“Building an integral vision for Serbia’s future” Towards a clear Economic Development strategy in Serbia’s most dynamic sectors: 10.45 Agriculture & Food Professor Miladin M. Ševarlić 12th Economic Summit of the Republic of Serbia Metropol Palace, Belgrade Monday-Tuesday, October 22-23, 2012 Where are we today? About agribusiness in Serbia High percentage in economy (20% GDP, 30% employment, 23% export, ...) Extensive agriculture (... and not organic) (<30% cattle breeding) Devasting and import oriented pre-farm sector Insufficient used favorable resources (600.000 ha) Non-competitiveness (SRB:D = 1:11) Export orientation: raw material, lower phases of processing, ... Political pressures for agriculture to be social “buffer" Restriction Unfavorable ownership structure Non-regulated ownership relations Low and unstable system of subventions Unfavorable resources of finance Low productivity (AL, BiH; cattle breeding?) Unavailability and non prepared Serbian funds to EU Confusing statement Agro News 1074, 18.10.2012. Agriculgure of Serbia has growth of 20 percent annual Vensan Dezer Agro News 1073, 17.10.2012. Double agrarian budget in 2013 Prof. dr Dejan Krnjajić Agricultural budget 2012: 40,88 2013: 35,14 R2013/2012 = - 5,74 I2013/2012 = 85,96 (-14,04%) Case Study - 1: Beekeeping in Serbia 84% of plant species ≈ 74% of food production • • • • • 2011 400.000 beehives 15 kg honey 6.000.000 kg honey 3€⁄kg 18.000.000 € ≈ 1.5 – 3% • 1.200 €⁄beehives • 480.000.000 € • • • • 2020 200.000 ha acacia 1 МТ/ha 200.000.000 kg 4 €/kg • 800.000.000 € • 600.000 ha • 2,400.000.000 € • 1,200.000.000 € Case Study - 2: Apple + Plum • • • • • Apple 16,042.000 trees 12-18 kg/trees (1:1,5) 180.000 - 280.000 MT 0.35€⁄kg 2011: 256.676 MT Plum • • • • • 40,822.000 trees 04-16 kg/trees (1:4) 200.000 - 680.000 MT 0.25 €/kg 2011: 581.874 MT • 90.000.000 € • 145.000.000 € • 25 kg/tree • 140.000.000 € • 20 kg/tree • 200.000.000 € • +50.000.000 € • +55.000.000 € Case Study - 3: Plum brandy • 80,000.000 liters of brandy • 4 euros per liter • 320.000.000 € • 200 x 50 x 3 x 365 = 10,950.000 liters • 11,000.000 x 10 = 110,000.000 € • 22,000.000 € Agricultural potential of Serbia 4,5 >→ → 11 billion € (ØEU-27 = 1.873€/ha GDP) What we need Serbian Agriculture Strategy Based on the knowledge, the experience of other countries in the accession process and the EU aimed at CAP Environmentally and economically sustainable - without GMOs The larger, more stable and fairer agricultural budget Improving the competitiveness and profitability Export-oriented final consumption Encourages association and cooperative Encourages self-employment in rural areas Agribusiness company's regional leaders Social policy to adjust the rural population Identify indicators for monitoring the implementation of the Strategy