Serbia allocates record €1.27 billion to agriculture

Record Agricultural Budget Seen as Emergency Measure

In 2025, Serbia allocated a record €1.27 billion to agriculture, amounting to 7.5% of the national budget. While this is the highest agricultural budget in the country’s history, much of it is earmarked to address urgent issues and support farmers struggling with challenges stemming from severe weather conditions in recent years and the profound impact of climate change on food production.

The budget is divided into five segments: direct payments, rural development measures, credit support, special support, and IPARD incentives. A substantial 80% of the allocation is designated for direct payments, leading experts to label it a “crisis budget.” This approach is a response to the deteriorating state of Serbian agriculture, which has faced declining cattle numbers, reduced productivity, and low market prices for agricultural products, as reported by the national broadcaster RTS.

"In a short time, Serbia has transitioned from a country capable of 'feeding half of Europe' to one that imports milk, meat, processed foods, livestock, and even baked goods," said Zarko Galetin, an agroeconomic analyst. "The state has chosen to 'loosen the purse strings' and provide agriculture with much-needed attention and funding. These measures aim to 'extinguish an acute fire' by helping farmers reduce production costs." Galetin noted that the budget reflects a dual focus: increasing production capacity, such as through per-hectare allocations, and reducing costs via subsidies for diesel fuel and certified seeds. However, he pointed out that prioritizing direct payments at the expense of development initiatives highlights systemic issues. "When 80% of the budget is dedicated to direct payments, it’s clear something has gone wrong. Although the development component has been overlooked, this budget allocation is still justified to address immediate challenges, particularly those caused by climate change," he explained.

In 2024, Serbia experienced over 40 tropical days with minimal rainfall, leading to significant drops in production and unfavorable market conditions with low purchase prices. Galetin emphasized that this “forced but necessary” budget aims to help farmers recover and resume production.

Professor Zaklina Stojanovic, Dean of the Faculty of Economics in Belgrade, agreed that the budget largely targets direct incentives, but she noted that funding for rural development has steadily declined over the years. Key direct incentives include subsidies for certified seed and fuel purchases, milk premiums, and payments per hectare or livestock head. “The impression is that the budget reflects demands voiced during numerous farmers’ protests in 2024,” said Professor Stojanovic. “Farmers are seeking stability and support in times of crisis. The current state of Serbian agriculture is the result of decades of neglect, compounded by poor decisions during the pandemic and disruptions in the global food market caused by the war in Ukraine.”

Stojanovic suggested that addressing these challenges requires greater support for technological innovation and improved collaboration between producers, such as through cooperative agreements and marketing contracts tied to commodity markets. "Funds should be directed towards farmers capable of enhancing productivity and efficiency. This is vital to ensure affordable food prices for consumers, which would, in turn, create room for faster economic growth. Otherwise, given the high share of food costs in household expenditures, agriculture in its current state risks becoming a 'burden' that stifles broader market development," concluded the Dean for daily Danas

2024 officially the hottest ever recorded in Serbia

The Republic Hydrometeorological Service of Serbia (RHMZ) has confirmed that 2024 was the hottest year in Serbia's recorded history, according to portal Klima 101 . The average annual temperature reached an unprecedented 13.3°C, nearly 1°C higher than the previous record set in 2023. This sharp increase becomes even more striking when compared to historical norms. During the reference period from 1961 to 1990 — considered the last era before the significant impact of climate change — Serbia's average annual temperature was 10.2°C. This makes 2024 an extraordinary 3.1°C warmer than what was once considered "normal." For context, between 1961 and 1990, the annual average temperature exceeded 11°C only twice (in 1961 and 1966) — and only by a slight margin. The 12°C threshold was never approached during that period. Yet in 2024, the average temperature soared beyond 13°C, shattering historical benchmarks. Notably, five months in 2024 set all-time high-temperature records: February, March, June, July, and August.

Climate Change and Agriculture

The Scientific Institute BioSense in Novi Sad recently hosted the annual national meeting of the Climate Smart Advisors (CSA) project. This initiative is part of a pan-European, multi-actor network spanning 27 countries. Its mission is to enhance the EU agricultural advisory community and accelerate the adoption of climate-smart (CS) farming practices across the broader agricultural sector.

The project emphasizes the critical role of agricultural advisory services in providing farmers with relevant, actionable advice. It also aims to facilitate the application and dissemination of proven solutions and practices developed by other advisors within the network. The primary focus areas for climate-smart agricultural practices include pasture management, hay and silage production, crop management, energy efficiency, soil health, biodiversity, and animal husbandry. Launched in April 2023 and funded by the EU, the project is set to run for seven years.

This year’s annual meeting provided an opportunity to evaluate the initial implementation of CSA in Serbia. A key activity was a survey conducted among Serbian farmers, which offered valuable insights into their perspectives on climate change and potential solutions to this global challenge. The survey revealed that Serbian farmers overwhelmingly acknowledge significant climate changes in the region over the past 50 years. However, opinions on the permanence of these changes were divided: one-third of respondents believe the negative impacts of current weather patterns are temporary and that conditions will eventually return to normal, while 48% were more pessimistic. The remaining participants expressed a preference for receiving concrete advice.

Notably, 76% of farmers identified humus degradation—the loss of the soil’s fertile layer—as a direct consequence of cultivation practices. Factors cited included plowing with heavy agricultural machinery, excessive use of mineral fertilizers and pesticides, and limited crop rotation. Despite these challenges, many farmers are aware of conservation tillage and the principles of regenerative agriculture.

The survey also shed light on current farming practices in Serbia. Only 15% of farmers reported regularly using cover crops, slightly more reported reducing their reliance on artificial fertilizers, and about a quarter continue to use manure as a natural fertilizer. These findings, reported by the daily newspaper Dnevnik, highlight both the challenges and opportunities for advancing climate-smart agricultural practices in the region.

Serbia faces risk of losing competitiveness in global raspberry market

Collaboration between berry producers and cold storage operators could pave the way for progress, but the key to long-term success lies in empowering raspberry farmers to invest in their own cold storage facilities, according to Zoran Keserovic, a professor at the Faculty of Agriculture in Novi Sad. Speaking to Biznis.rs, Professor Keserovic highlighted that the longstanding conflict between raspberry producers and cold storage operators in Serbia has persisted for over three decades, with no resolution in sight. “This issue arises from poor sector organization and the absence of systemic measures to ensure sustainable operations for both parties,” he explained. Unlike in Italy, where producers are organized into cooperatives and have become shareholders of these associations, Serbian raspberry farmers and cold storage operators operate independently, leading to a fragmented and poorly regulated business model that fosters ongoing disputes. Keserovic warned that without improved collaboration and clearly defined agreements, neither producers nor cold storage operators will thrive. If the current situation persists, Serbia’s competitiveness in the global raspberry market will erode over time. To address the issue, Keserovic proposed two potential solutions. The first involves introducing state incentives to encourage raspberry farmers to establish their own cold storage and processing facilities. The second solution suggests a revenue-sharing model between producers and cold storage operators, such as allocating 45% of the export price to cold storage operators and 55% to producers. “These measures are essential for ensuring the sustainability and profitability of Serbia’s raspberry sector,” Keserovic concluded.

Limited import of oil and margarine for the next six months

At its session at the end of December, the Government of Serbia has extend the restrictions on the import of edible sunflower oil and margarine for another six months. The original decision from March 2024  introduced quantitative restriction of imports for nine months, but the Serbian Government extended that period to a total of 15 months.

When the Decision on the quantitative restriction of the import of agricultural and food products was adopted nine months ago, it was justified by the need for protection of domestic production and primary producers. The decision refers to the quarterly permits for the import of edible sunflower oil and margarine, and the quantitative limit represents the average of imports in the previous four years.

EU accession is a strategic goal of Serbia

At the end of 2024, Minister of Agriculture Aleksandar Martinovic hosted the Ambassador and Head of the Delegation of the European Union in Serbia, Emanuele Giaufret and his associates, with whom he discussed the process of European integration of Serbia in the field of agriculture and rural development, food safety, veterinary and phytosanitary policy. Minister Martinovic underlined Serbia's intention and strategic goal to fulfill all the criteria from all negotiation chapters for the EU membership by the end of 2026. Ambassador Giaufret emphasized that Serbia can count on all the necessary assistance and support of the EU Delegation in Serbia in the process of harmonizing regulations with EU acquis and strengthening capacity for their implementation, states the website of the Ministry.