It is impossible to imagine the survival and additional growth and development of rural areas without young adults who need infrastructure and support to begin a brand new business.
“Agricultural land covers about 70 percent from the Republic of Serbia's territory and this fact unequivocally indicates the absolute importance of agriculture within the economic prosperity of the country“, says Jelena Blagojevi'c, State Secretary at the Ministry of Agriculture, Water Management and Forestry.
The State Secretary is going to be one of the participants in the Vojvodina in 2023 conference, more precisely in the Green Agenda and Green Economy panel. In an interview for Diplomacy&Commerce, she discusses her department's achievements and plans.
What do the latest data on Serbia's economic potential and development show? How can they think about the image in our country in the area and the world?
Our marketplace is increasingly opening up towards the region and the world. In 2010, Serbia's exports amounted to 2 billion $ $ $ $, in 2023, 4.2 billion US dollars, and last year over 5 billion $ $ $ $. A contract called “Open Balkans” was recently signed, which aims to facilitate trade, i.e. free movement of products, expedite the process of product exchange, and lower costs and losses brought on by long waits at border crossings. Aside from Serbia, the initiative was signed by North Macedonia and Albania. This is just one of the ways we've accustomed to boost regional cooperation.
Economic development is also facilitated through programmes such as IPARD. Where would you expect the best response and results? What is the total value of these investments, i.e. incentives?
Under IPARD Measure 1, eligible beneficiaries range from dairy and meat sectors plus they can receive incentives from 5,000 to at least one,000,000 euros, while fruit, vegetable and crop growers will get incentives from 5,000 to 700,000 euros. The amendment towards the Law on Agriculture and Rural Development now stipulate an advance payment in the amount of 50 percent from the approved worth of incentives. In that way, IPARD beneficiaries are given a substantial portion of financial resources for the implementation of their planned investments. Also, the approval of subsidies continues to be expedited and the E-agrar software solution introduced. Following a joint initiative of the Secretary of state for Agriculture, Water Management and Forestry and World Bank, which is about implementing a brand new financing format, another public demand applications for establishing the right to use grants under the auspices from the Competitive Agriculture Project in Serbia has been launched.
The programme entails the allocation of grants within the amount of 50 percent of the total investment, as the remaining 40 % is provided through a loan from a commercial bank and 10 % of the investment by beneficiaries. For a person strategic business plan, what this means is the grant between 20,000 and 50,000 euros (disbursed in dinars), i.e. the minimum quantity of grant is between 10,000 and 25,000 euros. We expect an excellent response when it comes to purchasing tractors, which we've acknowledged as one of the main needs of Serbian farmers.
Regarding beekeeping and aquaculture, what can both of these branches bring to the Serbian economy over time?
Beekeeping is one of the growing branches of agriculture, and the state is trying to popularize it by constantly purchasing it. The Secretary of state for Agriculture, Forestry and Water Management's priority is to support beekeepers via a competitive agriculture project, where beekeepers can invest in purchasing beekeeping equipment, transport trailers, construction of storage facilities and storage of bee products. The Ministry also approves subsidies per hive to everyone who applies, so in 2023, we approved 901,933,600 dinars worth of subsidies for as many as 1,127,368 hives. The number of applications regarding aquaculture is growing, but it's still lower than in beekeeping. It's clear to us that the need for aquaculture directly affects the preservation of biodiversity and the improvement from the financial standing of individuals employed in this branch.
Women in rural areas ought to be given a lot of credit for developing and contributing to the way forward for agriculture. How aware are they of this fact? In which way has the Ministry been supporting them?
Undoubtedly, without women in rural, society cannot count on prosperity along with a secure future, because history teaches us and tradition confirms it, that the rural woman is really a pillar of the home. These women are dedicated and worthy of admiration and they participate alongside with men within the most difficult agricultural jobs. Despite that, only 29% of the owners of agricultural land in Europe are women and only 12% in Serbia. The solution to this problem in rural areas is primarily in education, information, economic empowerment and access to finance. Last year, we marked International Rural Women's Day the very first time, using the concept of encouraging these to turn on and more visible, as well as to undertake leading roles that they're unquestionably capable.
The breadth and diversity of women’s creativity, the good thing about their skills that are passed down from one generation to another are pure art. I am grateful to ladies who are increasingly recognizing their importance within the economic development of both villages and cities, uniting, exchanging experiences and expressing themselves creatively through their products. Furthermore, they're actively involved and participate in all programmes at hand. I believe that we'll continue our cooperation this year too and further strengthen women's position in society.
Are young adults thinking about farming and going back to the countryside? So what can that bring about tourism and agriculture in Serbia?
It is impossible to imagine the survival and further growth and development of rural areas without young people who need infrastructure and support to begin a brand new business. Due to all the aforementioned, we took several measures, for example start-ups for young people, which we raised from 700 initial applications to five,500. Young start-up entrepreneurs received up to 1.5 million dinars to produce their agri-businesses. In parallel, we've launched subsidies for rural tourism and also the construction of ethno villages. Finally, there is IPARD3, which will provide complete funding for local governments for the construction of roads, sewers and then any other infrastructure they lack. The return of young people to rural areas means the revitalization from the countryside, decentralization, and the development of new opportunities in the local level. When a teenager or perhaps a couple with a child recognizes the importance and advantages of living away from urban environment, and the Ministry and programmes like ours support them financially, we can say that we've been successful and therefore are on the right path to progress and prosperity for our country.
2023 was challenging in most areas also due to the global situation using the coronavirus. How did the pandemic affect the development of agriculture in Serbia, what obstacles have you face and just what Ministry's answers are you especially proud of?
The previous year, that was one of the most hard for all humanity in this century, created new challenges in most business segments. Because of the rural areas in Serbia and our processing industry, Serbia was one of the few countries on the planet that did not face food shortages throughout the coronavirus pandemic. This experience demonstrated how important the village is for the soundness of the economy, but the market supply.
This year, the budget meant for agricultural development has been increased. As well as the aforementioned incentives, do you know the plans from the Ministry of Agriculture, Forestry and Water Management for 2023?
We are very pleased with the agricultural budget for 2023, that is one fifth greater than in 2023. This shows that agriculture is a state priority. By having such a budget, the state authorities and also the Secretary of state for Agriculture, Forestry and Water Management will provide the strongest support so far to Serbian agriculture and create the possibility for development and progress. By facilitating investments in processing of agricultural produce, we'll assist the processing industry to become even stronger within the sectors such as dairy, meat processing, vegetables and fruit as opposed to the sale of recycleables. It is crucial that we put primary agricultural products in to the processing industry. Agriculture is a strategic branch in Serbia, worth investing in. As with every other business, agriculture necessitates the application of new knowledge, full commitment and constant investment, which all result in success.
By Maja Guzijan
