Serbia: Climate change is taking its toll on the environment and on agriculture

The effect of severe droughts and rainfall; grain market situation; international trade news; support schemes for small producers and families; 3D-printed chocolate; Balkan rivers severely threatened by hydropower plants - Our weekly briefing on agriculture, food and nature news in Serbia.

Dry soil
Beeld: ©Mike Erskine

Droughts have caused severe damages

Since the beginning of the 21st century, Serbia has faced severe drought episodes and extreme rainfall, resulting in significant economic losses estimated to exceed €6 billion.

More than 70% of these losses are attributed to drought and high temperatures, amounting to over €4 billion, according to the Nova Ekonomija portal. "Although the total amount of precipitation may not be significantly decreasing, its distribution throughout the year is becoming irregular, increasing the risk of droughts. Regions that once experienced regular rainfall are now facing longer dry periods," said Professor Vladimir Djurdjevic from the Faculty of Physics at the University of Belgrade.

Climate change is causing a rise in average temperatures and longer periods of drought. These changes significantly affect agriculture, water supply, and human health. Droughts lead to reduced crop yields, water shortages, increased risk of wildfires, and land degradation, as highlighted by Nova Ekonomija.

The Serbian government adopted a climate adaptation program at the end of last year. Following the severe floods in 2014, there have been positive developments in managing natural disasters, starting with improvements in the legal framework, the development of recovery programs, and the implementation of mitigation and preparation measures.

"Many of these advancements have primarily focused on floods, while Serbia still lacks a national strategic document dedicated to droughts, even though the economic losses associated with droughts in some years are approximately the same as the losses from the 2014 floods," Djurdjevic emphasized to Nova Ekonomija.

Support to Rakija producers

The City Administration in Kragujevac established a fund supporting small fruit brandy producers as part of the "Distillates for Distilleries" initiative. This initiative aims to provide professional assistance, equipment procurement and guaranteed purchase prices.

The initiative was launched by the Regional Agency for Economic Development of Sumadija and Pomoravlje, the City of Kragujevac, the Regional Association of Brandy Producers "Sumadijska rakija," and the Center for Grain and Rural Development.

The contract was signed by their representatives and by the presidents of the municipalities of Aranđelovac and Raca. Nenad Popovic, Director of the Regional Agency for Economic Development of Sumadija and Pomoravlje announced that the Regional Association of Brandy Producers will enable technological consultants to visit small producers and provide advice on how to improve production. "Our distilleries will thus have a stable inflow of distillates of appropriate quality, and “home” producers will have a secured market for their distillates. This approach increases the overall quantity of brandy that our region can offer in the Serbian market and beyond," Popovic explained. He hoped this example would be successful and attract more local governments from Sumadija and Pomoravlje next year. There are about 1,100 distilleries in Serbia.

Futures and forward contracts still not developed in grain market

The Serbian Minister of Trade, Tomislav Momirovic, stated that farmers can access efficient price insurance for grains and oilseeds through the Commodity Exchange, utilizing the futures market and forward contracts to sell products during production.

After a meeting with the management of the Commodity Exchange in Novi Sad, the Minister said that "price security for agricultural products is of great, if not crucial, importance for Serbian agriculture," reads the statement from Ministry of Trade. "We noted in the meeting that changes in the prices of grains and oilseeds on the global market are reflected in Serbia as well and that price fluctuations can be expected in the coming period due to climate change impacting production volumes," Momirovic said.

The Commodity Exchange market, he explained, allows farmers to prevent any unpleasant surprises and ensure revenue for their products. According to Minister Momirovic, the Ministry of Trade will continue to invest in initiatives that will enhance the organization and security of the market. "Due to a lack of knowledge about the process only a small number of farmers use the option of forward pricing, and the Ministry of Trade will, along with the Commodity Exchange and experts in this field, launch a systematic, continuous education program on how to secure grain and oilseed prices in the existing futures markets," Minister added.

Serbia remains one of Europe’s largest cherry exporters

Serbia has maintained its position as one of Europe's largest cherry exporters, earning nearly €59 million   from 42,600 tons of cherry exports last year, according to the latest data from the Statistical Office of Serbia (RZS). The majority of exports were to EU countries, with fresh cherries mainly ending up in Austria, Italy, Hungary, Germany, and Croatia, followed by exports to neighboring Bosnia and Herzegovina and to Russia, reports daily Blic.

The RZS data shows that the export of 3,321 tons of fresh cherries generated €7.6 million. Significantly higher income was achieved from the export of 32,543 tons of frozen cherries, which brought in €45.1 million. Imports were considerably lower, with only 2,017 tons of cherries of various categories valued at €2.9 million, mostly imported from Germany, North Macedonia, Romania and the Russian Federation.

Positive export figures continued into the first quarter of this year as Serbia has already exported 11,504 tons of cherries worth €17.8 million, while imports amounted to only 273 tons valued at 402,000 EUR. Among the most significant buyers of frozen cherries this year are Russia with 4,742 tons, Germany with 2,330 tons, and France with 1,167 tons.

In terms of fresh cherries, a total of 40 tons were exported, all to the German market, according to RZS statistics. Annually, Serbia produces about 90,000 tons of cherries on approximately 17,000 hectares, with half of the annual yield coming from the Toplica region, the country's largest cherry producer.

Houses for young couples in rural areas

Minister for Rural Welfare, Mr. Milan Krkobabic, shared with the public under the “Program for Allocating Non-Refundable Funds for the Purchase of Rural Houses with Yards”, three thousand houses have been awarded. The latest one is located in the village of Simicevo in the Municipality of Zabari. "The total number of houses awarded so far is 3,015, providing a roof over the heads of more than 12,000 people," stated the Minister. The three-thousandth house was given to a single mother with three children, who is moving to the village Simicevo.

The Minister noted that this is a "great day for the citizens of Serbia and a complete triumph for young, brave people," who, on average, are under 30 years old. "I particularly emphasize also highly educated individuals, are leaving urban areas and finding their homes in the villages all over Serbia," said the Minister Krkobabic.

The Minister highlighted unanimous support in Serbia for the program, regardless of national, religious, or political affiliation. On the last session of the Commission for the approval of the applications for purchase of households in rural areas., 110 houses were awarded in as many as 50 local governments across Serbia, where 150 adults and 78 children will live. “Since the beginning of this year alone, 365 houses have been awarded," stated Milan Prostran, Deputy Chairman of the Commission.

Free Trade Agreement with Egypt to encompass more than 16.000 products

After two years of negotiations, the Free Trade Agreement between the Serbia and Egypt will encompass more than 16,000 products which will be exported and imported to Serbia and Egypt, stated Serbian Minister of Trade, Tomislav Momirovic.

Once the Free Trade Agreement is ratified, he added, 40 percent customs duty on Serbian fresh apples will be abolished, as well as the 30 percent duty on dried plums and the 20% duty on frozen berries.

Customs duties on Serbian food  products, currently ranging from 20% to 60%, will gradually start to decrease, while the duties on mineral water and non-alcoholic beer, currently between 20% and 30%, will be eliminated. In addition to being a big opportunity for farmers  from Serbia, this FTA represents a great opportunity for the Serbian ceramics industry, pharmaceutical industry and many other industries," stated the Minister of Trade.

3D printing chocolate

The Science and Technology Park (NTP) in Novi Sad has successfully tested chocolate printing using 3D printing technology. This 3D printer, equipped with a chocolate attachment, will allow the creation of personalized chocolate designs of all shapes.

The project was developed by Vladimir Todorovic, Head of the Development sector at the Science and Technology Park, Professor Dejan Movrin of the Faculty of Technical Sciences, and mechatronics student Mladen Milic. "The printer head that was printing plastic has been replaced with a head that prints chocolate. This technology prints in layers, and the chocolate is heated to 34˚˚˚ C (its crystallization point)" Milic told news agency Tanjug. He added that at 34˚ C degrees, chocolate changes its properties from liquid to solid and vice versa, meaning it must be extruded from the printer head in a liquid state and solidify quickly on the substrate before the next layer is applied.

"To find the exact temperature, we had many attempts. We started at 36˚  C and went below 34˚ C until we set the perfect temperature," Milic explained. It will take some more time for experts to perfect the product, which in its initial testing used the highest quality material donated by the Barry Callebaut factory, which has a plant in Novi Sad. Vladimir Todorovic stated that this project not only pushes the boundaries of 3D printing but also opens new horizons in creativity within gastronomy. "The idea of how to apply different materials was always on our minds. What to improve, whether to replace existing materials with more environmentally friendly ones and so one," Todorovic told Tanjug.

Irreversible damage threatens Balkan rivers due to hydropower plants

ClientEarth, an international non-governmental organization based in London, has warned that thousands of kilometers of pristine rivers in Balkan countries are at risk of irreversible damage due to the proliferation of hydropower dam projects and non-compliance with EU standards, French agency AFP reported at the beginning of July.

"The Balkans have some of the cleanest and wildest rivers in Europe, which are key reserves for the continent's biodiversity," according to the ClientEarth report. However, these rivers are seriously threatened by over 3,400 hydropower projects that, if realized, would irreparably damage this biodiversity haven, a refuge for endangered endemic river species, ClientEarth warns.

The report highlights the systemic failures of Western Balkan countries to adhere to EU environmental regulations that require impact assessments for every project. Albania, Bosnia and Herzegovina, North Macedonia,  Montenegro, Serbia and Kosovo are all (potential) candidates for EU membership and, therefore, must implement EU environmental directives and specifically require impact studies for any dam project if they hope to join.

Ulrich Eichelmann from the NGO Riverwatch told AFP that these countries conduct studies claiming nature will not suffer, completing paperwork to comply with laws without respecting their intent. "Governments do not take this seriously; they see it only as an obligation," said Eichelmann, adding, "We are witnessing the privatization of common goods." Many of these studies follow a "copy and paste" method, said Amelie Iber from ClientEarth. "We realize that research has not been conducted, that large parts of studies are copied and pasted from other projects, and if no one challenges these studies, the projects can proceed," she explained.