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62 S e r b i a Agriculture Bulletin Atlas of Serbia’s food industry to be created RSD 5.1 billion for agriculture under rebalanced national budget EBRD, FAO provide trainings to protect Serbia’s grain supply chain Belgrade Food Show 2020 held
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Agriculture Finance Bulletin Edition #62, November 2020
Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5)
Many disappointed in limited number of state subsidies for young farmers ................................. 2 Atlas of Serbia’s food industry to be created .................................................................................. 2 RSD 5.1 billion for agriculture under rebalanced national budget.................................................. 2 Need for more processors to help family farms.............................................................................. 2 State to lease uncultivated land to young farmers for free ............................................................ 3
Foreign Aid ................................................................................................................. 3 6) 7) 8)
Dutch support for Serbian berry production ................................................................................... 3 Seventh session of IPARD II Monitoring Committee held ............................................................... 3 EBRD, FAO provide trainings to protect Serbia’s grain supply chain .............................................. 3
Private Sector.............................................................................................................. 4 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21)
12.5 million tons of biomass to go unused...................................................................................... 4 Belgrade Food Show 2020 held ....................................................................................................... 4 COVID-19 pandemic has not impacted dairy production................................................................ 4 Meat imports twice as high as meat exports .................................................................................. 4 High interest in organic food production ........................................................................................ 4 Raspberry demand up worldwide ................................................................................................... 5 Low chicken meat prices have poultry farmers concerned ............................................................ 5 Agricultural sector growth of 2.2% in the first half of 2020 ............................................................ 5 Local markets remain a significant link in the agricultural supply chain ......................................... 5 Call for investments to increase raspberry production ................................................................... 6 Producer prices for agricultural and fishery products up 8.1% ....................................................... 6 Association of Wine Importers and Distributors founded .............................................................. 6 Novi Sad International Agricultural Fair held online ....................................................................... 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. Currently, BFC is implementing “Development of Financial System in Rural Areas in Serbia” programme for KfW. Read more »
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BFC. Agriculture Finance Bulletin.
State Initiatives 1)
Many disappointed in limited number of state subsidies for young farmers
November 19th, 2020, http://www.agronews.rs/drzava-da-ne-odbaci-vise-od-polovine-zahteva-za-subvencije/
The president of the Independent Association of Farmers of Serbia, Jovica Jaksic, has asked the Ministry of Agriculture to reconsider the rejection of applications for state subsidies for the purchase of agricultural machinery. Recently, Agriculture Minister Branislav Nedimovic announced that the state only approved 2,500 such applications (out of 5,500). The competition for funds was part of the state’s plan to boost support for young farmers (those 40 years old or under) by providing them subsidies of up to 70% for the cost of machinery. The confusion appears to stem from the fact that such funding was limited; however, this was not announced. Many young farmers, initially excited about the opportunity to receive support for enhancing their farmers, now remain disappointed.
2)
Atlas of Serbia’s food industry to be created
November 18th, 2020, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/nedimovic
Agriculture Minister Branislav Nedimovic has announced that the Ministry of Agriculture is working on the creation of the first atlas of the food industry of Serbia. The atlas is expected to help state officials and investors better understand production, capacities and storage capabilities in each part of the country. The Minister also announced a new decree designed to boost investments in and the use of new technologies in agriculture.
3)
RSD 5.1 billion for agriculture under rebalanced national budget
November 10th, 2020, https://agrosmart.net/2020/11/10/mali-rebalansom-budzeta-51-milijarda-dinara-za-poljoprivredu/
Finance Minister Sinisa Mali announced a rebalancing of Serbia’s national budget for the purposes of further strengthening the country’s health system, the continued development of the country and a better overall future for Serbian citizens. This rebalancing includes the allocation of RSD 5.1 billion for agriculture. This decision was made to support the sector amid the COVID-19 pandemic given its importance to the country’s economy as well as the safety of all citizens.
4)
Need for more processors to help family farms
November 6th, 2020, https://www.021.rs/story/Info/Biznis-i-ekonomija/257675/Kako-do-kupca
Serbia’s agricultural sector, once booming, has become a shell of its former self, leaving many farmers (especially small, family farmers) in a difficult position. Many smaller farmers are calling for state and investor assistance in the development of the sector, especially to increase the number of processors accessible to them. This is considered particularly important as it increases prices for products on international markets as well as establishes a healthy domestic “from field to table” market chain domestically. It is estimated that about 800,000 Serbian family farmers would benefit from improved processing capabilities within the country’s agricultural sector.
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BFC. Agriculture Finance Bulletin.
5)
State to lease uncultivated land to young farmers for free
October 31st, 2020, https://beta.rs/ekonomija/ekonomija-srbija/136002-krkobabic
Young farmers are being provided an opportunity to receive leases to work up to 50 hectares of uncultivated state land for free, with the only caveat being that they utilize the land in accordance with agricultural policy standards. The measure is part of a state effort to both support young farmers and restore work on the approximately 200,000 hectares of uncultivated state land in Serbia.
Foreign Aid 6)
Dutch support for Serbian berry production
November 27th, 2020, https://agrosmart.net/2020/11/27/novim-sortama-povecati-prinose-i-kvalitet-jagodastog-voca/
Serbia has great potential for the development of berries. Although positive results have been recorded in this sector in recent years, there are many opportunities to increase yields, introduce new varieties and improve quality. To this end, a collaborative project between Serbia and the Netherlands in this area (financed by the government of the Netherlands) will take place over the next three years. One of the main activities of the project is the establishment of a demonstration field that will show how new technologies, applied knowledge and importing the entire production chain can improve the quality and quantity of production. This will help increase the level of professional and practical knowledge in the country as well as the use of modern technologies and innovations.
7)
Seventh session of IPARD II Monitoring Committee held
November 3rd, 2020, http://uap.gov.rs/odrzana-sedma-sednica-ipard-ii-odbora-za-pracenje/
The seventh session of the IPARD II Monitoring Committee was held in late October 2020 in an online format, with the Agriculture Minister Branislav Nedimovic serving as chair. During the session, the Committee reviewed the results achieved in the implementation of IPARD incentives thus far. They also adopted the Fourth Amendment to the IPARD II Program as well as amendments to the Action Plan for Technical Assistance for 2020 and the Action Plan for Technical Assistance for 2021. In addition to the members of the IPARD II Monitoring Committee, the session was attended by representatives of the European Commission's Directorate General for Agriculture and Rural Development, the Delegation of the European Union to Serbia, the Ministry of Finance, the Ministry of European Integration, the EU Audit Office and others.
8)
EBRD, FAO provide trainings to protect Serbia’s grain supply chain
October 31st, 2020, https://agrosmart.net/2020/10/31/fao-i-ebrd-doprinose-boljoj-sigurnosti-u-lancu-snabdevanja-zitom/
Given Serbia’s status as a large export of wheat, corn and other cereals, it is important for food security in many parts of the world that Serbia’s grain supply chains remain uninterrupted amid the COVID-19 pandemic. For this reason, the European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) are working closely with the Serbian Cereal Association to provide trainings and give safety guidelines to the staff of 70 elevators and grain warehouses in Serbia. The trainings focused on good practices of biological protection, 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.
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BFC. Agriculture Finance Bulletin.
Private Sector 9)
12.5 million tons of biomass to go unused
November 26th, 2020, https://www.ekapija.com/en/news/3084705/a-total-of-125
After agricultural works have been completed on 3.47 million hectares in Serbia, over 12.5 million tons of biomass are expected to be left unused, including 9 million tons in Vojvodina. Biomass is a great unused energy potential for the energy independence of Serbia. It also helps reduce the emission of harmful gases and generates a number of direct and indirect employment opportunities.
10) Belgrade Food Show 2020 held November 23rd, 2020, http://www.agronews.rs/poceo-je-belgrade-food-show-2020/
The Belgrade Food Show 2020 officially was held in late November 2020 and featured panel discussions, lectures and interviews with representatives of key institutions and leading experts in the food industry. This was the third iteration of the international fair of high-quality food and, due to the COVID-19 pandemic, was held in an online format for the first time. The Fair gave Serbian producers of high-quality food and beverages the opportunity to present their businesses and products as well as virtually meet with customers and distributors. The event was organized by the Association for the Promotion of Serbian Food, with support provided by the Ministry of Agriculture and the Serbian Chamber of Commerce.
11) COVID-19 pandemic has not impacted dairy production November 22nd, 2020, https://agrosmart.net/2020/11/22/pandemija-ne-remeti-proizvodnju-mleka/
The COVID-19 pandemic has not interrupted the work of the dairy sector, with dairy farmers noting that the production and delivery of raw milk is taking place as usual with no delays. This is important as milk production does not cease, and delays could lead to spoilage (and lost product). Moreover, dairy farmers also report that there have been issues with receiving payments for their production from processors. It is estimated that Serbia produces 4,300,000 liters of milk annually.
12) Meat imports twice as high as meat exports November 19th, 2020, https://www.021.rs/story/Info/Biznis-i-ekonomija/258883/Uvoz
According to the data provided by the Serbian Chamber of Commerce, the total export of meat and meat products in the first nine months of 2020 was valued at EUR 67.5 million. At the same time, the total import of meat and meat products in the first nine months of 2020 was valued at EUR 116 million. This represents a growth in imports against exports, which is mostly due to processors importing meat for their work. Imported meat has mostly come for the European Union, where the prices of pork meat fell due to African swine flu and the blockade of German sales in China.
13) High interest in organic food production November 19th, 2020, http://www.tanjug.rs/full-view_en.aspx?izb=606909
According to the National Alliance for Local Economic Development, requests for organic food production subsidies are twice as much for the funds set aside in the national budget for that purpose, indicating a growth and strong interest in organic production in the country. In fact, the total area used for organic production in the country has grown by 236% in the past ten years (although it still only accounts for 0.6% of all agricultural land in use). The main obstacles faced by organic food producers are high initial investments and demanding administrative procedures. Page 4
BFC. Agriculture Finance Bulletin.
14) Raspberry demand up worldwide November 18th, 2020, https://www.novosti.rs/vesti/ekonomija/936763/korona
The COVID-19 pandemic has served as an impetus for increased worldwide demand for fresh and frozen fruits, including raspberries. With raspberry production on the decline in recent years, an increase in demand is good for producers as they are able to command a more favorable purchase price. In fact, the price of Serbian raspberries in international markets exceeds EUR 3 per kilogram and is continuing to grow. Experts note that the more favorable prices this year will likely lead to producers investing more in their plantations. Although this will somewhat improve raspberry production in the country, this is not expected to have a significant impact in the long term.
15) Low chicken meat prices have poultry farmers concerned November 17th, 2020, http://www.agronews.rs/zivinari-upozoravaju-na-dampingovanu-cenu-piletine/
The price of chicken meat has dropped so low that it has become unsustainable economically for poultry farmers, particularly with a recent rise in the price of chicken feed. In fact, greater competition and the huge stock of chicken meat in the market has led to prices being nearly half of what they were just 3 years ago. Many producers do not see a solution that will enable them to become economically viable again; however, others are calling for state action to prevent retailers from selling at low prices or possibly set a base price as the entire sector has reached a precipice that could lead to the destruction of the sector as a whole.
16) Agricultural sector growth of 2.2% in the first half of 2020 November 17th, 2020, https://www.ekapija.com/en/news/3072957/agriculture
According to the Statistical Office of the Republic of Serbia, Serbia’s agricultural sector brewed by 2.2% in the first half of 2020. Given the importance of agriculture to Serbia’s overall GDP (being at 7.5%), meant that Serbia’s overall economic activity only dropped 1% in the first half of the year, the best result in Europe. At the same time, many believe that Serbia’s economy would benefit even more if innovative solutions were implemented in its agribusinesses, something that will be discussed at the upcoming Summit of Business Leaders – CEO Summit Beograd, which will be held online in early December 2020.
17) Local markets remain a significant link in the agricultural supply chain November 16th, 2020, http://www.agronews.rs/pijace-i-dalje-znacajna-karika-na-trzistu-poljoprivrednih-proizvoda/
Despite new forms of trade (e.g. e-commerce, supermarkets and megamarkets), local markets are still one of the most important links in the chain of supplying the population with fresh and safe food (especially home-grown fruits and vegetables). Such markets emphasize the value of domestic products from the immediate environment and offer smaller producers efficient, easily-accessible and economically-viable distribution channels that are open daily. Each day, about 80,000 agricultural farms, producers, craftsmen and traders sell their goods in the country’s 400 registered markets. This includes the sales of vegetables (33% of the market), fruits and grapes (22.5% of the market), poultry and eggs (13.2% of the market) and milk and other dairy products (12.8% of the market).
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BFC. Agriculture Finance Bulletin.
18) Call for investments to increase raspberry production November 13th, 2020, http://www.rtv.rs/sr_ci/drustvo/nedimovic-rad
Agriculture Minister Branislav Nedimovic, during a visit to Prilike (Ivanjica municipality), noted the importance of raspberry production in the country. In particular, the Minister called for increased investments new planting material and the application of agrotechnical measures to achieve higher yields. The Minister also pointed out the importance of the agricultural sector as a whole for Serbia, especially during times of crisis such as the current COVID-19 pandemic.
19) Producer prices for agricultural and fishery products up 8.1% November 12th, 2020, https://agrosmart.net/2020/11/12/cene-poljoprivrenih-proizvoda
Producer prices of agricultural and fishery products in September 2020 increased 8.1% year-on-year. This includes increases in the prices of fruits (up 19.3% year-on-year), industrial plants (up 12.5% year-on-year) and cereals (up 6.9% year-on-year). At the same, the producer prices of agricultural and fishery products fell 1.9% in comparison to August 2020 prices. On the whole, producer prices of agricultural and fishery products for the January—September 2020 period increased by 3.1% on average.
20) Association of Wine Importers and Distributors founded November 10th, 2020, http://www.stips.minpolj.gov.rs/srl/vest/osnovano-udruzenje-uvoznika-i-distributera-vina
A large number of Serbian importers and distributors of wine have recently united under the newlyestablished Association of Importers and Distributors of Wine. The founders of the association say that it will, among other things, be dedicated to fighting monopolies and providing fair market conditions.
21) Novi Sad International Agricultural Fair held online November 8th, 2020, https://www.ekapija.com/en/news/3064058/novi-sad
The Novi Sad International Agricultural Fair was held in an online format this year in mid-November 2020 on the expoonline.rs platform. The Fair allowed companies, institutions and individuals to connect as well as showcased products made by award winners from the Best in 2020 contest.
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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.
