AGRICULTURE BULLETIN
Agricultural Subsidy Funds Paid Out to Farmers
Agro Belgrade 2023 Held in Belgrade
Total Amount of Oustanding State Debt to Farmer Not Yet Calculated
Agricultural Producer Prices Up 33.6%
State Initiatives
1) Agricultural Subsidy Funds Paid Out to Farmers
January 30th, 2023, https://www.agrosaveti.rs/aktuelnosti/vesti/tanaskovic
Agriculture Minister Jelena Tanaskovic has stated that every agricultural producer who received a positive subsidy decision last year also received the associated approved funds. The Minister went on to note that an additional 15% of those that applied for subsidy funds but did not receive a positive decision will als o receive subsidy funds in February.
2) Credit Postponement for Raspberry and Other Fruit Buyers
January 24th, 2023, https://qninfo.rs/nova-mera-nbs-reprogram-kredita-i-otkupljivacima-malina/
The National Bank of Serbia has adopted a decision that will enable the postponement of agricultural loans to borrowers who buy and store raspberries and other fruits. In particular, loan installment payments will be postponed for a period of 6–12 months. The repayment term of the loan will also be extended, and, because debtors will still be obliged to pay accrued interest, the installment amount will not increase once regular payments resume. Requests for relief under this initiative must be submitted by the end of April.
3) Registration for the eAgrar System Launched
January 16th, 2023, https://www.arrsm.rs/od-16-januara-treba-otici-do-poste-i-preuzeti-svoj-broj-za-e-agrar/
The eAgrar information system launched on January 16, 2023, meaning agricultural producers can now go to a post office, treasury branch or agricultural expert service location to receive their eID number. The eID number is a personal identification number that represents the first step to registering in the eAgrar system, with later steps to be announced in the coming weeks and months. The eAgrar system will begin operational work this spring and aims to modernize and speed up the process of gathering and updating data in the Register of Agricultural Holdings as well as the approval and payout of state incentives.
4) Increased Incentives for Organic Plant Production in 2022
January 4th, 2023, http://www.agronews.rs/uvecani-podsticaji-za-organsku-proizvodnju-za-2022-godinu/
The Ministry of Agriculture has adopted amendments to the Rulebook for the Use of Incentives for Organic Plant Production. In particular, the Rulebook has been amended to increase the incentive amount by an additional RSD 3,500 per hectare for organic plant production in 2022. The increase applies to all users who exercised the right to these incentives in 2022. In total, the incentive amount for organic plant production is now RSD 31,500 per hectare.
Foreign Aid
5) The Ana and Vlade Divac Foundation Have Established 13 Revolving Funds
January 30th, 2023, http://www.glaszapadnesrbije.rs/vest775786.html
The Ana and Vlade Divac Foundation, with the support of the United State Agency for International Development (USAID), had launched a project of local revolving funds. So far, 13 such funds have been established in rural areas of the country, offering favorable loans to more than 100 small farmers (including 40 women farmers) for the purpose of expanding and/or improving the quality of their
production. A total of RSD 40 million is in interest-free loans of up to RSD 500,000 has been made available through these funds.
6) Agro Belgrade 2023 Held in Belgrade
January 26th, 2023, https://www.nedeljnik.rs/otvoren-cetvrti
The fourth fruit, vegetable and viticulture fair, Agro Belgrade 2023, was recently held at the Belgrade Fair. The fair, which was organized with the support of the United States Agency for International Development (USAID)’s Big Small Economy project, served as a knowledge acquisition and networking event for representatives of the fruit, vegetable and wine industry. More than 500 exhibitors from Serbia and the region participated in the fair, including producers of fresh, frozen and processed food products as well as producers of agricultural machinery and equipment and representatives of nurseries, seed suppliers and chemical companies.
7) FAO, EBRD Bolster Farmers’ Abilities to Comply with Food Safety Measures
January 22nd, 2023, https://www.foodsafetynews.com/2023/01/serbian-farmers
The Food and Agriculture Organization of the United Nations (FAO) and the European Bank for Reconstruction and Development (EBRD) supported the government in the development of guidelines and promotional materials aimed at helping Serbian producers comply with updated food safety bylaws. A training program that includes video tutorials was also created. The aim of the initiative is to bring traditional practices up-to-date with modern food safety knowledge and bolster the competitiveness of the country’s small-scale producers. This represents an important step for the country’s potential entry into the European Union (EU).
Private Sector
8) Total Amount of Oustanding State Debt to Farmer Not Yet Calculated
January 30th, 2023, https://www.agronews.rs/agroprofit-ukupan-iznos-duga-prema-poljoprivrednicima-nije-jos-utvrden/
In the last 30 days, the Agroprofit Association has registered hundreds of questions related to subsidy payments to agricultural producers, noting that many farmers have not yet been fully paid the incentives due to them for the purchase of equipment and breeding quality heads of cattle. The Association added that several years of such debts are also starting to appear, although this amount has not yet been calculated.
9) Milk Producers Threaten Protests, Closures Over Unpaid Debts
January 24th, 2023, https://www.danas.rs/vesti/ekonomija/ili-vece
Serbian milk producers are planning to send their proposal for ensuring the survival of the sector and their farms to Agriculture Minister Jelena Tanaskovic, stating that they are willing to organize protests and speed up the closure of dairy farms if the Minister fails to act on the proposal. The proposal is expected to include that the state pay its owed debts for premiums and subsidies as soon as possible, reminding all that the Minister had promised these debts would be paid by the end of last year. The Minister noted that the previous rulebook for applying for this type of recourse has been abolished, with a new measure being prepared to be announced shortly.
10) Agricultural Products Cheaper in Supermarkets than in Open Markets
January 16th, 2023, https://bizportal.rs/trgovina-i-turizam/na-pijacama
An analysis of prices in 17 large Serbian cities has shown that open markets most often have higher prices than those found in supermarkets. Supermarket chains are increasingly succeeding in competing with open markets in Serbia due to access to their ability to find lower prices for agricultural products through their access to unified supply chains and increased ability to import goods. For example, Belgrade consumers paid an average of RSD 120 per kilogram for potatoes in open markets last month but only RSD 100 per kilogram in supermarkets. Similar trends were observed for most agricultural products, with the notable exception of chicken eggs, which were, on average, slightly cheaper in open markets.
11) Only 10–11% of Orchards Are Irrigated
January 12th, 2023, https://www.politika.rs/sr/clanak/532283/Samo-desetak
Although the total amount of irrigated land increased by 4.6% last year, the total area of irrigated land in the country is still relatively small and should be made a national priority if the agricultural sector is to continue to develop. Alarmingly, only an estimated 10–11% of the total area under orchards are irrigated, which puts Serbian orchards at great risk with drought years becoming more and more common. Experts believe that the irrigation issue in Serbia can be easily resolved with the construction of reservoirs, as the country has favorable conditions for this method.
12) Agricultural Producer Prices Up 33.6%
January 12th, 2023, https://agrosmart.net/2023/01/12/cene-poljoprivrednih-proizvoda-za-godinu-dana-porasle-336-odsto/ Producer prices of agricultural and fishery products in November 2022 increased by 33.6% year-on-year, with the largest price growths observed for livestock products (+80.0%), livestock (+33.7%) and cereals (+33.5%), livestock (+33.7%). As compared to prices in October 2022, prices increased by an average of 0.5%, with the largest price growths observed for livestock products (+3.0%). Producer prices for the entire period of January–November 2022 increased by an average of 25.2% year-on-year.
13) Serbian Raspberry Production 3rd in the World
January 11th, 2023, https://www.politika.rs/sr/clanak/532121/maline-sccbija-rusija-meksiko)
In 2022, Serbia was ranked third in the world in raspberry production, with only Mexico and Russia ahead. Poland, usually a large raspberry producer, dealt with failed production, and Chile, another strong raspberry producing country, was ranked fourth.
14) How to Preserve and Restore Serbian Soil
January 5th, 2023, https://www.rts.rs/page/stories/sr/story/13/ekonomija/5077621/zemljiste-plodnost-obrada-tehnike.html
Land is one of the most valuable resources that Serbia has, but modern agriculture and heavy machinery compact and degrade soil. To return soil conditions to those more favorable for production, there must be a balance found that puts nutrients back into the soil. Expertise shows that the level of humus in soil is maintained when plant residues and green fertilization are used. This indicates that both crop and livestock production are important for maintaining the quality of Serbian soil. Additional techniques that conserve soil moisture and fertility include the shallow planting of crop residues, crop rotation and the sowing of certain legumes.
Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com
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