Edition #86, November 2022
Contents
State Initiatives ........................................................................................................... 2 1) Ministry of Agriculture Has Not Sumbitted Data on Agricultural Land for 10 Years 2 2) Government Plans to Continue to Set Maximum Prices for Select Products ................................. 2 3) State to Pay Farmers All Owed Debts by the End of 2022 2 4) National Rural Development Program 2022–2024 Draft in Development ..................................... 2 5) State to Subsidize Sugar Beet Production 3 6) 2022 Budget of the Ministry of Agriculture Increased RSD 16.5 Billion .......................................... 3 7) Temporary Ban on Milk Exports Extended 3 Foreign Aid ................................................................................................................. 3 8) Uncertainty with IPARD 3 Funding Availablity ................................................................................ 3 9) Animal Welfare and Health Project Successfully Completed 3 Private Sector.............................................................................................................. 4 10) Higher Costs for Mineral Fertilizers Could Lead to Reduced Yields ................................................ 4 11) Young Farmers Call for Increased Transparency in Public Tenders 4 12) Serbian Honey Value Chain Continues to Develop.......................................................................... 4 13) Agricultural Foreign Exchange Valued at EUR 5.7 Billion 4 14) Proposal for Government Vouchers to Purchase Domestic Products ............................................ 5 15) Delayed Cards Mean Higher Diesel Prices for Some Farmers 5
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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November 29th, 2022, http://www.agronews.rs/ministarstvo
The Council of the Government of Serbia, as part of anti-corruption monitoring, has announced in a report that it is unacceptable that the Ministry of Agriculture has been unable to provide data on the total fund of agricultural land available in Serbia for a period of ten years. The out-date and unavailable records on the ownership structure of agricultural land prevent the legal disposal and management of agricultural land. The report further states that this could be an indication that the Ministry is concealing something from the council, possibly corruption or other abuses of power. In response, the Ministry informed the Council that it would work together with the Agency for Privatization to rectify the issue.
November 23rd, 2022, https://www.rtv.rs/sr_ci/ekonomija/aktuelno/momirovic
The government of Serbia plans to continue limiting the prices of certain food-related items via decrees in order to ensure adequate supplies of food stuff in the market at affordable prices. The price limits include food items themselves as well as products necessary for food production such as fuel. The government also plans on ensuring the strength and viability of domestic markets by conducting routine inspections and has committed to reorganizing the state budget to settle outstanding obligations for farmers.
November 22nd, 2022, https://www.ekapija.com/news/3923243
Discussions between government authorities and farmer representatives have concluded with an understanding that the state will work to pay farmers all owed debts by the end of 2022. The majority of the outstanding debt is for state incentives for milk production, cattle breeding and crop production mechanization. For their part, farmer representatives agreed to initiate discussions for future issues instead of immediately calling for protests.
November 17th, 2022, https://www.agrofin.rs/vesti/ministarstvo
The Ministry of Agriculture has announced that the consultation process has begun regarding the draft of the National Rural Development Program 2022–2024 The draft text is also available on the state’s econsultation website. The National Rural Development Program 2022–2024 is a medium-term operational planning document covering the implementation of rural development policies in Serbia. In particular, it defines the general and specific goals of rural development policies, types of measures to be undertaken and basic rules for implementation. It also outlines indicators for measuring the achievement of goals and financial frameworks.
November 10th, 2022, https://www.agronews.rs/ratari-subvencije-za-secernu-repu-uvedene-za-velike-biznismene/
The government has adopted a measure to subsidize sugar beet producers with RSD 35,000 per hectare. The measure comes as a surprise to some as many household and smaller farmers had given up on producing sugar beets in order to not have losses. The subsidies are available for a maximum of 500 hectares per producers, with the condition that each hectare produce at least 50 tons.
November 7th, 2022, https://www.danas.rs/vesti/ekonomija/ministarstvu
The budget for the Ministry of Agriculture for 2022 will be increased by RSD 16.5 billion after a redistribution of the state budget. This means that the Ministry’s total budget for 2022 will amount to RSD 78.5 billion or 5.3% of the state’s total tax revenue. RSD 7.7 billion of the additional amount is for direct payments to agricultural producers for promised incentives, and RSD 2.87 billion is for additional rural development measures. The additional amount will also be used to provide subsidies to sugar beet producers.
November 2nd, 2022, https://www.instore.rs/sr/article/52382/produzena-privremena-zabrana-izvoza-mleka
The government extended the temporary ban on the export of milk and milk products through the end of November, with exceptions for exports to Albania and North Macedonia. The export ban applies to several types of milk as well as butter packaged in amounts over one kilogram. The ban was first introduced as domestic supplies were insufficient as producers sought greater profits in international markets.
November 28th, 2022, https://poljoprivreda.info/tekst/packe-evropskog-parlamenta-da-li-bi-trebalo-da-strahujemo-za-ipard
There is some uncertainty over the planned IPARD 3 program, placing farmers in a difficult position regarding planning large-scale investments. The uncertainty stems from a resolution passed by the European Parliament regarding accession negotiations between Serbia and the European Union (EU). Specifically, the resolution states that EU funds destined for Serbia should be conditioned such that Serbia must make further progress in harmonizing its foreign policy with that of the EU in order to access funds. It's still uncertain if the European Commission will ultimately tie the release of IPARD 3 funds to conditions or how the government of Serbia will respond if it does.
November 25th, 2022, https://n2.rs/drustvo/uspesno-zavrsen-projekat-jacanje-sistema-zdravlja-i-dobrobiti-zivotinja/
A final conference for the Strengthening the Health and Welfare of Animals project was held in Belgrade, highlighting the achievements of the project over the last three and one half years. The project aimed to improve livestock production in a way that was both sustainable and humane for animals. In particular, the project supported the Veterinary Administration in improving national standards, public health and food safety. The project also worked to further harmonize Serbian legislation in the field of animal health with the legal provisions of the European Union (EU). The conference was attended by representatives of
the Ministry of Agriculture, the Veterinary Administration, the EU Delegation to Serbia as well as representatives of veterinary services, veterinary inspectors and veterinary institutes.
November 24th, 2022, http://www.agronews.rs/kako-ce-na-useve-uticati-smanjena-upotreba-dubriva-u-jesenjoj-setvi/
The president of the Independent Association of Serbian Farmers has announced that the yields from crops sown this autumn could be down this year if measures are not taken. The reason for this is the higher costs of mineral fertilizers causing a 40% reduction in their usage as well as some producers using their own, undeclared seeds instead of proven seed varieties. There is some optimism, however, as there has been unofficial news that the mineral fertilizer urea could become cheaper in spring 2023. It is expected that the yields for most autumn crops, especially wheat, will largely depend on the price of mineral fertilizer in the spring.
November 18th, 2022, https://www.agronews.rs/javnim-zagovaranjem-do-transparentnog-ulaganja-u-poljoprivredi/
Young Serbian farmers are calling for increased transparency in the publication of local tenders, particularly increased awareness campaigns to inform farmers about possibly programs and other assistance measures they might be eligible for. To this end, the Association of Young Farmers of Serbia implemented the Public Advocacy for Transparent Agricultural Investment project, which is part of the Active Citizens – Better Society program. The project hopes to increase transparency in the publication of local tenders and facilitate greater use of available resources.
November 13th, 2022, https://urbancityradio.org/srbija-ima-najvise-kosnica-po-glavi-stanovnika-na-svetu/
Thanks to an increase in the number of active beehives in the country, Serbia has been able to increase its average annual production of honey to more than 7,000 tons. There has been a strong emphasis on the development of beekeeping and honey production in recent years as honey has become an increasingly important export product. To further this, the state plans to continue to offer incentives for beekeepers in the future. There is also hope that the value chain will continue to strengthen and develop as they become better organized in terms of purchasing and distribution.
November 3rd, 2022, https://novaekonomija.rs/vesti-iz-zemlje/spoljnotrgovinska-poljoprivredna-razmena-57-milijardi-evra
Serbia’s foreign trade exchange in agriculture and the food industry from January through September of this year was worth valued at more than EUR 5.7 billion, which is an increase of 20% year-on-year. This includes exports of EUR 3.6 billion (up 15.4% year-on-year) and imports of EUR 2.1 billion (up 29.0% yearon-year). The share of agriculture and the food industry was 17.8% in total exports and 7.7% in total imports.
November 2nd, 2022, https://www.ekapija.com/news/3899454/udruzenje
The Moja Srbija Association has proposed that the government adopt an initiative to launch a campaign to distribute vouchers for the purchase of domestic products from small Serbian producers, noting that such a subsidy should be based on the positive experiences of a similar initiative to promote tourism. The proposal includes initiatives that would support agricultural farms, especially those located in rural and undeveloped areas. The association also stated that domestic production, based on internal resources, is extremely important in times of major economic crises.
November 1st, 2022, https://www.rts.rs/page/stories/sr/story/57/srbija-danas/5004352/zasto
A government decision to subsidize diesel purchases for farmers, effectively establishing a price of RSD 179 per liter of diesel for farmers, was adopted in March of this year; however, many farmers are still unable to take advantage of these subsidies due to cards required cards not having been sent to them. This has resulted in many paying market prices for diesel fuel, which is currently RSD 222 per liter. Many farmers are becoming increasingly frustrated at the process as they have yet to hear any response to their applications. The state has responded that they have already issued tens of thousands of cards and that the number of requests for cards is extremely high.
Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com
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