Serbia Newsflash, Week 25, 2022

High prices for food, new figures on food waste, the milling industry dissatisfied with the government, reassuring proectsions of the wheat harvest, labor shortages in horticulture and HORECA, and the world's largest conference on sunflowers held in Novi Sad - the week in Serbian agriculture

Fancy restaurant lunch.
Beeld: ©.
Since waiters and chefs can earn more in Croatia, Montenegro and Slovenia in the summer, the HORECA sector faces labor shortages in Serbia in the summer tourism season.

Food in Serbia is the most expensive in the region 

In Serbia, food and non-alcoholic beverages are the most expensive in the region while among the EU member states, the prices of these products are the highest in Luxemburg, according to the EU Statistical Office EUROSTAT .

Prices of consumer goods and services in Serbia are at the level of 60% of the EU average, according to Eurostat data for 2021. Food and drinks are 15% cheaper than the European average but more expensive than in Albania (82.6% of the EU average), Montenegro (81.5%), Bosnia and Herzegovina (78.4%), and North Macedonia (64.2%). As for electricity, gas, and other fuels, prices in the region are roughly the same and more than twice as low than the EU average. The prices of alcoholic beverages and tobacco in Serbia are at 68.5% of the European average, and the prices of clothes and shoes are slightly lower than the EU average (about 93%).

North Macedonia has the cheapest alcoholic beverages and tobacco in Europe, and Montenegro has the cheapest personal transportation vehicles. Romania and Bulgaria (56%) and Poland (60%) have the lowest prices for goods and services compared to the EU average.

Most of the food waste in Serbia still ends up in landfills

Lack of incentives, low levels of knowledge and interest from enterprises and health institutions are the three main obstacles to responsible food waste management, according to a survey on the awareness of large food waste generators stated the National Alliance for Local Economic Development (NALED) .

The results of the research were presented at the Conference Recipe for Food Waste, organized by NALED and the company EsoTron with the support of German Development Agency GIZ.

A survey conducted by the IPSOS Agency for the needs of the project showed that in almost all enterprises, waste cooking oil is given to the operator, while 43% of entrepreneurs separate waste from food.

One of the main recommendations is to introduce a legal obligation to separate waste for everyone who makes or serves more than 50 meals a day. Assistant Minister of Environmental Protection Sandra Dokic said that the data shows that about 2.95 million tons of municipal waste are generated annually, 40% being biowaste, which includes food waste.

According to the report of the United Nations Environmental Program, 83 kilogram of food is thrown away per capita each year in households in Serbia, which is 9 kg more than the global average. It was pointed out that most food waste is still largely transported to landfills, that the second most common use is for animal nutrition, and the third is composting.

It was also stated at the conference that the use of waste for energy purposes is still considered the rarest form of processing and untapped potential.

Milling association of Serbia dissatisfied with Government assistance  

The Director of Zitounija (Association of milling, bakery and pasta industry of Serbia), Zdravko Sajatovic, stated that the decision of the Serbian Government from last week to pay what they call a debt of €1.36 million to the millers will not cover the total loss that has accumulated since February.

The director explained that the amount set by the government would cover the losses for two months for the difference in price between market prices of wheat and frozen prices for T-400 and T-500 flour in packages of 1 to 5 kg. “Last week, the Serbian Government approved funds for the payment of the debt of €1.36 million for February and March while the total debt from the beginning of February to the beginning of June is €2.4 million,” the director added.  

According to Mr. Sajatovic, the Republic Directorate for Commodity Reserves delivered wheat to the millers for €0.19/kg in December last year and January this year, and after that, they were forced to buy it on the market at prices from €0,28 to €0.33/kg, thus the millers lost €0.1 per kg of flour.

The director believes that the millers would need around €341 million to buy one million tons of wheat this year, and they do not have that much money because, apart from “frozen” prices, they were also banned from free export for almost two months.

“Because of that, members of the Association will have to buy wheat for shorter periods. They need €85-120 million to buy wheat for three-month needs of about 300 thousand tons,” said Mr. Sajatovic, who also added that millers would not simply opt for bank loans either, because the interest rates are above 10%.

Wheat in a field
Beeld: ©Tomasz Filipek
According to the Minister of Agriculture, the wheat harvest in Serbia will be enough for the entire country two and a half times over.

Serbia produces enough wheat for the entire Balkans

The Minister of Agriculture, Branislav Nedimovic, stated for national broadcaster RTS, that the wheat harvest would start in ten days and that he expects a yield of three million tons.

According to the minister, that is twice as much as Serbia needs, but Mr. Nedimovic also added that export control measures would remain in force. "We produce two, two and a half times more wheat than we need, but we should not be left without wheat and flour now due to the great demand for exports. That would be a disaster. Our production is enough for the whole Balkans. Serbia uses 1.3 to 1.5 million tons of wheat annually. If I tell you that we will have up to 3.2 million tons with transitional stocks, we will have wheat for two and a half Serbia’s needs next year, but we must be vigilant," said the Minister for RTS. Mr. Nedimovic refuted claims that currently 900 thousand tons of old wheat are in silos and stated that the stocks are around 500 thousand tons.

More than €50/day for berry picking  

Milos Turunski from the Infostud  company, which owns a leading employment site in Serbia, stated that workers on seasonal berry picking jobs in Serbia can earn more than €50 a day. In a statement for Tanjug news agency, Mr Milos Turunski pointed out that, on the other hand, Serbian catering is facing labor shrotages because a large number of waiters and chefs from Serbia go to work on the coasts in Montenegro, Croatia and Slovenia, where they earn between €6-8 thousand per season (4-6 months).

Mr. Turunski pointed out that the seasonal work started at the end of April and that berry picking has the greatest need for labor. “Due to the high demand, and the small number of people who apply for these jobs, orchard owners have increased the daily fee for pickers, which last year amounted to €30. This year, they sometimes exceed €50,” says Mr. Turunski.

As for catering, he adds, a large number of people who work in Serbia out of season, go abroad during the tourism season. “It is very difficult for employers in Belgrade, for example, to get people to fill vacancies for waiters or cooks,” Turunski said, explaining that Montenegro, Croatia and Slovenia offer excellent opportunities regarding wages during the summer season.

“Waiters earn €1.500 and chefs earn from €2.000 to €2.500 a month with all living costs covered. Employers there offer meals and accommodation, so after four or six months, seasonal workers return to Serbia with €6.000 to €8.000,” Milos Turunski emphasized.

International conference on sunflower held in Novi Sad

Under the auspices of International Sunflower Association (ISA) and the Institute for Field and Vegetable Crops (IFVC) , the world’s largest conference on sunflower was organized in Novi Sad this week (June 20-June 23). This was the 20th jubilee conference on sunflower and this event is organized every four years. Novi Sad hosted the conference in 1988. The Institute for Field and Vegetable Crops is famous for its resilient sunflower hybrids.