Agribusiness Serbia 2023

Agribusiness Potential YetToBeExploited

Record-breaking budget allocations for the agricultural sector will mark this year. Alongside its regular incentives, the Ministry is systemically supporting the development of this sector through further digitalisation, automating certain processes and encouraging young farmers to enter this sector, which needs revitalising with young people and to turn to more complex production stages

Agriculture of Serbia Project, which the Ministry is implementing together with the World Bank.

The introduction of the eAgrar system is certainly one of the priorities for this year, and it will serve to further accelerate the processing of requests, thereby creating conditions to ensure that all cases received throughout the year can be paid in the same year.

Providing sufficient amounts of food is among our most basic tasks, as is the case in all other countries in the situation that the world currently finds itself in. The State of Serbia has shown, even under extremely difficult circumstances, that it reacts quickly and effectively, and that it takes the right measures in moments of crisis.

Our citizens didn’t feel basic foodstuff scarcity or any other shortages – we didn’t have empty shelves, unlike some countries in the neighbourhood. And in future we will continue to react in accordance with the situation and continue providing additional and timely measures.

Agriculture has always been among the Serbian economy’s key sectors, and it has become increasingly clear since the outbreak of the conflict in Ukraine that food is a factor of security and the ability of the country to guarantee regular supplies and price stability under conditions of great turmoil on the global market. We discussed these topics with Agriculture, Forestry and Water Management Minister Jelena Tanasković.

What kind of place does agriculture occupy in this year’s budget?

I am proud of the fact that the Ministry of Agriculture has a record budget for this year,

amounting to 80 billion dinars. The lion’s share of those resources are intended for improving production and increasing the stability of income for producers.

Total subsidies in agriculture, with all sources of financing, amount to 68.7 billion dinars, which represents 87% of the budget of the Ministry of Agriculture, Forestry and Water Management for 2023 and 35% of total subsidies of the Republic of Serbia.

Alongside direct payments, for which we’ve earmarked 46.9 billion dinars in 2023, a total of eight billion dinars has been set aside for rural development measures, 6.3 billion dinars for IPARD, and 2.2 billion dinars for the Competitive

Incentives for young farmers have long since existed in the budget, which is particularly important given that the structure of our agriculture households includes a large number of elderly people. How popular are these subsidies for young people and in what other ways do you encourage young, educated people to enter this sector?

Young people are a category that we pay special attention to within the framework of national measures and the IPARD programme, and we have identified them specifically as being a crucial factor in the continued survival and development of Serbian agriculture. Thus, for example, young producers can take advantage

YOUNGSTERS

Young people are a category that we pay special attention to within the framework of national measures and the IPARD programme, and we have identified them as a crucial factor in the continued development of Serbian agriculture

of subsidised loans with an interest rate of just one per cent, and an average of a third of these loans are awarded precisely to them. They also have an advantage when it comes to the points system and ranking to receive incentives from the national budget, as well as when applying for the IPARD programme.

Under the scope of the IPARD II programme, young people could count on incentives 5% higher compared to all other categories (65% of total eligible investment costs) within the framework of Measure 1, which is intended for investments in constructing and equipping facilities and in procuring agricultural machinery and mechanisation for primary agriculture production.

In the next programme cycle, IPARD III, young people will be able to count on even more significant support amounting to as much as 70% of their total costs, and this will also be extended to Measure 7, intended for rural tourism.

They also have funds at their disposal within the framework of the Competitive Agriculture of Serbia Project, which is being implemented by the Ministry of Agriculture and the Government of Serbia in cooperation with the World Bank.

How much has the IPARD programme contributed to improving and modernising the agricultural sector?

The IPARD programme’s contribution is best reflected in the number of paid beneficiaries of IPARD support. From the start of IPARD II programme implementation until the end of 2022, 645 beneficiaries received IPARD support and implemented their investments successfully.

Through Measure 1, as many as 582 beneficiaries modernised their production processes in the domain of primary agricultural production thanks to supported investments totalling 33.1 million euros. In the area of agricultural product processing, 63 beneficiaries modernised their production through Measure 3, with the value of supported investments totalling 14.2 million euros.

Among the most strongly represented sectors within the scope of primary agriculture are the ‘other crops’ sector, followed by the ‘fruits and vegetables’ sector, which is the

EXPORT

We can offer and export much more in the fruit and vegetable production sector, and in the processing of fruits and vegetables. We must export more processed products and that will be in our focus during the following period

most strongly represented when it comes to processing agricultural products.

Investments worth 27.5 million euros of public support in the procurement of machinery, equipment and mechanisation were realised by 561 beneficiaries within the scope of primary agriculture. The dominant investment type within the framework of Measure 1 relates to the procurement of new tractors, in which 406 beneficiaries purchased new tractors with a total combined value of 14.1 million euros of public support.

DEVELOPMENT

The Ministry implements numerous measures that can be included under “smart agriculture”, from the encouraging of scientific development to the digitalising of administrative processes

Agricultural advisory services (PSSS) represent an important partner in activities linked to the IPARD programme, which is reflected primarily through its direct work with potential IPARD beneficiaries. It is for this reason that educational workshops for advisors, covering all accredited measures of the IPARD programme, are held each year.

In the period ahead, each PSSS will hire an economist in order for us to bring IPARD even closer to agricultural producers and provide them with support in applying for funds.

The Ministry has a strategic orientation towards increasing exports of high-quality food products with added value. How much are these kinds of products included in the existing structure of agricultural product exports and what measures are you implementing to increase their participation?

Are we utilising all the opportunities IPARD offers or is there a need here for farmers to receive additional education?

We definitely aren’t sufficiently utilising the opportunities we’re provided by this programme and I consider that we could use these funds much more, and more efficiently. The IPARD programme offers a wide range of opportunities through accredited measures and, in this regard, it is essential to educate potential beneficiaries of IPARD support in order for us to take full advantage of the funds intended to help our country achieve European Union standards in agriculture. The Ministry of Agriculture, Forestry and Water Management organises informative workshops and education intended for potential users of IPARD support, as well as consultants and advisory services, thereby raising awareness among all interested parties regarding the possibilities of financing through the IPARD programme. Moreover, promotional activities for the IPARD programme are also conducted continuously via social media.

Organic production is oriented towards export and last year achieved a record export value of 68.5 million euros. During the last year we exported organic products mostly to Germany, the U.S., the Netherlands, Austria etc.

Since 2013, which saw the adoption of the Law on Incentives in Agriculture and Rural Development, there has been a growth trend in terms of the budget intended to support organic production through incentives for organic plant production and organic livestock production per head of livestock.

The 2022 budget for organic production amounted to 577.7 million dinars, which was more than double the budget for 2021.

When it comes to wines with indications of protected geographical origin, the Ministry of Agriculture implements an array of measures aimed at increasing their participation in total wine production.

According to data from the Winery Register, the production of wines with protected geographical origin was up 19.6% in 2021 compared to the previous year, while it was 9.6% higher compared to the last five-year average.

I don’t consider all of this to be enough and believe that we can offer and export much

The parameters for an eID number have so far been downloaded by more than 240,000 agricultural producers, and that number itself tells you that Serbian farmers are ready for the new era in agriculture, which will bring the most benefits primarily to them

more. Here I’m referring primarily to the fruit and vegetable production sector, but also the processing of fruits and vegetables. We mainly export raw materials, with processed products exported less, and we must work on this seriously, which is why it will be in our focus during the following period.

eAgrar is undoubtedly among the most promising new additions. What should it bring to farmers specifically? How prepared are they for this transition to digital solutions, in terms of digital literacy?

Thanks to eAgrar, our farmers will be able to monitor the status of their operations online at any time and complete administrative tasks from home, from their farmstead, while they will also be able to quickly spot anything irregular and intervene immediately.

This new system will bring multiple advantages, such as the faster processing of requests and shorter waiting times for payments – to be forthcoming in the year in which requests are submitted.

The parameters for an eID number have so far been downloaded by more than 240,000 agricultural producers, and that number itself tells you that Serbian farmers are ready for the new era in agriculture, which will bring the most benefits primarily to them.

Registrations in the agricultural holdings electronic register (eRPG) began on 20th March and mark the next step in the introduction of the eAgrar system, which will start operating in early April. Over 8,000 farms were registered on the first day alone.

Although we are satisfied with the response of farmers of all generations, we have certainly provided them with additional support from the agricultural advisory services that cover the entire territory of Serbia. Our PSSS advisors are always available to them, and we will likewise organise field visits for the oldest farmers and those who are unable to come to PSSS for some reason, practically “bringing” eAgrar to their doorstep.

Farmers can also access all information free of charge by calling 0800-106-107.

You’ve announced the preparation of the new Law on Wine and other products made from grapes and wine, as well as the harmonisation of our legislation with that of the EU. What new additions should we expect?

The basic goals that we want to achieve with

Registrations in the agricultural holdings electronic register (eRPG) began on 20th March and mark the next step in the introduction of the eAgrar system, which will start operating in early April. Over 8,000 farms were registered on the first day alone

the new law are: harmonisation with current valid EU regulations and requirements in this area; enabling private individuals to engage in wine production under certain conditions, as well as those not registered in the Business Registers Agency (colleges, schools, monasteries etc.), thereby enabling their inclusion in legal production and control processes; protecting producers of domestic grapes by banning the production of wine from raw materials sourced from other countries; introducing viticultural climate zones and winery records aligned with EU requirements; introducing a system of supplementary documents that accompany shipments of wine in accordance with EU procedures; and

facilitating and improving the production of wines with protected geographical origin in accordance with EU regulations.

We are increasingly seeing capital shifting to agriculture, especially when it comes to vineyards, organic production and other agriculture sub-sectors. What kind of quality do these investments bring when it comes to the applying of new agrotechnical measures and innovations?

Viticulture and winemaking are very important economically in many countries. Taking into consideration the fact that large investments are needed to construct vineyards and wine cellars, procure equipment etc., it is essential to also have the proper application of new agrotechnical measures and knowledge in cultivating grapes and producing wine, with the aim of producing a product that will be competitive on the market. The new influx of capital in the domain of viticulture and winemaking contributes to raising production standards and wine quality.

Considering the rapid growth of the organic food market, organic production will play a significant future role in the overall development of agriculture and the food industry in Serbia.

It is for these reasons that the Ministry of Agriculture of the Republic of Serbia monitors trends and tries to include all new technologies in our regulations in a timely manner. We also cooperate with and provide support to our scientific institutions in this area, such as the Biosense Institute, which is among the smart agriculture pioneers in Serbia, while we are also working in a big way on the automation of anti-hail stations, which also represents a new and precise form of crop protection technology.

One other extremely important aspect of innovative solutions in agriculture is that they stand out in particular when it comes to their contributions to reducing negative environmental impacts. Moreover, smart agriculture can help when it comes to improving the overall quality and safety of the food we eat.

The process of digitalising administrative processes can also ultimately be included under smart agriculture. As you all already know, the Ministry is working intensively on the introduction of the eAgrar system, which will start operating this spring.

This system will contribute to saving time and resources, while it will also speed up the processing and paying of subsidies.

INTERVIEW JELENA TANASKOVIĆ , MINISTER OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT

BiorationalAgriculture With Certis Belchim

Certis Belchim is a subsidiary of Japanese company Mitsui & Co. Ltd., a branch of Mitsui AgriScience International SA/NV. Together with four major Japanese R&D companies, it enables Certis Belchim to further develop sustainable plant protection solutions

Constant striving towards a better and higher quality product represents the best route to achieving top results in any line of work, but particularly in the production of plant protection products. And here Belchim Crop Protection Country Manager Vladimir Vasojević explains why some companies are more successful than others, and why one should invest in research and trials.

Certis Belchim combines the strengths of two companies renowned for plant protection products. What has this brought you?

Certis Belchim combines the strengths of two prominent plant protection companies, which offers a richer product portfolio and additional resources for the provision of the highest level of technical support and customer service. Synergy and integration are unfolding according to a plan with predetermined dynamics. The new merged company will certainly strengthen the company’s position in terms of biorational, environmentally friendly products, satisfying the requirements of sustainable agricultural production.

Certis Belchim is a subsidiary of Japanese company Mitsui & Co. Ltd., a branch of Mitsui AgriScience International SA/NV. Together with Nippon Soda, ISK Biosciences, Kumiai and Mitsui Chemicals Agriculture, it provides Certis Belchim with a stronger market position. These companies bring innovative and exciting new solutions for plant protection, both to the world and our

region: Serbia, Montenegro, North Macedonia and Albania.

Your company has been adapting to all existing changes and challenges since its very inception. Is that particularly important today due to climate change, which has

a negative impact on yield quality and quantity?

Climate change impacts all branches of the economy, and agriculture in particular. The concept of ecologically sustainable and professional plant protection is based on the functional integration of conventional and

environmentally acceptable agriculture, alongside applicable biorational solutions in plant protection. Our company understood from the outset the essential element of conducting trials and the huge importance of the knowledge that results from the testing of products in real time, with all the challenges brought by climate change.That constant striving towards a better and higher quality product represents the best route to achieving top yields and superior product quality.

You presented several new products last year, together with your Japanese and European partners. Are you preparing something new for this year and next?

Certis Belchim develops professional, ecological solutions in all branches of plant production: viticulture, fruit growing, vegetable and field crop production. There are no small and large market segments or small and large producers for us, but rather only optimal, biorational and ecological solutions that can help increase the competitiveness of the agriculture of our region. This year we’ve once again presented several new products to our market that will soon represent the standard in plant protection. We have harmonised our operations, both locally and globally, with all increasingly stringent environmental and safety standards, through our programme of professional plant protection that aligns with the concept of precision agriculture. Through so-called biorational solutions, we are also working to make our products even safer.

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MANAGER – SERBIA, MONTENEGRO, NORTH MACEDONIA, ALBANIA, BELCHIM CROP PROTECTION

Constant striving towards a better and higher quality product represents the best route to achieving top yields and superior product quality

SLOBODAN CVETKOVIĆ, M.SC., CEO OF THE NOVI SAD FAIR

Our Fair Leads The Way By Connecting Leaders

The 90th edition of the International Agricultural Fair will be held in Novi Sad from 20th to 26th May, while this August will mark the centenary of the existence of the Novi Sad Fair, which represents an outstanding venue for exchanging experience, gathering information and establishing new business contacts, thereby creating conditions for the concluding of major business deals worth many millions

This year’s Agricultural Fair is expected to surpass last year’s – not only when it comes to the quality and number of exhibitors, but also in terms of visitor numbers. Last year’s fair attracted almost 140,000 visitors.

This year marks two great anniversaries for you. You are surely very proud and excited... It is a great honour, but also an enormous responsibility, to be at the helm of this extremely important institution that is celebrating a century of its existence. The Novi Sad Fair undoubtedly represents an exceptional venue for exchanging experience and information, and establishing new business contacts, and as such, creates conditions for the concluding of large business deals worth multiple millions. Over the course of its existence, the Novi Sad Fair has grown into a modern institution that is able to adapt quickly and efficiently to the requirements of economic flows and markets, and it has been an important driver of our country’s economy for almost a century.

The International Agricultural Fair is the largest and most important trade show of its kind in Central and Southeast Europe. Will this jubilee edition surpass all previous ones in terms of exhibitor numbers, the quality of exhibits and visitor numbers?

Judging by the number of interested exhibitors, we can say that everyone wants to be part of this special year for the Novi Sad Fair. Exhibitors from Hungary, the Netherlands, Bosnia-Herzegovina, Spain, Montenegro, Czechia, Belarus, Türkiye,

Judging by the number of interested exhibitors, we can say that everyone wants to be part of this special year for the Novi Sad Fair

Russia, Romania, Bulgaria, Denmark, Belgium, Pakistan and France have already expressed interest. We are preparing to stage the fair in open and closed areas and at Congress Centre “Master”.

In addition to all well-known segments, such as the Exhibition of Agricultural Machinery, the National Exhibition of Livestock and the Exhibition of Products with Added Value – exhibitions of organic products with indications of geographical origin, “Serbian Quality” and craft beer, which

are held under the auspices of the Ministry of Agriculture, Forestry and Water Management, there will also be professional and business meetings, Agri B2B meetings etc.

The Agricultural Fair represents a strong pillar of support to the Serbian economy, encouraging international cooperation, integrating science, knowledge and production, educating, promoting best practices... But is it correct to say that even all this doesn’t cover everything it provides?

I think that the Fair’s most important role is to connect leaders – to be the leader. We connect the most valuable that Serbia has to offer with the best from around the rest of the world. The Agricultural Fair is an important springboard for Serbian agribusiness on its path to conquering world markets, because it represents a strategic point that simultaneously brings together successful companies and successful individuals. Don’t forget that Novi Sad is a university centre with more than 20 faculties, the home of the local and regional headquarters of a large number of prestigious foreign companies, as well as a desirable tourist destination – and all of this guarantees the successful future of the Novi Sad Fair.

In my opinion, domestic agricultural production should be directed towards the IT sector and science, which means the engagement of science and practice. Farmers and scientists in Vojvodina have sufficient knowledge to create an abundance of high-quality food, and I personally believe that all food products and organic production represent chances for the development of our country.

BY ROBIN WILLOUGHBY

The Food-System Revolution Is Coming

Demographic, environmental, and consumer factors have brought the global agriculture sector to a crossroads. To avoid political hazards, decision-makers in government, industry, and civil society will need to heed the lessons from major transitions in other industries and start preparing

Disruption is coming to the agriculture sector. Around the world, livestock farmers are leaving the land, policymakers are targeting the harmful environmental and social effects of industrial meat production, and consumers are shifting away from meat to embrace healthier, more sustainable alternatives. With the sector approaching a crossroads, decision-makers in government,

industry, and civil society will need to heed the lessons from major transitions in other industries and start preparing.

The preparation will require a careful inventory of farmers, workers, and consumers’ needs. While farmers are growing older and leaving the land for other pursuits or retirement, the agriculture sector is struggling to attract new entrants – and not just in richer industrialised countries.

The question now is not whether there will be increased regulation of the livestock industry, but what shape and form it will take.

Farmers and companies alike should be prepared to adapt to changes that are now inevitable

For every farm manager under 40, there are three over the age of 65 in Europe; and from Sub-Saharan Africa to Asia, Latin America, and the Caribbean, the number of older people living in rural areas is increasing while the number of young people declines.

At the same time, farms are becoming larger, and small farm operations are being squeezed. Owing to the challenging economics of farming and the power of a small number of giant industry incumbents, farms are being consolidated in the name of efficiency and economies of scale. As a result, the European Union lost more than one-third of its farms, and 40% of its livestock farms, from 2005 to 2020. Policymakers are thus left to consider whether and how to protect family farms, and how to avoid the risks of animal-welfare violations, poor working conditions, and diseases that are inherent in industrial livestock farming.

Policymakers are also waking up to the compelling body of evidence about industrial meat production’s environmental harms. While agriculture accounts for nearly onethird of all greenhouse-gas emissions, livestock alone (particularly cattle) contribute nearly 15%. Moreover, animal agriculture is the main cause of deforestation and biodiversity loss. Forests are razed to free up land not just for animal grazing, but also for the additional crops needed to feed those animals. Beef production alone takes up some 60% of land used for agriculture,

O ne need look no further than last year’s farmer protests in the Netherlands or New Zealand to see how abruptly climate policies can be disrupted when workers and communities feel left out

even though it contributes less than 2% of total calories consumed globally.

While livestock and agriculture have traditionally been excluded from most emissions-reduction schemes, policymakers in Denmark, the Netherlands, and New Zealand are already working to close this gap, and many other countries will soon follow suit. The question now is not whether there will be increased regulation of the livestock industry, but what shape and form it will take. Farmers and companies alike should be prepared to adapt to changes that are now inevitable.

Finally, consumers, too, are shifting away from meat and dairy. Over the past decade, the average person’s meat consumption has decreased by almost 17% in the United Kingdom and by 11% in Germany. Notwithstanding a recent slowdown, there is still growth in the uptake of alternative proteins – a food source that produces only a tiny fraction of the negative environmental and animal-welfare effects of traditional meat products.

Plant-based meat and milk sales are already trending up across the board in the EU, but also in countries like Thailand and South Africa. When these products reach taste and price parity with meat, their uptake by consumers could accelerate very quickly indeed.

Public policy also has a role to play. Livestock farming tends to be heavily subsidised in many countries, owing to the sector’s low margins and high levels of debt. As sales fall, declining revenue is likely to have significant welfare implications for farmers and other workers tied to the industrial meat-production systems.

Given the complexities of these interacting trends, policymakers and corporate leaders need to start getting in front of this issue now. The experience of other sectors that have begun decarbonising – not least energy – shows that a planned and guided transition is always better than an ad hoc, unmanaged process.

One need look no further than last year’s farmer protests in the Netherlands or New Zealand to see how abruptly climate policies can be disrupted when workers and communities feel left out. Unfortunately, we still have only a limited understanding of how best to integrate policy and corporate action to reduce food-system emissions while also protecting livelihoods. Since resisting change is not an option, policymakers and corporate leaders would do well to start thinking about how they will manage it in the coming years.