Organic Agriculture in Serbia at a Glance 2014
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english Organic Agriculture in Serbia At a Glance 2014 Published by: National Association Serbia Organica CIP – Каталогизација у публикацији Народна библиотека Србије, Београд Publication supported by: German Federal Goverment through 631.147(497.11) „2014“ „Deutsche Gesellschaft für ORGANIC Agriculture in Serbia: at a Internationale Zusammenarbeit glance 2014 / [authors Marija Kalentić ... et al.]. – Beograd : GIZ-Deutsche Gesellschaft (GIZ) GmbH“. für Internationale Zusammenarbeit GmbH: National Association Serbia Organica : Private Sector Development Program ACCESS-Private Sector Development Program, 2013 (Beograd : Publikum). – 52 str.: ilustr.; 21 cm ACCESS Prevod dela: Organska poljoprivreda u Srbiji. – Podaci o autorima preuzeti iz kolofona. – Authors: Tiraž 1.000. – Str. 1: Foreword / Dragan Marija Kalentić, GIZ Belgrade Glamočić. – Str. 2: Foreword / Nada Mišković.– Str. 3: Foreword / Stephan Heieck. – Emilija Stefanović, GIZ Belgrade Napomene i bibliografske reference uz tekst. Ivana Simić, Serbia Organica Belgrade ISBN 978-86-87737-81-5 (GIZ) Ulrich Maerz, AFC/FiBL, Bonn 1. Kalentić, Marija, 1953- [аутор] 2. Organska poljoprivreda u Srbiji [eng] a) Еколошка пољопривреда – Србија – 2014 January, 2014 COBISS.SR-ID 203292428 Organic Agriculture in Serbia At a Glance 2014 TABLE OF CONTENTS Page Foreword 1 Summary 5 1 Context 6 2 Organic Sector: Players and Activities 9 2.1 Production structure 9 2.2 Organic farmer 12 2.3 Organic food processing industry 15 2.4 Value chains and value generation 17 2.5 Agricultural R&D, extension and advisory services, industry know-how 18 3 Government policy for the sector 22 3.1 National Rural Development Program 2011 – 2013 22 3.2 Republic of Serbia Biodiversity Strategy 2011 – 2018 23 3.3 National Action Plan for organic farming development in Serbia 24 3.4 Financial support for the organic sector 26 4 Market and trade 27 4.1 Local market for organic food 27 4.2 International markets for Serbian organic produce 32 4.2.1 Trends and general conditions 32 4.2.2 Product opportunities in Germany and in other EU countries 34 5 Level of attainment of relevant EU standards 39 5.1 EU legal framework 39 5.2 Legal framework for organic farming in Serbia 41 6 Past trends and future developments in terms of investment 43 6.1 Market potential for Serbian manufacturers 43 6.2 Market potential for European investors 45 6.3 Identification of the sector’s potentials and needs 47 7 Challenges and way forward 48 ACCESS – Program for private sector development in Serbia 50 National association for organic production “SERBIA ORGANICA” 51 Organic agriculture in Serbia LIST OF TABLES 1. Business associations and national NGOs active in the organic sector 8 2. Areas by plant protection categories (until September 2013) 9 3. Organic animal production (until September 2013) 11 4. Organic farmer profiles 14 5. Companies and producers members of Serbia Organica Association 16 6. Value chain in Serbia’s organic agriculture – the case of apple juice 17 7. Research &Development institutions, members of Serbia Organica Association 21 8. Goals and Objectives of the National Rural Development Program 2011 – 2013 23 9. National Institutions and Ministries relevant for agricultural policies and rural development 24 10. Objectives of the National Action Plan for Organic Production Development, 2011 25 11. Minimum and maximum retail price range for organic and conventional fresh fruits and vegetables at the greenmarkets (January - October 2013) 28 12. Retail prices of processed and other organic food products in Serbia (September 2013) 29 13. Traders, importers, distributors and supermarkets in Serbia involved in organic production sector (2013) 31 14. Share of some products in total retail value of sold organic foods at the most important EU markets 36 15. Organic products from Serbia with considerable market potential in the EU 38 16. Certification/control bodies, authorised by the MAFWM for 2012 42 17. SWOT analysis of the organic sector in Serbia 47 LIST OF FIGURES Figure 1: Structure of organic plant production in ha (until September 2013) 10 Figure 2: Areas under conversion and organic farming areas 10 Figure 3: Structure of organic Animal production (until September2013) 11 Figure 4: Machinery and equipment used in organic farms and supply sources 13 Organic agriculture in Serbia ABBREVIATIONS AND ACRONYMS ADA Austrian Development Agency CAP Common Agricultural Policy CEFTA Central European Free Trade Agreement EBIT Earnings before Interest and Tax EC European Commission EU European Union FAO Food and Agriculture Organisation FDI Foreign Direct Investment GAP Good Agricultural Practice GDP Gross Domestic Product GM Genetically Modified GIZ German agency for international cooperation (GTZ prior to 1 January 2011) HACCP Hazard Analysis and Critical Control Point IFOAM International Federation of Organic Agriculture Movements IMF International Monetary Fund IPA Instrument for Pre-accession Assistance IPARD Instrument for Pre-accession Assistance for Rural Development ISO International Organization for Standardization KfW Kreditanstalt für Wiederaufbau MAFWM Ministry of Agriculture, Forestry and Water Management NASO National Association for Organic Production “Serbia Organica” NGO Non-governmental Organization NRDP National Rural Development Program 2011-2013 OECD Organization for Economic Cooperation and Development R&D Research and Development SAA Stabilization and Association Agreement SDC Swiss Development Corporation SIEPA Serbian Agency for Foreign Investments and Export Promotion SMEs Small and Medium Enterprises USAID US Agency for International Development USDA US Department of Agriculture WHO World Health Organization WTO World Trade Organization Organic agriculture in Serbia FOREWORD Minister of Agriculture, Forestry and Water Management Prof. Dr. Dragan Glamočić Organic production is complex production method, which implies strict legal standards, and therefore reflects advantages for organic products which are known as synonym for protection of human health and life, nature and environment. High natural potential and favorable climatic conditions, place Serbia among the countries in which organic production can be successfully developed. Serbian organic products can be one of factors for economic development and make our country recognizable. This kind of production allows making significant profits on small farms which are typical for Serbia. Despite the fact that organic products participate only with 1% on global food mar- ket, organic products are becoming increasingly more demanded and share of these products in global food market is becoming more significant. In developed countries there is an evident lack of organic products, and therefore Serbia with its preserved agro ecosystems has a chance to improve this agriculture production sector and increase export of agricultural commodities. Area under organic production in Serbia is increasing and the Ministry of Agriculture recognized the role of organic production, not only for Serbian agriculture, but also for the economic development in our country and in forthcoming period will pay gather attention to this sector of agriculture. Agricultural policy measures will first aim to encourage our farmers to decide to convert on the method of production, and then to become more competitive. So far, a number of concrete actions have been undertaken. Elaboration of National Action Plan for Development Organic Production for the period 2013-2017 is finalized and currently the legal framework is being fully harmonized with the EU legislation. We will invest maximum efforts to facilitate the farmers dealing with this kind of agricultural production in order to increase the number of organic products, affirming them in the domestic and international market and enable our producers to gain an advantage in the marketing of their goods in different institutions, on the shelves of major supermarket and retail chains. Sincerely, Organic agriculture in Serbia 1 FOREWORD President of the Board National Association Serbia Organic Nada Mišković Strategic importance of agribusiness has finally started to be recognized. There is awareness that the market in Serbia is opening and that the half of the overall number of agricultural producers in Serbia are owners of very small properties. This awareness calls for commitment to urgently draw up a strategy that will ensure the sustainability. The right choice is organic production that can be successfully implemented in smaller agricultural households. The organic products are highly demanded and have higher market value. In order to raise the competitiveness of the Serbian producers of the organic products, the conditions must be provided so that they could affiliate and ensure the quantity, quality and continuity of organic products. Following the mentioned course of action, producers can be successful in their struggle for the place on demanding local market, as well as worldwide. I am now sure that after organic production is recognized, as a good strategic solution for further development of agriculture in Serbia, investment of resources and efforts made in favor of further development will give adequate results and justify beliefs and expectations. 2 Organic agriculture in Serbia FOREWORD GIZ/ACCESS Program leader Dr. Stephan Heieck On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), the GIZ/ACCESS Program started to support development of organic agriculture in Serbia in 2009.