Serbian agrifood is facing tough market conditions and growing climate risks, but new opportunities are emerging. This week, we look at the challenges facing apple growers, the push for better crop insurance and water management, award-winning regional wines and brandies, and efforts to bring young people into sustainable agriculture.
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Good harvest, low prices: Serbian apple growers struggle to find markets
Serbia expects a fruit harvest of around 1.5 million tonnes this year, including approximately 450,000 tonnes of apples. However, higher production has not translated into better returns for growers, as low purchase prices, drought and competition from imports squeeze margins.
Apple production could rise by 100,000–120,000 tonnes compared with last year, adding to downward pressure on prices. Growers also face competition from fresh apples imported from Poland and apple purée and concentrate from China. Zoran Keserović, a retired professor at the University of Novi Sad’s Faculty of Agriculture, proposes extending import levies until March to give domestic producers more time to sell their crop. Though understandable, any such measures would need to comply with the EU–Serbia Stabilisation and Association Agreement. In the long run, investing in quality, safety and storage would be a more sustainable solution.
Nikola Kotarac, director of the Voćar agricultural cooperative in Slankamen, says farm-gate prices have fallen to 40–50 dinars per kilogram, down from 60–70 dinars last year. Polish apples sell for 150–200 dinars per kilogram in Serbian shops, although farm-gate and retail prices are not directly comparable. Second-class Serbian apples destined for processing bring in just 11–12 dinars per kilogram, leading some growers to consider leaving their crop unpicked rather than incur further harvesting costs.
Voćar is storing around 3,000 tonnes of apples, hoping prices will improve by spring. Saudi Arabia offers a potential export market, but high packaging and transport costs remain a major obstacle.
Beeld: LAN Belgrade team
Drought losses mount as agricultural insurance declines
Drought and other extreme weather events are causing heavy economic losses in Serbia, yet agricultural insurance remains limited. In 2026, drought-related losses in maize alone are estimated at €360–500 million.
Since 2012, annual damage from extreme weather has exceeded €1 billion in seven years, largely due to agricultural losses. Drought accounts for more than 70% of damage to agricultural production. According to economists Uroš Davidović and Dr Nataša Tešić, insurance covered only around 2% of lost agricultural value during eight years of extreme drought.
After nearly quadrupling between 2005 and 2022, the number of crop and fruit insurance policies fell by around 27% between 2022 and 2025. The average premium rose from around €735 in 2018 to €1,040 in 2024, in constant prices. Meanwhile, around 30% of claims resolved since 2019 were rejected or cancelled.
The economists call for more accessible drought insurance, clearer policy terms, better data on agricultural losses and stronger risk-sharing between insurers and the state. Insurance should complement practical adaptation measures, including improving soil moisture retention, choosing drought-tolerant crops and managing water sustainably. Low uptake is not unique to Serbia: even in the Netherlands, which has extensive experience with agricultural insurance against extreme weather, only 15% of farms growing weather-sensitive crops were insured in 2022. Coverage was considerably higher among apple and pear growers, at around 60%.
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Drainage: the overlooked side of water management
While drought has put irrigation in the spotlight, excess water can be just as damaging to crops. In Serbia, ageing infrastructure, poor maintenance and uneven coverage leave many farms vulnerable to heavy rainfall.
In Vojvodina, drainage covers around 1.78 million hectares through 331 systems and more than 20,600 km of canals. In central Serbia, systems cover only around 18% of first- to third-class agricultural land, while an estimated additional 1.5 million hectares could benefit from drainage.
Many canals are clogged with sediment and vegetation, and much of Serbia’s pumping infrastructure is decades old. The French Development Agency (AFD) is supporting the modernisation of Serbia’s hydraulic infrastructure through €35 million in financing to replace 55 pumps used for flood protection and irrigation. The project also aims to improve energy efficiency and enable remote monitoring and management.
Underground pipe drainage can offer another solution where canals are insufficient, although installation costs can reach €2,000 per hectare. Meanwhile, Vojvodina is developing dual-purpose canal systems that can drain excess water and supply irrigation during dry periods. The programme covers 47 systems, around 875 km of canals and more than 76,000 hectares across 25 municipalities.
With climate change bringing both heavier rainfall and longer dry spells, Serbia needs water infrastructure that can do more than simply remove excess water. Better-maintained canals, modernised pumping equipment and systems that can both drain and supply water will help farmers protect yields and adapt to increasingly unpredictable weather.
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Regional wines and fruit brandies shine at Belgrade fair
The Open Balkan Wine Vision fair in Belgrade celebrated leading wine and fruit brandy producers from the region, attracting 550 exhibitors from more than 30 countries and buyers and sellers from 45 countries.
Zvonko Bogdan Winery won Best International White Wine, Aleksić Winery Best International Red Wine, and Jović Winery Best Indigenous Red Wine. Bikicki Winery received the sweet wine award, while Đurđevića Legat Winery won Serbia’s Best in Show award and Kantina Fani took the corresponding award for Albania.
The wine competition attracted 800 samples, while 60 producers submitted 130 fruit brandies. The top brandy awards went to Zarić, Hu-bert and Emperus distilleries. International wine expert Caroline Gilby praised the quality of the wines on display.
Organised under the Open Balkan initiative of Serbia, Albania and North Macedonia, the three-day event also featured tastings, expert sessions and culinary competitions. More than 2,000 business-to-business meetings helped regional producers showcase their products and build connections with international markets.
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Serbia gets a World Food Forum youth chapter
A Serbian national chapter of the World Food Forum (WFF), FAO’s global platform for youth engagement in agrifood systems, was introduced at the University of Belgrade’s Faculty of Agriculture in early October.
Launched in 2021 as a youth-led initiative within FAO, the WFF brings young people together to help shape the future of food, agriculture and rural development. The Serbian chapter will connect young people from agriculture, science, entrepreneurship and policymaking, focusing on dialogue with decision-makers, innovation and cooperation with national institutions and international partners.
The initiative aims to give young people an active role in developing more sustainable agrifood systems. Representatives of the Serbian chapter have already taken part in the World Food Forum in Rome. A welcome initiative to which we as the Agriculture Team at the Netherlands Embassy hope to contribute with our report on Green Education in Serbia, to be published shortly.
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