Serbia: Agriculture Investment Opportunities Jasna Reb Ministry of Agriculture, Trade, Forestry and Water Management 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 Fruits and vegetable 12 % Livestock 43 % Field crops 42 % Othercrops 3 %

Livestock The 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.

Oilseeds The production of oilseeds is sufficient to cover Serbia’s domestic needs while the key export products are sunflower oil and soybean oil. Sugar beet Sugar is also a significant export item for 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 Spices Thanks 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 recognizable Serbian brand. Other types of brandy are 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 ( ) 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 Source: Statistical Office of the Republic of Serbia

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 S outh-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 I and II components of IPA

Agricultural Trade Balance Serbia-Slovakia (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.

Agricultural Trade Serbia-Slovakia E 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 other countries 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 projects and 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, TRADE FORESTRY AND WATER MANAGEMENT OF THE REPUBLIC OF SERBIA