12/2020
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63 S e r b i a Agriculture Bulletin Ministry of Agricultural expands list of young farmers to receive state support EUR 38 million in incentives to 32 food industry investors since 2006 Inspection uncovers 948 hectares of abandoned state-owned agricultural land Duty-free fruit and vegetable exports to the EU to continue
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Agriculture Finance Bulletin Edition #63, December 2020
Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5)
Questions over the use of state-owned agricultural land leased to German company ................. 2 Ministry of Agricultural expands list of young farmers to receive state support ........................... 2 Incentives for cooperative development to expand beyond agriculture........................................ 2 Prime Minister announces continued government support for agriculture ................................... 2 EUR 38 million in incentives to 32 food industry investors since 2006........................................... 3
Foreign Aid ................................................................................................................. 3 6) 7) 8) 9)
Inspection uncovers 948 hectares of abandoned state-owned agricultural land ........................... 3 Agro Info Caravan to spread information on seasonal work in 15 communities ............................ 3 50% of approved IPARD amounts to be made available in advance............................................... 3 Spanish agricultural technology on display for Serbian producers ................................................. 4
Private Sector.............................................................................................................. 4 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21) 22)
Sunoko opens agricultural research and development center ....................................................... 4 Duty-free fruit and vegetable exports to the EU to continue ......................................................... 4 State agricultural budget set for 2021............................................................................................. 4 Winemaking and viticulture have significant economic potential .................................................. 5 Serbian raspberries attracting increased prices on export markets ............................................... 5 October producer prices of agricultural products up 10.9% ........................................................... 5 Call for extra earnings to be shared with berry producers ............................................................. 5 Serbian livestock producers concerned over low prices ................................................................. 5 Possible record autumn/winter wheat harvest............................................................................... 6 Potential to expand cooperation with China, Central and Eastern Europe .................................... 6 Sales of agricultural products up 13.1% .......................................................................................... 6 Deal brings sustainable agricultural technologies to Serbia ........................................................... 6 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)
Questions over the use of state-owned agricultural land leased to German company
December 23rd, 2020, http://rs.n1info.com/Biznis/a686783/VOICE-Nakon-neuspeha
Thousands of hectares of state-owned agricultural land that Serbia agreed to lease to German company Tonnies are now being cultivated by domestic failed companies and powerful local persons. In 2016, Serbia reached a 30-year lease agreement with Tonnies for use of the land, with an understanding that the company would invest EUR 300 million into livestock production in Serbia. To date however, the company has yet to invest even a single euro, and much of the land leased to them is being used by others. Based on research, it seems that Tonnies is sub-leasing the land instead of using it for its own activities. When asked about the promised investments and why the company has seemingly given up on investing in Serbia, Tonnies was unresponsive.
2)
Ministry of Agricultural expands list of young farmers to receive state support
December 19th, 2020, http://www.minpolj.gov.rs/jos-jedna-dobra-vest-za-mlade-poljoprivrednike-prosirena-lista/
The Ministry of Agriculture has announced that its list of young farmers who will receive funding from the state this year has been expanded from 2,500 to 3,000. The state support is meant to support young farmers in rural areas who are starting up or expanding their agricultural business. Each recipient is eligible to receive up to RSD 1.5 million for the procurement of seeders, disc harrows, cutters and/or other agricultural machinery as well as for the purchase of planting material or livestock.
3)
Incentives for cooperative development to expand beyond agriculture
December 14th, 2020, http://www.rtv.rs/sr_ci/drustvo/krkobabic-pomagacemo
The Minister without Portfolio, Milan Krkobabic, has announced that the government will continue to provide incentives for agricultural cooperatives but will also expand its activities to include cooperatives active in other activities. The Minister also noted that a greater emphasis will be placed on the transfer of knowledge and the use of technology within cooperatives.
4)
Prime Minister announces continued government support for agriculture
December 14th, 2020, http://www.tanjug.rs/full-view_en.aspx?izb=613773
Prime Minister Ana Brnabic, speaking at the opening of the Novi Sad Agriculture Fair, announced that the government will continue to invest in the strengthening and further development of the agricultural sector. She noted that the sector displayed a particular resilience in light of the COVID-19 pandemic. She also hopes that continued support will help the sector push further in its transformation to a sector that produces more value-added products (as opposed to just exporting raw materials). This, in turn, will help boost the country’s overall economic growth.
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BFC. Agriculture Finance Bulletin.
5)
EUR 38 million in incentives to 32 food industry investors since 2006
December 4th, 2020, http://www.tanjug.rs/full-view_en.aspx?izb=611214
The Serbian Ministry of Economy has approved over EUR 38 million worth of incentives to 32 investors in the food industry sector since 2006. These incentives have allowed investors to increase their workforces and boost revenues (some by as much as 25% year-on-year). On average, the companies that have benefitted from this assistance each have 84 employees.
Foreign Aid 6)
Inspection uncovers 948 hectares of abandoned state-owned agricultural land
December 21st, 2020, https://www.novosti.rs/vesti/ekonomija/946992/otkriveno-cak-546-napustenih-parcela-uprava-zemljiste
During recent field inspections, the Ministry of Agriculture uncovered 546 abandoned plots of stateowned agricultural land, covering 948 hectares. In total, it is estimated that between 200,000 and 350,000 hectares of arable land and meadows in Serbia are not regularly used. The Ministry is currently working on a plan to lease such land free of charge for five years, with the assumption that farmers will make improvements to the land during this time. After this five-year period, the land will be leased to the same farmers for up to 25 years under favorable conditions.
7)
Agro Info Caravan to spread information on seasonal work in 15 communities
December 20th, 2020, http://rs.n1info.com/Biznis/a685571/NALED
Between December 24, 2020 and January 15, 2021, a new Agro Info Caravan will make its way to 15 local communities in order to acquaint agricultural producers and seasonal workers with simplified procedures for engaging in seasonal jobs via an online portal and mobile app. The caravan is part of a National Alliance for Local Economic Development (NALED) initiative to increase awareness about the electronic registration of seasonal workers, which will both protect worker rights and increase worker wages. NALED is being supported in this by the German Development Cooperation.
8)
50% of approved IPARD amounts to be made available in advance
December 18th, 2020, http://www.stips.minpolj.gov.rs/srl/vest/od-naredne-godine-avansna-isplata-dela-ipard-podsticaja
The director of the Directorate for Agrarian Payments of the Ministry of Agriculture confirmed that changes to the legal framework for the approval of IPARD projects will allow recipients to withdraw up to 50% of approved support amounts in order to make advanced payments. This change is expected to go into effect in early next year, after the adoption of amendments to the Law on Agriculture and Rural Development and after the beginning of the implementation of the IPARD III program. Prior to this change, IPARD legislation stipulated that, after approval, a recipient was required to fully fund the investment (usually with the help of a financial institution) and then receive refund from IPARD.
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BFC. Agriculture Finance Bulletin.
9)
Spanish agricultural technology on display for Serbian producers
December 14th, 2020, https://www.ekapija.com/en/news/3104295/spanish
The Economic Department of the Embassy of Spain in Belgrade and the Spanish Institute for Foreign Trade are presenting the most advanced Spanish agricultural technology to Serbian producers at the Expo Online Agriculture event. In particular, six Spanish companies will offer their services and be available for online meetings: Semillas Fito (a seed company), TradeCorp (offering plant feeding and plant protection products), RKD (offering pivot irrigation systems, Criado y Lopez (offering agritextile and crop protection nets) and Novagric and Inverca (both offering solutions for growing in a protected space). Spain is one of the leading agricultural producers in Europe and the world, despite much of its agricultural production being concentrated in parts of the country that have climates and soil qualities not typically favorable for agriculture.
Private Sector 10) Sunoko opens agricultural research and development center December 22nd, 2020, http://www.tanjug.rs/full-view_en.aspx?izb=616146
The agricultural company Sunoko, a member of the MK Group, has opened an agricultural research and development center, the first of its kind in Serbia. The center will make use of cutting-edge technology to enable more efficient sugar beet production. It will also keep up with the latest scientific research and advances as well as ensure that production techniques are in line with the guidelines of the best agricultural practices.
11) Duty-free fruit and vegetable exports to the EU to continue December 21st, 2020, http://www.tanjug.rs/full-view_en.aspx?izb=615957
Fruit and vegetable producers and exporters from Serbia and other Western Balkan economies will be able to continue duty-free exports of their goods to the European Union (EU) for five more years following a recent EU decision. The decision, renewed every five years at the European Commission’s recommendation, has been adopted by the European Parliament and approved by the Council of the EU. This measure will help Serbia fruit and vegetable producers and exporters further develop by giving them a stronger position in EU markets than they otherwise would have had.
12) State agricultural budget set for 2021 December 21st, 2020, http://www.agronews.rs/poljoprivredna-kasa-teska-528-milijardi-dinara/
The Assembly of Serbia recently passed the Law on the Budget for 2021, which has allocated RSD 41,865,313,000 for agricultural subsidies in the coming year. This is only slightly more than the RSD 41,008,753,000 made available under the 2020 state budget. While the budget has been set, special acts (expected to come in the first months of the new year) will determine for what purposes subsidies in 2021 can be used. In addition, the 2021 budget allocates RSD 52,824,876,000 to the Ministry of Agriculture, including RSD 38,351,789,000 for the Administration for Agrarian Payments and RSD 572,264,000 for the Administration for Agricultural Land.
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BFC. Agriculture Finance Bulletin.
13) Winemaking and viticulture have significant economic potential December 17th, 2020, https://agrosmart.net/2020/12/17/vinarstvo-i-vinogradarstvo-znacajan-privredni-potencijal-srbije/
The online Winemaking and Viticulture as an Economic Potential in Serbia conference featured discussions around the government’s recent decision to adopt the National Strategy for the Development of Winemaking and Viticulture. In particular, participants discussed the importance of state support for winemaking, especially as the industry tries to recover from a difficult 2020. Participants also discussed the need for winemakers to gather around a common concept for development as well as currentlyavailable incentives and new market opportunities.
14) Serbian raspberries attracting increased prices on export markets December 15th, 2020, https://www.novosti.rs/vesti/ekonomija/945155/srpska
Serbian raspberries have attracted an increased price of EUR 3.5 per kilogram on world markets. Experts believe this increased price is due to the combination of the COVID-19 pandemic increasing demand for healthier foods and the raspberry harvests in competing producer countries (e.g. Chile, Poland) failing significantly. Serbia has been partially filling worldwide raspberry deficits; however, its stocks are now decreasing rapidly. In response, the Ministry of Agriculture recently announced that it will subsidize the renewal of raspberry production with quality planting material. This will help the sector maintain its position worldwide and, hopefully, open up new, more lucrative contracts.
15) October producer prices of agricultural products up 10.9% December 13th, 2020, https://agrosmart.net/2020/12/13/poljoprivredni
Producer prices of agricultural and fishery products in October 2020 increased by 3.8% compared to September 2020 and by 10.9% year-on-year. The greatest increases were seen in the price of fruits (up 21.6% year-on-year), cereals (up 21.1% year-on-year) and industrial plants (up 12.6% year-on-year). Average producer prices of agricultural and fishery products for the January—October 2020 period increased by 3.9% year-on-year.
16) Call for extra earnings to be shared with berry producers December 11th, 2020, http://rs.n1info.com/Biznis/a682444/Apel
The president of the Association of Raspberry and Blackberry Producers in Serbia is calling on berry exporters to share their extra earnings from the sale of Serbian berries in export markets with berry producers. This would help motivate producers to renew their production efforts and restore faith in the sector as a profitable one for producers. Berries have been exported recently at prices at least 70% higher than their purchase prices.
17) Serbian livestock producers concerned over low prices December 9th, 2020, https://www.novosti.rs/vesti/ekonomija/943533/bez-slava
Serbian livestock producers have recently expressed concerns over the lower purchases they are seeing for their production, mostly due to cheaper imports. For example, Serbia has imported 16,000 tons of pork (worth more than EUR 44 million) from the European Union (EU) in the last nine months. At the same time, Serbian livestock producers are facing higher input prices, especially higher prices for corn feed and fatteners.
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BFC. Agriculture Finance Bulletin.
18) Possible record autumn/winter wheat harvest December 2nd, 2020, http://rs.n1info.com/Biznis/a678914/Prostran-Moze-se-ocekivati-rekordna-proizvodnja-psenice.html
At the time of sowing autumn/winter wheat, the price of wheat (at RSD 21.22 per kilogram) was slightly more than last year. This gave an additional impetus for producers to plant more this year. In fact, experts believe that, if the weather this winter and spring are good, this year may be a record year in terms of production.
19) Potential to expand cooperation with China, Central and Eastern Europe December 2nd, 2020, http://www.tanjug.rs/full-view_en.aspx?izb=610601
Veljko Jovanovic of the Chamber of Commerce and Industry of Serbia (PKS) has noted that Serbia has the potential to expand cooperation with Chinese and Central and Eastern European partners, especially in the areas of wine and spirits, berry fruits and grains. In this regard, Jovanovic urged Chinese investors to consider increasing their investments in Serbian agriculture.
20) Sales of agricultural products up 13.1% December 2nd, 2020, https://agrosmart.net/2020/12/02/prodaja-i-otkup-poljoprivrednih-proizvoda-porasli-za-131-odsto/
The total value of sales of agricultural, forestry and fishery products in Serbia in the third quarter of 2020 was 13.1% higher year-on-year by current prices. For the first nine months of 2020, this figure was 8.6%.
21) Deal brings sustainable agricultural technologies to Serbia December 1st, 2020, https://www.proactiveinvestors.com.au/companies/news/935289/roots
Roots Sustainable Agricultural Technologies Limited (Roots) is expanding its European presence through a deal with established agriculture and water treatment technologies supplier Avital COO (Avital). The deal will see the Root’s proprietary root zone temperature optimization and heat exchange probe technology be deployed in Serbia and other Balkan countries. Avital plans on using the new technology to boost blueberry production capacity. Specifically, 420 blueberry plants will be heated or cooled using the technology as part of an initial trial. Roots is confident that a successful trial will generate revenuegenerating contracts in Serbia.
22) International Agricultural Fair held online December 1st, 2020, https://www.ekapija.com/en/news/3088434/this-years
This year’s International Agricultural Fair was held in an online format from December 14, 2020 through December 18, 2020. The event featured more than 130 exhibitors from Serbia and abroad who offer agricultural products and services. Visitors interested in conducting business with exhibitors were able to initiate online videos and calls to discuss possible collaboration.
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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.
