#67 Serbia Agriculture Bulletin, BFC

04/2021

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67 S e r b i a Agriculture Bulletin Agriculture Minister Warns Against Subsidy Abuse

RSD 500,000,000 in State Support for Cooperatives

Organic Production Development Plan to Be Proposed Great Britain, Serbia Sign Trade and Cooperation Agreement

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Agriculture Finance Bulletin Edition #67, April 2021

Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5)

Agriculture Minister Warns Against Subsidy Abuse ........................................................................ 2 Minister Supports National Guarantee Fund for Agricultural Production ...................................... 2 Nearly RSD 42 Billion Allocated for Agricultural Subsidies .............................................................. 2 Farmers Author Open Letter Asking for Promised Financial Support ............................................. 2 RSD 500,000,000 Million in State Support for Cooperatives .......................................................... 2

Foreign Aid ................................................................................................................. 3 6) 7)

Organic Production Development Plan to Be Proposed ................................................................. 3 First Call for Financing Applications Under World Bank Program ................................................... 3

Private Sector.............................................................................................................. 3 8) 9) 10) 11) 12) 13)

Great Britain, Serbia Sign Trade and Cooperation Agreement ....................................................... 3 Meat Producers Meet with Commodity Reserves Representatives ............................................... 3 Petar Matijevic Becomes Largest Agricultural Landowner in Serbia............................................... 4 Snow and Frost Damage Early Fruits ............................................................................................... 4 Greek Food Company Expresses Interest in Serbian Fruit Producer............................................... 4 Warmer Soil Conditions Needed for Corn, Soybean and Sunflower to Be Sown ............................ 4

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)

Agriculture Minister Warns Against Subsidy Abuse

April 29th, 2021, http://www.agronews.rs/nedimovic-ova-godina-bice-godina-kontrole-datih-subvencija/

Agricultural Minister Branislav Nedimovic has reminded agricultural producers not to conclude any illegal agreements with so-called “match-makers” as this would constitute subsidy abuse, which is a criminal offense. Any suspicious activities in this regard should be reported to the Ministry of Agriculture or by email to info@minpolj.gov.rs.

2)

Minister Supports National Guarantee Fund for Agricultural Production

April 22nd, 2021, https://beta.rs/ekonomija/ekonomija-srbija/145151-krkobabic-bez-podrske-drzave-nema-sigurnosti-za-seljake

Rural Welfare Minister Milan Krkobabic has stated the importance of supporting farmers in ensuring prices and access to basic, strategic agricultural products. In this regard, he stated his support for a national guarantee fund that would provide producers with a guaranteed price for strategically-important agricultural products such as beef, corn, oilseeds, pork, raspberries and wheat.

3)

Nearly RSD 42 Billion Allocated for Agricultural Subsidies

April 17th, 2021, https://www.danas.rs/ekonomija/nedimovic-budzet-za-subvencije-u-poljoprivredi-gotovo-42-milijarde-dinara/

Agriculture Minister Branislav Nedimovic has announced that the state budget for agricultural subsidies is nearly RSD 42 billion. This includes subsidies aimed at promoting livestock production, a sector viewed as important for continue agricultural and rural development. This year, there will also be new subsidies for wineries and distilleries as the state has the goal of adding between 800 and 1,000 new hectares of vineyards per year.

4)

Farmers Author Open Letter Asking for Promised Financial Support

April 15th, 2021, http://www.agronews.rs/poljoprivrednici-od-ministra-traze-zaostale-podsticaje/

The Association of Young Farmers of Serbia, the Association of Sheep Breeders of Serbia and the Association of Livestock Breeders of Srem and Macva have written an open letter to Agriculture Minister Branislav Nedimovic to outline the most important problems affecting Serbian farmers today. In particular, the letter highlights that: (1) many farmers are still waiting for promised COVID-19-related financial assistance; reduced subsidy amount are unacceptable, especially amid a pandemic; and farmers are demanding the payment of all promised financial support from 2020 and previous years. The letter also highlights problems with the state’s young famer incentive program, including unannounced calls, confusion over maximum amounts allowed, funds being only partially received and rejections for unknown reasons. The letter concludes with a call for action from the Ministry of Agriculture to deliver promised financial support as soon as possible.

5)

RSD 500,000,000 Million in State Support for Cooperatives

April 2nd, 2021, https://www.danas.rs/ekonomija/krkobabic-u-topoli-pozvao-na-dalje-udruzivanje-poljoprivrednika-u-zadruge/

Rural Welfare Minister Milan Krkobabic recently spoke of the importance of specialized fruit, vineyard, vegetable, livestock and rural tourist cooperatives for continued rural development. To this end, he reminded that RSD 500,000,000 million has been allocated to the state program to support such cooperatives, with a call for a public competition for the funds expected in the near future. According to Page 2

BFC. Agriculture Finance Bulletin.

the conditions of the program, newly-formed cooperatives (i.e. those formed since 2017) are eligible for up to RSD 7.5 million in non-refundable funds, with older cooperatives eligible for up to RSD 15 million.

Foreign Aid 6)

Organic Production Development Plan to Be Proposed

April 21st, 2021, http://www.agronews.rs/planom-za-razvoj-organske-proizvodnje-do-vecih-povrsina/

Serbia Organica (with support from the Ministry of Agriculture, Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) and the Project for Private Sector Development in Serbia), is planning to propose the development of the National Plan for the Develompent of Organic Production in Serbia 2021–2026.

The Plan would provide guidelines for the future development of organic production in Serbia by defining goals and measures whose implementation should create conditions for the long-term development of the organic production sector. This is expected to result in an increase in the area used for organic production in the country.

7)

First Call for Financing Applications Under World Bank Program

April 14th, 2021, http://www.agronews.rs/kako-do-kredita-svetske-banke-za-konkurentnu-poljoprivredu/

Applications under the first public call of the World Bank’s Competitive Agriculture Program can now be submitted. This first call is for investments between EUR 20,000 and EUR 50,000 into the physical property of farms. Natural persons, holders of agricultural farms, entrepreneurs, companies and agricultural cooperatives engaged in agricultural activities related to the production of milk, meat, beekeeping, aquaculture, fruits, vegetables, flowers, grapes, other crops and artistic crafts are eligible to apply.

Successful applicants will be responsible for financing 10% of the investment themselves, with 40% provided as a favorable bank loan and 50% provided as a non-refundable grant.

Eligible and interested parties are invited to submit their applications to the Directorate for Agrarian Payments. A second public call under the Program is expected in the autumn of this year.

Private Sector 8)

Great Britain, Serbia Sign Trade and Cooperation Agreement

April 29th, 2021, http://www.agronews.rs/sto-pre-poceti-primenu-sporazuma-sa-velikom-britanijom/

A new trade and cooperation agreement between Great Britain and Serbia has Serbian businesspeople excited to take advantage of new opportunities within an open British market. This new agreement replaces the Stabilization and Association Agreement, which ceased to be valid once Britain left the European Union (EU). Without the agreement, the total value of foreign trade between Great Britain and Serbia was EUR 79 million, a 20% decrease.

9)

Meat Producers Meet with Commodity Reserves Representatives

April 24th, 2021, https://www.danas.rs/ekonomija/dok-farmeri-pregovaraju-sa-drzavom-u-prodavnicama-meso-vec-poskupelo/

Meat producers have been meeting with representatives of the Commodity Reserves to discuss their recent difficulties and the rising cost of meat products in the country. In particular meat producers are facing pressure from both suppliers (with increases in the prices of cereals, corn and soybeans) and consumers (with reduced consumption). For their part, the Commodity Reserves is expected to provide some support, although specific parameters for that support remains undefined at this point.

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It is important to note that there is not expected any shortage of meat in domestic markets as traders can find meat products from other sources. Rather, this meeting was about measures that can be taken to preserve domestic production.

10) Petar Matijevic Becomes Largest Agricultural Landowner in Serbia April 8th, 2021, https://www.danas.rs/ekonomija/agrosmart-matijevic-najveci

Novi Sad businessman Petar Matijevic, owner of the meat processor of the same name as well as a group of more than 70 companies, has become the largest agricultural landowner in Serbia. His group of companies now owns 33,000 hectares, of which he directly owns 28,000 hectares. In second place is Miroslav Aleksa, whose company Almeks cultivates approximately 20,000 hectares (half of which is leased). Rounding out the top 5 are agricultural company Al Dahra, Miodrag Kostic (and his MK group) and Miroslav Miskovic (owner of the company Delta).

11) Snow and Frost Damage Early Fruits April 8th, 2021, https://beta.rs/ekonomija/ekonomija-srbija/144481

Sudden snow and frost earlier this month have damaged early apples, cherries, pears and plums, although the exact extent of that damage is still unknown. Snow in Western Serbia also caused damage to blackberries and raspberries being grown there. Fruit producers are requested advise from the Ministry of Agriculture on how best to proceed.

12) Greek Food Company Expresses Interest in Serbian Fruit Producer April 6th, 2021, http://www.tanjug.rs/full-view_en.aspx?izb=643675

Greek food company Agrifreda has expressed interest in investing in Serbian fruit producer Vocar. If such an investment materialises, it would secure sales of all Serbian fruits (most notably sour cherries) produced in Southern Serbia.

Agrifreda exports processed fruits and vegetables to France, Germany and Italy as well as Middle Eastern countries.

13) Warmer Soil Conditions Needed for Corn, Soybean and Sunflower to Be Sown April 6th, 2021, https://www.danas.rs/ekonomija/udruzenje-zita-srbije

The Serbian Grain Association has announced that land for the sowing of corn, soybeans and sunflowers has been prepared but also that planting itself has been slightly delayed until soil conditions warm to above eight degrees Celsius. In total, approximately 1,000,000 hectares of land will be sown with corn; approximately 250,000 hectares will be sown with soybeans; and approximately 200,000 hectares will be sown with sunflowers. The Association also noted that the sowing of sugar beets was completed in March.

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