12/2018
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39 S er b i a Agriculture Bulletin Agricultural inspection services to be strengthened
Beef quotas to Turkey to increase
Results of IPARD support project presented
Wheat forecasts include reduced yields and quality
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3)
Agricultural inspection services to be strengthened ....................................................................... 2 First contracts signed with complex cooperatives .......................................................................... 2 Beef quotas to Turkey to increase ................................................................................................... 2
Foreign Aid ................................................................................................................. 2 4) 5)
‘Our Village’ project launches in Zajecar ......................................................................................... 2 Results of IPARD support project presented ................................................................................... 3
Private Sector.............................................................................................................. 3 6) 7) 8) 9) 10) 11)
Call to bring digital technology to indigenous varieties .................................................................. 3 Wheat forecasts include reduced yields and quality ...................................................................... 3 Agricultural exports at the same level as last year .......................................................................... 4 Poor wheat quality causing Serbia to lose markets ........................................................................ 4 Serbian organic production increasing ............................................................................................ 4 New plan to help increase yields 10% ............................................................................................. 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)
Agricultural inspection services to be strengthened
December 20th, 2018, http://www.rtv.rs/sr_lat/drustvo/u-poljoprivredi-uloga-in
Agriculture Minister Branislav Nedimovic has announced the state’s goal to strengthen agricultural inspection services. The Minister noted that the role of Serbia’s inspection services has been neglected since 2000 but that this will change thanks to the new Law on Inspection Supervision and modern developments in risk assessment. Over the course of the next two years, the state plans on providing budgetary support to give inspectors the necessary tools, knowledge and technical means to make inspection and supervision effective. The state’s role in inspection and supervision is important as it helps prevent negative incidents and builds consumer confidence. The state plan will establish new inspection and supervision measures over more than 95% of nutritional products by April 2019.
2)
First contracts signed with complex cooperatives
December 6th, 2018, http://www.rtv.rs/sr_ci/ekonomija/finansije/ugovori-sa-prvim-slozenim-zadrugama-u-srbiji_973196.html
Minister of Regional Development Milan Krkobabic has signed contracts giving grants to the first complex cooperatives in Serbia. Nasi Vocari, a complex cooperative from Pozega, received RSD 59.42 million for technological improvements. Slozni Vocari, a complex fruit growing cooperative from Novi Slankamen, received RSD 59.80 million for production process improvements. The government of Serbia believes that investing in complex cooperatives will help the country produce more and at a higher level of quality. In the end, it is expected that complex cooperatives will increase Serbia’s competiveness in foreign markets.
3)
Beef quotas to Turkey to increase
December 6th, 2018, http://www.minpolj.gov.rs/nedimovic-kvota-za-izvoz-govedine-u-tursku-sledece-godine-veca-za-40-odsto/
Minister of Agriculture Branislav Nedimovic has met with his Turkish counterpart, Bekir Pakdemirli, to discuss the expansion of cooperation and trade in agriculture. Specifically, the two sides agreed to increase the 5,000 ton beef import quota on Serbian beef coming into Turkey. Next year, the quota will increase 40%. The two sides also agreed to continue discussions on the increase of agricultural quotas as well as the expansion of agricultural cooperation in mid-2019.
Foreign Aid 4)
‘Our Village’ project launches in Zajecar
December 15th, 2018, http://www.agrosmart.net/vesti/svajcarska-sela-rastu-istoku-srbije.html
The ‘Our Village’ project has been launched in two villages of the Zajecar municipality (Dubocane and Mala Jasikova). The project seeks to help transfer knowledge about agriculture, help organize cultural life and renew schools and cultural institutions. As part of the project, Erste Bank will offer favorable loans, and Zajecar will being restoring transportation infrastructure. Page 2
BFC Agriculture Bulletin
The project was launched to emphasize how modern, profitable agriculture can help villages develop and strengthen local economies as well as the overall Serbian economy. Because the project seeks to have the widest possible social significance, it will also focus on restoring life (e.g. cultural events, social life, infrastructure, etc.) in addition to economic concerns. Project organizers expect these two villages to serve as an example for rural development in the future, helping other villages in region regain their culture, life and livelihood.
5)
Results of IPARD support project presented
December 11th, 2018, http://uap.gov.rs/vesti/vesti-2018/predstavljeni-dosadasnji
The results of the ongoing European Union (EU)-funded ‘Support to the Use of the IPARD Fund’ project have been presented to various interested parties, including associations of agricultural producers, nongovernmental agencies, Ministries and scientific and research institutions. The project aims to strengthen the institutional capacities of the relevant authorities to implement the IPARD II program as well as inform potential beneficiaries about the possibilities, requirements, rules and conditions for receiving funds under IPARD. The IPARD II program is expected to increase the productivity and competitiveness of Serbia’s agricultural sector as well as help it align with EU standards. The total value of the IPARD II program is EUR 175 million. The ‘Support to the Use of the IPARD Fund’ project began in August 2017 and ends in August 2019.
Private Sector 6)
Call to bring digital technology to indigenous varieties
December 13th, 2018, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/za-autohtone-sorte-digitalna-tehnologija_975315.html
Speaking at the ‘Food for Europe’ forum, Provincial Secretary of Agriculture for Vojvodina Vuk Radojevic has called for Serbia to bring digital technology to the production of indigenous agricultural varieties in order to help Serbia gain a stronger agricultural foothold in international markets. To this end, the Secretary announced that the territory’s agricultural policy for 2019 will focus on supporting small- and medium-sized agricultural farms develop intensive production and upgrade irrigation systems. Additionally, support will be given to help young farmers (up to 40 years of age) develop agri-businesses as well as for the construction and reconstruction of water and sewage networks in rural areas.
7)
Wheat forecasts include reduced yields and quality
December 12th, 2018, https://www.danas.rs/ekonomija/strucnjaci-psenicom-
Extreme weather events and the use of undeclared seeds will likely mean a reduction in both the yield and quality of wheat. In total, about 500,000 hectares have been planted; however, much of this (6570%) was planted after the optimal period at the end of October. Moreover, up to 50% was planted using cheaper undeclared seeds, which is expected to result in a poorer overall quality. It is worth noting that, despite the forecasts of lower yields and reduced quality, there is expected to be plenty of wheat available to meet domestic demand. The price of wheat domestically has risen from RSD 14 to RSD 21 since July 2018. Page 3
BFC Agriculture Bulletin
8)
Agricultural exports at the same level as last year
December 12th, 2018, http://www.agrosmart.net/vesti/nedimovic_izvoz_poljoprivrede_na_nivou_2017.html
Agriculture Minister Branislav Nedimovic has announced that the export of agricultural and food products this year is expected be at the same level as last year, when EUR 3.9 billion in agricultural goods were exported from the country. Moreover, the Minister believes that investments in agriculture and food industry will increase in the coming years due to the adoption of the Law on Investments, which will result in even more exports. In the short term, the Minister believes that agricultural exports could reach as high as EUR 5 billion. In the long term, the Minister holds that a combination of smart investments and finding new markets will push this figure even higher.
9)
Poor wheat quality causing Serbia to lose markets
December 11th, 2018, https://www.021.rs/story/Info/Biznis-i-ekonomija/203647/Srbija-gubi-trzista-zbog-losijeg-brasna.html
The Zhitouni Association has announced that this year’s wheat quality is down from previous years, making it harder for millers to produce quality flour. This puts Serbian flour manufacturers in a dangerous position as most foreign buyers will not buy lower quality flour. In fact, some countries (e.g. Albania, Macedonia, Montenegro and Bosnia and Herzegovina) have already begun seeking flour sources from other countries. Much of the problem lies in the fact that producers continue to favor wheat varieties that give higher yields but have a poorer quality. This is due to the difference in the market prices of high-quality wheat and low-quality wheat is relatively small, too small in fact to sufficiently motivate the production of higher-quality wheat. To help raise the quality of wheat, the Association has proposed that the Ministry of Agriculture initiate as incentive a three-year program that gives RSD 2 more per kilogram to wheat producers with the highest wheat quality. This year, Serbia achieved its highest wheat production level since 1994 (3 million tons); however, the quality of the production was poor, meaning that most was sold as animal feed.
10) Serbian organic production increasing December 1st, 2018, https://www.danas.rs/ekonomija/broj-proizvodjaca-organske-hrane-povecan-vise-od-sest-puta/
Data reveals that organic production in Serbia is growing. Since 2012, the area used for organic food production in Serbia has doubled to 13,400 hectares, and the number of organic producers has increased more than six times (going from 1,061 to 6,153). Organic exports have also increased from EUR 3.77 million to EUR 23.1 million. Despite the positive-sounding trend however, only 0.4% of arable land in Serbia is used for organic production, several times lower than Serbia’s European Union (EU) neighbors (e.g. 21.3% in Austria, 6.1% in Croatia and 3.2% in Bulgaria). This is due to regulatory obstacles and insufficient support for the sector. The key to strengthening the competiveness of Serbia’s organic sector is in adapting an incentive system to the needs of organic production. Additionally, the existing inspection regiment for organic food control is lacking, leaving the market vulnerable to false organic claims that reduce consumer confidence.
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BFC Agriculture Bulletin
11) New plan to help increase yields 10% December 1st, 2018, http://rs.n1info.com/Biznis/a440539/Aplikacija-za-poljoprivrednike-instituta-Biosens.html
The BioSens Institute in Novi Sad has a proposal to increase agricultural yields by up to 10% without any additional investment. The Institute has received a prize of USD 100,000 to further conduct research and come up with a pilot program to this end. Specifically, there are two different seed strategies being researched. The first would take the seeds generated from plants that have given the best yields and plant them all over. The second would plant seeds from varieties that are considered to be the most stable. The Institute also wants to collect thousands of pieces of data related to agriculture in Serbia in order to develop a service that will provide farmers with information not only about seed varieties but also about weather, farming tips and other relevant information. In the end, the Institute believes that this combination of high technology and agriculture will increase yields with minimal effort.
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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.