Land prices rising in Serbia

Prices of agricultural land up by 4% in first half of 2023

The prices of agricultural land in the first half of 2023 are higher by 4% compared to the same period last year, according to the report of the Republic Geodetic Authority (RGZ). Land is mostly traded in Vojvodina, and the most expensive is in the vicinity of Novi Sad, where a hectare was sold for €36 thousand, while high prices were also recorded in Backa Palanka, where a hectare reached €30.7 thousand. The average price of agricultural land in Serbia in the first half of 2023 was around €7.5 thousand per hectare, Dnevnik daily reported.

The highest prices are in the South Backa district, and the lowest in the Toplica district, and range from below €300 to more than €36 thousand per hectare. The number of contracts on the purchase and sale of agricultural land at the level of the entire country in the first half of 2023 was six times higher than in the same period last year. Towns of Zrenjanin and Sombor are the first in Serbia in terms of the number of plots sold with 217 sales in both municipalities. The maximum price achieved in Sombor is €23.8 thousand per hectare, and the minimum is €2,180, while the maximum price in Zrenjanin is €15.5 thousand, and the minimum is just over €1 thousand. In third place is the town of Pancevo, and the prices of plots in this municipality range from €2.2 thousand to €22.65 thousand. The northern town of Subotica comes in fourth place with the prices from €4.1 thousand to €23.5 thousand per hectare.

Annual recommendations of the Foreign Investors Council for the improvement of business environment in Serbia

The White Book of the Council of Foreign Investors traditionally provides recommendations for the decision makers in Serbia with the aim of making the market more competitive and economically stronger. In addition to the recommendations, the publication sets priorities in economic policy and presents concrete proposals for improving business conditions.

Out of 383 recommendations from last year, progress was achieved in 28 percent of them, significant progress was achieved in 8 percent of recommendations, some progress was achieved in 20 percent (28 percent in total), and on 72 percent of recommendations  no progress was achieved. Among the areas where the greatest progress compared to 2022 is evident are energy, protection of users of financial services, fiscalization, the fight against illegal trade, customs, and the areas of digitization and telecommunications.

Moreover, the labor law regulating employment of foreigners was positively evaluated. Foreign investors assess that the adoption and harmonization with EU regulations and the acceptance of more flexible rules on the origin of goods in trade between Serbia, CEFTA countries and PAN-EU members were effectively handled. The 2023 recommendations for food and agriculture  focusing on food safety, sanitary and phytosanitary inspection and quality assurance amongst others can be found here.

Balkans Wine Vision held in Belgrade

From November 16 to 19, the Belgrade Fair hosted over 600 exhibitors from nearly 30 countries in the second Open Balkans Wine Vision. This wine, food and tourism expo was organized within the Open Balkans initiative under the aegis of the governments of Serbia, North Macedonia and Albania.

The first day of the event was reserved for professional buyers and invitees, while the doors to the general public opened for the last two days. Half of the wineries, distilleries and gastronomy companies that participated in the fair were from Open Balkan countries: Serbia (260), North Macedonia (24) and Albania (21).

Over 3.000 business meetings regarding potential collaboration have been set up between local winemakers and professional visitors, buyers and sommeliers via the event’s website, the organizers  said. North Macedonian Prime Minister Dimitri Kovacevski pointed out that the Wine Fair by the Open Balkan is a strong stimulus for the economies of the region and opens the way for its development. According to him, the wine routes of Serbia, Albania, Montenegro, and North Macedonia are becoming a world destination.

This year again, the expo included the “Open Balkan Wine Trophy” competition, where over 600 regional wines were judged by 30 experts from throughout the world according to the same standards used by the most famous wine competitions, such as the Decanter World Wine Awards or the International Wine Challenge. The National trophies went to Shesh and Bardhe 2022, winery Duka (Albania), Cabernet Sauvignon Ten Barrels Reserva 2020, Chateau Kamnik (North Macedonia) and Zvonko Bogdan Chardonnay 2022, winery Zvonko Bogdan (Serbia).

Farmers’ protest ongoing

The farmers of Vojvodina organized in the Initiative for the Survival of Serbian Farmers, the Association of Agricultural Producers of Subotica, the Union of Farmers' Associations of Banat, and the Association of Farmers of Aradac have been protesting for the last ten days. The two main requests of the protestors are the regulation of the grain commodity market by introduction of futures trading and a commodity exchange and the sale of diesel fuel at the gas stations to farmers without excise duty.

President of the Assembly of the Initiative for the Survival of Serbian Farmers, Mr. Mileta Slankamenac told Beta news agency that farmers are asking for the agreement signed in May between the farmers’ associations and the Ministry of Agriculture to be implemented first, and then to discuss other demands like the subsidies per hectare for the next year, drainage fees, and other requirements, Mr. Slankamenac explained. At the meeting with the Prime Minister it was agreed that the requests will partly be fulfilled and a new meeting is set for next week. Serbia is holding general elections on 17 December.

Commodity reserves to exchange NPK fertilizer for field crops

As proposed by the Ministry of Agriculture and approved by Serbian Government, the Republic Directorate for Commodity Reserves is carrying out a commodity exchange with primary agriculture producers. The plan is toexchange  up to 36 thousand tons of NPK mineral fertilizer for field crops.

As stated by Ministry of Agriculture of Serbia, the exchange of mercantile wheat and corn harvested in 2023 and 2024 aims to provide additional support to producers before the new sowing season.

Representatives of agricultural association organizing farmers’ protests consider the exchange of grain for fertilizer to be a bad move, as  commodity reserve interventions, as well as commodity exchange of grain for mineral fertilizer, are not based on market principles and have a distorting impact  on the market. Instead, farmers are requesting structural solution for the regulation of the commodity exchange, modeled after the functioning models in developed European countries, with all elements and methods that are operating according to the principle of the free market, primarily for grain and oilseeds and other agricultural products, stated farmers.

By 2025, optical internet in almost all rural areas         

By 2025, through the project for the construction of broadband communication infrastructure, more than 99% of households in rural areas will be covered by next-generation networks, providing optical internet access to even the most remote villages, announced the Minister of Information and Telecommunications, Mihailo Jovanovic. In just one year, four significant laws have been enacted in the telecommunications, information society, and information sector the Minister explained. He underlined  that on June 30, Serbia officially became part of the Digital Europe program. The program, with a total value of €7.5 billion, will last until 2027. It was launched by the European Commission in response to the growing need for the economic recovery of the continent. Next to being a necessity for digital nomads, the availability of high speed internet in all rural areas in Serbia will enable the application of new technologies and IT solutions in agriculture by farmers and will facilitate the launching of new startups in the agrifood businesses.