Strong retail growth, a potentially record fruit harvest, and expanding opportunities for domestic suppliers point to continued momentum in Serbia’s agri-food sector. At the same time, concerns remain over the long-term competitiveness of local producers, the effectiveness of new regulations on unfair trading practices, and the ongoing decline in the number of agricultural holdings. The latest developments illustrate a sector that continues to generate growth and attract investment while grappling with structural issues that could shape its future trajectory.
Beeld: D.R.
Retail trade turnover increased by 5.6 percent in April
Retail trade in Serbia maintained positive momentum in April, with turnover increasing by 5.6 percent in real terms and 8.3 percent in nominal terms compared with the same month last year. Growth remained strong throughout the first four months of 2026, with retail sales up 7.9 percent in real terms year-on-year.
The strongest increase was recorded in automotive fuel sales (+8.7%), followed by food, beverages and tobacco (+5.6%), while non-food retail sales grew by 4.4 percent. Although retail activity was slightly lower than in March, turnover remained well above both last year's level and the 2025 average.
Regional trends were similarly positive, with Vojvodina and Southern Serbia both recording solid growth. The figures point to continued consumer confidence and resilient domestic demand, with food and fuel sales providing the largest contribution to overall retail growth.
Beeld: Canva
Lidl expands cooperation with Serbian suppliers
Lidl increased the value of purchases from Serbian suppliers by 16 percent during the 2025 business year, while exports of Serbian products through the retailer's international network reached EUR 22 million. Of the approximately 2,700 food products currently offered in Lidl Serbia, more than 700 originate from local producers, a number that continues to grow.
According to company representatives, building partnerships with domestic suppliers has been a gradual process involving alignment with quality standards, certification requirements and production practices. The effort is increasingly paying off, with products such as flatbread, cheese and potato chips finding their way to export markets through Lidl's network.
Long-term purchasing agreements, often covering one to two years, are helping suppliers plan production and logistics more effectively. Lidl also points to the example of the Kruna dairy, which has increased daily milk production more than fivefold since partnering with the retailer and expanded its product range with new high-protein dairy products.
Alongside strengthening local supply chains, Lidl is working with suppliers on product reformulation initiatives aimed at reducing salt, sugar and additives. Since entering the Serbian market in 2018, the company has expanded to 86 stores across 50 cities, becoming an increasingly important route to market for domestic food producers.
New Law on unfair trading practices raises concerns
Recent amendments to Serbia's regulations on unfair trading practices have sparked debate over whether they will meaningfully improve the position of domestic suppliers in the retail market.
Industry representatives argue that the new provisions are unlikely to provide significantly greater protection for local producers or influence price developments. Goran Kovačević, founder of the Gomeks retail chain, warned that domestic suppliers could face increasing pressure from imported products as trade liberalisation progresses and competition intensifies. He also noted that most local producers have limited bargaining power when negotiating with large retail chains, regardless of the legal framework.
Similar concerns were raised by Petar Bogosavljević, president of the Consumer Protection Movement of Serbia, who described the amendments largely as an alignment with European regulations rather than a solution to existing market challenges. According to him, the new rules do not sufficiently address practical issues affecting producers and consumers.
The discussion highlights broader concerns about the long-term competitiveness of Serbian suppliers and their ability to maintain market share in an increasingly open and competitive retail environment.
Beeld: Takovo Berry
Fruit production near a two-decade record
Serbia's fruit sector is heading toward one of its strongest seasons in recent decades, with total production projected at around 1.55 million tonnes, according to fruit-growing expert Zoran Keserović. Provided there are no major weather-related disruptions in the coming months, this year's harvest could rank among the three best of the past twenty years.
The season has highlighted the benefits of investment in modern orchard management. Cherry producers using irrigation systems and other advanced technologies are reporting exceptionally high fruit quality, while strawberries have also performed well. In contrast, orchards without irrigation have been more affected by periods of unusually high temperatures, resulting in somewhat lower quality.
Although late frosts caused damage in parts of West Bačka, North Bačka and the Merošina region, the full impact has yet to be assessed. At the same time, frost-related losses in other major fruit-producing countries, including North Macedonia, Poland and Romania, could create favourable market conditions for Serbian exporters due to tighter regional supply.
Beeld: D.R.
Farm numbers continue to decline
Serbia's agricultural sector continues to undergo structural change, with the number of registered agricultural holdings falling by nearly 56,000 over the past eight years. Today, 508,365 holdings remain active, while around 1.15 million people are directly or indirectly engaged in primary food production, approximately 14 percent fewer than in 2018.
Despite the decline, agriculture remains an important employer, with more than one million people cultivating around 3.25 million hectares of land. However, farm structures remain highly fragmented. The average holding covers 6.4 hectares, although farms in Vojvodina are considerably larger at 13.2 hectares on average. More than 217,000 holdings cultivate less than 2.5 hectares, making them particularly vulnerable to economic pressures.
According to agricultural analyst Branislav Gulan, the decline in farm numbers is accompanied by falling livestock numbers, lower production volumes and weaker yields. He also points to unresolved land ownership issues, with approximately 200,000 hectares of former cooperative land still lacking a settled legal status.
The figures highlight the ongoing challenge of improving the competitiveness and long-term viability of Serbian agriculture, particularly among smaller family farms that continue to dominate the sector.
More information
If you would like to know more about Serbia’s agri-food sector and opportunities in areas such as post-harvest handling, cold-chain development, and sustainable production, you can go to the country page of Serbia at this website. You can also send an e-mail to the LAN team at the Dutch Embassy in Belgrade: bel-lvvn@minbuza.nl.