Agribusiness 2019 - Land is Everything

AGRIBUSINESS Land Is Everything 2019 Branislav Nedimović, Serbian Minister of Agriculture, Forestry and Water Management ● Franco Manzato, Undersecretary for Agriculture, Italian Ministry of Agriculture, Food and Forestry ● Vuk Radojević, Vojvodina Provincial Secretary for Agriculture, Forestry and Water Management ● Srbislav Vidojević, Timomed Managing Director ● Alexandre Petrović, Managing Director, Cleverfarm ● Aleksandar Cvetić, CEO of BCM Trade d.o.o. (Ltd.)

Serbia – Agriculture

AGRICULTURE THE ENGINE OF SERBIAN ECONOMY Agriculture in Serbia is at the heart of the economy and is an engine for the development of rural areas. Agriculture’s contribution to Serbia’s GDP remains high. In 2016, agriculture accounted for 11.9 per cent of GDP, 2.4 per cent higher than in 2017.

This high participation in the country’s GDP has mostly resulted from Serbia’s fertile land and natural conditions for agricultural production, as well as the continued importance of the rural economy to Serbia’s population.

According to the Serbian Statistical Office, there are 680,000 people employed in agriculture or 21 per cent of the total labour force in the country. Agriculture also is the most important export sector in Serbia.

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COMMENT

On The Road To

NEW MARKETS The strategic goal of transforming the Serbian agriculture sector and food industry from exporters of raw materials to exporters of finished products seems to be increasingly achievable thanks to intense efforts to encourage investment in the opening and modernising of processing capacities

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work is being conducted in parallel on improving all aspects ational measures to support the agribusiness sector of food safety, with amendments to food safety laws that have finally received significant and long-awaited were passed in March 2019 encompassing all sectors in “support” in the form of IPARD measures. In 2018, that chain. after eight years of waiting, Serbia received IPARD The amendments to this Law also represent a major step accreditation and the first funding contests were announced, forward towards EU accession, because they have transferred while in 2019 funds began being paid to beneficiaries. The relevant EU regulations into the national legislation, while response based on the five public calls to date has been exthe latest changes define, in more detail and more clearly, ceptional and, according to the claim of Agriculture Minister the responsibilities of different institutions, and control the Branislav Nedimović, we can now say that the first IPARD responsibility of food business operators. funding is, slowly but surely, reaching the hands of Serbian The status and tasks under the jurisdiction of the Diagricultural producers and processors, i.e. the right hands.

What lies ahead is ensuring effective access to new rectorate of National Reference Laboratories have also markets, improving the implementabeen defined, within the scope of which One of the universal topics a laboratory for testing the quality tion of existing trade agreements and of milk was accredited at the end of eliminating non-tariff barriers. that everyone will have to 2018, as well as the organisation of the By stimulating the business envideal with, including Serbia, is method of conducting official controls ronment and undertaking proactive diplomatic activities, the Ministry of climate change and mitigating and obligatory monitoring, but also the of certain flexibilities for Agriculture is striving to make this the negative effects it brings. introduction small producers on the basis of the possible for agricultural producers and Due to its great dependence EU model. the food industry.

One of the universal topics that Intensive work is being conducted on weather conditions, everyone will have to deal with, including on the further opening of new markets, agricultural production Serbia, is climate change and mitigatincreasing approved quotas for beef exports to Turkey, due to high demand, ing the negative effects it brings. Due is the “first hit” opening the Chinese market for animalto its great dependence on weather based products and corn. Moreover, work is also continuing conditions, agricultural production is the “first hit”. on preparing conditions to enable exports of food products It is for this reason that Serbia is investing intensively in to Egypt, Indonesia, India and the UAE. the construction of irrigation systems, with the goal being Standing out in particular are efforts aimed at improving to increase the percentage of arable land encompassed by livestock production in Serbia, which represents a driver of irrigation systems from three per cent to eight per cent by agricultural development, and testifying to this is growth in 2021. Moreover, major efforts are being exerted to modernise demand for beef and veal on the world market. anti-hail stations, with the first project of 99 automatic antiAlong with improving primary production and processing, hail stations made operational this spring.

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INTERVIEW

BRANISLAV NEDIMOVIĆ, SERBIAN MINISTER OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT

GREAT CHANCE

On New Markets The use of IPARD funds, higher national subsidies and investments in the processing sector are creating ever better conditions for the development of the Serbian agriculture and food industry

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tilising funds from the IPARD programme, increased national subsidies, investments in livestock farming and the processing sector – thee are just the preconditions for improving competitiveness and creating added value of products, on the one hand, and the opening up of new markets and export opportunities, on the other. Agriculture Minister Nedimović also announces the continuation of investments in irrigation and anti-hail protection, while a new platform with geospatial dana has been introduced with the aim of improving the management of agricultural land

Resources from EU pre-accession funds for rural development - the IPARD programme, were finally paid into the accounts of the first beneficiaries in Serbia during March. How many public calls have so far been published, within the scope of which measures, and what was the response of farmers like? To what did the highest number of requests relate?

- To date, five public calls have been published and closed within the framework of both IPARD measures: three public calls under 6

the scope of Measure 1 - Investments in the physical assets of agricultural holdings; and two public calls under the scope of Measure 3 - Investments in physical assets relating to the processing and marketing of agricultural and fishery products.

The response to these public calls was exceptional, with a total of 725 requests received. For Measure 1, which is primarily (but not exclusively) intended for individual agricultural producers, 629 requests were received, which confirms that our farmers recognised the opportunity, through IPARD, to improve production at their farms, renew mechanisation, build facilities and improve productivity and the competitiveness of their products on the market. One particularly encouraging fact is that a recently closed public call within this measure, which was intended, among other things, for investments in the construction of facilities, 151 requests were received.

The highest interest was for purchasing new tractors (as many as 393 requests), but also mechanisation and equipment for the picking, harvesting, sorting and packaging of agricultural products, while in the areas of construction, farmers showed the greatest interest in constructing storage facilities in the fruit and vegetable sector.

Within the scope of Measure 3, a total of 107 requests were submitted, which is also an excellent result, considering that this relates to high-value investments in the development of processing capacities. Almost half of all requests came from the fruit and vegetable sector, while the greatest interest was expressed in the procurement and modernisation of equipment for processing and packaging products.

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We can now say that the first IPARD resources are, slowly but surely, reaching the hands of our agricultural producers and processors, i.e. the right hands.

How many IPARD funding calls will be published this year, for which total amount and for which purposes?

- Plans for this year include the publishing of four calls for IPARD, for which close to 90 million euros has been earmarked. The reallocation of funds within the budget provided an additional 3.3 million euros for investments in the physical assets of agricultural holdings for processing and marketing within the framework of the IPARD programme.

This summer we’re awaited by new public calls for both Measure 1 and Measure 3, intended for Serbian farmers and processors to procure machines and tractors, construct facilities and equip them with the necessary technological equipment.

At the end of the year, a public call is also expected to be announced within the framework of the very attractive Measure 7 - Diversification of agricultural holdings and the development of operations, which is directed towards the development of rural tourism. The measure is in the process of being accredited, but we invite all farmers to plan their investments on time and start preparing documentation in a timely manner.

One public call is also dedicated to Measure 9, which relates to technical support to institutions responsible for implementing the IPARD programme.

from 10,000 to 15,000 dinars per head, as well as incentives for dairy cows – from 20,000 to 30,000 dinars per head, and incentives for raising calves for fattening - from 10,000 to 20,000 dinars per head.

In addition to these support measures, it is also important for the livestock sector that grants are allocated, both in primary production and in the processing of meat and milk. The grant amounts range from 50 to 65% of the invested amount, depending on whether the beneficiaries of incentive funds are located in an area with aggravated conditions for working in agriculture.

We will continue with credit support in the livestock sector, i.e. we will continue to subsidise interest rates.

The Ministry of Agriculture has launched a project for the automation of the antihail protection system. What are plans like for this year? The first automatic anti-hail defence system will be installed at the Valjevo Radar Centre. Could you give us the details?

- The Ministry of Agriculture, Forestry and Water Management has launched a project to automate the system of anti-hail protection on the territory of the Valjevo Radar Centre, with the aim of encompassing the entire territory of Serbia with this protection system in the coming years, which will be more efficient and effective.

The plan is to upgrade 13 such radar systems and centres in Serbia by automating anti-hail protection processes, which will cost a total of 25 million euros.

Equipment has been secured for the automatic remote launching of stations at 99 locations on the territory of the Valjevo Radar Centre – the area of the Mačvan and Kolubara districts (excluding the territory of the Municipality of Ljig) and on the territory of the Municipality of Obrenovac. Alongside equipment, the project also encompasses construction works

We can now say that the first IPARD resources are, slowly but surely, reaching the hands of our agricultural producers and processors, i.e. the right hands

Funds intended for the Ministry of Agriculture increased in 2019 by 17.4%, or 7.7 billion dinars, compared to last year’s budget. Will you continue to strongly support the livestock sector, as one of the most important branches of agriculture for which support measures are still earmarked?

- We’ve allocated money for incentive funding for fattening cattle, pigs, lambs and cattle. They’ve also been increased for fattening beef from 10,000 to 15,000 dinars per head.

The new markets of Turkey and China are open and there is ever increasing demand for beef. It is for this reason that we want to continue strongly encouraging and supporting those producers who are engaged in livestock fattening. We will continue to incentivise funding per head of livestock for the high-quality breeding of dairy and beef cows, as well as for high-quality breeding sheep, goats and sows.

Incentives for high-quality breeding sows have increased

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on the renovation of existing anti-hail stations, as well as equipping the radar centre with hardware and software upgrades with which oversight and action processes are managed.

KruĹĄevac-based domestic company Trajal korporacija A.D. (JSC) was engaged on the construction of automatic anti-hail

defence systems, for which the value of works and equipment amount to more than three million dinars.

Works are well underway on the construction of the system in the area of the Valjevo radar centre, while the completed first phase will enable the system for defence against hail to be activated already during this season.

The new markets of Turkey and China are open and there is ever increasing demand for beef. It is for this reason that we want to continue strongly encouraging and supporting those producers who are engaged in livestock fattening

The Ministry has intensified cooperation with African countries in the previous period, such as Egypt, to which Serbian wheat can now be exported after a break of 40 years. For which other agricultural products does interest in mutual exchange exist and with which countries?

- The Ministry of Agriculture, Forestry and Water Management has established cooperation with African countries, including Tunisia, Algeria, Burundi, Kenya and Sudan, while during 2017 and 2018, cooperation was intensified with Egypt, Morocco, Liberia, Lesotho and Ghana.

I made a two-day visit to Egypt at the beginning of this year, during which I met with Egyptian Minister of Agriculture and Land Reclamation Ezzeddine Abustit and Supply and External Trade Minister Ali al-Muselhi, with whom the launch of exports of Serbian wheat to Egypt was agreed. During this visit, the two sides emphasised the importance of opening the Egyptian market up to some of Serbia’s high-quality produce, such as strawberries, raspberries and other berries, as well as seed 8

produce. The Egyptian side also previously expressed interest in importing beef cows from Serbia.

Cooperation in the veterinary field is conducted on the basis of a memorandum signed between the two ministries.

The competent authorities of the two countries harmonised international veterinary certificates for the export of one-day chicks, sheep and goats to Egypt in the previous period, as well as a health certificate for the export of washed wool. An international veterinary certificate for the export of cattle for slaughter to Egypt is in the process of being harmonised.

Cooperation in the veterinary field between the Government of Serbia and the Government of the Kingdom of Morocco has been defined by the Agreement on Cooperation in the Field of Agriculture between the relevant ministries, while the recent session of the Mixed Committee for Economic Cooperation with Morocco saw agreement reached on the intensifying of cooperation between the competent veterinary and phyto-sanitary services, in order to improve the goods exchange of agricultural and food products. With the aim of marketing fishery products from the Kingdom of Morocco in the Republic of Serbia, the competent authorities of the two countries agreed on a certificate for the import of fishery products to the Republic of Serbia.

Our delegation also visited the Republic of Liberia in the previous period, in order to agree on further cooperation steps. Alongside agricultural cooperation, the further strengthening of economic relations between the two countries was also agreed. The Agreement on Cooperation in the Field of Agriculture was signed with Liberia in 2018, along with the Protocol on Cooperation in the Field of Scientific Research Activities, Technical and Technological Innovations, Training and Expert Programmes in the Field of Agriculture.

With the aim of creating the institutional basis to improve cooperation in the field of agriculture with the Republic of Ghana and the Kingdom of Lesotho, the following bilateral agreements were signed in 2018: Memorandum on Cooperation between the Government of the Republic of Serbia and the Government of the Republic of Ghana in the Field of Agriculture and the Agreement on Cooperation in the Field of Agriculture between our ministry and the Ministry of Agriculture and Food Security of the Kingdom of Lesotho.

The area of West Africa certainly represents a significant

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opportunity for potential Serbian investors in many areas in which we were present in the 1970s and ‘80s.

One of the key projects in the department that you head is also irrigation. What has been done to date and which works are planned to be realised by the end of 2019?

- The aim of the project is to increase productivity and efficiency in the agricultural sector through the expansion of irrigation systems, namely: regional hydro-systems for irrigation and dual-purpose systems on the territories of Bačka and Banat, and hydro-reclamation systems on the territories of Šabac, Čačak and the Pančevo Fen. Works encompassed by the project include the construction, reconstruction and rehabilitation of water facilities and irrigation systems, namely: the Međa dual-purpose system, Janko’s Bridge I and II, Itebej I and Rečej; the construction of CS Jegrička, CS Pesir and CS Kaloca; the irrigation system Nova Crnja-Žitište, TisaPalić, Kikinda-CS Mokrinska II and Mali Iđoš and hydro-reclamation systems on the territories of Šabac, Čačak and the Pančevo Fen, as well as offering services for conducting expert supervision of the execution of works on the construction, reconstruction and rehabilitation of water facilities and irrigation systems, specifically for the regional hydro-system for irrigation and dual-purpose systems on the territories of Bačka and Banat, and the hydro-reclamation system on the territories of Šabac, Čačak and the Pančevo Fen. The construction of the contracted facilities on the territories of Bačka, Banat, Srem and Šabac will enable the irrigating of around 47,954 ha of additional areas of agricultural land.

In 2019, alongside the completion of contracted works on the construction of the Pesir pumping station and the Kikinda-CS Mokrinska II irrigation system, and the continuation of works on the construction of the Mali Iđoš irrigation system and the hydro-reclamation system on the territory of Šabac, the intention of expanding activities on implementation of the project activities means that plans include the launch of realisation for another 18 projects on the territories of Bačka, Banat and Srem, with which conditions will be secured for the irrigating of an additional 57,248 ha of agricultural land.

agricultural land under state ownership, while we also brought the decision to take a step further – to make this record completely transparent and available to the public.

This relates not only to availability of the list of plot numbers that are published on the website of the Directorate for Agricultural Land, but also to the mapping of state agricultural land on satellite images of the portal of national geo-spatial data - GeoSrbija.

This portal, which is accessible and represents a service to all citizens of Serbia, includes a separate section in which all registered land plots managed by the Ministry of Agriculture are clearly mapped, while plots that are owned by the Republic of Serbia but that are exempt from leasing due to certain legal or physical reasons are also indexed and recorded.

It is necessary to emphasise that this database is dynamic and that changes occur on a daily basis, which are monitored by the Directorate and updated on a monthly basis, and by the end of April this year we will have launched another public application enabling the determining of who the leaseholders of mapped plots are, as well as the duration of the lease period and the price paid to lease plots. With this we have ensured the full informing of the public regarding the management of this important state resource, which in itself represents the most effective mechanism in the fight against usurpation and other illegal activities relating to this important resource.

The next project that the Ministry is working on actively relates to securing services that will report automatically – via satellite images updated on a weekly basis – to the Directorate regarding data on plots where agricultural production exists, and which are not leasing subjects during the current agro-economic year. Agricultural inspectors will visit all of these plots with the aim of determining the identity of illegal users and taking legal measures against those responsible, and this service should already yield results by the end of June this year.

Works are well underway on the construction of the system in the area of the Valjevo radar centre, while the completed first phase will enable the system for defence against hail to be activated already during this season

With the aim of improving the management of agricultural land and preventing the illegal use of state land, the ‘Geo Srbija’ portal now also has data available on agricultural land under state ownership. What type of data is available to users and what are the positive effects of such public announcements?

- During the course of 2018 and early this year, the Directorate for Agricultural Land implemented a number of systemic measures aimed at indexing and establishing precise records of 9

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SRBISLAV VIDOJEVIĆ, TIMOMED MANAGING DIRECTOR

Secure Bulk Purchases – PRODUCTION EXPANSION The number of beehives in Serbia has almost tripled in ten years

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imomed has been cooperating successfully with the beekeepers of the Timok region for 30 years, bulk buying all quantities of honey produced and offered, and that secure bulk buying of honey – according to the company – has created interest in increasing production, which has doubled since the company’s establishment. A similar trend has been recorded across Serbia, where – thanks to state incentives – the number of beehives has reached 1.2 million.

What do you expect from the completion of this project?

- For 30 years already, Serbia has had a modern company with a facility that satisfies all working and export conditions for all markets, and which continuously – to the satisfaction of all beekeepers – bulk purchases honey and works for renowned buyers, and which has access to all world markets due to it possessing ISO 22000, HACCP, HALAL, KOSHER and GOST certificates. That’s our facility in Knjaževac, but there are a few more facilities in Serbia that were developed using their own resources and without anyone else’s assistance. We are glad that we will gain another plant in the country, despite there already being enough facilities that bulk buy all quantities of honey offered on the market, which represents a Serbian brand and has been generating sales for more than 20 years.

Timomed has a long history of producing honey and honey-based products. Do you sell your products exclusively in the country or also abroad? How would you assess the situation on the honey market; what are the prospects?

- Timomed has existed for 30 years already, and has been working since its establishment to develop and advance the production of The relevant ministry has recognised the importance of beebee-keepers in the Timok region, such that keeping as an economic branch, and this Timomed sells its products honey production has doubled during this year – in addition to incentives – has also period and currently totals around 1,000 on the domestic market and on secured more favourable conditions when tonnes annually. All quantities of honey that comes to the number of hives. How satforeign markets, with around 40 itisfied are produced and offered to the market are are you with state incentives in the per cent sold locally and the purchased in bulk from bee-keepers and field of bee-keeping; and which new measpaid for within agreed deadlines, and this ures, in your opinion, would further conremainder exported secure purchasing of honey has generated tribute to improving production? interest in increasing production among bee-keepers.

- That which the state currently does for bee-keepers and beeTimomed sells its products on the domestic market and on keeping in Serbia is good, and has yielded a total positive effect on foreign markets, with around 40 per cent sold locally and the bee-keeping. The incentive funding of the Ministry of Agriculture, remainder exported. Within the Republic of Serbia, honey is along with regular bulk purchases, has provided results in terms of delivered to large retail chains, leading confectioners and health the number of hives, of which there were only 350,000-400,000 food retailers, because our range also includes organic honey. in Serbia 10 years ago, while today there are around 1.2 million. We Internationally, we have cooperation lasting many years with would remind readers that Timomed even earlier – as Serbia’s first customers from EU countries, the U.S. and the Middle East. We exporter of honey – provided 15,000 hives for bee-keepers, through also cooperate with countries in the region, while we are exerting favourable loans, in order to provide a base for the bulk purchase of every effort to conquer the Russian market and we will succeed. honey, thus raising bee-keeping to a higher level and enabling many families to sustain themselves in this way. Timomed has worked The construction of a state-of-the-art honey processing plant since its founding to educate bee-keepers and provide reproductive began last June. Bee-keepers decided to build their own plant, material, and has excellent collaborative relationships with nearly in order to be able to achieve a realistic market price for honey.

1,000 bee-keepers in Serbia.

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INTERVIEW

FRANCO MANZATO, UNDERSECRETARY FOR AGRICULTURE, ITALIAN MINISTRY OF AGRICULTURE, FOOD AND FORESTRY

REINFORCE

A Common Legislative Framework Italian investments in the field of agriculture have excellent results, while our trade in this sector is reaching new heights. With my visit to Serbia, the Italian Government wants to send a strong message of support to the development of our two countries' bilateral relations in the field of agriculture and agribusiness

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rom 11th to 17th May, the International Agricultural Fair in Novi Sad will be honoured to have Italy as an official country partner for the 2nd time. This is just one of many signs of the commitment of both Italy and Serbia to work hard to explore new avenues of cooperation in the agriculture sector. The visit of Franco Manzato, Undersecretary for Agriculture at the Italian Ministry of Agriculture, Food and Forestry, represents yet another sign of the excellent bilateral relations between Italy and Serbia, during a year in which we are celebrating 140 years of diplomatic relations between the two countries and 10 years of their strategic partnership.

What are the main goals of your visit to Serbia?

- With my visit to Serbia, the Italian Government wants to send a strong message of support to the development of our two countries’ bilateral relations in the field of agriculture and agribusiness. Italy is extremely proud to be the Partner Country

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of this year’s Novi Sad International Agriculture Fair, and I am personally glad to be able to participate to the inauguration day, together with the Serbian authorities. It is very important for us to show Italian companies that we value their work on the Southeast European market and that we support the development of strong collaborations with business partners from Serbia and the entire Balkan region.

How important is the field of agriculture in Italian-Serbian relations?

- Agriculture and agribusiness generally represent an essential part of our economies. Italy’s agri-food sector as a whole is worth more than 130 billion euros, or 11% of our GDP, while at the same time agriculture’s contribution to Serbia’s GDP remains high.

Of course, this is fully reflected in bilateral trade between our two Countries. Serbian agricultural exports to Italy increased by more than 25% in 2018, while Italian export to Serbia rose

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by almost 4%. Statistics for last year describe a huge intensification in our exchanges, but also - more importantly - show huge potential for further growth. I am sure that our presence at the Novi Sad fair, both institutionally and commercially, will help advance our recent achievements.

This year sees Italy as the ‘Country Partner’ of the International Agricultural Fair in Novi Sad for the 2nd time, while this event will also mark the 7th collective exhibition of food producers and companies involved in food production. What is the main message you’d like to send to Italian and Serbian partners?

- Italy’s participation as Partner Country of the International Agricultural Fair represents one of the first follow-ups to Prime Minister Giuseppe Conte’s visit to Belgrade last March. We are also this year celebrating 140 years of diplomatic relations and 10 years of the strategic partnership between Italy and Serbia, which is why we want to honour the Italian-Serbian friendship in every possible field – from culture to trade, science to industry, tourism to agriculture...

As you rightly point out, we have had a national pavilion for seven consecutive years, thanks to the incredible work of the Italian Trade Agency ICE and the Italian Embassy in Belgrade. This year we are happy to host 27 companies at “Padiglione Italia”, together with representatives of the Veneto Region and Verona’s Fair. We are also organising four seminars during the course of the week, dedicated to new technologies, green and circular economies, hazelnut production and agricultural machinery.

in Serbia” label, quite the contrary. The uniqueness of our territories and products should be valued. Italian and Serbian citizens should be able to enjoy high quality products. But we should work together to protect our producers and consumers, exchange experiences and technologies, and to reinforce a common legislative framework.

Considering the strength and high quality of Italian food products, is there at all a niche market for products coming from

the developing countries such as Serbia?

- In my opinion, the future of the entire European food production – and this is true also for Serbia, which I would not consider as being a developing country in this respect – lies in high quality and organic production. If we think about geography and the history of our agriculture, we can’t consider our products as pure commodities. We have to use new technologies to revive our traditional products, but also adopt European and international laws in order to protect those same products on the global market. Italy has a clear vision regarding all of that, and we are ready to share our experience with our partners starting from EU candidate countries like Serbia.

We want to show Italian companies that we value their work on the SEE market and that we support the development of strong collaborations with businesses from Serbia and the entire Balkan region

In which areas of cooperation do you see the greatest potential to advance our cooperation? Is it in mutual trade or Italian investments in the food sector in Serbia?

- I do believe that trade and direct investments go hand in hand; you can’t have one without the other. Italy has always been present in Serbia, and Italian companies have invested in the local agricultural sector with excellent results. We would be more than happy to increase the presence of Serbian investors in Italy as well, because we truly believe that economic growth can only be achieved if we integrate our value chains and promote free trade within a common European market.

This does not mean that we do not want to promote our “Made in Italy” brand or that you should not develop a stronger “Made

Italy supports Serbia’s efforts to join the EU and the harmonisation of Serbia’s legal framework with the EU acquis. How satisfied are you with Serbia’s progress through the several twinning projects established in agriculture?

- Italy stands close to Serbia on its path towards the EU, at both the political and technical levels, and twinning projects are definitely a useful instrument for facilitating accession processes. We are very satisfied with the cooperation between our countries’ ministries of agriculture: Italian and Serbian 13

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experts have worked together on four twinning projects in the last six years. The EU accession process represents a great opportunity to raise the standards of Serbian legislation, thereby having a direct impact on the well-being of citizens.

Serbia has shown a great deal of progress in the agricultural sector, and Italy is supporting the advancement of negotiations in this field in Brussels.

business operators. Technologies and knowledge stemming from high level research institutions can be applied directly by Italian and Serbian producers. Tradition and innovation should not be seen as opposites – they can actually represent two sides of the same coin.

Last year saw the ministries of agriculture of Italy and Serbia sign a Memorandum of Understanding in the phyto-sanitary field.

What was the importance of this document, and in which areas do you envisage further institutional cooperation?

- We recently concluded activities on the twinning project aimed at “strengthening the capacities of the phytosanitary sector in the field of registering plant varieties, including improvement in variety testing authorities”.

Within this framework, our ministries of agriculture signed the Memorandum to which you are referring. Today we can state with pride that, thanks to the strong institutional will of both Serbia and Italy, agricultural experts from our two Countries – particularly phyto-sanitary inspectors – are in direct contact and can trust each other’s work.

We will, of course, continue to work together on many other issues, such as rural development, while another twinning project is still ongoing and deals with “the legislative framework in the field of organic production and food quality policy”.

Of the European Union’s 28 member states, Italy has the most food products with PDO (Protected Designation of Origin) and PGI (Protected Geographical Indication) labels. What challenges are posed by e-commerce when it comes to international food counterfeiting?

- Italy is very proud of this record. We have 299 registered PDO and PGI food products, plus all the wines and spirits! This is a huge number that allows us not only to protect our farmers and artisans, but also to boost our exports. It is paramount for us to be able to be present on international markets with recognisable brands that are synonymous with safe and high-quality food. That’s why the Italian Ministry of Agriculture is actively promoting the fight against food counterfeiting. We recently signed important agreements with Amazon, eBay and AliBaba – three of the world’s biggest e-commerce platforms.

We are also very strict when it comes to reporting so-called “Italian sounding” cases, with our Inspectorate for fraud repression and quality protection of the agri-food products having carried out 54,098 anti-fraud controls in 2018.

The Italian Government’s programme pledges to “protect the highest-quality Made in Italy products”. What role does technology play in maintaining food quality today?

- I do believe that technology is the key to thriving in the near future, especially for small producers. The ‘Agriculture 4.0’ concept is finally taking off and we should apply it to every aspect of our work, from production to transformation, and from distribution to consumption. Italian scientists from our main national research centre (Centro Nazionale Ricerche – CNR) will participate in the International Agriculture Fair in Novi Sad, in order to share the results of their studies in the field of food sciences, biology and green chemistry with farmers and food

How resilient are food exports to the recent interruptions in global trade flows?

- As previously stated, we should not aim to produce commodities, but rather high-quality products. Commodities are more exposed to external shocks and obstacles to global trade, while high-end food products tend to have stable demand among international consumers. Prosciutto di Parma, Prosecco, Chianti and Gorgonzola can only come from Italy, which is why they are so appreciated all over the world. I am pretty sure that your honey from Fruška Gora, your cheese from Pirot and your raspberries from Arilje will very soon be world famous, allowing your local producers to prosper.

I am pretty sure that your honey from Fruška Gora, your cheese from Pirot and your raspberries from Arilje will very soon be world famous, allowing your local producers to prosper

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DEVELOPMENT AGENCY OF VOJVODINA (RAV)

BUSINESS

What Were We Shown

By The Suppliers Day – AGRIBUSINESS 2019?

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uppliers Day – Agribusiness 2019, organised by the Development Agency of Vojvodina (RAV), brought together representatives of more than 120 firms and institutions in Novi Sad on 9th April: companies, farmsteads, institutions and cooperatives. A wide range of sector-specific producers were also registered: fruit and vegetables, cereal cultivation, the milling, dairy and meat industries, beekeepers, manufacturers of agricultural machinery, animal fodder, beverages, sugar, edible oils and fats, mushrooms, packaging etc. The event saw around 550 B2B meetings held.

The Development Agency of Vojvodina, which organises two supplier day events annually (a spring one for agribusiness and an autumn one for the automotive industry), is registering increasing interest each year. There are ever more young people in private businesses in the agribusiness sector, with lots of energy and imagination invested in following world trends regarding what is put in and yielded from the soil beneath our feet: vegetable-based spreads, truffles, chickpeas, flour milled in the traditional way, health food, family heritage in which elders provide land and experience, while youngsters monitor trends and propel operations forward, striving to enter major chains, become suppliers and export produce. This entire page wouldn’t be enough to tell the stories of those who participated, but just a few of them are sufficient to form the picture: Sanja Melkus and Violeta Ivković, owners of firm Truff Truff and its increasingly renowned “products from Vojvodina truffles”, managed to realise their plans regarding sales in Serbia an 18-month period; Dejan Stefanović, a grower of oyster and shiitake mushrooms from Sremski Karlovac, started by selling his produce on open markets, which he still does, but he also managed to enter the supply chain of Lidl and wants to enter other chains; Ljubica Erkić, owner of company Pastai, has managed – since 2016 – to cover the entire Serbian market with 50 different shapes and flavours of pasta enriched with vegetables and herbs, and she is now preparing for export. Following one meeting at last year’s Supplier Day event, she made her way onto the shelves of Univerexport, and following another meeting her suppliers of flour became Nemanja Mirilov and Biljana Markov from PG Mirilov, who also - with raw chickpeas and high-protein gluten-free flour created using the traditional method – returned again this year and again held successful discussions. There was also satisfaction among many other major companies (Delhaize,

Univerexport, Van Drunen Farms, IndoAdria Serbia etc.) and small enterprises. Multiple ten-minute meetings are perhaps a grind, but they get the job done, as we were told by another young entrepreneur - Tatjana Avramov (Real Red Raspberry): “We have ten minutes to sell our product, what we do, our energy”.

The majority of them will come again, while some new ones will also come, which is why RAV will organise it all again. The next Supplier Day for Agribusiness will be held around this time next year. However, RAV has numerous activities within this sector, which is sees as one of the most important. RAV promotes domestic products at international agriculture and food fairs, advises those wanting to invest in Vojvodina, helps domestic companies enter supplier chains (via the Supplier Day event and Supplier Database), and provides information on funding drives and contests announced by the Provincial authorities. And this is now an opportunity to announce a competition that should have be published by the release of this edition, and that’s the Competition for the support of agricultural policy and the policy of rural development, or support for increasing efficiency measures and competitiveness in selecting and using modern technologies and equipment in agriculture. All information and questions related to this competition, but also regarding supply chains, where and how to invest, and the kind of help available for that, can be found via the www.rav.org.rs website or by contacting one of the advisers of the Development Agency of Vojvodina. We’re here to help.

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INTERVIEW

VUK RADOJEVIĆ, VOJVODINA PROVINCIAL SECRETARY FOR AGRICULTURE, FORESTRY AND WATER MANAGEMENT

BETTER BUDGET Conditions Created Responsible work in realising farmers requests

he Provincial Secretariat of AP Vojvodina this year continued allocating significant subsidies for its farmers. These funds are intended for livestock farmers, fruit growers and young farmers, as well as for organic production, cold storage facilities and wineries, while bee-keeping is also in focus – given the significant increase in honey exports.

According to Provincial Secretary for Agriculture Vuk Radojević, increasing the irrigating of areas is continuing, through the second phase of works on projects from the Abu Dhabi Fund, but also investments in anti-hail protection.

managed to realise all the commitments taken on from the budget in 2017 and 2018, so we started 2019 with a 96% more operational agrarian budget. When it comes to the Agricultural Land Programme, planned funding amounts to 1.52 billion dinars, while another 1.25 billion dinars has been allocated for direct support to farmsteads. The agrarian policy of the competent secretariat is directed towards supporting intensive branches of agriculture. Incentive support of the competent secretariat is realised through the Agricultural Land Programme, within the scope of which we are continuing all measures from the previous year. A new funding contest line in this programme relates to improving the work of voluntary firefighting companies, for which 40 million dinars has been allocated. For the Programme to develop agriculture and villages, we have earmarked funds totalling 668 million dinars. We are continuing – within the framework of this programme – to support the equipping of livestock farms, polytunnels/greenhouses, cold storage facilities, wineries, perennial plantations, bee-keeping and more. A new measure in this programme is subsidising the equipping of micro breweries, for which we have allocated 20 million dinars.

You’ve announced that AP Vojvodina will have, operationally, the most effective and efficient agricultural budget this year. Explain to us what that relates to, how the budget is conceived and what the novelties are?

- Vojvodina’s agrarian pot for 2019 totals 6.38 billion dinars, and that amount is lower compared to the previous year, when the agrarian budget totalled 7.03 billion dinars. We have a nominally smaller agrarian budget for this year, but it is more effective operationally, because by working responsibly we’ve

The Secretariat invested significant financial resources in supporting the development of bee-keeping in the previous period, which other sectors of agricultural production will be in focus in 2019?

- Bee-keeping is experiencing expansion and needs further improvements, as Serbia generates significant foreign currency gains through exports of bee products. Some 2,538,139 kg of honey was exported in 2017, worth a total of 9,776,312 dollars. Through subsidies for procurements for bee-keeping

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societies and new equipment, we’ve invested 91,907,595 dinars with applicants in the development of bee-keeping in Vojvodina over the last two years. Apart from bee-keepers, vegetable growers, cattle breeders, fruit growers, winegrowers and winemakers, hop farmers, organic food producers, dairy and meat processors, and craft beer producers can also count on the support our secretariat.

effects? How much money has so far been allocated for this kind of production?

- The Action Plan for the development of organic production in Vojvodina is currently in the phase of specifying the project tasks of individual participants. The authors of the plan will be people with rich experience in this field from the Faculty of Agriculture in Novi Sad, the Open University, the Terra’s Association from Subotica and the Belgrade-based National

Implementation of the first stage of the irrigation project began last year. How is implementation progressing and what are further plans like?

- Works began in August 2017 on 11 irrigation projects in Vojvodina that are being financed by the Abu Dhabi Fund. Works have been completed on eight projects, while the remaining three - CS Jegrička CP Pesir and the Kikinda regional subsystem – are in the final phases. The first stage of works is worth 1.5 billion dinars and its implementation will enable the irrigating of around 37,000 ha of land. The first stage was supplemented with the addition of the project launched this March to construct the Mali Iđoš regional subsystem – works on which are worth up to 3,621,021 euros. Works on the second stage of the irrigation project from the Abu Dhabi Fund are envisaged to begin during the course of this year, with new 12 projects of a total investment value of 21,497,578 euros.

The Provincial Secretariat for Agriculture, in cooperation with the National Hydro-meteorological Institute, is working to improve the system for defending against hail in Vojvodina. Could tell us the amounts that have been allocated for this purpose this year?

- As a reminder, the competent secretariat allocated, through incentive support in 2017, funds amounting to up to 20 million dinars for procurement of anti-hail rockets, which we co-financed by up to 60 per cent, in cooperation with local self-governments. With the aim of more effectively protecting agricultural crops against hailstones in Vojvodina, in 2018 we altered that agrarian measure, began tendering for the public procurement of anti-hail rockets, which we then make available to the National Hydro-meteorologial Insitute of Serbia, which has jurisdiction over anti-hail protection and which distributes them further, on the basis of the needs of the radar centres of Fruška Gora, Bajša and Samoš. Anti-hail protection begins on 15th April and, with respect for deadlines, the secretariat had by 2nd April already handed over 780 anti-hail rockets to the National Hydro-meteorological Insitute of Serbia for use at the radar centre on Fruška Gora. We have earmarked 30 million dinars for anti-hail protection in 2019.

Alliance for Local Economic Development, NALED. The aim of the Action Plan is to improve cooperation and partnerships of the civil sector, educational and other institutions with the holders of authority at the provincial level, while creating conditions for the development of organic production and raising the quality of life of the population and preservation of the environment, which impacts indirectly on the economic development of the Province.

The agrarian policy of the competent secretariat is directed towards supporting intensive branches of agriculture

Has the Action Plan for Organic Agriculture Development in Vojvodina been prepared; what are its objectives and planned

The Provincial Secretariat for Agriculture provides special support to young farmers?

- In 2017, together with the Ministry of Agriculture, Forestry and Water Management, the Provincial Secretariat for Agriculture published the first ever Funding Contest for the support of youngsters, for which we allocated funds amounting to up to 100 million dinars. And, given that there was great interest in this measure among farmers, we increased funding to 200 million dinars in 2018. I can state with satisfaction that in two years we had the effect of creating 252 new farms owned by young farmers aged from 18 to 40. I expect to achieve even better results through this agrarian measure this year, and I will tell you that we’ve earmarked up to 250 million dinars for supporting young farmers.

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European Union

CRUCIAL ENVIRONMENTAL OBJECTIVES OF THE FUTURE The future Common Agricultural Policy (CAP) will play a fundamental role in developing a fully sustainable agricultural sector that supports environmental care, climate change action and vibrant rural life while providing safe and high quality food for over 500 million consumers.

Investing, supporting and rewarding our farmers is crucial to protecting the environment and improving efficiency and financial reward.

Three of the nine future CAP objectives aim to enhance and improve our environmental and climate change actions and ambitions by: • Contributing to climate change mitigation and adaptation, as well as sustainable energy; • Fostering sustainable development and efficient management of natural resources such as water, soil and air; and • Contributing to the protection of biodiversity, enhanced ecosystem services and preservation of our habitats and landscapes.

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ALEXANDRE PETROVIC, MANAGING DIRECTOR, CLEVERFARM

CLEVER FARMING

For Smart Farmer CleverFarm: An application to change the life of farmers from the ground up

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leverFarm platform records all farm activities, giving farmers a perfect overview of what’s happening on their farm in real time. It is easy to use and completely intuitive. The aim of this platform is to provide all farmers, even a small farmer with few hectares, with latest technologies like crop sensors and vegetation analysis for precision farming.

Your company offers an application that’s quite unique on the Serbian market. What kind of data can farmers obtain, and what business benefits can that data bring?

- CleverFarm’s engineers come from farming families. From this unique starting point, we have developed a realistic and efficient approach: to provide the best possible solution for all, from the small farmer to the big corporation, to ease the workload and to increase profit by reducing costs and increasing production. Simpler to say than to do, but we have developed a solid methodological approach based on clear phases.

The first is monitoring all agricultural activities with precise quantities of material and substances used for production.

We insist on precisely defined agricultural surfaces to consistently address precision farming and automation of data collection. We ensure compliance with EU directives and EU agricultural surface definition standards, to enable full eligibility for EU support. Monitoring weather, vegetation, soil and storage conditions, with integration of GPS for machinery is the second phase. At this point, with a full range of new information, farmers change their working methods and optimize their resources. The first signs of cost reduction are visible in this phase.

Vegetation analysis and precision farming come in parallel as soon as the farmer is ready. At this point, farmers are beginning to increase production and reduce costs. For corporations or insurance companies, we also have advanced solutions based on Artificial Intelligence and Machine Learning that support specific activities like trading, competitive intelligence or impact assessment.

You’ve gone out of your way to give farmers affordable advanced technology. Can you provide more details?

- The CleverFarm platform is web-based so the farmer just needs a basic computer with internet access.

We decided to produce our own Land Parcel Identification (LPI) layer and we deployed our own LoRa IoT network. This means that we have digitized all agricultural parcels in Vojvodina according to EU LPIS standards and we are able to put our IoT sensors anywhere in Vojvodina.

We produced LPI layer for the French ministry of Agriculture and we have strong cooperation with IGN France International (the French National Geographic Institute) on this topic.

Implementation of full LPI Systems or management of State lands for the benefit of governments and regions are full part of our capacity.

How is your experience of doing business in the Czech Republic? In Serbia?

- The Czech Republic is a very good example of how CleverFarm can serve very different profiles of farmers. Classic farmers, from small to large farms, use the system to monitor their agricultural activities with emphasis on sensors and precision farming. Our biggest client, AgroFert, has more demanding requests in line with their company profile.

In Serbia, we are now installing the CleverFarm solution at Agri Business Partner farms in Vojvodina. The first step was a very precise definition of their 5,000 ha of agricultural surfaces with imagery from Airbus satellites. Now we are integrating all the activities, sensor monitoring, tracking data for machinery (GPS). In parallel we will provide vegetation analysis based on a mixture of Airbus technology and CleverFarm’s own solutions.

Most importantly, for this kind of client we always dedicate a specific team to follow the set-up of the client’s platform and the implementation of each phase.

Contact us email: office@cleverfarm.rs / www.cleverfarm.rs

In Serbia, we are now installing the CleverFarm solution at Agri Business Partner farms in Vojvodina.

The first step was a very precise definition of their 5,000 ha of agricultural surfaces with imagery from Airbus satellites

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ALEKSANDAR CVETIĆ, CEO OF BCM TRADE D.O.O. (LTD.)

BUSINESS

BCM TRADE PLANS TO DOUBLE

Grain Exports By 2020 Building new storage capacities in Perlez, which is well connected with three ports, will enable faster and more competitive trade

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CM Trade operates in conjunction with all major companies in the country and the region, as well as 800 producers, which it connects directly with final customers in export, thus providing them with an opportunity to generate higher earnings and reduce delivery costs. Alongside trade, through cooperation BCM Trade also provides farmers with the opportunity to expand their production.

BCM Trade is known as a reliable partner in the bulk purchase and export of grains and oilseeds. How many agricultural producers do you cooperate with and what conditions do you offer them? What are the benefits of cooperating with you?

- BCM Trade has been operating since 1992.

Its core activity is trade and the export of grains/cereals. It works with all major companies in the countries of the region, as well as with multinational companies present on the Serbian market. The basic direction of our company’s development is towards mediation between small agricultural products and final customers in export. Such a way of doing business enables producers to gain higher prices for their products by avoiding intermediaries and reducing delivery costs to final customers. We are most present in the South Banat district.

There are currently over 800 producers that cooperate with us.

Manufacturers can store their produce and sell at a time that they consider as being best for them. This is very important, because through long-term cooperation we are familiar with one another, so procedures are reduced and the time needed to approve funds from us is much shorter than via banks and other financial institutions.

What warehousing capacities do you currently have at your disposal? Tell us more about the new distribution centre that’s currently being prepared for opening – where is it located, what is its capacity, and what possibilities for the transport of goods does it have?

- BCM Trade, in addition to several bulk purchase points, owns silos in Idvor with a capacity of 15,000 tonnes.

Final stage works are underway on the economy of Perlez, where we will have silos and warehouses with a capacity of 25,000 tonnes. Perlez will have a significant impact on the further development of our company, because its location 60km from the ports of Novi Sad, Belgrade and Pančevo enables us to have a presence at all three ports. BCMTrade exported around 110,000 tonnes of grains/cereals in 2018, while our plan is to double the amount exported by 2020 with this investment.

Thanks precisely to this location, Perlez will be the right distribution centre for fertiliser producers and traders, because they will be able to store goods with us and to be directly present on the ground. Agricultural producers will be able to store their produce in our warehouses and trade with it from there, or exchange it for repromaterials. We are also located at a crossroads, where we will have competitive transportation costs for the markets of BosniaHerzegovina, Albania, Macedonia, Greece and Western Europe.

The most important thing is that we will be centrally located in the midst of our agricultural producer partners, and that we will be in a position to provide them with a high level of services and long-term cooperation in mutual interest.

BCM Trade exported around 110,000 tonnes of grains/cereals in 2018, while our plan is to double the amount exported by 2020 with this investment

BCM Trade also finances repromaterials for their production and stocking their products. In which way is that realised?

- In addition to trade, BCM Trade also cooperates with agricultural producers, providing our collaborators with fertilisers and seeds, thus easing their financing of future production, which they sell on markets via our company. We also providing monetary financing for producers, primarily for the expansion of their production through the purchasing of new arable land areas, as well as new machines, which they repay by deducting from their future production.

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EUROPEAN UNION

AGRI-FOOD TRADE

Break Record For Start Of 2019 The value of EU agri-food exports in January 2019 increased for the 4th year in a row to reach a new record level of €11.2 billion

THE HIGHEST EXPORT GROWTH WAS ACHIEVED IN SPIRITS AND LIQUEURS

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gri-food imports also grew to a record of €10.8 billion, leading to the monthly trade value topping €22 billion, compared to €21 billion in January 2018. These are the main findings from the latest monthly trade report published by the European Commission.

The highest increases in monthly export values (January 2019 compared to January 2018) were recorded for the USA (up €191 million), China (an increase of €91 million), Switzerland (a rise of €39 million), Philippines and Russia (both increased by €29 million). In contrast, exports fell most to Hong Kong (down €44 million), Turkey (a decrease of €29 million), Angola (a fall of €26 million), Saudi Arabia (down €24 million) and Jordan (decreasing by €23 million).

By sector, the highest export growth was achieved in spirits and liqueurs, wine and milk powders, respectively increasing by €81 million, €68 million and €58 million. As exports of sugar and cigarettes fell the most, down by €53 million and €29 million respectively.

As for imports, the value of EU agri-food increased most for products coming from the USA (up €291 million) and Ukraine

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(an increase of €246 million). Imports that decreased most were from Brazil (down €145 million), Indonesia (a decrease of €97 million) and Malaysia (a fall of €68 million).

In terms of sectors, imports of cereals other than wheat and rice and oilcakes rose the most, respectively increasing by €170 million and €134 million.

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A TASTE OF SPRING FESTIVAL IN BELGRADE

FROM AJVAR TO JAM On the last weekend in September, the traditional Festival of Winter Food, took place for the tenth time in a row in Koceljeva, bringing together over 250 exhibitors from all over Serbia. This event has become a brand of Koceljeva, which is usually visited by 20,000 guests in two days.

At a large number of booths, there were about 80,000 different jars, from sweet to sour programmes. On colourful stands, there were not only cucumbers, beetles, baked peppers, various sour salads, sweet figs, quince, sour cherries, watermelons, elderberry juice and blackberry syrup, but also dried meat products such as sausages, bacon, crackling. The most sought-after winter food is the ajvar. Nobody reveals the recipe for ajvar in Koceljeva, but they say that the secret is in the ancient recipe, and that no artificial additives and aromas are used.

For homemakers in Koceljeva, the Festival of winter food is an opportunity to present to customers their products, prepared according to traditional recipes. The aim of the event is improving production, processing and sale of vegetables, fruits and other agricultural products of that region.

A Taste of Spring, a festival where over 2,000 products from Serbia and the region were presented, took place in Belgrade on 23 and 24 March. One premier among gastronomic delicacies was awaiting visitors – honey with gold.

Attendance was free, where all fans of a good bite could taste and buy original products from Serbia and the region, top quality products that cannot be found on the free market.

On the “menu” there were also spreads with mushrooms, truffles, hard cheeses with a unique combination of natural spices, famous goat cheeses from Bosnia prepared according to traditional recipes, and olive oil and special salads from Istria...

The guest country of this year’s festival, whose motto was “Feel the taste of spring” was Egypt, a country known for its traditional specialities with unusual and authentic flavours.

A Taste of Spring was supported by the Ministry of Agriculture, the Secretariat for Economy and Tourism of the City of Belgrade and the Tourism Organization of Belgrade.

ITALIAN COMPANY OPENS A SALAD-PROCESSING FACTORY IN SERBIA WITH 150 NEW JOBS In November, the Italian company La Linea Verde solemnly celebrated the start of operation of its factory for salad processing and packing in Dobrinci in the municipality of Ruma, covering 6,000 square meters. The investment is worth 10 million euros in the first stage.

It is the first factory of this Italian investor in Serbia, which immediately employed 70 workers, and plans to employ up to 150 workers at full capacity in a three-year project.

The factory will produce and pack salad meals, and according to the announcement many agricultural holdings will have the opportunity to be the export-oriented Italian investor’s subcontractors.

According to Minister of Agriculture Branislav Nedimović, the factory La Linea Verde represents “Juventus in the processing industry”. It is one of 24 projects related to the food processing sector and the genetic improvement of the livestock population, approved by the state authorities.

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A WOMEN’S INITIATIVE FOR DŽEMARA ON THE JAGODNA MOUNTAIN On the Jagodna mountain above Krupanj, surrounded by organic raspberry, cranberry and other orchards, stands the Džemara plant which deals with the production of domestic mountain fruit and vegetable products.

At an altitude of over 550 m above sea level, Džemara was founded in the village of Kržava by Ivana Popović and her mother, while their relatives, neighbours, villagers and the inhabitants of Krupanj including the local government and the Association of Rađevci in Belgrade provided help for starting the job.

Džemara produces jams, fruit purées, juices, sweet-salted sauces and other products that are a blend of traditional and modern.

These are healthy homemade products, without additives and preservatives, prepared in small quantities and according to traditional recipes. Besides the traditional, there are also plenty of new, unusual flavours such as ajvar with pumpkin, blackberry jams with rose water or active carbon, which are stars promoted in relation to the classic plum jam.

FESTIVAL OF DUVAN ČVARCI IN VALJEVO BREAKS ALL RECORDS

The festival of Duvan Čvarci in Valjevo, traditionally held every year in October, has been honoured since 2018 for being a permanent manifestation of importance for the City of Valjevo.

The event gathered a record number of participants and exhibitors.

According to the organizers, the Festival had 150 exhibitors and sellers and about 100,000 visitors.

At the famous “Čvarkijada” on 6 and 7 October, a record quantity of meat was sold, breaking previous records – more than 20 tons of čvarci (shredded crackling), bacon, smoked ham, sausages, pig and lamb roast were sold ...

Besides the inhabitants of Valjevo, participants included competitors from other municipalities of the Kolubara district, Niš, Irig, Subotica, Zrenjanin, Trstenik...

Visitors to the 13th Festival of Duvan Čvarci in Valjevo had the opportunity to see how 200-year-old recipes are prepared, and to taste this unique invention of Valjevo’s butchers, which is not prepared in this way anywhere else in the world.

FOUNDATION STONE FOR SERBIAN-HUNGARIAN FRUIT PROCESSING PLANT LAID IN ARILJE The foundation stone for a fruit processing plant of H&S Fruits d.o.o., a joint investment of Serbia and Hungary, was laid in March in Arilje.

In the first phase, the Arilje plant will produce mashes and fruit concentrates, while additional processing will be carried out in Hungary.

According to plans, in later phases the entire production process should be carried out in Arilje.

The products will be of all fruit varieties already being planned in the Arilje region – raspberries, blackberries, sour cherries, plums, peaches, and it is expected that the new plant will contribute to better and easier distribution of raspberries, and that prices will improve when the production of finished products begins.

The initiative for the construction of the factory was launched in 2016, when a joint session of the governments of Serbia and Hungary was held, while a Memorandum of Understanding was signed in February 2018 in Budapest for the establishment of a joint company between private companies from Hungary and Serbia for the production and processing of fruit and vegetables.

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MODERN PLANTATION AT FORMER LESKOVAC AIRPORT Plantation Ekspert Stil owned by Dragan Đorđević is located on the former military airport at Bojnik, where the Đorđević family has organized a modern orchard.

Apple, pear and on a smaller scale plum plots spread over 21 hectares, each year bringing valuable yields to this family. In 2018, the apple yield was about 200 tonnes, and the pear yield about 100 tonnes, while for the current year the yield is expected to double. Modern plant irrigation systems and a hail protection system are installed on the plantations.

The oldest plot for now is the pear plot, on an area of about 7 hectares, with varieties of Viljemovka, Carmen and Santa. Apples are planted on 9 hectares. The most frequent is the Golden Rider, then Granny Smith, Ajdared, Gala and Red Chief, while Čačak’s native plum variety and the Stanley plum variety are planted on around 800 acres. During the picking season, around 50 workers are hired at the plantation. Investment in the plantation is around 500 thousand euros.

HIGH QUALITY HAZELNUT TREES IN SOMBOR In the village of Aleksa Šantić near Sombor there is a 600 ha plantation of hazelnuts owned by the Italian confectionery giant Ferrero, while a nursery is located on 90 ha. Since its privatization in 2015, Ferrero has invested more than 20 million euros in this project.

In Serbia, this company already has contracts with almost 200 agricultural producers who have planted 1,000 hectares of hazelnuts and get seedlings from Italian nurseries at promotional prices, as well as technical support and training. This investment model provides for the purchase of hazelnuts from domestic producers, and in the meantime, they train manufacturers and advise them how to improve production, the breeding technology to be used, and which variety to use.

By 2024 Ferrero hopes to reach 10,000 hectares of hazelnuts in Serbia with a crop of about 225,000 tons per year, and also to build a factory.

SERBIA’S FIRST UNITED COOPERATIVE

Serbia has recently seen its first “united cooperative”. Established in Arilje, as an association of five regional cooperatives, it will be engaged in fruit harvesting, storage and processing, but also direct product sales without intermediaries.

The greatest importance of complex cooperatives is precisely entry into the market in continuity, quality and quantity and direct appearance on the market. The first Serbian complex cooperative is exclusively oriented towards fruit growing, and diverse fruit production will be represented here.

The Law on Cooperatives provides for establishing complex cooperatives, which practically involve storage, industrial processing, export and cooperative management, not just in financial operations but also in all activities with joint production and sales on the domestic and world markets.

THE IMPORTANCE OF INSURANCE IN AGRICULTURE Generali Osiguranje Serbia is partner of the Novi Sad Fair for the eighth consecutive year, and the general sponsor of the International Agricultural Fair.

For Generali Insurance Serbia this is also an opportunity to present modern technologies that it uses in the field of insurance in agriculture – an application for assessing damage to crops and fruits, drones and many others. The basic characteristics of the application are: more precise and efficient assessment and processing of damage to crops and fruits, defining the location of damaged plots, checking the type of crops and the plot area, monitoring the status of damage processing and editing the damage on the electronic map of Serbia. An important increase in the transparency, speed and precision of determining the condition of crops and fruits before insurance and after damage occurs, as well as a significant reduction in the costs of implementing insurance have been highlighted as the main benefits of using drones, said the President of the Management Board of Generali Reosiguranja and CEO of the Directorate for Corporate Clients. In Serbia, about 15% of plant production and only 5% of cattle are insured, which is far below the average for economically developed countries. One of the reasons for this is the traditional distrust of farmers towards financial institutions. Generali Insurance Serbia wants to help them overcome these prejudices.

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OPINION

BY BENJAMIN ADDOM

Why Europe Should Partner The World’s Smallholders

TO ADOPT BIG TECH? Despite the rise of industrial and intensive farming, it is the world’s 800 million smallholder farmers who continue to shoulder a disproportionate burden of global food security

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amily farms with modest plots of land make up around 90 per cent of all agricultural operations and are responsible for producing more than half of global food supplies.

With rising population levels, persistent hunger and the evolving threat of climate change, the success of balancing food production with increased demand will be in their hands.

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To achieve this, though, they also need in their hands the latest technology and innovations that best support sustainable agriculture. This was the conclusion of this year’s Global Forum for Food and Agriculture, where agriculture ministers rightly identified digitalisation as an opportunity to cope with more extreme weather as well as delivering broader development goals such as ending hunger and poverty.

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The direct benefits of harnessing cutting edge technology for agriculture are clear: more efficient production of more food to reduce hunger and reliance on imports while also boosting rural incomes.

But the benefits extend to all of us worldwide, including those of us in Europe. A more food secure world also means a more stable and equitable world that is more self-sufficient and prosperous.

Thanks to the EU’s support of ventures such as the Technical Centre for Agricultural and Rural Cooperation (CTA), which is driving forward the digital revolution in agriculture, we have seen how the adoption of new digital technologies are transforming small-scale farming across Africa, the Caribbean and Pacific.

In Zambia, farm incomes rose by 25% thanks to information on crop marketing delivered by SMS advisory services, while thousands of Ugandan farmers were able to make better decisions about fertilizer use and access credit as a result of analysis gathered by drones.

CTA has also worked with the Pacific Islands Private Sector Organisation (PIPSO) and the Caribbean Agribusiness Association (CABA) to establish online platforms to offer support and information for farmers.

And over the last three years, CTA’s Pitch AgriHack challenge has reached more than 800 young e-agriculture start-ups throughout the Africa, Caribbean and the Pacific, providing training, mentoring and business development skills and seed funding. Several of the supported start-ups have grown into successful businesses serving close to one million smallholder farmers.

But there remains huge potential to scale up the creative use of technology to create a smarter, better future for farming and unleash the power of digitalisation to transform agriculture in developing regions.

Development organisations, donors and governments are laying the foundation for the adoption of these innovations by smallholders. So, the time is right for the private sector partners in major developed markets like to EU – from agribusinesses to technology firms - to partner with these to scale the solutions that will affect real change for some of the world’s poorest.

Events such as the Global Forum for Food and Agriculture

can bring together the very government, private sector and research partners that can help leverage new technology to support smallholders because doing so offers huge returns.

From improved productivity and reduced post-harvest losses to increased resilience to climate change and attracting more youth and entrepreneurs to agriculture, digitalisation is already tackling many of agriculture’s changing and growing challenges.

This is why we are excited to see ministers agree to establishing a framework for the UN for the digitalisation of agriculture, and we look forward to sharing our expertise and experience

The direct benefits of harnessing cutting edge technology for agriculture are clear: more efficient production of more food to reduce hunger and reliance on imports while also boosting rural incomes

with the new Digital Council for Food and Agriculture, along with the World Bank, African Development Bank, OECD, World Organisation for Animal Health (OIE).

We believe strongly in the potential to harness technology to solve some of the world’s most pressing challenges, and we also believe that the EU, as a consumer, importer and donor, has a responsibility to foster the partnerships necessary for the scaling up and growth of digitalisation for agriculture.

The Global Forum for Food and Agriculture has been a great opportunity to define the roles that we each can play in this move towards digitalisation but it is only the start. Devoting more time, energy and investment to this crucial area is in all of our interests if we are to guarantee our future food and nutrition security in a rapidly changing world.

The author is Team Leader, ICT for Agriculture, Technical Centre for Agricultural and Rural Cooperation (CTA) 29

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OECD

Joint Management Of

AGRICULTURAL WATER Agriculture is the first user of fresh water. Since the end of the 20th century, its use in the world has considerably increased. Significant agronomic progress, especially regarding the use of expensive inputs (fertilizers, pesticides, fuels, machinery, etc.), has made it necessary to secure yields in order to make these investments profitable and reduce the variability of yields

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he use of irrigation has led to an increase in agriculture needs, exacerbated by the recurrent droughts of the end of the 20th century.

At the same time, the progression of knowledge shows that the proper functioning of aquatic ecosystems provides services that are useful to society as a whole and that must be maintained or restored. We talk about ecological flow to be maintained in the environments. Moreover, other uses: drink and hygiene, industries and services are progressing everywhere.

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Thus, agriculture is in competition with other uses, including in regions that have not yet experienced restrictions in water abstractions.

Irrigated agriculture is accompanied by an increase in the use of inputs which can lead to significant pollution of surface and ground water due to the misuse of fertilizers and pesticides. It can also be the source of other negative externalities, sometimes irreversible, such as salinization of land, salt water intrusion in coastal aquifers, desertification...

However, rainwater accounts for more than 70% of the

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water used in agricultural production. This so-called rainfed agriculture provides 60% of the food and uses 80% of the agricultural surface. It is particularly vulnerable to climate change, but irrigation systems should not be considered to be unrestricted and that technical and agronomic progress will be sufficient to ensure global production. Practices must continue to evolve in order to preserve aquatic environments even more.

This is why, in river basins, both in France and abroad, the establishment of participatory planning mechanisms

The representatives of irrigators are thus participating alongside the other people abstracting and using the resource, but also the nature conservation associations, administrations and of course elected representatives.

For centuries, France has acquired experience in joint water management in agriculture, which is in great demand.

This decentralized system adapted to the regional context combines private management and public governance. It facilitates appropriation, maintenance and management of structures and facilities necessary for increasing agricultural production while respecting the principles of sustainable and integrated water resources management.

Finally, research must be associated with the various support and advisory mechanisms for farmers to produce the necessary references and the definition of appropriate policies.

WHAT IS IOWATER DOING? Building on the French experience in the field of agricultural water, the International Office for Water offers its support to the National Water Authorities but also to the stakeholders of organized land to carry out the institutional and legislative reforms that give a framework for an efficient management of agricultural water and for the necessary investments in the agricultural water sector.

IOWater can intervene either at the level of a country - institutional and legislative reforms, national strategy - or at the local level, at the level of a basin, a small region, an irrigated area.

IOWater internationally promotes participatory water management and supports the authorities of requesting countries to adapt management procedures and tools developed in very specific constraint systems.

It helps them to define participatory mechanisms and procedures for planning, monitoring, arbitration and decision-making on the management of water resources and their allocation between uses and in large irrigated areas.

IOWater experience and practice, as well as its neutrality vis-Ă -vis all stakeholders, also allow it to evaluate national policies for saving irrigation water.

IOWater devotes an important part to the use of decisionmaking tools in the planning processes and to the participation of users in the various decision-making or dialogue bodies.

Rainwater accounts for more than 70% of the water used in agricultural production.

This so-called rainfed agriculture provides 60% of the food and uses 80% of the agricultural surface

in the medium term and procedures for allocating (or reallocating) water volumes that can be abstracted is more and more needed as well as the strengthening of local institutions to ensure the continuity of the decision until its implementation in the field.

In farms and on the plots, the choice of varieties more resilient to drought, the search for better irrigation efficiency, the choice of equipment, efficient and adapted to the local constraints, are to be sought.

In Europe, the development of natural water retention measures, including for urban agriculture, contributes to genuine integrated water resources management.

Who are the stakeholders involved?

The agricultural use of water resources and its impacts on aquatic environments far exceeds the agricultural sphere. This is why it is essential to involve agricultural representatives and representatives of other users in local management bodies.

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INSTITUTE OF AGRICULTURAL ECONOMICS, BELGRADE

BY JUGOSLAV ANIČIĆ AND DUŠAN ANIČIĆ

Serbia’s Agriculture Economic Policy & Sustainable

DEVELOPMENT STRATEGY The economic policy of Serbia in the period of transition failed to increase low competitiveness of economy and get closer to more developed countries. Because of this, the main indicators of development are still extremely low, in spite of two decades of transition 32

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his led to low living standard and high unemployment rate. Reliance of foreign investments and constant borrowing in order to balance the budget, along with neglecting national investments and supporting export-oriented companies, has pinned the country in the corner when it comes to the most important development criteria.

Accumulation of foreign debt (external loan) is to be stopped and it is the main long-term challenge that the future economic policies are going to face, since the foreign loans, used in order to finance expenditures, are unsustainable in

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is the foundation of new agricultural policy in accordance with the principles of modern public administration management.

It also represents the final objective of the state institutions to gradually adopt the model of the European support to agriculture development. This strategy defines the frame of political and institutional changes that contribute to more efficient development and increase of agricultural sector competitiveness, as well as to the well-being of rural areas’ inhabitants.

Based on the indicators of economic development of Serbia in the transition period, is to point out the wrong starting points that represent the foundation of the economic policy of Serbia in the entire period of transition, and provide the creators of the economic policy with other development priorities aimed to increase the economy competitiveness, ensure the growth of the gross national income, decrease the unemployment rate and help the country leave the group of underdeveloped and heavily indebted countries. Such policy is supposed to create long-term foundations for sustainable development oriented to economic, social and environmental protection goals.

The mentioned results will be achieved more easily if adequate agriculture development strategy is applied. Not only does this strategy aim to decrease the unemployment rate and poverty, but it also contributes to the decrease of foreign trade deficit.

the long term. Primarily, it has to be focused on the investments aimed to increase production and export – comparative advantages of the country. There is no doubt that the sector of agriculture significantly contributes to the growth of the gross national income and decrease of foreign trade deficit of Serbia.Yet, the potentials of the Serbian agriculture have not been fully explored.

The National sustainable development strategy of the of Serbia defines the growth of competitive market economy and balanced economic growth, infrastructure development and balanced regional development, as well as environmental protection and rational exploitation of natural resources. Based on European experiences, environmental protection does not contradict economic growth and development, since healthy environment is impossible without a healthy economy, and vice versa. Also, Serbia has adopted The Agriculture and Rural Development Strategy of the Republic of Serbia for 2014-2024, which

THE ECONOMIC POLICY OF SERBIA IN THE TRANSITION PERIOD The results that agriculture in Serbia achieved in the transition period are considerably weaker in comparison to the developed countries as well as the surrounding countries.

At the end of 2017, Serbia still had a high unemployment rate (13.5% according to the Labor force survey), the average salaries of about €400, low GDP per capita, and it all pointed to the low level of living standard for the population. According to the NBS data, the country’s external debt is €25.6 billion, which is very high considering the structure of the economy and slow GDP growth during the period. According to the World Economic Forum report for 2017, Serbia is in the 78th place in the competitiveness list (out of 137 countries observed). All these facts indicated that the economic policy in the transition period caused very poor results, regardless of the low starting position in 2000.

After the political changes in 2000, the conditions are created for the country’s inclusion in the international integration, following the isolation and sanctions in the last decade of the twentieth

The National sustainable development strategy of the of Serbia defines the growth of competitive market economy and balanced economic growth, infrastructure development and balanced regional development, as well as environmental protection and rational exploitation of natural resources

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century. The reforms began in several areas: social policy was removed from the companies and transferred to the government, non-tariff restrictions were cancelled, employment conditions were liberalized, anti-monopoly legislation was adopted, etc. Important institutional and legal adjustments have been made: a number of laws have been adopted for market system regulation and EU regulations harmonization.

Real and financial system has been largely reformed due to these laws, as well as public sector to a lesser extent.

Our country, as well as other socialist countries in the transition period towards market economy, has been affected

The economic policy of Serbia in the transition period can be evaluated as unsuccessful because it has not led to the achievement of the basic goals, and they are unemployment reduction as well as population living standard improvement.

The economic policy elements are its goals, subjects and instruments. Traditionally, there are four main goals of the economic policy: economic growth, full employment, market and price stability, and the balance between the exchange and financial transactions with other countries.

Four basic areas of the economic policy can be singled out, and they are: balancing area (maintaining the macroeconomic balance), allocative area, distributive area, and development area focused on economic development direction and economic growth provision.

According to the aspirations in the world, in Serbian academic community as well as the among the economic policy creators, entrepreneurship is considered as one of the key factors of the economic growth and employment generator. Serbia’s government adopted the Poverty Reduction Strategy in 2003, where entrepreneurship development is labelled as an important element of the economic development and poverty reduction in Serbia, while selfemployment and ’startup’ are defined as the key segments in entrepreneurship development. In the National Sustainable Development Strategy (2008) competition market economy and balanced economic growth are labelled as the priorities, while small and medium enterprise development, innovation encouragement and entrepreneurship promotion are stated as some of the main activities for their achievement. Finally, the year 2016 was declared the year of entrepreneurship, and all of these facts indicate the strong awareness about its importance in the future.

Young population migration from rural and less developed regions is the problem that the economic policy of the government highly underestimated in the transition period.

Thus, for example, according to the 2012 census data, there was a decrease of 10.9% in rural population in comparison to 2002, or even 18,7% in the regions of Southern and Eastern Serbia. Unfavourable demographic trends were caused by numerous factors such as undeveloped infrastructure, lack of good quality social life in rural areas, inability of proper education for the population, low level of health services,

Traditionally, there are four main goals of the economic policy: economic growth, full employment, market and price stability, and the balance between the exchange and financial transactions with other countries

by the so-called transition recession, reflected in living standard decrease, inflation increase, exchange rate instability, foreign trade deficit increase, unemployment growth and other economic indicators with an exclusively negative tendency. The urgent problem in the transitional countries is certainly a growing unemployment caused by the collapse of the companies in state and social ownership.

Small enterprises cannot solve all the problems that hit our economy, since a considerable part of their activities depends on large corporations that can gather even a few thousand small subcontractor-suppliers. A well-balanced economic development policy oriented towards all parts of the economic structure represents a leverage of power, large company recovery and restructuring included, which will create a healthy foundation for the economic recovery as well as the national economy stabilization.

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dominant primary agriculture production, inability of agricultural produce placement, etc. The result of such population migrations is extremely unfavourable age structure where one in five village residents is older than 65, one in four in Southern and Eastern Serbia.

After two and a half decades of transition, Serbia is in a small group of Central and Eastern European (CIE) countries that have not yet reached the development level from the pre-transition period. Thus, for example, GDP in Serbia was 25% lower in 2015 than in 1989, while CIE countries increased their GDP for almost 60% in the same period. CIE countries were on average 85% more developed than Serbia in 2015 as a result of the divergent development in the period described, although Serbia was at the average level of this group of countries in 1989. The lower development level also implies a lower level of population standard, while GDP decrease directly influenced unemployment increase.

The above mentioned data show that Serbia did not use the transition period to catch up with the developed economies, on the contrary, the results were more than modest which resulted in weaker relative position of our economy in comparison to the pre-transition period. The economic policy concept of Serbia in the transition period was based on high imports, foreign debt increase and inefficient privatization which led to the negative change in the economic structure.

The transition process towards open market economy was marked by the reform concept (liberalization, privatization and deregulation) and the wrong development strategy, without the creation of conditions for highly competitive and export-oriented industry development as a traditional carrier of the economic development.

That is why the basic tasks of the economic and development policy in the following period are macroeconomic and market stability, sustainable economic development based on the industrial production and export growth, employment increase, foreign debt and negative foreign trade balance reduction. Serbia needs much faster GDP growth and industrial production recovery in comparison to the average growth rates of these aggregates in the world economy in order to restore the relative position of the development from the 1980s. It is necessary to redirect the investments into the companies dealing with

the production and the export of higher processing level products through the development policy, with the orientation to the strategic sectors that will contribute to the stable and dynamic economic development as well as the achievement of the country’s economic policy goals.

Due to all of the above mentioned, it is prohibited, in terms of economy, for Serbia to direct most of the debt into budget and non-productive expenditure through further borrowing, without the effect on the economy development, and to let further generations pay for such a policy. The strategy of public debt management must be adopted and adhered to in order to

avoid the negative consequences of the over-indebted countries.

Taking all of the above mentioned into account, there is a real danger for the current economic policy to stabilize the country at a low GDP and high unemployment levels, with the low labour cost and poor working conditions in numerous privatized companies as well as those with foreign ownership. This situation is the result of non-existent economic development strategy during the complete transition period. There are neither efficient investments nor independent development without domestic banks oriented towards development financing, independent monetary policy, credit control and loans oriented towards local companies on the basis of clear strategy and priorities.

The economic policy concept of Serbia in the transition period was based on high imports, foreign debt increase and inefficient privatization which led to the negative change in the economic structure

Institute of Agricultural Economics, Belgrade, Serbia: Editors: Jonel Subić, Ph.D., Marko JeloÄ?nik, Ph.D. Boris Kuzman, Ph.D., Jean Vasile Andrei, Ph.D. 35