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61 S e r b i a Agriculture Bulletin Database of organic products to be created RGZ platform and digital app to bring more efficiency to agricultural inspections World Bank to provide USD 50 million for agricultural investments Agricultural exports up 10.3%, even as meat exports fall
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Agriculture Finance Bulletin Edition #61, October 2020
Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)
Database of organic products to be created ................................................................................... 2 2019 law on seasonal work moving things in the right direction ................................................... 2 RGZ platform and digital app to bring more efficiency to agricultural inspections ........................ 2 National Rural Revival Program gives recommendations to new government .............................. 2
Foreign Aid ................................................................................................................. 3 5) 6) 7) 8)
EBRD, FAO develop guidelines to prevent COVID-19 spread during agricultural processes .......... 3 Serbian organic producers to participate at international organics fair ......................................... 3 World Bank to provide USD 50 million for agricultural investments .............................................. 3 Free trainings for farmers and small businesses ............................................................................. 3
Private Sector.............................................................................................................. 4 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21)
Cereal prices on the rise globally due to food security concerns.................................................... 4 Agricultural exports up 10.3%, even as meat exports fall ............................................................... 4 Five companies receive licenses to export dairy products to China ............................................... 4 Less than 1% of agricultural land used for organic production ....................................................... 5 EC report highlights issues in Serbia’s development ....................................................................... 5 Development of national brands as important for growth ............................................................. 5 Agricultural product prices up 4.1% ................................................................................................ 5 Potato production areas in continual decline ................................................................................. 5 Serbian apples exported to India .................................................................................................... 6 Young farmers send open letter to Agriculture Minister ................................................................ 6 Serbia named a high risk country for African swine fever .............................................................. 6 Rains delay sowing of wheat, rye, barley and oats in Vojvodina .................................................... 6 2020 already a successful year for farmers ..................................................................................... 7
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. Currently, BFC is implementing “Development of Financial System in Rural Areas in Serbia” programme for KfW. Read more »
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State Initiatives 1)
Database of organic products to be created
October 23rd, 2020, http://www.politika.rs/scc/clanak/465190/Lazni-organski-proizvodi-najvise-se-prodaju-na-pijaci
The Ministry of Agriculture has announced the creation of a database of organic food products as many products marketed as organic in the country are actually not. The database will help protect both organic producers as well as consumers. The Ministry reminds consumers that organically-certified food products are clearly marked as such and that labels such as “bio”, “eco” and “organic” without such a certification are likely not organic. Organic products are becoming increasingly important, especially in export markets in the European Union (EU). As such, the Ministry of Agriculture is planning to increase state support (including subsidies) for organic production in the country.
2)
2019 law on seasonal work moving things in the right direction
October 16th, 2020, http://www.agronews.rs/pozitivni-rezultati-reforme-sezonskog-zaposljavanja-u-poljoprivredi/
In January 2019, the Law on Simplified Employment in Seasonal Jobs in Certain Activities came into force, which, among other things, enabled the registration of seasonal workers on the basis of an oral contract via an electronic portal with just a few clicks. It also included the payment of a fixed amount of taxes and contributions per actual day worked. Under the law, seasonal workers do not lose any previously-acquired unemployment or social benefits nor are they removed from the state unemployment register. According to a new survey, the implementation of the law is functioning as intended, although much work needs to be in informing seasonal workers of their rights under the law.
3)
RGZ platform and digital app to bring more efficiency to agricultural inspections
October 15th, 2020, http://www.stips.minpolj.gov.rs/srl/vest/efikasniji-rad-uz-platformu-i-digitalnu-aplikaciju-rgz
Agricultural inspectors in Serbia will be able to more quickly and efficiently perform their job functions using the new digital platform Geosrbija and the mobile app crowdSDI, both of which were developed by the Republic Geodetic Authority (RGZ). Specifically, the platform and app will allow inspectors to easily identify a plot of land and connect it with all other relevant registers. This will allow existing digital databases to be kept up to date in real time and expedite processing. It will also allow for the state to more effectively monitor the status of land in the country and the overall status of important sectors, especially agriculture.
4)
National Rural Revival Program gives recommendations to new government
October 10th, 2020, https://www.021.rs/story/Info/Biznis-i-ekonomija/255447
The National Rural Revival Program of Serbia is recommended that Serbia establish a Rural Infrastructure Development Fund and the Agrarian Development Bank. In addition, they have recommended that 10% of the national budget be allocated for agricultural support and development. Prime Minister Ana Page 2
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Brnabic has promised to include these recommendations as priorities for the new government and stressed the importance of investing in the quality of life in rural areas.
Foreign Aid 5)
EBRD, FAO develop guidelines to prevent COVID-19 spread during agricultural processes
October 24th, 2020, http://www.agronews.rs/smernice-za-prevenciju-zaraze-virusom-korona-u-lancu-snabdevanja-zitom/
The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) organized a series of COVID-19 security trainings and presented guidelines for reducing the risk of infection during grain loading and storage. Despite the largely mechanized processes, there are still segments that can jeopardize biosecurity (e.g. direct physical contact between farmers, truck drivers, quality control laboratory staff and others). This has prompted EBRD and FAO to develop guidelines for the operation of silos and present them to more than 500 local participants. The trainings includes good practices of biological protection against the spread of COVID-19, with a special focus on critical control points such as truck movement patterns, grain sampling and testing, unloading and access by external staff and visitors.
6)
Serbian organic producers to participate at international organics fair
October 23rd, 2020, http://www.stips.minpolj.gov.rs/srl/vest/pozv-za-ucesce-na-sajmu-biofach
The Chamber of Commerce of Serbia and the Development Agency of Serbia, working in cooperation with the Swiss Export Promotion Program and the National Association for the Development of Organic Production Serbia, are organizing the presentation of Serbian organic producers at the upcoming international organic food fair BIOFACH 2021, which will take place in Nuremberg between February 17 and February 20, 2021.
7)
World Bank to provide USD 50 million for agricultural investments
October 18th, 2020, https://www.novosti.rs/vesti/ekonomija/927066/
Farmers in Serbia are set to receive USD 50 million in financial assistance from the World Bank in 2021. The funds are being available for making investments in the agricultural sector. 50% of the cost of approved projects will be given to farmers directly; 40% of the cost will be financed through a cooperating financial institution; and 10% will be the responsibility of farmers. This represents an important opportunity for the growth of Serbia’s agricultural sector.
8)
Free trainings for farmers and small businesses
October 15th, 2020, https://agrosmart.net/2020/10/15/srfp
The KfW-funded Development of Financial Systems in Rural Areas in Serbia (SRFP) program was designed to increase income in rural areas of Serbia via access to soft loans and via support measures to strengthen the competitiveness of micro-, small- and medium-sized enterprises (MSMEs) operating throughout the country. To support MSMEs, implementing organization Business \u0026 Finance Consulting (BFC) organized a series of trainings for farmers, entrepreneurs and representatives of MSMEs in Page 3
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rural areas of Serbia. These trainings, offered free of charge, have helped hundreds of participants improve their knowledge in various areas of business, including finding sources of financing, production and marketing. The trainings are currently being conducted in an online format due to the COVID-19 pandemic, and BFC is organizing more trainings due to the popularity of them. Topics for future trainings include insurance in agriculture, geographical origin labels and accessing IPARD funds. The trainings are being conducted in partnership with local companies Smart IPARD and Eduka Plus.
Private Sector 9)
Cereal prices on the rise globally due to food security concerns
October 26th, 2020, https://www.danas.rs/ekonomija/sakovic
The demand for cereals worldwide is growing as concerns over food security (especially in China, the Middle East and African countries) are growing. As such, prices for cereals are growing, and this is being reflected in higher prices in Serbia as well. This is best evidence in the cost of corn (which was about 36% less expensive at this time last year) and wheat (which saw an increase in price of 11% in just one week). Soybeans have also become approximately 27% more expensive over last year.
10) Agricultural exports up 10.3%, even as meat exports fall October 25th, 2020, https://www.danas.rs/ekonomija/korona-pomogla-vocarima-sasekla-mesare/
Since the beginning of the COVID-19 pandemic, fruit and vegetable producers and exporters have reported an increase in exports of nearly 20%. From January to August of this year, fruit and vegetable exports are the second-most exported goods in terms of value, reaching EUR 564.2 million in value. In fact, exports from the agricultural sector as a whole during the first half of the year grew 10.3% year-onyear. At the same time, meat exports have seen a sharp decline, which has led to domestic prices for meat falling due to oversaturation. The decline in export number is due to the postponement of large meat export agreements with China and Turkey (due to the COVID-19 pandemic) as well as the appearance of African swine fever in the country.
11) Five companies receive licenses to export dairy products to China October 22nd, 2020, http://www.stips.minpolj.gov.rs/srl/vest/jos-dozvola-za-izvoz-mlecnih-proizvoda-u-kinu
After several months of intensive cooperation with the Customs Administration of the People's Republic of China, five Serbia dairies (Mlekara Ub, Mlekoprodukt, Megle Srbija, Imlek AD and Somboled) now have licenses to export to China. This is the first time Serbian dairy producers have received licenses to the world’s largest market, representing a significant opportunity for the country’s dairy industry. It should be noted that work continues to get other interested companies licensed as well.
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12) Less than 1% of agricultural land used for organic production October 19th, 2020, http://www.tanjug.rs/full-view_en.aspx?izb=598365
Organic food products are being cultivated on less than 1% of agricultural land in Serbia, a small area when compared to the 20% figure in industrialized countries like Austria. This is likely due to the fact that most of Serbia’s 7,000 organic producers are small farmers. In response to this data, Agriculture Ministry official Branislav Raketic has called for measures, including subsidies, to increase organic production in the country as the government believes that organic production will become increasingly important for Serbia’s agricultural sector.
13) EC report highlights issues in Serbia’s development October 13th, 2020, http://www.agronews.rs/izvestaj-o-napretku-srbije-ipard-suvise-spor-bez-pomaka-u-gmo-regulativi/
The report of the European Commission (EC) on the progress of Serbia states that, in the areas of agriculture and food and veterinary safety, progress has been made in certain segments, albeit not enough. The EC report noted that the permitted level of aflatoxins in milk is still five times higher than the one prescribed in the European Union (EU) and that no progress has been made in changing regulations related to GMOs. The EC report also expressed disappointment regarding IPARD implementation, which it views as slowmoving and with overly-lengthy procedures for processing requests for approval. In this regard, the report recommends speeding up the processing of IPARD applications, especially as two more IPARD measures have been accredited. It should be noted that IPARD funds can be lost if not used.
14) Development of national brands as important for growth October 13th, 2020, http://www.rtv.rs/sr_ci/ekonomija/nedimovic-srpsko-vino-je-kao-brend-u-razvoju_1169624.html
The government of Serbia has allocated three times more money for viticulture this year than it did last year as part of a concerted effort to develop a national wine brand. The government holds that developing a national brand will help Serbian wine make a mark in various markets around the world and could set a precedent for other sectors (e.g. food industry and rural tourism) to follow suit in developing their own brand identities.
15) Agricultural product prices up 4.1% October 13th, 2020, https://agrosmart.net/2020/10/13/cene
Producer prices of agricultural and fishery products in August 2020, as compared to August 2019, increased by 4.1%, with the largest price increases seen in fruits (30.3%) and industrial plants (13.3%). Compared to July 2020 however, prices decreased by 0.9%, including for industrial plants (-2.1%), fruits (-3.8%) and livestock/poultry (-3.8%).
16) Potato production areas in continual decline October 9th, 2020, http://www.stips.minpolj.gov.rs/srl/vest/cak-i-krompir-uvozimo-zasto-se-uzgoj-ne-isplati
Each year, the area used in Serbia for potato production is decreasing and now only amounts to approximately 30,000 hectares. The two main reasons for this are: (1) yields of between 20 and 30 tons per Page 5
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hectare (as opposed to 70 tons per hectare in the European Union (EU) and (2) a lack of quality storage facilities. The Ministry of Agriculture is encouraging producers to invest in modern storage systems through a subsidy program in an effort to boost potato production and reduce Serbia’s dependence on imported potatoes.
17) Serbian apples exported to India October 9th, 2020, http://www.tanjug.rs/full-view_en.aspx?izb=595799
Serbia’s MK Group and its member company Agrounija have launched apple exports to India. Approximately 1,000 tons of the fruit will be exported within the first year. Eventually, MK Group plans to export around 10% of its total output to India, helping Serbian producers break into this important market and contributing to overall national growth.
18) Young farmers send open letter to Agriculture Minister October 8th, 2020, http://www.agronews.rs/mladi-poljoprivrednici-traze-hitnu-isplatu-dugova/
In an open letter to Agriculture Minister Branislav Nedimovic, the Association of Young Farmers of Serbia are calling for assistance to finally arrive for farmers. They note that the government has been late to respond with solutions to current problems and that they have received nothing from the pandemic mitigation package. They request the Minister to act quickly and pay these debts as this is a particularly difficult and unpredictable year that has put the livelihoods of many young farmers and their families at risk.
19) Serbia named a high risk country for African swine fever October 8th, 2020, http://rs.n1info.com/Biznis/a658526/Svinjska-kuga-u-Srbiji-EFSA.html
The European Food Safety Authority (EFSA) has identified Serbia as a country at high risk for African swine fever. In response, EFSA has launched a large informational campaign across Southeastern Europe (including Serbia) that the virus, although not dangerous to humans, can decimate pig populations. At the beginning of 2020, the Veterinary Administration of Serbia declared an epidemic of African swine fever on the territory of two hunting grounds in the Pirot district and one in the vicinity of Kladovo. Additionally, 619 domestic pigs were euthanized in August due to the virus. Serbia currently has 2,782,000 pigs and produces between 250,000 and 300,000 tons of pork annually.
20) Rains delay sowing of wheat, rye, barley and oats in Vojvodina October 2nd, 2020, http://rs.n1info.com/Biznis/a656362/Kise-zaustavile-setvu-psenice-i-drugih-zitarica-u-Srbiji.html
Unusual amounts of rain stopped farmers in Vojvodina from preparing land for the sowing of wheat, rye, barley and oats, leaving land too wet for sowing activities. At the same time, other areas are too dry. The optimal timeframe for sowing these crops is between October 1 and October 25.
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21) 2020 already a successful year for farmers October 1st, 2020, http://www.stips.minpolj.gov.rs/srl/vest/uspesna-godina-za-ratare
Although final data regarding yields will not be published until March 2021, it is clear that Serbia has had a successful year in cereal production. Specifically, Serbia has produced 2.9 million tons of wheat this year, a year-on-year increase of 17.3%. Moreover, Serbia is also expected to produce approximately 8.0 million tons of corn, a 9.6% year-on-year increase, as well as see increases in the production of soybeans (15.1%), sugar beets (10.5%) and sunflowers (8.8%).
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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.
