06/2019
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45 S e r b i a Agriculture Bulletin RSD 284 million for young farmers in Vojvodina EUR 16.5 million EBRD financing package announced Serbian wheat the most expensive in the region
5 Serbian products win Superior Taste Award
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)
Land parcel identification system established ................................................................................ 2 RSD 284 million for young farmers in Vojvodina............................................................................. 2 Agriculture Minister meets with raspberry sector representatives ................................................ 2 Report highlights lack of agricultural progress toward EU harmonization ..................................... 3
Foreign Aid ................................................................................................................. 3 5)
EUR 16.5 million EBRD financing package announced .................................................................... 3
Private Sector.............................................................................................................. 3 6) 7) 8) 9) 10) 11) 12) 13) 14)
Prokuplje farmers dissatisfied with processor purchase prices ...................................................... 3 Serbian wheat the most expensive in the region ............................................................................ 4 5 Serbian products win Superior Taste Award ................................................................................ 4 Starting price for raspberries forecasted at RSD 150 ...................................................................... 4 Serbian pork and dairy products to enter Chinese markets ........................................................... 4 Warm fruit processing factory opens in Donje Grgure ................................................................... 5 Chinese markets open for Serbian dairy products .......................................................................... 5 More than 1 million tons of wheat projected to be exported ........................................................ 5 4 Serbian meat producers temporarily banned from exporting to Russia...................................... 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)
Land parcel identification system established
June 20th, 2019, http://www.agronews.rs/uspostavlja-se-sistem-identifikacije-zemljisnih-parcela/
The Department of Agrarian Payments of the Ministry of Agriculture has begun activities to establish a system of land parcel identification, which is expected to be implemented by 2023. The system is one of the most important components of the Integrated Management and Control System (IACS) for direct payments. In the first phase of the project to establish the system, expert and financial support from the European Union (EU) will help establish mapping based on a geographic information system. The system will also use data from various registers (Republic Geodetic Authority, Register of Agricultural Holdings, Republic Institute for Statistics, etc.) as well as current and historical images. A pilot project, which began on January 22, 2019 and is expected to last through the end of October 2019, is being carried out in the Boljevac, Golubac, Gornji Milanovac, Irig, Leskovac, Novi Knezevac, Pozarevac, Secanj, Sremska Mitrovica and Vlasotince municipalities. Following an analysis of collected data, the most suitable model for the system will be proposed, developed and introduced.
2)
RSD 284 million for young farmers in Vojvodina
June 20th, 2019, http://www.psp.vojvodina.gov.rs/VestiCyr.aspx?Id=22122
Deputy Prime Minister Djordje Milicevic and Vojvodina Provincial Agriculture Secretary Vuk Radojevic presented 204 contracts to farmers under the age of 40. The contracts, which are for a total of RSD 284 million in incentive funds, were awarded on the basis of a competition designed to support young people in the rural areas of Vojvodina. The contracts are expected to (1) help young people remain in villages by giving them the tools and knowledge to empower their own economic futures and (2) serve as a demographic measure for reconstruction and the development of rural areas.The funds are, among other things, allocated for the purchase of agricultural machinery, greenhouse production, raising new plantations, breeding meat and milk cattle, fruit and vegetable processing, oil crop processing, spice processing, medicinal and aromatic herb production, meat processing and craft beer production. The majority of those signing contracts expressed an interest in using the funds to purchase quality cattle breeds. Agriculture and village development have been a strong focus in Vojvodina over the past three years, with more than RSD 20 billion invested towards these aims by Vojvodina’s provincial government in that time. In the past two months alone, the provincial government has allocated RSD 2 billion (via several tender lines) to beneficiaries in agriculture and has worked to emphasize the importance of stimulating other economic areas in the region.
3)
Agriculture Minister meets with raspberry sector representatives
June 20th, 2019, https://beta.rs/ekonomija/ekonomija-srbija/112865-dogovoreno-da-inspekcije-kontrolisu-otkup-i-izvoz-malina
Agriculture Minister Branislav Nedimovic met with representatives of raspberry producers as well as those responsible for services associated with raspberry production to discuss necessary work to be conducted in the raspberry sector from purchase to export. At the meeting, overall expectations for this year’s raspberry harvest were much higher than last year. This is thought to be, in part, due to the establishment of the National Raspberry Council, which helps establish the producer price of raspberries as well as ensures that continuous controls and inspections are carried out.
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The government has been active in supporting the raspberry sector, in which it sees potential. State support includes insurance subsidies of 40-45% (70% in the Kolubarski, Moravica, Podunavski, Sumadijski and Zlatibor regions) as well as assistance in procuring raw materials and seedlings. The government is also working to establish Serbia as a country known for raspberries by recommending that Serbian raspberries be marked with geographical origin packaging.
4)
Report highlights lack of agricultural progress toward EU harmonization
June 13th, 2019, https://www.ekapija.com/en/news/2537711/gmo-milk-and-swine-fever-hamper-serbias-negotiations-with-eu
At the seventh plenary session of the National Convent on the European Union (EU) (held on June 10, 2019 at the National Assembly of Serbia), a report was filed on the realization of harmonization in the fields of agriculture, rural development, food safety, fisheries and veterinary and phytosanitary policies. According to the report, very little has been done in 2019 to address 63 recommendations given in 2018. Specifically, the report notes that Serbia has made little-to-no progress in food safety and veterinary and phytosanitary policies; this includes eradicating swine flu and harmonizing legislation regarding GMOs. The report did highlight some progress made in the field of fisheries, including some adopted regulations on the certification of fish catches. In the end, the report finds that Serbia needs to prepare an action plan that will secure full compatibility as Serbia progresses towards EU accession, especially in regard to to market organization, data collection and control measures.
Foreign Aid 5)
EUR 16.5 million EBRD financing package announced
June 24th, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=489680
The European Bank for Reconstruction and Development (EBRD) has announced a EUR 16.5 million financing package that will help improve the competitiveness of SMEs and support women entrepreneurs in Serbia. The financing package, which will be extended to long-time EBRD partner Banca Intesa Belgrade, will include EUR 15 million for on-lending to SMEs wanting to implement European Union (EU) standards and improve their competitiveness in domestic and international markets. In addition, SMEs will also benefit from EU investment incentives equaling 15% of the loan amount as well as from advice on introducing EU standards. The remaining EUR 1.5 million will be used exclusively to support women entrepreneurs. This is an extension of a previous EUR 10 million credit line aimed at reaching a greater number of Serbian businesswomen.
Private Sector 6)
Prokuplje farmers dissatisfied with processor purchase prices
June 25th, 2019, https://www.danas.rs/ekonomija/proizvod
Agriculture Minister Branislav Nedimovic and Minister without Portfolio Milan Krkobabic are scheduled to meet with Prokuplje farmers, who are dissatisfied with the purchase prices of processors in the area. Farmers believe that this year’s harvest is of exceptional quality and should garner a larger price, whereas processors are less-than-convinced of this. Prokuplje is heavily-dependent on agriculture, and low purchase prices could force many to leave the area in search of livable incomes. Page 3
BFC Agriculture Bulletin
7)
Serbian wheat the most expensive in the region
June 23rd, 2019, http://www.politika.rs/scc/clanak/432346/Srpska-psenica-najskuplja-u-regionu
The price of domestic wheat has reached a five-year high, a trend contrary to other markets in the region. While this results in a favorable situation for domestic producers, it also makes Serbian wheat uncompetitive for export. The rise in domestic wheat prices is largely due to the low availability of quality wheat. With this year’s harvest just getting under way, it remains to be seen if there will be enough quality wheat to drive domestic prices down and make it more competitive for export.
8)
5 Serbian products win Superior Taste Award
June 19th, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=488862
Five Serbian products (prunes, a raspberry spread, cold-pressed pumpkin seed oil, raw honey and ajvar) were among the winners of the Superior Taste Award handed out by the International Taste Institute. The products were sampled against a wide variety of other products from around the world by Michelin star-winning grand master chefs from famous restaurants and top sommeliers. Representatives from the winning companies attended an awards ceremony in Brussels on June 24, 2019.
9)
Starting price for raspberries forecasted at RSD 150
June 19th, 2019, http://www.politika.rs/scc/clanak/432125/Pocetna-cena-za-malinu-150-dinara
The starting price for raspberries this year is expected to be as high as RSD 150 per kilogram, almost double last year’s starting price. The reason for the increase over last year’s price is a combination of a lower-than-expected yield this year (forecasted at 40% lower than last year) and a projected lack of firstclass raspberries in world markets. It is important to note that the price could change (either up or down) once the harvest starts to come in. The two most important factors that will impact price are overall quality and the quantity of available raspberries in various domestic and export markets.
10) Serbian pork and dairy products to enter Chinese markets June 17th, 2019, https://www.ekapija.com/en/news/2541461/pork-and-dairy-products-from-serbia-to-be-available-on-chinesemarket
Agreements have been reached that will allow the export of Serbian pork and dairy products to enter Chinese markets. Among the agreements is a memorandum of cooperation regarding food safety and the import/export of food products that was signed by Agriculture Minister Branislav Nedimovic and the Chinese Vice Minister of the General Administration of Customs. The first Chinese inspections are expected to take place in the coming months, and Serbian pork and dairy products are expected to be available in Chinese markets by the end of the year. The opening of Chinese markets is an important step for continuing to grow the outreach of Serbia’s agricultural sector.
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11) Warm fruit processing factory opens in Donje Grgure June 16th, 2019, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:800896-Nedimovic-Pogoni-sansa-zamale-poljoprivredne-proizvodjace
Midi Organic has opened a factory for warm fruit processing in the village of Donje Grgure. The processing factory will employ 83 permanent and 30 seasonal workers and will process raspberries, plums and apples. The factory will produce organic fruit purees, jams and marmalades for export to Western markets. Midi Organic cooperates with more than 500 family farms and serves as a model for how Serbian processors can become successful exporters.
12) Chinese markets open for Serbian dairy products June 12th, 2019, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:800138-Nedimovic-Otvara-se-trzisteKine-za-mleko-iz-Srbije
Agriculture Minister Branislav Nedimovic announced that Chinese markets are now open for Serbian dairy products thanks to the work of the National Laboratory for Milk Quality Control. The Minister emphasized that this, in addition to the newly-acquired opportunity for the unlimited export of certain cheeses to Russia, is the result of a great deal of effort to increase the quality of Serbia’s dairy industry. The impact of these efforts on the industry as a whole as well as the farms (including family farms) that provide raw material) has been enormous and is expected to increase as the industry becomes more efficient and better at providing quality products that meet export requirements.
13) More than 1 million tons of wheat projected to be exported June 12th, 2019, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/preko-milion-tona-psenice-bice-za-izvoz_1025208.html
Forecasts project that more than one million tons of Serbian wheat will be available for export this year after satisfying domestic demand. There were concerns regarding the size of this year’s wheat harvest following two droughts; however, this year’s harvest proved to be resilient. In fact, late rains in May might have actually reduced the overall yield by up to 7%. While it is too soon for wheat prices to be determined, Serbian wheat producers expect to receive the maximum price possible and be competitive in export markets.
14) 4 Serbian meat producers temporarily banned from exporting to Russia June 1st, 2019, https://www.021.rs/story/Info/Biznis-i-ekonomija/215614/Jovanovic-Zabrana-izvoza-mesa-bez-velikihposledica.html
Russia has banned the import of meat and meat products from four Serbian companies for a period of 60 days due to irregularities regarding conformity with Russian normative technical procedures. The ban began on June 4, 2019 and is not expected to result in any major consequence for Serbian meat exports to Russia in general or the companies themselves in particular. It is important to note that the there was no identification of disease or a potential for disease, rather the issues stemmed from procedures not being correctly followed. Once the companies correct the irregularities, it is expected that they will once again be allowed to export meat and meat products into Russia.
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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.