................................................................................................. 5 11) 12) 13) 14) 15)
Awareness of organic farming starting to grow .............................................................................. 5 Serbia among top 10 exporters of wheat and corn ........................................................................ 5 Modern digital farm being built near Sombor ................................................................................ 5 BionSens Intitute bringing new technology to small farms ............................................................ 6 New game to innovate how farms are transformed ....................................................................... 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)
First Italian-Serbian forum held on green and circular economies
November 26th, 2018, http://www.rts.rs/page/stories/sr/story/125/drustv
The Konfindustrija Srbija Association, in cooperation with the Italian Embassy and the Serbian Ministries of Agriculture and Environment, organized the first Italian-Serbian forum on sustainable green and circular economies. At the forum, potential investors were presented with 22 projects of the Italian National Research Council that the Serbian government has deemed of great importance. Green and circular economies have proven capable of creating additional turnover while also reducing raw material consumption and lessening negative impacts on the environment. Serbia currently recycles about 10% of used products and is 20 years behind developed European countries in this context. Organizers hope that the forum will expedite the process of developing a strong, green circular economy in Serbia.
2)
Grants to empower 52 rural women
November 23rd, 2018, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.
Within the framework of the ‘Economic Empowerment of Women in the Rural Areas of Sumadija and Kolubara’ project, 52 women from rural areas in the Sumadija and Kolubara districts have received grants for food production, rural tourism and old crafts. In addition to funding, the women received technical support though a series of trainings and consultations related to technology, product design and sales. Rural women represent an important potential for social development but are frequently excluded from social and economic flows as they traditionally do not exercise employment rights and work less. The process of changing this is not one that will fix everything overnight. For that reason, it is important to show examples of how rural life can be beautiful and of a high quality, including the experience of these 52 rural women. The ‘Economic Empowerment of Women in the Rural Areas of Sumadija and Kolubara’ project is being implemented by the Regional Agency for the Economic Development of Sumadija and Pomoravlje.
3)
73 contracts signed for grants for cooperative development
November 22nd, 2018, http://www.politika.rs/scc/clanak/416333/Srbija-dobila-73-fabrike-pod-otvorenim-nebom
The Minister in Charge of Regional Development has signed 73 contracts to award grants to cooperatives from all over Serbia. The Minister believes that these cooperatives will eventually become the backbone of the development of villages in Serbia. In total, old and newly-formed cooperatives received RSD 804 million and complex cooperatives received RSD 119 million. The grants were allocated within the framework of the state program supporting implementation measures of equal regional development.
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BFC Agriculture Bulletin
4)
Serbia, UAE harmonize certificates and improve trade
November 19th, 2018, http://www.minpolj.gov.rs/dogovoreno-dalje-usaglasavanje-sertifikata
Serbian Minister of Agriculture Branislav Nedimovic and United Arab Emirates (UAE) Minister of State for Food Security Mariam Al Mehairi have reached an agreement for halal certificates to be harmonized in Belgrade by the Emirates Authority for Standardization and Metrology (ESMA). The harmonization of veterinary certificates for the export of beef, lamb, goat, poultry and other meat meant for human consumption as well as milk and dairy products, eggs and egg products, honey and honey products with the UAE have all been finalized. Additionally, all necessary measures for the shipping of plant products and mixed-origin products between the two countries have also been harmonized. During their meeting, the Ministers also discussed the organization of an agribusiness forum in Belgrade this coming April. The forum would be an opportunity for producers from Serbia to present their goods to traders from the UAE and other countries in the Gulf region.
5)
Data on state-owned agricultural land available online
November 13th, 2018, http://www.minpolj.gov.rs/od-danas-na-portalu-geo-srbija-i-podaci
The online portal GEO Srbija now offers users the opportunity to view data on agricultural land under state ownership as part of the state’s program for the protection, use and arrangement of agricultural land. Data can be viewed under the topic ‘Agriculture – The Administration of Agricultural Land’ on the portal. For technical reasons, data does not include agricultural land under state ownership in the following municipalities: Aleksinac, Alibunar, Babusnica, Backa Palanka, Bela Crkva, Belgrade, Bujanovac, Varvarin, Vlasotince, Vrsac, Vladicin Han, Doljevac, Zajecar, Zitorađa, Kanjiza, Koceljeva, Kraljevo, Krusevac, Lebane, Pirot, Prijepolje, Rekovac, Surdulica, Cicevac, Uzice, Crna Trava, Cacak and Cajetina.
6)
Serbia working to revive cooperatives
November 12th, 2018, https://www.danas.rs/ekonomija/srbija-ozivljava-zadruge-po-ugledu-na-slovenacki-model/
Despite numerous government declarations over many years that agriculture will become the main economic jewel of Serbia, this ideal is still a far way off. Although this potential exists, land fragmentation and an unadjusted and chaotic system of subsidies are holding the sector’s potential back. Now, the country is looking towards cooperatives to revive the sector. The goal is for cooperatives to operate in a modern way that reflects European tendencies and standards. The plan could be beginning to pay off, although only time will tell. According to the Business Registers Agency, there are around 1,600 agricultural cooperatives in Serbia, and 54% of them are managed as active economic entities. Moreover, 314 new cooperatives and three complex ones have been opened in the last year and a half. To support cooperative development, the government allocated RSD 196 million last year and decided to more than quadruple that amount this year. The aim to is to encourage cooperatives with both horizontal and vertical thinking, eventually fostering complex forms that deal not only with purchases but also develop dryers, refrigerators, and organize and process final products. If this cooperative movement is to succeed, the most important thing is for farmers to gather as their limited land sizes limit their potential if they act individually. If farmers embrace cooperative development, however, perhaps agriculture will indeed become the economic jewel of Serbia as promised so many times.
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BFC Agriculture Bulletin
7)
Nedimovic to push processing center to raw material sites
November 3rd, 2018, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/preradjivacke-kapacitete
Agriculture Minister Branislav Nedimovic has announced his intention to work to transfer processing capacities from large industrial centers to locations nearer to raw materials. The statement comes amid a realization that Serbian agriculture needs to improve production capacities if it is to take the next step of agricultural development and move beyond just the export of raw materials. The Minister also noted that well-prepared and properly packaged raw materials are also an important step for the country to take. In addition, the Minister added that his Ministry is preparing a new regulation on quality schemes that will allow Serbia to protect products with geographical indications, another important measure to developing a national agricultural reputation and pushing agricultural development further.
Foreign Aid 8)
Radojevic opens dialogue on better organic production
November 27th, 2018, http://agriculture.einnews.com/news/serbia-agriculture
Vuk Radojevic, the Provincial Secretary for Agriculture in Vojvodina has met with Danish representative to discuss organic production and beekeeping. The main goal of this Mr. Radojevic’s visit was to become acquainted with the best international practices in organic production and beekeeping as well as to meet with various Danish representatives to discuss potential areas of cooperation. During the meetings, Mr. Radojevic introduced his Danish colleagues to the advanced organic production development plan of Vojvodina, noting that the provincial government’s plan to incentivize organic production reflects the specific needs and development potential of this sector.
9)
Funding for agricultural development on the rise
November 27th, 2018, https://www.danas.rs/ekonomija/najvise-za-mere-ruralnog-razvoja-i-ipard/
Out of the total of RSD 100 billion in subsidies allocated for next year, RSD 41.5 billion has been allocated for agriculture, RSD 7 billion more than was expected. The largest portion (RSD 37.2 billion) has been allocated for the Administration of Agricultural Payments. Rural development has been allocated RSD 8 billion, up from RSD 5.28 billion this year. Direct subsidy payments and special incentives funding will remain unchanged at RSD 22 billion and RSD 250 million respectively. The Ministry of Agriculture is also increasing credit support for stimulating agriculture, raising the amount from RSD 200 million this year to RSD 600 million next year. Additionally, RSD 3 billion is intended for the protection of animal health, and RSD 100 million has been allocated for subsidies to the safety of food of animal origin. RSD 120 million is planned for the phytosanitary food safety system; forestry improvement measures have been allocated RSD 750 million, and RSD 110 million has been allocated for hunting-related measures. The state will also allocate EUR 340 million for the improvement of agricultural land and RSD 40 million for the protection and use of land. It is worth noting as well that IPARD subsidies amounted to RSD 2.4 billion last year but will increase to RSD 6 billion this year.
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BFC Agriculture Bulletin
10) Call for more land consolidation efforts November 19th, 2018, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239
In the last ten years, consolidation efforts on agricultural land have been initiated on 125,000 hectares; however, more needs to be done to improve the process by adopting a special law and by establishing a more stable financing system. To this end, the Minister of Agriculture announced that a new law will regulate land consolidation in an effective and qualitative manner. The Minister also noted the importance of finding sources of financing to aid in this regard.
Private Sector 11) Awareness of organic farming starting to grow November 19th, 2018, http://www.rtv.rs/sr_ci/vojvodina/backa/budi-se-svest-o-ekoloskoj-poljoprivredi_968195.html
Recent studies seem to be indicating that organic production is proving to be a more efficient way of farming as it helps retain carbon in the soil and also reduces risks associated with soaking land with pesticides. Because of this and claimed health benefits from organic produce, organic farming is slowly becoming more and more popular around the world and within Serbia. Furthermore, because the branch is still developing in the country, there exists a great opportunity for organic producers to begin filling relatively open markets. Perhaps the strongest enticement for farmers to think about organic farming is that export markets, particularly in the West, are developing a strong demand for organic products, one that is expected to continue to grow strongly for the foreseeable future.
12) Serbia among top 10 exporters of wheat and corn November 15th, 2018, http://www.agronews.rs/srbija-medu-10-najvecih-izvoznika-psenice-i-kukuruza/
Serbia is still among the top ten exporters of wheat and corn in the world, ranking tenth in wheat exports and seventh in corn exports. This is bolstered by the relative high yields of these crops in Serbia per hectare. In fact, Serbia’s yield per hectare of wheat ranks second in the world, while its yield per hectare for corn is fifth in the world. Serbia is also looking for new export markets for these crops to further increase export numbers and is expected to begin wheat exports to Egypt this year. For the 2018/2019 economic year, Serbia is expected to export 2.7 million tons of corn, 1.7 million tons of wheat, 300,000 tons of soy, 137,000 tons of sunflower and 130,000 tons of rapeseed.
13) Modern digital farm being built near Sombor November 13th, 2018, https://www.ekapija.com/en/news/2308561/modern-digital-farm-to-be-built-in-doroslovo-near-sombor
A modern digital farm is being built in the village of Doroslovo (near Sombor). The farm, which is being designed for pig production, will feature a special digital dispenser in each compartment, though which the animals will receive food. There will be 740 Yorkshire sows on the farm, and approximately 36 farrowings are expected each week. Owners of the farm expect to fatten 30,000 pigs within the first year and 130,000 within the next five years.
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BFC Agriculture Bulletin
14) BionSens Intitute bringing new technology to small farms November 8th, 2018, https://www.danas.rs/ekonomija/biosens-donosi-digitalnu-poljoprivredu-u-mala-gazdinstva/
The application of new technologies in agriculture is typically slower in Serbia, especially for smaller farmers; however, the BioSens Institute is working to create new technologies for Serbia’s agricultural sector and make them available to all as part of a larger effort to modernize how agriculture is practiced in the country. By creating innovative solutions that are available to all, the BioSens Institute is helping even the smallest farmers in the country to be able to sustain themselves in an increasingly competitive global environment. One of the more interest creations of the institute is the AgroSens application, which helps farmers monitor crop conditions and enhanced planning activities. The application is a digital platform that provides users with basic information on agricultural activities, site-specific weather forecasts, satellite crop indices and up-to-date information on water availability, nutrient levels, soil conditions, diseases and pests. The BioSens Institute has also opened the first digital farm in Serbia. The digital farm provides any farmer the chance to learn, free of charge, about the opportunities digitalization and new technologies provide.
15) New game to innovate how farms are transformed October 31st, 2018, https://www.euronews.com/2018/10/31/innovative-farming-game-aims-to-transform-business-in-the-field
It is often difficult for farmers to test the potential impact of new technologies on their farm as it can take several months before crops show results. A “smart farming” game, however, is working to change that. GATES, developed by Serbian company InoSens, has created a farming game that provides an interactive simulation of new technology and tools in the market and how they would affect a specific farming situation. In the game, farmers create a tailored profile for their farm: land plot size, various crops grown and systems used for irrigation and fertilization. They then pick the product to test and observe how it would affect his/her farm over one or two seasons, including how much money could be made and saved as well as how much water and fertilizer would be required over that timeframe. Available both online and on mobile devices, GATES is currently being tested by 170 farmers in Spain, Serbia and Greece. The project cost EUR 1.2 million to create and was funded with EUR 1 million from the European Commission’s Horizon 2020 program. It is one of nine projects nominated for the European Commission’s ‘Innovation Radar Prize 2018’ in the Best Young SME category.
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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.