Serbia: Competitive Agriculture-project launches third grant scheme

Solar power plant endangers birds; a new regenerative agriculture alliance formed; sugar harvest looks great; government's negotiations with farmers on track - Our weekly briefing on agriculture, food and nature news in Serbia

People sitting at a conference
Beeld: ©Mila Mirkovic
The Competitive Agriculture Project conference

“Competitive Agriculture” Project has announced a third public call for grants

At the annual conference of the “Competitive Agriculture ” project, implemented by the Ministry of Agriculture in cooperation with the World Bank, a third public call has been announced, which is primarily intended to increase the competitiveness of entrepreneurs, companies and agricultural cooperatives (so-called aggregators) that produce or purchase primary agricultural products, process them and place them on the market. The public call will open on Monday, December 4 and will have a total value of  €6.4 million. Aggregators are companies with up to 50 employees, with annual turnover up to €5 million and with up to 25% of public capital in the ownership structure. Investment values for aggregators can range from €25,000 to €400,000, and the amount of grants can range up to €200,000.

Solar power plant could endanger important bird habitat

The Society for the Protection and Study of Birds of Serbia, the Institute for Biological Research Siniša Stanković, and twelve environmental NGOs have submitted objections to the Detailed Regulation Plan for a solar power plant that would cover parcels in municipalities of Opovo and Baranda in Banat region of Vojvodina. These organizations claim that the project would permanently devastate a large, rare, and significant bird habitat. In early November, the Opovo municipality put the Detailed Regulation Plan for the solar power plant in the cadastral municipalities of Opovo and Baranda on public discussion. If implemented, the project would irreversibly endanger 3.800 hectares of an extremely rare and significant habitat type, according to The Society for the Protection and Study of Birds in Serbia.

"If the plan for the construction of the solar power plant were to be realized, it would mean permanent devastation of extremely valuable habitats and the irretrievable loss of sensitive ecosystems unique to the territory of Serbia, invaluable for Europe and the world," quotes the organizations’ statement the portal NovaEkonomija.

The Center for Biodiversity Information Database of the Faculty of Biology in Belgrade lists 127 species of plants and animals significant for protection which inhabit the area in question. "Over 200 strictly protected species of animals and plants have been recorded in the area, with over 300 different species identified. Of these, 185 are bird species, 102 algae species, and 14 reptile and amphibian species. Because of all this, it is unacceptable for such a sensitive living community to be irreversibly destroyed," the statement concludes. Serbia ratified the Habitat Directive and these habitats are recognized as a priority for protection areas in the EU under the name "Pannonian salt steppes and salt marshes".

Alliance of Regenerative Agriculture of Serbia

News portal AgroSmart  has recently reported about the foundation of a new association called the Alliance for Regenerative Agriculture. The core of this new alliance consists of the Faculty of Agriculture Novi Sad, Institute for Development and Innovations Belgrade and Florian Farkaš, an agro-consultant and regenerative farmer from Bajmok, Vojvodina. The foundation of the alliance follows continuous efforts by Balkan Eco Innovations and its partner GILab to highlight the economic benefits of regenerative agriculture and its positive impact on soil quality as well as its contribution towards climate change mitigation. To that end it organized several educational workshops, funded by the EU AgriCapture and Enfasys projects.

As part of preparations for the official launch of the Serbian Reg-Agri-Alliance in March 2024, Balkan Eco Innovations together with GILab have set up working groups and developed well-designed plans and activities, focusing on education and the organization of demonstration farms. The launching event foreseen for March 2024 will provide opportunities for other interested parties to become part of the alliance by demonstrating tangible goals, objectives and gained results.

Serbia has enough sugar

The Ministry of Agriculture expects that this year's sugar beet harvest will yield around 327.000 tons of sugar. This will meet the domestic demand of 250.000 tons, and will also allow for the export of the rest. Given the increase in sugar prices on global exchanges because of shortages, a rise in its export price is also possible, as stated in the market analysis by the Ministry.

However, export prices of domestic white sugar, which significantly increased a year ago, have been decreasing for some time. The export price of sugar in October was €799 per ton, significantly lower than the price in May when it was €1,000. According to Customs Administration data, the export of white sugar in the previous economic year (2022/23) amounted to 47.5 thousand tons, which is 67 percent less than in the previous economic year (145.3 thousand tons). Retail prices for white granulated sugar in Serbia currently range from €0.9 to €1 per kilogram. The Republic Statistical Office estimates this year's sugar beet harvest at two million tons.

Serbia lacks enough fish for domestic needs

Due to the increased turnover of fresh and frozen fish during the Christmas fasting period, veterinary inspections will conduct extraordinary controls on fish sales in all registered facilities. During the inspections, veterinary inspectors will check fish procurement certificates, labels, fish handling practices, and storage temperature regimes, as announced by the Ministry of Agriculture. They will also inspect the expiration date and send samples to authorized laboratories.

The veterinary service recommends purchasing fish in fish markets or places where consumers have access to information about the type and origin of the fish, as well as the expiration date. The Christmas fasting period for the followers of Serbian Orthodox Church (Julian orthodox calendar) will last for 6 weeks until Christmas on January 7. This is a period when the demand for fish is highest in the country. Ms. Mirjana Miscevic, an advisor at the Serbian Chamber of Commerce, related to the start of the Christmas fasting period said that the country fails to produce enough fish for domestic needs. Because of that, the price of live carp in supermarkets ranges from €5.7 to €6.8 per kilogram. "Serbia imports 41,328 tons of fish annually, worth around €138 million, while the total domestic production and catch of fish amount to about 8,156 tons," said Miscevic.

Farmers and Government officials to continue negotiations

Serbian Prime Minister Ana Brnabic and Jelena Tanaskovic, Minister of Agriculture met with representatives of farmers’ associations over the last weekend. As the Prime Minister stated, a “high level of agreement” was reached at the meeting with farmers in Kisac, and they agreed to hold another meeting in the coming days. Representatives of farmers that organized the protest said they would not resume traffic blockades even though an agreement was not signed with the government yesterday. "We have reached a good compromise with the farmers, which will not reduce support to other agriculture producers," said PM Ana Brnabic. Farmers will receive a subsidy of €153 per hectare, and an additional €145 for seed material. They will be allowed to operate independently on the agricultural products exchange, which will be legally regulated. Farmers have agreed that the refund of €0.4 of excise tax for fuel purchased at subsidized prices will be returned from the state budged within two weeks from the date of fueling. Their initial demand was for fuel to be pumped at a price reduced by excise taxes. It has also been agreed that for diesel, not purchased at the petrol stations of the Petrol Industry of Serbia (NIS) at the privileged price of €1.5 /l, but at other petrol stations at regular prices, the difference will be refunded in full. As reported by the media, a favorable credit line will also be launched to allow farmers to refinance previously taken loans and a working group on a state level will be formed to define principles of the Agro Commodity Exchange market.