Serbia: Climate change makes a dent in harvest yields

Opposition strongly criticizes agricultural policy

The Serbian Ministry of Agriculture, Forestry, and Water Management paid out €24.3 million in direct subsidies and €7.5 million for rural development measures in the second quarter of this year, according to a report presented yesterday at the Agriculture Committee of the Serbian Parliament. Miroslav Aleksic, a committee member from the People's Movement of Serbia (NPS), criticized the Ministry for not supporting farmers and producers, warning that Serbia risks becoming a net food importer instead of an exporter.

"The Agricultural and Rural Development Strategy was adopted in 2014, and its 10-year term expired in July this year. The 145-page document, written by 240 experts, predicted that agriculture would grow annually by 9.1%, with a minimum of 6.1% in less favorable years. In reality, over the past 10 years, agriculture has cumulatively grown by just 1.7%," Aleksic stated. He further argued that the current government is responsible for the state of agriculture over the past 12 years, noting significant declines in livestock numbers: cattle by 1.5 million, sheep by about 1 million, and pigs by 800,000. Dusan Nikezic from the Freedom and Justice Party added that the ministry's report did not address the fulfillment of pre-election promises. "The government promised subsidies for certified seeds, excise- free diesel for farmers and regulated contributions for pension insurance. A year has passed since the elections, and not even the regular subsidies are being paid," Nikezic stated.

Draft strategy on Environmental Protection of Serbia open for public consultations

Serbian Ministry of Environmental Protection, Mining and Energy has published a draft versions of the “Environmental Protection Strategy – Green Agenda of the Republic of Serbia” for the period 2024 – 2033. The strategy contains action plan and the report on the strategic environmental impact assessment of the strategy. As announced by the Ministry, the public consultations will last until October 3.

The strategy will be a primary document guiding public policy in the environmental sector. It outlines measures and activities towards the Green Agenda, carbon neutrality, sustainable development, protection of natural resources reduction of pollution, and improvement of the quality of life for all citizens. The strategy incorporates goals of the Green Agenda, the Sofia Declaration signed by Serbia in November 2020, and measures for further alignment with the regulations and standards of the European Union. The document also contains mechanisms for monitoring the implementation of the strategy.

In the period from 2024 to 2033, Serbia will focus on several key areas following the principles and pillars of the Green Agenda: Climate change and decarbonization; Circular economy; Reduction of environmental pollution; Protection of biodiversity and ecosystems and Sustainable food systems and rural development.

The action plan for the period from 2024 to 2028 defines activities for implementing measures to achieve the goals listed in the document. The plan determines the deadlines, the institutions in charge and partners, and funds and sources of financing for carrying out the planned activities. The document also addresses mobilization of financial resources from EU funds and other international sources. The funds will be utilized in a way that will secure the vital infrastructure and resources for the implementation of environmental protection measures, according to the strategy.

The hottest summer ever will halve this year's agricultural yields

The summer that is about to end has been officially confirmed as the hottest in Serbia's recorded history, according to the Hydrometeorological Institute (RHMZ). This summer's average temperature was more than three degrees Celsius higher than usual and nearly one degree warmer than the previous record set in 2012, reported Klima101 portal.

RHMZ data shows that Serbia experienced five heatwaves this summer, which are defined as periods of at least five consecutive days of very high or extreme temperatures. Two of these heatwaves—one in mid-July and another in mid-August—were particularly long and intense, with temperatures soaring 10 degrees above average for those periods.

Such long hot periods had hurt the farming community the most. According to Professor Novica Miletic from the Faculty of Agriculture in Belgrade, farmers, fruit growers, and vegetable producers are expected to face a 50 percent reduction in yields on average due to this season's drought. In a statement to FoNet news agency, prof Miletic noted that some farmers could see yield reductions of up to 80 percent, especially those growing corn on sandy soil. In addition to corn, soybeans are also severely affected, while the impact of the drought varies in fruit production. "Cherries and apricots have suffered less from the drought, unlike apples and pears. According to Miletic, the drought has also negatively impacted grapevines. He emphasized that while nothing can be done to salvage this year's crop, it is crucial to prepare for the next season by installing irrigation systems in time. "At this point, the damage is irreversible—there is no recovery. Those who have the financial means should invest in irrigation systems," advised professor.

New research on retail chain margins at government's request

The Serbian government has instructed the Republic Statistical Office (RZS) to conduct a study on the price structure of basic food products in retail chains for the first six months of this year, ac-cording to Nova Ekonomija portal. A similar study was conducted by the RZS last year, also at the government's request, which found that retail margins were not as high as indicated by a previous study conducted by the National Bank of Serbia. Last year's RZS research showed that the average gross retail margin in food product sales was 14.9% from January to April 2023. Manufacturer margins during the first six months of 2023 averaged 54.1%, meaning they were 3.6 times higher than the average retail margin. In last year's study, the RZS categorized retailers into the "Top 20" and "Others." The top 20 retailers accounted for about 83% of total food product sales, with the top three alone holding a 48.9% share. The average gross margin (for all products) for the "Top 20" group was 14.6%, with the highest average margin in this group reaching 23.8% and the lowest at 5.1%. Among the "Others" group, the average margin was 16.9%. Nova Ekonomija added that the Commission for Protection of Competition is currently conducting a study to assess the state of competition in the food products market. However, the results have not yet been published.

Serbian autochthonous cuvée won gold medal at grading in Vienna

The blend of autochthonous varieties Bukovski Cuvee 2020 of the Matalj vinery from Negotinska Krajina, the inheritor of Serbia’s best red wine made from a local variety in 2023, has won the gold medal at AWC Vienna 2024 grading, e-Kapija portal reports. This is one of the countless examples in a short time period of underrated varieties proving their potential. The gold for Bukovski at AWC Vienna, one of the biggest contests of its kind in the world, is expressed with 91.4 points. With the previously won acknowledgments, the silver at Decanter WWA 2024 (90 points) and the double gold at the Balkans BIWC 2024 (94) contest, the coupage of Prokupac varieties belongs among the most awarded Serbian wines. “This is the first time that we have sent this wine to Vienna and it has turned out that, with the previously won acknowledgments, we were right to put our full trust in and focus on the varieties for which Negotinska Krajina is in fact a natural habitat,” stated the management of Matalj winery.

No major problems expected with water levels in Serbia

“The authorities are closely monitoring the situation regarding the water levels of rivers in central Europe” stated Prime Minister Milos Vucevic and added that water levels in Serbia were expected to peak between September 24 and 26. According to relevant officials from Ministry of Agriculture Forestry and Water Management, no dramatic situations like ones in Central European states are expected to happen in Serbia.