Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER...

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Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006

Transcript of Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER...

Page 1: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Goran Zivkov

Rural Development and Poverty Reduction

MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT

Republic of Serbia

Belgrade, July 2006

Page 2: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Contents of the Presentation

• Serbian agriculture – in general • Rural development and rural economy • Poverty in rural areas

– Causes – Consequences

• Strategy for developing agriculture and addressing the problems

• Measures of the agrarian policy for reducing rural poverty

• Discussion and proposals

Page 3: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Agriculture in SerbiaAgriculture in Serbia

Page 4: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Agriculture share in GDP (%)

0

5

10

15

20

25• Agricultural land: 5.7 million 5.7 million haha

• Arable land: 4.2 million ha4.2 million ha

• 87% private ownership

• Around 0.7 million farms0.7 million farms

• Average farm size: 3 ha (10.6)

• Share of primary production is 14 percent in14 percent in GDPGDP

Agriculture IndicatorsAgriculture Indicators Still very importantStill very important

Page 5: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Country GNI per

capita

Share of

agriculture in GNI

United Kingdom 25 120 1.0

Germany 23 560 1.3

Italy 19 390 2.8

France 22 730 2.9

Slovenia 9 760 3.1

Spain 14 300 3.6

Poland 4 340 3.6

Slovakia 3 760 4.1

Argentina 6 950 4.8

Russian Federation 1 750 6.7

Kazakhstan 1 340 9.0

Brazil 3 060 9.2

Croatia 4 410 9.7

Belarus 1 300 10.7

Macedonia 1 700 11.8

Bulgaria 1 670 13.9

Bosnia and Herzegovina 1 270 14.3

Romania 1 710 15.0

Ukraine 720 16.6

Azerbaijan 650 17.3

Serbia  2 900 21.0

Georgia 600 22.1

Moldova 4 00 26.0

Armenia 700 27.7

Turkmenistan 950 28.8

Tajikistan 180 29.4

Uzbekistan 550 34.1

Albania 1 340 34.2

CountryGNI per capita

Share of agriculture in GNI

World 5 232 6.2

Developed countries 19 766 2.6

Developing countries 1 274 11.9

Asia 928 13.4

South America 3 750 7.6

Africa 482 17.1

Europe 28 095 2.1

Countries in transition 1 940 8.2

Serbia 2 900 21.0

Serbia’s wealth measured by the GNI is at the level of developing countries

Share of agriculture in the GNI is at the level of African countries

Page 6: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Farm Capacities Farm Capacities Policy ChallengePolicy Challenge

 

Ownership over land

Ownership over land %

Number of cows

Number of cows %

Number of farms

Farms Less than 1 ha 4% 1-3 6% 200,000

Small farms 1- 5 ha 35% 3-5 41% 400,000

Commercial farms More than 5

ha 46%More than

10 44% 100,000

Cooperatives avg 400 5% 50 1% 510

Complexes avg 700 10% 100 8% 549

Important for providing food

and food safety, so that

they should have access to inputs, but are outside commercial

flows

To encourage them to

transfer to productions of

a greater value or to

become commercial

farms

Ensure for them further development

and enlargement

Create methods for

them to develop a

democratic decision-making

structure and to transform

them to serve producers

Restructuring and

privatization

Page 7: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

87.2

118.6

96.6

92

119.8

94.7

80

100

120

2000 2001 2002 2003 2004 2005*

Production Index 2000 – 2005 (previous year = 100)

Trend line

Page 8: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

60

70

80

90

100

110

120

2000 2001 2002 2003 2004 2005

Linear (Industrial crops) Linear (Fruit ) Linear (Vegetable )

Linear (Livestock ) Linear (Crops) Linear (TOTAL)

Production Trends 2000 – 2005

Page 9: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Trade in Agricultural ProductsTrade in Agricultural Products (mill. USD) (mill. USD)

-400

-200

0

200

400

600

800

1000

1200

1996. 1997. 1998. 1999. 2000. 2001. 2002. 2003 2004 2005(I/XI)

Export Import Trade balance

Page 10: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005

Export Import Trade balance

Trade withTrade with EU EU (mill USD) (mill USD)

Page 11: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

RRural Areasural Areas

Page 12: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Despite the several-decade long trend of social and Despite the several-decade long trend of social and economic devastation, 44% of the inhabitants of economic devastation, 44% of the inhabitants of

Serbia live in the villageSerbia live in the village

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

1948 1953 1961 1971 1981 1991 2002

Serbia Central Serbia Vojvodina

s

Share of rural population in total population

• Criteria for measuring the rural population

• A lot or a little

• Effects of the increase of the population in rural areas? - Expense + Real estate value + Use of living space + Balanced development + ...

Page 13: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Share of agricultural population in the total urban and rural population

Almost all village inhabitants are engaged in Almost all village inhabitants are engaged in agriculture, and for a third this is their main activityagriculture, and for a third this is their main activity

0

10

20

30

40

50

60

70

80

90

100

1948 1953 1961 1971 1981 1991 202

Urban Rural

• Still a very high share of the agricultural population

• Underdevelopment of other sectors

• Short-lasting refuge

• Economic growth / Development of the service sector in rural areas / Rural diversification

Page 14: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

5,880

5,900

5,920

5,940

5,960

5,980

6,000

6,020

1948 1953 1961 1971 1981 1991 2002

Number of villages in Serbia

Leaving villagesLeaving villages

Page 15: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

1. Being engaged in agriculture is a difficult and painstaking process

2. Marginalization of the village (disparaging and belittling attitude to the village)

3. Entertainment and recreation practically do not exist in rural mountainous areas

4. Problem of finding a spouse

Petar Bjelica, Ph.D.

Process of the population’s migration from villages to

towns

Number of settlements where population growth has been registered (53-91)

Number of settlements where population reduction has been registered (53-91)

1856

4087

Leaving villagesLeaving villages

Page 16: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Tasks of the Rural PolicyTasks of the Rural PolicyDrawing up a National Action Plan for the development of the village and support to the drawing up of regional and local action plans

Creation of space for the affirmation and use of territorial specificities

Decentralization of support to rural development through the development of an interactive link between Government institutions and the local community

Support to economically valuable projects created at the level of the local community and individuals in rural environments, as well as the promotion and exchange of examples and good practices with similar areas.

Page 17: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Support to the development of sustainable agriculture with autochthonous products that have a geographic origin, the development of processing and the local market through the promotion of rural, agro and ecological tourism

Harmonizing economic interests in agriculture with interests of environmental protection and the reduction of agriculture-related contamination

Tasks of the Rural PolicyTasks of the Rural Policy

Page 18: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

RRural Povertyural Poverty

Page 19: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0%

2%

4%

6%

8%

10%

12%

14%

16%

2002 2003 2005

Urban Rural Total

Linear (Rural) Linear (Total) Linear (Urban)

Rural PovertyLarge and considerably larger than among the urban

population

Page 20: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0

5

10

15

20

25

30

35

40

Vojvodina Western Serbia Central Serbia Eastern Serbia South EasternSerbia

Share of the poor Share in total

Rural PovertyRegional imbalance and critically large in certain

areas

Page 21: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0%

2%

4%

6%

8%

10%

12%

14%

16%

2002 2003 2005

Annual variations and dependence on natural conditions

87.2

118.6

96.6

92

119.8

94.7

80

100

120

2000 2001 2002 2003 2004 2005*

• The still large impact of agricultural production on poverty • A considerable number around the poverty line • A larger impact on temporary, and not chronic poverty • The need to find a way to minimize the impact of an extremely bad year

What are the main causes of poverty What are the main causes of poverty increase/reduction in rural areasincrease/reduction in rural areas

Page 22: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Supply

Demand

Price

Quantity

Price drop due to larger supply

Price increase due to lower supply

Page 23: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Supply

Demand

Price

Quantity

Price drop due to larger supply

Price growth due to lower supply

How to m

inim

ize th

e impact

of

extrem

ely bad years

when w

e have a

shortf

all in

all

product

ions a

nd a

consid

erably re

duced d

emand d

ue to

the h

igh p

rice w

hich ca

nnot

com

pensate

for t

he dro

p in p

roduct

ion?

Page 24: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0 5 10 15 20 25

Health center

Hostpital

Pharmacy

Municipality

Secondaryschool

Urban Rural

Development of the infrastructure which is to offer the basic services

What are the main causes of poverty What are the main causes of poverty increase/reduction in rural areas increase/reduction in rural areas

• Link between education and poverty • Basic access to health institutions • Larger expenses due to inaccessibility (of green markets, the hospital) • ...

Page 25: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Agrarian policy and state policy

What are the main causes of poverty What are the main causes of poverty increase/reduction in rural areasincrease/reduction in rural areas

• Industry/services - agriculture transfer• Agricultural producers - consumers transfer• Non-functioning of the farmers’ pension system• Policy resulting in refugee, IDPs… • ................

Page 26: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

1. ECONOMIC GROWTH AND DEVELOPMENT

2. ABSORBING THE TRANSITION SHOCK

3. SOCIAL WELFARE MEASURES

Page 27: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Main strategic directionsMain strategic directions

TypeGoal Abbreviated

Economic effect

Economic

A sustainable and efficient agricultural sector which can compete on the world market, contributing to the growth of the national income

Increase in competitivene

ssProfit

SocialTo ensure that the quality and safety of the food satisfies the needs of consumers

Food safety Spending

Social

To ensure support to the living standard of people dependant on agriculture, and who are unable to follow economic reforms with their development

Support to the standard

Spending

SocialSupport to the sustainable development of the village

Development of the village

Profit and spending

Environmental protection

To preserve the natural environment from the devastating effects of agricultural contamination

Environmental protection

Spending

PoliticalTo prepare Serbia’s agriculture for integration in the EU

Accession to the EU

Complex

PoliticalTo harmonize the policy of domestic support and agricultural trade to WTO rules

Accession to the WTO

Complex

Page 28: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0

5000

10000

15000

20000

25000

30000

2000 2001 2002 2003 2004 2005 2006

'000

000

din

ars

0.00

1.00

2.00

3.00

4.00

5.00

6.00

%

Agrarian budget Percentage of total

Agrarian budgetAgrarian budget 2000-2006 (million dinars) 2000-2006 (million dinars)

(25 bn dinars = 270 million euros in 2006)

Page 29: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 +1 +1 +1 -1 -1 -1 EU

Market Intervention Structural support Administartion DEVELOPMENT OF CREDIT MARKETRural Incentives Enviromental payment Area payment

2005 … +1…..______________n_______________….-1…..EU

Modernization of Agricultural and Adjustment to the WTO & EU

Budget Goal

Page 30: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Budget 2003 Budget 2004 Budget 2005 Budget 2006

Market support Structural support Income supportCredit support Institutional support

Support StructureSupport Structure

Page 31: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Main Policy DirectionsMain Policy DirectionsPolicy SeparationPolicy Separation

• MARKET SUPPORT: The abolition of support to prices and payments by hectare and replacement with subsidies for inputs (a reduction from 90% to 38%)

• STRUCTURAL SUPPORT: Introduction of payments for rural development to support investments (25% of total support)

• CREDIT SUPPORT: Introduction of credit support (22%)

• INCOME SUPPORT: Considerable support for income (12%)

2. Alleviating transition shocks

1. Economic growth and development

2. Alleviating transition shocks

3. Social welfare measures

Page 32: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

1. Economic Growth and

Development

Page 33: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

To create adequate social and economic conditions in village environments and to ensure their contribution to the country’s economic growth

Adoption of the basic principles of rural development.

To make a categorization according to the EU model of less favorable areas for production

To draw up a Program for the development of ecological agricultural systems, especially for marginal areas and areas of protected nature

To adopt regional, local action plans for rural development

To form a Rural Development Agency

To prepare a rural development program for using the funds from the agrarian budget and funds from donations

Envisaged percentage of the share of funds intended for rural development from the agrarian budget

0

2

4

6

8

10

12

14

16

2000 2001 2002 2003 2004 2005 +1 +1 +1 -1 -1 -1 EU

PROPOSED STRATEGY, Novi Sad, 12 November, 2004

Page 34: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

2004 2005 2006

Year

Mili

on E

UR

O

0

1000

2000

3000

4000

5000

6000

Num

ber

of

applica

tions

Money allocation

Total expenditure

Number of applications

Number of approvedapplications

Rural Development and Rural Development and Investment Support Investment Support

Page 35: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

2004 2005 2006

Year

Mili

on E

UR

O

0

1000

2000

3000

4000

5000

6000

Num

ber

of

applica

tions

Money allocation

Total expenditure

Number of application

Number of approved application

Rural Development and Rural Development and Investment SupportInvestment Support

Page 36: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Rural Development SupportFOCUS ON THE USER

PROGRAM OTHER LFA

1. Promotion of production and marketing Farms, Machinery, Storage capacities…

30% 40 - 50%

2. Rural diversification 30-40% 40-60%

3. Rural infrastructure 40% 50-60%

Investment SupportFOCUS ON THE INVESTMENT

1. Establishing cattle-raising farms 30%

2. Improving milk quality 30%

3. Increasing storage capacities 40%

4. Machinery and equipment Irrigation Polythene greenhouses and greenhousesSowing machines, sprayers, ....

30%

OTHER. Introduction of standards (HACCP, ISO…) Establishing orchards and vineyards Selection measures in cattle-raising Land regulation measures ...

Page 37: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

COMPETITION 1 – PRODUCTION AND SALES PROMOTION

1.1.1 Cattle imports

1.1.2 Equipment and machinery

1.1.3 Farms

1.2.1 Curing, refrigeration, packing plants...

COMPETITION 2 – VILLAGE INFRASTRUCTURE

2.1.1 Power grids

2.1.2 District roads

2.1.3 Waterworks

2.1.4 Sewage system

2.1.5 Village households

2.1.6 Agro-business centers and incubators

COMPETITION 4 – ORGANIC PRODUCTION

4.1.1 Promotion and protection

4.2.1 Education

4.2.2 Demo farms

4.2.3 Excursions and regional cooperation

4.3.1 Field conversion

4.3.2 Conversion of cattle farms

4.3.3. Certification

COMPETITION 1

Farms

COMPETITION 2

Dairy industry

COMPETITION 3

Warehouses, refrigeration plants, silos, curing plants, wineries

COMPETITION 3 – VILLAGE PROMOTION

3.1.1 Agro-tourism

3.1.2 Tradition crafts

3.2.1 Promotion of local products

3.2.2 Cultural and sociological activities

3.3.1 Education of the village population

3.3.2 Promotion of integration

3.3.3 Renewal of farms

3.3.4 Agro - Eco Demo farms

3.3.5 Excursions

3.4.1 Village garbage dumps

3.4.2 Pits, graves

3.4.3 Wind-breaks

3.4.4 Afforestation

3.4.5 Protection from erosion

3.4.6 Village dumps

3.4.7 Polythene greenhouses

3.4.8 High mountainous regions???

3.4.9 Mowing meadows

Page 38: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Less favorable areas(Areas with poorer conditions for agricultural production)

MajdanpekŽagubicaBorBoljevacSoko BanjaKnjaževacSvrljigBela PalankaGadžin HanPirotBabušnicaDimitrovgradCrna TravaSurdulicaBosilegradTrgovište PreševoKačanikŠtrpcePrizrenOpoljeGoraDečaniKladovoKučevo

PećIstokZubin PotokZvečan LeposavićKuršumlijaTutinNovi PazarRaškaSjenicaPrijepoljeNova VarošIvanjicaPribojČajetinaUžiceBajina BaštaNova CrnjaŽitišteSečanjBeočinIrigAlibunarKovin

INCENTIVES OF THE MAFWM FOR 2006

Page 39: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

LFA• A marginal area is an area of a municipality on whose territory

there exist – natural (high altitude, poor land quality, slanting terrain, floods and

all types of erosions) and – legal (protection of nature and protection of water sources)

restrictions for the development of intensive agricultural production on large areas.

• Insufficiently developed areas (Law on Insufficiently Developed Areas of the Republic of Serbia for the period until 2005, Official Gazette of RS number 53/95 – settlements in the territories of the mentioned municipalities from articles 3 and 4 including the municipal center),

• The altitude of the settlement, i.e. the area where the investment is being realized, above 600 m and

• Protected areas – national parks and areas of exceptional natural value of special importance (Law on the Spatial Plan of the Republic of Serbia, Official Gazette of RS number13/96).

Page 40: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Grants for rural development

Dependence on demand

Page 41: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

fruit and vegetable processing (HLADNJAČE)

Centralna Srbija 159 52 Imaju ili su u procesu uvodjenja HACCP and ISO 9001 Vojvodina 29

fruit and vegetable processing (FABRIKE ZA TOPLU PRERADU)

Ukupno 60 20 imaju ili su u fazi uvodjenja HACCP and ISO 9001

ECONOMIC COMPANY/ACTIVI

TY

TYPE OF PROCESS

ING

CONSULTING

COMPANY

APPROVED AMOUNT

REQUESTED FUNDS FOR

PRODUCTION

"HIGLO" AD

refrigeration plant

ConsAct Mr. Janoš

Varga

525,840.00

For imports and costs of certification

HACCP

Deeply frozen vegetables, peas and green beans 2000t, and they also produce: cauliflower, peppers, carrots, potatoes, parsnip, kohlrabi and broccoli.

"DONIMPEKS" ДОО

refrigeration plant

Qualitass education

800,000.00

For the costs of introduction and

certification HACCP and ISO 9001

peas-630, green beans-840, carrots-290, peppers-660, spinach-480, onions-300, corn-1050, parsnip-100, celery-110t.

"DELTA FUNGI" DOO

mushroom

processing

AQA639,200.0

0

For the costs of introduction and

certification HACCP and ISO 9001

mushroom processing

" JUGPROM" DOO

fruit and vegetable processin

g

AQA380,800.0

0

For the costs of introduction and

certification HACCP and ISO 9001  

"MARNI" DOO

refrigeration plant, mushroo

ms

AQM800,000.0

0

For the costs of introduction and

certification HACCPmushroom processing

STR″ŠULOVIĆ″

fruit and vegetable processin

g

AQA292,400.0

0

For the costs of introduction and

certification HACCP and ISO 9001 mushroom processing, Capacity usage 100%

"DELIKATES SPICES &

PEPPER" DOO

spice pepper

processing

Quality consulting

217,800.00

For the costs of introduction and

certification HACCP80% of total production is exported to the foreign market

"SLOVAN - PROGRES" DOO

Fruit and vegetable processin

g

Jugoinspekt399,000.0

0

For the costs of introduction and

certification HACCP and ISO 9001  

"MARTIS COMERCE" DOO

spice pepper

processing

Quality consulting

465,460.00

For the costs of introduction and

certification HACCP and ISO 9001

90% exported to EU countries

"AGRO-MOBIL" DOO

production of seed

and mercantil

e potatoes

Tehnomag800,000.0

0

For the costs of introduction and

certification HACCP and ISO 9001

production of seed and mercantile potatoes, Capacity usage 90%

"3 MART" DOO

medicinal herbs,

mushrooms

Alfa-team309,600.0

0

For the costs of introduction and

certification HACCP 

JUROFUNGO DOO mushroo

msAQA

353,600.00

For the costs of introduction and

certification HACCP and ISO 9001

mushroom processing

POLIMARK

ketchup, mayonnai

se and mustard productio

n

 186,104.0

0

For re-certification in HACCP system and

ISO 9001 

PK "PRVI MAJ" AD, refrigeration plant RUSKI

KRSTUR

refrigeration plant

ConsAct Mr. Janoš

Varga

220,160.00

For the costs of introduction and

certification HACCP

frozen vegetables (peas, sweet corn, root vegetables, broccoli, cauliflower, onions and peppers).

DOO "POLO"

Fruit and vegetable processin

g

Gradac479,080.0

0

For the costs of introduction and

certification HACCP and ISO 9001

vinegar production and warm vegetable processing (pickles, peppers, beet, pickled foods and red-pepper chutney)

"MERKOP" DOO

fruit and vegetable preservat

ion

Ingel798,080.0

0

For the costs of introduction and

certification HACCP and ISO 9001

pickles, chili peppers and peppers. Capacity usage 60%

"FUNGO-JUG" DOO

refrigeration plant

AQA  

For the costs of introduction and

certification HACCP and ISO 9001

forest fruit processing (Boletus mushroom and chanterelle), fruit processing - purchase, freezing and packaging (raspberries, blackberries, strawberries, plums, currants and blueberries)

"RUMEN" ZZ

fruit and vegetable processin

g

Q expert  

For the costs of introduction and

certification HACCP and ISO 9001

preserved vegetables (beet, tomato puree, mild ketchup, meat and vegetable stew, cucumbers, peppers) - capacity 2260t. frozen vegetables (peas, green beans, carrots, potatoes (cubes and French fries), parsley, parsnip, peppers, onions, vegetbles for soups and vegetables for soups and chowders, spinach, cauliflower - capacity 2170t.

"INTERFOOD 20" DOO

Mushroom

processing

AQA  

For the costs of introduction and

certification HACCP and ISO 9001

mushroom purchase and processing (fresh, dry and pickled (Boletus mushroom and chanterelle)

ZZ "VOĆAR - DRAGAČEVO"

refrigeration plant

Jugoinspekt  

For the costs of introduction and

certification HACCP and ISO 9001

Processing of potatoes into French fries, reception and storage of berries, drupes and other fruit, as necessary. The refrigeration plant capacity is 5000 t, under way is the construction of a refrigeration plant of a 1000 t capacity. Total freezing capacity is 120t/24h. Cooperation with 120 households

"TITEL BRAND" TITEL AD

fruit and vegetable processin

g

AQA  

For the costs of introduction and

certification HACCP and ISO 9001

Warm and cold fruit and vegetable processing (peas, carrots, tomatoes, peppers, cucumbers, sweet corn) and (apricots, plums, sour cherries), capacity 20 000 kg, usage 40%

FROSTEX D.O.O refrigeration plant

AQM268,800.0

0  frozen fruit

"J.P.L. SPECIAL" DOO

refrigeration plant

AQA444,620.0

0  The refrigeration plant is located in Kosjerić.

FLORA

refrigeration plant

SMS Consulting

770,000.00

  frozen fruit purchase and processing

DRAGAČEVAC PROMET DOO

refrigeration plant

SMS Consulting

800,000.00

   

LIBERTAS D.O.O

refrigeration plant

AQA800,000.0

0   

"STANIĆ" DOOrefrigeration plant

SMS Consulting

446,880.00

Two itemsdeep freezing, warehousing and fruit processing, primarilz raspberries.

Exports are to the West European market.

"JUŽNI BANAT" AD

refrigeration plant

AQA800,000.0

scope of production: fruit 20 000 t/god, grapes 2 000 t/year, brandy 60 000 l.

"EXAL" CO DOOrefrigeration plant

Citadela800,000.0

0  fruit and vegetable deep freezing, fruit and vegetable drying.

"DONIMPEKS" ДОО

refrigeration plant

Qualitass education

800,000.00

www.donimpex.comraspberries-1030 t, blackberries-900 t, strawberries-580 t, sour cherries-

1430, plums-600, peaches-450, apricots-840, pears-520, quince-410, currants-190, forest blueberries-180, forest blackberries-140t.

ABD PROM DOOrefrigeration plant

AQA350,880.0

0  frozen plums, sour cherries

AGROLISA DOOrefrigeration plant

Kom projekt533,800.0

0  frozen fruit, mostly raspberries

"PAMS" DOOrefrigeration plant

AQA353,600.0

purchase, processing and exports of forest fruits and fruit (mushrooms, strawberries, raspberries and plums).

MENEXrefrigeration plant

AQM598,400.0

0   

ZADRUGAR DOOrefrigeration plant

AQM584,800.0

 

SIROGOJNO COMPANY DOO

refrigeration plant

AQM617,728.0

0  frozen fruit purchase and processing (raspberries, blackberries)

JUGOTREJD DOOrefrigeration plant

SMS518,500.0

0  purchase and fruit processing (raspberries and blackberries)

raspberries PRODUKT DOO

refrigeration plant

 274,079.0

cultivation, processing and exports of frozen raspberries. The refrigeration plant has a total warehousing capacity of 3,000 tons

TRGOVINSKO PREDUZEĆE

"GRADINA DMR" AD

refrigeration plant

Q expert internationa

l

448,000.00

 

Four chambers of a 600 t capacity for warehousing frozen fruit and vegetables, tunnel for freezing of a 20t/24h capacity. The fruit and vegetables are purchased from agricultural producers (raspberries mostly 400 producers)

DOO "BUDIMGRAD"

refrigeration plant

ARS639,200.0

frozen fruit purchase and processing (raspberries, blackberries and plums). Tunnel for deep freezing 8t/24h and 15t/24h. Chambers for the simultaneous warehousing of 500t.

MIRALEX FRUIT DOO

refrigeration plant

SMS consulting

343,400.00

 Exports to EU countries (France, Germany, Austria, Italy, Belgium). Production of frozen raspberries (mostly Rolend)

"BSF" ADrefrigeration plant

ConsAct Mr. Janoš

Varga

633,080.00

 

HIBRID ADrefrigeration plant

AQM800,000.0

Two refrigeration plants for the purchase and processing of fruit (frozen) 1000 and 1100t, almost everything is exported

"YUGENT" DOOrefrigeration plant

SMS consulting

 

Preliminary contract with a certification company and bill of

charges frozen fruit (raspberries)

EURO FRIGO DOOrefrigeration plant

SMS consulting

   frozen fruit (raspberries)

"D.M.B" DOOrefrigeration plant

SMS consulting

 

Contract with a certification

company and bill of charges

Juice of berries and forest fruits,non-concentrated, frozen raspberries

"FRUKOM" DOOrefrigeration plant

SMS consulting

   frozen raspberries

ZA FRUIT DOOrefrigeration plant

AQM    production, purchase and fruit processing, 90% is exported, one of the founders is the German company Obst Trautner GmbH

"PROGRES PROMET-

refrigeration plant MILENIĆ"

refrigeration plant

   

They do not have a preliminary contract with a certification

and consulting company, a bill of

charges and a certification deadline  

DOO "PANIĆI"refrigeration plant

AQA    purchase, processing and fruit freezing (sour cherries, raspberries, blackberries, plums). capacity 1500t, installed capacities 450t, daily processing 35t.

"FRIKOS" DOOrefrigeration plant

ConsAct Mr. Janoš

Varga   

frozen fruit (raspberries, blackberries, sour cherries, plums, strawberries) and mushrooms. Warehousing capacities 800t.

AD "EUROFRIGO"refrigeration plant

AQA    purchase, freezing, finishing (sour cherries, plums, raspberries, blackberries). 90% exports

PREDUZEĆE "INTERFOOD 60"

DOO

refrigeration plant

AQA      

"RADENKO POPOVIĆ" DOO

refrigeration plant

AQM      

DOO "TRI KLASA"refrigeration plant

ARS    purchase i fruit freezing (strawberries, sour cherries, raspberries, blackberries, plums)

"AGROFOST" DOO

refrigeration plant

ConsAct Mr. Janoš

Varga   

freezing, finishing and packaging of raspberries, blackberries, plums and sour cherries

"BERY-EXPO" DOO

refrigeration plant

ConsAct Mr. Janoš

Varga 

They do not have an offer from a certification

company

frozen fruit (raspberries, blackberries, plums, sour cherries strawberries and dog-rose berries)

"ORBITA" DOOrefrigeration plant

AQA     purchase finishing and exports frozen raspberries

"LEDENICE" ADrefrigeration plant

FON  Offer of a

certification company

purchase and fruit processing

HORTO FRUITS INTERNATIONAL

refrigeration plant

AQA    fruit processing (purchase, freezing, finishing i packaging). Berries (raspberries, blackberries, strawberries) and plums

"GOLDEN FALCON" DOO

refrigeration plant

TUV    purchase of fresh fruit, freezing, warehousing, processing, packaging and sale

"GODENS" DOOrefrigeration plant

ConsAct  

They do not have a certification deadline and an offer from a

certification company

 

"FRIGOFRUTTI" DOO

refrigeration plant

Bonex     Frozen fruit production

"AGROTEKS" DOO

refrigeration plant

AQM     Frozen fruit (raspberries, blackberries plums)

"ESKIMO S PRODUKT" DOO

refrigeration plant

Jugoinspekt  

They do not have an offer from a certification

company

capacity 200t, two standard tunnels of 5 and 10 t. Deep freezing of fruit and vegetables and the pre-freeying of fresh fruit, grapes and vegetables.

LUKAFOOD DOOrefrigeration plant

AQA    processing and freezing of fresh and frozen berries, processing fresh, dry, frozen and pickled mushrooms. Scope of production 800t per year

"MIG-PROMET" DOO

refrigeration plant

ConsAct     Chamber of a 150t capacity.

"BELFRUT" ADrefrigeration plant

Jugoinspekt  

They do not have a certification deadline and an offer from a

certification company

capacity 10 000 t. raspberries blackberries, strawberries, plums, sour cherries, apples and other

"ML" DOOrefrigeration plant

Delpas  offer from a certification

company

One line for the sorting andpackaging, frozen fruit in packages of10, 5, 2,5 and 1 kg., as well as 450, 250 and 284 g.

"PANON" ADBeverage

sAQA

800,000.00

  vinegar production - 34 000 l.

"FRUVITA" DOOBeverage

sQualitass education

800,000.00

production of fruit juice and non-alcoholic beverages based on fruit, the fruit usage for the peach and apricot is 70% , for berries and baccate fruilt is 90%.

" EKOFARM" DOO

Beverages

Support521,976.0

Wild apple vinegar, juices and sirups made of forest fruits, fruit wines made of forest fruits

" DUGA FRUIT" DOO

Beverages

Support800,000.0

refrigeration plant for keeping frozen mash and concentrates of a 70t capacity. Production line capacities: milk pack 1l 3600 l/h, milk pack 02l 1200l/h and glass bottle 0,125 and 0,2 5000kom/h, exports (Macedonia, BIH, Albania)

FRESH & CO DOOBeverage

s AQM

800,000.00

  

" NEKTAR " DOO

fruit and vegetable processin

g

Q quality800,000.0

production of fruit and vegetables on a space of 2000 ha. Exports: Canada, Australia, Switzerland, EU, China, US, BiH, Macedonia and Croatia

RESAVA KOMERC DOO

fruit and vegetable processin

g

Q quality629,000.0

0

1000 t, processing of cucumbers, pepers and chilli peppers into jams and preserves. 90% sour program and 10% sweet program. Mostly the entire production is exported.

DOO VOĆAR-KOPAONIK

fruit and vegetable processin

g

ARS639,200.0

Total fruit warehousing capacity is77000 liters. The basic raw material for production (fruit and grapes) is own production and purchase from agricultural producers of the region. Exports mostly go to Austria, Sloveni and Switzerland. 80% goes to the foreign market.

" JUGPROM" DOO

fruit and vegetable processin

g

AQA380,800.0

processing of fresh fruit and vegetables (plums, sour cherries, raspberries, blackberries, strawberries, apricots, peaches). Capacity usage 100%. Exports almost 100% (France, the Netherlands, Belgium, Germany)

STR″ŠULOVIĆ″

fruit and vegetable processin

g

AQA292,400.0

production, processing and packaging of fruit and vegetables (production of prunes). Capacity usage 100%.

"SLOVAN - PROGRES" DOO

fruit and vegetable processin

g

Jugoinspekt399,000.0

 

"VINO ŽUPA" ADBeverage

s Qualitas

education   

For the production of juices and non-alcoholic beverages in a controlled atmosphere 300 000t, refrigeration plant for warehousing berries and forest fruits 120 000t.

AD "SWISSLION MILODUH"

Beverages

Yumek     production of alcoholic, non-alcoholic beverages and marmelade

"VOĆAR-PALANKA" AD

fruit and vegetable processin

g

Ingel     Warm fruit and vegetable processing, Capacity usage 52%,

"RADO-SLOV-I" DOO

fruit processin

gAQA      

VULOVIĆ I DR. MEGA-F.KOMERC

OD

fruit and vegetable processin

g

Support  They have no

certification deadline 

PTP"KARLO EXPORT IMPORT"

DOO

fruit and vegetable processin

g

Support     Warm fruit and vegetable processing

Subsidies for introducingstandards

Page 42: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

2. Alleviating the Transition Shock

Page 43: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Better product marketing

INCREASED CONSUMPTION

Finding new markets Consumption growth on existing market

Increased purchasing power

Lowering of cost price

Introduction of new technologies

Integration

Input subsidizing

Fuels

Fertilizers

100 liters 16 dinars Registered

30% refund with a receipt

Page 44: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

MAIN GOAL:

DURATION: NECESSARY FUNDS:ACTIVITIES:

i) To develop the financing of the agricultural sector from real sources, instead of burdening producers

ii) Development of a credit historyiii) Increased competitiveness by enabling producers to

gain access to capital 5 – 7 years700 million to 1 billion EUR - To support the credit market with money from the

agrarian budget - To withdraw and leave financing to banks

2004 2005 2006 2007 2008 2009 2010 … Necessary

fu

nd

s

Bank funds

Funds of the agrarian budget

• The establishment of a credit history (acquired trust) • Changed structure

Change in the payment system

through the establishment of

a register

Credit supportCredit support

Page 45: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

• A total of over 23,341 short-term credits paid– Average credit

value 69,879 dinars

Short-term Credits in Short-term Credits in 2005 2005

2005 2006

Up to 1 ha 10

1-5 ha 40 60

5-10 ha 80 120

Over 10 80 240

Page 46: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

• A total of over 1,923 long-term credits paid

Average value 16,188 EUR

Long-term credits in Long-term credits in 20052005

Page 47: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

3. Social Welfare Measures

Page 48: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Main goals of agriculture in SerbiaAbbreviate

dEconomic

effect

Sustainable and efficient agricultural sector which can compete on the world market, contributing to an increase in the national income

Increased competitiven

essProfit

To ensure that the quality and safety of food satisfies the needs of consumers

Food safety Spending

To ensure support to the living standard of people depending on agriculture, and who are unable to follow the economic reforms with their development

Support to the standard

Spending

Support to sustainable village development Village development

Profit and spending

To preserve the natural environment from the devastating effects of agricultural production

Environmental protection

Spending

To prepare Serbia’s agriculture for integration into the EU

Accession to EU

Complex

To adjust the policy of domestic support and agricultural trade to WTO rules

Accession to WTO

Complex

Main goals

Support to non-commercial farms• 40,000 dinars per household member • People above 55 years of age • Farmer insured for a minimum of 10 years

Page 49: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

i) the development of a land leasing market implying that the land is cultivated by the one who is able to do so in a more successful manner;

ii) the joining of cultivated land;iii) support to households whose members are no longer able

to cultivate their land due to their age.

Producer above the age of 60 Producer below the age of 40

4.000 dinars+

4.000 dinars

4.000 dinars

Development of a Land Leasing Market

NEW

Page 50: Goran Zivkov Rural Development and Poverty Reduction MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Belgrade, July 2006.

Message

• Poverty requires the special attention of all the factors of society and its reduction must be a priority

• Without understanding the essence of lasting and occasional poverty it is impossible to check it

• Rural poverty is the result of the long-lasting neglect of a balanced development, which is why it is necessary to establish coordination among all those who can contribute to its reduction