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64 S e r b i a Agriculture Bulletin No Plans to Ban Grain Exports
IPARD Public Call Plan for 2021 Announced RSD 37.5 Billion in IPARD Funds Allocated for Fixed Asset Procurement Strategy for Developing the Wine Industry for the 2021–2031 Period
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Agriculture Finance Bulletin Edition #64, January 2021
Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11)
No Plans to Ban Grain Exports ......................................................................................................... 2 Registration in the State Viticulture Register Obligatory for Most Grape Producers ..................... 2 Catalogues of Products with the Authentic Serbia Designation Published ..................................... 2 Call for Investment Incentives for Field Electrification ................................................................... 2 5,000 Hectares of State-Owned Arable Land Leased in the Last Three Years ................................ 3 Sheep Breeders Received No State Livestock Subsidies in 2020..................................................... 3 President Vucic Announces Increased Subsidies for Tractor Procurement .................................... 3 Push to Make Agricultural E-Market Platform Permanent ............................................................. 3 RSD 150 Million Export Promotion Program Announced ............................................................... 3 Cooperatives Eligible for RSD 15 million in Incentive Funds ........................................................... 4 RSD 53 Billion Allocated for Agricultural Subsidies ......................................................................... 4
Foreign Aid ................................................................................................................. 4 12) Agro Info Caravan Visits 17 Local Governments ............................................................................. 4 13) IPARD Public Call Plan for 2021 Announced .................................................................................... 4 14) RSD 37.5 Billion in IPARD Funds Allocated for Fixed Asset Procurement ....................................... 4
Private Sector.............................................................................................................. 5 15) 16) 17) 18) 19) 20) 21) 22) 23) 24)
Pig Numbers Decline ....................................................................................................................... 5 Agricultural Prices Stabilize as Investment Fund Demand Subsides ............................................... 5 Strategy for Developing the Wine Industry for the 2021–2031 Period .......................................... 5 Representatives Met to Discuss Export of Serbian Berries to Turkey ............................................. 5 Serbian Honey Producer Receives HALAL Certification................................................................... 5 Agricultural Producer Prices Increase 11.8% ................................................................................... 6 52,441 Hectares of Agricultural Land Irrigated in 2020 .................................................................. 6 Wheat Exports Down as Owners Await Higher Prices..................................................................... 6 Agricultural Production Increases 4.4% Year-on-Year..................................................................... 6 Serbia Included in Top-10 List of Countries Making Progress in Agriculture .................................. 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)
No Plans to Ban Grain Exports
January 25th, 2021, https://www.novosti.rs/vesti/ekonomija/958100/ministarstvo
The Ministry of Agriculture has announced that it is not planning to introduce a measure that would ban the export of grain, including corn, this year. They also announced that the state is not planning to introduce any new export taxes. The Ministry is continuing to monitor global agricultural markets for any relevant developments. This year, Serbia’s corn harvest amounted to 8 million tons, 9.6% higher year-on-year and 29.4% higher than the 10-year average.
2)
Registration in the State Viticulture Register Obligatory for Most Grape Producers
January 25th, 2021, https://www.novosti.rs/vesti/ekonomija/958150/upis-vinogradarski-registar-obaveza-sve-vlasnike
The Ministry of Agriculture is reminding grape producers that the Law on Wine requires all grape producers who own, lease or cooperate on at least 0.1 hectares of vineyards and put grapes onto the market to register in the state’s Viticultural Register. Keeping the Register up-to-date is of great importance for the country as it is an obligation of the European Union (EU) and is used to determine the level of financing Serbia’s wine-growing sector receives.
3)
Catalogues of Products with the Authentic Serbia Designation Published
January 25th, 2021, http://www.tanjug.rs/full-view_en.aspx?izb=624983
The Ministry of Agriculture has prepared a catalogue of agricultural and food products that carry the Authentic Serbia designation of geographic origin as well as a separate catalogue of wines with protected designations of geographic origin. The catalogues were designed as a part of a twinning project that aims to strengthen the implementation and development of legislation in the field of organic production and agricultural and food product quality policies. A designation of geographic origin is one of the best tools for branding food and beverages. The designations, shown on packaging, lend exclusivity to a product and serve as a reference to a certain region or location as well as to all the specific traits of the product.
4)
Call for Investment Incentives for Field Electrification
January 21st, 2021, https://www.novosti.rs/vesti/ekonomija/956905/uprava-agrarna
The Directorate for Agrarian Payments of the Ministry of Agriculture have announced a public call for applications to receive investment support related to the physical properties of agricultural farms, specifically the electrification of fields. Applications will be accepted between February 1, 2021 and September 1, 2021. Under the measure, the state will finance up to 90% (up to RSD 800,000) of the costs for the procurement of cables and other accompanying equipment, the preparation of terrain and connection to an electric network. To qualify, applicants must be registered in the Register of Agricultural Holdings and in an active status.
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BFC. Agriculture Finance Bulletin.
5)
5,000 Hectares of State-Owned Arable Land Leased in the Last Three Years
January 12th, 2021, https://www.novosti.rs/vesti/ekonomija/954028/uprava
The state has leased more than 5,000 hectares of parched land in the last three years, thereby contributing to an increase of agricultural production, new investments and employment in the country. This has been especially noticeable in the fruit and vine sectors. State-owned arable land is available to be leased to any registered agricultural farm that is in an active status, based on public competitions that are organized by local self-governments. Under the state program, land is initially leased for a five-year period, after which prices are determined by local market conditions.
6)
Sheep Breeders Received No State Livestock Subsidies in 2020
January 11th, 2021, http://www.stips.minpolj.gov.rs/srl/vest/ovcari-jos-cekaju-subvencije
The Ministry of Agriculture has paid out RSD 18.3 billion in livestock production incentives in the past year, including RSD 8.2 billion for the improvement of the genetic composition and RSD 2.9 billion for fattening heads. Most of this was allocated for cattle breeding, and sheep breeders received no such incentives in 2020.
7)
President Vucic Announces Increased Subsidies for Tractor Procurement
January 11th, 2021, https://www.novosti.rs/vesti/ekonomija/953793/velike
Serbian President Aleksandar Vucic has announced that the state will make investments into the renewal of agricultural machinery this year. This includes an increase in the amount of subsidies for the procurement of tractors. In his announcement, the President noted that the state has already co-financed the procurement of 2,600 new tractors. He hopes to increase that number to 20,000 over the coming years.
8)
Push to Make Agricultural E-Market Platform Permanent
January 8th, 2021, https://www.novosti.rs/vesti/ekonomija/952452/sir-stize
In April 2020, an e-market platform was launched to help farmers sell their products amid the COVID-19 pandemic. Now, it is hoped that this platform will grow into a permanent interactive Serbian market. So far, more than 2,000 small producers from all over the country have been registered on the digital market, which offers registered producers with more advanced ways to sell their products and gain the best market price possible as well as close agreements with small distribution chains. Currently, the platform covers most of Serbia and offers jams, cheeses, spreads, meat products, wine, brandy, beer and home-made juices, among other food products.
9)
RSD 150 Million Export Promotion Program Announced
January 6th, 2021, https://agrosmart.net/2021/01/06/ras-obezbedio-150-miliona-za-prehrambenu-i-drvnu-industriju/
The Development Agency of Serbia (RAS) has announced a public call for companies to join in a state program aimed at promoting food and wood exports. To this end, RAS has allocated RSD 150 million for the program, with the hope that food and wood producers will increase their revenues from exports, boost existing production capacities and improve their overall competitiveness. The program includes a grant component aimed at co-financing consulting support and logistics related to exhibiting at international fairs. Applications will be accepted until February 23, 2021.
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BFC. Agriculture Finance Bulletin.
10) Cooperatives Eligible for RSD 15 million in Incentive Funds January 6th, 2021, https://www.danas.rs/ekonomija/krkobabic-zadrugama-do-15-miliona-dinara-podsticajnih-sredstava/
Rural Welfare Minister Milan Krkobabic announced that cooperatives are eligible for incentive funds of up to RSD 7.5 million for newly-established cooperative and up to RSD 15 million for existing cooperatives. The Minister expects that this will help 50–60 cooperatives with the purchase of basic herds, perennial orchards and/or necessary equipment. The Minister also announced the Ministry’s intention to start a new program for the renewal of cooperatives in the near future.
11) RSD 53 Billion Allocated for Agricultural Subsidies December 29th, 2020, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/vlada-usvojila-uredbu-za
The government of Serbia has adopted legislation that will allocate RSD 53 billion in subsidies for the agricultural sector in 2021. In addition to many of the subsidies provided last year, new ones will also be introduced, especially those related to new sectors such as winemaking, viticulture and agritourism. Additionally, some subsidies will focus on incentivizing young people to get or stay involved in agriculture.
Foreign Aid 12) Agro Info Caravan Visits 17 Local Governments January 26th, 2021, http://www.agronews.rs/uspesno-zavrsen-agro-info-karavan/
Agricultural producers and seasonal workers from 17 local governments throughout Serbia had the opportunity to get acquainted with the simplified procedure of engaging seasonal agricultural workers by using the sezonenskiradnici.gov.rs portal and mobile app thanks to visits from the Agro Info Caravan. The Caravan, which was organized by the National Alliance for Local Economic Development (NALED) and supported by the German Development Cooperation, presented the procedures and advantages of the new system as well as distributed applications and other promotional materials. The simplified system helps protect the rights of workers, increase incomes and legalize seasonal work.
13) IPARD Public Call Plan for 2021 Announced January 8th, 2021, https://www.novosti.rs/vesti/ekonomija/952634/objavljen-plan
The Directorate for Agrarian Payments of the Ministry of Agriculture has published the plan of IPARD public calls for 2021. Although there are no planned calls for tractor procurement, farmers will be eligible to apply for incentives aimed at increased mechanization and the construction and equipping of processing capacities. Calls will also be made for investments in rural tourism and other technical assistance. Additionally, approved applicants will be able to withdraw up to 50% of approved funds immediately (as opposed to being reimbursed for the sum after the fact).
14) RSD 37.5 Billion in IPARD Funds Allocated for Fixed Asset Procurement January 8th, 2021, https://agrosmart.net/2021/01/08/za-podsticaje-u-poljoprivredi-375-milijardi-dinara/
The Ministry of Agriculture is allocating RSD 37.5 billion for incentives for the procurement of fixed assets this year. This allocation is part of IPARD funding, and a public call for this measure (Measure 1) is expected in April 2021.
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BFC. Agriculture Finance Bulletin.
Private Sector 15) Pig Numbers Decline January 26th, 2021, http://www.stips.minpolj.gov.rs/srl/vest/manje-svinja-u-srbiji-iako-se-najavljuje-izvoz-u-eu
Low pork prices have served to reduce the number of pigs in the country. Although numbers are expected to rise again with the expectation that pork exports to the European Union (EU) will be allowed later this year, it should be noted that pork exports will take some time to develop as the export of pigs and pork products to the EU requires vaccination and other phytosanitary conditions to be met.
16) Agricultural Prices Stabilize as Investment Fund Demand Subsides January 26th, 2021, https://rs.n1info.com/biznis/sakovic-investicioni-fondovi-podigli-cene-poljoprivrednih-proizvoda/
Prices of agricultural products are slowly stabilizing after experiencing drastic increases of up to 10% following the launch of investment funds early this year. The price fluctuations, especially those of cereals, were uncharacteristic and caused by an increase in demand from the investment funds, which invested in the purchase of those agricultural products due to the COVID-19 pandemic. This increase in demand stems from both Russia and Ukraine introducing export quotas to calm their own domestic prices.
17) Strategy for Developing the Wine Industry for the 2021–2031 Period January 24th, 2021, http://www.politika.rs/scc/clanak/471461/Kako-povecati-proizvodnju-i-potrosnju-domacih-vina
The strategic development of the wine and viticulture sector is one of the basic goals of the state, and, at the initiative of the Association of Winemakers and Viticulture of Serbia, a program for the development of this sector over the 2021–2031 period was designed and adopted. The exhaustive strategy includes measures to improve climatic, soil and other conditions, increase the area used for production, increase the share of domestic wine in the domestic market, increase domestic wine exports and develop wine and rural tourism. To be eligible to receive state support under the strategy, wine companies must be registered in the Viticulture Register.
18) Representatives Met to Discuss Export of Serbian Berries to Turkey January 18th, 2021, http://www.tanjug.rs/full-view_en.aspx?izb=623207
Officials from Serbia’s Ministry of Agriculture met with representatives of TIKA, the Turkish development agency, to discuss the export of Serbian berries to Turkey. At the meeting, the sides also discussed measures to boost industrial strawberry production in Serbia as well as potential collaboration on animal husbandry and fruit farming projects.
19) Serbian Honey Producer Receives HALAL Certification January 14th, 2021, https://agrosmart.net/2021/01/14/srpski-med-spreman-za-arapsko-trziste/
SPOS, a plant for collecting, processing and marketing honey, introduced the HACCP system last year, opening up new markets. They also introduced HALAL quality measures and have just received a HALAL certificate that will allow them to send honey exports to many Arab and Islamic-majority countries.
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BFC. Agriculture Finance Bulletin.
20) Agricultural Producer Prices Increase 11.8% January 13th, 2021, https://agrosmart.net/2021/01/13/proizvodjacke-cene-poljoprivrednih-proizvoda-porasle-za-118-odsto/
Producer prices of agricultural and fishery products in November 2020 increased 11.8% year-on-year. The largest price increases were recorded in cereals (up 24.2%), industrial plants (up 13.6%) and fruits (up 18.9%). Compared to October 2020, producer prices of agricultural and fishery products in increased by 1.9% on average, with the largest price increases recorded in cereals (up 3.4%), industrial plants (up 2.2%) and fruits (up 11.1%). For the January–November 2020 period, producer prices of agricultural and fishery products increased 4.4% year-on-year.
21) 52,441 Hectares of Agricultural Land Irrigated in 2020 January 11th, 2021, https://rs.n1info.com/biznis/rzs-u-2020-navodnjavan-52-441-hektar-poljoprivrednih-povrsina/
Last year, 52,441 hectares of agricultural land were irrigated in Serbia, 11.9% more than in 2019. This resulted in 2.1% more water being used for irrigation than in 2019. Of the total irrigated areas, most of them were irrigated by sprinkling systems (92.5%), followed by drip irrigation systems (7.3%). Most of this water was drawn from watercourses (93.2%), with the remaining coming from groundwater, lakes, reservoirs and the water supply network. Arable land and gardens were the most-irrigated areas (91.7%), followed by orchards (5%) and other agricultural areas (3.3%).
22) Wheat Exports Down as Owners Await Higher Prices January 4th, 2021, https://rs.n1info.com/biznis/sakovic-izvoz-psenice-usporen-jer-vlasnici-cekaju-da-cena-poraste/
The export of wheat from Serbia has slowed due to owners waiting for prices on the international market to rise above prices on the domestic market (RSD 21 per kilogram). Serbia has already exported 320,000 tons of wheat and flour so far this season, but experts hope that this number will rise to 700,000 tons or higher. Many also believe that exports will begin more intensely at the end of February 2021 and reach its peak at the end of March 2021, when wheat demand traditionally increases globally.
23) Agricultural Production Increases 4.4% Year-on-Year January 3rd, 2021, https://agrosmart.net/2021/01/03/srbija-u-2020-ekonomska-aktivnost
According to data published by the Bureau of Statistics, it is estimated that the total economic activity of Serbia in 2020 (as measured by the real movement of gross domestic product (GDP)) recorded a year-onyear decline of 1.1%. At the same time, agricultural production achieved a growth in physical volume of 4.4%.
24) Serbia Included in Top-10 List of Countries Making Progress in Agriculture December 30th, 2020, https://www.novosti.rs/vesti/ekonomija/950016/srbija-top-10
The Dutch Ministry of Agriculture has included Serbia on its list of top 10 countries making progress in agriculture in 2020. According to the official website of the Dutch Ministry, one of the strongest and most competitive agricultural sectors in Serbia is in fruit production, leading them to push for increased collaborations with Serbian fruit producers and educational institutions instructing on fruit growing techniques and processes. The Dutch Ministry also commended Serbia’s initiative to introduce a single phytosanitary certificate system to remove barriers and improve the trade of agricultural products across the Western Balkans. The system proved to particularly important in ensuring food security in the aftermath of the COVID-19 outbreak.
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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.
