Private Sector

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.

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.

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

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.

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%).

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.