01/2019
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40 S e r b i a Agriculture Bulletin Regulation on incentives for the agricultural sector adopted UNDP launches ‘Together for Sustainable Business’ program Serbian fruit growers show great development
2018 fruit exports estimated at 1.4 million tons
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3)
Regulation on incentives for the agricultural sector adopted......................................................... 2 Online registration of seasonal agricultural workers to begin ........................................................ 2 Fur farming now illegal in Serbia ..................................................................................................... 2
Foreign Aid ................................................................................................................. 3 4) 5) 6) 7)
UNDP launches ‘Together for Sustainable Business’ program ........................................................ 3 IPARD funds for tractor procurement ............................................................................................. 3 Additional IPARD funds made available to farmers ........................................................................ 3 Long-term loans available under IPARD .......................................................................................... 3
Private Sector.............................................................................................................. 4 8) 9) 10) 11) 12)
Serbian fruit growers show great development.............................................................................. 4 Serbian milk of satisfactory quality ................................................................................................. 4 Agricultural land prices up by as much as 20% in some regions ..................................................... 4 2018 fruit exports estimated at 1.4 million tons ............................................................................. 5 Investments needed to regulate Danube transportation ............................................................... 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. Read more »
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BFC Agriculture Bulletin
State Initiatives 1)
Regulation on incentives for the agricultural sector adopted
January 19th, 2019, http://www.agronews.rs/vlada-usvojila-uredbu-o-raspodeli-podsticaja-u-poljoprivredi/
The government of Serbia has adopted the ‘Regulation on the Distribution of Incentives in Agriculture and Rural Development for 2019’. The Regulation identifies rural development measures, incentives for redistribution, funds for credit support and special incentives in agriculture as well as the scope of IPARD funding available. It was passed with an eye towards eventual membership in the European Union (EU). For direct payments, RSD 17.2 billion has been allocated. The main changes compared to last year’s regulation are higher benefits for breeding sows, fattening cattle, suckler cows and rural development measures. Total rural development spending has also been increased from RSD 2.4 billion last year to RSD 4.7 billion this year. The total amount of IPARD incentives is RSD 6.07 billion, of which 1.52 billion will be provided from state budget funds and RSD 4.55 billion will be in the form of financial assistance from the European Union (EU).
2)
Online registration of seasonal agricultural workers to begin
January 18th, 2019, http://www.agrosmart.net/vesti/pokrece_se_onlajn_prijava_sezonskih_radnika_u_poljoprivredi.html
A new online system for seasonal workers engaged in agriculture has been implemented in Serbia. The new system will allow for greater legal certainty and add an estimated EUR 15 million into the state budget over the next five years. The new system is seen as a tool to fight the gray economy and improve worker rights, included pension, health care and other social benefit rights. It also serves as an important transition piece towards the further digitization of public administration efforts. The new system was developed and introduced with assistance from the German development agency GIZ. It is expected to serve as an example to other countries on the positive impact of digitization efforts.
3)
Fur farming now illegal in Serbia
January 3rd, 2019, ttp://www.tanjug.rs/full-view_en.aspx?izb=452483
Pursuant to the Animal Welfare Act, fur farming became illegal in Serbia on January 1, 2019. According to the Register of the Veterinary Administration, there were 16 fur farms in Serbia before the ban took effect. The Act bans the keeping, breeding, importing, exporting and killing of animals for the sole purpose of fur and skin production. Fines for violating the ban vary between RSD 100,000 and RSD 1 million (EUR 1 = RSD 118). An estimated 12,000 chinchillas were killed for their fur in Serbia every year prior to the ban.
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BFC Agriculture Bulletin
Foreign Aid 4)
UNDP launches ‘Together for Sustainable Business’ program
January 23rd, 2019, http://www.agronews.rs/undp-podstice-povecanje-odrzivosti-malih-preduzeca/
The United Nations Development Program (UNDP) in Serbia is launching the new ‘Together for Sustainable Business’ program to help micro-, small- and medium-sized enterprises in the food, agriculture and wood industries improve their competitiveness and become more socially responsible. The program will focus on companies that have been in business for at least two years and express a desire to move towards a circular economy. The program will also emphasize the principles of sustainability and encourage companies to consider environmental impact when making decisions. 15 companies will be pre-selected for involvement in the program, with 10 being selected for full participation. The program is expected to last until mid-June 2019. The deadline for companies to apply to the program in January 31, 2019.
5)
IPARD funds for tractor procurement
January 23rd, 2019, http://www.agronews.rs/dele-se-resenja-za-nabavku-traktora-iz-ipard-a/
Another public call has been made for those wishing to access IPARD funds to procure tractors. It is expected that this latest round of funds will help in the procurement of approximately 200 additional tractors. So far, a list of 304 potential beneficiaries has been ranked; however, it is expected that some will quit the process and that other may be added. Applications will be accepted until February 26, 2019. Preference will be given to those under 40 years of age, women, members of agricultural cooperatives, those engaged in organic production and those with holdings in mountainous areas. In total, more than 503 applications have been received to procure tractors using IPARD funds, with 304 being approved (worth a total of EUR 45 million). Another call related to the procurement of tractors using IPARD funds is expected later this year.
6)
Additional IPARD funds made available to farmers
January 22nd, 2019, http://www.agronews.rs/obezbedena-dodatna-sredstva-iz-ipard-programa/
An additional EUR 3.3 million has been made available for investments in the physical assets of agricultural holdings due to the reallocation of IPARD budgetary funds. The EUR 3.3 million will be available to fruit and vegetable farmers as well as those involved in meat production and processing.
7)
Long-term loans available under IPARD
January 16th, 2019, http://subvencije.rs/vesti/rfv-konkurs-za-dugorocne-kredite-u-okviru-ipard-programa/
Long-term loans under the IPARD program aim to provide financial support for investments in agriculture. IPARD loans are made available on a competition basis to registered agricultural holdings that have an active status and have submitted an application to the Administration for Agrarian Payments. This includes natural persons (i.e. family-owned commercial farms), entrepreneurs, companies and agricultural cooperatives classified in a micro-, small- or medium-sized legal entities. Applications for loans under the program are now being accepted for beneficiaries registered in Vojvodina that intend to use loan funds on investments in Vojvodina. If approved, loans will be provided Page 3
BFC Agriculture Bulletin
in amounts up to EUR 150,000 in RSD equivalent for the procurement of agricultural machinery or up to EUR 800,000 in RSD equivalent for investments in facilities and certain equipment. Loans are provided to beneficiaries at a rate of 2% per annum for a term of up to 7 years. Loans may also include a grace period of up to 24 months.
Private Sector 8)
Serbian fruit growers show great development
January 30th, 2019, http://www.agronews.rs/veliki-napredak-u-vocarstvu/
The Gruza Agrar company organized consultations with 600 Serbian fruit growers for the eighth straight year. The company, which has a “if we like it, we share it” philosophy, has stated that it is seen significant progress from Serbian fruit growers since it first started providing the annual consultations. The consultations (delivered by experienced experts and agricultural professors) concentrate on ways to increase both production and quality. This year, experts discussed hydroponic blueberry cultivation, the safe use of pesticides and the latest fruit technology, machinery and equipment. An exhibition was also arranged for a new ecological device designed to minimize fruit and irrigation system damages from bird pests.
9)
Serbian milk of satisfactory quality
January 21st, 2019, https://beta.rs/ekonomija/ekonomija-srbija/103591-dolovac-mleko-u-srbiji-zadovoljavajuceg-kvaliteta
Nenad Dolovac, director of the National Reference Laboratory, has declared that Serbian milk is of satisfactory quality but that it could be improved to ensure even greater food safety. To this end, the National Reference Laboratory intends to work extensively to raise milk quality, which will also have the effect of increasing dairy farmer profits. Laboratories in the country are equipped with modern testing equipment and can process approximately 5,000 samples a day. The role of laboratories is not merely that of testing as they also serve to help set new standards in food safety and work in coordination with other laboratories across the European Union (EU).
10) Agricultural land prices up by as much as 20% in some regions January 20th, 2019, http://www.politika.rs/scc/clanak/420766/Srpske-oranice-skuplje-i-do-20-odsto
The price of agricultural land in Serbia has increased in some regions by as much as 20%, although agricultural land prices in Sumadija and Southern and Eastern Serbia have remained stagnate or fallen. The most valued agricultural lands are the fruit fields around Novi Sad, especially those in South Backa District. According to data from the Republic Geodetic Authority, the average price per hectare in Srbobran, Temerin, Backa Palanka, Becej, Vrbas and Titel was EUR 10,100 – as compared to EUR 3,800 in Sumadija and EUR 3,500 in Southern and Eastern Serbia. The reason for the drastic price differences is likely to be connected with the size of farms and the state of infrastructure in the surrounding area.
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BFC Agriculture Bulletin
11) 2018 fruit exports estimated at 1.4 million tons January 15th, 2019, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:771618-Keserovic-Ove-godine-manjirod-voca-od-pet-do-osam-odsto-zbog-lose-zastite-u-prosloj-godini
The total yield of fruit in 2018 was estimated at 1.4 million tons, 45% of which was exported. This amounted to approximately USD 600 million in revenue. This shows that, despite recent worries regarding production volumes and prices, fruit is a promising branch of agriculture in Serbia. In fact, three of the ten most-exported items are fruits. At the same time, Serbia can and should do more to maximize its fruit potential, including expanding large-sized cherry plantations as well as studying why dry plum exports to Europe are much poorer than expected. It should be noted that fruit has the potential to be strong in 2019 as weather conditions this year (so far) have been much more favorable for fruit production than they were last year.
12) Investments needed to regulate Danube transportation January 4th, 2019, https://www.ekapija.com/en/news/2360012/export-of-grains-depends-on-danube-navigability-investmentsof-several-hundred-million
Poor infrastructure is limiting the export of agricultural products from Serbia, especially via the Danube river. To resolve this issue, an estimated several hundred million euros in investments is needed to be made in ensuring the proper regulation of the Danube. This will become even more important as yields continue to grow. For example, corn exports are expected to be approximately 3 million tons this year. However, peak demands will likely occur during the Danube’s low water level period, inhibiting transportation possibilities. There is already tremendous pressure on local boat companies to transport a relatively large amount of goods in a short period of time. As production levels increase, this problem will only be exasperated if not resolved soon.
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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.