Serbia is advancing its agricultural sector with several key initiatives. The new Hazelnut Excellence District in Western Bačka for production and exports, hawthorn cultivation as a profitable alternative crop, the new ministry regulations on advisory services for further farmer support and retail chains closing stores due to margin caps imposed by the government.
“Hazelnut Excellence District” in Western Bačka
Serbia’s Minister of Agriculture, Dragan Glamočić, announced the formation of a working group to develop the country’s first Hazelnut Excellence District in Western Bačka. The initiative will bring together producers, local authorities, and research institutions to create a model of agricultural excellence that could later be applied to other sectors such as fruit growing, dairy, and viticulture. Following a roundtable with AgriSerbia, Ferrero, and the Embassy of Italy, Glamočić outlined a 10-year plan to increase Serbia’s annual hazelnut production from 9,000 t to 40,000 t, which would move the country into the top 10 global producers.
As of 2024, hazelnuts are grown on 8,718 ha across Serbia, mostly in Vojvodina (44%), with southern and eastern Serbia at 24%, Šumadija and western Serbia 23%, and the Belgrade region 9%. Serbia exported 1,759 t of hazelnuts in 2024, valued at €5.7 mil, with 92% going to Italy.
AgriSerbia’s 600 ha estate produces up to 1,800 t annually. Despite July storms, the 2024 harvest is expected at around 1,000 t of premium nuts.
Ferrero has distributed over 1.8 mil hazelnut saplings, supporting more than 3,360 ha of new orchards and 680 farming households. Its 2024 technical program included 550 field visits and numerous training sessions, reinforcing its commitment to sustainable hazelnut cultivation. Globally, Ferrero purchases 22–27% of the world’s hazelnuts for brands like Nutella, Ferrero Rocher, and Kinder Bueno.
Serbian farmers turn to hawthorn
As more farmers across Serbia look for alternative and profitable crops, hawthorn has emerged as a surprising favorite — a hardy plant with strong economic potential and high demand in the herbal and pharmaceutical industries.
Hawthorn (Crataegus) is a deciduous shrub or small tree that thrives in temperate climates, making it well-suited to Serbian conditions. Long valued for its medicinal properties, particularly for heart and circulatory health, hawthorn is now attracting attention as a lucrative agricultural investment.
The price of a single seedling ranges from €1.70 to €3.40, and one hectare can accommodate 3,000 to 4,000 plants, depending on soil quality and planting density. Farmers can expect the first fruits after about three years, with full yields reached between the fifth and sixth year. Once mature, hawthorn can produce three to five tons per hectare, translating to as much as €12,800 in annual revenue at current market prices (€1.30–€2.55 per kilogram).
Hawthorn proves to be both financially rewarding and environmentally suitable.
Beyond its fruits — used in teas, tinctures, syrups, and capsules — hawthorn also serves practical farm purposes. Its dense canopy and thorny branches make an effective living fence, providing natural protection for other crops.
Hawthorn thrives in sunny locations with well-drained, slightly acidic to neutral soil. It requires minimal care, needs little irrigation, and is harvested in the autumn, when berries turn bright red and develop their distinct sweet-and-tart flavor.
For those seeking a long-term, low-risk agricultural investment, hawthorn proves to be both financially rewarding and environmentally suitable. With rising demand and low production costs, it’s no surprise that more Serbian farmers are turning this humble shrub into a profitable enterprise.
Big changes for farmers: new ministry regulation
Starting January 1, 2026, the Ministry of Agriculture will implement a new regulation on agricultural advisory services, providing farmers with guidance through individual and group methods, media, and data-driven tools. Key services include direct farm support, help with forms and applications, soil fertility checks, and advice on safe use of plant protection products. Farmers receiving subsidies will also get guidance to access IPARD incentives. The changes aim to make advisory services more structured, accessible, and effective in addressing modern agricultural challenges.
Retail chains closing stores - suppliers still feeling the strain
The Serbian government passed the Decree, effective since September 1, which limits retail margins to 20 percent across 23 product categories and freezes supplier invoice prices at August 1, 2025 levels.
Major retail chains across Serbia are shutting down stores as the government’s cap on trade margins begins to bite. Several hundred job cuts are expected, weekly „Vreme“ reports. Gomex has already closed stores in Novi Pazar, Čačak, and Zlatibor, with plans to shutter 15 more by November, mainly in Kragujevac, Novi Pazar, and Smederevska Palanka. DIS has reportedly closed its central Belgrade store and two more in other city municipalities, while IDEA and Maxi (Ahold Delhaize) are also preparing for closures and staff cuts.
Amid growing tension, Minister of Domestic and Foreign Trade Jagoda Lazarević confirmed that suppliers are still under pressure from some retail chains. She told Tanjug news agency after a meeting with producers and suppliers at the Chamber of Commerce and Industry of Serbia:
“I will not name specific retailers, but what has been happening in the previous period is still ongoing.”
The minister announced upcoming talks with retailers and said Serbia will soon adopt a Law on the Prevention of Unfair Trading Practices to curb abuses that have long affected smaller suppliers:
“It’s important that these companies help shape the law so its implementation can be effective.”
Farmers from Banat turn their land into a paradise
The Agro Klek agricultural cooperative in Klek, near Zrenjanin, is one of Vojvodina’s most successful, managing 12,000 hectares of land, 1,200 cattle, and an 80-hectare fishpond. Its 600 dairy cows produce six million liters of milk annually, averaging over 10,000 liters per cow, and the cooperative reinvests €500,000–€800,000 yearly into development.
Combining modern mechanization, expert staff, and integrated farming, Agro Klek uses crops to feed livestock and serves as a model for regional and national dairy farming. Director Radovan Bokić highlights the importance of hard work, reinvesting subsidies into machinery, and farmer cooperation to stay competitive amid climate challenges, noting that even with drought conditions, operations like autumn wheat sowing continue, though corn yields vary widely.
More information
For more information on how Serbia is advancing its agricultural sector, you can contact the Netherlands Agricultural Network team at the Dutch Embassy in Serbia: bel-lvvn@minbuza.nl