Spring frost strikes Serbia, damaging fruit trees

Frost causes major damage to fruit trees

Frost events in the past few days have caused major damage to fruit trees in Serbia, with freeze damage to apricots, which have been most affected, reaching as much as 95 percent in certain parts of Serbia, Zoran Keserovic, a professor at the Novi Sad Faculty of Agriculture, stated for daily Danas. He explained that warm weather in January and February contributed to faster development of generative buds. “This has been the case over the past 10 or 12 years. That is why low temperatures on March 18 and 19 caused considerable damage, especially to fruit trees in full bloom, primarily cherry plum (Prunus cerasifera) and apricot,” professor Keserovic explained. The biggest damage in Serbia, according to him, is caused by frost events in late spring, which cost Serbia between 160.000 and 200.000 tons of fruit last year. In 2024, fruits accounted for 17.8 percent of total plant production, which dropped 12.1 percent from 2023, primarily due to unfavorable weather conditions.

Improving production necessary for higher raspberry yields

Despite low temperatures, raspberry plantations have not suffered significant damage so far, but the impact of weather conditions in the coming period remains to be seen. Although Serbian "red gold" is one of key export products, disputes between producers and buyers over purchase prices have become almost an annual discussion. Professor Zoran Keserovic from the Faculty of Agriculture in Novi Sad stated for Biznis.rs portal that Serbia currently has around 19.000 hectares of raspberry fields. However, since 2018—when production reached approximately 120.000 tons—there has been a decline, with only 88.000 tons produced in 2023.

"Last year, we experienced frost in the second half of April, which caused significant damage, followed by hail later in the season. In terms of plantation conditions, I believe there has been a decline in production technology. One of the reasons is the lack of certified planting material, as well as the failure to implement modern plantation technologies, such as protective netting that shields plants not only from hail but also from sunburn," professor explains.

Regarding the purchase price, he highlights that in 2024, it was exceptionally low—ranging from 2.1 -2.5 EUR/kg—while just three or four years ago, prices were between 4.2 – 5.1 EUR/kg. As for this year's outlook, he emphasizes the need for precise cost calculations, given the rising production expenses due to increases in fuel prices, labor costs, fertilizers, and protective agents. "For years, there has been an unresolved issue between producers and cold storage operators, mainly because producers are not shareholders in these facilities, unlike, for example, apple growers in Italy. To create a long-term solution, I have proposed contract agreements that would set an advance price, allowing producers to cover harvesting costs. Additionally, after the raspberries are sold, 45% of the export price would go to cold storage operators, while 55% would go to producers, ensuring they share market risks together," Keserovic states, adding that improving production methods is essential for increasing yields.

Frozen raspberries consistently rank among Serbia's top ten agricultural and food export products, typically holding the second or third position. When considering annual export revenue, they generate over €254 million.

Serbia produces around 1.7 billion eggs annually

Serbia produces approximately 1.7 billion eggs per year, most of which are consumed domestically, while only a small portion is exported, primarily to countries in the CEFTA region. The European Union remains inaccessible for the export of table eggs from Serbia due to non-alignment with EU regulatory standards, said Nenad Budimovic, Secretary of the Association for Livestock and Livestock Product Processing at the Chamber of Commerce and Industry of Serbia (CCIS), in an interview for www.biznis.rs . "The poultry sector remains one of the healthier segments of Serbian livestock production, especially in comparison with other sub-sectors. That does not mean there is no room for improvement, but our production is of high quality, and our producers are well-trained and educated in both broiler meat and table egg production," Budimovic stated. He added that in November 2024, the Chamber submitted a proposal for partial regulatory alignment with the EU to enable exports to that market, which has seen rising demand for both chicken meat and eggs due to outbreaks of avian influenza. The main obstacle to exporting to the EU is veterinary legislation, particularly part concerning the regulation of salmonella control and associated testing procedures. "It would benefit us to align all the necessary veterinary certificates. Even CEFTA countries, where we were once leaders in egg exports, have harmonized their regulations with the EU, making exports there increasingly difficult," Budimovic noted. As for pricing, he explained that production conditions and input costs, such as electricity, are key influencing factors. "Many large producers in Serbia are turning to alternative energy sources, particularly solar panels, because poultry farms—where chicks are raised and eggs are produced—require constant temperatures, periodic air exchange, and other controlled ambient conditions. Hens are extremely sensitive to such factors, making farms high consumers of energy," emphasized Budimovic.

How to stop the gray economy in agriculture?

According to data from the National Alliance for Local Economic Development (NALED), agriculture is one of the largest generators of the so-called "gray economy" in the country. This is primarily a reflection of decades of unregulated agricultural product trade and the absence of a unified market.

For example, fruit growers claim that their apples, regardless of the quantity being traded, pass through six different hands before reaching the final consumer. Each intermediary increases the price, taking at least a dinar or two, while state authorities, primarily market inspectors, are nowhere to be found. We can only speculate about the profits each intermediary extracts, not just from the producers but also from the state. The case of fruit growers is not unique—almost the same situation applies to the sale of other agricultural products. In such unregulated trade system, money flows from hand to hand, from middlemen to wholesalers and processors, with almost no oversight. As a result, producers earn the least, while the state gets practically nothing from these numerous cash transactions, especially in green markets and wholesale farmers' markets. The problem is particularly pronounced in the illegal trade of tobacco, livestock, cooking oil, cured meat products, and even imported goods of questionable quality, which are significantly cheaper.

The existence of the "gray economy" in agriculture, along with unfair competition, negatively impacts the operations of agricultural cooperatives, which, as legal entities, allocate significant funds for taxes and employee contributions, as well as other legally mandated budgetary payments. The Cooperative Union of Vojvodina has repeatedly urged the relevant state authorities to adopt a unified program to eliminate the gray economy. This program should involve not only farmers and those involved in agricultural trade but also other segments of society.

Experts from NALED estimate that reducing the illegal trade of agricultural and food products, as well as livestock, to the average level of Central and Eastern European countries could be achieved within three to five years. Reaching the European average, however, would take about ten years. Of course, this requires increased number of state inspectors. In addition to the already adopted National Program for Combating the Gray Economy, transparent support for legal business operations and employment is also essential, states website of the Serbian Ministry of Agriculture, Forestry and Water Management.