#47 Serbia Agriculture Bulletin, BFC

08/2019

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47 S e r b i a Agriculture Bulletin RSD 3 million in rural tourism development Economic Empowerment of Women in Agriculture begins in Valjevo State grants for building, equipping farms Quota-free exports of Serbian agricultural products to China to begin

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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)

Government to buy wheat, beef on an emergency basis ............................................................... 2 Development program in Kragujevac to improve competitiveness ................................................ 2 PKS launches program to support small food producers ................................................................ 2 94 cooperatives received state financial support so far ................................................................. 2

Foreign Aid ................................................................................................................. 3 5) 6)

Economic Empowerment of Women in Agriculture begins in Valjevo ........................................... 3 SRFP focus group discussions to begin on September 3 ................................................................. 3

Private Sector.............................................................................................................. 4 7) 8) 9) 10) 11) 12)

State grants for building, equipping farms ...................................................................................... 4 Serbian crop analysis platform now has 1,700 users worldwide .................................................... 4 Russia may impose temporary restrictions on Serbian fruit imports ............................................. 4 High tomato prices due to production failure ................................................................................. 4 State asked to look into possible collusion by berry buyers ........................................................... 5 Quota-free exports of Serbian agricultural products to China to begin ......................................... 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 » BFC Max-Högger-Strasse 6 CH-8048 Zurich, Switzerland

Phone: +41 44 784 22 22 Fax: +41 44 784 23 23

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BFC Agriculture Bulletin

State Initiatives 1)

Government to buy wheat, beef on an emergency basis

August 25th, 2019, https://www.b92.net/biz/vesti/srbija.php?yyyy=2019&mm=08&dd=25&nav_id=1582011

The government of Serbia has announced that it will buy wheat and beef from Serbian producers on an emergency basis. This decision was taken as a way to support producers in difficult times. For example, exports of beef to Turkey ceased at one point this year.

2)

Development program in Kragujevac to improve competitiveness

August 25th, 2019, http://rtk.co.rs/cilj-programa-centra-za-poljoprivredu-povecanje-konkurentnosti-na-trzistu/

The Center for Agriculture and Rural Development Program has been established in Kragujevac to increase competitiveness in the dairy market, improve meat and quality breeding materials and empower rural families. Under the program, the city will provide high-quality heads of cattle to agricultural producers. Lower-quality heads will be sold, with the proceeds used to procure higherquality ones.

3)

PKS launches program to support small food producers

August 23rd, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=502229

The Chamber of Commerce and Industry of Serbia (PKS) has announced the start of a program aimed at supporting the business development of nine small food producers based in southern Serbia. The program will help the businesses promote and market their products directly through a new online platform. Program participants will also receive four months of development support and mentorship from Coca-Cola System (a program partner) experts in the fields of marketing, sales, production technology and finances.

4)

94 cooperatives received state financial support so far

August 7th, 2019, https://beta.rs/ekonomija/ekonomija-srbija/115092-krkobabic-drzavnim-novcem-pomognute-94-zadruge

According to Regional Development and Coordination of Public Enterprises Minister Milan Krkobabic, 94 Serbian cooperatives have received state financial support, with another 50-60 cooperatives expected to receive a total of RSD 667 million in state financial support this year. The most recent call for cooperative proposals is to provide financial support for a number of different purposes, including established a herd, planting crops and purchasing equipment.

Financial support to cooperatives is provided under a three-year, RSD 1.7 billion state program. In total, 150 cooperatives, including existing, new and complex cooperatives, are expected to receive state financial support under the program. The state hopes that support for cooperatives will help build vertical and horizontal relationships within value chains.

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BFC Agriculture Bulletin

Foreign Aid 5)

Economic Empowerment of Women in Agriculture begins in Valjevo

August 29th, 2019, https://agrosmart.net/2019/08/29/u-valjevu-tartovao-projekat-ekonomskog-osnazivanja-zena-upoljoprivredi/

The project "Economic Empowerment of Women in Agriculture" was presented in Valjevo and will be implemented in the district of Kolubara (174,228 inhabitants, of whom 51% are women). In the district, 27% of the population is engaged in agriculture, of which 42% are women.

A study conducted by SeCons shows that the inaccessibility and unreliability of information on what to produce, as well as the lack of market information, are some of the major obstacles farmers face.

The project is being implemented by the Women's Association of the Kolubara District and funded by UN Women from European Union funds through the project "Key Steps to Gender Equality."

The project has a value of EUR 30,000, will last for one year, and will include the following:

• • • •

6)

Education of 120 farmers A visit to Vojvodina, where they will participate in the work of already functioning farms Establish cooperation between farms Strategically plan for the establishment of a new association

SRFP focus group discussions to begin on September 3

August 27th, 2019, https://agrosmart.net/2019/08/30/20624/

Under the German Development Bank (KfW) Development of Financial Systems in Rural Areas in Serbia (SRFP) program, implementing firm Business and Finance Consulting (BFC) together with its local partner, Smart IPARD will organize a series of focus group discussions to gather direct, honest and valuable insight into the most significant training needs in your area.

As part of SRFP’s support in enhancing the competitiveness of MSMEs and other entrepreneurs in rural areas of Serbia, a series of trainings will be offered on a variety of topics, including, among others, how to write bankable business plans, IPARD/government subsidies, financial management, business certification and export development. The ultimate goal of these trainings is to build local and regional business capacity in a way that creates new employment opportunities and increases income. These trainings will be implemented in all Serbian municipalities, except Belgrade and Novi Sad. BFC and Smart IPARD experts will hold the focus groups in order to gain direct insights into the needs of MSMEs and other entrepreneurs and will organize follow-up trainings accordingly.

The first focus group discussions will be held at the Kovacevic Wine House, in Irig on September 3, 2019 from: • 09:00 to 11:00 for processors of fruits, vegetables, meat, milk, grapes, as well as farms engaged in primary agricultural production • 11:00 to 13:00 for MSMEs engaged in non-agricultural activities that rely on the agro-sector (packaging manufacturers, transportation firms, machinery manufacturers, etc.)

To confirm participation, call 063 500525 or 063 685883 or e-mail: kontakt@smartipard.rs

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BFC Agriculture Bulletin

Private Sector 7)

State grants for building, equipping farms

August 22nd, 2019, http://www.agronews.rs/tri-i-po-miliona-za-izgradnju-i-opremanje-farmi/

Applications for state grants to construct and equip farms and cold storage facilities are now being accepted by the Agrarian Payments Directorate. Those eligible for the grants include commercial family farms, entrepreneurs, agricultural cooperatives with at least five members and secondary schools that are registered as an agricultural holding and in an active status. Grants will cover 50-60% of investment costs up to a maximum of RSD 3,500,000.

8)

Serbian crop analysis platform now has 1,700 users worldwide

August 22nd, 2019, https://www.ekapija.com/en/start-up/2607889/agremo-serbian-startup-for-crop-analysis-has-over-1700users-from-more

Serbian startup Agremo has developed a software platform for agricultural producers that uses drones, artificial intelligence, machine learning and computer vision to help better manage crops. The platform, launched in 2017, has more than 1,700 users in over 100 countries and has helped agricultural producers better manage more than 100 crop types. Based on a cloud service, the platform uses data extracted from images recorded by drones and then analyzes a number of factors that enable agricultural producers to plant, track and assess the success of different agricultural activities.

9)

Russia may impose temporary restrictions on Serbian fruit imports

August 15th, 2019, http://rs.n1info.com/Biznis/a508068/Rusija-mozda-uvede-ogranicenje-na-uvoz-voca-iz-Srbije.html

Russia could impose temporary restrictions on Serbian fruit imports. Russia became concerned with Serbian fruit after discovering infections in 12 lots of fruit exported from Serbia to Russia in July. Russia has stated that it will continue to monitor the situation and investigate cases of contaminated fruit.

Russia has already excluded four exporters and 200 producers from its list of authorized trading partners. A similar situation occurred last year, and Russia only lifted those restrictions in May of this year.

10) High tomato prices due to production failure August 11th, 2019, https://www.danas.rs/ekonomija/zasto-je-cena-paradajza-stigla-do-200-dinara/

The price of tomatoes in Serbia has been very high, especially for a season in which volumes should be higher and prices should be lower. The reason for this is that domestic production, by and large, failed this year due to a combination of heavy rain, late planting and smaller production areas. Higher prices are also partly the result of resellers being incorporated into the price. Given that Serbia imports approximately 16,000 tons of its annual demand of 25,000 tons, it is surprising that more tomatoes were not imported to offset production failures.

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BFC Agriculture Bulletin

11) State asked to look into possible collusion by berry buyers August 6th, 2019, http://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239.html:810676-Proizvodjaci-malina-i-kupina-saKomisijom-za-zastitu-konkurencije-o-problemu-niskih-cena-tog-voca

The president of the Serbian Association of Raspberry and Blackberry producers has asked the state to look into claims that berry buyers are colluding to set low purchase prices from producers. Buyers currently buy blackberries for RSD 30-50 and export them at prices of RSD 140-160. Similarly, raspberries are purchased for RSD 140-160 and exported at prices of RSD 200-250. Most blackberry and raspberry producers have been operating at a loss for the last three years and are forced to sell at lower prices or risk getting nothing for their products.

12) Quota-free exports of Serbian agricultural products to China to begin August 2nd, 2019, http://www.tanjug.rs/full-view_en.aspx?izb=498086

Exports markets for Serbian agricultural products continue to grow as quota-free exports of Serbian pork, dairy products, apples and maize to China are set to begin in November. An initial quantity of 50,000 tons of pork is expected to be exported to China once the quota-free exports begin. Serbian officials are also hopeful that other meat products, including Turkey products, will begin their entry into new markets in the near future. Agriculture Minister Branislav Nedimovic noted that Serbian farmers will be the biggest beneficiaries from the growing number of markets and that domestic markets will not be affected.

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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.

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