Country Report Serbia
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ARCOTRASS- Consortium Study on the State of Agriculture in Five Applicant Countries SERBIA Country Report December 2006 "This study, financed by the European Commission, was undertaken by Arcotrass GmbH (Germany), in association with Vakakis International SA (Greece), EuroCare GmbH (Germany) and AKI (Hungary). The conclusions and opinions presented in this report are those of the Consultants and do not necessarily reflect the opinion of the European Commission". Country Report: Serbia ARCOTRASS- Consortium Study on the State of Agriculture in Five Applicant Countries Table of Contents 1 INTRODUCTION .........................................................................................................1 1.1 OVERVIEW OF THE COUNTRY ................................................................................... 1 1.2 DATA AVAILABILITY AND SOURCES ........................................................................... 3 2 ECONOMIC COUNTRY BACKGROUND .........................................................................4 2.1 MACRO- AND SOCIO-ECONOMIC SITUATION .............................................................. 4 2.2 AGRICULTURE IN THE ECONOMY .............................................................................. 6 3 LAND USE, FARM STRUCTURE AND FARM INCOME ....................................................7 3.1 LAND USE AND QUALITY .......................................................................................... 7 3.2 LAND OWNERSHIP AND PRIVATISATION.................................................................... 8 3.3 FARM STRUCTURE ................................................................................................. 10 3.4 FARM INCOME AND EMPLOYMENT........................................................................... 12 4 AGRICULTURAL PRODUCTION .................................................................................16 4.1 TOTAL AGRICULTURAL PRODUCTION (GAO, MAIN PRODUCTS) .................................. 16 4.2 CROP PRODUCTION ............................................................................................... 17 4.3 LIVESTOCK PRODUCTION ....................................................................................... 19 4.4 FOOD CONSUMPTION............................................................................................. 21 4.5 AGRICULTURAL PRICES .......................................................................................... 23 5 AGRI-FOOD INDUSTRY ............................................................................................26 5.1 OVERVIEW ............................................................................................................ 26 5.2 MAIN FOOD INDUSTRIES........................................................................................ 26 6 SUPPORT SERVICES.................................................................................................29 6.1 FINANCIAL SUPPORT SERVICES .............................................................................. 29 6.2 AGRICULTURAL EDUCATION, EXTENSION AND INFORMATION SYSTEMS..................... 31 6.3 INPUT SUPPLY....................................................................................................... 32 7 AGRICULTURAL AND FOOD POLICY .........................................................................34 7.1 INSTITUTIONAL FRAMEWORK AND POLICY CONCEPTS.............................................. 34 7.2 BUDGETARY RESOURCES........................................................................................ 35 7.3 AGRICULTURAL AND FOOD POLICIES ...................................................................... 36 7.4 FOOD SAFETY........................................................................................................ 38 8 AGRICULTURAL TRADE AND TRADE POLICY ..................................................41 8.1 TRADE POLICY....................................................................................................... 41 8.2 AGRICULTURAL TRADE........................................................................................... 44 8.3 AGRICULTURAL TRADE WITH THE EU ...................................................................... 46 9 RURAL DEVELOPMENT AND RURAL POLICY .............................................................49 9.1 MAIN CHARACTERISTICS OF RURAL AREAS .............................................................. 49 9.2 RURAL DEVELOPMENT POLICY ................................................................................ 56 9.3 REGIONAL POLICY ................................................................................................. 59 9.4 AGRO-ENVIRONMENTAL POLICY.............................................................................. 60 Country Report: Serbia page I ARCOTRASS- Consortium Study on the State of Agriculture in Five Applicant Countries ANNEXES Annex 1: EU AND OTHER DONOR SUPPORT TO AGRICULTURE AND RURAL DEVELOPMENT Annex 2: SERBIAN PRODUCER PRICES FOR AGRICULTURAL AND FOOD PRODUCTS Annex 3: AGRICULTURAL AND FOOD TRADE Annex 4: RURAL DEVELOPMENT DATA BY COUNTIES (POPULATION, EMPLOYMENT INCOME) List of Tables Table 1: Main macroeconomic indicators in comparison with EU 25.............................................. 5 Table 2: Key agricultural indicators in comparison with EU (in %)............................................... 6 Table 3: Land use in comparison with EU (1000 ha) (2005) ........................................................ 8 Table 4: Peasant farm structure............................................................................................. 12 Table 5: Active agricultural population in total agricultural population ........................................ 13 Table 6: Farms as per income sources and total used land area in Serbia, according to Census (2002) .................................................................................................................. 14 Table 7: Crop area, production and yield trends in crop production for Serbia, 2000-2005............ 17 Table 8: Livestock numbers and production (live weight) 2001 - 2005 and comparison with EU 2005..................................................................................................................... 19 Table 9: Per capita consumption of basic agricultural products (2003)........................................ 22 Table 10: Self Sufficiency of Serbia in basic agricultural products (2005) .................................... 22 Table 11: Comparison of selected agricultural producer prices in Serbia and EU .......................... 24 Table 12: Human resources in the MAFWM ............................................................................. 34 Table 13: Agricultural budget in Serbia (in Million Euro)............................................................ 35 Table 14: Market-price support in Serbian agricultural sector in 2006......................................... 37 Table 15: Tariffs in Serbia (2006)........................................................................................... 43 Table 16: Share of Agro-food trade in total trade 2005............................................................. 44 Table 17: Agricultural Trade (global) in Million Euro ................................................................. 45 Table 18: Demographic and Employment Data at NUTS I / NUTS II Level (2002) ........................ 49 Table 19: Comparison of rural areas in EU and Serbia .............................................................. 50 Table 20: Number of settlements per type .............................................................................. 51 Table 21: Farm structure, according to Censuses 1991 and 2002............................................... 54 Table 22: Employment structure in Serbia............................................................................... 55 Table 23: Support to Rural Development in Serbia ................................................................... 58 Table 24: Extension services and veterinary services ................................................................ 59 List of Figures FIGURE 1: RELATIVE SHARE OF CROP AND LIVESTOCK PRODUCTION IN GAO (IN %)................ 16 FIGURE 2: AGRICULTURAL TRADE WITH THE EU (IN MILLION EURO, 2001 - 2005).................... 47 Country Report: Serbia page II ARCOTRASS- Consortium Study on the State of Agriculture in Five Applicant Countries ABBREVIATIONS AK Agrokombinat (large state-owned farm) ALCS Association of Leasing Companies CAP Common Agricultural Policy of the EU CF Cooperative Farm c.w. Carcass Weight DCR Directorate for Commodity Reserves DFRS Development Fund of the Republic of Serbia DM Deutsche Mark EAR European Agency for Reconstruction EPS Electrical Power Supply Industry of Serbia FAO Food and Agriculture Organization of the United Nations FDI Foreign Direct Investment FRY Federal Republic of Yugoslavia FTA Foreign Trade Agreement FYR Former Yugoslav Republic GAO Gross Agricultural Output GDP Gross Domestic Product GGA Government Geodetic Authority GVA Gross Value Added ha Hectare HACPP Hazard Analysis of Critical Control Points HDI Human Development Index HL Hectolitre ICTY International Criminal Tribunal for the Former Yugoslavia ILO International Labour Organization ISAA Institute for Science Application in Agriculture JAT Yugoslav Airlines LFA Less Favoured Areas MAFWM Ministry of Agriculture, Forestry and Water Management MT Metric Tons na (Data) not available