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STUDY on COMPETITIVENESS and REGIONAL POTENTIALS of AGRICULTURE in SERBIA Focus on Fruit and Vegetables

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STUDY on COMPETITIVENESS and REGIONAL POTENTIALS of AGRICULTURE in SERBIA Focus on Fruit and Vegetables STUDY ON COMPETITIVENESS AND REGIONAL POTENTIALS OF AGRICULTURE IN SERBIA Focus on fruit and vegetables p. 1/75 The Study on the Competitiveness and Regional Potentials of Serbian Agriculture was prepared with a goal to inform investors, policy makers and public about the competitiveness of agriculture production and processing industries in Serbia. Publication of this Study was made possible through cooperation of the USAID Competitive Economy Project and SeeDev doo Beograd. January 2020 This Study is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this Study are the responsibility of SEEDEV and do not necessarily reflect the views of USAID or the United States Government. p. 2/75 Content: INTRODUCTION AND METHODOLOGY .............................................................................................................. 7 AGRICULTURE IN SERBIA .................................................................................................................................. 9 Producers ........................................................................................................................................................ 11 Trade agreements .......................................................................................................................................... 11 Good infrastructure and favorable position ................................................................................................ 12 Market chains developed .............................................................................................................................. 13 Agriculture competitiveness in Serbia ............................................................................................................ 15 Cereal and industrial crop sector competitiveness ..................................................................................... 16 Fruit sector competitiveness ........................................................................................................................ 19 Competitiveness of the Vegetable Sector ................................................................................................... 23 Meat sector competitiveness ...................................................................................................................... 29 Dairy sector competitiveness ...................................................................................................................... 30 Competitiveness of wine sector ................................................................................................................... 31 Competitiveness of fishery sector ................................................................................................................ 32 Position analysis ............................................................................................................................................ 33 FOOD PROCESSING INDUSTRY IN SERBIA ......................................................................................................36 Structure of the food processing industry .................................................................................................. 36 Competitive F&V processed products .......................................................................................................... 37 Structure and performance of agricultural processors .............................................................................. 38 Regional distribution .................................................................................................................................... 43 FRUIT AND VEGETABLES: REGIONAL ACPECTS ............................................................................................. 45 Vojvodina region ........................................................................................................................................... 46 Šumadija and Western Serbia region ........................................................................................................... 52 Southern and Eastern Serbia region............................................................................................................ 56 Belgrade region ............................................................................................................................................ 58 SUPPORT POLICY .............................................................................................................................................. 61 Support policy in Serbia ................................................................................................................................ 61 Demarcation between national and IPARD measures ............................................................................... 63 Provincial and municipal agrarian budgets ................................................................................................. 63 RECOMMENDATIONS .......................................................................................................................................65 Development ................................................................................................................................................ 65 Investment possibilities ............................................................................................................................... 70 Support policy ................................................................................................................................................ 72 p. 3/75 Sectorial recommendations .......................................................................................................................... 73 Tables: TABLE 1: RANKING TOWARDS WORLD ............................................................................................................................ 34 TABLE 2: RANKING TOWARDS EUROPE ........................................................................................................................... 34 TABLE 3: ORCHARD AREAS AND IRRIGATED ORCHARD AREAS PER REGION ...................................................................... 45 TABLE 4: FRUIT PRODUCTION IN 2018, GROWTH TREND IN 2014 – 2018 PERIOD IN VOJVODINA REGION. PRODUCTION SHARE IN TOTAL PRODUCTION IN 2018 IN SERBIA .................................................................................................... 46 TABLE 5: PRODUCTION OF VEGETABLES IN 2018, GROWTH TREND IN 2014 – 2018 PERIOD IN VOJVODINA REGION AND PRODUCTION SHARE IN TOTAL PRODUCTION OF SERBIA IN 2018 (GREEN COLOR: LEADING PRODUCTION REGION, YELLOW: SECOND IN SHARE SIZE) .............................................................................................................................. 50 TABLE 6: PRODUCTION OF FRUIT IN 2018, GROWTH TREND IN 2014 – 2018 PERIOD IN ŠUMADIJA AND WEST SERBIA REGION AND PRODUCTION SHARE IN TOTAL PRODUCTION OF SERBIA IN 2018 (GREEN COLOR: LEADING PRODUCTION REGION, YELLOW: SECOND IN SHARE SIZE) ........................................................................................ 53 TABLE 7: NUMBER OF SPECIALIZED AH FOR CROP PRODUCTION, VEGETABLE PRODUCTION AND FRUIT PRODUCTION BY USED AGRICULTURAL LAND IN SERBIA ...................................................................................................................... 54 TABLE 8: VEGETABLES PRODUCTION IN 2018, GROWTH TREND IN 2014 – 2018 PERIOD IN ŠUMADIJA AND WESTERN SERBIA REGION. PRODUCTION SHARE IN TOTAL PRODUCTION OF SERBIA IN 2018 ................................................. 56 TABLE 9: PRODUCTION OF FRUITS IN 2018, GROWTH TREND IN 2014 – 2018 PERIOD IN SOUTHERN AND EASTERN SERBIA REGION AND PRODUCTION SHARE IN TOTAL PRODUCTION OF SERBIA IN 2018 (GREEN COLOR: LEADING PRODUCTION REGION, YELLOW: SECOND IN SHARE SIZE) ........................................................................................ 57 TABLE 10: PRODUCTION OF FRUITS IN 2018, GROWTH TREND IN 2014 – 2018 PERIOD IN SOUTHERN AND EASTERN SERBIA REGION AND PRODUCTION SHARE IN TOTAL PRODUCTION OF SERBIA IN 2018 (GREEN COLOR: LEADING PRODUCTION REGION, YELLOW: SECOND IN SHARE SIZE) ........................................................................................ 57 TABLE 11: PRODUCTION OF FRUITS IN 2018, GROWTH TREND IN 2014 – 2018 PERIOD IN BELGRADE REGION AND PRODUCTION SHARE IN TOTAL PRODUCTION OF SERBIA IN 2018 (GREEN COLOR: LEADING PRODUCTION REGION, YELLOW: SECOND IN SHARE SIZE) .............................................................................................................................. 59 TABLE 12: VEGETABLE PRODUCTION IN 2018, GROWTH TRENDS IN 2014 - 2018 IN THE BELGRADE REGION AND PRODUCTION SHARE IN SERBIA'S PRODUCTION IN 2018 .......................................................................................... 59 TABLE 13: DEMARCATION OF IPARD AND NATIONAL MEASURES BY BENEFICIARIES SIZE ............................................... 63 Graphs: GRAPH 1: AGRICULTURAL PRODUCTION IN PRODUCER PRICES ................................................................................... 11 GRAPH 2: COMPETITIVENESS OF AGRICULTURAL PRODUCTS COMPARED TO THE WORLD ....................................... 15 GRAPH 3: COMPETITIVENESS OF AGRICULTURAL PRODUCTS COMPARED TO THE EU ............................................... 15 GRAPH 4: COMPETITIVENESS OF AGRICULTURAL
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