Agribusiness Serbia 2018 by CorD Magazine

AGRIBUSINESS SERBIA 2018

THE LAND IS EVERYTHING

AGRIBUSINESS LAND IS EVERYTHING

CONTENTS

RISING TO THE CHALLENGE

Comment

SERBIA NOW BENEFITTING FROM EC ASSISTANCE Phil Hogan, European Commissioner for Agriculture and Rural Development

Vuk Radojević, Provincial Secretary for Agriculture, Novi Sad

IPARD - DEVELOPMENT OPPORTUNITY FOR SERBIAN AGRICULTURE

INDIA BOOSTS ECONOMIC TIES WITH SERBIA H.E. Narinder Chauhan, Ambassador of India to Serbia

SBERBANK SRBIJA JSC

GLOBAL AGRIBUSINESS LEADERS IN NOVI SAD Jelena Marinković, Executive Director of the Novi Sad Fair’s Sector for Integrated Marketing Communications

EDITOR Ana Novčić a.novcic@aim.rs

HALIFAX TRANSLATION SERVICES office@halifax-translation.com

DESIGNER Jasmina Laković j.lakovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

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PROJECT MANAGERS Biljana Dević b.devic@aim.rs Nataša Trifunović n.trifunovic@aim.rs Nevena Đurković n.djurkovic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs

AGRIBUSINESS

NEWS

CITY OF INFINITE DEVELOPMENT OPTIONS Bogdan Laban, Mayor of Subotica

SERBIA COULD BE A HIGH-QUALITY FOOD BRAND INNOVATIVE APPROACH IN AGRICULTURE WITH PROFESIONAL CROP PROTECTION Vladimir Vasojević, Belchim Crop protection SRB doo

THE BEST OF NATURE Univerexport

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

GENERAL MANAGER Ivan Novčić i.novcic@aim.rs

EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica, Serbia

FINANCE Ajilon Solutions m.damjanovic@aim.rs EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs

WE LISTEN TO THE LAND’S NEEDS Bogdan Žigić, General Manager of Biofor System

ADJUSTING TO EU CONDITIONS OF SUGAR PRODUCTION AND TRADE Petros Gemintzis, CEO, Hellenic Sugar Industry

Dragan Crnjanski, CEO, Al Rawafed Serbia

Corporate

LOGISTICS SERVICES OFFER THAT SAVES AGRIBUSINESS COMPANIES TIME AND MONEY Stefan BaboviĆ, Chief Operations Officer at Victoria Group

Branislav Nedimović, Minister of Agriculture, Forestry and Water Economy

YOUTH ARE THE DRIVING FORCE OF AGRICULTURAL DEVELOPMENT

GREEN SUGAR Irena Stojanović, Director of Agriculture Department, Hellenic Sugar Industry

MARKETS AND INCOME 2017-2030 EU Agricultural Outlook

11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs www.aim.rs

THE LAND IS EVERYTHING

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AGRIBUSINESS

The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

COMMENT

Rising To The Challenge If they learn how to comply with EU standards, Serbian exporters will be able to compete in the EU and on other markets. The EU is supporting the harmonisation process, but the crucial role in this endeavour is and will be, as always, in hands of the state and farmers themselves

he effects of Serbia’s accession process business, while for policymakers the challenge much it will help farmers and the processing industry to upgrade their capacities – it on domestic agriculture were, and is how to help farmers make that happen”. is up to national policymakers to secure an no doubt will continue to be, one of Some of the measures taken in recent adequate institutional framework and overall the most hotly debated topics at the years by the state, as well as by private ambience for the agriculture and food pronational level. While EU producers have often partners, provide some hope. In a partnership cessing industries to thrive. been seen as a threat, as of this year domestic between the state and banks, farmers were Every national administration reiterfarmers will be able to see what it means when offered a chance to modernise out-dated ates its belief that Serbia should find its the European Union “works for them”. mechanisation, while industry was placed in chance for long-term economic growth in It is expected that IPARD, a new instrua position to renew and develop production ment available to the Republic of Serbia, will the development of agriculture. However, and processing capacities. Some irrigation bring numerous benefits to Serbian agriculture shortcomings like property-legal problems, projects are now in the implementation by supporting the modernisation of agriculland fragmentation, complicated legislation phase. However, there is still much to be done tural holdings, and raising the overall standards and bureaucracy, underdeveloped irrigation before Serbia will be in a position to utilise and competitiveness of the agriculture-food canal systems and the unfavourable structhe quality of land, fruit and vegetables, as ture of land ownership seem to be recurring sector. Obviously, the greatest benefit will well as its enormous potential for further be the transfer of knowledge regarding standards and proIt is good to know that the domestic IPARD agency today has cedures applied in EU member states, with which Serbian highly-qualified staff. One could only hope that this will, in future, farmers have to compete on the become a standard for other institutions dealing with agriculture domestic and foreign markets. Furthermore, it is expected problems that haven’t been addressed for that IPARD will bring predictability, certainty processing and creating final products with many years, if not decades. They are holding and long-term planning that were not often a higher added value. back the efficiency of Serbian agriculture, demonstrated in our domestic policymakAt present, it is good to know that some ing, either in agriculture or in the economy which is in turn posting results that are far foreign investors – such as Indian company generally. It is good to know that today, after below optimal, as it is less competitive on TAFE, a renowned tractor manufacturer many delays, the domestic IPARD agency has both local and foreign markets, regardless that recently purchased Serbia’s IMT – have highly-qualified and well-trained staff. One of impressive export figures. noticed Serbia’s capacities in manufacturing. can only hope that this will, in future, become As European Commissioner for AgriculIt remains to be seen whether such chances ture and Rural Development Phil Hogan stated a standard for other institutions and state of reviving one of the members of the once in his interview for this edition of CorD, “the services dealing with agriculture. well-known Agricultural Tractor Tyres sector challenge for farmers will continue to be how That’s precisely because – no matter how would be a rare example of using Serbian industrial knowledge in the agriculture sector. ■ to make a fair and sufficient living from their efficiently IPARD is implemented or how AGRIBUSINESS

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INTERVIEW

Serbia Now Benefitting From EC Assistance

PHIL HOGAN EUROPEAN COMMISSIONER FOR AGRICULTURE AND RURAL DEVELOPMENT

IPARD support can be used for a number of different rural development measures, such as farm diversification or organic farming, and the EC strongly encourages the Serbian authorities to accelerate their preparation for calls in these and other areas as well, to ensure the maximum possible use of the support available 8 |

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he EC was greatly encouraged to see the important progress made by Serbia in its preparations for IPARD and it is clear the countryâ&#x20AC;&#x2122;s government played a crucial role in this process.

â&#x20AC;˘ Serbia finally started using the IPARD programme this year. It is well known that you have collaborated intensively in previous years with the Serbian authorities on removing obstacles. With that in mind, how would you comment on this news? - Cooperation between my officials in the Commission and their Serbian counterparts is very good and has enabled Serbia to finally begin to benefit from assistance in the agriculture sector in line with EU requirements. And it is clear that the

EU FUNDING

CHANGES

POLICY

In total, EU funding of €175 million is available for agriculture and rural development in Serbia through IPARD

Serbia already has some level of preparation in the area of agriculture and rural development but, as I said earlier, changes and adjustments cannot happen overnight - they need time

If we want our policy to be more resultsbased, it must become more flexible, more targeted - and that means it has to become less centralised in some ways

Serbian authorities take this whole issue very seriously: the IPARD agency is housed in one of the most modern buildings in Belgrade and its staff is highly qualified and well-trained. As a reminder, IPARD provides support to boost the competitiveness of the agri-food sector and helps farmers and agricultural businesses in EU candidate countries with their gradual adjustment to EU rules on food hygiene, food safety, veterinary and environmental standards. IPARD support can also be used to help diversify the rural economy in these countries. In total, EU funding of €175 million is available for agriculture and rural development in Serbia through IPARD We have to date had one call for applications for support, focused on machinery and tractors, with almost 500 applications received, which is excellent and shows the strong interest of Serbian farmers in benefitting from this support. I hope to see a similar, if not higher, level of interest in the current open call, which is aimed at small and medium-sized Serbian food processing firms. • What are the leading European trends in agricultural production today? - Food and farming remains a vital part of the EU economy, and of all our lives, but in many ways it is under pressure more than ever before. The old ways of state aid, subsidies and intervention to support agricultural markets are long gone, and the CAP is now fully market-orientated, with all the potential advantages and risks that that entails. So, I think the challenge for farmers will continue to be how to make a fair and sufficient living from their business, while for policymakers the challenge is how to help farmers make that happen! At the same time, farmers also face the need to adapt to an ever-changing world, where businesses and consumers expect them to play their part in tackling climate change and protecting biodiversity, or where new technologies are changing the way we think and act on an almost daily basis. On the policy side, we will certainly continue to monitor European agriculture markets, as we do already through the various observatories and dashboards that we create for a variety of sectors. Understanding the market and where it is moving is vital not only for farmers and businesses to plan, but also for us, as policymakers, to be able to head off potential issues or crises before they grow. The dairy sector was in particular trouble a few years ago, but we were able to react quickly with a package of measures to support dairy farmers in their time of need. However, while the situation has improved, the market remains difficult and we need to keep a close eye on this and other sectors too, to ensure that we can act quickly if and when needed.

You will find all these trends and challenges reflected widely in the proposals I will make soon on the future of the CAP after 2020. • What are the main weaknesses of Serbian agriculture compared to developed EU countries? - Agriculture (and the wider food industry) is a very important pillar of Serbia’s economy, both in terms of its contribution to the country’s GDP (around 10%) and employment (20%).

Trade between Serbia and the EU in agricultural products, both primary and processed, has more than doubled to over €2 billion since the 2008 conclusion of the Stabilisation and Association Agreement (SAA). Since the entry into force of the agreement, Serbia has consistently enjoyed a positive trade balance that has continued to improve in recent years. This is all good news, but the sector still faces numerous challenges: for example, Serbia needs to place greater emphasis on developing a strong food processing sector; there is a need to tackle regional and structural imbalances as regards farm size distribution and efficiency; and land fragmentation AGRIBUSINESS

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and low average farm size pose a challenge to the sector’s competitiveness, to name but three challenges. As far as preparation for rural development programmes is concerned, there are still some weaknesses at the administrative level that need to be addressed. For example, staff in key positions are changed too frequently, while many of the administrative procedures are still too onerous. We have also identified a lack of skills and training in certain areas, for example in advisory services.

aspects of alignment with the CAP are particularly important: you need to build the institutions necessary for handling and controlling CAP payments, while support systems have to be aligned in time prior to accession. As far as the rural development programmes are concerned, it is true that Serbia is not alone - and certainly not the first - in facing these challenges. Experience shows that as the implementation of programmes is delayed, it is vital to ensure that contracting and payments are accelerated to make sure the EU funds are not lost. Implementation has to be monitored closely and the authorities must be able to react quickly if obstacles arise. But it is also important not to let this dent your ambition - don’t be afraid to focus on the more challenging issues, such as agri-environmental measures, rural infrastructure or producer groups, even if they take more time and are more complicated to implement. Experience shows that the investment will pay off later!

• How do you assess the institutional and legislative harmonisation of the Republic of Serbia with EU regulations and norms in the accession process? What is the situation at present? - Serbia already has some level of preparation in the area of agriculture and rural development but, as I said earlier, changes and adjustments cannot happen overnight - they need time. The acquis (the body of EU law) in the area of agriculture and rural development covers a large number of mandatory rules, many of which are directly applicable. Their proper application and effective enforcement by public administrations are essential for the functioning of the Common Agricultural Policy (CAP) - and as such need to be properly prepared and implemented in good time. To benefit from the single market, products produced in Serbia need I think the challenge for farmers will continue to be how to make a to comply with EU standards. Many fair and sufficient living from their business, while for policymakers Serbian products already do, since the challenge is how to help farmers make that happen! Serbia is a net exporter of agricultural products to the EU, but for others there is a need to adapt. It takes time to upgrade farms and food establishments. It can be difficult • Did you have similar problems in the new EU member states to persuade farmers to accept costs and constraints linked to and countries of the region, such as Romania, Bulgaria, Cronew policies and rules, but the EU can provide support in this atia, or even Hungary; What can Serbia gain from the experegard, in particular with IPARD. Compliance with EU standards rience of these EU member states? ensures that Serbian exporters can compete on the EU and - The effects of the previous enlargements for the agricultural other markets. The EU is providing substantial assistance to sector have been encouraging. In most of the ‘new’ member states, help Serbia in this alignment process. positive developments and new opportunities outweigh the As I mentioned before, we have seen with the preparation challenges and costs of full integration into the single market. In work on IPARD that Serbia is more than capable of rising to general, the integration of the newer member states into the Comthis challenge. mon Agriculture Policy took place without any major difficulties. That said, there is always preparation to be done and • How do you assess progress in this domain, what else needs planning needed to ensure the success of the enlargement to be done? In your opinion, which of the negotiating chapprocess. Reform should not be delayed, but it is clear that changes and adjustments cannot happen overnight - they ters will be the most complex and difficult to negotiate? need time and should be completed prior to accession. Two - I can only speak for the area I know best, and for which I have

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responsibility, namely agriculture and rural development – which is chapter 11. It is widely regarded as one of the most important chapters of the EU acquis. As I mentioned earlier, this body of law on agriculture and rural development covers a large number of binding rules, many of which are directly applicable. For the Serbian government, this means the creation and/or reinforcement of appropriate administrative structures to be able to apply EU legislation on direct support schemes and to implement the common market organisation for various agricultural products. Let me highlight the benefits of enlargement and Chapter 11: farmers will benefit from the CAP, a policy designed to develop agriculture in a sustainable and profitable way, at the same time bringing more stability for farmers. The EU’s rural development funds will also improve quality of life in rural areas, increase the farm sector’s competitiveness and contribute to the diversification of incomes in rural areas. An enlarged EU market will bring many possibilities for farmers and agri-food businesses. Looking beyond the internal EU market, enlargement will also bring big opportunities in terms of access to international markets.

we want our policy to be more results-based, it must become more flexible, more targeted - and that means it has to become less centralised in some ways. This is why each member state will now have to produce a CAP Plan, setting out where there are particular needs in terms of support for farmers and for rural development, how they meet the overall objectives set at the EU level and how they propose to target the funding more effectively towards meeting these objectives. As for how the policy objectives will change at the EU level,

• You recently announced that the new CAP is in its final stage. Can you provide us with some details? What is the idea behind this revision; and what are the expected goals and benefits? - Since I became the Commissioner for agriculture and rural development in 2014. I’ve spoken with many farmers, national authorities, associations and ministers about the common agricultural policy, and the one thing almost all of them tell me is that it is too complicated and complex - and that this means it does not deliver what we expect it to deliver. This has been the starting point for our revision of the CAP, to make Trade between Serbia and the EU in agricultural products, both it simpler and more modern, making primary and processed, has more than doubled to over €2 billion sure that the support is targeted where it is needed most, and where it since the 2008 conclusion of the Stabilisation and Association can bring real results. Putting it simply, Agreement (SAA) we think that while it is vital that the CAP remains a common European policy, with aims and objectives clearly defined and set at the let me focus on just one area - perhaps the most important of EU level, meeting these aims in the most effective way is best them all. We clearly need to make sure that our policy is susachieved by giving member states greater flexibility to target tainable, and that means a far greater level of ambition when it support where it is most needed. As such, the policy will concomes to environment and climate-friendly measures. This is why we propose setting far more rigorous sustainability targets tinue to be set at the European level, but implementation will for farmers to meet in order to receive their direct payments, be much more flexible and focused on the national level. We for example, along with greater flexibility, with more incentives want to reduce the rules and go for performance and results for member states to establish their own eco-schemes to rather than making sure everyone complies with the rules, as further encourage farmers to farm in a sustainable manner. was the focus in the past. This new delivery model for the CAP is the most significant Let me be clear, though, that this is not about giving control change I am proposing, but there are many others as well – not or responsibility for the policy - and the money that comes least a far greater focus on innovation and technology to help with it - back to the member states: there will always be a C modernise and simplify the policy (for example, using free-toin the CAP! It’s rather about understanding that one size does use satellite data to monitor farm size or crop rotation, thus not necessarily fit all, and that each member state has difreducing the need for on-the-spot checks significantly). ■ ferent needs, different capacities and different objectives. If AGRIBUSINESS

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INTERVIEW

IPАRD - Development Opportunity For Serbian Agriculture

BRANISLAV NEDIMOVIĆ MINISTER OF AGRICULTURE, FORESTRY AND WATER ECONOMY

The launch of construction of large irrigation systems in Serbia, the announcement of the first calls for IPARD and the purchase of company IMT by renowned Indian company TAFE have all marked the previous period, and Minister Nedimović also announces the further continuation of investments and intensive work on utilising the potential of the agriculture and manufacturing industries 12 |

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n the first phase, the IPARD programme will be implemented through two measures: Measure 1 (M1) - Investments in the physical assets of agricultural holdings intended for individual persons and legal entities; and Measure 3 (M3) - Investments in physical assets relating to the processing and marketing of agricultural and fishery products, intended for legal entities. Farmers, entrepreneurs and legal entities will be able to procure machinery and equipment with the return of funds, and to invest in the expansion, adaptation or building of their capacities. • After many years of waiting, the first calls for IPARD have finally been announced in Serbia. How many calls will be made this year and for what purposes? - Five public calls are planned for this year under both meas-

BENEFITS

POTENTIAL

INFRASTRUCTURE

If we look at IPARD as a new instrument that the Republic of Serbia is starting to apply, we can state freely that there are multiple expected benefits for Serbian agriculture

The situation is not simple, but there is generally huge potential for investments in the agriculture and manufacturing industries

There are high quality companies in the Republic of Serbia that can carry out the design and implementation of infrastructure projects on irrigation systems

ures - M1 and M3. In addition to the two public calls that have been announced and closed, the first public invitation was also recently published for M3 Investments in physical assets that relate to the processing and marketing of agricultural products and fishery products, which is intended for legal entities, entrepreneurs and agricultural cooperatives for the development of the processing sector. The first public call for M3 was announced on 27th March, while the deadline for submitting requests under this call lasts until 28th May 2018. The funds will be intended for the purchase of equipment and 11.7 million euros will be made available. Two more public calls will follow in the summer period, under both measures that will encompass the construction of facilities, the purchase of new equipment and machinery, including tractors within the framework of Measure 1 and the construction of facilities and the purchase of new equipment within the framework of Measure 3.

capacities. IPARD represents a developmental opportunity that should be maximally exploited in order to achieve the set goals. Alongside the financial impact on users who pass strict IPARD criteria, the greatest benefit will be the transfer of knowledge about standards and procedures that also apply in EU member states.

• Considering the experiences of other countries and our potential, what are the expected advantages for Serbian agriculture and rural development? Can this be a financial injection that will launch investments on a wider scale? - If we look at IPARD as a new instrument that the Republic of Serbia is starting to apply, we can state freely Predictability, certainty, long-term planning and the amount that there are multiple expected of investment support are the main features of IPARD, which benefits for Serbian agriculture. are particularly important when it comes to investment in the IPARD could definitely be a driving processing industry impulse that would contribute to the modernisation of agricultural holdings, raising the overall standards and • In the previous period, you have spoken with representcompetitiveness of the agriculture-food sector. atives of several countries that are interested in investing Predictability, certainty, long-term planning and the amount in our agricultural production and food industry. What are of investment support are the main features of IPARD, which their assessments of our advantages and possible shortare of particular importance when it comes to investment in comings when it comes to being more attractive for foreign the manufacturing industry. We at the Ministry of Agriculture investment in the agriculture sector? believe deeply that Serbia should find its chance for long-term - The list of advantages and shortcomings is long and comeconomic growth precisely in the development of agriculture. plex. Advantages include the excellent quality of land in We won’t achieve this unless we develop a strong manufacturSerbia, high quality fruit and vegetables, as well as enormous ing industry and continue to merely sell cheap raw materials. potential for further processing and the creation of final We have all the preconditions, and in recent years we have products with a higher level of processing, the possibility of been working intensively on modernising outdated mechanicooperation with local farmers, Serbia’s connectivity with sation, renewing and developing production and processing AGRIBUSINESS

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the largest markets in the world: the EU, Russia, Turkey, CEFTA , and the reputable history of Serbian agriculture in the cultivation of various fruits and vegetables, etc. The shortcomings include unresolved property-legal problems from the past (primarily restitution), the dividing of land parcels, complicated legislation and bureaucracy, an underdeveloped irrigation channel system etc. The situation is not simple, but there is generally huge potential for investments in the agriculture and manufacturing industries, which needs to be worked on intensively, with the most

• When it comes to improving cooperation with India, you’ve held talks with representatives of three of the world’s top 10 tractor manufacturers. Are there any new developments and concrete steps on this issue? - India is a huge country with enormous potential, which will become one of the world’s top three markets in the next 10 years. Now is the right moment for Serbian products to position themselves, because there is still sufficient space: the market is growing at an incredible pace, there are numerous opportunities for two-way cooperation, for our mutual benefit, but it should be considered that this is a long-term process requiring time, serious human and financial capacities, and planning activities for the next few years. Meetings have been held with the largest Indian companies, while the first tangible result was the purchase of IMT by Indian company TAFE, a renowned tractor manufacturer. But that’s not all. We’re working intensively on connecting the economies of Serbia and India (through the arrival of some other major investors), as well as on creating the conditions for exporting Serbian apples and berry fruit to the Indian market.

• Last year was significant due to the commencement, after a 30-year break, of the construction of large irrigation systems. How much progress has been made on the implementation of this project and what are the plans until year’s end? - In 2017, on the territory of the Vojvodina, following the conducting The application of IPARD will impact on strengthening of public procurement procedures, social capital and market connections between producers, works began on the enhanced mainstrengthening rural areas and their sustainable development tenance of canals – the two-way systems of Rečej, Međa, Itebej, Jankov I and II, on the construction of pumping stations Jegrička, Pesir and Kaloča, as well as active possible participation of domestic businessmen carrying out works on the subsystem Nova Crnja - Žitište, in new projects of the processing industry. Tisa - Palić, Kikinda - CS Mokrinska II and Mali Iđoš. Likewise, The United Nations Development Programme (UNDP), 2018 saw the Decision brought on awarding contracts for in cooperation with the Ministry of Agriculture, Forestry the procurement of works on the reconstruction and conand Water Management, is implementing a programme struction of facilities within the framework of the Mačva entitled “Support to Productive Capacities in the Agrosystem. The total value of the noted works is €15,192,425, Industrial Sector in Serbia”. The project is being funded by without VAT. These works will ensure the irrigation of around the Government of the Russian Federation, in the amount 47,954 hectares of additional agricultural land surface area. of $1.5 million, and has a projected implementation period Implementation of the project “Irrigation system developof 2016 to 2019. The main objectives of the project are ment – phase one” will continue in 2018 and 2019, with contracted related to improving conditions for accessing new marworks to be completed in 2018, but also the contractual continukets and improving export capacities, as well as creating ation of the works on the Mali Iđoš subsystem, the realisation a favourable framework for the development of trade in of which is planned for 2018 and 2019, which will provide for the the agro-industrial sector.

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irrigation of all 11,500 ha of agricultural land area in this subsystem. The estimated value of these works is approximately €4.7 million. There are high quality companies in the Republic of Serbia that can carry out the design and implementation of infrastructure projects on irrigation systems. • As of the start of this year, small producers of meat and milk can legally enter the market on the basis of the new rulebook. How will their operations now function and what are their benefits for them, but also for the state and consumers? - Considering the importance of this group of producers and striving in particular to preserve the tradition and life in the countryside, in consultation with them we prepared and adopted a Rulebook that prescribed incentives and exemptions (flexibility measures) for small producers of meat, milk, eggs and fish, in terms of equipment, facility appearance and the activities they perform. In cooperation with the FAO/EBRD, the Ministry also issued guidelines for the implementation of the Rulebook and accompanying forms, which should be implemented by producers, without using additional services of external companies, i.e. without any additional charges. All of this will enable producers to leave the “grey zone” and, with minimal investment, place high-quality and safe products on the market. • You have announced that the Ministry will focus in the period ahead on young people, and that all incentive measures will be available to them. What measures does this relate to and for which sectors is this support primarily intended? - Our ministry plans to support young farmers in

2018. Farmers aged under 40 are given additional points in processing the requirements within the framework of measures to improve the competitiveness of agricultural holdings in the programme IPARD II. They will also have additional points for those national rural development measures, with ranking carried out. One tangible measure for young farmers will be changed and we will direct attention towards newly established agricultural holdings that are held by farmers aged under 40, i.e. “start-up” assistance to launch and improve agricultural production at these farms. The level of funding will be increased to 1.5 million dinars per smallholding, and those funds can be used for the procurement of machinery, equipment for primary agricultural production and quality breeding stock. • You often spend time in the field, in direct contact with agricultural producers. What can be a chance for our further development and the creating of advantages over neighbouring countries? - The application of IPARD will impact on strengthening social capital and market connections between producers, strengthening rural areas and their sustainable development. Great development opportunities for agriculture and rural areas lie in the creation of an efficient system for transferring knowhow, technologies and information, as well as innovative ways of using biodiversity. The goal of the Ministry of Agriculture, Forestry and Water Economy in the period ahead is to improve the attractiveness of rural areas as enticing places for the lives of young families, and is closely related to improving physical infrastructure, better access to social services, improved social structures and support for the development of youth entrepreneurship. ■

The Fruit Research Institute, Čačak, is a state institution (founded by the Government of the Republic of Serbia) with the status of an accredited research and development institute and with a main activity that is of special and general social interest. The main activity of the Institute is scientific research in the field of biotechnical sciences, within the scientific disciplines of fruit growing, crop protection, plant product technology and food biotechnology, within the framework of programmes and projects that include mostly applied and development research, and partly basic research as a basis for applied and development research.

Thanks to many years of successful work and the results achieved, the Institute represents a unique scientific research institution, a leading institution in the field of fruit growing in the country and in the Balkans, known and recognised in Europe and worldwide.

Kralja Petra I 9, 32000 Čačak Tel: +381 32 321 375 +381 32 321 413 office@institut-cacak.org www.institut-cacak.org

INTERVIEW

India Boosts Economic Ties With Serbia TAFE’s takeover of IMT and its becoming a strategic partner of Serbia in the crucial sector of tractor manufacturing is an historic event that will improve Serbian agriculture, strengthen India’s commercial presence in Serbia and attract potential Indian investors to Serbia

H.E. NARINDER CHAUHAN AMBASSADOR OF INDIA TO SERBIA

conomic ties between India and Serbia received a significant boost during the visit to India of then PM and now President Aleksandar Vučić in January 2017, where he discussed potential cooperation with PM Modi, including in the areas of agriculture, food processing, defence, S&T, tourism, IT etc. Existing bilateral agreements, including BIPA, DTAC, Trade, Air Services, Tourism, Agriculture, S&T, IT& Electronics etc., provide the necessary framework and are reinforced by regular meetings of all working groups, including the Joint Economic Committee (March 2017), Joint Committee on Agriculture (Nov 2016), Joint Committee on IT & Electronics (Oct 2017) and Joint Committee on S&T (Oct 17). Joint workshops on Biotechnology & ICT are planned to take place during 2018. • Relations between Serbia and India have a long tradition, but it seems that cooperation between our countries has recently been intensifying, especially in agriculture, the food processing industry and agricultural machinery. How would you assess our cooperation to date, and do you think there are opportunities to develop it further?

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- In a strong push to furthering bilateral relations, Agriculture Minister Branislav Nedimović led 11 companies to ‘World Food India’ in November 2017, where Serbian products such as fresh and frozen fruits and vegetables attracted great interest. Minister Nedimović held bilateral meetings with the Indian Minister of Agriculture and Minister of Food Processing Industries to discuss the scope of bilateral cooperation. The signing of a phytosanitary agreement, which is in the advanced stages of negotiation, will be instrumental to enhancing bilateral trade in agricultural products. Bilateral trade saw year-on-year growth of 40% in 2017. We hope to see more visits from both sides in the near future, which will lead to the further expanding of two-way trade & investment, as well as the building of networks of cooperation for mutual growth and progress. History was made on 2nd April 2018, when Serbia made an Indian company, TAFE, its strategic partner in the crucial sector of tractor manufacturing, under the IMT brand. Serbian PM Ana Brnabić was personally engaged in this project and was present, alongside Agriculture Minister Nedimović, at the signing ceremony in the Palace of Serbia on 11th April.

This is not only a boost to Serbian Agriculture through tractor manufacturing and its export, it also helps revive India’s commercial presence, which was adversely affected by the collapse of the former Yugoslavia. • Serbian Agriculture Minister Branislav Nedimović attended the food trade fair in India last November. He met his Indian counterparts and noted the huge potential for increased cooperation. What do you think are the specific areas in which substantial advances can be made? - World Food India 2017 generated a huge boost to the Indian food processing industry by showcasing the immense investment potential of the sector and helping a variety of stakeholders in the process, thereby boosting the Make in India initiative. MoUs worth $14 billion were signed/exchanged/ announced during WFI, which has now established itself as a brand India show. Serbian products like frozen fruits, confectionary, dried fruits etc., received great interest at the fair and exhibitors held B2B meetings with potential Indian partners and representatives of various Indian states. The biggest interest was shown in the import of fresh and frozen fruits and vegetables, for which India is a huge market. Serbia may, in turn, consider importing tropical fruits like mango, pineapple, banana, papaya etc. from India. In order to facilitate this, a phytosanitary agreement is currently under negotiation.

• Prime Minister Modi has remarked that there is enormous potential for food processing and added value in fields such as organic and health foods. Will this soon be one of your advantages and an opportunity to take a dominant position on the world market? - The food processing industry is of enormous significance for India’s development, because of the vital linkages and synergies it promotes between the two pillars of our economy: industry and agriculture. Given the trade in production of food commodities, the food processing industry in India is on an assured track of growth and profitability. The Gov-

• This year saw the opening of the Wai Wai noodle brand AGRI FAIR NOVI SAD factory in Ruma, an important investment. May we expect more investment in Serbia like this one, which relies on local resourcThe food processing industry is of enormous significance for India's es both in terms of raw materials and workforce? development, because of the vital linkages and synergies it promotes - Certainly, the success stories of between the two pillars of our economy: industry and agriculture TAFE and Wai Wai will send the right signal to Indian industry to invest in ernment has launched a number of initiatives to promote Serbia. This will also help promote the local economy. Indian this sector, including allowing 100% FDI. With a large agricompanies will have opportunity to showcase their potential culture sector, abundant livestock, and cost competitiveat the forthcoming Novi Sad International Agricultural Fair. ness, India is fast emerging as a sourcing hub for processed food. India has, thus, great potential for global trade in agri• There is a lot of talk in Serbia these days about the sale cultural and processed food products. We are happy to see of IMT. Indian company TAFE bought this old Serbian giSerbia emerge as a willing partner, as a largely non-GMO ant and is planning to start producing tractors. The Serbicountry with strengthens in organised agricultural produce. an public has welcomed this investment, which is expected to re-launch the manufacture of agricultural machinery • India is the largest producer of a number of agriculturin our country. How do you see this event? al products and takes second place globally in total food - I am very pleased with this development. The revival of IMT production. Which agricultural products could India sell will help significantly in terms of boosting Serbia’s agriculture more in Serbia? sector. TAFE has been IMT’s partner for many decades, since - In India, the importance of agriculture can be easily recogthey started technology cooperation in 1962. TAFE, which is nised by the fact that 58% of the workforce is engaged in the the oldest player in the region, sells approximately 750 tracsector. Apart from Indian agri-machinery, such as tractors and tors annually in this region and will produce IMT tractors for irrigation equipment, there is interest in Serbia for imports Southeast Europe, as well as other markets with which Serbia of Indian tropical fruits, such as mango, papaya, banana and has FTAs. We hope that production will start soon, as TAFE pineapple. Indian tea and coffee are also in demand in Serbia. ■ plans to produce around 5,000 tractors in the first five years. AGRIBUSINESS

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CORPORATE SBERBANK Srbija JSC

- Credit insurance, which represents insurance on the collection of receivables, with the support of the Serbian Export Credit and Insurance Agency (AOFI).

FOREIGN TRADE Since first appearing on the Serbian market, Sberbank Srbija has been paying special attention to foreign trade and constantly improving its range of services in that domain. Contributing significantly to this fact is certainly the parent bank’s longterm presence in the area of foreign trade, particularly in terms of trade related to the territories of the Commonwealth of Independent States (CIS). As a direct result of these activities, we have recognised significant participation in total foreign trade and transactions in Russian roubles, with a continuous growth tendency, thus confirming Sberbank Srbija’s strategic orientation when it comes to cooperation with companies focused on the Russian and CIS markets. As the latest programme in this domain, in cooperation with members of the Sberbank Group, the “Bridge” project has been launched and should provide the desired level of expertise and enable adequate instruments and mechanisms for financing foreign trade activities.

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It is worth noting that the strategic orientation of Sberbank Srbija is not only directed towards the region of Eastern Europe, rather this bank has for many years been nurturing excellent relations through cooperation with clients from EU member states, which has similarly been enabled by continuous cooperation with numerous international correspondent banks in the EU. SOLUTION FOR SECURE EXPORTS Sberbank Srbija’s solution for secure exports is intended for exporters to the Russian market who want to protect against currency risk and simultaneously always ensure they have a guaranteed amount of cash in euros or dinars. Take advantage of the special benefits of this package of products and secure more reliable cash flow planning, as well as transactions covered by credit insurance, ensuring more secure collections of your claims against buyers of your export products. The advantages of the solution for secure exports include: - Termed sale/purchase of foreign currency that ensures funds at a pre-agreed exchange rate in euros or dinars, regardless of exports being conducted in roubles (RUB); - Credit lines indexed in roubles (RUB), which allows transactions to be realised in the event of late payments by foreign buyers;

DOCUMENTARY OPERATIONS Whether you’re engaged in international trade or deal in the sale of goods and services in the country, Sberbank possesses a wide palette of documentary operations products. All types of guarantees are at your disposal: for securing the payment of obligations, for the repayment of advances, tender guarantees, task performance guarantees, guarantees for the fulfilment of obligations within agreed deadlines, customs guarantees and counter-guarantees. CONSULTING SERVICES Our team of experts will select the most favourable method of providing security and payment for you and your foreign trade needs, along with highly professional consulting services related to the sale of goods and services both in the country and abroad, the selection of appropriate financial products, the optimisation of contractual clauses and preparation of draft texts of letters of credit and guarantees. FACTORING If you sell goods or services with deferred payment of up to 180 days, have long-term cooperation with your customers/debtors, and require additional working capital - factoring is the ideal solution for you. Financial resources are at your disposal immediately after the sale of receivables to the bank, which takes care of collection in your place and maintains records of receivables. You also have insurance on the collection of receivables available in certain instances. ■

CORPORATE JELENA MARINKOVIĆ, Executive Director of the Novi Sad Fair’s Sector for Integrated Marketing Communications

Global Agribusiness Leaders In Novi Sad

ur International Agricultural Fair is the best way to present Novi Sad, Vojvodina and Serbia. Its modern concept provides an incentive for international and economic cooperation, integrating improvements in knowledge, production and scientific progress.

The 85th International Agricultural Fair will be held from 15th to 21st May at the Novi Sad Fair. A total of 1,500 participants from 60 countries will present their products and services, while the expected value of the business agreements made there is in the hundreds of millions of euros • The Agricultural Fair provides strong support to the Serbian economy. How many large and important business deals are made there? - The Novi Sad Fair is held in May and brings together all the important agribusiness stakeholders from this part of Europe, along with representatives of other branches that rely on agriculture. The business agreements made at the Fair are of key importance to economic development. As much as 20 per cent of the an-

ago, while visitors today show great interest in innovation and “smart farms”. IT is underutilised in agricultural production in Serbia, but there are buyers for everything that is on offer among domestic visitors.

• Exhibitors come from the farthest reaches • During the 85 years of its existence, the Inof the globe. Did you attract any new ones this ternational Agricultural Fair has become an inyear, whose goods and services were not previstitution in and of itself. What are all the areas ously available to visitors of the Fair? that reflect its significance? - The International Agricultural Fair is the Particular attention among the visitors to the 85th Agricultural Fair largest and most significant agricultural event in Central and Southeast Europe. Its is expected to be drawn by the offer of exhibitors from Russia, who modern concept provides an incentive for will present the latest drones and relevant software for agriculture international and economic cooperation, integrating improvements in knowledge, production and scientific progress. Furthermore, nual turnover of agricultural machinery in Serbia - Between 15th and 21st May, the Novi Sad fair will promote products and services from 60 it promotes the importance of innovation and occurs at the Agricultural Fair, and the contracts countries, with approximately 1,500 exhibitors. represents a synthesis of the experience and and deals made are measured in the hundreds of Firms and companies from 28 countries have achievements of Serbian agriculture, providing millions of euros. applied for direct participation. There will be strong support to the Serbian economy, while significantly more companies from Turkey, its achievements are also measured through the • Are the latest technological and scientific Ukraine and Italy, along with companies from success of its participants. achievements in agriculture, presented at the Russia, the UK and Luxembourg, who were Business and professional events that serve Fair, available to our agricultural producers? absent last year. Offers will also be promoted to cover trending topics, with exchanges of knowl- The Agricultural Fair simultaneously presents the by companies from Austria, Belgium, Bosniaedge and experience, are extremely important. latest scientific achievements in agriculture and Herzegovina, Bulgaria, Montenegro, Czechia, The AgroB2B International Business Meetings opportunities to apply science in agriculture. One France, Greece, the Netherlands, Croatia, India, have been gathering an increasing number of of the necessary steps in improving production Israel, China, Hungary, Macedonia, Germany, businesspeople year on year, with their networkand increasing profit is acquiring new knowledge Republika Srpska, Romania, Slovakia, Slovenia, ing and cooperation having a direct impact on our and applying IT. Satellite-guided agricultural maSpain and Switzerland. ■ country’s economic development. chinery was presented at the fair several years

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CORPORATE VUK RADOJEVIĆ, PROVINCIAL SECRETARY FOR AGRICULTURE, NOVI SAD

Youth Are The Driving Force Of Agricultural Development The focus of agricultural policy in Vojvodina is on small farms and young farmers, and the goal is economic strengthening of farms and raising productivity and competitiveness

ast year, for the first time, the Provincial Secretariat for Agriculture, Water Management and Forestry together with the Ministry of Agriculture launched a competition to support youth in rural areas. In 2018 we shall continue with a number of measures to support young people to stay in their villages and deal with agriculture.

• What current agricultural policy measures do you consider most important for the development of the Province? Who is at the centre of your agrarian budget? - The incentive policy of the Provincial Secretariat for Agriculture, Water Management and Forestry is realised through competitive budget lines for registered farms that can make returns of up to 70% of the investment value for young farmers up to 40 years old, women holders of registered farms and farmers who work in difficult working conditions in agriculture. For all other applicants, the return is up

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to 60%. The focus of our agrarian policy is on small farms and young farmers. Our goal is to strengthen Vojvodina’s farms economically with incentives for purchase of irrigation systems, equipment for production in protected areas, anti-hail nets, investments in equipping livestock farms, to make them more productive and more competitive. For the first time last year,

advance to start an agribusiness and the rest after realisation of the investment. We want young people to stay in their villages and to work in agriculture. We believe that this group of farmers should be a driving force of Serbian agriculture development. We have therefore allocated 200 million RSD in the 2018 Agrarian Budget for support to young people in rural areas.

I believe any type of processing of primary products has its place in the market and in this respect I would not make any distinction between sectors. It is important to create products with higher added value. That is the future together with the Ministry of Agriculture, we launched a competition for support to youth in rural areas. We earmarked 100 million RSD for this agrarian measure known as the Start-Up Programme, whereby we transfer 75% of the funds to farmers in

• Investment in processing capacities contributes to creating added value and expanding export potential. Where do you see the highest potential for new processors? - In current market conditions, there are fewer chances of achieving greater profit-

ability in the agribusiness sector if the farms exclusively deal with primary agricultural production. It is definitely more desirable for the raw material to be processed to higher stages to obtain products with higher added value, which as a rule bring higher income to farms. It is also important that the export of such products also generates a higher foreign currency inflow for our country. In this regard, in 2017 the Provincial Secretariat for Agriculture granted funds through competitive lines for investment in physical assets to improve processing capacities for fruit, vegetables including mushrooms, grapes, wine and strong alcoholic beverages, to co-finance refrigerators, machinery, oil processing equipment, driers for aromatic, spice and medicinal herbs, to introduce EU standards into milk and meat processing facilities. Much greater funds have been allocated than previously. I would like to say that for the first time in 2017 we recognised large winegrowers and subsidised the purchase of equipment for processing grapes into wine. I believe that any type of processing of primary products has its place on the market and in this respect I would not make any distinction

of the Provincial Secretariat for Agriculture, we recognise cooperatives as grant beneficiaries. This is an opportunity to say that the Secretariat in cooperation with the Provincial Secretariat for Education and the Cooperative Union of Vojvodina is working on a project to introduce cooperative association as a subject in secondary agricultural schools, because we believe that students of secondary education, in ad-

I find the beginning of implementation of IPARD to be a great success for the Government of Serbia and the ministry. Now, apart from national support measures for the improvement of agricultural production, farmers are able to use another source of funding, the pre-accession funds of the European Union between sectors. It is important to create products with higher added value. That is the future. • The process of associating farmers and forming cooperatives is very important. Do you consider this to be of key importance to improve our agricultural production and achieve a higher volume of production that we often lack for export? - At the end of 2015, the Law on Cooperatives was adopted, enabling among other things their formation on cooperative principles, and I believe that farmers should associate in that way. Through all agrarian measures

dition to acquiring knowledge in production, must have a sufficient level of knowledge and recognise the importance of and their interest in association. • One of very important projects that has been launched is certainly the irrigation project of the Abu Dhabi Fund. How satisfied are you with its implementation in the field, how big is the investment and how many hectares of agricultural land are covered? - The implementation of the first phase of 11 projects worth nearly 1.4 billion RSD began in the past year, enabling a water supply for

irrigation of an area of over 37,000 hectares, and the funds have been provided from the Abu Dhabi Fund loan. Also, technical documentation for applying for the second phase of construction of irrigation systems has been prepared. These are 13 projects with an estimated value of 2.9 billion RSD, which will enable irrigation of more than 46,000 hectares. Funds for project and technical documentation for the third phase are also

secured, which will enable the irrigation of an additional 33,000 hectares through 14 projects. Through all three phases together, water will be provided to close to 120,000 hectares. The works are carried out according to a planned schedule. • Serbia finally started using the IPARD programme this year. How important is this type of financing to farmers? - By the year 2020, €175 million will be available to Serbia from the EU IPARD programme. The first applications were submitted by farmers for the procurement of equipment, machinery and tractors and investment in processing capacities. I find the beginning of implementation of IPARD to be a great success for the Government of Serbia and the ministry. Now, apart from national support measures for the improvement of agricultural production, farmers are able to use another source of funding, the pre-accession funds of the European Union. ■ AGRIBUSINESS

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CORPORATE STEFAN BABOVIĆ, Chief Operations Officer at Victoria Group

Logistics Services Offer That Saves Agribusiness Companies Time And Money The AgroPort Centre in Bačka Palanka offers agricultural goods warehousing and reloading services, all in one place

t was about two years ago that the Victoria Group opened the AgroPort Centre in Bačka Palanka, which offers a turnkey package of various logistics services that are highly sought after, such as the packaging and warehousing of artificial fertiliser, as well as the reloading and warehousing of mercantile goods. The maximum efficacy and quality of services rendered are guaranteed by the synergy of service offers and infrastructure capacities of the two Victoria Group member companies responsible for this centre – Victoria Logistic and the Port of Bačka Palanka. As a result, the AgroPort Centre achieved 300,000 tonnes of reloaded cargo last year, despite unfavourable weather conditions.

crops. We expect even better results in 2018, given that we have already made arrangements for the packaging and warehousing of 100,000 tonnes of fertiliser, in addition to having made significant investments in equipment and increasing capacities. The strategic position of our AgroPort Centre is incredible, thanks to its connection with Pan-European Corridor 7, which connects

River transport is the most cost-effective form of transport – particularly when it comes to the transport of goods via the Danube, which is several times cheaper than the alternative “Our plans for the current year are even more ambitious. We ended 2017 successfully, despite the cold winter blocking transport via the frozen Danube at one point, as well as the dry summer reducing yields on most field

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it with countries from the North Sea to the Black Sea. It goes without saying that river transport is the most cost-effective form of transport – particularly when it comes to the transport of goods via the Danube, which is

several times cheaper than the alternative,” says Stefan Babović, Chief Operations Officer at Victoria Group. The investments made in the fertiliser packaging line have increased its capacity by 100%, extending it to 800 tonnes per day. When it comes to fertiliser warehousing, AgroPort has a capacity of 30,000 tonnes of packaged product in open warehouses and an

additional 5,000 tonnes in closed areas. For the warehousing of mercantile seed, there is floor storage with a capacity of 30,000 tonnes. A new service introduced towards the end of 2017 is the sampling of mercantile goods by means of a vacuum probe, which enables an even faster flow of goods and more precise determining of the seed quality, thus enabling an offer that is as comprehensive as possible and ensuring full customer satisfaction with the services of the AgroPort Centre in Bačka Palanka. ■

CORPORATE DRAGAN CRNJANSKI, CEO, Al Rawafed Serbia

Serbia Could Be A High-Quality Food Brand

Serbia can find “niche markets” where it will, primarily with high-quality food, succeed in achieving the best prices on the world market, which will ensure production becomes more profitable highly profitable crops, in order to secure a return on the investment within a reasonable timeframe.

l Rawafed Serbia, which was founded with the aim of contributing to the advancement and development of agriculture in Serbia, has launched one of the largest projects in the field of irrigation in Serbia, worth about 22 million euros

• It is known that your company monitors global and market trends, especially in organic products. What are your plans in this production and which markets are you focused on? - We currently have 120 ha of certified land for organic production. Our plans are focused on the organic production of vegetables, but also other “alternative” crops – provided they are accepted by the market. Unfortunately, the share of organic agri-

• Al Rawafed Serbia was established with the purpose of investing in the development of agriculture in Serbia. How would you assess the comparative advantages and disadvantages of the agriculture industry in Serbia? - One of the great advantages is the absence of GMO production, and I hope that it will remain the case in the future. On the other hand, Serbia cannot compete in terms of quantities with large cereal producers, but it can find so-called “niche markets” where it will, primarily with high-quality foods, succeed in achieving the best possible prices on the world market, which will certainly

• Serbia last year started implementing a strategic project for the construction of irrigation systems, while Al Rawafed Serbia also plans to invest heavily in such projects. What kind of projects and investThis entire irrigation concept will cost around 22 million Euros. ments does this relate to? Around 13 million euros has already been invested, with the - The project launched by Al Rawafed remaining amount to be fully invested by the middle of next year Serbia is one of the largest projects in the area of irrigation in the country. We process about 10,600 ha of ploughland in culture in Serbia is only about 2%, unlike some make production more profitable. From that to Vojvodina, while an irrigation system on 1,700 European countries where it can reach up to 20 achieving the status of a brand, as a country with ha is currently in operation. By the end of the per cent. This fact leads us to focus on exports high-quality food, is not an insurmountable step. ■ project, which we expect to happen before next and foreign markets, primarily European, but AL RAWAFED SERBIA Ltd. is the result of a joint year’s watering season, it is planned for the latalso in the Middle East region. investment by the Republic of Serbia and agriculture est watering systems to cover about 6,400 ha. We also encounter significant logistical investment company Al Rawafed Holding from This entire irrigation concept will cost around problems in planning exports of highly profitable Abu Dhabi. The main goal is to contribute to the 22 million Euros. Around 13 million euros has alorganic products to foreign markets, especially advancement and development of agriculture in ready been invested, with the remaining amount those which require air transport. Large producers Serbia through investments in modern mechanito be fully invested by the middle of next year. in Western Europe have the support of organised sation, a new logistics structure and the highest Such a system provides exceptional comparacargo fleets when sending hundreds of tonnes of quality inputs. The company’s main activity is tive advantages in agricultural production and a their goods to the markets of the Middle East on conventional and organic production of cereals. It certain level of security in terms of protecting a daily basis, at very competitive prices. As we has to date invested more than 50 million euros in crops from drought. It needs to be considered in Serbia still don’t have these opportunities, we mechanisation, silos, irrigation systems and land. that it also implies significant operational costs, barely achieve competitiveness and an adequate The company currently has 130 employees. so it is necessary to turn towards the cultivation of presence on those demanding markets.

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CORPORATE VLADIMIR VASOJEVIĆ, Belchim Crop Protection SRB doo

Innovative Approach In Agriculture With Professional Crop Protection Our ultimate goal is to be part of producing better and safer food together. By understanding the real needs of the local market, and with a team of dedicated people, we serve agricultural producers professionally in achieving good yields and high quality crops

elchim has a knowledge base from the most agriculturally advanced European countries, such as Belgium, the Netherlands, France, Italy and Germany. This great potential is used to familiarise a growing number of agricultural producers from Serbia with advanced agricultural technologies. • Your company is working constantly on the development and implementation of new technologies and simultaneously expanding its business. Do you have different products for each market or are there some universal products? - We believe in a professional approach to plant protection and believe that new solutions must be available to every diligent agricultural producer. Although we are an international company, we consider that there are no universal solutions for all markets, especially in such a complex economic sector as agriculture. Our solutions are the result of several decades of monitoring and research under realistic conditions, because plant protection is a dynamic area of agriculture that requires a holistic approach, rapid adaptation and flexibility. We have combined functional knowledge and the quality of our innovative products in the concept of professional plant protection and that’s why we have results.

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• You are also known for your Pro Start technology. What reflects its revolutionary nature? - Belchim develops professional solutions in all branches of plant production: winegrowing, fruit growing, vegetable and field crop cultivation. We are proud that we have managed, in a relatively short period of time, to provide our agricultural producers with access to advanced technologies, in particular for the protection of crops. What is revolutionary is that we observe

we have enabled our agricultural producers to preserve the protein balance from the start, with the application of herbicides. This means a good yield, but also the highest levels of protein and oil. • When will we approach average European yields in the agrarian sector? - Serbia is a country with a lot of potential. In my work to date I’ve had the opportunity to get to know a lot of high-quality people from the agricultural sector across Europe.

For us, there are no small and big market segments or small and big producers, rather only optimal solutions that can help improve the competitiveness of our country’s agriculture things from the initial premise that plant growth is not possible without the proteins that are the foundation of life. There are two reasons why we cultivate oilseeds, soy and sunflower: oil and proteins, both for human consumption and animal fodder. Traditional approaches to the protection of these cultures are based on the application of herbicides, which prevent the development of harmful weeds on the one hand, while on the other hand they prevent the synthesis of proteins in cultivated crops. This harmful effect often isn’t taken into consideration, as it is not seen with the naked eye. With the development of the revolutionary PROStart™ technology and application of the innovative ‘Proman’ formula,

On the basis of that, I can say that we have both knowledge and experience; that we can keep pace with world trends and accept those technologies that can rank us highly in the world game when it comes to achieving high yields. There are already serious professional producers in Serbia and companies that are involved in this game, and which have already reached the very top with their excellent yields and product quality. Our role, at least as we see it, is to share and connect as much as possible, doing everything in our power to help producers who can make advancements. Only in that way can we count on average yields being better, and we see this as a huge challenge. ■

CORPORATE

The Best Of Nature

he story of nutrition and health, and the connecting of these two categories, is a topic that is constantly receiving greater attention. The current situation in Serbia is far more favourable than it was a decade ago, though the biggest obstacle is still continuity in production, which is certainly also linked to continuity of offer. As such, Univerexport, together with the launch of its first organic products, is simultaneously continuing its already-established cooperation with domestic certified organic producers and building new cooperation with large Italian organic food brand Natura Si – creating PriroDa sections in retail outlets. PriroDa is a specific “shop within a shop” concept that has been conceived according to the concept that of taking the best from nature and returning the same to nature. In this way, one large domestic retail chain is complying with global trends of high standards, in which organic food has a priority position and represents the highest degree of social responsibility. The assuredness and trust of consumers has been important to Univerexport since the company was founded in 1990, and the next step had to be offering the consumers products that have been produced internally and only for them. On the agricultural estate

in Lipar, close to Novi Sad, Univerexport cultivates various types of cereals, oil crops and legumes using ecologically clean and healthy soil. High-quality certified organic oil, organic wholemeal flour, millet and organic bread loaves and buns can be found as final products on the shelves of retail outlets. In the period ahead, the company plans to expand production of vegetable crops and their processing. At the foundation of everything today are many years of investment in this area,

Univerexport, one of the leaders when it comes to the offer of organic products, made a strategically important decision for the company's operations in 2011 and launched its own in-house production of organic food. On its own estate in Lipar, on an area of around 55 ha, it planted its first organic plantation, with the aim of offering consumers the healthiest organic produce provided by nature consumer and the best that can be done for them. In this way, the offer of retail outlets includes end products that have an entire journey, from field to shelf, that is known and monitored. Zoran Stojanov, an organic production manager at Univerexport, notes that the whole idea of organic production represents a moral code of the highest degree, the last step en route to achieving the most socially responsible individuals and various economic organisations. The message that

On the agricultural estate in Lipar, close to Novi Sad, Univerexport cultivates various types of cereals, oil crops and legumes using ecologically clean and healthy soil. High-quality certified organic oil, organic wholemeal flour, millet and organic bread loaves and buns can be found as final products on the shelves of retail outlets lots of education, as well as great intellectual and financial investments. Along with its own organic production, it is developing even more personal relationship and building even more trust with consumers, because this is not an area in which one profits – rather it is an area focused on the

the PriroDa concept provides to the consumer is that we are all becoming socially responsible together; that we consume organic food that is both contemporary and good for our health, and in this way we will preserve the environment and a healthy planet for the generations to come. ■ AGRIBUSINESS

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EU: GREEN LIGHT FOR ORGANIC FOOD AND LABELLING MEPs gave the green light last month to a new law on organic food production and labelling, with a view to boosting organic production and ensuring that only high-quality organic food is sold in the EU. The main features include: Ensuring the high quality of organic food Boosting EU organic food production Avoiding contamination from chemical pesticides or synthetic fertilisers Four years after the entry into force of this regulation, the Commission will report back on how efficient the EU anticontamination rules and national thresholds are and, if need be, come up with a draft law to harmonise them. The agreed text still needs to be formally approved by the ministers of the Council of the EU before it can enter into force. It will then be applicable as of 1st January 2021.

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CORPORATE BOGDAN ŽIGIĆ, GENERAL MANAGER OF BIOFOR SYSTEM

I always found the question strange: Is the reason for your trip work or pleasure? For us at Biofor System, work is a pleasure. We make soil good. That’s a great source of happiness for us. By listening to the needs of the land and cultivating plants since 2006, we also develop and produce bio-compost

We Listen To The Land’s Needs

ur first products were created through scientific projects with the Ministry of Science and Technological Development, and through cooperation with the University of Belgrade’s Faculty of Agriculture. The results of applying Biofor’s bio-compost are based on effects of increasing soil fertility and improving the nutrition of plants. The active components of Biofor bio-compost are selected strains of useful soil microorganisms. Their application has the direct impact of improving the physical and biological properties of the soil. The efficiency of Biofor technology is reflected in the large number of the most active soil microorganisms, which – with the use of our bio-compost – “return” to their natural habitat – the soil. This is reflected in two basic characteristics that describe the use of Biofor technology: - An exceptionally favourable economic

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ratio of invested/extracted (The 12-year average is 1:7 in production conditions); - Increasing the fertility of each field Perhaps the best illustration of the story came when one old head explained to us what Biofor does: “Sonny, our field looks like a barn where only two of ten cows are left, but we force them to yield the same amount of milk. Biofor returns your cows to the barn, so you have something to hope for.” Biofor technology uses the tool of the land itself. Some 90 per cent of soil processes are performed by microorganisms, which are essential for a plant to extract nutrients from the soil. The ingestion of mineral fertilisers is essential, but how much of the mineral fertiliser will reach the plant depends on the activity of the soil. Biofor Active is a liquid microbiological fertiliser that mobilises nutrients in the soil. Biofor Active is our best-selling product, which contains bacteria mobilisers

for phosphorus and potassium from the soil, as well as nitrogen fixers that enrich the soil with nitrogen from the air. The beauty of this process is that there is no loss of nitrogen in this way, because nitrogen is supplied every day from the air, mostly in the root secretion zone (rhizosphere). The rhizosphere is densely inhabited by soil microorganisms that attract plants which release up to 25% of the product of photosynthesis, mostly sugars, in the environment of the root. These facts show how important microorganisms are to plants. The plant gives microorganisms a meal in order for them to work for it. There is no free lunch in nature. Plant nutrition is the amount of nutrients attained by the plant from the root via the soil solution. The plant can adopt up to 3-5mm around the root. All mineral matter that is abundant in most soils is inaccessible to the plant if not in the root zone. If you are using Biofor technology, we work on the soil, or on the water-air regime, making the soil looser. This kind of balanced diet makes Biofor Active extremely effective even during dry years. In order to increase the profitability of your work, you must either have a larger volume of production or be more effective in what you already produce. The most valuable thing that anyone can own is land. Unfortunately, very little is invested in the land itself.

Removing burnt manure is the only soil care measure. The basic logic is that the land should be fertile this year, while it should also be fertile for our children. If we only take from the land, there will very soon be nothing left to take. There is ever less manure. Manure introduces organic matter and microorganisms to the soil. The stagnation of harvest leftovers, with Bioplug treatment, in practise gives the effect of applying manure. Behind the crop remains a large amount of organic matter, which represents an excellent basis for microorganism humifiers contained in the Bioplug, which builds up the degraded humus. The easiest thing is to turn our head away and say that my soil is fertile and I have no problem with my land. It’s easy to bury your head in the sand, but then bury your spade in your field. The vast majority of the field is extremely compact. If there are no worm in your fields, if you can walk in the field the day after good rainfall, if the soil turns to dust as you sow seeds, if the harvest leftovers don’t decompose within a year, if a water mirror forms or you have standing water in your fields, if you have pronounced phytotoxia in your fields, if you have the impression that mineral fertiliser isn’t working, if your land is acidic, if your field hasn’t seen manure for years, if no hybrid is any good for you, if it’s difficult to plough and you have to buy a stronger tractor – then continue

Agricultural production has become extremely intense. The application of herbicides and use of heavy machinery, new hybrids and fertilisers, have led to increased yields. The question is only at what price. The price of such production is soil degradation. The planet is alive, the earth gives birth, but the earth also seeks. For many years we have taken a lot from the land and given back very little in return. The soil has become dense – there is a reduction in land cavities (pores) that are filled by air or water. When discharges of air from the soil decrease, so does the total number of

Man often tries to be “smarter” than nature. The efficiency of Biofor technology is based on respect for nature and scientific discoveries confirmed in practise reading this article. We all have the same feeling that the land has changed. In 30 years we “lost” about 30 tonnes of humus, which is a reduction of about two per cent. Humus is permanently lost, or our crops have taken it with yields. You will not make up for lost humus with mineral fertiliser. Humus is the fruit of the work of soil humifier microorganisms. Humus binds soil particles that would otherwise be a bunch of infertile, dead mineral substrates. Humus builds transformed organic matter and microorganisms. The increase in the human population, coupled with a reduction in the level of arable land, has imposed the imperative of producing higher yields of food per unit of arable land.

microorganisms and their activity. This results in changes in the physical characteristics of the soil or the water-air regime of the soil. The use of heavy machinery, a lack of manure and uncontrolled use of pesticides have led to a change in the number and type of inhabitants of the soil. Worms and microorganisms are an integral part of the soil. Soil that is devoid of life does not yield anything. The use of Biofor technology brings soil back to life. The biogenicity of soils increases, or soil to which Biofor is applied is more fertile, easier to plough, with better structures making it better at receiving and retaining moisture. Its effect on crops is visible immediately after application, because plants have stronger developed roots, higher

habitus and a better health status. Higher yields come as a result of the good condition of crops and soil, therefore Biofor guarantees that you will have high yields. Biofor System has experience in the application of bioremediation. Bioremediation is the purification of soil and water contaminated with organic pollutants, through the use of the natural properties of microorganisms. The most common types of pollution we have worked to clear are petrol, oil fuel, plant oils, PCBs, pesticide residue and the like, where special microorganisms applied to these sur-

faces break down these organic compounds that are difficult to degrade. A total of 12 agricultural engineers from Biofor System are constantly present in the fields of the regions where our products are sold. Every year our products are applied to around 150,000 hectares of soil in Serbia, Croatia, Bosnia-Herzegovina and Slovenia. Man often tries to be “smarter” than nature. The efficiency of Biofor technology is based on respect for nature and scientific discoveries confirmed in practise. Biofor products are successfully applied in crop, vegetable and fruit farming, while they are also completely suitable for use in organic production. Try our new BioGnezdo product for the treatment of corn, sunflower and wheat seeds, BioEho for foliage application and Biofor Soya Liquid, a proven liquid formula product for the treatment of soybean seeds prior to sowing. For more information, visit www.biofor.rs ■ AGRIBUSINESS

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NEWS AROUND THE WORLD NETHERLANDS

Europe's Largest Agricultural Exporter The Dutch agriculture sector broke yet another export record in 2017, totalled €92bn last year, making the Netherlands the largest European agricultural exporter in the world, and the world’s second-largest after the U.S.. Not all exports were produced in the Netherlands, however. Some €25.5bn of the total was in the form of re-exports from other countries. Flowers and flower bulbs once again topped the list of Dutch exports, followed by dairy products, which overtook meat as the second-largest Dutch agricultural export last year. Germany is the most important export market for Dutch farm products, accounting for sales of €23.4bn in 2017, or roughly 25% of total exports. At the same time, the Netherlands is Germany’s most important agricultural export market. After Germany, the biggest markets are Belgium (€10.4bn), the UK (€8.6bn) and France (€8bn). Exports of other agriculture-related products, such as farm equipment, fertilisers and pesticides, totalled €9.1bn, bringing the sector’s total to over €100bn for the first time.

INDIA

Digital Platforms Ease Farming Exports In line with the Digital India initiative, the Indian Government has developed three online portals to ease exports of farm products from India and reduce transaction costs. The digital platforms, developed by the Export Inspection Council, an official export certification body, have integrated the entire export food chain by linking primary production, chain catch, aquaculture pond, dairy farms and apiaries. Processing units, testing laboratories, official controls and exports will be completely traceable. The One Lab One Assessment portal provides a unified approach to all stakeholders, such as accreditation bodies, regulators and laboratories, by bringing them together on a common platform to aid simplified procedures. The Export Alert Monitoring portal monitors non-compliance raised by importing countries. The portal will enable the monitoring of alerts and action taken by multiple organisations involved in initial certification in the food safety & biosecurity and analysing the trend, understanding trade barriers to reduce alerts and enhance export trade.

HUNGARY

Among Europe’s Fastest Growing Agriculture Sectors Hungarian agriculture is one of the fastest growing agrarian sectors in Europe, and in the last eight years it has grown by over fifty per cent and created more than 70,000 jobs. The sector’s performance is constantly increasing: livestock farming has increased by 40 per cent and crop production has increased by 63 per cent since 2010. Hungary today exports to more than 100 countries, while its agriculture and food industries play an outstanding role in generating the country’s export surplus. The Minister said that 200,000 hectares of state land had been sold within the framework of the “Land for Farmers” programme, thanks to which 30,000 Hungarian farmers, a third of whom are young farmers, have acquired their own land.

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TAIWAN

New Market For Italian Pork

Pork products from Italy, including the renowned Parma ham, are now allowed on the Taiwanese market following joint work by the European Commission and the Italian authorities. The opening of this market is expected to generate sales of Italian pork products worth around €2 million. The approval for fresh meat is effective immediately, but it will take several months until hams will be available for sale, as they have to complete their maturation process before being placed on the market. The opening of the Taiwanese market is the result of several years’ work engaging with the Taiwanese government, academia and the wider public in a dialogue to explain the EU’s comprehensive, multi-layered control systems, recognised worldwide as meeting the highest sanitary standards. The decision of the Taiwanese authorities will also send an important and positive signal to other Asian governments to fully recognise the EU’s stringent veterinary controls, which comply fully with international standards and guarantee the safety of exported meat products.

Highest Revenues On Record For Fishing Fleet According to Seafish’s Economics of the UK Fishing Fleet estimates, British fishing saw the highest annual value of landings on record in 2017, despite increasing fuel costs. The Seafish report, now in its twelfth year, demonstrates that fishing revenues have risen by €16 million since 2016 to a total of €1 billion, and with landing volumes up by 10,000 tonnes. Preliminary estimates by Seafish reveal vessel owners are seeing rising fuel prices, with fuel spend now costing up 12% of total income - 2% higher than in the previous year. Despite this, the UK fleet saw an increase in the number of active fishing vessels. The number of active UK fishing vessels increased in 2017 to 4,662, up from 4,637 in 2016. Around 1,700 of these vessels were low activity, with a fishing income of less than €11.45, while a further 1,600 vessels are classed as inactive.

Future Of Common Agricultural Policy - CAP

Water is an essential component of agri-food production. But without sufficient, good quality and easily accessible water, European agri-food production could be under threat. On average, 44% of total water use in Europe is on agriculture, reaching as high as 80% in some regions. With a rising global population and climate change increasing the risk of adverse climate conditions such as droughts, pressure on the natural resource is growing. This is why the European Commission (EC) has developed both short and long term strategies to ensure more sustainable water use. Under the current common agricultural policy, the so-called crosscompliance mechanism contributes to a sustainable water usage by obliging farmers to meet specific agri-environmental targets, including for water, in order to receive their direct payment support. EU research and innovation in the sector is also helping in making water consumption more efficient. Through funds such as Horizon2020, support is given to projects innovating and using precision farming to improve water usage. One such tool, for example, allows farmers to estimate the water consumption of their crops while checking if it complies with the amount of water they are legally allowed to use for irrigation. Another tool, known as OPTIWINE, can be used to calculate the exact quantity of water to apply to vineyards, improving grape quality while reducing water consumption. The calculations are based on satellite data and data collected by weather, plant and soil sensors installed on the ground. A task force has already outlined the main threats to water quality and availability in the EU and is currently setting up a knowledge hub on water and agriculture. The hub is due to be fully operational by the end of 2018, and will link and integrate existing sources of information while generating new knowledge on every aspect of water use. The hub will be widely accessible via an internet portal. The EC will continue to encourage and invest in sustainable water usage in agriculture. Commission has proposed a new way of working with member state to ensure funding is targeted to where it is needed most. In the context of water and agriculture, this will allow EU funding to better respond to local needs.

ALBANIA

Financial Scheme To Support Agriculture In 2018 The Albanian government has approved an agricultural financing scheme worth €20 million for 2018, with the aim of boosting exports. The national funding scheme will focus on increasing agricultural, livestock and food exports, and on attaining food safety standards. The financial scheme will pave the way to boost production and exports of fruits, vegetables and nuts, as well as food and agro-processing industry products in 2018, noted the country’s agriculture minister. Low investments and structural problems, such as the small size of local farms and crop fields, are some of the main challenges faced by Albania in the area of agriculture, noted the European Commission (EC) in a press release issued after last November’s meeting of the EU-Albania Stabilisation and Association Agreement subcommittee on agriculture and fisheries. Source: seenews.com

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CORPORATE BOGDAN LABAN, MAYOR OF SUBOTICA

City Of Infinite Development Options The value of the investment from the Abu Dhabi Fund in the City of Subotica is €4,748,042, without VAT, and the first phase can irrigate 15,000 hectares

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he city of Subotica covers 11 cadastral municipalities: Donji grad, Novi grad, Bajmok, Bački Vinogradi, Bikovo, Čantavir, Đurđin, Žednik, Palić, Stari grad and Tavankut. There are approximately 6,300 farms registered on the territory of the city, with an average of over 10ha of agricultural land per farm. The Decision on the Budget of the City of Subotica for 2018 allocates RSD 62,658,000 for the protection, regulation and use of agricultural land, and RSD 50,000,000 for the regulation of field roads.

Of the total available land (89,636 ha), arable agricultural surfaces cover 79,218 ha, with wheat as the key culture grown across 55,114 ha, and industrial plants on 8,578 ha. Approximately 6,300 farms use 75,519 ha, with tilled land and gardens covering 69,509 ha, 78 percent of the total available land. On sown surface areas of tilled land and gardens, cereals are dominant with 79.30%, industrial plants 12.35%, and fodder plants 4.55%. Corn and wheat are the cultures with the highest share of the cereal fields, at more than 90% (corn is on its own around

62% and wheat around 32%, followed by barley, oats, rye and other cereals). • Young farmers of Subotica submitted the largest number of projects for the Ministry call. How would you comment on this? How would you assess cooperation with the state, or the Provincial Secretariat, and to what extent do farmers use their funds for agriculture?

of Subotica. How would you assess implementation in the field, what is this investment about, and how many hectares of agricultural land are being covered? - The investment from the Abu Dhabi Fund programme in Subotica is related to the TisaPalić subsystem, and amounts to €4,748,042 without VAT. The first phase can irrigate 15,000 ha. After the difficult weather conditions during the winter period and during

eries are there and what are the native wines of this region? - The territory of the city of Subotica contains many wineries, from smaller family wineries and pleasant wine cellars to world-class wineries known outside our borders. Some of the better known wineries, such as Vinarija Zvonko Bogdan, Vinski dvor, Tonković, Maurer, Hompot, Petra, Majkin salaš, DiBonis and Čuvardić are open for tourist visits.

- This was an option provided for young farmers based on the ‘RuleIn 2017, over 100 farmers from Subotica, aged under 40, applied book on incentive programmes to the Ministry of Agriculture, Forestry and Water Management for diversification of income and and the Provincial Secretariat for Agriculture, Forestry and Water improvement of the quality of life Management, and gained the right to subsidies in rural areas through support for young farmers’, issued by the ministry, and the Rulebook on awarding • There is a lot of talk about investment in funds for co-financing the procurement of March, work was continued in mid-April and agriculture and the importance of its deagricultural machinery on the territory of AP due to the good weather forecast for the Vojvodina in 2017’, issued by the competent coming months, the completion of works velopment for our country. Does the City provincial secretariat. is planned for August this year. of Subotica plan to invest in processing Young, computer-literate people find Construction of the regional hydrocapacities in future? it easy to follow the relevant websites of system that should enable large increases - Several natural and legal persons from the Ministry and Provincial Secretariat for in irrigated areas, currently amounting to Subotica have applied for the national call Agriculture and find options to solve their 1-2 per cent of the total area, has been for awarding funds for investment in the field existential issues when working in agriculture. entrusted to the Dunav-Tisa-Dunav Water of cattle farming, fruit farming and energy Management public enterprise “Severna production from renewable sources - biomass. Bačka” in Subotica. The investor Andex d.o.o. Subotica was the • One very important project that was only one to receive a positive assessment, and started is certainly the irrigation project was thus awarded 30 ha of land for investment from the Abu Dhabi Fund. The largest pro• The territory of the city also covers Palić, in processing capacities (industrial fruit). ■ known for its wine tourism. How many winject is located on the territory of the City AGRIBUSINESS

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DIGITAL AGRICULTURE WILL GROW The digital agriculture market is predicted to triple to $15 billion by 2021. This growth includes the value of software, algorithms, platforms and links between farming and technology hardware. The highest market potential is seen in North America (33% of total global potential), followed by Europe (24%) and South America (19%). Eleven per cent of senior executives also expect digital agriculture to create 10% more value than traditional agriculture from time savings and increased output, while 42% predict time savings of more than 10% and 46% foresee an increase in output of more than 10%.

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CORPORATE PETROS GEMINTZIS, CEO, HELLENIC SUGAR INDUSTRY

Adjusting To EU Conditions Of Sugar Production And Trade Hellenic Sugar Industry will this year launch its sugar beet processing operations with a markedly smaller number of contracted hectares than was the case last year

the production of sugar beet and sugar, as only to reduce the area of plantations as they he abolition of the quota in the EU led well as supporting measures to producers. await the stabilisation of the market and a to the hyperproduction of sugar, which We want to transfer these experiences better situation in terms of price. resulted in a drastic fall in the price of to our country, with all the necessary adjustHellenic launched cooperation with the sugar in the EU and in our country, as ments, with the aim of ensuring the well as on the world market, totalling increased quality of sugar beet and as much as 35%. price competitiveness for the sustainChanges to the conditions of sugar able development of the sugar industry. production and trade in the EU imOur company recognises the pacted directly on the competitivegreat potential of this industry, ness of our industry, and it is for these which is why we invested last year reasons that sugar exports have been significant funds in raising the prostagnating for some time. duction capacity of our sugar plants It is very important to note that in Crvenka and Šajkaška, thereby Serbia is the largest producer and only ensuring competitiveness in terms exporter of sugar in the Balkans, and of sugar beet processing. that it has great possibilities of export Our vision is to work together to CEFTA countries. This potential we should not miss out. Moreover, if we were to follow the example of our neighbours in Croatia, Our vision is to work together with our producers and, starting as well as the examples of other counfrom this year and continuing in the next three to five years, tries that have significant subsidies, to achieve a performance and quality of sugar beet, as well we would be even more competitive, as a price of sugar, that is absolutely competitive and such that Serbia could expand its exports to new markets like those of sustainable over the long term Greece, Bulgaria, Romania etc. The price of sugar beet is 15 % with our producers and, starting from this Novi Sad Faculty of Agriculture three years ago, lower this year than it was in the previous two year and continuing in the next three to five in order to learn new technologies for sugar years. This lower price has also led to reduced years, to achieve a performance and quality beet production, with the aim of increasing interest in planting this crop. of sugar beet, as well as a price of sugar, that and improving performances in the field. In However, we can boast of the fact that our is absolutely competitive and sustainable cooperation with this faculty, we also took producers are with us in difficult years and that over the long term. ■ the initiative to study the state in the EU, i.e. they haven’t given up on sugar beet – opting

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IRENA STOJANOVIĆ, DIRECTOR OF AGRICULTURE DEPARTMENT, HELLENIC SUGAR INDUSTRY

Green Sugar

Global warming is a global problem, and companies are responsible for showing greater commitment and transparency in eliminating environmental risks. Greek company Hellenic Sugar, which increasingly applies the corporate social responsibility strategy, for the past 15 years, has been able to become active in environmental issues, human resources and the local community in Serbia

create opportunities for the production of of motor gasoline. Bioethanol is a renewable s Director of Agriculture Departbioethanol, is in the making. Due to the large fuel because it is derived from biomass, ment Irena Stojanović points out, fluctuations in the price of sugar and the and ecologically because it is neutral from during the current and the next obligation to mix bio-ethanol with fossil fuels, the aspect of greenhouse gas emissions. year, 5 million Euros will be invested the factory in Crvenka, has the capacities “The company can become the leader of in the innovation of the factory to modernand capabilities. However, it is also necessoutheastern Europe in the production of ise the production line. The innovation will bioethanol, the fuel of the future because reduce costs, increase energy efficiency sary that Serbian authorities play they roll the sugar factory in Crvenka offers the as well as the productivity of the factory in terms of granting subsidies to sugar beet and safety at work. Paying great attention to the preservation of the environment in Vojvodina, the sugar factory as a primary energy source uses natural gas. The vision of the company is to become the leader of southeast Europe in the production of bioethanol, the fuel of the future and the Sugar Factory in Crvenka has the potential and ground base to achieve the goal. At the Climate Change Summit, “One Planet” held in Paris, world leaders discussed investment and financing of projects in the fight against global warming. Among the leaders were the President of Greece Alexis The company Hellenic Sugar can contribute to the fight against Tsipras and the President of Serbia, global warming by producing bioethanol that has a significant Aleksandar Vucic, who promised place as a renewable and environmentally friendly biofuel that with their responsible work, all obligations set for 2020 and 2030 intended for the replacement of motor gasoline will be fully fulfilled, as this is the only way to achieve victory in the possibility and a real basis for achieving fight against global warming. producers since cost of seeds and artificial this vision,” emphasised Irena Stojanović. The company Hellenic Sugar can contribfertilizer as well as the guaranteed price of In regards of new trends and goals in purchase are already known, the production ute to the fight against global warming by the preservation of the environment, the of sugar beet would be one of the most costproducing bioethanol that has a significant elaborate the factory will enter into the effective crops, and the production of “green place as a renewable and environmentally new era, following the world trends, and oil” is guaranteed, said Irena Stojanović. ■ friendly biofuel intended for the replacement AGRIBUSINESS

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EU TARGETS UNFAIR TRADING PRACTISES The European Commission is targeting the most damaging unfair trade practises to grant farmers and SMEs greater certainty and less need to manage risks over which they have little or no control. Unfair Trading Practises (UTPs) are Business-to-Business practises that deviate from good commercial conduct and are contrary to good faith and fair dealing. They are usually imposed unilaterally by one trading partner on another. The food supply chain (FSC) is particularly vulnerable to unfair trading practises due to large differences in bargaining power.

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EU AGRICULTURAL OUTLOOK:

Markets And Income 2017-2030 The total utilised agricultural area has continued to decline in recent years, albeit at a slower pace. This trend is expected to continue, bringing the utilised agricultural area to 172 million ha by 2030. The same trend applies to arable land over the outlook period. The share of permanent grassland in total utilised agricultural area will remain stable, in line with current CAP requirements

particularly if these occur in successive years. With the end of sugar quotas, EU production he biofuels market continues to be driven For oilseeds, the expected lower demand for is projected to increase by 12% by 2030, makby changes in policy. Developments after vegetable oils from the biofuel market will cre2020 are hard to anticipate as they will ing the EU a net exporter. The increase will be take place in a new, as yet undecided concentrated in the most cost-effective regions, ate pressure on the rapeseed area. Increasing policy environment. Under current assumptions, driven by increases in sugar beet yield. EU cereal demand for protein meals will mainly be met by post-2020, the biggest driver will be the reduction production is expected to grow further to 341 increasing soya bean imports and by domestic in overall petrol and diesel use. million t by 2030, driven by feed demand, good soya bean production. Protein crops recently We expect reduced fuel use to result in marked export prospects (in particular for wheat) and experienced a strong revival, with record producreductions in biodiesel and ethanol consumption increasing use of cereals in industry. However, tion in 2017/2018. This was driven by a favourable by 2030. Given the existing production capacity, stronger growth will be held back by the limited policy environment and good demand. the production of biofuels should decrease less potential for expanding the areas under cultivaHowever, area growth may slow down over than consumption and be favoured over imports. The current lack of long-term Given the existing production capacity, the production of biofuels investments continues to hamper the development of advanced biofuels. should decrease less than consumption and be favoured over imports Global sugar consumption is continuing to grow. However, changing the outlook period, given pressures on feed consumer preferences and increasing health tion and by slower yield growth in the EU than in prices and input use. This, together with some concerns are expected to reduce EU total sugar other regions of the world. Cereals stocks are yield improvements, will lead to a mild increase consumption by 5% by 2030 in favour of isoexpected to stabilise below historical levels, in in production in the EU. Feed use is expected to particular for wheat and barley. glucose and other sweeteners. World sugar rise further over the outlook period in response Prices are expected to recover from their production is on the rise again after two years of to more poultry and dairy production and more current lows to above â&#x201A;Ź170/t on average and at global deficit, steering the sugar market back into intensive beef production. Feed prices, remainclose to â&#x201A;Ź194/t for common wheat at the end surplus. Increased sugar production will maintain of the period. We could see price spikes during pressure in 2018 on the already low world white ing below the high levels of recent years, will the outlook period caused by climate events, sugar price before it stabilises. contribute to the animal production increase.

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This growth can be seen as moderate when we MILK AND DAIRY PRODUCTS around 500,000 t of milk equivalent per year, consider that the EU increased deliveries by 10 Despite the difficulties faced in recent years, mainly in cheese and skimmed milk powder. In million t in two years between 2014 and 2016. growing global and EU demand are expected to parallel, close to 900,000 t of milk per year would However, since the EU will be competing with New support world dairy markets in the long term. be needed to satisfy the growth in EU domestic Zealand and the US, this level of growth matches However, world market price variability will use. This will be mainly for cheese and for the the potential increase in demand. The room for continue and short-term market unbalances processing of other dairy products such as dairy the EU to increase production is limited by the cannot be ruled out. desserts, fat-filled milk powders, infant milk forneed for sustainable use of natural resources. Global trade in whole milk powder, skimmed mula, protein and whey concentrates. Alongside However, the same is true of its main competitors. milk powder, cheese and butter is expected other commodities such as meat and tomatoes, to grow on average by 1 million tone (t) of milk equivalent per year. This is significantly below the average growth Feed use is expected to rise further over the outlook period in we have seen for almost all products response to more poultry and dairy production and more intensive in the last 10 years. The one exception beef production is butter, for which trade will expand faster than in the last decade. At the same time, we will gradually see changes China will remain the worldâ&#x20AC;&#x2122;s leading importer more dairy products will be used as ingredients in production systems and a significant rise in of dairy products. Shipments to China are exto meet the rising demand for processed foods organic production in response to consumersâ&#x20AC;&#x2122; such as pizza, prepared meals, pastry and cakes. pected to increase considerably, although less expectations. By contrast, direct consumption of liquid milk is than in the past. expected to continue decreasing. Sustained EU EU expects to supply 30% of the increase MEAT and global demand is expected to drive an increase in world import demand for whole milk powder, World population and income growth are in EU milk production below 1 % per year (or 1.4 skimmed milk powder, cheese and butter. Includexpected to drive higher global meat demand. This million t). This is an average given that weather and ing whey powder and fresh dairy products, EU will also contribute to higher EU meat exports, market conditions can affect milk yield strongly. exports are expected to grow on average by

Subsidiary of Balitic Property Investment Ltd. Ireland

as EU meat consumption is stabilising at best. Still, 90% of total EU meat production will go to EU consumers. World meat consumption is expected to increase by 14% between 2017 and 2030, mainly satisfied by increasing domestic production. This is almost equivalent to a year’s total meat production in the EU. EU per capita consumption is expected to continue increasing slightly in the first years of the outlook period. However, as we approach 2030, per capita consumption will drop back towards its current level, while poultry will take some market share from other

despite favourable feed prices. This is because of stabilising EU consumption and competition on the world market. EU poultry meat production should expand by around 5% over the outlook period, driven by promising growth in world import demand and domestic consumption. EU exports are expected to increase by 18% by 2030 thanks to sales of different cuts of poultry meat and offal, and a wide portfolio of destinations. However, prices will be under pressure due to increased competition in the world market and will stay below the levels seen in 2011-2015. SPECIALISED CROPS In the olive oil sector, further structural improvements during the outlook period are expected, resulting in improved yields and higher production. The highest growth is expected in Spain and Portugal. This additional production will serve both growing world demand and increasing EU consumption, apart from in the main producing countries, i.e. Spain, Italy, Greece and Portugal, where consumption will decrease further. The EU will strengthen its position as the biggest world producer and exporter of olive oil.

geographical indication and sparkling wines. Overall, these developments will lead to a small decrease in EU production, while rising yields will not fully offset a decrease in the acreage of vineyards. EU production of fresh tomatoes is expected to remain relatively stable despite increasing yields driven by longer production seasons. However, the value of production is likely to continue to rise as greater product segmentation adds value. Consumption of fresh tomatoes is expected to go down slightly. By contrast, consumption of processed tomatoes is expected to marginally grow, driven by higher demand as an ingredient and for food products that evoke a Mediterranean lifestyle. AGRICULTURAL INCOME Total EU agricultural income is expected to decrease considerably in real terms over the outlook period. By contrast, agricultural income per worker is expected to increase slightly due to continued structural change and the numbers of people leaving agriculture. The expected increase in the value of production will be partly offset by the expected increase in production costs, stemming mainly from higher energy pricesand stronger depreciation.

ENVIRONMENTAL ASPECTS Changes in the livestock sector will be a major factor for emissions. This is because most emissions of greenhouse gases EU expects to supply 30 % of the increase in world import demand in agriculture stem directly or indirectly for whole milk powder, skimmed milk powder, cheese and butter, from animal production. Emissions are including whey powder and fresh dairy products expected to decrease as a result of a projected decrease in total EU livestock numbers by 2030. Compared with 2008, greenhouse gases are expected to fall by 1.5% Further modernisation of the apple sector is meats. Consumption of fresh meat is expected and ammonia emissions by 10%. expected to achieve higher yields, thanks to old to decrease, while overall consumption will be In 2030, the projected average nitrogen orchards being partially replaced with new plantsupported by further use of meat products as surplus in the EU-28 will be 2.6% lower than in ingredients in processed products. ing, new production methods improved disease 2008. The largest fall in the surplus is projected Beef production recovered in 2014-2016 after resistance and pest management. The increasing in EU regions where a reduction in herd size is the restructuring of the dairy sector. Production yields combined with a reduction in production expected. However, part of the projected fall is expected to stabilize in 2017, before returning area are expected to lead to a stabilisation of is due to a general increase in nitrogen-use efto a downward trend. This will be mainly dictated apple production. Consumption of fresh apples by the declining size of the cow herd and lower is expected to stabilise, while that of processed ficiency in the crop sector. domestic demand. After several years of conapples is likely to fall slightly. Environmental pressures seem to be accuHowever, higher exports will make up for this tinuous decline, sheep and goat production and mulating in some EU regions with a high density decline. EU total wine consumption is expected to consumption are expected to increase marginally, of livestock, with density still increasing in some stabilise after a long period of decline. However, thanks to improved profitability and the impleplaces. These may face some challenges if they total domestic use will decrease due to a reduccontinue their specialisation trends. ■ mentation of voluntary coupled support. Thanks to booming exports to China, pigmeat prices tion in other winemaking processes and products This is European Commission’s publication recovered in 2016 and 2017. Pigmeat production such as distillation, vinegar and vermouth. The EU made in a joint effort between the Directoratetook advantage of this short-term opportunity is expected to maintain steady growth in wine General for Agriculture and Rural Development and the Joint Research Centre (JRC) but is expected to expand only marginally by 2030 exports, thanks to strong demand for wines with a

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