1. Goran Zivkov Round table 4: Integration of Western Balkans into the EU Markets MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT Republic of Serbia Berlin, May 2006 Annual meeting East Agri Annual meeting, Berlin, May 2006

2. Task Could you please give the most important messages on the situation of the agricultural food industry in your country, e.g. structure, capacities, main trade opportunities, and main problems regarding the accession to EU markets - EU standards etc. on 3-5 PPP slides max (max. 5-10 min). Since we have so many speakers in our RT 4, it seems to be reasonable to cut the presentations down to the most important messages and folow-up with discussions. East Agri Annual meeting, Berlin, May 2006

3. “Economic Copenhagen criteria” Creation of a functioning market economy, able to be integrated with the market-based economies of the existing Member States; Ability to withstand competition, so that the country’s economies would not be destroyed by a flood of imports once they joined the massive free trade area of the EU; Adoption of the entire set of accumulated EU rules and practices, known collectively as the acquis communitaire. What is the main direction of Serbian Agrarian Policy to fulfill Copenhagen Criteria East Agri Annual meeting, Berlin, May 2006

4. Objectiv e type Overall objectiveShort titleEconomic effect Economic Increase the wealth of the nation through an efficient agricultural sector, producing products that are internationally competitive in terms of quality and price. Wealth creation Earning Social Ensure that the food provided to Serbian consumers meets acceptable standards of quality and safety Food safetySpending Social Support the standard of living of people currently dependent on agriculture, where this is liable to seriously decline through economic reform Income support Spending SocialSupport the sustainable development of rural areas. Rural development Earning & Spending Environm ental Safeguard the natural environment from detrimental effects of agricultural production or restructuring Environment al protection Spending Political Prepare Serbia's agricultural sector for accession to the EU EU accessionComplex Political Prepare Serbia's agricultural trade & support policies for accession to the WTO WTO accession Complex Main Strategy objectives East Agri Annual meeting, Berlin, May 2006

5. Agrarian budget 2000-2006 (billion dinars ) East Agri Annual meeting, Berlin, May 2006

6. Modernization of the agriculture and adjustment to the EU Budget goals 2005 … +1…..______________n_______________….-1…..EU East Agri Annual meeting, Berlin, May 2006

7. Support structure East Agri Annual meeting, Berlin, May 2006

8. Main policy direction MARKET SUPPORT: Cancellation of the price support and area payment and replacement with input subsidy (decrease from 90.1% to 38%) STRUCTURAL SUPPORT: Establishment of rural development payment and investment support (25% of the total support) CREDIT SUPPORT: Establishment of Credit support (22%) INCOME SUPPORT: Establishment of significant income support (12%) East Agri Annual meeting, Berlin, May 2006

9. Rural development & Investment support East Agri Annual meeting, Berlin, May 2006

10. Rural development & Investment support East Agri Annual meeting, Berlin, May 2006

11. Rural development support Focus on beneficiary PROGRAMMEOTHERLFA 1. Improvement of production & marketing Farms, Mechanization, Storage capacity… 30%40 - 50% 2. Rural diversification30-40%40-60% 3. Rural Infrastructure40%50-60% Investment support Focus on investment 1. Livestock farm establishment30% 2. Milk quality improvement30% 3. Storage capacity improvement40% 4. Mechanization & equipment Irrigation equipment Greenhouses, Sowing, spraying & harvesting machinery… 30% OTHER. Standards establishment (HACCP, ISO…) Setting up new orchards Breeding support programme Land Improvement programme etc. East Agri Annual meeting, Berlin, May 2006

12. MAIN OBJECTIVES: DURRATION: BUDGET: i)Development sustainable system for financing agricultural sector from real sources ii)Develop credit history iii)Improving of production through ensuring access to capital to farmers 5 – 7 years 700 millions to 1 billion EURO 2004 2005 2006 2007 2008 2009 2010 … Needed capital Banks money State budget (MoA) Priorities: Financing System Development East Agri Annual meeting, Berlin, May 2006

13. Ministry projects for adoption of acquis FARM REGISTER Main Objective: - Improve Payment Avoid middleman Farmers open bank account - Develop payment structure for future Paying Agency - Policy Planning 141 offices of Directorate for Public Payment East Agri Annual meeting, Berlin, May 2006

14. FARM REGISTER Adoption of acquis Average farm size total 10.3 Average farm size farmers 6.3 Average farm size companies 431 East Agri Annual meeting, Berlin, May 2006

15. FARM REGISTRY FARMERS Ministry of Agriculture MINISTARSTVO POLJOPRIVREDE, ŠUMARSTVA I VODOPRIVREDE Direct payment & Price supportRD (Investment payment) Structural payment BANK SMEsCooperatives BANK Open account Budgetary payment Commercial credit Short term credit Medium term credit 251.000 farmers open account in one of the bank Bank started to be interested for farmers CREDIT REGISTRY East Agri Annual meeting, Berlin, May 2006

16. PreliminaryResults

17. Trade of agricultural products (mil USD) East Agri Annual meeting, Berlin, May 2006

18. Agricultural Products Trade with EU (m Agricultural Products Trade with EU (mio USD)

19. Production Index 2000 – 2005 (previous year 100) Trend line East Agri Annual meeting, Berlin, May 2006

20. Production Trends 2000 – 2005 East Agri Annual meeting, Berlin, May 2006

21. HVALA Thank you East Agri Annual meeting, Berlin, May 2006