Serbia: Milk producers call for tariffs on plant-based cheese

Agro Belgrade Fair held for the sixth time

The international fruit, vegetable, and viticulture trade fair, Agro Belgrade, took place in the Serbian capital during the last weekend of January. The event attracted over 500 exhibitors from Serbia and the wider region, including farmers, exporters, equipment manufacturers, distributors, buyers, and traders from across Europe.

Opening the sixth Agro Belgrade fair, Serbian Minister of Agriculture Aleksandar Martinović emphasized the importance of agriculture as one of Serbia’s key economic sectors. "We are committed to ensuring food sovereignty for our citizens. Our goal is to reduce food imports while increasing exports, not only to the Western Balkans but globally," he stated. Martinović highlighted that Serbia has allocated a record €1.2 billion (150 billion RSD) for agriculture this year, representing 7.5% of the total state budget. The fair brought together producers of fresh, frozen, and processed fruits, vegetables and grapes, as well as buyers, distributors, and retail chain representatives. Also present were manufacturers of agricultural machinery, plant nurseries, and suppliers of seeds and agrochemicals.

Buyers from Switzerland, the UK, Germany, Romania, Hungary, and Poland, along with various regional retail chains, attended the event. Agro Belgrade 2025 was organized with support from the Serbian Ministry of Agriculture, the Belgrade Secretariat for Agriculture, the Serbian Chamber of Commerce, and USAID’s Big Small Businesses project.

Milk producers demand import tariffs on plant-based cheese

Milorad Majstorovic, president of the Association of Milk Producers of Sumadija and Pomoravlje, has warned that if the Ministry of Agriculture fails to introduce import tariffs on plant-based cheese, the association will enforce a complete traffic blockade in the region.

Citing falling raw milk prices, association members staged a 24-hour highway blockade at the end of January. Majstorovic explained that the dairy company Natural System reduced its purchase price for milk by €0.04 per liter and announced an additional €0.04 reduction, alongside delayed payments. "I sell 550 liters of milk daily from my 30 cows to Natural System, which dropped the price from €0.57 per liter to €0.52. Now, they are announcing further reductions and payment delays," he said. Even at €0.57 per liter, he was barely breaking even, and with the latest cuts, covering expenses will be difficult says Mr. Majstorovic. Many producers, he added, are receiving even lower prices, ranging from €0.38 to €0.52 per liter. The association has urged the Ministry of Agriculture to impose tariffs on imported plant-based cheese, pointing to official data indicating that over 9,000 tons were imported in 2023. Domestic dairies have reduced cheese production and are cutting both prices and raw milk purchase volumes.

Ministry meeting agricultural support commitments

In 2024, the Serbian Paying Agency allocated over €871 million in agricultural subsidies, achieving 99.1% of its budget target. Responding to claims from agricultural associations that 20% of farmers had not received additional support for crop production or access to subsidized loans, the ministry clarified that significant payments were made, including an initial €154 per hectare, followed by an additional €85. Looking ahead, the Serbian government has earmarked €940 million for agricultural subsidies in 2025. This includes increased support for key sectors, such as dairy and beef cattle farming. The ministry also plans to continue funding agricultural incentives and subsidized loans, with a focus on improving farmers’ access to credit and certified seeds.

Week-long consumer boycott of retail chains

Following a successful one-day boycott of supermarket chains, the consumer protection association Efektiva has called for a five-day boycott of Serbia’s five major retail chains in the third week of February. Consumers have been urged to avoid shopping at Delhaize, Mercator S, DIS, Lidl, and Univerexport. The initiative is also backed by the “Prosperitet” consumer association from Novi Sad and the National Consumer Union from Belgrade. Professor Goran Petkovic from the Faculty of Economics in Belgrade noted that while the boycott could damage retailers' reputations, it is unlikely to lead to lasting price reductions. Speaking to Beta news agency, he explained that retail prices are determined by three key factors: the procurement cost, the retailer’s margin, and government taxes. "Focusing solely on the retailer’s margin does not address the full picture of high prices in Serbia. However, if this movement prompts the Commission for Protection of Competition to adopt a more comprehensive approach, it could have positive effects," Petkovic stated. A recent Macroeconomic Analyses and Trends (MAT) report pointed out that such initiatives have never resulted in sustained price reductions but have led to lower state revenues due to reduced tax and excise collections. Additionally, MAT experts warn that if retailer earnings decline, job losses in the sector could follow.