SerbiaSerbia:: AgricultureAgricultureInvestment OpportunitiesInvestment Opportunities

Jasna RebJasna RebMinistry of Agriculture, Ministry of Agriculture,

Trade, Forestry and Water Trade, Forestry and Water ManagementManagement

Bratislava, 24 Jun 2011.

Facts about Serbian agriculture

Agricultural land: 5.7 mill. ha (0.69 ha per capita);

Arable land: 4.2 mill. ha (0.46 ha per capita);

87% of land is private ownership;

Number of households: approximate 700,000 (about 441,000 are registered);

Average farm size: about 3 ha (commercial farm size 10.6 ha);

44% of population lives in rural areas.

Structure of Serbian agriculture production

FruitFruitss and and vegetable vegetable

12 %12 %

LivestockLivestock43 %43 %

Field cropsField crops42 %42 %

Other Other cropscrops3 %3 %

LivestockThe livestock pool in Serbia, after

a decline in the last decade of the twentieth century, is slowly recovering.

Within the livestock production, cattle production plays a key role compriseing 45% of the total animal production, with 26% being devoted to the dairy production, and 19% being devoted to the production of beef.

Structure of animal production in the

total livestock production in 2009:

Cows 45% Pigs 35,90% Fowl 13,20% Sheep 5,40% Beekeeping 0,50%

Grains

The production of wheat, barley, rye,oats, corn, millet and sorghum, uses about 60% of the arable land in

Serbia.

Corn is the most common grain crop.

Regarding corn production Serbia is the

fifth largest producer in Europe, behind

France, Ukraine, Romania and Italy.

OilseedsThe production of oilseeds is sufficient

tocover Serbia’s domestic needs while

the key export products are sunflower oil

andsoybean oil.

Sugar beetSugar is also a significant export

itemfor Serbia.

Seed material

Serbian seed companies are significant seed exporters, since new, quality varieties and hybrids were created and recognized (wheat, maize and barley seed) in the recent years .

Medicinal and Aromatic

Herbs and SpicesThanks to the favorable climate, land

and unpolluted environment Serbia is very suitable for the cultivation of medicinal

plants.The most widespread herb species are:domestic mint, chamomile, parsley,

fennel,dill, marshmallow and lemon balm.

Fruit production

Vegetable production

Grape, wine and brandy production

Serbia is a country with great potential, and a long tradition of grape and wine production.

Thanks to the quality local plums,slivovitz has become a

recognizableSerbian brand. Other types of

brandyare b. made of grapes, pears,

apricots,quince and herbs.

Agriculture in national economy

Share of agriculture in GDP Share of agriculture in GDP decreased

from 14,30% to 10,62% during transition period; 10,3% in 2010 (estimation).

Growth rate Extremely fluctuation of growth rate

(range about 23 pp); To agriculture growth rate of 2,2% in

2009 contributed the most: corn, wheat, rape seed and fruit;

There are no significant differences, comparing with countries in the region.

Share in foreign trade 12,4% in export 23%, in import 6,2%.

Source: Statistical Office of the Republic of Serbia

Agricultural Trade Balance Serbian agriculture in last nine years (2002-2010) increased total trade of agricultural

products 3 times, whereby export was increased 4,6 times, import 1,7 times and (positive) trade balance 8 times (compare with 2005);

Surplus was increased from 150 million USD in 2005 to over 1 billion USD in 2010; Export-import ratio was increased from 0,80 in 2002 to 2,17 in 2010.

Source: Statistical Office of the Republic of Serbia

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EXPORT

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Trade structure according to destinations of trade in 2010

• Serbia’s main trade partner was EU in 2010;• Trade between Serbia and EU is regulated by

Stabilization and Association Agreement (SAA).Source: Statistical Office of the Republic of Serbia

Top 10 agricultural products EXPORT

Corn, Yellow White sugar Roland Raspberry Wheat Sunflower oil, edible and

raw Beer made from malt Fresh Apples Soft drinks Griz Raspbery Soybean oil

IMPORT

Coffee Fresh bananas Cigarettes containing

tobacco Prepared foods Sweet oranges Soya beans Sunflower seeds Palm oil Tomatoes, chilled Cigarettes containing

tobbaco, others (HRO2C)-CEFTA

Agribusiness sector – field of possibilities

Serbia as a center of south-east region, is attractive for investments of companies from other countries for many reasons:

•General advantages:-Good geographical location (middle of Balkan, heart of South-east Europe, Pan-European Corridors);-Favourable climate and soil conditions.

•Economic advantages:-Relatively low costs of land (rent/sale);-Relatively low cost of labour (qualified);-Significant agro-processing capacities;-Favourable fiscal policy (incentives for foreign investors).

•Trade advantages:-The local market is one of the largest in the region with around 7,5

million inhabitants;-Leading position of agricultural machinery from EU producers and

know-how technologies;-Serbia has significantly improved the competitiveness of its

agriculture after signing of CEFTA, SAA, EFTA and FTAs;

-Favourable trade conditions - preferential access to main markets

•Investment threats: agriculture (still) in transition, small scale farming, low yields, large number of farmers without proper associations, general lack of financial resources in agribusiness.

Agribusiness sector – field of possibilities

Preferential access to main markets

REPUBLIC OF SERBIA

CEFTA

Central European Free Trade Agreement

EFTA

European Free Trade Agreement

European Union

Stabilization and Association Agreement

(SAA)

USA

General System of Preferences (GSP)

Russia, Belorussia, Turkey,

Kazakhstan

Free Trade Agreement (FTA)

Financing the Agribusiness Sector

...

European Union European Union

I and II components of IPAI and II components of IPA

Agricultural Trade Balance Serbia-Slovakia

2004-2010 (000 USD)

Volume of trade in agricultural products between Serbia and Slovakia amounted to 13 million USD in 2010, with the Serbian export about 7 million USD, and import about 6 million USD. The surplus on the Serbian side was about 1,3 million USD.

The largest total volume of trade recorded in 2008 (24 million USD). The largest export was in 2007, worth 13.3 million USD with a surplus of 5.4 million USD on the Serbian side.

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Export

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Agricultural Trade Serbia-SlovakiaE X P O R T E R S:

• Oil factory Banat, Nova Crnja• SUNOKO, Novi Sad,• Victoriaoil, Šid,• SOJAPROITEIN, BECEJ,• S D Martonoš, Kanjiža,• Aretol, Novi Sad,• AIK Backa Topola, Bačka Topola,• Maber Commerce, Pančevo,• Bojin, Majur,• Koneks, Novi Sad,• Zdravo Organic, Selenca,• TELEK PAPRIKA Martonoš,Kanjiza,• INSTITUT ZA RATARSTSVO I POVRTARSTVO,

N.SAD• FARMINA PET FOODS ,• PIONIR, BEOGRAD.

I M P O R T E R S :

• KRAFT FOODS, BEOGRAD,• SILBO, BEOGRAD,• Frikom, Beograd,• AD ŠTARK, Beograd,• Somboled, Sombor,• Vojvodina Reklam, Novi Sad,• Swisslion Group, Novi Sad,• NESTLE Adriatic Foods, Beograd,• Pionir, Beograd,• Nectar, Backa Palanka,• Centroproizvod Beograd, Surčin,• Min-Commerce, Beograd,• FORNETTI, Subotica,• FINKOCHEM, BEOGRAD,• HOYA V.S. SUBOTICA.

Agricultural Trade Serbia-Slovakia

Most exported products:

-white sugar-soybean oil, row-flour and soy grits,-ground pepper, crushed, dried,-technical lard,-fresh plums, watermelons and

prunes,-sunflower oil,-beans, peas, sweet corn,-soft drinks,-food for dogs and cats,-soybean and corn seeds,-chocolate,-slivovitz, cherry and pear brandy,-food for animals…

Most imported products:

-calfskin, row,-milk powder,-food stuff,-chocolate,-fruits,-confectionery,-poults weighing up to 185 g,-tomato,-glucose syrup..

AGRICULURAL AND FOOD PROCESSING SECTOR POTENTIALLY INTERESTING SECTOR FOR SLOVAK PARTNERS

fruit and vegetable processing sugar, sweets and honey, oil seeds, seed material, medical and aromatic herbs and spices, meat production and processing, organic production, grape, wine and brandy production, production of mineral water and non-alcoholic

drinks, agritourism

Slovakia, as a member of the OECD, has an obligation to help othercountries through various projects.Ministry of Agriculture, Trade, Forestry and Water Management

of the Republic of Serbia was the beneficiary of the fund, established

by the Slovak Government, Slovak Aid:

EU Information Centre  Cooperation in the field of organic farming in accordance with EU

We are very grateful for the support we received through these projectsand we hope that in future we will achieve project concerning trade (consumer protection, product safety or market surveillance).

THANK YOU FOR YOUR ATTENTION!

MINISTRY OF AGRICULTURE, TRADEFORESTRY AND WATER MANAGEMENT

OF THE REPUBLIC OF SERBIA

www.mpt.gov.rs