Serbia: Farmers protesting, agricultural chamber on the horizon

Ministers of Agriculture of Southeast Europe met in Skopje

The 18^th annual meeting of agricultural ministers from Southeast European (SEE) countries was held in Skopje last week. Under the framework of the Standing Working Group for Regional Rural Development (SWG/RRD) of SEE, ministers and heads of delegations discussed regional cooperation, agricultural reforms, and rural development within the context of European integration and the implementation of the EU's Green Agenda for the Western Balkans.

According to Serbian Ministry of Agriculture, а significant outcome of the meeting was the adoption of the Joint Declaration on Food and Agriculture (Skopje Declaration), which represents an important step toward formalizing cooperation among Western Balkan countries, especially within the Berlin Process, with a focus on achieving the sustainable development goals in agriculture.

During the meeting, conclusions from the Agricultural Policy Forum's Jahorina Agenda 2024 for SEE, held in June this year, were presented. The regional collaboration within the SEE agri-food sector under the SWG framework was also summarized. In addition to ministers and delegation heads from SEE countries, representatives from the EU and international organizations such as FAO, GIZ, and CIHEAM also spoke at the gathering. Key speakers included North Macedonia's Minister of Agriculture, Forestry, and Water Economy, Cvetan Tripunovski, SWG Secretary General Boban Ilic, and the EU Commissioner for Agriculture, Janusz Wojciechowski.

Agricultural Chamber of Serbia on horizon

The Minister of Agriculture, Forestry, and Water Management Aleksandar Martinovic met with the President of the Serbian Chamber of Commerce (PKS), to discuss the potential establishment of the Agricultural Chamber of Serbia. This new entity would provide agricultural producers with a centralized platform to share ideas, receive essential information and guidance, and exchange experiences.

According to the ministry's statement, the Agricultural Chamber would bring producers from various agricultural sectors together, enabling their representatives to participate in discussions with the Serbian government and relevant ministries. "The role of the Agricultural Chamber would be to collect and organize its members' demands, which would then be submitted to the Ministry of Agriculture, Forestry, and Water Management," Minister Martinovic explained. He emphasized that the Chamber would serve as a bridge between the PKS and the Ministry.

Additionally, the Agricultural Chamber will work closely with representatives of agricultural advisory services. During the meeting, it was agreed that the PKS will actively participate in forming all necessary working bodies, fully supporting the establishment of the Agricultural Chamber.

Protests of farmers are picking up again

Despite the rainy weather, around a hundred farmers representing their associations, gathered in front of the Vojvodina Government building in Novi Sad, protesting against the failure of the government to fulfill promises made after the protests from November last year. The event was organized by several agricultural associations from Vojvodina, expressing dissatisfaction with unmet government commitments and the overall state of agriculture. The farmers highlighted that the past summer was unusually hot, with 72 consecutive days without "a single drop of rain," which left their crops "scorched." They emphasized that the government should have declared a state of natural disaster and provided compensation for drought-related damages, similar to actions taken in Romania, Hungary, and Croatia.

Due to the failure of the Government to meet last year's promises, farmers from Subotica held a protest during the week. They have invited dissatisfied farmers, companies, and cooperatives facing "financial collapse" to join the demonstration. In their demands, which included specific deadlines for implementation, the farmers have requested a moratorium on all agricultural loans, similar to measures taken during the COVID-19 pandemic. They also requested payment of €145 per hectare for certified seeds for all farmers, without the need to justify the purchase with receipts under the "lex specialis" law. Additionally, farmers underlined their request for excise tax-free fuel at all gas stations in 2025 and creating a commodity exchange market.

Whilst the list of requests are not new, the Banat Farmers' Union has officially decided to add a demand for the immediate resignation of Minister of Agriculture, Mr. Martinovic to their list of requests, which have been sent to the Ministry of Agriculture via email.

Substantial “agri-aid package” in revised state budget

Members of the Serbian Parliament adopted a revised budget for the current year. The budget increase is 6.5% compared to the initial budget. Prime Minister Milos Vucevic stated that there are no "hidden" funds in the state budget to meet all demands but that a "strong package" has been prepared for agriculture (approximately additional €171 million).

The Prime Minister noted that he has had numerous meetings with various farmers' associations, yet he remains unclear which of these are truly representative. Addressing their demands, he mentioned that further discussions will take place including with Minister of Agriculture Mr Aleksandar Martinovic, advisors to the President, and representatives from his cabinet.

"We are approaching a situation where the state will provide nearly €300 per hectare. As a member state of the European Union, Croatia gives €300 to her farmers," Vucevic stated. He added that the demands are endless, with farmers requesting an additional €250 per hectare due to drought, as well as exemption from agricultural land lease payments.

"The media will support them. The Government understands their struggles. But please understand us as well. The state is not a jukebox to fulfill every wish," he remarked. He reiterated that, regarding agriculture, there is nothing new to announce except that previously agreed measures will be implemented, but that there must be a limit to the demands. Vucevic also emphasized that the priority should be increased investment in livestock farming, where subsidies need to be strengthened, as this is the most devastated agriculture sector.

Lower production of wheat, corn, sunflowers and raspberries

Wheat production in Serbia stands at €2.9 million tons, representing a 15.9% decrease compared to last year's output, according to the last week report released by the Republic Statistical Office (RZS). As of September 5, RZS data also shows a 4.7% drop in raspberry production and a 5.5% decrease in sour cherry production. Corn production is expected to reach 5,425,000 tons, 18.2% less than last year.

On the other hand, sugar beet production is projected to increase by 4.3%, while sunflower and soybean production will decline by 7.1% and 32.3%, respectively. Compared to the ten-year average (2014–2023), wheat production is up by 2.4% and sunflower by 3.7%, while soybean and corn are down by 28.4% and 15.1%, respectively.

Sugar beet production is 8.6% lower than the decade average. Plum and apple production are expected to rise by 6.8% and 2.5% compared to last year. However, both are anticipated to fall below the ten-year average, with plum production down by 12.3% and apple production down by 12.4%. Grape production is expected to decline by 1.4% from last year and is 15.1% below the ten-year average. Final data on the 2024 harvest of crops, fruit, and grapes will be published in March next year, the RZS stated.