05/2019
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44 S e r b i a Agriculture Bulletin Food safety monitoring program for products of animal origin Only 725 farmers have applied for IPARD funds
Record leasing of state-owned agricultural land
Uptake of agricultural insurance in Serbia low
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Contents State Initiatives ............................................................................................................... 2 1) 2) 3) 4) 5)
Government to assist farmers suffering from weather-related damage ...................................... 2 Food safety monitoring program for products of animal origin ................................................... 2 Favorable loans for the purchase of agricultural land.................................................................. 2 Spain, Serbia maintain strong bilateral trade in agricultural products ......................................... 2 Plant protection product certification planned ........................................................................... 3
6) 7)
Budgetary support for agriculture increases ............................................................................... 3 Agreement reached to make loans easier for agricultural cooperatives ...................................... 3
Foreign Aid ...................................................................................................................... 4 8) Ministry of Agriculture, USAID sign loan guarantee agreement ................................................... 4 9) Agricultural loans for energy efficiency to include 10% grant ...................................................... 4 10) Only 725 farmers have applied for IPARD funds .......................................................................... 4
Private Sector .................................................................................................................. 5 11) BioSense Institute presents first quick nitrogen measurement device ......................................... 5 12) Record leasing of state-owned agricultural land ......................................................................... 5 13) 80% of berry crops destroyed by storms, disease........................................................................ 5 14) New Serbian-assembled tractors unveiled .................................................................................. 5 15) Uptake of agricultural insurance in Serbia low ............................................................................ 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)
Government to assist farmers suffering from weather-related damage
May 24th, 2019, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:796559-Brnabic-Pomocpoljoprivrednicima-koji-su-pretrpeli-stetu
Serbian Prime Minister Ana Brnabic has announced the government’s intention to assist farmers who suffered damage from recent weather events, especially those in hard-hit Western Serbia. To this end, Agriculture Minister Branislav Nedimovic is already in the field and in contact with farmers, local governments and insurance companies. During her announcement, Prime Minister Brnabic also spoke about the importance of agricultural insurance and reminded farmers of state subsidies for the procurement of agricultural insurance policies.
2)
Food safety monitoring program for products of animal origin
May 24th, 2019, https://agrosmart.net/2019/05/24/obavezan-monitoring-bezbednosti-hrane-zivotinjskog-porekla/
The Ministry of Agriculture has adopted an ordinance that establishes a program to monitor the safety of food products of animal origin. Specifically, the program will: (1) determine the level of contaminants and other harmful substances in food products of animal origin, (2) determine the resistance of zoonotic and commensal bacteria to antimicrobial agents, (3) collect monitoring data used for risk analysis for certain categories of food and (4) verify valid standards and the maximum allowable quantities for each type of food. In the event a product is found to be non-compliant, further measures will be taken, including: (1) taking a larger sample, (2) banning the product from the marketplace, (3) only allowing the product to be used as a non-food item and (4) closing the food facility from which it came for a period of time. Subsidies for the implementation of the program in the amount of RSD 100,000,000 are planned for public non-financial enterprises and organizations.
3)
Favorable loans for the purchase of agricultural land
May 16th, 2019, http://www.agronews.rs/povoljni-krediti-za-kupovinu-poljoprivrednog-zemljista/
Minister of Agriculture Branislav Nedimovic has signed a memorandum of cooperation with Banka Postanska Stedionica (BPS) regarding providing favorable loans for the purchase of agricultural land. Specifically, loans of between EUR 2,000 and EUR 50,000 will be made available to young people (under 40 years of age) for the purchase of agricultural land as a way to encourage youth back into rural and agricultural areas. The loans will be offered at an interest rate of 1.9% and with a repayment term of 20 years. In addition, state grants of up to EUR 12,000 will be made available for the establishment of greenhouses and the procurement of other necessary equipment.
4)
Spain, Serbia maintain strong bilateral trade in agricultural products
May 15th, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=480850
Spain and Serbia have maintained a close economic relationship over the past five years, with bilateral trade between the two growing at double-digit rates. In fact, the volume of bilateral trade in 2018 reached EUR 500,000, with Spanish exports to Serbia accounting for EUR 300,000 of that amount. Page 2
BFC Agriculture Bulletin
Agricultural products represent an important part of this bilateral trade as Serbia imports large quantities of Spanish meat, fruits and vegetables and Spain imports a large amount of Serbian grains. Both Spanish and Serbian sides believe there is room for even more bilateral trade between the two countries, especially in relation to agricultural products.
5)
Plant protection product certification planned
May 15th, 2019, http://www.stips.minpolj.gov.rs/srl/vest/uvodi-se-red-u-koriscenju-pesticida
The government of Serbia has announced its plan to certify and train all farmers in the use of plant protection products (e.g. pesticides) by the year 2021. This plan was adopted following a change to legislation governing plant protection products. The change envisages that agricultural holdings will be certified to use such products, thereby using them more efficiently and effectively.
6)
Budgetary support for agriculture increases
May 9th, 2019, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:793596-Drzava-subvencionise-srpskepoljoprivrednike
The amount of the state budget allocated to support agriculture this year has been set at RSD 51.8 billion, 17.4% more than in 2018. Of this amount, nearly RSD 37 billion is intended for incentives for agricultural and rural development. The state has also increased subsidies for animal breeding and the production of animal products (including for those working with cattle, sheep, goats, fish and bees). Basic subsidies for plant production have also increased per hectare, including subsidies for planting, land preparation and fuel purchases. In addition, the production of indigenous grape varieties will be eligible for increased subsidies. This year, the state is also providing greater subsidies for organic plant and animal production. There is also a credit support scheme for agricultural producers that offers loans of up to 5 years with a fixed interest rate of 3% per annum (or 1% per annum under certain conditions).
7)
Agreement reached to make loans easier for agricultural cooperatives
May 9th, 2019, http://subvencije.rs/vesti/krediti-za-zadruge/
Regional Development Minister Milan Krkobabic has reached an agreement with Banka Postanska Stedionica (BPS) that will make it easier for agricultural cooperatives to take loans from BPS for the procurement of raw materials. This is expected to result in indirect benefits for 630,000 Serbian farmers. The loans will have a grace period of 6 months, and interest on the loans will be paid by local governments from funds intended for agriculture. Minister Krkobabic believes this an important measure to help the development of agricultural cooperatives in the country, which are seen as vital for the continued development of the agricultural sector.
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BFC Agriculture Bulletin
Foreign Aid 8)
Ministry of Agriculture, USAID sign loan guarantee agreement
May 15th, 2019, http://www.agronews.rs/ministarstvo-i-usaid-daju-garancije-za-poljoprivredne-kredite/
Agriculture Minister Branislav Nedimovic and USAID have signed a cooperation agreement establishing a guarantee with commercial banks. The guarantee will cover 60% of potential losses for commercial banks on USD 50 million in financing for small- and medium-sized enterprises (SMEs) engaged in the agricultural sector of Serbia. This is expected to ease access for financing for these SMEs as well as encourage agricultural sector growth, innovation and job creation. In addition, USAID, through its Competitive Economy Project, will provide technical assistance to SMEs in order to help them reach the necessary standards to access the financing. It is expected that the guarantee with commercial banks will be signed in July of this year.
9)
Agricultural loans for energy efficiency to include 10% grant
May 10th, 2019, https://www.021.rs/story/Info/Biznis-i-ekonomija/214067/Poljoprivredni-krediti-u-Credit-Agricole-uz-10bespovratnih-sredstava.html
Credit Agricole Serbia has announced new agricultural loans for energy efficiency investments that include a 10% grant from German development bank KfW. The new loans also include free technical assistance with energy efficiency consultants in order to determine the feasibility and cost-effectiveness of each project. The overall goal of the combination of grants, loans and technical assistance is to transfer the latest trends from Europe to Serbian farms. Credit Agricole Serbia is also offering clients the opportunity to participate at the ‘Adding Value Through the Processing Industry’ agricultural conference, which is being organized by the Embassy of France in Serbia.
10) Only 725 farmers have applied for IPARD funds May 8th, 2019, http://www.stips.minpolj.gov.rs/srl/vest/za-ipard-fondove-konkurisalo-tek-725-poljoprivrednika
Instrument for Pre-Accession Assistance for Rural Development (IPARD) funds from the European Union (EU) have been made available to the Serbian agricultural sector, but only 725 farmers have applied for it so far. Of those 725 applications, 180 have been approved, and 10 have received funding. There is a reticence on the part of some Serbian agricultural producers to apply for such funding as they are uncertain whether or not they will meet EU standard requirements. This year, there are four total calls for applications planned, for which a total budget of EUR 90 million has been allocated. Each call has a specific amount of funding set aside for different areas of investment. The next call is expected to include funding for the procurement of machines and the construction of agricultural facilities. A call at the end of the year is expected to include funding for the diversification of agricultural holdings and business development aimed at the bolstering rural tourism.
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BFC Agriculture Bulletin
Private Sector 11) BioSense Institute presents first quick nitrogen measurement device May 26th, 2019, https://www.ekapija.com/en/news/2516128/biosense-presents-worlds-first-device-for-quick-nitrogenmeasurement-on-farming-land
BioSense Institute has presented the world’s first device for quick nitrogen measurement on agricultural land at the recently-held WorldMinds conference in Belgrade. This innovation could help reduce the amount of fertilizer wasted as well as ensure that each plant gets the exact amount of the fertilizer it needs, thereby increasing the yields. BioSense Institute is also developing a device to scan land and show farmers exactly what conditions each section of land offers.
12) Record leasing of state-owned agricultural land May 24th, 2019, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:796430-Stocarima-90000-hektaradrzavne-zemlje
This year, farmers across Serbia leased more than 90,000 hectares of state-owned agricultural land. In particular, farmers leased state-owned agricultural land in record levels from 47 Serbian municipalities and cities. This year represents the first time a number of municipalities and cities participated in the leasing state-owned agricultural land, an important move as agriculture in the country continues to develop. In general, priority is given to ruminant farmers, who are able to lease land for several years at a time. This has the benefit of making planning easier as well as helping maintain the quality of the land.
13) 80% of berry crops destroyed by storms, disease May 20th, 2019, http://rs.n1info.com/Biznis/a485183/Malinari-Unisteno-80-odsto-roda-drzava-da-proglasi-stanjeelementarne-nepogode.html
Serbia’s Association of Raspberry and Blackberry Producers is asking the government to proclaim a natural disaster and give emergency assistance following the destruction of 80% of berry crops due to storm damage and disease. The losses are particularly devastating following the low prices harvests garnered last year. The Association is planning to ask the government to assist in helping berry producers procure raw materials necessary for production as well as establish new plantations. Berry producers were unable to secure their production due to the relatively high costs of doing so and most producers not knowing where to obtain funding for new investments. This is especially difficult for berry production as new plantings can take 2-3 years before a profit can be realized from them.
14) New Serbian-assembled tractors unveiled May 16th, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=481053
The first new tractors to come out of the rebuilt factory in Jarkovac (northeastern Serbia) were unveiled at the 86th International Agriculture Fair in Novi Sad. Specifically, IMT's 539, 549, 565 and 577 models were on display. In addition to the IMT models, the TAFE Magna tractor series is also being assembled at the Jarkovac plant. New TAFE models (4615, 6515 and 8515) were also on display at the fair. Jarkovac-assembled products will be sold in Serbia as well as exported to European markets. Page 5
BFC Agriculture Bulletin
15) Uptake of agricultural insurance in Serbia low May 16th, 2019, http://www.stips.minpolj.gov.rs/srl/vest/samo-tri-odsto-poljoprivrednika-osigurava-proizvodnju
According to the Serbian Association of Insurance Companies, only about 10% of plant production and 5% of livestock are insured in Serbia. Legal entities have approximately half of their production areas insured, covering about 15% of arable land in the country. At the same time, only 3% of natural persons engaged in agricultural have agricultural insurance. It should be noted that the Serbian government subsidizes up to 70% of agricultural insurance costs in some districts and that many local governments provide additionally subsidize measures for the procurement of agricultural insurance.
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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.