The Netherlands at the AgroBelgrade Fair in Serbia

Fourth AgroBelgrade Fair a success

What does 2023 hold in store for producers of fruits, vegetables and wine? Major producers from across the West Balkan region have come to Belgrade this week to find answers to this exact question at the fourth annual AgroBelgrade Fair. The Fair is the largest of its kind in the Balkans, with multiple  conferences  addressing the needs and issues faced by the agricultural sector and the food industry. It furthermore provides a platform to farmers to showcase their products and exchange knowledge and experience with one another.

The three-day fair hosted panel discussions involving  producers, market experts, traders and government representatives that offered answers to producers’ questions. How to increase labor supply and attract more women and young people to work in agriculture? How to select and improve varieties and use smart irrigation in the frame of climate change? What sources of finance are available to farmers and SMEs in the fruit and vegetable growing and processing industries?

The Embassy of the Kingdom of the Netherlands had the honor to open this year’s fair together with colleagues from the Embassy of United States and Ministries of Agriculture from Serbia, North Macedonia, Republika Srpska and Montenegro.

As in the past, the Embassy of the Kingdom of the Netherlands hosted a delegation of world-leading innovative Dutch berry producers at the Fair, which  shared their knowledge and experience at a workshop organized by the Netherlands Small Fruit Solutions project on the second day of the fair. They presented the newest approaches in growing berries on substrate as well as latest trends in organic and conventional growing of berry fruits.

Cattle and pig producers in a difficult position 

The owners of pig and cattle farms in Serbia warned that the agricultural sector is collapsing and that urgent help from the state is needed, because subsidies from last year were not paid, and milk processors are lowering the purchasing price of milk and are importing this commodity. Milk producers in Serbia will submit proposals to Minister of Agriculture, Ms Jelena Tanaskovic for government aid in helping farms survive. If she refuses, they will organize protests and speed up the closing of farms, said Mr. Dejan Trajkovic, a member of the Working Group for negotiations with the Ministry of Agriculture.

Mr. Trajkovic told Beta news agency that at the meeting held at the beginning of the week in Bogatic, farmers from all over Serbia agreed to propose to the Minister that the government pays off the debts based on premiums and subsidies as soon as possible, and reiterated that she had promised that these debts would be settled by the end of last year.

“We have several proposals for government aid to ensure the survival of cattle breeding in Serbia. We will give a 10-day deadline for the implementation to begin, and if the Ministry of Agriculture refuses, we will organize a protest. If there are will be no adequate response from the Ministry, we will start shutting down farms,” said Trajkovic, who owns a farm near Pancevo. As he stressed, the milk producers proposed that the premium for milk be increased from €0.085 to €0.17 per liter. According to him, farmers received a premium of €0.12 per liter for two quarters last year, but now it has been reduced to €0.085. He said that it was proposed to the Ministry of Agriculture to determine the minimum price of milk for buyers. He added that the proposal was to allow the export of milk and reduce the enormous import but also to import only the missing amount, and not the amounts that bring down the price of local milk. He said that it was also proposed to increase the subsidy per cattle head, which currently amounts to 214 EUR.

The owner of a cow farm in the vicinity of Kikinda, Olivera Latinovic, said that the state owes her about €25 thousand for subsidies from last year. She added that dairies started reducing the price of milk last month by €0.04, and it is expected that it will continue to go down because milk is imported and there is a surplus on the domestic market.

AL DAHRA announced new investment cycle

The company Al Dahra Serbia, which bought the property of the former Belgrade Agricultural Combinate (PKB) in 2018, announced its new investment cycle. As stated, Al Dahra Serbia will continue working on the irrigation and drainage project, which will take place in two phases and last for several years.

In previous years, the company invested more than €85 million in the optimization of operation and production, repair of existing and construction of new infrastructure, as well as the purchase of modern agro-machinery and equipment, the announcement reads. Al Dahra adds that since the PKB takeover, they have increased the wages of workers by more than 50% and  have paid out a New Year's bonus to workers in two parts, totaling one month's salary.

“We came to Serbia with the aim of implementing capital investments and promoting economic development as a whole. Financial incentives and other benefits for employees are one of the ways to make the agricultural sector attractive for work and professional development again. In 2023, we will continue to implement precisely those positive measures, and we will pay special attention to young experts in the agricultural industry,” said Al Dahra Serbia CEO Dusan Radicevic.

Subsidy try-out for farmers in the spring           

At the end of February, it is expected that the first Public Call from the IPARD 3 program will be announced. The call will be intended for the construction of on farm buildings, warehouses, procurement of equipment and procurement of tractors. After the successful completion of the IPARD 2 program, the new IPARD 3 program was adopted last year with €378 million in grants for farmers. An “Open house” activity was organized at the premises of the EU Info Point in Novi Sad, where the representative of the Ministry of Agriculture, Aleksandra Bacevic, and the Head of the Group for Programming Measures of the IPARD Program, Slobodan Zivanovic, answered farmers' questions about the opportunities offered by IPARD program, the method of submitting project proposals and the current public calls.

Rescheduling agricultural loans 

The Executive Board of the National Bank of Serbia (NBS) adopted a decision enabling the rescheduling of agricultural loans to debtors engaged in the purchase and storage of fruit. This measure was approved due to reduced demand and unfavorable price trends for fruit, especially raspberries in the international market. The rescheduling implies the possibility of delaying the settlement of the debtor's loan principal from 6 - 12 months. The right to reschedule can be exercised by debtors who, as of May 31, 2022, were not in arrears for more than 90 days on any obligation to the bank to which the rescheduling applied, who are not in default status in respect to that bank and whose debt is not considered a non-performing loan or non-performing receivable.

Debtors can submit a request for rescheduling until April 30, with banks approving it to the debtor within 30 days from the date of receipt of the request. It was emphasized that by adopting this regulation, NBS, in cooperation with Serbian Ministry of Agriculture, fully understands the difficult circumstances in which, in addition to agricultural producers engaged in the production of fruit, there were also those engaged in the purchase and storage of fruit in cold storage facilities. In this way, a unique approach to the process of production and purchase of fruit, i.e. raspberries, is achieved with the aim of overcoming the current circumstances in an optimal way, as well as preserving the base for the further development of this segment of agriculture, NBS stated.

Water levels in flooded areas across Serbia are decreasing

Over the last weekend the level of rivers in south-west Serbia increased drastically, flooding agriculture land and urban areas. At the beginning of the week the flooded areas across Serbia is decreasing, but the state of emergency is still in force in south and some municipalities in western Serbia.

The rivers Ibar and Zapadna Morava, which overflowed in several places in the territory of the municipality of Kraljevo, retreated to their beds. The level of the Ibar in the centre of Kraljevo has dropped by sixty centimetres, but a state of emergency is still in force in the city. The rain also triggered landslides, and certain parts of railway was out of order briefly.

After the interruption in the supply, all consumers in Kursumlija have water again. The Sava near Sabac is slightly rising. Regular flood defence measures are in force. For now, there are no problems with the river overflowing in the defended area. The river Drina near Bogatic is also retreating.