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70 S e r b i a Agriculture Bulletin Agricultural Census to Be Conducted in 2023 Platform for Boosting Agricultural Exports to the United States IPARD 3 Program Expected to Be Adopted in November 2021 First Agro-Energy Project in the Balkans to Launch in April 2022
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Agriculture Finance Bulletin Edition #70, July 2021
Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)
Agricultural Census to Be Conducted in 2023 ................................................................................. 2 State-Owned Agricultural Land Can Be Used for Non-Agricultural Purposes ................................. 2 State Support for Tomato Production ............................................................................................. 2 Agriculture Minister Announces Two New IPARD Competitions .................................................... 3
Foreign Aid ................................................................................................................. 2 5) 6) 7)
Platform for Boosting Agricultural Exports to the United States .................................................... 2 IPARD 3 Program Expected to Be Adopted in November 2021 ...................................................... 3 Business in Agriculture Educational Program Launched ................................................................. 3
Private Sector.............................................................................................................. 3 8) 9) 10) 11) 12) 13) 14)
Twice as Many Agricultural Exports as Agricultural Imports in 2020 .............................................. 3 The State of Serbia’s Dairy Sector ................................................................................................... 3 Cooperative Key to Small Farmer Survival ...................................................................................... 4 Record Wheat Harvest .................................................................................................................... 4 First Agro-Energy Project in the Balkans to Launch in April 2022 ................................................... 4 Agricultural and Fishery Product Prices Up 20.4% .......................................................................... 4 181 Agricultural Cooperatives Operating in the Red....................................................................... 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)
Agricultural Census to Be Conducted in 2023
July 16th, 2021, https://www.danas.rs/ekonomija/popis-poljoprivrede-2023-godine/
A new census of Serbia’s agricultural sector is being prepared, with implementation activities planned for the second half of 2023. The census will cover all family farms, the farms of entrepreneurs and legal entities but will not include households with their own agricultural production that is not intended for the market. Data to be collected includes: farm location, land fund, quality and purpose of the land, areas under crops, areas under orchards, areas under vineyards, irrigation and fertilizer usage, number of livestock, number of beehives, organic agricultural production, agricultural facilities, agricultural machinery in use, labor and other household activities. The budget for the census is RSD 950 million.
2)
State-Owned Agricultural Land Can Be Used for Non-Agricultural Purposes
July 16th, 2021, https://rs.n1info.com/biznis/nova-ekonomija-drzava-daje-poljoprivredno-zemljiste-i-za-druge-namene/
According to a new government decree, state-owned agricultural land can be used for non-agricultural purposes. In particular, certain uncultivated state-owned agricultural land can be used for energy production from renewable sources (e.g. wind, solar) as well as for geological exploration (e.g. the excavation and use of raw mineral materials such as gravel, sand and oil). State-owned agricultural land can be given for use to natural or legal persons for a period of up to 30 years.
3)
State Support for Tomato Production
July 16th, 2021, https://rs.n1info.com/biznis/ministar-najavio-paket-podrske-za-proizvodjace-paradajza/
Agriculture Minister Branislav Nedimovic has announced a package of support for all tomato producers to improve production. At the same time, the Minister also noted that the state cannot and will not set prices for tomatoes. The package of support comes after complaints from many tomato producers that imported tomatoes are taking over domestic markets. In response, the Minister pointed out that less tomatoes have been imported this year than last year and that 99% of tomatoes in large domestic retail chains are of Serbian origin.
Foreign Aid 4)
Platform for Boosting Agricultural Exports to the United States
July 23rd, 2021, https://rs.n1info.com/biznis/nove-mogucnosti-za-izvoz-srpskog-voca-i-povrca-u-sad/
A unique electronic platform has been made available to domestic producers, processors and distributors of fresh, frozen and processed fruits and vegetables and will provide them with all necessary information about exporting to the United States. The platform was created in cooperation with the European Bank for Reconstruction and Development (EBRD) and the Development Agency of Serbia within the Support to the Diversification of Exports of the Agricultural and Food Sector of the Western Balkans and Eastern Europe project. The platform will put interested parties in consultation with an expert and provide them with specific information about market potential and preparatory steps prior to export. Access to the platform and its content is free of charge.
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BFC. Agriculture Finance Bulletin.
5)
IPARD 3 Program Expected to Be Adopted in November 2021
July 16th, 2021, http://www.rtv.rs/sr_ci/ekonomija/usvajanje-ipard-3-programa
Serbia is preparing the IPARD 3 program (2021–2027) of investment incentives for rural development. The program will then need to be adopted by the European Commission (EC), which is expected in November 2021.
6)
Business in Agriculture Educational Program Launched
July 8th, 2021, http://www.agronews.rs/pokrenut-novi-edukativni-program-biznis-u-poljoprivredi/
Mokrogorska School of Management has launched the new Business in Agriculture educational program with support from the Competitive Economy Project of the United States Agency for International Development (USAID). The program is designed to develop business knowledge and skills among domestic and regional farmers in a modern, innovative and purposeful way. This, in turn, is expected to help transform Serbia’s agricultural and food industry into more profitable business sectors. In particular, the program will each beneficiaries in finance, innovation, entrepreneurship, marketing, management, trade and other fields related to being better prepared to meet market demands.
7)
Agriculture Minister Announces Two New IPARD Competitions
July 1st, 2021, http://www.rtv.rs/sr_ci/ekonomija/konkurs-za
Agriculture Minister Branislav Nedimovic has announced two more competitions for agricultural subsidies, one for cattle breeders and another for farmers. Both competitions, which are for IPARD funding, are for the construction of facilities and orchards as well as the mechanization of agricultural processes. Tractors are not eligible under these competitions. Funding is available to cover between 60% and 80% of the total investment costs in amounts of between EUR 5,000 and EUR 1,000,000.
Private Sector 8)
Twice as Many Agricultural Exports as Agricultural Imports in 2020
July 23rd, 2021, http://www.stips.minpolj.gov.rs/srl/vest/u-poljoprivredi-prosle-godine-zbelezen-duplo-veci-izvoz-od-uvoza
In 2020, Serbia exported nearly twice as many agricultural products as were imported. In fact, agricultural exports in 2020 were valued at EUR 1.2 billion, whereas agricultural imports in 2020 were valued at EUR 631 million.
9)
The State of Serbia’s Dairy Sector
July 21st, 2021, https://www.021.rs/story/Info/Biznis-i-ekonomija/279753/Hoce-li-Srbija-sacuvati-proizvodnju-mleka.html
Serbia’s dairy sector is vital for the livelihoods of 150,000 families. Moreover, the sector is one of a handful in Europe that produces surpluses for export. In fact, Serbia exported 84,500 tons of milk and milk-based beverages worth EUR 99 million and 15,800 tons of cheese worth EUR 47.8 million in 2020. Despite these promising signs, Serbia’s dairy sector is facing serious issues such as the popularity of imported dairy products leading to reduced sales domestically and increases in production costs. This has left many producers (especially smaller ones) in a hard place. While many are calling for government assistance to support the sector, the question remains as to how that support should be manifested. Moreover, it is also up to producers and processors themselves to take appropriate actions for their own betterment. This includes rethinking production and products as well as how they work together for mutual benefit.
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BFC. Agriculture Finance Bulletin.
10) Cooperative Key to Small Farmer Survival July 19th, 2021, https://rs.n1info.com/biznis/prostran-mali-i-srednji-farmeri-najugrozeniji-zadruge-vidimo-kao-spas/
Agroeconomic analyst Milan Prostran is calling for the continued development of a modern system of agricultural cooperatives. He believes this is especially important for the survival of small farmers. Such a system of cooperatives, he argues, will help promote free trade, ensure equitable treatment of smaller farms and, in the end, ensure the survival (and revival) of Serbian villages.
11) Record Wheat Harvest July 19th, 2021, https://rs.n1info.com/biznis/zita-srbije-zavrsena-zetva-psenice-rekordni-prinos-od-oko-34-miliona-tona/
The most recent wheat harvest has concluded, resulting in a record yield of 3.4 million tons. This represents an average yield per hectare of 5.7 tons, also a record high for the country. The president of the Independent Association of Farmers of Serbia, Jovica Jaksic, acknowledged the high yield but also noted the high quality of this year’s harvest.
12) First Agro-Energy Project in the Balkans to Launch in April 2022 July 16th, 2021, http://www.agronews.rs/agrosolar-kula-prvi-agroenergetski-projekat-u-nasoj-zemlji-i-na-balkanu/
Fintel Energija and MK Group are partnering to launch a EUR 340 million agro-energy project in Serbia. This will be the first such project in Serbia and the Balkans as well as the largest such project in Europe. The project will make use of the innovative application of solar panels that will, simultaneously, harvest sunlight to produce agricultural products and energy. The project, which is scheduled to launch in April 2022, will initially include 700 hectares of land, divided into seven zones for the production of various organic crops. Approximately one third of this area will consist of solar panel, in between which crops will be grown.
13) Agricultural and Fishery Product Prices Up 20.4% July 13th, 2021, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/poljoprivredni
The prices of agricultural and fishery products in May 2021 were 20.4% higher year-on-year and 3.4% as compared to April 2021. Much of this increase is due to higher prices for industrial plants (up 84.8% yearon-year and 9.1% as compared to April 2021) and grains (up 47.0% year-on-year and 8.2% as compared to April 2021).
14) 181 Agricultural Cooperatives Operating in the Red July 9th, 2021, https://www.novosti.rs/vesti/ekonomija/1014863/zadrugari
State incentives and other initiatives promoting cooperatives have resulted in a one-third increase in the number of active cooperatives in the country, with at least 75% of them engaged in agricultural sector activities. Despite this support, not all cooperatives succeed. In fact, 181 agricultural cooperatives are currently in debt RSD 617 million. Financial aid is available to agricultural cooperatives for the purchase of equipment, the raising of perennial plantations and the purchase of basic herds. Newly-formed agricultural cooperatives are eligible for up to RSD 7.5 million annually, while existing agricultural cooperatives are eligible for up to RSD 15 million annually.
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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.