It is impossible to imagine the survival and further development of rural areas without young people who need infrastructure and support to start a new business.
„Agricultural land covers about 70 percent of the Republic of Serbia’s territory and this fact unequivocally indicates the absolute importance of agriculture in the economic prosperity of the country“, says Jelena Blagojević, State Secretary at the Ministry of Agriculture, Water Management and Forestry.
The State Secretary will be one of the participants in the Vojvodina in 2022 conference, more precisely in the Green Agenda and Green Economy panel. In an interview for Diplomacy&Commerce, she talks about her department’s achievements and plans.
What do the latest data on Serbia’s economic potential and development show? How do they reflect on the image of our country in the region and the world?
Our market is increasingly opening up to the region and the world. In 2010, Serbia’s exports amounted to 2 billion US dollars, in 2020, 4.2 billion US dollars, and last year over 5 billion US dollars. An agreement called “Open Balkans” was recently signed, which aims to facilitate trade, i.e. free movement of goods, expedite the process of product exchange, and reduce costs and losses caused by long waits at border crossings. Apart from Serbia, the initiative was signed by North Macedonia and Albania. This is just one of the ways we have used to boost regional cooperation.
Economic development is also facilitated through programmes such as IPARD. Where do you expect the best response and results? What is the total value of these investments, i.e. incentives?
Under IPARD Measure 1, eligible beneficiaries come from the dairy and meat sectors and they can receive incentives from 5,000 to 1,000,000 euros, while fruit, vegetable and crop growers can receive incentives from 5,000 to 700,000 euros. The amendment to the Law on Agriculture and Rural Development now stipulate an advance payment in the amount of 50 percent of the approved value of incentives. In that way, IPARD beneficiaries are given a significant portion of financial resources for the implementation of their planned investments. Also, the approval of subsidies has been expedited and the E-agrar software solution introduced. Following the joint initiative of the Ministry of Agriculture, Water Management and Forestry and World Bank, which is about implementing a new financing format, a second public call for applications for establishing the right to use grants under the auspices of the Competitive Agriculture Project in Serbia has been launched.
“The return of young people to rural areas means the revitalization of the countryside, decentralization, and the creation of new opportunities at the local level”
The programme entails the allocation of grants in the amount of 50 percent of the total investment, while the remaining 40 percent is provided through a loan from a commercial bank and 10 percent of the investment by beneficiaries. For an individual business plan, this means the grant between 20,000 and 50,000 euros (disbursed in dinars), i.e. the minimum amount of grant is between 10,000 and 25,000 euros. We expect a great response when it comes to purchasing tractors, which we have recognized as one of the main needs of Serbian farmers.
Regarding beekeeping and aquaculture, what can these two branches bring to the Serbian economy in the long run?
Beekeeping is one of the growing branches of agriculture, and the state is trying to popularize it by constantly investing in it. The Ministry of Agriculture, Forestry and Water Management’s priority is to support beekeepers through a competitive agriculture project, where beekeepers can invest in the purchase of 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 2020, we approved 901,933,600 dinars worth of subsidies for as many as 1,127,368 hives. The number of applications regarding aquaculture is increasing, but it is still lower than in beekeeping. It is clear to us that the importance of aquaculture directly affects the preservation of biodiversity and the improvement of the financial standing of people employed in this branch.
Women in rural areas should be given a lot of credit for developing and contributing to the future of 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 and a secure future, because history teaches us and tradition confirms it, that a rural woman is a pillar of the home. These women are dedicated and worthy of admiration and they participate side by side with men in 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 for the first time, with the idea of encouraging them to become more active and more visible, as well as to take on leading roles for which they are unquestionably capable.
“Agriculture is a strategic branch in Serbia, worth investing in”
The breadth and diversity of women’s creativity, the beauty of their skills that are passed down from generation to generation are pure art. I am grateful to women who are increasingly recognizing their importance in the economic development of both villages and cities, uniting, exchanging experiences and expressing themselves creatively through their products. Furthermore, they are actively involved and participate in all programmes available to them. I believe that we will continue our cooperation this year as well and further strengthen women’s position in society.
Are young people interested in farming and going back to the countryside? What can that contribute to tourism and agriculture in Serbia?
It is impossible to imagine the survival and further development of rural areas without young people who need infrastructure and support to start a new business. Due to all the aforementioned, we took several measures, such as start-ups for young people, which we raised from 700 initial applications to 5,500. Young start-up entrepreneurs received up to 1.5 million dinars to launch their agri-businesses. In parallel, we have launched subsidies for rural tourism and the construction of ethno villages. Last but not least, there is IPARD3, which will provide complete funding for local governments for the construction of roads, sewers and any other infrastructure they lack. The return of young people to rural areas means the revitalization of the countryside, decentralization, and the creation of new opportunities at the local level. When a young person or a couple with a child recognizes the importance and benefits of living outside the urban environment, and the Ministry and programmes like ours support them financially, we can say that we have been successful and are on the right path to progress and prosperity for our country.
2021 was challenging in all areas also due to the global situation with the coronavirus. How did the pandemic affect the development of agriculture in Serbia, what obstacles did you face and what Ministry’s results are you especially proud of?
The previous year, which was one of the most difficult for all of humanity in this century, created new challenges in all business segments. Thanks to the rural areas in Serbia and our processing industry, Serbia was one of the few countries in the world that did not face food shortages during the coronavirus pandemic. This experience showed us how important the village is for the stability of the economy, but also the market supply.
This year, the budget intended for agricultural development has been increased. In addition to the aforementioned incentives, what are the plans of the Ministry of Agriculture, Forestry and Water Management for 2022?
We are very satisfied with the agricultural budget for 2022, which is one fifth higher than in 2021. This shows that agriculture is a state priority. By having such a budget, the state authorities and the Ministry of 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 will help the processing industry to become even stronger in the sectors such as dairy, meat processing, fruits and vegetables as opposed to the sale of raw materials. It is of great importance that we put primary agricultural products into the processing industry. Agriculture is a strategic branch in Serbia, worth investing in. Just like any other business, agriculture requires the application of new knowledge, full commitment and constant investment, which all lead to success.
By Maja Guzijan