This week's developments highlight Serbia's growing focus on strengthening the sustainability and competitiveness of its agri-food sector. From expanding biomass-based district heating and a major acquisition in the edible oils industry to the economic case for land restoration and the need for greater value addition in fruit production.
Beeld: Unsplash
Record fruit harvest expected in Serbia, but weak processing capacity limits value creation
Serbia is on track to produce up to 1.5 million tonnes of fruit in 2026, making it one of the country's most productive fruit-growing seasons in the past decade.
According to experts from the Faculty of Agriculture in Novi Sad, this year's fruit output could surpass initial forecasts. While yields are strong across most fruit categories, market conditions remain challenging. Apricot production is expected to reach a record 50,000 tonnes, yet growers are receiving only EUR 0.26–0.30/kg, largely because the domestic processing industry cannot absorb the exceptionally large crop. Record plum production is also forecast, although export constraints could put downward pressure on prices. Blueberries have delivered good quality fruit, while raspberries, currently selling for around EUR 3.40/kg, remain profitable but continue to face structural challenges, including the need for new varieties, improved fruit quality and wider adoption of anti-hail protection.
Sector experts identify inadequate infrastructure as one of the biggest obstacles to increasing value creation. Serbia continues to face shortages of modern collection centres, rapid cooling facilities, packaging lines, distribution networks and fruit processing capacity, particularly for highly perishable crops such as sour cherries and apricots. Expanding domestic processing would help retain more value within the country while reducing producers' dependence on volatile fresh market prices.
The sector also continues to underutilise IPARD funding, despite the programme offering support for investments in storage, cooling, packaging and processing infrastructure. With Serbia's 2026 agricultural budget approaching EUR 1 billion, LAN BEL believes greater impact could be achieved by directing a larger share of public support towards long-term investments in modern infrastructure, value-added processing, climate change mitigation and adaptation and biodiversity protection, rather than predominantly direct payments. Such an approach would strengthen the resilience, sustainability and export competitiveness of Serbia's fruit sector.
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Serbia's Ministry of Mining and Energy launches second phase of biomass heating project
Serbia's Ministry of Mining and Energy has launched the second phase of the EUR 31.9 million Biomass Market Development Project, aimed at accelerating the transition to renewable district heating and reducing reliance on fossil fuels.
Running until 2029, the project will support new biomass heating investments in Prijepolje, Novi Pazar and Kruševac, with funding from KfW, the European Union and the German Government. Planned works include a new 6 MW biomass heating plant in Prijepolje and the expansion of Novi Pazar's district heating system with a 5 MW biomass boiler and a solar installation.
The first phase of the programme (2018–2024), worth EUR 27 million, delivered biomass heating plants in Priboj, Mali Zvornik, Novi Pazar and Majdanpek, replacing imported fossil fuels with locally sourced biomass. The transition reduced CO₂ emissions by up to 95% and sulphur dioxide emissions by up to 100% in some district heating systems.
The second phase is expected to generate around 55,000 MWh of renewable energy annually and reduce greenhouse gas emissions by approximately 20,000 tonnes of CO₂ equivalent per year, further strengthening Serbia's energy security, improving air quality and creating new opportunities for the sustainable use of domestic biomass resources.
Beeld: Unsplash
Land restoration offers tenfold economic return
Investing in land restoration generates substantial economic and environmental benefits, with every EUR 1 invested returning an average of EUR 10, according to research highlighted by Klima 101.
Experts warn that land degradation, driven by soil depletion, deforestation, water pollution, intensive construction and climate change, is becoming an increasingly serious challenge in Serbia. Professor of meteorology, Ana Vuković Vimić, one of the country's leading experts on land degradation, notes that more frequent droughts and shifting rainfall patterns, particularly in eastern and southeastern Serbia, are accelerating the process.
Research shows that Vojvodina has lost around half of its soil organic matter over the past 60 years, reducing the fertility of one of Serbia's most productive agricultural regions. Globally, an estimated 40% of ice-free land is degraded, with annual economic losses from land degradation, desertification and drought approaching USD 900 billion. Despite the strong economic case for restoration, experts note that investment remains limited because many of its long-term benefits are not immediately reflected in financial returns.
Beeld: Illustration D.R.
MK Group completes acquisition of Serbia's leading edible oil producer Dijamant
MK Group has completed the acquisition of Dijamant, one of Serbia's largest food processing companies, from Fortenova Group, following regulatory approval.
The acquisition strengthens MK Group's Agri-Food division and ranks among the largest recent transactions in the regional food and agriculture sector. Based in Zrenjanin, Dijamant is Serbia's leading producer of edible oils and a major regional manufacturer of margarine, vegetable fats, mayonnaise and related products.
The deal adds strategically important processing capacities to MK Group, including sunflower and soybean seed processing, edible oil refining and bottling, and a biomass-powered energy plant. With more than 720 employees, a portfolio of 80+ products, exports to 16 countries, and annual revenues exceeding EUR 175 million, Dijamant further reinforces MK Group's position as a key player in Southeast Europe's agri-food industry.
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