Serbia Newsflash, Week 26, 2022

Limited prices of basic food stuff extended 

The Serbian Government adopted a Decree that extend the capping of the prices of basic foodstuffs .The Decree applies to various packages of flour, sunflower oil, pork leg, crystal sugar, and UHT milk with 2.8% fat. The Government decided that the Decree on the limitation of the price of oil derivatives, which was supposed to expire on June 30, would be extended until July 31, 2022. The Government has also decided to temporarily ban the export of Euro diesel EN 590 in order to prevent shortages and ensure a secure supply of the market with this derivative. A decision was also made to temporarily reduce the excise duties on oil derivatives, leaded and unleaded gasoline, and gas oils by 20% until the end of this month.

Agricultural land sales increasing

Demand for agricultural land is increasing. According to the State Cadaster Office (RGZ) data, in Vojvodina, in the first four months of this year, the average price per hectare of arable land was €9.414. The price of farmland in Sumadija and Western Serbia on average was €4.050/ha, and in the Belgrade region the price was about €4.800/ha.

The largest increase in the price of agricultural land, according to RGZ data, compared to the first quarter of 2021, was recorded in the Srem district, where this year the average price per hectare was €10.450, while in the same period in 2021 it was €8.500. A significant increase in average prices was also recorded in the district of South Banat, where the price per hectare rose from last year's €10.800 to €12.150. This year, the lowest price for agricultural land was €250/ha.

In this week’s Hungary Newsflash, we also report on increasing land prices in Hungary and the effects of Hungary’s policy of capping food prices, which is very similar to the Serbian one.

Climate change is endangering the health of domestic animals

A large number of animal diseases that were not known in Serbia and in the region before, have been registered lately. These are vector-borne diseases, which are primarily due to climate change, arthropods (insects and ticks), Mrs. Ruzica Trailovic, a professor from the Faculty of Veterinary Medicine in Belgrade notes for Klima101 .

Vector organisms bring numerous pathogens: Viruses, bacteria and parasites that disrupt the evolutionary balance in the conquered habitat. Due to global warming, the spread and escalation in the number of positive cases of diseases such as Bluetongue, West Nile Fever and others can be expected.

Climate change increases the risk of infectious disease outbreaks thus it is necessary to adopt the concept of "one health", which is defined as a unique multidisciplinary approach to human and animal health and disease. "Only by removing the divisions between the professions that deal with nature and health issues, can we provide early detection and diagnosis of dangerous health risks that also refer to a crisis in the food chain," emphasizes professor Ruzica Trailovic.

The EU helps eco-organizations in Serbia

A memorandum of cooperation between the World Wildlife Fund (WWF) Adria Serbia, the Serbian Chamber of Commerce and sixteen other institutions and organizations was signed this week, with the aim of improving environmental protection and biodiversity in Serbia through certain projects.

The Head of Operations III at the EU Delegation in Serbia, Mr. Sakelaris Hourdas, stated that the project awards grants in the field of environmental protection and that it refers to "safe nature". "Civic initiatives and associations are working to raise awareness, to take care of the way procedures are conducted and to become the voice of citizens that can reach decision-makers. Hearing the voice of the citizens leads to political dialogue," Mr. Hourdas said, adding that the policy of the European Commission is within the framework of the Green Deal to work on climate in the whole world.

Up to 3.5 million tons of wheat and 7 million tons of corn expected

Serbia expects a harvest of 3.5 million tons of wheat this year, and with favorable weather conditions, a little more than 7 million tons of corn, stated Assistant Minister of Agriculture Ms Vedrana Ilic.

Serbia also produces significant amounts of sunflower, sugar beet, and soybeans, Ms. Ilic pointed out and added that the country currently not only has enough food for its own needs, but also for the entire region and traditional customers.

Serbia is one of the ten largest producers of cereals, as well as one of the largest producers of raspberries, plums, apples, and other fruits, which can significantly contribute to improving global food production, said Mrs. Ilic, who participated in a video conference at a ministerial conference in Berlin late last week within the G7 group of countries.

“We have shown our readiness for cooperation and aid through many activities so far, but probably the most important of them is the Open Balkans initiative, which helps the development of the entire West Balkans and is the most important regional project for Serbia,” Ms. Ilic said.

The Assistant Minister stressed the need to harness the power of knowledge and to improve food systems to provide safe food, accessible to all while conserving natural resources and combating climate change, implementing and developing best agricultural practices, improving food distribution systems, and reducing food waste.

Farmers dissatisfied with the outcome of the negotiations with the Government

Mr. Nedeljko Savic, the president of the Farmers’ Association Stig, said that the members of the association were dissatisfied with the outcome of negotiations with the state officials on their demands for free export of wheat and that they would discuss the possibilities of mass protests with agricultural producers from other parts of Serbia.

Mr. Savic stated for the Beta news agency that the representatives of the association talked about their demands for the free export of wheat and change in the policy of subsidies for primary agricultural production with the heads of the cabinet of Serbian President Mr. Aleksandar Vucic and Minister of Agriculture Mr. Branislav Nedimovic. Since the outcome of the discussion is not satisfactory, the  association will consider organizing mass protests.

Serbia to get quotas for 2023 for the export of cheese, alcoholic beverages and cigarettes to EAEC

The Eurasian Economic Community (EAEC) will secure customs-free importing quotas for Serbia for certain kinds of cheeses, alcoholic products and cigarettes for 2023. According to the draft decision of the EAEC, the customs-free quota of up to 400 tons/year will pertain to certain kinds of cheeses and butter. The quota for the export to Russia is 253.53 tons, for Armenia it is 2.07 tons, for Belarus 20.04 tons, for Kazakhstan 121.4 tons and for Kyrgyzstan it is 2.96 tons.

Serbia will be able to export, free of customs fees, 35 thousand liters of pure alcohol a year in the form of alcohol tinctures derived through the distilling of grape wine or grape pomace. The quota for those markets for cigarettes amounts to two billion pieces a year. Securing the quota for Serbia is envisaged under the agreement on the free trade zone between the EAEC and Serbia which was signed on October 25, 2019.