02/2019
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41 S e r b i a Agriculture Bulletin Serbia concludes free trade agreement with EEU Croatia and Serbia to present results of joint agricultural project Apple producers introduced to new apple production app Sheep farming on the rise
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7)
Serbia concludes free trade agreement with EEU........................................................................... 2 Longer terms for leasing state-owned agricultural land ................................................................. 2 Additional funds allocated for agricultural fuel subsidies ............................................................... 2 Milk required to be tested twice a month at national laboratory .................................................. 2 New egg regulations to open new markets .................................................................................... 3 Young farmers named a priority for 2019 ....................................................................................... 3 e-agriculture system to be established ........................................................................................... 3
Foreign Aid ................................................................................................................. 3 8) 9) 10) 11)
FAO, EBRD help prepare Serbia for grain exports to Egypt ............................................................. 3 USAID holds training on modern fruit production methods ........................................................... 4 Croatia and Serbia to present results of joint agricultural project.................................................. 4 Free training for starting an agricultural business .......................................................................... 4
Private Sector.............................................................................................................. 5 12) 13) 14) 15) 16) 17)
New EU organic regulations to impact Serbian organic producers ................................................. 5 Apple producers introduced to new apple production app ............................................................ 5 Sheep farming on the rise ............................................................................................................... 5 Raspberry producers unhappy with state assistance plans ............................................................ 5 Raspberry producers take measures to keep European markets ................................................... 6 Vojvodjanska Banka to increase agricultural lending ...................................................................... 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. Read more »
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BFC Agriculture Bulletin
State Initiatives 1)
Serbia concludes free trade agreement with EEU
February 27th, 2019, http://www.balkanspress.com/index.php/vesti/ekonomija/23450-vest-dana-srbija-ulazi-u-eaeu-ukinutesve-carine
Serbia has concluded negotiations establishing a free trade agreement between Serbia and the Eurasian Economic Union (EEU). The agreement, once it comes into force, will open up a base of 180 million consumers for most Serbian products. The agreement also includes a provision for the duty-free export of meat, milk, fruits, cigarettes, cheese and alcoholic beverages from Serbia to EEU markets. The EEU currently consists of five member countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
2)
Longer terms for leasing state-owned agricultural land
February 19th, 2019, https://www.ekapija.com/news/2409571/duzi-rok-za-zakup-drzavnog-poljoprivrednog-zemljista
Amendments to the Law on Agricultural Land have been proposed to allow state-owned agricultural land to be leased for a longer period of time. If passed, farmers would be able to lease state-owned agricultural land for periods of up to four years, or eight years in the case of livestock farmers. The proposed amendments would also help young farmers buy agricultural land under privileged terms (i.e. a repayment term of 20 years and a favorable interest rate of 1% per annum) as part of the state’s effort to encourage people to remain in villages and boost incomes among the rural population.
3)
Additional funds allocated for agricultural fuel subsidies
February 19th, 2019, http://rs.n1info.com/Biznis/a461737/Nedimovic-Od-1.-marta-subvencije-za-gorivopoljoprivrednicima.html
Agriculture Minister Branislav Nedimovic announced that an additional RSD 2 billion has been allocated to farmers for diesel fuel subsidies. Under the state subsidy program, 60 liters of diesel fuel per hectare will be subsidized with RSD 20, up to a maximum of 20 hectares. The Minister added that the state would automatically pay for this diesel fuel support from March 1 through April 30, based of the number of hectares listed with the Treasury.
4)
Milk required to be tested twice a month at national laboratory
February 13th, 2019, http://www.rtv.rs/sr_ci/ekonomija/mleko-ce-dva-puta-mesecno-na-kontrolu-u-nacionalnulaboratoriju_991753.html
All milk producers in Serbia will now be required to test their products twice a month at the National Milk Control Laboratory. This testing will be free of charge, and any deviations from established standards will be noted, with recommendations given back to producers on how to best achieve an acceptable level of quality. Improvements to the National Milk Control Laboratory are the result of a EUR 11 million project that was funded by the European Union (EU) and the government of Serbia.
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5)
New egg regulations to open new markets
February 13th, 2019, http://www.politika.rs/scc/clanak/422670/Nedimovic-Novi-pravilnik-o-jajima-donece-i-nova-trzista
The introduction of new regulations regarding the production and classification of eggs is expected to both increase egg production and open up new markets for Serbian egg producers. The new regulations will bring egg production in Serbia in line with European Union (EU) standards, including having each egg marked individually. Agriculture Minister Branislav Nedimovic is optimistic that the new regulations will not only provide greater opportunities in the EU but in other markets as well. He noted that Japan has expressed interest in Serbian eggs and is even considering opening a production facility in Serbia to facilitate egg exports to Japan.
6)
Young farmers named a priority for 2019
February 12th, 2019, http://www.rtv.rs/sr_ci/ekonomija/nedimovic-stocarstvo-prioritet-ulagacemo-vise_991483.html
Agriculture Minister Branislav Nedimovic announced that the state has made young agricultural producers a priority for 2019. Specific measures include grants for young people to start agricultural production, funding for the purchase of agricultural land (with the intention of encouraging young people to buy arable land and remain in villages) and increased subsidies for household farms. The Agriculture Minister also noted that a much higher budget for farmers has been allocated this year than in previous years and that the state intends to also promote measures to improve livestock breeding in the country this year.
7)
e-agriculture system to be established
February 1st, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=458279
Agriculture Minister Branislav Nedimovic has called for the establishment of an e-agriculture system to be established this year. The system would enable all farms to register, update their status and draw incentive funds electronically, without paperwork or lines. To this end, the Agriculture Minister announced the launch of a pilot e-agriculture system for livestock production this April.
Foreign Aid 8)
FAO, EBRD help prepare Serbia for grain exports to Egypt
February 22nd, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=462653
In September 2018, the Egyptian Ministry of Agriculture certified Serbian wheat as eligible for import into Egypt for the first time in 30 years. This was largely the result of several projects that have promoted Serbian grain and oilseed exports over the past three years, including projects implemented and/or financed by the Food and Agriculture Organization of the United Nations (FAO) and the European Bank for Reconstruction and Development (EBRD). Now, the government of Egypt has launched a tender to buy 60,000 tons of wheat, and Serbia is poised to potentially gain a new trading partner and expand their grain export markets.
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9)
USAID holds training on modern fruit production methods
February 21st, 2019, https://www.danas.rs/ekonomija/amerikanci-obucavaju-prokupacke-vocare-o-nacinima-najsavremenijeproizvodnje/
The United States Agency for International Development (USAID), in cooperation with Swiss company Lukonja, organized a training on modern fruit production methods near Prokuplje. The training, intended primarily for independent agricultural producers and fruit purchasers, was conducted with the goal of achieving a level of quality and control that is in line with modern market standards. In total, 130 fruit producers attended the training. Similar trainings are envisaged to be held in 16 other locations in Serbia as part of a larger effort to raise awareness about the importance of monitoring contemporary world trends in fruit production as well as about the requirements and needs of modern markets.
10) Croatia and Serbia to present results of joint agricultural project February 18th, 2019, http://www.agrosmart.net/vesti/hrvatska-srbija-projektu-dobre-poljoprivredne.html
The results of the ‘Impact of Good Agricultural Practice on Environmental Protection in the Border Region’ (IMPACT-ENVI) project will be presented during a workshop at the University of Edukons in Sremska Kamenica. The IMPACT-ENVI, which was jointly implemented by Croatia and Serbia, was designed to raise awareness of possible pollution from agricultural production and to promote good agricultural practices that preserve the environment. During the workshop, experts who participated in the implementation of project activities will detail their findings. Of special interest will be a presentation on the effects of nitrate and pesticide usage on the environment. Five Serbian regions (North Backa, South Backa, West Backa, Macvanski and Sremski) were included as part of the project. These regions represent areas widely-considered to be high-risk, mainly due to climate change.
11) Free training for starting an agricultural business February 5th, 2019, http://www.agrosmart.net/vesti/besplatna-obuka-pocinjanje-razvoj-posla.html
A free training on agricultural business is being offered in Zlatibor, Raska and Sumadija to those considered to be more socially-vulnerable, especially those with lower educational levels, those unemployed for more than a year, Roma and other minorities, single mothers, victims of domestic violence and young people. The nine-day training covers writing a business plan, legal regulations in agriculture, hygiene standards, agro-technical measures, organic production, marketing and possible sources of funding. Additionally, participants who write the strongest business plans receive RSD 59,000 in investments to start their business. So far, about 120 people have undergone the training. The training was organized through the ‘Social Inclusion through the DAFF Agribusiness Model’ project, which is being implemented by the government of Switzerland through the SwissPRO program.
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Private Sector 12) New EU organic regulations to impact Serbian organic producers February 18th, 2019, https://www.021.rs/story/Info/Biznis-i-ekonomija/208406/Kako-ce-se-nova-pravila-EU-odraziti-naproizvodjace-u-Srbiji.html
The European Union (EU) is expected to adopt a number of new regulations in the next two years that will further define organic production, control, certification and labeling. The new regulations will provide more detail regarding control requirements for organic products and have been designed to both strengthen the control system and boost consumer confidence in the organic label. For Serbia, this means that organic production regulations will need to be harmonized with the new EU standards. To this end, Serbia will work closely with experts from a project approved by the European Commission to provide greater detail in Serbian legislation for the control of organic production. The export of organic products from Serbia to EU countries exceeds EUR 23 million in value each year. Serbia's organic products (mostly frozen organic raspberries and blackberries, apple concentrate and dry grains) are exported mainly to Germany, the Netherlands, Italy and France.
13) Apple producers introduced to new apple production app February 17th, 2019, https://www.ekapija.com/en/start-up/2404104/young-startups-present-farming-innovations-in-berlinmapmyapple-app-ideal-for-small
Exhibitors from Serbia at the Fruit Logistica Fair in Germany were introduced to the MapMyApple app during the Fair’s special Startup Day. The app allows apple producers to increase yields and get better prices by offering daily recommendations regarding fertilization, irrigation, protection and other necessary works. By implementing high-resolution satellite images, the app also offers visual information about the state of vegetation and a precise weather forecast. Darko Martinovic, general manager of the Select Fruit Group, believes that small Serbian apple producers would benefit greatly from the app as they would be able to easily keep track of production needs and efforts, resulting in overall efficiency increases. It should be noted that the app has already been tested in Serbia.
14) Sheep farming on the rise February 15th, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=461145
According to December 2018 figures released by the National Statistical Office, there is a 5.6% increase in the number of sheep in Serbia as compared to the ten-year (2008—2017) average. This was the only segment of livestock that showed an increase. The number of cattle in the country decreased 6.5%; the number of pigs in the country dropped 14.7%; the number of goats in the country declined 14.2%; and the number of poultry in the country decreased 11.1%.
15) Raspberry producers unhappy with state assistance plans February 14th, 2019, https://www.danas.rs/ekonomija/radovic-veci-regres-za-osiguranje-i-subvencije-na-gorivo-ne-resavajuglavni-problem-malinara/
Serbian raspberry producers are not content with the government’s plan to increase raspberry insurance subsidies to 70% and allow raspberry producers to purchase fuel at preferential prices. The Page 5
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producers instead argue that the main problem needing to be addressed is the low purchase of their products. They insist that the government examine why raspberry producers are offered such a low price when raspberry aggregators and processors charge much higher prices, especially in foreign markets.
16) Raspberry producers take measures to keep European markets February 8th, 2019, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:776131-Srpska-malina-po-meri-Evrope
Every year, Serbia exports approximately 100,000 tons of raspberries to European markets; however, European markets are placing increasingly more stringent requirements on products wishing to have and maintain a place in Europe. For Serbian raspberries, this means increasing the quality of genus, monitoring the use of pesticides, suppressing noroviruses, increasing hygiene standards and ensuring responsible cultivation practices through protection/conservation programs. This has placed Serbia’s raspberry sector in a tenuous position, especially given reduced production in recent years despite an increased planting area. To help ensure that Serbian raspberries maintain their value and reputation in Europe, raspberry producers and exporters have taken a number of actions. The main actions being undertaken are measures to ensure the availability of adequate cold storage facilities as well as those to provide expert support and other free educational opportunities regarding raspberry cultivation. They hope that these actions will help raise the level of quality and fruit safety, increase yields and reduce production costs as well as satisfy European regulators and consumers.
17) Vojvodjanska Banka to increase agricultural lending February 4th, 2019, https://beta.rs/ekonomija/ekonomija-srbija/105993-vojvodjanska-banka-planira-vece-kreditiranjepoljoprivrede-u-2019
Vojvodjanska Banka plans to become more active in agricultural lending in 2019. According to Predrag Mihajlovic, chairman of the Executive Board of Vojvodjanska Banka, this will include both short-term and long-term credit options specifically designed to support the agricultural sector in Serbia. The bank has taken this decision in light of the facts that agriculture is an important sector in the country, 2018 showed strong economic growth indicators and the bank achieved strong profits in recent years.
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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.